GENERAL ASSEMBLY OF NORTH CAROLINA

EXTRA SESSION 1994

S	4 

SENATE BILL 150
Appropriations Committee Substitute Adopted 3/2/94
Third Edition Engrossed 3/2/94
House Committee Substitute Favorable/Engrossed 3/3/94

Short Title:  1994 Budget Modification Act.	(Public)
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Sponsors:
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Referred to:  
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February 15, 1994

A BILL TO BE ENTITLED
AN ACT TO ADJUST THE APPROPRIATIONS MADE FOR THE 1993-94 FISCAL YEAR AND THE 1994-95 FISCAL YEAR TO CREATE THE BUDGET MODIFICATION ACT OF 1994.
The General Assembly of North Carolina enacts:

PART 1.  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.
Sec. 2.  The appropriations made by the 1994 Extra Session of the 1993 General Assembly in this act for capital improvements are for constructing, repairing, or renovating State buildings, utilities, and other capital facilities, for acquiring sites for them where necessary, and for acquiring buildings and land for State government purposes.

PART 2.  TITLE OF ACT

Sec. 3.  This act shall be known and may be cited as "The Budget Modification Act of 1994".

PART 3.  GENERAL FUND APPROPRIATIONS

CURRENT OPERATIONS/GENERAL FUND
Sec. 4.  Appropriations from the General Fund of the State for the maintenance of the State departments, institutions, and agencies, for one-time expenditures, and for other purposes as enumerated are made for the biennium ending June 30, 1995, according to the schedule that follows.  The designation "NR" placed after a money amount indicates that that amount is nonrecurring money.
Current Operations - General Fund	1993-94	1994-95

General Assembly
01.	Create a Legislative Study
on Welfare Reform 	$  20,000	NR	$  40,000	NR
Total General Assembly	20,000	40,000

Judicial Department
01.	Structured Sentencing Act
effective July 1, 1994–
a.	Community penalties 	1,788,253
	44,622	NR
b.	Legal and administrative
costs 	186,048	1,663,626
	274,740	NR	489,011	NR
02.	Reserve for "Teen Court"
programs 	75,000
03.	Reserve for court/drug
treatment program	     -   	800,000
Total Judicial Department	460,788	4,860,512

Office of the Governor
Office of State Budget and Management
01.	Study a statewide
Criminal Justice Information
Network (CJIN)  	50,000	NR	     -      
Total Office of the Governor	50,000

Public Education
State Aid to Local School
Administrative Units
01.	Basic Education Program
a. Fund social workers,
psychologists, counselors
in Grades K-8	   -      	25,716,600
02.	Intervention/Prevention 
Grant Program 	      -      	15,000,000
Total Public Education	-      	40,716,600

Department of Justice
01.	Upgrade Automated Fingerprint
Identification System (AFIS)	-     	397,692
	      -     	    3,074,000	NR
Total Department of Justice	-     	3,471,692

Department of Human Resources
Office of the Secretary
01.	Expand Family Preservation
Services Program	 500,000
Division of Mental Health, Developmental
Disabilities, and Substance Abuse Services
01.	Expand the Student Services Program
of the N.C. High School Athletic
Association - Coach Mentor
Training 	-     	534,000
02.	Structured Sentencing Act
effective July 1, 1994–
To provide substance abuse treatment
services to offenders under the
Treatment Alternatives to Street Crime
(TASC) Program	-     	4,620,000
Subtotal - Mental Health	   -     	5,154,000
Division of Youth Services
01.	Operating funds for two additional
Wilderness Camps 	-     	2,566,000
02.	Expand the Governor's One-on-One
Program and increase the funding
for each program 	-     	1,150,000
03.	Staff to operate 147 additional
beds in existing training
schools, including a special
education teacher and a guidance
counselor at each school	-     	7,279,419
04.	Contract for 12 beds at county
detention center	-     	487,360
05.	Community-Based Alternatives
Program 	-     	5,000,000
06.	Comprehensive study of juvenile
justice system	150,000 NR
Subtotal - Youth Services	150,000	16,482,779
Total Department of Human Resources	150,000	 	22,136,779

Department of Correction
01.	Structured Sentencing Act
effective July 1, 1994–	3,834,092	27,346,555
	4,053,445	NR
02.	Operating costs for 208 additional
beds at Piedmont, Lumberton,
Pender, Wayne, and Brown Creek
for a total of 1,040 additional
beds 	-     	13,466,330
	2,033,670	NR
03.	To lease jail space from
local governments 	-     	8,358,000
04.	To provide for out-of-State
housing of inmates 	-     	24,972,000
05.	To contract for 500 beds in
private substance abuse
treatment centers 	-     	5,156,740
	16,260	NR
06.	Use existing space more
efficiently in order to house
500 additional inmates 	-     	1,639,500
07.	Operating costs for a new Drug
and Alcohol Recovery Treatment
(DART) Center 	-     	1,007,436
	-     	192,564	NR
08.	Reserve for the operation of
a new 90-bed boot camp facility
for youthful offenders 	-     	1,124,373
	392,293	NR
09.	Additional operating funds
to bring on line the new
facilities constructed with	-     	18,991,090
$87.5 million prison bonds	-     	8,235,572	NR
10.	Operating costs for new
facilities coming on line–
Eastern Processing Center,
Marion Close Custody Addition, and
consolidation of five units	-     	    546,720
	-     	    125,932	NR
11.	Criminal Justice Partnership
Act effective January 1, 1995–
a. Grants	6,000,000
b. Administration	     -    	500,000
12.	Structured Sentencing Act
-adaptation of Offender Management
Information System	2,200,000 NR	     -      
Total Department of Correction 	2,200,000   	124,158,480

Department of Crime Control and Public Safety
01.	Structured Sentencing Act
effective July 1, 1994–
Community Services 	-     	110,000
02.	Victims Assistance
Network 	-     	150,000
03.	Additional funds to the Crime
Victims Compensation Fund	800,000
	     -     	3,000,000	 NR
Total Department of Crime Control
and Public Safety	-     	4,060,000

GRAND TOTAL CURRENT OPERATIONS -
GENERAL FUND - RECURRING	4,020,140	177,746,694
             NONRECURRING	  2,694,740	    21,697,369
         TOTAL	$6,714,880	$199,444,063

PART 4.  CAPITAL IMPROVEMENTS/GENERAL FUND

Sec. 5.  Appropriations are made from the General Fund for the 1993-94 and 1994-95 fiscal years for use by the State departments, institutions, and agencies to provide for capital improvement projects according to the following schedule:
Capital Improvements - General Fund	1993-94	1994-95

Department of Administration
01.	Construct 208 additional beds
	at Piedmont, Lumberton,
Pender, Wayne, and Brown
Creek for a total of 1,040
additional prison beds 	$ 21,483,914	$     -       
02.	Construct Eastern Processing
Center.  Due to subsurface soil
conditions and wetlands that were
unknown at time of original project cost
estimate, may need up to $3.0 million
more to complete site development for
this unit 	      -    	21,006,000
03.	Construct an addition at
Marion Close Custody Unit	  -    	5,358,900
04.	Consolidation of five prison
units (GPAC Recommendations)	   -    	10,260,500
05.	Construction costs of a new
Drug and Alcohol Recovery
Treatment (DART) Center	1,425,000	    -       
06.	To construct new 90-bed boot
camp facility for youthful
offenders 	  1,100,000	      -        
Total Department of Administration	 24,008,914	 36,625,400

