GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1995

H	5 

HOUSE BILL 230
Committee Substitute Favorable 6/29/95
Third Edition Engrossed 7/1/95
Senate Appropriations Committee Substitute Adopted 7/13/95
Fifth Edition Engrossed 7/13/95

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

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Sponsors:

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Referred to:  Pensions and Retirement/Insurance/State Personnel

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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.

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

Judicial	$3,057,886 $3,282,475

Office of the Governor	138,608 183,383

Department of State Treasurer	4,448,000 4,448,000

Department of Public Education	9,318,436 36,264,012

University of North Carolina - 
Board of Governors
Institutional Programs	486,460 4,105,059

Department of Justice	651,264 651,264

Department of Administration	348,704 348,704

Department of Insurance	485,000 4,885,000

Economic and Natural Resources
Department of Commerce	267,041 267,041
Department of Environment, Health,
  and Natural Resources	3,080,839 3,080,839
Total Economic and Natural Resources	$3,347,880 $3,347,880

Department of Human Resources
Division of Aging	500,000 500,000
Office of the Secretary	1,500,000 1,500,000
Division of Social Services	920,000 920,000
Division of Services for the Blind	175,000 175,000
Division of Mental Health,
  Developmental Disabilities,
   and Substance Abuse Services	13,000,000 18,182,213
Division of Vocational Rehab	1,330,795 2,049,212
Division of Youth Services	991,371 1,610,541

Total Department of Human Resources	$18,417,166 $24,936,966

Department of Correction	5,534,088 44,310,450

Department of Revenue	3,196,311 2,971,115

Department of State Auditor	103,271 103,271

Department of Cultural Resources	155,673 155,673

Department of Crime Control
and Public Safety	200,542 199,872

Office of State Controller	419,666 419,666

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

Reserve for Compensation Increase	101,136,570 101,136,570

Department of Community Colleges	4,380,314 4,380,314

GRAND TOTAL CURRENT OPERATIONS
GENERAL FUND RECURRING	$170,857,391 $260,498,726

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.

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

Judicial	$4,764,749 –

Office of the Governor	1,559,571 –

Department of Public Education	35,071,158 –

University of North Carolina -
Board of Governors
Institutional Programs	10,400,000 –

Department of Justice	182,246 –

Department of Administration	216,735 –

Department of Insurance	1,290,000 –

NATURAL AND ECONOMIC RESOURCES
Department of Agriculture	500,000 –
Department of Commerce	5,100,000 1,300,000
NC Biotechnology Center	1,000,000 –
Rural Economic Dev. Center	3,800,000 –
Housing Finance Agency	2,000,000 –
Environment, Health, and
  Natural Resources	4,936,190 –
Total Natural & Economic Resources	$17,336,190 $1,300,000

Department of Human Resources
Division of Aging	175,000 –
Division of Child Development	300,000 –
Office of the Secretary	2,000,000 –
Division of Social Services	699,300 –
Division of Mental Health,
  Developmental Disabilities,
  and Substance Abuse Services	400,000 –
Total Department of Human Resources	$3,574,300 –

Department of Correction	1,778,631 808,932

Department of Revenue	8,027,912 116,600

Department of Cultural Resources	11,021,326 –

Department of Crime Control
and Public Safety	594,646 125,000

Office of State Controller	2,686,457 –

State Board of Elections	1,560,000 –

Department of State Auditor	12,800 –

Department of Community Colleges	4,051,317 –

Reserve for Compensation Increase	3,521,609 –

GRAND TOTAL - CURRENT OPERATIONS-
GENERAL FUND NONRECURRING	$107,649,647 $2,350,532

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.
	1995-96	1996-97
A. EXPANSION PROJECTS

1.	DOT Administration	$8,086,537 $8,636,463
2.	Division of Highways
a.  Administration and 
    Operations	102,849 102,849
b.  State Construction
    01.  Reserve for Spot-Safety
Projects	6,000,000 6,000,000
c.  State Maintenance
    01.  Urban System	420,000 4,347,777
    02.  Contract Resurfacing	3,680,202 5,000,000
3.	Division of Motor Vehicles	5,452,112 4,482,898
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
7.	Reserve for PCB Cleanup	1,000,000
Appropriations to Other State 
Agencies
a.  Crime Control & Public Safety	1,662,525 1,035,175

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

AVAILABILITY
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 Changes
(a)	Personal Income	-235.0	-244.1
(b)	Intangibles Repeal	-124.4	-124.5
(c)	H 396 Ports Tax Credit	-.7	-.7
	H  55 Aquaculture Sales Tax
Exemption	-.1	-.1
	H 759 Nonprofit Home Sales
Tax Refunds	-1.4	-1.4
	H 223 Soft Drink Tax	-	-9.6
	H 360 RR Diesel Sales Tax
Exemption	-1.2	-1.5
	H 718 State Parks Trust Fund	-	-18.0
	S 202 Poultry Composting Credit	   -.3	   -.3
Total Tax Changes	-363.1	-400.2

2.	Local Sales Tax - 
Local Government Commission	1.5	1.5
3.	Insurance Regulatory Charges		
	5.4	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
7.	S710 - Self-Insurance Guaranty Fund	-1.8	-1.8
8.	S611 - Increase Court Fees	8.5	8.5
9.	Reversions Sec. 26.1	.4	-
Availability			
		$9,972.7	$10,389.3"

PART 6.  GENERAL PROVISIONS

Requested by:  Senators Plyler, Perdue, Odom
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.

Requested by:  Senators Plyler, Perdue, Odom
AUTHORIZATION OF PRIVATE LICENSE TAGS ON STATE-OWNED MOTOR VEHICLE
Sec. 6.1.  (a)	Pursuant to the provisions of G.S. 14-250, for the 1995-97 fiscal biennium, the General Assembly authorizes the use of private license tags on State-owned motor vehicles only for the State Highway Patrol and for the following:
Department	Exemption Category	Number
Motor Vehicles	License and Theft	97
Justice	SBI Agents	277
Correction	Probation/Parole Surveillance
Officers (intensive 
probation)	25
Crime Control and
   Public Safety	ALE Officers	92
Revenue	3
Capital Area
   Police	2
(b)	The 92 ALE vehicles authorized by this section to use private license tags shall be distributed as follows:
(1)	54 among Agent I officers;
(2)	20 among Agent II officers;
(3)	1 to the Deputy Director;
(4)	12 to the District Offices/Extra Vehicles; and
(5)	5 to the Director, to be distributed at the Director's discretion.
(c)	Except as provided in this section, all State-owned motor vehicles shall bear permanent registration plates issued under G.S. 20-84.

Requested by:  Senators Plyler, Perdue, Odom
AUTHORIZATION OF PRIVATE LICENSE TAGS ON STATE-OWNED MOTOR VEHICLE
Sec. 6.2.  (a)	G.S 18B-500(f) is repealed.
(b)	G.S. 20-39(h) reads as rewritten:
"(h)	The Commissioner, notwithstanding any other provision of this Chapter, may lawfully and to the extent necessary, provide local, State or federal law-enforcement officers on special undercover assignments with motor vehicle drivers licenses and motor vehicle registration plates under assumed names using false or fictitious addresses.  Such registration plates shall only be used on publicly owned or leased vehicles.  Requests for these licenses and registration plates shall be made to the Commissioner by the head of the local, State or federal law-enforcement agency and be accompanied by approval in writing from the Director of the State Bureau of Investigation upon a specific finding by the Director that the request is justified and necessary.  The Director shall keep a record of all such licenses, registration plates, assumed names, false or fictitious addresses, and law-enforcement officers using the licenses or registration plates, and shall request the immediate return of any license or registration plate that is no longer necessary.  Licenses and registration plates provided under this subsection shall expire six months after initial issuance or subsequent validation after the request for extension has been approved in writing by the Director of the State Bureau of Investigation.  The head of the local, State or federal law-enforcement agency shall be responsible for the use of the licenses and registration plates and shall return them immediately to the Commissioner for cancellation upon either (i) their expiration, (ii) request of the Director of the State Bureau of Investigation, or (iii) request of the Commissioner.  Failure to return a license or registration plates issued pursuant to this subsection shall be punished as a Class 2 misdemeanor.  At no time shall the number of valid licenses and registration plates issued under this act exceed fifty, and those issued shall be strictly monitored by the Director.  All of the private registration plates issued to special agents of the State Bureau of Investigation under the Department of Justice and to alcohol law enforcement agents under the Department of Crime Control and Public Safety, pursuant to G.S. 14-250, may be fictitious plates and shall not be counted in the total number of fictitious plates authorized by this subsection."
(c) G.S. 114-17.1 is repealed.

Requested by:  Senators Plyler, Perdue, Odom
DELETE DUPLICATIVE REPORT ON OVEREXPENDITURES OF FUNDS
Sec. 6.3.  G.S. 143-23(a1) reads as rewritten:
"(a1)	No transfers may be made between objects or line items in the budget of any department, institution, or other spending agency; however, with the approval of the Director of the Budget, a department, institution, or other spending agency may spend more than was appropriated for an object or line item if the overexpenditure is:
(1)	In a purpose or program for which funds were appropriated for that fiscal period and the total amount spent for the purpose or program is no more than was appropriated for the purpose or program for the fiscal period;
(2)	Required to continue a purpose or program because of unforeseen events, so long as the scope of the purpose or program is not increased;
(3)	Required by a court, Industrial Commission, or administrative hearing officer's order or award or to match unanticipated federal funds;
(4)	Required to respond to an unanticipated disaster such as a fire, hurricane, or tornado; or
(5)	Required to call out the National Guard.
	The Director of the Budget shall report on a quarterly basis to the Joint Legislative Commission on Governmental Operations, the Fiscal Research Division of the Legislative Services Office, and the State Auditor the reason if the amount expended for a purpose or program is more than the amount appropriated for it from all sources. If the overexpenditure was authorized under subdivision (2) of this subsection, the Director of the Budget shall identify in the report the unforeseen event that required the overexpenditure."

Requested by:  Senators Plyler, Perdue, Odom
OVERREALIZED GENERAL FUND REVENUES
Sec. 6.4. (a)	If the Director of the Budget, the State Controller, and the Secretary of Revenue jointly certify that General Fund revenue over collections in the 1994-95 fiscal year is in excess of the one hundred ninety-two million dollars ($192,000,000) reflected in the Budget Reform Statement in Section 4B of this act, the Director of the Budget may use funds for the 1995-96 fiscal year to comply with court orders and to match federal funds for the purposes specifically designated in this section, and such funds are hereby appropriated:
(1)	Compliance with court orders in the Willie M. and Thomas S. lawsuits by the Department of Human Resources;
(2)	State match for federal funds for the implementation of the the North Carolina Client Access Network (NC CAN) program in the Department of Human Resources;
(3)	State match for federal funds for the implementation of the Electronic Benefits Program in the Department of Human Resources; and
(4)	State match for federal funds for the Global TransPark Training Center.
Prior to spending funds under this section, the Director of the Budget shall report on the intended expenditures to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division.
(b)	If the Director of the Budget determines that no additional funds are needed for the purposes designated in subsection (a) of this section, the Director of the Budget may use any remaining funds to grant a bonus of up to three hundred dollars ($300.00) per employee to each permanent State employee or officer of the State, and each State-paid public school employee or officer.  If any such bonus is paid, all eligible persons shall receive a bonus of the same amount, except that persons whose work is less than full time shall receive a pro rata amount.  The Director of the Budget shall determine any eligibility requirements which may include a length of service requirement and shall determine when the bonus is to be paid.

PART 7. SALARIES AND BENEFITS

Requested by:  Senators Plyler, Perdue, Odom
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-eight thousand five hundred seventy-six dollars ($98,576) 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	$87,000
Attorney General	87,000
Secretary of State	87,000
State Treasurer	87,000
State Auditor	87,000
Superintendent of Public Instruction	87,000
Agriculture Commissioner	87,000
Insurance Commissioner	87,000
Labor Commissioner	87,000

Requested by:  Senators Plyler, Perdue, Odom
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	$85,000
Secretary of Correction	85,000
Secretary of Cultural Resources	85,000
Secretary of Commerce	85,000
Secretary of Environment, Health, and Natural Resources	85,000
Secretary of Human Resources	85,000
Secretary of Revenue	85,000
Secretary of Transportation	85,000
Secretary of Crime Control and Public Safety	85,000

Requested by:  Senators Plyler, Perdue, Odom
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	$ 77,365
State Controller	108,271
Commissioner of Motor Vehicles	77,365
Commissioner of Banks	77,365
Chairman, Employment Security Commission	77,365
State Personnel Director	85,000
Chairman, Parole Commission	70,643
Members of the Parole Commission	65,220
Chairman, Industrial Commission	69,510
Members of the Industrial Commission	67,817
Chairman of the Utilities Commission	81,381
Commissioner of the Utilities Commission	80,381
Executive Director, Agency for Public Telecommunications	65,220
General Manager, Ports Railway Commission	58,893
Director, Museum of Art	79,274
Executive Director, Wildlife Resources Commission	66,773
Executive Director, North Carolina Housing Finance Agency	95,746
Executive Director, North Carolina Agricultural Finance Authority 75,302
Director, Office of Administrative Hearings	76,500

Requested by:  Senators Plyler, Perdue, Odom
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	$98,576
Associate Justice, Supreme Court	96,000
Chief Judge, Court of Appeals	93,600
Judge, Court of Appeals	92,000
Judge, Senior Regular Resident Superior Court	89,500
Judge, Superior Court	87,000
Chief Judge, District Court	79,000
Judge, District Court	76,500
District Attorney	80,600
Administrative Officer of the Courts	89,500
Assistant Administrative Officer of the Courts	75,160
Public Defender	80,600

(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:  Senator Rand
REDEFINE SERVICE FOR PURPOSES OF LONGEVITY PAY FOR PUBLIC DEFENDERS AND ASSISTANT DISTRICT ATTORNEYS
Sec. 7.4A.  (a)	G.S.  7A-465(b) reads as rewritten:
"(b)	The public defender shall be an attorney licensed to practice law in North Carolina, and shall devote his full time to the duties of his office.
In lieu of merit and other increment raises paid to regular State employees, a public defender shall receive as longevity pay an amount equal to four and eight-tenths percent (4.8%) of the annual salary set forth in the Current Operations Appropriations Act payable monthly after five years of service, nine and six-tenths percent (9.6%) after 10 years of service, fourteen and four-tenths percent (14.4%) after 15 years of service, and nineteen and two-tenths percent (19.2%) after 20 years of service. 'Service' means service as a public defender, assistant public defender, justice or judge of the General Court of Justice, or clerk of superior court."
(b) G.S. 7A-65(d) reads as rewritten:
"(d)	In lieu of merit and other increment raises paid to regular State employees, an assistant district attorney shall receive as longevity pay an amount equal to four and eight-tenths percent (4.8%) of the annual salary set forth in the Current Operations Appropriations Act payable monthly after five years of service, nine and six-tenths percent (9.6%) after 10 years of service, and fourteen and four-tenths percent (14.4%) after 15 years of service. 'Service' means service as an assistant district attorney or as a district attorney."

Requested by:  Senators Plyler, Perdue, Odom
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:  Senators Plyler, Perdue, Odom
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:  Senators Plyler, Perdue, Odom
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:  Senators Plyler, Perdue, Odom
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:  Senators Plyler, Perdue, Odom
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:  Senators Plyler, Perdue, Odom
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:  Senators Plyler, Perdue, Odom
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:  Senators Plyler, Perdue, Odom
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:  Senators Plyler, Perdue, Odom
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.

Requested by:  Senators Plyler, Perdue, Odom
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.
Any remaining appropriations for legislative salary increases not required for that purpose may be used to supplement the Salary Adjustment Fund.  First priority for the use of these funds shall be to support the salary range revision approved for Dental Hygienist in October 1993.
(e)  Nothing in this act authorizes the transfer of funds between the General Fund and the Highway Fund for salary increases.

Requested by:  Senators Plyler, Perdue, Odom
LAW ENFORCEMENT SALARIES EQUALIZED
Sec. 7.15A. The Office of State Personnel shall adjust the salaries of law enforcement positions in Marine Fisheries and Wildlife Resources so that the average salaries of these employees are the same as the average salaries of members of the Highway Patrol in the same salary grade.  Within each salary grade, each position shall receive the same percentage increase, except that no salary shall be increased above the top of the range.

Requested by:  Senators Plyler, Perdue, Odom
SALES TAX TRANSFER FOR WILDLIFE RESOURCES COMMISSION SALARY INCREASES
Sec. 7.15B.  Effective July 1, 1995, G.S. 105-164.44B reads as rewritten:
"§ 105-164.44B.  Transfer to Wildlife Resources Fund of taxes on hunting and fishing supplies and equipment.
Each fiscal year, the Secretary of Revenue shall transfer at the end of each quarter from the State sales and use tax net collections received by the Department of Revenue under Article 5 of Chapter 105 of the General Statutes to the State Treasurer for the Wildlife Resources Fund, one fourth of the amount transferred the preceding fiscal year plus or minus the percentage of that amount by which the total collection of State sales and use taxes increased or decreased during the preceding fiscal year plus the cost of any legislative salary increase for employees of the Wildlife Resources Commission."

Requested by:  Senators Plyler, Perdue, Odom
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, and directors/coordinators 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:  Senators Plyler, Perdue, Odom
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 - $7,861
The 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:  Senators Plyler, Perdue, Odom
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 1995-96 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 1995-96 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.  Certified personnel of the public schools who are: (i) certified based on academic preparation at the six-year degree level; (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 1995-96 school year shall receive a one-time bonus of eight hundred eighteen dollars ($818.00), payable at the third payroll period of the 1995-96 school year.  Certified personnel of the public schools who are: (i) certified based on academic preparation at the doctoral degree level; (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 1995-96 school year shall receive a one-time bonus of eight hundred forty-four dollars ($844.00), 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 1995-96 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 1995-96 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:  Senators Plyler, Perdue, Odom
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 during the third payroll period of the 1995-96 school year and who were 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.
(k)  The State Board of Education shall compile information on the total number of years each assistant principal employed for the 1995-96 fiscal year has worked as an assistant principal.

Requested by:  Senators Plyler, Perdue, Odom
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:  Senators Plyler, Perdue, Odom
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:
"(6)	Notwithstanding the provisions of G.S. 135-40.11, employees 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:  Senators Martin of Pitt, Warren, Kerr
ASSIST VOLUNTEER SAFETY WORKERS
Sec. 7.21A.  (a)	Article 87 of Chapter 58 of the General Statutes is amended by adding a new section to read:
"§ 58-87-10.  Workers' Compensation for Volunteer Safety Workers.
The State Fire and Rescue Commission shall provide workers' compensation benefits to members of eligible fire departments and eligible rescue/EMS units.  Chapter 97 of the General Statutes governs the payment of benefits.  Benefits are payable for compensable injuries or deaths that occur on and after July 1, 1996.  An eligible fire department or rescue/EMS unit is a volunteer department or unit that is not part of a unit of local government and is exempt from State income tax under G.S. 105-130.11.
Every eligible department and unit shall pay to the State Fire and Rescue Commission an amount set annually by the Commission to ensure that the Commission will be able to meet its payment obligations under this section.  The amount shall be set as a per capita fixed dollar amount for each member of the roster for every department and unit.  The payment shall be made to the Commission on or before July 1 of each year.  If the Commission does not receive an annual payment from an eligible department or unit by July 1, then the department or unit that fails to make the payment will not be eligible for workers' compensation coverage from the Fund for the fiscal year that begins that July 1.
The Commission shall contract with a third-party administrator to provide the benefit payments.  The contracting procedure is not subject to Article 3C of Chapter 143 of the General Statutes.  The Commission may adopt rules to implement this section."
(b)	The first per member payment that eligible fire departments and rescue/EMS units must make to the State Fire and Rescue Commission under G.S. 58-87-10 is payable on or before July 1, 1996.
(c)	G.S. 58-78-5(a) is amended by adding a new subdivision to read:
"(16)	To provide workers' compensation benefits under G.S. 58-87-10, to create a Volunteer Safety Workers' Compensation board to assist it in performing this duty, and to reimburse the members of the Commission's Volunteer Safety Workers' Compensation board in accordance with G.S. 138-5 for travel and subsistence expenses incurred by them."
(d)	G.S. 58-86-35 reads as rewritten:
"§ 58-86-35.  Firemen's application for membership in fund; monthly payments by members; payments credited to separate accounts of members.
Those firemen who are eligible pursuant to G.S. 58-86-25 may make application for membership to the board. Each fireman upon becoming a member of the fund shall pay the director of the fund the sum of ten dollars ($10.00) per month. The monthly payments shall be credited to the separate account of the member and shall be kept by the custodian so it is available for payment on withdrawal from membership or retirement."
(e)  G.S. 58-86-40 reads as rewritten:
"§ 58-86-40.  Rescue squad worker's application for membership in funds; monthly payments by members; payments credited to separate accounts of members.
Those rescue squad workers eligible pursuant to G.S. 58-86-30 may apply to the board for membership. Each eligible rescue squad worker upon becoming a member shall pay the director of the fund the sum of ten dollars ($10.00) per month. The
monthly payments shall be credited to the separate account of the member and shall be kept by the custodian so it is available for payment on withdrawal from membership or retirement."
(f)  G.S. 58-86-45(b) reads as rewritten:
"(b)	An eligible fireman or rescue squad worker who is not yet 35 years old and has not previously elected to become a member may apply to the board of trustees for membership in the fund at any time.  Upon becoming a member, the worker must make a lump sum payment of ten dollars ($10.00) per month retroactively to the time the worker first became eligible to become a member, plus interest at an annual rate to be set by the board for each year of retroactive payments.  Upon making this lump sum payment, the worker shall be given credit for all prior service in the same manner as if the worker had applied for membership upon first becoming eligible.  
A member who is not yet 35 years old, who applied for membership after first becoming eligible, and who did not receive credit for prior service may receive credit for the prior service upon making a lump sum payment of ten dollars ($10.00) for each month since the worker first became eligible, plus interest at an annual rate to be set by the board for each year of retroactive payments.  Upon making this lump sum payment, the date of membership shall be the same as if the worker had applied for membership upon first becoming eligible."
(g)  G.S. 58-86-55 reads as rewritten:
"§ 58-86-55.  Monthly pensions upon retirement.
Any member who has served 20 years as an 'eligible fireman' or 'eligible rescue squad worker' in the State of North Carolina, as provided in G.S. 58-86-25 and G.S. 58-86-30, and who has attained the age of 55 years is entitled to be paid a monthly pension from this fund. The monthly pension shall be in the amount of one hundred thirty-five dollars ($135.00) per month. Any retired fireman receiving a pension of one hundred ten dollars ($110.00) per month shall, effective July 1, 1995, receive a pension of one hundred thirty-five dollars ($135.00) per month.
Members shall pay ten dollars ($10.00) per month as required by G.S. 58-86-35 and G.S. 58-86-40 for a period of no longer than 20 years. No 'eligible rescue squad member' shall receive a pension prior to July 1, 1983. No member shall be entitled to a pension hereunder until the member's official duties as a fireman or rescue squad worker for which the member is paid compensation shall have been terminated and the member shall have retired as such according to standards or rules fixed by the board of trustees.
A member who is totally and permanently disabled while in the discharge of the member's official duties as a result of bodily injuries sustained or as a result of extreme exercise or extreme activity experienced in the course and scope of those official duties and who leaves the fire or rescue squad service because of this disability shall be entitled to be paid from the fund a monthly benefit in an amount of one hundred thirty-five dollars ($135.00) per month beginning the first month after the member's fifty-fifth birthday. All applications for disability are subject to the approval of the board who may appoint physicians to examine and evaluate the disabled member prior to approval of the application, and annually thereafter. Any disabled member shall not be required to make the monthly payment of ten dollars ($10.00) as required by G.S. 58-86-35 and G.S. 58-86-40.
A member who is totally and permanently disabled for any cause, other than line of duty, who leaves the fire or rescue squad service because of this disability and who has at least 10 years of service with the pension fund, may be permitted to continue making a monthly contribution of ten dollars ($10.00) to the fund until the member has made contributions for a total of 240 months. The member shall upon attaining the age of 55 years be entitled to receive a pension as provided by this section. All applications for disability are subject to the approval of the board who may appoint physicians to examine and evaluate the disabled member prior to approval of the application and annually thereafter.
A member who, because his residence is annexed by a city under Part 2 or Part 3 of Article 4 of Chapter 160A of the General Statutes, or whose department is closed because of an annexation by a city under Part 2 or Part 3 of Article 4 of Chapter 160A of the General Statutes, and because of such annexation is unable to perform as a fireman of any status, and if the member has at least 10 years of service with the pension fund, may be permitted to continue making a monthly contribution of ten dollars ($10.00) to the fund until the member has made contributions for a total of 240 months.  The member upon attaining the age of 55 years and completion of such contributions shall be entitled to receive a pension as provided by this section. Any application to make monthly contributions under this section shall be subject to a finding of eligibility by the Board of Trustees upon application of the member.
The pensions provided shall be in addition to all other pensions or benefits under any other statutes of the State of North Carolina or the United States, notwithstanding any exclusionary provisions of other pensions or retirement systems provided by law."
(h)  G.S. 58-86-30 reads as rewritten:
"§ 58-86-30.  'Eligible rescue squad worker' defined; determination and certification of eligibility.
'Eligible rescue squad worker' means a person who is a member of a rescue or emergency medical services squad that is eligible for membership in the North Carolina Association of Rescue and Emergency Medical Services, Inc., and who has attended a minimum of 36 hours of training and meetings in the last calendar year. Each rescue or emergency medical services squad eligible for membership in the North Carolina Association of Rescue and Emergency Medical Services, Inc., must file a roster certified by the secretary of the association of those rescue or emergency medical services squad workers meeting the requirements of this section with the State Treasurer by January 1 of each calendar year.
'Eligible rescue squad worker' does not mean 'eligible fireman' as defined by G.S. 58-86-25, nor may an 'eligible rescue squad worker' qualify also as an 'eligible fireman' in order to receive double benefits available under this Article."
(i)  The changes made to G.S. 58-86-45 and G.S. 58-86-55 by this Part do not affect the credit received for service performed before July 1, 1995.  The increase in monthly pension contributions from five dollars ($5.00) to ten dollars ($10.00) in G.S. 58-86-55 does not affect the amount of monthly contributions made prior to July 1, 1995. 
(j)  The caption for Article 87 of Chapter 58 of the General Statutes reads as rewritten:
"ARTICLE 87.
"Volunteer Safety Workers Assistance."
(k)  G.S. 58-87-1(b) reads as rewritten:
"(b)	A fire department is eligible for a grant under this section if it meets all of the following conditions:
(1)	It serves a response area of 6,000 or less in population.
(2)	It has no more than two paid members and otherwise consists of volunteer members.
(3)	It has been certified by the Department of Insurance.
In making the population determination under subdivision (1), the Department shall use the most recent annual population estimates certified by the State Planning Officer."
(l)  G.S. 58-87-5(b) reads as rewritten:
"(b)	A rescue or rescue/EMS unit is eligible for a grant under this section if it meets all of the following conditions:
(1)	Repealed by Session Laws 1989 (Regular Session, 1990), c. 1066, s. 33(a), effective July 15, 1990.
(2)	It has no more than two paid members and otherwise consists of volunteer members.
(3)	It has been recognized by the Department as an organization that provides rescue or rescue and emergency medical services.
(4)	It satisfies the eligibility criteria established by the Department under subsection (a) of this section."
(m)  Subsections (d) through (i) of this section become effective July 1, 1995.  The remainder of this section becomes effective upon ratification.

