GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

S	2 

SENATE BILL 620
Appropriations Committee Substitute Adopted 6/29/98

Short Title:  Continuing Budget Authority.	(Public)

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Sponsors:

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Referred to: 

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April 1, 1997

A BILL TO BE ENTITLED
AN ACT TO AUTHORIZE THE DIRECTOR OF THE BUDGET TO CONTINUE EXPENDITURES FOR THE OPERATION OF GOVERNMENT AT THE LEVEL IN EFFECT ON JUNE 30, 1998, AND TO EXTEND EXPIRING PROVISIONS OF LAW.
The General Assembly of North Carolina enacts:
BUDGET CONTINUATION
Section 1.  The Director of the Budget shall allocate funds for expenditure for current operations by State departments, institutions, and agencies, as provided in S.L. 1997-443 and as otherwise provided by law. The Director of the Budget shall not allocate funds for any of the purposes set out in the proposed base budget reductions submitted to the Regular 1998 Session of the General Assembly by the Governor.  
Vacant positions subject to the proposed base budget cuts shall not be filled.  State employees in positions subject to the proposed base budget cuts and State employees in positions funded with nonrecurring funds for the 1997-98 fiscal year shall be given 30 days' notice of termination.
There is appropriated from the appropriate State funds and cash balances, federal receipts, and departmental receipts for the 1998-99 fiscal year, funds necessary to carry out the provisions of this act. 
The appropriations and the authorizations to spend funds in this section shall remain in effect until ratification of the Current Operations Appropriations and Capital Improvement Appropriations  Act of 1998, at which time that act shall become effective and shall govern appropriations and expenditures.  Upon ratification of the "Current Operations Appropriations and Capital Improvement  Appropriations  Act of 1998", the Director of the Budget shall adjust allocations to give effect to that act from July 1, 1998.

NER BLOCK GRANT FUNDS
Section 2.  (a) Appropriations from federal block grant funds are made for the fiscal year ending June 30, 1999, according to the following schedule:

COMMUNITY DEVELOPMENT BLOCK GRANT

01.	State Administration	$    980,000

02.	Urgent Needs and Contingency	   1,277,400

03.	Community Empowerment	   2,767,700

04.	Economic Development	   8,516,000

05.	Community Revitalization	  28,528,600

06.	State Technical Assistance	     440,000

07.	Housing Development	1,490,300

TOTAL COMMUNITY DEVELOPMENT
BLOCK GRANT - 1999 Program Year	$ 44,000,000

(b)	Decreases in Federal Fund Availability
Decreases in federal fund availability for the Community Development Block Grants – If federal funds are reduced below the amounts specified above after the effective date of this act, then every program in each of these federal block grants shall be reduced by the same percentage as the reduction in federal funds.
(c)	Increases in Federal Fund Availability for Community Development Block Grant
Any block grant funds appropriated by the Congress of the United States in addition to the funds specified in this section shall be expended as follows: – Each program category under the Community Development Block Grant shall be increased by the same percentage as the increase in federal funds.
(d)	Limitations on Community Development Block Grant Funds – Of the funds appropriated in this section for the Community Development Block Grant, the following shall be allocated in each category for each program year: up to nine hundred thousand dollars ($900,000) may be used for State administration; up to one million two hundred seventy-seven thousand four hundred dollars ($1,277,400) may be used for Urgent Needs and Contingency; up to two million seven hundred sixty-seven thousand seven hundred dollars ($2,767,700) may be used for Community Empowerment; up to eight million five hundred sixteen thousand dollars ($8,516,000) may be used for Economic Development; not less than twenty-eight million five hundred twenty-eight thousand six hundred dollars ($28,528,600) shall be used for Community Revitalization; up to four hundred forty thousand dollars ($440,000) may be used for State Technical Assistance; up to one million four hundred ninety thousand three hundred dollars ($1,490,300) may be used for Housing Development.  If federal block grant funds are reduced or increased by the Congress of the United States after the effective date of this act, then these reductions or increases shall be allocated in accordance with subsection (b) or (c) of this section, as applicable.
(e) Scattered Sites Program Improvements – The Department shall implement improvements to the system for distributing Scattered Sites awards in the Community Revitalization category to maximize funding opportunities. The Department shall make changes in the funding cycle for Scattered Sites projects, shall reduce the cap on grants for these projects to three hundred fifty thousand dollars ($350,000), and shall increase funding allocations by up to fifteen percent (15%) to address outhouses and other critical on-site water/wastewater needs.  The Department may adopt temporary rules to implement these changes.
(f)  This section expires August 15, 1998.

BLOCK GRANT PROVISIONS – DHHS
Section 3.  (a)	The Director of the Budget shall continue to allocate federal block grant funds at the levels provided as provided in Section 5 of S.L. 1997-443 and as otherwise provided by law.
(b)	This section expires August 15, 1998.

EMPLOYEE SALARIES
Section 4.  The salary schedules and specific salaries established for fiscal year 1997-98 in S.L. 1997-443 for offices and positions shall remain in effect until the effective date of the Current Operations Appropriations and Capital Improvement Appropriations  Act of 1998.
Teachers and other employees shall not move up on these salary schedules or receive automatic, annual, performance, merit, or other increments or bonuses until authorized by the General Assembly.