Department of Human Resources
01.	To support construction of
one additional Wilderness
Camp 	  750,000	      -       
02.	To construct two 24-bed
Detention Centers	3,200,000	   -        
Total Department of Human Resources	 3,950,000	    -       

GRAND TOTAL CAPITAL IMPROVEMENTS -
GENERAL FUND	$ 27,958,914	$36,625,400

PART 5.  PROCEDURES FOR DISBURSEMENT

Sec. 6.  The appropriations made by the 1994 Extra Session of the 1993 General Assembly for capital improvements shall be disbursed for the purposes provided by this act.  Expenditure of funds shall not be made by any State department, institution, or agency, until an allotment has been approved by the Governor as Director of the Budget.  The allotment shall be approved only after full compliance with the Executive Budget Act, Article 1 of Chapter 143 of the General Statutes.  Prior to the award of construction contracts for projects to be financed in whole or in part with self-liquidating appropriations, the Director of the Budget shall approve the elements of the method of financing of those projects including the source of funds, interest rate, and liquidation period.  If the Director of the Budget approves the method of financing a project, the Director shall report that action to the Joint Legislative Commission on Governmental Operations at its next meeting.
Where direct capital improvement appropriations include the purpose of furnishing fixed and movable equipment for any project, those funds for equipment shall not be subject to transfer into construction accounts except as authorized by the Director of the Budget.  The expenditure of funds for fixed and movable equipment and furnishings shall be reviewed and approved by the Director of the Budget prior to commitment of funds.
Capital improvement projects authorized by the 1994 Extra Session of the 1993 General Assembly shall be completed, including fixed and movable equipment and furnishings, within the limits of the amounts of the direct or self-liquidating appropriations provided, except as otherwise provided in this act.

PART 6.  GENERAL PROVISIONS

Requested by:  Representatives Nesbitt and Diamont
LIMITATIONS ON DEPARTMENTAL USE OF APPROPRIATIONS
Sec. 7. (a)	Notwithstanding G.S. 143-23(a1), the Director of the Budget shall not approve the expenditure by a department, institution, or other spending agency of more than was appropriated for any object or line item.
Notwithstanding G.S. 143-23(a1), funds appropriated for salaries and wages shall be used only for salaries and wages or for premium pay, overtime pay, longevity, unemployment compensation, workers' compensation, temporary wages, payment of accumulated annual leave, certain awards to employees, tort claims, and employer's security, retirement, and hospitalization payments.
(b)	This section is effective upon ratification and remains in effect through June 30, 1994.

Requested by:  Representatives Nesbitt and Diamont
SPECIAL FUNDS, FEDERAL FUNDS, AND DEPARTMENTAL RECEIPTS/AUTHORIZATION FOR EXPENDITURES
Sec. 8.  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, and shall be expended at the level of service authorized by the General Assembly.  If the receipts, other than gifts and grants that are unanticipated and are for a specific purpose only, collected in a fiscal year by an institution, department, or agency exceed the receipts certified for it in General Fund Codes or Highway Fund Codes, then the Director of the Budget shall decrease the amount he allots to that institution, department, or agency from appropriations from that Fund by the amount of the excess, unless the Director of the Budget finds that the appropriations from the Fund are necessary to maintain the function that generated the receipts at the level anticipated in the certified Budget Codes for that Fund.  Funds that become available from overrealized receipts in General Fund Codes and Highway Fund Codes, other than gifts and grants that are unanticipated and are for a specific purpose only, shall not be used for new permanent employee positions or to raise the salary of existing employees except:
(1)	As provided in G.S. 116-30.1, 116-30.2, 116-30.3, 116-30.4, or 143-27; or
(2)	If the Director of the Budget finds that the new permanent employee positions are necessary to maintain the function that generated the receipts at the level anticipated in the certified budget codes for that Fund.  The Director of the Budget shall notify the President Pro Tempore of the Senate, the Speaker of the House of Representatives, the chairmen of the appropriations committees of the Senate and the House of Representatives, and the Fiscal Research Division of the Legislative Services Office that the Director intends to make such a finding at least 10 days before making the finding.  The notification shall set out the reason the positions are necessary to maintain the function.
The Office of State Budget and Management shall report to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office within 30 days after the end of each quarter the General Fund Codes or Highway Fund Codes that did not result in a corresponding reduced allotment from appropriations from that Fund.
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.

Requested by:  Representatives Nesbitt and Diamont
BUDGETING OF PILOT PROGRAMS
Sec. 9. (a)	Any program designated by the General Assembly as experimental, model, or pilot shall be shown as a separate budget item and shall be considered as an expansion item until a succeeding General Assembly reapproves it.
Any new program funded in whole or in part through a special appropriations bill shall be designated as an experimental, model, or pilot program.
(b)	The Governor shall submit to the General Assembly with the proposed budget a report of which items in the proposed budget are subject to the provisions of this section.

Requested by:  Representatives Nesbitt and Diamont
EXPENDITURES OF FUNDS IN RESERVES LIMITED
Sec. 10.  All funds appropriated by this act into reserves may be expended only for the purposes for which the reserves were established.

Requested by:  Representatives Nesbitt and Diamont
STATE MONEY RECIPIENTS/CONFLICT OF INTEREST POLICY
Sec. 11.  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 a notarized copy 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 as 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.

Requested by:  Representatives Nesbitt and Diamont
BUDGET REFORM STATEMENTS
Sec. 12. (a)	The General Fund availability used in developing the budget enacted in this Act, is shown below:
	1993-94	          1994-95 Non-	Non-
	Recurring	Recurring	Recurring
AVAILABILITY
Unappropriated Balance from
1993 Session	$4.7	$209.6	$380.5

Revenue Forecast Increase	156.0	160.0	   -

TOTAL AVAILABILITY	$160.7	369.6	380.5

(b)	The Unappropriated Balance from the 1993 Session stated in subsection (a) of this section is included in Total Availability as stated in Section 8(b) of Chapter 561 of the 1993 Session Laws.