Requested by:  Senators Plyler, Perdue, Odom
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:  Senators Plyler, Perdue, Odom
SALARY RELATED CONTRIBUTIONS/CONFORM UNC OPTIONAL PLAN
Sec. 7.22A.  Section 7.1(b) of Chapter 324 of the 1995 Session Laws reads as rewritten:
"(b)	Effective July 1, 1995, the State's employer contribution rates budgeted for retirement and related benefits as a percentage of covered salaries for the 1995-96 fiscal year are (i) ten and eighty-three hundredths percent (10.83%) - Teachers and State Employees; (ii) fifteen and eighty-three hundredths percent (15.83%) - State Law Enforcement Officers; (iii) nine and eighteen hundredths percent (9.18%) - University Employees' Optional Retirement Program; (iv) twenty-two and sixty-five hundredths percent (22.65%) - Consolidated Judicial Retirement System; and (v) twenty-three and twenty-seven hundredths percent (23.27%) - Legislative Retirement System.  Each of the foregoing contribution rates includes two percent (2%) for hospital and medical benefits.  The rate for State Law Enforcement Officers includes five percent (5%) for the Supplemental Retirement Income Plan.  The rates for Teachers and State Employees, State Law Enforcement Officers, and for the University Employees' Optional Retirement Program includes fifty-two hundredths percent (0.52%) for the Disability Income Plan."

Requested by:  Senators Plyler, Perdue, Odom
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:  Senators Plyler, Perdue, Odom
ADDITIONAL RETIREMENT BENEFITS
Sec. 7.23A. (a) G.S. 135-5(m) reads as rewritten:
"(m)	Survivor's Alternate Benefit. – Upon the death of a member in service, the principal beneficiary designated to receive a return of accumulated contributions shall have the right to elect to receive in lieu thereof the reduced retirement allowance provided by Option 2 of subsection (g) above computed by assuming that the member had retired on the first day of the month following the date of his death, provided that the following conditions apply:
(1)	a.	The member had attained such age and/or creditable service to be eligible to commence retirement with an early or service retirement allowance, or
b.	The member had obtained 20 years of creditable service in which case the retirement allowance shall be computed in accordance with G.S. 135-5(b16)(1)b. or G.S. 135-5(b16)(2)c., notwithstanding the requirement of obtaining age 50.
(2)	The member had designated as the principal beneficiary to receive a return of his accumulated contributions one and only one person who was living at the time of his death.
(3)	The member had not instructed the Board of Trustees in writing that he did not wish the provisions of this subsection to apply.
For the purpose of this benefit, a member is considered to be in service at the date of his death if his death occurs within 180 days from the last day of his actual service. The last day of actual service shall be determined as provided in subsection (l)	of this section. Upon the death of a member in service, the surviving spouse may make all purchases for creditable service as provided for under this Chapter for which the member had made application in writing prior to the date of death, provided that the date of death occurred prior to or within 60 days after notification of the cost to make the purchase. The term "in service" as used in this subsection includes a member in receipt of a benefit under the Disability Income Plan as provided in Article 6 of this Chapter."
(b)	G.S. 135-5 is amended by adding a new subsection to read:
"( aaa)	Increase in Allowance as to Persons on Retirement Rolls as of June 1, 1995. – From and after July 1, 1995, the retirement allowance to or on account of beneficiaries on the retirement rolls as of June 1, 1995, shall be increased by one and two-tenths of one percent (1.2%) of the allowance payable on June 1, 1995. This allowance shall be calculated on the allowance payable and in effect on June 30, 1995, so as not to be compounded on any other increase granted by act of the 1995 General Assembly."
(c)	G.S. 128-27 is amended by adding two new subsections to read:
"( pp)	Increase in Allowance as to Persons on Retirement Rolls as of June 1, 1995. – From and after July 1, 1995, the retirement allowance to or on account of beneficiaries on the retirement rolls as of June 1, 1995, shall be increased by six-tenths of one percent (0.6%) of the allowance payable on June 1, 1995. This allowance shall be calculated on the allowance payable and in effect on June 30, 1995, so as not to be compounded on any other increase payable under subsection (k) of this section or otherwise granted by act of the 1995 General Assembly.
(qq)	From and after July 1, 1995, the retirement allowance to or on account of beneficiaries whose retirement commenced on or before July 1, 1993, shall be increased by seven-tenths of one percent (0.7%) of the allowance payable on July 1, 1993, 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, 1993, but before June 30, 1994, shall be increased by a prorated amount of seven-tenths of one percent (0.7%) of the allowance payable as determined by the Board of Trustees based upon the number of months that a retirement allowance was paid between July 1, 1993, and June 30, 1994.
(d)	Effective October 1, 1995, G.S. 143-166.60(d) reads as rewritten:
"(d)	The Boards of Trustees shall adopt such rules as are necessary to administer benefits under the Plan, within the availability of funds, to provide:
	(2)	A group life insurance benefit for participants employed by an employer at the time of death, not to exceed six thousand dollars ($6,000);
(3)	A group life insurance benefit for participants who are eligible former officers, not to exceed six thousand dollars ($6,000); and
(4)	An accidental line-of-duty insurance death benefit not to exceed two thousand one hundred dollars ($2,100) in total on account of the death of a participant caused by an accident while in the actual performance of duty as an officer."
(e)  Subsection (d) of this section becomes effective October 1, 1995.  The remainder of this section becomes effective July 1, 1995.

Requested by:  Senators Plyler, Perdue, Odom
LRC STUDY CIVILIANIZATION
Sec. 7.23B.  Section 8.3 of Chapter 324 of the 1995 Session Laws reads as rewritten:
"Sec. 8.3.  The Legislative Research Commission may study issues related to civilianizing certain State government law enforcement functions and positions, including the appropriate use of nonsworn, noncertified personnel in positions for which sworn status is not cost-effective or required.  This study shall include the recommendations made by the Government Performance Audit Committee on civilianization to the 1993 General Assembly.
The Legislative Research Commission may study what positions should be included in the salary continuation provisions of G.S. 143-166.13(a).
The Legislative Research Commission may make an interim report, including any legislative recommendations, to the 1995 General Assembly, Regular Session 1996, and shall make a final report, including any legislative recommendations, to the 1997 General Assembly."

Requested by:  Senators Plyler, Perdue, Odom
STUDY OF FEDERAL RETIREES' CLAIMS AGAINST THE STATE
Sec. 7.23C. (a)	There is established in the General Assembly a Legislative Study Committee on Federal Retirees' Claims against the State. This Committee shall study the issue of federal retirees' claims against the State for income tax paid on their retirement benefits for tax years 1985 through 1988.  As part of the study, the Committee shall consider ways to compensate these federal retirees for taxes paid.
(b)	The Committee shall be composed of 12 members appointed as follows:
(1)	Six members appointed by the Speaker of the House of Representatives, three of whom shall be members of the House of Representatives at the time of their appointment; and
(2)	Six members appointed by the President Pro Tempore of the Senate, three of whom shall be members of the Senate at the time of their appointment.
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 committee.  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 committee has made its report. Vacancies in membership shall be filled by the appropriate appointing officer.
(c)	The  Committee 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 Committee.  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 Committee 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 Committee.  The Committee may meet in the Legislative Building or the Legislative Office Building upon the approval of the Legislative Services Commission.  The Committee, 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 Committee shall receive per diem, subsistence, and travel allowances as follows:
(1)	Committee members who are members of the General Assembly, at the rate established in G.S. 120-3.1;
(2)	Committee 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 Committee members, at the rate established in G.S. 138-5.
(d)	The  Committee shall report the results of its study and its recommendations to the 1997 General Assembly within a week of its convening.

Requested by: Senators Warren, Plyler, Perdue, Odom
RESTORE THE PROVISION FOR PURCHASE OF OUT-OF-STATE SERVICE IN THE LOCAL GOVERNMENTAL EMPLOYEES' RETIREMENT SYSTEM AND THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM
Sec. 7.23D. (a) G.S. 128-26 is amended by adding a new subsection to read:
"( j2)	Notwithstanding any other provision of this Chapter, any member and any retired member as herein described may purchase creditable service previously rendered to any state, territory, or other governmental subdivision of the United States other than this State by paying a total lump-sum payment determined as follows:
(1)	For members who completed 10 years of prior and current membership service, and retired members who completed 10 years of prior and current membership service prior to retirement, and whose current membership began on or before January 1, 1988, and who make such purchase within three years after first becoming eligible, the cost shall be an amount equal to the monthly compensation the member earned when he first entered current membership service, times the employee contribution rate at that time, times the months of service to be purchased, times two, with sufficient interest added thereto so as to equal the full cost of allowing such service, plus an administrative fee to be set by the Board of Trustees.
(2)	For members who complete five years of prior and current membership service, and retired members who complete five years of prior and current membership service prior to retirement, and eligible members and retired members covered by subdivision (1) of this subsection, whose current membership began on or before January 1, 1988, but who did not or do not make such purchase within three years after first becoming eligible, the cost shall be an amount equal to the full liability of the service credits calculated on the basis of the assumptions used for the purposes of the actuarial valuation of the System's liabilities and shall take into account the retirement allowance arising on account of the additional service credits commencing at the earliest age at which the member could retire on an unreduced allowance, as determined by the Board of Trustees upon the advice of the consulting actuary, plus an administrative fee to be set by the Board of Trustees.  Notwithstanding the foregoing provisions of this subsection that provide for the purchase of service credits, the term 'full liability' includes assumed postretirement allowance increases, as determined by the Board of Trustees, from the earliest age at which a member could retire on an unreduced service retirement allowance.
Creditable service under this subsection shall be allowed only at the rate of one year of out-of-state service for each two years of service in this State, with a maximum allowable of 10 years of out-of-state service.  Such service is limited to full-time service which would be allowable under the laws governing this System.  Credit will be allowed only if no benefit is allowable in another public retirement system as a  result of the service."
(b) G.S. 135-4 is amended by adding a new subsection to read:
"( l1)	Notwithstanding any other provision of this Chapter, any member and any retired member as herein described may purchase creditable service previously rendered to any state, territory, or other governmental subdivision of the United States other than this State by paying a total lump-sum payment determined as follows:
(1)	For members who completed 10 years of membership service, and retired members who completed 10 years of membership service prior to retirement, whose current membership began on or before July 1, 1981, and who make such purchase within three years after first becoming eligible, the cost shall be an amount equal to the monthly compensation the member earned when he first entered current membership service, times the employee contribution rate at that time, times the months of service to be purchased, times two, with sufficient interest added thereto so as to equal the full cost of allowing such service, plus an administrative fee to be set by the Board of Trustees.
(2)	For members who complete five years of membership service, and retired members who complete five years of membership service prior to retirement, and eligible members and retired members covered by subdivision (1) of this subsection, whose current membership began on or before July 1, 1981, but who did not or do not make such purchase within three years after first becoming eligible, the cost shall be an amount equal to the full liability of the service credits calculated on the basis of the assumptions used for the purposes of the actuarial valuation of the System's liabilities and shall take into account the retirement allowance arising on account of the additional service credits commencing at the earliest age at which the member could retire on an unreduced allowance, as determined by the Board of Trustees upon the advice of the consulting actuary, plus an administrative fee to be set by the Board of Trustees.  Notwithstanding the foregoing provisions of this subsection that provide for the purchase of service credits, the term 'full liability' includes assumed postretirement allowance increases, as determined by the Board of Trustees, from the earliest age at which a member could retire on an unreduced service retirement allowance.
Creditable service under this subsection shall be allowed only at the rate of one year of out-of-state service for each two years of current membership service in this State, with a maximum allowable of 10 years of out-of-state service.  Such service is limited to full-time service which would be allowable under the laws governing this System.  Credit will be allowed only if no benefit is allowable in another public retirement system as a  result of the service."

Requested by:  Senators Plyler, Perdue, Odom
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:  Senators Plyler, Perdue, Odom
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:  Senators Plyler, Perdue, Odom
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:  Senators Plyler, Perdue, Odom
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:  Senators Plyler, Perdue, Odom
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."

Requested by:  Senators Plyler, Perdue, Odom
STATE EMPLOYEE HEALTH BENEFIT PLAN/PLAN YEAR CHANGED
Sec. 7.28A.  (a)	G.S. 135-40.1(7a) reads as rewritten:
"(7a)	Fiscal Year. – The period beginning January 1 and ending on December 30 of the same calendar year."
(b) Notwithstanding G.S. 135-40.1(7a), the period July 1, 1995, through December 31, 1995, is a fiscal year for the purpose of Article 3 of Chapter 135 of the General Statutes.  For the fiscal year established by this subsection, any dollar amounts set for a fiscal year under that Article shall be applied as half that amount.

Requested by:  Senators Plyler, Perdue, Odom
STATE EMPLOYEE HEALTH BENEFIT PLAN/INCREASED CHIROPRACTIC BENEFITS
Sec. 7.28B.  G.S. 135-40.6(8)n. reads as rewritten:
"n.	Chiropractic Services: Limited to the alignment of the spine and releasing of pressure by manipulation in accordance with the definitions in G.S. 90-143.  Maximum benefits for x-rays, manipulations, and modalities shall be two thousand dollars ($2,000) per fiscal year."

Requested by:  Senators Plyler, Perdue, Odom
STATE EMPLOYEE HEALTH BENEFIT PLAN/DIRECT PAYMENT OF LICENSED MARRIAGE AND FAMILY THERAPISTS
Sec. 7.28C.  (a)	G.S. 135-40.7A(c) reads as rewritten:
"(c)	Notwithstanding any other provision of this Part, provisions for benefits for necessary care and treatment of chemical dependency under this Part shall provide for benefit payments for the following providers of necessary care and treatment of chemical dependency:
(1)	The following units of a general hospital licensed under Article 5 of General Statutes Chapter 131E:
a.	Chemical dependency units in facilities licensed after October 1, 1984;
b.	Medical units;
c.	Psychiatric units; and
(2)	The following facilities licensed after July 1, 1984, under Article 2 of General Statutes Chapter 122C:
a.	Chemical dependency units in psychiatric hospitals;
b.	Chemical dependency hospitals;
c.	Residential chemical dependency treatment facilities;
d.	Social setting detoxification facilities or programs;
e.	Medical detoxification facilities or programs; and
(3)	Duly licensed physicians and duly licensed practicing psychologists, certified clinical social workers, licensed marriage and family therapists, certified clinical specialists in psychiatric and mental health nursing, and certified professionals working under the direct supervision of such physicians or psychologists in facilities described in (1) and (2) above and in day/night programs or outpatient treatment facilities licensed after July 1, 1984, under Article 2 of General Statutes Chapter 122C.
Provided, however, that nothing in this subsection shall prohibit the Plan from requiring the most cost effective treatment setting to be utilized by the person undergoing necessary care and treatment for chemical dependency."
(b)	G.S. 135-40.7B(c) reads as rewritten:
"(c)	Notwithstanding any other provisions of this Part, the following providers are authorized to provide necessary care and treatment for mental illness under this section:
(1)	Licensed psychiatrists;
(2)	Licensed or certified doctors of psychology;
(3)	Certified clinical social workers;
(3b)	Licensed marriage and family therapists;
(4)	Psychiatric nurses;
(5)	Other social workers under the direct employment and supervision of a licensed psychiatrist or licensed doctor of psychology;
(6)	Psychological associates with a master's degree in psychology under the direct employment and supervision of a licensed psychiatrist or licensed or certified doctor of psychology;
(7)	Licensed psychiatric hospitals and licensed general hospitals providing psychiatric treatment programs; and
(8)	Certified residential treatment facilities, community mental health centers, and partial hospitalization facilities."
(c) This section becomes effective July 1, 1995, and applies to claims for payment or reimbursement for services rendered on or after that date.

PART 8. GENERAL ASSEMBLY

Requested by:  Senator Warren
CONFIDENTIALITY OF DOCUMENTS USED TO PREPARE FISCAL NOTES
Sec. 8.2.  Effective upon ratification, 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:  Senator Martin of Pitt
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; and
(8)	To ensure program evaluation and accountability for all workforce development programs and to create a comprehensive statewide focus on workforce development
(d) The Commission shall make an interim report on its progress to the 1995 General Assembly, the Joint Legislative Commission on Governmental Operations, and the Joint Legislative Education Oversight Committee not later than May 1, 1996, and shall present its final report of findings and recommendations to the 1997 General Assembly, the Joint Legislative Commission on Governmental Operations, and the Joint Legislative Education Oversight Committee, 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 expanded, 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 10. OFFICE OF STATE BUDGET AND MANAGEMENT

Requested by:  Senator Warren
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.

Requested by:  Senators Perdue, Martin of Pitt, Plyler, Odom, Rand
OSBM STUDY STATE-OWNED AIRCRAFT MODIFIED
Sec. 10.1.  Section 10.4 of Chapter 324 of the 1995 Session Laws reads as rewritten:
"Sec. 10.4.  The Office of State Budget and Management shall study the use of State-owned aircraft, including associated and ancillary equipment such as aerial photographic cameras and related instrumentation, and shall report the results of its study to the Joint Legislative Commission on Governmental Operations on or before April 1, 1996.  The study shall include consideration of the following:
(1)	For each Department, the number and type of aircraft, the number of pilots, and the number and type of support personnel for aircraft.
(2)	For each Department, the budget for aircraft, the source of funding for aircraft, the number of hours the aircraft is available, and the number of hours the aircraft is used.
(3)	The feasibility and desirability of consolidating any or all State-owned aircraft operations.
(4)	The feasibility and desirability of sharing of aircraft by Departments.
(5)	The feasibility and desirability of Departments' contracting for aircraft services rather than owning their own aircraft.
(6)	Compilation and review of Departments' policies regarding authorized passengers on the aircraft and which Departmental personnel is responsible for determining which passengers are authorized."

PART 11. DEPARTMENT OF ADMINISTRATION

Requested by:   Senator Warren
COST SHARING OF THE PERSONNEL MANAGEMENT INFORMATION SYSTEM
Sec. 11.   The Office of State Personnel shall develop a proposed 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:  Senator Warren
WORKERS' COMPENSATION COST CONTAINMENT PROGRAM/STUDY
Sec. 11.1.  The Office of State Budget and Management shall develop a plan for a workers' compensation cost containment program designed to reduce the cost to State government of workers' compensation claims filed by State employees.  The Office of State Budget and Management shall consult with the Office of State Personnel in developing the plan.   The plan shall include recommendations regarding all of the following: an appropriate process of competitive bidding, the feasibility of having a third-party administrator to manage claims processing, the services that would be provided by a third-party administrator including the determination of compensability and related questions, incident reporting analysis, incident investigation, medical case management, disability management, and information management.  The plan shall also include recommendations regarding the reimbursement of a third-party administrator.  The plan shall further be based on the premise that lapsed salary funds from the salary accounts of State agencies shall not be used 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 shall submit the plan to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division.

Requested by:  Senator Warren
GOVERNOR'S ADVOCACY COUNCIL FOR PERSONS WITH DISABILITIES
Sec. 11.2.  The Department of Human Resources shall continue to provide the current office space for the four regional offices of the Governor's Advocacy Council for Persons with Disabilities or office space that is comparable to that now used by the Council.

Requested by:   Senator Plyler
CONSOLIDATE GRANTS PROCESS FOR CENTERS FOR VICTIMS OF DOMESTIC VIOLENCE
Sec. 11.3.(a) Federal and State grant funds are available for centers for victims of domestic violence and the North Carolina Coalition Against Domestic Violence.  However, an applicant must apply to the Department of Human Resources to obtain a grant funded by federal funds and to the Council on the Status of Women, Department of Administration, to obtain a grant funded by State funds.  To eliminate the needless duplication of time, effort, and review, the Department of Administration and the Department of Human Resources shall develop and implement a consolidated grant application form and process for centers for victims of domestic violence and the North Carolina Coalition Against Domestic Violence.  The forms and process shall be developed and implemented by July 1, 1996.
(b) The Fiscal Research Division shall study the feasibility of consolidating the function of administering the federal and State grants for centers for victims of domestic violence and the North Carolina Coalition Against Domestic Violence and shall report to the 1995 General Assembly, 1996 Regular Session, regarding its findings and recommendations.

PART 11A. DEPARTMENT OF INSURANCE

Requested by:  Senator Warren
DECREASE CONSUMER PROTECTION FUND
Sec. 11A. (a) G.S. 58-2-215 reads as rewritten:
"§ 58-2-215.  Consumer Protection Fund.
(a)	A special fund is created in the Office of the State Treasurer, to be known as the Department of Insurance Consumer Protection Fund. The Fund shall be placed in an interest bearing account and any interest or other income derived from the Fund shall be credited to the Fund. Moneys in the Fund shall only be spent pursuant to warrants drawn by the Commissioner on the Fund through the State Treasurer. The Fund shall be subject to the provisions of the Executive Budget Act; except that the provisions of Article 3C of Chapter 143 of the General Statutes do not apply to subdivision (b)(1) of this section.
(b)	All moneys credited to the Fund shall be used only to pay the following expenses incurred by the Department:
(1)	For the purpose of retaining outside actuarial and economic consultants, legal counsel, and court reporting services in the review and analysis of rate filings, in conducting all hearings, and through any final adjudication.
(2)	In connection with any delinquency proceeding under Article 30 of this Chapter, for the purpose of locating and recovering the assets of or any other obligations or liabilities owed to or due an insurer that has been placed under such proceeding.
(3)	In connection with any civil litigation, other than under Chapter 150B of the General Statutes or any appeal from an order of the Commissioner or his deputies, that is commenced against the Commissioner or his deputies and that arises out of the performance of their official duties, for the purpose of retaining outside consultants, legal counsel, and court reporting services to defend such litigation.
(c)	Moneys appropriated by the General Assembly shall be deposited in the Fund and shall become a part of the continuation budget of the Department of Insurance. Such continuation budget amount shall equal the actual expenditures drawn from the Fund during the prior fiscal year plus the official inflation rate designated by the Director of the Budget in the preparation of the State Budget for each ensuing fiscal year; provided that if interest income on the Fund exceeds the amount yielded by the application of the official inflation rate, such continuation budget amount shall be the actual expenditures drawn from the Fund, except that the appropriation for the 1995-96 fiscal year shall not exceed the sum of seven hundred fifty thousand dollars ($750,000) and for the 1996-97 fiscal year shall not exceed the sum of two hundred fifty thousand dollars ($250,000). In the event the amount in the Fund exceeds two hundred fifty thousand dollars ($250,000) at the end of any fiscal year, beginning with the 1995-96 fiscal year, such excess shall revert to the General Fund.
	."
(b) Section 31 of Chapter 1069 of the 1989 Session Laws, Regular Session 1990, reads as rewritten:
"Sec. 31.  Section 23 of this act does not apply to the 1990 automobile rate filing made pursuant to Article 36 of Chapter 58 of the General Statutes.  Section 27 of this act shall expire at the end of the 1993-94 fiscal year and Section 28 shall become effective upon the expiration of Section 27.  "

Requested by:  Senator Warren
AUDITS OF STATISTICAL AGENCIES AND RATING ORGANIZATIONS TO VERIFY THE COLLECTION OF DATA
Sec. 11A.1. Of the funds appropriated to the Department of Insurance for the 1995-96 fiscal year, the sum of seven hundred seventy-five thousand dollars ($775,000) shall be used to retain professional services to conduct audits required to verify the collection of data related to private passenger automobile insurance by statistical agencies and rating organizations or their member companies.  The Department of Insurance shall implement a bidding procedure for contracting with professionals similar to the competitive bidding procedure under Article 3 of Chapter 143 of the General Statutes.

PART 12. CULTURAL RESOURCES

Requested by:  Senator Warren
REPEAL CAPITOL PRESERVATION COMMISSION
Sec. 12.  (a) Chapter 682 of the 1993 Session Laws is repealed.
(b) G.S. 121-9 is amended by adding a new subsection, which reenacts the law as it existed prior to July 1, 1995:
"( h)	Preservation and Custodial Care of State Capitol. – The rotunda, corridors, and stairways of the first floor of the State Capitol and all portions of the second, third, and loft floors of the said building shall be placed in the custody of the Department of Cultural Resources; and the Department shall, subject to the availability of funds for the purpose, care for and administer these areas for the edification of present and future generations. The aforesaid areas shall be preserved as historic shrines and shall be maintained insofar as practicable as they shall appear following the restoration of the Capitol. The Department of Cultural Resources is authorized to deny the use of the legislative chambers for meetings in order that they, with their historic furnishings, may be better preserved for posterity; provided, however, that the General Assembly may hold therein such sessions as it may by resolution deem proper.
The Department of Cultural Resources is hereby entrusted with the responsibilities herein specified as being the agency with the experience best qualified to preserve and administer historic properties in a suitable manner. However, for the purposes of carrying out the provisions of this section, it is hereby directed that such cooperation and assistance shall be made available to the said Department of Cultural Resources and such labor supplied, as may be feasible, by the Department of Administration.
The offices and working areas of the first floor as well as all washrooms and the exterior of the Capitol shall remain under the jurisdiction of the Department of Administration: Provided, however, that the Department of Administration shall seek the advice of the Department of Cultural Resources in matters relating to any alteration, renovation, and furnishing of said offices and areas."
(c)	This section is effective upon ratification.

Requested by:  Senator Warren
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:  Senator Warren
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:  Senator Warren
HISTORIC SITES REPAIRS AND RENOVATIONS FUNDS
Sec. 12.3.  (a) 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 and other historic sites.
(b) There is established the Historic Sites Repairs and Renovations Review Committee.  The Committee shall consist of the following members:  The three co-chairs of the Senate Appropriations and Base Budget Committee and the three co-chairs of the House of Representatives Appropriations Committee.  The Office of State Budget and Management shall submit its proposal for the use of funds from the Repairs and Renovations Fund for historic sites to the Committee before submitting the proposal to the Joint Legislative Commission on Governmental Operations in accordance with Section 5.3 of Chapter 324 of the 1995 Session Laws.

Requested by:  Senator Warren
GRANTS TO PUBLIC LIBRARIES
Sec. 12.4.  (a)	Funds in the amount of three million dollars ($3,000,000) appropriated in this act to the Department of Cultural Resources for the 1995-96 fiscal year shall be used as grants-in-aid for public libraries to assist in the purchase of books or for construction costs of public libraries and public school libraries.  The Secretary of Cultural Resources shall award grants authorized by this section.
(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.

Requested by:  Senator Warren
GRANTS TO LOCAL MUSEUMS
Sec. 12.5.  (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 used as grants-in-aid for local museums.  The Secretary of Cultural Resources may require a match by non-State funds as deemed appropriate.
(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.

