GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1993

S	1 

SENATE BILL 975*

Short Title:  Governor's Operating Budget/'93.	(Public)
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Sponsors: Senators Daniel and Plyler.
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Referred to:  Appropriations.
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April 27, 1993

A BILL TO BE ENTITLED
AN ACT TO MAKE BUDGET APPROPRIATIONS FOR CURRENT OPERATIONS OF STATE DEPARTMENTS, INSTITUTIONS, AND AGENCIES, AND FOR OTHER PURPOSES.
The General Assembly of North Carolina enacts:
INTRODUCTION
Section 1.  The appropriations made in this act are for maximum amounts necessary to provide the services and accomplish the purposes described in the budget.  Savings shall be effected where the total amounts appropriated are not required to perform these services and accomplish these purposes and, except as allowed by the Executive Budget Act, or this act, the savings shall revert to the appropriate fund at the end of each fiscal year.

TITLE OF ACT
Sec. 2.  This act shall be known as "The Current Operations Appropriations Act of 1993."

PART 1.  CURRENT OPERATIONS/GENERAL FUND

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 biennium ending June 30, 1995, according to the following schedule:

Current Operations - General Fund	1993-94	1994-95

General Assembly	$   21,135,599 $   24,732,877

Judicial Department	230,837,163 231,500,639

Office of the Governor
01.	Office of the Governor	4,564,889 4,584,165
02.	Office of State Budget
and Management	3,311,982 3,434,483
03.	Office of State Planning	1,462,453 1,459,767
04.	Reserve for New Initiatives	993,396 1,267,196

Office of the Lieutenant Governor	540,395 542,236

Department of Secretary of State	4,763,248 4,727,201

Department of State Auditor	7,972,318 8,414,317

Department of State Treasurer
01.	State Treasurer	5,483,662 5,489,524
02.	Special Contributions	5,203,930 5,203,521

Department of Public Education	3,562,840,140 3,620,114,205

Department of Justice	52,801,030 53,432,854

Department of Administration	52,209,912 53,302,232

Department of Agriculture	42,759,392 43,138,368

Department of Labor	13,189,692 13,239,163

Department of Insurance	14,114,720 14,130,127

Department of Transportation
01.	Aeronautics	10,783,237 10,783,237
02.	Aid to Railroads	100,000 100,000
03.	Air Cargo	1,250,000 1,250,000
Total Department of
Transportation	12,133,237 12,133,237

Department of Environment, Health, and
Natural Resources	205,175,540 215,416,373

Office of Administrative Hearings	1,907,239 1,911,500

Rules Review Commission	258,516 258,593

Department of Human Resources
01.	DHR - Secretary	13,244,976 13,318,626
02.	Division of Aging	10,998,076 10,998,519
03.	Jordan Adams Inflationary Reserve	1,317,842 2,652,819
04.	Schools for the Deaf and
Hard of Hearing	20,878,090 20,886,616
05.	Social Services	179,638,715 185,231,510
06.	Medical Assistance	859,122,018 1,008,233,136
07.	Social Services - State Aid to
Non-State Agencies	6,162,725 6,162,725
08.	Division of Services for the Blind	13,537,765 13,665,706
09.	Division of Mental Health,
Developmental Disabilities, and
Substance Abuse Services	428,185,650 438,489,293
10.	Division of Facility Services	90,726,252 121,284,087
11.	Division of Vocational
Rehabilitation Services	22,947,988 22,974,573
12.	Division of Youth Services	52,730,990 52,823,940
Total Department of Human Resources	1,699,491,087 1,896,721,550

Department of Correction	568,994,887 598,291,037

Department of Commerce
01.	Commerce	39,361,682 46,142,989
02.	Biotechnology Reserve	7,014,396 7,014,396
03.	MCNC	15,680,000 15,680,000
04.	REDC	1,470,000 1,470,000

Department of Revenue	57,424,063 60,439,466

Department of Cultural Resources	41,899,588 42,555,894

Department of Crime Control
and Public Safety	20,041,705 20,143,313

Office of the State Controller	12,102,116 12,704,456

University of North Carolina - Board
of Governors
01.	General Administration	17,572,501 17,663,475
02.	University Institutional
Program	28,504,635 31,013,437
03.	Related Educational Programs	46,823,796 47,060,771
04.	University of North Carolina
at Chapel Hill
a.  Academic Affairs	138,945,852 140,996,687
b.  Health Affairs	111,238,501 113,175,936
c.  Area Health Education
    Centers	32,359,791 32,347,434
05.	North Carolina State University
at Raleigh
a.  Academic Affairs	181,265,894 181,908,297
b.  Agricultural Research Service	36,600,265 36,622,628
c.  Agricultural Extension Service	28,561,125 28,528,819
06.	University of North Carolina at
Greensboro	56,186,686 56,375,541
07.	University of North Carolina at
Charlotte	60,178,532 60,410,678
08.	University of North Carolina at
Asheville	17,382,278 17,473,997
09.	University of North Carolina at
Wilmington	34,261,195 34,479,525
10.	East Carolina University
a.  Academic Affairs	76,153,008 76,707,751
b.  Division of Health Affairs	53,977,874 55,188,673
11.	North Carolina Agricultural and
Technical State University	41,558,945 41,759,845
12.	Western Carolina University	37,259,281 37,263,299
13.	Appalachian State University	53,724,063 53,798,101
14.	Pembroke State University	16,754,370 16,838,959
15.	Winston-Salem State University	16,714,448 16,843,114
16.	Elizabeth City State
University	15,804,873 15,803,392
17.	Fayetteville State University	19,703,992 20,085,762
18.	North Carolina Central
University	28,545,595 28,760,192
19.	North Carolina School of the
Arts	8,125,930 8,145,585
20.	North Carolina School of
Science and Mathematics	7,415,389 7,466,421
21.	UNC Hospitals at Chapel Hill	42,427,085 43,712,181
Total University of North
Carolina - Board of Governors	1,208,045,904 1,220,435,500

Department of Community Colleges	417,162,758 456,086,112

State Board of Elections	545,539 545,885

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

Reserve for Compensation Increase	112,617,727 117,071,845

Reserve for Incentive
Compensation Bonus	34,244,460 34,244,460

Reserve for Salary Adjustments	5,500,000 5,500,000

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

Reserve for OSHA - Bloodborne Pathogens	1,000,000 1,000,000

Reserve for Retiree 30% Reduction	(10,000,000) (1,000,000)

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

Local Government Shared Revenue	     258,514,154      267,384,154

GRAND TOTAL CURRENT OPERATIONS –
GENERAL FUND	$8,829,557,801 $9,203,498,142

PART 2.  CURRENT OPERATIONS/HIGHWAY FUND

Sec. 4.  Appropriations from the Highway Fund of the State for the maintenance and operation of the Department of Transportation, and for other purposes as enumerated, are made for the biennium ending June 30, 1995, according to the following schedule:

Current Operations - Highway Fund	1993-94	1994-95

Department of Transportation
01.	Administration	$   44,782,091 $   39,514,111
02.	Division of Highways
a.	Administration and
Operations	34,046,177 34,071,263
b.	State Construction
(01)	Primary Construction	    –         –    
(02)	Secondary
Construction	66,486,917 66,884,639
	(03)	Urban Construction	9,028,266 9,028,266
(04)	Access and Public
Service Roads	2,000,000 2,000,000
(05)	Special Appropriation
for Highways	5,000 5,000
(06)	Spot Safety
Improvements	9,100,000 9,100,000
c.	State Funds to Match Federal
Highway Aid
(01)	Construction	47,992,066 47,992,066
(02)	Planning Survey and Highway
Planning Research	2,959,649 2,959,649
d.	State Maintenance
(01)	Primary	100,717,929 98,487,761
(02)	Secondary	176,508,949 172,570,502
(03)	Urban	26,508,775 25,865,281
(04)	Contract Resurfacing	87,500,000 87,500,000
e.	Ferry Operations	16,041,455 16,041,455
03.	Division of Motor Vehicles	79,694,727 79,299,135
04.	Governor's Highway Safety Program	293,863 294,515
	05.	State Aid to Municipalities	66,486,917 66,884,639
06.	State Aid for Public
Transportation	5,096,461 5,146,921
07.	Salary Adjustments for Highway
Fund Employees	200,000 200,000
08.	Reserve to Correct Occupational
Safety and Health Conditions	425,000 425,000
09.	Debt Service	37,359,875 27,664,550
10.	Reserve for Compensation
Increases	6,963,446 6,963,446
11.	Reserve for Transportation
Study	1,000,000     –    

Reserve for Incentive Compensation	3,481,723 3,481,723

Emergencies and Inflationary Adjustment	1,585,490 1,585,490

Appropriations for Other State Agencies
01.	Crime Control and Public
Safety	93,267,262 97,063,069
02.	Other Agencies
a.	Department of Agriculture	3,057,180 3,030,245
b.	Department of Revenue	2,063,522 2,065,412
	c.	Department of Environment,
Health, and Natural Resources:
LUST Trust Fund	4,809,298 4,904,343
Chemical Test Program	371,944 373,407
d.	Department of Correction	4,614,056 4,614,056
e.	Department of Public
Education	    24,505,055      24,984,056
f.	Department of State
Treasurer	     10,100,000      10,700,000

GRAND TOTAL CURRENT OPERATIONS –
HIGHWAY FUND	$  969,053,093 $  951,700,000

PART 3.  HIGHWAY TRUST FUND

Sec. 5.  Appropriations from the Highway Trust Fund are made for the fiscal biennium ending June 30, 1995, according to the following schedule:

Highway Trust Fund	1993-94	1994-95

01.	Intrastate System	$  213,689,246 $  266,572,368
02.	Secondary Roads Construction	49,470,987 51,222,727
03.	Urban Loops	86,407,031 91,616,429
04.	State Aid - Municipalities	22,420,986 23,772,726
05.	Program Administration	15,711,750 16,215,750
06.	Transfer to General Fund	    170,000,000      170,000,000

GRAND TOTAL/HIGHWAY TRUST FUND	$  557,700,000 $  579,400,000 

PART 4.  GENERAL PROVISIONS

SPECIAL FUNDS, FEDERAL FUNDS, AND DEPARTMENTAL RECEIPTS/AUTHORIZATION FOR EXPENDITURES
Sec. 6.  There is appropriated out of the cash balances, federal receipts, and departmental receipts available to each department, sufficient amounts to carry on authorized activities included under each department's operations.  All these cash balances, federal receipts, and departmental receipts shall be expended and reported in accordance with provisions of the Executive Budget Act, except as otherwise provided by statute.  The Director of the Budget shall develop necessary budget controls, regulations, and systems to ensure that these funds and other State funds subject to the Executive Budget Act are not spent in a manner that would cause a deficit in expenditures.
Pursuant to G.S. 143-34.2, State departments, agencies, institutions, boards, or commissions may make application for, receive, or disburse any form of non-State aid.  All non-State monies received shall be deposited with the State Treasurer unless otherwise provided by State law.  These funds shall be expended in accordance with the terms and conditions of the fund award that are not contrary to the laws of North Carolina.

INSURANCE AND FIDELITY BONDS
Sec. 7.  All insurance and all official fidelity and surety bonds authorized for the several departments, institutions, and agencies shall be effected and placed by the Insurance Department, and the cost of placement shall be paid by the affected department, institution, or agency with the approval of the Insurance Commissioner.

AUTHORIZED TRANSFERS
Sec. 8.  The Director of the Budget may transfer to General Fund budget codes from the General Fund Salary Adjustment Reserve appropriation, and may transfer to Highway Fund budget codes from the Highway Fund Salary Adjustment Reserve appropriation, amounts required to support approved salary adjustments made necessary by difficulties in recruiting and holding qualified employees in State government.