PART 7.  OFFICE OF STATE BUDGET AND MANAGEMENT

Requested by:  Representatives Nesbitt, Diamont, Gist, Holt
CRIMINAL JUSTICE INFORMATION NETWORK
Sec. 13.  (a)	Of the funds appropriated in this act to the Office of State Budget and Management, the sum of fifty thousand dollars ($50,000) for the 1993-94 fiscal year shall be used to study the development of a Criminal Justice Information Network that links together data in existing databases and networks.  Any of these funds unexpended at the end of the 1993-94 fiscal year shall not revert but shall remain available to complete this study. This study shall include:
(1) 	An assessment of the functionality of information currently used by the General Court of Justice, State and local law enforcement agencies, correction agencies, and State departments or agencies related to the criminal justice system, and an evaluation of the need for systems integration or system enhancements, in particular the need for a comprehensive DWI database and for systems integration of the Department of Correction's Offender Management Information System;
(2)	A determination of the technical feasibility of incorporating all or portions of currently existing information systems and all or portions of new information systems into a comprehensive statewide Criminal Justice Information Network (CJIN);
(3)	An evaluation of feasible CJIN designs at no fewer than three alternative levels of costs (both capital and future operating), and a clear description of the benefits and costs associated with each level;
(4)	An estimation of a development and implementation schedule for each level of costs, showing milestones to be achieved during each phase of the schedule, costs to be incurred during each phase, and any benefits and savings expected at intermediate stages of CJIN development and implementation;
(5)	An evaluation of alternative structures for CJIN management, including accountability for CJIN operations, criteria for membership or participation, procedures to prevent inappropriate or illegal access, and steps to assure data quality and accuracy;
(6)	Recommendations of measures for savings, efficiency, and effectiveness that will enable the General Assembly to gauge CJIN performance;
(7)	Assurances that the integrated CJIN shall be consistent and compatible with a comprehensive telecommunications plan as approved by the Information Resource Management Commission; and
(8)	A plan for a statewide integrated law enforcement communications system and a study of the costs of making that system available to local governments.
(b)	There is created within the Office of State Budget and Management a Criminal Justice Information Network study committee to conduct the study required under this section.  The study committee shall be appointed by the Governor in consultation with the Lieutenant Governor, the Attorney General, and the Chief Justice of the North Carolina Supreme Court.  The Governor shall appoint no more than nine members to the study committee, and shall make the appointments based upon the appointees' knowledge, expertise, and responsibility within the criminal justice system and related areas.  All State and local government agencies shall cooperate fully with the study committee.  The study committee shall provide a monthly report on its progress (i) to the Chairs of the Senate and House Appropriations Committees, (ii) to the Chairs of the Senate and House Justice and Public Safety Appropriations Subcommittees, and (iii) to the Information Resources Management Commission established by G.S. 143B-426.21 at the regularly scheduled meetings of the Commission.  The study committee shall report its final findings and recommendations to the General Assembly on or before February 1, 1995, and shall make an interim report by May 15, 1994.

PART 8.1.  ADVANCE STRUCTURED SENTENCING

Requested by:  Representatives Nesbitt, Diamont, Gist, Holt, Barnes
ADVANCE STRUCTURED SENTENCING/CRIMINAL JUSTICE PARTNERSHIP ACT
Sec. 14.1.  (a) G.S. 15A-1340.10, as enacted by Section 1 of Chapter 538 of the 1993 Session Laws, reads as rewritten:
"§ 15A-1340.10.  Applicability of structured sentencing.
This Article applies to criminal offenses in North Carolina, other than impaired driving under G.S. 20-138.1 that occur on or after July 1, 1994."
(b) G.S. 15A-1371(a1), as amended by Section 22 of Chapter 538 of the 1993 Session Laws, reads as rewritten:
"(a1)	A prisoner serving a term of life imprisonment is eligible for parole after serving 25 years.  This subsection applies to offenses committed on and after July 1, 1994."
(c)	Section 56 of Chapter 538 of the 1993 Session Laws reads as rewritten:
"Sec. 56.  This act becomes effective July 1, 1994, and applies only to offenses occurring on or after that date.  Prosecutions for, or sentences based on, offenses occurring before the effective date of this act are not abated or affected by the repeal or amendment in this act of any statute, and the statutes that would be applicable to those prosecutions or sentences but for the provisions of this act remain applicable to those prosecutions or sentences."
(d) Section 1359 of Chapter 539 of the 1993 Session Laws reads as rewritten:
"Sec. 1359.  This act becomes effective July 1, 1994, and applies to offenses occurring on or after that date.  Prosecutions for offenses committed before the effective date of this act are not abated or affected by this act, and the statutes that would be applicable but for this act remain applicable to those prosecutions."
(e)  Section 2 of Chapter 534 of the 1993 Session Laws reads as rewritten:
"Sec. 2.  This act becomes effective January 1, 1994. Grants administered under this act shall become effective January 1, 1995.  The Department of Correction may use funds available to support the administration of the State-County Criminal Justice Partnership program effective January 1, 1994."

PART 9.  DEPARTMENT OF CORRECTION

Requested by:  Representatives Gist and Holt
OUT-OF-STATE HOUSING OF INMATES
Sec. 15.  (a)	G.S. 148-37 reads as rewritten:
"§ 148-37.  Additional facilities authorized; contractual arrangements.
(a)	Subject to the provisions of G.S. 143-341, the State Department of Correction may establish additional facilities for use by the Department, such facilities to be either of a permanent type of construction or of a temporary or movable type as the Department may find most advantageous to the particular needs, to the end that the prisoners under its supervision may be so distributed throughout the State as to facilitate individualization of treatment designed to prepare them for lawful living in the community where they are most likely to reside after their release from prison. For this purpose, the Department may purchase or lease sites and suitable lands adjacent thereto and erect necessary buildings thereon, or purchase or lease existing facilities, all within the limits of allotments as approved by the Department of Administration.
(b)	The Secretary of Correction may contract with the proper official of the United States or of any county or city of this State for the confinement of federal prisoners after they have been sentenced, county, or city prisoners in facilities of the State prison system or for the confinement of State prisoners in any county or any city facility located in North Carolina, or any facility of the United States Bureau of Prisons, when to do so would most economically and effectively promote the purposes served by the Department of Correction. Any contract made under the authority of this section shall be for a period of not more than two years, and shall be renewable from time to time for a period not to exceed two years. Contracts for receiving federal, county and city prisoners shall provide for reimbursing the State in full for all costs involved. The financial provisions shall have the approval of the Department of Administration before the contract is executed. Payments received under such contracts shall be deposited in the State treasury for the use of the State Department of Correction. Such payments are hereby appropriated to the State Department of Correction as a supplementary fund to compensate for the additional care and maintenance of such prisoners as are received under such contracts.
(c)	In addition to the authority contained in subsections (a) and (b) of this section, the Secretary of Correction may enter into contracts with any public entity for the confinement and care of State prisoners in any out-of-state public correctional facility when to do so would most economically and effectively promote the purposes served by the Department of Correction.  The authority contained in this subsection may be used to house a maximum of 1,000 prisoners at any one time, which maximum shall include those presently housed.  Prisoners may be sent to out-of-state correctional facilities only when there are no available facilities in this State within the State prison system to appropriately house those prisoners.  Any contract made under the authority of this subsection shall expire not later than June 30, 1995, and shall be approved by the Department of Administration before the contract is executed.
(d)	Prisoners confined in out-of-state correctional facilities pursuant to subsection (c) of this section shall remain subject to the rules adopted for the conduct of persons committed to the State prison system.  The rules regarding good time and gain time, discipline, classification, extension of the limits of confinement, transfers, housing arrangements, and eligibility for parole shall apply to inmates housed in those out-of-state correctional facilities.  The operators of those out-of-state correctional facilities may promulgate any other rules as may be necessary for the operation of those facilities with the written approval of the Secretary of Correction.  Custodial officials employed by an out-of-state correctional facility are agents of the Secretary of Correction and may use authorized force procedures to defend themselves, to enforce the observance of discipline in compliance with correctional facility rules, to secure the person of a prisoner, and to prevent escape.  Prisoners confined to out-of-state correctional facilities may be required to perform reasonable work assignments within those facilities."
(b)	Subsection (a) of this section is effective upon ratification and expires on June 30, 1995.