Requested by:  Senator Warren
ROANOKE ISLAND COMMISSION
Sec. 12.6.  (a)	G.S. 143B-131.1 reads as rewritten:
"§ 143B-131.1.  Commission established.
There is established the Roanoke Island Commission. The Commission shall be an independent commission, but shall be located within the Department of Cultural Resources for historic resource management, organizational, and budgetary purposes."
(b) G.S. 143B-131.2 reads as rewritten:
"§ 143B-131.2.  Roanoke Island Commission –Purpose, powers, and duties.
(a)	The Commission is created to combine various existing entities in the spirit of cooperation for a cohesive body to protect, preserve, develop, and interpret the historical and cultural assets of Roanoke Island.  The Commission is further created to operate and administer the Elizabeth II State Historic Site and Visitor Center, the Elizabeth II, Ice Plant Island, and all other properties under the administration of the Department of Cultural Resources located on Roanoke Island having historical significance to the State of North Carolina, Dare County, or the Town of Manteo, except as otherwise determined by the Commission.
(b)	The Commission shall have the following powers and duties:
(1)	To advise the Secretary of Transportation and adopt rules on matters pertaining to, affecting, and encouraging restoration, preservation, and enhancement of the appearance, maintenance, and aesthetic quality of U.S. Highway 64/264 and N.C. 400 travel corridors on Roanoke Island and the grounds on Ice Plant Island.
(2)	To operate the Elizabeth II State Historic Site and Visitor Center and the Elizabeth II as permanent memorials commemorating the Roanoke Voyages, 1584-1587.
(3)	To supervise the development of Ice Plant Island and to manage future facilities.
(4)	To advise the Secretary of the Department of Cultural Resources on matters pertinent to historical and cultural events on Roanoke Island.
(5)	With the assistance of the Department of Cultural Resources, to identify, preserve, and protect properties located on Roanoke Island having historical significance to the State of North Carolina, Dare County, or the Town of Manteo consistent with applicable State laws and rules.
(6)	To establish and collect a charge for admission to any property or event operated by the Commission.
(7)	To solicit and accept gifts, grants, and donations.
(8)	To cooperate with the Secretary and Department of Cultural Resources, the Secretary and Department of Transportation, the Secretary and Department of Environment, Health, and Natural Resources, and other governmental agencies, officials, and entities, and provide them with assistance and advice.
(9)	To adopt and enforce such bylaws, rules, and guidelines that the Commission deems to be reasonably necessary in order to carry out its powers and duties.  Chapter 150B of the General Statutes does not apply to the adoption of rules by the Commission.
(10)	To establish and maintain a " separate fund composed of moneys which may come into its hands from gifts, donations, grants, or bequests, which funds will be used by the Commission for purposes of carrying out its duties and purposes herein set forth. The Commission may also establish a reserve fund to be maintained and used for contingencies and emergencies.
(11)	By cooperative arrangement with other agencies, groups, individuals, and other entities, to coordinate and schedule historical and cultural events on Roanoke Island.
(12) 	Make recommendations to the Secretary of Cultural Resources concerning personnel and budgetary matters. 
(13)	To acquire real and personal property by purchase, gift, bequest, devise, and exchange.
(14)	To administer the Roanoke Island Commission Fund and the Roanoke Island Commission Endowment Fund as provided in G.S. 143B-131.8.
	(15)	To procure supplies, services, and property as appropriate and to enter into contracts, leases, or other legal agreements consistent with State laws and Department rules to carry out the purposes of this Part and duties of the Commission."
(c)	Part 27A of Article 2 of Chapter 143B of the General Statutes is amended by adding the following sections:
"§ 143B-131.8.  Roanoke Island Commission Fund; Roanoke Island Commission Endowment Fund.
(a)	The Roanoke Island Commission Fund is established as a nonreverting Fund and shall be administered by the Roanoke Island Commission.  Seventy-five percent (75%) of the revenues collected from any property operated by the Roanoke Island Commission shall be credited to the Fund.  In addition, gifts, donations, grants, or bequests received by the Commission for the purpose of carrying out its duties and purposes may also be deposited in the Fund.
The funds in the Roanoke Island Commission Fund shall be used for the expenses of the Roanoke Island Commission and the operation and maintenance of properties operated by the Commission.
(b)	The Roanoke Island Commission Endowment Fund is established as a nonreverting Fund and shall be administered by the Commission.  Twenty-five percent (25%) of the revenue collected from any property operated by the Roanoke Island Commission shall be credited to the Fund.  Until July 1, 2000, the revenues credited to the Roanoke Island Commission Endowment Fund and the interest earned on the revenue shall be held in reserve to create the principal for the Fund.
On and after July 1, 2000, eighty percent (80%) of the interest generated by the principal in the Roanoke Island Commission Endowment Fund shall be used by the Roanoke Island Commission to carry out its duties and purposes as set out by this Part.  The Roanoke Island Commission may also use those interest funds for capital expenditures for the properties operated by the Commission.
"§ 143B-131.9.  Roanoke Island Commission staff.
The Commission shall appoint and fix the salary of an Executive Director to serve at its pleasure and may hire other employees.  Employees of the Commission who were transferred from the Department of Cultural Resources as of July 1, 1995, and who were subject to the State Personnel Act, Chapter 126 of the General Statutes, at the time of the transfer shall continue to be subject to that act.  Employees of the Commission who were transferred but were not subject to the State Personnel Act at the time of transfer are not subject to the State Personnel Act.  Employees of the Commission who were not transferred are not subject to the State Personnel Act unless the Commission designates the employee's position as subject to the State Personnel Act when the employee is hired.  Once designated, a position remains subject to the State Personnel Act unless exempted in accordance with that act.
"§ 143B-131.10.  Exceptions.
Notwithstanding G.S. 143-28, the following provisions do not apply to this Part:  G.S. 143-16.3 and G.S. 143-23."
(d)	The personnel, personal property, and unexpended balances of appropriations, allocations, or other funds for the Elizabeth II State Historic Site and Visitor Center, the Elizabeth II, and the Roanoke Island Commission are transferred from the Department of Cultural Resources to the Roanoke Island Commission.
(e)  This section is effective upon ratification.

PART 13. STATE BOARD OF ELECTIONS

Requested by:  Senator Warren
STATEWIDE COMPUTERIZED VOTER REGISTRATION
Sec. 13.2.  (a)	The State Board of Elections shall not encumber or expend any funds from the reserve fund created by Section 16(b) of Chapter 762 of the 1993 Session Laws prior to the adjournment sine die of the 1995 General Assembly, Regular Session.
(b)	To the extent that this section 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 prevails to the extent of the conflict.  Except to the extent of the conflict, Section 16 of Chapter 762 of the 1993 Session Laws remains in effect.

PART 15. COLLEGES AND UNIVERSITIES.

Requested by:  Senators Plexico, Winner
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:  Senators Plexico, Winner
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 three 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:  Senators Plexico, Winner, Kerr
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 masters 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:  Senators Plexico, Winner, Hoyle
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:  Senators Plexico, Winner, Warren
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:   Senators Plexico, Winner
STATE EDUCATION ASSISTANCE AUTHORITY/FEDERAL MATCHING FUNDS
Sec. 15.5. Funds appropriated in Chapter 324 of the 1995 Session Laws 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:  Senators Perdue, Plexico, Rand, Winner, Odom, Plyler
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:  Senators Plexico, Winner
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:  Senators Plexico, Winner
ALLIED HEALTH PROFESSIONS
Sec. 15.8.  Of the funds provided to the Board of Governors for expansion funding through receipts, the amount of one million seven hundred thousand dollars ($1,700,000) each fiscal year of the biennium shall be allocated each year for expansion of program offerings and enrollment for training of allied health professionals.

Requested by:  Senators Plexico, Winner
AHEC PRIMARY CARE
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 for the 1995-96 fiscal year and two million five hundred thousand dollars ($2,500,000) shall be allocated for the 1996-97 fiscal year for Area Health Education Centers for initiatives in primary care and training of mid-level practitioners.

Requested by:  Senators Odom, Perdue, Plyler, Plexico, Rand, Winner
SELECTION OF DISTINGUISHED PROFESSORS
Sec. 15.12.  G. S. 116-41.18 is amended by adding a new subsection to read:
"( a1)	No rule shall prevent the constituent institutions of The University of North Carolina from selecting holders of Distinguished Professorships from among existing faculty members or newly hired faculty members."

Requested by:  Senator Martin of Guilford
NORTH CAROLINA A & T STATE UNIVERSITY APPLIED MANUFACTURING AND EDUCATION CENTER
Sec. 15.13.  Funds in the amount of three million five hundred thousand dollars ($3,500,000) were appropriated in Section 6 of Chapter 561 of the 1993 Session Laws to the Board of Governors for the Applied Manufacturing and Education Center at North Carolina Agricultural and Technical State University.  The remainder of those funds may be used by North Carolina Agricultural and Technical State University for the 1995-96 fiscal year and for the 1996-97 fiscal year for capital, operating, and equipment expenses of the Piedmont Triad Center for Advanced Manufacturing.

Requested by:   Senator Perdue
OVERHEAD RECEIPTS
Sec. 15.14.  The General Assembly intends to complete the elimination of the use of overhead receipts derived from reimbursement of indirect costs on contracts and grants as an offset to General Fund appropriations for The University of North Carolina in fiscal year 1997-98, as stated in Section 2(a) of Chapter 936 of the l989 Session Laws.  The continuation budget prepared by the Director of the Budget for the 1997-99 biennium shall not include any overhead receipts as offsets to General Fund current operations appropriations for any of the constituent institutions of The University of North Carolina.

Requested by:   Senator Rand
ACADEMIC ENHANCEMENT FUNDS
Sec. 15.15.  (a) Notwithstanding G.S. 116-143, the Board of Trustees of a constituent institution designated as a Research University I campus of The University of North Carolina may increase tuition at the constituent institution by an amount not to exceed five hundred dollars ($500.00) per full-time student per regular term academic year.  All additional revenues derived from these tuition increases shall remain for use on that campus and are in addition to the operating budgets approved by the General Assembly.  If the Board of Trustees of an institution increases tuition, the chancellor must allocate a minimum of thirty-five percent (35%) of the funds provided by the tuition increase for need-based financial aid.  The balance of the funds may be allocated for faculty salaries or library budgets.
(b)	Notwithstanding G.S. 116-143, the Board of Trustees of a constituent institution of The University of North Carolina which has a professional school (law, medicine, dentistry, pharmacy, and veterinary medicine) or masters degree in Business Administration may increase tuition for students in the professional school by an amount not to exceed three thousand dollars ($3,000) per full-time nonresident student per regular term academic year or by an amount not to exceed five hundred dollars ($500.00) per full-time resident student per regular term academic year.  If the Board of Trustees of an institution increases tuition for students in a professional school, the funds provided by the increase shall remain on that campus and be used to enhance that professional school.  In no case shall a student attending a professional school be subject to a tuition increase allowable under this section greater than the amounts stated in this subsection.
(c)	Once a Board of Trustees decides to increase tuition at a constituent institution, the institution shall notify the Board of Governors, the Office of State Budget and Management, and the Fiscal Research Division of the amount of increase, additional receipts anticipated, and the allocation of the funds among various programs in a format prescribed by the Board of Governors of The University of North Carolina.

Requested by:   Senator Winner
UNC/UNIFORM REVERSION RATE
Sec. 15.16.  G.S. 116-30.3 reads as rewritten:
"§ 116-30.3.  Reversions.
(a)	Of the General Fund current operations appropriations credit balance remaining at the end of each fiscal year in each budget code of a special responsibility constituent institution, except for the budget code of the Area Health Education Centers of the University of North Carolina at Chapel Hill, any amount greater than two percent (2%) of the General Fund appropriation for that fiscal year may be carried forward by the institution to the next fiscal year and may be used for one-time expenditures that will not impose additional financial obligations on the State.  Of the General Fund current operations appropriations credit balance remaining in the budget code of the Area Health Education Centers of the University of North Carolina at Chapel Hill, any amount greater than one percent (1%) of the General Fund appropriation for that fiscal year may be carried forward in that budget code to the next fiscal year and may be used for one-time expenditures that will not impose additional financial obligations on the State. However, the amount carried forward under this section shall not exceed two and one-half percent (2 1/2%)  of the General Fund appropriation. The Director of the Budget, under the authority set forth in G.S. 143-25, shall establish the General Fund current operations credit balance remaining in each budget code of each institution.
	(b)	An institution shall cease to be a special responsibility constituent institution under the following circumstances:
(1)	An institution, other than the Area Health Education Centers of the University of North Carolina, does not revert at least two percent (2%) of its General Fund current operations credit balance remaining in each budget code of that institution, or
(2)	The Area Health Education Centers of the University of North Carolina at Chapel Hill does not revert at least one percent (1%) of its General Fund current operations credit balance remaining in its budget code.
However, if the Board of Governors finds that the low reversion rate is due to adverse and unforeseen conditions, the Board may allow the institution to remain a special responsibility constituent institution for one year to come into conformity with this section. The Board may make this exception only one time for any special responsibility constituent institution, and shall report these exceptions to the Joint Legislative Commission on Governmental Operations."

Requested by:   Senators Plexico, Winner, and Hoyle
UNC MISSION
Sec. 15.17.  G.S. 116-1 reads as rewritten:
"§ 116-1. Purpose.
(a)	In order to foster the development of a well-planned and coordinated system of higher education, to improve the quality of education, to extend its benefits and to encourage an economical use of the State's resources, the University of North Carolina is hereby redefined in accordance with the provisions of this Article.
(b)	The University of North Carolina is a public, multicampus university dedicated to the service of North Carolina and its people.  It encompasses the 16 diverse constituent institutions and other educational, research, and public service organizations.  Each shares in the overall mission of the university.  That mission is to discover, create, transmit, and apply knowledge to address the needs of individuals and society.  This mission is accomplished through instruction, which communicates the knowledge and values and imparts the skills necessary for individuals to lead responsible, productive, and personally satisfying lives; through research, scholarship, and creative activities, which advance knowledge and enhance the educational process; and through public service, which contributes to the solution of societal problems and enriches the quality of life in the State.  In the fulfillment of this mission, the university shall seek an efficient use of available resources to ensure the highest quality in its service to the citizens of the State.
Teaching and learning constitute the primary service that the university renders to society.  Teaching, or instruction, is the primary responsibility of each of the constituent institutions.  The relative importance of research and public service, which enhance teaching and learning, varies among the constituent institutions, depending on their overall missions."

Requested by:   Senator Plexico
UNC-ASHEVILLE/KELLOGG CENTER FUNDS
Sec. 15.18. Of the funds appropriated to the Board of Governors of The University of North Carolina for capital improvements the sum of five hundred thousand dollars ($500,000) for the 1995-96 fiscal year shall be used for the Kellogg Center at the University of North Carolina at Asheville as a repository of mountain crafts.

Requested by:  Senators Kerr, Winner, Plexico
NCSU FORESTRY GENETICIST FUNDS
Sec. 15.19.  Of the funds provided through receipts to the Board of Governors of The University of North Carolina the sum of one hundred fifty thousand dollars ($150,000) for the 1995-96 fiscal year and the sum of one hundred fifty thousand dollars ($150,000) for the 1996-97 fiscal year shall be used for North Carolina State University to establish and maintain a forestry geneticist position and support services dedicated to the development and use of the best genetic stock from the North Carolina Christmas tree industry.

Requested by:   Senator Plexico
UNC TELEVISION TOWER REPAIR FUNDS
Sec. 15.20. Of the funds allocated to the Board of Governors of The University of North Carolina in Section 5.3 of Chapter 324 of the 1995 Session Laws for the 1995-96 fiscal year, at least five hundred thousand dollars ($500,000) shall be used to repair the University of North Carolina television tower in Columbia.

PART 16. COMMUNITY COLLEGES

Requested by:  Senators Plexico, Winner
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:  Senators Plexico, Winner
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).

Requested by:  Senators Plexico, Winner
MISSION OF THE COMMUNITY COLLEGE SYSTEM
Sec. 16.7.  The fundamental mission of the North Carolina Community College System is to provide job training programs in the State; therefore, the General Assembly hereby designates the North Carolina Community College System as the presumptive deliverer of job training programs in the State.
If the United States Congress allocates funds under the Job Training Partnership Act in a block grant, it is the intent of the General Assembly to transfer the responsibility for administering those funds from the Department of Commerce to the Department of Community Colleges.

Requested by: Senator Perdue
COORDINATION OF EFFORTS TO COORDINATE JOB TRAINING PROGRAMS
Sec. 16.8.  The Governor shall direct all State agencies to compile a list of all State and federal funds in their budgets for workforce preparedness and to prepare a plan for cooperating with the Community College System in its mission as the presumptive deliverer of job training programs in the State.  The Governor shall report on the information received from State agencies to the Joint Legislative Education Oversight Committee prior to March 1, 1996.

Requested by:  Senator Perdue
COMPREHENSIVE PLAN FOR DELIVERY OF JOB TRAINING
Sec. 16.9.  The Community College System is designated the presumptive deliverer of job training.  The Community College System shall develop strategies for cooperating with other State State agencies in the performance of this role.  The State Board of Community Colleges shall review the facility and equipment needs of the Community College System.  The State Board shall submit to the State Education Cabinet for its review prior to March 1, 1996, its report on those needs and on its strategies for cooperating with other State agencies to be the presumptive deliverer of job training programs.  After that review, the State Board shall report the results of its study to the Joint Legislative Education Oversight Committee by March 15, 1996.

PART 17.  PUBLIC SCHOOLS

Requested by:  Senators Winner, Plexico
EXCEPTIONAL CHILDREN FUNDS
Sec. 17.  (a) The funds appropriated for exceptional children in Chapter 324 of the 1995 Session Laws 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.
(3)	Each local school administrative unit in which more than twelve and five-tenths percent (12.5%) of the 1994-95 actual average daily membership are identified as exceptional children other than academically gifted children shall receive $427.35 per child in excess of the twelve and five-tenths percent (12.5%).  These funds shall be used only for nonrecurring expenditures and other expenditures for exceptional children other than academically gifted children that do not impose future obligations on the State or local governments.
The dollar amounts allocated under 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 enacted, the State Board of Education shall transfer part of these funds 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 (i) the current process and criteria for designating students as children with special needs and (ii) the adequacy of State funding for children with special needs.  The State Board shall report the results of its evaluation and review to the Joint Legislative Education Oversight Committee prior to March 15, 1996.

Requested by:  Senator Winner, Plexico
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 forty-four million seven hundred eighty-three thousand eight hundred nine dollars ($44,783,809) for the 1995-96 fiscal year and the sum of forty-four million seven hundred eighty-three thousand eight hundred nine dollars ($44,783,809) 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;  Provided, however, local school administrative units may also use up to ten percent (10%) of these funds for salary supplements for instructional personnel and instructional support personnel.
(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)	For the 1995-96 fiscal year, "local current expense funds" means the most recent county current expense appropriations to public schools, as reported by counties in the annual county financial information report to the State Treasurer.  For the 1996-97 fiscal year, "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)	For the 1995-96 fiscal year, "State average current expense appropriations per student" means the most recent State total of county current expense appropriations to public schools, as reported by counties in the annual county financial information report to the State Treasurer.  For the 1996-97 fiscal year, "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.
(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 current expense appropriation of the county for the current year is less than ninety-five percent (95%) of the average of the local current expense appropriations for the three prior fiscal years; 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 3,150 students and (ii) to each county school administrative unit with an average daily membership of from 3,150 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 3,150 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 current expense appropriation of the county for the current year is less than ninety-five percent (95%) of the average of the local current expense appropriations for the three prior fiscal years; 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)	Phase-out provision. – If a local school administrative unit becomes ineligible for funding under this formula solely because of an increase in population or an increase in the county adjusted property tax base per student of the county in which the local school administrative unit is located, funding for that unit shall be phased-out over a two year period.  For the first year of ineligibility, the unit shall receive the same amount it received for the prior fiscal year.  For the second year of ineligibility, it shall receive half of that amount.
(d)	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)	For the 1995-96 fiscal year, "local current expense funds" means the most recent county current expense appropriations to public schools, as reported by counties in the annual county financial information report to the State Treasurer.  For the 1996-97 fiscal year, "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.
(e)  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:  Senators Winner, Plexico
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 $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:   Senators Winner, Plexico
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:   Senators Winner, Plexico
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:  Senators Winner, Plexico
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 ($10,665,220) for the 1996-97 fiscal year to local school administrative units.  Of these funds:
(1)	The sum of $2,917,575 for the 1995-96 fiscal year and the sum of $2,917,575 for the 1996-97 fiscal year shall be used for textbooks;
(2)	The sum of $6,400,861 for the 1995-96 fiscal year and the sum of $7,747,645 for the 1996-97 fiscal year shall be used to reduce the funded allotment ratio to one teacher for every 23 students in first grade.

Requested by:  Senators Winner, Plexico
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 on such earlier date as the State Board of Education may determine is appropriate.  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 remain a part of the Department of Public Instruction but shall be funded solely by receipts from local boards of education and from other non-State sources. If no such funds are available for a Technical Assistance Center, that Center shall be abolished or consolidated with another Center by the State Board.  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."

Requested by:  Senators Winner, Plexico
ALTERNATIVE LEARNING PROGRAMS
Sec. 17.9.  (a) G.S. 115C-238.41(c)(3)d. reads as rewritten:
"d.	Alternative Learning Program Model. – An Alternative Learning Program is a program that serves students at any level, serves suspended or expelled students, serves students whose learning styles are better served in an alternative program, or is designed to use multiple strategies, which serve students in the standard classroom or provide individualized programs outside of a standard classroom setting in a caring atmosphere in which students learn the skills necessary to redirect their lives and return to a standard classroom setting. A program should maintain State standards and may include smaller classes and lower student/teacher ratios, school-to-work transition activities, modification of curriculum and instruction to meet individual needs, flexible scheduling, and necessary academic, vocational, and support services for students and their families.  A program also may be provided under contract with a local, private, nonprofit 501(c)(3) corporation. Services also may include appropriate measures to correct disruptive behavior, teach responsibility, good citizenship, and respect for rules and authority.
	An alternative learning program should have a well-defined mission, offer appropriate educational opportunities, and hold high expectations for staff and students. The goals of the program should target reducing school dropout rates through improved student attendance, behavior, and educational achievement. When appropriate, programs should increase successful school-to-work transitions for students through educationally linked job internships, mentored job shadowing experiences, and the development of personalized education and career plans for participating students."
(b) G.S. 115C-238.41(c) is amended by adding a new subdivision to read:
"(8)	The process to be followed if students may be referred and placed on an involuntary basis into alternative learning programs in connection with suspension or expulsion.  This process shall be based on model guidelines developed by the State Board of Education."
(c)	G.S. 115C-238.43 reads as rewritten:
"§ 115C-238.43.  Award of grants.
	(a)	In selecting grant recipients, the State Board shall consider (i) the recommendations of the Superintendent, (ii) the geographic location of the applicants, and (iii) the demographic profile of the applicants.  After considering these factors, the State Board shall give priority to grant applications that will serve areas that have a high incidence of juvenile crime and that propose different approaches that can serve as models for other communities.
The State Board shall select the grant recipients prior to July 15, 1994, for local programs that will be in operation at the beginning of the 1994-95 school year.  The State Board shall select the grant recipients prior to October 1, 1994, for local programs that will be in operation after the beginning of the 1994-95 school year.
(b)	Notwithstanding subsection (a) of this section, beginning with grant recipients selected for the 1995-96 school year, in awarding grants for alternative learning programs, the State Board shall give preference to applications from underserved areas or areas with high incidences of juvenile crime."
(d) G.S. 115C-238.47 reads as rewritten:
"§ 115C-238.47.  Program evaluation; reporting requirements.
(a)	The State Board of Education shall develop and implement an evaluation system that will assess the efficiency and effectiveness of the Intervention/Prevention Grant Program.  The State Board shall design this system to:
(1)	Provide information to local program administrators and teachers, the State Board, and to the General Assembly on how to improve and refine the programs;
(2)	Enable local program administrators and teachers, the State Board, and the General Assembly to assess the overall quality, efficiency, and impact of the existing programs;
(3)	Enable the State Board and the General Assembly to determine whether to modify the Intervention/Prevention Grant Program; 
(4)	Provide a detailed fiscal analysis of how State funds for these programs were used; and
(5)	Evaluate over a five-year period, beginning with the 1995-96 school year, the success of, the quality of educational opportunities that are offered in, and the effectiveness of alternative learning programs in the public schools.
(a1)	Before its annual report on February 15, 1996, and annually thereafter, the Board shall provide an opportunity for local program administrators, and particularly alternative learning program administrators and educators, to comment on the evaluation system.  The Board shall consider these comments in any proposed modification to the system.
(b)	The State Board of Education shall report to the General Assembly and the Joint Legislative Education Oversight Committee by May 15, 1994, on its progress in developing the evaluation system and in developing and implementing the program.  It shall report prior to February 1, 1995, on the evaluation system and on program implementation.  The State Board of Education shall present an annual report on February 15, 1996, and annually thereafter to the General Assembly and to the Joint Legislative Education Oversight Committee on (i) the implementation of the program, (ii) the results of the program evaluation, (iii) how the funds appropriated by the General Assembly for the program are being used, (iv) additional funds required to implement the program, (v) any necessary modifications to the program, and (vi) comments received from local program administrators, and particularly alternative learning program administrators and educators, concerning the evaluation system and the program generally."
(e) The State Board of Education shall convene an Alternative Educators Planning Group of up to 15 outstanding practicing alternative school educators so that they may define the needs for technical assistance and training for alternative school educators and determine how to best meet those needs.  The educators shall represent the geographic, racial, and gender diversity of the State and shall include administrators, teachers, and counselors.  The State Board shall solicit the recommendations of alternative school educators to determine the membership of the group.  The educators shall elect a chairperson from among the group and shall determine a meeting schedule to suit their needs.  The State Board shall provide meeting space and clerical assistance.  The Planning Group shall report the plan for service to the State Board of Education and the Joint Legislative Education Oversight Committee no later than February 1, 1996, at which time the Planning Group shall terminate, though nothing in this act shall prevent the group from continuing to meet on a voluntary basis.  Members of the Alternative Educators Planning Group shall receive per diem, subsistence, and travel allowances in accordance with G.S. 138-5 or G.S. 138-6, as appropriate.
Based on the technical assistance and training needs identified by the Alternative Educators Planning Group, the State Board of Education shall coordinate the efforts of its specialists and, to the extent possible, of specialists in other public and private agencies to provide coordinated assistance to alternative learning programs in local school administrative units.  The specialists should include, but are not limited to, those in the areas of dropout prevention, drug abuse prevention, in-school suspension, and children with special needs.
(f)  The State Board of Education shall study the issue of referral and placement of students into alternative learning programs and shall develop model guidelines that local school administrative units may use for the referral and placement of students into alternative learning programs.  In developing these guidelines, the Board shall consider the different methods of referral, whether placement in the programs is voluntary or mandatory, and any due process or other legal issues that may apply.  In developing these guidelines, the Board shall consult with the Alternative Educators Planning Group created in subsection (e) of this section, shall solicit comments from other alternative school educators in the State, and may consult with representatives of the North Carolina School Boards Association and other professional education organizations.  The Board shall develop and disseminate the model guidelines to local school boards no later than February 1, 1996.  The local school boards shall then disseminate these guidelines to their alternative learning programs.
(g)  The funds appropriated in this act for the 1995-96 fiscal year to State Aid to Local School Administrative Units for alternative learning programs shall be used for start-up costs for new or expanded programs to implement alternative learning programs. These funds shall be available to a local school administrative unit for one year only.
Of these funds, up to two hundred thousand dollars ($200,000) may be used by the State Board of Education to implement this section, including the evaluation of alternative learning programs.
(h)  The funds appropriated in this act for the 1996-97 fiscal year to State Aid to Local School Administrative Units for alternative learning programs shall be used by the State Board to increase the Alternative Schools/At-Risk Student Allotment.
Of these funds, up to two hundred thousand dollars ($200,000) may be used by the State Board of Education to implement this section, including the evaluation of alternative learning programs.
(i)  The State Board of Education, working with local school administrative units, shall develop a plan to provide access to alternative schools for secondary students in all local school administrative units.  In developing the plan, the State Board shall consider redirecting existing funds for drop-out prevention, including federal funds, intervention/prevention grant funds, and other State funds.

Requested by:  Senators Winner, Plexico
SCHOOL-BASED INCENTIVE AWARD FUNDS
Sec. 17.10. (a) The State Board of Education shall use funds appropriated for the 1995-96 fiscal year for school-based awards to establish a school-based incentive award pilot program in up to 10 local school administrative units.  The State Board of Education may include all or part of the schools in a local school administrative unit.
(b) The State Board shall set goals for individual schools in local school administrative units participating in the pilot program.  Individual schools that exceed those goals shall receive incentive grants in amounts set by the State Board.
A school may use these incentive funds in accordance with a plan that has been:
(1)	Developed by the school improvement team;
(2)	Submitted to the principal, assistant principals, instructional personnel, instructional support personnel, and teacher assistants assigned to that school for their review and vote in the same manner that a school improvement plan is approved under G.S. 115C-238.3(b1); and
(3)	Approved by the local board of education.
The local board of education shall approve the plan developed by the school unless the plan involves expenditures of funds that are not for a public purpose or that are otherwise unlawful.
(c) The State Board of Education shall report plans for expanding the School-Based Award Program on a statewide basis to the Joint Legislative Education Oversight Committee by January 15, 1996.

