GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1993

S	5 

SENATE BILL 1505
Appropriations Committee Substitute with Amendments A,B,C,D,E,F,G,H Adopted 6/2/94
Third Edition Engrossed 6/2/94
House Committee Substitute Favorable 6/17/94 Amendments Engrossed
Fifth Edition Engrossed 6/21/94

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.

GENERAL FUND
OPERATING
	RECURRING	NONRECURRING
Judicial	$ 5,786,524	$ 5,287,990

General Assembly	3,131,250	3,985,000

Office of the Governor
01.	Office of the Governor	75,978	      -      
02.	Office of State Budget and Management	37,089	      -      
03.	Office of State Planning	184,536	      -      
04.	Special Appropriations	      -      	960,000
05.	Housing Finance Authority	      -      	6,150,000

Department of Secretary of State	197,446	      -      
Department of State Auditor	701,766	380,730
Department of State Treasurer	2,795,173	      -      

Public Education
01.	Department of Public Instruction	4,000,000	1,762,000
02.	State Aid to Local School
  Administrative Units	(22,520,514)	129,057,854

Total Public Education	(18,520,514)	130,819,854

Department of Justice	538,959	754,565

Department of Administration	235,417	62,545

Department of Agriculture	1,749,488	1,375,000

Department of Labor	799,641	761,050

Department of Insurance	987,190	      -      

Department of Environment, Health, and
Natural Resources	5,911,475	2,788,546

University of North Carolina - Board
of Governors
01.	University of North Carolina
a. General Administration	(72,774)
b.	Lump sum - Institutional
  Programs	10,403,848	11,839,869
c.	Related Educational Programs	4,540,000

02.	University of North Carolina at Chapel Hill
a.	Academic Affairs	(780,867)	(161,642)
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	1,353,910	200,000
c.	Agricultural Extension Services	(90,442)	25,000

University of North Carolina at Greensboro	(178,462)
University of North Carolina at Charlotte	(128,039)
University of North Carolina at Asheville	428,557
University of North Carolina at Wilmington	(109,269)
East Carolina University
a.	Academic	(261,212)
b.	Health Affairs	(300,443)
North Carolina Agricultural and Technical State
University	(172,122)
Western Carolina University	(118,031)
Appalachian State University	(171,442)
Pembroke State University	(13,610)
Winston-Salem State University	(53,810)
Elizabeth City State University	(57,330)
Fayetteville State University	35,403
North Carolina Central University	(90,992)
North Carolina School of the Arts	(25,823)
North Carolina School of Science
  and Mathematics	327,472
University of North Carolina
  Hospitals at Chapel Hill	(201,782)

	13,211,971	11,903,227
Department of Human Resources
01.	Secretary's Office	1,597,409	4,000,000
02.	Division of Aging	485,182	600,000
03.	Services for the Deaf and Hard of Hearing	2,967,055
04.	Social Services	9,500,532	1,415,167
05.	Medical Assistance	(69,564,355)	50,000
06.	Services for the Blind	348,593	      -      
07.	Division of Mental Health, Developmental
  Disabilities, and Substance
  Abuse Services	21,297,843	8,000,000
08.	Division of Facility Services	768,092	      -      
09.	Division of Vocational Rehabilitation
  Services	1,305,481	      -      
10.	Division of Youth Services	427,696	100,000
11.	Division of Child Development	23,364,513	1,300,000
Total Human Resources	(7,501,959)	15,465,167

Department of Correction	(4,731,970)	(1,760,361)

Department of Commerce
01.	Commerce	5,108,186	15,660,509
02.	Microelectronics Center	3,900,000	      -      
03.	Rural Economic Development Center	3,300,000	4,775,000
04.	Biotechnology Center	1,000,000	1,000,000

Department of Revenue	5,108,963	5,180,776

Department of Cultural Resources	218,075	1,500,000

Department of Crime Control and
Public Safety	1,124,740	465,062

Office of State Controller	2,252,138	12,000,000

Department of Community Colleges	9,627,824	13,183,500

State Board of Elections	296,141	1,657,500

Office of State Budget and Management
01.	Reserve for Salary Increases
a.	4% Salary Increase	306,268,928	      -      
b.	Reduction in Balance of
  2% Salary Increase	(1,757,024)	      -      
c.	Compensation/Performance Bonus	      -      	64,372,259
02.	Reserve for Salary Adjustment	500,000	      -      
03.	Reserve for Retiree 30% Reduction	(16,318)	      -      
04.	Reserve for Restoring Pay Date	      -      	120,000,000
05.	Reserve for OSHA - Bloodborne
  Pathogens Standards	      -      	1,000,000
07.	Reserve to Match Federal/Other Resources	      -      	3,000,000
08.	Reserve for Voter Registration	      -      	3,000,000
09.	Savings in State Health Plan	(38,000,000)	      -      
10.	Reserve for Subsistence Increase	1,600,000	      -      
11.	Reserve for Tort Claims	400,000	      -      
12.	Vacant Positions Deletion	(10,000,000)	      -      
13.	Retirement Rate Reduction	(10,300,000)	      -      

Debt Service	25,723,695

Grand Total Current Operations/General Fund	$311,944,808	$425,727,919

Current Operations/Highway Fund	1994-95

Department of Transportation
01.	Administration	$    (531,000)
02.	Division of Highways
a.	Ferry Operations	1,300,000
b.	Construction - Federal Aid Match	(8,406,415)
03.	Division of Motor Vehicles	769,107
04.	Reserve for Salary Increases	14,400,000
05.	Debt Service	(33,255)
06.	Retirement Rate Adjustment	(912,410)

Crime Control and Public Safety	   3,077,775

GRAND TOTAL CURRENT OPERATIONS/HIGHWAY FUND	$  9,663,802

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	3,875,220
(04)	Resurfacing	1,627,392
c.	Ferry Operations	841,000
03.	Division of Motor Vehicles	2,562,069
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)	8,750,000
08.	Battery Dump Site Cleanup	115,000

Appropriations for Other State Agencies
01.	Crime Control and Public Safety	1,480,950
02.	Revenue	71,968
03.	Environment, Health, and Natural Resources	928,032
04.	Global TransPark Authority	2,120,000

GRAND TOTAL CURRENT OPERATIONS/HIGHWAY FUND -
NONRECURRING	$  45,834,738

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:   Representatives Easterling, Nye
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 except for the Weatherization and the Indian Affairs Programs in the Low Income Energy Block Grant, in each of the federal block grants listed above, shall be reduced equally to total 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:  Representative Bowman
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: Representatives McAllister, McLaughlin
HIGHWAY FUND AVAILABILITY INCREASE
Sec. 9. 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	$ 9.03	21.03	   -	40.5

Estimated Revenues:	 944.6	$ 961.3	979.3
Transfer from Equipment Fund	10.0	-
Transfer to Highway Trust Fund	  -	(9.6)

Total Highway Fund Availability	$963.63	975.63	$951.7.	1,010.2."

Requested by: Representatives Nesbitt, Diamont  
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 that part of the credit balance, balance amount, as determined on a cash basis, not already reserved to before funds are reserved by the Controller to the Savings Reserve Account or the Repairs and Renovations Reserve Account.  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 that part of  the credit balance, balance amount, as determined on a cash basis, not already reserved to before funds are reserved by the Controller to the Savings Reserve Account or the Repairs and Renovations Reserve Account. Account pursuant to this section and G.S. 143-15.3."

Requested by:  Representative Nesbitt
ELIMINATE VACANT POSITIONS
Sec. 10.1.  By September 1, 1994, the Director of the Budget shall identify and eliminate permanently from the continuation budget vacant positions in the 1994-95 General Fund budget from within State departments and institutions in the amount of ten million dollars ($10,000,000).  The Director shall consider in the identification and elimination of vacant positions the number of months positions have been vacant, the critical and noncritical nature of the positions, the appropriation reductions in departments' and institutions' general fund budgets made by the 1993 General Assembly and this act, and the effect an elimination of vacant positions will have on the delivery of program services.  The Director shall report to the Joint Commission on Governmental Operations and to the Division of Fiscal Research by September 1, 1994, on the identification and elimination of positions required by this section.

PART 6.  SALARIES AND BENEFITS

Requested by: Representatives Nesbitt, Diamont
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 two hundred six million three hundred forty-eight thousand one hundred sixty-one dollars ($206,348,161) for the 1994-95 fiscal year shall be used to provide a four percent (4%) permanent salary increase and a four hundred eighty dollar ($480.00) compensation bonus for State employees, community college employees, and certain public school personnel.
(b)  Of the funds appropriated in Sections 5 and 6 of this act from the Highway Fund to the Reserve for Salary Increases, the sum of twenty-three million one hundred fifty thousand dollars ($23,150,000) for the 1994-95 fiscal year shall be used to provide a four percent (4%) permanent salary increase and a four hundred eighty dollar ($480.00) compensation bonus for employees paid from that fund.

Requested by: Representatives Nesbitt, Diamont
GOVERNOR'S SALARY INCREASE
Sec. 11.1.  G.S. 147-11(a) reads as rewritten:
"(a)	The salary of the Governor shall be ninety-three thousand seven hundred seventy-seven dollars ($93,777) ninety-seven thousand five hundred twenty-eight dollars ($97,528) annually, payable monthly."

Requested by: Representatives Nesbitt, Diamont  
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 1993-94 and 1994-95 fiscal years year are:
Council of State	Annual Salary

Lieutenant Governor	$77,289 87,000
Attorney General	 77,289 87,000
Secretary of State	 77,289 87,000
State Treasurer	 77,289 87,000
State Auditor 	 77,289 87,000
Superintendent of Public Instruction	 77,289 87,000
Agriculture Commissioner	 77,289 87,000
Insurance Commissioner	 77,289 87,000
Labor Commissioner	 77,289 87,000."

Requested by: Representatives Nesbitt, Diamont  
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 1993-94 and 1994-95 fiscal years year are:
Nonelected Department Heads	Annual Salary

Secretary of Administration	$77,289 80,381
Secretary of Correction	 77,289 80,381
Secretary of Crime Control and
Public Safety	 77,289 80,381
Secretary of Cultural Resources	 77,289 80,381
Secretary of Commerce	 77,289 80,381
Secretary of Environment, Health,
and Natural Resources	 77,289 80,381
Secretary of Human Resources	 77,289 80,381
Secretary of Revenue	 77,289 80,381
Secretary of Transportation	 77,289 80,381."

Requested by: Representatives Nesbitt, Diamont  
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 1993-94 and  1994-95 fiscal years year for the following executive branch officials are:
Executive Branch Officials	Annual Salary
Chairman, Alcoholic Beverage Control
Commission	$74,389 77,365
State Controller	120,301 108,271
Commissioner of Motor Vehicles	 74,389 77,365
Commissioner of Banks	 74,389 77,365
Chairman, Employment Security
Commission	 74,389 77,365
State Personnel Director	 77,289 80,381
Chairman, Parole Commission	 67,926 70,643
Members of the Parole Commission	 62,712 65,220
Chairman, Industrial Commission	 66,837 69,510
Members of the Industrial Commission	 65,209 67,817
Chairman of the Utilities
Commission	81,381
Commissioner of the Utilities
Commission	80,381
Executive Director, Agency for Public
Telecommunications	 62,712 65,220
General Manager, Ports Railway
Commission	 56,628 58,893
Director, Museum of Art	 76,225 79,274
Executive Director, Wildlife Resources
Commission	 64,205 66,773
Executive Director, North Carolina
Housing Finance Agency	 92,063 95,746
Executive Director, North Carolina
Agricultural Finance Authority	 72,406 75,302
Director, Office of Administrative 
Hearings	 65,674 76,500."
(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 the same as that fixed from time to time for judges of the superior court except that the commissioner designated as chairman shall receive one thousand dollars ($1,000) additional per annum. 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: Representatives Nesbitt, Diamont  
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 thirty-six thousand three hundred thirty-four dollars ($36,334), thirty-eight thousand five hundred fourteen dollars ($38,514) payable monthly, and an expense allowance of one thousand three hundred forty-six dollars ($1,346) one thousand four hundred twenty-seven dollars ($1,427) per month.  The President Pro Tempore of the Senate shall be paid an annual salary of thirty-six thousand three hundred thirty-four dollars ($36,334), thirty-eight thousand five hundred fourteen dollars ($38,514) payable monthly, and an expense allowance of one thousand three hundred forty-six dollars ($1,346) one thousand four hundred twenty-seven dollars (1,427) per month.  The Speaker Pro Tempore of the House shall be paid an annual salary of twenty thousand seven hundred four dollars ($20,704) twenty-one thousand nine hundred forty-six dollars ($21,946) payable monthly, and an expense allowance of seven hundred ninety-six dollars ($796.00) eight hundred forty-four dollars (844.00) per month.  The Deputy President Pro Tempore of the Senate shall be paid an annual salary of twenty thousand seven hundred four ($20,704) twenty-one thousand nine hundred forty-six dollars ($21,946) payable monthly, and an expense allowance of seven hundred ninety-six dollars ($796.00) eight hundred forty-four dollars ($844.00) per month.  The majority and minority leaders in the House and the majority and minority leaders in the Senate shall be paid an annual salary of sixteen thousand two hundred thirty-six dollars ($16,236) seventeen thousand two hundred ten dollars ($17,210) payable monthly, and an expense allowance of six hundred thirty-four dollars ($634.00) six hundred seventy-two dollars ($672.00) per month.
(b)	Every other member of the General Assembly shall receive increases in annual salary only to the extent of and in the amounts equal to the average increases received by employees of the State, effective upon convening of the next Regular Session of the General Assembly after enactment of these increased amounts.  Accordingly, upon convening of the 1995 Regular Session of the General Assembly, every other member of the General Assembly shall be paid an annual salary of thirteen thousand two hundred eighty-seven dollars ($13,287) fourteen thousand eighty-four dollars ($14,084) payable monthly, and an expense allowance of five hundred thirty-two dollars ($532.00) five hundred sixty-four dollars ($564.00) 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: Representatives Nesbitt, Diamont  
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 forty-seven thousand six hundred twenty dollars ($47,620) fifty-four thousand dollars ($54,000) 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: Representatives Nesbitt, Diamont  
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 two hundred twenty-three dollars ($223.00) two hundred thirty-two dollars ($232.00) per week, plus subsistence at the same daily rate provided for members of the General Assembly, plus mileage at the rate provided for members of the General Assembly for one round trip only from their homes to Raleigh and return.  The sergeants-at-arms shall serve during sessions of the General Assembly and at such time prior to the convening of, and subsequent to adjournment or recess of, sessions as may be authorized by the Legislative Services Commission.  The reading clerks shall serve during sessions only."

Requested by: Representatives Nesbitt, Diamont  
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: Representatives Hensley, Nesbitt, Diamont  
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 1993-94 and fiscal year 1994-95 are:
Judicial Branch Officials	Annual Salary
Chief Justice, Supreme Court	$93,777	97,600
Associate Justice, Supreme Court	 91,855	96,000
Chief Judge, Court of Appeals	 88,930	93,600
Judge, Court of Appeals	 86,996	92,000
Judge, Senior Regular Resident
Superior Court	 79,823	89,500
Judge, Superior Court	 77,289	87,000
Chief Judge, District Court	 68,256	79,000
Judge, District Court	 65,674	76,500
District Attorney	 71,965	74,844
Assistant District Attorney - an
average of  	 46,738
Administrative Officer of the Courts	 79,823	89,500
Assistant Administrative Officer
of the Courts	 65,160	75,160
Public Defender	 71,965	74,844.
Assistant Public Defender - an
average of	46,738.
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 forty-six thousand seven hundred thirty-eight dollars ($46,738), and the minimum salary of any assistant district attorney or assistant public defender is at least twenty-three thousand eight hundred sixty-two dollars ($23,862) effective July 1, 1993."
(b) The district attorney or public defender of a judicial district, with the approval of the Administrative Officer of the Courts, shall set the salaries of assistant district attorneys or assistant public defenders, respectively, in that district such that the average salaries of assistant district attorneys or assistant public defenders in that district do not exceed forty-eight thousand six hundred eight dollars ($48,608), and the minimum salary of any assistant district attorney or assistant public defender is at least twenty-four thousand eight hundred sixteen dollars ($24,816) effective July 1, 1994."
(c)  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 Part, shall be increased by four percent (4%), commencing July 1, 1994.
(d)  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: Representatives Nesbitt, Diamont  
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    	$48,391	57,670
100,000 to 149,999  	 54,621	64,780
150,000 to 249,999   	62,247	71,890
250,000 and above	68,256.	79,000.

The salary schedule in this subsection is intended to represent the following percentage of the salary of a chief district court judge:
Less than 100,000	73%
100,000 to 149,999	82%
150,000 to 249,999	91%
250,000 and above	100%.
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: Representatives Nesbitt, Diamont  
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 1993-94 1994-95 because that person is at the top of the salary range as it existed for fiscal year 1992-93 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 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	$20,712	21,126
Maximum	 35,967	37,406

Deputy Clerks	Annual Salary
Minimum	$16,560	16,891
Maximum	 27,705.	28,813."

Requested by:   Representatives Nesbitt, Diamont
MAGISTRATES/SALARY INCREASE
Sec. 11.13.  G.S. 7A-171.1(a)(1) reads as rewritten:
"(1)	A full-time magistrate, so designated by the Administrative Officer of the Courts, shall be paid the annual salary indicated in the table below according to the number of years he has served as a magistrate.  The salary steps shall take effect on the anniversary of the date the magistrate was originally appointed:

Table of Salaries of Full-Time Magistrates

	Number of Prior Years of Service	Annual Salary
	Less than 1	$17,399 19,139
	1 or more but less than 3	18,293 20,122
	3 or more but less than 5	20,092 22,101
	5 or more but less than 7	22,075 24,283
	7 or more but less than 9	24,290 26,719
	9 or more but less than 11	26,702 29,372
	11 or more 	29,33332,266.

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

Requested by: Representatives Nesbitt, Diamont
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.

Requested by: Representatives Nesbitt, Diamont
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:   Representatives Nesbitt, Diamont, Michaux
UNIVERSITY OF NORTH CAROLINA SYSTEM - EPA SALARY INCREASES
Sec. 11.17.  (a) 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 a salary increase of one percent (1%), 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).
(b) 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 three percent (3%), 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 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: Representatives Nesbitt, Diamont, Barnes
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 twelve million thirty-seven thousand seven hundred seventy-one dollars ($12,037,771) for the 1994-95 fiscal year shall be allocated by the Board of Governors to improve competitive peer rankings and to enhance teaching faculty salaries, including those of the Institute of Government.  These funds represent approximately two and one-quarter percent (2.25%) 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: Representatives Nesbitt, Diamont
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,  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, by four percent (4%).
(b)  Except as otherwise provided in this act, salaries in effect June 30, 1994, for permanent full-time State officials and persons in exempt positions that are recommended by the Governor or the Governor and the Advisory Budget Commission and set by the General Assembly shall be increased by four percent (4%), commencing July 1, 1994.
(c)  The salaries in effect June 30, 1994, for all permanent part-time State employees shall be increased on and after July 1, 1994, by pro rata amounts of the salary increases provided for permanent full-time employees covered under subsection (a) of this section.
(d)  The Director of the Budget may allocate out of special operating funds or from other sources of the employing agency, except tax revenues, sufficient funds to allow a salary increase on and after July 1, 1994, in accordance with subsections (a), (b), or (c) of this section, including funds for the employer's retirement and social security contributions, of the permanent full-time and part-time employees of the agency.
(e)  Within regular Executive Budget Act procedures as limited by this act, all State agencies and departments may increase on an equitable basis the rate of pay of temporary and permanent hourly State employees, subject to availability of funds in the particular agency or department, by pro rata amounts 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 shall be applied to employees whose salaries are determined in accordance with G.S. 7A-102 or G.S. 20-187.3(a) at two percent (2%) rather than four percent (4%), except that 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, which is increased by four percent (4%).   The salary ranges for employees covered by G.S. 7A-102 set out in Section 11.12 of this act reflect this action.
(g) No person may receive a salary increase under G.S. 126-7 during the 1994-95 fiscal year.

Requested by: Representatives Nesbitt, Diamont, Barnes
COMPENSATION BONUS
Sec. 11.20. (a)  Any person:
(1)	Whose salary is set by or under this Part, other than Sections 11.2, 11.5, 11.9(a), 11.10, or 11.13;
(2)	Who was, on July 1, 1994:
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
(3)	Who was not on July 1, 1994 a 10-month public school employee
shall receive in July of 1994 a compensation bonus of four hundred eighty dollars ($480.00), except that the compensation bonus for persons subject to Section 11.15 of this act shall be an average of four hundred eighty dollars ($480.00) per year and shall be allocated in accordance with guidelines adopted by the State Board of Community Colleges, except that the compensation bonus for persons subject to Sections 11.17 of this act shall be an average of four hundred eighty dollars ($480.00) per year and shall be allocated to individuals according to the rules adopted by the Board of Governors, or the Board of Trustees of the North Carolina School of Science and Mathematics, as appropriate, and except that the guidelines and rules may cover employees of those institutions whose first day of employment for the 1994-95 academic year came after July 1, 1994.
(a1)  Any person:
(1)	Who did not receive a compensation bonus under subsection (a) of this section; and
(2)	Who was, during the third payroll period of the 1994-95 school year either a 10-month:
a.	Permanent public school employee whose salary is set by or under this Part; or
b.	Public school bus driver, covered by Section 11.24 of this act; and
shall receive in the third payroll period of the 1994-95 school year a compensation bonus of four hundred eighty dollars ($480.00).
(b)  Individuals whose work is less than full-time and who are entitled to receive the compensation bonus under this section and who are either:
(1)	Permanent part-time employees, other than those covered by Sections 11.15 or 11.17 of this act; or
(2)	part-time bus drivers
shall receive a pro rata amount of the four hundred eighty dollars ($480.00).
(c)  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: Representatives Nesbitt, Diamont
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: Representatives Nesbitt, Diamont
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: Representatives Nesbitt, Diamont
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 seventy-three hundredths percent (10.73%) - Teachers and State Employees; (ii) fifteen and seventy-three hundredths percent (15.73%) - State Law Enforcement Officers; (iii) nine percent (9.00%) - University Employees' Optional Retirement Program; (iv) twenty-two and sixty-five hundredths percent (22.65%) - Consolidated Judicial Retirement System; and (v) thirty-six and seven hundredths percent (36.07%) - 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.
(b1)  Effective August 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 fifty-three hundredths percent (10.53%) - Teachers and State Employees; (ii) fifteen and fifty-three hundredths percent (15.53%) - State Law Enforcement Officers; (iii) eight and eighty hundredths percent (8.80%) - University Employees' Optional Retirement Program; (iv) twenty-two and forty-five hundredths percent (22.45%) - Consolidated Judicial Retirement System; and (v) thirty-five and eighty-seven hundredths percent (35.87%) - Legislative Retirement System.  Each of the foregoing contribution rates includes one and eighty-hundredths percent (1.80%) 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 General Assembly authorizes the Board of Trustees of the Teachers' and State Employees' Retirement System to adopt a fixed amortization period of nine years for purposes of the unfunded accrued liability for the Retirement System.
(d)  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 two hundred dollars ($1,200); and (ii) Non-Medicare-eligible employees and retirees - one thousand five hundred seventy-seven dollars ($1,577).

Requested by: Representatives Nesbitt, Diamont
RESTORATION OF THE TWELFTH MONTH TEACHER PAYROLL
Sec. 11.27. (a) 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.
(b)  G.S. 143-15.3(b) reads as rewritten:
"(b)	The Director may not use funds in the Savings Reserve Account unless the use has been approved by an act of the General Assembly.  It is the intent of the General Assembly that effective as of the 1994-95 fiscal year the State's liability for the deferral of the twelfth month of teacher payroll shall be eliminated.  Funds may be used from the Savings Reserve Account and, to the extent necessary, may be combined with other available funds to eliminate this liability and thus bring the State into conformity with the GAAP."

Requested by:   Representatives Nesbitt, Diamont
STATE EMPLOYEE SUBSISTENCE ALLOWANCE
Sec. 11.27A.  G.S. 138-6(a)(3) reads as rewritten:
"(3)	For expenses incurred for subsistence, payment of fifty-five dollars ($55.00) seventy-one dollars ($71.00) per day when traveling in-state or sixty-seven dollars ($67.00) 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: Representatives Nesbitt, Diamont
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. 92-104, December 28, 1992. 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. 92-104, December 28, 1992, 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 57 Federal Register 6684 (February 27, 1992), 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 Nesbitt, Diamont 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 57 Federal Register 6678-6687 (February 27, 1992) and at 57 Federal Register 24474-24477 (June 9, 1992). 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:  Representatives Nesbitt, Diamont
FLEXIBLE COMPENSATION - MAKE PERMANENT A PROVISION ALLOWING SAVINGS IN EMPLOYER FICA CONTRIBUTIONS TO BE USED TO PAY FOR ADMINISTRATIVE EXPENSES OF FLEXIBLE COMPENSATION PROGRAMS FOR STATE EMPLOYEES AND EMPLOYEES OF EDUCATIONAL INSTITUTIONS SUPPORTED BY THE STATE.
Sec. 11.28A.  Section 14(i) of Chapter 1044 of the 1991 Session Laws, as amended by Section 42 of Chapter 561 of the 1993 Session Laws reads as rewritten:
"(i)	Subsections (a) through (d) of this section are effective January 1, 1990. Subsections (e) through (h) of this section are effective January 1, 1991.  Subsections (a) through (h) of this section shall expire December 31, 1994. 1997."