Requested by:  Representatives Nesbitt, Diamont, Gist, Holt
DEPARTMENT OF CORRECTION LIMITATION ON CONTRACTING FOR IN-STATE HOUSING OF INMATES
Sec. 16.  The Department of Correction shall not contract to house in non-State-owned facilities within the State more than a total of 1500 inmates at any one time, excluding any beds in private substance abuse treatment centers authorized by the General Assembly.  Any number of inmates exceeding 500 will reduce from the 1000 out-of-State prisoners authorized in G.S. 148-37(c).

Requested by:  Representatives Nesbitt, Diamont, Mavretic
DEPARTMENT OF CORRECTION STUDY OF HOUSING OF CERTAIN FELONS OUTSIDE THE STATE OF NORTH CAROLINA 
Sec. 17.  The Department of Correction shall study the issue of private, out-of-country placement of felons of 16 years of age or older who are sentenced to prison for 10 or more years in correctional facilities that equal or exceed the standards for adult correctional institutions of the American Correctional Association for construction and habitation and are:
(1)	Operated by any governmental unit within any U.S. state, the District of Columbia, the Commonwealth of Puerto Rico, or any territory or possession of the United States; or
(2)	a.	Operated by any corporation or other business entity organized under the laws of any U.S. state, the District of Columbia, the Commonwealth of Puerto Rico, or any territory or possession of the United States; and
b.	Located within the boundaries of any U.S. state, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, or any nation that is a signatory of the North American Free Trade Agreement (NAFTA), as approved by the United States in Pub. L. No. 103-182, 107 Stat. 2057 (1993).
The Department shall report the results of this study to the 1993 General Assembly, Regular Session 1994.

Requested by:  Representative Ellis
LRC STUDY PLACEMENT OF FELONS 16 YEARS OF AGE OR OLDER IN PRIVATE CORRECTIONAL FACILITIES
Sec. 17.1.  The Legislative Research Commission may study whether felons 16 years of age or older who are sentenced to State prison may be housed in private correctional facilities that equal or exceed the standards for adult correctional institutions of the American Correctional Association for construction and habitation.  The report shall be made to the 1993 General Assembly, Regular Session 1994.

Requested by:  Representatives Nesbitt, Diamont, Gist, Holt
GOVERNOR TO SET PRISON POPULATION CAP
Sec. 18.  (a)	G.S. 148-4.1 reads as rewritten:
"§ 148-4.1.  Release of inmates.
(a)	Whenever the Secretary of Correction determines from data compiled by the Department of Correction that it is necessary to reduce the prison population to a more manageable level, he shall direct the Parole Commission to release on parole over a reasonable period of time a number of prisoners sufficient to that purpose.
(b)	Except as provided in subsection (c) and (e), only inmates who are otherwise eligible for parole pursuant to Article 85 of Chapter 15A or pursuant to Article 3B of this Chapter may be released under this section.
(c)	Persons eligible for parole under Article 85A of Chapter 15A shall be eligible for early parole under this section nine months prior to the discharge date otherwise applicable, and six months prior to the date of automatic 90-day parole authorized by G.S. 15A-1380.2.
(c1)	For purposes of this section only, 'prison capacity' means the number of prisoners housed in facilities located in North Carolina and owned or operated by the State of North Carolina, as set by the Governor.  In setting the prison capacity for purposes of this section, the Governor shall consider the number of beds available and shall make a finding that the number set would not jeopardize the State's ability to perform its obligations under the law.  In no event shall the number set by the Governor under this subsection exceed 23,500.
(d)	If the number of prisoners housed in facilities located in North Carolina and owned or operated by the State of North Carolina for the Division of Prisons exceeds ninety-eight percent (98%) of prison capacity for 15 consecutive days, the Secretary of Correction shall notify the Governor and the Chairman of the Parole Commission of this fact. Upon receipt of this notification, the Parole Commission shall within 90 days release on parole a number of inmates sufficient to reduce the prison population to ninety-seven percent (97%) of prison capacity.
From the date of the notification until the prison population has been reduced to ninety-seven percent (97%) of prison capacity, the Secretary may not accept any inmates ordered transferred from local confinement facilities to the State prison system under G.S. 148-32.1(b). Further, the Secretary may return any inmate housed in the State prison system under an order entered pursuant to G.S. 148-32.1(b) to the local confinement facility from which the inmate was transferred.
(e)	In addition to those persons otherwise eligible for parole, from the date of notification in subsection (d) until the prison population has been reduced to ninety-seven percent (97%) of prison capacity, any person imprisoned only for a misdemeanor also shall be eligible for parole and immediate termination upon admission, notwithstanding any other provision of law, except:
(1)	Those persons convicted under G.S. 20-138.1 of driving while impaired or any offense involving impaired driving, and
(2)	Those persons convicted pursuant to G.S. 130A-25 of failing to obtain the treatment required by Part 3 or Part 5 of Article 6 of Chapter 130A or of violating G.S. 130A-144(f) or G.S. 130A-145.
(f)	In complying with the mandate of subsection (d), the Parole Commission may exercise the discretion granted to refuse parole by G.S. 15A-1371 in selecting felons to be paroled under this section so long as the prison population does not exceed prison capacity.
(g)	In order to meet the requirements of this section, the Parole Commission shall not parole any person convicted under Article 7A of Chapter 14 of a sex offense, under G.S. 14-39, 14-41, or 14-43.3, under G.S. 90-95(h) of a drug trafficking offense, or under G.S. 14-17. The Parole Commission may continue to consider the suitability for release of such persons in accordance with the criteria set forth in Articles 85 and 85A of Chapter 15A."
(b)	Sections 7 through 9 of Chapter 91 of the 1993 Session Laws are repealed.

Requested by:  Representatives Nesbitt, Diamont, Gist, Holt
REPORT ON PLAN FOR CONTRACTING WITH PRIVATE SUBSTANCE ABUSE TREATMENT CENTERS
Sec. 19.  The Department of Correction shall report to the General Assembly by May 1, 1994, on its plan for the use of funds appropriated to it in this act for the 1994-95 fiscal year for contracts for 500 beds in private substance abuse treatment centers, not to exceed 100 beds at any one center, including any recommended changes in legislation necessary to authorize these contracts. The Department of Human Resources shall provide any technical assistance requested by the Department of Correction on the preparation of the plan.

Requested by:  Representatives Nesbitt and Diamont
PROBATION/PAROLE STUDY
Sec. 20.  The Department of Correction shall study methods for reducing the paperwork required of probation and parole officers in order to allow more time for those officers to supervise probationers and parolees.  The Department shall report its findings to the Joint Legislative Commission on Governmental Operations, to the Chairs of the House and Senate Appropriations Committees, and to the Chairs of the House and Senate Appropriations Subcommittees on Justice and Public Safety by May 1, 1994.

PART 10.  DEPARTMENT OF CRIME CONTROL AND PUBLIC SAFETY

Requested by:  Representatives Gist and Holt
VICTIMS ASSISTANCE NETWORK FUNDS
Sec. 21.  (a)	Of the funds appropriated in this act to the Department of Crime Control and Public Safety, the sum of one hundred fifty thousand dollars ($150,000) for the 1994-95 fiscal year shall be used to support the Victims Assistance Network.  These funds shall be used by the Victims Assistance Network to perform the following functions under the direction of and as required by the Department of Crime Control and Public Safety:
(1)	Conduct surveys and gather data on crime victims and their needs;
(2)	Act as a clearinghouse for crime victims services;
(3)	Provide an automated crime victims bulletin board for subscribers;
(4)	Coordinate and support the activities of other crime victims advocacy groups;
(5)	Identify training needs of crime victims services providers and criminal justice personnel and coordinate training efforts for those persons; and
(6)	Provide other services as identified by the Governor's Crime Commission or the Department of Crime Control and Public Safety.
(b) This section becomes effective July 1, 1994.