Requested by:  Senators Winner, Plexico
FUNDS FOR NATIONAL BOARD FOR PROFESSIONAL TEACHING STANDARDS
Sec. 17.11. The National Board for Professional Teaching Standards (NBPTS) was established in 1987 as an independent, nonprofit organization to establish high standards for teachers' knowledge and performance and for development and operation of a national voluntary system to assess and certify teachers who meet those standards.  In order to apply for the NBPTS certification process, teachers must have three years or more of teaching experience, be currently teaching, have graduated from an accredited college or university, and hold a valid State teaching license.  Upon successful completion of a year-long process of developing a portfolio of student work and videotapes of teaching/learning activities for NBPTS review and then participating in NBPTS assessment center simulation exercises, including performance-based activities and a content knowledge examination, teachers may become NBPTS-certified.
Of the funds appropriated to the Department of Public Instruction in this act, the sum of:
(1)	Two hundred thirty thousand dollars ($230,000) for the 1995-96 fiscal year shall be used to pay for the National Board for Professional Teaching Standards (NBPTS) participation fee and for up to three days of approved paid leave for teachers participating in the NBPTS program during the 1995-96 school year for State-paid teachers who (i) have completed three years of teaching in North Carolina schools operated by local boards of education, the Department of Human Resources, the Department of Correction, or The University of North Carolina, or affiliated with The University of North Carolina, prior to application for NBPTS certification, and (ii) who have not previously received State funds for participating in any certification area in the NBPTS program.  Teachers participating in the program shall take paid leave only with the approval of their supervisors.
		A teacher for whom the State pays the participation fee (i) who does not complete the process or (ii) who completes the process but does not teach in a North Carolina public school for at least one year after completing the process, shall repay the certification fee to the State.   Repayment is not required if the process is not completed or the teacher fails to teach for one year due to the death or disability of the teacher or other extenuating circumstances as may be recognized by the State Board.
(2)	Two hundred forty-five thousand five hundred eighty-two dollars ($245,582) shall be used for an annual bonus of four percent (4%) of the teacher's State-paid salary for the 10-month school year for State-paid teachers who (i) completed three years of teaching in North Carolina schools operated by local boards of education, the Department of Human Resources, the Department of Correction, or The University of North Carolina prior to application for NBPTS certification and (ii) complete the NBPTS certification process.  The bonus for each fiscal year shall be paid at the end of each full school year that the teacher teaches full-time in a North Carolina school operated by local boards of education, the Department of Human Resources, the Department of Correction, or The University of North Carolina.  Teachers shall continue this bonus as long as they retain NBPTS certification.

Requested by:  Senators Winner, Plexico
FUNDS TO REDUCE CLASS SIZE IN GRADE 1
Sec. 17.12. The funds appropriated in this act to reduce class size in first grade shall be allocated by the State Board of Education to local school administrative units on the basis of one teacher for every 23 students in first grade.  Local school administrative units shall use these funds (i) to reduce class size in first grade to 23 or fewer students or (ii) to hire reading teachers within kindergarten through third grade or otherwise reduce the student-teacher ratio within kindergarten through third grade.
For the purpose of calculating the maximum allowable class size for first grade, the ratio of teachers to students shall be 1 to 26.

Requested by:  Senators Albertson, Winner, Plexico
TEACHER VACATION LEAVE FOR ADOPTIVE PARENTS
Sec. 17.13.  G.S. 115C-302 is amended by adding a new subsection to read:
"( f)	A teacher may use annual leave, personal leave, or leave without pay to care for a newborn child or for a child placed with the teacher for adoption or foster care.  The leave may be for consecutive workdays during the first 12 months after the date of birth or placement of the child, unless the the teacher and local board of education agree otherwise.
The total of all such leave time shall be no more than 12 weeks."

Requested by:  Senator Perdue
CONTINUE MORATORIUM ALGEBRA I RULE
Sec. 17.14. Section 3 of Chapter 371 of the 1995 Session Laws reads as rewritten:
"Sec. 3.  This act is effective upon ratification."

Requested by:  Senators Winner, Plexico
RESERVE FOR EDUCATION PURPOSES/USES OF FUNDS
Sec. 17.15.  The Director of the Budget shall allocate funds transferred to the Reserve for Education Purposes pursuant to Section 27.10A of this act as follows:
(1)	Two-thirds of the funds shall be allocated to the State Board of Education.   These funds shall be allocated by the State Board of Education to the credit of local school administrative units for textbooks and school technology.
(2)	One-third of the funds shall be allocated to the Department of Community Colleges.  The State Board of Community Colleges shall allocate these funds to community colleges for equipment and technology.

Requested by:  Senator Perdue
PUBLIC SCHOOL PLAN
Sec. 17.16.  The State Board of Education shall develop a plan to coordinate its vocational education and job-training efforts with the Community College System.  The plan shall include a review of the public schools' facility and equipment needs specifically related to vocational education and job training and an outline of necessary modifications to existing public school policies.  The State Board shall submit the results of its study for review to the State Education Cabinet.  After that review, the State Board shall report the results of its study to the Joint Legislative Education Oversight Committee by March 1, 1996.

PART 18. DEPARTMENT OF TRANSPORTATION

Requested by:  Senator Hoyle
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:  Senator Hoyle
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:  Senator Hoyle
DEPARTMENT OF TRANSPORTATION TO PROVIDE CONSTRUCTION AND MAINTENANCE SERVICES AT THE GOVERNOR'S WESTERN RESIDENCE
Sec. 18.1A.  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:  Senator Hoyle
PURCHASE OF CENTURY CENTER CAMPUS FACILITY
Sec. 18.3.  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:  Senator Hoyle
JOINT LEGISLATIVE TRANSPORTATION OVERSIGHT COMMITTEE TO STUDY DIVISION OF MOTOR VEHICLES WAKE COUNTY SERVICE FACILITY
Sec. 18.4.  The Joint Legislative Transportation Oversight Committee may study a Division of Motor Vehicles Campus in Wake County, including a Customer Service Facility.  The Committee may 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 any study of these matters.
The Joint Legislative Transportation Oversight Committee may report its findings on this matter to the 1995 General Assembly, Regular Session 1996.

Requested by:   Senator Hoyle
RESERVE FOR SPOT-SAFETY PROJECTS
Sec. 18.5.  Funds appropriated in this act to the Reserve for Spot-Safety Projects shall be used statewide for spot-safety projects as approved by the Secretary of the Department of Transportation.

Requested by:   Senator Hoyle
ORGANIZATIONAL AND BUSINESS PRACTICES STUDY OF THE DIVISION OF MOTOR VEHICLES
Sec. 18.14.  The Department of Transportation 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 Department of Transportation shall report its findings and recommendations based on this study to the Joint Legislative Transportation Oversight Committee no later than March 31, 1996 for transmittal to the 1995 General Assembly, Regular Session 1996.

Requested by:   Senator Hoyle
INCREASE ALLOCATION TO WILDLIFE RESOURCES COMMISSION
Sec. 18.16.  G.S. 105-449.126, as enacted by Chapter 390 of the 1995 Session Laws, reads as rewritten:
"§ 105-449.126.  Distribution of part of Highway Fund allocation to Wildlife Resources Fund.
The Secretary shall credit to the Wildlife Resources Fund one-sixth of one percent (1/6 of 1%) of the amount that is allocated to the Highway Fund under G.S. 105-449.125 and is from the excise tax on motor fuel.  Revenue credited to the Wildlife Resources Fund under this section may be used only for the boating and water safety activities described in G.S. 75A-3(c).  The Secretary must credit revenue to the Wildlife Resources Fund on an annual basis."

Requested by:   Senator Hoyle
VISITOR CENTER OPERATIONAL FUNDS
Sec. 18.17.  G.S. 20-79.7(c)(2), as rewritten by Section 18.7 of Chapter 324 of the 1995 Session Laws, reads as rewritten:
"(2)	From the funds remaining in the Special Registration Plate Account after the deductions in accordance with subdivision (1) of this subsection, there is appropriated from the Special Registration Plate Account the sum of five hundred twenty-five thousand dollars ($525,000) for the 1995-96 fiscal year to provide operating assistance for the Visitor and Welcome Centers:
a.	on U.S. Highway 17 in Camden County, ($75,000);
b.	on U.S. Highway 17 in Brunswick County, ($75,000);
c.	on U.S. Highway 441 in Macon County, ($75,000);
d.	in the Town of Boone, Watauga County, ($75,000);
e.	on U.S. Highway 29 in Caswell County, ($75,000); 
f.	on U.S. Highway 70 in Carteret County, ($75,000) ; and
g.	on U.S. Highway 64 in Tyrrell County, ($75,000)."

Requested by:   Senator Hoyle
BRANCH AGENT TRANSACTION RATE
Sec. 18.18.  Section 155 of the 1993 Session Laws, as amended by Section 20.1 of Chapter 769 of the 1993 Session Laws, reads as rewritten:
"Sec. 155.  The Division of Motor Vehicles of the Department of Transportation shall compensate a contractor with whom it has a contract under G.S. 20-63(h)	at the rate of one dollar and twenty cents ($1.20) for each transaction performed in accordance with the requirements set by the Division.  A transaction is any of the following activities:
(1)	Issuance of a registration plate, a registration card, a registration renewal sticker, or a certificate of title.
(2)	Issuance of a handicapped placard or handicapped identification card.
(3)	Acceptance of an application for a personalized registration plate.
(4)	Acceptance of a surrendered registration plate, registration card, or registration renewal sticker, or acceptance of an affidavit stating why a person cannot surrender a registration plate, registration card, or registration renewal sticker.
(5)	Cancellation of a title because the vehicle has been junked.
(6)	Acceptance of an application for, or issuance of, a refund for a fee or a tax, other than the highway use tax.
(7)	Receipt of the civil penalty imposed by G.S. 20-309 for a lapse in financial responsibility or receipt of the restoration fee imposed by that statute.
(8)	Acceptance of a notice of failure to maintain financial responsibility for a motor vehicle.
(9)	Collection of the highway use tax.
Performance at the same time of any combination of the items that are listed within each subdivision or are listed within subdivisions (1)	through (8) of this section is a single transaction.  Performance of the item listed in subdivision (9) of this section in combination with any other items listed in this section is a separate transaction."

PART 19.  DEPARTMENT OF CORRECTION

Requested by:  Senators Ballance, Parnell
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 totaling up to 1,000 beds in the State to house State prisoners when to do so would most economically and effectively promote the purposes served by the Department of Correction.  This 1,000-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.   The Secretary of Correction shall enter contracts under this subsection only if funds are appropriated for this purpose by the General Assembly.  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.  Contracts made under the authority of this subsection shall state that plans and specifications for private confinement facilities shall be furnished to and reviewed by the Office of State Construction.  The Office of State Construction shall inspect and review each project during construction to ensure that the project is suitable for habitation and to determine whether the project would be suitable for future acquisition 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:  Senator Ballance
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:  Senator Ballance
NOTICE OF COMMUTATIONS
Sec. 19.3.  (a)	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."
(b)	This section is effective upon ratification.

Requested by:  Senator Ballance
REIMBURSE COUNTIES FOR EXTRAORDINARY MEDICAL COSTS FOR INMATES AWAITING TRANSFER TO STATE PRISON SYSTEM
Sec. 19.4.  The Secretary of Correction may use funds appropriated to the Department of Correction for medical services 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.

Requested by:  Senators Ballance, Parnell
CREATE NEW OFFENSE CLASS AND PUNISHMENT ROW FOR MISDEMEANOR ASSAULTS/CREATE FELONY OFFENSE OF ASSAULT ON A LAW ENFORCEMENT OFFICER/INCREASE PENALTIES FOR POSSESSION OF A FIREARM BY A FELON/LENGTHEN MINIMUM SENTENCES FOR FELONY OFFENSE CLASSES B2, C, AND D/AUTHORIZE ACTIVE SENTENCE FOR PRIOR RECORD LEVELS I AND II OF FELONY OFFENSE CLASS H/MAKE AIRPORT OBSTRUCTIONS ILLEGAL/LOWER FOOD STAMP FRAUD FELONY THRESHOLD/INCREASE PENALTY FOR FIRST DEGREE SEXUAL EXPLOITATION OF MINOR/INCREASE PENALTY FOR PROMOTING PROSTITUTION OF MINOR
Sec. 19.5.  (a)	Funds appropriated in this act to construct 1,384 prison beds shall increase prison capacity to the level necessary to provide for the increases in criminal penalties provided for in this section and the following section.
	(b)	G.S. 14-33 reads as rewritten:
"§ 14-33.  Misdemeanor assaults, batteries, and affrays, simple and aggravated; punishments.
(a)	Any person who commits a simple assault or a simple assault and battery or participates in a simple affray is guilty of a Class 2 misdemeanor.
(b)	Unless his conduct is covered under some other provision of law providing greater punishment, any person who commits any assault, assault and battery, or affray is guilty of a Class 1 misdemeanor if, in the course of the assault, assault and battery, or affray, he:
			(4)	through (7) Repealed by Session Laws 1991, c. 525, s. 1;
	(9)	Commits an assault and battery against a sports official when the sports official is discharging or attempting to discharge official duties at a sports event, or immediately after the sports event at which the sports official discharged official duties. A 'sports official' is a person at a sports event who enforces the rules of the event, such as an umpire or referee, or a person who supervises the participants, such as a coach. A 'sports event' includes any interscholastic or intramural athletic activity in a primary, middle, junior high, or high school, college, or university, any organized athletic activity sponsored by a community, business, or nonprofit organization, any athletic activity that is a professional or semiprofessional event, and any other organized athletic activity in the State. 
	(c)	Unless the conduct is covered under some other provision of law providing greater punishment, any person who commits any assault, assault and battery, or affray is guilty of a Class A1 misdemeanor if, in the course of the assault, assault and battery, or affray, he or she:
(1)	Inflicts serious injury upon another person or uses a deadly weapon;
(2)	Assaults a female, he being a male person at least 18 years of age;
(3)	Assaults a child under the age of 12 years;
(4)	Assaults an officer or employee of the State or any political subdivision of the State, when the officer or employee is discharging or attempting to discharge his official duties; or
(5)	Assaults a school bus driver, school bus monitor, or school employee who is boarding the school bus or who is on the school bus."
(c)	Article 8 of Chapter 14 of the General Statutes is amended by adding a new section to read:
"§ 14-33.2.  Habitual misdemeanor assault.
A person commits the offense of habitual misdemeanor assault if that person violates any of the provisions of G.S. 14-33(c)	or G.S. 14-34 and has been convicted of five or more prior misdemeanor convictions, two of which were assaults.  A person convicted of violating this section is guilty of a Class H felony."
(d)	G.S. 14-34 reads as rewritten:
"§ 14-34.  Assaulting by pointing gun.
If any person shall point any gun or pistol at any person, either in fun or otherwise, whether such gun or pistol be loaded or not loaded, he shall be guilty of a Class A1 misdemeanor."
(e)  G.S. 15A-1332(c) reads as rewritten:
"(c)	Presentence Commitment for Study. – When the court desires more detailed information as a basis for determining the sentence to be imposed than can be provided by a presentence investigation, the court may commit a defendant to the Department of Correction for study for the shortest period necessary to complete the study, not to exceed 90 days, if that defendant has been charged with or convicted of any felony or a Class A1 or Class 1 misdemeanor crime or crimes for which he may be imprisoned for more than six months and if he consents.  The period of commitment must end when the study is completed, and may not exceed 90 days.  The Department must conduct a complete study of a defendant committed to it under this subsection, inquiring into such matters as the defendant's previous delinquency or criminal experience, his social background, his capabilities, his mental, emotional and physical health, and the availability of resources or programs appropriate to the defendant.  Upon completion of the study or the end of the 90-day period, whichever occurs first, the Department of Correction must release the defendant to the sheriff of the county in which his case is docketed.  The Department must forward the study to the clerk in that county, including whatever recommendations the Department believes will be helpful to a proper resolution of the case.  When a defendant is returned from a presentence commitment for study, the conditions of pretrial release which obtained for the defendant before the commitment continue until judgment is entered, unless the conditions are modified under the provisions of G.S. 15A-534(e)."
(f)  G.S. 15A-1340.14(b) reads as rewritten:
"(b)	Points. – Points are assigned as follows:
(1)	For each prior felony Class A conviction, 10 points.
(1a)	For each prior felony Class B1 conviction, 9 points.
(2)	For each prior felony Class B2, C, or D conviction, 6 points.
(3)	For each prior felony Class E, F, or G conviction, 4 points.
(4)	For each prior felony Class H or I conviction, 2 points.
(5)	For each prior Class A1 or Class 1 misdemeanor conviction, 1 point, except that convictions for Class 1 misdemeanor offenses under Chapter 20 of the General Statutes, other than conviction for misdemeanor death by vehicle (G.S. 20-141.4(a2)), shall not be assigned any points for purposes of determining a person's prior record for felony sentencing.
(6)	If all the elements of the present offense are included in the prior offense, 1 point.
(7)	If the offense was committed while the offender was on probation or parole, or while the offender was serving a sentence of imprisonment, or while the offender was on escape from a correctional institution while serving a sentence of imprisonment, 1 point.
For purposes of determining prior record points under this subsection, a conviction for a first degree rape or a first degree sexual offense committed prior to the effective date of this subsection shall be treated as a felony Class B1 conviction, and a conviction for any other felony Class B offense committed prior to the effective date of this subsection shall be treated as a felony Class B2 conviction."
(g)  G.S. 15A-1340.23 reads as rewritten:
"§ 15A-1340.23.  Punishment limits for each class of offense and prior conviction level.
(a)	Offense Classification; Default Classifications. – The offense classification is as specified in the offense for which the sentence is being imposed.  If the offense is a misdemeanor for which there is no classification, it is as classified in G.S. 14-3.
(b)	Fines. – Any judgment that includes a sentence of imprisonment may also include a fine.  Additionally, when the defendant is other than an individual, the judgment may consist of a fine only.  If a community punishment is authorized, the judgment may consist of a fine only.  Unless otherwise provided for a specific offense, the maximum fine that may be imposed is two hundred dollars ($200.00) for a Class 3 misdemeanor and one thousand dollars ($1,000) for a Class 2 misdemeanor.  The amount of the fine for a Class 1 misdemeanor and a Class A1 misdemeanor is in the discretion of the court.
(c)	Punishment for Each Class of Offense and Prior Conviction Level; Punishment Chart Described. – Unless otherwise provided for a specific offense, the authorized punishment for each class of offense and prior conviction level is as specified in the chart below.  Prior conviction levels are indicated by the Roman numerals placed horizontally on the top of the chart.  Classes of offenses are indicated by the Arabic numbers placed vertically on the left side of the chart.  Each grid on the chart contains the following components:
(1)	A sentence disposition or dispositions: 'C' indicates that a community punishment is authorized; 'I' indicates that an intermediate punishment is authorized; and 'A' indicates that an active punishment is authorized; and
(2)	A range of durations for the sentence of imprisonment: any sentence within the duration specified is permitted.

PRIOR CONVICTION LEVELS
MISDEMEANOR
  OFFENSE	LEVEL I	LEVEL II	LEVEL III
  CLASS	No Prior	One to Four Prior	Five or More
Convictions	Convictions	Prior Convictions

A1	1-60 days C/I/A	1-75 days C/I/A	1-150 days C/I/A,
except as
provided in
subsection (d)	
1	1-45 days C	1-45 days C/I/A	1-120 days C/I/A
2 	1-30 days C	1-45 days C/I	1-60 days C/I/A
3	1-10 days C	1-15 days C/I	1-20 days C/I/A."
(h)  G.S. 15A-1343.1 reads as rewritten:
"§ 15A-1343.1.  Criteria for selection and sentencing to IMPACT.
The criteria for selecting and sentencing youthful offenders to the Intensive Motivational Program of Alternative Correctional Treatment as provided under G.S. 15A-1343(b1)(2a) shall be as follows:
(1)	The offender must be between the ages of 16 and 25;
(2)	The offender must be convicted of a Class 1 misdemeanor, Class A1 misdemeanor, or a felony.
(3)	The offender must submit to a medical evaluation by a physician approved by his probation or parole officer and must be certified by the physician to be medically fit for program participation;
(4)	The offender must not previously have served an active sentence in excess of 120 days for an offense not subject to Article 81B of this Chapter or of 30 days for an offense subject to Article 81B of this Chapter."
(i)  G.S. 14-34.2 reads as rewritten:
"§ 14-34.2.  Assault with a firearm or other deadly weapon upon governmental officers or employees, company police officers, or campus police officers.
Unless a person's conduct is covered under some other provision of law providing greater punishment, any person who commits an assault with a firearm or any other deadly weapon upon an officer or employee of the State or of any political subdivision of the State, a company police officer certified pursuant to the provisions of Chapter 74E of the General Statutes, or a campus police officer certified pursuant to the provisions of Chapter 17C or Chapter 116 of the General Statutes, in the performance of his duties shall be guilty of a Class F felony."
(j)  Article 8 of Chapter 14 of the General Statutes is amended by adding a new section to read:
"§ 14-34.5.  Assault with a firearm on a law enforcement officer.
Any person who commits an assault with a firearm upon a law enforcement officer in the performance of his or her duties is guilty of a Class E felony."
(k)  G.S. 14-415.1(a) reads as rewritten:
"(a)	It shall be unlawful for any person who has been convicted of any crime set out in subsection (b) of this section to purchase, own, possess, or have in his custody, care, or control any handgun or other firearm with a barrel length of less than 18 inches or an overall length of less than 26 inches, or any weapon of mass death and destruction as defined in G.S. 14-288.8(c), within five years from the date of such conviction, or the unconditional discharge from a correctional institution, or termination of a suspended sentence, probation, or parole upon such conviction, whichever is later.
Every person violating the provisions of this section shall be punished as a Class G felon.
Nothing in this subsection would prohibit the right of any person to have possession of a firearm within his own home or on his lawful place of business."
(l)  G.S. 15A-1340.17(c) reads as rewritten:
"(c)	Punishments for Each Class of Offense and Prior Record Level; Punishment Chart Described. – The authorized punishment for each class of offense and prior record level is as specified in the chart below.  Prior record levels are indicated by the Roman numerals placed horizontally on the top of the chart.  Classes of offense are indicated by the letters placed vertically on the left side of the chart.  Each cell on the chart contains the following components:
(1)	A sentence disposition or dispositions: 'C' indicates that a community punishment is authorized; 'I' indicates that an intermediate punishment is authorized; 'A' indicates that an active punishment is authorized; and 'Life Imprisonment Without Parole' indicates that the defendant shall be imprisoned for the remainder of the prisoner's natural life.
(2)	A presumptive range of minimum durations, if the sentence of imprisonment is neither aggravated or mitigated; any minimum term of imprisonment in that range is permitted unless the court finds pursuant to G.S. 15A-1340.16 that an aggravated or mitigated sentence is appropriate.  The presumptive range is the middle of the three ranges in the cell.
(3)	A mitigated range of minimum durations if the court finds pursuant to G.S. 15A-1340.16 that a mitigated sentence of imprisonment is justified; in such a case, any minimum term of imprisonment in the mitigated range is permitted.  The mitigated range is the lower of the three ranges in the cell.
(4)	An aggravated range of minimum durations if the court finds pursuant to G.S. 15A-1340.16 that an aggravated sentence of imprisonment is justified; in such a case, any minimum term of imprisonment in the aggravated range is permitted.  The aggravated range is the higher of the three ranges in the cell.

PRIOR RECORD LEVEL

I	II	III	IV	V	VI
0 Pts	1-4 Pts	5-8 Pts	 9-14 Pts	15-18 Pts	19+ Pts

A	Life Imprisonment or Death as Established by Statute

A	A	A	A	A	A	DISPOSITION
240-300	288-360	336-420	384-480	Life Imprisonment	Aggravated
Without Parole
B1	192-240	230-288	269-336	307-384	346-433	384-480	PRESUMPTIVE
144-192	173-230	202-269	230-307	260-346	288-384	Mitigated

A	A	A	A	A	A	DISPOSITION
																		157-196	189-237	220-276	251-313	282-353	313-392	Aggravated
B2	125-157	151-189	176-220	201-251	225-282	251-313	PRESUMPTIVE
94-125	114-151	132-176	151-201	169-225	188-251	Mitigated

A	A	A	A	A	A	DISPOSITION 
																			73-92	100-125	116-145	133-167	151-188	168-210	Aggravated
C	 58-73	80-100	 93-116	107-133	121-151	135-168	PRESUMPTIVE
44-58	 60-80	 70-93	80-107	 90-121	101-135	Mitigated

A	A	A	A	A	A	DISPOSITION
																			64-80	 77-95	103-129	117-146	133-167	146-183	Aggravated
D	 51-64	 61-77	 82-103	 94-117	107-133	117-146	PRESUMPTIVE
38-51	46-61	61-82	 71-94	80-107	 88-117	Mitigated

I/A	I/A	A	A	A	A	DISPOSITION
25-31	 29-36	34-42	46-58	53-66	59-74	Aggravated
E	 20-25	 23-29	27-34	37-46	42-53	47-59	PRESUMPTIVE
15-20	 17-23	20-27	28-37	32-42	35-47	Mitigated

I/A	I/A	I/A	A	A	A	DISPOSITION
16-20	19-24	21-26	25-31	34-42	39-49	Aggravated
F	13-16	15-19	17-21	20-25	27-34	31-39	PRESUMPTIVE
10-13	11-15	13-17	15-20	20-27	23-31	Mitigated

I/A	I/A	I/A	I/A	A	A	DISPOSITION
13-16	15-19	16-20	20-25	21-26	29-36	Aggravated
G	10-13	12-15	13-16	16-20	17-21	23-29	PRESUMPTIVE
8-10	 9-12	10-13	12-16	13-17	17-23	Mitigated

C/I/ A	I/ A	I/A	I/A	I/A	A	DISPOSITION
6-8	8-10	10-12	11-14	15-19	20-25	Aggravated
H	5-6	6-8	 8-10	 9-11	12-15	16-20	PRESUMPTIVE
4-5	4-6	 6-8	 7-9	 9-12	12-16	Mitigated

C	C/I	I	I/A	I/A	I/A	DISPOSITION
6-8	6-8	6-8	8-10	9-11	10-12	Aggravated
I	4-6	4-6	5-6	6-8	7-9	 8-10	PRESUMPTIVE
3-4	3-4	4-5	4-6	5-7	 6-8	Mitigated

(m)  Chapter 63 of the General Statutes is amended by adding a new section to read:
"§ 63-37.1.  Airport obstructions illegal.
Any person, other than the owner or operator of an airport, who intentionally obstructs the lawful takeoff and landing operations and patterns of aircraft at an existing public or private airport shall be guilty of a Class 1 misdemeanor."
(n)  G.S. 108A-53(a) reads as rewritten:
"(a)	Any person, whether provider or recipient or person representing himself as such, who knowingly obtains or attempts to obtain, or aids or abets any person to obtain by means of making a willfully false statement or representation or by impersonation or by failing to disclose material facts or in any manner not authorized by this Part or the regulations issued pursuant thereto, transfers with intent to defraud any food stamps or authorization cards to which he is not entitled in the amount of one thousand dollars ($1,000) or less shall be guilty of a Class 1 misdemeanor.  Whoever knowingly obtains or attempts to obtain, or aids or abets any person to obtain by means of making a willfully false statement or representation or by impersonation or by failing to disclose material facts or in any manner not authorized by this Part or the regulations issued pursuant thereto, transfers with intent to defraud any food stamps or authorization cards to which he is not entitled in an amount more than one thousand dollars ($1,000) shall be guilty of a Class I felony."
(o)  G.S. 14-190.16(d) reads as rewritten:
"(d)	Punishment and Sentencing. – Violation of this section is a Class D felony."
(p)  G.S. 14-190.18(c) reads as rewritten:
"(c)	Punishment and Sentencing. – Violation of this section is a Class D felony."
(q)  This section becomes effective December 1, 1995, and applies to offenses committed on or after that date.