Requested by:   Representatives Nesbitt, Diamont, Hensley, Lee
TO 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; 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; TO MAKE CHANGES IN THE LEGISLATIVE RETIREMENT SYSTEM AND TO ALLOW RECIPROCITY BETWEEN THE DISABILITY INCOME PLAN OF NORTH CAROLINA AND THE DEATH BENEFIT PLAN FOR MEMBERS OF THE LEGISLATIVE RETIREMENT SYSTEM AND THE CONSOLIDATED JUDICIAL RETIREMENT SYSTEM; AND TO REMOVE THE EXCLUSION FOR WAR-RELATED DISABILITIES FROM THE DISABILITY INCOME PLAN.
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 provisions of G.S. 128-27(b1), provided that such benefits will be computed in accordance with subsection (b2) on or after July 1, 1967, but prior to July 1, 1969; and provided further that such benefits will be computed in accordance with subsection (b3) on or after July 1, 1969.  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. 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) reads as rewritten:
"(8)	The provisions of this subsection (8) shall apply to any member whose membership is terminated on or after July 1, 1963 and who becomes entitled to benefits hereunder in accordance with the provisions hereof.
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 provisions of G.S. 135-5(b1); provided that such benefits will be computed in accordance with (b2) on or after July 1, 1967, but prior to July 1, 1969; and provided further that such benefits will be computed in accordance with (b3) on or after July 1, 1969.  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.
b.	In lieu of the benefits provided in paragraph a of this subdivision (8), 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 20 or more years of creditable service, and who leaves his total accumulated contributions in said System, may elect to retire on an early retirement allowance upon attaining the age of 50 years or at 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 early retirement allowance so elected shall be equal to the deferred retirement allowance otherwise payable at the attainment of the age of 60 years reduced by the percentage thereof indicated below.
Age at	Percentage
 	Retirement 	Reduction
  59	   7
  58	  14
  57	  20
  56	  25
  55	  30
  54	  35
  53	  39
  52	  43
  51	  46
  50	  50
b1.	In lieu of the benefits provided in paragraphs a and b of this subdivision, any member who is a law-enforcement officer at the time of separation from service prior to the attainment of the age of 50 years, for any reason other than death or disability as provided in this Article, after completing 15 or more years of creditable service in this capacity immediately prior to separation from service, and who leaves his total accumulated contributions in this System may elect to retire on a deferred early retirement allowance upon attaining the age of 50 years or at any time thereafter; provided, that the member may commence retirement only 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 commence retirement.  The deferred early retirement allowance shall be computed in accordance with the service retirement provisions of this Article pertaining to law-enforcement officers.
b2.	In lieu of the benefits provided in paragraphs a and b of this subdivision, any member who is a law-enforcement officer at the time of separation from service prior to the attainment of the age of 55 years, for any reason other than death or disability as provided in this Article, after completing five or more years of creditable service in this capacity immediately prior to separation from service, and who leaves his total accumulated contributions in this System may elect to retire on a deferred early retirement allowance upon attaining the age of 55 years or at any time thereafter; provided, that the member may commence retirement only 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 commence retirement.  The deferred early retirement allowance shall be computed in accordance with the service retirement provisions of this Article pertaining to law-enforcement officers.
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.
c.	Should a beneficiary who retired on an early or service retirement allowance be reemployed by an employer participating in the Retirement System on a permanent full-time, part-time, temporary, or on fee-for-service basis, whether contractual or otherwise, the retirement allowance shall be suspended if the beneficiary receives or earns any of the following:
1.	Salary or fees or both in excess of one thousand five hundred dollars ($1,500) per month;
2.	Salary or fees or both in excess of thirteen thousand five hundred ($13,500) during any consecutive 12 calendar months;
3.	Salary or fees or both during any consecutive 12 calendar months, which is greater than fifty percent (50%) of the reported compensation during the 12 months of service preceding the effective date of retirement; or
4.	Salary or fees or both during any month, which when added to the retirement allowance at retirement exceeds the monthly compensation earned immediately prior to retirement, if reemployed by the same employer within 90 days of the effective date of retirement.
		The suspension of the retirement allowance shall be effective as of the first day of the month in which the beneficiary meets the conditions set forth in conditions 1 or 4 of this paragraph and effective as of the first day of the next succeeding month following the month in which the beneficiary meets the conditions set forth in conditions 2 or 3 of this paragraph.  The retirement allowance shall be reinstated the month following termination of reemployment or the month following the month in which the conditions set forth in this paragraph are no longer met.  The Board of Trustees may adjust the monetary limits in this paragraph by an amount equivalent to any across-the-board salary increase granted to employees of the State by the General Assembly.  Each employer shall report information monthly to the Board of Trustees on forms provided by the Board on each reemployed beneficiary sufficient for the effective enforcement of this paragraph.  Notwithstanding the foregoing, any beneficiary may irrevocable elect to recommence membership in the Retirement System immediately upon being restored to service, whereupon the retirement allowance shall cease.
d.	A beneficiary whose retirement allowance is suspended in accordance with the provisions of paragraph c and who is restored to service 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)  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."
(g)  G.S. 135-5(b14) reads as rewritten:
"(b14)	Service Retirement Allowance of Members Retiring on or after July 1, 1993. 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 G.S. 135-5(b)."
(h)  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)."
(i)  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 all three of the following conditions apply:
(1)	The member had attained such age and/or creditable service to be eligible to commence retirement with an early or service retirement allowance or had attained 20 years of creditable service.
(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."
 	(j)  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."
(k)  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, 1994 Regular Session.
(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."
(l)  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."
(m)  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."
(n)  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 for service as a legislator for service in the North Carolina General Assembly, exclusive of travel, per diem and expense allowances. travel and per diem."
This subsection applies to expense allowance paid on or after January 1, 1994.  Effective August 1, 1994, payroll deductions of compensation, as redefined by this section, shall be made.  Payroll deductions for expense allowance to cover the period from January 1, 1994, through July 31, 1994, shall be made prior to December 31, 1994.
(o)  Effective January 1, 1995, through December 31, 1996, any current member or former member of the General Assembly may purchase any legislative service for which the member does not have credit in the Legislative Retirement System by paying an amount equal to seven percent (7%) of the compensation on the last date of eligibility as provided for in G.S. 120-4.16, plus interest compounded annually equal to the average yield on the pension accumulation fund since that date.
(p)  Effective February 1, 1995, G.S 120-4.21 reads as rewritten:
"§ 120-4.21.  Service retirement benefits.
(a)	Eligibility; Application. – Any member in service  may retire with full benefits who has reached 65 years of age with five years of creditable service. Any member in service may retire with reduced benefits who has reached the age of 50 years with 20 years of creditable service or 60 years with five years of creditable service. The member shall make written application to the Board of Trustees to retire on a service retirement allowance on the first day of the particular calendar month he designates. The designated date shall be no less than one day nor more than 90 days from the filing of the application. During this period of notification, a member may separate from service without forfeiting his retirement benefits.
(b)	Computation. – Upon retirement from service in accordance with subsection (a) of this section before July 1, 1990, a member shall receive a service retirement allowance computed as follows:
(1)	For a member whose retirement date occurs on or after his 65th birthday and upon completion of five years of creditable service, four percent (4%) of his 'highest annual salary,' multiplied by the number of years of creditable service.
(2)	For a member whose retirement date occurs on or after his 60th and before his 65th birthday and upon completion of five years of creditable service, computation as in subdivision (1) of this subsection, reduced by one-fourth of one percent (1/4 of 1%) for each month his retirement date precedes his 65th birthday.
(b1)	Computation. – Upon retirement from service in accordance with subsection (a) of this section on or after July 1, 1990, but before February 1, 1995, a member shall receive a service retirement allowance computed as follows:
(1)	For a member whose retirement date occurs on or after his 65th birthday and upon completion of five years of creditable service, four and two-hundredths percent (4.02%) of his 'highest annual salary,'  multiplied by the number of years of creditable service.
(2)	For a member whose retirement date occurs on or after his 60th and before his 65th birthday and upon completion of five years of creditable service, computation as in subdivision (1) of this subsection, reduced by one-fourth of one percent (1/4 of 1%) for each month his retirement date precedes his 65th birthday.
(b2)	Computation. – Upon retirement from service in accordance with subsection (a) of this section on or after February 1, 1995, a member shall receive a service retirement allowance computed as follows:
(1)	For a member whose retirement date occurs on or after his 65th birthday and upon completion of five years of creditable service, four and two-hundredths percent (4.02%) of his 'highest annual salary',  multiplied by the number of years of creditable service.
(2)	For a member whose retirement date occurs on or after his 60th and before his 65th birthday and upon completion of five years of creditable service, computation as in subdivision (1) of this subsection, reduced by one-fourth of one percent (1/4 of 1%) for each month his retirement date precedes his 65th birthday.
(3)	For a member whose retirement date occurs on or after his 50th birthday and before his 60th birthday and upon completion of 20 years of creditable service, computation as in subdivision (2) of this subsection, reduced by the same percentage as provided for in Article 1 of Chapter 135 of the General Statutes.
(c)	Limitations. – In no event shall any member receive a service retirement allowance greater than seventy-five percent (75%) of his 'highest annual salary' nor shall he receive any service retirement allowance whatever while employed in a position that makes him a contributing member of any of the following retirement systems: The Teachers' and State Employees' Retirement System, the North Carolina Local Governmental Employees' Retirement System, the Law-Enforcement Officers' Retirement System, the Uniform Judicial Retirement System of North Carolina, the Uniform Solicitorial Retirement System of North Carolina or the Uniform Clerks of Courts Retirement System. or the Consolidated Judicial Retirement System.  If he should become a member of any of these systems, payment of his service retirement allowance shall be suspended until he withdraws from membership in that system."
(q)  Effective July 1, 1994, Article 6 of Chapter 135 of the General Statutes is amended by adding a new section to read:
"§ 135-114.  Reciprocity of membership service with the Legislative Retirement System and the Consolidated Judicial Retirement System.
Only for the purpose of determining eligibility for benefits accruing under this Article, membership service standing to the credit of a member of the Legislative Retirement System or the Consolidated Judicial Retirement System shall be added to the membership service standing to the credit of a member of the Teachers' and State Employees' Retirement System.  However, in the event that a participant or beneficiary is a retired member of the Legislative Retirement System or the Consolidated Judicial Retirement System whose retirement benefit was suspended upon entrance into membership in the Teachers' and State Employees' Retirement System, such membership service standing to the credit of the retired member prior to retirement shall be likewise counted.  Membership service under this section shall not be counted twice for the same period of time."
(r)  Effective July 1, 1994, G.S. 135-5 is amended by adding a new subsection to read:
"( l1)	Reciprocity of Death Benefit Plan. – Only for the purpose of determining eligibility for the death benefit provided for in subsection (l) of this section, membership service standing to the credit of a member of the Legislative Retirement System or the Consolidated Judicial Retirement System shall be added to the membership service standing to the credit of a member of the Teachers' and State Employees' Retirement System.  However, in the event that a participant or beneficiary is a retired member of the Legislative Retirement System or the Consolidated Judicial Retirement System whose retirement benefit was suspended upon entrance into membership in the Teachers' and State Employees' Retirement System, such membership service standing to the credit of the retired member prior to retirement shall be likewise counted.  Membership service under this section shall not be counted twice for the same period of time.  In no event shall a death benefit provided for in G.S. 135-5(l) be paid if a death benefit is paid under G.S. 135-63."
(s)  G.S. 135-101(6) reads as rewritten:
"(6)	'Disability' or 'Disabled' shall mean the mental or physical incapacity for the further performance of duty of a participant or beneficiary; provided that such incapacity was not the result of war, whether declared or not, armed or unarmed military or paramilitary conflict, terrorist activity, active participation in a riot, committing or attempting to commit a felony, or intentionally self-inflicted injury."
(t)  G.S. 135-105(c) reads as rewritten:
"(c)	The monthly benefit as provided in subsection (a) of this section shall be equal to fifty percent (50%) of 1/12th of the annual base rate of compensation last payable to the participant prior to the beginning of the short-term benefit period as may be adjusted for percentage increases as provided under G.S. 135-108 plus fifty percent (50%) of 1/12th of the annual longevity payment to which the participant would be eligible, to a maximum of three thousand dollars ($3,000) per month reduced by monthly payments for Workers' Compensation to which the participant may be entitled.  The monthly benefit shall be further reduced by the amount of any payments from the federal Veterans Administration, any other federal agency, or any payments made under the provisions of G.S. 127A-108, to which the participant or beneficiary may be entitled on account of the same disability.  Provided, that should a participant have earnings in an amount greater than the short-term benefit, the amount of the short-term benefit shall be reduced on a dollar-for-dollar basis by the amount that exceeds the short-term benefit."
(u)  G.S. 135-106(b) reads as rewritten:
"(b)	After the commencement of benefits under this section, the benefits payable under the terms of this section shall be equal to sixty-five percent (65%) of 1/12th of the annual base rate of compensation last payable to the participant or beneficiary prior to the beginning of the short-term disability period as may be adjusted for percentage increases as provided under G.S. 135-108, plus sixty-five percent (65%) of 1/12th of the annual longevity payment to which the participant or beneficiary would be eligible, to a maximum of three thousand nine hundred dollars ($3,900) per month reduced by any primary Social Security disability benefits and by monthly payments for Workers' Compensation to which the participant or beneficiary may be entitled, but the benefits payable shall be no less than ten dollars ($10.00) a month.  entitled. The monthly benefit shall be further reduced by the amount of any monthly payments from the federal Veterans Administration, any other federal agency or any payments made under the provisions of G.S.127A-108, to which the participant or beneficiary may be entitled on account of the same disability. Provided, in any event, the benefit payable shall be no less than ten dollars ($10.00) a month.  However, a disabled participant may elect to receive any salary continuation as provided in G.S. 135-104 in lieu of long-term disability benefits; provided such election shall not extend the first 36 consecutive calendar months of the long-term disability period. An election to receive any salary continuation for any part of any given day shall be in lieu of any long-term benefit payable for that day, provided further, any lump-sum payout for vacation leave shall be treated as if the beneficiary or participant had exhausted the leave and shall be in lieu of any long-term benefit otherwise payable. Notwithstanding the foregoing, upon the completion of four years from the conclusion of the waiting period as provided in G.S. 135-104, the beneficiary's benefit shall be reduced by an amount, as determined by the Board of Trustees, equal to a primary Social Security disability benefit to which the beneficiary might be entitled had the beneficiary been awarded Social Security disability benefits. Provided that, in any event, a beneficiary's benefit shall be reduced by an amount, as determined by the Board of Trustees, equal to a primary Social Security retirement benefit to which the beneficiary might be entitled.
Notwithstanding the foregoing, the long-term disability benefit is payable so long as the beneficiary is disabled until the earliest date at which the beneficiary is eligible for an unreduced service retirement allowance from the Retirement System, at which time the beneficiary would receive a retirement allowance calculated on the basis of the beneficiary's average final compensation at the time of disability as adjusted to reflect compensation increases subsequent to the time of disability and the creditable service accumulated by the beneficiary, including creditable service while in receipt of benefits under the Plan."
(v)  Subsections (s) through (u) of this section are effective January 1, 1988, provided, however, that in applying the provisions of G.S. 135-101, 135-105, and 135-106, as amended by this section to any person who was denied disability benefits, such person shall have 180 days after ratification of this act in which to make a timely application for such benefits.
(w)  Except as otherwise provided, this section becomes effective July 1, 1994.

PART 7.  OFFICE OF STATE BUDGET AND MANAGEMENT

Requested by:  Representatives Nesbitt, Diamont
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 Proceeds	-	-	1.7
Insurance Fund	     -	1.0	-
Non-Tax Revenue	       -	     2.7	        -
Total Availability	$299.4	$508.0	$520.9

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	$339.7	$459.4

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	      -	291.7	3.7

TOTAL BALANCE	$519.2	$631.4	$557.1

Requested by:  Representatives Nesbitt, Diamont
APPROPRIATIONS OF REMAINING AVAILABILITY TO RESERVES
Sec. 13. Any availability in the General Fund at the beginning of the 1994-95 fiscal year that is not required to balance the 1994-95 adopted budget is hereby appropriated as follows: (i) twenty-five percent (25%) to the Savings Reserve Account; (ii) twenty-five percent to the Repairs and Renovations Reserve Account; and (iii) fifty percent (50%) to a Reserve for School Technology.

Requested by:  Representatives Nesbitt, Diamont
RESERVE FOR IMPLEMENTATION OF FEDERAL OSHA REGULATIONS REGARDING BLOODBORNE PATHOGENS/USE OF FUNDS; LONG-RANGE PLAN
Sec. 14.  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.

Requested by:  Representative Holt
CRIMINAL JUSTICE INFORMATION NETWORK FUNDS
Sec. 15. (a)  The Office of State Budget and Management may use the sum of nine hundred thirty thousand dollars ($930,000) placed in a reserve in Section 13 of Chapter 24 of the Session Laws of the 1994 Extra Session to continue studying the development of the Criminal Justice Information Network according to the criteria enumerated in Section 13 of Chapter 24 of the Session Laws of the 1994 Extra Session.
(b) Subsection (b) of Section 13 of Chapter 24 of the Session Laws of the 1994 Extra Session reads as rewritten:
"(b)	There is created within the Office of State Budget and Management a Criminal Justice Information Network study committee to conduct the study required under this section.  The study committee shall be appointed by the Governor in consultation with the Lieutenant Governor, the Attorney General, and the Chief Justice of the North Carolina Supreme Court.  The Governor shall appoint no more than nine members to the study committee, and shall make the appointments based upon the appointees' knowledge, expertise, and responsibility within the criminal justice system, the juvenile justice system, and related areas.  All State and local government agencies shall cooperate fully with the study committee.  Prior to expenditure of funds for a consultant to assist in the study, the study committee shall report to the Joint Legislative Commission on Governmental Operations on the consultant selected, the work products to be provided by the consultant, and the cost of the contract, including an itemization of the cost components.  The request for proposals shall notify potential bidders that the committee will report this information to the Joint Legislative Commission on Governmental Operations.  The request for proposals shall also contain a provision that reads as follows:
'Eligibility for Future Requirements: The successful
bidder on this project shall not be considered for an
award on subsequent hardware, software, and software
support and related procurements which are based on
specifications or recommendations resulting from this
procurement.'
The Division of Purchase and Contract and the Office of State Budget and Management may delete this provision in the request for proposals by jointly (i) filing a written request with the Director of the Budget for authorization to delete this provision from the request for proposals; (ii) sending a copy of this written request for authorization to the Director of the Fiscal Research Division at the time the request is made; (iii) receiving written authorization to delete the provision from the Director of the Budget; and (iv) reporting the authorization, if granted, to the next meeting of the Joint Legislative Commission on Governmental Operations and to the Director of the Fiscal Research Division.
The study committee shall provide a monthly report on its progress (i)	to the Chairs of the Senate and House Appropriations Committees, (ii) to the Chairs of the Senate and House Justice and Public Safety Appropriations Subcommittees, and (iii) to the Information Resources Management Commission established by G.S. 143B-426.21 at the regularly scheduled meetings of the Commission.  The study committee shall report its final findings and recommendations to the General Assembly on or before February 1, 1995, April 1, 1995, and shall make an interim report by May 15, 1994."

Requested by:  Representatives Crawford, Wainwright 
STATE GRANT-IN-AID CATALOG
Sec. 16.  The Office of State Budget and Management, in cooperation with the Office of State Planning, shall compile and publish annually a catalog of grant-in-aid programs administered by State agencies.  The grant-in-aid catalog shall be organized similarly to the Catalog of Domestic Federal Assistance.  The grant-in-aid catalog shall assign a unique alpahanumeric identifier to each grant-in-aid program and the identifier shall be included in the accounting key of the State Accounting System so that expenditure information can be readily retrieved and analyzed.  Further, the grant-in-aid catalog shall contain the following information:
(1)	The name of each grant-in-aid program.
(2)	The name and business address of the administering agency, together with the telephone number of a contact person in the agency who is familiar with the grant-in-aid program.
(3)	A brief description of the purposes of the grant-in-aid program, along with a citation of the State or federal law authorizing the program.
(4)	A brief description of eligibility criteria, typical levels of grant award, number of grants awarded during the previous fiscal year, and funds available during the current and upcoming fiscal year.
(5)	Any other information that would serve to explain program features to the public and to interested applicants.
The Office of State Budget and Management and the Office of State Planning shall report to the General Assembly by February 1, 1995, regarding the progress in compiling and publishing a catalog of State grant-in-aid programs.

PART 8.  GENERAL ASSEMBLY

Requested by:   Representatives Crawford, Wainwright
FINANCIAL AUDIT OF THE DEPARTMENT OF INSURANCE
Sec. 17.  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: Representatives Crawford, Wainwright 
JOINT LEGISLATIVE COMMISSION ON SEAFOOD AND AQUACULTURE STEERING COMMITTEE
Sec. 18.  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.

Requested by:   Representatives Wilkins, Mercer
LRC STUDY CORPORATE ANNUAL REPORT FILING REQUIREMENT AND THE BUSINESS LICENSE INFORMATION OFFICE
Sec. 19. (a) The Legislative Research Commission may study whether the requirement under G.S. 55-16-22 that a corporation file an annual report with the Secretary of State should be modified.  The Commission may consider in its study the benefits and detriments of the filing requirement, the financial burden placed on the Secretary of State's Office and on corporations by the filing requirement, and any other issues relevant to the filing requirement.  The Commission may also study the Business License Information Office's master application system, the costs of the system to the State, the benefits of the system to the business community, and any other issues related to the master application system or the Business License Information Office.  The Legislative Research Commission may make its recommendations and submit an interim report to the 1995 General Assembly, Regular Session 1996, and may make a final report to the 1997 General Assembly.
(b) Of the funds appropriated in this act to the General Assembly for the 1994-95 fiscal year the sum of twenty-five thousand dollars ($25,000) is allocated to the Legislative Research Commission to conduct this study.

Requested by:   Representative Mercer
STUDY ALTERNATIVE METHODS TO FUND FIREMEN'S AND RESCUE SQUAD WORKER'S PENSION FUNDS.
Sec. 20.   (a) There is established the Firefighter and Rescue Worker Pension Fund Study Commission to be composed of 10 members:  five members to be appointed by the Speaker of the House of Representatives and five members to be appointed by the President Pro Tempore of the Senate.  The appointees shall serve until the termination of the Commission.  The Speaker of the House of Representatives and the President Pro Tempore of the Senate shall each designate a cochair from their appointees.  Either Cochair may call the first meeting of the Commission.  Vacancies shall be filled in the same manner as the original appointments were made.
(b) The Commission shall study alternative methods to increase the funding for the Firemen's Pension Fund and the Rescue Squad Worker's Pension Fund and any other issues relevant to that topic.
(c) With the prior approval of the Legislative Services Commission, the Legislative Administrative Officer shall assign professional and clerical staff to assist in the work of the Commission.  Clerical staff shall be furnished to the Commission through the Offices of the House and Senate supervisors of Clerks.  The expenses of employment of the clerical staff shall be borne by the Commission.  With the prior approval of the Legislative Services Commission, the Commission may hold its meetings in the State Legislative Building or the Legislative Office Building.
(d) The Study Commission shall submit a final written report of its findings and recommendations, including legislation, on or before the convening of the 1995 Session of the General Assembly.  All reports shall be filed with the Speaker of the House of Representatives and the President Pro Tempore of the Senate.  Upon filing its final report, the Commission shall terminate.
(e) Members of the Commission shall be paid per diem, subsistence, and travel allowances as follows:
(1)	Commission members who are also members of the General Assembly, at the rate established in G.S. 120-3.1.
(2)	Commission members who are officials or employees of the State or local government agencies, at the rate established in G.S. 138-6.
(3)	All other Commission members at the rate established in G.S. 138-5.
(f) There is allocated from the funds appropriated to the General Assembly's Legislative Services Commission's studies reserve to the Firefighter and Rescue Worker Pension Fund Study          Commission for its work the sum of twenty thousand dollars ($20,000) for the 1994-95 fiscal year.

PART 9.  GENERAL GOVERNMENT

Requested by:   Representatives Rogers, Black, Yongue, Crawford, Wainwright
INFORMATION HIGHWAY FUNDS
Sec. 21.  (a) Funds in the amount of seven million dollars ($7,000,000) in nonrecurring funds are appropriated in this act for the North Carolina Information Highway.  These funds shall be used to provide one-time grants of up to fifty thousand dollars ($50,000) each to State and local governmental entities to establish Information Highway sites.  To qualify for a grant, a State or local governmental entity must (i) have an authorized plan for the use of the grant funds and for the use of the Information Highway site, and (ii) demonstrate the willingness and ability to pay all of the expenses associated with the use and operations of the site.
(b) No one shall obligate the State to pay any nonrecurring or recurring costs related to the North Carolina Information Highway except to the extent that funds are appropriated by the General Assembly specifically for that purpose. No one shall obligate the State to pay any recurring costs related to the North Carolina Information Highway beyond the end of the fiscal period for which funds are appropriated for that purpose.
In no event shall anyone obligate the State to pay recurring operating expenses related to the North Carolina Information Highway for any non-State entity.
(c) 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.
(d)  Those State and local entities that have expended monies prior to June 1, 1994, on information highway equipment shall receive preferential consideration in expenditures pursuant to this section.

PART 10.  DEPARTMENT OF ADMINISTRATION

Requested by:  Representatives Crawford, Wainwright
GPAC/BUDGET REFORM:  STRATEGIC PLANS, PERFORMANCE-BASED BUDGETING, LONG-RANGE FINANCIAL MODEL
Sec. 22.  State Strategic Planning and Outcome Measures:
 	(a) G.S. 143A-17 is repealed.
(b) G.S. 143-3.5 reads as rewritten:
"§ 143-3.5.  Coordination of statistics. statistics; fiscal analysis required for any bill proposed by a State agency that affects the budget.
(a)	It shall be the duty of the Director Director, through the Office of State Budget and Management and the Office of State Planning to coordinate the efforts of governmental agencies in the collection, development, dissemination and analysis of official economic, demographic and social statistics pertinent to State budgeting.  The Office shall Director shall:
(1)	Prepare and release the official demographic and economic estimates and projections for the State;
(2)	Conduct special economic and demographic analyses and studies to support statewide budgeting;
(3)	Develop and coordinate cooperative arrangements with federal, State and local governmental agencies to facilitate the exchange of data to support State budgeting;
(4)	Compile, maintain, and disseminate information about State programs which involve the distribution of State aid funds to local governments including those variables used in their allocation; and, 
(5)	Develop and maintain in cooperation with other State and local governmental agencies, an information system providing comparative data on resources and expenditures of local governments. governments: and,
(6)	Report major trends that influence revenues and expenditures in the State budget in the current fiscal year and that may influence revenues and expenditures over the next five fiscal years.
Every fiscal analysis prepared by the Director or the Office of State Budget and Management addressing the State budget outlook shall encompass the upcoming five-year period.  Every fiscal analysis prepared by the Director or the Office of State Budget and Management addressing the impact of proposed legislation on the State budget shall estimate the impact for the first five fiscal years the legislation would be in effect.  To minimize duplication of effort in collecting or developing new statistical series pertinent to State planning and budgeting, including contractual arrangements, State agencies must submit to the Director proposed procedures and funding requirements.
(b)	Any bill proposed by an executive or judicial department, agency, institution, board, or commission that affects the State budget shall be accompanied by a fiscal analysis.  The fiscal analysis shall estimate the impact of the legislation on the State budget for the first five fiscal years the legislation would be in effect. 
(c)	This section shall not apply to the General Assembly, any of its committees and subcommittees, the Legislative Research Commission, the Legislative Services Commission, or any other committee or commission in the legislative branch."
(c) Article 1 of Chapter 143 of the General Statutes is amended by adding the following sections to read:
"§ 143-10.3.  Strategic planning process.
(a)	The Director, through the Office of State Budget and Management, shall establish and implement a strategic planning process for State government.  The strategic planning process shall be designed to produce statewide goals, and State agencies shall develop agency goals and objectives that are consistent with those statewide goals.  The Director, in conjunction with State agencies,  shall prepare and apply performance measures and indicators of program impact, and shall require agency performance to be reviewed periodically to determine progress toward statewide goals and agency goals.  Results of the strategic planning process and agency performance reviews shall be reflected in the budget document proposed by the Governor, as provided in G.S. 143-10.4.
The performance measures and indicators of program impact for each agency shall be based upon clear, unambiguous goals that are established by that agency.  The Director shall be responsible for developing and implementing statewide comprehensive performance measures and indicators of program impact in a standardized format applicable across agency lines.
(b)	If a member of the Council of State does not agree with the performance measures, departmental operations plans, and indicators of program impact developed in accordance with this section, G.S. 143-10.4, and G.S. 143-10.5, that apply to the member's department, the member of the Council of State shall submit to the Director of the Budget a statement of specific objections to the program measures and indicators of program impact.  The Director of the Budget shall submit the statement to the General Assembly in accordance with G.S. 143-11(5).
"§ 143-10.4.  Departmental operations plans.
The Director, through the Office of State Budget and Management and in conjunction with State agencies, shall have prepared biennially in the even-numbered years, a comprehensive operations plan for each department, agency, and institution, for which the Director may recommend an appropriation of State funds in the next biennial period.  The operations plans shall address the statewide and agency goals contained in the strategic plans developed in accordance with G.S. 143-10.3.  The operations plans shall provide objectives, activities, and supporting statistics for the current biennium and for the following three biennial periods.  The operations plans shall also provide clear, unambiguous performance measures and outcome indicators, which measures and indicators shall be used for program evaluation and shall be reported in the  Governor's biennial budget submission.
The Director shall provide unified planning and budgeting instructions to the departments, agencies, and institutions for use in developing operations plans and biennial budgets.
"§ 143-10.5.  Development of performance measures for major programs.
(a)	The Director of the Budget, through the Office of State Budget and Management and through State agencies, departments, and institutions, shall develop performance measures for the major programs for each State agency, department, and institution.  These performance measures shall be developed as part of the biennial comprehensive plan and shall serve as the basis for the development of the biennial budget, beginning with the 1995-97 fiscal biennium.
(b)	The Director shall institute a standard process for developing program performance measures and for evaluating performance results, uniform performance measurement terms, and a standardized format for presentation.
(c)	The program performance measurement system shall include:
(1)	A description of the key performance measures for the program.  The performance measures should include: program efficiency or unit cost, outputs or program activity, and outcomes or performance results, with emphasis on the use of program outcome measures.
(2)	Identification and description of the current level of performance.
(3)	Targets for the desired level of performance.
(4)	Identification of future performance measures that should be developed and a time frame for development.
(5)	A methodology for regular monitoring of departmental, agency, and institutional performance in relation to the measure.
(6)	A methodology for assessing programs that have achieved the desired performance targets through innovative management actions.
(d)	The Director of the Budget shall prepare a comprehensive plan for the implementation of a performance measurement system and shall present the plan to the General Assembly at the same time the 1995-97 fiscal biennium budget is submitted to the General Assembly.  With regard to programs for which it is anticipated that performance measures will not be fully developed by that date, the Director of the Budget shall submit to the General Assembly at that time, a plan and timetable for the development and implementation of performance measures.  In developing the plan, consideration shall be given to any recommendations and reports of the Governmental Accounting Standards Board.  In the event the Director shall conclude that it is not feasible to develop performance measures for particular programs, the Director shall set forth detailed reasons for the conclusion in the report.
(e)	Beginning in 1996, the Director of the Budget shall report to the General Assembly no later than February 1 in odd-numbered years and no later than April 1 in even-numbered years on:
(1)	The status of the development of the program performance measurement system.
(2)	The programs that have not achieved the desired level of performance and the reasons performance targets were not achieved.
(3)	The programs that have achieved performance targets through management innovation.
"§ 143-10.6.  Responsibilities of other State agencies.
All State agencies, departments, and institutions shall cooperate with the Director of the Budget to assist in the implementation of strategic planning, departmental planning, and performance budgeting.  The Director of the Budget may assign any responsibility to any State agency, department, or institution as appropriate or needed to implement strategic planning, departmental planning, and performance budgeting." 
(d) G.S. 143-11 reads as rewritten:
"§ 143-11.  Survey of departments.
On or before the fifteenth day of December, biennially in the even-numbered years, the Director shall make a complete, careful survey of the operation and management of all the departments, bureaus, divisions, officers, boards, commissions, institutions, and agencies and undertakings of the State and all persons or corporations who use or expend State funds, in the interest of economy and efficiency, and of obtaining a working knowledge upon which to base recommendations to the General Assembly as to appropriations for maintenance and special funds and capital expenditures for the succeeding biennium.  If the Director and the Commission shall agree in their recommendations for the budget for the next biennial period, he shall prepare their report in the form of a proposed budget, together with such comment and recommendations as they may deem proper to make.  If the Director and Commission shall not agree in substantial particulars, the Director shall prepare the proposed budget based on his own conclusions and judgment, and the Commission or any of its members retain the right to submit separately to the General Assembly such statement of disagreement and the particulars thereof as representing their views.  The budget report shall contain a complete and itemized plan in accordance with G.S. 143-10.3, 143-10.4, and 143-10.5 of all proposed expenditures for each State department, bureau, board, division, institution, commission, State agency or undertaking, person or corporation who receives or may receive for use and expenditure any State funds, in accordance with the classification of funds and accounts adopted by the State Controller, and of the estimated revenues and borrowings for each year in the ensuing biennial period beginning with the first day of July thereafter.  Opposite each item of the proposed expenditures, the budget shall show in separate parallel columns the amount expended for the last preceding appropriation fiscal year, for the current appropriation fiscal year, and the increase or decrease.  The budget shall clearly differentiate between general fund expenditures for operating and maintenance, special fund expenditures for any purpose, and proposed capital outlays. improvements.
The Director shall accompany the budget with:
(1)	A budget message supporting his recommendations and outlining a financial policy and program for the ensuing biennium.  The message will include an explanation of increase or decrease over past expenditures, a discussion of proposed changes in existing revenue laws and proposed bond issues, their purpose, the amount, rate of interest, term, the requirements to be attached to their issuance and the effect such issues will have upon the redemption and annual interest charges of the State debt.
(2)	State Controller reports including:
a.	An itemized and complete financial statement for the State at the close of the last preceding fiscal year ending June 30.
b.	A statement of special funds.
(2a)	A statement showing the itemized estimates of the condition of the State treasury as of the beginning and end of each of the next two appropriation fiscal years.
(3)	A report on the fees charged by each State department, bureau, division, board, commission, institution, and agency during the previous fiscal year, the statutory or regulatory authority for each fee, the amount of the fee, when the amount of the fee was last changed, the number of times the fee was collected during the prior fiscal year, and the total receipts from the fee during the prior fiscal year.
(4)	A statement showing the State Board of Education's request, in accordance with G.S. 115C-96, for sufficient funds to provide textbooks to public school students.
(5)	Statements of the objections of members of the Council of State received pursuant to G.S. 143-10.3(b) to the performance measures, departmental operations plans, and indicators of program impact prepared in accordance with G.S. 143-10.3, 143-10.4, and 143-10.5.
(6)	A list of the budget requests of members of the Council of State that are not included in the proposed budget.
It shall be a compliance with this section by each incoming Governor, at the first session of the General Assembly in his term, to submit the budget report with the message of the outgoing Governor, if he shall deem it proper to prepare such message, together with any comments or recommendations thereon that he may see fit to make, either at the time of the submission of the said report to the General Assembly, or at such other time, or times, as he may elect and fix.
The function of the Advisory Budget Commission under this section applies only if the Director of the Budget consults with the Commission in preparation of the budget." 
Sec. 23. Implement Performance Budgeting:  The Director of the Budget shall develop a plan for preparing the 1995-97 fiscal biennium budget in a performance budget format.   In developing  the plan, consideration shall be given to the program areas of health and safety, environment, correction, justice, social and economic well-being, and economic development and commerce, for which funding shall be provided.  The performance budget format shall include the following:
(1)	A description of the resources previously expended and proposed for each major program, including expenditures and numbers of employees.
(2)	A description of the goals, objectives, and need for programs, including statutory requirements.
(3)	A description of the principal program services and activities performed in order to meet program goals and the resources allocated to the major program services.
(4)	A description of the efficiency, or unit cost, of providing program services and activities.
(5)	A presentation of information on program performance and accomplishments in relation to performance measures established by the Director of the Budget in the department plan, as prescribed in G.S. 143-10.4 and G.S. 143-10.5.
(6)	Line item detail on expenditure data shall be provided at the single digit level consistent with the State Accounting System (SAS) chart of accounts as prescribed by the State Controller.  The source and amounts of funding for each program shall be identified.
(7)	Any changes in the proposed scope of any budget elements, other than to provide for increases in costs due to inflation, shall include explanations as to the impact of the expected changes upon the outputs and performance outcomes of that element subprogram or program.
Sec. 24. Annual Financial Model Required:
G.S. 143-15.1 reads as rewritten:
"§ 143-15.1.   Current Operations Appropriations Act. Act; General Fund Financial Model.
(a)	The General Assembly shall enact the Current Operations Appropriations Act by June 15 of odd-numbered years and by June 30 of even-numbered years in which a Current Operations Appropriations Act is enacted.  The Current Operations Appropriations Act shall state the amount of General Fund appropriations availability upon which the General Fund budget is based.  The statement of availability shall list separately the beginning General Fund credit balance, General Fund revenues, and any other components of the availability amount. 
The General Fund operating budget appropriations, including appropriations for local tax reimbursements and local tax sharing, for the second year in a Current Operations Appropriations Act that contains a biennial budget shall not be more than two percent (2%) greater than the General Fund operating budget appropriations for the first year of the biennial budget.
(b)	The General Assembly shall review the results of the General Fund Financial model, a computer- based financial model used to project long-term expenditure and revenue trends under various simulations, in its budget deliberations.  The model shall be maintained and, from time to time, updated by the Fiscal Research Division of the General Assembly."