EXPENDITURES OF FUNDS IN RESERVES LIMITED
Sec. 9.  All funds appropriated by this act into reserves may be expended only for the purposes for which the reserves were established.
Sec. 10.  Each private, nonprofit entity eligible to receive State funds, either by General Assembly appropriation, or by grant, loan, or other allocation from a State agency, before funds may be disbursed to the entity, shall file with the disbursing agency an affidavit under oath of that entity's policy addressing conflicts of interest that may arise involving the entity's management employees and the members of its board of directors or other governing body.  The policy shall address situations where any of these individuals may directly or indirectly benefit, except for the entity's employees or members of the board or other governing body, from the entity's disbursing of State funds, and shall include actions to be taken by the entity or the individual, or both, to avoid conflicts of interest and the appearance of impropriety.

PART 5.  DEPARTMENT OF INSURANCE

PERCENTAGE RATE CALCULATING INSURANCE REGULATORY CHARGE
Sec. 11.  The percentage rate to be used in calculating the insurance regulatory charge under G.S. 58-6-25 is seven and twenty-five hundredths percent (7.25%) for the 1993 and the 1994 taxable year.

DISPOSITION OF FEES
Sec. 12.  The Commissioner of Insurance shall, from time to time as the balance of the fund in G.S. 58-6-25 attains levels sufficient to carry out the purposes in G.S. 58-6-25, transfer money from the Department of Insurance Fund to the General Fund to repay the money appropriated to the Department of Insurance from the General Fund beginning with the 1991-92 fiscal year and for each subsequent fiscal year of appropriation, plus accrued interest at a rate determined by the State Treasurer from the date the money is withdrawn from the General Fund.

PART 6.  PUBLIC SCHOOLS

ADVANCED TRAINING FOR FOREIGN LANGUAGE TEACHERS
Sec. 13.  Of the funds appropriated to the Department of Public Education for aid to local school administrative units, the State Board of Education may allocate to the Department of Public Instruction three hundred thousand dollars ($300,000) each year of the 1993-95 biennium for support expenses and workshops to provide intensive advanced training for teachers who teach foreign languages.

DIFFERENTIATED PAY
Sec. 14.  Funds equivalent to two percent (2%) of teacher and administrator salaries and related benefits are appropriated to the Department of Public Education in the 1993-94 fiscal year and continued in the 1994-95 fiscal year for local education agencies participating in Differentiated Pay programs.  These funds are to be paid as a bonus or supplement to the employee's regular salary.  Local education agencies participating in career development programs are eligible for funds at a seven percent (7%) level in the 1993-94 fiscal year and the 1994-95 fiscal year.

TEXTBOOKS
Sec. 15.  Funds are appropriated to the Department of Public Education to increase the textbook allocation from twenty-five dollars ($25.00) to twenty-eight dollars ($28.00) per student in average daily membership in grades 1-12.  Funds are also appropriated to provide a textbook allocation of twenty-eight dollars ($28.00) per student in average daily membership in kindergarten.

EXCEPTIONAL CHILDREN
Sec. 16.  Funds are appropriated to the Department of Public Education to remove the local education agency handicapped children cap and the academically gifted children cap but to maintain a statewide cap of twelve and five-tenths percent (12.5%) of average daily membership for the handicapped and three and nine-tenths percent (3.9%) of average daily membership for the academically gifted.

STAFF DEVELOPMENT FOR TEACHERS
Sec. 17.  Funds in the amount of ten million ninety thousand dollars ($10,090,000) for each year of the 1993-95 biennium are appropriated in Section 3 of this act to the Department of Public Education to allow public school teachers to take three days' leave each school year, while students are in regular attendance, to receive additional quality staff development.  These funds are to be used to hire certified substitute teachers for the three days and are to be allotted to local school units on the basis of rules and regulations adopted by the State Board of Education.

PART 7.  COMMUNITY COLLEGES

OPERATING APPROPRIATIONS/NOT USED FOR RECREATION EXTENSION
Sec. 18.  Funds appropriated in Section 3 of this act to the Department of Community Colleges as operating expenses for allocation to the institutions comprising the Community College System shall not be used to support recreation extension courses.  The financing of these courses by any institution shall be on a self-supporting basis, and membership hours produced from these activities may not be counted when computing full-time equivalent students for use in budget-funding formulas at the State level.

NEW AND EXPANDING INDUSTRY PROGRAM FUNDS
Sec. 19.  Notwithstanding any law to the contrary, the Department of Community Colleges may with approval of the Director of the Budget transfer available and uncommitted funds into the New and Expanded Industry Program, if it determines that there is a need to meet additional training needs over and above those currently budgeted.

TUITION/PUBLIC SCHOOL STUDENTS TAKING COMMUNITY COLLEGE COURSES
Sec. 20.  High school students enrolled in a community college in accordance with G.S. 115D-20(4) and G.S. 115D-5 shall be exempt from tuition for community college courses taken in accordance with these two sections.

WORKFORCE PREPAREDNESS/ENROLLMENT
Sec. 21.  Funds in the amount of sixteen million one hundred thousand dollars ($16,100,000) for fiscal year 1993-94 and forty-two million six hundred seventy-five thousand nine hundred fourteen dollars ($42,675,914) for fiscal year 1994-95 are appropriated in Section 3 of this act to the Department of Community Colleges, to implement so far as possible the goals of Workforce Preparedness.  The goals include increasing education and training opportunities for front-line workers and new entrants in the work force, seeking to ensure that programs relate efficiently to the changing skill demands of industry, providing basic skills to the underskilled through expanded and enhanced literacy programs, and providing the best faculty and support possible.  In order to accomplish these goals, funds are appropriated to make faculty salaries more competitive and lower faculty/student ratios, provide additional instructional support personnel, enhance the literacy funding formula, provide child care grants to the colleges, and increase educational equipment and library book funding.  Funds are also appropriated for a workforce competitiveness examination.

BOOKS AND EQUIPMENT APPROPRIATIONS/REVERT AFTER ONE YEAR
Sec. 22.  Appropriations to the Department of Community Colleges for equipment and library books are made for each year of the fiscal biennium.  All unencumbered appropriations shall revert to the General Fund 12 months after the close of each fiscal year for which they were appropriated.  Encumbered balances outstanding at the end of each period shall be handled in accordance with existing State budget policies.  The Department shall identify to the Office of State Budget and Management which appropriations will revert at the end of the 12 months after the close of each fiscal year.

PART 8.  COLLEGES AND UNIVERSITIES

AID TO PRIVATE COLLEGES/LEGISLATIVE TUITION GRANT LIMITATIONS
Sec. 23.  (a)	The amount of a tuition grant awarded to a student enrolled in a degree program at a site away from the main campus of the approved private institution, as defined in G.S. 116-22(1), shall be no more than the result of the ratio of the cost per credit hour for off-campus instruction at that site to the cost per credit hour for regular, full-time on-campus instruction, multiplied by the maximum grant award, or the maximum grant award allowable under Section 3 of this act, whichever is less.
(b)	No Legislative Tuition Grant funds shall be expended for a program at an off-campus site of a private institution, as defined in G.S. 116-22(1), established after May 15, 1987, unless (i) the private institution offering the program has previously notified and secured agreement from other private institutions operating degree programs in the county in which the off-campus program is located or operating in the counties adjacent to that county or (ii) the degree program is neither available nor planned in the county with the off-campus site or in the counties adjacent to that county.
An "off-campus program" is any program offered for degree credit away from the institution's main, permanent campus.
(c)	Any member of the armed services as defined in G.S. 116-143-3(a), abiding in this State incident to active military duty, who does not qualify as a resident for tuition purposes as defined under G.S. 116-143.1, is eligible for a Legislative Tuition Grant pursuant to this section if the member is enrolled as a full-time student.  The member's Legislative Tuition Grant shall not exceed the cost of tuition less any tuition assistance paid by the member's employer.

AID TO PRIVATE COLLEGES PROCEDURE
Sec. 24.  (a)	Funds appropriated in 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, and 116-22.  These funds shall provide up to four hundred fifty dollars ($450.00) per full-time equivalent North Carolina undergraduate student enrolled at a private institution as of October 1 each 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 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) 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 the 10th classroom day following the beginning of the school term for which the grant was paid, the institution shall refund the full amount of the grant to the State Education Assistance Authority.  Each approved institution shall be subject to examination by the State Auditor for the purpose of determining whether the institution has properly certified eligibility and enrollment of students and credited grants paid on the behalf of the students.
In the event there are not sufficient funds to provide each eligible student with a full grant:
(1)	The Board of Governors of The University of North Carolina, with the approval of the Office of State Budget and Management, may transfer available funds to meet the needs of the programs provided by subsections (a) and (b) of this section; and
(2)	Each eligible student shall receive a pro rata share of funds then available for the remainder of the academic year within the fiscal period covered by the current appropriation.
Any remaining funds shall revert to the General Fund.
(c)	Expenditures made pursuant to this section shall be used only for secular educational purposes at nonprofit institutions of higher learning.

WAKE FOREST AND DUKE MEDICAL SCHOOL ASSISTANCE/FUNDING FORMULA
Sec. 25.  Funds appropriated in this act to the Board of Governors of The University of North Carolina for continuation of financial assistance to the medical schools of Duke University and Wake Forest University shall be disbursed on certifications of the respective schools of medicine that show the number of North Carolina residents as first-year, second-year, third-year, and fourth-year students in the medical school as of November 1, 1993, and November 1, 1994.  Disbursement to Wake Forest University shall be made in the amount of eight thousand dollars ($8,000) for each medical student who is a North Carolina resident, one thousand dollars ($1,000) of which shall be placed by the school in a fund to be used to provide financial aid to  needy North Carolina students who are enrolled in the medical school.  The maximum aid given to any student from this fund in a given year may not exceed the amount of the difference in tuition and academic fees charged by the school and those charged at the School of Medicine at the University of North Carolina at Chapel Hill.
Disbursement to Duke University shall be made in the amount of five thousand dollars ($5,000) for each medical student who is a North Carolina resident, five hundred dollars ($500.00) of which shall be placed by the school in a fund to be used to provide student financial aid to financially needy North Carolina students who are enrolled in the medical school.  No individual student may be awarded assistance from this fund in excess of two thousand dollars ($2,000) each year.  In addition to this basic disbursement for each year of the biennium, a disbursement of one thousand dollars ($1,000) shall be made for each medical student who is a North Carolina resident in the first-year, second-year, third-year, and fourth-year classes to the extent that enrollment of each of those classes exceeds 30 North Carolina students.
The Board of Governors shall establish the criteria for determining the eligibility for financial aid of needy North Carolina students who are enrolled in the medical schools and shall review the grants or awards to eligible students.  The Board of Governors shall adopt rules for determining which students are residents of North Carolina for the purposes of these programs.  The Board shall also make any regulations as necessary to ensure that these funds are used directly for instruction in the medical programs of the schools and not for religious or other nonpublic purposes.  The Board shall encourage the two schools to orient students towards personal health care in North Carolina giving special emphasis to family and community medicine.

TEACHING HOSPITAL REIMBURSEMENT
Sec. 26.  Reimbursement to Pitt County Memorial Hospital for uncompensated care provided to non-Pitt County residents admitted by East Carolina Medical School faculty shall be limited to the unreimbursed portion of actual costs as determined in the Medicare Cost Report.

PART 9.  DEPARTMENT OF ADMINISTRATION

ALLOCATION OF RAPE CRISIS CENTER FUNDS
Sec. 27.  All funds for the Rape Crisis Centers appropriated to the Department of Administration, the North Carolina Council for Women, for the 1993-94 fiscal year and the 1994-95 fiscal year in this act shall be available to Rape Crisis Centers providing direct services to victims of sexual assault and rape prevention services.  Funds shall be awarded according to criteria established by the Department of Administration.  Grants shall be awarded by September 1 each fiscal year and the funds disbursed on a quarterly basis.