Requested by:  Senator Gulley
FELONY TO COMMIT ASSAULT ON EMERGENCY SERVICES PERSONNEL
Sec. 19.6. (a)	G.S. 14-288.9 reads as rewritten:
"§ 14-288.9.  Assault on emergency personnel; punishments.
(a)	An assault upon emergency personnel is an assault upon any person coming within the definition of 'emergency personnel' which is committed:
(1)	In an area in which a declared state of emergency exists; or
(2)	Within the immediate vicinity in which a riot is occurring or is imminent; or
(3)	While emergency personnel is discharging or attempting to discharge official duties.
(b)	The term 'emergency personnel' includes law-enforcement officers, firemen, ambulance attendants, emergency medical services technicians, utility workers, doctors, nurses, and other persons lawfully engaged in providing essential services during the emergency.
(c)	Any person who commits an assault upon emergency personnel is guilty of a Class 1 misdemeanor.  Any person who commits an assault upon emergency personnel with or through the use of any dangerous weapon or substance shall be punished as a Class I felon.
(d)	Any person who commits an assault upon emergency personnel with or through the use of a firearm shall be punished as a Class F felon."
(b)	This section becomes effective December 1, 1995, and applies to offenses committed on or after that date.

Requested by:  Senator Ballance
HARRIET'S HOUSE FUNDS
Sec. 19.7.   Of the funds appropriated to the Department of Correction, the sum of two hundred thousand dollars ($200,000) for the 1995-96 fiscal year and the sum of two hundred thousand dollars ($200,000) for the 1996-97 fiscal year shall be used to support the programs of Harriet's House, a transitional home for female ex-offenders and their children.  Harriet House shall report quarterly to the Joint Legislative Commission on Governmental Operations on the expenditure of State appropriations and on the effectiveness of the program including information on the number of clients served and the number of clients who successfully complete the Harriet's House program.

Requested by:  Senator Ballance
DEPARTMENT OF CORRECTION/DEPARTMENT OF HUMAN RESOURCES JOINT PLAN/RESERVE FOR SUBSTANCE ABUSE TREATMENT PILOT PROGRAM FOR PAROLEES AND PROBATIONERS
Sec. 19.8.  (a) The balance of the five hundred eighty-three thousand dollars ($583,000) appropriated in Chapter 24 of the Session Laws of the 1994 Extra Session to the Department of Correction for the 1994-95 fiscal year for an intensive out-patient substance abuse treatment pilot program for parolees and probationers with serious substance abuse histories shall not revert at the end of the fiscal year but shall remain in the Department for that purpose.  The Department of Correction and the Department of Human Resources shall jointly report on the development and implementation of the pilot 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 not later than May 15, 1996.
(b)	This section becomes effective June 30, 1995.

Requested by:  Senator Ballance
EXEMPTION FROM LICENSURE AND CERTIFICATE OF NEED
Sec. 19.9.  (a)	Inpatient chemical dependency or substance abuse facilities that provide services exclusively to inmates of the Department of Correction shall be exempt from licensure by the Department of Human Resources under Chapter 122C of the General Statutes.  If an inpatient chemical dependency or substance abuse facility provides services both to inmates of the Department of Correction and to members of the general public, the portion of the facility that serves inmates shall be exempt from licensure.
(b)	Any person who contracts to provide inpatient chemical dependency or substance abuse services to inmates of the Department of Correction may construct and operate a new chemical dependency or substance abuse facility for that purpose without first obtaining a certificate of need from the Department of Human Resources pursuant to Article 9 of Chapter 131E of the General Statutes.  However, a new facility or addition developed for that purpose without a certificate of need shall not be licensed pursuant to Chapter 122C of the General Statutes and shall not admit anyone other than inmates unless the owner or operator first obtains a certificate of need.
(c)	This section applies to existing facilities, as well as future facilities contracting with the Department of Correction.

Requested by:  Senator Ballance
CORRECTIONS OVERSIGHT STUDY SALARY CONTINUATION
Sec. 19.10.  (a) The Joint Legislative Corrections Oversight Committee shall study the salary continuation program in the Department of Correction provided for in Article 12B of Chapter 143 of the General Statutes.  The Committee shall review:
(1)	The numbers and types of positions in the Department of Correction currently receiving the benefit;
(2)	The number and types of accidents occurring for which employees receive salary continuation;
(3)	The application of this benefit to accidents and injuries on the job;
(4)	The application of this benefit to certified positions and not to non-certified positions;
(5)	The costs of this benefit to the Department and methods for reducing future costs.
(b)	The Joint Legislative Corrections Oversight Committee shall report its findings and recommendations to the 1995 General Assembly, 1996 Regular Session.

Requested by:  Senator Ballance
DART AFTERCARE FUNDS
Sec. 19.11.  Funds appropriated in this act to the Department of Correction for a Drug Alcohol Recovery Treatment (DART) aftercare program shall be used to contract for up to three pilot programs statewide to provide aftercare services, including counseling and job referral services, for DART DWI offenders and other offenders who have completed a DART program in the Division of Prisons.
The Department of Correction shall report on the pilot programs 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.  The report shall include information on the number of clients served, the quality of services, the cost-effectiveness of the services, and the benefits of the programs to offenders. 

PART 20.  DEPARTMENT OF CRIME CONTROL AND PUBLIC SAFETY

Requested by:  Senators Ballance, Parnell
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:   Senator Ballance
INCREASE MAXIMUM ALLOWABLE MAGISTRATES FOR CURRITUCK, PASQUOTANK AND SURRY COUNTIES/DIVIDE DISTRICT COURT DISTRICT 9
Sec. 21.1.  (a) Article 18 of Chapter 7A of the General Statutes is amended by adding a new section to read:
"§ 7A-200.  District and set of districts defined; chief district court judges and their authority.
(a)	In this section:
(1)	'District' means any district court district established by G.S. 7A-133 which consists exclusively of one or more entire counties;
(2)	'Set of districts' means any set of two or more district court districts established under G.S. 7A-133, none of which consists exclusively of one or more entire counties, but both or all of which include territory from the same county or counties and together comprise all of the territory of that county or those counties; and
(3)	'Chief district court judge' means in the case of a set of districts, the chief district court judge for those districts, designated by the chief justice from among the district court judges for the districts in the set of districts.
(b)	Whenever by law a duty is imposed upon the chief district court judge, it means for a set of districts the chief district court judge designated under subsection (a)(3) of this section."
(b) Article 14 of Chapter 7A of the General Statutes is amended by adding a new section to read:
"§ 7A-149.  Jurisdiction; sessions.
(a)	Notwithstanding any other provision of law, a district court judge of a district court district which is in a set of districts as defined by G.S. 7A-200 has jurisdiction in the entire county or counties in which the district is located to the same extent as if the district encompassed the entire county, and has jurisdiction in the entire set of districts to the same extent as if the district encompassed the entire set of districts.
(b)	All sessions of district court shall be for an entire county, whether that county comprises or is located in a district or in a set of districts as defined in G.S. 7A-200, and at each session all matters and proceedings arising anywhere in the county may be heard.
(c)	All clerks of court for a county have jurisdiction over the entire county, notwithstanding that the county may be part of a set of districts."
(c) G.S. 7A-133 reads as rewritten:
"§ 7A-133.  Numbers of judges by districts; numbers of magistrates and additional seats of court, by counties.
(a)	Each district court district shall have the numbers of judges as set forth in the following table:
			District	Judges	County		 

	1	4	Camden		
	Chowan		
Currituck		 
Dare		 
Gates		 
Pasquotank		 
Perquimans		 
2	3	Martin		 
Beaufort		 
Tyrrell		 
Hyde		 
Washington		 
3A	3	Pitt			 
3B	4	Craven 			 
Pamlico		
Carteret		 
4	6	Sampson		 
Duplin		 
Jones		 
Onslow		 
5	6	New Hanover		 
Pender		 
6A	2	Halifax			
6B	3	Northampton		 
Bertie		 
Hertford		 
7	6 	Nash			
	Edgecombe			 
Wilson		 
8	5	Wayne			 
Greene		 
Lenoir			 
9	4	Granville		 
(part of Vance		 
see subsection (b))
		Franklin		 
9A	2	Person		 
Caswell		 
9B	1	Warren
(part of Vance
see subsection (b))
10	12 	Wake			
11	6	Harnett			 
Johnston			
Lee		 
12	6	Cumberland		 
13	4	Bladen		 
Brunswick		 
Columbus			
	14	5	Durham		 
15A	3	Alamance			 
15B	3	Orange			 
Chatham			 
16A	2	Scotland		 
Hoke		 
16B	5	Robeson			
	17A	2	Rockingham			
17B	3	Stokes		 
Surry			 
18	10	Guilford			 
19A	3	Cabarrus			 
19B	3	Montgomery		 
Randolph			 
19C	3	Rowan		 
20	6	Stanly		 
Union		 
Anson		 
Richmond			 
Moore			
21	7	Forsyth			 
22	7	Alexander		 
Davidson			 
Davie		 
Iredell			 
23	3	Alleghany		 
Ashe		 
Wilkes		 
Yadkin		 
24	3	Avery		 
Madison		 
Mitchell		 
Watauga		 
Yancey		 
25	7	Burke		 
Caldwell		 
Catawba			 
26	14 	Mecklenburg			
27A	5	Gaston		 
27B	4	Cleveland		 
Lincoln		 
28	5	Buncombe		 
29	4	Henderson		 
McDowell		 
Polk		 
Rutherford		 
Transylvania		 
30	4	Cherokee		 
Clay		 
Graham		 
Haywood			 
Jackson		 
Macon		 
Swain		.
(b)	For district court districts of less than a whole county, or with part or all of one county with part of another, the composition of the district is as follows:
(1)	District Court District 9 consists of Franklin and Granville Counties and the remainder of Vance County not in District Court District 9B.
(2)	District Court District 9B consists of Warren County and East Henderson I, North Henderson I, North Henderson II, Middleburg, Townsville, and Williamsboro Precincts of Vance County.
Precinct boundaries as used in this section for Vance County are those shown on maps on file with the Legislative Services Office on May 1, 1991, and for other counties are those reported by the United States Bureau of the Census under Public Law 94-171 for the 1990 Census in the IVTD Version of the TIGER files.
(c)	Each county shall have the numbers of magistrates and additional seats of district court, as set forth in the following table:
Additional
Magistrates	Seats of
County	Min.-Max.	Court         

Camden	1	2
Chowan	2	3
Currituck	1	3
Dare	3	8
Gates	2	3
Pasquotank	3	5
Perquimans	2	3
Martin	5	8
Beaufort	4	8
Tyrrell	1	3
Hyde	2	4
Washington	3	4
Pitt	10	12	Farmville
Ayden
Craven	7	10	Havelock
Pamlico	2	3
Carteret	5	8
Sampson	6	8
Duplin	9	11
Jones	2	3
Onslow	8	14
New Hanover	6	11
Pender	4	6
Halifax	9	14	Roanoke
Rapids,
Scotland Neck
Northampton	5	6
Bertie	4	5
Hertford	5	6
Nash	7	10	Rocky Mount
Edgecombe	4	6	Rocky Mount
Wilson	4	6
Wayne	5	11	Mount Olive
Greene	2	4
Lenoir	4	10	La Grange
Granville	3	7
Vance	3	5
Warren	3	4
Franklin	3	6
Person	3	4
Caswell	2	5
Wake	12	20	Apex,
Wendell,
Fuquay-
Varina,
Wake Forest
Harnett	7	11	Dunn
Johnston	10	12	Benson,
Clayton,
Selma
Lee	4	6
Cumberland	10	17
Bladen	4	6
Brunswick	4	7
Columbus	6	8	Tabor City
Durham	8	12
Alamance	7	10	Burlington
Orange	4	11	Chapel Hill
Chatham	3	8	Siler City
Scotland	3	5
Hoke	4	5
Robeson	8	16	Fairmont,
Maxton,
Pembroke,
Red Springs,
Rowland,
St. Pauls
Rockingham	4	9	Reidsville,
Eden,
Madison
Stokes	2	5
Surry	5	9	Mt. Airy
Guilford	20	26	High Point
Cabarrus	5	9	Kannapolis
Montgomery	2	4
Randolph	5	8	Liberty
Rowan	5	10
Stanly	5	6
Union	4	6
Anson	4	5
Richmond	5	6	Hamlet
Moore	5	8	Southern
Pines
Forsyth	3	15	Kernersville
Alexander	2	3
Davidson	7	10	Thomasville
Davie	2	3
Iredell	4	9	Mooresville
Alleghany	1	2
Ashe	3	4
Wilkes	4	6
Yadkin	3	5
Avery	3	4
Madison	4	5
Mitchell	3	4
Watauga	4	6
Yancey	2	4
Burke	4	7
Caldwell	4	7
Catawba	6	10	Hickory
Mecklenburg	15	26
Gaston	11	20
Cleveland	5	8
Lincoln	4	6
Buncombe	6	15
Henderson	4	6
McDowell	3	5
Polk	3	4
Rutherford	6	8
Transylvania	2	4
Cherokee	3	4
Clay	1	2
Graham	2	3
Haywood	5	7	Canton
Jackson	3	4
Macon	3	4
Swain	2	3."
(d)	The Governor shall appoint the additional district court judge for District Court District 9B authorized by subsection (c) of this section.  A successor shall be elected in the 1998 general election for a four-year term commencing the first Monday in December 1998.
(e)  Subsections (c) and (d) of this section become effective October 1, 1995, or 15 days after the date upon which those subsections are approved under Section 5 of the Voting Rights Act of 1965, whichever is later.  Subsections (a) and (b) of this section become effective October 1, 1995.
(f)  The provisions of this section are severable.  If any provision of this section is held invalid by a court of competent jurisdiction, the invalidity does not affect other provisions of the section that can be given effect without the invalid provision.

Requested by:  Senator Ballance
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:  Senator Ballance
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 the remaining 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 funds to a district or county in a manner calculated to result in the reasonably fair distribution of remaining funds.  Such funds shall be subject to the limitations and directions set out in subsection (a) of this section.
(c)	If the funds allotted pursuant to subsection (b) of this section are depleted in a district or county prior to the end of the fiscal year, the Administrative Office of the Courts is authorized to resume payments in such districts or counties only if and when it is reasonably determined that the total projected expenditures will be less than the total approved budget for the Indigent Persons' Attorney Fee Fund for the fiscal year.

Requested by:  Senator Ballance
DISPUTE SETTLEMENT FUNDS
Sec. 21.5.  (a)	Of the three hundred eight thousand five hundred dollars ($308,500) 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) shall be allocated for new funding for the Sandhills Mediation Center and ten thousand dollars ($10,000) shall be allocated for new funding for the Dispute Settlement Center of Moore 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 Charlotte/Mecklenburg Community Relations Committee/Dispute Settlement Program;
(3)	$10,000 for the Cumberland County Dispute Resolution Center;
(4)	$10,000 for The Dispute Settlement Center of Cape Fear;
(5)	$20,000 for the Dispute Settlement Center of Durham, Inc.;
(6)	$13,500 for the Henderson County Dispute Settlement Center;
(7)	$10,000 for The Mediation Center in Buncombe County;
(8)	$30,000 for the Mediation Center of Eastern Carolina to expand into Craven and Carteret Counties;
(9)	$15,000 for the Mediation Center of Gaston County, Inc.;
(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;
(14)	$13,000 for the Transylvania Dispute Settlement Center; and
(15)	$15,000 for the Robeson County Dispute Resolution Center.
(b)	The provisions of subsection (c) of Section 21.5 of Chapter 324 of the 1995 Session Laws shall not apply to the Robeson County Dispute Resolution Center during the 1995-97 biennium.

Requested by:  Senator Ballance
DRUG TREATMENT COURTS/FUNDS IN RESERVE
Sec. 21.6.  (a)	Chapter 7A of the General Statutes is amended by adding a new Subchapter to read:
"SUBCHAPTER XIV.  DRUG TREATMENT COURTS.
"ARTICLE 62.
"North Carolina Drug Treatment Court Act.
"§ 7A-790.  Short title.
This Article shall be known and may be cited as the 'North Carolina Drug Treatment Court Act of 1995'.
"§ 7A-791.  Purpose.
The General Assembly recognizes that a critical need exists in this State for criminal justice system programs that will reduce the incidence of drug use and drug addiction and crimes committed as a result of drug use and drug addiction.  It is the intent of the General Assembly by this Article to create a program to facilitate the creation of drug treatment court pilot programs in a minimum of two judicial districts.
"§ 7A-792.  Goals.
The goals of the drug treatment court programs funded under this Article include the following:
(1)	To reduce alcoholism and other drug dependencies among offenders;
(2)	To reduce recidivism;
(3)	To reduce the drug-related court workload;
(4)	To increase the personal, familial, and societal accountability of offenders; and
(5) 	To promote effective interaction and use of resources among criminal justice personnel and community agencies.
"§ 7A-793.  Establishment of Program.
The North Carolina Drug Treatment Court Program is established in the Administrative Office of the Courts to facilitate the creation of drug treatment court programs and the funding of pilot drug treatment court programs.  Drug treatment court programs funded pursuant to this Article shall be operated consistent with the guidelines promulgated by the Director of the Administrative Office of the Courts in consultation with the State Drug Treatment Court Advisory Committee established in G.S. 7A-795.  In promulgating the guidelines, the Director and the Advisory Committee shall consider the Substance Abuse and the Courts Action Plan and other recommendations of the Substance Abuse and the Courts State Task Force.
"§ 7A-794.  Fund administration.
The Drug Treatment Court Program Fund is created in the Administrative Office of the Courts and is administered by the Director of the Administrative Office of the Courts in consultation with the State Drug Treatment Court Advisory Committee.  The Director of the Administrative Office of the Courts shall award grants from this Fund and implement drug treatment court programs in a minimum of two judicial districts. Grants shall be awarded based upon the general guidelines set forth by the Director of the Administrative Office of the Courts and the State Drug Treatment Court Advisory Committee.
"§ 7A-795.  State Drug Treatment Court Advisory Committee.
The State Drug Treatment Court Advisory Committee is established to develop guidelines for the drug treatment court program and to monitor programs wherever they are implemented.  The Committee shall be chaired by the Director of the Administrative Office of the Courts or the Director's designee and shall consist of not less than seven members appointed by the Director and broadly representative of the courts, corrections, and substance abuse treatment communities.
"§ 7A-796.  Local drug treatment court management committee.
Each judicial district choosing to establish a drug treatment court or applying to participate in a funded pilot program shall form a local drug treatment court management committee, which may consist of some or all of the following:
(1)	A judge of the superior court;
(2)	A judge of the district court;
(3)	A district attorney or assistant district attorney;
(4)	A public defender or assistant public defender in judicial districts served by a public defender;
(5)	A member of the private criminal defense bar;
(6)	A clerk of superior court;
(7)	The trial court administrator in judicial districts served by a trial court administrator;
(8)	A probation officer;
(9)	A local law enforcement officer;
(10)	A representative of the local community college;
(11)	A representative of the treatment providers;
(12)	The local program director provided for in G.S. 7A-798; and
(13)	Any other persons selected by the local management committee.
Each local drug treatment court management committee shall be convened by the senior resident superior court judge, who shall then appoint a chair from the membership of the committee.
The local drug treatment court management committee shall develop local guidelines and procedures, not inconsistent with the State guidelines, that are necessary for the operation and evaluation of the local drug treatment court.
"§ 7A-797.  Eligible population; drug treatment court procedures.
The Director of the Administrative Office of the Courts, in conjunction with the State Drug Treatment Court Advisory Committee, shall develop criteria for eligibility and other procedural and substantive guidelines for drug treatment court operation.
"§ 7A-798.  Drug treatment court grant application; local program director.
(a)	Grant applications for the pilot programs shall be submitted to the Director of the Administrative Office of the Courts, in such form and with such information as the Director may require consistent with the provisions of this Article.  Grants shall be awarded to two or more judicial districts that submit the most comprehensive and feasible plans for the implementation and operation of a drug treatment court.  The Director shall award and administer grants in accordance with any laws made for that purpose, including appropriations acts and provisions in appropriations acts, and may adopt rules for the implementation, operation, and monitoring of grant-funded programs.
(b)	Grant applications shall specify a local program director who shall be responsible for local administration of the project.  Grant funds may be used to fund a full-time or part-time local program director position.  The local program director may be an employee of the grant recipient, an employee of the court, or a grant-established position under the senior resident superior court judge or chief district court judge.
"§ 7A-799.  Treatment not guaranteed.
Nothing contained in this Article shall confer a right or an expectation of a right to treatment for a defendant or offender within the criminal justice system.
"§ 7A-800.  Payment of costs of treatment program.
Each defendant shall contribute to the cost of the substance abuse treatment received in the drug treatment court program, based upon guidelines developed by the local drug treatment court management committee.
"§ 7A-801.  Plan for evaluation.
Each grant application requesting funding for the pilot program shall include a method for evaluating the pilot program's effectiveness, based upon the goals stated in G.S. 7A-792.  Each funded program shall submit evaluation reports to the Administrative Office of the Courts as requested.  Additionally, the Administrative Office of the Courts shall be responsible for developing an evaluation model on the State level to compare the effectiveness of all pilot programs and shall submit a report to the General Assembly by May 1, 1998."
(b)	Funds to implement and evaluate the pilot programs established under the North Carolina Drug Treatment Court Act shall be allocated from the reserve of eight hundred thousand dollars ($800,000) created in Section 41 of Chapter 24 of the Session Laws of the 1994 Extra Session.  These funds shall be used primarily to provide substance abuse treatment, but the sum of forty-three thousand seven hundred seventy-five dollars ($43,775) for the 1995-96 fiscal year and the sum of fifty-two thousand five hundred fifty-one thousand dollars ($52,551) for the 1996-97 fiscal year may be used to fund one program administrator position.
(c)	Subsection (a) of this section becomes effective July 1, 1995, and expires June 30, 1998.  The remainder of this section becomes effective October 1, 1995.

Requested by:  Senator Ballance
ADD ADDITIONAL ASSISTANT DISTRICT ATTORNEYS
Sec. 21.7.  G.S. 7A-60(a1) reads as rewritten:
"(a1)	The counties of the State are organized into prosecutorial districts, and each district has the counties and the number of full-time assistant district attorneys set forth in the following table:
No. of Full-Time
Prosecutorial	Asst. District
District	Counties	Attorneys
1	Camden, Chowan, Currituck,	8
Dare, Gates, Pasquotank,
Perquimans
2	Beaufort, Hyde, Martin,	4
Tyrrell, Washington
3A	Pitt	7
3B	Carteret, Craven, Pamlico	6
4	Duplin, Jones, Onslow,	10
Sampson
5	New Hanover, Pender	9
6A	Halifax	3
6B	Bertie, Hertford,	3
	Northampton
	7	Edgecombe, Nash, Wilson	10
8	Greene, Lenoir, Wayne	8
9	Franklin, Granville,	8
Vance, Warren
9A	Person, Caswell	2
	10	Wake	20
11	Harnett, Johnston, Lee	9
12	Cumberland	12
13	Bladen, Brunswick, Columbus	6
14	Durham	9
15A	Alamance	6
15B	Orange, Chatham	5
16A	Scotland, Hoke	3
16B	Robeson	7
17A	Rockingham	4
17B	Stokes, Surry	4
18	Guilford	18
19A	Cabarrus	 	4
19B	Montgomery, Randolph	5
19C	Rowan	4
20	Anson, Moore, Richmond,	12
Stanly, Union
21	Forsyth	12
22	Alexander, Davidson, Davie,	11
Iredell
23	Alleghany, Ashe, Wilkes,	4
Yadkin
24	Avery, Madison, Mitchell,	3
Watauga, Yancey
25	Burke, Caldwell, Catawba	11
26	Mecklenburg	23
27A	Gaston	8
27B	Cleveland,	5
Lincoln
28	Buncombe	8
29	Henderson, McDowell, Polk,	8
Rutherford, Transylvania
30	Cherokee, Clay, Graham,	7
Haywood, Jackson, Macon,
Swain."

