GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1995

H	2 

HOUSE BILL 230
Committee Substitute Favorable 6/29/95

Short Title:  '95 Expansion/Cap. Approp.	(Public)

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Sponsors:

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Referred to:  

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February 21, 1995

A BILL TO BE ENTITLED
AN ACT TO APPROPRIATE FUNDS TO PROVIDE EXPANSION EXPENDITURES AND CAPITAL IMPROVEMENTS FOR STATE DEPARTMENTS, INSTITUTIONS, AND AGENCIES, AND FOR OTHER PURPOSES.
The General Assembly of North Carolina enacts:

PART 1.  INTRODUCTION AND TITLE OF ACT

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. 1.1.  This act shall be known and cited as "The Expansion and Capital Improvements Appropriations Act of 1995".

PART 2.  EXPANSION - RECURRING/GENERAL FUND

Sec. 2.  Appropriations of recurring funds from the General Fund of the State for the expansion of the State departments, institutions, and agencies, and for other purposes as enumerated are made for the biennium ending June 30, 1997, according to the schedule that follows.   Amounts set out in brackets are reductions from General Fund appropriations for the 1995-96 and 1996-97 fiscal years.

Expansion - Recurring - General Fund	1995-96 1996-97

General Assembly	$  303,592 $  303,850

Judicial	1,333,391 1,334,003

Office of the Governor
01.	Office of the Governor	73,608 118,383
02.	Office of State Budget
and Management	450,000 450,000

Department of Secretary of State	201,537 201,537

Department of Public Education	(17,996,934) 10,665,341

Department of Justice	543,752 607,976

Department of Administration	348,704 348,704

Department of Labor	36,000 39,348

Department of Insurance	985,000 485,000

Department of Environment, Health,
and Natural Resources	139,774 139,774

Office of Administrative Hearings	101,396 101,396

Department of Human Resources
01.	Division of Child Development	442,372 555,171
02.	Division of Services for the
Deaf and Hard of Hearing	500,000 1,500,000
03.	Division of Social Services	937,988 746,437
04.	Division of Services for the Blind	250,000 250,000
05.	Division of Mental Health,
Developmental Disabilities, and
Substance Abuse Services	13,000,000 17,000,000
06.	Division of Youth Services	1,891,371 2,343,001

Total Department of Human Resources	17,021,731 22,394,619

Department of Correction	9,777,348 34,604,704

Department of Commerce	140,000 140,000

Department of Revenue	3,265,811 3,040,615

Department of Cultural Resources	638,173 784,757

Department of Crime Control and
Public Safety	140,042 139,372

Office of State Controller	1,474,842 1,593,851

State Board of Elections	1,000 1,000

Debt Service	15,031,552 24,369,052

Reserve for Compensation Increase	101,286,570 101,286,570

Reserve for Data Processing	2,000,000 2,500,000

Reserve for H168 Child Support Changes	170,000 170,000

Department of Community Colleges	27,747,055 27,747,055

GRAND TOTAL CURRENT OPERATIONS
GENERAL FUND RECURRING	165,213,944 233,566,907

PART  3.  EXPANSION - NONRECURRING/GENERAL FUND

EXPANSION - NONRECURRING/GENERAL FUND
Sec. 3.  Appropriations of nonrecurring funds from the General Fund of the State for the expansion of the State departments, institutions, and agencies, and for other purposes as enumerated are made for the biennium ending June 30, 1997, according to the schedule that follows.  Amounts set out in brackets are reductions from General Fund appropriations for the 1995-96 and 1996-97 fiscal years.

Expansion - Nonrecurring-
- General Fund	1995-96 1996-97

General Assembly	$   289,300   –  

Judicial	2,083,824 480

Office of the Governor
01.	Office of the Governor	359,571   –  
02.	Office of State Budget
and Management	75,000   –  

Department of Secretary of State	10,700   –  

Department of Public Education	27,815,370   –  

Department of Justice	561,989 295,294

Department of Administration	216,735   –  

Department of Insurance	15,000   –  

Department of Environment, Health,
and Natural Resources	1,546,000   –  

Office of Administrative Hearings	8,600   –  

Department of Human Resources
01.	Division of Child Development	1,000,000   –  
02.	Division of Social Services	465,477   –  
03.	Division of Mental Health,
Developmental Disabilities, and
Substance Abuse Services	  –   500,000

Total Department of Human Resources	1,465,477 500,000

Department of Correction	3,214,273   –  

Department of Commerce
01.	Department of Commerce	10,450,000   –  
02.	Microelectronics Center	(1,000,000)   –  

Department of Revenue	8,040,412 116,600

Department of Cultural Resources	6,371,326   –  

Department of Crime Control
and Public Safety	307,432   –  

Office of State Controller	10,282,457   –  

State Board of Elections	70,000 3,500,000

Reserve for Compensation Increase	3,521,609   –  

Department of Community Colleges	20,826,317   –  

Reserve for H5 Welfare Reform	335,000 60,000

Reserve for H168 Child Support Changes	399,300   –  

GRAND TOTAL - CURRENT OPERATIONS –
GENERAL FUND NONRECURRING	$97,265,692  $4,472,374

PART 4.  CAPITAL IMPROVEMENTS - GENERAL FUND

Sec. 4.  The appropriations made by the 1995 General Assembly for capital improvements are for constructing, repairing, or renovating State buildings, utilities, and other capital facilities, for acquiring sites for them where necessary, and for acquiring buildings and land for State government purposes.

Sec. 4.1.  Appropriations from the General Fund for the 1995-96 fiscal year for use by the State departments, institutions, and agencies to provide for capital improvement projects according to the following schedule:

	1995-96 1996-97

Board of Governors - North Carolina
School of Arts
01.	Student Activity Center	$   2,566,000   –  

Board of Governors - UNC Charlotte
02.	Construction of Library Addition	10,571,500 10,000,000

Board of Governors - Appalachian State
University
03.	Convocation Center Construction	10,000,000 10,601,100

Board of Governors - North Carolina
State University
04.	Agricultural Program
Reserve for 4-H Camp improvements	500,000   –  
05.	School of Agriculture	6,000,000   –  

Board of Governors - UNC Wilmington
06.	Construction of Marine Science
Building	8,000,000 8,000,000

Board of Governors
07.	Reserve for Land Acquisition	1,000,000   –  

Department of Administration
01.	Veterans Home Reserve	660,000   –  

Department of Correction
01.	Construct Segregation Unit in
Greene County	2,720,500   –  
02.	Construction of New Beds	54,486,400   –  
03.	Construct Electronic Intrusion
System - NCCIW	813,700   –  

Department of Human Resources -
Deaf Services
01.	Eastern N.C. School for Deaf –
a.	Phase II of the Student
Activity/Recreation complex	1,500,000   –  

Department of Human Resources - Youth Services
02.	Permanent Facility for Leonard
Secure Unit	248,000   –  
03.	Detention Center in Gaston County	270,000   –  
04.	Detention Center in Northeastern NC	1,800,000   –  

Department of Justice - 
01.	Western Justice Academy - Design, plan,
and purchase real property
(Henderson County)	1,470,000   –  

Department of Environment, Health,
and Natural Resources
01.	Forestry Headquarters –
Reserve for replacement of facilities at
county and district headquarters sites	1,500,000   –  
02.	Parks Reserve - land acquisition,
	construction, and site development at
State parks only	10,000,000   –  
03.	Water Resources Development Projects -
State share of civil works projects for
navigation, flood control, drainage,
	stream restoration, aquatic weed control,
water-based recreation, beach protection,
and small watershed grants	2,065,000   –  

Office of State Budget
01.	Reserve for cleanup of hazardous
waste sites	4,000,000   –  

TOTAL CAPITAL IMPROVEMENTS –
GENERAL FUND	$  120,171,100 $  28,601,100

PART 4A.  EXPANSION/CAPITAL/HIGHWAY FUND

Sec. 4A.  Appropriations of funds from the Highway Fund of the State for the expansion of the Department of Transportation are made for the biennium ending June 30, 1997, and for capital improvements for the 1995-96 fiscal year, according to the following schedule.  Amounts set out in brackets are reductions from Highway Fund appropriations for the 1995-96 and 1996-97 fiscal years.
	1995-96	1996-97
A. EXPANSION PROJECTS

1.	Department of Transportation
Administration	$7,589,537 $8,146,463
2.	Division of Highways
a.  Administration and 
    Operations	102,849 102,849
b.  State Construction
    01.  State Urban System	1,100,000 1,100,000
    02.  Spot Safety Improvements	900,000 900,000
c.  State Maintenance
    01.  Primary Maintenance	3,217,633 4,000,000
    02.  Urban System	5,420,000 5,420,000
    03.  Contract Resurfacing	5,000,000 7,603,346
3.	Division of Motor Vehicles	2,874,206 2,332,504
4.	State Aid for Public
Transportation 	5,800,000 5,800,000
5.	Reserve for Asphalt Plant
Cleanup	1,000,000 1,000,000
6.	Reserve for Pay Increase	7,914,055 7,914,055
Appropriations to Other State 
Agencies
a.  Department of Revenue	312,374 312,374
b.  LUST Trust Fund	(312,374) (312,374)
c.  General Assembly	200,000 -

Total	$41,118,280 $44,319,217

B. CAPITAL IMPROVEMENTS PROJECTS
1.	Roof Replacements Statewide	$  432,900
2.	HVAC Replacements Statewide -
DMV	123,800
3.	Safety Upgrades Statewide - DMV	123,800
4.	Fire Alarm Renovations
Materials and Test Lab,
Raleigh, NC	72,800
5.	Parking Lot Repairs Statewide -
DMV	133,700
6.	Roadside Environmental Warehouse
Sylva, NC	463,000
7.	District Engineer's Office
Marion, NC	590,000
8.	DMV/SHP Supplemental Funding
Durham, NC	69,890
9.	DMV/SHP Supplemental Funding
Salisbury, NC	110,000
10.	Equipment Shop
Washington, NC	916,000
11.	Equipment Shop
Wentworth, NC	911,000
12.	Equipment Shop
Kinston, NC	916,000
13.	Equipment Shop
Meadows, NC	913,000
14.	Materials and Test Lab
Asheville, NC	389,000
15.	DMV/SHP Addition and Renovation
Morganton, NC	272,700
16.	Exterior Renovation, Transportation
Building, Raleigh, NC	169,900
17.	Building and Land Purchase
Williamston, NC	368,000
18.	Electrical Upgrades Transportation
Building, Raleigh, NC	1,922,100

Total	$8,897,590

Fuel Tank Replacement - State Highway Patrol
Provides funds for replacement of fuel
tanks at 15 sites @ $32,000 per site and
$20,000 for testing equipment.	$  500,000

Total	$  500,000

PART 4B.  BUDGET AVAILABILITY STATEMENT REVISED

Requested by:  Representatives Holmes, Creech, Esposito
Sec. 4B.  Section 5 of Chapter 324 of the 1995 Session Laws reads as rewritten:
"	Sec. 5.  The General Fund and availability used in developing the 1995-97 budget is as shown below:
(1)	Composition of the 1995-97 beginning availability:
a.	Revenue collections in 1994-95 in	($ Million)
	excess of authorized estimates	$192.00
b.	Unexpended appropriations
	during 1994-95 (reversions)	162.40
c.	Balance brought forward	      33.40
	  Subtotal	387.80
d.	Transfer to Savings Reserve	96.90
e.	Transfer to Reserve
	for Repair and
	Renovations	     125.00
	Ending Fund Balance	$ 165.9 

	($ Million)	($ Million)
	1995-96	1996-97
(2)	Beginning Unrestricted
Fund Balance		$ 165.9	$      - 

(3)	Revenues Based on Existing Tax
Structure		10,019.6	10,658.1

(4)	94-95 Reserve for Tax
Reductions		28.1	  -  
Changes:

1.	Tax Reductions
(a)	Personal Income	-235.0	-244.1
(b)	Intangibles Repeal	-124.4	-124.5
(c)	House Bills Passed Third Reading
      (H396, H55, H759,
      H223, H718)	-11.9	-38.0
(d)	Reserve for H954, if
	 enacted	0	-20.0
2.	Local Sales Tax - 
Local Government Commission	1.5	1.5
3.	Insurance Regulatory Charges		
	4.7	4.2
4.	Treasurer's Banking Fees	-.7	-.7
5.	Disproportionate Share
Receipts		106.9	   117.7
6.	Investment Income Electronic
  Fund Transfers	2.0	2.0
Availability			
	$9,957.7	 $10,354.7"
PART 5.  BLOCK GRANT PROVISIONS

Requested by:  Representatives Gardner, Hayes
DHR BLOCK GRANT PROVISIONS 
Sec. 5.   (a)	Appropriations from federal block grant funds are made for the fiscal year ending June 30, 1996, according to the following schedule:

COMMUNITY SERVICES BLOCK GRANT

01.	Community Action Agencies	$  9,198,794
02.	Limited Purpose Agencies	511,044

03.	Department of Human Resources
to administer and monitor
the activities of the
Community Services Block Grant	511,044

TOTAL COMMUNITY SERVICES BLOCK GRANT	$ 10,220,882

SOCIAL SERVICES BLOCK GRANT

01.	County Departments of Social Services	$ 36,864,132

02.	Allocation for In-Home Services provided
by County Departments of
Social Services	2,101,113

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

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

05.	Division of Youth Services	1,052,674

06.	Division of Facility Services	343,341

07.	Division of Aging	336,157

08.	Day Care Services	16,194,900

09.	Office of Citizen Affairs	55,458

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

11.	Voluntary Sterilization Funds	98,710

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

13.	Adult Day Care Services	599,551

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

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

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

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

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

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

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

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

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

TOTAL SOCIAL SERVICES BLOCK GRANT	$ 74,906,900

LOW INCOME ENERGY BLOCK GRANT

01.	Energy Assistance Programs	$ 13,727,365

02.	Crisis Intervention	4,924,615

03.	Administration	1,834,677

04.	Weatherization Program	3,621,041

05.	Indian Affairs	33,022

TOTAL LOW INCOME ENERGY BLOCK GRANT	$ 24,140,270

MENTAL HEALTH SERVICES BLOCK GRANT

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

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

03.	Administration	572,897

TOTAL MENTAL HEALTH SERVICES BLOCK GRANT	$ 6,169,895

BLOCK GRANT FOR THE PREVENTION AND 
TREATMENT OF SUBSTANCE ABUSE

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

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

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

04.	Provision of services in accordance with
the Mental Health Study Commission's
Child and Adolescent Alcohol and other
Drug Abuse Plan	5,964,093

05.	Administration	1,863,879

TOTAL BLOCK GRANT FOR PREVENTION
AND TREATMENT OF SUBSTANCE ABUSE	$ 28,381,862

CHILD CARE AND DEVELOPMENT BLOCK GRANT

01.	Child Day Care Services	$ 16,900,635

02.	Administrative Expenses and Quality
and Availability Initiatives	1,877,848

03.	Before and After School Child Care Programs
and Early Childhood Development Programs	4,694,620

04.	Quality Improvement Activities	1,564,977

TOTAL CHILD CARE AND DEVELOPMENT
BLOCK GRANT	$ 25,037,977

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

Requested by: Representatives Mitchell, Weatherly
NER BLOCK GRANT PROVISIONS
Sec. 5.1.  (a) Appropriations from federal Community Development Block Grant funds for the 1995 program year are made for the fiscal year ending June 30, 1996, according to the following schedule:

COMMUNITY DEVELOPMENT BLOCK GRANT
01.	State Administration	$  1,037,740

02.	Urgent Needs and Contingency	   2,269,350

03.	Community Empowerment	   3,000,000

04.	Economic Development	   9,077,400

05.	Community Revitalization	  29,740,250

06.	State Technical Assistance	     462,260

07.	Micro-Enterprise	1,000,000

08.	Infrastructure Survey/Planning	300,000

TOTAL COMMUNITY DEVELOPMENT
BLOCK GRANT - 1995 Program Year	$ 46,887,000

(b) Appropriations from federal Community Development Block Grant funds for the 1996 program year are made for the fiscal year ending June 30, 1996, according to the following schedule:

COMMUNITY DEVELOPMENT BLOCK GRANT
01.	State Administration	$  1,037,740

02.	Urgent Needs and Contingency	   2,269,350

03.	Community Empowerment	   3,000,000

04.	Economic Development	   9,077,400

05.	Community Revitalization	  29,740,250

06.	State Technical Assistance	     462,260

07.	Micro-Enterprise	1,000,000

08.	Infrastructure Survey/Planning	300,000

TOTAL COMMUNITY DEVELOPMENT
BLOCK GRANT - 1996 Program Year	$ 46,887,000

(c) Appropriations from federal block grant funds other than the Community Development Block Grant are made for the fiscal year ending June 30, 1996, according to the following schedule:

TOTAL JOB TRAINING PARTNERSHIP ACT	$ 34,444,705

MATERNAL AND CHILD HEALTH SERVICES

01.	Healthy Mother/Healthy Children
	Block Grants to Local Health
	Departments	$ 11,303,377

02.	High Risk Maternity Clinic Services,
	Perinatal Education and Training, SIDS,
	and Consultation/Technical Assistance	1,810,112

03.	Services to Children with Special Health
	Care Needs	5,065,331

04.	Nutrition Services	120,530

TOTAL MATERNAL AND CHILD
HEALTH SERVICES	$ 18,299,350

PREVENTIVE HEALTH BLOCK GRANT

01.	Emergency Medical Services	$     452,375

02.	Basic Public Health Services	      180,753

03.	Hypertension Programs	      773,203

04.	Statewide Health Promotion Programs	    2,689,553

05.	Dental Health for Fluoridation
	of Water Supplies	      228,404

06.	Rape Prevention and Rape
	Crisis Programs	      183,632

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

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

09.	Administrative & Indirect Cost	317,160

TOTAL PREVENTIVE HEALTH BLOCK GRANT	$   5,096,081

(d)	Decreases in Federal Fund Availability
For JTPA and Community Development Block Grants: If federal funds are reduced below the amounts specified above after the effective date of this act, then every program in each of these federal block grants shall be reduced by the same percentage as the reduction in federal funds.
For the Maternal and Child Health Services and Preventive Health Services federal block grants: If federal funds are reduced less than ten percent (10%) below the amounts specified above after the effective date of this act, then every program in the Maternal and Child Health Services and in the Preventive Health Services block grants shall be reduced by the same percentage as the reduction in federal funds. If federal funds are reduced by ten percent (10%) or more below the amounts specified above after the effective date of this act, then for the Maternal and Child Health Services and the Preventive Health Services block grants the Department of Environment, Health, and Natural Resources shall allocate the decrease in funds after considering the effectiveness of the current level of services.
(e)  Increases in Federal Fund Availability
Any block grant funds appropriated by the United States Congress in addition to the funds specified in this act shall be expended as follows:
(1)	For the Community Development Block Grant – each program category under the Community Development Block Grant shall be increased by the same percentage as the increase in federal funds.
(2)	For the Maternal and Child Health Services Block Grant – if federal funds are increased by ten percent (10%) or more, then the Department shall allocate the increase in funds after considering the effectiveness of the current level of services and the effectiveness of services to be funded by the increase.  If federal funds are increased by less than ten percent (10%), then thirty percent (30%) of these additional funds shall be allocated to services for children with special health care needs and seventy percent (70%) shall be allocated to local health departments to assist in the reduction of infant mortality.
(3)	For the Preventive Health Block Grants – if federal funds are increased by ten percent (10%) or more, then the Department shall allocate the increase in funds after considering the effectiveness of the current level of services and the effectiveness of services to be funded by the increase.  If federal funds are increased by less than ten percent (10%), then these additional funds may be budgeted by the appropriate department, with the approval of the Office of State Budget and Management, provided the resultant increases are in accordance with federal block grant requirements and are within the scope of the block grant plan approved by the General Assembly. 
(f) Changes to budgeted allocations to the Maternal and Child Health Services and the Preventive Health Services block grants due to increases or decreases in federal funds shall be reported to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division within 30 days of the allocation.  All other increases shall be reported to the Joint Legislative Commission on Governmental Operations and to the Director of the Fiscal Research Division.
(g)  Education Setaside of JTPA Funds
The Department of Commerce shall certify to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office when Job Training Partnership Act funds have been distributed to each agency, the total amount distributed to each agency, and the total amount of eight percent (8%) Education Setaside funds received.
(h)  Limitations on Community Development Block Grant Funds
Of the funds appropriated in this section for the Community Development Block Grant, the following shall be allocated in each category for each program year: up to one million thirty-seven thousand seven hundred forty dollars ($1,037,740) may be used for State administration; up to two million two hundred sixty-nine thousand three hundred fifty dollars ($2,269,350) may be used for Urgent Needs and Contingency; up to three million dollars ($3,000,000) may be used for Community Empowerment; up to nine million seventy-seven thousand four hundred dollars ($9,077,400) may be used for Economic Development; not less than twenty-nine million seven hundred forty thousand two hundred fifty dollars ($29,740,250) shall be used for Community Revitalization; up to four hundred sixty-two thousand two hundred sixty dollars ($462,260) may be used for State Technical Assistance; up to one million dollars ($1,000,000) may be used for Micro-Enterprise; and up to three hundred thousand dollars ($300,000) may be used for Infrastructure Survey/Planning.  If federal block grant funds are reduced or increased by the United States Congress after the effective date of this act, then these reductions or increases shall be allocated in accordance with subsection (d) or (e) of this section, as applicable.

PART 6.  GENERAL PROVISIONS

Requested by:  Representatives Holmes, Creech, Esposito
BUDGETING OF PILOT PROGRAMS
Sec. 6.  (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 his proposed budget a report of which items in the proposed budget are subject to the provisions of this section.

PART 7. SALARIES AND BENEFITS

Requested by:  Representatives Holmes, Creech, Esposito
GOVERNOR/COUNCIL OF STATE/SALARY INCREASES
Sec. 7.1.  (a)	G.S. 147-11(a) reads as rewritten:
"(a)	The salary of the Governor shall be ninety-nine thousand five hundred fifty-two dollars ($99,552) annually, payable monthly."
(b)	The annual salaries for the members of the Council of State, payable monthly, for the 1995-96 and 1996-97 fiscal years are:

Council of State	Annual Salary

Lieutenant Governor	$88,740
Attorney General	88,740
Secretary of State	88,740
State Treasurer	88,740
State Auditor	88,740
Superintendent of Public Instruction	88,740
Agriculture Commissioner	88,740
Insurance Commissioner	88,740
Labor Commissioner	88,740

Requested by:  Representatives Holmes, Creech, Esposito
NONELECTED DEPARTMENT HEAD/SALARY INCREASES
Sec. 7.2.  In accordance with G.S. 143B-9, the maximum annual salaries, payable monthly, for the nonelected heads of the principal State departments for the 1995-96 and 1996-97 fiscal years are:

Nonelected Department Heads	Annual Salary

Secretary of Administration	$86,700
Secretary of Correction	86,700
Secretary of Cultural Resources	86,700
Secretary of Commerce	86,700
Secretary of Environment, Health, and Natural Resources	86,700
Secretary of Human Resources	86,700
Secretary of Revenue	86,700
Secretary of Transportation	86,700

Requested by:  Representatives Holmes, Creech, Esposito
CERTAIN EXECUTIVE BRANCH OFFICIALS/SALARY INCREASES
Sec. 7.3.  The annual salaries, payable monthly, for the 1995-96 and 1996-97 fiscal years for the following executive branch officials are:

Executive Branch Officials	Annual Salary

Chairman, Alcoholic Beverage Control Commission	$ 78,912
State Controller	110,436
Commissioner of Motor Vehicles	78,912
Commissioner of Banks	78,912
Chairman, Employment Security Commission	78,912
State Personnel Director	86,700
Chairman, Parole Commission	72,056
Members of the Parole Commission	66,524
Chairman, Industrial Commission	70,900
Members of the Industrial Commission	69,173
Chairman of the Utilities Commission	83,009
Commissioner of the Utilities Commission	81,989
Executive Director, Agency for Public Telecommunications	66,524
General Manager, Ports Railway Commission	60,071
Director, Museum of Art	80,859
Executive Director, Wildlife Resources Commission	68,108
Executive Director, North Carolina Housing Finance Agency	97,661
Executive Director, North Carolina Agricultural Finance Authority 76,808
Director, Office of Administrative Hearings	78,030

Requested by:  Representatives Holmes, Creech, Esposito
JUDICIAL BRANCH OFFICIALS/SALARY INCREASE
Sec. 7.4.  (a)	The annual salaries, payable monthly, for specified judicial branch officials for the 1995-96 and 1996-97 fiscal years are:

Judicial Branch Officials	Annual Salary

Chief Justice, Supreme Court	$99,552
Associate Justice, Supreme Court	97,920
Chief Judge, Court of Appeals	95,472
Judge, Court of Appeals	93,840
Judge, Senior Regular Resident Superior Court	91,290
Judge, Superior Court	88,740
Chief Judge, District Court	80,580
Judge, District Court	78,030
District Attorney	82,212
Administrative Officer of the Courts	91,290
Assistant Administrative Officer of the Courts	76,663
Public Defender	82,212

(b)	The district attorney or public defender of a judicial district, with the approval of the Administrative Officer of the Courts, shall set the salaries of assistant district attorneys or assistant public defenders, respectively, in that district such that the average salaries of assistant district attorneys or assistant public defenders in that district do not exceed forty-nine thousand five hundred eighty dollars ($49,580), and the minimum salary of any assistant district attorney or assistant public defender is at least twenty-five thousand three hundred twelve dollars ($25,312) effective July 1, 1995.
(c)	The salaries in effect for the 1994-95 fiscal year for permanent, full-time employees of the Judicial Department, except for those whose salaries are itemized in this Part, shall be increased by two percent (2%), commencing July 1, 1995.
(d)	The salaries in effect for the 1994-95 fiscal year for all permanent, part-time employees of the Judicial Department shall be increased on and after July 1, 1995, by pro rata amounts of the two percent (2%).

Requested by:  Representatives Holmes, Creech, Esposito
CLERK OF SUPERIOR COURT SALARY DETERMINATION/INCREASE
Sec. 7.5.  G.S. 7A-101(a) reads as rewritten:
"(a)	The clerk of superior court is a full-time employee of the State and shall receive an annual salary, payable in equal monthly installments, based on the population of the county as determined in subsection (a1) of this section, according to the following schedule:

Population	Annual Salary

Less than 100,000		$58,823  
100,000 to 149,999		66,076  
150,000 to 249,999		73,328  
250,000 and above		80,580.

The salary schedule in this subsection is intended to represent the following percentage of the salary of a chief district court judge:

Less than 100,000	73%
100,000 to 149,999	82%
	150,000 to 249,999	91%
250,000 and above	100%.

When a county changes from one population group to another, the salary of the clerk shall be changed, on July 1 of the fiscal year for which the change is reported, to the salary appropriate for the new population group, except that the salary of an incumbent clerk shall not be decreased by any change in population group during the clerk's continuance in office."

Requested by:  Representatives Holmes, Creech, Esposito
ASSISTANT AND DEPUTY CLERKS OF COURT/SALARY INCREASE
Sec. 7.6. (a)	G.S. 7A-102(c1) reads as rewritten:
"(c1)	A full-time assistant clerk or a full-time deputy clerk, and up to one full-time deputy clerk serving as head bookkeeper per county, shall be paid an annual salary subject to the following minimum and maximum rates:

Assistant Clerks and Head Bookkeeper	Annual Salary

Minimum		$21,549
Maximum		38,154

Deputy Clerks	Annual Salary
Minimum		$17,229
Maximum		29,389."
(b) G.S. 7A-102(c) reads as rewritten:
"(c)	Notwithstanding the provisions of subsection (a), the Administrative Officer of the Courts shall establish an incremental salary plan for assistant clerks and for deputy clerks based on a series of salary steps corresponding to the steps contained in the Salary Plan for State Employees adopted by the Office of State Personnel, subject to a minimum and a maximum annual salary as set forth below. On and after July 1, 1985, each assistant clerk and each deputy clerk shall be eligible for an annual step increase in his salary plan based on satisfactory job performance as determined by each clerk. Notwithstanding the foregoing, if an assistant or deputy clerk's years of service in the office of superior court clerk would warrant an annual salary greater than the salary first established under this section, that assistant or deputy clerk shall be eligible on and after July 1, 1984, for an annual step increase in his salary plan. Furthermore, on and after July 1, 1985, that assistant or deputy clerk shall be eligible for an increase of two steps in his salary plan, and shall remain eligible for a two-step increase each year as recommended by each clerk until that assistant or deputy clerk's annual salary corresponds to his number of years of service. Any person covered by this subsection who would not receive a step increase in fiscal year 1995-96 because that person is at the top of the salary range as it existed for fiscal year 1994-95 shall receive a salary increase to the maximum annual salary provided by subsection (c1) of this section."

Requested by:  Representatives Holmes, Creech, Esposito
MAGISTRATES' PAY PLAN
Sec. 7.7.  (a)	G.S. 7A-171.1(a)(1) reads as rewritten:
"(1)	A full-time magistrate shall be paid the annual salary indicated in the table set out in this subdivision. A full-time magistrate is a magistrate who is assigned to work an average of not less than 40 hours a week during the term of office. The Administrative Officer of the Courts shall designate whether a magistrate is full-time. Initial appointment shall be at the entry rate.  A magistrate's salary shall increase to the next step every two years on the anniversary of the date the magistrate was originally appointed for increases to Steps 1 through 3, and every four years on the anniversary of the date the magistrate was originally appointed for increases to Steps 4 through 6.

            Table of Salaries of Full-Time Magistrates

Step Level	Annual Salary
Entry Rate		$23,417
Step 1		25,767
Step 2		28,325
Step 3		31,116
Step 4		34,173
Step 5		37,533
Step 6		41,228."
(b)	G.S. 7A-171.1(a1)(1) reads as rewritten:
"(1)	The salaries of magistrates who on June 30, 1994, were paid at a salary level of less than five  years of service under the table in effect that date shall be as follows:
Less than 1 year of service	$ 18,457
1 or more but less than 3 years of service	 19,406
3 or more but less than 5 years of service	 21,314.
		Upon completion of five years of service, those magistrates shall receive the salary set as the Entry Rate in the table in subsection (a)."

Requested by:  Representatives Holmes, Creech, Esposito
GENERAL ASSEMBLY
Sec. 7.8.  G.S. 120-3(b) reads as rewritten:
"(b)	Every other member of the General Assembly shall receive increases in annual salary only to the extent of and in the amounts equal to the average increases received by employees of the State, effective upon convening of the next Regular Session of the General Assembly after enactment of these increased amounts, except no such increase is granted upon the convening of the 1997 Regular Session of the General Assembly. Accordingly, upon convening of the 1997 Regular Session of the General Assembly, every other member of the General Assembly shall be paid an annual salary of thirteen thousand nine hundred fifty-one dollars ($13,951) payable monthly, and an expense allowance of five hundred fifty-nine dollars ($559.00) per month."

Requested by:  Representatives Holmes, Creech, Esposito
GENERAL ASSEMBLY PRINCIPAL CLERKS/SALARY INCREASES
Sec. 7.9.  G.S. 120-37(c) reads as rewritten:
"(c)	The principal clerks shall be full-time officers.  Each principal clerk shall be entitled to other benefits available to permanent legislative employees and shall be paid an annual salary of fifty-five thousand eighty dollars ($55,080) payable monthly.  The Legislative Services Commission shall review the salary of the principal clerks prior to submission of the proposed operating budget of the General Assembly to the Governor and Advisory Budget Commission and shall make appropriate recommendations for changes in those salaries.  Any changes enacted by the General Assembly shall be by amendment to this paragraph."

Requested by:  Representatives Holmes, Creech, Esposito
SERGEANT-AT-ARMS AND READING CLERKS/SALARY INCREASES
Sec. 7.10.  G.S. 120-37(b) reads as rewritten:
"(b)	The sergeant-at-arms and the reading clerk in each house shall be paid a salary of two hundred thirty-seven dollars ($237.00) per week, plus subsistence at the same daily rate provided for members of the General Assembly, plus mileage at the rate provided for members of the General Assembly for one round trip only from their homes to Raleigh and return.  The sergeants-at-arms shall serve during sessions of the General Assembly and at such time prior to the convening of, and subsequent to adjournment or recess of, sessions as may be authorized by the Legislative Services Commission.  The reading clerks shall serve during sessions only."

Requested by:  Representatives Holmes, Creech, Esposito
LEGISLATIVE EMPLOYEES/SALARY INCREASES
Sec. 7.11.  The Legislative Administrative Officer shall increase the salaries of nonelected employees of the General Assembly in effect for fiscal year 1994-95 by two percent (2%).  Nothing in this act limits any of the provisions of G.S. 120-32.

Requested by:  Representatives Holmes, Creech, Esposito
COMMUNITY COLLEGES PERSONNEL/SALARY INCREASES
Sec. 7.12.  The Director of the Budget shall transfer from the Reserve for Salary Increases created in this act for fiscal year 1995-96 funds to the Department of Community Colleges necessary to provide an average annual salary increase of two percent (2%), including funds for the employer's retirement and social security contributions, commencing July 1, 1995, for all permanent full-time community college institutional personnel supported by State funds.  The State Board of Community Colleges shall establish guidelines for providing their salary increases to community college institutional personnel.  Salary funds shall be used to provide an average annual salary increase of two percent (2%) to all full-time employees and part-time employees on a pro rata basis.

Requested by:  Representatives Holmes, Creech, Esposito
UNIVERSITY OF NORTH CAROLINA SYSTEM - EPA SALARY INCREASES
Sec. 7.13.  The Director of the Budget shall transfer to the Board of Governors of The University of North Carolina sufficient funds from the Reserve for Salary Increases created in this act for fiscal year 1995-96 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, 1995, for all employees of The University of North Carolina, as well as employees other than teachers of the North Carolina School of Science and Mathematics, supported by State funds and whose salaries are exempt from the State Personnel Act (EPA).  These funds shall be allocated to individuals according to the rules adopted by the Board of Governors, or the Board of Trustees of the North Carolina School of Science and Mathematics, as appropriate, and may not be used for any purpose other than for salary increases and necessary employer contributions provided by this section.

Requested by:  Representatives Holmes, Creech, Esposito
MOST STATE EMPLOYEES/SALARY INCREASES/1995-96
Sec. 7.14.  (a)	The salaries in effect June 30, 1995, of all permanent full-time State employees whose salaries are set in accordance with the State Personnel Act, and who are paid from the General Fund or the Highway Fund shall be increased, on or after July 1, 1995, unless otherwise provided by this act, by two percent (2%).
(b)	Except as otherwise provided in this act, salaries in effect June 30, 1995, 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 two percent (2%), commencing July 1, 1995.
(c)	The salaries in effect June 30, 1995, for all permanent part-time State employees shall be increased on and after July 1, 1995, by pro rata amounts of the salary increases provided for permanent full-time employees covered under subsection (a) of this section.
(d)	The Director of the Budget may allocate out of special operating funds or from other sources of the employing agency, except tax revenues, sufficient funds to allow a salary increase on and after July 1, 1995, in accordance with subsections (a), (b), or (c) of this section, including funds for the employer's retirement and social security contributions, of the permanent full-time and part-time employees of the agency.
(e)  Within regular Executive Budget Act procedures as limited by this act, all State agencies and departments may increase on an equitable basis the rate of pay of temporary and permanent hourly State employees, subject to availability of funds in the particular agency or department, by pro rata amounts salary increase provided for permanent full-time employees covered by the provisions of subsection (a) of this section, commencing July 1, 1995.
(f)  No person may receive a salary increase under G.S. 126-7 during the 1995-96 fiscal year, and no State employee or officer shall receive a merit increment during the 1995-96 and 1996-97 fiscal years except as otherwise provided by this act.
(g)  The provisions of this section do not apply to employees whose salaries are determined in accordance with G.S. 7A-102(c) or G.S. 20-187.3(a), except for those employees who would not receive a salary increment in the 1995-96 fiscal year under G.S. 7A-102(c) or G.S. 20-187.3(a) because they are at the top of their salary range.