DOMESTIC VIOLENCE CENTER FUNDS
Sec. 28.  The funds appropriated in this act to the Department of Administration, the North Carolina Council for Women, for fiscal years 1993-94 and 1994-95 for domestic violence centers, shall be allocated equally among domestic violence centers in operation on July 1, 1992, that offered services including a hotline, transportation services, community education programs, daytime services, and call forwarding during the night, and that fulfill other criteria established by the Department of Administration.  Grants shall be awarded based on criteria established by the Department of Administration and disbursed on a quarterly basis.  The North Carolina Coalition Against Domestic Violence, Incorporated, is eligible for a grant of ten thousand dollars ($10,000) under this section.

PART 10.  OFFICE OF THE GOVERNOR

TRANSFERS FOR COMPUTERS
Sec. 29.  (a)	Notwithstanding any other provisions of State law, State departments may use funds from any source available to them and may transfer funds from other line items in their budgets to purchase additional data processing equipment and software.
(b)	This section does not apply to The University of North Carolina or its constituent institutions, the Department of Community Colleges, or the Department of Public Instruction.

RESERVE FOR IMPLEMENTATION OF FEDERAL OSHA REGULATIONS REGARDING BLOODBORNE PATHOGENS/USE OF FUNDS
Sec. 30.  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 clean-up 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.

COUNCIL OF GOVERNMENTS FUNDS
Sec. 31.  (a)	Of the funds appropriated in this act to the Office of State Planning, eight hundred ten thousand dollars ($810,000) for the 1993-94 fiscal year and eight hundred ten thousand dollars ($810,000) for the 1994-95 fiscal year shall only be used as provided by this section.  Each regional council of government or lead regional organization is allocated up to forty-five thousand dollars ($45,000) each fiscal year, with the actual amount calculated as provided in subsection (b) of this section.
(b)	These funds shall be allocated as follows:  A share of the maximum forty-five thousand dollars ($45,000) each fiscal year shall be allocated to each county and smaller city based on the most recent annual estimate of the Office of State Planning of the population of that county (less the population of any larger city within that county) or smaller city, divided by the sum of the total population of the region (less the population of larger cities within that region) and the total population of the region living in smaller cities.  Those funds shall be paid to the regional council of government for the region in which that city or county is located upon receipt by the Department of Administration of a resolution of the governing board of the county or city requesting release of the funds.  If any city or county does not so request payment of funds by June 30 of a State fiscal year, that share of the allocation for that fiscal year shall revert to the General Fund.
(c)	A regional council of government may use funds appropriated by this section only to assist local governments in grant applications, economic development, community development, support of local industrial development activities, and other activities as deemed appropriate by the member governments.
(d)	Funds appropriated by this section may not be used for payment of dues or assessments by the member governments, and may not supplant funds appropriated by the member governments.
(e)  As used in this section, "Larger City" means an incorporated city with a population of 50,000 or over.  "Smaller City" means any other incorporated city.

PART 11.  DEPARTMENT OF TRANSPORTATION

HIGHWAY FUND ALLOCATIONS BY CONTROLLER
Sec. 32.  The Controller of the Department of Transportation shall allocate at the beginning of each fiscal year from the various appropriations made to the Department of Transportation in this act, Titles:
State Construction
State Funds to Match Federal Highway Aid
State Maintenance
Ferry Operations,
sufficient funds to eliminate all overdrafts on State maintenance and construction projects, and these allocations may not be diverted to other purposes.

CASH FLOW HIGHWAY FUND AND HIGHWAY TRUST FUND APPROPRIATIONS
Sec. 33.  The General Assembly authorizes and certifies anticipated revenues of the Highway Fund as follows:
For Fiscal Year 1995-96	$969.3 Million
For Fiscal Year 1996-97	$979.4 Million
Sec. 34.  The General Assembly authorizes and certifies anticipated revenues of the Highway Trust Fund as follows:
For Fiscal Year 1995-96	$578.2 Million
For Fiscal Year 1996-97	$590.0 Million

HIGHWAY FUND LIMITATIONS ON OVEREXPENDITURES
Sec. 35.  (a)	Overexpenditures from Section 4 of this act may be made by authorization of the Director of the Budget, Titles:
State Construction Primary Construction
State Construction Urban Construction
State Construction Access and Public Service Roads
State Funds to Match Federal Highway Aid
State Maintenance
Ferry Operations,
provided that there are corresponding underexpenditures from these same Titles.  Overexpenditures or underexpenditures in any Titles may not vary by more than ten percent (10%) without prior consultation with the Advisory Budget Commission.  Written reports covering overexpenditures or underexpenditures of more than ten percent (10%) shall be made to the Joint Legislative Highway Oversight Committee.  The reports shall be delivered to the Director of the Fiscal Research Division not less than 96 hours prior to the beginning of the Commission's full meeting.
(b)	Overexpenditures from Section 4 of this act, Titles:
State Construction Primary Construction
State Construction Urban Construction
State Construction Access and Public Service Roads
State Funds to Match Federal Highway Aid
State Maintenance
Ferry Operations,
for the purpose of providing additional positions shall be approved by the Director of the Budget and shall be reported on a quarterly basis to the Joint Legislative Highway Oversight Committee and to the Fiscal Research Division.

RESURFACED ROADS MAY BE WIDENED
Sec. 36.  Of the contract maintenance resurfacing program funds appropriated in this act to the Department of Transportation, an amount not to exceed fifteen percent (15%) of the Board of Transportation's allocation of these funds may be used for widening existing narrow pavements that are scheduled for resurfacing.

SMALL URBAN CONSTRUCTION PROGRAM FUNDS
Sec. 37.  Of the funds appropriated in this act to the Department of Transportation, nine million twenty-eight thousand two hundred sixty-six dollars ($9,028,266) shall be allocated in each fiscal year for small urban construction projects.  Seven million dollars ($7,000,000) of these funds shall be allocated equally in each fiscal year of the biennium among the 14 Highway Divisions for the small Urban Construction program for small urban construction projects that are located within the area covered by a one-mile radius of the municipal corporate limits.  The remaining funds, two million twenty-eight thousand two hundred sixty-six dollars ($2,028,266) shall be used statewide for rural or small urban highway improvements as approved by the Secretary of the Department of Transportation.
None of these funds used for rural secondary road construction are subject to the county allocation formula as provided in G.S. 136-44.5.
The Department of Transportation shall report to the members of the General Assembly on projects funded pursuant to this section in each member's district prior to the Board of Transportation's action.  The Department shall make a quarterly comprehensive report on the use of these funds to the Joint Legislative Highway Oversight Committee and the Fiscal Research Division.

HIGHWAY FUND ADJUSTMENTS TO REFLECT ACTUAL REVENUE
Sec. 38.  Any unreserved credit balance in the Highway Fund on June 30 of each of the fiscal years of this biennium shall support appropriations in the succeeding fiscal year.  If all of the balance is not needed for these appropriations, the Director of the Budget may use the remaining excess to establish a reserve for access and public roads, a reserve for unforeseen happening of a state of affairs requiring prompt action as provided by G.S.136-44.1, and other required reserves.  If all of the remaining excess is not used to establish these reserves, the remainder shall be allocated to the State-funded maintenance appropriations in the manner approved by the Board of Transportation.  The Board of Transportation shall report monthly to the Joint Legislative Highway Oversight Committee and the Fiscal Research Division about the use of the reserve for highway and maintenance.

AIR CARGO AIRPORT AUTHORITY MARKETING FUNDS TRANSFER
Sec. 39.  Of the funds appropriated in this act for the North Carolina Air Cargo Airport Authority, the sum of five hundred thousand dollars ($500,000) shall be transferred by July 15, 1993, and July 15, 1994, to the Department of Commerce for marketing of the Global Transpark including two positions, operating support, and advertising funds.

PART 12.  DEPARTMENT OF HUMAN RESOURCES

WILLIE M.
Sec. 40.  (a)	Legislative Findings.  The General Assembly finds:
(1)	That there is a need in North Carolina to provide appropriate treatment and education programs to children under the age of 18 who suffer from emotional, mental, or neurological handicaps accompanied by violent or assaultive behavior.
(2)	That children meeting these criteria have been identified as a class in the case of Willie M., et al. v. Hunt, et al.; and
(3)	That these children have a need for a variety of services, in addition to those normally provided, that may include, but are not limited to, residential treatment services, educational services, and independent living arrangements.
(b)	Funds appropriated by the General Assembly to the Department of Human Resources for serving members of the Willie M. Class shall be expended only for programs serving members of the Willie M. Class identified in Willie M., et al. v. Hunt, et al., including evaluations of potential class members.  The Department shall reallocate these funds among services to Willie M. Class members during the year as it deems advisable in order to use the funds efficiently in providing appropriate services to Willie M. Class children.
(c)	Funds for Department of Public Education.  Funds appropriated to the Department of Public Education in this act for members of the Willie M. Class, are to establish a supplemental reserve fund to serve only members of the Class identified in Willie M., et al. v. Hunt, et al.  These funds shall be allocated by the State Board of Education to the local education agencies to serve those class members who were not included in the regular average daily membership and the census of children with special needs, and to provide the additional program costs which exceed the per pupil allocation from the State Public School Fund and other State and federal funds for children with special needs.
(d)	The Department of Human Resources shall continue to implement its 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, and based upon these reviews and comparisons, the Department shall reduce and/or cap rates to programs which are significantly higher than those rates paid to other programs for the same service.
Any exception to this requirement shall be approved by the Director of the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, and shall be reported in the Department's annual joint report to the Governor and the General Assembly and in any periodic report the Department may make to the Joint Legislative Commission on Governmental Operations.
(d1)  The Department of Human Resources shall implement a process to review those cases for whom treatment has been recommended whose annual cost is anticipated to be in excess of one hundred fifty percent (150%) of the average annual per client expenditure of the previous fiscal year and shall take actions to reduce these treatment costs where appropriate.
(e)  Reporting Requirements.  The Department of Human Resources and the Department of Public Education shall submit, by May 1 of each fiscal year, a joint report to the Governor and the General Assembly on the progress achieved in serving members of the Willie M. Class.  The report shall include the following unduplicated data for each area program:  (i) the number of children nominated for the Willie M. Class; (ii) the number of children actually identified as members of the Class in each area program; (iii) the number of children served as members of the Class in each area program; (iv) the number of children who remain unserved or for whom additional services are needed in order to be determined to be appropriately served; (v) the types and locations of treatment and education services provided to Class members; (vi) the cost of services, by type, to members of the Class and the maximum and minimum rates paid to providers for each service; (vii) the number of cases whose treatment costs were in excess of one hundred fifty percent (150%) of the average annual per client expenditure; (viii) information on the impact of treatment and education services on members of the Class; (ix) an explanation of, and justification for, any waiver of departmental rules that affect the Willie M. program; and (x) the total State funds expended, by program, on Willie M. Class members, other than those funds specifically appropriated for the Willie M. programs and services.
(e1)  From existing funds available to it, the Department of Human Resources shall document and assess individual class member's progress through the continuum of services, and provide annual reports on the results of these efforts to the General Assembly.
(f)  The Departments of Human Resources and Public Education shall provide periodic reports of expenditures and program effectiveness on behalf of the Willie M. Class to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division.  As part of these reports, the Departments shall explain measures they have taken to control and reduce program expenditures.
(g)  In fulfilling the responsibilities vested in it by the Constitution of North Carolina, the General Assembly finds:
(1)	That the General Assembly has evaluated the known needs of the State and has endeavored to satisfy those needs in comparison to their social and economic priorities; and
(2)	That the funds appropriated will enable the development and implementation of placement and services for the class members in Willie M., et al. v. Hunt, et al., within a reasonable period of time considered within the context of the needs of the class members, the other needs of the State and the resources available to the State.
(h)  The General Assembly supports the efforts of the responsible officials and agencies of the State to meet the requirements of the court order in Willie M., et al. v. Hunt, et al.  To ensure that Willie M. Class members are appropriately served, no State funds shall be expended on placement and services for Willie M. Class members except:
(1)	Funds specifically appropriated by the General Assembly for the placement and services of Willie M. Class members; and
(2)	Funds for placement and services for which Willie M. Class members are otherwise eligible.
This limitation shall not preclude the use of unexpended Willie M. funds from prior fiscal years to cover current or future needs of the Willie M. program subject to approval by the Director of the Budget.  These Willie M. expenditures shall not be subject to the requirements of G.S. 143-18.
(i)  Notwithstanding any other provision of law, if the Department of Human Resources determines that a local program is not providing appropriate services to members of the class identified in Willie M., et al. v. Hunt, et al., the Department may ensure the provision of these services through contracts with public or private agencies or by direct operation by the Department of such programs.