Requested by:   Representatives Crawford, Wainwright
AUTHORIZATION OF PRIVATE LICENSE TAGS ON STATE-OWNED MOTOR VEHICLES
Sec. 25.  Section 21(a) of Chapter 321 of the 1993 Session Laws reads as rewritten:
"(a)  Pursuant to the provisions of G.S. 14-250, for the 1993-95 fiscal biennium, the General Assembly authorizes the use of private license tags on State-owned motor vehicles only for the State Highway Patrol and for the following:
Department	Exemption Category	Number
Motor Vehicles	License and Theft	97
Justice	SBI Agents	277
Correction	Probation/Parole Surveillance
Officers (intensive 
probation)
Crime Control and	ALE Officers	25
Public Safety	92
Revenue	Criminal Investigations	 2
Administration	State Capitol Police	 3" 

Requested by:  Representatives Crawford, Wainwright, Richardson
STATE VETERANS HOME
Sec. 26.  Subsection (a) of Section 31 of Chapter 561 of the 1993 Session Laws reads as rewritten:
"Sec. 31. (a) It is the intent of the General Assembly that no State funds shall be appropriated in future years to support operational costs of the State Veterans Home in Fayetteville. Fayetteville receive its primary income from fees, charges, and reimbursements, and that State appropriated funds be made available only in the event that other sources are insufficient to cover essential operating costs."

Requested by:   Representative Michaux
RENOVATIONS OF THE OLD REVENUE AND OLD EDUCATION BUILDINGS
Sec. 26.1.  The Office of State Construction of the Department of Administration shall schedule the renovations of the Old Revenue and Old Education Buildings so that the agencies who have been designated as the primary tenants for those buildings may move into them as soon as possible.  To the extent practical, the Office of State Construction shall conduct the renovations in phases so as to expedite the occupancy of the Old Revenue and Old Education Buildings.

Requested by:   Representatives Colton, Diamont, Easterling, Holt
DAY-CARE FACILITY TASK FORCE
Sec. 26.1. (a)  Of the funds appropriated in this act or otherwise available to the Department of Administration for the 1994-95 fiscal year, the Department of Administration shall develop an innovative, state-of-the art day-care facility in the central government complex in compliance with Article 7, Chapter 110 of the General Statutes and upon the advice and recommendation of the North Carolina Day-Care Facility Task Force.  The facility shall serve as a highly visible project demonstrating the State's commitment to early childhood developmental care.
(b) There is created the North Carolina Day-Care Facility Task Force within the Department of Administration for organizational, budgetary, and administrative purposes only. The Task Force shall be composed of nine members of whom three members are ex officio and six are appointed.  The ex officio members may designate a representative from their departments, divisions, or offices to represent them on the Task Force.
(1)	The Director of the Division of Social Services, Department of Human Resources;
(2)	The Director of the Division of Maternal and Child Health of the Department of Environment, Health, and Natural Resources;
(3)	The Superintendent of Public Instruction;
(4)	Two members of the Child Day-Care Commission, one appointed by the President Pro Tempore of the Senate and one appointed by the Speaker of the House of Representatives;
(5)	Two members of the public, appointed by the Governor;
(6)	A member of the Senate appointed by the President Pro Tempore of the Senate; and 
(7)	A member of the House of Representatives appointed by the Speaker of the House of Representatives.
(c)  All members of the Task Force are voting members.  All appointments shall be made by and terms commence on August 1, 1994.  Vacancies in the appointed membership shall be filled by the appointing officer who made the initial appointment.  The Governor shall appoint a chair of the Task Force biennially from the membership of the Task Force.
(d)  The Task Force shall:
(1)	Identify and select a site for the State day-care facility;
(2)	Advise the Department of Administration on matters related to developing the site into a safe, well-equipped, educational day-care facility;
(3)	Advise the Department of Administration on matters related to hiring and firing of day-care personnel and standards of performance of day-care personnel;
(4)	Advise the Department of Administration on developing guidelines for selecting children who shall be eligible for admission into the day-care facility, including children of State employees, inner-city residents of the City of Raleigh, and private citizens and disabled children and other children who qualify for federal assistance;
(5)	Advise the Department of Administration on setting payment rates of persons who use the day-care facility, taking into account ability to pay, State and federal subsidies, and access to federal and other funding;
(6)	Periodically assess the operations of the State day-care facility;
(7)	Conduct a feasibility study of developing a day-care facility at Dorthea Dix Hospital; and
(8)	Report to the 1995 General Assembly on the progress of developing the day-care facility, including progress in selecting a site for the day-care facility, renovating the site to house the day-care facility, and hiring staff for the day-care facility.

PART 11. DEPARTMENT OF CULTURAL RESOURCES

Requested by:  Representatives Crawford, Wainwright, Colton
ART IN STATE BUILDINGS/ADMINISTRATIVE COSTS
Sec. 27.(a) G.S. 143-408.3 reads as rewritten:
"§ 143-408.3.  Definitions.
In this Article, unless the context otherwise requires, the following definitions shall apply:
(1)	'Construction' means construction, reconstruction, remodeling, or renovation.
(2)	'Contracting officer' means the public officer or body responsible for securing the preparation of plans and specifications for the purpose of negotiating or advertising for bids for the construction of a State building.
(3)	'Designer' means an architect or engineer licensed in North Carolina.
(4)	'Principal user' means the State agency which will be the principal occupant of the proposed State building.  However, in cases where more than one agency will occupy a building, 'principal user' means the Secretary of the Department of Administration.
(5)	'State building' means any permanent structure together with all grounds and appurtenant structures which are intended as offices; laboratories; workshops; courtrooms; hearing or meeting rooms; medical, dental, library, or museum space for use by the general public; or other space for carrying on the functions of a State agency which is to be constructed, reconstructed, remodeled, or renovated using an appropriation of State funds when the amount appropriated for that purpose exceeds five hundred thousand dollars ($500,000). one million dollars ($1,000,000).
(6)	'Works of art' or 'art works' includes, but is not limited to, paintings, sculptures, fountain sculptures, frescoes, mobiles, murals, collages, mosaics, bas-reliefs, tapestries, photographs, drawings, silk screens, etchings, and lithographs.  The term 'works of art' or 'art works' shall not include any reproductions of original art by mechanical means."
(b) G.S. 143-408.4 reads as rewritten:
"§ 143-408.4.  Appropriations and procedure for inclusion of art works.
(a)	One-half of one percent (0.5%) of the amount spent appropriated for the construction of each State building, not including the amount of funds used for land acquisition, shall be used for the acquisition of works of art for that building.
(b)	The amount to be expended for the acquisition of art works for the building shall be included in the stated limit of the design contract and the amount shall also be incorporated by the designer in his total cost estimate for construction.
(c)	If the contracting officer, the principal user and the Secretary of Administration jointly determine and certify in writing that, due to the use of the building or other reasons, a particular construction project is not appropriate for the placement of art works the provisions of this Article shall not apply, or, if not appropriate for the expenditure of a full one-half percent (0.5%) of the amount spent appropriated for construction as defined in G.S. 143-408.3, then in some percentage up to one-half percent.
 	(d)  The selection and commissioning of artists and the acquisition and execution of works of art for State buildings undertaken pursuant to this Article shall be exempt from the provisions of all State bidding requirements.  Expenditures for works of art as provided in this Article shall be contracted for separately from all other items in the construction project.
(e)	Of the one-half of one percent (0.5%) of the amount appropriated appropriated, or, in cases when an appropriation has been made for planning or design only, the amount approved by the Office of State Construction for the construction cost of a State building which that is dedicated to the acquisition of works of art pursuant to subsection (a) of this section, no more than eight percent (8%) twenty percent (20%) of those funds may be used for the administrative costs of acquiring the art works.  Funds for the administrative costs for acquisition of the art works shall be disbursed to the Department of Cultural Resources at the time the design contract is signed.
(e1)	Of the one-half of one percent (0.5%) of the amount estimated for the construction cost of a State building that is dedicated to the acquisition of works of art pursuant to subsection (a) of this section, up to ten percent (10%) of the funds reserved for the artist's fee may be used as advanced planning funds to enable the artist, upon selection, to develop working drawings and to incorporate plans for the art work in the construction documents for the State building.  Funds for advanced planning shall be disbursed at the time the artist's contract is approved.
(e2)	Of the one-half of one percent (0.5%) of the amount appropriated for the construction cost of a State building that is dedicated to the acquisition of works of art pursuant to subsection (a) of this section, two percent (2%) shall be placed in a nonreverting fund for the repair and conservation of the works of art in the Art Works for State Buildings Collection in the Department of Cultural Resources.
(f)	The Department of Cultural Resources may issue any rules necessary for the implementation of this act Article and shall administer the program created by this act Article through the North Carolina Arts Council."
(c) G.S. 143-408.5(a) reads as rewritten:
"(a)	Whenever a new State building is to be constructed, the contracting officer, together with the designer who has been engaged to prepare the plans for the project, shall consult with the principal user and the Public Arts Administrator of the North Carolina Arts Council Council, prior to the schematic phase of the building, regarding the works of art to be included in the design of the building and the artist or craftsman to be commissioned for the project."
(d) This section applies to State buildings authorized after September 1, 1992.

Requested by:   Representatives Crawford, Wainwright
TRYON'S PALACE ARTIFACTS
Sec. 28. G.S. 121-20 reads as rewritten:
"§ 121-20. Commission to receive and expend funds donated or made available for restoration of Tryon's Palace. Palace; Commission to acquire and sell artifacts for Tryon's Palace.
 	(a)  In addition to exercising the powers and duties imposed upon the Tryon Palace Commission by Chapter 791 of the Session Laws of 1945 and Chapter 233 of the Session Laws of 1949, the Tryon Palace Commission is hereby fully authorized and empowered to receive and expend and disburse, for the restoration of the said Tryon's Palace, all such funds and property which were provided for said purpose by the last will and testament of Maude Moore Latham, deceased, and the said Commission shall likewise have the power and authority to receive and expend all such other funds as may be donated or made available for the purpose of restoring the said Palace or for the purpose of furnishing and equipping same and the grounds on which the same is located at New Bern, North Carolina.
The Tryon Palace Commission is hereby authorized, empowered and directed to designate some person as financial officer and treasurer, to disburse the funds and property devised by Maude Moore Latham to the said Tryon Palace Commission for the aforesaid purpose and all such other funds as may be donated or made available to the said Commission for expenditure for the aforesaid purposes. The said financial officer and treasurer shall be made the custodian of all stocks, bonds and securities and funds hereinbefore referred to and shall be authorized and empowered to sell, convert and transfer any stocks, bonds and securities held for such purpose, subject to and with the advice and approval of a finance committee to be appointed by the Tryon Palace Commission for such purpose. The sale and conversion and transfer of said securities shall be made when necessary to provide funds required for the said restoration and at such time as, in the opinion of the finance officer and treasurer, when approved by the finance committee, will be to the interests and advantage of the Tryon Palace Commission and the purposes for which said funds and securities were provided.
The finance officer and treasurer aforesaid shall be required to give such bond as, in the opinion of the Tryon Palace Commission, is proper for the faithful performance as finance officer and treasurer, and shall render to the Tryon Palace Finance Committee, with copies to the Department of Cultural Resources and the State Treasurer, annual or ad interim detailed reports of moneys and/or securities received, exchanged or converted into cash. Checks issued against such funds shall be countersigned by the chairman of Tryon Palace Commission, or by one duly authorized by the said Commission.
The finance officer and treasurer shall serve without compensation; however, any expenses incurred for the faithful performance of said duties, including the cost of the bond, shall be borne by the Tryon Palace Commission, from the proceeds of the funds thus handled.
The Tryon Palace Commission shall have the power and authority in its discretion to call upon the Treasurer of the State of North Carolina to act as treasurer of the said funds and properties and, if so designated, said treasurer shall exercise all the powers and duties herein imposed upon the financial officer and treasurer hereinbefore referred to.
The Tryon Palace Commission is hereby authorized and empowered to expend the funds hereinbefore referred to and it may disburse said funds through the Department of Cultural Resources in the event it is found more practical to do so, and said Commission shall cooperate with the Department of Cultural Resources of the State of North Carolina in the expenditure of the funds for the restoration of said Tryon's Palace provided by two trust funds created by Maude Moore Latham in her lifetime, which funds shall be expended in accordance with the terms and provisions of said trusts for the purposes therein set out.
(b)	The Tryon Palace Commission may solicit, accept, and hold artifacts and furnishings, and may acquire them by purchase or gift for the interpretive needs and development of Tryon Palace Historic Sites and Gardens.  The Commission may dispose of by trade, sale, or transfer, in accordance with accepted museum practices, any accessioned or unaccessioned artifacts and furnishings in the custody of the Commission, or its appointed officers, that are determined to have no further value for official or administrative purposes or for research, reference, or interpretation.  Any proceeds realized through the deaccession and sale of artifacts and furnishings shall be placed in a collections fund administered by the Tryon Palace Commission.  Monies received by the Commission, after deduction of the expenses attributable to that sale, shall be used for the acquisition of artifacts and furnishings necessary or desirable for research, reference, and interpretation at Tryon Palace Historic Sites and Gardens."

Requested by:   Representatives Crawford, Wainwright
CULTURAL RESOURCES MAY SELL ARTIFACTS
Sec. 29.  G.S. 121-7(a) reads as rewritten:
"(a) The Department of Cultural Resources shall maintain and administer the North Carolina Museum of History for the collection, preservation, study, and exhibition of authentic artifacts and other historical materials relating to the history and heritage of North Carolina. The Department, with the approval of the Historical Commission, may acquire, either by purchase, gift, or loan such artifacts and materials, and, having acquired them, shall according to accepted museum practices classify, accession, preserve, and where feasible exhibit such materials and make them available for study. Within available funds, one or more branch museums of history may be established and administered by the Department. The Department of Cultural Resources, subject to the availability of staff and funds, may give financial, technical, and professional assistance to nonstate historical museums sponsored by governmental agencies and nonprofit organizations according to regulations adopted by the North Carolina Historical Commission.
The Department of Cultural Resources may, with the explicit approval of the North Carolina Historical Commission sell, trade, or place on permanent loan any artifact owned by the State of North Carolina and in the custody of and curated by the Division of Archives and History, unless the sale, trade, or loan would be contrary to the terms of acquisition.  The net proceeds of any sale, after deduction of the expenses attributable to that sale, shall be deposited to the State treasury to the credit of the Division of Archives and History Artifact Fund, and shall be used only for the purchase of other artifacts.  No artifact curated by any agency of the Department of Cultural Resources may be pledged or mortgaged."

Requested by:   Representatives Crawford, Wainwright, Hensley
CULTURAL RESOURCES SECURITY OFFICERS
Sec. 30.  Section 34 of Chapter 321 of the 1993 Session Laws reads as rewritten:
"Sec. 34. (a)	On July 1, 1994, the Department of Cultural Resources shall redefine the job responsibilities of its security positions positions, with the exception of the security positions for the North Carolina Museum of Art, so that the services of a certified law enforcement officer are no longer required, and shall accordingly discontinue payments to the Law Enforcement Officers' Retirement System.
(b)	The Department of Cultural Resources in cooperation with the Department of Administration shall develop a plan to transfer by July 1, 1995, the security positions now under the North Carolina Museum of Art, Department of Cultural Resources, to the State Capitol Police, Department of Administration.   The Department of Cultural Resources and the Department of Administration shall submit the plan to the General Assembly by March 1, 1995.  The plan shall include all of the following:
(1)	An evaluation of the security technology currently installed in the North Carolina Museum of Art and recommendations regarding any additional equipment that may be needed to ensure adequate security for the Museum.
(2)	The establishment of a State Capitol Police substation or its equivalent in close proximity to State facilities located on Reedy Creek Road or Blue Ridge Road so that adequate security shall be provided to State property in that vicinity.
(3)	An agreement from the North Carolina Museum of Art to make available to the State Capitol Police any special training needed by officers deployed to provide security at the Museum.
(4)	A detailed cost proposal for the plan."

PART 12.  OFFICE OF THE GOVERNOR

Requested by:   Representatives Crawford, Wainwright
REPORT TO AUDITOR ON TRANSFERS BETWEEN OBJECTS AND ITEMS
Sec. 32.  G.S. 143-23(a1) reads as rewritten:
"(a1)	No transfers may be made between objects or line items in the budget of any department, institution, or other spending agency; however, with the approval of the Director of the Budget, a department, institution, or other spending agency may spend more than was appropriated for an object or line item if the overexpenditure is:
(1)	In a purpose or program for which funds were appropriated for that fiscal period and the total amount spent for the purpose or program is no more than was appropriated for the purpose or program for the fiscal period;
(2)	Required to continue a purpose or program because of unforeseen events, so long as the scope of the purpose or program is not increased;
(3)	Required by a court, Industrial Commission, or administrative hearing officer's order or award or to match unanticipated federal funds;
(4)	Required to respond to an unanticipated disaster such as a fire, hurricane, or tornado; or
(5)	Required to call out the National Guard.
The Director of the Budget shall report on a quarterly basis to the Joint Legislative Commission on Governmental Operations and to Operations, the Fiscal Research Division of the Legislative Services Office 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 and to Operations, the Fiscal Research Division of the Legislative Services Office. 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 13.  DEPARTMENT OF INSURANCE

Requested by:   Representatives Crawford, Wainwright
CONTROLLER'S RECOMMENDATIONS/INSURANCE DEPARTMENT'S CHART OF ACCOUNTS
Sec. 33.  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 noninterest 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 noninterest 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 noninterest 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:   Representatives Crawford, Nesbitt
CONSUMER PROTECTION FUND
Sec. 34.  G.S. 58-2-215(d) reads as rewritten:
"(d)	In no event shall more than fifty percent (50%) 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."

PART 14.  DEPARTMENT OF REVENUE

Requested by:  Representatives Crawford, Wainwright
REIMBURSEMENT FOR COST OF COLLECTING WHITE GOODS TAX
Sec. 35.  (a) Section 10 of Chapter 471 of the 1993 Session Laws is repealed.
(b)	Section 11 of Chapter 471 of the 1993 Session Laws reads as rewritten:
"Sec. 11.  Sections 1 through 5 of this act and this section become effective January 1, 1994.  Section 3 of this act expires July 1, 1998.  Section 6 of this act becomes effective July 1, 1998.  Sections 7, 8, and 9 of this act become effective July 1, 1999.  Section 10 of this act becomes effective January 1, 1995.
The repeal of the tax imposed by Section 3 of this act does not affect the rights or liabilities of the State, a taxpayer, or another person that arose during the time the tax was in effect.  The first report submitted by the Department to the Environmental Review Commission under G.S. 130A-309.85, as enacted by this act, shall cover the period from January 1, 1994, to June 30, 1994."

PART 15.  STATE BOARD OF ELECTIONS

Requested by: Representatives Crawford, Wainwright 
STATE BOARD OF ELECTIONS NEEDS ASSESSMENT
Sec. 36.  (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 and Management, 
(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:   Representatives Black, Rogers
AID TO STUDENTS ATTENDING PRIVATE COLLEGES/ PROCEDURE
Sec. 37.  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 four hundred fifty dollars ($450.00) 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 one hundred fifty dollars ($1,150) 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:   Representatives Black, Rogers, Sutton 
INCENTIVE SCHOLARSHIP PROGRAM FOR NATIVE AMERICANS
Sec. 38.  (a)  The Board of Governors of The University of North Carolina shall establish the Incentive Scholarship Program for Native Americans to provide opportunities for Native Americans who are residents of North Carolina to attend constituent institutions of The University of North Carolina under rules adopted by the Board of Governors.  Scholarships awarded under the program shall carry a maximum value of three thousand dollars ($3,000) per recipient per academic year, reduced by any amount of need-based aid that the recipient may receive from Pell Grants, North Carolina Student Incentive Grants, Supplemental Educational Opportunity Grants, or the American Indian Student Legislative Grant Program.  To be eligible for such a scholarship, a student shall be a Native American, defined as an individual who maintains cultural identification as a Native American through membership in an Indian tribe recognized by the United States or by the State of North Carolina or through other tribal affiliation or community recognition.
(b) The Board of Governors of The University of North Carolina shall provide for the orderly transition of the American Indian Legislative Scholarship Program into the Incentive Scholarship Program for Native Americans, incorporating the purposes of both programs into a single administrative entity.
(c)  Of the funds appropriated to the Board of Governors of The University of North Carolina for the 1994-95 fiscal year in this act, three hundred thirty-three thousand dollars ($333,000) shall be used to underwrite the cost of awarding scholarships, under the provisions of  subsection (a) of this section, for the benefit of students enrolled in the 1994-95 academic year.  It is the intent of this section that the funds required to fund fully the program shall be included in the continuation budget in subsequent fiscal years.

Requested by:   Representatives Black, Rogers
AGRICULTURAL PROGRAMS
Sec. 39.  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:  Representative Barnes
UNIVERSITY OF NORTH CAROLINA MANAGEMENT FLEXIBILITY
Sec. 40.  (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.  This section expires 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. 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."
 	(d)  This subsection and subsection (c) of this section are effective upon ratification.  Subsection (a) of this section becomes effective June 30, 1994.  Subsection (b) of this section become effective July 1, 1994.

Requested by:   Representatives Black, Rogers, Nesbitt
NCSU COMPETITIVE INDUSTRIES/FUNDS
Sec. 41.  (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 of the 1993 Session Laws is repealed.

Requested by: Representatives Black, Rogers, Fussell
NURSE ANESTHETIST TRAINING FUNDS
Sec. 42. 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."

Requested by:   Representatives Black, Rogers
TEACHING IMPROVEMENT FUNDS
Sec. 43. (a) Of the funds appropriated to the Board of Governors of The University of North Carolina in this act for the schedule of priorities, three million six hundred sixty thousand seven hundred dollars ($3,660,700) shall be used for the 1994-95 fiscal year to reduce the average student-faculty ratio at all constituent institutions of The University of North Carolina to no more than 16 to 1 beginning with the 1994-95 academic year.
(b)  The Board of Governors of The University of North Carolina shall adopt the rules necessary to implement this section.

Requested by:   Representatives Black, Rogers, Oldham
UNC TUITION SURCHARGE EXCEPTION
Sec. 44.  Subsection (b) of Section 89 of Chapter 321 of the 1993 Session Laws reads as rewritten:
 "(b)	The Board of Governors of The University of North Carolina shall ensure that procedures are established that are necessary to impose a twenty-five percent (25%) tuition surcharge on students who take more than 140 degree credit hours to complete a baccalaureate degree in a four-year program or more than one hundred ten percent (110%) of the credit hours necessary to complete a baccalaureate degree in any program officially designated by the Board of Governors as a five-year program.  The calculation of these credit hours taken at a constituent institution or accepted for transfer shall exclude hours earned through the College Board's Advanced Placement or CLEP examinations, through institutional advanced placement or course validation, or through summer term or extension programs.  No surcharge shall be imposed on any student who exceeds the degree credit hour limits within the equivalent of four academic years of regular term enrollment, or within five academic years of regular term enrollment in a degree program officially designated by the Board of Governors as a five-year program.  The Board shall report to the Joint Legislative Education Oversight Committee by April 1, 1994, on its recommendations for implementing this surcharge."

Requested by:   Representatives Black, Rogers, Nesbitt
NURSING SCHOLARS PROGRAM
Sec. 45. (a) G.S. 90-171.61(b) reads as rewritten:
" (b)	The Nursing Scholars Program shall be used to provide the following:
(1)	A four-year scholarship loan in the amount of five thousand dollars ($5,000) per year, per recipient, to North Carolina high school seniors or other persons interested in preparing to become a registered nurse through a baccalaureate degree program.
(2)	A two-year scholarship loan in the amount of three thousand dollars ($3,000) per year, per recipient, to persons interested in preparing to be a registered nurse through an associate degree nursing program or a diploma nursing program.
(3)	A two-year scholarship loan in the amount of three thousand dollars ($3,000) per year, per recipient, for two years of baccalaureate nursing study for college juniors or community college graduates interested in preparing to be a registered nurse.
(4)	A two-year scholarship loan of three thousand dollars ($3,000) per year, per recipient, for two years of baccalaureate study in nursing for registered nurses who do not hold a baccalaureate degree in nursing.
(5)	A two-year scholarship loan of six thousand dollars ($6,000) per year, per recipient, for two years of study leading to a master of science in nursing degree for people already holding a baccalaureate degree in nursing.
In addition to the scholarship loans awarded pursuant to subdivisions (1)	through (5) of this subsection, the Commission may award pro rata scholarship loans to recipients enrolled at least half-time in study leading to a master of science in nursing degree who already hold a baccalaureate degree in  nursing.  In awarding all scholarship loans, the Commission shall give priority to full-time students over part-time students.  The State Education Assistance Authority shall adopt specific rules to regulate scholarship loans to part-time master of science in nursing students.
Within current funds available or with any additional funds provided by the General Assembly for this purpose, the Commission may set aside slots for scholarship loans prescribed by subdivisions (1)	and (2) of this subsection to enable licensed practical nurses to become registered nurses.  The State Education Assistance Authority shall adopt specific rules to regulate these scholarship loans."
(b)  G.S. 90-171.62(b) reads as rewritten:
"(b)	The State Education Assistance Authority shall forgive the loan if, within seven years after graduation from a nursing education program, the recipient practices nursing in North Carolina for one year for every year a scholarship loan was provided.  If the recipient repays the scholarship loan by cash payments, all indebtedness shall be repaid within ten years.  The Authority may provide for accelerated repayment and for less than full-time employment options to encourage the practice of nursing in either geographic or nursing specialty shortage areas.  The Authority shall adopt specific rules to designate these geographic areas and these nursing specialty shortage areas, upon recommendations of the North Carolina Center for Nursing.  The North Carolina Center for Nursing shall base its recommendations on objective information provided by interested groups or agencies and upon objective information collected by the Center. The Authority may forgive the scholarship loan if it determines that it is impossible for the recipient to practice nursing in North Carolina for a sufficient time to repay the loan because of the death or permanent disability of the recipient within ten years following graduation or termination of enrollment in a nursing education program."
(c) Of the funds appropriated to the Board of Governors of The University of North Carolina for the 1994-95 fiscal year in this act, twenty-four thousand dollars ($24,000) shall be used to fund a secretary position to administer the selection and origination functions for the Nursing Scholars Program and the Nurse Education Scholarship Loan Program.

Requested by:   Representatives Black, Rogers, James
SOIL SCIENCE FACULTY POSITION
Sec. 46.  Of the funds appropriated to the Board of Governors of The University of North Carolina for agricultural programs for the 1994-95 fiscal year in this act, one hundred thousand dollars ($100,000) shall be allocated to fund a new faculty position in soil science for the College of Agriculture and Life Sciences at North Carolina State University.  The position shall be located at the Tidewater Research and Extension Center at Plymouth, North Carolina.