Requested by:  Representatives Holmes, Creech, Esposito
ALL STATE-SUPPORTED PERSONNEL/SALARY INCREASES
Sec. 7.15.  (a)	Salaries and related benefits for positions that are funded partially from the General Fund or Highway Fund and partially from sources other than the General Fund or Highway Fund shall be increased from the General Fund or Highway Fund appropriation only to the extent of the proportionate part of the salaries paid from the General Fund or Highway Fund.
(b)	The granting of the salary increases under this act does not affect the status of eligibility for salary increments for which employees may be eligible unless otherwise required by this act.
(c)	The salary increases provided in this Part are to be effective July 1, 1995, do not apply to persons separated from State service due to resignation, dismissal, reduction in force, death, or retirement, whose last workday is prior to July 1, 1995, or to employees involved in final written disciplinary procedures.  The employee shall receive the increase on a current basis when the final written disciplinary procedure is resolved.
Payroll checks issued to employees after July 1, 1995, which represent payment of services provided prior to July 1, 1995, shall not be eligible for salary increases provided for in this act.  This subsection shall apply to all employees, subject to or exempt from the State Personnel Act, paid from State funds, including public schools, community colleges, and The University of North Carolina.
(d)	The Director of the Budget shall transfer from the Reserve for Salary Increases in this act for fiscal year 1995-96 all funds necessary for the salary increases provided by this act, including funds for the employer's retirement and social security contributions.
(e)  Nothing in this act authorizes the transfer of funds between the General Fund and the Highway Fund for salary increases.

Requested by:  Representatives Holmes, Creech, Esposito
CERTAIN PUBLIC SCHOOL EMPLOYEES' SALARY INCREASE
Sec. 7.16.  (a)	Superintendents, Assistant Superintendents, Associate Superintendents, Supervisors, Directors/Coordinators, and Finance Officers.  – The Director of the Budget may transfer from the Reserve for Salary Increases created in this act for fiscal year 1995-96 funds necessary to provide a salary increase of two percent (2%), including funds for the employer's retirement and social security contributions, commencing July 1, 1995, for all superintendents, assistant superintendents, associate superintendents, supervisors, directors, coordinators, evaluators, and program administrators whose salaries are supported from the State's General Fund.  These funds may not be used for any purpose other than for the salary increase and necessary employer contributions provided by this subsection.
(b)	Noncertified Employees. – The Director of the Budget may transfer from the Reserve for Salary Increases created in this act for fiscal year 1995-96 funds necessary to provide a salary increase of two percent (2%), including funds for the employer's retirement and social security contributions, commencing July 1, 1995, for all noncertified public school employees, except school bus drivers, whose salaries are supported from the State's General Fund.  These funds may not be used for any purpose other than for the salary increases and necessary employer contributions provided by this subsection.
(c)	The fiscal year 1994-95 pay rates adopted by local boards of education for school bus drivers shall be increased by at least two percent (2%) on and after July 1, 1995, to the extent that such rates of pay are supported by the allocation of State funds from the State Board of Education.  Local boards of education shall increase the rates of pay for all school bus drivers who were employed during fiscal year 1994-95 and who continue their employment for fiscal year 1995-96 by at least two percent (2%) on and after July 1, 1995.  The Director of the Budget may transfer from the salary increase reserve fund created in this act for fiscal year 1995-96 funds necessary to provide the salary increases for school bus drivers whose salaries are supported from the State's General Fund in accordance with the provisions of this subsection.

Requested by:  Representatives Preston, Grady
SCHOOL CENTRAL OFFICE SALARIES
Sec. 7.17.  (a) The following monthly salary ranges apply to public school superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers for the 1995-96 fiscal year:
(1)	School Administrator I:	$2,697 - $4,338
(2)	School Administrator II:	$2,862 - $4,604
(3)	School Administrator III:	$3,037 - $4,886
(4)	School Administrator IV:	$3,160 - $5,084
(5)	School Administrator V:	$3,287 - $5,290
(6)	School Administrator VI:	$3,488 - $5,614
(7)	School Administrator VII:	$3,629 - $5,841
The local board of education shall determine the appropriate category and placement for each assistant superintendent, associate superintendent, director/coordinator, supervisor, or finance officer, within the salary ranges and within funds appropriated by the General Assembly for central office administrators and superintendents.  The category in which an employee is placed shall be included in the contract of any employee hired on or after July 1, 1995.
(b) The following monthly salary ranges apply to public school superintendents for the 1995-96 fiscal year:(1)	Superintendent I (Up to 2,500 ADM):	$3,852 - $6,199
(2)	Superintendent II (2,501 - 5,000 ADM):	$4,088 - $6,578
(3)	Superintendent III (5,001 - 10,000 ADM):	$4,338 - $6,981
(4)	Superintendent IV (10,001 - 25,000 ADM):	$4,604 - $7,408
(5)	Superintendent V (Over 25,000 ADM):	$4,886 - $7,861The local board of education shall determine the appropriate category and placement for the superintendent based on the average daily membership of the local school administrative unit and within funds appropriated by the General Assembly for central office administrators and superintendents.
Notwithstanding the provisions of this subsection, a local board of education may pay an amount in excess of the applicable range to a superintendent who is entitled to receive the higher amount under Section 7.19(f) of this act.
(c) Longevity pay for superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers shall be as provided for State employees.
(d) Superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers with certification based on academic preparation at the six-year degree level shall receive a salary supplement of one hundred twenty-six dollars ($126.00) per month in addition to the compensation provided for pursuant to this section.  Superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers with certification based on academic preparation at the doctoral degree level shall receive a salary supplement of two hundred fifty-three dollars ($253.00) per month in addition to the compensation provided for under this section.
(e)  The State Board shall not permit local school administrative units to transfer State funds from other funding categories for salaries for public school central office administrators.

Requested by: Representatives Holmes, Creech, Esposito, Grady, Preston
TEACHER SALARY SCHEDULES
Sec. 7.18.  (a)	The Director of the Budget may transfer from the Reserve for Salary Increases for the 1995-96 fiscal year funds necessary to implement the teacher salary schedule set out in subsection (b) of this section, including funds for the employer's retirement and social security contributions and funds for annual longevity payments at one percent (1%) of base salary for 10 to 14 years of State service, one and one-half percent (1.5%) of base salary for 15 to 19 years of State service, two percent (2%) of base salary for 20 to 24 years of State service, and two and one-half percent (2.5%) of base salary for 25 or more years of State service, commencing July 1, 1995, for all teachers whose salaries are supported from the State's General Fund.  These funds shall be allocated to individuals according to rules adopted by the State Board of Education and the Superintendent of Public Instruction.  The longevity payment shall be paid in a lump sum once a year.
(b)(1)	Beginning July 1, 1995, the following monthly salary schedule shall apply to certified personnel of the public schools who are classified as "A"teachers.  The schedule contains 30 steps with each step corresponding to one year of teaching experience.
	Years of	1995-96
	Experience	 Salary
00	$2,062
01	2,103
02	2,145
03	2,231
04	2,276
05	2,322
06	2,368
07	2,415
08	2,463
09	2,512
10	2,562
11	2,613
12	2,665
13	2,718
14	2,772
15	2,827
16	2,884
17	2,942
18	3,001
19	3,061
20	3,122
21	3,184
22	3,248
23	3,313
24	3,379
25	3,447
26	3,516
27	3,586
28	3,658
29	3,731
30+	3,731
(2)	Beginning July 1, 1995, the following monthly salary schedule shall apply to certified personnel of the public schools who are classified as "G"teachers.  The schedule contains 30 steps with each step corresponding to one year of teaching experience.
	Years of	1995-96
	Experience	 Salary
00	$2,191
01	2,235
02	2,280
03	2,371
04	2,418
05	2,466
06	2,515
07	2,565
08	2,616
09	2,668
10	2,721
11	2,775
12	2,831
13	2,888
14	2,946
15	3,005
16	3,065
17	3,126
18	3,189
19	3,253
20	3,318
21	3,384
22	3,452
23	3,521
24	3,591
25	3,663
26	3,736
27	3,811
28	3,887
29	3,965
30+	3,965
(3)	Certified public school teachers with certification based on academic preparation at the six-year degree level shall receive a salary supplement of one hundred twenty-six dollars ($126.00) per month in addition to the compensation provided for certified personnel of the public schools who are classified as "G"teachers.  Certified public school teachers with certification based on academic preparation at the doctoral degree level shall receive a salary supplement of two hundred fifty-three dollars ($253.00) per month in addition to the compensation provided for certified personnel of the public schools who are classified as "G"teachers.  
(c)	The first step of the salary schedule for school psychologists shall be equivalent to Step 5, corresponding to five years of experience, on the salary schedule established in this section for certified personnel of the public schools who are classified as "G"teachers.  Certified psychologists shall be placed on the salary schedule at an appropriate step based on their years of experience.  Certified psychologists shall receive longevity payments based on years of State service in the same manner as teachers.
Certified psychologists with certification based on academic preparation at the six-year degree level shall receive a salary supplement of one hundred twenty-six dollars ($126.00) per month in addition to the compensation provided for certified psychologists.  Certified psychologists with certification based on academic preparation at the doctoral degree level shall receive a salary supplement of two hundred fifty-three dollars ($253.00) per month in addition to the compensation provided for certified psychologists.
(d) Certified personnel of the public schools who are: (i) classified as "A"teachers; (ii) at the maximum of their pay range on June 30, 1995; and (iii) employed as teachers for the first three pay periods of the school year shall receive a one-time bonus of seven hundred forty-six dollars ($746.00), payable at the third payroll period of the 1995-96 school year.  Certified personnel of the public schools who are: (i) classified as "G"teachers; (ii) at the maximum of their pay range on June 30, 1995; and (iii) employed as teachers for the first three pay periods of the school year, shall receive a one-time bonus of seven hundred ninety-three dollars ($793.00), payable at the third payroll period of the 1995-96 school year.
(e) Certified personnel of the public schools who are: (i) classified as psychologists with advanced degrees; (ii) at the maximum of their pay range on June 30, 1995; and (iii) employed as school psychologists for the first three pay periods of the school year, shall receive a one-time bonus of nine hundred one dollars ($901.00), payable at the third payroll period of the 1995-96 school year.  Certified personnel of the public schools who are: (i) classified as psychologists with doctoral degrees; (ii) at the maximum of their pay range on June 30, 1995; and (iii) employed as school psychologists for the first three pay periods of the school year, shall receive a one-time bonus of nine hundred twenty-six dollars ($926.00), payable at the third payroll period of the 1995-96 school year.

Requested by: Representatives Holmes, Creech, Esposito, Grady, Preston
SCHOOL-BASED ADMINISTRATOR SALARIES
Sec. 7.19.  (a)	Funds appropriated to the Reserve for Salary Increases shall be used to complete the implementation of a new salary schedule for school-based administrators as provided in this act.  These funds shall be used for State-paid employees only.
(b)	The salary schedule for school-based administrators shall apply only to principals and assistant principals.  The salary schedule for the 1995-96 fiscal year is as follows:

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

0	  –  	  –  	  –  	  –  	  –  	  –  	  –  	–
1	  –  	  –  	  –  	  –  	  –  	  –  	  –  	–
2	  –  	  –  	  –  	  –  	  –  	  –  	  –  	–
3	  –  	  –  	  –  	  –  	  –  	  –  	  –  	–
4	$2,491	  –  	  –  	  –  	  –  	  –  	  –  	–
5	2,541	  –  	  –  	  –  	  –  	  –  	  –  	–
6	2,592	  –  	  –  	  –  	  –  	  –  	  –  	–
7	2,644	  –  	  –  	  –  	  –  	  –  	  –  	–
8	2,697	$2,697	  –  	  –  	  –  	  –  	  –  	–
9	2,751	2,751	  –  	  –  	  –  	  –  	  –  	–
10	2,806	2,806	$2,862	  –  	  –  	  –  	  –  	–
11	2,862	2,862	2,919	  –  	  –  	  –  	  –  	–
12	2,919	2,919	2,977	$3,037	  –  	  –  	  –  	–
13	2,977	2,977	3,037	3,098	$3,160	  –  	  –  	–
14	3,037	3,037	3,098	3,160	 3,223	$3,287	  –  	–
15	3,098	3,098	3,160	3,223	 3,287	 3,353	  –  	–
16	3,160	3,160	3,223	3,287	 3,353	 3,420	$3,488 	–
17	3,223	3,223	3,287	3,353	 3,420	  3,488	3,558 	$3,629
18	3,287	3,287	3,353	3,420	 3,488	 3,558	3,629 	3,702
19	3,353	3,353	3,420	3,488	 3,558	 3,629	3,702 	3,776
20	3,420	3,420	3,488	3,558	 3,629	 3,702	3,776 	3,852
21	3,488	3,488	3,558	3,629	 3,702	 3,776	3,852 	3,929
22	3,558	3,558	3,629	3,702	 3,776	 3,852	3,929 	4,008
23	3,629	3,629	3,702	3,776	 3,852	 3,929	4,008 	4,088
24	3,702	3,702	3,776	3,852	 3,929	 4,008	4,088 	4,170
25	3,776	3,776	3,852	3,929	 4,008	 4,088	4,170 	4,253
26	3,852	3,852	3,929	4,008	 4,088	 4,170	4,253 	4,338
27	3,929	3,929	4,008	4,088	 4,170	 4,253	4,338 	4,425
28	4,008	4,008	4,088	4,170	 4,253	 4,338	4,425 	4,514
29	4,088	4,088	4,170	4,253	 4,338	 4,425	4,514 	4,604
30	4,170	4,170	4,253	4,338	 4,425	 4,514	4,604 	4,696
31	4,253	4,253	4,338	4,425	 4,514	 4,604	4,696 	4,790
32 	  –  	4,338	4,425	4,514	 4,604	 4,696	4,790 	4,886
33 	  –  	  – 	4,514	4,604	 4,696	 4,790	4,886 	4,984
34 	  –  	  – 	4,604	4,696	 4,790	 4,886	4,984 	5,084
35 	  –  	  – 	  – 	4,790	 4,886	 4,984	5,084 	5,186
36 	  –  	  – 	  – 	4,886	 4,984	 5,084	5,186 	5,290
37 	  –  	  – 	  – 	  – 	 5,084	 5,186	5,290 	5,396
38 	  –  	  – 	  – 	  – 	   – 	 5,290	5,396 	5,504
39 	  –  	  – 	  – 	  – 	  – 	   – 	5,504 	5,614
40 	  –  	  – 	  – 	  – 	  – 	   – 	5,614 	5,726
41	 –  	  – 	  – 	  – 	 – 	  – 	 – 	 5,841.
(c)	The appropriate classification for placement of principals and assistant principals on the salary schedule shall be determined in accordance with the following schedule:
Number of Teachers
Classification	Supervised
Assistant Principal
Principal I	Less than 11 Teachers
Principal II	11-21 Teachers
Principal III	22-32 Teachers
Principal IV	33-43 Teachers
Principal V	44-54 Teachers
Principal VI	55-65 Teachers
Principal VII	More than 65 Teachers

The number of teachers supervised includes teachers and assistant principals paid from State funds only; it does not include teachers or assistant principals paid from non-State funds or the principal or teacher assistants.
(d)	A principal shall be placed on the step on the salary schedule that reflects total number of years of experience as a certificated employee of the public schools and an additional step for every three years of experience as a principal.
(e)  Principals and assistant principals with certification based on academic preparation at the six-year degree level shall be paid a salary supplement of one hundred twenty-six dollars ($126.00) per month and at the doctoral degree level shall be paid a salary supplement of two hundred fifty-three dollars ($253.00) per month.
(f)  There shall be no State requirement that superintendents in each local school unit shall receive in State-paid salary at least one percent (1%) more than the highest paid principal receives in State salary in that school unit:  Provided, however, the additional State-paid salary a superintendent who was employed by a local school administrative unit for the 1992-93 fiscal year received because of that requirement shall not be reduced because of this subsection for subsequent fiscal years that the superintendent is employed by that local school administrative unit so long as the superintendent is entitled to at least that amount of additional State-paid salary under the rules in effect for the 1992-93 fiscal year.
(g)  Longevity pay for principals and assistant principals shall be as provided for State employees.
(h)	(1)	If a principal is reassigned to a higher job classification because the principal is transferred to a school within a local school administrative unit with a larger number of State-allotted teachers, the principal shall be placed on the salary schedule as if the principal had served the principal's entire career as a principal at the higher job classification.
(2)	If a principal is reassigned to a lower job classification because the principal is transferred to a school within a local school administrative unit with a smaller number of State-allotted teachers, the principal shall be placed on the salary schedule as if the principal had served the principal's entire career as a principal at the lower job classification.
	 	This subdivision applies to all transfers on or after the ratification date of this act, except transfers in school systems that have been created, or will be created, by merging two or more school systems.  Transfers in these merged systems are exempt from the provisions of this subdivision for one calendar year following the date of the merger.
(i)  Except as provided in subsection (h) of this section, the salary of a principal or assistant principal shall not be less for the 1995-96 fiscal year than it was for the 1993-94 fiscal year solely as a result of placement on the salary schedule established in this section.
(j) Certified personnel of the public schools who are school administrators and who are at the maximum of their pay range on June 30, 1995, shall receive a one-time bonus as set out in the table below payable at the third payroll period of the 1995-96 school year:
	Classification	Bonus Amount
Asst. Principal	$851
Asst. Principal Advanced	876
Asst. Principal Doctorate	901
Principal I	1,041
Principal I Advanced	1,071
Principal I Doctorate	1,102
Principal II	1,105
Principal II Advanced	1,135
Principal II Doctorate	1,166
Principal III	1,173
Principal III Advanced	1,203
Principal III Doctorate	1,233
Principal IV	1,220
Principal IV Advanced	1,250
Principal IV Doctorate	1,281
Principal V	1,270
Principal V Advanced	1,300
Principal V Doctorate	1,330
Principal VI	1,347
Principal VI Advanced	1,378
Principal VI Doctorate	1,408
Principal VII	1,402
Principal VII Advanced	1,432
Principal VII Doctorate	1,463.

Requested by:   Representatives Holmes, Esposito, Creech, Cocklereece
STATE EMPLOYEE RIF RIGHTS/OPTIONS
Sec. 7.20. (a)	G.S. 126-7.1 reads as rewritten:
"§ 126-7.1.  Posting requirement; State employees receive priority consideration; reduction-in-force rights.
(a)	All vacancies for which any State agency, department, or institution openly recruit shall be posted within at least the following: 
(1)	The personnel office of the agency, department, or institution having the vacancy; and
(2)	The particular work unit of the agency, department, or institution having the vacancy
in a location readily accessible to employees.  If the decision is made, initially or at any time while the vacancy remains open, to receive applicants from outside the recruiting agency, department, or institution, the vacancy shall be listed with the Office of State Personnel for the purpose of informing current State employees of such vacancy.  The State agency, department, or institution may not receive approval from the Office of State Personnel to fill a job vacancy if the agency, department, or institution cannot prove to the satisfaction of the Office of State Personnel that it complied with these posting requirements.  The agency, department, or institution which hires any person in violation of these posting requirements shall pay such person when employment is discontinued as a result of such violation for the work performed during the period of time between his initial employment and separation.
(a1)	State employees to be affected by a reduction in force shall be notified of the reduction in force as soon as practicable, and in any event, no less than 30 days prior to the effective date of the reduction in force.
(a2)	The State Personnel Commission shall adopt rules to provide that priority consideration for State employees separated from State employment as the result of reductions in force is to enable a State employee's return to career service at a salary grade and salary rate equal to that held in the most recent position.  The State Personnel Commission shall provide that a State employee who:
(1)	Accepts a position at the same salary grade shall be paid at the same salary rate as the employee's previous position.
(2)	Accepts a position at a lower salary grade than the employee's previous position shall be paid at the same rate as the previous position unless the salary rate exceeds the maximum of the new salary grade.  When the salary rate exceeds the maximum of the salary grade, the employee's new salary rate shall be reduced to the maximum of the new salary grade.
(b)	Subsection (a) of this section does not apply to vacancies which must be filled immediately to prevent work stoppage or the protection of the public health, safety, or security.
(c)	If a State employee subject to this section:
(1)	Applies for another position of State employment that would constitute a promotion and;
(2)	Has substantially equal qualifications as an applicant who is not a State employee
then the State employee shall receive priority consideration over the applicant who is not a State employee.  This priority consideration shall not apply when the only applicants considered for the vacancy are current State employees.
(c1)	If a State employee who has been separated due to reduction in force or who has been given notice of imminent separation due to reduction in force:
(1)	Applies for another position of State employment equal to or lower in salary grade than the position held by the employee at the time of notification or separation; and
(2)	Is determined qualified for that position
then within all State agencies, the State employee shall receive priority consideration over all other applicants but shall receive equal consideration with other applicants who are current State employees not affected by the reduction in force.  This priority shall remain in effect for a period of 12 months from the date the employee receives notification of separation by reduction in force.  State employees separated due to reduction in force shall receive higher priority than other applicants with employment or reemployment priorities, except that the reemployment priority created by G.S. 126-5(e)(1) shall be considered as equal.  The reduction-in-force priority created by this subsection shall be administered in accordance with rules promulgated by the State Personnel Commission.
(c2)	If the applicants for reemployment for a position include current State employees, a State employee with more than 10 years of service shall receive priority consideration over a State employee having less than 10 years of service in the same or related position classification.  This reemployment priority shall be given by all State departments, agencies, and institutions with regard to positions subject to this Chapter.
(d)	'Qualifications' within the meaning of subsection (c) of this section shall consist of:
(1)	Training or education;
(2)	Years of experience; and
(3)	Other skills, knowledge, and abilities that bear a reasonable functional relationship to the abilities and skills required in the job vacancy applied for."
(b)	This section becomes effective July 1, 1995. 

Requested by:   Representatives Sherrill, Pate, Thompson
ADDITIONAL STATE EMPLOYEE RIF RIGHTS/OPTIONS
Sec. 7.21. (a)	G.S. 135-40.2(a) is amended by adding a new subdivision to read:
"(6üemployees formerly covered by the provisions of this section, other than retired employees, who have been employed for 12 or more months by an employing unit and whose jobs are eliminated because of a reduction, in total or in part, in the funds used to support the job or its responsibilities, provided the employees were covered by the Plan at the time of separation from service resulting from a job elimination.  Employees covered by this subsection shall be covered for a period of up to 12 months following a separation from service because of a job elimination."
(b) G.S. 135-40.2(b)(5) reads as rewritten:
"(5)	The spouses and eligible dependent children of enrolled employees, retirees, former employees covered by the provisions of G.S. 135-40.2(a)(6), and members of the General Assembly."
(c)	G.S. 135-40.2(b) is amended by adding a new subdivision to read:
"(12)	Notwithstanding the provisions of G.S. 135-40.11, former employees covered by the provisions of G.S. 135-40.2(a)(6), and their spouses and eligible dependent children who were covered by the Plan at the time of the former employees' separation from service pursuant to G.S. 135-40.2(a)(6), following expiration of the former employees' coverage provided by G.S. 135-40.2(a)(6)."
(d)	This section becomes effective June 30, 1995.

Requested by:  Representatives Holmes, Creech, Esposito, McCombs
1995 RETIREMENT BENEFITS ACT
Sec. 7.22. (a)	G.S. 135-5 is amended by adding a new subsection to read:
"( zz)	From and after July 1, 1995, the retirement allowance to or on account of beneficiaries whose retirement commenced on or before July 1, 1994, shall be increased by two percent (2%) of the allowance payable on July 1, 1994, in accordance with G.S. 135-5(o).  Furthermore, from and after July 1, 1995, the retirement allowance to or on account of beneficiaries whose retirement commenced after July 1, 1994, but before June 30, 1995, shall be increased by a prorated amount of two percent (2%) of the allowance payable as determined by the Board of Trustees based upon the number of months that a retirement allowance was paid between July 1, 1994, and June 30, 1995."
(b)	G.S. 135-65 is amended by adding a new subsection to read:
"( p)	From and after July 1, 1995, the retirement allowance to or on account of beneficiaries whose retirement commenced on or before July 1, 1994, shall be increased by two percent (2%) of the allowance payable on July 1, 1994. Furthermore, from and after July 1, 1995, the retirement allowance to or on account of beneficiaries whose retirement commenced after July 1, 1994, but before June 30, 1995, shall be increased by a prorated amount of two percent (2%) of the allowance payable as determined by the Board of Trustees based upon the number of months that a retirement allowance was paid between July 1, 1994, and June 30, 1995."
(c)	G.S. 120-4.22A is amended by adding a new subsection to read:
"( j)	In accordance with subsection (a) of this section, from and after July 1, 1995, the retirement allowance to or on account of beneficiaries whose retirement commenced on or before January 1, 1995, shall be increased by two percent (2%) of the allowance payable on January 1, 1995.  Furthermore, from and after July 1, 1995, the retirement allowance to or on account of beneficiaries whose retirement commenced after January 1, 1995, but before June 30, 1995, shall be increased by a prorated amount of two percent (2%) of the allowance payable as determined by the Board of Trustees based upon the number of months that a retirement allowance was paid between January 1, 1995, and June 30, 1995."
(d)	G.S. 128-24(5) reads as rewritten:
"(5)	The provisions of this subdivision (5) shall apply to any member whose membership is terminated on or after July 1, 1965, and who becomes entitled to benefits hereunder in accordance with the provisions hereof.
a.	Notwithstanding any other provision of this Chapter, any member who separates from service prior to the attainment of the age of 60 years for any reason other than death or retirement for disability as provided in G.S. 128-27(c), after completing 15 or more years of creditable service, and who leaves his total accumulated contributions in said System shall have the right to retire on a deferred retirement allowance upon attaining the age of 60 years; provided that such member may retire only upon written application to the Board of Trustees setting forth at what time, not less than one day nor more than 90 days subsequent to the execution and filing thereof, he desires to be retired; and further provided that in the case of a member who so separates from service on or after July 1, 1967, the aforestated requirement of 15 or more years of creditable service shall be reduced to 12 or more years of creditable service; and further provided that in the case of a member who so separates from service on or after July 1, 1971, or whose account is active on July 1, 1971, the aforestated requirement of 12 or more years of creditable service shall be reduced to five or more years of creditable service.  Such deferred retirement allowance shall be computed in accordance with the service retirement provisions of this Article pertaining to a member who is not a law enforcement officer or eligible former law enforcement officer.
b.	In lieu of the benefits provided in paragraph a of this subdivision, any member who separates from service prior to the attainment of the age of 60 years, for any reason other than death or retirement for disability as provided in G.S. 128-27(c), after completing 20 or more years of creditable service, and who leaves his total accumulated contributions in said System may elect to retire on an early retirement allowance upon attaining the age of 50 years or at any time thereafter; provided that such member may so retire only upon written application to the Board of Trustees setting forth at what time, not less than one day nor more than 90 days subsequent to the execution and filing thereof, he desires to be retired. Such early retirement allowance so elected shall be equal to the deferred retirement allowance otherwise payable at the attainment of the age of 60 years reduced by the percentage thereof indicated below.	Age at	Percentage
	Retirement	Reduction
	59	7
	58	14
	57	20
	56	25
	55	30
	54	35
	53	39
	52	43
	51	46
	50	50b1.	In lieu of the benefits provided in paragraphs a and b of this subdivision, any member who is a law enforcement officer at the time of separation from service prior to the attainment of the age of 50 years, for any reason other than death or disability as provided in this Article, after completing 15 or more years of creditable service in this capacity immediately prior to separation from service, and who leaves his total accumulated contributions in this System, may elect to retire on a deferred early retirement allowance upon attaining the age of 50 years or at any time thereafter; provided, that the member may commence retirement only upon written application to the Board of Trustees setting forth at what time, as of the first day of a calendar month, not less than one day nor more than 90 days subsequent to the execution and filing thereof, he desires to commence retirement. The deferred early retirement allowance shall be computed in accordance with the service retirement provisions of this Article pertaining to law enforcement officers.
b2.	In lieu of the benefits provided in paragraphs a and b of this subdivision, any member who is a law enforcement officer at the time of separation from service prior to the attainment of the age of 55 years, for any reason other than death or disability as provided in this Article, after completing five or more years of creditable service in this capacity immediately prior to separation from service, and who leaves his total accumulated contributions in this System may elect to retire on a deferred service retirement allowance upon attaining the age of 55 years or at any time thereafter; provided, that the member may commence retirement only upon written application to the Board of Trustees setting forth at what time, as of the first day of a calendar month not less than one day nor more than 90 days subsequent to the execution and filing thereof, he desires to commence retirement. The deferred service retirement allowance shall be computed in accordance with the service retirement provisions of this Article pertaining to law enforcement officers.
b3.	Deferred retirement allowance of members retiring on or after July 1, 1995. – In lieu of the benefits provided in paragraphs a. and b. of this subdivision, any member who separates from service prior to attainment of age 60 years, after completing 20 or more years of creditable service, and who leaves his total accumulated contributions in said System, may elect to retire on a deferred retirement allowance upon attaining the age of 50 years or any time thereafter; provided that such member may so retire only upon written application to the Board of Trustees setting forth at what time, not less than one day nor more than 90 days subsequent to the execution and filing thereof, he desires to be retired.  Such deferred retirement allowance shall be computed in accordance with the service retirement provisions of this Article pertaining to a member who is not a law enforcement officer or an eligible former law enforcement officer.
c.	Should a beneficiary who retired on an early or service retirement allowance be reemployed, or otherwise engaged to perform services, by an employer participating in the Retirement System on a part-time, temporary, interim, or on fee-for-service basis, whether contractual or otherwise, and if such beneficiary earns an amount in any calendar year which exceeds fifty percent (50%) of the reported compensation, excluding terminal payments, during the 12 months of service preceding the effective date of retirement, or twenty thousand dollars ($20,000), whichever is greater, as hereinafter indexed, then the retirement allowance shall be suspended as of the first day of the month following the month in which the reemployment earnings exceed the amount above, for the balance of the calendar year. The retirement allowance of the beneficiary shall be reinstated as of January 1 of each year following suspension. The amount that may be earned before suspension shall be increased on January 1 of each year by the ratio of the Consumer Price Index to the Index one year earlier, calculated to the nearest tenth of a percent (1/10 of 1%).
d.	Should a beneficiary who retired on an early or service retirement allowance be restored to service as an employee, then the retirement allowance shall cease as of the first day of the month following the month in which the beneficiary is restored to service and the beneficiary shall become a member of the Retirement System and shall contribute thereafter as allowed by law at the uniform contribution payable by all members.
		Upon his subsequent retirement, he shall be paid a retirement allowance determined as follows:
1.	For a member who earns at least three years' membership service after restoration to service, the retirement allowance shall be computed on the basis of his compensation and service before and after the period of prior retirement without restriction; provided, that if the prior allowance was based on a social security leveling payment option, the allowance shall be adjusted actuarially for the difference between the amount received under the optional payment and what would have been paid if the retirement allowance had been paid without optional modification.
2.	For a member who does not earn three years' membership service after restoration to service, the retirement allowance shall be equal to the sum of the retirement allowance to which he would have been entitled had he not been restored to service, without modification of the election of an optional allowance previously made, and the retirement allowance that results from service earned since being restored to service; provided, that if the prior retirement allowance was based on a social security leveling payment option, the prior allowance shall be adjusted actuarially for the difference between the amount that would have been paid for each month had the payment not been suspended and what would have been paid if the retirement allowance had been paid without optional modification."
(e)  G.S. 128-27 is amended by adding a new subsection to read:
(oo)	From and after July 1, 1995, the retirement allowance to or on account of beneficiaries whose retirement commenced on or before July 1, 1994, shall be increased by two percent (2%) of the allowance payable on July 1, 1994, in accordance with G.S. 128-27(k). Furthermore, from and after July 1, 1995, the retirement allowance to or on account of beneficiaries whose retirement commenced after July 1, 1994, but before June 30, 1995, shall be increased by a prorated amount of two percent (2%) of the allowance payable as determined by the Board of Trustees based upon the number of months that a retirement allowance was paid between July 1, 1994, and June 30, 1995."
(f)  G.S 128-27(m) reads as rewritten:
"(m)	Survivor's Alternate Benefit. – Upon the death of a member in service, the principal beneficiary designated to receive a return of accumulated contributions shall have the right to elect to receive in lieu thereof the reduced retirement allowance provided by Option two of subsection (g) above computed by assuming that the member had retired on the first day of the month following the date of his death, provided that all three of the following conditions apply:
	(1)	a.	The member had attained such age and/or creditable service to be eligible to commence retirement with an early or service retirement allowance, or
b.	The member had obtained 20 years of creditable service in which case the retirement allowance shall be computed in accordance with G.S. 128-27(b15)(1)b. or G.S. 128-27(b15)(2)c., notwithstanding the requirement of obtaining age 50.
(2)	The member had designated as the principal beneficiary to receive a return of his accumulated contributions one and only one person who is living at the time of his death.
(3)	The member had not instructed the Board of Trustees in writing that he did not wish the provisions of this subsection apply.
For the purpose of this benefit, a member is considered to be in service at the date of his death if his death occurs within 180 days from the last day of his actual service. The last day of actual service shall be determined as provided in subsection (l)	of this section. Upon the death of a member in service, the surviving spouse may make all purchases for creditable service as provided for under this Chapter for which the member had made application in writing prior to the date of death, provided that the date of death occurred prior to or within 60 days after notification of the cost to make the purchase."
(g)  This section becomes effective July 1, 1995.