THOMAS S.
Sec. 41.  (a)	Funds appropriated to the Department of Human Resources in this act for services to 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 likely to become class members.  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.
(b)	The Department of Human Resources shall provide periodic reports of funds expended and services performed on behalf of members of the Thomas S. Class and on behalf of those clients who are likely to become class members to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office.
(c)	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, the Department may ensure the provision of these services through contracts with public or private agencies or by direct operation by the Department of such programs.

MIXED BEVERAGE TAX FOR AREA MENTAL HEALTH PROGRAMS
Sec. 42.  Funds received by the Department of Human Resources from the tax levied on mixed beverages under G.S. 18B-804(b)(8) shall be expended by the Department of Human Resources as prescribed by G.S. 18B-805(h).  These funds shall be allocated to the area mental health programs for substance abuse services on a per capita basis as determined by the Office of State Budget and Management's most recent estimates of county populations.

SPECIALIZED RESIDENTIAL CENTERS' BED CONVERSION
Sec. 43.  Funds made available as a result of the conversion of State supported beds in specialized residential centers to ICF/MR beds shall be used to increase the State subsidy provided to centers.  Funds made available to centers by this section shall be used, as they become available, to increase the subsidy rate to sixty-five percent (65%) of the statewide average cost of providing this service based on the most recent Specialized Community Residential Cost Study.
Funds made available in addition to those needed to increase the subsidy rate may be transferred to the Department of Human Resources, Division of Medical Assistance as needed to be used as a State match for the converted ICF/MR beds.

ICF AND ICF/MR WORK INCENTIVE ALLOWANCES
Sec. 44.  The Department of Human Resources may provide an incentive allowance to Medicaid eligible recipients of ICF and ICF/MR facilities who are regularly engaged in work activities as part of their developmental plan and for whom retention of additional income contributes to their achievement of independence.  The State funds required to match the federal funds that are required by these allowances shall be provided from savings within the Medicaid budget or from other unbudgeted funds available to the Department.  The incentive allowances may be as follows:

Monthly Net Wages	Monthly Incentive Allowance

$1.00 to $100.99	Up to $50.00
$101.00 to $200.99	$80.00
$201.00 to $300.99	$130.00
$301.00 and greater	$212.00.

DEVELOPMENTAL DAY CENTERS' GRANT-IN-AID
Sec. 45.  Of the funds appropriated 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 each year of the 1993-95 biennium shall be certified 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.

EXPANSION OF THE TARGET POPULATION FOR TASC SERVICES
Sec. 46.  Treatment Alternatives to Street Crimes (TASC) services may include mentally ill offenders as well as substance abusing offenders.

EARLY EDUCATION/HANDICAPPED/FUNDS
Sec. 47.  The Department of Human Resources shall ensure that all types of early intervention services referenced in G.S. 122C-3(13a), and any other such services the Secretary of Human Resources, in cooperation with the other appropriate agencies and upon the advice of the Interagency Coordinating Council for Handicapped Children from Birth to Five Years of Age, considers necessary, shall be available to all eligible infants and toddlers and their families, as defined in G.S. 122C-3(13a)

PHYSICIAN SERVICES
Sec. 48.  With the approval of the Office of State Budget and Management, the Department of Human Resources may use funds appropriated in this act for across-the-board salary increases and performance pay to offset similar increases in the costs of contracting with private and independent universities for the provision of physician services to clients in facilities operated by the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services.  This offsetting shall be done in the same manner as is currently done with constituent institutions of The University of North Carolina.

MEDICAID
Sec. 49.  (a)	Funds appropriated in this title for services provided in accordance with Title XIX of the Social Security Act (Medicaid) are for both the categorically needy and the medically needy.  Funds appropriated for these services shall be expended in accordance with the following schedule of services and payment bases.  All services and payments are subject to the language at the end of this subsection.
Services and payment bases:
(1)	Hospital-Inpatient - Payment for hospital inpatient services will be prescribed in the State Plan as established by the Department of Human Resources.  Administrative days for any period of hospitalization shall be limited to a maximum of three days.
(2)	Hospital-Outpatient - Eighty percent (80%) of allowable costs or a prospective reimbursement plan as established by the Department of Human Resources.
(3)	Nursing Facilities - Payment for nursing facility services will be prescribed in the State Plan as established by the Department of Human Resources.  Nursing facilities providing services to Medicaid recipients who also qualify for Medicare, must be enrolled in the Medicare program as a condition of participation in the Medicaid program.  State facilities are not subject to the requirement to enroll in the Medicare program.
(4)	Intermediate Care Facilities for the Mentally Retarded - As prescribed in the State Plan as established by the Department of Human Resources.
(5)	Drugs - Drug costs as allowed by federal regulations plus a professional services fee per month excluding refills for the same drug or generic equivalent during the same month.  Reimbursement shall be available for up to six prescriptions per recipient, per month, including refills.  Payments for drugs are subject to the provisions of subsection (f) of this section and to the provisions at the end of subsection (a) of this section, or in accordance with the State Plan adopted by the Department of Human Resources consistent with federal reimbursement regulations.  Payment of the professional services fee shall be made in accordance with the plan adopted by the Department of Human Resources, consistent with federal reimbursement regulations.  Adjustments to the professional services fee shall be established by the General Assembly.
(6)	Physicians, Chiropractors, Podiatrists, Optometrists, Dentists, Certified Nurse Midwife Services - Fee schedules as developed by the Department of Human Resources.  Payments for dental services are subject to the provisions of subsection (e) of this section.
(7)	Community Alternative Program, EPSDT Screens - Payment to be made in accordance with rate schedule developed by the Department of Human Resources.
(8)	Home Health and Related Services, Private Duty Nursing, Clinic Services, Prepaid Health Plans, Durable Medical Equipment - Payment to be made according to reimbursement plans developed by the Department of Human Resources.
(9)	Medicare Buy-In - Social Security Administration premium.
(10)	Ambulance Services - Uniform fee schedules as developed by the Department of Human Resources.
(11)	Hearing Aids - Actual cost plus a dispensing fee.
(12)	Rural Health Clinic Services - Provider based - reasonable cost; nonprovider based - single cost reimbursement rate per clinic visit.
(13)	Family Planning - Negotiated rate for local health departments.  For other providers - see specific services, for instance, hospitals, physicians.
(14)	Independent Laboratory and X-Ray Services - Uniform fee schedules as developed by the Department of Human Resources.
(15)	Optical Supplies - One hundred percent (100%) of reasonable wholesale cost of materials.
(16)	Ambulatory Surgical Centers - Payment as prescribed in the reimbursement plan established by the Department of Human Resources.
(17)	Medicare Crossover Claims - An amount up to the actual coinsurance or deductible or both, in accordance with the plan, as approved by the Department of Human Resources.
(18)	Physical Therapy and Speech Therapy - Services limited to EPSDT eligible children.  Payments are to be made only to the Children's Special Health Services program at rates negotiated by the Department of Human Resources.
(19)	Personal Care Services - Payment in accordance with plan approved by the Department of Human Resources.
(20)	Case Management Services - Reimbursement in accordance with the availability of funds to be transferred within the Department of Human Resources.
(21)	Hospice – Services may be provided in accordance with a plan developed by the Department of Human Resources.
(22)	Other Mental Health Services – Unless otherwise covered by this section, coverage is limited to agencies meeting the requirements of the rules established by the Commission for Mental Health, Developmental Disabilities, and Substance Abuse Services, and reimbursement is made in accordance with a plan developed by the Department of Human Resources not to exceed the upper limits established in federal regulations.
(23)	Medically Necessary Prosthetics or Orthotics for EPSDT Eligible Children – Reimbursement in accordance with plan approved by the Department of Human Resources.
(24)	Health Insurance Premiums – Payments to be made in accordance with the plan adopted by the Department of Human Resources consistent with federal regulations.
(25)	Medical Care/Other Remedial Care – Services not covered elsewhere in this section include related services in schools; health professional services provided outside the clinic setting to meet maternal and infant health goals; and services to meet federal EPSDT mandates.  Services addressed by this paragraph are limited to those prescribed in the State Plan as established by the Department of Human Resources.  Providers of these services must be certified as meeting program standards of the Department of Environment, Health, and Natural Resources.
Services and payment bases may be changed with the approval of the Director of the Budget.
Reimbursement is available for up to 24 visits per recipient per year to any one or combination of the following:  physicians, clinics, hospital outpatients, optometrists, chiropractors, and podiatrists.  Prenatal services, all EPSDT children, and emergency rooms are exempt from the visit limitations contained in this paragraph.  Exceptions may be authorized by the Department of Human Resources where the life of the patient would be threatened without such additional care.  Any person who is determined by the Department to be exempt from the 24-hour visit limitation may also be exempt from the six-prescription limitation.
(b)	Allocation of Nonfederal Cost of Medicaid.  The State shall pay eighty-five percent (85%); the county shall pay fifteen percent (15%) of the nonfederal costs of all applicable services listed in this section.
(c)	Copayment for Medicaid Services.  The Department of Human Resources may establish a copayment up to the maximum permitted by federal law and regulation.
(d)	Medicaid and Aid to Families with Dependent Children Income Eligibility Standards.  The maximum net family annual income eligibility standards for Medicaid and Aid to Families with Dependent Children, and the Standard of Need for Aid to Families with Dependent Children shall be as follows:
Categorically Needy	Medically Needy
Family 	Standard	AFDC Payment
 Size	Of Need	   Level*	AA,AB,AD*