PART 11.  JUDICIAL DEPARTMENT

Requested by:  Representatives Nesbitt, Diamont, Gist, Holt
TEEN COURT PROGRAM FUNDS
Sec. 22.  (a)	Of the funds appropriated in this act to the Judicial Department, the sum of seventy-five thousand dollars ($75,000) for the 1994-95 fiscal year shall be used to develop and implement "teen court" programs, which programs are to be made available to all junior and senior high school students in selected judicial districts for the purpose of handling problems that develop at school.
(b)	The Administrative Office of the Courts shall report to the General Assembly by January 1, 1995, on its use of these funds and on the effectiveness of the programs funded.
(c)	In addition to the reports required in subsection (d) of Section 80 of Chapter 561 of the 1993 Session Laws, the Administrative Office of the Courts shall make an interim report by May 15, 1994, on the effectiveness of the Cumberland County "Teen Court" Program established pursuant to Section 80 of Chapter 561 of the 1993 Session Laws.

Requested by:  Representatives Nesbitt, Diamont, Gist, Holt
RESERVE FOR COURT/DRUG TREATMENT PROGRAM
Sec. 23.  There is created in the Judicial Department a Reserve for Court/Drug Treatment Program.  Of the funds appropriated in this act to the Judicial Department, the sum of eight hundred thousand dollars ($800,000) for the 1994-95 fiscal year shall be held in this reserve.  The funds in this reserve shall be allocated as prescribed by the 1993 General Assembly, Regular Session 1994.

PART 12.  DEPARTMENT OF HUMAN RESOURCES

Requested by:  Representatives Nesbitt, Diamont, Easterling, Nye
DIVISION OF YOUTH SERVICES' COMPREHENSIVE STUDY OF THE JUVENILE JUSTICE SYSTEM
Sec. 25.  (a)	The Department of Human Resources shall conduct a comprehensive study of the Division of Youth Services' juvenile justice system in order to ensure the efficacy, cost-effectiveness, and optimal utilization of the system and its continuum of services.
This study shall include:
(1)	An evaluation of the Community-Based Alternative Program;
(2)	An evaluation of vocational education in the training schools;
(3)	An evaluation of the alternatives to detention and to training schools;
(4)	Development of a plan for an early warning system in which potential youthful offenders are identified at a very early age so that intervention can be made to prevent adverse outcomes; and
(5)	Diagnostic assessment of all youth in training schools and detention centers to determine if each youth has been properly placed.  The assessment criteria shall conform to standards developed by the Division of Youth Services, juvenile court counselors, and mental health/substance abuse services professionals.
(b)	The Department shall complete this study by November 30, 1994, and shall report its findings and recommendations to the 1995 General Assembly by March 1, 1995.
(c)	Of the funds appropriated to the Department of Human Resources, Division of Youth Services, in this act, the sum of one hundred fifty thousand dollars ($150,000) for the 1993-94 fiscal year shall be used to fund this study.  Any of these funds that are unexpended at the end of the 1993-94 fiscal year shall not revert but shall remain available to complete the study required by this section.

Requested by:  Representatives Nesbitt, Diamont, Nye, Easterling
DIRECTOR OF JOINT SECURITY FORCE
Sec. 26.  The Secretary of the Department of Human Resources shall designate the Director of the Juvenile Evaluation Center as the Director of the Joint Security Force established in G.S. 122C-421, serving the territory of the Black Mountain Center, the Alcohol Rehabilitation Center, and the Juvenile Evaluation Center, all in Buncombe County, and having the power prescribed by G.S. 7A-571(4) and G.S. 122C-421 outside the territory embraced by the named centers but within the confines of Buncombe County.

Requested by:  Representatives Nesbitt, Diamont, Nye, Easterling, Redwine, Fitch, McAllister, Berry, Balmer, Creech
WELFARE REFORM STUDY
Sec. 27. (a)	There is created the Legislative Study Commission on Welfare Reform.  The Commission shall consist of 14 members as follows:
(1)	Five members of the House of Representatives appointed by the Speaker of the House of Representatives;
(2)	Two persons appointed by the Speaker of the House of Representatives who are not members of the General Assembly;
(3)	Five Senators appointed by the President Pro Tempore of the Senate; and 
(4)	Two persons appointed by the President Pro Tempore of the Senate who are not members of the General Assembly.
(b)	The Speaker of the House of Representatives shall designate one representative as cochair and the President Pro Tempore of the Senate shall designate one Senator as cochair.
(c)	The Commission shall study the whole issue of the need for welfare reform in light of the current social crisis caused, in part, by the rapidly increasing incidence of violent crimes.  This study shall include:
(1)	A reexamination of the whole purpose of the welfare system and an identification of those disincentives to raising responsible, independent participants in society that are built into the system;
(2)	An analysis of the federal welfare reform proposals and of other states' initiatives; and
(3)	A compilation and detailed examination, including detailed fiscal analysis, of proposals to reform the welfare system.
(d)	The reexamination prescribed by subdivision (1) of this subsection shall specifically include consideration of the following bills introduced in the 1993 General Assembly, Extra Session 1994:  House Bill 141, introduced by Representative Fitch, House Bill 209, introduced by Representative McAllister, House Bill 80, introduced by Representative Berry, and any other welfare reform initiatives introduced in this session.
(e)  The Commission may submit an interim report to the General Assembly on or before the first day of the 1994 Regular Session of the 1993 General Assembly and shall submit a final report, including a complete proposal for welfare reform, to the 1995 General Assembly within one week of its convening, by filing the report with the Speaker of the House of Representatives and the President Pro Tempore of the Senate.  Upon filing its final report, the Commission shall terminate.
(f)  The Commission, while in the discharge of official duties, may exercise all the powers provided for under the provisions of G.S. 120-19 and G.S. 120-19.1 through G.S. 120-19.4.  The Commission may meet at any time upon the joint call of the cochairs.  The Commission may meet in the Legislative Building or the Legislative Office Building.
(g)  Members of the Commission shall receive subsistence and travel expenses at the rates set forth in G.S. 120-3.1 or G.S. 138-5, as appropriate.
(h)  The Commission may contract for professional, clerical, or consultant services as provided by G.S. 120-32.02.  The Legislative Services Commission, through the Legislative Administrative Officer, shall assign professional staff to assist in the work of the Commission.  The House of Representatives' and the Senate's Supervisors of Clerks shall assign clerical staff to the Commission or committee, upon the direction of the Legislative Services Commission.  The expenses relating to clerical employees shall be borne by the Commission.
(i)  When a vacancy occurs in the membership of the Commission, the vacancy shall be filled by the same appointing officer who made the initial appointment.
(j)  All State departments and agencies and local governments and their subdivisions shall furnish the Commission with any information in their possession or available to them.