Requested by:  Senator Ballance
ESTABLISH MEDIATED SETTLEMENT CONFERENCES IN CIVIL ACTIONS IN SUPERIOR COURT
Sec. 21.8.  (a)	Chapter 7A of the General Statutes is amended by adding the following new sections to read:
"§ 7A-38.1.  Mediated settlement conferences in superior court civil actions.
(a)	Purpose.  The General Assembly finds that a system of court-ordered mediated settlement conferences should be established to facilitate the settlement of superior court civil actions and to make civil litigation more economical, efficient, and satisfactory to litigants and the State.  Therefore, this section is enacted to require parties to superior court civil actions and their representatives to attend a pretrial, mediated settlement conference conducted pursuant to this section and pursuant to rules of the Supreme Court adopted to implement this section.
(b)	Definitions.  As used in this section:
(1)	'Mediated settlement conference' means a pretrial, court-ordered conference of the parties to a civil action and their representatives conducted by a mediator.
(2)	'Mediation' means an informal process conducted by a mediator with the objective of helping parties voluntarily settle their dispute.
(3)	'Mediator' means a neutral person who acts to encourage and facilitate a resolution of a pending civil action.  A mediator does not make an award or render a judgment as to the merits of the action.
(c)	Rules of procedure.  The Supreme Court may adopt rules to implement this section.
(d)	Statewide implementation.  Mediated settlement conferences authorized by this section shall be implemented in all judicial districts as soon as practicable, as determined by the Director of the Administrative Office of the Courts.
(e)	Cases selected for mediated settlement conferences.  The senior resident superior court judge of any participating district may order a mediated settlement conference for any superior court civil action pending in the district.  The senior resident superior court judge may by local rule order all cases, not otherwise exempted by the Supreme Court rule, to mediated settlement conference.
(f)	Attendance of parties.  The parties to a superior court civil action in which a mediated settlement conference is ordered, their attorneys and other persons or entities with authority, by law or by contract, to settle the parties' claims shall attend the mediated settlement conference unless excused by rules of the Supreme Court or by order of the senior resident superior court judge.  Nothing in this section shall require any party or other participant in the conference to make a settlement offer or demand which it deems is contrary to its best interests.
(g)	Sanctions.  Any person required to attend a mediated settlement conference who, without good cause, fails to attend in compliance with this section and the rules adopted under this section, shall be subject to any appropriate monetary sanction imposed by a resident or presiding superior court judge, including the payment of attorneys' fees, mediator fees, and expenses incurred in attending the conference.  If the court imposes sanctions, it shall do so, after notice and a hearing, in a written order, making findings of fact and conclusions of law.  An order imposing sanctions shall be reviewable upon appeal where the entire record as submitted shall be reviewed to determine whether the order is supported by substantial evidence.
(h)	Selection of mediator.  The parties to a superior court civil action in which a mediated settlement conference is to be held pursuant to this section shall have the right to designate a mediator.  Upon failure of the parties to designate a mediator within the time established by the rules of the Supreme Court, a mediator shall be appointed by the senior resident superior court judge.
(i)	Promotion of other settlement procedures.  Nothing in this section is intended to preclude the use of other dispute resolution methods within the superior court.  Parties to a superior court civil action are encouraged to select other available dispute resolution methods.  The senior resident superior court judge, at the request of and with the consent of the parties, may order the parties to attend and participate in any other settlement procedure authorized by rules of the Supreme Court or by the local superior court rules, in lieu of attending a mediated settlement conference.  Neutral third parties acting pursuant to this section shall be selected and compensated in accordance with such rules or pursuant to agreement of the parties.  Nothing in this section shall prohibit the parties from participating in, or the court from ordering, other dispute resolution procedures, including arbitration to the extent authorized under State or federal law.
(j)	Immunity.  Mediator and other neutrals acting pursuant to this section shall have judicial immunity in the same manner and to the same extent as a judge of the General Court of Justice, except that mediators and other neutrals may be disciplined in accordance with enforcement procedures adopted by the Supreme Court pursuant to subsection (j) of this section.
(k)	Costs of mediated settlement conference.  Costs of mediated settlement conferences shall be borne by the parties.  Unless otherwise ordered by the court or agreed to by the parties, the mediator's fees shall be paid in equal shares by the parties.  For purposes of this section, multiple parties shall be considered one party when they are represented by the same counsel.  The rules adopted by the Supreme Court implementing this section shall set out a method whereby parties found by the court to be unable to pay the costs of the mediated settlement conference are afforded an opportunity to participate without cost.
(l)	Inadmissibility of negotiations.  Evidence of statements made and conduct occurring in a mediated settlement conference shall not be subject to discovery and shall be inadmissible in any proceeding in the action or other actions on the same claim.  However, no evidence otherwise discoverable shall be inadmissible merely because it is presented or discussed in a mediated settlement conference.
No mediator shall be compelled to testify or produce evidence concerning statements made and conduct occurring in a mediated settlement conference in any civil proceeding for any purpose, except proceedings for sanctions under this section, disciplinary hearings before the State Bar or any agency established to enforce standards of conduct for mediators, and proceedings to enforce laws concerning juvenile or elder abuse.
(m)	Right to jury trial.  Nothing in this section or the rules adopted by the Supreme Court implementing this section shall restrict the right to jury trial.
"§ 7A-38.2.  Regulation of mediators.
(a)	The Supreme Court is authorized to adopt standards for the certification and conduct of mediators who participate in the mediated settlement conference program established pursuant to G.S. 7A-38.1.  The standards may also regulate mediator training programs.  The Supreme Court may adopt procedures for the enforcement of those standards.
(b)	The administration of mediator certification, regulation of mediator conduct, and decertification shall be conducted through the Dispute Resolution Commission, established under the Judicial Department.  The rules and regulations governing the operation of the Commission shall be adopted by the Supreme Court.  The Commission shall be administered under the direction and supervision of the Director of the Administrative Office of the Courts.  The Commission shall exercise all of its duties independently of the Director, except all management functions shall be performed under the direction and supervision of the Director.
(c)	The Dispute Resolution Commission shall consist of nine members:  two judges appointed by the Chief Justice of the Supreme Court; two mediators certified to conduct mediated settlement conferences appointed by the Chief Justice of the Supreme Court; two practicing attorneys who are not certified as mediators appointed by the President of the North Carolina State Bar; and three citizens knowledgeable about mediation, one of whom shall be appointed by the Governor, one by the Speaker of the House of Representatives, and one by the President Pro Tempore of the Senate.  Members shall serve four-year terms, except that one judge, one mediator, one attorney, and the citizen member appointed by the Governor, shall be appointed for an initial term of two years.  Members may serve no more than two consecutive terms.  The Chief Justice shall designate one of the judge members to serve as chair for a two-year term.
(d)	An administrative fee, not to exceed two hundred dollars ($200.00), may be charged by the Administrative Office of the Courts to applicants for certification and annual renewal of certification for mediators and mediation training programs operated under this Article.  The fees collected may be used by the Director of the Administrative Office of the Courts to establish and maintain the operations of the Commission and its staff."
(b)	G.S. 7A-38(o) reads as rewritten:
"(o)	Continuation and funding of the pilot program.  Notwithstanding the above, the termination date of the pilot program is extended to October 1, 1995.  The Administrative Office of the Courts is authorized to use funds available to the Judicial Department from July 1, 1995, to October 1, 1995, for the purpose of operating the program."
(c)	Effective October 1, 1995, G.S. 7A-38 is repealed.
(d)	Of the funds appropriated to the Judicial Department for the 1995-96 fiscal year, the sum of sixty thousand seventeen dollars ($60,017) shall be used to support the operation of the Dispute Resolution Commission.  Any fees collected pursuant to G.S. 7A-38.2(d) shall be placed in a reserve and may not be expended until the 1996-97 fiscal year.
(e)  Subsection (b) of this section is effective upon ratification.  Subsection (d) of this section becomes effective July 1, 1995.  The remainder of this section becomes effective October 1, 1995, and shall apply, after the Supreme Court has adopted rules implementing this act, to all superior court civil actions filed in any county after the date this program is implemented in that county.  This act also applies to all previously filed actions which are or have been specifically ordered to a mediated settlement conference by a senior resident superior court judge under G.S. 7A-38 prior to its repeal.

Requested by:  Senator Ballance
ESTABLISH AN ADDITIONAL SUPERIOR COURT JUDGESHIP AND FIVE ADDITIONAL ASSISTANT DISTRICT ATTORNEY POSITIONS FOR THE MECKLENBURG COUNTY DRUG COURT PROGRAM
Sec. 21.9.  (a)	G.S. 7A-41(a) reads as rewritten:
"(a)	The counties of the State are organized into judicial divisions and superior court districts, and each superior court district has the counties, and the number of regular resident superior court judges set forth in the following table, and for districts of less than a whole county, as set out in subsection (b) of this section:
	Superior
Judicial	Court 	No. of Resident
Division	District	Counties		Judges

First	1	Camden, Chowan,	2
Currituck,
Dare, Gates,
Pasquotank, 
Perquimans
2	Beaufort, Hyde,	1
Martin,
Tyrrell, Washington
3A	Pitt	2
3B	Carteret, Craven,	2
Pamlico
4A	Duplin, Jones, 	1
Sampson
	4B	Onslow	1
5	New Hanover, 	3
Pender
6A	Halifax	1
6B	Bertie, Hertford,	1
Northampton
	7A	Nash	1
	7B	(part of Wilson,	1
part of Edgecombe,
see subsection (b))
7C	(part of Wilson,	1
part of Edgecombe,
see subsection (b))
8A	Lenoir and Greene	1
8B	Wayne	1
Second	9	Franklin, Granville, 	2
  	Vance, Warren
9A	Person, Caswell	1
10A	(part of Wake,	2
see subsection (b))
10B	(part of Wake,	2
see subsection (b))
10C	(part of Wake,	1
see subsection (b))
10D	(part of Wake,	1
see subsection (b))
11	Harnett, Johnston, 	2
Lee
12A	(part of Cumberland, 	1
see subsection (b))
12B	(part of Cumberland,	1
see subsection (b))
12C	(part of Cumberland,	2
see subsection (b))
13	Bladen, Brunswick,	2
Columbus
14A	(part of Durham,	1
see subsection (b))
14B	(part of Durham,	3
see subsection (b))
15A	Alamance	2
15B	Orange, Chatham	1
	16A	Scotland, Hoke	1
16B	Robeson	2
Third	17A	Rockingham	2
17B	Stokes, Surry	2
18A	(part of Guilford,	1
see subsection (b))
18B	(part of Guilford,	1
see subsection (b))
18C	(part of Guilford,	1
see subsection (b))
18D	(part of Guilford,	1
see subsection (b))
18E	(part of Guilford,	1
see subsection (b))
19A	Cabarrus	1
19B	Montgomery, 	1
Randolph
19C	Rowan	1
20A	Anson, Moore, 	2
Richmond
	20B	Stanly, Union	2
	21A	(part of Forsyth,	1
see subsection (b))
21B	(part of Forsyth,	1
see subsection (b))
21C	(part of Forsyth,	1
see subsection (b))
21D	(part of Forsyth,	1
see subsection (b))
22	Alexander, Davidson,	2
Davie, Iredell
23	Alleghany, Ashe, 	1
Wilkes, Yadkin
Fourth	24	Avery, Madison,	1
Mitchell, 
Watauga, Yancey
25A	Burke, Caldwell 	2
	25B	Catawba	2
26A	(part of Mecklenburg,	3
see subsection (b))
26B	(part of Mecklenburg,	2
see subsection (b))
26C	(part of Mecklenburg,	2
see subsection (b))
27A	Gaston	2
27B	Cleveland, Lincoln	2
28	Buncombe	2
29	Henderson,	2
McDowell, Polk,
Rutherford,
Transylvania
	30A	Cherokee, Clay,	1
Graham, Macon,
Swain
30B	Haywood, Jackson	1"
(b)	Effective July 1, 1995, the Governor shall appoint the superior court judge for District 26A authorized by subsection (a) of this section, whose term shall expire December 31, 1996.  The judge's successor shall be elected in the 1996 general election.
(c)	G.S. 7A-60(a1), as amended by Section 21.7 of this act, reads as rewritten:
"(a1)	The counties of the State are organized into prosecutorial districts, and each district has the counties and the number of full-time assistant district attorneys set forth in the following table:
No. of Full-Time
Prosecutorial	Asst. District
District	Counties	Attorneys
1	Camden, Chowan, Currituck,	8
Dare, Gates, Pasquotank,
Perquimans
2	Beaufort, Hyde, Martin,	4
Tyrrell, Washington
3A	Pitt	7
3B	Carteret, Craven, Pamlico	6
4	Duplin, Jones, Onslow,	10
Sampson
5	New Hanover, Pender	9
6A	Halifax	3
6B	Bertie, Hertford,	3
	Northampton
	7	Edgecombe, Nash, Wilson	10
8	Greene, Lenoir, Wayne	8
9	Franklin, Granville,	8
Vance, Warren
9A	Person, Caswell	2
	10	Wake	20
11	Harnett, Johnston, Lee	9
12	Cumberland	12
13	Bladen, Brunswick, Columbus	6
14	Durham	9
15A	Alamance	6
15B	Orange, Chatham	5
16A	Scotland, Hoke	3
16B	Robeson	7
17A	Rockingham	4
17B	Stokes, Surry	4
18	Guilford	18
19A	Cabarrus	 	4
19B	Montgomery, Randolph	5
19C	Rowan	4
20	Anson, Moore, Richmond,	12
Stanly, Union
21	Forsyth	12
22	Alexander, Davidson, Davie,	11
Iredell
23	Alleghany, Ashe, Wilkes,	4
Yadkin
24	Avery, Madison, Mitchell,	3
Watauga, Yancey
25	Burke, Caldwell, Catawba	11
26	Mecklenburg	28
27A	Gaston	8
27B	Cleveland,	5
Lincoln
28	Buncombe	8
29	Henderson, McDowell, Polk,	8
Rutherford, Transylvania
30	Cherokee, Clay, Graham,	7
Haywood, Jackson, Macon,
Swain."

Requested by:   Senators Ballance, Rand
CRIMINAL CASE MANAGEMENT FUNDS
Sec. 21.10.  Of the funds appropriated to the Judicial Department for the 1995-97 biennium, the Administrative Office of the Courts shall use the sum of fifty thousand dollars ($50,000) for the 1995-96 fiscal year and the sum of fifty thousand dollars ($50,000) for the 1996-97 fiscal year to establish a criminal case management pilot program in the Twelfth and Thirteenth Judicial Districts to help reduce the backlog of court cases and resolve new court cases quicker.  A case management facilitator position shall be added to the district attorney's office in both of those judicial districts to help implement the pilot program and the positions shall be filled after consultation with the Senior Resident Superior Court Judges in both of those judicial districts.
The Administrative Office of the Courts shall report by May 1, 1996 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 on the implementation of the pilot program.

PART 22.  DEPARTMENT OF JUSTICE

Requested by:   Senator Ballance
ADDITIONAL STAFF FOR RECORD CHECKS
Sec. 22.  From the funds appropriated in this act to the Department of Justice, Reserve for Criminal Records Checks, the Department of Justice may add one Fingerprint Identification Technician II position and one-half of a Processing Assistant III position for every 10,000 fingerprint record checks that are performed as a result of legislation ratified during the 1995 Session.  These positions shall be filled as needed during the 1995-96 and 1996-97 fiscal years.

PART 23.  DEPARTMENT OF HUMAN RESOURCES

Requested by:  Senator Martin of Guilford
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:   Senator Martin of Guilford
AREA AUTHORITY BOARD TRAINING
Sec. 23.3.  Effective August 1, 1995, 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:  Senator Martin of Guilford
CONFIDENTIAL CLIENT INFORMATION SHARING CLARIFIED
Sec. 23.4.  Effective October 1, 1995, 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:  Senator Martin of Guilford
NONMEDICAID REIMBURSEMENT CHANGES
Sec. 23.5.  Section 23.16 of Chapter 324 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:  Senator Martin of Guilford
LEGISLATIVE RESEARCH COMMISSION STUDY OF ISSUE OF THE POTENTIAL IMPACT OF FEDERAL BLOCK GRANT FUNDING AND OTHER FEDERAL ACTIONS ON MEDICAID ON NORTH CAROLINA
Sec. 23.5A.  The Legislative Research Commission may study the issue of the potential impact of federal block grant funding and other federal actions on Medicaid on North Carolina.
This study shall include:
(1)	An examination of the potential impacts on all of North Carolina's diverse populations effected by Medicaid and on all of North Carolina's organizations that provide programs and services related to Medicaid;
(2)	A determination of the fiscal and organizational adjustments that would need to be made to balance each of the potential impacts; 
(3)	A recommendation of how best the General Assembly may address Medicaid and related issues; and
(4)	Any other Medicaid-related issues.
The Commission may make an interim report of its study, together with any legislative proposals, to the 1995 General Assembly, Regular Session 1996, and may make a final report of its study, together with any legislative proposals, to the 1997 General Assembly.

Requested by:  Senator Martin of Guilford
CLARIFICATION OF LIMITATIONS ON STATE ABORTION FUND
Sec. 23.8A.  Subsection (b) of Section 23.27 of Chapter 324 of the 1995 Session Laws reads as rewritten:
"(b)	Eligibility for services of the State Abortion Fund shall be limited to women whose income is below the federal poverty level, as revised annually, and who are not eligible for Medicaid.  The State Abortion Fund shall be used to fund abortions only to terminate pregnancies resulting from cases of rape or incest, or to terminate pregnancies that, in the written opinion of one doctor licensed to practice medicine in North Carolina, endanger the life of the mother."

Requested by:  Senator Martin of Guilford
CONTINUATION OF THE LEGISLATIVE STUDY OF THE EFFECT OF FEDERAL BUDGETARY POLICY ON WELFARE REFORM
Sec. 23.8B.  (a) The Legislative Study Commission on Welfare Reform, established by Section 47 of Chapter 24, 1993 Session Laws, Extra Session 1994, is continued.  Subsections (d) and (e) of Section 47 of Chapter 24, 1993 Session Laws, Extra Session 1994, are repealed.  The Commission's continued study shall focus on the effects of federal budgetary policy on welfare reform.
(b) The continued Legislative Study Commission on Welfare Reform shall submit a final report to the General Assembly on or before the first day of the 1995 General Assembly, Regular Session 1996, or on or before the first day of any extra session of the 1995 General Assembly called specifically to address welfare reform.  Upon filing its final report, the Commission shall terminate, unless reauthorized by the General Assembly.

Requested by:   Senator Martin of Guilford
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 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 social work positions 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 positions 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:  Senators Perdue, Plyler, Odom, Martin of Guilford
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 August 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 August 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 August 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:  Senators Perdue, Plyler, Odom, Martin of Guilford
ADULT CARE HOME ALLOCATION OF NONFEDERAL COST OF MEDICAID PAYMENTS
Sec. 23.11.  Effective August 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:  Senator Martin of Guilford
DOMICILIARY CARE REPORT
Sec. 23.11A.  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:  Senators Perdue, Plyler, Odom, Martin of Guilford
LIMITATION ON USE OF SPECIAL ALZHEIMER'S UNIT IN WILSON
Sec. 23.11B.  The Special Alzheimer's Unit established in Wilson by funds appropriated in this act shall serve only those clients who cannot be served by any similar private facility.

Requested by:  Senators Perdue, Plyler, Odom, Martin of Guilford
ALZHEIMER'S ASSOCIATION OF NORTH CAROLINA FUNDS
Sec. 23.11C.  Of the funds appropriated to the Division of Aging, Department of Human Resources, in this act, the sum of one hundred thousand dollars ($100,000) for the 1995-96 fiscal year shall be divided equally among the four chapters of the Alzheimer's Association of North Carolina, which are the Western Alzheimer's Chapter, the Southern Piedmont Alzheimer's Chapter, the Eastern Alzheimer's Chapter, and the Triad Alzheimer's Chapter.  Each Chapter shall submit to the Division of Aging, for approval, a plan for the use of these funds, prior to receipt of these funds.

Requested by:  Senators Perdue, Plyler, Odom, Martin of Guilford
IN-HOME AIDE FUNDS
Sec. 23.11D.  Of the funds appropriated to the Division of Aging, 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 five hundred thousand dollars ($500,000) for the 1996-97 fiscal year shall be allocated via the Home and Community Care Block Grant and used to fund in-home aide services and caregiver support services.  These funds shall be used only for direct services.

Requested by:  Senators Perdue, Plyler, Odom, Martin of Guilford
SERVICES TO OLDER AND DISABLED ADULTS, AT-RISK CHILDREN AND YOUTH, AND FAMILIES
Sec. 23.11E.  Of the funds appropriated to the Department of Human Resources in this act for the 1995-96 fiscal year, the sum of two million dollars ($2,000,000) shall be allocated as grants-in-aid to public and private nonprofit human services organizations for programs that provide services, including vocational rehabilitation services, to older and disabled adults, at-risk children and youth, and families.  Prior to any allocation, programs requesting funds shall submit a plan to the Department detailing the use of these funds.

Requested by:  Senators Plyler, Perdue, Odom, Martin of Guilford
INDEPENDENT LIVING REHABILITATION FUNDS
Sec. 23.11F.  (a) The Division of Vocational Rehabilitation Services, Department of Human Resources, shall implement the Independent Living Rehabilitation Program statewide by establishing two new offices in Stanly and Pasquotank Counties in 1995-96 and one new office in Wake County in 1996-97 to facilitate Independent Living Rehabilitation Program services in the 20 remaining unserved counties and by providing adequate administrative support to existing offices and the new offices established pursuant to this section.
(b) Any funds appropriated in this act for the 1995-96 fiscal year for the purpose specified in subsection (a) of this section that are not required to be expended or encumbered for this purpose may be used during the 1995-96 fiscal year for one-time service purchases for Independent Living Rehabilitation Program clients waiting for services in existing offices.

Requested by:  Senators Martin of Guilford, Forrester
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:  Senator Martin of Guilford
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:  Senator Martin of Guilford
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:   Senator Martin of Guilford
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 in accordance with the United States General Accounting Office auditing standards.  The Office of State Budget and Management 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 by December 1, 1996.
(c) From funds appropriated in Chapter 324 of the 1995 Session Laws for the 1995-96 fiscal year to the Division of Services for the Deaf and Hard of Hearing, Department of Human Resources, for early intervention services, the Division shall develop, with participation from the Department of Public Instruction, the Department of Environment, Health, and Natural Resources, and Beginnings, Inc., (i) a comprehensive plan for early intervention, outreach, evaluation, and training to serve deaf education statewide and (ii) a plan to use the Central North Carolina School for the Deaf in Greensboro as a statewide resource.

Requested by:  Senator Martin of Guilford
PERFORMANCE EVALUATION OF CARING PROGRAM FOR CHILDREN, INC.
Sec. 23.19A.  The Office of State Budget and Management shall perform a performance audit of the Caring Program for Children, Inc.'s program for providing health care for children in accordance with the United States General Accounting Office auditing standards and shall report the results of this audit to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office by May 1, 1996.

Requested by:  Senator Martin of Guilford
BRAILLE LITERACY FUNDS
Sec. 23.21.  Of the funds appropriated in this act to the Division of Services for the Blind, Department of Human Resources, the sum of one hundred seventy-five thousand dollars ($175,000) for the 1995-96 fiscal year and the sum of one hundred seventy-five thousand dollars ($175,000) for the 1996-97 fiscal year, shall be used for braille literacy, for up to four professionals certified as teachers of the visually impaired to assist local school administrative units primarily in rural areas of the State in providing appropriate services for students who are visually impaired.

Requested by:  Senator Martin of Guilford
EMERGENCY BACKUP FOR HEART-LUNG BYPASS MACHINE
Sec. 23.22.  (a) The acquisition of a second heart-lung bypass machine by a health service facility that has only one heart-lung bypass machine is exempt from the requirements of Article 9 of Chapter 131E of the General Statutes, in order to ensure appropriate coverage for emergencies.  In no instance shall both machines be scheduled for use simultaneously after the second machine is acquired.
(b) This section continues in effect until repealed.

Requested by:  Senator Odom
THOMAS S. LAWSUIT COMPLIANCE
Sec. 23.23.  The Department of Justice and the Department of Human Resources shall pursue all administrative and legal options necessary to enable the State to resolve the Thomas S. lawsuit in the most expeditious and cost-effective manner possible and to seek elimination of the necessity for oversight by a special master.

Requested by:  Senator Odom
MENTAL HEALTH STUDY COMMISSION STUDY OF FUNDING FOR SINGLE PORTAL OF ENTRY AND EXIT FOR AREA MENTAL HEALTH AUTHORITIES
Sec. 23.24.  The Mental Health Study Commission shall study the issue of how the mandate for a single portal of entry and exit for area mental health authorities should be funded.  The Commission shall include the results of this study in its report to the 1995 General Assembly, Regular Session 1996.

PART 23A. HEALTH CARE REFORM

Requested by: Senators Martin of Guilford, Forrester, Perdue, Rand
INSURANCE REFORM
Sec. 23A.1. (a) Article 3 of Chapter 58 of the General Statutes is amended by adding a new section to read:
"§ 58-3-173.  Guaranteed renewability; provisions.
(a)	As used in this section:
(1)	'Health benefit plan' means a plan covering a group of persons and in the form of: an accident and health insurance policy or certificate; a nonprofit hospital or medical service corporation contract; a health maintenance organization subscriber contract; a plan provided by a multiple employer welfare arrangement; or a plan provided by another benefit arrangement, to the extent permitted by the Employee Retirement Income Security Act of 1974, as amended, or by other federal law or regulation.  'Health benefit plan' does not mean any of the following kinds of insurance:
a.	Accident
b.	Credit
c.	Disability income
d.	Long-term or nursing home care
e.	Medicare supplement
f.	Specified disease
g.	Dental or vision
h.	Coverage issued as a supplement to liability insurance
i.	Workers' compensation
j.	Medical payments under automobile or homeowners
k.	Hospital income or indemnity
l.	Insurance under which benefits are payable with or without regard to fault and that is statutorily required to be contained in any liability policy or equivalent self-insurance.
(2)	'Insurer' includes an entity subject to Articles 49, 65, or 67 of this Chapter.
(b)	An insurer shall not modify any health benefit plan with respect to any insured through riders, endorsements, or otherwise, in order to restrict or exclude coverage for certain diseases or medical conditions otherwise covered by the health benefit plan.
(c)	Renewal of the health benefit plans shall be guaranteed by the insurer except:
(1)	For nonpayment of the required premium by the policyholder or contract holder.
(2)	For fraud or material misrepresentation by the policyholder or contract holder.
(3)	When the insurer ceases providing health benefit plans, provided notice of the decision to cease providing health benefit plans is given to the Commissioner and to the policyholder or contract holder six months before the renewal of the health benefit plan would have taken effect."
(b)	G.S. 58-50-130(a)(2) reads as rewritten:
"(2)	In determining whether a preexisting-conditions provision applies to an eligible employee or to a dependent, all health benefit plans shall credit the time the person was covered under a previous group health benefit plan if the previous coverage was continuous to a date not more than 60 days before the effective date of the new coverage, exclusive of any applicable waiting period under the plan.  As used in this subdivision with respect to previous coverage, 'health benefit plan' is not limited to plans subject to this act under G.S. 58-50-115."
(c)	G.S. 58-51-80(b)(3) reads as rewritten:
"(3)	Policies may contain a provision limiting coverage for preexisting conditions.  Preexisting conditions must be covered no later than 12 months after the effective date of coverage.  Preexisting conditions are defined as 'those conditions for which medical advice or treatment was received or recommended or which could be medically documented within the 12-month period immediately preceding the effective date of the person's coverage.'  Preexisting conditions exclusions may not be implemented by any successor plan as to any covered persons who have already met all or part of the waiting period requirements under any previous plan.  Credit must be given for that portion of the waiting period which was met under the previous plan. As used in this subdivision, a 'previous plan' includes any health benefit plan provided by a health insurer, as those terms are defined in G.S. 58-51-115, or any government plan or program providing health benefits or health care.  For employer groups of 50 or more persons and for groups under subdivision (1a) of this subsection and under G.S. 58-51-81:  In determining whether a preexisting condition provision applies to an eligible employee, association member, student, or to a dependent, all health benefit plans shall credit the time the person was covered under a previous plan if the previous plan's coverage was continuous to a date not more than 60 days before the effective date of the new coverage, exclusive of any applicable waiting period under the new coverage."
(d)	G.S. 58-51-80(h) reads as rewritten:
"(h)	Nothing contained in this section applies to any contract issued by any corporation defined in Article 65 of this Chapter. Subdivision (b)(3) of this section applies to MEWAs, as defined in G.S. 58-49-30(a)."
(e)  G.S. 58-65-60(e)(2) reads as rewritten:
"(2)	Employer master group contracts may contain a provision limiting coverage for preexisting conditions.  Preexisting conditions must be covered no later than 12 months after the effective date of coverage.  Preexisting conditions are defined as 'those conditions for which medical advice or treatment was received or recommended or which could be medically documented within the 12-month period immediately preceding the effective date of the person's coverage.'  Preexisting conditions exclusions may not be implemented by any successor plan as to any covered persons who have already met all or part of the waiting period requirements under any previous plan.  Credit must be given for that portion of the waiting period which was met under the previous plan.  As used in this subdivision, a 'previous plan' includes any health benefit plan provided by a health insurer, as those terms are defined in G.S. 58-51-115, or any government plan or program providing health benefits or health care.  For employer groups of 50 or more persons: In determining whether a preexisting condition provision applies to an eligible employee or to a dependent, all health benefit plans shall credit the time the person was covered under a previous plan if the previous plan's coverage was continuous to a date not more than 60 days before the effective date of the new coverage, exclusive of any applicable waiting period under the new coverage."
(f)  G.S. 58-67-85(c) reads as rewritten:
"(c)	Employer master group contracts may contain a provision limiting coverage for preexisting conditions.  Preexisting conditions must be covered no later than 12 months after the effective date of coverage.  Preexisting conditions are defined as 'those conditions for which medical advice or treatment was received or recommended or which could be medically documented within the 12-month period immediately preceding the effective date of the person's coverage.'  Preexisting conditions exclusions may not be implemented by any successor plan as to any covered persons who have already met all or part of the waiting period requirements under any previous plan.  Credit must be given for that portion of the waiting period which was met under the previous plan.  As used in this subsection, a 'previous plan' includes any health benefit plan provided by a health insurer, as those terms are defined in G.S. 58-51-115, or any government plan or program providing health benefits or health care.  In determining whether a preexisting condition provision applies to an eligible employee or to a dependent, all health benefit plans shall credit the time the person was covered under a previous plan if the previous plan's coverage was continuous to a date not more than 60 days before the effective date of the new coverage, exclusive of any applicable waiting period under the new coverage."
(g) G.S. 58-51-15(a)(2)b. reads as rewritten:
"b.	This policy contains a provision limiting coverage for preexisting conditions.  Preexisting conditions must be covered no later than one year after the effective date of coverage.  Preexisting conditions are defined as 'those conditions for which medical advice or treatment was received or recommended or that could be medically documented within the one-year period immediately preceding the effective date of the person's coverage.'  Preexisting conditions exclusions may not be implemented by any successor plan as to any covered persons who have already met all or part of the waiting period requirements under any previous plan.  Credit must be given for that portion of the waiting period that was met under the previous plan.  As used in this policy, the term 'previous plan' includes any health benefit plan provided by a health insurer, as those terms are defined in G.S. 58-51-115, or any government plan or program providing health benefits or health care.  In determining whether a preexisting condition provision applies to an insured person, all health benefit plans must credit the time the person was covered under a previous plan if the previous plan's coverage was continuous to a date not more than 60 days before the effective date of the new coverage, exclusive of any applicable waiting period under the new coverage."
(h) G.S. 58-50-130(a)(5) reads as rewritten:
"(5)	Notwithstanding any other provision of this Chapter, no small employer carrier, insurer, subsidiary of an insurer, or controlled individual of an insurance holding company shall act as an administrator or claims paying agent, as opposed to an insurer, on behalf of small groups which, if they purchased insurance, would be subject to this section. "

Requested by: Senators Martin of Guilford, Forrester, Perdue, Rand
MALPRACTICE CASES/ALTERNATIVE DISPUTE RESOLUTION
Sec. 23A.2.  The Administrative Office of the Courts shall study the efficiency and effectiveness of requiring that parties to medical malpractice actions attempt to resolve their dispute through alternative dispute resolution proceedings before proceeding to trial.  The study shall specifically address whether mandatory alternative dispute resolution is appropriate for all medical malpractice cases.
The Administrative Office of the Courts shall report its findings and recommendations to the General Assembly not later than May 1, 1996.  The AOC shall indicate in its report whether legislation is necessary to carry out its recommendations.