Requested by:   Representatives Pate, Russell, Sherrill, Easterling
FURTHER 1995 RETIREMENT BENEFITS
Sec. 7.23. (a)	G.S. 135-5(b15) reads as rewritten:
"(b15)	Service Retirement Allowance of Members Retiring on or after July 1, 1994, but before July 1, 1995. – Upon retirement from service in accordance with subsection (a) or (a1) above, on or after July 1, 1994, but before July 1, 1995, a member shall receive the following service retirement allowance:
(1)	A member who is a law enforcement officer or an eligible former law enforcement officer shall receive a service retirement allowance computed as follows:
a.	If the member's service retirement date occurs on or after his 55th birthday, and completion of five years of creditable service as a law enforcement officer, or after the completion of 30 years of creditable service, the allowance shall be equal to one and seventy-three hundredths percent (1.73%) of his average final compensation, multiplied by the number of years of his creditable service.
b.	If the member's service retirement date occurs on or after his 50th birthday and before his 55th birthday with 15 or more years of creditable service as a law enforcement officer and prior to the completion of 30 years of creditable service, his retirement allowance shall be equal to the greater of:
1.	The service retirement allowance payable under G.S. 135-5(b15)(1)a. reduced by one-third of one percent (1/3 of 1%) thereof for each month by which his retirement date precedes the first day of the month coincident with or next following the month the member would have attained his 55th birthday; or
2.	The service retirement allowance as computed under G.S. 135-5(b15)(1)a. reduced by five percent (5%) times the difference between 30 years and his creditable service at retirement.
(2)	A member who is not a law enforcement officer or an eligible former law enforcement officer shall receive a service retirement allowance computed as follows:
a.	If the member's service retirement date occurs on or after his 65th birthday upon the completion of five years of creditable service or after the completion of 30 years of creditable service or on or after his 60th birthday upon the completion of 25 years of creditable service, the allowance shall be equal to one and seventy-three hundredths percent (1.73%) of his average final compensation, multiplied by the number of years of creditable service.
b.	If the member's service retirement date occurs after his 60th and before his 65th birthday and prior to his completion of 25 years or more of creditable service, his retirement allowance shall be computed as in G.S. 135-5(b15)(2)a. but shall be reduced by one-quarter of one percent (1/4 of 1%) thereof for each month by which his retirement date precedes the first day of the month coincident with or next following his 65th birthday.
c.	If the member's early service retirement date occurs on or after his 50th birthday and before his 60th birthday and after completion of 20 years of creditable service but prior to the completion of 30 years of creditable service, his early service retirement allowance shall be equal to the greater of:
1.	The service retirement allowance as computed under G.S. 135-5(b15)(2)a. but reduced by the sum of five-twelfths of one percent (5/12 of 1%) thereof for each month by which his retirement date precedes the first day of the month coincident with or next following the month the member would have attained his 60th birthday, plus one-quarter of one percent (1/4 of 1%) thereof for each month by which his 60th birthday precedes the first day of the month coincident with or next following his 65th birthday; or
2.	The service retirement allowance as computed under G.S. 135-5(b15)(2)a. reduced by five percent (5%) times the difference between 30 years and his creditable service at retirement; or
3.	If the member's creditable service commenced prior to July 1, 1994, the service retirement allowance provided by G.S. 135-5(b14)(2)c.
d.	Notwithstanding the foregoing provisions, any member whose creditable service commenced prior to July 1, 1963, shall not receive less than the benefit provided by G.S. 135-5(b)."
(b) G.S. 135-5 is amended by adding a new subsection to read:
"( b16)	Service Retirement Allowance of Members Retiring on or After July 1, 1995. – Upon retirement from service in accordance with subsection (a) or (a1) above, on or after July 1, 1995, a member shall receive the following service retirement allowance:
(1)	A member who is a law enforcement officer or an eligible former law enforcement officer shall receive a service retirement allowance computed as follows:
a.	If the member's service retirement date occurs on or after his 55th birthday, and completion of five years of creditable service as a law enforcement officer, or after the completion of 30 years of creditable service, the allowance shall be equal to one and seventy-five hundredths percent (1.75%) of his average final compensation, multiplied by the number of years of his creditable service.
b.	If the member's service retirement date occurs on or after his 50th birthday and before his 55th birthday with 15 or more years of creditable service as a law enforcement officer and prior to the completion of 30 years of creditable service, his retirement allowance shall be equal to the greater of:
1.	The service retirement allowance payable under G.S. 135-5(b16)(1)a. reduced by one-third of one percent (1/3 of 1%) thereof for each month by which his retirement date precedes the first day of the month coincident with or next following the month the member would have attained his 55th birthday; or
2.	The service retirement allowance as computed under G.S. 135-5(b16)(1)a. reduced by five percent (5%) times the difference between 30 years and his creditable service at retirement.
(2)	A member who is not a law enforcement officer or an eligible former law enforcement officer shall receive a service retirement allowance computed as follows:
a.	If the member's service retirement date occurs on or after his 65th birthday upon the completion of five years of creditable service or after the completion of 30 years of creditable service or on or after his 60th birthday upon the completion of 25 years of creditable service, the allowance shall be equal to one and seventy-five hundredths percent (1.75%) of his average final compensation, multiplied by the number of years of creditable service.
b.	If the member's service retirement date occurs after his 60th and before his 65th birthday and prior to his completion of 25 years or more of creditable service, his retirement allowance shall be computed as in G.S. 135-5(b16)(2)a. but shall be reduced by one-quarter of one percent (1/4 of 1%) thereof for each month by which his retirement date precedes the first day of the month coincident with or next following his 65th birthday.
c.	If the member's early service retirement date occurs on or after his 50th birthday and before his 60th birthday and after completion of 20 years of creditable service but prior to the completion of 30 years of creditable service, his early service retirement allowance shall be equal to the greater of:
1.	The service retirement allowance as computed under G.S. 135-5(b16)(2)a. but reduced by the sum of five-twelfths of one percent (5/12 of 1%) thereof for each month by which his retirement date precedes the first day of the month coincident with or next following the month the member would have attained his 60th birthday, plus one-quarter of one percent (1/4 of 1%) thereof for each month by which his 60th birthday precedes the first day of the month coincident with or next following his 65th birthday; or
2.	The service retirement allowance as computed under G.S. 135-5(b16)(2)a. reduced by five percent (5%) times the difference between 30 years and his creditable service at retirement; or
3.	If the member's creditable service commenced prior to July 1, 1994, the service retirement allowance equal to the actuarial equivalent of the allowance payable at the age of 60 years as computed in  G.S. 135-5(b16)(2)b.
d.	Notwithstanding the foregoing provisions, any member whose creditable service commenced prior to July 1, 1963, shall not receive less than the benefit provided by G.S. 135-5(b)."
	(c) G.S. 128-27(b14) reads as rewritten:
"(b14)	Service Retirement Allowance of Members Retiring on or after July 1, 1994, but before July 1, 1995. – Upon retirement from service in accordance with subsection (a) or (a1) above, on or after July 1, 1994, but before July 1, 1995, a member shall receive the following service retirement allowance:
(1)	A member who is a law enforcement officer or an eligible former law enforcement officer shall receive a service retirement allowance computed as follows:
a.	If the member's service retirement date occurs on or after his 55th birthday, and completion of five years of creditable service as a law enforcement officer, or after the completion of 30 years of creditable service, the allowance shall be equal to one and seventy-one hundredths percent (1.71%) of his average final compensation, multiplied by the number of years of his creditable service.
b.	This allowance shall also be governed by the provisions of G.S. 128-27(b8)(2).
(2)	A member who is not a law enforcement officer or an eligible former law enforcement officer shall receive a service retirement allowance computed as follows:
a.	If the member's service retirement date occurs on or after his 65th birthday upon the completion of five years of creditable service or after the completion of 30 years of creditable service or on or after his 60th birthday upon the completion of 25 years of creditable service, the allowance shall be equal to one and seventy-one hundredths percent (1.71%) of his average final compensation, multiplied by the number of years of creditable service.
b.	This allowance shall also be governed by the provisions of G.S. 128-27(b7)(2a), (2b), and (3)."
(d) G.S. 128-27 is amended by adding a new subsection to read:
"( b15)	Service Retirement Allowance of Members Retiring on or After July 1, 1995. – Upon retirement from service in accordance with subsection (a) or (a1) above, on or after July 1, 1995, a member shall receive the following service retirement allowance:
(1)	A member who is a law enforcement officer or an eligible former law enforcement officer shall receive a service retirement allowance computed as follows:
a.	If the member's service retirement date occurs on or after his 55th birthday, and completion of five years of creditable service as a law enforcement officer, or after the completion of 30 years of creditable service, the allowance shall be equal to one and seventy-two hundredths percent (1.72%) of his average final compensation, multiplied by the number of years of his creditable service.
b.	If the member's service retirement date occurs on or after his 50th birthday and before his 55th birthday with 15 or more years of creditable service as a law enforcement officer and prior to the completion of 30 years of creditable service, his retirement allowance shall be equal to the greater of:
1.	The service retirement allowance payable under G.S. 128-27(b15)(1)a. reduced by one-third of one percent (1/3 of 1%) thereof for each month by which his retirement date precedes the first day of the month coincident with or next following the month the member would have attained his 55th birthday; or
2.	The service retirement allowance as computed under G.S. 128-27(b15)(1)a. reduced by five percent (5%) times the difference between 30 years and his creditable service at retirement.
(2)	A member who is not a law enforcement officer or an eligible former law enforcement officer shall receive a service retirement allowance computed as follows:
a.	If the member's service retirement date occurs on or after his 65th birthday upon the completion of five years of creditable service or after the completion of 30 years of creditable service or on or after his 60th birthday upon the completion of 25 years of creditable service, the allowance shall be equal to one and seventy-two hundredths percent (1.72%) of his average final compensation, multiplied by the number of years of creditable service.
b.	If the member's service retirement date occurs after his 60th and before his 65th birthday and prior to his completion of 25 years or more of creditable service, his retirement allowance shall be computed as in G.S. 128-27(b15)(2)a. but shall be reduced by one-quarter of one percent (1/4 of 1%) thereof for each month by which his retirement date precedes the first day of the month coincident with or next following his 65th birthday.
c.	If the member's early service retirement date occurs on or after his 50th birthday and before his 60th birthday and after completion of 20 years of creditable service but prior to the completion of 30 years of creditable service, his early service retirement allowance shall be equal to the greater of:
1.	The service retirement allowance as computed under G.S. 128-27(b15)(2)a. but reduced by the sum of five-twelfths of one percent (5/12 of 1%) thereof for each month by which his retirement date precedes the first day of the month coincident with or next following the month the member would have attained his 60th birthday, plus one-quarter of one percent (1/4 of 1%) thereof for each month by which his 60th birthday precedes the first day of the month coincident with or next following his 65th birthday; or
2.	The service retirement allowance as computed under G.S. 128-27(b15)(2)a. reduced by five percent (5%) times the difference between 30 years and his creditable service at retirement; or
3.	If the member's creditable service commenced prior to July 1, 1995, the service retirement allowance equal to the actuarial equivalent of the allowance payable at the age of 60 years as computed in G.S. 128-27(b15)(2)b.
d.	Notwithstanding the foregoing provisions, any member whose creditable service commenced prior to July 1, 1965, shall not receive less than the benefit provided by G.S. 128-27(b)."

Requested by:  Representatives Creech, Holmes, Esposito
STATE EMPLOYEE HEALTH BENEFIT PLAN/INCREASED WELLNESS BENEFITS
Sec. 7.24.  (a)	G.S. 135-40.5 is amended by adding two new subsections to read:
"( e)	Routine Diagnostic Examinations. – The Plan will pay one hundred percent (100%) of allowable charges for routine diagnostic examinations and tests, including Pap smears, breast, colon, rectal, and prostate exams, X rays, mammograms, blood and blood pressure checks, urine tests, tuberculosis tests, and general health checkups that are medically necessary for the maintenance and improvement of individual health but no more often than once every three years for covered individuals to age 40 years, once every two years for covered individuals to age 50 years, and once a year for covered individuals age 50 years and older, unless a more frequent occurrence is warranted by a medical condition when such charges are incurred in a medically supervised facility.  Provided, however, that charges for such examinations and tests are not covered by the Plan when they are incurred to obtain or continue employment, to secure insurance coverage, to comply with legal proceedings, to attend schools or camps, to meet travel requirements, to participate in athletic and related activities, or to comply with governmental licensing requirements. The maximum amount payable under this subsection for a covered individual is one hundred fifty dollars ($150.00) per fiscal year.
(f)	Immunizations. – The Plan will pay one hundred percent (100%) of allowable charges for immunizations for the prevention of contagious diseases as generally accepted medical practices would dictate when directed by an attending physician."
(b) G.S. 135-40.6(8)s. reads as rewritten:
"s.	Routine Diagnostic Examinations: Allowable charges for routine diagnostic examinations and tests, including Pap smears, breast, colon, rectal, and prostate exams, X rays, mammograms, blood and blood pressure checks, urine tests, tuberculosis tests, and general health checkups that are medically necessary for the maintenance and improvement of individual health but no more often than once every three years for covered individuals to age 40 years, once every two years for covered individuals to age 50 years, and once a year for covered individuals age 50 years and older, unless a more frequent occurrence is warranted by a medical condition when such charges are incurred in a medically supervised facility.  Provided, however, that charges for such examinations and tests are not covered by the Plan when they are incurred to obtain or continue employment, to secure insurance coverage, to comply with legal proceedings, to attend schools or camps, to meet travel requirements, to participate in athletic and related activities or to comply with governmental licensing requirements. "
(c)	G.S. 135-40.6(8)t. is repealed.

Requested by:  Representatives Creech, Holmes, Esposito
STATE EMPLOYEE HEALTH BENEFIT PLAN/INCREASED LIFETIME BENEFIT
Sec. 7.25.  Effective January 1, 1994, G.S. 135-40.9 reads as rewritten:
"§ 135-40.9.  Maximum benefits.
The maximum lifetime benefit for each covered individual will be two million dollars ($2,000,000)."

Requested by:  Representatives Creech, Holmes, Esposito
STATE EMPLOYEE HEALTH BENEFIT PLAN/ORAL SURGERY BENEFITS
Sec. 7.26. G.S. 135-40.6(8)f. reads as rewritten:
"f.	Dental Services:  Oral surgery, including extraction of teeth, necessitated because of medical treatment. Dental surgery and appliances for mouth, jaw, and tooth restoration necessitated because of external violent and accidental means, such as the impact of moving body, vehicle collision, or fall occurring while an individual is covered under G.S. 135-40.3. No benefits are provided in connection with injury incurred in the act of chewing, nor for damage or breakage of an appliance such as bridge or denture being cleaned or otherwise not in normal mouth usage at the time of accident, nor for appliances for orthodontic treatment when a class of malocclusion, other than orthognathic, or cross bite has been diagnosed. Benefits for temporomandibular joint (TMJ) dysfunction appliance therapy are limited to cases where the TMJ dysfunction has been diagnosed as solely resulting from accidental means as certified by the attending practitioner and approved by the Claims Processor.
	Benefits shall include extractions, fillings, crowns, bridges, or other necessary therapeutic and restorative techniques and appliances to reasonably restore condition and function to that existing immediately prior to the accident. Injury or breakage of existing appliances such as bridges and dentures is limited to repair of such appliances unless certified as damaged beyond repair."

Requested by:  Representatives Creech, Holmes, Esposito
STATE EMPLOYEE HEALTH BENEFIT PLAN/WAIVER OF INPATIENT HOSPITAL CERTIFICATION PENALTY
Sec. 7.27.  G.S. 135-40.6(2)f. reads as rewritten:
"f.	Prior to admission for scheduled inpatient hospitalization, the admitting physician shall contact the Plan and secure approval certification for an inpatient admission, including a length of stay, based upon clinical criteria established by the medical community, before any in-hospital benefits are allowed under G.S. 135-40.8(a).  Immediately following an emergency or unscheduled inpatient hospitalization, the admitting physician shall contact the Plan and secure approval certification for the admission's length of stay before any in-hospital benefits are allowed under G.S. 135-40.8(a).  Effective January 1, 1987, failure to secure certification, or denial of certification, shall result in in-hospital benefits being allowed at the rate maximum amount of out-of-pocket expenses established by G.S. 135-40.8(b).  Denial of certification by the Plan shall be made only after contact with the admitting physician and shall be subject to appeal to the Executive Administrator and Board of Trustees.  Inpatient hospital admission and length of stay certifications required by this subdivision do not apply to inpatient admissions outside of the United States. While approval certification for inpatient admissions is required to be initiated by the admitting physician, the employee or individual covered by the Plan shall be responsible for insuring that the required certification is secured. Failure to secure certification for inpatient hospitalization shall not result in a penalty to the employee or individual when approval would have been given if requested."

Requested by:  Representatives Creech, Holmes, Esposito
STATE EMPLOYEE HEALTH BENEFIT PLAN/RETIREE PREMIUMS BASED ON RETIREMENT SERVICE CREDIT
Sec. 7.28.  (a)	G.S. 135-40.2(a)(2) reads as rewritten:
"(2)	Retired teachers, State employees, members of the General Assembly, and retired State law enforcement officers who retired under the Law Enforcement Officers' Retirement System prior to January 1, 1985.  For employees first hired on and after October 1, 1995, and members of the General Assembly first taking office on and after October 1, 1995, future coverage as retired employees and retired members of the General Assembly is subject to a requirement that the future retiree have 20 or more years of retirement service credit in order to be covered by the provisions of this subdivision."
(b) G.S. 135-40.2 is amended by adding a new subsection to read:
"( a1)	The following persons shall be eligible for coverage under the Plan, on a partially contributory basis, subject to the provisions of G.S. 135-40.3:
(1)	Retired teachers, State employees, and members of the General Assembly with 10 but less than 20 years of retirement service credit, provided they were first hired or took office on or after October 1, 1995.  For such future retirees, the State shall pay fifty percent (50%) of the Plan's total noncontributory premiums.  Individual retirees shall pay the balance of the total noncontributory premiums not paid by the State."
(c)	G.S. 135-40.2(b) is amended by adding a new subdivision to read:
"(11)	Retired teachers, State employees, and members of the General Assembly with less than 10 years of retirement service credit, provided they were first hired or took office on or after October 1, 1995."

PART 8.  GENERAL ASSEMBLY

Requested by:  Representatives Gardner, Hayes  
BLUE RIBBON TASK FORCE ON THE MENTAL HEALTH SYSTEM
Sec. 8.1.  (a) If the Mental Health Study Commission is not reauthorized by the 1995 General Assembly, Regular Session 1995, there is established in the General Assembly a Blue Ribbon Task Force on the Mental Health System.  This task force shall study systemwide issues affecting the development, administration, and delivery of mental health services, including issues relating to the governance, accountability, and quality of services delivered.
(b) This Blue Ribbon Task Force on the Mental Health System shall be composed of 11 members appointed as follows:
(1)	Four members of the House of Representatives at the time of their appointment, appointed by the Speaker of the House of Representatives;
(2)	Four members of the Senate at the time of their appointment, appointed by the President Pro Tempore of the Senate;
(3)	One member of Coalition 2001, appointed by the Governor;
(4)	One member of the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, appointed by the Secretary of the Department of Human Resources; and
(5)	One member of the Department of Insurance, appointed by the Commissioner of Insurance.
The Speaker of the House of Representatives and the President Pro Tempore of the Senate shall each select a legislative member from their appointments to serve as cochair of the task force.  Meetings shall be called at the will of the cochairs.
All members shall serve at the will of their appointing officer.  Unless removed or unless resigning, members shall serve until the task force has made its report. Vacancies in membership shall be filled by the appropriate appointing officer.  
(c) The Blue Ribbon Task Force on the Mental Health System may contract for consultant services as provided by G.S. 120-32.02.  Upon approval of the Legislative Services Commission, the Legislative Administrative Officer shall assign professional and clerical staff to assist in the work of the task force.  The professional staff shall include the appropriate staff from the Fiscal Research, Research, and Legislative Drafting Divisions of the Legislative Services Office of the General Assembly.  Clerical staff shall be furnished to the task force through the offices of House of Representatives and Senate Supervisors of Clerks.  The expenses of employment of the clerical staff shall be borne by the task force.  The task force may meet in the Legislative Building or the Legislative Office Building upon the approval of the Legislative Services Commission.  The task force, while in the discharge of official duties, may exercise all the powers provided under the provisions of G.S. 120-19 through G.S. 120-19.4, including the power to request all officers, agents, agencies, and departments of the State to provide any information and any data within their possession or ascertainable from their records, and the power to subpoena witnesses.
Members of the task force shall receive per diem, subsistence, and travel allowances as follows:
(1)	Task force members who are members of the General Assembly, at the rate established in G.S. 120-3.1;
(2)	Task force members who are officials or employees of the State or of local government agencies, at the rate established in G.S. 138-6; and
(3)	All other task force members, at the rate established in G.S. 138-5.
(d) The Blue Ribbon Task Force shall report the results of its study, together with any legislative proposals and cost analyses, to the 1995 General Assembly, Regular Session 1996, within a week of its convening. 

Requested by:  Representatives Ives, Lemmond   
CONFIDENTIALITY OF DOCUMENTS USED TO PREPARE FISCAL NOTES 
Sec. 8.2.  G.S. 120-131.1(a) as enacted by Section 8.1 of Chapter 324 of the 1995 Session laws reads as rewritten:
"(a)	A request made to an employee of a State agency other than the General Assembly by an employee of the Fiscal Research Division for assistance in the preparation of a fiscal note is confidential.  An employee of a State agency other than the General Assembly who receives such a request or who learns of such a request made to another employee of his or her agency shall reveal the existence of the request only to other employees of the agency to the extent that it is necessary to respond to the request, and to the employee's supervisor and to the Office of State Budget and Management.  All documents prepared by the employee in response to the request of the Fiscal Research Division are also confidential and shall be kept confidential in the same manner as the original request, except that documents submitted to the Fiscal Research Division in response to the request cease to be confidential under this section when the Fiscal Research Division releases a fiscal note based on the documents."

Requested by:  Representatives Ives, Lemmond   
REVIEW GENERAL FUND FINANCIAL MODEL
Sec. 8.3.  Of the funds appropriated in this act to the General Assembly, the sum of thirty five thousand dollars ($35,000) for the 1995-96 fiscal year shall be used to conduct a review of the General Fund Financial Model.  The review shall be coordinated by the Fiscal Research Division of the Legislative Services Office, and shall be completed on or before February 1, 1996.

Requested by: Representatives Mitchell, Weatherly
STUDY JOB TRAINING PROGRAMS
Sec. 8.5. (a) There is created the Joint Legislative Study Commission on Job Training Programs.  The purpose of the Commission is to review State and federally funded job training programs currently in existence to determine the feasibility of eliminating or consolidating those which are duplicative, inefficient, or ineffective in carrying out their purposes and activities.
(b) The Commission shall consist of six members of the House of Representatives appointed by the Speaker of the House of Representatives and six members of the Senate appointed by the President Pro Tempore of the Senate.  Members shall serve for the duration of the 1995-97 Session.  Upon delivering its final report to the 1997 General Assembly the Commission shall expire.  Vacancies on the Commission shall be filled by the appointing authority.   The President Pro Tempore of the Senate and the Speaker of the House of Representatives shall each appoint one member to serve as cochair of the Commission.
(c) The Commission shall have the following powers and duties:
(1)	To review State and federal laws, rules, and regulations pertaining to job training programs to determine the purpose of each program, the population served, and each program's annual outcomes in terms of type of training received, work search efforts, and job placement;
(2)	To ascertain as far as possible the intention of the United States Congress with respect to continued funding of federally mandated job training programs, and any changes in funding formulae;
(3)	To review the amount of State and federal dollars appropriated for each job training program conducted in this State, and to review federal requirements for continuous federal funding of the programs;
(4)	To review the number of different State agencies that administer State and federal job training programs, the number of persons employed to implement each job training program, and the amount of State dollars needed annually to implement the program;
(5)	To determine whether federally funded job training programs in this State may lawfully be abolished or reduced in size by the General Assembly, and the impact of such reduction or elimination;
(6)	To conduct public hearings to receive citizen, State agency, and local government comment and experience with the job training programs;
(7)	To conduct other studies or activities to aid the Commission in carrying out its purpose and duties.
(d) The Commission shall make an interim report on its progress to the 1995 General Assembly not later than May 1, 1996, and shall present its final report of findings and recommendations to the 1997 General Assembly upon its convening.  The report shall identify each job training program operating in this State as of January 1, 1995, and shall recommend whether each program should be continued without change, abolished, consolidated with another program, or otherwise modified.
(e) Members of the Commission shall serve without pay but shall  receive per diem and substance in accordance with Chapter 120 of the General Statutes.  The facilities of the State Legislative Building and any other State office building used by the General Assembly shall be available to the Commission for its use.
(f) The Commission may use available clerical employees of the General Assembly, with the approval of the Legislative Services Commission.  The Commission may, with the consent of the Legislative Services Commission, use employees of the Fiscal Research, Legislative Automated Systems, General Research, Legislative Drafting, and Public Information Divisions of the Legislative Services Commission.
(g) Notwithstanding G.S. 96-5(f), there is appropriated from the Worker Training Trust Fund to the General Assembly the sum of twenty-five thousand dollars ($25,000) for the 1995-96 fiscal year and the sum of twenty-five thousand dollars ($25,000) for the 1996-97 fiscal year to implement this section.

PART 9.  OFFICE OF THE GOVERNOR

Requested by:  Representatives Ives, Lemmond   
TOTAL QUALITY MANAGEMENT PROGRAM
Sec. 9.  For the 1995-97 biennium, the provisions of G.S. 143-16.3 do not apply to the Total Quality Management Program in the Office of the Governor.

PART 10.  OFFICE OF STATE BUDGET AND MANAGEMENT

Requested by:  Representatives Ives, Lemmond   
LOCAL FIRE PROTECTION FUNDS
Sec. 10.  The Office of State Budget and Management, in conjunction with the State Property Office, Department of Administration, shall study the current fire protection grant process.  The Office of State Budget and Management shall report to the 1995 General Assembly, 1996 Regular Session, regarding its findings and recommendations. 
In its study the Office of State Budget and Management and the State Property Office shall consider, but are not limited to, the following: 
(1)	Fire protection grant history by political subdivision;
(2)	Inequities in the current grant process;
(3)	Impact of declining proportional shares on a fixed appropriation;
(4)	Improvements that could be made to the grant process including:  
a.	An allocation based on current property values;
b.	A method of updating property values over time; and
c.	The recognition of fire protection funding requirements for new facilities.

PART 11.  DEPARTMENT OF ADMINISTRATION

Requested by:  Representatives Ives, Lemmond   
COST SHARING OF THE PERSONNEL MANAGEMENT INFORMATION SYSTEM
Sec. 11.  The Office of State Personnel shall establish a schedule of fees or charges to be paid by each department and university to cover data processing costs that exceed the appropriation made by the General Assembly for maintenance of the system.  The Office of State Personnel shall present the recommendation for the fee schedule to the Joint Appropriations Subcommittee on General Government and to the Fiscal Research Division during the 1996 Regular Session of the 1995 General Assembly. Departments and universities shall have on-line access to all data on their employees and positions, as well as access to public information on all State employees.

Requested by:  Representatives Ives, Lemmond   
WORKERS' COMPENSATION COST CONTAINMENT PROGRAM PILOT
Sec. 11.1.  The Office of State Budget and Management may establish a pilot program, which shall be known as the Workers' Compensation Cost Containment Program, to reduce the cost to State government of workers' compensation claims filed by State employees.  The Office of State Budget and Management shall, after consultation with the Office of State Personnel, choose, by a process of competitive bidding, a third-party administrator to manage claims processing.  Services provided by the third-party administrator shall include determination of compensability and related questions, incident reporting analysis, incident investigation, medical case management, disability management, and information management.  Reimbursement to the third-party administrator shall be determined as a percentage of realized savings, calculated according to a methodology established by the Office of State Budget and Management.  The Director of the Budget shall select agencies to participate in the pilot program and may transfer lapsed salary funds from the salary accounts of participating agencies to a Workers' Compensation Reserve Fund established in the Office of State Budget and Management for the purpose of paying workers' compensation claims of employees of the participating agencies.
On or before April 1, 1996, the Office of State Budget and Management, after consultation with the Office of State Personnel, shall submit to the General Assembly a report setting forth the status of the program, the results achieved, and recommendations for any further action by the General Assembly as may be required.

PART 12.  DEPARTMENT OF CULTURAL RESOURCES

Requested by:  Representatives Ives, Lemmond   
STATE PRESERVATION COMMISSION
Sec. 12.  (a) G.S. 143B-80.11 reads as rewritten:
"§ 143B-80.11.  Capitol Preservation Commission – Powers and duties.
The Commission shall have the following powers and duties and shall exercise those powers and duties with the approval of the Secretary of Cultural Resources:
(1)	Develop a comprehensive plan and program for the historic preservation and restoration of the State Capitol and Union Square.
(2)	Make all repairs, alterations, and improvements to the State Capitol, including the furnishing and refurnishing of the State Capitol, subject to the availability of funds.
(3)	Receive on behalf of the State, gifts or bequests of artifacts, documents, and other historical objects or resources which contribute to the historical significance of the State Capitol.
(4)	Accept grants and subsidies from and enter into agreements or other transactions with any federal agency, State agency, or other entity.
(5)	Enter into contracts and execute all instruments necessary or convenient for carrying on its operations.
(6)	Make budgetary requests and recommendations to the Governor and the General Assembly regarding the funds needed to properly preserve and maintain the Capitol in accordance with Article 1 of Chapter 143 of the General Statutes.
(7)	Administer the Capitol Preservation Fund as provided in G.S. 143B-80.13.
(8)	Contract with the Department of Administration to provide the security needed for the Capitol and Union Square.
(9)	Do all other things necessary or convenient to carry out the powers granted to it by this Part.
(10)	Adopt rules to implement this Part."
(b) G.S. 143B-80.12 reads as rewritten:
"§ 143B-80.12.  Commission staff.
With the approval of the Secretary of Cultural Resources, the Commission shall appoint and fix the salary of an Executive Director to serve at its pleasure. The Executive Director shall direct the preservation, operation, improvement, maintenance, and repairs needed to the State Capitol Building and Union Square. The Executive Director may hire one secretary to assist with clerical responsibilities."
(c) Section 2 of Chapter 682 of the 1993 Session Laws is repealed.  

Requested by:  Representatives Ives, Lemmond   
TECHNICAL CORRECTION/EXECUTIVE MANSION CURATOR TRANSFERRED
Sec. 12.1.  Section 11.1 of Chapter 324 of the 1995 Session Laws reads as rewritten:
"Sec. 11.1.  The position of Executive Mansion Curator (position number 4149-0101-0006-125) is transferred from the Department of Administration to the Department of Cultural Resources.  This transfer will permit the Department of Cultural Resources to better maintain the historical personal properties of the Executive Mansion.  This provision does not affect, in any way, the jurisdiction of the Department of Administration over the Executive Mansion and its grounds."

Requested by:  Representatives Ives, Lemmond   
NUMBER OF POSITIONS IN DEPARTMENT OF CULTURAL RESOURCES REDUCED
Sec. 12.2. Notwithstanding Section 28.2 of Chapter 324 of the 1995 Session Laws, there is a total reduction in the Continuation Budget Operations for the Department of Cultural Resources of 19.5 positions for the 1995-96 fiscal year and of 19.5 positions for the 1996-97 fiscal year.  The revisions in Chapter 324 of the 1995 Session Laws, the Continuation Budget Operations Appropriations Act, for the Department of Cultural Resources for the 1995-96 fiscal year and for the 1996-97 fiscal year are as follows:

1995-96       1996-97
(1230) Archives and History	 ($90,618) R  ($90,618)  R
		-3.00        -3.00
(1241) Historic Sites	 ($77,452) R  ($77,452)  R
		-3.00        -3.00
(1270) Museum of History	($269,322) R ($269,322)  R
		-9.50        -9.50
(1320) Museum of Art	 ($29,495) R   ($29,495) R
		-1.00        -1.00

Requested by:   Representatives Culpepper, Ives, Lemmond
NEWBOLD-WHITE HOUSE
Sec. 12.2.  The Department of Cultural Resources shall acquire and operate the Newbold-White House in Perquimans County as a State Historic Site together with adjacent lands now owned by the Perquimans County Restoration Association, provided that the acquisition can be effected at no capital expense to the State.  The Department of Cultural Resources shall seek the recommendations of the North Carolina Historical Commission in preparing a plan for the operation and maintenance of the Newbold-White House as a State Historic Site and shall report the findings and recommendations to the 1995 General Assembly, 1996 Regular Session.  In connection with the plan, the Department of Cultural Resources may enter into an agreement with the Perquimans County Restoration Association concerning the operation of the Newbold-White House as a State Historic Site.

Requested by:  Representatives Ives, Lemmond   
HISTORIC SITES REPAIRS AND RENOVATIONS FUNDS
Sec. 12.3.  Funds allocated in Section 5.3 of Chapter 324 of the 1995 Session Laws to the Office of State Budget and Management for the Repairs and Renovations Fund may be used to make needed repairs and renovations at the State Historic Sites.

Requested by:  Representatives Ives, Lemmond   
GRANTS TO PUBLIC LIBRARIES AND LOCAL MUSEUMS
Sec. 12.4.  (a)	Funds in the amount of two million dollars ($2,000,000) appropriated in this act to the Department of Cultural Resources for the 1995-96 fiscal year shall be allocated as follows:
(1) 	The sum of one million dollars ($1,000,000) shall be used as State Aid to Public Library grants; and
(2)	The sum of one million dollars ($1,000,000) shall be used as grants-in-aid for local museums.  Funds for grants-in-aid under this subdivision shall be awarded only if the funds are matched on the basis of one dollar ($1.00) of non-State funds for every one dollar ($1.00) of State funds.
(b)	The Department of Cultural Resources shall report to the Fiscal Research Division by September 1, 1995, regarding the grants made in accordance with this section.
PART 13.  STATE BOARD OF ELECTIONS

Requested by:  Representatives Ives, Lemmond   
COUNTIES PRINT ALL BALLOTS
Sec. 13.  (a) G.S. 163-108(b) reads as rewritten:
"(b)	No later than 10 days after the time for filing notices of candidacy under the provisions of G.S. 163-106(c) has expired, the chairman of the State Board of Elections shall certify to the chairman of the county board of elections in each county in the appropriate district the names of candidates for nomination to the following offices who have filed the required notice and pledge and paid the required filing fee to the State Board of Elections, so that their names may be printed on the official ballots: United States Senator, Member of the House of Representatives of the United States, Governor, and all other State offices."
(b) G.S. 163-109 reads as rewritten:
"§ 163-109.  Primary ballots; printing and distribution.
(a)	General. – In primary elections there shall be as many kinds of official State, district, and county ballots as there are legally recognized political parties, members of which have filed notice of their candidacy for nomination. The ballots for each political party shall be printed to conform to the requirements of G.S. 163-140(c) and to show the party's name, the name of each party member who has filed notice of candidacy, and the office for which each aspirant is a candidate.
Only those who have filed the required notice of candidacy and pledge with the proper board of elections, and who have paid the required filing fee, shall have their names printed on the official ballots of the political party with which affiliated.
	(c)	Ballots to Be Furnished by County Board of Elections. – It shall be the duty of the county board of elections to print official ballots for each political party having candidates for the following offices to be voted for in the primary:
United States Senator,
Member of the House of Representatives of the United
States Congress, Governor,
All other State offices
State Senator,
Member of the House of Representatives of the General Assembly, and All county offices.
In printing primary ballots, the county board of elections shall be governed by instructions of the State Board of Elections with regard to width, color, kind of paper, form, and size of type.
In its discretion, the county board of elections may print separate primary ballots for the district and county offices listed in this subsection, or it may combine some or all of them on a single ballot. In a primary election, if there shall be 10 or more candidates for nomination to any one office, the county board of elections in its discretion may prepare a separate ballot for said office.
Three days before the primary election, the chairman of the county board of elections shall distribute official State, district, and county ballots to the chief judge of each precinct in his county, and the chief judge shall give him a receipt for the ballots received. On the day of the primary it shall be the chief judge's duty to have all the ballots delivered to him available for use at the precinct voting place.
(d)	Repealed by Session Laws 1977, c. 265, s. 8."
(c) G.S. 163-114 reads as rewritten:
"§ 163-114. Filling vacancies among party nominees occurring after nomination and before election.
If any person nominated as a candidate of a political party for one of the offices listed below (either in a primary or convention or by virtue of having no opposition in a primary) dies, resigns, or for any reason becomes ineligible or disqualified before the date of the ensuing general election, the vacancy shall be filled by appointment according to the following instructions:

Position                     	|	Vacancy is to be filled by
	Any elective State office    	|	  appointment of State
	United States Senator        	  executive committee of
                             	|	  political party in which
	                             	|	  vacancy occurs

A district office, including:	|
Member of the United States  	|
  House of Representatives   	|
Judge of superior court	|
Judge of district court      	| 	Appropriate district executive
District Attorney            	|	  committee of political party
State Senator in a multi-    	| 	  in which vacancy occurs
  county senatorial district 	|
Member of State House of     	|
  Representatives in a multi-	|
  county representative      	|
  district                   	|

State Senator in a single-   	| 	County executive committee
  county senatorial district 	| 	  of political party in which
Member of State House of     	|	  vacancy occurs, provided, in
  Representatives in a       	|	  the case of the State
  single-county              	|	  Senator or State
  representative district    	|	  Representative in a
Any elective county office   	|	  single-county district where
	  not all the county is
	  located in that district,
  then in voting, only those
  members of the county
  executive committee who
	  reside within the
  district shall vote

Judge of Superior Court in a	|	County executive committee
  single-county superior    	|	  of political party in
  court district where the 	|	  which vacancy occurs;
  district is the whole  	|	  provided, in the case of
  county or part of the 	  a superior court judge in a
  county	  single-county district where
  not all the county is
  located in that district,
  then in voting, only those
  members of the county
  executive committee who
  reside within the
  district shall vote