Requested by:  Representatives Black, Rogers, Nesbitt, Diamont
MOUNTAIN CONIFER FUNDS
Sec. 47. (a) The General Assembly finds that the growth of conifers for the Christmas tree industry is a major industry in Western North Carolina and that the sale of Christmas trees grown in Western North Carolina contributes seventy million dollars ($70,000,000) annually to the region's economy.
(b) Of the funds appropriated in this act to the Board of Governors of The University of North Carolina for the 1994-95 fiscal year, the sum of seventy thousand dollars ($70,000) shall be used for the Cooperative Extension Service at North Carolina State University to establish an area extension specialist position located at the Mountain Horticultural Crops Research Station at Fletcher.  This position shall provide support to North Carolina's mountain conifer and Christmas tree industries.  The Cooperative Extension Service at North Carolina State University shall consult with representative groups of Christmas tree growers in this region in developing guidelines for this position and in filling the position.

Requested by:   Representatives Warner, Black, Rogers, Diamont, Nesbitt
UNC/LEGISLATIVE COLLEGE OPPORTUNITY ACT PILOT PROGRAM
Sec. 48.  Of the funds appropriated to the Board of Governors of The University of North Carolina in this act, one million six hundred thousand dollars ($1,600,000) shall be allocated equally among the 16 constituent institutions.  The funds shall not revert and shall be placed in trust fund accounts, with the investment earnings to be used for this program as well.
The funds shall be used to establish a pilot Legislative College Opportunity Program to recruit new students to enroll in college in future years who might not be able to attend college without incentives.  The program shall be based on guidelines and rules established by the Board of Governors.  The Board shall consider the needs of socially and economically disadvantaged youth in developing the pilot program with a primary goal of improving the academic performance, high school graduation rates, college going rates, and college graduation rates of youth currently underperforming in these measures.  The Board shall develop the pilot program so that it provides incentives for and removes financial barriers to college attendance.  The Board shall consider various academic standards and financial need in establishing the program, and the funds shall be used to pay for some portion of college attendance costs.
The Board shall establish the program guidelines and charge the campuses with implementing the pilot program by January 31, 1995.  The Board shall report on the guidelines, program design and progress in implementation to the Joint Legislative Oversight Committee by May 15, 1995, with copies to members of the House and Senate Appropriations Subcommittees on Education.  The Board shall monitor the success of the pilot program in attracting students who otherwise might not have enrolled in higher education, and shall monitor the progress of these students, with annual reports to the Joint Legislative Education Oversight Committee by May 15, 1996 and each succeeding year through 2001.

Requested by: Representatives Black, Rogers, Nesbitt, Diamont
ECU MEDICAL SCHOOL FUNDS
Sec. 49.  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:   Representatives Nesbitt, Diamont 
CAMPUS STORES OPEN TO STUDENTS AT ALL CAMPUSES
Sec. 50.  G.S. 66-58(c)(3) reads as rewritten:
"(3)	The business operation of endowment funds established for the purpose of producing income for educational purposes; for purposes of this section, the phrase "operation of endowment funds" shall include the operation by public postsecondary educational institutions of campus stores, the profits from which are used exclusively for awarding scholarships to defray the expenses of students attending the institution; provided, that the operation of such stores must be approved by the board of trustees of the institution, and the merchandise sold shall be limited to educational materials and supplies, gift items and miscellaneous personal-use articles.  Provided further that sales at campus stores are limited to employees of the institution and members of their immediate families, to duly enrolled students of the campus at which a campus store is located and their immediate families, to duly enrolled students of other campuses of The University of North Carolina other than the campus at which the campus store is located, to other campus stores and to other persons who are on campus other than for the purpose of purchasing merchandise from campus stores.  It is the intent of this subdivision that campus stores be established and operated for the purpose of assuring the availability of merchandise described in this Article for sale to persons enumerated herein and not for the purpose of competing with stores operated in the communities surrounding the campuses of the University of North Carolina."

Requested by:  Representative Baddour
SOCIAL WORKERS' EDUCATION LOAN FUND 
Sec. 50.1. Effective July 1, 1994, Article 23 of Chapter 116 of the General Statutes is amended by adding a new section to read:
"§ 116-209.30.  Social Workers' Education Loan Fund.
(a)	There is established the Social Workers' Education Loan Fund to be administered by the State Education Assistance Authority, in consultation with the Department of Human Resources, to attract trained social workers into public child welfare positions in all county departments of social services in the State.  The Fund shall provide 25 four-year undergraduate and 10 two-year graduate scholarship loans per year.
(b)	The Authority, in consultation with the Department of Human Resources, shall develop the following criteria to administer the Fund:
(1)	All students shall  be enrolled in an institution of higher education in North Carolina in an accredited bachelors of social work or masters of social work program;
(2)	All students shall be residents of North Carolina.  For purposes of this section, residency shall be determined by the same standard as residency for tuition purposes pursuant to G.S. 116-143.1;
(3)	All students shall enter into a legal agreement and promissory note with the Authority to accept employment in public child welfare in exchange for receiving any funds, which agreement shall include stipulation that the student agrees to accept employment in rural or other need-based counties; and
(4)	Any additional criteria that the Authority considers necessary to administer the program effectively, including:
a.	Consideration of the appropriate numbers of minority students and students from diverse socio-economic backgrounds to receive funds pursuant to this section;
b.	Consideration of what rural or other need-based areas of the State shall be considered appropriate for work after graduation pursuant to subdivision (3) of this subsection;
c.	Consideration of the academic qualifications of the individuals applying to receive funds; and
d.	Consideration of the commitment the individuals applying to receive funds demonstrate to the profession of social work.
(c)	The Authority shall ensure that the loan amounts are limited as follows:
(1)	For a student pursuing a bachelors of social work degree, four thousand dollars ($4,000) per year for a maximum of four years; and
(2)	For a student pursuing a masters of social work degree, five thousand dollars ($5,000) per year for a maximum of two years.
(d)	The Authority shall ensure that the following loan cancellations and repayment schedules apply to all funds distributed pursuant to this section:
(1)	The individual who graduates with a bachelors of social work degree or a masters of social work degree and who works for a public child welfare agency in a rural or other need-based area of North Carolina shall have that amount of the loan cancelled that is based on the amount of time employed and the number of academic years funds were received.  One full year of employment shall cancel one academic year's loan, whether four thousand dollars ($4,000) or five thousand dollars ($5,000);
(2)	The individual who graduates with a bachelors of social work degree or a masters of social work degree and who works in public child welfare in a rural or other need-based area of North Carolina for the equivalent of the total number of academic years funds were received shall have the entire loan cancelled;
(3)	The individual who graduates with a bachelors of social work degree or a masters of social work degree and who does not work in public child welfare in a rural or other need-based area of North Carolina for any or all of the equivalent of the number of years funds were received shall repay the loan to the Authority according to a schedule prescribed in the promissory note, plus ten percent (10%) annual interest; and
(4)	The individual who does not graduate with a bachelors of social work degree or a masters of social work degree shall repay the loan according to a schedule prescribed by the Authority, not to exceed fifteen percent (15%) annual interest.  In establishing a schedule and interest rate, the Authority shall take into consideration the reasons the individual did not graduate with a bachelors of social work degree or a masters of social work degree.
The Authority shall ensure that all repayments, including accrued interest, shall be placed in the Fund.
The Authority may forgive or reduce any loan repayment if the Authority considers that extenuating circumstances exist that would make repayment impossible.
(e)	The State Education Assistance Authority, in consultation with the Department of Human Resources, shall adopt rules to implement the Social Workers' Education Loan Fund as described in this section."

PART 17.  DEPARTMENT OF COMMUNITY COLLEGES

Requested by:   Representatives Black, Rogers
PROGRAM REGIONALISM
Sec. 51.  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:   Representatives Black, Rogers
CONTINUING BUDGET CONCEPT
Sec. 52.  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 FTEs 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:   Representatives Black, Rogers
STATE BOARD RESERVE FUNDS
Sec. 53.  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:   Representatives Black, Rogers
PRISON CLASSES
Sec. 54.  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, except for literacy classes.
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:   Representatives Black, Rogers
1993 PROFESSIONAL COUNSELOR LICENSING ACT EXEMPTION
Sec. 55.  G.S. 90-332.1(a) is amended by inserting two new subdivisions to read:
"(4.1)	Any person counseling within the scope of employment at a local community college.
"(4.2)	Any person counseling within the scope of employment at a private higher education institution as defined in G.S. 116-22(1)."

Requested by:  Representative Diamont
COMMUNITY COLLEGES BEHIND WALLS
Sec. 56. The State Board of Community Colleges shall develop a plan to establish "Community Colleges Behind Walls" to train and educate prison inmates better.  The State Board shall present the plan to the 1995 General Assembly prior to February 1, 1995.

Requested by:   Representative Nesbitt
COMPETITIVE SALARY LEVELS FOR CURRICULUM FACULTY
Sec. 57.  (a) Funds appropriated in this act for competitive salary levels for community college curriculum faculty shall be used to provide an average additional salary increase to full-time curriculum faculty to enable the community colleges to retain a core of outstanding faculty at competitive salary levels.  The State Board of Community Colleges shall not use these funds to decrease the faculty/student ratio at community colleges.  The State Board shall use these funds, along with the funds appropriated in this act for a 4% salary increase for all community college employees, only to increase the unit value in the community college allotment formula for curriculum faculty by 8%.
The State Board of Community Colleges shall ensure that these funds are used to provide for a community college system-wide full-time curriculum faculty salary of at least 102% of the curriculum faculty salary unit value in the allotment formula.
Each community college shall increase the salaries of its full-time curriculum faculty members by at least 8% for the 1994-95 fiscal year unless the average salary for full-time curriculum faculty at the college is already at or above the community college system-wide average salary for full-time curriculum faculty members.  A community college shall not use faculty salary funds for administrative costs unless the average full-time curriculum faculty salary at the college is already at or above the community college system-wide average salary for full-time curriculum faculty members.
(b)  The State Board of Community Colleges shall develop a salary schedule for all community college faculty and shall report that salary schedule to the 1995 General Assembly.

Requested by:  Representative Baddour
ESTABLISH GRANTS FOR VISITING ARTISTS' PROGRAM
Sec. 57.1.  (a)  Of the funds appropriated in Chapter 321 of the 1993 Session Laws to the Department of Community Colleges for the Community Services Block Grant Program for the 1994-95 fiscal year, five percent of those funds, which is the sum of ninety-five thousand eight hundred twenty dollars ($95,820), shall be allocated to the Visiting Artists' Program.  These funds shall be used as grants-in-aid to community colleges on a competitive basis in accordance with administrative guidelines approved by the State Board of Community Colleges.  The purpose of the grants shall be to support and promote through the use of grants-in-aid, the Visiting Artists' Program, which is administered by the State Board of Community Colleges in cooperation with the North Carolina Arts Council.  In addition the Department of Community Colleges may use their Community Services Block Grant funds to supplement the Visiting Artists' Program or other arts programs at the discretion of their Local Boards of Community Colleges.
(b) It is the intent of the General Assembly to preserve the Visiting Artists' Program in the Department of Community Colleges.  The Department of Community Colleges shall report to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division regarding its progress in making grants to community colleges for the Visiting Artists' Program.

PART 18.  PUBLIC SCHOOLS

Requested by:   Representatives Gray, Rogers, Black
NONCERTIFIED SCHOOL EMPLOYEE SALARIES
Sec. 58.  (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, property and cost clerks, 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.
		Prior to By the end of the third payroll period of the 1995-96 school 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 average salary paid to employees in each category from State-allotted funds for the 1993-94 school year shall be at least two percent (2%) higher than the average salary paid to employees in that category from State-allotted funds for the 1992-93 school year.
		The State Board of Education shall report to the General Assembly, prior to March 31, 1994, and 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:   Representatives Rogers, Black
TRANSPORTATION INFORMATION MANAGEMENT SYSTEM FUNDS
Sec. 59.  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:   Representatives Rogers, Black
OUTCOME-BASED EDUCATION FUNDS
Sec. 60.  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:   Representatives Black, Rogers
DEVELOPMENTAL DAY CENTERS' GRANT-IN-AID
Sec. 61.  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:   Representatives Rogers, Black
ADMINISTRATION OF THE INTERVENTION/PREVENTION GRANT PROGRAM
Sec. 62.  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:   Representatives Rogers, Black
LIMITED ENGLISH PROFICIENCY (LEP) STUDENTS
Sec. 63.  (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.
Local 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:   Representatives Rogers, Black
EXCEPTIONAL CHILDREN FUNDS
Sec. 64. (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 $641.26 $652.17 per child for three and nine-tenths percent (3.9%) of the 1992-93 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 43,114 43,739 for the 1993-94 1994-95 school year.
(2)	Each local school administrative unit shall receive for exceptional children other than academically gifted children the sum of $1,923.79 $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 1992-93 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 125,316 127,668 for the 1993-94 1994-95 school year.
(3)	Each local school administrative unit in which more than twelve and five-tenths percent (12.5%) of the 1992-93 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. 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.

Requested by:   Representatives Rogers, Black
REPORT ON TEACHERS LEAVING THE TEACHING PROFESSION
Sec. 65.  G.S. 115C-12 is amended by adding a new subdivision to read:
"(22)	Duty to Monitor the Decisions of Teachers to Leave the Teaching Profession. – The State Board of Education shall monitor and compile an annual report on the decisions of teachers to leave the teaching profession.  The State Board shall adopt standard procedures for each local board of education to use in requesting the information from teachers who are not continuing to work as teachers in the local school administrative unit and shall require each local boards of education to report the information to the State Board in a standard format adopted by the State Board."

Requested by:  Representative Barnes
TASK FORCE ON VOCATIONAL AND TECHNICAL EDUCATION
Sec. 66. (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 16 members:
(1)	The State Superintendent of Public Instruction or a designee;
(2)	The State Auditor or a designee;
(3)	The Commissioner of Labor or a designee;
(4)	One representative of The University of North Carolina, appointed by the President of The University of North Carolina;
(5)	One representative of the North Carolina Community College System, appointed by the President of the North Carolina Community College System;
(6)	Two members appointed by the Governor;
(7)	Two members of the Senate appointed by the President Pro Tempore of the Senate;
(8)	One businessperson involved in vocational and technical education and one director of vocational and technical education for a local school administrative unit, appointed by the President Pro Tempore of the Senate;
(9)	Two members of the House of Representatives appointed by the Speaker of the House of Representatives;
(10)	One businessperson involved in vocational and technical education and one vocational and technical education teacher appointed by the Speaker of the House of Representatives; and
(11)	The chair of the Governor's Commission on WorkForce Preparedness.
The Governor and the Superintendent of Public Instruction shall each appoint a cochair from the membership of the Task Force.
Vacancies in terms of members shall be filled by the appointing officers.
(c) The Task Force, in collaboration with the Department of Community Colleges, the Department of Public Instruction, and the Governor's Commission on WorkForce Preparedness shall study the following issues related to vocational and technical education:
(1)	The quality, focus, standards, and future goals of vocational and technical education programs in the public schools, including the current status of local TechPrep, apprenticeship, and other school-to-work programs in North Carolina;
(2)	Funding issues including funding levels of programs, funding sources, distribution of funds, students served, and cost-per-student comparisons;
(3)	Technological and educational quality of equipment and instructional materials, and projected equipment and technology needs for vocational and technical education;
(4)	Current accountability efforts, including program standards and performance measures such as academic and employment outcomes, and review of program evaluation and improvement methods;
(5)	Relevance of vocational and technical education to the workforce and subsequent employment, including the relationship of program focus to current and future labor market;
(6)	Articulation issues, including the linkage of programs to higher education, other governmental workforce programs, and the business community;
(7)	The efficiency and effectiveness of organizational and delivery aspects of existing vocational and technical and school-to-work programs including cooperative education, internships, youth apprenticeships, career academics, school-based enterprises, supervised occupational experiences, vocational student organizations, Tech Prep, and Job Training Partnership Act (JTPA) whether there is unnecessary duplication and overlap, and the appropriate role for each agency involved;
(8)	The efficiency and effectiveness of State and local administration of programs;
(9)	Curriculum and instructional delivery issues, including curriculum review and development and the extent and success of linkage and integration of vocational and technical education to core academic education;
(10)	Career guidance and career counseling in the public schools; and
(11)	Training and retraining of educators involved in vocational and technical education, including the effectiveness of preservice training for teachers, teacher qualification requirements, teacher supply and demand trends, plans for ongoing staff development for teachers, local and State leadership including Department of Public Instruction staff, administrators, principals and superintendents, and necessary changes in staff development.
The Task Force shall make an interim report of the results of its study and its recommendations for modifications in vocational and technical education and school-to-work transition programs  to the Joint Education Oversight Committee, the Governor's Commission on WorkForce Preparedness, and the State Board of Education prior to January 15, 1995, and a final report prior to March 1, 1996.
(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)  The Department of Public Instruction shall use up to one hundred thousand dollars ($100,000) within its budget for the 1994-95 fiscal year for the work of the Task Force on Vocational and Technical Education.

Requested by:   Representative Barnes, Rogers, Black
TEACHER ACADEMY FUNDS
Sec. 67.  (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.  These funds include the sum of seven hundred fifty thousand dollars ($750,000) in nonrecurring funds for training sessions for additional teachers during the first fiscal year of program implementation.
(b)  The Task Force on Teacher Staff Development shall evaluate the Teacher Academy Plan it developed in accordance with Section 141 of Chapter 321 of the 1993 Session Laws and shall consider how it might fit into a comprehensive approach to staff development.  The State Board of Education shall conduct an evaluation of the quality of the 1994-95 Teacher Academy sessions. The Task Force shall address more completely the factors it was directed to address by Section 141 and shall develop a more comprehensive approach for teacher professional development.  The Task Force shall place special emphasis on the following:
(1)	Efficient and effective use of existing State, federal, and local resources through an integrated, nonduplicative delivery of professional development to teachers.
(2)	Short-range and long-range plans for school-based staff development that address the professional development needs of teachers in site-based decision making, core content areas, instruction, use of modern technology, and other appropriate subjects.
(3)	More effective use of the North Carolina Center for Advancement of Teaching facility and staff in the delivery of teacher professional development.
(4)	Training schedules and opportunities that minimize the time teachers are away from classroom instruction.
(5)	Development of organizational arrangements and technologies that encourage teacher networking and collaboration.
(6)	Effective use of the facilities and faculties of The University of North Carolina campuses in the delivery of professional development to teachers.
(7)	Effective use of existing and planned telecommunications and long-distance learning systems for teacher professional development to limit expenditures for travel and associated costs.
(8)	Professional development that meets the unique needs of individual schools and a plan to ensure quality in the various staff development offerings.
(9)	A proposal for the ongoing coordination of teacher professional development activities among local school administrative units, the Department of Public Instruction, the Technical Assistance Centers, The University of North Carolina, NCCAT, private colleges and universities, and any other providers of teacher professional development.
The Task Force on Teacher Staff Development shall also review the work of the Teacher Training Task Force and consider incorporating elements of the findings and recommendations of the Teacher Training Task Force in the Plan.
The Task Force shall make an interim report on (i) its progress on the Plan, (ii) expenditures on and evaluation of the Teacher Academy programs during the summer of 1994, and (iii) projected expenditures for the summer of 1995 to the Joint Legislative Education Oversight Committee and the State Board of Education no later than October 1, 1995.  The final Plan shall be submitted to the State Board of Education for adoption no later than December 1, 1994.  Any legislative action required to implement the Plan shall be submitted to the Joint Legislative Education Oversight Committee and the General Assembly no later than January 15, 1995.

Requested by:   Representatives Rogers, Black
STATISTICS ON STUDENTS ELIGIBLE FOR FREE AND REDUCED PRICE LUNCHES
Sec. 68.  Of the funds appropriated to the Department of Public Instruction in this act, the Department of Public Instruction shall use fifty thousand dollars ($50,000) to compile and analyze data on the number of students eligible for free and reduced price lunches.  The analysis shall include consideration of whether this data is a valid measure of income at the local school administrative unit level and at the school building.

Requested by:   Representatives Jeffus, Rogers, Black
SUBSTITUTE TEACHER PAY
Sec. 69.  Substitute teachers who hold teacher certificates shall be paid at a rate of sixty-two dollars ($62.00) per day.  Substitute teachers who do not hold teacher certificates but have completed effective teacher training shall be paid at a rate of fifty-five dollars ($55.00) per day.   Substitute teachers who neither hold teacher certificates nor have completed effective teacher training shall be paid at a rate of forty-five dollars ($45.00) per day.

Requested by:   Representatives Nesbitt, Rogers, Black
BASIC EDUCATION PROGRAM FUNDS
Sec. 70.  Of the funds appropriated in this act to State Aid to Local School Administrative Units, the sum of fifty-five million eight hundred twenty-four thousand one hundred thirty-six dollars ($55,824,136) shall be used to implement the Basic Education Program.  These funds shall be allocated as follows:
(1)	$10,000,000 shall be allocated for school psychologists, social workers, and guidance counselors for kindergarten through the eighth grade in accordance with the Basic Education Program.  Each local school administrative unit shall comply with the staffing requirements of the Basic Education Program regarding school psychologists, social workers, and guidance counselors for kindergarten through the eighth grade.
(2)	$26,320,319 shall be used to implement fully the class size reduction at the kindergarten level in accordance with the Basic Education Program.
(3)	$9,217,698 shall be used to implement fully the class size reduction at the tenth grade level in accordance with the Basic Education Program.
(4)	$9,536,119 shall be used to implement fully  textbook funding in accordance with the Basic Education Program by restoring textbook purchasing power to the 1985 level.
		The General Assembly urges the State Board of Education to carry out its duties under G.S. 115C-96 by requesting sufficient appropriations from the General Assembly to provide the children of the public elementary and secondary schools with free basic textbooks.  The General Assembly also urges the Governor to include that amount in the proposed budget and to carry out the Governor's duties under G.S. 143-11 by accompanying the proposed budget with the State Board of Education's request for appropriations for textbooks.

Requested by:   Representative Culpepper
DARE SCHOOL PAY DATE
Sec. 71.  Notwithstanding the provisions of G.S. 115C-302(a), G.S. 115C-316(a), or any other provision of law, all 10-month employees of the Dare County Board of Education shall be paid on the twelfth day of each month.  Nothing in this section shall have the effect of changing the rate of pay for any employee of the Dare County Board of Education.
This section shall not be construed to authorize prepayment of any employees by the Dare County Board of Education.

Requested by:  Representatives Yongue, Cummings, Lee
SCOTLAND SCHOOL PAY DATE
Sec. 72.  Section 143.1 of Chapter 321 of the 1993 Session Laws reads as rewritten:
"Sec. 143.1.  Notwithstanding the provisions of G.S. 115C-302(a), G.S. 115C-316(a), or any other provision of law, all 10-month employees of the Scotland County Schools except for school bus drivers, who are paid on a monthly basis, shall be paid on the fifteenth tenth day of each month.  Nothing in this section shall have the effect of changing the rate of pay for any employee of Scotland County Schools."
This section shall not be construed to authorize prepayment of any employees by the Scotland County Board of Education.

Requested by: Representatives Lutz, Hunt, Weatherly

REPEAL CLEVELAND SCHOOL PAY DATE
Sec. 73.  Section 2 of Chapter 311 of the 1991 Session Laws is repealed.

Requested by:  Representatives Wilmoth, Cromer
WATAUGA SCHOOL PAY DATE
Sec. 74.  Notwithstanding the provisions of G.S. 115C-302(a), G.S. 115-316(a), or any other provision of law, all 10-month employees of the Watauga County Board of Education shall be paid on the tenth day of each month, and all other employees of the Watauga County Board of Education shall be paid on the last day of each month.  If the pay date so established falls on a weekend or holiday, the employee shall be paid on the last workday before the established pay date.  Nothing in this section shall have the effect of changing the rate of pay for any employee of the Watauga County Board of Education.

Requested by:   Representative Flaherty
CALDWELL SCHOOL PAY DATE
Sec. 75.  Notwithstanding the provisions of G.S. 115C-302(a), G.S. 115C-316(a), or any other provision of law, all 10-month employees of the Caldwell County Board of Education who are paid on a monthly basis shall be paid on the fifteenth day of each month.  Nothing in this section shall have the effect of changing the rate of pay for any employee of Caldwell County Board of Education.
This section shall not be construed to authorize prepayment of any employees by the Caldwell County Board of Education.

Requested by:   Representatives Kuczmarski, Rogers, Black
CUED SPEECH FUNDS
Sec. 76.  Of the funds appropriated in this act to the Department of Public Instruction, the sum of ninety-five thousand dollars ($95,000) shall be used as a grant-in-aid for the Cued Speech Center of Wake County.  The Center shall use these funds to provide transition services.

Requested by:   Representatives Rogers, Black, Diamont
ALLOCATIONS OF BASIC EDUCATION PROGRAM FUNDS FOR SMALL CITY SCHOOL SYSTEMS
Sec. 77.   The State Board of Education shall modify the position allocation formulas under the Basic Education Program by rounding all fractions of positions to the next whole position for each city school administrative unit with an average daily membership of less than 3,000 students.

Requested by:   Representatives Rogers, Black, Diamont
SCHOOL ADMINISTRATOR ALLOTMENT FORMULAS
Sec. 78.  The State Board of Education shall modify the allotment formula for school administrators so that (i) the base allotment under the formula is the same for all local school administrative units, regardless of the average daily membership of the units and (ii) the remainder of the funds is allotted on the basis of average daily membership.

Requested by:   Representatives Diamont, Barnes, Rogers, Black
SCHOOL TECHNOLOGY PLANS/RESERVE
Sec. 79.  (a)  G.S. 115C-102.5(c) reads as rewritten:
"(c)	Notwithstanding G.S. 120-123 and subsection (b) of this section, for the 1993-94 fiscal year only, 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."
(b)  G.S. 115C-102.6 reads as rewritten:
"§ 115C-102.6.  Duties. 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 to the Joint Legislative Commission on Governmental Operations and the Joint Legislative Education Oversight Committee 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."
(c)  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 purpose of the plan shall be to provide a cost-effective foundation of flexible and long-lasting technology to promote substantial gains in student achievement.
(a1)	In developing the plan the Commission shall consider and plan for the relationship of the North Carolina Information Highway to the plan. In particular the plan shall establish priorities for the acquisition of school technologies including how the Information Highway fits into those priorities.
(b)	Components of the State school technology plan shall include:
(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.
"§ 115C-102.6B.  Approval of State school technology plan.
(a)	The Commission shall submit the State school technology plan it develops to the Joint Legislative Commission on Governmental Operations and the Joint Legislative Education Oversight Committee 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 submit them to the Joint Legislative Commission on Governmental Operations and the Joint Legislative Education Oversight Committee.
(b)	After submitting 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 review and comment on 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 entire plan. The plan or the proposed modifications shall take effect upon approval by the State Board of Education.
"§ 115C-102.6C.  Approval of local school technology plans.
(a)	Each local board of education shall develop a local school technology plan that meets the requirements of the State school technology plan and shall submit the local plan to the State Board of Education for its approval.  The Department of Public Instruction shall evaluate the local plans and advise the State Board as to whether the local plans comply with the requirements of the State school technology plan.
(b)	After a local school technology plan is approved by 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 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."
(d)  G.S. 115C-102.7 reads as rewritten:
"§ 115C-102.7.  Reports. Monitoring and evaluation of State and local school 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 make a progress report prior to March 15, 1994, and a final report prior to May 15, 1994, on the plan it develops to The Commission shall report in October of each year to the State Board of Education, the Joint Legislative Commission on Governmental Operations Operations, and the Joint Legislative Education Oversight Committee. Committee on the development and the implementation of State and local school technology plans.
 	(a1)  The Joint Legislative Commission on Governmental Operations and the Joint Legislative Education Oversight Committee may meet jointly to consider the 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."
(e)  Funds in the amount of twenty million ($20,000,000) are appropriated in this act to the School Technology Reserve.  These funds and any other  funds that may be provided by the General Assembly for the 1994-95 fiscal year for learning and instructional management technology shall be spent only in accordance with subsequent legislation enacted by the General Assembly.  It is the intent of the General Assembly to enact such legislation after consideration of the January 15, 1995, report of the Commission on School Technology.
(f)  Subsection (a) of this section becomes effective June 30, 1994.  G.S. 115C-102.6B, which is enacted in subsection (c) of this section, becomes effective November 1, 1994.  The remainder of this section becomes effective July 1, 1994.

Requested by:   Representative Rogers
CAREER DEVELOPMENT PILOT UNITS
Sec. 80.  (a) Section 126 of Chapter 321 of the 1993 Session Laws reads as rewritten:
"Sec. 126.  The State Board of Education shall require the local school administrative units receiving career development funds to modify their differentiated pay plans for the 1994-95 fiscal year so that the cost of the differentiated pay plan equals (i)	five percent (5%) of teacher and administrator salaries and of the employer's contributions for social security and retirement, for the prior fiscal year, and (ii) the amount of local funds available for differentiated pay.  The State Board of Education shall require the local school administrative units receiving career development funds to modify their differentiated pay plans for the 1995-96 fiscal year so that the cost of the differentiated pay plan equals (i) three percent (3%) of teacher and administrator salaries and of the employer's contributions for social security and retirement for the prior fiscal year, and (ii) the amount of local funds available for differentiated pay.
It is the intent of the General Assembly that this reduction in appropriations not result in employees receiving less on a monthly basis in salary and State-funded bonuses during the 1994-95 fiscal year or the 1995-96 fiscal year than they received on a monthly basis during the 1993-94 fiscal year so long as the employees qualify for bonuses under the local differentiated pay plan."