PART 13.  INTERVENTION/PREVENTION INITIATIVES

Requested by: Representatives Barnes, Black, Diamont, Easterling, Holt, H. Hunter, Nesbitt, Rogers
BASIC EDUCATION PROGRAM
Sec. 28.  Of the funds appropriated to Aid to Local School Administrative Units, the sum of twenty-five million seven hundred sixteen thousand six hundred dollars ($25,716,600) for the 1994-95 fiscal year shall be used to fund fully all the school counselors, social workers, and psychologists required for kindergarten through grade eight by the Basic Education Program.
Local boards of education are encouraged to use these positions, when feasible, to implement programs funded with Intervention/Prevention Program grants.  These funds are appropriated to provide school systems with personnel to reduce the incidence of juvenile crime and to provide services to students who are at risk of school failure and their families; therefore, it is the intent of the General Assembly that the Superintendent not recommend and the State Board not grant waivers pursuant to G.S. 115C-238.6 pertaining to the purposes for which these funds may be used.

SCHOOL-BASED PROGRAM GRANTS
Sec. 29.  (a)	The General Assembly finds that:
(1)	Growing numbers of children live in conditions that place them at risk of school failure as students;
(2)	The provision of school and support services to these children and their families by public and nonprofit agencies is fragmented and does not prepare these children to learn effectively and have a successful school experience;
(3)	The lack of collaboration among schools, families, local agencies, and other groups involved in family support and youth development activities results in the inefficient and ineffective use of resources to meet the needs of these children;
(4)	Schools are dedicating an increasing amount of their time and resources to responding to disruptive and violent behavior rather than fulfilling their mission to challenge with high expectations each child to learn, to achieve, and to fulfill his or her potential;
(5)	The relationships between school failure, disruptive and violent behavior in schools, unemployment, and criminal behavior are clear;
(6)	Responding to the needs of students who are at risk of school failure and providing for a safe and secure learning environment are cost-effective because it enables the State to substitute preventive measures for expensive crisis intervention; and
(7)	Differing local needs and local resources necessitate the development of locally generated, community-based plans that coordinate and leverage existing resources, not the imposition of uniform and inflexible, State-mandated plans;
therefore, of the funds appropriated to Aid to Local School Administrative Units, the sum of fifteen million dollars ($15,000,000) shall be used for the 1994-95 fiscal year to implement the Intervention/Prevention Grant Program for North Carolina School Children.
(b)	Article 16 of of Chapter 115C of the General Statutes is amended by adding a new Part to read:
"Part 8.  Intervention/Prevention
Grant Program for North Carolina School Children.
"§ 115C-238.40.  Establishment of program; purpose.
There is established the Intervention/Prevention Grant Program for North Carolina School Children.  The purpose of the program is to provide grants to local school administrative units for locally designed innovative local programs that target juvenile crime by (i)	enhancing educational attainment through coordinated services to respond to the needs of students who are at risk of school failure and at risk of participation in juvenile crime and (ii) providing for a safe and secure learning environment.
"§ 115C-238.41.  Applications for grants.
(a)	A local school administrative unit may apply for a grant, or up to three adjacent local school administrative units may apply jointly for a grant.
(b)	In preparing grant applications, an applicant shall consult with a local task force appointed by the county board of commissioners and comprised of educators, parents, students, community leaders, the juvenile justice system, human services, and nongovernmental agencies providing services to children.  In appointing members of the task force, the county board of commissioners shall attempt to include individuals who are representative of the racial and socioeconomic composition of the geographic area to be served by the grant.  If a local school administrative unit or the geographic area covered by a grant proposal is located in more than one county, the board of commissioners of the counties shall jointly appoint the task force.
(c)	The application shall include the following information:
(1)	Data on the incidence of juvenile crime in the geographical area to be served by the grant.  Sources of data may include the chief juvenile court counselor in the judicial district, the clerk of superior court, and local law enforcement officials.
(2)	An assessment of local resources from all sources for, and local deficiencies with regard to, responding to the needs of children who live in conditions that place them at risk of school failure as students.  This assessment shall be prepared by the local task force.
(3)	A detailed plan for removing barriers to success in school that exist for these children and for minimizing disruptive and violent behavior among all students.  This plan shall include proposed goals and anticipated outcomes, prepared after consultation with the task force.  This plan shall provide for the establishment or expansion of programs that have components based on one or more of the following models or other collaborative models:
a.	Family Resource Center Model. – A Family Resource Center is a school-based center that coordinates the delivery of comprehensive and integrated services in or near a school to children from kindergarten through the eighth grade and their families.  Services are provided through broad-based collaboration among governmental and nongovernmental agencies and persons reflective of the racial and socioeconomic diversity in a community.  Services are designed to (i) prepare children to attain academic and social success, (ii) enhance the ability of families to become advocates for and supporters of education for the children in their families, (iii) provide parenting classes to the parents of children who are at risk of school failure, and (iv) otherwise enhance the ability of families to function as nurturing and effective family units.
b.	S.O.S. Program or Other After School Program Model. – An After School Program is a program that provides high quality, educationally appropriate activities to students, especially middle school-aged students, after the regular school day.  Local boards of education may permit teachers to adjust their work schedules so they can work in the program.
		The program may follow the S.O.S. Program Model, which was developed by Governor Hunt.  A program following the S.O.S. Program Model should be targeted toward providing academic support for middle school-aged students who perform significantly below their age-level peers or for students with learning disabilities. The program should rely heavily on community volunteers to provide positive adult role models for students and to help supervise the activities.  The local board of education may appoint school-based Neighborhood Councils to advise it on the development of a grant proposal for a program following the S.O.S. Program Model. A Neighborhood Council may be either an existing community group, nonprofit corporation, or other governmental or nongovernmental entity, or a new entity that reflects the demographics of the community being served and includes broad representation of government, school, and community agencies.
c.	Cities in Schools Program Model. – A Cities in Schools Program is a community partnership among public agencies, private nonprofit agencies, volunteer organizations, and local businesses that delivers services to students who are at risk of dropping out of school or who display discipline problems.  Services offered are based on an assessment of local needs and resources.
d.	Alternative Learning Program Model. – An Alternative Learning Program is a program that provides individualized programs outside of a standard classroom setting in a caring atmosphere in which students learn the skills necessary to redirect their lives and return to a standard classroom setting.  The program should maintain State standards and may include smaller classes and lower student/teacher ratios, school-to-work transition activities, modification of curriculum and instruction to meet individual needs, flexible scheduling, and necessary academic, vocational, and support services for students and their families.  Services may also include appropriate measures to correct disruptive behavior, teach responsibility, good citizenship, and respect for rules and authority.
		The goals of the alternative school programs should be to (i) reduce the school dropout rate through improved student attendance, behavior, and educational achievement; and (ii) increase successful school-to-work transitions for students through educationally linked job internships, mentored job shadowing experiences, and the development of personalized education and career plans for participating students.
e.	Safe Schools Program Model. – A Safe Schools Program is a locally designed program for making schools safe for students and school employees.  The program may involve peer mediation and conflict resolution activities.
(4)	A statement of whether and to what extent the local board of education intends to contract with local, private, nonprofit 501(c)(3) corporations to staff, operate, or otherwise provide services for one or more elements of the plan.  Local boards are encouraged to contract for services, when appropriate.
(5)	A statement of (i) how the grant funds would be used to address these local problems, (ii) what other resources, including Safe Schools Grants, Chapter 1 funds, Chapter 2 block grant funds, dropout prevention funds, Basic Education Program funds, remediation funds, small school system supplemental funds, and low-wealth counties supplemental funds, would be used to address the problems, and (iii) how all available community resources and the components of the proposed plan would be coordinated to enhance the effectiveness of existing services and of services proposed in the plan.
(6)	A statement of how the proposed plan would assist a local school administrative unit in implementing the local school improvement plan.
(7)	A process for assessing on an annual basis the success of the local plan in addressing problems.
"§ 115C-238.42.  Review of applications.
(a)	The Superintendent of Public Instruction shall appoint a State task force to assist the Superintendent in reviewing grant applications.  The State task force shall include representatives of the Department of Public Instruction, the Department of Human Resources, local school administrative units, educators, parents, the juvenile justice system, social services, and governmental agencies providing services to children, and other members the Superintendent considers appropriate.  In reviewing grant applications, the Superintendent and the State task force shall consider the prevalence of underserved students and families in low-income neighborhoods and in isolated rural areas in the area for which the grant is requested, the severity of the local problems with regard to children at risk of school failure and with regard to school discipline, whether the proposed program meets State standards, and the likelihood that the locally designed plan will deal with the problems successfully.
During the review process, the Superintendent may recommend modifications in grant applications to applicants.
(b)	The Superintendent shall submit recommendations to the State Board of Education on which applicants should receive grants and the amount they should receive.
"§ 115C-238.43.  Award of grants.
In selecting grant recipients, the State Board of Education shall consider (i)	the recommendations of the Superintendent (ii) the geographic location of the applicants and (iii) the demographic profile of the applicants.  The State Board shall award grants to applicants that will serve areas that have a high incidence of juvenile crime and that propose different approaches that can serve as models for other communities.
The State Board shall select the grant recipients prior to July 15, 1994, for local programs that will be in operation at the beginning of the 1994-95 school year.  The State Board shall select the grant recipients prior to October 1, 1994, for local programs that will be in operation after the beginning of the 1994-95 school year.
"§ 115C-238.44.  Requests for modifications of grants or for additional funds to implement grants.
A grant recipient may request a modification of a grant or additional funds to implement a grant through the grant application process.  The request shall be reviewed and accepted or rejected in the same manner as a grant application.
"§ 115C-238.45.  Administration of the grant program.
The Superintendent of Public Instruction shall administer the grant program, under the direction of the State Board of Education.  The Department of Public Instruction and the Department of Human Resources shall provide technical assistance to grant applicants and recipients.
"§ 115C-238.46.  Cooperation of State and local agencies.
All agencies of the State and local government, including departments of social services, health departments, local mental health, mental retardation, and substance abuse authorities, court personnel, law enforcement agencies, The University of North Carolina, the community college system, and cities and counties, shall cooperate with the Department of Public Instruction, local boards of education, and local nonprofit corporations that receive grants in coordinating the program at the State level and in implementing the program at the local level.  The Superintendent, after consultation with the Secretary of Human Resources, shall develop a plan for ensuring the cooperation of State agencies and local agencies, and encouraging the cooperation of private entities, especially those receiving State funds, in the coordination and implementation of the program.
"§ 115C-238.47.  Reporting requirements.
The State Board of Education shall report to the General Assembly prior to June 1, 1994, on grant applications received prior to June 1, 1994, and prior to January 1, 1995, on grant applications received prior to January 1, 1995.
The State Board of Education shall report to the Joint Legislative Education Oversight Committee prior to January 15 of each year on (i)	how the funds appropriated by the General Assembly for the program are being used, (ii) additional funds required to implement the program, and (iii) any necessary modifications to the program."
(c)	The Department of Public Instruction shall use funds within its budget for travel and for supplies and materials for the 1993-94 fiscal year to implement subsection (b) of this section of this act prior to July 1, 1994.
(d)	Subsection (a) of this section becomes effective July 1, 1994.  The remainder of this section is effective upon ratification.