Judge of Superior Court in a	|	Appropriate district
  multi-county superior   	|	  executive committee of
  court district             	|	  political party in which
  vacancy occurs.
The party executive making a nomination in accordance with the provisions of this section shall certify the name of its nominee to the chairman of the board of elections, State or county, charged with the duty of certifying notices of candidacy for the office under G.S. 163-108.  If at the time a nomination is made under this section the general election ballots have already been printed, the provisions of G.S. 163-139 shall apply. If any person nominated as a candidate of a political party vacates such nomination and such vacancy arises from a cause other than death and the vacancy in nomination occurs more than 120 days before the general election, the vacancy in nomination may be filled under this section only if the appropriate executive committee certifies the name of the nominee in accordance with this paragraph at least 75 days before the general election.
In a county which is partly in a multi-county superior court district, in choosing that county's member or members of the superior court district executive committee for the multi-county district, only the county convention delegates or county executive committee members who reside within the area of the county which is within that multi-county district may vote.
In a county not all of which is located in one congressional district, in choosing the congressional district executive committee member or members from that area of the county, only the county convention delegates or county executive committee members who reside within the area of the county which is within the congressional district may vote.
In a county which is partly in a multi-county senatorial district or which is partly in a multi-county House of Representatives district, in choosing that county's member or members of the senatorial district executive committee or House of Representatives district executive committee for the multi-county district, only the county convention delegates or county executive committee members who reside within the area of the county which is within that multi-county district may vote."
(d) G.S. 163-136(b) as amended by Section 14 of Chapter 324 of the Session Laws of 1995 reads as rewritten:
"(b)	Printing and Distribution. – The printing and distribution of ballots shall be arranged, handled, and paid for as follows:
(1)	For municipal elections, primaries, and referenda, by the municipal authorities conducting the election, primary, or referendum, at the expense of the municipality.
(2)	For all elections, primaries, and referenda, not specified in the preceding subdivision, by the responsible county board of elections, at the expense of the county.
		."
(e) G.S. 163-137(b) is repealed.
(f) G.S. 163-139(a) reads as rewritten:
"(a)	Before General or Special Election. – After the official ballots for a general or special election have been printed by the county elections board, the death, resignation, or disqualification of a candidate whose name appears on the official ballots shall not require that the ballots be reprinted, although the State Board of Elections may order the ballots reprinted if it desires to do so.
If a candidate dies, resigns, or otherwise becomes disqualified after his name has been printed on an official general or special election ballot, and if a nomination has been made to fill the vacancy as authorized by G.S. 163-114, the name of the substituted nominee shall not appear on the official ballots unless the responsible board of elections decides that it is feasible and advisable to reprint the ballots to show the name of the substituted nominee. If the ballots are not reprinted, a vote cast for the candidate whose name is printed on the ballot shall be counted as a vote for the substituted candidate whose name has been certified to the appropriate board of elections under the provisions of G.S. 163-114."
(g) G.S. 163-140(a) reads as rewritten:
"(a)	Kinds of General Election Ballots; Right to Combine. – For purposes of general elections, there shall be seven kinds of official ballots entitled:
(1)	Ballot for presidential electors
(2)	Ballot for United States Senator
(3)	Ballot for member of the United States House of Representatives
(4)	State ballot
(5)	County ballot
(6)	Repealed by Session Laws 1973, c. 793, s. 56.
(7)	Ballot for constitutional amendments and other propositions submitted to the people.
Use of official ballots shall be limited to the purposes indicated by their titles. The printing on all ballots shall be plain and legible but, unless large type is specified by this section, type larger than 10-point shall not be used in printing ballots. All general election ballots shall be prepared in such a way as to leave sufficient blank space beneath each name printed thereon in which a voter may conveniently write the name of any person for whom he may desire to vote.
Unless prohibited by this section, the county board of charged by law with printing ballots may, in its discretion, combine any two or more official ballots. Whenever two or more ballots are combined, the voting instructions for the State ballot set out in subsection (b)(4) of this section shall be used, except that if the two ballots being combined do not contain a multi-seat race, then the second sentence of instruction b. shall not appear on the ballot.
Contests in the general election for seats in the State House of Representatives and State Senate shall be on ballots that are separate from ballots containing non-legislative contests, except where the voting system used makes separation of ballots impractical. State House and State Senate contests shall be on the same ballot, unless one is a single-seat contest and the other a multi-seat contest.
If the county board of elections divides the State ballot into two or more ballots, all candidates for superior court shall appear on the same ballot except that the county board of elections may divide the election of superior court judges into two ballots either because of length of the ballot or to provide a separate ballot for multi-seat races but only superior court judges shall be on those ballots, and all candidates for the Appellate Division shall appear on the same ballot."
(h) G.S. 163-140(b)(1) reads as rewritten:
"(1)	Ballot for Presidential Electors: On the ballot for presidential electors there shall be printed, under the titles of the offices, the names of the candidates for President and Vice-President of the United States nominated by each political party qualified under the provisions of G.S. 163-96, and the names of the unaffiliated candidates for President and Vice-President qualified under the provisions of G.S. 163-122 and G.S. 163-209. A separate column shall be assigned to each political party with candidates on the ballot, and a separate column shall be assigned to each pair of unaffiliated candidates for President and Vice-President, if any, and the columns shall be separated by distinct black lines. At the head of each party column the party name shall be printed in large type and below it a circle, one-half inch in diameter, and below the circle the names of the party's candidates for President and Vice-President in that order. At the head of the columns for unaffiliated candidates shall be printed in large type the words 'Unaffiliated Candidates', and below it a circle, one-half inch in diameter, and below the circle the names of a pair of unaffiliated candidates for President and Vice-President. On the face of the ballot, above the party column division, the following instructions shall be printed in heavy black type:
a.	To vote this ballot, make a cross (X) mark in the circle below the name of the political party for whose candidates you wish to vote or below the heading for the unaffiliated candidates for whom you wish to vote.
b.	A vote for the names of a political party's candidates for President and Vice-President is a vote for the electors of that party, and a vote for the names of unaffiliated candidates for President and Vice-President is a vote for electors named by the unaffiliated candidate for President, the names of whom are on file with the Secretary of State.
c.	If you tear or deface or wrongly mark this ballot, return it and get another.
	On the bottom of the ballot shall be printed an identified facsimile of the signature of the chairman of the county board of elections.
		The official ballot for presidential electors shall not be combined with any other official ballots."
(i) G.S. 163-140(b)(2) reads as rewritten:
"(2)	Ballot for United States Senator: Beneath the title and general instructions set out in this subsection, the ballot for United States Senator shall be divided into parallel columns separated by distinct black lines. The county board of elections shall assign a separate column to each political party having a candidate for the office and one to unaffiliated candidates, if any. At the head of each party column the party's name shall be printed in large type, and at the head of the column for unaffiliated candidates shall be printed in large type the words 'Unaffiliated Candidates.' The name of each political party's candidate for United States Senator shall be printed in the appropriate party column, and the names of unaffiliated candidates for the office shall be printed in the column headed 'Unaffiliated Candidates.' At the left of each name shall be printed a voting square, and in each column all voting squares shall be arranged in a perpendicular line. On the face of the ballot, above the party and unaffiliated column division, the following instructions shall be printed in heavy black type:
'a.	Vote for only one candidate.
b.	If you tear or deface or wrongly mark this ballot, return it and get another.'
		On the bottom of the ballot shall be printed an identified facsimile of the signature of the chairman of the county board of elections.
		When the ballot for United States Senator is combined with a ballot for another office, below the party name in each column shall be printed a circle, one-half inch in diameter, around which shall be plainly printed the following instruction: 'For a straight ticket, mark within this circle.' The following instructions, in lieu of those specified in the preceding paragraph, shall be printed in heavy black type on the face of the combined ballot to the top above the party and unaffiliated column division:
'a.	To vote for all candidates of one party (a straight ticket), make a cross (X) mark in the circle of the party for whose candidates you wish to vote.
b.	You may vote a split ticket by marking a cross (X) mark in the party circle and then making a cross (X) mark in the square opposite the name of the candidate(s) of a different party for whom you wish to vote.
c.	You may also vote a split ticket by not marking a cross (X) mark in the party circle, but by making a cross (X) mark in the square opposite the name of each candidate for whom you wish to vote.
d.	If you tear or deface or wrongly mark this ballot, return it and get another.'"
(j) G.S. 163-140(b)(3) reads as rewritten:
"(3)	Ballot for Member of the United States House of Representatives: Beneath the title and general instructions set out in this subsection, the congressional district ballot for member of the United States House of Representatives shall be divided into parallel columns separated by distinct black lines. The county board of elections shall assign a separate column to each political party having a candidate for the office and one to unaffiliated candidates, if any. At the head of each party column the party's name shall be printed in large type, and at the head of the column for unaffiliated candidates shall be printed in large type the words 'Unaffiliated Candidates.' The name of each political party's candidate for member of the United States House of Representatives from the congressional district shall be printed in the appropriate party column, and the names of unaffiliated candidates for the office shall be printed in the column headed 'Unaffiliated Candidates.' At the left of each name shall be printed a voting square, and in each column all voting squares shall be arranged in a perpendicular line. On the face of the ballot, above the party and unaffiliated column division, the following instructions shall be printed in heavy black type:
'a.	Vote for only one candidate.
b.	If you tear or deface or wrongly mark this ballot, return it and get another.'
		On the bottom of the ballot shall be printed an identified facsimile of the signature of the chairman of the county board of elections.
		When the ballot for member of the United States House of Representatives is combined with a ballot for another office, below the party name in each column shall be printed a circle, one-half inch in diameter, around which shall be plainly printed the following instruction: 'For a straight ticket, mark within this circle.' The following instructions, in lieu of those specified in the preceding paragraph, shall be printed in heavy black type on the face of the combined ballot at the top above the party and unaffiliated column division:
'a.	To vote for all candidates of one party (a straight ticket), make a cross (X) mark in the circle of the party for whose candidates you wish to vote.
b.	You may vote a split ticket by marking a cross (X) mark in the party circle and then making a cross (X) mark in the square opposite the name of the candidate(s) of a different party for whom you wish to vote.
c.	You may also vote a split ticket by not marking a cross (X) mark in the party circle, but by making a cross (X) mark in the square opposite the name of each candidate for whom you wish to vote.
d.	If you tear or deface or wrongly mark this ballot, return it and get another.'"
(k)  G.S. 163-140(b)(4) reads as rewritten:
"(4)	State Ballot: Beneath the title and general instructions set out in this subsection, the ballot for single-seat contests for State officers, and for all State officers where mechanical voting machines are used (including judges of the superior court) shall be divided into parallel columns separated by distinct black lines. The county board of elections shall assign a separate column to each political party having candidates for State offices and one to unaffiliated candidates, if any. At the head of each party column the party's name shall be printed in large type, and at the head of the column for unaffiliated candidates shall be printed in large type the words 'Unaffiliated Candidates.' Below the party name in each column shall be printed a circle, one-half inch in diameter, around which shall be plainly printed the following instruction: 'For a straight ticket, mark within this circle.' With distinct black lines, the county board of elections shall divide the columns into horizontal sections and, in the customary order of office, assign a separate section to each office or group of offices to be filled. On a single line at the top of each section shall be printed a direction as to the number of candidates for whom a vote may be cast. If candidates are to be chosen for different terms to the same office, the term in each instance shall be printed as part of the title of the office.
		The name or names of each political party's candidate or candidates for each office listed on the ballot shall be printed in the appropriate office section of the proper party column, and the names of unaffiliated candidates shall be printed in the appropriate office section of the column headed 'Unaffiliated Candidates.' At the left of each name shall be printed a voting square, and in each column all voting squares shall be arranged in a perpendicular line.
		On the face of the ballot, above the party and unaffiliated column division, the following instructions shall be printed in heavy black type, and the words 'you must also' in instruction c. shall be underlined:
'a.	To vote for all candidates of one party (a straight ticket), make a cross (X) mark in the circle of the party for whose candidates you wish to vote.
b.	You may vote a split ticket by not marking a cross (X) mark in the party circle, but by making a cross (X) mark in the square opposite the name of each candidate for whom you wish to vote.
c.	You may also vote a split ticket by marking a cross (X) mark in the party circle and then making a cross (X) mark in the square opposite the name of any candidate you choose of a different party. In any multi-seat race where a party circle is marked and you vote for candidates of another party, you must also make a cross (X) mark opposite the name of any candidate you choose of the party for which you marked the party circle to assure your vote will count.
d.	If you tear or deface or wrongly mark this ballot, return it and get another.'
		On the bottom of the ballot shall be printed an identified facsimile of the signature of the chairman of the county board of elections. If the State ballot contains no multi-seat race, then the second sentence of instruction b. shall not appear on the ballot."
(l) G.S. 163-140(b)(7) reads as rewritten:
"(7)	Ballot for Constitutional Amendments and Other Propositions Submitted to the People: The form of ballot used in submitting a constitutional amendment or other proposition or issue to the voters of the entire State shall be prepared by the State Board of Elections and approved by the Attorney General. The form of ballot used in submitting propositions and issues to the voters of a single county or subdivision shall be prepared by the county board of elections. In a referendum the issue presented to the voters with respect to each constitutional amendment, question, or proposition, shall be printed in the form laid down by the General Assembly or other body submitting it. If more than one amendment, question, or proposition is submitted on a single ballot, each shall be printed in a separate section, and the sections shall be numbered consecutively. On the face of the ballot, above the issue or issues being submitted, shall be printed instructions for marking the voter's choice, in addition to the following instruction: 'If you tear or deface or wrongly mark this ballot, return it and get another.' On the bottom of the ballot shall be printed an identified facsimile of the signature of the chairman of the county board of elections."
(m) G.S. 163-140(c)(3) reads as rewritten:
"(3)	Rotation of Positions on Ballots Among Candidates: The county board of elections responsible for printing and distributing primary election ballots shall have them printed so that the names of opposing candidates for any office shall, as far as practicable, occupy alternate positions upon the ballot, to the end that the name of each candidate shall occupy with reference to the name of every other candidate for the same office, first position, second position, and every other position, if any, upon an equal number of ballots; and the ballots shall be distributed among the precinct voting places impartially and without discrimination."
(n) G.S. 163-140(c)(4) reads as rewritten:
"(4)	Facsimile Signatures: On the bottom of each primary ballot shall be printed an identified facsimile of the signature of the chairman of the county board of elections responsible for its preparation."
(o) G.S. 163-227.3 is repealed.

Requested by:   Representatives Lemmond, Ives
STATE BOARD OF ELECTIONS AUTHORITY TO SELL SOFTWARE FOR CAMPAIGN REPORTING.
Sec. 13.1. (a) G.S. 66-58(c) as amended by Chapter 247 of the 1995 Session Laws reads as rewritten:
"(c)	The provisions of subsection (a) shall not prohibit:
(1)	The sale of products of experiment stations or test farms.
(2)	The sale of learned journals, works of art, books or publications of the Department of Cultural Resources or other agencies, or the Supreme Court Reports or Session Laws of the General Assembly.
(3)	The business operation of endowment funds established for the purpose of producing income for educational purposes; for purposes of this section, the phrase "operation of endowment funds" shall include the operation by public postsecondary educational institutions of campus stores, the profits from which are used exclusively for awarding scholarships to defray the expenses of students attending the institution; provided, that the operation of such stores must be approved by the board of trustees of the institution, and the merchandise sold shall be limited to educational materials and supplies, gift items and miscellaneous personal-use articles. Provided further that sales at campus stores are limited to employees of the institution and members of their immediate families, to duly enrolled students of the campus at which a campus store is located and their immediate families, to duly enrolled students of other campuses of the University of North Carolina other than the campus at which the campus store is located, to other campus stores and to other persons who are on campus other than for the purpose of purchasing merchandise from campus stores. It is the intent of this subdivision that campus stores be established and operated for the purpose of assuring the availability of merchandise described in this Article for sale to persons enumerated herein and not for the purpose of competing with stores operated in the communities surrounding the campuses of the University of North Carolina.
(4)	The operation of lunch counters by the Department of Human Resources as blind enterprises of the type operated on January 1, 1951, in State buildings in the City of Raleigh.
(5)	The operation of a snack bar and cafeteria in the State Legislative Building.
(6)	The maintenance by the prison system authorities of eating and sleeping facilities at units of the State prison system for prisoners and for members of the prison staff while on duty, or the maintenance by the highway system authorities of eating and sleeping facilities for working crews on highway construction or maintenance when actually engaged in such work on parts of the highway system.
(7)	The operation by penal, correctional or facilities operated by the Department of Human Resources or by the State Department of Agriculture, of dining rooms for the inmates or clients or members of the staff while on duty and for the accommodation of persons visiting such inmates or clients, and other bona fide visitors.
(8)	The sale by the Department of Agriculture of livestock, poultry and publications in keeping with its present livestock and farm program.
(9)	The operation by the public schools of school cafeterias.
(10)	Sale by any State correctional or other institution of farm, dairy, livestock or poultry products raised or produced by it in its normal operations as authorized by the act creating it.
(11)	The sale of textbooks, library books, forms, bulletins, and instructional supplies by the State Board of Education, State Department of Public Instruction, and local school authorities.
(12)	The sale of North Carolina flags by or through the auspices of the Department of Administration, to the citizens of North Carolina.
(13)	The operation by the Department of Correction of forestry management programs on State-owned lands, including the sale on the open market of timber cut as a part of such management program.
(14)	The operation by the Department of Correction of facilities to manufacture and produce traffic and street name signs for use on the public streets and highways of the State.
(15)	The operation by the Department of Correction of facilities to manufacture and produce paint for use on the public streets and highways of the State.
(16)	The performance by the Department of Transportation of dredging services for a unit of local government.
(17)	The sale by the State Board of Elections to political committees and candidate committees of computer software designed by or for the State Board of Elections to provide a uniform system of electronic filing of the campaign finance reports required by Article 22A of Chapter 163 of the General Statutes and to facilitate the State Board's monitoring of compliance with that Article. This computer software for electronic filing of campaign finance reports shall not exceed a cost of one hundred dollars ($100.00) to any political committee or candidate committee without the State Board of Elections first notifying in writing the Joint Legislative Commission on Governmental Operations."
(b) The funds appropriated in this act to the State Board of Elections for the purchase of developing computer software to provide a uniform system of electronic filing of campaign finance reports shall be expended for development of software for use by the State Board of Elections and political committees or candidate committees.

Requested by:  Representatives Ives, Lemmond   
FUNDS FOR STATEWIDE COMPUTERIZED VOTER REGISTRATION.
Sec. 13.2. (a)	The State Board of Elections shall promulgate rules for a statewide computerized voter registration system following the basic client-server design of Alternative C and D as described in the Needs Assessment and Requirements Analysis report prepared pursuant to Section 16 of Chapter 762 of the 1993 Session Laws, Regular Session 1994. Those rules shall include data format standards, data communication standards, and data content standards. The State Board of Elections shall promulgate those rules, including the standards, no later than July 1, 1996. Counties shall adhere to the rules and standards no later than July 1, 1997. The statewide computerized voter registration system shall utilize current technology and be consistent with State standards. That system shall be developed by the State Board of Elections and processed on the computer/servers of the State Information Processing Services Division of the Office of the State Controller. 
(b) There are established two reserve funds, to be known as the Reserve Fund for Statewide Computerized Voter Registration/Central Server Component and the Reserve Fund for Statewide Computerized Voter Registration/County Grants Component. The reserve funds shall be funded as follows:
(1)	For the 1995-96 fiscal year, funds in the amount of one million five hundred thousand dollars ($1,500,000) shall be transferred from the reserve fund created by Section 16(b) of Chapter 769 of the 1993 Session Laws, Regular Session 1994, to the Reserve Fund for Statewide Computerized Voter Registration/Central Server Component. The State Board of Elections shall use those funds for software development, communications and computer charges, and data conversion charges to implement the central server component of the system designed by the rules promulgated under subsection (a) of this section. The State Board of Elections shall use no more than four hundred forty thousand dollars ($440,000) of those funds to purchase hardware, office furniture, and the services of time-limited computer personnel. 
(2)	Of the funds appropriated in this act for the 1996-97 fiscal year to the State Board of Elections, the sum of three million five hundred thousand dollars ($3,500,000) shall be deposited in the Reserve Fund for Statewide Computerized Voter Registration/County Grants Component, to be used by the State Board of Elections for grants-in-aid to counties to purchase computer equipment, data communication charges, data conversion, computer consultants or time-limited personnel at the State Board of Elections, travel, education, and training to ensure that all counties' minimum needs for participation in the statewide computerized voter registration system are met. Any additional needs beyond the minimum required for system participation are the responsibility of the counties. The State Board of Elections shall develop and issue rules related to a grant process for grant applications and grant awards to counties. The rules shall be developed and issued no later than February 15, 1996. Grants-in-aid to county boards of elections shall be awarded no later than July 1, 1996. The rules shall provide that the computerized voter registration system has uniform quality statewide, and the grants shall be issued in such a way as to achieve that goal within available resources. In developing the rules, the State Board of Elections shall consider giving special attention to:
a.	Low-wealth counties; 
b.	Counties that have demonstrated a willingness to invest in computer infrastructure; and
c.	Counties that demonstrate a willingness to provide matching funds.
(c) The State Board of Elections may spend money from the  reserve funds created by subsection (b) of this section only after the State Board of Elections and the Information Resource Management Commission have jointly approved and presented a detailed implementation plan for statewide computerized voter registration to the Joint Legislative Commission on Governmental Operations. That implementation plan shall include:
(1)	A description of the system being implemented;
(2)	A description of the system's capabilities;
(3)	An itemized estimate of the costs of the system, with a justification for each item;
(4)	A list of the counties to be brought into the system during the fiscal year;
(5)	A project management plan.
After their initial joint report, the State Board of Elections and the Information Resource Management Commission shall make quarterly joint reports to the Joint Legislative Commission on Governmental Operations, describing the status of the project, listing the counties that have been brought into the system and that are planned to be brought into the system, and the costs.
(d) To the extent that this section or action taken under it conflicts with G.S. 163-82.11 through G.S. 163-82.13 or Section 16 of Chapter 769 of the 1993 Session Laws, this section or those actions prevail to the extent of the conflict.  Except to the extent of the conflict, Section 16 of Chapter 769 of the 1993 Session Laws remains in effect.

PART 14.  STATE CONTROLLER

PART 15.  COLLEGES AND UNIVERSITIES

Requested by:   Representatives Grady, Preston
MEHARRY MEDICAL COLLEGE
Sec. 15. The Board of Governors of The University of North Carolina shall develop and implement a plan to recruit and attract graduates of Meharry Medical College who are North Carolina residents for whom State financial support was provided to Meharry Medical College.  The Board's plan shall include informing the students of the State support, providing information about medical residency opportunities in North Carolina, and any other relevant information about opportunities for medical and dental practice in North Carolina.  The Office of Rural Health and the Area Health Education Centers shall assist the Board in developing and implementing the plan.  The Board shall include State supported graduates of Meharry Medical College in its monitoring report required by G.S. 143-613(d) on primary care physicians.  Meharry Medical College shall supply information necessary for the Board to comply with this section.

Requested by:   Representatives Grady, Preston, Ramsey
SCHOOL OF SCIENCE AND MATHEMATICS
Sec. 15.1.  G.S. 116-235 (b) reads as rewritten:
"(b)	Students. –
(1)	Admission of Students. – The School shall admit students in accordance with criteria, standards, and procedures established by the Board of Trustees.  To be eligible to be considered for admission, an applicant must be a legal resident of the State, as defined by G.S. 116-143.1(a)(1); eligibility to remain enrolled in the School shall terminate at the end of any school year during which a student becomes a nonresident of the State.  The Board of Trustees shall ensure, insofar as possible without jeopardizing admission standards, that an equal number of qualified rising high school juniors is admitted to the program and to the residential summer institutes in science and mathematics from each of North Carolina's congressional districts.  In no event shall the deviation in the number of rising high school juniors offered admission to the program from each of North Carolina's congressional districts deviate more than two percentage points from the average number per district who are offered admission.
(2)	School Attendance. – Every parent, guardian, or other person in this State having charge or control of a child who is enrolled in the School and who is less than 16 years of age shall cause such child to attend school continuously for a period equal to the time which the School shall be in session.  No person shall encourage, entice, or counsel any child to be unlawfully absent from the School.  Any person who aids or abets a student's unlawful absence from the School shall, upon conviction, be guilty of a Class 3 misdemeanor.  The Director of the School shall be responsible for implementing such additional policies concerning compulsory attendance as shall be adopted by the Board of Trustees, including regulations concerning lawful and unlawful absences, permissible excuses for temporary absences, maintenance of attendance records, and attendance counseling.
(3)	Student Discipline. – Rules of conduct governing students of the School shall be established by the Board of Trustees.  The Director, other administrative officers, and all teachers, substitute teachers, voluntary teachers, teacher aides and assistants, and student teachers in the School may use reasonable force in the exercise of lawful authority to restrain or correct pupils and maintain order."

Requested by:   Representatives Fox, Grady, Preston
UNC VISUAL IMPAIRMENT TEACHER TRAINING CURRICULUM
Sec. 15.2.  (a)	The Board of Governors of The University of North Carolina shall select a school of education from within The University of North Carolina and direct the school to establish an interstate consortium of universities located in the southeastern United States with the following purposes:
(1)	To collaboratively devise an appropriate curriculum for the training of teachers to work with visually impaired students.
(2)	To seek foundation grants to support the cooperative program of teacher education.
(3)	To work together in the implementation and operation of the program providing the needed training experiences for students from those states that become a part of the consortium.
(b)	The school of education designated by the Board of Governors of The University of North Carolina to establish the interstate consortium shall try to recruit one university from each of the states in the southeastern United States.  The program developed by the interstate consortium shall be operated at the school of education designated by the Board of Governors to undertake the project and shall utilize technology for long-distance learning within the State and among the other states in the consortium.  The program shall be funded by all states participating in the consortium in addition to grants obtained by the consortium.
(c)	The program designed by the consortium shall be implemented collaboratively with the North Carolina Department of Human Resources through the Division of Services for the Blind.  The Governor Morehead School shall be used as a clinical site for the students in the program.  The program shall be designed to meet certification requirements that are set by the licensing agencies in the states participating in the consortium.  The program shall offer a master degree in visual impairments and shall also offer courses for special education teachers to enable them to extend their certification to include visual impairments.
(d)	The Board of Governors of The University of North Carolina shall report to the Joint Legislative Education Oversight Commission by March 1, 1996, regarding the progress in implementing this section.

Requested by:   Representatives Grady, Preston
UNC CAPITAL IMPROVEMENT PRIORITIES
Sec. 15.3.  (a)	The Board of Governors of The University of North Carolina shall develop a capital improvement request process that can be used to make its capital priorities across campuses known to the General Assembly.  This process shall include needs criteria based on mission, enrollment, adequacy of facilities, the functional age of the facilities, utilization of facilities and other objective factors.
(b)	The Board of Governors shall report to the Joint Legislative Education Oversight Committee by April 1, 1996, regarding the development of the capital improvement request process.

Requested by:   Representatives Grady, Preston, Rogers
ECU MEDICAL SCHOOL RECEIPTS
Sec. 15.4.  Chapter 116 of the General Statutes is amended by adding a new section to read:
"§ 116-36.6.  East Carolina University School of Medicine; Medicare receipts.
The East Carolina University School of Medicine shall request, on a regular basis consistent with the State's cash management plan, funds earned by the School from Medicare reimbursements for education costs.  Upon receipt, these funds shall be allocated as follows:
(1)	The portion of the Medicare reimbursement generated through the effort and expense of the School of Medicine's Medical Faculty Practice Plan shall be transferred to the appropriate Medical Faculty Practice Plan account within the School of Medicine.  The Medical Faculty Practice Plan shall assume responsibility for any of these funds that subsequently must be refunded due to final audit settlements.
(2)	The funds from this source budgeted by the General Assembly as part of the School of Medicine's General Fund budget code shall be credited to that code as a receipt.
(3)	The remainder of the funds shall be transferred to a special fund account on deposit with the State Treasurer.  This special fund account shall be used for any necessary repayment of Medicare funds due to final audit settlements for funds allocated under subdivision (2) of this subsection.  When the amount of these reimbursement funds has been finalized by audit for each year, those funds remaining in the special fund shall be available for specific capital improvement projects for the East Carolina University School of Medicine.  Requests by East Carolina University for use of these funds shall be made to the Board of Governors of The University of North Carolina.  Approval of projects by the Board of Governors shall be reported to the Joint Legislative Commission on Governmental Operations, and the reports shall include projected costs and sources of funds for operation of the approved projects."

Requested by:   Representatives Grady, Preston
STATE EDUCATION ASSISTANCE AUTHORITY/FEDERAL MATCHING FUNDS
Sec. 15.5. Funds appropriated in this act to the Board of Governors of The University of North Carolina for use by the State Education Assistance Authority to match federal grants under the Federal State Student Incentive Grant program shall remain available to assist needy students in meeting postsecondary education expenses irrespective of the receipt by the State Education Assistance Authority of any federal funds for such purpose.  In the event federal funds are not available for such purposes, the eligibility for funds under this section shall be limited to resident students attending a constituent institution of The University of North Carolina, a community college as defined by G.S. 115D-2(2), or a private institution as defined by G.S. 116-22(1).

Requested by:   Representatives Grady, Preston
MILITARY PERSONNEL/BUDGETING OF SUMMER SCHOOL CREDIT HOURS
Sec. 15.6.  For State budget purposes, credit hours taken in summer school at a constituent institution of The University of North Carolina by military personnel as defined in G.S. 116-143.3(a) and G.S. 116-143.3(b) shall be budgeted as resident credit hours.

Requested by:   Representatives Grady, Preston
REPORTS ON UNC VENDING FACILITIES
Sec. 15.7.  G.S. 116-36.4 reads as rewritten:
"§ 116-36.4.  Vending facilities.
Each institution shall provide to the director of the Budget and the State Auditor such information as they may from time to time require concerning the use of net proceeds from operations of vending facilities for the previous fiscal year under G.S. 116-36.1.  Net proceeds may be used only as authorized by the Board of Governors, but this section does not authorize expenditures for purposes not otherwise authorized by law.."

Requested by:  Representatives Grady, Preston 
ALLIED HEALTH PROFESSIONS
Sec. 15.8.  Of the funds provided to the Board of Governors for expansion funding through receipts, the amount of $1,800,000 each fiscal year of the biennium shall be allocated each year for expansion of programs offerings and enrollment for training of allied health professionals.

Requested by:   Representatives Grady, Preston
AHEC/SCHOOL OF NURSING CENTERS
Sec. 15.9.  Of the funds provided to the Board of Governors of The University of North Carolina for expansion funding through receipts for University Institutional Programs, the sum of two million dollars ($2,000,000) shall be allocated each year of the biennium for the Area Health Education Centers for initiatives in primary care and training of mid-level practitioners.  Of these additional funds, the sum of twenty-five thousand dollars ($25,000) shall be used to increase funding for the Raleigh School of Nurse Anesthesia from fifty thousand dollars ($50,000) to seventy-five thousand dollars ($75,000) per year.

Requested by:   Representatives Grady, Preston
UNC PILOT OFF-CAMPUS SITES
Sec. 15.10.  Of the funds provided to the Board of Governors of The University of North Carolina for expansion funding through receipts in this act, one million three hundred seventy-five thousand dollars ($1,375,000) each fiscal year shall be used to establish pilot degree programs at sites located away from the campuses of the constituent institutions and to expand educational opportunities at those sites.  The Board shall consider sites on community college campuses, especially those with a higher proportion of college transfer student enrollment, sites easily accessible to military personnel and other citizens, and sites remote from the constituent institutions' main campuses.  Funds may be used to fund campuses for full-time equivalent enrollment at those sites, to improve library collections for the programs offered at the site, or for other purposes deemed appropriate by the Board.
The Board shall report to the Joint Education Oversight Committee on this effort by December 1996.

Requested by:   Representatives Grady, Preston
AGRICULTURE EDUCATION PROGRAM FUNDS
Sec. 15.11.  (a)	Of the funds provided to the Board of Governors of The University of North Carolina, the sum of five hundred eighty-five thousand dollars ($585,000) for the 1995-96 fiscal year and the sum of five hundred eighty-five thousand dollars ($585,000) for the 1996-97 fiscal year shall be allocated to the College of Agriculture and Life Sciences at North Carolina State University for personnel positions and related office and travel expenses to provide overall leadership, coordination, and structure for agricultural education programs and Future Farmers of America activities in the public schools of North Carolina.
(b) The positions in this section are:
(1)	A State Agricultural Education Coordinator, located in the Department of Agricultural and Extension Education at North Carolina State University;
(2)	Three Regional Consultants who are responsible to the State Agricultural Education Coordinator; and 
(3)	A State Future Farmers of America Director, who is responsible to the State Agricultural Education Coordinator and the Board of Directors of the North Carolina Association of Future Farmers of America, Incorporated.  The Executive Director and staff of the North Carolina Future Farmers of America Foundation are provided by the North Carolina Future Farmers of America Foundation, Incorporated, and the Director and staff of the North Carolina Future Farmers of America Center are provided by the North Carolina Association of Future Farmers of America, Inc.
(c) The Office of the Governor and the State Board of Education, the Superintendent of Public Instruction, and other State agencies responsible for vocational and technical education in the public schools shall maintain close working relationships with the State Agricultural Education Coordinator.  The State Agricultural Education Coordinator and those agencies shall cooperate and collaborate to provide resources that will ensure quality agricultural education programs in the public schools. 
PART 16.  COMMUNITY COLLEGES

Requested by:  Representatives Grady, Preston
BACCALAUREATE COMPLETION PROGRAM
Sec. 16.  A community college that permits a public or a nonprofit four-year college or university to offer the junior or senior years of a baccalaureate degree program or teacher certification renewal courses on the community college campus shall receive five hundred dollars ($500.00) for each FTE generated by the college or university for these courses.  The community college shall use these funds to offset utility, maintenance, and administrative costs associated with offering these courses on the community college campus.

Requested by:  Representatives Grady, Preston
CONTINUING BUDGET CONCEPT MODIFIED
Sec. 16.1.  The State Board of Community Colleges shall implement the continuing budget concept for the 1995-97 biennium and in subsequent years as follows:
(1)	Community colleges that experience a decline in enrollment shall not receive a decrease in full-time equivalent student (FTE) enrollment funds until their enrollment declines more than five percent (5%).  At that time, they shall experience a decline of only the amount over five percent (5%);
(2)	Community colleges that experience an increase in enrollment shall not receive an increase in full-time equivalent student (FTE) enrollment funds until their enrollment increases more than three percent (3%).  At that time, they shall experience an increase of only the amount over three percent (3%).

Requested by:  Representatives Grady, Preston
LIBRARY WITHOUT WALLS TECHNOLOGY
Sec. 16.2.  The State Board of Community Colleges shall allocate funds appropriated in this act for the "Library Without Walls" Technology to 25 pilot sites on a competitive grant basis.  In awarding the grants, the State Board shall consider the level of interest and the readiness of each community college to use the technology.

Requested by:  Representatives Grady, Preston
FUNDS FOR "RETOOLING FOR THE YEAR 2000: GAINING THE COMPETITIVE EDGE"
Sec. 16.3.  The funds appropriated in this act for the North Carolina Community College System shall be used to implement the provisions of G.S. 115D-8, "Retooling for the Year 2000: Gaining the Competitive Edge".  These funds shall be for the following priorities in order to improve the ability of citizens to be competitive in the global economy:
(1)	Improve training programs in high job demand skill areas;
(2)	Enhance allied health programs, including nursing, physical, occupational, and respiratory therapy, and increase the number of trained students in these fields;
(3)	Provide more technology education in order to ensure that all students are technologically proficient in today's workplace.  More infrastructure, equipment, and highly trained faculty will be needed in this area;
(4)	Increase short-term skill enhancement training through improved occupational extension training programs;
(5)	Provide funds for high cost programs;
(6)	Develop more "workplace literacy" programs at job sites in order to improve job security and advancement opportunities for workers;
(7)	Provide more customized training for existing industries through the expansion of Focused Industrial Training (FIT) Centers;
(8)	Improve opportunities for faculty to keep up-to-date with the latest technological changes in their fields by funding more professional development and return-to-industry programs; and
(9)	Enhance all associate degree programs and facilitate the transfer of students with associate degrees pursuing baccalaureate degrees by establishing pilot baccalaureate completion programs on the campuses of community colleges.
The State Board of Community Colleges shall adopt the "Education Blueprint" in accordance with G.S. 115D-8 and shall continue to provide its "Critical Success Factors" document in order to provide the General Assembly with the accountability for the expenditure of funds for the "Retooling for the Year 2000" programs.

Requested by:  Representatives Grady, Preston
RECEIPT ADJUSTMENT
Sec. 16.4.  The Office of State Budget and Management and the Department of Community Colleges shall adjust annual tuition receipts for full-time equivalent students to reflect actual collections from the previous year, but shall not reduce the total requirements in their budget requests to the General Assembly.
The State Board of Community Colleges shall report to the Joint Legislative Education Oversight Committee on an annual basis on the cost of the tuition and fee exemptions established in G.S. 115D-5(b).