Requested by:   Representatives Rogers, Black
FUNDS FOR NATIONAL BOARD FOR PROFESSIONAL TEACHING STANDARDS
Sec. 81.  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 three 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 is 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)	An annual bonus of four percent (4%) of the teacher's State-paid salary for the 10-month school year 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.  The bonus for the 1994-95 fiscal year shall be paid immediately upon certification.  The bonus for each subsequent fiscal year shall be paid at the end of each full school year that the teacher teaches full-time in a North Carolina school.
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 preliminary results of this study to the Joint Legislative Education Oversight Committee in December of 1994.  The State Board shall make a final report on the impact of NBPTS certification on student performance to the Joint Legislative Education Oversight Committee in January of 1997.

Requested by:   Representatives Rogers, Black
ACADEMIC AND SUPPORT PROGRAM FOR COURT-INVOLVED YOUTH
Sec. 82.  Of the funds appropriated to the Department of Public Instruction in this act, the sum of one hundred seventeen thousand dollars ($117,000) shall be used to support the  two-year comprehensive academic and support program operated by Duke University, in collaboration with North Carolina Central University, the Durham Public Schools, the Durham Companions, and the Durham Educational Network, for court-involved middle school and high school students.

Requested by:   Representatives Rogers, Black
TEACHER SALARY SCHEDULES
Sec. 83.  (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	$2,062
01	2,103
02	2,145
03	2,252
04	2,297
05	2,343
06	2,390
07	2,438
08	2,487
09	2,537
10	2,588
11	2,640
12	2,693
13	2,747
14	2,802
15	2,858
16	2,915
17	2,973
18	3,032
19	3,093
20	3,155
21	3,218
22	3,282
23	3,348
24	3,415
25	3,483
26	3,553
27	3,624
28	3,696
29+	3,770
(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	$2,191
01	2,235
02	2,280
03	2,394
04	2,442
05	2,491
06	2,541
07	2,592
08	2,644
09	2,697
10	2,751
11	2,806
12	2,862
13	2,919
14	2,977
15	3,037
16	3,098
17	3,160
18	3,223
19	3,287
20	3,353
21	3,420
22	3,488
23	3,558
24	3,629
25	3,702
26	3,776
27	3,852
28	3,929
29+	4,008
(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.
Certified psychologists with certification based on academic preparation at the six-year degree level shall receive a salary supplement of one hundred twenty-six dollars ($126.00) per month in addition to the compensation provided for certified psychologists.  Certified psychologists with certification based on academic preparation at the doctoral degree level shall receive a salary supplement of two hundred fifty-three dollars ($253.00) per month in addition to the compensation provided for certified psychologists.

Requested by:   Representatives Rogers, Black
SCHOOL-BASED ADMINISTRATOR SALARIES
Sec. 84.  (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	$2,515	  –  	  –  	  –  	  –  	  –  	  –  	  –  
5	2,565	  –  	  –  	  –  	  –  	  –  	  –  	  –  
6	2,616	  –  	  –  	  –  	  –  	  –  	  –  	  –  
7	2,668	  –  	  –  	  –  	  –  	  –  	  –  	  –  
8	2,721	$2,721	  –  	  –  	  –  	  –  	  –  	  –  
9	2,775	2,775	  –  	  –  	  –  	  –  	  –  	  –  
10	2,831	2,831	$2,888	  –  	  –  	  –  	  –  	  –  
11	2,888	2,888	2,946	  –  	  –  	  –  	  –  	  –  
12	2,946	2,946	3,005	$3,065	  –  	  –  	  –  	  –  
13	3,005	3,005	3,065	3,126	$3,189	  –  	  –  	  –  
14	3,065	3,065	3,126	3,189	3,253	$3,318	  –  	  –  
15	3,126	3,126	3,189	3,253	3,318	3,384	  –  	  –  
16	3,189	3,189	3,253	3,318	3,384	3,452	$3,521	  –  
17	3,253	3,253	3,318	3,384	3,452	3,521	3,591	$3,663
18	3,318	3,318	3,384	3,452	3,521	3,591	3,663	3,736
19	3,384	3,384	3,452	3,521	3,591	3,663	3,736	3,811
20	3,452	3,452	3,521	3,591	3,663	3,736	3,811	3,887
21	3,521	3,521	3,591	3,663	3,736	3,811	3,887	3,965
22	3,591	3,591	3,663	3,736	3,811	3,887	3,965	4,044
23	3,663	3,663	3,736	3,811	3,887	3,965	4,044	4,125
24	3,736	3,736	3,811	3,887	3,965	4,044	4,125	4,208
25	3,811	3,811	3,887	3,965	4,044	4,125	4,208	4,292
26	3,887	3,887	3,965	4,044	4,125	4,208	4,292	4,378
27	3,965	3,965	4,044	4,125	4,208	4,292	4,378	4,466
28	4,044	4,044	4,125	4,208	4,292	4,378	4,466	4,555
29	4,125	4,125	4,208	4,292	4,378	4,466	4,555	4,646
30	4,208	4,208	4,292	4,378	4,466	4,555	4,646	4,739
31	4,292	4,292	4,378	4,466	4,555	4,646	4,739	4,834
32 	  –  	4,378	4,466	4,555	4,646	4,739	4,834	4,931
33 	  –  	  – 	4,555	4,646	4,739	4,834	4,931	5,030
34 	  –  	  – 	4,646	4,739	4,834	4,931	5,030	5,131
35 	  –  	  – 	  – 	4,834	4,931	5,030	5,131	5,234
36 	  –  	  – 	  – 	4,931	5,030	5,131	5,234	5,339
37 	  –  	  – 	  – 	  – 	5,131	5,234	5,339	5,446
38 	  –  	  – 	  – 	  – 	  – 	5,339	5,446	5,555
39 	  –  	  – 	  – 	  – 	  – 	  – 	5,555	5,666
40 	  –  	  – 	  – 	  – 	  – 	  – 	5,666	5,779
41	 –  	  – 	  – 	  – 	 – 	  – 	  – 	5,895.
(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.
(i)  Except as provided in subsection (h) of this section, the salary of a principal or assistant principal shall not be less for the 1994-95 fiscal year than it was for the 1993-94 fiscal year solely as a result of placement on the salary schedule established in this section.

Requested by:   Representatives Rogers, Black, Michaux
SCHOOL BUS DRIVER/SALARY RANGE
Sec. 85.  (a)  The salary range for school bus drivers shall be at grade 51 as established by the State Board of Education, as adjusted by legislative across-the-board salary increases, for 10 months of employment.  Local boards of education shall pay all school bus drivers within this range.
(b)  Of the funds appropriated to State Aid to Local School Administrative Units in this act, the sum of three million five hundred thousand dollars ($3,500,000) shall be used to increase the pay of all school bus drivers an average of four and six-tenths percent (4.6%) within the salary range established in subsection (a) of this section.  This increase is in addition to any legislative across-the-board increase granted by the General Assembly for the 1994-95 fiscal year.
(c) The average salary of a State-paid school bus driver for the 1994-95 school year within each local school administrative unit, computed on an hourly basis, shall be at least eight dollars ($8.00) per hour.

Requested by:   Representatives Rogers, Black
SCHOOL LEADERSHIP TRAINING FUNDS
Sec. 86.  Of the funds appropriated for State Aid to Local School Administrative Units in this act, the State Board of Education shall allocate the sum of five hundred thousand dollars ($500,000) to continue support for the school leadership training program in the public schools that was authorized by the 1979 General Assembly.

Requested by:   Representatives Rogers, Black
LOW-WEALTH AND SMALL SCHOOL SUPPLEMENTAL FUNDING CHANGES
Sec. 87.  (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 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 existing State and local funding for public schools. 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.
 	The Local Government Commission shall analyze the budgets and the expenditures of school administrative units that receive funds under this section in light of their budgets and expenditures for the previous year and shall determine whether those funds were used to supplement and not supplant State and local funding for public schools.   The Local Government Commission shall report the results of its study to the State Board of Education, to the Joint Legislative Education Oversight Committee, and to the Appropriations Committees of the Senate and the House of Representatives, prior to May 1, 1994, and May 1, 1995."
(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, 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 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 four additional regular classroom teachers in counties in which the average daily membership per square mile is greater than four and six 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 existing State and local funding for public schools. 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.
The Local Government Commission shall analyze the budgets and the expenditures of school administrative units that receive funds under this section in light of their budgets and expenditures for the previous year and shall determine whether those funds were used to supplement and not supplant State and local funding for public schools.  The Local Government Commission shall report the results of its study to the State Board of Education, the Joint Legislative Oversight Committee, and the Appropriations Committees of the Senate and the House of Representatives, prior to May 1, 1994 and May 1, 1995.
(c)	Definitions. – As used in this section:
(1)	'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.
(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 appropriation 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 appropriation 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, 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."
(f)  This section becomes effective July 1, 1995, and applies to funds allocated for low-wealth and small school supplemental funding for fiscal years beginning with the 1995-96 fiscal year.

Requested by:  Representative Diamont
CLARIFICATION OF THE NORTH CAROLINA HIGH SCHOOL ATHLETIC ASSOCIATION UNDER THE STATE TORT CLAIMS  ACT
Sec. 88. (a) G.S. 143-291 is amended by adding a new subsection to read:
"(c)	The North Carolina High School Athletic Association, Inc., is a State agency for purposes of this Article, and its liability in tort shall be only under this Article. This subsection does not extend to any independent contractor of the Association.  The Association shall be obligated for payments under this Article, through the purchase of commercial insurance or otherwise, in lieu of any responsibility of the State or The University of North Carolina for this payment.  The Association shall be similarly obligated to reimburse or have reimbursed the Department of Justice for any expenses in defending any claim against the Association under this Article."
(b) This section becomes effective with respect to causes of action arising on or after the date of ratification of this act.

PART 19.  DEPARTMENT OF TRANSPORTATION

Requested by:  Representatives McAllister, McLaughlin
AIRCRAFT AND FERRY ACQUISITIONS
Sec. 89. Before approving the purchase of a new aircraft from the Equipment Fund or a new ferry in a Transportation Improvement Program, the Board of Transportation shall prepare an estimate of the operational costs and capital costs associated with adding the new aircraft or ferry and shall report those additional costs to the General Assembly pursuant to G.S. 136-12(b).

Requested by:   Representatives McAllister, McLaughlin
DIVISION OF MOTOR VEHICLES TO REPORT ON EMISSION INSPECTION PROGRAM
Sec. 90.  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:   Representative Hall
ADOPT-A-HIGHWAY STUDY
Sec. 91.  The Department of Transportation and the Department of Justice shall study and report to the Joint Legislative Transportation Oversight Committee on the effectiveness of and legal issues relating to the Adopt-A-Highway Program.  Included in the study and report shall be consideration of the legal issues relating to use of contract services to clean the roadsides and any appropriate legislation, the passage of which may be necessary to permit the use of these contractors.  This report shall be submitted to the Joint Legislative Transportation Oversight Committee no later than December 31, 1994.  Notwithstanding any other provision of law, pending further action by the General Assembly, the use of contract services to meet the requirements of the Adopt-A-Highway Program shall be permitted on State roads.

Requested by:   Representatives McAllister, McLaughlin
GLOBAL TRANSPARK AUTHORITY TO REIMBURSE HIGHWAY FUND FROM FEDERAL SOURCES
Sec. 92.  When funds are provided from the Highway Fund to the Global TransPark Authority for environmental impact statements or assessments and the Global TransPark Authority applies for and receives reimbursement for those expenses from federal sources up to one million eight hundred thousand dollars ($1,800,000), the federal reimbursements shall be paid over by the Global TransPark Authority into the Highway Fund within 30 days of receipt.  These funds shall be allocated to State-funded maintenance appropriations in the manner approved by the Board of Transportation.

Requested by:   Representative Holmes
DRIVERS EDUCATION FUND TO PAY SALARY INCREASES
Sec. 93.  If the General Assembly authorizes a pay raise for teachers or State employees, the Drivers Education Fund shall pay the salary increases of the teachers or State employees whose positions are funded from the Drivers Education Fund.

Requested by:   Representatives McAllister, McLaughlin
RAILROAD REHABILITATION AND RAILROAD ACCESS FUNDS
Sec. 94.  If Senate Bill 62 is not enacted by the 1993 General Assembly, the funds appropriated from the Highway Fund for the transfer of three positions from the Utilities Commission to the Department of Transportation may be used for railroad access and railroad rehabilitation purposes.

Requested by:   Representative Redwine
SOME TEMPORARY DRAW BRIDGE OPERATOR POSITIONS CONVERTED TO PERMANENT FULL-TIME POSITIONS
Sec. 95.  Any temporary full-time draw bridge operator positions in the Department of Transportation that are filled by personnel who have worked for 12 or more months as of the effective date of this act, shall be converted to permanent full-time positions, subject to the approval of the Secretary of Transportation.

Requested by:   Representatives R. Hunter, McAllister, and McLaughlin
DEPARTMENT OF TRANSPORTATION AND DEPARTMENT OF CORRECTION TO REPORT ON IMPLEMENTATION OF RECOMMENDATIONS OF JOINT LEGISLATIVE TRANSPORTATION OVERSIGHT COMMITTEE
Sec. 96.  The Departments of Transportation and Correction shall report, quarterly beginning October 1, 1994, to the Joint Legislative Transportation Oversight Committee on the implementation of the recommendations of the Inmate Labor Subcommittee.

Requested by:   Representatives McAllister, McLaughlin
DOT VEHICLES EXEMPTION EXTENDED
Sec. 97.  Subsection (b) of Section 70 of Chapter 561 of the 1993 Session Laws reads as rewritten:
"(b)	This section expires June 30, 1994. 1995."

Requested by:   Representatives McAllister, McLaughlin
RELOCATION OF CERTAIN SANITARY DISTRICT UTILITIES
Sec. 97.1.  The Department of Transportation shall pay the nonbetterment cost for the relocation of water and sewer lines:
(1)	that are located within the existing State highway right-of-way;
(2)	that are necessary to be relocated for State highway improvement projects let after July 1, 1993; and
(3)	that are owned by a sanitary district organized pursuant to Part 2 of Article 2 of Chapter 130A of the General Statutes.

PART 20.  DEPARTMENT OF CORRECTION

Requested by:   Representative Holt
CORRECTION ENTERPRISES PREFERENCE
Sec. 98.  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:   Representative Holt
USE OF OUT-OF-STATE HOUSING FUNDS
Sec. 98.1.  (a)  In the event that the Small v. Martin lawsuit is modified to allow less than 50 square feet per inmate, 222.5 additional positions needed to supervise an additional 2,074 inmates shall be provided from funds appropriated to the Department of Correction for the out-of-state housing of inmates in Chapter 24 of the Session Laws of the 1994 Extra Session.
(b) The Department of Correction shall use funds appropriated to the Department for the out-of-state housing of inmates in Chapter 24 of the Session Laws of the 1994 Extra Session (i) to establish two positions for the supervision of inmate road squads and work crews and to pay the per diem costs of inmates at prison units not covered by the Small v. Martin lawsuit; and (ii) to establish 72 positions to achieve staffing standards and operate new beds at Black Mountain, Caswell, and Sandhills prison units and to provide for supervision of additional inmate road squads at Caswell prison unit.

Requested by:   Representative Holt
PRISON PROFITS TO VICTIMS COMPENSATION FUND
Sec. 100.  (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.' The Revenue in the Prison Enterprises Fund shall be used for 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. 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 When, in the opinion of the Governor, the Prison Enterprises Fund has reached a sum in excess of requirements for these purposes, the excess the remainder shall be used for other purposes within the State prison system or shall be transferred to the general fund as the Governor may direct. 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. 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."
(c) The funds transferred to the Crime Victims Compensation Fund pursuant to this section shall not supplant current or future appropriations by the General Assembly to the Crime Victims Compensation Fund.

Requested by:   Representative Holt
DEPARTMENT OF CORRECTION RESERVE FOR SUBSTANCE ABUSE TREATMENT PILOT PROGRAM FOR PAROLEES AND PROBATIONERS
Sec. 101.  (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:   Representative Holt
HARRIET'S HOUSE FUNDS
Sec. 102.  (a) Of the funds appropriated from the General Fund to the Department of Correction for the 1994-95 fiscal year, the sum of two hundred thousand dollars ($200,000) 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.
(b) 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 to support the programs of Harriet's House shall not revert at the end of the fiscal year but shall remain in the Department during the 1994-95 fiscal year for that purpose.

Requested by:  Representative Holt
DEPARTMENT OF CORRECTION PAY LOCAL CONFINEMENT COST OF OFFENDER HELD IN CONTEMPT FOR PROBATION VIOLATION
Sec. 103.  (a) 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."
(b) The Department of Correction shall comply with the provisions of this section with funds appropriated to the Department for out-of-state housing of inmates in Chapter 24 of the Session Laws of the 1994 Extra Session.

Requested by:   Representative Holt
USE OF OPERATIONAL FUNDS FOR SECURITY AND MEDICAL POSITIONS
Sec. 104.  Section 171 of Chapter 321 of the 1993 Session Laws reads as rewritten:
"Sec. 171.  Funds appropriated in this act to the Department of Correction for operational costs for additional facilities shall be used for personnel and operating expenses set forth in the budget approved by the General Assembly in this act. act and set forth in this section.  These funds may not be expended for any other purpose, and may not be expended for additional prison personnel positions until the new facilities are within 90 days of completion, except for certain management and support positions necessary to prepare the facility for opening, as authorized in the budget approved by the General Assembly. Assembly, and except for medical positions at the North Carolina Correctional Institution for Women and positions needed for security due to construction at Wayne, Lumberton, Columbus, Piedmont, Brown Creek, Johnston, and Franklin prison units."

PART 21.  DEPARTMENT OF CRIME CONTROL AND PUBLIC SAFETY

Requested by:   Representative Holt
COMMUNITY POLICING PILOT PROGRAM
Sec. 106.  Of the funds appropriated to the Department of Crime Control and Public Safety for the 1994-95 fiscal year, the sum of two hundred thirty thousand seven hundred ninety dollars ($230,790) shall be allocated to the Office of the Secretary of Crime Control and Public Safety to implement a pilot program to provide technical assistance to communities in the development of community policing programs in high crime areas.  The Secretary shall report by March 1, 1995, to the 1995 General Assembly regarding implementation of the pilot program and on any preliminary findings as to the benefits of the program.

Requested by:   Representatives Holt, H. Hunter
MULTIJURISDICTIONAL DRUG TASK FORCE FUNDS
Sec. 107.  Of the funds appropriated in this act to the Department of Crime Control and Public Safety, the sum of two hundred fifty thousand dollars ($250,000) for the 1994-95 fiscal year shall be used as grants to the multijurisdictional drug task forces operating in Beaufort, Bertie, Bladen, Chowan, Columbus, Craven, Cumberland, Duplin, Edgecombe, Gates, Greene, Halifax, Hertford, Jones, Lenoir, Martin, Nash, New Hanover, Northampton, Pasquotank, Pender, Perquimans, Pitt, Tyrrell, Vance, Warren, Washington, Wayne, and Wilson Counties.  Only local units of government shall be eligible to receive grants which shall be awarded pursuant to guidelines adopted by the Department of Crime Control and Public Safety.  A minimum cash match of twenty-five percent (25%) shall be required.

Requested by:   Representatives Holt, Baddour
NATIONAL GUARD EDUCATIONAL BENEFIT INCREASE
Sec. 107.1.  G.S. 127A-193 reads as rewritten:
"§ 127A-193. Benefit.
The benefit provided under this Article shall consist of a monetary educational assistance grant not to exceed five hundred dollars ($500.00) one thousand dollars ($1,000) per academic year to qualifying members of the North Carolina national guard. Benefits shall be payable for a period of one academic year at a time, renewable at the option of the Secretary for a maximum of two thousand dollars ($2,000). four thousand dollars ($4,000)."

PART 22.  DEPARTMENT OF JUSTICE

Requested by:   Representative Holt
USE OF SEIZED AND FORFEITED PROPERTY TRANSFERRED TO STATE LAW ENFORCEMENT AGENCIES BY THE FEDERAL GOVERNMENT
Sec. 108.  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. 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:  Representative Holt
CENTRALIZED UTILIZATION OF LEGAL PUBLICATIONS
Sec. 109.  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:   Representative Holt
DEPARTMENT OF JUSTICE FEDERAL GRANT MATCHING FUNDS
Sec. 110.   (a)  Of the funds appropriated to the Department of Justice for the 1994-95 fiscal year, the sum of twenty-five thousand two hundred twenty-eight dollars ($25,228) may be used to match the federal grant for the Child Victim's Assistance Project within the Citizens Rights Division.  In the event that the Department of Justice does not receive federal grant funds for this 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:   Representative Holt
REVERSION OF CERTAIN INSURANCE SETTLEMENT PROCEEDS
Sec. 111.   Any funds received by the Department of Justice in settlement of insurance claims arising from damage to the Blue Bell building at the North Carolina Justice Academy shall not be expended by the Department and shall revert to the General Fund.

PART 23.  JUDICIAL DEPARTMENT

Requested by:   Representative Holt
COMMUNITY PENALTIES PROGRAMS
Sec. 112.  (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.  The Judicial Department shall report quarterly to the Joint Legislative Commission on Governmental Operations on any elimination or reduction of funding for existing community penalties programs.

Requested by:   Representative Holt
FORSYTH WARRANT CLERKS BECOME MAGISTRATES
Sec. 113.  (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:   Representative Holt
STATE-RUN COMMUNITY PENALTIES PROGRAMS
Sec. 114.  The Director of the Administrative Office of the Courts may establish local community penalties programs and appoint staff the Director considers necessary.  These personnel may serve as full-time or part-time State employees or, alternatively, their activities may be provided on a contractual basis when determined appropriate by the Director.  The contracts shall be exempt from competitive bidding procedures under Chapter 143 of the General Statutes.  The Administrative Office of the Courts shall adopt rules necessary and appropriate for the administration of the program, including rules that allow plans to be presented at the request of the sentencing judge.  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:   Representative Holt
PITT REGIONAL MEDIATION CENTER FUNDS
Sec. 115.  Section 200.2 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, 1993-94 fiscal year, 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.  Funding for the Mediation Center of Pitt County, Inc., shall become part of the Judicial Department's continuation budget."

Requested by:   Representatives Holt, Redwine
EXTEND SENTENCING COMMISSION
Sec. 116. (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, 1994. 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, 1993.  New members shall be appointed or the existing members reappointed by the appointing authorities to serve until July 1, 1994, 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:   Representative Holt
STUDY DRUG TREATMENT COURT PROGRAM
Sec. 117.  The Administrative Office of the Courts, in consultation with the Courts Task Force on Substance Abuse, shall study the costs and benefits of establishing pilot drug treatment court programs.  The study shall include a determination of the appropriate model for operating a pilot drug treatment court program.  The Administrative Office of the Courts shall report its findings and any recommendations to the 1995 General Assembly by March 1, 1995. The sum of eight hundred thousand dollars ($800,000) placed in a reserve created in Section 41 of Chapter 24 of the Session Laws of the 1994 Extra Session shall not revert but shall remain available for allocation by the 1995 General Assembly.

Requested by:   Representative Holt
REPORT ON DISPUTE SETTLEMENT CENTERS
Sec. 118.  (a) All local dispute settlement centers currently receiving State funds shall report annually to the Judicial Department on the program's funding and activities, including:
(1)	Types of dispute settlement services provided;
(2)	Clients receiving each type of dispute settlement service;
(3)	Number and type of referrals received, cases actually mediated, cases resolved in mediation, and total clients served in the cases mediated;
(4)	Total program funding and funding sources;
(5)	Itemization of the use of funds, including operating expenses and personnel;
(6)	Itemization of the use of State funds;
(7)	Level of volunteer activity; and
(8)	Identification of future service demands and budget requirements.
The Judicial Department shall compile and summarize the information provided pursuant to this subsection and shall provide the information to the Chairs of the House and Senate Appropriations Committees and the Chairs of the House and Senate Appropriations Subcommittees on Justice and Public Safety by February 1 of each year.
(b)  Each local dispute settlement center requesting State funds for the first time or requesting an expansion of State funding shall provide the General Assembly with (i) the information enumerated in subsection (a) of this section, or projections where historical data is not available, as well as a detailed statement justifying the need for State funding or the expansion of State funding, and (ii) certification that at least seventy percent (70%) of total funding shall come from non-State sources.

Requested by:   Representatives Holt, R. Hunter
AUTHORIZE ADDITIONAL MAGISTRATES IN CATAWBA, MCDOWELL, AND IREDELL COUNTIES
Sec. 119.  G.S. 7A-133 reads as rewritten:
"§ 7A-133.  Numbers of judges by districts; numbers of            magistrates and additional seats of court, by            counties.
Each district court district shall have the numbers of judges and each county within the district shall have the numbers of magistrates and additional seats of court, as set forth in the following table:

	Additional
	Magistrates	Seats of
District	 Judges	County	 Min.-Max.	Court

 	1	4	Camden	1	2
Chowan	2	3
Currituck	1	2
Dare	3	8
Gates	2	3
Pasquotank	3	4
Perquimans	2	3
2	3	Martin	5	8
Beaufort	4	8
Tyrrell	1	3
Hyde	2	4
Washington	3	4
3A	3	Pitt	10	12	Farmville
Ayden
3B	4	Craven	7	10	Havelock
Pamlico	2	3
Carteret	5	8
4	6	Sampson	6	8
Duplin	9	11
Jones	2	3
Onslow	8	14
5	6	New Hanover	6 	11
Pender	4	6
6A	2	Halifax	9	14   	Roanoke
Rapids,
Scotland Neck
6B	2	Northampton	5	6
Bertie	4	5
Hertford	5	6
7	6	Nash	7	10	Rocky Mount
Edgecombe	4	6	Rocky Mount
Wilson	4	6
8	6	Wayne	5	11	Mount Olive
Greene	2	4
Lenoir	4	10	La Grange
9	4	Granville	3	7
Vance	3	5
Warren	3	4
Franklin	3	6
9A	2	Person	3	4
Caswell	2	5
10	12	Wake	12	20	Apex,
Wendell,
      	Fuquay-
Varina,
Wake Forest
11	6	Harnett	7	11	Dunn
Johnston	10	12    	Benson,
 	Clayton
and Selma
Lee	4	6
12	7	Cumberland	10	17
13	4	Bladen	4	6
Brunswick	4	7
Columbus	6	8	Tabor City
14	5	Durham	8	12
15A	3	Alamance	7	10	Burlington
15B	3	Orange	4	11	Chapel Hill
Chatham	3	8	Siler City
16A	2	Scotland	3	5
Hoke	4	5
16B	5	Robeson	8	16	Fairmont,
Maxton,
Pembroke,
Red Springs,
Rowland,
St. Pauls
17A	2	Rockingham	4	9	Reidsville,
Eden,
Madison
17B	3	Stokes	2	5
Surry	5	8	Mt. Airy
18	11	Guilford	20	26	High Point
19A	2	Cabarrus	5	9	Kannapolis
19B	3	Montgomery	2	4
Randolph	5	8	Liberty
19C	2	Rowan	5	10
20	6	Stanly	5	6
Union	4	6
Anson	4	5
Richmond	5	6	Hamlet
Moore	5	8	Southern
Pines
21	7	Forsyth	3	15	Kernersville
22	6	Alexander	2	3
Davidson	7	10	Thomasville
Davie	2	3
Iredell	4	8 9	Mooresville
23	3	Alleghany	1	2
Ashe	3	4
Wilkes	4	6
Yadkin	3	5
24	3	Avery	3	4
Madison	4	5
Mitchell	3	4
Watauga	4	6
Yancey	2	4
25	7	Burke	4	7
Caldwell	4	7
Catawba	6	9 10	Hickory
26	13	Mecklenburg	15	26
27A	5	Gaston	11	20
27B	4	Cleveland	5	8
Lincoln	4	6
28	5	Buncombe	6	15
29	4	Henderson	4	6
McDowell	3	4 5
Polk	3	4
Rutherford	6	8
Transylvania	2	4
30	4	Cherokee	3	4
Clay	1	2
Graham	2	3
Haywood	5	7	Canton
Jackson	3	4
Macon	3	4
Swain	2	3."

Requested by:   Representative Holt
AOC PRESUMPTIVE FEE SCHEDULE FOR REPRESENTATION OF INDIGENT DEFENDANTS IN CAPITAL CASES
Sec. 120. (a)  G.S. 7A-344 reads as rewritten:
"§ 7A-344.  Special duties of Director concerning representation
            of indigent persons.
In addition to the duties prescribed in G.S. 7A-343, the Director shall also:
(1)	Supervise and coordinate the operation of the laws and regulations concerning the assignment of legal counsel for indigent persons under Subchapter IX of this Chapter to the end that all indigent persons are adequately represented;
(2)	Advise and cooperate with the offices of the public defenders as needed to achieve maximum effectiveness in the discharge of the defender's responsibilities;
(3) 	Collect data on the operation of the assigned counsel and the public defender systems, and make such recommendations to the General Assembly for improvement in the operation of these systems as appear to him to be appropriate; and
(4) 	Accept and utilize federal or private funds, as available, to improve defense services for the indigent, including indigent juveniles alleged to be delinquent or undisciplined.  To facilitate processing of juvenile cases and civil cases in which a party is entitled to counsel, the administrative officer is further authorized, in any district or set of districts as defined in G.S. 7A-41.1(a), with the approval of the chief district court judge for cases in the district court division and the approval of the senior resident superior court judge for cases in the superior court division, to engage the services of a particular attorney or attorneys to provide specialized representation on a full-time or part-time basis.
The Director may issue a presumptive fee schedule for the hourly rates of compensation of attorneys appointed to represent indigent defendants in capital cases."
(b)  Of the funds appropriated in this act to the Judicial Department, Indigent Persons Attorney Fee Fund, for the 1994-95 fiscal year, the sum of three million six hundred forty thousand dollars ($3,640,000) for the 1994-95 fiscal year shall be used to implement the provisions of this section.

Requested by:   Representatives Diamont, Holt
TRANSFER CALENDARING AUTHORITY TO SENIOR RESIDENT SUPERIOR COURT JUDGE
Sec. 121.  It is the policy of this State that, effective July 1, 1995, the senior resident superior court judge in each judicial district shall be responsible for the calendaring of all superior court criminal cases and motions for trial or hearing in the judicial district.  The North Carolina Supreme Court is requested, pursuant to its rulemaking authority, to adopt rules for the implementation of this policy.  The Administrative Office of the Courts shall report to the Courts Commission by March 1, 1995, on any changes necessary to bring the General Statutes into conformity with this policy.