1	$ 4,344	$ 2,172	$ 2,900
2	5,664	2,832	3,800
3	6,528	3,264	4,400
4	7,128	3,564	4,800
5	7,776	3,888	5,200
6	8,376	4,188	5,600
7	8,952	4,476	6,000
8	9,256	4,680	6,300
*Aid to Families with Dependent Children (AFDC); Aid the Aged (AA); Aid to the Blind (AB); and Aid to the Disabled (AD).
The payment level for Aid to Families with Dependent children shall be fifty percent (50%) of the standard of need.
These standards may be changed with the approval of the Director of the Budget with the advice of the Advisory Budget Commission.
(e)  Dental Coverage Limits.  Dental services shall be provided on a restricted basis in accordance with rules adopted by the Department to implement this subsection.
(f)  Dispensing of Generic Drugs.  Notwithstanding G.S. 90-85.27 through G.S. 90-85.31, under the Medical Assistance Program (Title XIX of the Social Security Act), a prescription order for a drug designated by a trade or brand name shall be considered to be an order for the drug by its established or generic name, except when the presciber personally indicates, either orally or in his own handwriting on the prescription order, "dispense as written" or words of similar meaning.  Generic drugs, when available in the pharmacy, shall be dispensed at a lower cost to the Medical Assistance Program rather than trade or brand name drugs, subject to the presciber's "dispense as written" order as noted above.
As used in this subsection, "brand name" means the proprietary name the manufacturer places upon a drug product or on its container, label, or wrapping at the time of packaging; and "established name" has the same meaning as in section 502(e)(3) of the Federal Food, Drug and Cosmetic Act as amended, 21 U.S.C. § 352(e)(3).
(g)  Exceptions to Service Limitations, Eligibility Requirements, and Payments.  Service limitations, eligibility requirements, and payments, and payments bases in this section may be waived by the Department of Human Resources, with the approval of the Director of the Budget, to allow the Department to carry out pilot programs for prepaid health plans, managed care plans, or community-based services programs in accordance with plans approved by the United States Department of Health and Human Services, or when the Department determines that such a waiver will result in a reduction in the total Medicaid costs for the recipient.
(h)  Volume Purchase Plans and Single Source Procurement.  The Department of Human Resources, Division of Medical Assistance, may, subject to the approval of a change in the State Medicaid Plan, contract for services, medical equipment, supplies, and appliances by implementation of volume purchase plans, single-source procurement or other similar processes in order to improve cost containment.
(i)  Cost Containment Programs.  The Department of Human Resources, Division of Medical Assistance, may undertake cost containment programs including preadmissions to hospitals and prior approval for certain outpatient surgeries before they may be performed in an inpatient setting.
(j)  For all Medicaid eligibility classifications for which the federal poverty level is used as an income limit for eligibility determination, the income limits will be updated each April 1 immediately following publication of federal poverty guidelines.
(k)  The Department of Human Resources shall provide Medicaid to 19-, 20-, and 21-year-olds in accordance with federal rules and regulations.
(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 one with family 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.
(3)	Children aged one through five 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 six through 18 who were born after September 30, 1983, with family incomes equal to the federal poverty guidelines as revised each April 1 shall be covered for Medicaid benefits.  Services to pregnant women eligible under this section continue throughout the pregnancy but include only those related to pregnancy and to those other conditions determined by the department as conditions that may complicate pregnancy.  In order to reduce county administrative costs and to expedite the provision of medical services to pregnant women, to infants, and to children eligible under this section, no resources test shall be applied.
(m)  The Department of Human Resources may use Medicaid funds budgeted from program services to support the cost of administrative activities to the extent that these administrative activities produce a net savings in services requirements.  Administrative initiatives funded by this section shall be first approved by the Office of State Budget and Management.

NON-MEDICAID REIMBURSEMENT
Sec. 50.  Providers of medical services under the various State programs, other than Medicaid, offering medical care to citizens of the State shall be reimbursed at rates no more than those under the North Carolina Medical Assistance Program.
The Department of Human Resources may reimburse hospitals at the full prospective per diem rates without regard to the Medical Assistance Program's annual limits on hospital days.  When the Medical Assistance Program's per diem rates for inpatient services and its interim rates for outpatient services are used to reimburse providers in non-Medicaid medical service programs, retroactive adjustments to claims already paid shall not be required.
Notwithstanding the provisions of paragraph one of this section, the Department of Human Resources may negotiate with providers of medical services under the various DHR programs, other than Medicaid, for rates as close as possible to Medicaid rates for the following purposes:  contracts or agreements for medical services and purchases of medical equipment and other medical supplies.  These negotiated rates are allowable only to meet the medical needs of its non-Medicaid eligible patients, residents, and clients who require such services which cannot be provided when limited to the Medicaid rate.
Maximum net family annual income eligibility standards for services in these programs with the exception of Migrant Health, School Health, AIDS Drug Reimbursement Program, diagnostic assessment for infants with sickle cell syndrome, and Home Health shall be as follows:
Family	Medical Eye	    All
 Size	Care Adults	Rehabilitation	Other

1	$4,860	$8,364	$ 4,200
2	5,940	10,944	5,300
3	6,204	13,500	6,400
4	7,284	16,092	7,500
5	7,824	18,648	7,900
6	8,220	21,228	8,300
7	8,772	21,708	8,800
8	9,312	22,220	9,300
The eligibility level for children in the Medical Eye Care Program in the Division of Services for the Blind and for adults in the Clozapil program in the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services shall be one hundred percent (100%) of the federal poverty guidelines, as revised annually by the United States Department of Health and Human Services and in effect on July 1 of each fiscal year.
The Department of Human Resources shall contract at, or as close as possible to, Medicaid rates for medical services provided to residents of State facilities of the Department.

PURCHASE TRANSPORTATION SERVICES FOR PREGNANT WOMEN AND FOR CHILDREN ON MEDICAID
Sec. 51.  (a)	Of the funds appropriated from the General Fund to the Department of Human Resources, Division of Medical Assistance, in this act, three hundred thousand dollars ($300,000) for the 1993-94 fiscal year and three hundred thousand dollars ($300,000) for the 1994-95 fiscal year shall be transferred to the Department of Transportation, Public Transportation Division, to purchase transportation services for pregnant women and for children on Medicaid.  All funds distributed by the Department, under this section, to counties are intended to purchase additional transportation for that purpose.  These funds shall not be used towards the purchase of transportation vehicles or equipment and shall not be used to cover State administrative costs.  Only those counties maintaining Medicaid transportation services to pregnant women and to children at a level that is not reduced from the level of services in place during the 1989-90 fiscal year shall be eligible for additional transportation assistance funds.
(b)	The Public Transportation Division of the Department of Transportation shall distribute these funds to the counties according to the following formula:
(1)	Fifty percent (50%) divided equally among all eligible counties;
(2)	Forty-five percent (45%) on the basis of the number of pregnant women and of children receiving Medicaid in the county as a percentage of the total number of pregnant women and of children receiving Medicaid statewide; and
(3)	Five percent (5%) based upon a population density factor that recognizes the higher transportation costs in sparsely populated counties.
The Department of Transportation shall develop appropriate procedures for the distribution and use of these funds and shall adopt rules to implement these procedures.
(c)	Funds distributed by the Department of Transportation under this section shall be used by counties in a manner consistent with implemented transportation development plans which have been approved by the Department of Transportation and the board of county commissioners.  To receive funds apportioned for a given fiscal year, a county shall have an approved transportation plan.  Funds that are not obligated in a given fiscal year due to the lack of an approved transportation plan shall be distributed to the eligible counties based on the distribution formula in subsection (b) of this section.

REDUCE INFANT MORTALITY
Sec. 52.  The Department of Human Resources, Division of Medical Assistance, shall provide medical coverage for nutritional counselling, psycho-social counselling, and predelivery and postpartum home visits by maternity care coordinators and public health nurses, for Medicaid-eligible pregnant women.

RETROSPECTIVE ACCOUNTING ADJUSTMENT
Sec. 53.  The Department of Human Resources shall use funds appropriated to it by this act to provide a State supplementary payment to Aid to Families with Dependent Children households adversely affected by the retrospective accounting procedure as allowed under section 403(a) of the Social Security Act as amended by section 157(a) of the Tax Equity and Fiscal Responsibility Act of 1982.  The amount of the State supplement shall not exceed the maximum payment standard for the Aid to Families with Dependent Children Program.

AFDC/WOMEN IN THIRD TRIMESTER OF PREGNANCY ADJUSTMENT
Sec. 54.  The Division of Social Services, Department of Human Resources, shall provide Aid to Families with Dependent Children to women in their third trimester of pregnancy regardless of whether these women have children, if they otherwise qualify for these payments.

ADOPTION SUBSIDY
Sec. 55.  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 dollars ($200.00) per child per month.

FOSTER CARE
Sec. 56.  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.

EMERGENCY ASSISTANCE
Sec. 57.  The Division of Social Services, Department of Human Resources, shall not expend more State funds than are appropriated for Emergency Assistance by this act.  Within this limit, Emergency Assistance 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 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 pursuant to this section.
It is the intent of the General Assembly that these Emergency Assistance funds 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 shall apply prudent judgment to evaluate each emergency on its own merits.  Prudent judgment will permit departments of social services to consider whether the client created the emergency and whether the assistance will resolve the emergency.

FOOD STAMP OUTREACH
Sec. 58.  The Department of Human Resources shall continue a Food Stamp Outreach Program.  Under the Program, the Department shall inform public and private agencies, community groups, potentially eligible persons, and the general public regarding the eligibility requirements of the Food Stamp Program.  The Department shall maintain a referral list of public and private agencies, community groups, and interested persons and organizations who serve low-income persons.  The Department shall inform these agencies and persons regarding the Food Stamp Program and changes in the law that affect client eligibility or the extent of benefits.  The Department shall develop and distribute informational materials, such as public service announcements, brochures, pamphlets, posters, and correspondence.

CHILD PROTECTIVE SERVICES FUNDS
Sec. 59.  (a) Of the funds appropriated to the Department of Human Resources, Division of Social Services for Child Protective Services in this act, the Division shall use up to one hundred seventy-five thousand nine hundred dollars ($175,900) in each fiscal year of the 1993-95 biennium to provide consultation and technical assistance to county departments of social services to strengthen and support local child protective services.  The remaining funds shall be allocated to the county departments of social services as follows:
(1)	$10,000 for the 1993-94 fiscal year and $10,000 for the 1994-95 fiscal year shall be allocated to each of the 15 county departments that did not receive an allocation of the 1985 State appropriation for child protective services;
(2)	In addition, each of the 100 county departments shall receive an allocation of ten thousand dollars ($10,000) for the 1993-94 fiscal year and ten thousand dollars ($10,000) for the 1994-95 fiscal year;
(3)	The balance of available funds shall be allocated to each county department based upon the percentage that the total number of abuse and neglect reports within that county represents to the statewide total number of abuse and neglect reports.  These percentages shall be computed from the reports received by the Central Registry of Abuse and Neglect cases for the last two fiscal years.
(b)	Funds allocated to county departments of social services pursuant to this section shall be used for staff carrying out investigations of reports of child abuse or neglect or providing protective or preventive services in cases in which the department confirms neglect, abuse, or dependency.  If a county department demonstrates that it has adequate protective services staff, these funds may be used to purchase or provide treatment and other support services to children and their families in confirmed cases.  All expenditures shall be directly in support of the departments' program of protective services for children.  These funds shall not be used to supplant any Social Services Block Grant funds or county appropriations previously budgeted for protective services for children.
(c)	The Department of Human Resources, Division of Social Services, shall establish criteria and guidelines to assure that the allocations to county departments of social services are used in accordance with the intent and purposes of this section.

SOCIAL SERVICES PLAN/FAMILY PRESERVATION SERVICES
Sec. 60.  (a)	Of the funds appropriated to the Department of Human Resources, Division of Social Services, in this act for the 1993-95 biennium, the sum of four hundred ten thousand dollars ($410,000) in each fiscal year shall be used to enable the Department to develop further the Social Services Plan, in consultation and cooperation with other appropriate agencies and organizations and consistent with the policies as provided by Chapter 448 of the 1989 Session Laws.
As part of the further development of the Social Services Plan, the Department of Human Resources shall pilot in three to five counties the core services as described in its report on the Social Services Plan to the General Assembly.  The piloting shall include the establishment of minimum standards for the provision of the core services, including the staffing standards, caseload standards, training standards, and facilities standards.
In implementing Family Centered Services as a core service, the Secretary of the Department of Human Resources shall consider the advice and recommendations of the Advisory Committee on Family Centered Services.
These funds may be used as a match for federal funds that may be available in order to maximize support for the pilot.  Funds appropriated by the General Assembly to be allocated to counties for child protective services shall be used by the pilot counties to strengthen investigations and treatment in Child Protective Services as a core service.  Any funds allocated to counties pursuant to this subsection shall be matched by the counties at the rate of one county dollar for every three State dollars.
(b)	Of the funds appropriated to the Department of Human Resources, Division of Social Services, the sum of fifty thousand dollars ($50,000) for each year of the biennium shall be used to make grants to public or private agencies to develop and implement model programs of locally based Family Preservation Services as provided in Part 4A of Article 3 of Chapter 143B of the General Statutes, Family Preservation Act.  These funds shall be used in conjunction with funds identified within the Department to implment the Family Preservation Services Program as provided in this section.  The Secretary of the Department of Human Resources shall ensure that the development of these Family Preservation Models and the piloting of the core social services described in subsection (a) of this section are coordinated at State and local levels to achieve the most effective service delivery for families and use of available funding sources.