PART 17.  PUBLIC SCHOOLS

Requested by:  Representatives Grady, Preston
EXCEPTIONAL CHILDREN FUNDS
Sec. 17.  (a) The funds appropriated for exceptional children in this act shall be allocated as follows:
(1)	Each local school administrative unit shall receive for academically gifted children the sum of $680.21 per child for three and nine-tenths percent (3.9%) of the 1994-95 actual average daily membership in the local school administrative unit, regardless of the number of children identified as academically gifted in the local school administrative unit. The total number of children for which funds shall be allocated pursuant to this subdivision is 44,609 for the 1995-96 school year.
(2)	Each local school administrative unit shall receive for exceptional children other than academically gifted children the sum of $2,040.63 per child for the lesser of (i) all children who are identified as exceptional children other than academically gifted children or (ii) twelve and five-tenths percent (12.5%) of the 1994-95 actual average daily membership in the local school administrative unit. The maximum number of children for which funds shall be allocated pursuant to this subdivision is 131,642 for the 1995-96 school year.
The dollar amounts allocated under this subsection for exceptional children shall also increase in accordance with legislative salary increments for personnel who serve exceptional children.
(b) If House Bill 6 of the 1995 General Assembly is ratified, the State Board of Education shall transfer the portion of these funds used to pay central office administrators to a new allotment category for central office administrators, in accordance with the provisions of House Bill 6.
(c) The State Board of Education shall evaluate and review the current process and criteria for designating students as children with special needs.

Requested by:  Representatives Grady, Preston
SUPPLEMENTAL FUNDING IN LOW-WEALTH COUNTIES/SMALL SCHOOL SYSTEM SUPPLEMENTAL FUNDING
Sec. 17.1.  (a)	Funds for supplemental funding. – The General Assembly finds that it is appropriate to provide supplemental funds in low-wealth counties to allow those counties to enhance the instructional program and student achievement; therefore, of the funds appropriated to Aid to Local School Administrative Units, the sum of thirty-five million two hundred eighty-three thousand eight hundred nine dollars ($35,283,809) for the 1995-96 fiscal year and the sum of thirty-five million two hundred eighty-three thousand eight hundred nine dollars ($35,283,809) for the 1996-97 fiscal year shall be used for supplemental funds for schools.
(b)	Use of funds for supplemental funding. – Local school administrative units shall use funds received pursuant to this section only to provide instructional positions, instructional support positions, teacher assistant positions, clerical positions, instructional supplies and equipment, staff development, and textbooks.
(c)	Definitions. – As used in this section:
(1)	"Anticipated county property tax revenue availability" means the county adjusted property tax base multiplied by the effective State average tax rate.
(2)	"Anticipated total county revenue availability" means the sum of the
a.	Anticipated county property tax revenue availability,
b.	Local sales and use taxes received by the county that are levied under Chapter 1096 of the 1967 Session Laws or under Subchapter VIII of Chapter 105 of the General Statutes,
c.	Food stamp exemption reimbursement received by the county under G.S. 105-164.44C,
d.	Homestead exemption reimbursement received by the county under G.S. 105-277.1A,
e.	Inventory tax reimbursement received by the county under G.S. 105-275.1 and G.S. 105-277A,
f.	Intangibles tax distribution and reimbursement received by the county under G.S. 105-213 and G.S. 105-213.1, and
g.	Fines and forfeitures deposited in the county school fund
	for the most recent year for which data are available.
(3)	"Anticipated total county revenue availability per student" means the anticipated total county revenue availability for the county divided by the average daily membership of the county.
(4)	"Anticipated State average revenue availability per student" means the sum of all anticipated total county revenue availability divided by the average daily membership for the State.
(5)	"Average daily membership" means average daily membership as defined in the North Carolina Public Schools Allotment Policy Manual, adopted by the State Board of Education.  If a county contains only part of a local school administrative unit, the average daily membership of that county includes all students who reside within the county and attend that local school administrative unit.
(6)	" County adjusted property tax base" shall be computed as follows:
a.	Subtract the present-use value of agricultural land, horticultural land, and forestland in the county, as defined in G.S. 105-277.2, from the total assessed real property valuation of the county,
b.	Adjust the resulting amount by multiplying by a weighted average of the three most recent annual sales assessment ratio studies,
c.	Add to the resulting amount the:
1.	Present-use value of agricultural land, horticultural land, and forestland, as defined in G.S. 105-277.2,
2.	Value of property of public service companies, determined in accordance with Article 23 of Chapter 105 of the General Statutes, and
3.	Personal property value for the county.
(7)	" County adjusted property tax base per square mile" means the county adjusted property tax base divided by the number of square miles of land area in the county.
(8)	" County wealth as a percentage of State average wealth" shall be computed as follows:
a.	Compute the percentage that the county per capita income is of the State per capita income and weight the resulting percentage by a factor of five-tenths,
b.	Compute the percentage that the anticipated total county revenue availability per student is of the anticipated State average revenue availability per student and weight the resulting percentage by a factor of four-tenths,
c.	Compute the percentage that the county adjusted property tax base per square mile is of the State adjusted property tax base per square mile and weight the resulting percentage by a factor of one-tenth,
d.	Add the three weighted percentages to derive the county wealth as a percentage of the State average wealth. 
(9)	" Effective county tax rate" means the actual county tax rate multiplied by a weighted average of the three most recent annual sales assessment ratio studies.
(10)	" Effective State average tax rate" means the average of effective county tax rates for all counties.
(10a)	" Local current expense funds" means the most recent county current expense appropriations to public schools, as reported by local boards of education in the audit report filed with the Secretary of the Local Government Commission pursuant to G.S. 115C-447.
(11)	" Per capita income" means the average for the most recent three years for which data are available of the per capita income according to the most recent report of the United States Department of Commerce, Bureau of Economic Analysis, including any reported modifications for prior years as outlined in the most recent report.
(12)	" Sales assessment ratio studies" means sales assessment ratio studies performed by the Department of Revenue under G.S. 105-289(h).
(13)	" State average current expense appropriations per student" means the most recent State total of county current expense appropriations to public schools, as reported by local boards of education in the audit report filed with the Secretary of the Local Government Commission pursuant to G.S. 115C-447, divided by the total State average daily membership.
(14)	" State average adjusted property tax base per square mile" means the sum of the county adjusted property tax bases for all counties divided by the number of square miles of land area in the State.
(14a)	" Supplant" means to decrease local per student current expense appropriations from one fiscal year to the next fiscal year.
(15)	" Weighted average of the three most recent annual sales assessment ratio studies" means the weighted average of the three most recent annual sales assessment ratio studies in the most recent years for which county current expense appropriations and adjusted property tax valuations are available.  If real property in a county has been revalued one year prior to the most recent sales assessment ratio study, a weighted average of the two most recent sales assessment ratios shall be used.  If property has been revalued the year of the most recent sales assessment ratio study, the sales assessment ratio for the year of revaluation shall be used.
(d)	Eligibility for funds. – Except as provided in subsection (h) of this section, the State Board of Education shall allocate these funds to local school administrative units located in whole or in part in counties in which the county wealth as a percentage of the State average wealth is less than one hundred percent (100%).
(e)  Allocation of funds. – Except as provided in subsection (g) of this section, the amount received per average daily membership for a county shall be the difference between the State average current expense appropriations per student and the current expense appropriations per student that the county could provide given the county's wealth and an average effort to fund public schools.  (To derive the current expense appropriations per student that the county could be able to provide given the county's wealth and an average effort to fund public schools, multiply the county wealth as a percentage of State average wealth by the State average current expense appropriations per student.)
The funds for the local school administrative units located in whole or in part in the county shall be allocated to each local school administrative unit, located in whole or in part in the county, based on the average daily membership of the county's students in the school units.
If the funds appropriated for supplemental funding are not adequate to fund the formula fully, each local school administrative unit shall receive a pro rata share of the funds appropriated for supplemental funding.
(f)  Formula for distribution of supplemental funding pursuant to this section only. – The formula in this section is solely a basis for distribution of supplemental funding for low-wealth counties and is not intended to reflect any measure of the adequacy of the educational program or funding for public schools.  The formula is also not intended to reflect any commitment by the General Assembly to appropriate any additional supplemental funds for low-wealth counties.
(g)  Minimum effort required. – A county that (i) maintains an effective county tax rate that is at least one hundred percent (100%) of the effective State average tax rate in the most recent year for which data are available or (ii) maintains a county appropriation per student to the school local current expense fund of at least one hundred percent (100%) of the current expense appropriations per student to the school local current expense fund that the county could provide given the county's wealth and an average effort to fund public schools, shall receive full funding under this section.  A county that maintains a county appropriation per student to the school local current expense fund of less than one hundred percent (100%) of the current expense appropriations per student to the school local current expense fund that the county could provide given the county's wealth and an average effort to fund public schools shall receive funding under this section at the same percentage that the county's appropriation per student to the school local current expense fund is of the current expense appropriations per student to the school local current expense fund that the county could provide given the county's wealth and an average effort to fund public schools.
(h)  Nonsupplant requirement. – A county in which a local school administrative unit receives funds under this section shall use the funds to supplement local current expense funds and shall not supplant local current expense funds. For the 1995-97 fiscal biennium, the State Board of Education shall not allocate funds under this section to a county found to have used these funds to supplant local per student current expense funds.  The State Board of Education shall make a finding that a county has used these funds to supplant local current expense funds in the prior year, or the year for which the most recent data are available, if:
(1)	The average of the local per student current expense appropriation for the three most recent years is less than ninety-five percent (95%) of the greater of (i) the local per student current expense appropriation for the 1991-92 fiscal year; or (ii) the average local per student current expense appropriation of the county for the three fiscal years immediately prior to the current year; and
(2)	The county cannot show (i) that it has remedied the deficiency in funding, or (ii) that extraordinary circumstances caused the county to supplant local current expense funds with funds allocated under this section.
The State Board of Education shall adopt rules to implement this section.
(i)  Reports. – The State Board of Education shall report to the Joint Legislative Education Oversight Committee prior to May 1, 1996, on its analysis of whether counties supplanted funds.
(j)  Department of Revenue reports. – The Department of Revenue shall provide to the Department of Public Instruction a preliminary report for the current fiscal year of the assessed value of the property tax base for each county prior to March 1 of each year and a final report prior to May 1 of each year.  The reports shall include for each county the annual sales assessment ratio and the taxable values of (i) total real property, (ii) the portion of total real property represented by the present-use value of agricultural land, horticultural land, and forestland as defined in G.S. 105-277.2, (iii) property of public service companies determined in accordance with Article 23 of Chapter 105 of the General Statutes, and (iv) personal property.
Sec. 17.2. (a)	Funds for small school systems. – Except as provided in subsection (b) of this section, the State Board of Education shall allocate funds appropriated for small school system supplemental funding (i) to each county school administrative unit with an average daily membership of less than 3,000 students and (ii) to each county school administrative unit with an average daily membership of from 3,000 to 4,000 students if the county in which the local school administrative unit is located has a county adjusted property tax base per student that is below the State adjusted property tax base per student and if the total average daily membership of all local school administrative units located within the county is from 3,000 to 4,000 students.  The allocation formula shall:
(1)	Round all fractions of positions to the next whole position.
(2)	Provide five and one-half additional regular classroom teachers in counties in which the average daily membership per square mile is greater than four and seven additional regular classroom teachers in counties in which the average daily membership per square mile is four or less.
(3)	Provide additional program enhancement teachers adequate to offer the standard course of study.
(4)	Change the duty-free period allocation to one teacher assistant per 400 average daily membership.
(5)	Provide a base for the consolidated funds allotment of at least one hundred fifty thousand dollars ($150,000), excluding textbooks.
(6)	Allot vocational education funds for grade 6 as well as for grades 7-12.
If funds appropriated for each fiscal year for small school system supplemental funding are not adequate to fund fully the program, the State Board of Education shall reduce the amount allocated to each county school administrative unit on a pro rata basis.  This formula is solely a basis for distribution of supplemental funding for certain county school administrative units and is not intended to reflect any measure of the adequacy of the educational program or funding for public schools.  The formula is also not intended to reflect any commitment by the General Assembly to appropriate any additional supplemental funds for such county administrative units.
(b)	Nonsupplant requirement. – A county in which a local school administrative unit receives funds under this section shall use the funds to supplement local current expense funds and shall not supplant local current expense funds. For the 1995-97 fiscal biennium, the State Board of Education shall not allocate funds under this section to a county found to have used these funds to supplant local per student current expense funds.  The State Board of Education shall make a finding that a county has used these funds to supplant local current expense funds in the prior year, or the year for which the most recent data are available, if:
(1)	The average of the local per student current expense appropriation for the three most recent years is less than ninety-five percent (95%) of the greater of (i) the local per student current expense appropriation for the 1991-92 fiscal year; or (ii) the average local per student current expense appropriation of the county for the three fiscal years immediately prior to the current year; and
(2)	The county cannot show (i) that it has remedied the deficiency in funding, or (ii) that extraordinary circumstances caused the county to supplant local current expense funds with funds allocated under this section.
The State Board of Education shall adopt rules to implement this section.
(c)	Definitions. – As used in this section:
(1)	"Average daily membership" means within two percent (2%) of the average daily membership as defined in the North Carolina Public Schools Allotment Policy Manual, adopted by the State Board of Education.
(2)	" County adjusted property tax base per student" means the total assessed property valuation for each county, adjusted using a weighted average of the three most recent annual sales assessment ratio studies, divided by the total number of students in average daily membership who reside within the county.
(2a)	" Local current expense funds" means the most recent county current expense appropriations to public schools, as reported by local boards of education in the audit report filed with the Secretary of the Local Government Commission pursuant to G.S. 115C-447.
(3)	" Sales assessment ratio studies" means sales assessment ratio studies performed by the Department of Revenue under G.S. 105-289(h).
(4)	" State adjusted property tax base per student" means the sum of all county adjusted property tax bases divided by the total number of students in average daily membership who reside within the State.
(4a)	" Supplant" means to decrease local per student current expense appropriations from one fiscal year to the next fiscal year.
(5)	" Weighted average of the three most recent annual sales assessment ratio studies" means the weighted average of the three most recent annual sales assessment ratio studies in the most recent years for which county current expense appropriations and adjusted property tax valuations are available.  If real property in a county has been revalued one year prior to the most recent sales assessment ratio study, a weighted average of the two most recent sales assessment ratios shall be used.  If property has been revalued the year of the most recent sales assessment ratio study, the sales assessment ratio for the year of revaluation shall be used.
(d)	Reports. – The State Board of Education shall report to the Joint Legislative Education Oversight Committee prior to May 1, 1996, on the results of its analysis of whether counties supplanted funds.

Requested by:  Representatives Grady, Preston
SCHOOL TECHNOLOGY RESERVE
Sec. 17.3.   The funds in the amount of forty-two million dollars ($42,000,000) appropriated for the 1994-95 fiscal year to the Office of State Budget and Management, School Technology Reserve, are transferred to the State Board of Education, State School Technology Fund.  These funds shall be allocated by the State Board of Education to the credit of local school administrative units as follows:
(1)	Ten percent (10%) of these funds shall be allocated in accordance with the low-wealth county supplemental school funding formula set out in Section 138 of Chapter 321 of the 1993 Session Laws, as rewritten by Section 19.32 of Chapter 769 of the 1993 Session Laws; and 
(2)	Ninety percent (90%) of these funds shall be allocated on the basis of average daily membership: Provided, however, the State Board shall use part of these funds, as necessary, to ensure that the sum total of the allocations to all of the local school administrative units located within each county is at least fifty thousand dollars ($50,000). 
		Before a local school technology plan is approved by the State Board of Education, a local board of education may use up to ten percent (10%) of the funds credited to it in the Fund to develop its local school technology plan or, to the extent that these funds are not needed to develop the local school technology plan, for staff development to improve the use of instructional technology.  After a local school technology plan is reviewed by the Department of Public Instruction and the Information Resources Management Commission and approved by the State Board of Education, a local board of education may use the remainder of these funds for nonpersonnel expenses to implement its local school technology plan, including staff development, hardware, software, networks, maintenance contracts, and school facility modifications necessary for the installation of equipment.
		Two or more local school administrative units may jointly expend funds to develop their individual local school technology plans, for staff development, or to implement their individual local school technology plans.

Requested by:  Representatives Grady, Preston
LITIGATION RESERVE
Sec. 17.4. (a) Funds appropriated to the Department of Public Instruction for the 1994-95 fiscal year for the Litigation Reserve that are not expended or encumbered on June 30, 1995, are transferred to the State Board of Education.  These funds shall not revert on July 1, 1995, but shall remain available for expenditure until June 30, 1997.
(b)	Funds appropriated to the State Board of Education for the 1995-96 fiscal year for the Litigation Reserve that are not expended or encumbered on June 30, 1996, shall not revert on July 1, 1996, but shall remain available for expenditure until June 30, 1997.
(c) Subsection (a) of this section becomes effective June 30, 1995.

Requested by:  Representatives Grady, Preston
EDUCATION EXPENDITURE REPORT DUE DATE
Sec. 17.5.  G.S. 105-503(b) reads as rewritten:
"(b)	On or before May 1 of each year the Local Government Commission shall furnish to the General Assembly a report of the level of each county's appropriations for public school capital outlay (including retirement of indebtedness incurred and monies reserved for these purposes), include the amount each county has provided for public school capital outlay for a period including at a minimum the most recent five fiscal years, estimates of public school facility needs, the proportion of revenue from taxes collected under Article 40 of this Chapter that has been provided for public school capital outlay purposes (including retirement of indebtedness incurred and monies reserved for these purposes), the proportion of revenue collected under this Article that has been expended for a public school capital outlay purposes (including retirement of indebtedness incurred and monies reserved for these purposes), and any other factors it deems relevant to carrying out the intent stated in subsection (a) of this section."

Requested by:  Representatives Grady, Preston
ELIMINATION OF OBSOLETE REPORTS ON MAINTENANCE CONTRACTS; EXCHANGE OF INFORMATION WITHIN STATE EDUCATION AGENCIES
Sec. 17.6. (a) Section 38(b) of Chapter 500 of the 1989 Session Laws is repealed.
(b)	Section 6 of Chapter 880 of the 1991 Session Laws reads as rewritten:
"Sec. 6.  A joint report of progress made to develop a system to provide an exchange of information shall be made to the Joint Legislative Education Oversight Committee no later than February 15, 1996."

Requested by:  Representatives Grady, Preston
EXPANSION BUDGET APPROPRIATIONS OF SAVINGS FROM THE REORGANIZATION OF THE DEPARTMENT OF PUBLIC INSTRUCTION
Sec. 17.7.  Of the funds appropriated to State Aid to Local School Administrative Units, the State Board of Education shall allocate the sum of nine million three hundred eighteen thousand four hundred thirty-six dollars ($9,318,436) for the 1995-96 fiscal year and the sum of ten million six hundred sixty-five thousand three hundred forty-one dollars ($10,665,341) for the 1996-97 fiscal year to local school administrative units.  These funds shall be used for textbooks, classroom materials/instructional supplies/equipment, or both.

Requested by:  Representatives Grady, Preston
MODIFICATION OF TRANSFER FUNDS FOR TACS TO LOCAL SCHOOL ADMINISTRATIVE UNITS
Sec. 17.8.  Section 17.7 of Chapter 324 of the 1995 Session Laws reads as rewritten:
"Sec. 17.7.  Effective July 1, 1996, the State Board of Education shall reallocate funds from Technical Assistance Centers to local school administrative units in accordance with a formula adopted by the State Board: provided however, if all of the local school administrative units in the service area of a Technical Assistance Center agree on a plan for use of funds allocated to that Technical Assistance Center, the State Board of Education may reallocate the funds for that Technical Assistance Center prior to July 1, 1996.  Local boards of education may use these funds to contract with Technical Assistance Centers, contract with other entities, hire personnel, or otherwise acquire staff development, training, planning, and other forms of technical assistance.
The Technical Assistance Centers shall be funded solely by receipts from local boards of education and from other non-State sources.  The State Board shall establish a management structure for the Technical Assistance Centers that enables superintendents, principals, and teachers from the local school administrative units to be served by the Centers to have input into the priorities and personnel decisions at the Centers."

PART 18.  DEPARTMENT OF TRANSPORTATION

Requested by:  Representatives Barbee, Bowie, Culpepper
NORTHEASTERN REGIONAL AIRPORT MATCHING FUNDS
Sec. 18.  Of the funds appropriated in the Continuation Budget Operations Appropriations Act of 1995 to the Department of Commerce for allocation to the Northeast North Carolina Regional Economic Development Commission, the sum of one hundred twenty-five thousand dollars ($125,000) in each fiscal year shall be transferred to the Department of Transportation for allocation as a local match for projects at the Northeastern Regional Airport in Edenton.
Funds used as a local match shall be used for projects that have been approved by the Northeastern Regional Airport Commission and have been included in the transportation improvement plan adopted by the Board of Transportation.
The State-local fund matching limitations contained in Article 7 of Chapter 63 of the General Statutes shall not apply to the State funds used as a local match pursuant to this section.

Requested by:  Representatives Barbee, Bowie
JOINT LEGISLATIVE TRANSPORTATION OVERSIGHT COMMITTEE TO STUDY LIENS ON TOWED AND STORED VEHICLES
Sec. 18.1.   The Joint Legislative Transportation Oversight Committee shall study the enforcement of liens on motor vehicles that have been towed and stored, including the following issues:
(1)	Whether the time period after which a lien can be satisfied on a motor vehicle for unpaid repair, towing, or storing charges should be shortened, and whether any other time periods relating to liens on towed and stored motor vehicles should be  shortened;
(2)	Whether the amount of time that a vehicle can be left on the property of another person, including a business engaged in automobile repair, towing, or storage, before that vehicle is considered to be abandoned should be shortened;
(3)	Whether the cost of towing should be included in the amount of a lien;
(4)	Whether new procedures should be established for disposal of low-value vehicles to satisfy liens;
(5)	Whether the last registered owner of an abandoned vehicle that has been towed and stored should be charged with a traffic offense, should be liable for any restitution, or should be penalized in any other manner; and
(6)	Other issues related to the towing and storage of motor vehicles and liens on those vehicles.
The Joint Legislative Transportation Oversight Committee shall report the results of this study, including any legislative recommendations, to the 1995 General Assembly, Regular Session 1996.

Requested by:  Representatives Barbee, Bowie, Sherrill
DEPARTMENT OF TRANSPORTATION TO PROVIDE CONSTRUCTION AND MAINTENANCE SERVICES AT THE GOVERNOR'S WESTERN RESIDENCE
Sec. 18.2.  G.S. 136-18(13) reads as rewritten:
"(13)	The Department of Transportation may construct and maintain all walkways and driveways within the Mansion Square in the City of Raleigh and the Western Residence of the Governor in the City of Asheville including the approaches connecting with the city streets, and any funds expended therefor shall be a charge against general maintenance."

Requested by:  Representatives Barbee, Bowie
PURCHASE OF CENTURY CENTER CAMPUS FACILITY
Sec. 18.3.  Notwithstanding any other provision of law, revenue collected into the Highway Trust Fund in excess of the certified budget for the fiscal year ending June 30, 1995, may be reserved and used, to the extent necessary, by the Department of Transportation to acquire the capital facility known as the Century Center Campus.

Requested by:  Representatives Barbee, Bowie, Sherrill
JOINT LEGISLATIVE TRANSPORTATION OVERSIGHT COMMITTEE TO STUDY DIVISION OF MOTOR VEHICLES WAKE COUNTY SERVICE FACILITY
Sec. 18.4.  The Joint Legislative Transportation Oversight Committee shall study a Division of Motor Vehicles Campus in Wake County, including a Customer Service Facility.  The Committee shall consider:
(1)	The need for a new DMV facility in Wake County;
(2)	The location and design of any proposed DMV Campus;
(3)	The phased construction and total life-cycle cost of any DMV Campus;
(4)	The renovation, replacement, or subsequent use of the existing DMV structures on New Bern Avenue; and
(5)	Other matters relating to Division of Motor Vehicles offices and services in Wake County.
The Department of Transportation, the State Construction Office, the Capital Planning Commission, and other State agencies shall assist the Joint Legislative Transportation Oversight Committee in conducting this study.
The Joint Legislative Transportation Oversight Committee shall report its finding on this matter to the 1995 General Assembly, Regular Session 1996.

Requested by:  Representatives Barbee, Bowie, Sherrill
SMALL URBAN CONSTRUCTION PROGRAM DISCRETIONARY FUNDS INCREASED
Sec. 18.5.  Section 18.12 of Chapter 324 of the 1995 Session Laws reads as rewritten:
"Sec. 18.12.  Of the funds appropriated in this act to the Department of Transportation:
(1)	Fourteen million dollars ($14,000,000) shall be allocated in each fiscal year for small urban construction projects.  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.
(2)	Seven million one hundred thousand dollars ($7,100,000) shall be used statewide for rural or small urban highway improvements as approved by the Secretary of the Department of Transportation.  At least one million one hundred thousand dollars ($1,100,000) of these funds shall be used for spot-safety projects.
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 Transportation Oversight Committee and the Fiscal Research Division."

Requested by:  Representative McLaughlin
DEPARTMENT OF TRANSPORTATION MAY USE CERTAIN SALARY FUNDS FOR DIVISION OF MOTOR VEHICLE CLASSIFICATIONS
Sec. 18.13.  Notwithstanding any other provision of law, the Department of Transportation may use the funds appropriated in Section 3 of Chapter 324 of the 1995 Session Laws for a Reserve of Salary Adjustments and any additional available salary funds for the following Division of Motor Vehicles reclassifications, that were reclassified as a result of the Officer Support Services Occupational Group Study mandated by the Office of State Personnel: Customer Service Representatives Classifications, Traffic Records Clerical Staff, and International Registration Plan positions.

Requested by:   Representatives Barbee, Bowie
ORGANIZATIONAL AND BUSINESS PRACTICES STUDY OF THE DIVISION OF MOTOR VEHICLES
Sec. 18.14.  (a) The Joint Legislative Commission on Governmental Operations shall conduct a study of the Division of Motor Vehicles.
The study may include an assessment and recommendations for change of the Division's statutory responsibilities and functions, organizational structure, processes, and business practices.
The Joint Legislative Commission on Governmental Operations may enter into a contract with a private consulting firm to conduct this study.
The Joint Legislative Commission on Governmental Operations shall report its findings and recommendations based on this study to the 1995 General Assembly, Regular Session 1996.
(b)	Of the funds appropriated from the Highway Fund to the Legislative Services Commission in this act the sum of two hundred thousand dollars ($200,000) for the 1995-96 fiscal year shall be used to fund the study of the Division of Motor Vehicles by the Joint Legislative Commission on Governmental Operations authorized by subsection (a) of this section.

PART 19.  DEPARTMENT OF CORRECTION

Requested by:  Representatives Justus, Thompson
AUTHORIZE ADDITIONAL PRIVATE PRISON BEDS
Sec. 19.  G.S. 148-37(g), as enacted by Section 19.10 of Chapter 324 of the 1995 Session Laws, reads as rewritten:
"(g)	The Secretary of Correction may contract with private for-profit or nonprofit firms for the provision and operation of two or more confinement facilities in the State to house up to 1,600 State prisoners when to do so would most economically and effectively promote the purposes served by the Department of Correction.  This 1,600-bed limitation shall not apply to the 500 beds in private substance abuse treatment centers authorized by the General Assembly prior to July 1, 1995.  Contracts entered under the authority of this subsection shall be for a period not to exceed 10 years, shall be renewable from time to time for a period not to exceed 10 years, and are subject to the approval of the Council of State and the Department of Administration, after consultation with the Joint Legislative Commission on Governmental Operations.  Confinement facilities provided under the authority of this subsection shall not be used for the purpose of consolidating existing State confinement facilities.  Contracts entered under the authority of this subsection may be subject to any requirements for the location of the confinement facilities set forth by the General Assembly in appropriating those funds.
Contracts made under the authority of this subsection may provide the State with an option to purchase the confinement facility or may provide for the purchase of the confinement facility by the State.  The Department of Correction may give preference to facilities intended for joint county and State use where such facilities are developed by public/private partnerships and financed by tax-exempt bond issues, and where such facilities offer general terms and conditions favorable to the State in the competitive bidding process pursuant to Article 8 of Chapter 143 of the General Statutes.  All contracts for the housing of State prisoners in private confinement facilities shall require a minimum of ten million dollars ($10,000,000) of occurrence-based liability insurance and shall hold the State harmless and provide reimbursement for all liability arising out of actions caused by operations and employees of the private confinement facility.
Prisoners housed in private confinement facilities pursuant to this subsection shall remain subject to the rules adopted for the conduct of persons committed to the State prison system.  The Secretary of Correction may review and approve the design and construction of private confinement facilities before housing State prisoners in these facilities.  The rules regarding good time, gain time, and earned credits, discipline, classification, extension of the limits of confinement, transfers, housing arrangements, and eligibility for parole shall apply to inmates housed in private confinement facilities pursuant to this subsection.  The operators of private confinement facilities may adopt 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 a private confinement facility are agents of the Secretary of Correction and may use those procedures for use of force authorized by the Secretary of Correction to defend themselves, to enforce the observance of discipline in compliance with confinement facility rules, to secure the person of a prisoner, and to prevent escape.  Private firms under this subsection shall employ inmate disciplinary and grievance policies of the North Carolina Department of Correction."

Requested by:  Representatives Justus, Thompson, Mercer
EXTERNAL CONSULTANT TO EVALUATE DOC SUBSTANCE ABUSE PROGRAMS
Sec. 19.1.  Of the funds appropriated to the Department of Correction for the 1995-96 fiscal year, the Department shall use up to twenty-five thousand dollars ($25,000) to hire an external consultant to evaluate the DART prison substance abuse program and private substance abuse programs funded by the Department as follows:
(1)	Evaluate the appropriateness of the treatment methodology used for those programs;
(2)	Evaluate the cost-effectiveness of those programs, with an emphasis on the number and type of staff employed; and
(3)	Evaluate the effectiveness of those programs in reducing recidivism and drug dependency, if such data is available, or develop evaluation standards and a process for conducting such evaluations and reporting the results.
The Department shall provide the consultant's report to the Chairs of the Senate and House Appropriations Committees and the Chairs of the Senate and House Appropriations Subcommittees on Justice and Public Safety by May 1, 1996.

Requested by:  Representatives Justus, Thompson
BUNKING INMATES IN SHIFTS/PILOT PROGRAM
Sec. 19.2.  (a)	The Department of Correction may implement a pilot program for the bunking of inmates in shifts at Lincoln Correctional Center by April 1, 1996. The pilot program may provide for arranging inmates' daily activities in such a manner that at least two different groups of inmates may occupy the same dormitory space during different portions of each 24-hour day.  Of the funds appropriated to the Department of Correction for the 1995-96 fiscal year in this act, the Department may use up to the sum of four hundred ninety-nine thousand dollars ($499,000) for temporary positions, payment of overtime, capital expenditures, and other costs of implementing the pilot program.
(b)	The Department of Correction shall report quarterly on the progress of the pilot program to the Joint Legislative Corrections Oversight Committee.  The Department shall report on the implementation of the program to the Chairs of the Senate and House Appropriations Committees and the Chairs of the Senate and House Appropriations Subcommittees on Justice and Public Safety by May 15, 1996.

Requested by:  Representatives Justus, Thompson, Pulley
NOTICE OF COMMUTATIONS
Sec. 19.3.  G.S 147-16 reads as rewritten:
"§ 147-16. Records kept; certain original applications preserved; notice of commutations.
(a)	The Governor shall cause to be kept the following records:
(1)	A register of all applications for pardon, or for commutation of any sentence, with a list of the official signatures and recommendations in favor of such application.
(2)	An account of all his official expenses and disbursements, including the incidental expenses of his department, and the rewards offered by him for the apprehension of criminals.
These records and the originals of all applications, petitions, and recommendations and reports therein mentioned shall be preserved in the office of the Governor, but when applications for offices are refused he may, in his discretion, return the papers referring to the  application.
(b)	The Governor shall, unless otherwise requested by any person listed in subdivisions (1) through (4) of this subsection, provide notice of the commutation of any sentence within 20 days after the commutation by first-class mail to the following at the last known address:
(1)	The victim or victims of the crime for which the sentence was imposed;
(2)	The victims' spouse, children, and parents;
(3)	Any other members of the victims' family who request in writing to be notified; and
(4)	The Chairs of the Joint Legislative Corrections Oversight Committee."

Requested by:  Representatives Justus, Thompson
REIMBURSE COUNTIES FOR EXTRAORDINARY MEDICAL COSTS FOR INMATES AWAITING TRANSFER TO STATE PRISON SYSTEM
Sec. 19.4.  Notwithstanding any other provision of law, the Secretary of Correction may use funds appropriated to the Department of Correction to reimburse counties for extraordinary medical costs, as defined in G.S. 148-32.1(a), incurred by inmates housed in local confinement facilities awaiting transfer in the State prison system.

PART 20.  DEPARTMENT OF CRIME CONTROL AND PUBLIC SAFETY

Requested by:  Representatives Justus, Thompson
COMMUNITY SERVICE DISTRICT SUPERVISOR RESIDENCY REQUIREMENT
Sec. 20.  (a)	G.S. 143B-475.1 is amended by adding a new subsection to read:
"( e)	In order to maximize the efficiency and effectiveness of the community service program, beginning September 1, 1995, (i) community service program districts shall have the same boundaries as the district court districts established in G.S. 7A-133 and (ii) all community service program district supervisors employed by the Department of Crime Control and Public Safety to supervise each of the community service program districts shall reside in the district in which the supervisor works."
(b)	By September 1, 1995, any vacant community service program district supervisor position shall be filled with a person who resides in the district as that district will be constituted on September 1, 1995.
(c)	This section is effective upon ratification.

Requested by:  Representatives Justus, Thompson
EMERGENCY MANAGEMENT FUNDS SHALL NOT REVERT
Sec. 20.1.  (a)	The balance of any recurring or nonrecurring funds appropriated to the Department of Crime Control and Public Safety, Division of Emergency Management, for the 1993-94 fiscal year and for the 1994-95 fiscal year for the establishment of six Hazardous Materials Emergency Response Teams shall not revert but shall remain in the Department to be used for the purchase of equipment, personnel training needs, and other program operating costs.
(b)	This section becomes effective June 30, 1995.

PART 21.  JUDICIAL DEPARTMENT

Requested by:  Representatives Justus, Thompson
CONTINUE MEDIATED SETTLEMENT PILOT
Sec. 21.  (a)	G.S. 7A-38(o) reads as rewritten:
	"(o)  Report on pilot program. The Administrative Office of the Courts shall file a written report with the General Assembly on the evaluation of the pilot program on or before May 1, 1995.  The pilot program shall terminate on July 15, 1995."
(b)	Notwithstanding the provisions of G.S. 7A-38(n), the Administrative Office of the Courts may use funds available to the Judicial Department from July 1, 1995, to July 15, 1995, for the purpose of operating the pilot program.