Requested by:   Representatives G. Miller, Michaux
CORRECT JUDICIAL TERM
Sec.  121.1. (a) If the superior court judge holding office on June 1, 1994 whose successor's term is to begin July 1, 1995 under G.S. 7A-41(d)(25) is not a regular superior court judge on January 1, 1995, then the succeeding term begins January 1, 1995, and the remainder of this section does not apply.
(b) If the superior court judge holding office on June 1, 1994 whose successor's term is to begin July 1, 1995 under G.S. 7A-41(d)(25) ceases to be a regular superior court judge between January 1, 1995 and July 1, 1995, the term of that judge's successor begins on the date that judge ceases to be a regular superior court judge.
(c) If in superior court district 14B only one of the three persons elected for that district in the 1994 general election is a special superior court judge on January 1, 1995, then that person is the successor to the judge whose term was determined by G.S. 7A-41(d)(25), but in such case the successor's service as a special superior court judge shall be considered service as a regular resident superior court judge under G.S. 7A-41.1(b)(2).
(d) If subsection (c) of this section does not apply,  in superior court district 14B the State Board of Elections shall choose by lot among those persons elected in 1994 who were not regular superior court judges, and the person chosen by lot is the successor to the judge whose term was determined by G.S. 7A-41(d)(25).

PART 24.  DEPARTMENT OF HUMAN RESOURCES

Requested by:  Representatives Nye, Easterling
WILLIE M. RULES
Sec. 122. 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 to be followed in the provision of services for disabled, violent, and assaultive children who have not reached their eighteenth birthday.  These rules shall allow for the continuation of services to any child the Secretary determines is being appropriately served until the end of the fiscal year in which the child reaches the age of 18 or until six months after the child reaches the age of 18, whichever period is longer."

Requested by:  Representatives Nye, Easterling
CLIENT SERVICES MONITORING
Sec. 123.The Department of Human Resources, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, shall develop and implement a system of monitoring and control for client services.  This system shall ascertain whether services are provided in a timely manner.  Notwithstanding any other provisions of law, the Division shall withhold Area Mental Health Agencies' administrative funds until services are provided in a timely manner.

Requested by:   Representatives Nye, Easterling
MENTAL HEALTH, DEVELOPMENTAL DISABILITIES, AND SUBSTANCE ABUSE SERVICES PROVIDERS/MEDICAID RECEIPTS
Sec. 124.  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:   Representatives Easterling, Nye
PRIVATE AGENCY UNIFORM COST FINDING REQUIREMENT
Sec. 125.  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:   Representatives Nye, Easterling
PIONEER TESTING RULE WAIVER EXTENSION
Sec. 126.   Subsection (n) of Section 220 of Chapter 321 of the 1993 Session Laws reads as rewritten:
"(n)	Effective July 1, 1994, July 1, 1995, G.S. 122C-151.1 is repealed."

Requested by:   Representatives Easterling, Nye
THOMAS S.
Sec. 127.  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; or 
(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. 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) or (3) (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:   Representatives Nye, Easterling
CHANGE IN PLANNING AND PILOT IMPLEMENTATION OF AN INTEGRATED FUNDING APPROACH FOR MENTAL HEALTH/SUBSTANCE ABUSE INSTITUTIONAL SERVICES
Sec. 128.  Section 218 of Chapter 321 of the 1993 Session Laws reads as rewritten:
"Sec. 218.  The Department of Human Resources shall develop and implement a plan during the 1993-95 fiscal biennium to pilot-test an integrated funding system for mental health/substance abuse institutional services, involving one regional psychiatric hospital, one regional alcohol and drug abuse treatment center, and the area mental health, developmental disabilities, and substance abuse programs using these facilities.  The Department may use funds that become available to it through gifts, federal or private grants, receipts from federal programs, or any other source to support the planning and implementation of this pilot program.
The Department shall present a written report to the House and Senate Human Resources Appropriations Subcommittees by May 1, 1994, describing the results of its planning activities, the proposed schedule and cost for implementation of the integrated funding system and any proposed legislation needed to implement the plan.  The Department shall submit a written report to these Subcommittees by May 1, 1995, describing the results of the implementation of the integrated funding system.
 	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:   Representatives Easterling, Nye
1993 PROFESSIONAL COUNSELOR LICENSING ACT CORRECTION
Sec. 129.(a)  Effective July 1, 1994, G.S. 90-332.1(a)(8) reads as rewritten:
"(8)	Any person performing mental health 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 mental health services are provided by (i) a qualified mental health professional who meets or exceeds the minimum educational qualifications for licensure as a licensed professional counselor under this Article. 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);
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. Board;".
(b) Effective July 1, 1994, G.S. 90-332.1(a) is amended by adding the following new subdivisions to read:
"(9)	Any person performing counseling as an employee of a hospital or other health care facility licensed under Chapter 131D, 131E, or 122C who is performing this counseling under the supervision of a qualified professional as defined in G.S. 122C-3(31); and
(10)	Any employee assistance professional providing core-specific employee assistance program (EAP) activities, as defined by the Employee Assistance Professionals Association Standards for Employee Assistance Programs Part II:  Professional Guidelines (1988)."

Requested by:   Representatives Nye, Easterling
NONSUPPLANTING OF MENTAL HEALTH, DEVELOPMENTAL DISABILITIES, AND SUBSTANCE ABUSE FUNDS
Sec. 130.  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:   Representatives Nye, Easterling
COALITION 2001 FUNDS
Sec. 131.  The sum of six million dollars ($6,000,000) appropriated in this act to the Department of Human Resources, Mental Health, Developmental Disabilities, 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)	$3,600,000 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)	$1,020,000 for construction and renovation of Developmental Day Centers;
(3)	$600,000 for construction and renovation of vocational rehabilitation facilities;
(4)	$120,000 for implementation of three community rehabilitation pilot projects to be selected by the North Carolina Association of Rehabilitation Facilities;
(5)	$240,000 for supported living projects of the Association for Retarded Citizens and United Cerebral Palsy, Inc.; and
(6)	$420,000  for local assistive technology and a housing loaner fund to be administered through the Community Living Association.

Requested by:   Representatives Nye, Easterling
DETERMINATION OF BUDGETARY IMPACT OF ADDITIONAL BEDS IN DOMICILIARY CARE FACILITIES 
Sec. 132.  Pursuant to G.S. 131E-177(4), in order to determine the budgetary impact of additional beds in domiciliary care facilities, the Department of Human Resources shall, by January 1, 1996, develop policy, criteria, and standards for planning, conduct inventories, and make determinations of need for health services facilities, domiciliary care facilities, and any other assisted living arrangements subject to any State licensing requirements.
The Department shall report on its progress in implementing this section to the 1995 General Assembly by March 15, 1995.  
The plans and need determinations shall not be included in the State Medical Facilities Plan but shall be used to assist the General Assembly in determining the budgetary impact of additional beds in domiciliary care facilities.

Requested by:  Representatives Easterling, Nye
PILOT SUBSIDY FOR DOMICILIARY HOMES FOR SERVICES TO DEVELOPMENTALLY DISABLED RESIDENTS REPORTING EXTENDED
Sec. 133.  Section 241 of Chapter 321 of the 1993 Session Laws reads as rewritten:
"Sec. 241.  Notwithstanding the provisions of G.S. 143-23, the Secretary of Human Resources, with the approval of the Office of State Budget and Management, may use, to the extent possible, any funds appropriated or otherwise available to the Department in the 1993-94 fiscal year to conduct a pilot of a subsidy to homes for the aged and disabled and family care homes to support the provisions of habilitative and related services needed by developmentally disabled persons who reside there.  The Department shall present the results of the pilot to the General Assembly by July 1, 1994. April 15, 1995."

Requested by:   Representatives Easterling, Nye
DEVELOPMENT OF RATE-SETTING METHODOLOGY FOR DOMICILIARY CARE FACILITIES CONTINUED/RECOMMENDATIONS ON STANDARDS, MONITORING
Sec. 134. 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 shall include the recommended maximum payment rate for each category of facility, and assessment of the adequacy of the existing standards for domiciliary facilities, the adequacy of the monitoring of these standards and recommendations regarding any needed changes in standards or their monitoring.  The final plan shall be submitted to the 1995 General Assembly and to the Fiscal Research Division by February 1, 1995.

Requested by:  Representatives Nye, Easterling
DOMICILIARY CARE REIMBURSEMENT RATE INCREASE
Sec. 135.  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 July 1, 1994, the maximum monthly rate for residents in domiciliary care facilities shall be nine hundred seventy-five dollars ($975.00) per month for ambulatory residents and one thousand seventeen dollars ($1,017) per month for semiambulatory residents."

Requested by: Representatives Nye, Easterling
DOMICILIARY HOMES/STAFFING ISSUES
Sec. 136. 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.

Requested by:   Representatives Nye, Easterling
USE OF DETENTION CENTER CONSTRUCTION RESERVE
Sec. 137.  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:  Representatives Easterling, Nye
DHR STUDY OF DIVISION OF YOUTH SERVICES' PROGRAMS AND SERVICES EXTENDED
Sec. 138. Subsection (d) of Section 36 of Chapter 24 of the Session Laws of the 1994 Extra Session reads as rewritten:
"(d)	The Department shall complete this study by November 1, 1994, March 1, 1995, and shall report the results of this study to the 1995 General Assembly by March 1, 1995. April 1, 1995."

Requested by:  Representatives Easterling, Nye, Nesbitt, Diamont
DIVISION OF YOUTH SERVICES NURSE SALARY PLAN
Sec. 139. The Department of Human Resources shall implement the salary adjustment plan developed by the Division of Youth Services for nurses within the Division's training schools and shall fund the plan with salary reserve funds within the Department or from salary adjustment funds within the Office of State Budget and Management.

Requested by:  Representatives Nye, Easterling, Nesbitt, Diamont
MECKLENBURG SERVICE CORPS FUNDS
Sec. 140. Of the funds appropriated in this act to the Department of Human Resources, the sum of three hundred eighty-three thousand dollars ($383,000) shall be used to establish a Service Corps in Mecklenburg County.  This Corps shall be modeled on the Durham Service Corps and shall provide an innovative program of community service work and alternative education to nonviolent youthful offenders aged 15 through 17 and to young adults aged 17 through 23 who apply, as an alternative to training school.
The Department shall report to the General Assembly by March 15, 1995, on the outcome of the Mecklenburg Service Corps as it can then be determined, including average gains in verbal and mathematics skill levels, high school diplomas or equivalences earned, employment histories, and other measures of program effectiveness.

Requested by: Representatives Easterling, Nye
REIMBURSEMENT AND COMPENSATION OF MEMBERS OF THE NORTH CAROLINA VOCATIONAL REHABILITATION ADVISORY COUNCIL
Sec. 141.  Notwithstanding G.S. 138-5(a)(1),  members of the North Carolina Vocational Rehabilitation Advisory Council may be reimbursed for reasonable and necessary expenses of attending Council meetings or performing Council duties, as authorized in the federal Rehabilitation Act, as amended.  In addition, Council members who are unemployed or who must forfeit wages from other employment to attend may receive compensation not to exceed fifty dollars ($50.00) a day for Council meetings or performing Council duties, as authorized in the federal Rehabilitation Act, as amended.

Requested by:  Representatives Nye, Easterling
REVIEW OF DIVISION OF INFORMATION RESOURCE MANAGEMENT
Sec. 142. The Department of Human Resources shall conduct a review of the Division of Information Resource Management.  This review shall include:
(1)	An analysis of the management structure of the Division, including recommendations on how to reduce the number of manager and assistant manager positions and how to improve the overall efficiency and effectiveness of the Division;
(2)	A determination of the fiscal impact on State and federal funds of eliminating the Division and using private contractors to do the work currently being done by the Division; and
(3)	A determination of the fiscal impact on State and federal funds of changing the Division's receipt-supported billing plan to a centralized system involving a funding combination of State appropriations and federal indirect cost earnings.
The Department shall report its findings to the Human Resources Appropriations Subcommittees by March 1, 1995.

Requested by:   Representatives Easterling, Nye, H. Hunter
CERTAIN SMART START FUNDS DO NOT REVERT
Sec. 143. (a)  Funds appropriated to the Division of Child Development, Department of Human Resources, in fiscal year 1993-94 and allocated to the 12 local Smart Start projects established during the 1993-94 fiscal year shall not revert until June 30, 1995, but shall remain with the Division for use as provided under Part 10B of Article 3 of Chapter 143B of the General Statutes.
(b)  Funds appropriated to the Division of Child Development, Department of Human Resources, in fiscal year 1993-94 and allocated for the statewide evaluation of Smart Start, the statewide needs and resources assessments, the professional development of day care providers, the automated payment system, and the T.E.A.C.H. program shall not revert until June 30, 1995, but shall remain with the Division for use as defined by the original appropriation for these funds.
(c)  Any new funds that may be appropriated to the Division of Child Development, Department of Human Resources, in fiscal year 1994-95 and to be allocated to new local Smart Start projects to be established during the 1994-95 fiscal year shall not revert until June 30, 1996, but shall remain with the Division for use as provided under Part 10B of Article 3 of Chapter 143B of the General Statutes.
(d) It is the intent of the General Assembly that this section's postponement of reversions of Smart Start funds shall be for one year only and that it shall not be extended.  
(e)  The funds in subsections (a) and (b) are nonrecurring and shall not become a part of the continuation budget for the Division of Child Development, Department of Human Resources.
(f) This section becomes effective June 30, 1994.

Requested by:   Representatives Nye, Easterling
SUPPORT OUR SCHOOLS PROGRAM/FAMILY RESOURCE CENTER GRANT PROGRAM ADMINISTRATIVE COSTS INCREASE
Sec. 144.  (a) Of the funds appropriated to the Department of Human Resources for the Support Our Schools (S.O.S.) Program for the 1994-95 fiscal year, the Department may use up to one hundred fifty thousand dollars ($150,000) for the administration of each program, in addition to the two hundred thousand dollars ($200,000) allocated for the administration of the program by Chapter 24 of the Session Laws, Extra Session 1994. 
(b) Of the funds appropriated to the Department of Human Resources for the Family Resource Center Grant Program for the 1994-95 fiscal year, the Department may use up to one hundred thousand dollars ($100,000) for the administration of each program, in addition to the two hundred thousand dollars ($200,000) allocated for the administration of the program by Chapter 24 of the Session Laws, Extra Session 1994. 

Requested by:   Representatives Nye, Easterling
EARLY CHILDHOOD EDUCATION AND DEVELOPMENT INITIATIVES LOCAL PARTNERSHIP FUNDING FOR ADMINISTRATIVE COSTS 
Sec. 145.  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:  Representatives Easterling, Nye, Nesbitt, Diamont
EARLY CHILDHOOD EDUCATION AND DEVELOPMENT INITIATIVES APPLICATION CLARIFICATION
Sec. 146. The Department of Human Resources, in cooperation with the North Carolina Partnership for Children, Inc., shall ensure that the selection process for the additional local demonstration projects for the Early Childhood Education and Development Initiatives funded in this act shall include the following:
(1)	Acceptance of applications from counties that have not yet applied for funding;
(2)	Acceptance of additional information from counties that have already made application for funding but have not received funding; and
(3)	Consideration of the needs and resources assessment that has been conducted in each county.

Requested by:  Representatives Easterling, Nye, Nesbitt, Diamont, H. Hunter, Rogers
SUBSIDIZED DAY CARE FOR MORE ELIGIBLE CHILDREN
Sec. 147. (a) Of the funds appropriated in this act to the Department of Human Resources, Division of Child Development, the sum of six million dollars ($6,000,000) for the 1994-95 fiscal year shall be used to pay for subsidized child day care for children currently eligible for nonentitlement child day care but not currently receiving this care.  These funds may be used as follows:
(1)	To pay for care that is currently available in the children's county up to the provider's approved subsidized payment rate; and
(2)	To raise the subsidized payment rate in counties where the current market rate is too low to provide enough care for children.  Priority shall be given to counties with the lowest current market rate.  For Category "B" providers, the subsidized payment rate shall not exceed the statewide market rate.
These funds shall be used in such a way as to maximize the number of eligible children receiving subsidized child day care.
(b) The Division of Child Development shall report to the 1995 General Assembly and to the Fiscal Research Division of the Legislative Services Office by March 15, 1995, on the number of children whose child day care is funded pursuant to this section, and on the number of children eligible for child day care who still are waiting to be served.  This report shall include county-level data on the number of these children who could be served if funds were available, the number of these children for whom service is not available in their community, and data on where these children live, including relevant demographic data.  This report shall also include a determination of whether other eligible children not on any waiting list remain to be served.

Requested by:  Representative Easterling, Nye
DAY CARE RATE CLARIFICATION
Sec. 148. (a)  The 1993 Legislative Research Commission Study Committee on Child Care shall study the whole issue of day  care rates to determine whether the rate structure needs to be amended or overhauled.  This study shall include an examination of whether county departments of social services are using a provider's failure to comply with requirements in addition to those specified in subsection (b) of Section 248 of Chapter 321 of the 1993 Session Laws as a condition for reducing the provider's subsidized child day care rates.
The Committee shall include the results of this study, including any legislative recommendations, in its report to the Legislative Research Commission for transmittal to the 1995 General Assembly.
(b)  Subsection (b) of Section 248 of Chapter 321 of the 1993 Session Laws reads as rewritten:
"(b)	Facilities licensed pursuant to Article 7 of Chapter 110 of the General Statutes may participate in the program that provides for the purchase of care in day care facilities for minor children of needy families.  No separate licensing requirements shall be used to select facilities to participate.  In addition, day care facilities shall be required to meet any additional applicable requirements of federal law or regulations.
Day care homes as defined in G.S. 110-86(4)	from which the State purchases day care services shall meet the standards established by the Child Day Care Commission pursuant to G.S. 110-101 and G.S. 110-105.1 and any additional requirements of State law or federal law or regulations.  Child care arrangements exempt from State regulation pursuant to Article 7 of Chapter 110 of the General Statutes shall meet the requirements established by other State law and by the Social Services Commission.
County departments of social services or other local contracting agencies shall not use a provider's failure to comply with requirements in addition to those specified in this subsection as a condition for reducing the provider's subsidized child day care rate."

Requested by:  Representatives Easterling, Nye, Nesbitt, Diamont, Hayes
FAMILY TO FAMILY FUNDS PROJECTS AUTHORIZED
Sec. 149. The Department of Human Resources may establish Family to Family projects that will replicate Project L.I.F.T. (Local Individuals Finding Themselves), of Concord, North Carolina.  Project L.I.F.T. works through families helping other families deal with crime, substance abuse, and other issues facing parents and their children.  It targets families in Concord's public housing communities to provide positive living skills, crime prevention activities, nutrition advice, higher education, substance abuse counselling, and healthy lifestyle activities.  Project L.I.F.T., and any projects that replicate it, are vital measures in preventing crime and violence.

Requested by:   Representatives Easterling, Nye
EMERGENCY ASSISTANCE CLARIFICATION
Sec. 150.  (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 emergency 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 program benefits cash assistance may shall not exceed five hundred dollars ($500.00). three hundred dollars ($300.00).  Funding State appropriations made for the non-federal nonfederal share of Emergency Assistance services and cash benefits shall be shared at not exceed a rate of fifty percent (50%) State participation and fifty percent (50%) county participation. fifty percent (50%) of the nonfederal share.  For cash benefits authorized by any agency, the nonfederal 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 nonfederal share of cash benefits authorized.  For services benefits authorized by any agency, the nonfederal 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 nonfederal 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 Emergency Assistance 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 any Emergency Assistance the cash assistance component of the Emergency Assistance Program pursuant to this section.
It is the intent of the General Assembly that these Emergency Assistance funds 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 county departments of social services agency receiving the application shall apply prudent judgment to evaluate each emergency on its own merits.  Prudent judgment will permit departments of social services the agency to consider whether the client created the emergency and whether the assistance will resolve the emergency."

Requested by:   Representatives Nye, Easterling
CHILD WELFARE SYSTEM STUDY
Sec. 151.  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:  Representatives Easterling, Nye, Diamont
FOSTER CARE REPORTING
Sec. 152.  Counties receiving funds for foster care in this act shall report quarterly, beginning with the second quarter of the 1994-95 fiscal year, to the Division of Social Services, Department of Human Resources the following:
(1)	A narrative description of the use of State funds;
(2)	Workload statistics and indicators for foster care as established by the Division of Social Services; and
(3)	Development of a coordinated approach to providing children's services, with emphasis on meeting the total needs of the children and families being served.
The Division shall evaluate and report to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office by April 30, 1995, on the State's efforts in implementing this section.  The evaluation and report shall include evaluation of the current foster care delivery system and the impact of implementing this section.

Requested by:  Representatives Nye, Easterling, Diamont
COUNTY FOSTER CARE WORKERS
Sec. 153. Of the funds appropriated in this act to the Department of Human Resources, Division of Social Services, the sum of two million five hundred ninety-seven thousand two hundred thirty-seven dollars ($2,597,237) shall be used for county foster care workers in foster care placement and licensing.

Requested by:  Representatives Easterling, Nye
MAINTENANCE OF EFFORT
Sec. 154. Counties shall not use funds allocated to them through the Department of Human Resources, Division of Social Services, for foster care in this act to supplant funds they are obligated to provide.  Any county receiving such an allocation shall, at a minimum, maintain a level of financial support of county funds for child welfare services at least equal to the 1993-94 actual expenditure levels.
If a county fails to maintain financial maintenance of effort as specified in this section, the Department shall withhold future funding allocated to the county.
State assistance to counties for foster care workers shall be matched by counties at the rate of twenty-five percent (25%).

Requested by:   Representatives Easterling, Nye, Diamont
FOSTER CARE AND ADOPTIONS TRAINING
Sec. 155.  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:   Representatives Easterling, Nye,
ADOPTION SUBSIDY
Sec. 156.  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 July 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)	$315.00 per child per month for children aged birth through 5;
(2)	$365.00 per child per month for children aged 6 through 12; and
(3)	$415.00 per child per month for children aged 13 through 18."

Requested by:   Representatives Nye, Easterling, Diamont
FOSTER CARE ASSESSMENT TOOL
Sec. 157.  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 ongoing assessment tool to be used to study, develop, and implement a statewide recruitment and retention plan.

Requested by:   Representatives Easterling, Nye, Diamont
FOSTER CARE
Sec. 158.  Section 231 of Chapter 321 of the 1993 Session Laws reads as rewritten:
"Sec. 231.  (a)	Funds appropriated to the Department of Human Resources in this act 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 July 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)	$315.00 per child per month for children aged birth through 5;
(2)	$365.00 per child per month for children aged 6 through 12; and
(3)	$415.00 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:  Representatives Nye, Easterling, Nesbitt, Diamont, H. Hunter
HIV FOSTER CARE BOARD PAYMENT FUNDS
Sec. 159. Of the funds appropriated in this act to the Department of Human Resources, Division of Social Services, the sum of four hundred ninety-nine thousand five hundred dollars ($499,500) shall be used for foster care board payments for children with HIV, to be allocated as follows:
(1)	$800.00 per month per child with indeterminate HIV status;
(2)	$1,000 per month per child confirmed HIV-infected, asymptomatic;
(3)	$1,200 per month per child confirmed HIV-infected, symptomatic; and
(4)	$1,600 per month per child terminally ill with complex care needs.

Requested by:  Representatives Easterling, Nye, Nesbitt, Diamont, H. Hunter
DEPARTMENT STUDY OF CHILD-CARING AGENCIES REIMBURSEMENT DISCREPANCIES
Sec. 160.  The Department of Human Resources shall study the reimbursement method for child-caring agencies to determine whether inequitable discrepancies exist among agencies' reimbursement rates that should be rectified.  This study shall include a detailed analysis of federal formulas and of State formulas to determine whether inequities exist at the federal formula level that can be rectified by State action and a detailed examination of whether agencies that have historically served minority children are suffering from inequitable reimbursement.
The Department shall report the results of this study, together with any recommendations for needed State action, to the General Assembly by March 15, 1995.

Requested by:  Representatives Easterling, Nye, Diamont
MATERNITY HOME AND ADOPTION FUNDS
Sec. 161.  (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 shall be used to contract with the Children's Home Society of North Carolina, Inc., to recruit and train families to adopt children with special needs and to provide 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.
(c) The Department of Human Resources shall report to the 1995 General Assembly and to the Fiscal Research Division of the Legislative Services Office by March 15, 1995, on the use of funds allocated pursuant to subsections (a) and (b) of this section.  This report shall include a detailed analysis of the services provided, of the people served, and of the program's relative success in achieving its goals as prescribed by subsections (a) and (b) of this section. 

Requested by:  Representatives Easterling, Nye, Colton
CHILD-CARING AGENCIES FUNDS
Sec. 162. Of the funds appropriated to the Department of Human Resources, Division of Social Services, the sum of seven hundred fifty-five thousand fifty-nine dollars ($755,059) shall be used to provide partial reimbursement to the following ten private, nonprofit child-caring agencies for the placement of certain children by county departments of social services:
(1)	Bertie-Martin-Beaufort County Shelter Home, of Jamesville;
(2)	Caldwell Residential Services, of Lenoir;
(3)	Caring for Children, Inc., of Asheville;
(4)	The Children's Home Society of North Carolina, Inc., of Greensboro;
(5)	Children's Homes of Cleveland County, of Shelby;
(6)	Family Resources of Rutherford County, Inc., of Spindale;
(7)	Florence Crittenton Services, of Charlotte;
(8)	Loray Girls Home, of Gastonia;
(9)	Yahweh Center, Inc., of Wilmington; and
(10)	Youth Homes, Inc., of Charlotte.
The children for whom these funds are appropriated are children not eligible for federal matching funds under the Title IV-E foster care maintenance payments.  The ten agencies named in this section shall be added to the list of eligible agencies according to the provisions of NCAE 10, Subchapter 41M.

Requested by:   Representatives Nye, Easterling, Diamont
MEDICAID COVERAGE FOR ELDERLY, BLIND, AND DISABLED
Sec. 164.  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:   Representatives Easterling, Nye
MEDICAID REPORTING REQUIREMENTS
Sec. 165.  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:   Representatives Nye, Easterling, Diamont
MEDICAID COVERAGE FOR ADOPTIVE CHILDREN WITH SPECIAL NEEDS
Sec. 166.  Effective October 1, 1994, the Department of Human Resources shall provide Medicaid coverage for adoptive children with special or rehabilitative needs regardless of the adoptive family's income.

Requested by:   Representatives Easterling, Nye
MEDICAID INPATIENT HOSPITAL REIMBURSEMENT CHANGE
Sec. 167.  Section 227 of Chapter 321 of the 1993 Session Laws reads as rewritten:
"Sec. 227.  Effective July 1, 1994, 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.  In addition, the Department shall study the feasibility of implementing selective contracts for hospital inpatient services and shall report its recommendations to the General Assembly by March 15, 1994."

Requested by:   Representatives Easterling, Nye, Diamont
CHANGE IN MEDICAID COVERAGE TO PREGNANT WOMEN AND TO CHILDREN
Sec. 168.  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 who were born after September 30, 1983, with family incomes equal to or less than the federal poverty guidelines, as revised each April 1, shall be covered for Medicaid benefits."

Requested by:  Representatives Nye, Easterling, Alexander
MEDICAID ESTATE RECOVERY PLAN, AS REQUIRED BY FEDERAL LAW 
Sec. 169.  (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 U.S.C. § 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 the 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 fourth-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.
(e)	Regarding trusts that contain the assets of an individual who is disabled as defined in Title 19 of Section 1014(a)(3) of the Social Security Act, as amended, if the trust is established and managed by a nonprofit association, to the extent that amounts remaining in the beneficiary's account upon the death of the beneficiary are not retained by the nonprofit association, the trust pays to the Department from these remaining amounts in the account an amount equal to the total amount of medical assistance paid on behalf of the beneficiary under the North Carolina Medicaid Program."
(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:  Representatives Nye, Easterling
HEALTH MAINTENANCE ORGANIZATIONS REQUIRED TO BE LICENSED BY THE STATE BEFORE CONTRACTING TO SERVE MEDICAID RECIPIENTS
Sec. 170. G.S. 58-67-10(b)(3a) reads as rewritten:
"(3a)	This Article does not apply to any prepaid health service or capitation arrangement implemented or administered by the Department of Human Resources or its representatives, pursuant to 42 U.S.C. § 1396n or Chapter 108A of the General Statutes, or to any provider of health care services participating in such a prepaid health services [service] or capitation arrangement. the Department of Human Resources, any division in the Department, or any direct provider of health care services in connection with any direct, capitated, or otherwise prepaid arrangement applicable to health care services authorized pursuant to 42 U.S.C. § 1396n or Chapter 108A of the General Statutes.  Nothing in this subdivision exempts health maintenance organizations or any other person who undertakes to provide or arrange for the delivery of basic health care services to all enrollees on a prepaid basis, from complying with all applicable provisions in this Article."

Requested by:  Representatives Nye, Easterling
NORTH CAROLINA HEALTH PLANNING COMMISSION FUNDS
Sec. 171. Funds appropriated to the North Carolina Health Planning Commission in the 1993-94 fiscal year shall not revert but shall remain available during the 1994-95 fiscal year to cover the costs of services necessary to the work of the Commission.

Requested by:  Representatives Diamont, Nesbitt, Crawford
ALZHEIMER'S FUNDS
Sec. 172. Of the funds appropriated in this act to the Department of Human Resources, Division of Aging, the sum of one hundred thousand dollars ($100,000) for the 1994-95 fiscal year shall be used to support services delivered to Alzheimer's patients and their families.  These funds shall be allocated to each of the four Alzheimer's Association Chapters in North Carolina, in grants of twenty-five thousand dollars ($25,000) each.  Each Chapter shall submit to the Division for approval a plan for the use of the funds it is to receive.  Following the Division's approval, the Division shall disburse these funds according to a timetable outlined in each Chapter's plan.
 