DOMICILIARY CARE REIMBURSEMENT RATE
Sec. 61. Effective July 1, 1993, in accordance with inflationary increases for locally operated programs, required by G.S. 143-10.1A to be consistent with inflationary increases allowed in State agency budgets, the maximum monthly rates for residents in domiciliary care facilities shall be set at eight hundred ninety-six dollars ($896.00) for ambulatory and nine hundred thirty-five dollars ($935.00) for semiambulatory residents, and, effective July 1, 1994, nine hundred three dollars ($903.00) for ambulatory and nine hundred forty-two dollars ($942.00) for semiambulatory residents.

SENIOR CENTER OUTREACH
Sec. 62.  (a)	Of the funds appropriated to the Department of Human Resources, Division of Aging, in this act for the 1993-95 fiscal biennium, four hundred three thousand eight hundred dollars ($403,800) for the 1993-94 fiscal year and four hundred three thousand eight hundred dollars ($403,800) for the 1994-95 fiscal year shall be used by the Division of Aging to enhance senior center programs as follows:
(1)	To test "satellite" services provided by existing senior centers to unserved or underserved areas; or
(2)	To provide start-up funds for new senior centers.
All of these funds shall be allocated by October 1 of each fiscal year.
(b)	Prior to funds being allocated pursuant to this section for start-up funds for a new senior center, the county commissioners of the county in which the new center will be located shall:
(1)	Formally endorse the need for such a center;
(2)	Formally agree on the sponsoring agency for the center; and
(3)	Make a formal commitment to use local funds to support the ongoing operation of the center.
(c)	State funding shall not exceed ninety percent (90%) of reimbursable costs.

CHILD PROTECTIVE SERVICES NONSUPPLANT REQUIREMENT
Sec. 63.  The Department of Human Resources, Division of Social Services, shall ensure that local county departments of social services do not reduce federal fund disbursements or county appropriations for child protective services because they have received State appropriations for that purpose.

COUNTY PROTECTIVE SERVICES ALLOCATION
Sec. 64.  Of the funds appropriated to the Department of Human Resources, Division of Social Services, in this act, seven million dollars ($7,000,000) for each year of the 1993-95 biennium shall be allocated to county departments of social services according to the following formula:
(1)	All county departments shall receive a base allocation of ten thousand dollars ($10,000) for each year of the 1993-95 biennium.
(2)	The balance of the funds each year of the fiscal biennium shall be allocated to each county department based upon the percentage of the number of child abuse and neglect reports in that county compared to the total number of reports of child abuse and neglect statewide.  These percentages shall be computed from the reports received by the Division of Social Services' Central Registry of Abuse and Neglect for the last two fiscal years.
Funds allocated to county departments of social services pursuant to this subsection shall be used to provide additional staff to carry out investigations of reports of child abuse or neglect or to provide protective or preventive services in cases in which the department confirms neglect, abuse, or dependency.  However, if a county demonstrates to the Division of Social Services that it has adequate protective services staff, that county department may use these allocated funds to purchase or provide treatment or other support services to children and their families in confirmed cases of child abuse, neglect, or dependency.  All expenditures made by any county department of social services from funds allocated pursuant to this subsection shall be in direct support of the department's program of protective services for children.  These funds shall not be used to supplant any Social Services Block Grant funds or county appropriations budgeted for protective services for children.
The Department of Human Resources, Division of Social Services, shall establish guidelines and criteria to assure that the allocations to county departments of social services pursuant to this subsection are used in accordance with the intent and purpose of this subsection.

CHILD SUPPORT FUNDS
Sec. 65.  (a)	Notwithstanding G.S. 114-2.1, the State may enter into a consent judgment in the case of Cassell, et al. v. Flaherty, et al., C-C-90-0010-M, United States District Court for the Western District of North Carolina, Charlotte Division.
(b)	The consent judgment authorized under subsection (a) of this section is subject to G.S. 114-2.2.
(c)	In the event a consent agreement is reached, funds appropriated to enable the Child Support Enforcement Section, Division of Social Services, Department of Human Resources to distribute child support collections based upon the date the payment is withheld from an obligor's disposable income may be used to implement that consent judgment.  Implementation costs may include:
(1)	Quarterly notices to clients;
(2)	Toll-free telephone number;
(3)	Four Account Technician II positions;
(4)	System enhancements; and
(5)	Court-ordered costs.
(d)	The Office of State Budget and Management and the Department of Human Resources shall report not later than May 1, 1993, and annually thereafter, or more frequently upon request, to the Governor, the Joint Legislative Commission on Governmental Operations, and the Fiscal Research Division on the expenditures and progress on achieving necessary improvements in the distribution of child support collections.
(e)  Funds appropriated to the Department of Human Resources in this act for covering expenses incurred as a result of the Cassell, et al. v. Flaherty, et al. lawsuit shall be deposited in a nonreverting fund account in the Department of Human Resources, Division of Social Services, that the Department shall establish for this purpose.  Any unexpended and unencumbered funds remaining in the nonreverting account on July 1, 1995, shall revert to the General Fund on that date.

FAMILY SUPPORT ACT
Sec. 66.  (a)	The General Assembly finds that it is in the best interest of the State and of all its citizens to encourage recipients of Aid to Families with Dependent Children to obtain jobs and become self-sufficient.  It further finds that, by continuing medical assistance and providing limited wage assistance to those recipients who are working, the State will make it possible to help many recipients to be able to keep their jobs, support their families, and become self-sufficient.
(b)	The Social Services Commission shall adopt rules to change the way it budgets Aid to Families with Dependent Children payments that will result in more recipients being able to find work and keep working.  These rules shall include subtracting countable income from the State standard of need, and paying a percentage of the difference.  The percentage that shall be applied to determine the amount of assistance shall be the same percentage set in the Current Operations Appropriations Act that determine the Aid to Families of Dependent Children payment level from the standard of need.

CAREGIVER SUPPORT SHARING
Sec. 67.  (a)	Of the funds appropriated to the Division of Aging, Department of Human Resources, by this act for the 1993-95 fiscal biennium, the sum of one million eight thousand dollars ($1,008,000) for the 1993-94 fiscal year and the sum of one million eight thousand dollars ($1,008,000) for the 1994-95 fiscal year shall be used for services that support family caregivers of elderly persons with functional disabilities, whether physical or mental, who want to stay in their homes rather than be institutionalized but who need assistance with the activities of daily living in order to remain at home.  The services that may be purchased from funds received under this section include:
(1)	Respite Care;
(2)	Adult Day Care;
(3)	Stipends and other related costs for senior companions, modeled after the federal Senior Companion Program; and
(4)	Other related services that meet needs not now adequately addressed by the services described in subsections (1) through (3) of this subsection.
(b)	The Division of Aging shall expend funds for these services according to the population of persons 70 years of age or older in each region.  The Division of Aging shall use a minimum of ninety-five percent (95%) of the funds it receives under this section for the services described in subdivisions (1) through (4) of subsection (a) of this section and may only use a maximum of five percent (5%) for technical assistance as described in subsection (c) of this section.  The Division of Aging shall choose providers in accordance with procedures under the Older Americans Act.  Funds allocated by the Division pursuant to this section shall be allocated by October 1 of each fiscal year.
(c)	The Division of Aging may contract for technical assistance.  The technical assistance shall include training assistance, coordination of various service delivery and funding sources, and ideas for innovative ways to build a lasting system of services for family caregivers.

TRANSFERS OF CERTAIN FUNDS AUTHORIZED
Sec. 68.  In order to assure maximum utilization of funds in county departments of social services, county or district health agencies, and area mental health, developmental disabilities, and substance abuse authorities, the Director of the Budget may transfer excess funds appropriated to a specific service or program or fund whether specified in a block grant plan or General Fund appropriation into another service or program or fund for local services within the budget of the respective State agency.
The Office of State Budget and Management shall report quarterly to the Joint Legislative Commission on Governmental Operations on each transfer authorized by this section.

LIABILITY INSURANCE
Sec. 69.  The Secretary of the Department of Human Resources, the Secretary of the Department of Environment, Health, and Natural Resources, and the Secretary of the Department of Correction may provide medical liability coverage not to exceed one million dollars ($1,000,000) on behalf of employees of the Departments licensed to practice medicine or dentistry and on behalf of medical residents from The University of North Carolina who are in training at institutions operated by the Department of Human Resources.  This coverage may include commercial insurance or self-insurance and shall cover these individuals for their acts or omissions only while they are engaged in providing medical and dental services pursuant to their State employment or training.
The coverage provided under this section shall not cover any individual for any act or omission that the individual knows or reasonably should know constitutes a violation of the applicable criminal laws of any state or the United States, or that arises out of any sexual, fraudulent, criminal or malicious act, or out of any act amounting to willful or wanton negligence.
The coverage provided pursuant to this section shall not require any additional appropriations and shall not apply to any individual providing contractual service to the Department of Human Resources, the Department of Environment, Health, and Natural Resources, or the Department of Correction, with the exception that coverage may include medical residents from The University of North Carolina who are in training at institutions operated by the Department of Human Resources.

DAY CARE RATES
Sec. 70.  (a)	Rules for the monthly schedule of payments for the purchase of day care services for low-income children shall be established by the Social Services Commission pursuant to G.S. 143B-153(8)a., in accordance with the following requirements:
(1)	For day care facilities, as defined in G.S. 110-86(3), in which fewer than fifty percent (50%) of the enrollees are subsidized by State or federal funds, the State shall continue to pay the same fee paid by private paying parents for a child in the same age group in the same facility.
(2)	Facilities in which fifty percent (50%) or more of the enrollees are subsidized by State or federal funds may choose annually one of the following payment options:
a.	The facility's payment rate for fiscal year 1985-86; or
b.	The market rate, as calculated annually by the Division of Facility Services' Child Day Care Section in the Department of Human Resources.
(3)	A market rate shall be calculated for each county and for each age group of enrollees within the county.  The county market rates shall be calculated from facility fee schedules collected by the Child Day Care Section on a routine inspection basis.  The section shall also calculate a statewide market rate for each age category.  The Social Services Commission shall adopt rules to establish minimum county rates that use the statewide market rates as a reference point.
(4)	Child day care homes as defined in G.S. 110-86(4) and other home based day care arrangements which are not required to be regulated by the State licensing agency may be paid the market rate for day care homes which shall be calculated at least biennially by the Child Day Care Section according to the method described in subsection (a)(3) of this section.
(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 may be used to select facilities to participate.  Day care facilities may be required to meet additional 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 requirements of State law or federal law or regulations.  Child care arrangements exempt from State regulations shall meet the requirements established by the State law and the Social Services Commission.
(c)	County departments of social services shall continue to negotiate with day care providers for day care services below those rates prescribed by subsection (a) of this section.  County departments are directed to purchase day care services so as to serve the greatest number of children possible with existing resources.

DAY CARE ALLOCATION FORMULA
Sec. 71.  (a)	To simplify current day dare allocation methodology and more equitably distribute State day care funds, the Department of Human Resources shall apply the following allocation formula to all noncategorical federal and State day care funds used to pay the costs of necessary day care for minor children of needy families:
(1)	One-third of budgeted funds shall be distributed according to the county's population in relation to the total population of the State;
(2)	One-third of the budgeted funds shall be distributed according to the number of children under six years of age in a county who are living in families whose income is below the State poverty level in relation to the total number of children under six years of age in the State in families whose income is below the poverty level; and
(3)	One-third of budgeted funds shall be distributed according to the number of working mothers with children under six years of age in a county in relation to the total number of working mothers with children under six years of age in the State.
(b)	A county's initial allocation may not be less than that county's initial allocation was in State fiscal year 1990-91 under the formula prescribed by Session Law 1989, chapter 500, Section 102.  However, if the total amount available to allocate is less than the amount allocated by formula in the 1990-91 State fiscal year, a county's allocation may be less than the county's initial allocation in the 1990-91 State fiscal year.