Requested by:  Representatives Justus, Thompson
INCREASE MAXIMUM ALLOWABLE MAGISTRATES FOR CURRITUCK AND PASQUOTANK COUNTIES
Sec. 21.1.  G.S. 7A-133 reads as rewritten:
"§ 7A-133.  Numbers of judges by districts; numbers of magistrates and additional seats of court, by counties.
Each district court district shall have the numbers of judges and each county within the district shall have the numbers of magistrates and additional seats of court, as set forth in the following table:
	Additional
	Magistrates	Seats of
District	Judges	County	 Min.-Max.	Court

	1	4	Camden	1	2
Chowan	2	3
Currituck	1	3
Dare	3	8
Gates	2	3
Pasquotank	3	5
Perquimans	2	3
2	3	Martin	5	8
Beaufort	4	8
Tyrrell	1	3
Hyde	2	4
Washington	3	4
3A	3	Pitt	10	12	Farmville
Ayden
3B	4	Craven	7	10	Havelock
Pamlico	2	3
Carteret	5	8
4	6	Sampson	6	8
Duplin	9	11
Jones	2	3
Onslow	8	14
5	6	New Hanover	6 	11
Pender	4	6
6A	2	Halifax	9	14   	Roanoke
Rapids,
Scotland Neck
6B	3	Northampton	5	6
Bertie	4	5
Hertford	5	6
7	6	Nash	7	10	Rocky Mount
Edgecombe	4	6	Rocky Mount
Wilson	4	6
8	5	Wayne	5	11	Mount Olive
Greene	2	4
Lenoir	4	10	La Grange
9	4	Granville	3	7
Vance	3	5
Warren	3	4
Franklin	3	6
9A	2	Person	3	4
Caswell	2	5
10	12	Wake	12	20	Apex,
Wendell,
      	Fuquay-
Varina,
Wake Forest
11	6	Harnett	7	11	Dunn
Johnston	10	12    	Benson,
	Clayton
and Selma
Lee	4	6
12	6	Cumberland	10	17
13	4	Bladen	4	6
Brunswick	4	7
Columbus	6	8	Tabor City
14	5	Durham	8	12
15A	3	Alamance	7	10	Burlington
15B	3	Orange	4	11	Chapel Hill
Chatham	3	8	Siler City
16A	2	Scotland	3	5
Hoke	4	5
16B	5	Robeson	8	16	Fairmont,
Maxton,
Pembroke,
Red Springs,
Rowland,
St. Pauls
17A	2	Rockingham	4	9	Reidsville,
Eden,
Madison
17B	3	Stokes	2	5
Surry	5	8	Mt. Airy
18	10	Guilford	20	26	High Point
19A	3	Cabarrus	5	9	Kannapolis
19B	3	Montgomery	2	4
Randolph	5	8	Liberty
19C	3	Rowan	5	10
20	6	Stanly	5	6
Union	4	6
Anson	4	5
Richmond	5	6	Hamlet
Moore	5	8	Southern
Pines
21	7	Forsyth	3	15	Kernersville
22	7	Alexander	2	3
Davidson	7	10	Thomasville
Davie	2	3
Iredell	4	9	Mooresville
23	3	Alleghany	1	2
Ashe	3	4
Wilkes	4	6
Yadkin	3	5
24	3	Avery	3	4
Madison	4	5
Mitchell	3	4
Watauga	4	6
Yancey	2	4
25	7	Burke	4	7
Caldwell	4	7
Catawba	6	10	Hickory
26	14	Mecklenburg	15	26
27A	5	Gaston	11	20
27B	4	Cleveland	5	8
Lincoln	4	6
28	5	Buncombe	6	15
29	4	Henderson	4	6
McDowell	3	5
Polk	3	4
Rutherford	6	8
Transylvania	2	4
30	4	Cherokee	3	4
Clay	1	2
Graham	2	3
Haywood	5	7	Canton
Jackson	3	4
Macon	3	4
Swain	2	3."
Requested by:  Representatives Justus, Thompson, Mercer
RECIDIVISM STUDY
Sec. 21.2.  The North Carolina Sentencing and Policy Advisory Commission shall contract with an external consultant to study recidivism of criminal offenders assigned to community correctional programs or released from prison.  The community correctional programs to be studied shall include Treatment Alternative to Street Crime (TASC), Community Penalties Program, Community Service, and all supervised probation and parole programs.  The study shall identify those offenders rearrested within two years or more after assignment to a program or release from prison.
Of the funds appropriated to the Judicial Department for the 1995-97 biennium, the Department may use up to fifty thousand dollars ($50,000) during the 1995-97 biennium to contract with an external consultant for this study.  The Department shall provide the consultant's report to the Chairs of the Senate and House Appropriations Committees and the Chairs of the Senate and House Appropriations Subcommittees on Justice and Public Safety by May 1, 1996.

Requested by:  Representatives Justus, Thompson
INDIGENT PERSONS' ATTORNEY FEE FUND
Sec. 21.3.  (a)	Effective July 1, 1995, the Administrative Office of the Courts shall each year of the 1995-97 biennium reserve funds for capital cases and for transcripts, professional examinations, and expert witness fees from the Indigent Persons' Attorney Fee Fund.  The remaining available funds in the Indigent Persons' Attorney Fee Fund shall be allotted for adult, juvenile, and guardian ad litem cases for the 1995-96 and 1996-97 fiscal years to each judicial district in which the superior and district court districts are coterminous, and otherwise by county, according to the caseload of indigent persons who were not represented by the public defender in the districts or counties during 1994-95 and 1995-96 respectively.
The Administrative Office of the Courts shall notify all senior resident superior court judges, all chief district court judges, and the clerk of superior court within the district or county immediately after the allotment is made and shall provide a monthly report on the status of the allotment for the district or county.
The senior resident superior court judge and the chief district court judge of each district or county shall ask all judges holding court within the district or county:  (i) to take into consideration the amount of money allotted at the beginning of the fiscal year and the amount of money remaining in the allotment when they award counsel fees to attorneys of indigent persons, and (ii) to make an effort to award fees equally and justly for legal services provided.  The clerk of superior court for each county shall ensure that all judges holding court within the county receive this request from the senior resident superior court judge and the chief district court judge.
(b)	If the funds allotted pursuant to subsection (a) of this section are depleted in a district or county prior to the end of the fiscal year, the Administrative Office of the Courts shall allot any available funds from the Indigent Persons' Attorney Fee Fund in the same manner as provided in subsection (a) of this section.  However, if necessary and appropriate due to unusual and unanticipated circumstances occurring in the current year, the Administrative Office of the Courts may allocate available funds to a district or county in a manner calculated to result in the reasonably fair distribution of remaining funds.
(c)	If the funds for the Indigent Persons' Attorney Fee Fund are depleted prior to the end of the fiscal year, the Administrative Office of the Courts is authorized to transfer any unused and available funds appropriated to the Judicial Department for the fiscal year to resume payments.  Allotment of any unused and available funds shall be made in the same manner as provided in subsection (a) of this section.

Requested by:  Representatives Justus, Thompson
ASSISTANT PUBLIC DEFENDERS/AOC DEFENSE SERVICES
Sec. 21.4.   From funds appropriated to the Indigent Persons' Attorney Fee Fund for the 1995-97 biennium, the Administrative Office of the Courts may use up to three hundred ninety-seven thousand eight hundred ninety-eight dollars ($397,898) in the 1995-96 fiscal year, and up to three hundred fifty-nine thousand three hundred twenty-one dollars ($359,321) in the 1996-97 fiscal year for salaries, benefits, and related expenses to be allocated as follows:
(1)	Up to $188,994 in the 1995-96 fiscal year and up to $186,171 in the 1996-97 fiscal year to establish up to three new assistant public defenders; and
(2)	Up to $208,904 in the 1995-96 fiscal year and up to $173,150 in the 1996-97 fiscal year to establish the following three positions for a new Division of Defense Services within the Administrative Office of the Courts: an administrator, an administrative assistant, and a secretary.

Requested by:  Representatives Justus, Thompson, Redwine
DISPUTE SETTLEMENT FUNDS
Sec. 21.5.  Of the three hundred twenty-eight thousand five hundred dollars ($328,500) appropriated in this act for each fiscal year of the 1995-97 biennium for new and additional funding for dispute settlement centers, twenty-five thousand dollars ($25,000) each shall be allocated for new funding for the Blue Ridge Dispute Settlement Center and the Sandhills Mediation Center, and fifteen thousand dollars ($15,000) each shall be allocated for new funding for the Duplin County Dispute Settlement Center and Mediation Services of Rockingham County.  The remaining funds for each fiscal year shall be allocated for additional funding as follows:
(1)	$5,000 for the Alamance County Dispute Settlement Center;
(2)	$25,000 for the Dispute Settlement Program of Charlotte/Mecklenburg;
(3)	$10,000 for the Cumberland County Dispute Settlement Center;
(4)	$10,000 for the Dispute Settlement Center of Cape Fear;
(5)	$20,000 for the Dispute Settlement Center of Durham County;
(6)	$13,500 for the Henderson County Dispute Settlement Center;
(7)	$10,000 for the Mediation Center in Buncombe County;
(8)	$20,000 for the Mediation Center of Eastern Carolina;
(9)	$15,000 for the Mediation Center of Gaston County;
(10)	$15,000 for Mediation Services of Forsyth County;
(11)	$23,000 for Mediation Services of Guilford County;
(12)	$44,000 for the Mountain Dispute Settlement Center;
(13)	$25,000 for the Orange County Dispute Settlement Center; and
(14)	$13,000 for the Transylvania Dispute Settlement Center.

PART 23.  DEPARTMENT OF HUMAN RESOURCES

Requested by:  Representatives Gardner, Hayes
SUPPLEMENTAL FUNDING FOR THOMAS S. AND WILLIE M.
Sec. 23.  Notwithstanding the provisions of G.S. 143-23, the Secretary of the Department of Human Resources, with the approval of the Office of State Budget and Management, may use funds appropriated or otherwise available to the Department in the 1995-96 fiscal year and in the 1996-97 fiscal year for the following:
(1)	Additional funding for community-based services for at least 230 additional Thomas S. clients in the 1995-96 fiscal year and 230 additional Thomas S. clients in the 1996-97 fiscal year;
(2)	Funding to expand and enhance community-based diversion services to prevent psychiatric hospitalization of individuals who are mentally ill and mentally retarded; and
(3)	Additional funding for community-based services based on the Department's plan to end court oversight of Willie M. Services.
Funds to be used for these purposes are in addition to funds appropriated by the 1995 General Assembly for the expressed purpose of expanding services to Thomas S. and Willie M. clients.  The Secretary shall not use more than fifteen million dollars ($15,000,000) of these funds for the Thomas S. Program."

Requested by:  Representatives Gardner, Hayes
PHYSICIAN SERVICES
Sec. 23.1.  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.

Requested by:  Representatives Gardner, Hayes
AREA AUTHORITY ACCOUNTABILITY/STATE ACTION
Sec. 23.2.  Part 2 of Article 4 of Chapter 122C of the General Statutes is amended by adding the following new sections to read:
"§ 122C-124.  Area Authority funding suspended.
The Secretary of the Department of Human Resources may suspend funding to any area authority with a revenue or expenditure budget variance of ten percent (10%) or a significant deterioration in the fund balance of the authority's general fund.  A significant deterioration of fund balance is defined as a twenty-five percent (25%) decrease in the balance from one fiscal year to the next without the prior approval of the Department.  Area authorities shall report any such revenue or expenditure variance or deterioration in fund balance to the Department of Human Resources within 30 days of its occurrence.  In the event that funding is suspended, the Department of Human Resources may contract with, and make payments of Department funds on an interim basis directly to, a contract provider of the area authority to avoid the disruption of direct services to clients.
Upon suspension of funding, the Department shall, in conjunction with the area authority, develop and implement a corrective plan of action and provide notification to the area authority's board of directors of the plan.  The Department shall also keep the county board of commissioners and the area authority's board of directors informed of any ongoing concerns or problems with the area authority's finances.
"§ 122C-125.  Area Authority financial failure; State assumption of financial control.
At any time that the Secretary of the Department of Human Resources determines that an area authority is in imminent danger of failing financially and of failing to provide direct services to clients, the Secretary may assume control of the financial affairs of the area authority and appoint an administrator to exercise the powers assumed.  This assumption of control shall have the effect of divesting the area authority of its powers as to the adoption of budgets, expenditures of money, and all other financial powers conferred in the area authority by law.  County funding of the area authority shall continue when the State has assumed control of the financial affairs of the area authority.  At no time after the State has assumed this control shall a county withdraw funds previously obligated or appropriated to the area authority. The Secretary shall adopt rules to define imminent danger of failing financially and of failing to provide direct services to clients.
Upon assumption of financial control, the Department shall, in conjunction with the area authority, develop and implement a corrective plan of action and provide notification to the area authority's board of directors of the plan.  The Department shall also keep the county board of commissioners and the area authority's board of directors informed of any ongoing concerns or problems with the area authority's finances.
"§ 122C-126.  Area authority caretakers appointed.
In the event that an area authority fails to comply with the corrective plan of action required pursuant to G.S. 122C-124 when funding is suspended or pursuant to G.S. 122C-125 when the State assumes financial control of the area authority, the Secretary of the Department of Human Resources shall appoint a caretaker administrator, a caretaker board of directors, or both.
The Secretary may assign any of the powers and duties of the director of the area authority and of the board of directors and the caretaker board to the caretaker administrator as it deems necessary and appropriate to continue to provide direct services to clients, including the powers as to the adoption of budgets, expenditures of money, and all other financial powers conferred on the area authority by law.  County funding of the area authority shall continue when the State has assumed control of the financial affairs of the area authority.  At no time after the State has assumed this control shall a county withdraw funds previously obligated or appropriated to the area authority.  The caretaker administrator and the caretaker board shall perform all of these powers and duties.  The Secretary may terminate the contract of any director when it appoints a caretaker administrator.  The Administrative Procedure Act shall apply to any such decision.  Neither party to any such contract shall be entitled to damages.
After a caretaker board has been appointed, the General Assembly shall consider, at its next regular session, the future governance of the identified area authority."

Requested by:   Representatives Gardner, Hayes
AREA AUTHORITY BOARD TRAINING 
Sec. 23.3.  Part 2 of Article 4 of Chapter 122C of the General Statutes is amended by inserting the following new section to read:
"§ 122C-119.1.  Area Authority board members' training.
All members of an area authority's board of directors shall receive initial orientation on board members' responsibilities and training provided by the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services of the Department of Human Resources in fiscal management, budget development, and fiscal accountability.  A member's refusal to be trained may be grounds for removal from the board."

Requested by:  Representatives Gardner, Hayes
CONFIDENTIAL CLIENT INFORMATION SHARING CLARIFIED
Sec. 23.4.  G.S. 122C-53(i) reads as rewritten:
"(i)	Upon the request of (i) a client who is an adult and who has not been adjudicated incompetent under Chapter 35A or former Chapters 33 or 35 of the General Statutes, or (ii) the legally responsible person for any other client, a facility shall disclose to an attorney confidential information relating to that client."

Requested by:  Representatives Gardner, Hayes
NONMEDICAID REIMBURSEMENT CHANGES 
Sec. 23.5.  Section 23.16 of the 1995 Session Laws reads as rewritten:
"Sec. 23.16.  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.  Hospitals that provide psychiatric inpatient care for Thomas S. class members or adults with mental retardation and mental illness may be paid an additional incentive payment not to exceed fifteen percent (15%) of their regular daily per diem reimbursement.
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, the Department of Human Resources may negotiate with providers of medical services under the various Department of Human 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 shall be as follows:

Medical Eye	     All
Family 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 Clozaril 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.  Additionally, those adults enrolled in the Clozaril Program who become gainfully employed may continue to be eligible to receive State support, in decreasing amounts, for the purchase of Clozaril and related services up to three hundred percent (300%) of the poverty level.
State financial participation in the Clozaril Program for those enrollees who become gainfully employed is as follows:
Income	State Participation	Client Participation
(% of poverty)

0-100% 	100%	0%
101-120% 	95%	5%
121-140%	85%	15%
141-160%	75%	25%
161-180%	65%	35%
191-180%	65%	35%
201-220%	45%	55%
221-240%	35%	65%
241-260%	25%	75%
261-280%	15%	85%
281-300%	5%	95%
301%-over	0%	100%.

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."

Requested by:  Representatives Gardner, Hayes
IMPLEMENTATION OF FOOD STAMPS ELECTRONIC BENEFITS TRANSFER
Sec. 23.6.  Notwithstanding the provisions of G.S. 143-16.3 and G.S. 143-23, the Secretary of the Department of Human Resources, with the approval of the Office of State Budget and Management, may use, to the extent possible, any funds available to the Department for the 1995-96 fiscal year and for the 1996-97 fiscal year to implement Electronic Benefits Transfer for Food Stamps only.
  Requested by:  Representatives Gardner, Hayes
IMPLEMENTATION OF NORTH CAROLINA CLIENT ACCESS NETWORK (NC CAN) 
Sec. 23.7. (a)	Notwithstanding the provisions of G.S. 143-16.3 and G.S. 143-23, the Secretary of the Department of Human Resources, with the approval of the Office of State Budget and Management, may use, to the extent possible any funds available to the Department for the 1995-96 fiscal year for the planning for the implementation of the North Carolina Client Access Network (NC CAN).
(b) The Department of Human Resources may apply for and receive any available appropriate federal funds to match State and county funds identified to support the continued planning for NC Can and to match county funds to purchase equipment needed to implement NC CAN.  

Requested by:   Representatives Gardner, Hayes
CONTINUATION BUDGET AFDC OPTION ELIMINATIONS EFFECTIVE DATE  
Sec. 23.8.  The eliminations of the options in the AFDC Program affecting (i)  AFDC for pregnant women in their third trimester, (ii) AFDC for 18 year old children who are in school, and (iii) State Supplemental Payments to AFDC households due to the retrospective budgeting requirement made by Chapter 324 of the 1995 Session Laws shall be effective August 1, 1995. 

Requested by:   Representatives Gardner, Hayes
CLARIFICATION OF AUTHORIZED ADDITIONAL USE OF HIV FOSTER CARE FUNDS
Sec. 23.9.  In addition to providing board payments to foster families of HIV-infected children as prescribed in Chapter 324 of the 1995 Session Laws, any additional funds remaining that were appropriated in Chapter 324 of the 1995 Session Laws for this purpose shall be used as follows:
(1)	To provide $500.00 per foster family per year for medical training in avoiding HIV transmission in the home; and
(2)	To transfer funds to the Department of Environment, Health, and Natural Resources to create three master's level social workers within the Department of Environment, Health, and Natural Resources, for the eastern part of North Carolina to enable the case-managing of families with HIV-infected children so that the children and the parents get access to medical care and so that child protective services issues are addressed rapidly and effectively.  The three social workers shall be medically based and located:
a.	One in the northeast, covering Northampton, Hertford, Halifax, Gates, Chowan, Perquimans, Pasquotank, Camden, Currituck, Bertie, Wilson, Edgecombe, and Nash Counties;
b.	One in the central east, covering Martin, Pitt, Washington, Tyrrell, Dare, Hyde, Beaufort, Jones, Greene, Craven, and Pamlico Counties; and
C.	One in the southeast, covering New Hanover, Robeson, Brunswick, Carteret, Onslow, Lenoir, Pender, Duplin, Bladen, and Columbus Counties.

Requested by:  Representatives Gardner, Hayes
ADULT CARE HOME REIMBURSEMENT RATE
Sec. 23.10.  (a) Effective July 1, 1995, the maximum monthly rate for residents in adult care home facilities shall be nine hundred seventy-five dollars ($975.00) per month for ambulatory residents and one thousand seventeen dollars ($1,017) per month for semiambulatory residents.
(b) Effective October 1, 1995, the maximum monthly rate for residents in adult care home facilities shall be eight hundred forty-four dollars ($844.00) per month per resident.
(c) Effective October 1, 1995, the Department of Human Resources may use the remaining funds available from the State/County Special Assistance appropriation to provide:
(1)	Needed Medicaid-covered services, specifically one hour of personal care services per day to all Medicaid-eligible residents and a maximum of 50 additional hours per month of personal care services for residents who require heavy care;
(2)	Funds to the area mental health authorities to provide wraparound services for adult home care residents with mental health conditions; 
(3)	Funds for the implementation of the provisions of G.S. 131D-4.1 and G.S. 131D-4.2, including funds for necessary additional staff.
(d) The eligibility of Special Assistance recipients residing in adult care homes on October 1, 1995, shall not be affected by an income reduction in the Special Assistance eligibility criteria resulting from adoption of the Rate Setting Methodology Report and Related Services, providing these recipients are otherwise eligible.

Requested by:  Representatives Gardner, Hayes
ADULT CARE HOME ALLOCATION OF NONFEDERAL COST OF MEDICAID PAYMENTS
Sec. 23.11. Effective October 1, 1995, the State shall pay fifty percent (50%) and the county shall pay fifty percent (50%) of the nonfederal costs of Medicaid services paid to adult care home facilities.  As Medicaid personal care requirements increase, the county matching share shall be capped until it equals fifteen percent (15%) of the nonfederal Medicaid personal care requirements. 

Requested by:  Representatives Creech, Hayes, Gardner
DOMICILIARY CARE REPORT
Sec. 23.1A.  The Secretary of the Department of Human Resources shall report quarterly, beginning October 1, 1995, to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division of the Legislative Services Office on the planning and status of implementation of the following:
(1)	Rate setting and financing of domiciliary care, including the use of Medicaid funds for personal care services;
(2)	Quality assurance and enhancement of domiciliary care, including case management for residents with special care needs, monitoring of domiciliary care facilities and specialized training of direct care staff; and
(3)	The process for the evaluation of the Domiciliary Care Financing and Quality Assurance Program.

Requested by:  Representatives Dickson, Gardner, Hayes
PRIMARY CARE FUNDS
Sec. 23.12.  The Department of Human Resources may combine and allocate funds appropriated for the Office of Rural Health and Resource Development for recruitment and retention of primary care providers in medically underserved areas into one Provider Incentive Fund.  Funds in the Provider Incentive Fund may be allocated for purposes of enhancing recruitment and retention of primary care providers in medically underserved areas and for other purposes related to the enhancement of health services to medically underserved communities.  

Requested by:  Representatives Gardner, Hayes
MODIFIED WILDERNESS EDUCATION CAMP PROGRAM
Sec. 23.13.  Of the three million thirty-six thousand three hundred fifty-two dollars ($3,036,352) appropriated in Chapter 324 of the 1995 Session Laws for two additional Wilderness Camps approved by the 1993 General Assembly, Extra Session 1994, one million five hundred eighteen thousand one hundred seventy-six dollars ($1,518,176) shall be used to fund a Modified Wilderness Education Camp Program in the Department of Human Resources that shall emphasize education for juveniles under the age of 16 referred by the public schools.  If the Modified Wilderness Education Camp is discontinued, funds for this purpose shall be directed to operate a traditional Wilderness Camp Program.

Requested by:  Representatives Gardner, Hayes
DETENTION FACILITY CONSTRUCTION FUNDS 
Sec. 23.15.  Of the funds appropriated to the Department of Human Resources in Chapter 24 of the 1993 Session Laws, Extra Session 1994, for construction of a 24-bed juvenile detention facility in Wake County,  the Department of Human Resources may use the sum of one million six hundred thousand dollars ($1,600,000) to construct a 24-bed facility at any available location in the State.  

Requested by:   Representatives Gardner, Hayes
FAMILY SUPPORT/DEAF AND HARD OF HEARING SERVICES CONTRACT  
Sec. 23.17.  (a) Of the funds appropriated to the Division of Services for the Deaf and Hard of Hearing, Department of Human Resources, in Chapter 324 of the 1995 Session Laws for family support services, the sum of five hundred thousand dollars ($500,000) for each fiscal year of the biennium shall be used to contract with a private, nonprofit corporation licensed to do business in North Carolina to perform those services currently being offered by the Family Resource Centers within the Division of Services for the Deaf and Hard of Hearing, including family support and advocacy services as well as technical assistance to professionals who work with families of hearing impaired children.
(b) The Office of State Budget and Management shall perform a performance audit of the private, nonprofit contract program at the end of this first year and shall report the results of this audit to the General Assembly, the Fiscal Research Division of the Legislative Services Office, and the Department of Human Resources.

Requested by:   Representatives Gardner, Hayes
DEAF EDUCATION IMPROVEMENTS  
Sec. 23.18.  Of the funds appropriated to the Division of Services for the Deaf and Hard of Hearing, Department of Human Resources, in this act, the sum of five hundred thousand dollars ($500,000) for the 1995-96 fiscal year and the sum of one million five hundred thousand dollars ($1,500,000) for the 1996-97 fiscal year shall be used to improve the quality of public education that the State provides to deaf and hard of hearing children through the three North Carolina Schools for the Deaf in Morganton, Greensboro, and Wilson.  These improvements shall include additional staff for curriculum enhancement, expansion of the extended school year program, and establishment of programs for behaviorally and emotionally handicapped (BEH) deaf and hard of hearing children and for post-secondary enrichment. 

Requested by: Representative Morgan
FUNDS FOR CARING PROGRAM FOR CHILDREN/ABOLISH HEALTH PLANNING COMMISSION
Sec. 23.19.  (a) Of the funds appropriated in Chapter 324 of the 1995 Session Laws to the Department of Human Resources for the North Carolina Health Planning Commission, the sum of eight hundred thousand dollars ($800,000) for the 1995-96 fiscal year and the sum of eight hundred thousand dollars ($800,000) for the 1996-97 fiscal year shall be allocated as a grant-in-aid to the Caring Program for Children, Inc., to purchase health care for children who do not qualify for the Medicaid Program.  The Department of Human Resources shall administer the grant-in-aid established under this section in cooperation with the Department of Environment, Health, and Natural Resources.
(b)	The title and number of Article 65 of Chapter 143 of the General Statutes read as rewritten:
"ARTICLE 65A.
" Education and
Training of Primary Care Physicians."
(c)	G.S. 143-610, 143-611, 143-612, and 143-614 are repealed.

PART 24.  DEPARTMENT OF AGRICULTURE

Requested by:   Representatives Mitchell, Weatherly
CATTLE AND LIVESTOCK EXPOSITION CENTER
Sec. 24.  (a)	Any unencumbered funds that were  appropriated to the Department of Agriculture in Chapter 561 of the 1993 Session Laws for the 1993-94 fiscal year as planning funds for a livestock facility shall be placed in a reserve in the Department of Agriculture until further allocated by the 1995 General Assembly, Regular Session 1996.
(b)	Section 40 of Chapter 769 of the 1993 Session Laws reads as rewritten:
"Sec. 40.  Any unencumbered funds that were appropriated to the Department of Agriculture for the 1994-95 fiscal year for planning the construction of the Cattle and Livestock Exposition Center shall be placed in a reserve in the Department of Agriculture until further allocated by the 1995 General Assembly, Regular Session 1996.  The Center will house livestock shows and exhibits, educational programs, and a laboratory for embryo transfer research, semen evaluation, and livestock blood work."

PART 25.  DEPARTMENT OF COMMERCE

Requested by: Representatives Mitchell, Weatherly
INDUSTRIAL COMMISSION/FRAUD CHECK
Sec. 25.  (a)	G. S. 97-88.2(b) reads as rewritten:
"(b)	The Commission shall:
(1)	Perform investigations regarding all cases of suspected fraud and all violations related to workers' compensation claims, by or against insurers or self-funded employers, and refer possible criminal violations to the appropriate prosecutorial authorities;
(2)	Conduct administrative violation proceedings; and
(3)	Assess and collect penalties and restitution."
(b)	Of the funds appropriated in this act to the Department of Commerce, the sum of forty thousand dollars ($40,000) for the 1995-96 fiscal year and the sum of forty thousand dollars ($40,000) for the 1996-97 fiscal year shall be used for the North Carolina Industrial Commission to implement subsection (a) of this section.

Requested by:  Representatives Mitchell, Weatherly
CENTER FOR COMMUNITY SELF-HELP FUNDS
Sec. 25.1.  (a)	Of the funds appropriated in this act to the Department of Commerce, the sum of two million dollars ($2,000,000) for the 1995-96 fiscal year shall be allocated to the Center for Community Self-Help to further a statewide program of lending for home ownership throughout North Carolina.  These funds will be leveraged on a ten-to-one basis, generating at least ten dollars ($10.00) of nontraditional home loans for every one dollar ($1.00) of State funds.  Payments of principal shall be available for further loans or loan guarantees.
(b)	The Center for Community Self-Help shall submit, within 180 days after the close of its fiscal year, audited financial statements to the State Auditor.  All records pertaining to the use of State funds shall be made available to the State Auditor upon request.  The Center for Community Self-Help shall make quarterly reports on the use of State funds to the State Auditor, in form and format prescribed by the State Auditor or his designee.  The Center for Community Self-Help shall make a written report by May 1 of each year for the next three years to the General Assembly on the use of the funds allocated under this section.
(c)	The Center for Community Self-Help shall report to the Joint Legislative Commission on Governmental Operations, the House Appropriations Subcommittee on Natural and Economic Resources, the Senate Appropriations Committee on Natural and Economic Resources, and the Department of Commerce on a quarterly basis for the next three years.
(d)	The Office of the State Auditor may conduct an annual end-of-year audit of the revolving fund for economic development lending created by this appropriation for each year of the life of the revolving fund.
(e)  If the Center for Community Self-Help dissolves, the corporation shall transfer the remaining assets of the revolving fund to the State and shall refrain from disposing of the revolving fund assets without approval of the State Treasurer.
(f)  The Office of State Budget and Management shall disburse this appropriation within 15 working days of the receipt of a request for the funds from the Center for Community Self-Help.  The request shall include a commitment of the leveraged funds by the Center for Community Self-Help or its affiliates.

Requested by: Representatives Mitchell, Weatherly
BUDGET FLEXIBILITY/INTERNATIONAL TRADE DIVISION
Sec. 25.2.   Of the funds appropriated in this act to the Department of Commerce, the sum of one hundred thousand dollars ($100,000) for the 1995-96 fiscal year shall be placed in a reserve to be used to cover devaluation of the dollar to a foreign currency only if the devaluation is five percent (5%) or greater and shall be used to cover increased expenses due to foreign country inflation only if the inflation is greater than one percent (1%) per month.  Funds allocated pursuant to this section shall be limited to a maximum of forty thousand dollars ($40,000) per office for the Department's International Trade Division offices in Hong Kong, Tokyo, Dusseldorf, and Mexico City.

Requested by: Representatives Mitchell, Weatherly
NCACTS REPORTING REQUIREMENT
Sec. 25.3.  Section 11.2 of Chapter 324 of the 1995 Session Laws reads as rewritten:
"Sec. 11.2.  The North Carolina Alliance for Competitive Technologies (NCACTS)	created by Executive Order No. 63 on September 26, 1994, is transferred from the Department of Administration to the Department of Commerce.  All positions, property, unexpended balances of appropriations, allocations and other refunds, including the functions of budgeting and purchasing, for NCACTS are transferred from the Department of Administration to the Department of Commerce.
Beginning October 1, 1995, and quarterly thereafter, NCACTS shall report on its operations, use of funds, and performance to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division."
Requested by: Representatives Mitchell and Weatherly
ECONOMIC DEVELOPMENT PROGRAM RESERVE FUNDS ALLOCATION
Sec. 25.4.  (a) Funds appropriated in this act for the 1995-96 fiscal year to the Department of Commerce, Economic Development Program Reserve, shall be allocated as follows:
(1)	By the Department of Commerce:
a.	$2,100,000 to the Industrial Recruitment Competitive Fund to assist new and expanding businesses and industries;
b.	$300,000 to the Land Loss Prevention Project, Inc., to provide free legal representation to low-income, financially distressed small farmers;
c.	$250,000 to the Coalition of Farm and Rural Families, Inc., for its Small Farm Economic Development Project; and
(2)	$1,000,000 to the North Carolina Biotechnology Center to expand the special biotechnology program initiative for North Carolina's Public Historically Black Universities and Pembroke State University; and
(3)	By the Rural Economic Development Center, Inc.:
a.	$200,000 to the Minority Credit Union Support Center for technical assistance to community-based minority credit unions, and
b.	$350,000 to the Microenterprise Loan Program to support the loan fund and operations of the Program.
(b)	The Department of Commerce, the North Carolina Biotechnology Center, and the Rural Economic Development Center, Inc., shall each report quarterly, beginning October 1, 1995, to the Joint Legislative Commission on Governmental operations on the uses of funds allocated.  Non-State entities that receive funds pursuant to this section shall provide to the Department of Commerce information requested by it to enable the Department to prepare and submit its report to the Joint Legislative Commission on Governmental Operations.
Requested by: Representatives Mitchell, Weatherly
CLEVELAND COUNTY PARTICIPATION IN ECONOMIC DEVELOPMENT COMMISSION
Sec. 25.5.  (a) G.S. 158-8.1(a) reads as rewritten:
"(a)	There is created the Western North Carolina Regional Economic Development Commission to serve Buncombe, Cherokee, Clay, Graham, Haywood, Henderson, Jackson, McDowell, Macon, Madison, Polk, Rutherford, Swain, Transylvania, and Yancey Counties, and any other county assigned to the Commission by the Department of Commerce as authorized by law. The Commission shall be located administratively in the Department of Commerce but shall exercise its statutory powers and duties independently of the Department of Commerce. Funds appropriated for the Commission by the General Assembly shall be disbursed directly to the Commission at the beginning of each fiscal year."
(b) The Department of Commerce shall allocate Cleveland County's pro rata share of economic development funds appropriated to the Department pursuant to Section 25.4 of Chapter 324 of the 1995 Session Laws to the Carolinas Partnership, Inc., Economic Development Commission, of which Cleveland County has been and is currently a dues-paying member.

Requested by: Representative Weatherly 
COMMON FOLLOW-UP SYSTEM FOR STATE JOB TRAINING AND EDUCATION PROGRAMS
Sec. 25.6.  (a)	Chapter 96 of the General Statutes is amended by adding the following new Article to read:
"Article 4.
"Job Training, Education, and Placement
Information Management.
"§ 96-30. Findings and purpose.
The General Assembly finds it in the best interests of this State that the establishment, maintenance, and funding of State job training, education, and placement programs be based on current, comprehensive information on the effectiveness of these programs in securing employment for North Carolina citizens and providing a well-trained workforce for business and industry in this State. To this end, it is the purpose of this Article to require the establishment of an information system that maintains up-to-date job-related information on current and former participants in State job training and education programs.
"§ 96-31. Definitions.
As used in this Article, unless the context clearly requires otherwise, the term:
(1)	'CFS' means the common follow-up information management system developed by the Employment Security Commission of North Carolina as authorized under this Article.
(2)	'ESC' means the Employment Security Commission of North Carolina.
(3)	'State job training, education, and placement program' or 'State-funded program' means a program operated by a State or local government agency or entity and supported in whole or in part by State funds, that provides job training and education or job placement services to program participants. The term does not include on-the-job training provided  to current employees of the agency or entity for the purposes of professional development.
"§ 96-32. Common follow-up information management system created; rules authorized.
(a)	The Employment Security Commission of North Carolina shall develop, implement, and maintain a common follow-up information management system for tracking the employment status of current and former participants in State job training, education, and placement programs.  The system shall provide for the automated collection, organization, dissemination, and analysis of data obtained from State-funded programs that provide job training and education and job placement services to program participants.  In developing the system, the ESC shall ensure that data and information collected from State agencies is confidential, not open for general public inspection, and maintained and disseminated in a manner that protects the identity of individual persons from general public disclosure.
(b)	As part of the CFS, the ESC may develop a system for evaluating the effectiveness of job training, education, and placement programs to determine if specific program goals and objectives are attained and to determine placement and completion rates for each program.
(c)	The ESC shall adopt rules in accordance with Chapter 150B of the General Statutes pertaining to the development and implementation of the CFS authorized under this section.  Rules shall address the following:
(1)	Method of collection, organization, dissemination, and analysis of data and information reported by State agencies subject to this Article.
(2)	Provisions relating to reporting requirements, including submission deadlines and forms of reporting.
(3)	Provisions for ensuring confidentiality of information with respect to identification of individuals about whom data is collected.
(4)	Provisions ensuring that the only data collected on individuals is that which is necessary to carry out the purposes for which the system is maintained.  Data collected may include the name, social security number, race, sex, date of birth, and employment status of individual program participants provided that information publicly disseminated is done so in the aggregate and protects the confidentiality and identity of individual program participants.
(5)	Provisions ensuring that data and information collected is, insofar as possible, accurate, current, and relevant to the purposes for which the system was created.
(6)	Provisions allowing for information compiled under this Article to be shared with any other State, local, or federal agency that operates job training, education, and placement programs, provided that the confidentiality and identity of individuals is protected as provided under this Article.
(7)	Provisions for the calculation of placement rates for programs in which a substantial number of participants do not have social security numbers.
(8)	Other rules necessary to carry out the purposes of this Article.
"§ 96-33. State agencies required to provide information and data.
(a)	Every State agency and local government agency or entity that receives State funds for the direct or indirect support of State job training, education, and placement programs shall provide to the Employment Security Commission of North Carolina all data and information available to or within the agency or entity's possession requested by the ESC for input into the common follow-up information management system authorized under this Article.
(b)	Each agency or entity required to report information and data to the ESC under this Article shall maintain true and accurate records of the information and data requested by the ESC.  The records shall be open to ESC inspection and copying at reasonable times and as often as necessary.  Each agency or entity shall further provide, upon request by ESC, sworn or unsworn reports with respect to persons employed or trained by the agency or entity, as deemed necessary by the ESC to carry out the purposes of this Article.  Information obtained by the ESC from the agency or entity shall be held by ESC as confidential and shall not be published or open to public inspection other than in a manner that protects the identity of individual persons and employers.
"§ 96-34. Prohibitions on use of information collected.
Data and information reported, collected, maintained, disseminated, and analyzed may not be used by any State or local government agency or entity for purposes of making personal contacts with current or former students or their employers or trainers.
"§ 96-35. ESC report on common follow-up system activities.
The Employment Security Commission of North Carolina shall present annually by May 1 to the General Assembly and to the Governor a report of CFS activities for the preceding calendar year.  The report shall include information and evaluation of job training, education, and placement programs for which data was reported by State and local agencies subject to this Article.  Evaluation of the programs shall be on the basis of fiscal year data.  ESC reports to the General Assembly shall be provided to the President Pro Tempore of the Senate, the Speaker of the House of Representatives, the Legislative Librarian, and the Director of Fiscal Research."