PART 24.1.  DEPARTMENT OF AGRICULTURE

Requested by:   Representatives James, Bowman
CATTLE AND LIVESTOCK EXPOSITION CENTER
Sec. 173.  Of the funds appropriated in this act to the Department of Agriculture for the 1994-95 fiscal year, the sum of fifty thousand dollars ($50,000) shall be used for planning the construction of the Cattle and Livestock Exposition Center in Alamance County.  The Center will house livestock shows and exhibits, educational programs, and a laboratory for embryo transfer research, semen evaluation, and livestock blood work.

Requested by:   Representatives Bowman, Yongue
NORTH CAROLINA WAREHOUSE ACT FUND
Sec. 174.  (a)  G.S. 106-435 reads as rewritten:
"§106-435.  Fund for support of system; collection and investment.
In order to provide a sufficient indemnifying or guarantee fund to cover any loss not covered by the bonds hereinbefore mentioned, in order to provide the financial backing which is essential to make the warehouse receipt universally acceptable as collateral, and in order to provide that a State warehouse system intended to benefit all cotton growers in North Carolina shall be supported by the class it is designed to benefit, it is hereby declared: that on each bale of cotton ginned in North Carolina during the period from the ratification of this bill until June 30, 1922, twenty-five cents (25¢) shall be collected through the ginner of the bale and paid into the State treasury, to be held there as a special guarantee or indemnifying fund to safeguard the State warehouse system against any loss not otherwise covered.  The State Tax Commission shall provide and enforce the machinery for the collection of this tax, which shall be held in the State treasury to the credit of the State warehouse system.  Not less than ten per centum (10%) of the entire amount collected from the per bale tax shall be invested in United States government or farm loan bonds or North Carolina bonds, and the remainder may be invested in amply secured first mortgage notes or bonds to aid and encourage the establishment of warehouses operating under this system, and to aid and encourage the establishment of farm markets designed to serve the marketing, packaging, and grading needs for the sale and distribution of unprocessed farm commodities when adequate markets are not otherwise provided.  Such investments shall be made by the Board of Agriculture, with the approval of the Governor and Attorney General: Provided, such first mortgages shall be for not more than one-half the actual value of the warehouse property covered by such mortgages, and run not more than 10 years: Provided further, that the interest received from all investments shall be available for appropriation for capital projects and nonrecurring expenditures as provided in the bill making the appropriation, and for the administrative expense of carrying into effect the provisions of this law, including the employment of such persons and such means as the State Board of Agriculture in its discretion may deem necessary: Provided further, that the guarantee fund, raised under the provisions of sections 4907 to 4925 of the Consolidated Statutes of 1919, shall become to all intents and purposes a part of guarantee fund to be raised under this law and subject to all the provisions hereof.  The fund created by this section may be used for loans to owners of cotton gins to make improvements to gins to comply with federal and State air quality regulations, rules, and laws.  The loans shall be secured and made under terms and conditions approved by the Board of Agriculture.  Income earnings, including earnings from interest, may also be used by the Department of Agriculture for cotton promotion activities."
(b)  There is appropriated from the North Carolina Warehouse Act Fund to the Department of Agriculture, the sum of one hundred thousand dollars ($100,000) for the 1994-95 fiscal year to be used for maintenance and operation of the Ballentine Building on Blue Ridge Boulevard in Raleigh to house the pesticide program.

Requested by:  Representatives Black, Bowman   
AGRICULTURE IN THE CLASSROOM
Sec. 175.  Of the funds appropriated to the Department of Agriculture the sum of one hundred twenty-five thousand dollars ($125,000) for the 1994-95 fiscal year shall be used as a Grant-in-Aid for The North Carolina Farm Bureau Foundation for Agriculture in the Classroom, Inc., an educational program that works to develop a deeper appreciation for North Carolina's agricultural industry while promoting sound educational principles that lead to optimum classroom effectiveness.

Requested by:   Representative Bowman
AGRICULTURE FINANCE AUTHORITY
Sec. 176.  Of the funds appropriated in this act to the Agriculture Finance Authority for the 1994-95 fiscal year, the sum of one hundred seventy-five thousand dollars ($175,000) shall be used for a loan guarantee fund for low-cost energy conservation loans to farmers.  The loans shall be funded from one million dollars ($1,000,000) of federal energy conservation funds to be transferred from the Department of Commerce to the Department of Agriculture.  Interest on these funds and interest from loans of these funds may be used for the energy conservation loan program and its administration.

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

Requested by:   Representative Gottovi
STUDY COSTS/BENEFITS OF ENVIRONMENTAL REGULATIONS
Sec. 177.  The Department of Environment, Health, and Natural Resources shall use available funds to establish a protocol for assessing the economic costs and environmental benefits of new and existing State environmental regulations.  The Department shall submit a report on this protocol, including recommendations on implementation of the protocol, to the Chairs of the House Appropriations Subcommittee on Natural and Economic Resources and to the Chair of the Senate Appropriations Committee on Natural and Economic Resources by January 15, 1995.

Requested by:   Representatives Bowman, Culp
MINING EDUCATION/TRAINING FUNDS
Sec. 178.  The Department of Environment, Health, and Natural Resources, Division of Land Resources, may use twenty thousand dollars ($20,000) of available funds for the 1994-95 fiscal year to develop and publish a Mining Compliance Manual for mining applicants, permittees, and inspectors.

Requested by:   Representatives Diamont, Bowman, Gottovi, Yongue, Culp, Jenkins, H. Hunter
WATTS FARM CLEANUP STUDY FUNDS
Sec. 179.  The Department of Environment, Health, and  Natural Resources shall use available funds to study the cleanup of the mixed low-level radioactive and hazardous waste that is located in Wilkes County at the abandoned waste disposal site known as the Watts Retreat Farm.  This study shall address the manner and costs of retrieving, transporting, and disposing of these wastes at this site, where the wastes will be disposed, the potential liability of current and previous landowners of the site, the State, and any other potentially responsible parties, the need for the State to monitor the area before, during, and after the cleanup, the costs of such monitoring efforts, and any other issues the Department considers needed to be included in the study.  The Department shall report to the Joint Legislative Commission on Governmental Operations, to the Chairs of the House Appropriations Subcommittee on Natural and Economic Resources, to the Chair of the Senate Committee on Natural and Economic Resources, and to the Fiscal Research Division by January 15, 1995.

Requested by:  Representatives Bowman, H. Hunter 
IMMUNIZATION PROGRAM FUNDING
Sec. 180.  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 1993-94 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: Representative Gottovi
INFANT MORTALITY FUNDS FOR MINORITY POPULATIONS
Sec. 181. (a) Of the funds appropriated in this act to the Department of Environment, Health, and Natural Resources, Division of Maternal and Child Health, the sum of seven hundred fifty thousand dollars ($750,000) for the 1994-95 fiscal year shall be used to fund 15 grant projects in various communities to demonstrate means to lower infant mortality rates and percent of low birthweight babies among minority populations to bring the rates and percentage nearer those of the white population.
(b)  The Division of Maternal and Child Health shall award the grants to the 15 projects based upon recommendations of a grant review team consisting of representatives of the Division of Maternal and Child Health, the Department's Office of Minority Health, and the North Carolina Governor's Commission on Reduction of Infant Mortality.

Requested by: Representatives Gottovi, Bowman
INFANT MORTALITY REPORT EXTENSION
Sec. 182.  Subsection (a) of Section 284 of Chapter 321 of the 1993 Session Laws reads as rewritten:
"Sec. 284.  (a)	Of the funds appropriated in this act from the General Fund to the Department of Environment, Health, and Natural Resources for the Governor's Commission on the Reduction of Infant Mortality, the sum of fifty thousand dollars ($50,000) for the 1993-94 fiscal year shall be used to contract with outside evaluators to determine the extent to which the public and private health, social services and mental health, developmental disabilities, and substance abuse services systems in each county meet the health needs of pregnant women and infants up to age one, and of children ages one to five.  The study shall include, but not be limited to:  an examination of the percentage of pregnant women in each county that receive early and continuous prenatal care; the extent to which eligible pregnant women, infants, and children are receiving nutritional supplements, case management and other necessary health, social, mental health, and other support services; and the extent to which children are receiving age-appropriate immunizations.  The study shall determine what barriers, if any, exist in each county which prevent pregnant women, infants, and children under the age of five from receiving timely and necessary health services.  The Governor's Commission on the Reduction of Infant Mortality shall continue its study and shall report its findings to the General Assembly on or before May 15, 1994. July 15, 1994."

Requested by: Representatives Diamont, Bowman, H. Hunter
EXTEND CHILD FATALITY TASK FORCE
Sec. 183. (a) G.S. 143-577(b) reads as rewritten:
"(b)	The Task Force shall provide updated reports to the Governor and General Assembly within the first week of the convening of the 1993 General Assembly and Assembly, within the first week of the convening of the 1994 Regular Session of the 1993 General Assembly. Assembly, within the first week of the convening of the 1995 General Assembly, and within the first week of the convening of the 1996 Regular Session of the 1995 General Assembly. The Task Force shall provide a final report to the Governor and General Assembly within the first week of the convening of the 1995 1997 General Assembly. The final report shall include final conclusions and recommendations for each of the Task Force's duties, as well as any other recommendations for changes to any law, rule, and policy that it has determined will promote the safety and well-being of children. Any recommendations of changes to law, rule, or policy shall be accompanied by specific legislative or policy proposals and detailed fiscal notes setting forth the costs to the State."
(b)  Section 285(e) of Chapter 321 of the 1993 Session Laws reads as rewritten:
"(e)	Subsections (b), (c), and (d) of this section become effective February 1, 1995. February 1, 1997.  The rest remainder of this section is effective upon ratification of this act."
(c)  Of the funds appropriated in this act to the Department of Environment, Health, and Natural Resources the sum of eighty-five thousand dollars ($85,000) for the 1994-95 fiscal year shall be used to continue the operations of the North Carolina Child Fatality Task Force.

Requested by:   Representatives Diamont, Michaux
WOMEN'S HEALTH SERVICE FUND
Sec. 184.  (a) Fund established. The Women's Health Service Fund is created within the Department of Environment, Health, and Natural Resources.  The Department may make reimbursements from the Fund to approved medical providers for services rendered to eligible women who voluntarily request the insertion, implantation, or injection of a long-term, reversible contraceptive device or drug. 
(b) Definitions. As used in this section, unless the context clearly requires otherwise:
(1)	" Device or drug" means a long-term, reversible contraceptive device or drug the implantation, insertion, or injection of which is a service covered under this section.
(2)	" Long-term, reversible contraceptive device or drug" means a device or drug approved for contraceptive purposes by the United States Food and Drug Administration, that, when implanted under the skin, inserted into the uterus, or injected into the bloodstream of a woman of child-bearing age will inhibit or prevent conception for a definite period of time, the contraceptive effects of which are reversible upon removal or discontinuance of the device or drug.
(3)	" Medical provider" means a licensed physician, physician's assistant, nurse practitioner, or other health care provider approved by the Department to provide services under this section.
(4)	" Woman" or "women" means one or more females of child-bearing age.
(c) Rules. The Department shall adopt rules for the administration of and allocations from the Fund. The rules shall include the following:
(1)	Eligibility requirements enabling women, whether married or unmarried, to obtain upon request the implantation, insertion, or injection of a long-term, reversible contraceptive device or drug.  Except in cases of medical necessity, women may receive contraceptive devices under this section on a one-time basis only.
(2)	Services under this section shall be conditioned upon agreement by the recipient to attend, prior to insertion, implantation, or injection of the device or drug, education programs approved by the Department.  The education programs shall include:
a.	Comprehensive preinsertion or preprescription counseling on implantation, insertion, injection, and removal procedures,
b.	Potential side effects and costs of the device or drug,
c.	Other options for preventing conception, including newly approved long-term, reversible contraceptive devices or drugs that become available, and family planning education and counseling, including parenting skills,
d.	Information on sexually transmitted diseases and the fact that long-term, reversible contraceptive devices and drugs do not protect against such diseases, and
e.	Counseling for applicants who do not have a high school diploma regarding the benefits of completing her high school education either by remaining in school or obtaining her GED.
(3)	A long-term, reversible contraceptive device or drug shall be prescribed only upon request voluntarily initiated by the recipient and only when there are clear benefits to the recipient as determined by the recipient in consultation with an approved medical provider.
(4)	Procedures for the safe removal or discontinuance of the device or drug, where applicable. 
(5)	Written notice to applicants for services that the Department has no obligation to reimburse providers for the reimplantation or reinsertion of a device that has been prematurely removed from the individual except in cases where the premature removal was prescribed for medical reasons.
(d) Coercion prohibited. The Department shall adopt procedures and rules to ensure that application information, education, and counseling provided to women about the services available under this section are not coercive in any manner, do not offer financial or other incentives to request or refuse the services, and do not impose penalties for the refusal of services. 
(e)  Of the funds appropriated to the Department of Environment, Health, and Natural Resources in this act, the sum of seven hundred fifty thousand dollars ($750,000) for the 1994-95 fiscal year shall be allocated to the Women's Health Service Fund created in subsection (a) of this section.
(f)  Nothing in this section creates an entitlement to services authorized under this section.

Requested by: Representatives Diamont, H. Hunter 
ADOLESCENT PREGNANCY PREVENTION/MEDIA CAMPAIGN AND ABSTINENCE UNTIL MARRIAGE EDUCATION FUNDS
Sec. 184.1. (a) Of the funds appropriated in Section 3 of Chapter 321 of the 1993 Session Laws to the Department of Environment, Health, and Natural Resources for the adolescent pregnancy prevention program, the sum of up to one hundred thirty thousand dollars ($130,000) for the 1994-95 fiscal year may be used as follows:
(1)	Seventy-seven percent (77%) of these funds, not to exceed the sum of one hundred thousand dollars ($100,000), to initiate a statewide media campaign, in conjunction with the North Carolina Coalition on Adolescent Pregnancy, for the purpose of promoting abstinence, reducing pregnancy, and promoting healthy behavior in North Carolina's children ages 9-14.  These funds shall be used to purchase the rights to the Maryland Media Campaign, which is an abstinence-based campaign, to purchase print media, radio ads, television ads, and for distribution of campaign material.
(2)	Twenty-three percent of these funds, not to exceed the sum of thirty thousand dollars ($30,000), to fund a sex education curriculum that promotes abstinence until marriage in twelve school systems.  The first twelve school systems that apply for these funds may receive up to two thousand five hundred dollars ($2,500) each.  Nothing shall prohibit a school system from receiving private funds to provide this curriculum.
(b) All applications for grants for funds prescribed in subdivision (2) of subsection (a) of this section shall contain a detailed description of the curriculum to be offered and a full set of materials to be used.  Prior to making any grants, the Department shall review all curriculum descriptions and materials and shall use the results of this review in determining whether to award grants.  If any of the initial 12 school systems that apply for grants are rejected by the review process, other school systems may apply.
(c) The Department shall report on the status and funding of the statewide media campaign and abstinence until marriage education to the House Appropriations Subcommittee on Natural and Economic Resources and the Senate Appropriations Committee on Natural and Economic Resources by January 15, 1995.

Requested by:   Representatives Bowman, Culp
SOIL SURVEY POSITIONS FUNDS
Sec. 185.  Of the funds appropriated to the Department of Environment, Health, and Natural Resources in this act, the sum of one hundred three thousand dollars ($103,000) shall be used for the 1994-95 fiscal year to establish, support, and provide travel expenses for three soil scientist positions in the Soil Survey Section.  These three positions shall continue three soil scientist positions that are due to expire June 30, 1994, and that presently work with counties to conduct soil surveys throughout the State and map soil locations and identities.

Requested by:   Representatives Bowman, Nesbitt, Creech, Culp
NATIONAL ENVIROTHON FUNDS
Sec. 186.  Of the funds appropriated to the Department of Environment, Health, and Natural Resources in this act, the sum of twenty-five thousand dollars ($25,000) for the 1994-95 fiscal year shall be used to assist the North Carolina Association of Soil and Water Conservation Districts with the costs of North Carolina serving as host of the National Envirothon to be held in Asheville in 1994. 

Requested by:   Representatives Bowman, Gottovi
AGRICULTURE COST SHARE PROGRAM FUNDS
Sec. 187.   Of the funds appropriated to the Department of Environment, Health, and Natural Resources, Division of Soil and Water Conservation, in this act for the Agriculture Cost Share Program for Nonpoint Source Pollution Control for the 1994-95 fiscal year, the sum of forty thousand dollars ($40,000) shall be used to install best management practices to protect water quality, including tide gates, water control structures, and waste management measures in rural environs, in the subbasin of the Cape Fear River and Atlantic drainage east of Cypress Creek and north of Walden Creek, under the Rural Clean Water Demonstration Program and in accordance with the match and program requirements specified in G.S. 143-215.74(b)(6).

Requested by:   Representatives Nesbitt, Diamont
STATE PARKS FUNDS
Sec. 188.  Of the funds appropriated to the Department of Environment, Health, and Natural Resources in this act, the sum of five million dollars ($5,000,000) for the 1994-95 fiscal year shall be used for the State Parks System for repairs, renovations, construction, and land acquisition.  Land acquisition funded under this section shall be limited to the purchase of inholdings, primary features, and corridor linkages and shall not exceed thirty percent (30%) of the funds allocated by this section.

Requested by:   Representatives Bowman, Gottovi, James, Culp
STATE PARKS RETIREMENT
Sec. 188.1.  The Department of Environment, Health, and Natural Resources may use up to two hundred seventy thousand two hundred twenty-four dollars ($270,224) of available funds for retroactive retirement benefits for eligible employees in the Division of Parks and Recreation, as authorized under the Supplemental Retirement Income Plan for State Law Enforcement Officers.

Requested by:  Representative James 
WILDLIFE RESOURCES COMMISSION/FUNDS FOR SALARY INCREASES 
Sec. 189.  (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 three million seven hundred thirty-one thousand one hundred sixteen dollars ($3,731,116) 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, 1994. 1995."

Requested by:   Representative Bowman
WILDLIFE RESOURCES COMMISSION LONG-RANGE BUDGET PLAN
Sec. 190.  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 1986-87 1987-88 fiscal year through the 1991-92 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 1986-87 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 1992-93 1994-95 through 1996-97 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, 1993. 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."

Requested by:  Representative Diamont
REALLOCATION OF FUNDS
Sec. 191. Notwithstanding the provisions of Section 112 of Chapter 1034 of the 1984 Session Laws and Section 238.2 of Chapter 689 of the 1991 Session Laws, the funds allocated for the Town Fork Flood Control and Water Supply (Stokes County) shall be reallocated as a grant to the Pilot Mountain Foundation, Inc., for capital improvements. The funds appropriated in Chapter 480 of the 1985 Session Laws and Chapter 754 of the 1989 Session Laws for construction of the Town Forks Reservoir Project in Stokes County are extended for the purpose authorized and shall not revert until June 30, 1997.

PART 26.  DEPARTMENT OF COMMERCE

Requested by: Representatives Bowman, H. Hunter, Jenkins, Yongue, Dockham
RURAL ECONOMIC DEVELOPMENT CENTER/COMMUNITY DEVELOPMENT GRANTS
Sec. 192. (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, Inc., to provide training, technical assistance, resource development, project assistance, and support for local community development corporations statewide.
(4)	$50,000 to the Rural Economic Development Center for the 1994-95 fiscal year to be used to cover expenses in administering this act.
The Rural Economic Development Center, Inc., shall report quarterly to the Joint Legislative Commission on Governmental Operations on the use of these funds.
(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 one hundred seventy-five thousand dollars ($2,175,000) for the 1994-95 fiscal year shall be used to support the loan fund and operations of the North Carolina Community Development Initiative, Inc.  The Initiative shall provide operating and project activity grants to mature community development corporations that have demonstrated project and organizational capacity.
The North Carolina Community Development Initiative, Inc., shall report quarterly to the Joint Legislative Commission on Governmental Operations on the use of these funds.
(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 Governmental Operations on the use of these funds.
(a4) The North Carolina Minority Support Center – 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 Support Center 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 Support Center.
(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 one million dollars ($1,000,000) for the 1994-95 fiscal year shall be used to provide grants to depressed counties and municipalities to enable them to acquire short-term capacity for immediate needs for economic development planning and writing of grant applications.  The 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.
(a7) The North Carolina Capital Access Program – Of the funds appropriated in this act from the General Fund to the Rural Economic Development Center, Inc., the sum of one million dollars ($1,000,000) for the 1994-95 fiscal year shall be used to establish the North Carolina Capital Access Program.  The program shall leverage this public investment along with private sector resources to stimulate additional financing opportunities for a broad portfolio of small business concerns in North Carolina.  The Program shall encourage commercial banks and other depository institutions to provide access to debt capital, thereby promoting a more effective and efficient debt market to provide economic opportunity, create jobs, enhance productivity, and spur innovation.
(1)	Definitions – The following definitions apply in this subsection:
a.	 Financial institution – Any federally chartered or state chartered commercial ban, savings and loan, savings bank, or credit union.
b.	 Participating financial institution – Any financial institution that has entered into a participation agreement with the Center in accordance with the provisions set forth in this section.
c.	 Enrolled loan – Loan made by a participating financial institution in accordance with this section.
(2)	The Center may enter into participating agreements with any financial institution determined to have sufficient lending experience and financial and managerial capacity to participate in the Program.
(3)	Participating financial institutions – Upon entering into the participation agreement with the Center, the financial institution shall become a participating financial institution eligible to enroll loans under the Program.
(4)	The Rural Economic Development Center shall administer the Program as established in this section and monitor the Program to ensure compliance with applicable State and federal laws, rules, and relevant court decisions.
(5)	The Program will have as a goal to leverage public funds with private sector resources on the basis of 20 private dollars to every one public dollar.
(6)	Of the funds appropriated for the Capital Access Program, the sum of fifty thousand dollars ($50,000) for the 1994-95 fiscal year shall be used to cover expenses in administering this Program.
The Rural Economic Development Center shall report quarterly to the Joint Legislative Commission on Governmental Operations on the implementation and operation of 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 1993-94 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.

Requested by: Representatives Bowman, H. Hunter 
BIOTECHNOLOGY FUNDS FOR MINORITY UNIVERSITIES
Sec. 193.  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 1993-94 1994-95 fiscal year, the sum of one million dollars ($1,000,000) two million dollars ($2,000,000) 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.
The Center shall report to the General Assembly by March 15, 1994, December 15, 1994, on the development and implementation of this special initiative.
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:  Representatives Bowman, H. Hunter 
ECONOMIC DEVELOPMENT FUNDS
Sec. 194.  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 1993-94 1994-95 fiscal year shall be allocated for the Land Loss Prevention Project, Inc., to provide free legal representation to low-income financially distressed small 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 1993-94 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, two seven hundred thousand dollars ($200,000)  ($700,000) for the 1993-94 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  assistance, training, and capacity-building for 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:  Representative Bowman 
WTTF FUNDS TO EMPLOYMENT SECURITY COMMISSION
Sec. 195.  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: Representatives Nesbitt, Redwine, Bowman
EXPAND REGIONAL ECONOMIC DEVELOPMENT EFFORTS
Sec. 196. (a) Regional Economic Development Commission Expansion Program: The Department of Commerce shall develop a program for promoting the expansion of economic development efforts such that all counties in the State participate in and benefit from organized regional economic development activities. In developing the program, the Department shall identify those counties currently not participating in existing regional economic development commissions and shall encourage the counties to either (i) join commissions established under G.S. 158-8, (ii) create new regional commissions made up of nonparticipating counties in accordance with this section, or (iii) request authorization by the General Assembly to participate in regional economic development commissions established under G.S. 158-8.1, 158-8.2, or 158-8.3.  Regional economic development commissions created under this section shall be subject to the provisions of Article 2 of Chapter 158 of the General Statutes and shall have the powers and duties authorized thereunder, in addition to powers and duties authorized under this section.
(b) Scope: This section applies to regional economic development commissions created under this section, and to the Piedmont Triad Partnership, the Carolinas Partnership, Inc., the Raleigh-Durham Regional Association, and the Global TransPark Development Zone established pursuant to Article 4 of Chapter 158 of the General Statutes.  Except as provided in subdivision (g)(1) of this section, this section shall not apply to regional economic development commissions established pursuant to G.S. 158-8.1, 158-8.2, and 158-8.3.
(c) Requirements for regional commissions:  Each regional economic development commission created pursuant to this section shall include a sufficient number of counties, and municipalities of those counties, to ensure that each new commission:
(1)	Is of adequate size in population and geographic scope to effectively undertake economic development activities, to market as a distinct and viable region for attraction of new investment, and to generate adequate local resources to effectively cooperate with the Department of Commerce;
(2)	Is economically integrated as determined by commuting patterns, economic base, economic interrelationships, major employers, or other indicators of economic integration; and
(3)	Has an identifiable focal point of economic activity, known as an economic engine or driver, within the regional boundaries on which to build an effective economic development and marketing strategy, such as a metropolitan area, a cluster of manufacturing or nonmanufacturing industries, a natural resource base, or other clearly identifiable economic resources.
(d) Criteria for regional boundaries: In facilitating the creation of regional economic development commissions under this section, the Department and the counties involved shall consider economic interrelationships, existing development organizations and relationships, natural boundaries, anticipated major projects, and other factors that promote effectiveness and efficiency and foster local cooperation.
(e) State funding: Regional economic development commissions created under this section shall receive State funds as follows.  The Department shall allocate to each newly created regional economic development commission the sum of the allocations to each county that is a member of the commission.  Each county's allocation shall be determined by dividing the county's distress factor by the sum of the distress factors for eligible counties and multiplying the resulting percentage by the amount of the appropriation. As used in this section, the term "distress factor" means a county's distress factor as calculated under G.S. 105-130.40(c).  For counties that elect to join regional economic development commissions established under G.S. 158-8, the Department shall allocate to each regional economic development commission the funding share of each county that joins that commission pursuant to subsection (a)(i) of this section.
(f) Use of funds: Funds allocated to a regional economic development commission created under this section shall be used for administrative and operating expenses of the commission, marketing, advertising, promotion, and economic development activities to secure jobs and new investment in the region served by the commission.  In addition to the powers and duties authorized under Article 2 of Chapter 158, the newly created commissions may use funds for the following activities:
(1)	Marketing the region to promote new investment from out-of-state companies;
(2)	Promoting travel and tourism or natural resource-based attractions;
(3)	Trade missions;
(4)	Marketing and promoting existing industries;
(5)	Encouraging attraction or retention of entrepreneurial development;
(6)	Promoting and marketing local crafts, industries, or other specialized economic development opportunities; and
(7)	Research-related economic development activities such as industry sector studies for targeted marketing, buyer-supplier analyses for targeted marketing or to support existing industry, development of necessary supporting information and data, or linking the region with the Department of Commerce's Economic Development Information System.
 	(g) Duties of the Department of Commerce: The Department shall have the following duties under this section:
(1)	Actively assist each regional economic development commission, including those established under G.S. 158-8.1, 158-8.2, and 158-8.3, in organizing and carrying out its economic development activities. To this end, the Department shall:
a.	Ensure that each commission is linked to the Economic Development Information System; and
b.	Develop procedures that ensure that each region has maximum opportunity to attract new jobs and investment, that all inquiries from companies concerning location in North Carolina are fairly and equitably handled within the confines of the inquiring company's requirements and needs, and that all inquiries and prospective investments are handled efficiently and effectively.
(2)	Institute a process to organize programs and services in a manner that will assist each region in taking maximum advantage of potential development opportunities.  This process shall include all of the following:
a.	Integrating each regional economic development commission into the Economic Development Information System and the Geographic Information System;
b.	Developing joint marketing strategies and materials for targeted industries, services, or promotional markets based on each region's strengths and priorities;
c.	Assigning an economic development specialist to work with each regional economic development commission;
d.	Providing technical assistance and training, if needed, to help build regional capacity;
e.	Developing cooperative marketing and advertising campaigns to ensure consistency of image and quality, and to secure discounts on media presentations; and
f.	Customizing the services and programs within the Department, where practicable, to better link departmental resources with the diverse needs and opportunities within the boundaries of each regional commission;
(3)	Study and determine whether certain counties currently participating in existing commissions should be transferred to other regional commissions, and make recommendations to the 1995 General Assembly, by January 15, 1995, regarding the advisability of such transfers and regarding the effectiveness of the current structure of regional commissions; and
(4)	Recommend to the 1995 General Assembly, by January 15, 1995, a strategy for reducing duplication and fragmentation in State-funded regional economic development organizations.
(h) As used in this subsection, the term "Authority" means the North Carolina Air Cargo Airport Authority doing business as the North Carolina Global TransPark Authority.  For purposes of this section, the Global TransPark Development Zone is a regional economic development commission, except that no funds authorized under subsection (i) of this section shall be allocated by the Department to the Global TransPark Development Commission for the Global TransPark Development Zone because funds have been appropriated by the General Assembly for the same fiscal year to the Authority for administration of the Authority and to the Department for promotion of the Global TransPark.
(i) Of the funds appropriated in this act to the Department of Commerce, the sum of two million one hundred thousand dollars ($2,100,000) shall be used for allocation to regional economic development commissions in accordance with this section.  These funds shall not revert but shall remain available until used for the purposes set forth in this section.