DAY CARE FUNDS MATCHING REQUIREMENT
Sec. 72.  No local matching funds shall be required by the Department of Human Resources as a condition of any locality's receiving any State day care funds appropriated by this act unless federal law requires such a match.

DAY CARE
Sec. 73.  Except for the allocation of support costs from federal grants by the General Assembly or the reallocation of federal grant funds by the Office of State Budget and Management, the Department of Human Resources shall distribute the funds appropriated and otherwise available to it for the purchase of day care for minor children of needy families so as to serve the greatest number of children possible.

CHILD DAY CARE REVOLVING LOAN FUND
Sec. 74.  Notwithstanding any law to the contrary, funds budgeted for the Child Day Care Revolving Loan Fund may be transferred to and invested by the financial institution contracted to operate the Fund.  The principal and any income to the Fund may be used to make loans, reduce loan interest to borrowers, serve as collateral for borrowers, pay the contractor's cost of operating the Fund, or to pay the Department's cost of administering the program.

SOCIAL SERVICES' PROTECTIVE SERVICES' ALLOCATION
Sec. 75.  Of the funds appropriated to the Department of Human Resources, Division of Social Services, for the 1993-95 biennium for child protective services, the sum of one million dollars ($1,000,000) in each fiscal year shall be allocated among all of the county departments of social services based on the percentage that the total number of child abuse and neglect reports within that county represents to the statewide total number of child abuse and neglect reports.  These percentages shall be computed from the reports received by the Central Registry of Abuse and Neglect for the last two fiscal years.

DHR EMPLOYEES/IN-KIND MATCH
Sec. 76.  Notwithstanding the limitations of G.S. 143B-139.4, the Secretary of the Department of Human Resources may assign employees of the Office of Rural and Resource Development to serve as in-kind match to nonprofit corporations working to establish health care programs that will improve health care access while controlling costs.

PIONEER FUNDING SYSTEM
Sec. 77.  Notwithstanding the provisions of G.S. 122C-147 or necessary alterations in the 1989 adopted Pioneer System Implementation Plan which may be caused by budget shortfalls, the Department of Human Resources may pay budgeted funds to area mental health, developmental disabilities, and substance abuse programs on a unit cost basis for services delivered by those area programs which are operating under the Pioneer System.

OWNERSHIP, CUSTODY, OR CONTROL OF VEHICLES PURCHASED BY THE DIVISION OF VOCATIONAL REHABILITATION SERVICES
Sec. 78.  The Division of Vocational Rehabilitation Services, Department of Human Resources, may use funds made available to it to purchase vehicles to be used primarily to transport clients being served pursuant to the Rehabilitation Act of 1973, 42 U.S.C. 701 et seq., as amended.  Notwithstanding the provisions of G.S. 143-341(8)i.3., the Division of Vocational Rehabilitation Services shall not be required to transfer ownership, custody, or control of any vehicle purchased pursuant to this section to the Department of Administration.

COMMUNITY-BASED ALTERNATIVES PARTICIPATION
Sec. 79.  County governments participating in the Community-Based Alternatives Program shall certify annually to the Division of Youth Services, Department of Human Resources, that Community-Based Alternatives Aid to Counties shall not be used to duplicate or supplant other programs within the county.

PART 13.  DEPARTMENT OF COMMERCE

WORKER TRAINING TRUST FUND
Sec. 80.  (a)	There is appropriated from the Worker Training Trust Fund to the Employment Security Commission of North Carolina the sum of six million seven hundred forty-six thousand dollars ($6,746,000) for the 1993-94 fiscal year and the sum of six million seven hundred forty-six thousand dollars ($6,746,000) in the 1994-95 fiscal year for the operation of local offices.
(b)	Notwithstanding G.S. 96-5(c), there is appropriated from the Special Employment Security Administration Fund to the Employment Security Commission of North Carolina, the sum of two million dollars ($2,000,000) for the 1993-94 fiscal year and the sum of two million dollars ($2,000,000) for the 1994-95 fiscal year for administration of the Veterans Employment Program, Employment Services Program, and Unemployment Insurance Program.
(c)	Supplemental federal funds or other additional funds received by the Employment Security Commission for similar purposes shall be expended prior to the expenditure of funds appropriated by this section.
(d)	Notwithstanding the provisions of G.S. 96-5(f), there is appropriated from the Worker Training Trust Fund to the following agencies the following sums for the 1993-94 and the 1994-95 fiscal years for the following purposes:
(1)	$1,000,000 for the 1993-94 fiscal year and $1,000,000 for the 1994-95 fiscal year to the North Carolina Department of Labor for customized training of the unemployed and the working poor for specific jobs needed by employers through the Department's Pre-Apprenticeship Division.
(2)	$2,000,000 for the 1993-94 fiscal year and $2,000,000 for the 1994-95 fiscal year to the North Carolina Department of Human Resources to assist welfare recipients in gaining employment through the federally funded Job Opportunities and Basic Skills Program in such a way as to gain the maximum match of federal funds for the State dollars appropriated.
(3)	$1,746,000 for the fiscal year 1993-94 and $1,746,000 for the 1994-95 fiscal year to the North Carolina Department of Community Colleges to continue the Focused Industrial Training Program.

HOME PROGRAM MATCHING FUNDS
Sec. 81.  (a)	Funds appropriated in this act to the Department of Commerce for the federal HOME Program shall be used by the Department to match federal funds appropriated for the HOME Program.  In allocating State funds appropriated to match federal HOME Program funds, the Department shall give priority to HOME Program projects, as follows:
(1)	First priority to projects that are located in counties designated as severely distressed counties under G.S. 105-130.40(c) or G.S. 105-151.17(c); and
(2)	Second priority to projects that benefit persons and families whose incomes are fifty percent (50%) or less of the median family income for the local area, with adjustments for family size, according to the latest figures available from the United States Department of Housing and Urban Development.
(b)	Funds appropriated in this act to match federal HOME Program funds shall not revert to the General Fund on June 30, 1994, and June 30, 1995.

PETROLEUM OVERCHARGE FUNDS ALLOCATION
Sec. 82.  (a)	The funds and interest thereon received from the case of United States v. Exxon are deposited in the Special Reserve for Oil Overcharge Funds.  There is appropriated from the Special Reserve to the Department of Commerce the sum of seven million seven hundred thousand dollars ($7,700,000) for the 1993-94 fiscal year and the sum of two million two hundred sixty-three thousand two hundred thirty-two dollars ($2,263,232) for the 1994-95 fiscal year to be allocated as follows:
(1)	$2,200,000 for the 1993-94 fiscal year and $1,000,419 for the 1994-95 fiscal year shall be used for projects under the State Energy Conservation Plan and Energy Extension Service Program;
(2)	$2,500,000 for the 1993-94 fiscal year shall be used for energy conservation programs for hospitals and schools; and
(3)	$3,000,000 for the 1993-94 fiscal year and $1,262,813 for the 1994-95 fiscal year shall be used for the Low Income Weatherization Program.
(4)	$1,262,813 for the 1993-95 biennium shall be used for the Low Income Home Energy Assistance Program (LIHEAP).
(b)	There is appropriated from funds and interest thereon received from the United States Department of Energy's Stripper Well Litigation (MDL378) which remain in the Special Reserve for Oil Overcharge Funds to the Department of Commerce the sum of three million two hundred thousand dollars ($3,200,000) for the 1993-94 fiscal year and six million eight hundred ninety-nine thousand five hundred eighty-one dollars ($6,899,581) for the 1994-95 fiscal year to be allocated as follows:
(1)	$1,199,581 for the 1994-95 fiscal year for projects under the State Energy Conservation Plan and Energy Extension Service Program;
(2)	$2,500,000 for the 1994-95 fiscal year for energy conservation programs for schools and hospitals; and
(3)	$3,200,000 for the 1993-94 fiscal year and $3,200,000 for the 1994-95 fiscal year for the Low Income Weatherization Program.
(c)	Any funds remaining in the Special Reserve for Oil Overcharge Funds after the allocations made pursuant to subsections (a) and (b) of this section may be expended only as authorized by the General Assembly.  All interest or income accruing from all deposits or investments of cash balances shall be credited to the Special Reserve for Oil Overcharge Funds.
(d)	The funds and interest thereon received from the Diamond Shamrock Settlement which remain in a reserve in the Office of State Budget and Management for the Division of Energy to administer the petroleum overcharge funds pursuant to Section 112 of Chapter 830 of the 1987 Session Laws shall continue to be available to the Division of Energy in the Department of Commerce on an as-needed basis.
(e)  The Department of Commerce shall submit comprehensive annual reports to the Office of State Budget and Management and the General Assembly by May 15, 1994, and January 31, 1995, which detail the use of all petroleum overcharge funds.  Any State department or agency that has received petroleum overcharge funds shall provide all information requested by the Department of Commerce for the purpose of preparing these reports."

UTILITIES REGULATORY FEE
Sec. 83.  The percentage rate for the utilities regulatory fee shall be set at eight and one-half hundredths percent (0.085%) effective July 1, 1993.

PETROLEUM OVERCHARGE ATTORNEYS' FEES
Sec. 84.  (a)	Unless prohibited by federal law, rule, or regulation or preexisting settlement agreement, no later than October 1, 1989, the North Carolina Attorney General shall direct the withdrawal of all funds received in the cases of United States v. Exxon and Stripper Well that are held in accounts or reserves located out-of-State for payment of attorneys' fees and reasonable expenses incurred in connection with oil overcharge litigation authorized by the Attorney General.  The Attorney General shall deposit these funds, and all funds to be received from petroleum overcharge funds in the future for attorneys' fees and reasonable expenses, into the Special Reserve for Oil Overcharge Funds.
(b)	All attorneys' fees and reasonable expenses incurred in connection with oil overcharge litigation shall be paid by the State Treasurer from petroleum overcharge funds that have been received by this State and deposited into the Special Reserve for Oil Overcharge Funds.
(c)	Notwithstanding any other provision of law, the Attorney General may authorize the payment of attorney fees and reasonable expenses from the Special Reserve for Oil Overcharge Funds without further action of the General Assembly and funds are hereby appropriated from the Special Reserve for Oil Overcharge Funds for the 1993-94 fiscal year and for the 1994-95 fiscal year for that purpose.

NORTH CAROLINA MANUFACTURING DIRECTORY PROCEEDS
Sec. 85.  The Department of Commerce may expend for industrial promotional advertising any amount collected from the sales of the North Carolina Manufacturing Directory above the sum of one hundred fifty-five thousand dollars ($155,000) already budgeted for the 1993-94 and 1994-95 fiscal years.

INDUSTRIAL DEVELOPMENT FUND/LOCAL MATCH
Sec. 86.  Local governments requesting financial assistance from the Industrial Development Fund shall demonstrate to the satisfaction of the Department that it would be an economic hardship for the local government to match State assistance from the Fund with local funds.  The Department shall develop guidelines for determining hardship.

PART 14.  DEPARTMENT OF ENVIRONMENT, HEALTH, AND NATURAL RESOURCES

DEMONSTRATION PROJECT FOR VOLUNTARY REMEDIAL ACTIONS
Sec. 87.  During the 1993-94, fiscal year, the Secretary of the Department of Environment, Health, and Natural Resources may contribute from the Inactive Hazardous Sites Cleanup Fund up to ten percent (10%) of the cost, not to exceed fifty thousand dollars ($50,000) per site, of implementing a voluntary remedial action program at up to three high priority sites that substantially endanger public health or the environment.