Requested by:   Representatives Mitchell, Weatherly
PETROLEUM OVERCHARGE FUNDS ALLOCATION
Sec. 25.7.  (a) The funds and interest thereon received from the case of the 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 one million six hundred fifty thousand dollars ($1,650,000) for the 1995-96 fiscal year and the sum of one million six hundred fifty thousand dollars ($1,650,000) for the 1996-97 fiscal year to be used for projects under the State Energy Conservation Plan.
(b)	There is appropriated from funds and interest thereon received from the United States Department of Energy's Stripper Well Litigation (MDL378) that remain in the Special Reserve for Oil Overcharge Funds to the Department of Commerce the sum of two million five hundred thousand dollars ($2,500,000) for the 1995-96 fiscal year and two million two hundred fifty thousand dollars ($2,250,000) for the 1996-97 fiscal year to be allocated 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 Oil Overcharge Funds.
(d)	The funds and interest thereon received from the Diamond Shamrock Settlement that remain in a reserve in the Office of State Budget and Management for the Department of Commerce 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 Department of Commerce on an as-needed basis.
(e)  The Department of Commerce shall submit comprehensive annual reports to the General Assembly by May 15, 1996, and January 31, 1997, 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.

Requested by:   Representatives Mitchell, Weatherly
PETROLEUM OVERCHARGE ATTORNEY FEES
Sec. 25.8.  (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 attorney 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 attorney fees and reasonable expenses, into the Special Reserve for Oil Overcharge Funds.
(b)	All attorney 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 1995-96 fiscal year and for the 1996-97 fiscal year for that purpose.

Requested by: Representatives Mitchell, Weatherly
WORKER TRAINING TRUST FUND APPROPRIATIONS
Sec. 25.9.  (a)	There is appropriated from the Worker Training Trust Fund to the Employment Security Commission of North Carolina the sum of five million eight hundred thirty-nine thousand nine hundred sixty-four dollars ($5,839,964) for the 1995-96 fiscal year and the sum of five million eight hundred thirty-nine thousand nine hundred sixty-four dollars ($5,839,964) for the 1996-97 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 1995-96 fiscal year and the sum of two million dollars ($2,000,000) for the 1996-97 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 1995-96 and the 1996-97 fiscal years for the following purposes:
(1)	$2,400,000 for the 1995-96 fiscal year and $2,400,000 for the 1996-97 fiscal year to the Department of Economic and Community Development, Division of Employment and Training, for the Employment and Training Grant Program;
(2)	$1,000,000 for the 1995-96 fiscal year and $1,000,000 for the 1996-97 fiscal year to the 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;
(3)	$1,528,067 for the 1995-96 fiscal year and $1,528,067 for the 1996-97 fiscal year to the 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;
(4)	$1,746,000 for the 1995-96 fiscal year and $1,746,000 for the 1996-97 fiscal year to the Department of Community Colleges to continue the Focused Industrial Training Program;
(5)	$225,000 for the 1995-96 fiscal year and $225,000 for the 1996-97 fiscal year to the Employment Security Commission for the Occupational Information Coordinating Committee to develop and operate an interagency system to track former participants in State education and training programs; and
(6)	$300,000 for the 1995-96 fiscal year and $300,000 for the 1996-97 fiscal year to the Department of Community Colleges for a training program in entrepreneurial skills to be operated by North Carolina REAL Enterprises.

Requested by: Representatives Mitchell and Weatherly
ESC VOTER REGISTRATION FUNDS
Sec. 25.10. (a) There is appropriated from the Worker Training Trust Fund to the Department of Commerce, Employment Security Commission, the sum of three hundred thousand dollars ($300,000) for the 1996-97 fiscal year to carry out the provisions of the National Voter Registration Act (P.L. 103-31).
(b) The Employment Security Commission shall report to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division no later than 30 days before reconvening in 1996 of the 1995 Regular Session of the General Assembly as to how the funds appropriated by subsection (a) of this section were expended, specifically:
(1)	Its methodology for charging costs against the appropriation;
(2)	Detailing of the costs by categories;
(3)	How much of the costs supplanted federal funds and how much were incremental costs; and
(4)	Whether employer contribution rates can be reduced to the extent that federal funds were supplanted, and what State or federal legislation would be required to make such rate reductions.
(c) Section 73 of Chapter 762 of the 1993 Session Laws reads as rewritten:
"Sec. 73.  Sections 1 through 68 of this act become effective January 1, 1995, and apply to all primaries and elections occurring on or after that date.  The remainder of this act is effective upon ratification and shall apply to all primaries and elections occurring on or after the date of ratification.  Prosecutions for, or sentences based on, offenses occurring before the effective date of any section of this act are not abated or affected by this act 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.  G.S. 163-82.20(a)(3) and G.S. 163-82.20(b1) as enacted in Section 2 of this act expire July 1, 1996."
(d) Section 16.1(b) of Chapter 769 of the 1993 Session Laws is extended through December 31, 1995.

Requested by: Representatives Mitchell and Weatherly 
ALLOCATION OF MCNC REDUCTIONS IN FUNDS
Sec. 15.11.  Reductions in this act to funds appropriated in Chapter 324 of the 1995 Session Laws to MCNC shall be allocated by MCNC among the program categories listed in Section 25.9(c) of Chapter 324 of the 1995 Session Laws.  MCNC shall report on the allocation of the reductions to the Joint Legislative Commission on Governmental Operations within 30 days of the allocation.

PART 26.  DEPARTMENT OF ENVIRONMENT, HEALTH, AND NATURAL RESOURCES

Requested by:   Representatives Wilkins, Mitchell, Weatherly, H. Hunter
STATEWIDE AQUATIC WEED ASSESSMENT
Sec. 26. (a)	Of the funds appropriated in this act to the Department of Environment, Health, and Natural Resources, the sum of thirty thousand dollars ($30,000) for the 1995-96 fiscal year shall be used by the Department of Environment, Health, and Natural Resources and the North Carolina Aquatic Weed Council to study aquatic weed infestation on a statewide basis.
(b)	The Department of Environment, Health, and Natural Resources and the North Carolina Aquatic Weed Council shall report their findings to the Joint Legislative Commission on Governmental Operations by March 15, 1996.
(c) The report shall identify relevant research related to the control and eradication of noxious aquatic plants, include an assessment of the environmental and economic impacts caused by infestation, an assessment of the impact of federal regulations, and a discussion of the issues and options related to control and eradication, enforcement and funding mechanisms.  The report shall also include options to reduce or eliminate aquatic weed infestation and a recommended statewide action plan.  The report shall consider funding issues and shall address both total budgetary requirements and alternative sources of funding, including fees and other receipts.

Requested by:   Representatives Holmes, Mitchell, Weatherly, Yongue
WATERSHED FUNDS DO NOT REVERT
Sec. 26.1.  Subsection (b) of Section 107 of Chapter 561 of the 1993 Session Laws reads as rewritten:
"(b)	Where the actual costs are different from the estimated costs under subsection (a) of this section, the Department may adjust the allocations among projects as needed.  If any projects listed in subsection (a) of this section are delayed and the budgeted State funds cannot be used during the 1993-94 fiscal year, or if the projects listed in subsection (a) of this section are accomplished at a lower cost, the Department may use the resulting fund availability to fund:
(1)	Corps of Engineers project feasibility studies, or
(2)	Corps of Engineers projects whose schedules have advanced and require State matching funds in fiscal year 1993-94, or 
(3)	State-local Water Resources Development Projects.
Funds, except those allocated in subdivisions (a)(14),(15),(16), and (17) of this section, not expended or encumbered for these purposes shall revert to the General Fund at the end of the 1994-95 fiscal year.  The funds allocated in subdivisions (a)(14),(15),(16), and (17) of this section shall not revert until June 30, 1997."

Requested by:   Representative Culp
RANDLEMAN DAM RESERVE RELEASE RESTRICTIONS
Sec. 26.2.   Subsection (c) of Section 8 of Chapter 777 of the 1993 Session Laws reads as rewritten:
"(c)	All funds appropriated in Chapter 769 of the 1993 Session Laws for the construction of Randleman Dam shall revert to the General Fund on October 1, 1997, if construction has not begun before that date."

Requested by:   Representative Baker
TOWN FORK CREEK SOIL CONSERVATION PROJECT
Sec. 26.3.  (a)	Of the funds appropriated in Section 41(a)(6) of Chapter 769 of the 1993 Session Laws for State-local projects, the sum of seven hundred fifty thousand dollars ($750,000) shall not revert until June 30, 1997.  (These funds are to replace funds originally appropriated for Town Fork Creek that were later reallocated as a grant to the Pilot Mountain Foundation, Inc., for capital improvements.)
(b)	The sum of four hundred thousand dollars ($400,000) appropriated in Section 107(a)(16) of Chapter 561 of the 1993 Session Laws shall not revert until June 30, 1997.
(c)	The funds appropriated in Chapter 480 of the 1985 Session Laws and Chapter 754 of the 1989 Session Laws for construction of the Town Fork Reservoir Project in Stokes County, the funds appropriated in Section 107(a)(16) of Chapter 561 of the 1993 Session Laws, and the funds appropriated in Section 41(a)(6) of Chapter 769 of the 1993 Session Laws for State-local projects that do not revert shall be placed in a reserve account. The funds in the reserve account shall not be expended or encumbered pending the completion, without cost to the State, of all of the following:
(1)	A project cost review including an updated engineering cost estimate of the dam structure and associated costs.
(2)	A cost estimate of the requirements imposed for habitat maintenance by the Wildlife Commission.
(3)	A review of the impact of watershed regulations under review by the Department of Environment, Health, and Natural Resources.
(4)	A review of the potential impact of the agreement with Forsyth County on watershed access.
(5)	A determination of the amount of funds required to be paid by Stokes County and the approval of a majority of the voters of Stokes County in a referendum to be held at the general election in  November 1996.

Requested by: Representatives Mitchell, Weatherly, H. Hunter
HEALTHY START FOUNDATION FUNDS
Sec. 26.4.  Of the funds appropriated in this act to the Department of Environment, Health, and Natural Resources, the sum of two hundred thousand dollars ($200,000) for the 1995-96 fiscal year shall be allocated to the North Carolina Healthy Start Foundation to support the programs and activities of the Governor's Commission on Reduction of Infant Mortality.  Funds allocated pursuant to this section shall be expended first to support statewide planning, promotion, and coordination for the First Step Campaign.  Funds remaining after allocation for First Step shall be used to support other programs and activities. The Healthy Start Foundation shall report on all of its programs to the Joint Legislative Commission on Governmental Operations on or before March 1, 1996.  The report shall include information on the Foundation's activities and accomplishments during the past fiscal year, a list of the groups, organizations, communities, and other recipients of assistance from the Foundation in the last 12 months, itemized expenditures during the past fiscal year with sources of funding, planned activities, and accomplishments for at least the next 12 months, and itemized anticipated expenditures with sources of funding for the next 12 months.

Requested by: Representatives Mitchell and Weatherly 
ABSTINENCE UNTIL MARRIAGE EDUCATION FUNDS
Sec. 26.5.  (a) Of the funds appropriated in Section 2 of Chapter 324 of the 1995 Session Laws to the Department of Environment, Health, and Natural Resources for health programs, the sum of up to fifty thousand dollars ($50,000) for the 1995-96 fiscal year may be used to fund a sex education curriculum that promotes abstinence until marriage.  Systems that apply for these funds may receive up to two thousand five hundred dollars ($2,500) each.  Nothing shall prohibit a school system from receiving private funds to provide this curriculum.
(b) All applications for grants for funds prescribed in subsection (a) of this section shall contain a detailed description of the curriculum to be offered and a full set of materials to be used.  Prior to making any grants, the Department shall review all curriculum descriptions and materials and shall use the results of this review in determining whether to award grants.  If any of the initial school systems that apply for grants are rejected by the review process, other school systems may apply.
(c) The Department shall report on the status and funding of the abstinence until marriage education curriculum to the House Appropriations Subcommittee on Natural and Economic Resources, the Senate Appropriations Committee on Natural and Economic Resources, and to the Joint Legislative Commission on Governmental Operations by May 1, 1996.

Requested by:   Representatives Mitchell, Weatherly, Redwine, H. Hunter
BEAVER DAMAGE CONTROL FUNDS
Sec. 26.6.  (a)	Subsection (b) of Section 69 of Chapter 1044 of the 1991 Session Laws, as amended by Section 111 of Chapter 561 of the 1993 Session Laws and by Section 27.3 of Chapter 769 of the 1993 Session Laws, reads as rewritten:
"(b)	The Beaver Damage Control Advisory Board shall develop a pilot program to control beaver damage on private and public lands.  Bladen, Brunswick, Carteret, Chatham, Craven, Columbus, Duplin, Edgecombe, Franklin, Greene, Halifax, Hertford, Johnston, Lincoln, Nash, Onslow, Pamlico, Pender, Pitt, Robeson, Sampson, Vance, Warren, Washington, Wayne, and Wilson Counties shall participate in the pilot program.  The Beaver Damage Control Advisory Board shall act in an advisory capacity to the Wildlife Resources Commission in the implementation of the program.  In developing the program, the Board shall:
(1) 	Orient the program primarily toward public health and safety and toward landowner assistance, providing some relief to landowners through beaver control and management rather than eradication;
(2)	Develop a priority system for responding to complaints about beaver damage;
(3)	Develop a system for documenting all activities associated with beaver damage control, so as to facilitate evaluation of the program;
(4)	Provide educational activities as a part of the program, such as printed materials, on-site instructions, and local workshops;
(5)	Provide for the hiring of personnel necessary to implement beaver damage control activities, administer the pilot program, and set salaries of personnel;
(6)	Evaluate the costs and benefits of the program that might be applicable elsewhere in North Carolina.
No later than September 30, 1994 and again upon the conclusion of the pilot program on June 30, 1996, the Board shall issue a report to the Wildlife Resources Commission on the program to date, including recommendations on the feasibility of continuing the program in participating counties and the desirability of expanding the program into other counties.  The Wildlife Resources Commission shall prepare a plan to implement a statewide program to control beaver damage on private and public lands.  No later than January 1, 1995, the Wildlife Resources Commission shall present its plan in a report to the House Appropriations Subcommittee on Natural and Economic Resources and the Senate Appropriations Committee on Natural and Economic Resources."
(b)	Subsection (h) of Section 69 of Chapter 1044 of the 1991 Session Laws, as amended by Section 111 of Chapter 561 of the 1993 Session Laws and by Section 27.3 of Chapter 769 of the 1993 Session Laws, reads as rewritten:
"(h)	Subsections (a) through (d) of this section expire June 30, 1996."
(c)	Section 7 of Chapter 358 of the 1995 Session Laws is repealed.
(d)	Of the funds appropriated from the General Fund to the Wildlife Resources Commission for the 1995-96 fiscal year, there is allocated the sum of three hundred fifty thousand dollars ($350,000) to provide the State share necessary to continue the beaver damage control pilot program established by Section 69 of Chapter 1044 of the 1991 Session Laws, as amended by Section 111 of Chapter 561 of the 1993 Session Laws and Section 27.3 of the 1993 Session Laws, in Bladen, Brunswick, Carteret, Chatham, Craven, Columbus, Duplin, Edgecombe, Franklin, Greene, Halifax, Hertford, Johnston, Lincoln, Nash, Onslow, Pamlico, Pender, Pitt, Robeson, Sampson, Vance, Warren, Washington, Wayne, and Wilson Counties, provided the sum of twenty-five thousand dollars ($25,000) in federal funds is available in each fiscal year to provide the federal share.  These funds shall be matched by four thousand dollars ($4,000) of local funds in each fiscal year from each of the 26 participating counties.

PART 27.  CAPITAL AND SPECIAL PROVISIONS

Requested by:   Representatives Holmes, Creech, Esposito
NORTH CAROLINA INFORMATION HIGHWAY FUNDS
Sec. 27.  The funds appropriated in this act to the Office of the State Controller for the operation of the North Carolina Information Highway  shall be used only for costs incurred by the Office of the State Controller related to the operations and support of the North Carolina Information Highway.  No funds appropriated in this act shall be expended to pay Minimum Monthly Usage charges for North Carolina Information Highway services until such time as the Controller certifies to the General Assembly that the network is capable of performing all services for which the State has contracted and that the network equipment and service providers are capable of providing full and adequate support for the network's functions and to all qualified users.  The Controller shall report to the General Government Appropriations Subcommittees for the Senate and the House of Representatives regarding the costs incurred by the Office of the State Controller related to the operations and support of the North Carolina Information Highway.  For purposes of this section the term "North Carolina Information Highway" means the new, high-capacity optical fiber network that uses SONET transmission technology and ATM switching.

Requested by:   Representatives Holmes, Creech, Esposito
DATA PROCESSING RESERVE 
Sec. 27.1.  Funds appropriated in the Data Processing Reserve shall be distributed to user agencies for the purpose of making payments to the State Information Processing System for line-item object code 3800 charges.  No funds shall be used for personnel or equipment purchases.
The Office of State Controller and the Office of State Budget and Management shall jointly study the State Computer Center demand estimates and shall submit to the 1995 General Assembly, Regular Session 1996, by May 1, 1996, a comprehensive report detailing projected cost needs for the 1996-97 fiscal year and the funding source for those needs in excess of the level funded in Chapter 324 of the 1995 Session Laws, the Continuation Budget Appropriations Act of 1995, and in this act.  

Requested by:  Representatives Holmes, Creech, Esposito
APPALACHIAN STATE UNIVERSITY'S MASTER OF SCHOOL ADMINISTRATION PROGRAM CONTINUED
Sec. 27.2.  (a)	G.S. 116-74.21(b) reads as rewritten:
"(b)	No more than eight school administrator programs shall be established under the competitive proposal program. In selecting campus sites, the Board of Governors shall be sensitive to the racial, cultural, and geographic diversity of the State. Special priority shall be given to the following factors: (i) the historical background of the institutions in training educators; (ii) the ability of the sites to serve the geographic regions of the State, such as, the far west, the west, the triad, the piedmont, and the east; and, (iii) whether the type of roads and terrain in a region make commuting difficult. A school administrator program may provide for instruction at one or more campus sites."
(b) The Board of Governors of The University of North Carolina shall continue the Master of School Administrators program at Appalachian State University as one of the eight school administrator programs established pursuant to G.S. 116-74.21.

Requested by:   Representatives Holmes, Creech, Esposito
PIEDMONT SPORTS AND ENTERTAINMENT FACILITIES STUDY COMMISSION
Sec. 27.3.  Section 28.21 of Chapter 769 of the 1993 Session Laws, Regular Session 1994, reads as rewritten:
"Sec. 28.21.  (a)	The Piedmont Sports and Entertainment Study Commission is created.  The Commission shall consist of 35 members.  The boards of county commissioners of Alamance, Caswell, Davidson, Davie, Forsyth, Guilford, Randolph, Rockingham, Stokes, Surry, and Yadkin Counties shall, each, appoint two members of the Commission; one of whom shall be a county commissioner of that county and one of whom is a resident of that county recommended by the chamber of commerce serving that county. Eleven members shall be appointed by the Chair of the Commission. The chair and vice-chair of the Piedmont State Legislative Caucus, as the Caucus existed during the 1995 Regular Session, shall be ex officio members of the Commission and shall serve, respectively, as the chair and vice-chair of the Commission.
(b)	The Commission shall study the need for and feasibility of creating regional sports and entertainment facilities to serve the Piedmont area of the State; and, if the Commission determines the facilities are needed and their creation feasible, the best method to establish an Authority to implement these facilities.
	(c)	The Commission shall submit a report of its findings and recommendations to the General Assembly on or before the first day of the 1995 General Assembly, Regular Session 1996, by filing the report with the President Pro Tempore of the Senate and the Speaker of the House of Representatives.  Upon filing its report, the Commission shall terminate.
	(d)	The Commission may meet at any time upon the call of the chair.  The Commission may meet, with the approval of the Legislative Services Commission, in the State Legislative Building or the Legislative Office Building.
	(e)  Notwithstanding any other provision of law, members of the Commission shall receive no per diem compensation, but shall receive reimbursement of subsistence and travel expenses, as provided by law.
(f)	The Commission may contract for professional, clerical, or consultant services. The Department of Commerce shall assign professional and clerical staff to assist in the work of the Commission.
(g)	When a vacancy occurs in the membership of the Commission, the vacancy shall be filled by the original appointing authority employing the same criteria as used in the original appointment.
(h)	From the funds appropriated to the Department of Commerce for fiscal year 1995-96, the sum of twenty-five thousand dollars ($25,000) shall be used for the expenses of the Commission."

Requested by:   Representatives Holmes, Creech, Esposito
DELIVERY OF WARRANTS AND DISBURSEMENTS FOR NON-STATE ENTITIES
Sec. 27.4.  G.S. 143-3.2(a) reads as rewritten:
"§ 143-3.2.  Issuance of warrants upon State Treasurer; delivery of warrants and disbursements for non-State entities.
(a)	The State Controller shall have the exclusive responsibility for the issuance of all warrants for the payment of money upon the State Treasurer.  All warrants upon the State Treasurer shall be signed by the State Controller, who before issuing them shall determine the legality of payment and the correctness of the accounts.  All warrants issued for non-State entities shall be delivered by the appropriate agency to the entity's legally designated recipient by United States mail or its equivalent, including electronic funds transfer.
When the State Controller finds it expedient to do so because of a State agency's size and location, the State Controller may authorize a State agency to make expenditures through a disbursing account with the State Treasurer.  The State Controller shall authorize the Judicial Department and the General Assembly to make expenditures through such disbursing accounts.  All disbursements made to non-State entities shall be delivered by the appropriate agency to the entity's legally designated recipient by United States mail or its equivalent, including electronic funds transfer.  All deposits in these disbursing accounts shall be by the State Controller's warrant.  A copy of each voucher making withdrawals from these disbursing accounts and any supporting data required by the State Controller shall be forwarded to the Office of the State Controller monthly or as otherwise required by the State Controller.  Supporting data for a voucher making a withdrawal from one of these disbursing accounts to meet a payroll shall include the amount of the payroll and the employees whose compensation is part of the payroll.
A central payroll unit operating under the Office of the State Controller may make deposits and withdrawals directly to and from a disbursing account.  The disbursing account shall constitute a revolving fund for servicing payrolls passed through the central payroll unit.
The State Controller may use a facsimile signature machine in affixing his signature to warrants.
(b)	The State Treasurer may impose on an agency a fee of fifteen dollars ($15.00) for each check drawn against the agency's disbursing account that causes the balance in the account to be in overdraft or while the account is in overdraft.  The financial officer shall pay the fee from non-State or personal funds to the General Fund to the credit of the miscellaneous non-tax revenue account by the agency."

Requested by:  Representatives Holmes, Creech, Esposito
LOCAL HISTORICAL ORGANIZATIONS GRANTS
Sec. 27.5.  Of the funds appropriated in this act for the 1995-96 fiscal year to the Department of Cultural Resources the sum of two million dollars ($2,000,000) shall be distributed as grants-in-aid to nonprofit historical organizations, nonprofit museums, or local governmental entities on a competitive basis in accordance with administrative guidelines issued by the Secretary of the Department of Cultural Resources.  The purpose of the grants shall be to encourage, through the use of grants-in-aid, the protection, preservation, and interpretation of historic assets with local or regional significance.  Priority consideration shall be given to the local historical organization's educational objectives.  Grants shall be limited to amounts of one hundred thousand dollars ($100,000) or less.

Requested by:  Representatives Holmes, Creech, Esposito
LOCAL CULTURAL AND ARTISTIC ORGANIZATIONS GRANTS
Sec. 27.6.  Of the funds appropriated in this act for the 1995-96 fiscal year to the Department of Cultural Resources the sum of two million dollars ($2,000,000) shall be distributed as grants-in-aid to nonprofit local cultural or artistic organizations or local governmental entities on a competitive basis in accordance with administrative guidelines issued by the Secretary of the Department of Cultural Resources.  The purpose of the grants shall be to support and promote, through the use of grants-in-aid, local cultural and artistic organizations with local or regional significance.  Priority consideration shall be given to the local cultural or artistic organization's educational objectives.  Grants shall be limited to amounts of one hundred thousand dollars ($100,000) or less.

Requested by:  Representatives Holmes, Creech, Esposito 
LEGISLATIVE SPECIAL STUDIES SUBCOMMITTEE
Sec. 27.7.(a)	The General Assembly finds that:
(1)	The Government Performance audit provided the General Assembly with an opportunity to conduct in-depth analyses into the management systems, programs, and services throughout State Government.
(2)	This process gave the General Assembly increased flexibility to monitor and evaluate State government.
(3)	The experience proved beneficial and highlighted the value of having a committee, staffed by professionals, that has:
a.	Experience and versatility to conduct in-depth program evaluations of large complex State-funded programs.
b.	Flexibility to focus on a wide range of issues that are not constrained by traditional departmental or budgeting boundaries.
c.	Capacity to focus on the State's major management systems (personnel, purchasing, financial management, information systems) that traditionally are not analyzed on a systematic basis.
d.	Time to research "Best Practice" standards in governmental operations throughout the country that could benefit North Carolina.
e.	Skill to develop an Information Resource Management function that searches and maintains databases on State and local government trends and emerging issues that can be used for research.
(b)	Article 13 of Chapter 120 of the General Statutes is amended by adding the following new sections to read:
"§ 120-80.  Legislative Special Studies Subcommittee established.
There is established the Legislative Special Studies Subcommittee of the Commission.  The subcommittee shall consist of the President Pro Tempore of the Senate, Speaker of the House of Representatives, four Senators appointed by the President Pro Tempore of the Senate, and four Representatives appointed by the Speaker of the House of Representatives.  The President Pro Tempore of the Senate and the Speaker of the House of Representatives shall serve as cochairs of the Subcommittee.
"§ 120-81.  Duties and powers.
Subject to the approval of the cochairs of the Commission the Subcommittee may:
(1)	Exercise the powers and duties of the Commission under G.S. 120-76 with respect to evaluation of State agency programs.
(2)	Evaluate program issues that are not constrained by traditional departmental or budgeting boundaries.
(3)	Analyze on a systematic basis the State's major management systems.
(4)	Conduct long-term financial analyses of the General Fund and Highway Fund;
(5)	Maintain databases on State and local government trends and emerging issues.
(6)	Conduct specialized audits as directed by the General Assembly
(7)	Contract, as necessary, for consulting services needed in carrying out the duties and responsibilities of the Subcommittee."
(c) In developing a work plan for the 1995-97 biennium, the subcommittee may consider these and other topics:
(1)	Medicaid and health care costs. 
(2)	Federal, State, and local financing relationship.
(3)	State's Purchasing System.
(4)	Workers' Compensation for State Employees.
(5)	General Fund asset review.
(6)	Regulatory process.
(7)	State's personnel system.
(8)	Capital budgeting.
(9)	Highway Fund financial model.
(d) The Special Studies Subcommittee of the Commission may elect to request executive or judicial branch participation, where appropriate, in studies it selects to undertake during the biennium.
(e) There is established a Special Studies Unit to serve as staff to the Legislative Special Studies Subcommittee of the Joint Legislative Commission on Governmental Operations.  A director and staff for the Unit shall be selected by the President Pro Tempore of the Senate and the Speaker of the House of Representatives.  In addition to serving as staff to the Subcommittee, the Special Studies Unit may assist and support existing General Assembly staff in analyzing current operations and identifying alternative strategies.
(f) Of the funds appropriated in this act to the General Assembly for the 1995-97 biennium the sum of five hundred thousand dollars ($500,000) shall be allocated for the 1995-96 fiscal year and the sum of two hundred fifty thousand dollars ($250,000) shall be allocated for the 1996-97 fiscal year to implement this section.