COMMUNITY-BASED ALTERNATIVES FUNDS
Sec. 30.  (a)	Of the funds appropriated to the Department of Human Resources, Division of Youth Services, in this act, the sum of five million dollars ($5,000,000) for the 1994-95 fiscal year shall be used to expand Community-Based Alternatives services. Of these funds, four million dollars ($4,000,000) shall be allocated per capita among the counties, based on the number of children in the county between the ages of 10 and 17, and one million dollars ($1,000,000) shall be allocated evenly among all counties.
To receive these funds, the county shall develop and submit to the Division of Youth Services for approval a plan for the use of these additional funds.  The plan shall provide for the county to use funds appropriated in this section to purchase care or services from local, private, nonprofit 501(c)(3) corporations and housing authorities providing delinquency prevention programs or community-based services.  The plan shall emphasize the provision of services for children against whom a complaint of delinquency has been made, regardless of whether the juvenile was diverted to a community resource or adjudicated delinquent.
As a prerequisite for receiving these additional Community-Based Alternatives funds, the county board of commissioners shall annually update the membership of the existing Community-Based Alternatives Youth Services Advisory Committee to ensure that appropriate membership is maintained.
The Community-Based Alternatives Youth Services Advisory Committee shall annually review the needs of troubled youth and submit a written plan of action to the county board of commissioners for approval.  In those counties that have a commitment rate above one person per thousand, the plan shall describe how these funds will be used to reduce the county commitment rate.  In those counties that have a commitment rate at or less than one per thousand, the plan shall specify how the funds will be used to maintain or reduce the commitment rate.  The approved plan shall then be submitted to the Division of Youth Services for approval.
(b)	As vacancies occur on Community Based Alternatives Youth Services Advisory Committees, or as new committees are appointed, the committee membership shall be reflective of the racial and socioeconomic diversity of the community.

PART 14.  CAPITAL IMPROVEMENT PROVISIONS

Requested by:  Representatives Nesbitt and Diamont
RESERVE FOR ADVANCE PLANNING
Sec. 31.  The Office of State Budget and Management shall report to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division on how it intends to spend funds from the Reserve for Advance Planning at least 45 days before it spends the funds.
	The Office of State Budget and Management shall also report the results of any project on which it uses funds from the Reserve for Advance Planning to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division.

Requested by:  Representatives Nesbitt and Diamont
ENCUMBERED APPROPRIATIONS AND PROJECT RESERVE FUND
Sec. 32.  When each capital improvement project appropriated by the 1994 Extra Session of the General Assembly, other than those projects under the Board of Governors of The University of North Carolina, is placed under construction contract, direct appropriations shall be encumbered to include all costs for construction, design, investigation, administration, movable equipment, and a reasonable contingency.  Unencumbered direct appropriations remaining in the project budget shall be placed in a project reserve fund credited to the Office of State Budget and Management.  Funds in the project reserve may be used for emergency repair and renovation projects at State facilities with the approval of the Director of the Budget.  The project reserve fund may be used, at the discretion of the Director of the Budget, to allow for award of contracts where bids exceed appropriated funds, if those projects supplemented were designed within the scope intended by the applicable appropriation or any authorized change in it, and if, in the opinion of the Director of the Budget, all means to award contracts within the appropriation were reasonably attempted.  At the discretion of the Director of the Budget, any balances in the project reserve fund shall revert to the original source.