NON-MEDICAID REIMBURSEMENT
Sec. 88.  Providers of medical services under the various State programs other than Medicaid offering medical care to citizens of the State shall be reimbursed at rates no more than those under the North Carolina Medical Assistance Program.
The Department of Environment, Health, and Natural Resources may reimburse hospitals at the full prospective per diem rates without regard to the Medical Assistance Program's annual limits on hospital days.  When the Medical Assistance Program's per diem rates for inpatient services and its interim rates for outpatient services are used to reimburse providers in non-Medicaid medical service programs, retroactive adjustments to claims already paid shall not be required.
Notwithstanding the provisions of paragraph one of this section, the Department of Environment, Health, and Natural Resources may negotiate with providers of medical services under the various Environment, Health, and Natural Resources programs, other than Medicaid, for rates as close as possible to Medicaid rates for the following purposes:  contracts or agreements for medical services and purchases of medical equipment and other medical supplies.  These negotiated rates are allowable only to meet the medical needs of its non-Medicaid eligible patients, residents and clients who require such services which cannot be provided when limited to the Medicaid rate.
Maximum net family annual income eligibility standards for services in these programs with the exception of Migrant Health, School Health, AIDS Drug Reimbursement Program, diagnostic assessment for infants with sickle cell syndrome, Women's Preventive Health, and Home Health shall be as follows:
	Family	 All 
	 Size 	Kidney	Other
	1  	$ 6,400	$ 4,200
	2  	8,000	5,300
	3  	9,600	6,400
	4  	11,000	7,500
	5  	12,000	7,900
	6  	12,800	8,300
	7  	13,600	8,800
	8  	14,400	9,300
The eligibility level each fiscal year for outpatient services for all clients and for inpatient services for children under the age of 8, in the Children's Special Health Services Program shall be one hundred percent (100%) of the federal poverty guidelines as revised annually by the United States Department of Health and Human Services, in effect on July 1 of each fiscal year.
The eligibility level of each fiscal year for outpatient services covered by the Sickle Cell Program shall be one hundred percent (100%) of the federal poverty guidelines, as revised annually by the United States Department of Health and Human Services, in effect on July 1 of each fiscal year.

PARKS RECEIPTS
Sec. 89.  The Department of Environment, Health, and Natural Resources shall use any overrealized receipts from the Division of Parks and Recreation's sale of pine straw, timber, or any other forest products for the maintenance of the State parks and State reservoirs.

SUPERFUND PROGRAM
Sec. 90.  (a)	The Department of Environment, Health, and Natural Resources may use available funds, with the approval of the Office of State Budget and Management, in order to provide the ten percent (10%) cost share required for Superfund cleanups on National Priority List sites.  These funds may be in addition to those appropriated for this purpose.
(b)	The Department of Environment, Health, and Natural Resources shall report to the Joint Legislative Commission on Governmental Operations the amount and the source of the funds used pursuant to subsection (a) of this section within 30 days of the expenditure of these funds.

PART 15.  DEPARTMENT OF LABOR

FUNDING FOR OSHA ENFORCEMENT POSITIONS
Sec. 91.  The Department of Labor may use funds appropriated to the Department of Labor for the Occupational Safety and Health Act of North Carolina (OSHANC) program to fully fund enforcement personnel in the Compliance Bureau of the OSHANC program, provided the Department of Labor certifies to the Office of State Budget and Management that no federal match is available for the 1993-94 fiscal year and for the 1994-95 fiscal year.

PART 16.  EMPLOYEE SALARIES AND BENEFITS

MOST STATE EMPLOYEES/SALARY INCREASES
Sec. 92.  (a)	The compensation increase reserve funds in Section 3 and 4 of this act contain funds equivalent to an average annual increase of two percent (2%) for permanent State employees, which shall be transferred by the Director of the Budget including funds for the employer's retirement and Social Security contributions, to all employing agencies to be awarded, on and after July 1, 1993, to permanent State employees whose salaries are set in accordance with the State Personnel Act and who are paid from the General Fund or Highway Fund, on the basis of job performance that exceeds satisfactory levels in accordance with the policies, rules, and regulations established by the State Personnel Commission.  The provisions of this subsection shall not apply to employees whose salaries are determined in accordance with G.S. 20-187.3(a).  Funds remaining in the compensation increase reserve after allocations have been fulfilled in Sections 93, 94, 95, 96, and 98 of this Part may be used in conjunction with the Salary Adjustment Fund as approved by the Director of the Budget.
(b)	Salaries 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.

COMMUNITY COLLEGES PERSONNEL/SALARY INCREASES
Sec. 93.  The Director of the Budget may transfer from the Reserve for Compensation Increase created in this act funds to the State Board of Community Colleges necessary to provide a salary increase for fiscal year 1993-94 and continued in fiscal year 1994-95.  The State Board shall establish guidelines for providing salary increases to community college institutional personnel.  Salary funds shall be used to provide an average annual salary increase of two percent (2%) to all full-time and part-time employees.  The remaining one percent (1%) salary increase funds shall be used to provide an incentive compensation bonus pursuant to rules adopted by the State Board of Community Colleges.

PUBLIC SCHOOL PERSONNEL/SALARY INCREASES
Sec. 94.  (a)	Superintendents, Assistant Superintendents, Associate Superintendents, Supervisors, Directors, Coordinators, Evaluators, Program Administrators, Principals, and Assistant Principals – 1993-94 and 1994-95.  The Director of the Budget may transfer from the Reserve for Compensation Increase Fund created in Section 3 of this act for fiscal years 1993-94 and 1994-95 funds necessary to provide an annual average salary increase of two percent (2%), including funds for the employer's retirement and Social Security contributions, commencing July 1, 1993, for all superintendents, assistant superintendents, associate superintendents, supervisors, directors, coordinators, evaluators, program administrators, principals, and assistant principals whose salaries are supported from the State's General Fund.  These funds may not be used for any purpose other than that for the salary increases and necessary employer contributions provided by this subsection.
(b)	Noncertified Employees.  The Director of the Budget may transfer from the Reserve for Compensation Increase Fund created in Section 3 of this act for fiscal years 1993-94 and 1994-95 funds necessary to provide an annual average salary increase of two percent (2%), including funds for the employer's retirement and Social Security contributions, commencing July 1, 1993, for all noncertified public school employees, whose salaries are supported from the State's General Fund.  These funds may not be used for any purpose other than that for the salary increases and necessary employer contributions provided by this subsection.

HIGHER EDUCATION PERSONNEL/SALARY INCREASES
Sec. 95.  (a)	The Director of the Budget shall transfer to the Board of Governors of The University of North Carolina from the Reserve for Compensation Increase Fund created in Section 3 of this act to provide an annual average salary increase of two percent (2%), including funds for the employer's retirement and social security contributions, commencing July 1, 1993, 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.  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.
(b)	The Director of the Budget shall transfer to the Board of Governors of The University of North Carolina from the Reserve for Incentive Compensation Bonus Fund created in Section 3 of this act to provide an annual average salary increase of one percent (1%), including funds for the employer's retirement and Social Security contributions, commencing July 1, 1993, 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.  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 bonus increases and necessary employer contributions provided by this section.
(c)	The Director of the Budget shall transfer to the Board of Governors of The University of North Carolina from the Reserve for Salary Adjustments Fund created in Section 3 of this act the sum of two million dollars ($2,000,000) for each of the 1993-94 and 1994-95 fiscal years to provide for the recruitment and retention of University faculty and to allow the University to sustain its competitive edge, commencing July 1, 1993.  These funds shall be allocated to individuals according to the rules adopted by the Board of Governors, and may not be used for any purpose other than for salary adjustments and necessary employer contributions provided by this section.

SALARY INCREASE FOR STATE-FUNDED LOCAL PROGRAMS
Sec. 96.  Of the funds appropriated from the General Fund for the Reserve for Compensation Increase Fund in this act for the 1993-94 fiscal year and continued in the 1994-95 fiscal year, funds shall be made available for employees in locally operated State-funded programs in an amount equivalent to a two percent (2%) across-the-board salary increase.

INCENTIVE COMPENSATION BONUS
Sec. 97.  (a)	The salary increase reserve funds in Sections 3 and 4 of this act contain funds equivalent to an average annual salary increase of one percent (1%) for permanent State employees, which shall be transferred by the Director of the Budget, including funds for the employer's retirement and Social Security contributions, to all employing agencies to be awarded, on and after July 1, 1993, to permanent 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, on the basis of job performance that exceeds satisfactory levels in accordance with the policies, rules, and regulations established by the State Personnel Commission.  The funds so transferred by the Director of the Budget shall be computed on the annualized salaries payable on June 30, 1993, so as not to be compounded with any other increases in salary granted by the 1993 General Assembly.  The funds shall not become part of the permanent salary schedule.  The provisions of this subsection shall not apply to employees whose salaries are determined in accordance with G.S. 20-187.3(a).
(b)	The salary increase reserve funds in Sections 3 and 4 of this act contain funds equivalent to an average annual increase of one percent (1%) for the following:
(1)	All permanent community colleges instructional personnel supported by State funds;
(2)	All superintendents, assistant superintendents, associate superintendents, supervisors, directors, coordinators, evaluators, program administrators, principals, and assistant principals whose salaries are supported by the State's General Fund;
(3)	All noncertified public school employees whose salaries are supported from the State's General Fund;
(4)	All employees of The University of North Carolina and the North Carolina School of Science and Mathematics.
These funds shall be awarded, on or after July 1, 1993, to the employees enumerated above on the basis of job performance that exceeds satisfactory levels in accordance with policies, rules, and regulations established by the State Board of Community Colleges, the State Board of Education, and the Board of Governors of The University of North Carolina, respectively.  These funds shall not become part of the permanent salary schedule.

STATE OFFICIALS/PERSONS EXEMPT/SALARIES
Sec. 98.  Except as otherwise provided in this act, the fiscal year 1993-94 salaries 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 an average of two percent (2%), commencing July 1, 1993.

SALARY-RELATED CONTRIBUTIONS/EMPLOYERS
Sec. 99.  (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' salaries.  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.
(b) The State's employer contribution rates budgeted for retirement and related benefits as percentage of covered salaries for the 1993-94 and 1994-95 fiscal years are (i) ten and ninety-three hundredths percent (10.93%) - Teachers and State Employees; (ii) fifteen and ninety-three hundredths percent  (15.93%) - State Law Enforcement Officers; (iii) eight and sixty-six hundredths percent (8.66%) - University Employees' Optional Retirement System; (iv) twenty-nine and forty-six hundredths percent (29.46%) - Consolidated Judicial Retirement System; and (v) thirty-two and thirty hundredths percent (32.30%) - Legislative Retirement System.  Each of the foregoing contribution rates includes two percent (2.00%) for hospital and medical benefits.  The rate for State Law Enforcement Officers, and for the University Employees' Optional Retirement Program includes forty-two hundredths percent (0.42%) for the Disability Income Plan.  The rates for Teachers and State Employees and Law Enforcement Officers includes sixteen hundredths percent (0.16%) for the Death Benefits Plan.

PART 17.  MISCELLANEOUS PROVISIONS

TRAVEL ALLOWANCES OF STATE OFFICERS AND EMPLOYEES
Sec. 100.  G.S. 138-6(a)(4) reads as rewritten:
"(4)	For convention registration fees not to exceed two hundred dollars ($200.00) per convention."

EFFECT OF HEADINGS
Sec. 101.  The headings to the Parts and sections of this act are a convenience to the reader and are for reference only.  The headings do not expand, limit, or define the text of this act.

EXECUTIVE BUDGET ACT REFERENCE
Sec. 102.  The provisions of the Executive Budget Act, Chapter 143, Article 1 of the General Statutes, are reenacted and shall remain in full force and effect and are incorporated in this act by reference.

MOST TEXT APPLIES ONLY TO 1993-95
Sec. 103.  Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 1993-95 biennium, the textual provisions of this act shall apply only to funds appropriated for and activities occurring during the 1993-95 biennium.

SEVERABILITY CLAUSE
Sec. 104.  If any section or provision of this act is declared unconstitutional or invalid by the courts, it does not affect the validity of the act as a whole or any part other than the part so declared to be unconstitutional or invalid.

EFFECTIVE DATE
Sec. 105.  Except as otherwise provided, this act shall become effective July 1, 1993.