Requested by:  Representative Creech, Holmes, Esposito, Redwine
IMPROVEMENT OF THE ADMINISTRATIVE RULES PROCESS/LEGISLATIVE OVERSIGHT/FISCAL ACCOUNTABILITY
Sec. 27.8.  LEGISLATION IMPROVING THE ADMINISTRATIVE RULES PROCESS
LEGISLATIVE OVERSIGHT
(a) Chapter 120 of the General Statutes is amended by adding a new Article to read:
"ARTICLE 12K.
"Joint Legislative Administrative Procedure Oversight Committee.
"§ 120-70.100.  Creation and membership of Joint Legislative Administrative Procedure Oversight Committee.
(a)	The Joint Legislative Administrative Procedure Oversight Committee is established. The Committee consists of 16 members as follows:
(1)	Eight members of the Senate appointed by the President Pro Tempore of the Senate, at least three of whom are members of the minority party.
(2)	Eight members of the House of Representatives appointed by the Speaker of the House of Representatives, at least three of whom are members of the minority party.
(b)	Members of the Committee shall serve a term of two years beginning on 15 January of each odd-numbered year.  Members may complete a term of service on the Committee even if they do not seek reelection or are not reelected to the General Assembly, but resignation or removal from service in the General Assembly constitutes resignation or removal from service on the Committee.  A member continues to serve until the member's successor is appointed.  A vacancy shall be filled within 30 days by the officer who made the original appointment.
"§ 120-70.101.  Purpose and powers of Committee.
The Joint Legislative Administrative Procedure Oversight Committee has the following powers and duties:
(1)	To review rules to which the Rules Review Commission has objected to determine if statutory changes are needed to enable the agency to fulfill the intent of the General Assembly.
(2)	To receive reports prepared by the Rules Review Commission containing the text and a summary of each rule approved by the Commission.
(3)	To prepare and make available to members of the General Assembly one or more notebooks that contain the administrative rules that have been approved by the Rules Review Commission and reported to the Committee.
(4)	To review State regulatory programs to determine if the programs overlap, have conflicting goals, or could be simplified and still achieve the purpose of the regulation.
(5)	To review the rule-making process to determine if the procedures for adopting rules give the public adequate notice of and information about proposed rules.
(6)	To review any other concerns about administrative law to determine if statutory changes are needed.
(7)	To report to the General Assembly at the beginning of each regular session concerning the Committee's activities and any recommendations for statutory changes.
"§ 120-70.102.  Organization of Committee.
(a)	The President Pro Tempore of the Senate and the Speaker of the House of Representatives shall each designate a cochair of the Joint Legislative Administrative Procedure Oversight Committee.  The Committee shall meet at least once a quarter and may meet at other times upon the joint call of the cochairs.
(b)	A quorum of the Committee is nine members.  No action may be taken except by a majority vote at a meeting at which a quorum is present.  While in the discharge of its official duties, the Committee has the powers of a joint committee under G.S. 120-19 and G.S. 120-19.1 through G.S. 120-19.4.
(c)	Members of the Committee receive subsistence and travel expenses as provided in G.S. 120-3.1.  The Committee may contract for consultants or hire employees in accordance with G.S. 120-32.02.  The Committee may meet in the Legislative Building or the Legislative Office Building upon the approval of the Legislative Services Commission. The Legislative Services Commission, through the Legislative Administrative Officer, shall assign professional staff to assist the Committee in its work.  Upon the direction of the Legislative Services Commission, the Supervisors of Clerks of the Senate and of the House of Representatives shall assign clerical staff to the Committee.  The expenses for clerical employees shall be paid by the Committee.
"§ 120-70.103.  Exercise of duty to maintain a notebook of approved rules.
With the approval of the Legislative Services Commission, the Joint Legislative Administrative Procedure Oversight Committee may delegate to the Legislative Library the duty to maintain a notebook containing rules approved by the Rules Review Commission.  Whether the notebook is maintained by the Committee or by the Legislative Library, rules shall be filed in the notebook in accordance with the numbering system used in the North Carolina Administrative Code."
AGENCY FISCAL NOTE REQUIRED BEFORE PUBLISHING PROPOSED
PERMANENT RULE CHANGE OF SUBSTANTIAL ECONOMIC IMPACT
(b)	G.S. 150B-21.4 is amended by adding two new subsections to read:
"( b1)	Substantial Economic Impact. – Before an agency publishes in the North Carolina Register the proposed text of a permanent rule change that would have a substantial economic impact and that is not identical to a federal regulation that the agency is required to adopt, the agency shall obtain a fiscal note for the proposed rule change from the Office of State Budget and Management or prepare a fiscal note for the proposed rule change and have the note approved by that Office.  If an agency requests the Office of State Budget and Management to prepare a fiscal note for a proposed rule change, that Office shall prepare the note within 90 days after receiving a written request for the note.  If the Office of State Budget and Management fails to prepare a fiscal note within this time period, the agency proposing the rule change may prepare a fiscal note.  A fiscal note prepared in this circumstance does not require approval of the Office of State Budget and Management.
If an agency prepares the required fiscal note, the agency shall submit the note to the Office of State Budget and Management for review.  The Office of State Budget and Management shall review the fiscal note within 14 days after it is submitted and either approve the note or inform the agency in writing of the reasons why it does not approve the fiscal note.  After addressing these reasons, the agency may submit the revised fiscal note to that Office for its review.  If an agency is not sure whether a proposed rule change would have a substantial economic impact, the agency may ask the Office of State Budget and Management to determine whether the proposed rule change has a substantial economic impact.
As used in this subsection, the term 'substantial economic impact' means an aggregate financial impact on all persons affected of at least five million dollars ($5,000,000) in a 12-month period.
(b2)	Content. –  A fiscal note required by subsection (b1) of this section shall contain the following:
(1)	A description of the persons who would be affected by the proposed rule change.
(2)	A description of the types of expenditures that persons affected by the proposed rule change would have to make to comply with the rule and an estimate of these expenditures.
(3)	A description of the purpose and benefits of the proposed rule change.
(4)	An explanation of how the estimate of expenditures was computed."
PROCEDURES FOR ADOPTING RULES
(c)	G.S. 150B-21.1 reads as rewritten:
"§ 150B-21.1.  Procedure for adopting a temporary rule.
(a)	Adoption. – An agency may adopt a temporary rule without prior notice or hearing or upon any abbreviated notice or hearing the agency finds practical when it finds that adherence to the notice and hearing requirements of this Part would be contrary to the public interest and that the immediate adoption of the rule is required by one or more of the following:
(1)	A serious and unforeseen threat to the public health, safety, or welfare.
(2)	The effective date of a recent act of the General Assembly or the United States Congress.
(3)	A recent change in federal or State budgetary policy.
(4)	A federal regulation.
(5)	A court order.
(6)	The need for the rule to become effective the same date as the State Medical Facilities Plan approved by the Governor, if the rule addresses a matter included in the State Medical Facilities Plan.
An agency shall prepare a written statement of its findings of need for a temporary rule. The statement shall be signed by the head of the agency adopting the rule.
(b)	Review. – When an agency adopts a temporary rule it shall submit the rule and the agency's written statement of its findings of the need for the rule to the Codifier of Rules. Within one business day after an agency submits a temporary rule, the Codifier of Rules shall review the agency's written statement of findings of need for the rule to determine whether the statement of need meets the criteria listed in subsection (a). In reviewing the statement, the Codifier of Rules may consider any information submitted by the agency or another person. If the Codifier of Rules finds that the statement meets the criteria, the Codifier of Rules shall notify the head of the agency and enter the rule in the North Carolina Administrative Code.
If the Codifier of Rules finds that the statement does not meet the criteria, the Codifier of Rules shall immediately notify the head of the agency. The agency may supplement its statement of need with additional findings or submit a new statement. If the agency provides additional findings or submits a new statement, the Codifier of Rules shall review the additional findings or new statement within one business day after the agency submits the additional findings or new statement. If the Codifier of Rules again finds that the statement does not meet the criteria listed in subsection (a), the Codifier of Rules shall immediately notify the head of the agency.
If an agency decides not to provide additional findings or submit a new statement when notified by the Codifier of Rules that the agency's findings of need for a rule do not meet the required criteria, the agency shall notify the Codifier of Rules of its decision. The Codifier of Rules shall then enter the rule in the North Carolina Administrative Code on the sixth business day after receiving notice of the agency's decision.
(c)	Standing. – A person aggrieved by a temporary rule adopted by an agency may file an action for declaratory judgment in Wake County Superior Court pursuant to Article 26 of Chapter 1 of the General Statutes. In the action, the court shall determine whether the agency's written statement of findings of need for the rule meets the criteria listed in subsection (a) and whether the rule meets the standards in G.S. 150B-21.9 that apply to review of a permanent rule. The court shall not grant an ex parte temporary restraining order.
Filing a petition for rule making or a request for a declaratory ruling with the agency that adopted the rule is not a prerequisite to filing an action under this subsection. A person who files an action for declaratory judgment under this subsection shall serve a copy of the complaint on the agency that adopted the rule being contested, the Codifier of Rules, and the Commission.
(d)	Effective Date and Expiration. – A temporary rule becomes effective on the date specified in G.S. 150B-21.3. A temporary rule expires on the earliest of the following dates:
(1)	The date specified in the rule.
(2)	The effective date of the permanent rule adopted to replace the temporary rule, if the Commission approves the permanent rule.
(3)	The date the Commission returns to an agency a permanent rule the agency adopted to replace the temporary rule, if the Commission objects to the permanent rule.
(e)	Publication. – When the Codifier of Rules enters a temporary rule in the North Carolina Administrative Code, the Codifier shall publish the rule in the North Carolina Register.  Publication of a temporary rule in the North Carolina Register serves as a notice of rule-making proceedings for a permanent rule that does not differ substantially from the published temporary rule."
(d) G.S. 150B-21.2 reads as rewritten:
"§ 150B-21.2.  Procedure for adopting a permanent rule.
(a)	Steps. – Before an agency adopts a permanent rule, it shall take the following actions:
(1)	Publish a notice of rule-making proceedings in the North Carolina Register, unless the proposed rule is substantially the same as a temporary rule published in the North Carolina Register.
(2)	When required by G.S. 150B-21.4, prepare or obtain a fiscal note for the proposed rule.
(3)	Publish the text of the proposed rule in the North Carolina Register.
(4)	When required by subsection (e) of this section, hold a public hearing on the proposed rule after publication of the proposed text of the rule.
(5)	Accept oral or written comments on the proposed rule as required by subsection (f) of this section.
								(b)	Notice of Rule-Making Proceedings. – A notice of rule-making proceedings published in the North Carolina Register shall include all of the following:
(1)	A statement of the subject matter of the proposed rule making.
(2)	A short explanation of the reason for the proposed action.
(3)	A citation to the law that gives the agency the authority to adopt a rule on the subject matter of the proposed rule making.
(4)	The person to whom questions or written comments may be submitted on the subject matter of the proposed rule making.
Publication in the North Carolina Register of an agency's rule-making agenda satisfies the requirements of this subsection if the agenda includes the information required by this subsection.
(c)	Text After Notice of Rule-Making Proceedings. – A notice of the proposed text of a rule shall include all of the following:
(1)	The text of the proposed rule.
(2)	A short explanation of the reason for the proposed rule.
(3)	A citation to the law that gives the agency the authority to adopt the rule.
(4)	The proposed effective date of the rule.
(5)	The date, time, and place of any public hearing scheduled on the rule.
(6)	Instructions on how a person may demand a public hearing on a proposed rule if the notice does not schedule a public hearing on the proposed rule and subsection (e) of this section requires the agency to hold a public hearing on the proposed rule when requested to do so.
(7)	The period of time during which and the person to whom written comments may be submitted on the proposed rule.
(8)	If a fiscal note has been prepared for the rule, a statement that a copy of the fiscal note can be obtained from the agency.
An agency shall not publish the proposed text of a rule until at least 60 days after the date the notice of rule-making proceedings for the proposed rule was published in the North Carolina Register.
	(d)	Mailing List. – An agency shall maintain a mailing list of persons who have requested notice of rule making.  When an agency publishes in the North Carolina Register a notice of rule-making proceedings or the text of a proposed rule, it shall mail a copy of the notice or text to each person on the mailing list who has requested notice of rule-making proceedings on the subject matter described in the notice or the rule affected.  An agency may charge an annual fee to each person on the agency's mailing list to cover copying and mailing costs.
	(e) Hearing. – An agency shall hold a public hearing on a rule it proposes to adopt 
		if the agency publishes the text of the
proposed rule in the North Carolina Register and all the following apply:
(1)	The notice of rule-making proceedings does not schedule a public hearing on the proposed rule.
(2)	The agency receives a written request for a public hearing on the proposed rule within 15 days after the notice of rule-making proceedings is published.
	(3)	The proposed text is not a changed version of proposed text the agency previously published in the course of rule-making proceedings but did not adopt.
An agency may hold a public hearing on a proposed rule in other circumstances.  When an agency is required to hold a public hearing on a proposed rule or decides to hold a public hearing on a proposed rule when it is not required to do so, the agency shall publish in the North Carolina Register a notice of the date, time, and place of the public hearing.  The hearing date of a public hearing held after the agency publishes notice of the hearing in the North Carolina Register shall be at least 15 days after the date the notice is published.
		(f)	Comments. – An agency shall accept comments on a notice of proposed rule-making proceedings published in the North Carolina Register until the text of the proposed rule that results from the notice is published. An agency shall accept comments on the text of a proposed rule that is published in the North Carolina Register and that requires a fiscal note under G.S. 150B-21.4(b1) for at least 60 days after the text is published or until the date of any public hearing held on the proposed rule, whichever is longer.  An agency shall accept comments on the text of any other proposed rule published in the North Carolina Register for at least 30 days after the text is published or until the date of any public hearing held on the proposed rule, whichever is longer.  An agency shall consider fully all written and oral comments received.
	(g)	Adoption. – An agency shall not adopt a rule until the time for commenting on the proposed text of the rule has elapsed and shall not adopt a rule if more than 12 months have elapsed since the end of the time for commenting on the proposed text of the rule.  An agency shall not adopt a rule that differs substantially from the text of a proposed rule published in the North Carolina Register unless the agency publishes the text of the proposed different rule in the North Carolina Register and accepts comments on the proposed different rule for the time set in subsection (f) of this section.
An adopted rule differs substantially from a proposed rule if it does one or more of the following:
(1)	Affects the interests of persons who, based on either the notice of rule-making proceedings or the proposed text of the rule published in the North Carolina Register, could not reasonably have determined that the rule would affect their interests.
(2)	Addresses a subject matter or an issue that is not addressed in the proposed text of the rule.
(3)	Produces an effect that could not reasonably have been expected based on the proposed text of the rule.
When an agency adopts a rule, it shall not take subsequent action on the rule without following the procedures in this Part.
	(h)	Explanation. – An agency shall issue a concise written statement explaining why the agency adopted a rule if, within 30 days after the agency adopts the rule, a person asks the agency to do so.  The explanation shall state the principal reasons for and against adopting the rule and shall discuss why the agency rejected any arguments made or considerations urged against the adoption of the rule.
	(i)	Record. – An agency shall keep a record of a rule-making proceeding.  The record shall include all written comments received, a transcript or recording of any public hearing held on the rule, and any written explanation made by the agency for adopting the rule."
RULES REVIEW COMMISSION ROLE STRENGTHENED
(e)  G.S. 150B-21.3 reads as rewritten:
"§ 150B-21.3.  Effective date of rules.
(a)	Temporary Rule. – A temporary rule becomes effective on the date the Codifier of Rules enters the rule in the North Carolina Administrative Code.
(b)	Permanent Rule. – A permanent rule approved by the Commission becomes effective on the thirty-first legislative day of the next regular session of the General Assembly that begins at least 25 days after the date the Commission approved the rule, unless a later effective date applies under this subsection. If a bill that specifically disapproves the rule is introduced in either house of the General Assembly before the thirty-first legislative day of that session, the rule becomes effective on the earlier of either the day an unfavorable final action is taken on the bill or the day that session of the General Assembly adjourns without ratifying a bill that specifically disapproves the rule.  If the agency adopting the rule specifies a later effective date than the date that would otherwise apply under this subsection, the later date applies.  A permanent rule that is not approved by the Commission or that is specifically disapproved by a bill ratified by the General Assembly before it becomes effective does not become effective.
A bill specifically disapproves a rule if it contains a provision that refers to the rule by appropriate North Carolina Administrative Code citation and states that the rule is disapproved.  Notwithstanding any rule of either house of the General Assembly, any member of the General Assembly may introduce a bill during the first 30 legislative days of any regular session to disapprove a rule that has been approved by the Commission and that either has not become effective or has become effective by executive order under subsection (c)	of this section.
(c)	Executive Order Exception. – The Governor may, by executive order, make effective a permanent rule that has been approved by the Commission and has not become effective under subsection (b) of this section upon finding that it is necessary that the rule become effective in order to protect public health, safety, or welfare.  A rule made effective by executive order becomes effective on the date the order is issued or at a later date specified in the order.   When the Codifier of Rules enters in the North Carolina Administrative Code a rule made effective by executive order, the entry shall reflect this action.
A rule that is made effective by executive order remains in effect unless it is specifically disapproved by the General Assembly in a bill ratified on or before the day of adjournment of the regular session of the General Assembly that begins at least 25 days after the date the executive order is issued.  A rule that is made effective by executive order and that is specifically disapproved by a bill ratified by the General Assembly is repealed as of the date specified in the bill.  If a rule that is made effective by executive order is not specifically disapproved by a bill ratified by the General Assembly within the time set by this subsection, the Codifier of Rules shall note this in the North Carolina Administrative Code.
(d)	Legislative Day and Day of Adjournment. – As used in this section:
(1)	A 'legislative day' is a day on which either house of the General Assembly convenes in regular session.
(2)	The 'day of adjournment' of a regular session held in an odd-numbered year is the day the General Assembly adjourns by joint resolution for more than 10 days.
(3)	The 'day of adjournment' of a regular session held in an even-numbered year is the day the General Assembly adjourns sine die.
	(e)	OSHA Standard. – A permanent rule concerning an occupational safety and health standard that is adopted by the Occupational Safety and Health Division of the Department of Labor and is identical to a federal regulation promulgated by the Secretary of the United States Department of Labor becomes effective on the date the Division delivers the rule to the Codifier of Rules, unless the Division specifies a later effective date.  If the Division specifies a later effective date, the rule becomes effective on that date."
(e1) G.S. 150B-21.9(a) reads as rewritten:
"(a)	Standards. – The Commission shall determine whether a rule meets all of the following criteria:
(1)	It is within the authority delegated to the agency by the General Assembly.
(2)	It is clear and unambiguous.
(3)	It is reasonably necessary to fulfill a duty delegated to the agency by the General Assembly, when considered in light of the cumulative effect of all rules adopted by the agency related to the specific purpose for which the rule is proposed and the legislative intent of the General Assembly in delegating the duty.
The Commission may determine if a rule submitted to it was adopted in accordance with Part 2 of this Article.  The Commission may ask the Office of State Budget and Management to determine if a rule has a substantial economic impact and is therefore required to have a fiscal note.  The Commission shall ask the Office of State Budget and Management to make this determination if a fiscal note was not prepared for a rule and the Commission receives a written request for a determination of whether the rule has a substantial economic impact.
The Commission shall notify the agency that adopted the rule if it determines that a rule was not adopted in accordance with Part 2 of this Article and shall return the rule to the agency.  Entry of a rule in the North Carolina Administrative Code after review by the Commission is conclusive evidence that the rule was adopted in accordance with Part 2 of this Article."
(e2) G.S. 150B-21.11 reads as rewritten:
"§ 150B-21.11.  Procedure when Commission approves permanent rule.
When the Commission approves a permanent rule, it shall notify the agency that adopted the rule of the Commission's approval, deliver the approved rule to the Codifier of Rules, and include the text of the approved rule and a summary of the rule in its next report to the Joint Legislative Administrative Procedure Oversight Committee.  "
(e3) G.S. 150B-21.12 reads as rewritten:
"§ 150B-21.12.  Procedure when Commission objects to a permanent rule.
(a)	Action. – When the Commission objects to a permanent rule, it shall send the agency that adopted the rule a written statement of the objection and the reason for the objection.  The agency that adopted the rule shall take one of the following actions:
(1)	Change the rule to satisfy the Commission's objection and submit the revised rule to the Commission.
(2)	Submit a written response to the Commission indicating that the agency has decided not to change the rule.
(b)	Time Limit. –  An agency that is not a board or commission shall take one of the actions listed in subsection (a) of this section within 30 days after receiving the Commission's statement of objection.  A board or commission shall take one of these actions within 30 days after receiving the Commission's statement of objection or within 10 days after the board or commission's next regularly scheduled meeting, whichever comes later.
(c)	Changes. – When an agency changes a rule in response to an objection by the Commission, the Commission shall determine whether the change satisfies the Commission's objection.  If it does, the Commission shall approve the rule.  If it does not, the Commission shall send the agency a written statement of the Commission's continued objection and the reason for the continued objection.
(d)	Return of Rule. – A rule to which the Commission has objected remains under review by the Commission until the agency that adopted the rule decides not to satisfy the Commission's objection and makes a written request to the Commission to return the rule to the agency.  When the Commission returns a rule to which it has objected, it shall notify the Codifier of Rules of its action and shall send a copy of the record of the Commission's review of the rule to the Joint Legislative Administrative Procedure Oversight Committee in its next report to that Committee.  The record of review consists of the rule, the Commission's letter of objection to the rule, the agency's written response to the Commission's letter, and any other relevant documents before the Commission when it decided to object to the rule.
	."
(e4) G.S. 150B-21.15 is repealed.  This subsection does not abate any action or appeal brought under G.S. 150B-21.15 prior to the effective date of this section.
RULES REVIEW COMMISSION'S MONTHLY REPORT TO JOINT
LEGISLATIVE ADMINISTRATIVE PROCEDURE OVERSIGHT COMMITTEE
(f) Part 3 of Article 2B of Chapter 150B of the General Statutes is amended by adding a new section to read:
"§ 150B-21.16.  Report to Joint Legislative Administrative Procedure Oversight Committee.
The Commission shall make monthly reports to the Joint Legislative Administrative Procedure Oversight Committee. The reports are due by the last day of the month.  A report shall include the rules approved by the Commission at its meeting held in the month in which the report is due and the rules the Commission returned to agencies during that month after the Commission objected to the rule.  A report shall include any other information requested by the Joint Legislative Administrative Procedure Oversight Committee.  When the Commission sends a report to the Joint Legislative Administrative Procedure Oversight Committee, the Commission shall send a copy of the report to the Codifier of Rules."
PUBLISHING AND CODIFYING OF RULES
(g) G.S. 150B-21.17(a) reads as rewritten:
"(a)	Content. – The Codifier of Rules shall publish the North Carolina Register.  The North Carolina Register shall be published at least two times a month and shall contain the following:
(1)	Temporary rules entered in the North Carolina Administrative Code.
(1a)	Notices of rule-making proceedings, the text of proposed rules, and the text of permanent rules approved by the Commission.
(2)	Notices of receipt of a petition for municipal incorporation, as required by G.S. 120-165.
(3)	Executive orders of the Governor.
(4)	Final decision letters from the United States Attorney General concerning changes in laws that affect voting in a jurisdiction subject to section 5 of the Voting Rights Act of 1965, as required by G.S. 120-30.9H.
(5)	Orders of the Tax Review Board issued under G.S. 105-241.2.
(6)	Other information the Codifier determines to be helpful to the public."
(g1) G.S. 150B-21.19 reads as rewritten:
"§ 150B-21.19.  Requirements for including rule in Code.
To be acceptable for inclusion in the North Carolina Administrative Code, a rule shall:
(1)	Cite the law under which the rule is adopted.
(2)	Be signed by the head of the agency or the rule-making coordinator for the agency that adopted the rule.
(3)	Be in the physical form specified by the Codifier of Rules.
(4)	Have been approved by the Commission, if the rule is a permanent rule."
CHANGES IN EXEMPTIONS FROM RULE MAKING
(h) G.S. 150B-1(d) reads as rewritten:
"(d)	Exemptions from Rule Making. – Article 2A of this Chapter does not apply to the following:
(1)	The Commission.
(2)	The North Carolina Low-Level Radioactive Waste Management Authority in administering the provisions of G.S. 104G-10 and G.S. 104G-11.
(3)	The North Carolina Hazardous Waste Management Commission in administering the provisions of G.S. 130B-13 and G.S. 130B-14.
(4)	The Department of Revenue, with respect to the notice and hearing requirements contained in Part 2 of Article 2A.
(5)	The North Carolina Global TransPark Authority with respect to the acquisition, construction, operation, or use, including fees or charges, of any portion of a cargo airport complex.
(6)	The Department of Correction, with respect to matters relating solely to persons in its custody or under its supervision, including prisoners, probationers, and parolees."
CONFORMING CHANGES
(i) [Employment Security Commission] G.S. 96-4(b) reads as rewritten:
"(b)	Regulations and General and Special Rules. – General and special rules may be adopted, amended, or rescinded by the Commission only after public hearing or opportunity to be heard thereon, of which proper notice has been given by mail to the last known address in cases of special rules, or by publication as herein provided, and by one publication as herein provided as to general rules.  The Commission shall not take final action on a general or special rule that has a substantial economic impact, as defined in G.S. 150B-21.4(b1), until 60 days after the Office of State Budget and Management has prepared a fiscal note for the rule.  General rules shall become effective 10 days after filing with the Secretary of State and publication in one or more newspapers of general circulation in this State.  Special rules shall become effective 10 days after notification to or mailing to the last known address of the individuals or concerns affected thereby.  Before the adoption, amendment, or repeal of any permanent regulation, the Commission shall publish notice of the public hearing and offer any person an opportunity to present data, opinions, and arguments.  The notice shall be published in one or more newspapers of general circulation in this State at least 10 days before the public hearing and at least 20 days prior to the proposed effective date of the proposed permanent regulation.  The published notice of public hearing shall include the time and place of the public hearing; a statement of the manner in which data, opinions, and arguments may be submitted to or before the Commission; a statement of the terms or substance of the proposed regulation; a statement of whether a fiscal note has been or will be prepared for the proposed regulation; and the proposed effective date of the regulation.  Any permanent regulation adopted after following the above procedure shall become effective on its effective date and after it is published in the manner provided for in subsection (c) as well as such additional publication as the Commission deems appropriate.  Additionally, the Commission shall provide notice of adoption by mail to the last known addresses of all persons who submitted data, opinions, or arguments to the Commission with respect to the regulation.  Temporary regulations may be adopted, amended, or rescinded by the Commission and shall become effective in the manner and at the time prescribed by the Commission but shall remain in force for no longer than 120 days."
(i2) [Industrial Commission] G.S. 97-80(a) reads as rewritten:
"(a)	The Commission may make rules, not inconsistent with this Article, for carrying out the provisions of this Article.  The Commission shall request the Office of State Budget and Management to prepare a fiscal note for a proposed new or amended rule that has a substantial economic impact, as defined in G.S. 150B-21.4(b1).  The Commission shall not take final action on a proposed rule change that has a substantial economic impact until at least 60 days after the fiscal note has been prepared.
Processes, procedure, and discovery under this Article shall be as summary and simple as reasonably may be."
(i3) [Department of Revenue]  G.S. 105-262 reads as rewritten:
"§ 105-262.  Rules.
(a)	The Secretary of Revenue may adopt rules needed to administer a tax collected by the Secretary or to fulfill another duty delegated to the Secretary.  The Tax Review Board shall review a new rule or a change to a rule before it is filed in the North Carolina Administrative Code.
(b)	The Secretary shall ask the Office of State Budget and Management to prepare a fiscal note for a proposed new rule or a proposed change to a rule that has a substantial economic impact, as defined in G.S. 150B-21.4(b1).  The Secretary shall not take final action on a proposed rule change that has a substantial economic impact until at least 60 days after the fiscal note has been prepared."
(i4) G.S.143-214.7(c) reads as rewritten:
  	" (c)	
			Chapter 150B of the General Statutes governs adoption of rules by the Commission."
(i5) [Building Code Council] G.S. 143-138(a) reads as rewritten:
"(a)	Preparation and Adoption. – The Building Code Council is hereby empowered to prepare and adopt, in accordance with the provisions of this Article, a North Carolina State Building Code.  Prior to the adoption of this Code, or any part thereof, the Council shall hold at least one public hearing.  A notice of such public hearing shall be given once a week for two successive calendar weeks in a newspaper published in Raleigh, said notice to be published the first time not less than 15 days prior to the date fixed for said hearing.  The Council may hold such other public hearings and give such other notice as it may deem necessary.
The Council shall request the Office of State Budget and Management to prepare a fiscal note for a proposed Code change that has a substantial economic impact, as defined in G.S. 150B-21.4(b1).  The Council shall not take final action on a proposed Code change that has a substantial economic impact until at least 60 days after the fiscal note has been prepared."
(i6)  G.S. 143-215(c), 143-215(d), 143-215.107(f), and 143-215.107(g) are repealed.
(i7)  Notwithstanding G.S. 120-70.100(b), as enacted by subsection (a) of this section, the terms of initial members of the Joint Legislative Administrative Procedure Oversight Committee shall begin upon appointment and shall end on January 15, 1997.
(j)  This section becomes effective October 1, 1995, and applies to all rules for which a notice of rule making is published in the North Carolina Register on or after that date and to rule and Building Code changes that are initiated on or after that date and that are not subject to the rule-making procedures set out in Article 2A of Chapter 150B of the General Statutes.

Requested by:  Representatives Justus, Thompson
WESTERN JUSTICE ACADEMY
Sec. 27.9.  Of the funds appropriated to the Department of Justice in this act for the 1995-97 biennium, the sum of one million four hundred seventy thousand dollars ($1,470,000) shall be used for design and planning and the purchase of real property for the Western Justice Academy at a site to be located at Edneyville in Henderson County.

Requested by:  Representatives Justus, Thompson
CONSOLIDATION OF PRISON FACILITIES/PRISON CONSTRUCTION
Sec. 27.10. (a)	In order to continue the recommendations of the Government Performance Audit Committee pertaining to the consolidation of smaller prison units in Western North Carolina into a lesser number of facilities, the Department of Correction shall develop and implement plans to close Avery Correctional Center, Watauga Correctional Center, and Yancey Correctional Center and replace them with a facility to be constructed at a site in Avery and Mitchell Counties.
(b)	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 prison facilities in order to implement the providing of prison facilities under the provisions of this act.
The facilities authorized under this act shall be constructed in accordance with the provisions of general law applicable to the construction of State facilities.  If the Secretary of Administration, after consultation with the Secretary of Correction, finds that the delivery of prison 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, 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, the Chairs of the Joint Legislative Corrections Oversight Committee, 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 prison facilities; (iii) the way in which the Department anticipates the exemption will expedite the delivery of prison facilities; and (iv) a brief summary of the proposed contract for the project which is to be exempted.
The Office of State Construction of the Department of Administration shall have a verifiable ten percent (10%) goal for participation by minority and women-owned businesses.  All contracts for the design, construction, or demolition of prison facilities shall include a penalty for failure to complete the work by a specified date.
The Office of State Construction of the Department of Administration shall involve the Department of Correction in all aspects of the projects to the extent that such involvement relates to the Department's program needs and to its responsibility for the care of the prison population.
(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, the Joint Legislative Commission on Governmental Operations, the Chairs of the Joint Legislative Corrections Oversight Committee, and the Fiscal Research Division as to any changes in projects and allocations made under this act.  The report shall include any changes in the projects and allocations made pursuant to this act, information on which contractors have been selected, what contracts have been entered into, the projected and actual occupancy dates of facilities contracted for, the number of beds to be constructed on each project, the location of each project, and the projected and actual cost of each project.
The Department of Insurance and the Department of Correction shall report quarterly to the Joint Legislative Commission on Governmental Operations on their involvement in the prison construction program.

Requested by:  Representatives Gardner, Hayes
DETENTION CENTER CAPITAL FUNDING  
Sec. 27.11.  Of the funds for capital improvements appropriated to the Division of Youth Services, Department of Human Resources, in this act, the sum of two hundred forty-eight thousand dollars ($248,000) shall be used to begin to plan, site select, build, or renovate a single, centrally located detention center for boundovers.

Requested by:   Representatives Mitchell, Weatherly
WATER RESOURCES DEVELOPMENT PROJECTS FUNDS
Sec. 27.12.  (a)	Of the funds appropriated in this act to the Department of Environment, Health, and Natural Resources for the 1995-96 fiscal year, the sum of one million eight hundred sixty-five thousand dollars ($1,865,000) shall be used for water resources development projects and the sum of two hundred thousand dollars ($200,000) shall be used for small watershed projects.  The Department shall allocate funds for the following projects whose estimated costs are as indicated:
(1)	Wilmington Harbor	$374,000
	Deepening Study

(2)	Jordan Lake Water Supply	 130,000
	Repayment

(3)	Wilmington Harbor	 500,000
	38-ft. Navigation
	Maintenance Dredging

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

(5)	Rollinson Channel	 160,000
	Maintenance, Dare County

(6)	Wilmington Harbor Channel	  72,000
	Widening

(7)	State-Local Projects	 199,000

(8)	Repayment to New Hanover	 130,000
	County Spoil Disposal Area

(9)	Dare County Beaches 	100,000
	Feasibility Study

(10)	Planning Assistance to	  50,000
	Communities

(11)	Limestone Creek Watershed Project	  40,000
	Duplin County

(12)	Deep Creek Watershed Project	 160,000
	Yadkin County

Total		$2,065,000

(b)	Where the actual costs are different from the estimated costs under subsection (a) of this section, the Department may adjust the allocations among projects as needed.  If any projects listed in subsection (a) of this section are delayed and the budgeted State funds cannot be used during the 1995-96 fiscal year, or if the projects listed in subsection (a) of this section are accomplished at a lower cost, the Department may use the resulting fund availability to fund any of the following:
(1)	Corps of Engineers project feasibility studies.
(2)	Corps of Engineers projects whose schedules have advanced and require State matching funds in fiscal year 1995-96.
(3)	State-local Water Resources Development Projects.
(4)	Soil Conservation Projects whose schedules have advanced and require State matching funds in fiscal year 1995-96.
Funds not expended or encumbered for these purposes shall revert to the General Fund at the end of the 1996-97 fiscal year.
(c)	The Department shall make quarterly reports on the use of these funds to the Joint Legislative Commission on Governmental Operations, the Fiscal Research Division, and the Office of State Budget and Management.  Each report shall include all of the following:
(1)	All projects listed in this section.
(2)	The estimated cost of each project.
(3)	The date that work on each project began or is expected to begin.
(4)	The date that work on each project was completed or is expected to be completed.
(5)	The actual cost of each project.
The quarterly reports shall also show those projects advanced in schedule, those projects delayed in schedule, and an estimate of the amount of funds expected to revert to the General Fund.

PART 28.  GENERAL CAPITAL AND MISCELLANEOUS BUDGET PROVISIONS

Requested by:  Representatives Holmes, Creech, Esposito
PROCEDURES FOR DISBURSEMENT
Sec. 28.  The appropriations made by the 1995 General Assembly for capital improvements shall be disbursed for the purposes provided by this act.  Expenditure of funds shall not be made by any State department, institution, or agency, until an allotment has been approved by the Governor as Director of the Budget.  The allotment shall be approved only after full compliance with the Executive Budget Act, Article 1 of Chapter 143 of the General Statutes.  Prior to the award of construction contracts for projects to be financed in whole or in part with self-liquidating appropriations, the Director of the Budget shall approve the elements of the method of financing of those projects including the source of funds, interest rate, and liquidation period.  Provided, however, that if the Director of the Budget approves the method of financing a project, the Director shall report that action to the Joint Legislative Commission on Governmental Operations at its next meeting.
Where direct capital improvement appropriations include the purpose of furnishing fixed and movable equipment for any project, those funds for equipment shall not be subject to transfer into construction accounts except as authorized by the Director of the Budget.  The expenditure of funds for fixed and movable equipment and furnishings shall be reviewed and approved by the Director of the Budget prior to commitment of funds.
Capital improvement projects authorized by the 1995 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.

Requested by:  Representatives Holmes, Creech, Esposito
RESERVE FOR ADVANCE PLANNING
Sec. 28.1.  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 Holmes, Creech, Esposito
ENCUMBERED APPROPRIATIONS AND PROJECT RESERVE FUND
Sec. 28.2.  When each capital improvement project appropriated by the 1993 General Assembly, other than those projects under the Board of Governors of The University of North Carolina, is placed under a construction contract, direct appropriations shall be encumbered to include all costs for construction, design, investigation, administration, movable equipment, and a reasonable contingency.  Unencumbered direct appropriations remaining in the project budget shall be placed in a project reserve fund credited to the Office of State Budget and Management.  Funds in the project reserve may be used for emergency repair and renovation projects at State facilities with the approval of the Director of the Budget.  The project reserve fund may be used, at the discretion of the Director of the Budget, to allow for award of contracts where bids exceed appropriated funds, if those projects supplemented were designed within the scope intended by the applicable appropriation or any authorized change in it, and if, in the opinion of the Director of the Budget, all means to award contracts within the appropriation were reasonably attempted.  At the discretion of the Director of the Budget, any balances in the project reserve fund shall revert to the original source.

Requested by:  Representatives Holmes, Creech, Esposito
PROJECT COST INCREASE
Sec. 28.3.  Upon the request of the administration of a State agency, department, or institution, the Director of the Budget may, when in the Director's opinion it is in the best interest of the State to do so, increase the cost of a capital improvement project.  Provided, however, that if the Director of the Budget increases the cost of a project, the Director shall report that action to the Joint Legislative Commission on Governmental Operations at its next meeting.  The increase may be funded from gifts, federal or private grants, special fund receipts, excess patient receipts above those budgeted at University of North Carolina Hospitals at Chapel Hill, or direct capital improvement appropriations to that department or institution.

Requested by:  Representatives Holmes, Creech, Esposito
NEW PROJECT AUTHORIZATION
Sec. 28.4.  Upon the request of the administration of any State agency, department, or institution, the Governor may authorize the construction of a capital improvement project not specifically authorized by the General Assembly if such project is to be funded by gifts, federal or private grants, special fund receipts, excess patient receipts above those budgeted at University of North Carolina Hospitals at Chapel Hill, or self-liquidating indebtedness.  Provided, however, that if the Director of the Budget authorizes the construction of such a capital improvement project, the Director shall report that action to the Joint Legislative Commission on Governmental Operations at its next meeting.

Requested by:  Representatives Holmes, Creech, Esposito
ADVANCE PLANNING OF CAPITAL IMPROVEMENT PROJECTS
Sec. 28.5.  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 shall not be utilized by the Board of Governors of The University of North Carolina or the State Board of Community Colleges.

Requested by:   Representatives Holmes, Creech, Esposito
APPROPRIATIONS LIMITS/REVERSION OR LAPSE
Sec. 28.6.  Except as permitted in previous sections of this act, the appropriations for capital improvements made by the 1993 General Assembly may be expended only for specific projects set out by the 1993 General Assembly and for no other purpose.  Construction of all capital improvement projects enumerated by the 1993 General Assembly shall be commenced, or self-liquidating indebtedness with respect to them shall be incurred, within 12 months following the first day of the fiscal year in which the funds are available.  If construction contracts on those projects have not been awarded or self-liquidating indebtedness has not been incurred within that period, the direct appropriation for those projects shall revert to the original source, and the self-liquidating appropriation shall lapse; except that direct appropriations may be placed in a reserve fund as authorized in this act.  This deadline with respect to both direct and self-liquidating appropriations may be extended with the approval of the Director of the Budget up to an additional 12 months if circumstances and conditions warrant such extension.

Requested by:  Representatives Holmes, Creech, Esposito
EXECUTIVE BUDGET ACT APPLIES
Sec. 28.7.  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 Holmes, Creech, Esposito
COMMITTEE REPORT
Sec. 28.8.  (a)	The House Appropriations Committee Report on Expansion Budget/Capital Budget, dated June 29, 1995, which was distributed in the Senate and House of Representatives and used to explain this act, shall indicate action by the General Assembly on this act and shall therefore be used to construe this act, as provided in G.S. 143-15 of the Executive Budget Act, and for these purposes shall be considered a part of this act.
(b)	The budget enacted by the General Assembly for the maintenance of the various departments, institutions, and other spending agencies of the State for the 1995-97 fiscal biennium is a line item budget, in accordance with the Budget Code Structure and the State Accounting System Uniform Chart of Accounts set out in the Administrative Policies and Procedures Manual of the Office of the State Controller.  This budget includes the appropriations made from all sources including the General Fund, Highway Fund, special funds, cash balances, federal receipts, and departmental receipts.
The General Assembly amended the itemized budget requests submitted to the General Assembly by the Director of the Budget and the Advisory Budget Commission, in accordance with the steps that follow, and the line item detail in the budget enacted by the General Assembly may be derived accordingly:
(1)	Negative reserves set out in the submitted budget were deleted and the totals were increased accordingly.
(2)	The base budget was adjusted in accordance with the base budget cuts and additions that were set out in the Senate and House Conference Report on the Continuation Budget, dated June 21, 1995.
(3)	Transfers of funds supporting programs were made in accordance with the House and Senate Conference Report on the Continuation Budget, dated June 21, 1995.
(4)	The expansion budget items were added in accordance with the House Appropriations Committee Report on Expansion Budget/Capital Budget, dated June 28, 1995.  Some of those expansion budget items were in the budget submitted to the General Assembly by the Director of the Budget and the Advisory Budget Commission.
		Expansion budget items that were funded from new receipts are included in the budget enacted by the General Assembly with program-level detail.
The budget enacted by the General Assembly shall also be interpreted in accordance with the special provisions in this act and in accordance with other appropriate legislation.
In the event that there is a conflict between the line item budget certified by the Director of the Budget and the budget enacted by the General Assembly, the budget enacted by the General Assembly shall prevail.

Requested by:  Representatives Holmes, Creech, Esposito
MOST TEXT APPLIES ONLY TO 1995-97
Sec. 28.9.  Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 1995-97 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 1994-95 fiscal year.

Requested by:  Representatives Holmes, Creech, Esposito
1995-97 APPROPRIATIONS LIMITATIONS AND DIRECTIONS APPLY
Sec. 28.10. .  (a)	Except where expressly repealed or amended by this act, the provisions of Chapter 284 of the 1995 Session Laws remain in effect.
(b)	Notwithstanding any modifications by this act in the amounts appropriated, except where expressly repealed or amended, the limitations and directions for the 1995-97 fiscal year in Chapter 284 of the 1995 Session Laws, that applied to appropriations to particular agencies or for particular purposes apply to the newly enacted appropriations and budget reductions of this act for those same particular purposes.

Requested by:  Representatives Holmes, Creech, Esposito
EFFECT OF HEADINGS
Sec. 28.11.  The headings to the titles, parts, and sections of this act are a convenience to the reader and are for reference only.  The headings do not expand, limit, or define the text of this act.

Requested by:  Representatives Holmes, Creech, Esposito 
SEVERABILITY CLAUSE
Sec. 28.12.  If any section or provision of this act is declared unconstitutional or invalid by the courts, it does not affect the validity of this act as a whole or any part other than the part so declared to be unconstitutional or invalid.

Requested by:  Representatives Holmes, Creech, Esposito
EFFECTIVE DATE
Sec. 28.13.  Except as otherwise provided, this act becomes effective July 1, 1995.