Requested by:   Representatives Nesbitt, H. Hunter
REGIONAL ECONOMIC DEVELOPMENT COMMISSIONS
Sec. 197.  (a)  G.S. 158-8.1(a) reads as rewritten:
"(a)	There is created the Western North Carolina Regional Economic Development Commission to serve Buncombe, Cherokee, Clay, Cleveland, Graham, Haywood, Henderson, Jackson, McDowell, Macon, Madison, Polk, Rutherford, Swain, Transylvania, and Yancey Counties.  The Commission shall be located administratively in the Department of Commerce but shall exercise its statutory powers and duties independently of the Department of Commerce.  Funds appropriated for the Commission by the General Assembly shall be disbursed directly to the Commission at the beginning of each fiscal year."
(b)  G.S. 158-8.1(d) reads as rewritten:
"(d)	Members of the Commission who are State employees shall receive travel expenses as provided in G.S. 138-6.  Other Commission members shall receive per diem and travel expenses of one hundred dollars ($100.00) a day for each day of service when the Commission meets and shall be reimbursed for travel and subsistence as provided in G.S. 138-5.  The Commission may adopt policies authorizing additional per diem of one hundred dollars ($100.00) a day for non-State employee members' additional days of service including Commission subcommittee meetings or other Commission activities, plus reimbursement for related travel and subsistence as provided in G.S. 138-5."
(c)  G.S. 158-8.2(a) reads as rewritten:
"(a)	There is created the Northeastern North Carolina Regional Economic Development Commission to facilitate economic development and tourism development in Beaufort, Bertie, Camden, Chowan, Currituck, Dare, Gates, Halifax, Hertford, Hyde, Martin, Northampton, Pasquotank, Perquimans, Tyrrell, and Washington Counties.  The Commission shall be located administratively in the Department of Commerce but shall exercise its statutory powers and duties independently of the Department of Commerce.  Funds appropriated for the Commission by the General Assembly shall be disbursed directly to the Commission at the beginning of each fiscal year."
(d)  G.S. 158-8.2(h) reads as rewritten:
"(h)	Members of the Commission who are State employees shall receive travel expenses as provided in G.S. 138-6.  Other Commission members shall receive per diem and travel expenses of one hundred dollars ($100.00) a day for each day of service when the Commission meets and shall be reimbursed for travel and subsistence as provided in G.S. 138-5.  The Commission may adopt policies authorizing additional per diem of one hundred dollars ($100.00) a day for non-State employee members' additional days of service including Commission subcommittee meetings or other Commission activities, plus reimbursement for related travel and subsistence as provided in G.S. 138-5. Members of the advisory boards who are State employees shall receive travel expenses as provided in G.S. 138-6 for participating in meetings and other official activities authorized by the Commission.  Other members of the advisory boards shall receive per diem and travel expenses as provided in G.S. 138-5 for participating in meetings and other official activities authorized by the Commission."
(e)  G.S. 158-8.3(a) reads as rewritten:
"(a)	There is created the Southeastern North Carolina Regional Economic Development Commission to serve Bladen, Brunswick, Columbus, Cumberland, Hoke, New Hanover, Pender, Richmond, Robeson, Sampson, and Scotland Counties.  The Commission shall be located administratively in the Department of Commerce but shall exercise its statutory powers and duties independently of the Department of Commerce.  Funds appropriated for the Commission by the General Assembly shall be disbursed directly to the Commission at the beginning of each fiscal year."
(f)  G.S. 158-8.3(d) reads as rewritten:
"(d)	Members of the Commission who are State employees shall receive travel expenses as provided in G.S. 138-6.  Other Commission members shall receive per diem and travel expenses of one hundred dollars ($100.00) a day for each day of service when the Commission meets and shall be reimbursed for travel and subsistence as provided in G.S. 138-5.  The Commission may adopt policies authorizing additional per diem of one hundred dollars ($100.00) a day for non-State employee members' additional days of service including Commission subcommittee meetings or other Commission activities, plus reimbursement for related travel and subsistence as provided in G.S. 138-5."

Requested by:   Representative James
NORTHEASTERN REGIONAL COMMISSION
Sec. 198.  G.S. 158-8.2(g) reads as rewritten:
"(g)	The Governor shall appoint and set the salary of a Director of Economic Development who shall coordinate the Commission's activities with regard to the economic development program.  The Governor shall appoint and set the salary of a Director of Tourism who shall coordinate the Commission's activities with regard to the tourism program. 
Within the limits of funds available, the Commission may hire and fix the compensation of any other personnel necessary to its operations, contract with consultants for any services as it may require, and contract with the State of North Carolina or the federal government, or any agency or department thereof, for any services as may be provided by those agencies.  The Commission may carry out the provisions of any contracts as it may enter.
Within the limits of funds available, the Commission may lease, rent, or purchase, or otherwise obtain suitable quarters and office space for its staff, and may lease, rent, or purchase necessary furniture, fixtures, and other equipment."

Requested by:   Representative H. Hunter
SMALL BUSINESS SURETY BONDS FUNDS CONTINGENCY
Sec. 200.  The funds appropriated in this act to the Department of Commerce for the Small Business Surety Bond Fund established in Part 16 of Article 10 of Chapter 143B of the General Statutes shall be contingent upon the ratification of House Bill 2057 by the 1993 General Assembly, Regular Session 1994.

Requested by: Representative Bowman
EXPAND NORTH CAROLINA INDUSTRIAL COMMISSION
Sec. 201. (a) G.S. 97-77 reads as rewritten:  
"§ 97-77.  North Carolina Industrial Commission created; members appointed by Governor; terms of office; chairman.
(a)	There is hereby created a commission to be known as the North Carolina Industrial Commission, consisting of three seven commissioners who shall devote their entire time to the duties of the Commission.  The Governor shall appoint the members of the Commission, one two for a term of two years, one two for a term of four years, and one three for a term of six years.  Upon the expiration of each term as above mentioned, the Governor shall appoint a successor for a term of six years, and thereafter the term of office of each commissioner shall be six years.  Not more than one appointee three appointees shall be a person persons who, on account of his their previous vocation, vocations, employment or affiliations, can be classed as a representative representatives of employers, and not more than one appointee three appointees shall be a person persons who, on account of his their previous vocation, vocations, employment or affiliations, can be classed as a representative representatives of employees.
(b)	One member, to be designated by the Governor, shall act as chairman.  The chairman shall be the chief judicial officer and the chief executive officer of the Industrial Commission; such authority shall be exercised pursuant to the provisions of Chapter 126 of the General Statutes and the rules and policies of the State Personnel Commission.  Notwithstanding the provisions of this Chapter, the chairman shall have such authority as is necessary to direct and oversee the Commission.  The chairman may delegate any duties and responsibilities as may be necessary to ensure the proper management of the Industrial Commission.  Notwithstanding the provisions of this Chapter, Chapter 143A, and Chapter 143B of the General Statutes, the chairman may hire or fire personnel and transfer personnel within the Industrial Commission.
The Governor may designate one vice-chairman from the remaining two commissioners.  The vice-chairman shall assume the powers of the chairman upon request of the chairman or when the chairman is absent for 24 hours or more.  The authority delegated to the vice-chairman shall be relinquished immediately upon the return of the chairman or at the request of the chairman."
(b) This section becomes effective July 1, 1994, and applies to appointments made on and after that date.

Requested by: Representatives Jenkins, Bowman, H. Hunter
RURAL TOURISM GRANTS
Sec. 202.  Of the funds appropriated in this act to the Department of Commerce, the sum of two hundred thousand dollars ($200,000) for the 1994-95 fiscal year shall be used for the Rural Tourism Development Grant Program.  The Department shall 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.

Requested by:   Representative Alphin
ECONOMIC DEVELOPMENT OF DUPLIN COUNTY
Sec. 203. If G.S. 160A-457.1 or any other provision of Part 8 of Article 19 of Chapter 160A of the General Statutes, read together with G.S. 160A-360(a), limits the territory in which the Town of Faison may use Community Development Block Grant funds, then notwithstanding G.S. 160A-360(a), the Town of Faison may use such funds for financing of extension of natural gas lines from Mt. Olive to the Bowden area.

Requested by: Representative Bowman
CENTER FOR COMMUNITY SELF-HELP FUNDS
Sec. 204.  (a)  Of the funds appropriated in this act to the Department of Commerce, the sum of five million dollars ($5,000,000) 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:  Representative Luebke
INDUSTRIAL RECRUITMENT DEVELOPMENT FUNDS
Sec. 205.  In determining the allocation of economic development grants from funds appropriated in this act to the Department of Commerce for the Industrial Recruitment Competitive Fund, the Department shall consider the extent to which a potential new enterprise uses recycled materials and the extent to which a potential new enterprise generates high levels of environmental pollution.  Where the Department of Commerce disburses these funds to eligible recipients through units of local government, the Department shall develop procedural guidelines to assure that the requirements of the Local Government Budget and Fiscal Control Act are observed in the allocation and accounting of these funds.

Requested by:   Representatives Nesbitt, Bowman
ENERGY PROGRAM/REPAIR AND RENOVATION FUNDS
Sec. 205.1.  (a)  G.S. 143-341(4) reads as rewritten:
"(4)	Real Property Control:
a.	To prepare and keep current a complete and accurate inventory of all land owned or leased by the State or by any State agency. This inventory shall show the location, acreage, description, source of title and current use of all land (including swamplands or marshlands) owned by the State or by any State agency, and the agency to which each tract is currently allocated. Surveys may be made where necessary to obtain information for the purposes of this inventory. Accurate plats or maps of all such land may be prepared, or copies obtained where such maps or plats are available.
b.	To prepare and keep current a complete and accurate inventory of all buildings owned or leased (in whole or in part) by the State or by any State agency. This inventory shall show the location, amount of floor space and floor plans of every building owned or leased by the State or by any State agency, and the agency to which each building, or space therein, is currently allocated. Floor plans of every such building shall be prepared or copies obtained where such floor plans are available, where needed for use in the allocation of space therein.
c.	To obtain and deposit with the Secretary of State the originals of all deeds and other conveyances of real property to the State or to any State agency, copies of all leases wherein the State or any State agency is lessor or lessee, and certified copies of wills, judgments, and other instruments whereby the State or any State agency has acquired title to real property. Where an original of a deed, lease, or other instrument cannot be found, but has been recorded in the registry of office of the clerk of superior court of any county, a certified copy of such deed, conveyance, or instrument shall be obtained and deposited with the Secretary of State.
d.	To acquire, whether by purchase, exercise of the power of eminent domain, lease, or rental, all land, buildings, and space in buildings for all State agencies, subject to the approval of the Governor and Council of State in each instance. The Governor, acting with the approval of the Council of State, may adopt rules (i) exempting from any or all of the requirements of this paragraph such classes of lease, rental, easement, and right-of-way transactions as he deems advisable; and (ii) authorizing any State agency to enter into and/or approve the classes of transactions thus exempted from the requirements of this paragraph; and (iii) delegating to any other State agency the authority to approve the severance of buildings and standing timber from State lands; upon such approval of severance, the buildings and timber so affected shall be treated, for the purposes of this Chapter, as personal property. Any contract entered into or any proceeding instituted contrary to the provisions of this paragraph is voidable in the discretion of the Governor and Council of State.
d1.	To require all State departments, institutions, and agencies to use State-owned office space instead of negotiating or renegotiating leases for rental of office space. Any lease entered into contrary to the provisions of this paragraph is voidable in the discretion of the Governor and the Council of State.
		The Department of Administration shall report to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division no later than May 1 of each year on leased office space.
d2.	To contract for or approve all contracts for modifying, rehabilitating, renovating, or improving existing buildings or facilities, or acquiring and installing fixtures or equipment in existing buildings or facilities, or any combination of the foregoing pursuant to an energy conservation project under Part 2 of Article 3B of Chapter 143 of the General Statutes.
e.	To make all sales of real property (including marshlands or swamplands) owned by the State or by any State agency, with the approval of the Governor and Council of State in each instance. All conveyances in fee by the State shall be executed in accordance with the provisions of G.S. 146-74 through 146-78. Any conveyance of land made or contract to convey land entered into without the approval of the Governor and Council of State is voidable in the discretion of the Governor and Council of State. The proceeds of all sales of swamplands or marshlands shall be dealt with in the manner required by the Constitution and statutes.
f.	With the approval of the Governor and Council of State, to make all leases and rentals of land or buildings owned by the State or by any State agency, and to sublease land or buildings leased by the State or by any State agency from another owner, where such land or building owned or leased by the State or by any State agency is not needed for current use. The Governor, acting with the approval of the Council of State, may adopt rules (i) exempting from any or all of the requirements of this paragraph such classes of lease or rental transactions as he deems advisable; and (ii) authorizing any State agency to enter into and/or approve the classes of transactions thus exempted from the requirements of this paragraph; and (iii) delegating to any other State agency the authority to approve the severance of buildings and standing timber from State lands; upon such approval of severance, the buildings and timber so affected shall be treated, for the purposes of this Chapter, as personal property. Any lease or rental agreement entered into contrary to the provisions of this paragraph is voidable in the discretion of the Governor and Council of State.
g.	To allocate and reallocate land, buildings, and space in buildings to the several State agencies, in accordance with rules adopted by the Governor with the approval of the Council of State; provided that if the proposed reallocation is of land with an appraised value of at least twenty-five thousand dollars ($25,000), the reallocation may only be made after consultation with the Joint Legislative Commission on Governmental Operations.  The authority granted in this paragraph shall not apply to the State Legislative Building and grounds or to the Legislative Office Building and grounds.
h.	To require any State agency to make reports regarding the land and buildings owned by it or allocated to it at such times and in such form as the Department may deem necessary.
i.	To determine whether all deeds, judgments, and other instruments whereby title to real estate has been or may be acquired by the State or by any State agency have been properly recorded in the county wherein the real property is situated, and to make or cause to be made proper recordation of such instruments. The Department may have previously recorded instruments which conveyed title to or from the State or any State agency or officer reindexed, where necessary, to show the State of North Carolina or grantor or grantee, as the case may be, and the cost of such reindexing shall be paid from the State Land Fund.
j.	To call upon the Attorney General for advice and assistance in the performance of any of the foregoing duties.
k.	None of the provisions of this subdivision apply to highway or railroad rights-of-way or other interests or estates in land held for the same or similar purposes, or to the acquisition or disposition of such rights-of-way, interests, or estates in land.
l.	To manage and control the vacant and unappropriated lands, swamplands, lands acquired by the State by virtue of being sold for taxes, and submerged lands of the State, pursuant to Chapter 146 of the General Statutes.
m.	To contract for or approve all contracts for all appraisals and surveys of real property for all State agencies; provided, however, this provision shall not apply to appraisals and surveys obtained in connection with the acquisition of highway rights-of-way, borrow pits, or other interests or estates in land acquired for the same or similar purposes, or to the disposition thereof, by the Board of Transportation.
n.	To petition for the annexation of state-owned lands into any municipality."
(b)	The title of Article 3B of Chapter 143 of the General Statutes reads as rewritten:
"Energy Policy for State Agencies Concerning Major Construction or Renovation of Buildings. Conservation in State Facilities."
(c)	Existing Article 3B of Chapter 143 of the General Statutes is designated as Part 1 of that Article, to be entitled "Energy Policy for State and State-Assisted Facilities."
(d)	Article 3B of Chapter 143  of the General Statutes is amended by adding a new Part to read:
"Part 2.  State Facilities Energy Conservation Program.
"§ 143-64.17.  Definitions.
As used in this Part:
(1)	'Energy Division' means the Energy Division of the Department of Commerce.
(2)	'Energy conservation project' includes:
a.	Any modification, rehabilitation, renovation, or improvement of existing State facilities;
b.	Any acquisition and installation of fixtures or equipment in existing State facilities; or
c.	Any combination of the foregoing
	that is intended to reduce energy costs or consumption or to allow the use of an alternative energy source and that may include integral control and measurement devices.
(3)	'Implementation cost' means includes, but is not limited to:
a.	The cost of construction, modification, rehabilitation, renovation, improvement, acquisition, or installation in connection with an energy conservation project;
b.	The cost of engineering, architectural, and other consulting services as may be required, including the cost of performing the technical analysis in accordance with G.S. 143-64.17B;
c.	Any other costs and expenses necessary or incidental to implementing the purposes of this Article.
(4)	'State facility' means a building owned by the State or a group of buildings owned by the State that are served by a central energy distribution system or by components of a central energy distribution system.
(5)	'Technical analysis' means a specialized engineering study conducted within a State facility to identify specific energy conservation projects, the implementation costs of these projects, and the expected energy and energy savings and energy cost savings after implementation.
"§ 143-64.17A.  State Facilities Energy Conservation Program.
(a)	The General Assembly finds that:
(1)	State government should take a leadership role in aggressively undertaking energy conservation in North Carolina.
(2)	After the implementation cost of the energy conservation project is paid, the State will save substantial sums of money in reduced utility bills.
(3)	The actual energy savings that result from an energy conservation project should offset, in whole or in part, the implementation cost of the energy conservation project.
(4)	The State should undertake only those energy conservation projects that are projected to require less than an aggregate of six years for the recoupment of the implementation cost based on the projected energy cost savings from implementing the energy conservation project.
(5)	The State should give highest priority to those energy conservation projects that are projected to require less than an aggregate of two years for the recoupment of the implementation cost of the energy conservation project based on the projected energy cost savings of the improvement.
(b)	The State Facilities Energy Conservation Program is established to more efficiently use energy resources in State facilities and to reduce the utility costs of the State.  The Energy Division shall develop, administer, and coordinate the State Facilities Energy Conservation Program.
(c)	The State Facilities Energy Conservation Program shall assist State agencies as follows:
(1)	Serve as a source of technical support for energy conservation management.
(2)	Identify sources of moneys for conducting technical analyses pursuant to G.S. 143-64.17B.
(d)	The Energy Division shall:
(1)	When necessary to carry out its duties under this Part, enter into contracts with State agencies and other qualified contractors.
(2)	Promulgate rules necessary to carry out the provisions of this Article.
(3)	Provide criteria for the selection of State projects or facilities to participate in this Program and develop a format that comports with these criteria. 
(4)	Develop procedures for the technical analyses required under G.S. 143-64.17B and procedures for implementing energy conservation projects.
(5)	Select, in order of priority and in consultation with the Department of Administration, State projects or facilities to participate in this Program.
(6)	Assess energy conservation program savings.
(7)	Be responsible for considering the costs of the constituent fixtures or improvements over their economic life during the selection of projects or facilities to participate in this Program.
"§ 143-64.17B.  Identification and implementation of energy conservation projects.
(a)	Each State project or facility that is selected shall undergo a technical analysis conducted by an engineer qualified to conduct such analysis.  When the Energy Division enters into a contract with a State agency whereby the State agency is to select and contract with an engineer to conduct the technical analysis of the agency's facilities, the State agency shall select the engineer within 60 days of entering into the contract with the Energy Division.  The Energy Division, in consultation with the Department of Administration, shall review all completed technical analyses.  If the Energy Division does not approve a technical analysis, the energy conservation project shall not be implemented.
(b)	Only those energy conservation projects identified by the technical analysis that are economically practical and that are projected not to require more than an aggregate of six years for the recoupment through energy cost savings of the estimated implementation cost of the improvements may be implemented.  Those energy conservation projects identified by the technical analysis that are projected to not require more than an aggregate of two years for the recoupment of the estimated implementation cost of the improvements shall be given priority.
(c)	Selection of a designer for an energy conservation project shall occur within 60 days of the Office of State Budget and Management certifying the availability of funds for the project.
"§ 143-64.17C.  Additional reporting requirements.
The Energy Division shall report on a quarterly basis to the Joint Legislative Commission on Governmental Operations.  This report shall include:
(1)	The technical analyses conducted in the previous quarter, including the location of the State facilities subject to the analyses and the results of the analyses.
(2)	The estimated implementation cost of each proposed project, the projected energy savings, and the projected payback period for each energy conservation project.
(3)	The energy conservation projects that were initiated during the previous quarter and the progress to date.
(4)	The energy conservation projects that were completed during the previous quarter, including the actual cost of constructing each energy conservation project.
(5)	The amount of time required for the implementation cost of each energy conservation project to be recouped, based on the energy savings of the project.
(6)	Any other information requested by the Commission.
"§ 143-64.17D.  Scope of this Part.
The provisions of this Part apply to all State facilities, including facilities in The University of North Carolina System and State hospitals."
(e)	The one million one hundred nineteen thousand six hundred fifty-two dollars ($1,119,652) that was received from the United States Department of Energy's Stripper Well Litigation (MDL378), appropriated from the Special Reserve for Oil Overcharge Funds to the Department of Economic and Community Development for the 1992-93 fiscal year, and allocated for energy conservation programs for hospitals and schools shall be reallocated to the Department of Commerce for the 1994-95 fiscal year for energy conservation programs for hospitals and schools and for energy conservation projects for State facilities pursuant to Part 2 of Article 3B of Chapter 143 of the General Statutes, as enacted by subsection (d) of this section.
(f)	Energy conservation projects that are selected to be implemented pursuant to Part 2 of Article 3B of Chapter 143 of the General Statutes, as enacted by subsection (d) of this section, may receive funding from the Reserve for Repairs and Renovations as approved by the Office of State Budget and Management or the Board of Governors of The University of North Carolina consistent with G.S. 143-15.3A.

Requested by:  Representative Nesbitt
MCNC GATEWAY FOR NCIHS
Sec. 205.2.  Funds appropriated in this act to MCNC for Migration of Current Network to the North Carolina Information Highway System (NCIH) shall be used as follows:
(1)	To cover the costs of connecting and operating the North Carolina Research and Education Network through the North Carolina Information Highway so that universities and research centers will continue to have the capability currently available through the North Carolina Research and Education Network,
(2)	For program support, and
(3)	For MCNC to serve as gateway to the North Carolina Information Highway for the eighteen sites.

PART 27.  DEPARTMENT OF LABOR

Requested by:  Representative Bowman 
PRIVATE PERSONNEL SERVICE ADVISORY COUNCIL
Sec. 206.  (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 below 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. salary, but shall be paid per diem, subsistence, and travel allowance in accordance with Chapter 138 of the General Statutes."

Requested by:   Representative Bowman
FUNDS FOR LABOR SALARY ADJUSTMENTS
Sec. 207.  If no salary reserve funds are available to the Department of Labor, the Director of the Budget may transfer to that Department from the Reserve for Salary Adjustments for the 1994-95 fiscal year funds to support approved salary adjustments within the Department consistent with the salary adjustments the State Personnel Commission recommends if the Office of State Personnel completes a personnel study and subsequently the State Personnel Commission approves that study.

TITLE II. CAPITAL IMPROVEMENTS

PART 28.  INTRODUCTION

Sec. 208. 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. 209.  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. 210.  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:

GENERAL ASSEMBLY	1994-95
1.  Complete Renovation of HVAC System	$6,200,000
DEPARTMENT OF ADMINISTRATION
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.  State Government Visitors Center - 
Planning	   430,000
4.  Correction Enterprises	10,810,430
TOTAL	$62,174,930

DEPARTMENT OF CULTURAL RESOURCES
1.  Fort Fisher State Historic Site
Erosion Control Measures
   Requirements	$8,340,000
   Receipts-Federal	 4,170,000
   State Appropriation
TOTAL	$4,170,000

STATE BUDGET
1.  Reserve for Prison Chapels	500,000

DEPARTMENT OF JUSTICE
1.  Blue Bell Building Replacement	3,687,700
2.  SBI Complex	12,404,300
TOTAL	$16,092,000

DEPARTMENT OF HUMAN RESOURCES
1.  Detention Center - Capital needs	205,000
2.  Renovations to support day treatment
programs at the schools for the deaf	600,000
3.  Activity/Recreation Complex at the
Eastern N.C. School for the Deaf	3,019,100
TOTAL	$3,824,100

UNIVERSITY - BOARD OF GOVERNORS
1.  N.C. State University - Agricultural
Extension - 4-H Camp Programs -
mandated safety, health and fire
compliance and accessibility
requirements	$2,000,000

DEPARTMENT OF AGRICULTURE
1.  Dairy Milking Parlor - Umstead
Research Station - Supplement
   Requirements	$387,000
   Timber Receipts	387,000
   State Appropriation
2.  Southeastern Farmer's Market and Equestrian
Agricultural Center - 	3,600,000
3.  Western North Carolina - Agricultural
Facilities	1,900,000
4.  Tidewater Research and Extension
Center - Phase II	  283,600
TOTAL	$5,783,600

DEPARTMENT OF ENVIRONMENT, HEALTH AND NATURAL RESOURCES
1.  Water Resources (Civil Works) Development
Projects	2,750,000
2.  Wilmington Harbor Ocean Bar Deepening	10,906,000
3.  Falls Lake Recreation/Jordan Water
Supply - Repayment	 9,527,000
TOTAL	$23,183,000
TOTAL	123,927,630

PART 30.1.  CAPITAL IMPROVEMENTS/HIGHWAY FUND

Department of Transportation
1.	Reserve for Capital Improvements	2,500,000

Appropriations for Other State Agencies
1.	Crime Control and Public Safety
Leaking Underground Storage Tank	500,000

GRAND TOTAL CAPITAL IMPROVEMENTS/HIGHWAY FUND	$  3,000,000

PART 31. GENERAL GOVERNMENT

EXPENDITURE OF FUNDS FROM RESERVE FOR REPAIRS AND RENOVATIONS
Sec. 211. 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 1993-94 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 32.  DEPARTMENT OF CULTURAL RESOURCES

Requested by:  Representatives Nesbitt, Diamont
ART MUSEUM AMPHITHEATER
Sec. 212.  The Department of Cultural Resources, North Carolina Museum of Art, may use additional gifts and grants to supplement the Art Museum Amphitheater capital project authorized in Section 4 of Chapter 1044 of the 1991 Session Laws, Regular Session 1992.  The total scope of the project shall not exceed two million dollars ($2,000,000) and shall not include any appropriated State funds.

PART 32.1.  DEPARTMENT OF ADMINISTRATION

Requested by:   Representatives Holt, Redwine
CORRECTION ENTERPRISES FUNDS
Sec. 212.1.  With respect to funds appropriated in this act for the expansion of the Correction Enterprises program, 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 facilities in order to implement the providing of facilities under the provisions of this act.
The facilities 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 facilities 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 facilities; (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 projects 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 the expansion of the Correction Enterprises program, 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 32.2.  OFFICE OF STATE BUDGET AND MANAGEMENT

Requested by:   Representatives Crawford, Nesbitt
PRISON CHAPEL FUNDS
Sec. 212.2.  Section 44 of Chapter 1044 of the 1991 Session Laws reads as rewritten:
 	" Sec. 44.  A Reserve for Prison Chapels is established in the Office of State Budget and Management to construct chapels at correctional facilities.  The funds are to be allocated to specific chapel projects when a minimum local match of one dollar for every two State dollars needed for the estimated project cost is made available.  No more than fifty thousand dollars ($50,000) of State funds shall be allocated to any single project.  Funds appropriated to the reserve established in this section shall not revert but shall remain available to the Department for the purposes of this section.
The Department of Correction shall notify all prison units of the availability of these funds and shall solicit letters of intent from interested units.  The Department shall evaluate the letters of intent for proposed chapel projects, notify those prison units whose projects appear most likely to obtain local matching funds during the 1992-93 fiscal year, and authorize those units to proceed based upon the total availability of State funds.  The Department shall notify the Office of State Budget and Management of those units that have been authorized to proceed.
The Office of State Budget and Management shall report quarterly to the Joint Legislative Commission on Governmental Operations on any allocations from the reserve established in this section."

PART 33. DEPARTMENT OF TRANSPORTATION

Requested by:   Representatives McAllister, McLaughlin
RESERVE FOR CAPITAL IMPROVEMENTS
Sec. 213.  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 34. DEPARTMENT OF HUMAN RESOURCES

Requested by:  Representatives Easterling, Nye
CAPITAL FUNDS FOR MENTAL HEALTH INSTITUTIONS
Sec. 215. Of the funds reserved in this act for repairs and renovations in the Office of State Budget and Management, ten million dollars ($10,000,000) shall be used for the capital needs of the State Mental Health, Developmental Disabilities, and Substance Abuse Facilities.

PART 35. DEPARTMENT OF ENVIRONMENT, HEALTH, AND NATURAL RESOURCES

Requested by:  Representative Bowman
WATER RESOURCES DEVELOPMENT PROJECTS FUNDS
Sec. 216.  (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 seven hundred fifty thousand dollars ($2,750,000) 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	  800,000
(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 1995-96 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.

PART 36.  GENERAL CAPITAL PROVISIONS

Requested by:  Representatives Nesbitt, Diamont
RESERVE FOR ADVANCE PLANNING
Sec. 217.  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:  Representatives Nesbitt, Diamont
ENCUMBERED APPROPRIATIONS AND PROJECT RESERVE FUND
Sec. 218.  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:  Representatives Nesbitt, Diamont
PROJECT COST INCREASE
Sec. 219.  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:  Representatives Nesbitt, Diamont
NEW PROJECT AUTHORIZATION
Sec. 220.  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:  Representatives Nesbitt, Diamont
ADVANCE PLANNING OF CAPITAL IMPROVEMENT PROJECTS
Sec. 221.  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:   Representatives Nesbitt, Diamont
APPROPRIATIONS LIMITS/REVERSION OR LAPSE
Sec. 222.  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:  Representatives Nesbitt, Daniel
EXECUTIVE BUDGET ACT APPLIES
Sec. 223.  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:  Representatives Nesbitt, Diamont
COMMITTEE REPORT
Sec. 224.  (a)  The House of Representatives Appropriations Committee Report on Budget Modifications/ Expansion Budget/ Capital Budget, dated June 17, 1994, which was distributed in the House of Representatives 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.
(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 House Appropriations Committee Report on Budget Modifications/ Expansion Budget/ Capital Budget, dated June 17, 1994.
(3)	The expansion budget items were added in accordance with the House Appropriations Committee Report on Budget Modifications/ Expansion Budget/ Capital Budget, dated June 17, 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 House Appropriations Committee Report on Budget Modifications/ Expansion Budget/ Capital Budget, dated June 17, 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:  Representatives Nesbitt, Diamont
MOST TEXT APPLIES ONLY TO 1994-95
Sec. 225.  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:  Representatives Nesbitt, Diamont
1993-94 APPROPRIATIONS LIMITATIONS AND DIRECTIONS APPLY
Sec. 226.  (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:  Representatives Nesbitt, Diamont
EFFECT OF HEADINGS
Sec. 227.  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:  Representatives Nesbitt, Diamont
SEVERABILITY CLAUSE
Sec. 228.  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:  Representatives Nesbitt, Diamont
EFFECTIVE DATE
Sec. 229.  Except as otherwise provided, this act becomes effective July 1, 1994.