Requested by: Senators Martin of Guilford, Forrester, Perdue, Rand 
NORTH CAROLINA HEALTH PLANNING COMMISSION REORGANIZATION
Sec. 23A.3. (a)	G.S. 143-611 reads as rewritten:
"§ 143-611.  Commission established; members; terms of office; quorum; compensation.
(a)	Establishment. –  There is established the North Carolina Health Planning Commission with the powers and duties specified in this Article.  The Commission shall be located within the Office of the Secretary, Department of Human Resources, for organizational, budgetary, and administrative purposes.
(b)	Membership and Terms. – The Commission shall consist of 16 members, as follows:
(1)	The Governor or the Governor's designee;
(2)	The Lieutenant Governor;
(3)	The Speaker of the House of Representatives;
(4)	The President Pro Tempore of the Senate;
(5)	Four members appointed by the Speaker of the House of Representatives, at least two of whom are members of the House of Representatives at the time of appointment; 
(6)	 Four members appointed by the President Pro Tempore of the Senate, at least two of whom are  members of the Senate at the time of the appointment; and 
			(7a)	Four members appointed by the Governor, two of whom shall be members of the majority party in this State and two of whom shall be members of the minority party in this State.
Members shall serve two-year terms.  Vacancies in membership shall be filled by the appointing authority in accordance with this section.
(c)	Compensation. – The Commission members shall receive no salary as a result of serving on the Commission but shall receive necessary subsistence and travel expenses in accordance with the provisions of G.S. 120-3.1, 138-5, and 138-6, as applicable.
(d)	Meetings. – The Governor shall convene the Commission.  Meetings shall be held as often as necessary, but not less than six times a year.
(e)	Quorum. – A majority of the voting members of the Commission shall constitute a quorum for the transaction of business.  The affirmative vote of a majority of the members present at meetings of the Commission shall be necessary for action to be taken by the Commission."
(b)	G.S. 143-612 is repealed.
(c)	Article 65 of Chapter 143 of the General Statutes is amended by adding the following new section to read:
"§ 143-612A. Powers and duties of the Commission.
(a)	Administrative Powers. – The Commission shall have the following administrative powers:
(1)	To appoint a director, who shall be exempt from the State Personnel Act, and to employ other staff as it deems necessary, subject to the State Personnel Act, and to fix their compensation;
(2)	To enter into contracts to carry out the purposes of this Article;
(3)	To conduct investigations and inquiries and compel the submission of information and records the Commission deems necessary; and
(4)	To accept grants, contributions, devises, bequests, and gifts for the purpose of providing financial support to the Commission.  Such funds shall be retained by the Commission.
(b)	Monitoring. – The Commission shall monitor health care reform efforts in the State and shall report to the Governor and the General Assembly on the following:
(1)	Cost-containment measures;
(2)	Accessibility to health care in rural and medically underserved areas through the enhancement of provider payments;
(3)	Availability of affordable health insurance for small businesses, including the Health Care Purchasing Alliances, to determine if these are meeting the health insurance needs of small business employers and their employees;
(4)	Efforts to increase the purchasing power of government health programs;
(5)	How closely health expenditures for the public and private sectors relate to the rate of real economic growth and determine the cumulative effect on cost-containment; and
(6)	The number of persons who lack access to primary care providers.
(c)	Study. –  The Commission shall study the following issues and may recommend to the General Assembly actions to address these issues:
(1)	The steps necessary to include the populations served by Medicaid, including a statement of any necessary federal waivers;
(2) 	The steps necessary to obtain an exemption from the federal Employee Retirement and Income Security Act (ERISA);
(3)	Examine the roles of other existing publicly financed systems of health coverage such as Medicare, federal employee health benefits, health benefits for armed services members, the Veterans Administration, the CHAMPUS program (10 U.S.C. § 1071 et seq.), and any other health benefits currently mandated by State or federal law or funded by State agencies;
(4)	The means by which the delivery of health care will ensure that the needs of special populations of eligible residents such as low-income persons, people living in rural and underserved areas, and people with disabilities and chronic or unusual medical needs will be met;
(5)	The role of the existing county health care system in health care reform efforts;
(6)	Feasibility of consolidating the health care components of workers' compensation and automobile insurance to avoid duplication of coverage;
(7)	The appropriate means of financing medical education and medical research;
(8)	The means by which North Carolina's need for long-term care services can best be met, including an examination of the appropriateness and availability of home- and community-based services;
(9)	Methods to increase the number of mobile health care units that provide services to communities that are underserved with respect to health care;
(10)	The impact on health care cost and efficiency of rule changes made by State and local government agencies pertaining to health care services.  The study shall include the impact of the frequency of such rule changes;
(11)	The impact of managed care on persons living in rural communities and accessibility of these persons to health services within a reasonable distance and length of time;
(12)	Privatization of administrative, clinical, and mental health functions performed by governmental agencies and entities;
(13)	The impact of federal budget decisions on underserved and underinsured populations;
(14)	The need for additional primary care practitioners, including primary care physicians, physician assistants, and family nurse practitioners;
(15)	The appropriate method of collecting data for both quality assurance and cost containment, and in guiding the proliferation of new medical technologies;
(16)	The need for additional benefits and population-based services to be offered in the community, based on the established priorities for improving community health status in the community;
(17)	Quality of care currently provided and recommend necessary activities to assure that health care is of sufficient quality to adequately serve the health needs of the citizenry and to improve overall health status of the State's population;
(18)	Ways in which employer-based coverage may be maximized;
(19)	Trends in the numbers of uninsured and underinsured persons and the barriers to access by these persons;
(20)	Ways to maintain emergency medical services when hospital beds are reconfigured;
(21)	Study effectiveness of different types of preventive health services;
(22)	Study mechanisms to promote price competition through the development of standardized benefits plans which shall be offered on a guarantee-to-issue and guaranteed renewability basis.  In conducting the study, the Commission shall consider:
a.	Whether such products should be available in the nongroup as well as the group market;
b.	The feasibility of offering parity for mental health and substance abuse services in at least one of the standardized benefit plans;
c.	The feasibility of offering full coverage of preventive services in at least one of the standardized benefit plans; and
d.	Mechanisms for periodic review of the products offered with the elimination and replacement of any plans that have proven to be unmarketable.
(d)	Other Duties. – The Commission shall do the following and shall report to the Governor and the General Assembly on the progress of these activities:
(1)	Develop methods to ensure adequate primary care for all eligible residents and appropriate compensation for primary care services to achieve that end;
(2)	Review and identify initiatives and incentives to enhance the practice of primary care medicine in rural areas of the State;
(3)	Identify or develop incentives to encourage diversification in health care facilities in rural and other areas of the State; and
(4)	Develop incentives and initiatives pertaining to the development of community-based health networks in rural areas, including:
a.	Review of existing community-based and provider-based health networks;
b.	Efforts that encourage community leaders and local health care providers to work together to develop community-based health networks; and
c.	Development of health networks that emphasize health status in the community;
(5)	Develop cost assessments for the following:
a.	Total expenditures;
b.	Public expenditures including Medicaid and State Health Plan benefits;
c.	Private expenditures including amounts for traditional insurance, HMOs, individual out-of-pocket and uncompensated care; and
d.	Types of service including primary, secondary, or tertiary care, physician, or hospital care.
	In evaluating this data, the Commission shall determine the sectors of the health care system that are growing the fastest, and shall educate the public and government leaders about the real cost of delivering health care to North Carolina's citizens;
(6)	Assess the impact of the locum tenens program;
(7)	Develop alternative ways of expanding coverage to uninsured persons;
(8)	Determine the feasibility of establishing a procedure for the development and issuance of report cards that are consistent statewide and that enable consumers and payers to compare the quality and value of services provided by different insurance carriers and health plans.  The study shall include an examination of information already collected by private organizations providing quality review;
(9)	Review current conflict-of-interest laws; and
(10)	Review proposals on collaborative practice.
(e)	Notwithstanding any other provision in this Article or Article 68A of Chapter 58 of the General Statutes, the Commission may develop its own health care proposals or plans or make any other recommendations to the General Assembly.
(f)	The Commission shall appoint such advisory, technical, and professional panels as it deems necessary to advise it on the performance and administration of its functions.  Each panel shall consist of experts drawn from the health professions, health educational institutions, providers of services, insurers, and other sources, including consumers.
(g)	The Commission shall report annually to the General Assembly on or before January 1 of each fiscal year, on its duties and responsibilities under this section."

Requested by: Senators Martin of Guilford, Forrester, Perdue, Rand 
HEALTH PROFESSIONAL LICENSING BOARD REPORTING
Sec. 23A.4.  Effective October 1, 1995, Chapter 93B of the General Statutes is amended by adding the following new section to read:
"§ 93B-12.  Information from licensing boards having authority over health care providers.
(a)	Every occupational licensing board having authority to license physicians, physician assistants, nurse practitioners, and nurse midwives in this State shall modify procedures for license renewal to include the collection of information specified in this section for each board's regular renewal cycle.  The purpose of this requirement is to assist the State in tracking the availability of health care providers to determine which areas in the State suffer from inequitable access to specific types of health services and to anticipate future health care shortages which might adversely affect the citizens of this State.  Occupational licensing boards, in consultation with the North Carolina Health Planning Commission, shall collect, report, and update the following information:
(1)	Area of health care specialty practice;
(2)	Address of all locations where the licensee practices; and
(3)	Other information the occupational licensing board in consultation with the North Carolina Health Planning Commission deems relevant to assisting the State in achieving the purpose set out in this section.
(b)	Every occupational licensing board required to collect information pursuant to subsection (a) of this section shall report and update the information on an annual basis to the North Carolina Health Planning Commission. Information provided by the occupational licensing board pursuant to this subsection may be provided in such form as to omit the identity of the health care licensee."

Requested by: Senators Martin of Guilford, Forrester, Perdue, Rand 
PRIMARY CARE PROVIDERS
Sec. 23A.5.  G.S. 143-613 reads as rewritten:
"§ 143-613.  Medical education; primary care physicians and other providers.
	(a)	In recognition of North Carolina's need for primary care physicians, Bowman Gray School of Medicine and Duke University School of Medicine shall each prepare a plan with the goal of encouraging North Carolina residents to enter the primary care disciplines of general internal medicine, general pediatrics, family medicine, obstetrics/gynecology, and combined medicine/pediatrics and to strive to have at least fifty percent (50%) of North Carolina residents graduating from each school entering these disciplines.  These schools of medicine shall present their plans to the Board of Governors of The University of North Carolina by April 15, 1996, and shall update and present their plans every two years thereafter.  The Board of Governors shall report to the Joint Legislative Education Oversight Committee by May 15, 1996, and every two years thereafter on the status of these efforts to strengthen primary health care in North Carolina.
(b)	The Board of Governors of The University of North Carolina shall set goals for the Schools of Medicine at the University of North Carolina at Chapel Hill and the School of Medicine at East Carolina University for increasing the percentage of graduates who enter residencies and careers in primary care.  A minimum goal should be at least sixty percent (60%) of graduates entering primary care disciplines.  Each school shall submit a plan with strategies to reach these goals of increasing the number of graduates entering primary care disciplines to the Board by April 15, 1996, and shall update and present the plans every two years thereafter.  The Board of Governors shall report to the Joint Legislative Education Oversight Committee by May 15, 1996, and every two years thereafter on the status of these efforts to strengthen primary health care in North Carolina.
Primary care shall include the disciplines of family medicine, general pediatric medicine, general internal medicine, internal medicine/pediatrics, and obstetrics/gynecology.
(b1)	The Board of Governors of The University of North Carolina shall set goals for State-operated health professional schools that offer training programs for licensure or certification of physician assistants, nurse practitioners, and nurse midwives for increasing the percentage of the graduates of those programs who enter clinical programs and careers in primary care.  Each State-operated health professional school shall submit a plan with strategies for increasing the percentage to the Board by April 15, 1996, and shall update and present the plan every two years thereafter.  The Board of Governors shall report to the Joint Legislative Education Oversight Committee by May 15, 1996, and every two years thereafter on the status of these efforts to strengthen primary health care in North Carolina.
(c)	The Board of Governors of The University of North Carolina shall further initiate whatever changes are necessary on admissions, advising, curriculum, and other policies for State-operated medical schools and health professional schools to ensure that larger proportions of students seek residencies and clinical training in primary care disciplines.  The Board shall work with the Area Health Education Centers and other entities, adopting whatever policies it considers necessary to ensure that residency and clinical training programs have sufficient residency and clinical positions for graduates in these primary care specialties.  As used in this subsection, health professional schools are those schools or institutions that offer training for licensure or certification of physician assistants, nurse practitioners, and nurse midwives.
(d)	The progress of the private and State-operated medical schools and State-operated health professional schools towards increasing the number and proportion of graduates entering primary care shall be monitored annually by the Board of Governors of The University of North Carolina.  Monitoring data shall include (i) the entry of State-supported graduates into primary care residencies and clinical training programs, and (ii) the specialty practices by a physician and each midlevel provider who were State-supported graduates as of a date five years after graduation.  The Board of Governors shall certify data on graduates, their residencies and clinical training programs, and subsequent careers by October 1 of each calendar year, beginning in October of 1995, to the Fiscal Research Division of the Legislative Services Office and to the Joint Legislative Education Oversight Committee.
(e)	The information provided in subsection (d) of this section shall be made available to the Appropriations Committees of the General Assembly for their use in future funding decisions on medical and health professional education."

Requested by: Senators Martin of Guilford, Forrester, Perdue, Rand 
PUBLIC HEALTH STUDY COMMISSION
Sec. 23A.6.  (a)	G.S. 120-196 reads as rewritten:
"§ 120-196.  Commission duties.
The Commission shall study the availability and accessibility of public health services to all citizens throughout the State. In conducting the study the Commission shall:
(1)	Determine whether the public health services currently available in each county or district health department conform to the mission and essential services established under G.S. 130A-1.1;
(2)	Study the workforce needs of each county or district health department, including salary levels, professional credentials, and continuing education requirements, and determine the impact that shortages of public health professional personnel have on the delivery of public health services in county and district health departments;
(3)	Review the status and needs of local health departments relative to facilities, and the need for the development of minimum standards governing the provision and maintenance of these facilities;
(4)	Propose a long-range plan for funding the public health system, which plan shall include a review and evaluation of the current structure and financing of public health in North Carolina and any other recommendations the Commission deems appropriate based on its study activities; 
(5)	Conduct any other studies or evaluations the Commission considers necessary to effectuate its purpose; and
(6)	Study the capacity of small counties to meet the core public health functions mandated by current State and federal law.  The Commission shall consider whether the current county and district health departments should be organized into a network of larger multidistrict community administrative units.  In making its recommendations on this study, the Commission shall consider whether the State should establish minimum populations for local health departments, and if so, shall recommend the number of and configuration for these multicounty administrative units and shall recommend a series of incentives to ease county transition into these new arrangements."
(b) Section 8.1 of Chapter 771 of the 1993 Session Laws reads as rewritten:
"Sec. 8.1.  This act is effective upon ratification.  "

PART 24. DEPARTMENT OF AGRICULTURE

Requested by:   Senator Martin of Pitt
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."

Requested by:   Senators Martin of Pitt, Kerr
DAIRY FACILITY AT CHERRY FARM UNIT
Sec. 24.1.  The sum of two hundred fifty thousand dollars ($250,000) shall be transferred from the Department of Agriculture's timber sales capital improvement account, established pursuant to G.S. 146-30, to the Department of Agriculture for the 1995-96 fiscal year and shall be used to construct and equip a new dairy facility to be located at the Cherry Farm Unit.

PART 25. DEPARTMENT OF COMMERCE

Requested by: Senator Martin of Pitt 
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 one hundred thousand dollars ($100,000) for the 1995-96 fiscal year and the sum of one hundred thousand dollars ($100,000) for the 1996-97 fiscal year shall be used for the North Carolina Industrial Commission to implement subsection (a) of this section.

Requested by: Senators Perdue, Martin of Pitt, Odom
WANCHESE SEAFOOD INDUSTRIAL PARK FUNDS
Sec. 25.1.  Funds appropriated in Chapter 324 of the 1995 Session Laws to the Department of Commerce for the Wanchese Seafood Industrial Park may be expended by the North Carolina Seafood Industrial Park Authority for operations, maintenance, repair, and capital improvements in accordance with Article 23C of Chapter 113 of the General Statutes.

Requested by: Senator Martin of Pitt
INDUSTRIAL RECRUITMENT COMPETITIVE FUND REPORTING REQUIREMENT
Sec. 25.2.  The Department of Commerce shall report on or before October 1, 1995 and quarterly thereafter to the Joint Legislative Commission on Governmental Operations on the commitment, allocation, and use of funds allocated from the Industrial Recruitment Competitive Fund.

Requested by: Senator Martin of Pitt 
NORTH CAROLINA BIOTECHNOLOGY CENTER FUNDS
Sec. 25.3.  Of the funds appropriated in this act to the North Carolina Biotechnology Center, the sum of one million dollars ($1,000,000) for the 1995-96 fiscal year shall be used to expand the special biotechnology program initiative for North Carolina's Public Historically Black Universities and Pembroke State University.  The reporting requirements applicable to the North Carolina Biotechnology Center under Section 25.8 of Chapter 324 of the 1995 Session Laws shall apply to funds allocated under this section.

Requested by: Senators Martin of Pitt, Ballance, Lucas, C.R. Edwards, Gulley, Rand, Kerr, Cooper 
FUNDS FOR ECONOMIC DEVELOPMENT
Sec. 25.4.  Of the funds appropriated in this act to the Rural Economic Development Center, Inc., the sum of three million eight hundred thousand dollars ($3,800,000) for the 1995-96 fiscal year shall be placed in an Economic and Community Development Program Reserve and shall be allocated by the Center for economic and community development projects.  Programs and purposes for which funds may be allocated from the Reserve include technical assistance to institutions that make loans to low-income applicants, assistance to low-income applicants for business loans, aid to rural, low-income families, job training programs, community development programs, supplemental funding for infrastructure, and economic development policy analysis, information, and technical assistance.  The Rural Economic Development Center, Inc. shall report to the Joint Legislative Commission on Governmental Operations on October 1 and March 1 of each fiscal year, and more frequently as requested by the Commission, on the amounts and uses of funds allocated pursuant to this section.

Requested by:  Senator Martin of Pitt
CLEVELAND COUNTY PARTICIPATION IN ECONOMIC DEVELOPMENT COMMISSION
Sec. 25.5.  (a)	Effective August 1, 1995, 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: Senator Martin of Pitt
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)	'OSBM' means the Office of State Budget and Management.
(4)	'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 or federal 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.
(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)	The ESC in consultation with OSBM 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.
(c)	Based on data collected under the CFS, the Office of State Budget and Management shall evaluate the effectiveness of job training, education, and placement programs to determine if specific program goals and objectives are attained, to determine placement and completion rates for each program, and to make recommendations regarding the continuation of State funding for programs evaluated.  The ESC shall provide to OSBM data collected under the CFS in a manner and with the frequency necessary for the Office of State Budget and Management to conduct the evaluation required under this subsection.  The ESC shall consult with OSBM to determine the most efficient and effective method for providing to OSBM data collected under the CFS.  The OSBM shall maintain the same levels of confidentiality with respect to CFS data received from the ESC as is required of the ESC under this Article. OSBM shall coordinate with the Office of State Planning to determine what data will be collected to support the State planning and budgetary process.
"§ 96-33. State agencies required to provide information and data.
(a)	Every State agency and local government agency or entity that receives State or federal 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. Reports on common follow-up system activities.
(a)	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 on 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.
(b)	The Office of State Budget and Management shall report to to the Governor and to the General Assembly upon the convening of each biennial session, its evaluation of and recommendations regarding job training, education, and placement programs for which data was provided to the CFS.

Requested by: Senator Martin of Pitt
PETROLEUM OVERCHARGE FUND 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: Senator Martin of Pitt
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: Senator Martin of Pitt
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 Community Colleges to enhance the curriculum funding formula for community colleges job training programs;
(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: Senator Cochrane
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 1995-96 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 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: Senator Hobbs
FUNDS FOR ESC NOTIFICATION OF EARNED INCOME CREDIT
Sec. 25.11.  The Department of Commerce, Employment Security Commission, may spend up to twenty-five thousand dollars ($25,000) in each fiscal year from the Special Employment Security Administration Fund to reprint and mail notices regarding the federal Earned Income Credit to unemployment insurance recipients.

Requested by: Senator Martin of Pitt 
NORTH CAROLINA TECHNOLOGICAL DEVELOPMENT AUTHORITY/REPORTING
Sec. 25.12.  The North Carolina Technological Development Authority, Inc. shall report on all of its programs to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division on March 1 of each fiscal year, and more frequently as requested by the Commission.  The reports shall include information on the activities and the accomplishments during the past fiscal year, 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: Senator Martin of Pitt
INDUSTRIAL COMMISSION MEDIATION/SUNSET OFF
Sec. 25.13.  Section 5 of Chapter 399 of the 1993 Session Laws reads as rewritten:
"Sec. 5.  Section 3 of this act is effective upon ratification.  Sections 1, 2, and 4 of this act become effective October 1, 1993, only if the General Assembly appropriates funds to implement the purpose of these sections, and apply to claims pending on or filed after the effective date."

Requested by: Senator Martin of Pitt 
WORLD TRADE CENTER FUNDS
Sec. 25.14.  Of the funds appropriated in this act to the Department of Commerce, the sum of two hundred thousand dollars ($200,000) for the 1995-96 fiscal year shall be allocated to the North Carolina World Trade Center to continue to provide education programs for small and medium sized businesses.  The Department shall report to the Joint Legislative Commission on Governmental Operations on the use of these funds on or before March 1 of each fiscal year, and more frequently as required by the Commission.

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

Requested by:   Senator Martin of Pitt
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:   Senator Martin of Pitt
WATERSHED FUNDS/REVERSIONS
Sec. 26.1.  (a)	The Office of State Budget and Management shall revert funds allocated in subdivisions (a)(14) and (15) of Section 107 of Chapter 561 of the 1993 Session Laws as provided in subsection (b) of Section 107 of Chapter 561 of the 1993 Session Laws.
(b)	Notwithstanding any other provision of law, the funds allocated in subdivision (a)(17) of Section 107 of Chapter 561 of the 1993 Session Laws shall not revert until June 30, 1997.

Requested by:   Senator Martin of Pitt
RANDLEMAN DAM RESERVE RELEASE RESTRICTIONS
Sec. 26.2.   The funds appropriated in Chapter 769 of the 1993 Session Laws for the Randleman Dam shall be held in a reserve until a signed contract for construction is secured and delivered and construction is begun.

Requested by:   Senator Martin of Pitt
AGRICULTURE COST SHARE PROGRAM
Sec. 26.2A.  Of the funds appropriated in Chapter 324 of the 1995 Session Laws to the Department of Environment, Health, and Natural Resources for the 1995-96 fiscal year for the Agriculture Cost Share Program for Nonpoint Source Pollution Control, the sum of fifty thousand dollars ($50,000) shall be used for additional funding for the demonstration project authorized in Section 165 of Chapter 689 of the 1991 Session Laws.  These funds shall be used in accordance with the match requirements specified in G.S. 143-215.74(b)(6).

Requested by:   Senators Martin of Pitt, Albertson
AGRICULTURE COST SHARE FUNDS FOR CAPITAL FOR THE MANAGEMENT OF AGRICULTURE WASTE
Sec. 26.2B.  Of the funds appropriated in this act to the Department of Environment, Health, and Natural Resources, Division of Soil and Water Conservation, for the 1995-96 fiscal year for the Agriculture Cost Share Program for Nonpoint Source Pollution Control, the sum of five hundred thousand dollars ($500,000) shall be used for the 1995-96 fiscal year for capital expenses associated with developing agriculture waste management measures that reduce agricultural nonpoint source discharges, consistent with G.S. 143-214.5(a).  These funds shall be used in accordance with the match and program requirements set forth in G.S. 143-215.74(b).  Any funds remaining at the end of the 1995-96 fiscal year shall not revert, but shall remain available for the use authorized by this subsection.

Requested by:   Senator Martin of Pitt
MARINE FISHERIES LAW ENFORCEMENT PERSONNEL
Sec. 26.4.  The additional law enforcement positions authorized by this act for the Division of Marine Fisheries, Department of Environment, Health, and Natural Resources shall not be located in Raleigh.

Requested by:   Senator Martin of Pitt
MARINE FISHERIES 
Sec. 26.5. (a)	Subsection (a) of Section 3 of Chapter 675 of the 1993 Session Laws, Regular Session 1994, reads as rewritten:
"(a)	Except as provided in subsections (b), (c), (c1), or (c2), the Department shall not issue any new licenses for a period beginning July 1, 1994, and ending June 30, 1997, under the following statutes:
(1)	G.S. 113-152.  Vessel licenses.
(2)	G.S. 113-153.1.  Crab License.
(3)	G.S. 113-154.  Shellfish license
(4)	G.S. 113-154.1.  Nonvessel endorsements to sell fish."
(b)	G.S. 113-154 is amended by adding a new subsection to read:
"( c1)	A shellfish leaseholder under G.S. 113-202, or a water column leaseholder under G.S. 113-202.1 or G.S. 113-202.2 who purchases an individual shellfish license under this section, may utilize up to two additional persons to take shellfish from the leaseholder's lease without purchasing additional individual shellfish licenses.  The leaseholder shall be on the premises supervising the person or persons and the person or persons shall be restricted to taking shellfish only from the leaseholder's lease."
(c)	G.S. 113-182(b) is amended by adding a new subdivision to read:
"(3)	The possession, transportation, importation, exportation, sale, purchase, acquisition, and disposition of all fish taken in the Atlantic Ocean out to a distance of 200 miles from the State's mean low watermark, when the harvest or landing of the fish is controlled by a quota imposed on the State by a federal fisheries management plan."
(d)	Section 3 of Chapter 576 of the 1993 Session Laws is amended by adding a new subsection to read:
"(c2)	During the moratorium, a license required to participate in a fishery regulated by a federal fisheries management plan under G.S. 113-182(b)(3) may only be issued to a person who:
(1)	Held a valid vessel licensed issued under G.S. 113-152, a valid land or sell license issued under G.S. 113-153, or a combination of the two licenses, during at lease two of the three years immediately preceding ratification;
(2)	Participated in the fishery for which a license or permit is required during at lease two of the three years immediately preceding ratification;
(3)	Landed in North Carolina during each year of participation in the fishery the minimum pounds of fish as established by the Commission in duly adopted rules."
(e) Of the funds appropriated in this act to the Department of Environment, Health, and Natural Resources for the 1995-96 fiscal year and for the 1996-97 fiscal year the sum of twenty- five thousand dollars ($25,000) shall be allocated each fiscal year to support the activities of the Moratorium Steering Committee.
(f) Of the funds appropriated to the Department of Environment, Health, and Natural Resources for the 1995-96 fiscal year and for the 1996-97 fiscal year the sum of ten thousand dollars ($10,000) shall be allocated each fiscal year to support the activities of the Appeals Panel during the moratorium on fisheries licenses.
(g)  Subsection (c) of this section is effective upon ratification.