Requested by:  Representatives Nesbitt and Diamont
PROJECT COST INCREASE
Sec. 33.  Upon the request of the administration of a State department or institution, the Director of the Budget may, when in the Director's opinion it is in the best interest of the State to do so, increase the cost of a capital improvement project.  Provided, however, that if the Director of the Budget increases the cost of a project, the Director shall report that action to the Joint Legislative Commission on Governmental Operations at its next meeting.  The increase may be funded from gifts, federal or private grants, special fund receipts, excess patient receipts above those budgeted at University of North Carolina Hospitals at Chapel Hill, or direct capital improvement appropriations to that department or institution.

Requested by:  Representatives Nesbitt and Diamont
NEW PROJECT AUTHORIZATION
Sec. 34.  Upon the request of the administration of any State department or institution, the Director of the Budget may authorize the construction of a capital improvement project not specifically authorized by the General Assembly if this project is to be funded by gifts, federal or private grants, special fund receipts, excess patient receipts above those budgeted at University of North Carolina Hospitals at Chapel Hill, or self-liquidating indebtedness.  If the Director of the Budget authorizes the construction of such a capital improvement project, the Director shall report that action to the Joint Legislative Commission on Governmental Operations at its next meeting.

Requested by:  Representatives Nesbitt and Diamont
ADVANCE PLANNING OF CAPITAL IMPROVEMENT PROJECTS
Sec. 35.  Funds that become available by gifts, excess patient receipts above those budgeted at University of North Carolina Hospitals at Chapel Hill, federal or private grants, receipts becoming a part of special funds by act of the General Assembly, or any other funds available to a State department or institution may be utilized for advance planning through the working-drawing phase of capital improvement projects, upon approval of the Director of the Budget.  The Director of the Budget may make allocations from the Advance Planning Fund for advance planning through the working-drawing phase of capital improvement projects, except that this revolving fund may not be utilized by the Board of Governors of The University of North Carolina or the State Board of Community Colleges.

Requested by:  Representatives Nesbitt and Diamont
APPROPRIATIONS LIMITS/REVERSION OR LAPSE
Sec. 36.  Except as permitted in previous sections of this act, the appropriations for capital improvements made by the 1994 Extra Session of the 1993 General Assembly may be expended only for specific projects set out by the 1994 Extra Session of 1993 the General Assembly and for no other purpose.  Construction of all capital improvement projects enumerated by the 1994 Extra Session of the 1993 General Assembly shall be commenced, or self-liquidating indebtedness with respect to them shall be incurred no later than the end of the 1993-95 biennium.  If construction contracts on those projects have not been awarded or self-liquidating indebtedness has not been incurred within that period, the direct appropriation for those projects shall revert to the original source, and the self-liquidating appropriation shall lapse; except that direct appropriations may be placed in a reserve fund as authorized in this act.  This deadline with respect to both direct and self-liquidating appropriations may be extended with the approval of the Director of the Budget up to an additional 12 months if circumstances and conditions warrant such extension.

Requested by:  Representatives Nesbitt and Diamont
CONSTRUCTION FUND LIMITATIONS
Sec. 37. (a)	With respect to funds appropriated in this act for construction of additional prison beds at Piedmont, Lumberton, Pender, Wayne, and Brown Creek, the Director of the Budget may increase or decrease the amount allocated to a particular institution within the aggregate amount of construction funds available.
(b)	With respect to funds appropriated to the Department of Administration for capital improvements and to the Department of Human Resources for construction of a detention center, the Office of State Construction of the Department of Administration may contract for and supervise all aspects of administration, technical assistance, design, construction, or demolition of facilities in order to implement the providing of facilities under the provisions of this act.
The facilities authorized under this act shall be constructed in accordance with the provisions of general law applicable to the construction of State facilities.  If the Secretary of Administration, after consultation with the Secretary of Correction, or with the Secretary of Human Resources, as applicable, finds that the delivery of facilities must be expedited for good cause, the Office of State Construction of the Department of Administration shall be exempt from the following statutes and rules implementing those statutes, to the extent necessary to expedite delivery: G.S. 143-135.26, 143-128, 143-129, 143-131, 143-132, 143-134, 113A-1 through 113A-10, 113A-50 through 113A-66, 133-1.1(g), and 143-408.1 through 143-408.7.
Prior to exercising the exemptions allowable under this section, the Secretary of Administration shall give reasonable notice in writing of the Department's intent to exercise the exemptions to the Speaker of the House of Representatives, the President Pro Tempore of the Senate, the Chairs of the House and Senate Appropriations Committees, the Chairs of the House and Senate Appropriations Subcommittees on Justice and Public Safety, and the Fiscal Research Division.  The written notice shall contain at least the following information: (i) the specific statutory requirement or requirements from which the Department intends to exempt itself; (ii) the reason the exemption is necessary to expedite delivery of facilities; (iii) the way in which the Department anticipates the exemption will expedite the delivery of facilities; and (iv) a brief summary of the proposed contract for the project that is to be exempted.
The Office of State Construction of the Department of Administration shall have a verifiable ten percent (10%) goal for participation by minority- and women-owned businesses.  All contracts for the design, construction, or demolition of facilities shall include a penalty for failure to complete the work by a specified date.
The Office of State Construction of the Department of Administration shall involve the Department of Correction or the Department of Human Resources, as applicable, in all aspects of the projects to the extent that such involvement relates to the appropriate Department's program needs and to its responsibility for the care of the prison or juvenile population.
(c)	The Office of State Construction of the Department of Administration shall provide quarterly reports to the Chairs of the Appropriations Committee and the Base Budget Committee in the Senate, the Chairs of the Appropriations Committee in the House of Representatives, the Joint Legislative Commission on Governmental Operations, and the Fiscal Research Division as to any changes in projects and allocations made under this act.  The report shall include any changes in the projects and allocations made pursuant to this act, information on which contractors have been selected, what contracts have been entered into, the projected and actual occupancy dates of facilities contracted for, the number of beds to be constructed on each project, the location of each project, and the projected and actual cost of each project.
The Department of Insurance and the Department of Correction shall report quarterly to the Joint Legislative Commission on Governmental Operations on their involvement in the construction program.

PART 15.  MISCELLANEOUS PROVISIONS

Requested by:  Representatives Nesbitt and Diamont
EFFECT OF HEADINGS
Sec. 38.  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.

Requested by:  Representatives Nesbitt and Diamont
EXECUTIVE BUDGET ACT REFERENCE
Sec. 39.  The provisions of the Executive Budget Act, Chapter 143, Article 1 of the General Statutes, are reenacted and shall remain in full force and effect and are incorporated in this act by reference.

Requested by:  Representatives Nesbitt and Diamont
MOST TEXT APPLIES ONLY TO 1993-95 BIENNIUM
Sec. 40.  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.

Requested by:  Representatives Nesbitt and Diamont
SEVERABILITY CLAUSE
Sec. 41.  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.

Requested by:  Representatives Nesbitt and Diamont 
1993-94 APPROPRIATIONS LIMITATIONS AND DIRECTIONS APPLY
Sec. 42.  Except where expressly repealed or amended by this act, the provisions of Chapters 321 and 561 of the 1993 Session Laws remain in effect.  Section 9 of Chapter 321 of the 1993 Session Laws does not apply to this act.

Requested by:  Representatives Nesbitt and Diamont
EFFECTIVE DATE
Sec. 43.  Except as otherwise provided, this act is effective upon ratification.