Requested by:   Senator Martin of Pitt
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, Scotland, 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 seventy-two thousand six hundred ninety dollars ($372,690) 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, Scotland, 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 27 participating counties.

Requested by:   Senator Martin of Pitt
STUDY ALTERNATIVES FOR DISPOSAL OF DREDGING MATERIALS
Sec. 26.7.  The Department of Environment, Health, and Natural Resources shall study the feasibility and benefit of using the materials dredged from waterways to create artificial wetlands or island marshes as an alternative method of disposing of dredge material.  The Department shall consider the "island marshes" located offshore of the Aransas National Wildlife Refuge on the Texas coast as a model.  The Department shall report to the Joint Legislative Commission on Governmental Operations regarding its findings and recommendations by March 1, 1996.

Requested by: Senator Hoyle 
FOOD SANITATION FUNDS
Sec. 26.8. (a) Of the funds appropriated in this act to the Department of Environment, Health, and Natural Resources, the sum of one hundred thousand dollars ($100,000) for the 1995-96 fiscal year and the sum of one hundred thousand dollars ($100,000) for the 1996-97 fiscal year shall be used to conduct regional conferences to provide continuing education and training of environmental health specialists.
(b)	Effective January 1, 1996, G.S. 130A-248(a3), as amended by Chapter 123 of the 1995 Session Laws, reads as rewritten:
"(a3)	The rules adopted by the Commission pursuant to subsections (a), (a1), and (a2) of this section shall address, but not be limited to, the following:
(1)	Sanitation requirements for cleanliness of floors, walls, ceilings, storage spaces, utensils, ventilation equipment, and other areas and items;
(2)	Requirements for:
a.	Lighting and water supply;
b.	Wastewater collection, treatment, and disposal facilities; and
c.	Lavatory and toilet facilities, food protection, and waste disposal;
(3)	The cleaning and bactericidal treatment of eating and drinking utensils and other food-contact surfaces;
(3a)	The appropriate and reasonable use of gloves or utensils by employees who handle unwrapped food;
(4)	The methods of food preparation, transportation, catering, storage, and serving;
(5)	The health of employees;
(6)	Animal and vermin control; and
(7)	The prohibition against the offering of unwrapped food samples to the general public unless the offering and acceptance of the samples are continuously supervised by an agent of the entity preparing or offering the samples or by an agent of the entity on whose premises the samples are made available.  As used in this subdivision, 'food samples' means unwrapped food prepared and made available for sampling by and without charge to the general public for the purpose of promoting the food made available for sampling.  This subdivision does not apply to unwrapped food prepared and offered in buffet, cafeteria, or other style in exchange for payment by the general public or by the person or entity arranging for the preparation and offering of such unwrapped food.  This subdivision shall not apply to open air produce markets nor to farmer market facilities operated on land owned or leased by the State of North Carolina or any local government.
The rules shall contain a system for grading facilities, such as Grade A, Grade B, and Grade C.  The rules shall be written in a manner that promotes consistency in both the interpretation and application of the grading system."
(c)	Effective January 1, 1996, G.S. 130A-39(b) reads as rewritten:
"(b)	A local board of health may adopt a more stringent rule in an area regulated by the Commission for Health Services or the Environmental Management Commission where, in the opinion of the local board of health, a more stringent rule is required to protect the public health; otherwise, the rules of the Commission for Health Services or the rules of the Environmental Management Commission shall prevail over local board of health rules. However, a local board of health may not adopt a rule concerning the grading, operating, and permitting of food and lodging facilities as listed in Part 6 of Article 8 of this Chapter and as defined in G.S. 130A-247(1), and a local board of health may adopt rules concerning wastewater collection, treatment and disposal systems which are not designed to discharge effluent to the land surface or surface waters only in accordance with G.S. 130A-335(c)."
(d)	G.S. 130A-30(a) reads as rewritten:
"(a)	The Commission for Health Services shall consist of 13 members, four of whom shall be elected by the North Carolina Medical Society and nine of whom shall be appointed by the Governor."
(e)	The Department of Environment, Health, and Natural Resources, in consultation with the North Carolina Restaurant Association, shall review all rules and forms that govern the sanitation of restaurants and other food handling establishments for vagueness, inconsistency, and lack of specificity and shall develop a plan to improve uniformity of interpretation and application of these rules across the State.  The Department shall present the plan to the Commission for Health Services by December 31, 1996, along with any recommendations for rule modification.  The Department, in consultation with the Association, shall continue to monitor and address the interpretation and application of the rules, forms, and other food service matters.

Requested by: Senators Martin of Pitt, Warren
FUNDS FOR HEART DISEASE AND STROKE PREVENTION TASK FORCE
Sec. 26.9. (a) Of the funds appropriated in this act to the Department of Environment, Health, and Natural Resources, the sum of one hundred thousand dollars ($100,000) for the 1995-96 fiscal year and the sum of one hundred thousand dollars ($100,000) for the 1996-97 fiscal year shall be used to support the North Carolina Heart Disease and Stroke Prevention Task Force created under this section.
(b)	The North Carolina Heart Disease and Stroke Prevention Task Force is created in the Division of Adult Health Promotion, Department of Environment, Health, and Natural Resources.
(c)	The Task Force shall have 27 members.  The Governor shall appoint the Chair, and the Vice-Chair shall be elected by the Task Force.  The Director of the Division of Adult Health Promotion in the Department of Environment, Health, and Natural Resources, the Director of the Division of Medical Assistance in the Department of Human Resources, and the Director of the Division of Aging in the Department of Human Resources, or their designees, shall be members of the Task Force.  Appointments to the Task Force shall be made as follows:
(1)	By the General Assembly upon the recommendation of the President Pro Tempore of the Senate, as follows:
a.	Three members of the Senate;
b.	A heart attack survivor;
c.	A local health director;
d.	A certified health educator;
e.	A hospital administrator; and
f.	A representative of the North Carolina Association of Area Agencies on Aging.
(2)	By the General Assembly upon the recommendation of the Speaker of the House of Representatives, as follows:
a.	Three members of the House of Representatives;
b.	A stroke survivor;
c.	A county commissioner;
d.	A registered dietitian;
e.	A pharmacist; and
f.	A registered nurse.
(3)	By the Governor, as follows:
a.	A practicing family physician, pediatrician, or internist;
b.	A president or chief executive officer of a business upon recommendation of a North Carolina wellness council which is a member of the Wellness Councils of America;
c.	A news director of a newspaper or television or radio station;
d.	A volunteer of the North Carolina Affiliate of the American Heart Association;
e.	A representative from the North Carolina Cooperative Extension Service;
f.	A representative of the Governor's Council on Physical Fitness and Health; and
g.	Two members at large.
(d)	Each appointing authority shall assure insofar as possible that its appointees to the Task Force reflect the composition of the North Carolina population with regard to ethnic, racial, age, gender, and religious composition.
(e)	The General Assembly and the Governor shall make their appointments to the Task Force not later than 30 days after the adjournment of the 1995 General Assembly, Regular Session 1995.  A vacancy on the Task Force shall be filled by the original appointing authority, using the criteria set out in this section for the original appointment.
(f)	The Task Force shall meet at least quarterly or more frequently at the call of the Chair.
(g)	The Task Force Chair may establish committees for the purpose of making special studies pursuant to its duties, and may appoint non-Task Force members to serve on each committee as resource persons.  Resource persons shall be voting members of the committees and shall receive subsistence and travel expenses in accordance with G.S. 138-5 and G.S. 138-6.  Committees may meet with the frequency needed to accomplish the purposes of this section.
(h)	Members of the Task Force shall receive per diem and necessary travel and subsistence expenses in accordance with G.S. 120-3.1, 138-5 and 138-6, as applicable.
(i)	A majority of the Task Force shall constitute a quorum for the transaction of its business.
(j)	The Task Force may use funds allocated to it to establish two positions and for other expenditures needed to assist the Task Force in carrying out its duties.
(k)	The Heart Disease and Stroke Prevention Task Force has the following duties:
(1)	To undertake a statistical and qualitative examination of the incidence of and causes of heart disease and stroke deaths and risks, including identification of subpopulations at highest risk for developing heart disease and stroke, and establish a profile of the heart disease and stroke burden in North Carolina.
(2)	To publicize the profile of the heart disease and stroke burden and its preventability in North Carolina.
(3)	To identify priority strategies which are effective in preventing and controlling risks for heart disease and stroke.
(4)	To identify, examine limitations of, and recommend to the Governor and the General Assembly changes to existing laws, regulations, programs, services, and policies to enhance heart disease and stroke prevention by and for the people of North Carolina.
(5)	To determine and recommend to the Governor and the General Assembly the funding and strategies needed to enact new or to modify existing laws, regulations, programs, services, and policies to enhance heart disease and stroke prevention by and for the people of North Carolina.
(6)	To adopt and promote a statewide comprehensive Heart Disease and Stroke Prevention Plan to the general public, State and local elected officials, various public and private organizations and associations, businesses and industries, agencies, potential funders, and other community resources.
(7)	To identify and facilitate specific commitments to help implement the Plan from the entities listed in subdivision (6) above.
(8)	To facilitate coordination of and communication among State and local agencies and organizations regarding current or future involvement in achieving the aims of the Heart Disease and Stroke Prevention Plan.
(9)	To receive and consider reports and testimony from individuals, local health departments, community-based organizations, voluntary health organizations, and other public and private organizations statewide, to learn more about their contributions to heart disease and stroke prevention, and their ideas for improving heart disease and stroke prevention in North Carolina.
(l)	The Task Force shall submit to the Governor and to the General Assembly a preliminary report by January 1, 1996; an interim report within the first week of the convening of the 1997 General Assembly; and a final report by October 1, 1997.  The reports shall address the Plan, actions and resources needed to fully implement the Plan, and progress in achieving implementation of the Plan to reduce the occurrence of and burden from heart disease and stroke in North Carolina.  The reports shall include an accounting of funds expended and anticipated funding needs for full implementation of recommended plans and programs.
(m)	Upon submission of its final report to the Governor and the 1997 General Assembly, the Task Force shall expire.

Requested by:   Senator Martin of Pitt
ABOVEGROUND STORAGE TANKS INSPECTION AND MONITORING
Sec. 26.10.  (a)	Of the funds appropriated to the Department of Environment, Health, and Natural Resources in this act for the 1995-96 fiscal year, the sum of four hundred thousand dollars ($400,000) shall be used to conduct periodic inspections at major oil terminal facilities, as defined in G.S. 143-215.77, and bulk petroleum facilities and the equipment at these facilities to determine whether oil or any other hazardous substance is being discharged into the environment and, at the facility and in the area surrounding the facility, to monitor the quality of the air, water, and soil and analyze air, water, and soil samples to determine the presence of toxic emissions, water quality degradation, or soil contamination.
	(b)	Beginning October 1, 1995, and quarterly thereafter, the Department of Environment, Health, and Natural Resources shall submit a report of its inspection and monitoring activities pursuant to subsection (a) of this section to the Environmental Review Commission.

Requested by:   Senators Martin of Pitt, Odom, Perdue, Plyler, Hobbs, McKoy
ANIMAL WASTE SYSTEM COMPLIANCE INSPECTORS
Sec. 26.11.  (a)	Of the funds appropriated to the Department of Environment, Health, and Natural Resources in this act, the sum of four hundred fifty-nine thousand two hundred ninety-two dollars ($459,292) for the 1995-96 fiscal year and the sum of four hundred twenty-four thousand seven hundred ninety-two dollars ($424,792) for the 1996-97 fiscal year shall be used for staff and operating expenses for the Department to conduct inspections, enforcement activities, and laboratory analyses to ensure compliance with the animal waste certification requirements that become effective December 1997. 
(b)	The staff who conduct inspections pursuant to subsection (a) of this section shall cooperate with owners and operators of agricultural operations and shall provide planning assistance and oversight to ensure proper implementation of the animal waste.

Requested by:   Senators Cooper, Ballance, Speed
MULTI-COUNTY WATER CONSERVATION AND INFRASTRUCTURE DISTRICT
Sec. 26.12.  Effective upon ratification, Chapter 158 of the General Statutes is amended by adding a new Article to read:
"Article 2A.
"Multi-County Water Conservation and Infrastructure District.
"§ 158-15.1. Multi-County Water Conservation and Infrastructure District.
(a)	There is established the Multi-County Water Conservation and Infrastructure District, which is a public authority for the purpose of the Local Government Budget and Fiscal Control Act.
(b)	The member counties of the Multi-County Water Conservation and Infrastructure District are Bertie, Granville, Halifax, Martin, Northampton, Person, Vance and Warren.
(c)	The governing body of the Multi-County Water Conservation and Infrastructure District is the Multi-County Water Commission, which has eight members.  One shall be appointed by the board of commissioners of each member county for a three-year term.
(d)	All monies received by the State of North Carolina for sale of water under the Roanoke River Basin Compact, if enacted, shall be paid to the Multi-County Water Conservation and Infrastructure District.
(e)	The District may accept for any of its purposes and functions any and all donations, grants of money, equipment, supplies, materials and services (conditional or otherwise) from any state or the United States or any subdivision or agency thereof, or interstate agency, or from any political subdivision of this State or any other state, or from any institution, person, firm or corporation, and may receive, utilize and dispose of the same. The nature, amount and condition, if any, attendant upon any donation or grant accepted pursuant to this subsection together with the identity of the donor or grantor, shall be detailed in the annual audit of the District.
(f)	At times specified by the Multi-County Water Commission, net revenues after operating expenses of the District shall be paid to the member counties according to the following formula: (i) one-half pro-rata based on population of each member county; and (ii) one-half pro-rata based on land area of each county.
(g)	Member counties may use funds received under this section for public purposes relating to infrastructure development, economic development, and water conservation.
(h)	The Commission may adopt such rules as may be needful for operation of its affairs, and shall employ and terminate personnel as if it were a county."

PART 26A.  CAPITAL IMPROVEMENTS - GENERAL FUND

Sec. 26A.  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. 26A.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
Capital Improvements

Department of Administration (Total)	$44,273,400 $31,298,000

1.	Indian Culture Center
Various site improvements	175,000
2.	Construct New Prison Beds
Funds to construct 1,384 new beds	43,284,700 31,298,000

Facility	Number of Beds

Female Facility-Triad Area	104
Female Boot Camp-Hoffman	 60
Western Area GPAC
  Consolidation Unit	624
  Segregation Unit	 40
Expand Polk Youth Center	104
144
100
Expand Warren Corr.
  Institution	168
  Segregation Unit	 40

Total	1,384

Southern Piedmont Area - Plan, design, site development,
and begin construction for a 624-bed facility with 40
segregation cells in FY 1995-96.

3.	Electronic Intrusion System
Install Electronic Intrusion System at
N.C. Correctional Institution
for Women	813,700

Department of Agriculture (Total)	3,257,200 3,000,000

4.	Dairy Facility - Cherry Farm
Cherry Farm

Total Requirements	507,200
Less: Timber Sales
Receipts	250,000	257,200

5.	Eastern N.C. Agricultural Center
Continued Development	3,000,000 3,000,000

Department of Crime Control and
Public Safety (Total)	200,000

6.	Kinston National Guard Armory
Additional State match for bid
overrun	200,000

Department of Cultural Resources (Total)	8,350,000

7.	Reserve for
Land acquisition and development	3,000,000
8.	Elizabeth II State Historic Site	5,000,000
9.	Museum of Art-Facilities Planning	250,000
10.	N.C. Pottery Center-Planning	100,000

Department of Human Resources (Total)	1,020,000

11.	Gaston Detention Center	270,000
12.	Leonard Secure Unit-
Renovate Richmond Correction Center
as Single Detention Center
for Bound-Overs	750,000

Department of Justice (Total)	1,741,000 2,795,600

13.	N.C. Justice Academy-
Replace Blue Bell Building at N.C.
Justice Academy	1,500,000
14.	N.C. Justice Academy-
Replace maintenance shed	445,400
15.	N.C. Justice Academy-
Construct new classroom
building	1,295,600 1,295,600

Environment, Health, and Natural
Resources (Total)	19,065,000

16.	State Parks and Natural Areas
Preservation, development, and
acquisition	10,000,000
17.	North Carolina Aquariums
Planning	1,300,000
18.	Museum of Natural Science Exhibits
Planning and Design	400,000
19.	Water Resources Projects	2,065,000
20.	Marine Fisheries
Replacement of law enforcement
vessel	300,000
21.	Water and Sewer Demonstration
Projects
New technology projects particularly
in the area of environmental
disposal and system creation	5,000,000

State Budget and Management (Total)	285,000

22.	Global TransPark
Engineering and design for Kinston
Regional Jet Port Military
Construction Project (State Match)	285,000

UNC Board of Governors (Total)	27,560,200 52,325,500

23.	NC State University
Centennial Center Funds	4,000,000 3,000,000
24.	UNC-Chapel Hill/N.C. State University
Marine Science Facility	500,000 7,300,000
25.	UNC-TV Southeastern Tower in
Lumberton	1,980,000
26.	UNC-Chapel Hill
Law School	5,057,600 5,000,000
27.	UNC-Chapel Hill School of Pharmacy
Planning	1,000,000
28.	East Carolina University-
Life Sciences Building	2,700,000 4,423,800
29.	NC A&T State University
Classroom Building Planning	1,000,000
30.	UNC-Asheville
Kellogg Center	500,000
31.	UNC-General Administration
Administrator's Academy	9,871,100
32.	NC State University
4-H Environmental Education
Center	2,545,300
33.	NC Central University
Education Building	6,031,700 9,600,000
34.	Elizabeth City State University
Vaughan Center Addition	2,190,500
35.	Fayetteville State University
Student Center Addition	3,790,900
36.	UNC-Chapel Hill
Center for Dramatic Art	8,394,800
37.	UNC-Chapel Hill
Medical Biomolecular and Neuro-
sciences Research Building.	1,000,000

TOTAL CAPITAL	$105,751,800 $89,419,100

PART 27. CAPITAL AND SPECIAL PROVISIONS

Requested by:   Senator Warren
NORTH CAROLINA INFORMATION HIGHWAY FUNDS
Sec. 27. (a) 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.
(b) Beginning October 1, 1995, the Controller shall report quarterly to the Joint Legislative Commission on Governmental Operations regarding the costs incurred by the Office of the State Controller related to the operations and support of the North Carolina Information Highway, and shall make a final report to the General Government Appropriations Subcommittees for the Senate and the House of Representatives and to the 1995 General Assembly, 1996 Regular Session. 
(c) 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:   Senator Warren
DATA PROCESSING RESERVE
Sec. 27.1.  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:   Senator Warren
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 three million dollars ($3,000,000) 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:   Senator Warren
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 three million dollars ($3,000,000) 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: Senator Ballance
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, Mitchell, Yancey, or Watauga County.
(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:  Senator Ballance
MATCHING FUNDS FOR FEDERAL PRISON CONSTRUCTION FUNDS
Sec. 27.10A.  Appropriations made in this act to the Office of State Construction of the Department of Administration for construction of new prison beds, excluding the sum of ten million eight hundred eighty-seven thousand nine hundred dollars ($10,887,900) to be used for the design and preliminary site work, are to match federal funds available for prison construction in the 1996 federal fiscal year or subsequent federal fiscal years.  If the federal match is not made available by January 1, 1996, these State funds shall be made available to the Office of State Construction of the Department of Administration for construction of new prison beds, segregation units, and support buildings and systems as specified in this act.  To the extent that the Director of the Budget finds that State funds appropriated in this act for construction of new prison beds are not required for prison construction because of the availability of federal funds, the sum of six million dollars ($6,000,000) shall be made available to the Department of Justice for construction of the SBI Operations Building.  Any remaining funds that the Director of the Budget finds are not needed for prison construction, not to exceed the sum of fifty million dollars ($50,000,000), shall be transferred to a Reserve for Education Purposes in the Office of State Budget and Management.
The Office of State Construction shall report to the Chairs of the Joint Legislative Commission on Governmental Operations, the Chairs of the Senate and House Appropriations Committees, and the Chairs of the Senate and House Appropriations Subcommittees on Justice and Public Safety on the availability of federal prison construction matching funds.

Requested by:   Senator Ballance
REVERSION OF CERTAIN INSURANCE SETTLEMENT PROCEEDS
Sec. 27.10B.  Section 22(b) of Chapter 324 of the 1995 Session Laws reads as rewritten:
"(b)	Any funds received by the Department of Justice in settlement of insurance claims arising from damage to the Blue Bell building at the North Carolina Justice Academy shall be expended by the Department for replacement of the building and for no other purpose.  Any funds received by the Department in excess of one million one hundred thousand dollars ($1,100,000) as insurance settlement proceeds shall revert to the General Fund."

Requested by:   Senator Martin of Pitt
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.

Requested by:   Senator Martin of Pitt
STATE PARKS CAPITAL
Sec. 27.13.  Of the funds appropriated in this act to the Department of Environment, Health, and Natural Resources for the 1995-96 fiscal year for capital improvements and land acquisition at State Parks, no more than three percent (3%) may be used by the Department for operating expenses associated with managing capital improvements projects and acquiring land.

Requested by:  Senator Martin of Pitt
REPAIRS AND RENOVATIONS FUNDS FOR REPAIR OF UNSAFE BUILDINGS
Sec. 27.14.  Notwithstanding any other provision of law, funds in the Reserve for Repairs and Renovations for the 1995-96 fiscal year may be allocated to the Department of Agriculture to repair or replace any structure that the Department of Insurance declares is in violation of the State Building Code and is unsafe to the extent that occupancy may be denied.

Requested by:   Senator Sherron
UNC SELF-LIQUIDATING PROJECT AUTHORIZED
Sec. 27.15.  (a)	The purpose of this section is to authorize the construction by certain constituent institutions of The University of North Carolina and the University of North Carolina Hospitals at Chapel Hill, of the capital improvements projects listed in the act for the respective institutions, and authorize the financing of these projects with funds available to the institutions from gifts, grants, receipts, including patient receipts at the University of North Carolina Hospitals at Chapel Hill, self-liquidating indebtedness, or other funds, or any combination of these funds, but not including funds appropriated from the General Fund of the State.
(b)	The capital improvements projects authorized by this section to be constructed and financed as provided in subsection (a) of this section are as follows:
1.	Appalachian State University
Improvements to Student Residence Facilities	$ 3,697,600
Replacement of Artificial Surfaces
in Kidd Brewer Stadium 	$1,140,000.

2.	East Carolina University
Dowdy-Ficklen Stadium Expansion	$11,183,800
Renovations and Addition to the Student
Health Center		$ 3,048,800
Removal of Architectural Barriers	$13,805,300
3.	North Carolina A & T State University
Student Union Renovation and Addition	$ 4,395,000
4.	North Carolina Central University
Renovation of Track and Football Stadium	$ 2,835,000
5.	North Carolina State University
Partners' II Building	$ 8,077,500
Partners' III Building (Engineering
	Corporate Building)	$10,311,700
Student Health Services Center	$ 7,104,500
6.	The University of North Carolina at Asheville
180-Bed Residence Hall	$ 3,750,600
7.	The University of North Carolina at Chapel Hill
Addition to the Biological Sciences Research
Center Building	$ 9,374,000
Residence Hall Video Network and
	Communications Wiring	$ 4,000,500
Printing Services Center	$ 2,083,100
8.	The University of North Carolina at Charlotte
1000 Space Parking Deck	$ 7,525,200
Cameron Applied Research Center	$ 4,876,100
9.	The University of North Carolina at Greensboro
Baseball Stadium		$ 3,759,100
10.	The University of North Carolina at Wilmington
200 Student Residence Hall	$ 5,942,700
Campus Recreation Facility	$10,484,500
11.	Western Carolina University
Renovation of Hinds University Center	$ 4,250,000
12.	The University of North Carolina Hospitals at
Chapel Hill
North Carolina Children's Hospital, North
Carolina Women's Hospital and Support
Services - Phase II		$59,970,800.
(c)	At the request of The University of North Carolina Board of Governors and upon determining that it is in the best interest of the State to do so, the Director of the Budget may authorize an increase or decrease in the scope of or a change in the method of funding the project authorized by this section.  In making a determination of whether to authorize a change in scope or funding, the Director of the Budget may consult with the Advisory Budget Commission.  In no event may appropriations from the General Fund be used for a project authorized by this section.
Sec. 27.16.  (a)	The purpose of this section is to amend Section 2 of the 1993 Session Laws, Chapter 451, as it relates to the University of North Carolina at Greensboro by increasing the amount authorized for the McIver Street Parking Deck from five million seven hundred eight thousand six hundred dollars ($5,708,600) to eight million forty-one thousand four hundred dollars ($8,041,400).
(b)	Section 2 of Chapter 451 of the 1993 Session Laws under the institutional subheading "6.  The University of North Carolina at Greensboro" as indicated, and affecting only the project listed in this act is amended to read as follows:
"c.	McIver Street Parking Deck	$8,041,400".

PART 28.  GENERAL CAPITAL AND MISCELLANEOUS BUDGET PROVISIONS

Requested by:  Senators Plyler, Perdue, Odom
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:  Senators Plyler, Perdue, Odom
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:  Senators Plyler, Perdue, Odom
ENCUMBERED APPROPRIATIONS AND PROJECT RESERVE FUND
Sec. 28.2.  When each capital improvement project appropriated by the 1995 General Assembly, other than those projects under the Board of Governors of The University of North Carolina, is placed under a construction contract, direct appropriations shall be encumbered to include all costs for construction, design, investigation, administration, movable equipment, and a reasonable contingency.  Unencumbered direct appropriations remaining in the project budget shall be placed in a project reserve fund credited to the Office of State Budget and Management.  Funds in the project reserve may be used for emergency repair and renovation projects at State facilities with the approval of the Director of the Budget.  The project reserve fund may be used, at the discretion of the Director of the Budget, to allow for award of contracts where bids exceed appropriated funds, if those projects supplemented were designed within the scope intended by the applicable appropriation or any authorized change in it, and if, in the opinion of the Director of the Budget, all means to award contracts within the appropriation were reasonably attempted.  At the discretion of the Director of the Budget, any balances in the project reserve fund shall revert to the original source.

Requested by:  Senators Plyler, Perdue, Odom
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:  Senators Plyler, Perdue, Odom
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:  Senators Plyler, Perdue, Odom
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:   Senators Plyler, Perdue, Odom
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 1995 General Assembly may be expended only for specific projects set out by the 1995 General Assembly and for no other purpose.  Construction of all capital improvement projects enumerated by the 1995 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:  Senators Plyler, Perdue, Odom
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:  Senators Plyler, Perdue, Odom
COMMITTEE REPORT
Sec. 28.8.  (a)	The Senate Appropriations Committee Report on Expansion Budget/Capital Budget, dated July 12, 1995, which was distributed in the Senate and used to explain this act, shall indicate action by the General Assembly on this act and shall therefore be used to construe this act, as provided in G.S. 143-15 of the Executive Budget Act, and for these purposes shall be considered a part of this act.
(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 Senate Appropriations Committee Report on Expansion Budget/Capital Budget, dated July 12, 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:  Senators Plyler, Perdue, Odom
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 biennium, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 1995-97 fiscal biennium.

Requested by:  Senators Plyler, Perdue, Odom
1995-97 APPROPRIATIONS LIMITATIONS AND DIRECTIONS APPLY
Sec. 28.10. (a) Except as amended by this act, the provisions of Chapter 324 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 biennium in Chapter 324 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:  Senators Plyler, Perdue, Odom
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:  Senators Plyler, Perdue, Odom
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:  Senators Plyler, Perdue, Odom
EFFECTIVE DATE
Sec. 28.13.  Except as otherwise provided, this act becomes effective July 1, 1995.