TEMPORARY EMPLOYEES OF THE GENERAL ASSEMBLY
Section 5.  G.S. 120-32(1) reads as rewritten:
"(1)	Determine the number, titles, classification, functions, compensation, and other conditions of employment of the joint legislative service employees of the General Assembly, including, but not limited to, the following departments:
a.	Legislative Services Officer and personnel,
b.	Electronic document writing system,
c.	Proofreaders,
d.	Legislative printing,
e.	Enrolling clerk and personnel,
f.	Library,
g.	Research and bill drafting,
h.	Printed bills,
i.	Disbursing and supply;
	Temporary employees of the General Assembly are exempt from the provisions of G.S. 135-3(8)c., as to compensation earned in that status."

CASH FLOW HIGHWAY FUND AND HIGHWAY TRUST FUND APPROPRIATIONS
Section 6.  Section 32.13 of S.L. 1997-443 reads as rewritten:
"Section 32.13.  The General Assembly authorizes and certifies anticipated revenues of the Highway Fund as follows:
FY 1999-2000	$1,190.8 million
FY 2000-2001	$1,225.7 million
FY 2001-2002	$1,265.4 million
FY 2002-2003	$1,301.0 million
The General Assembly authorizes and certifies anticipated revenues of the Highway Trust Fund as follows:
FY 1999-2000	$871.4 million
FY 2000-2001	$901.8 million
FY 2001-2002	$934.7 million
FY 2002-2003	$967.2 million."

ALLOCATIONS FOR PUBLIC SCHOOLS
Section 7. There is allocated from unexpended 1997-98 General Fund appropriations the sum of fifty-five million twenty-seven thousand six hundred eighty dollars ($55,027,680) which shall be used as follows:
(1)	$17,118,003 to fulfill the State's obligations to  public school employees who qualified for performance bonuses for the 1997-98 school year under the ABC's of Public Education Program;
(2)	$9,010,274 to fulfill the State's obligations to public school teachers who qualified for longevity payments for the 1997-98 school year;
(3)	$24,199,403 to permit the State Board of Education to order school buses needed for the 1998-99 school year; and
(4)	$4,700,000 for the State School Technology Fund to provide additional school technology funds prior to the beginning of the 1998-99 school year.

FUNDS TO IMPLEMENT THE ABC'S OF PUBLIC EDUCATION PROGRAM
Section 8. Section 8.36(a) of S.L. 1997-443 reads as rewritten:
"(a)	Of the funds appropriated to State Aid to Local School Administrative Units, the State Board of Education shall  provide incentive funding for schools that meet or exceed the projected levels of improvement in student performance, in accordance with the ABC's of Public Education Program.  In accordance with State Board of Education policy, incentive awards in schools that achieve higher than expected improvements may be up to: (i)	one thousand five hundred dollars ($1,500) for each teacher and for certified personnel; and (ii) five hundred dollars ($500.00) for each teacher assistant.  In accordance with State Board of Education policy, incentive awards in schools that meet the expected improvements may be up to: (i) seven hundred fifty dollars ($750.00) for each teacher and for certified personnel; and (ii) three hundred seventy-five dollars ($375.00) for each teacher assistant."

OUTDOOR ADVERTISING JUST COMPENSATION SUNSET EXTENDED
Section 9.  Section 2 of Chapter 1147 of the 1981 Session Laws, as amended by all of the following:
Chapter 318 of the 1983 Session Laws
Chapter 1024 of the 1987 Session Laws
Section 1 of Chapter 166 of the 1989 Session Laws
Section 1 of Chapter 725 of the 1993 Session Laws
reads as rewritten:
"Sec. 2.  This act is effective upon ratification, but shall expire August 15, 1998, and shall have no force or effect after that date."

DISCONTINUE DEPARTMENT OF TRANSPORTATION SALES TAX REIMBURSEMENT FROM HIGHWAY FUND TO GENERAL FUND
Section 10.  G.S. 105-164.44D is suspended from July 1, 1998, to August 15, 1998.

DISCONTINUE BOND RETIREMENT TRANSFER FROM HIGHWAY FUND TO HIGHWAY TRUST FUND
Section 11.  G.S. 136-176(a)(4) and G.S. 136-183 are suspended from July 1, 1998, to August 15, 1998.

EXTEND THE DEADLINE FOR MATCHING COMMUNITY COLLEGE BOND FUNDS
Section 12. (a) Section 6(b)IV of Chapter 542 of the 1993 Session Laws, as added by Section 4 of Chapter 515 of the 1995 Session Laws, reads as rewritten:
"IV. If the State Board of Community Colleges determines that a community college has not met the matching requirements of G.S. 115D-31(a)(1) by July 1, 1999, with respect to a capital improvement project for which bond proceeds are allocated in subdivision I or pursuant to subdivision II of this subsection, the Board shall certify that fact to the State Treasurer by October 1, 1999.  All of these bond proceeds with respect to which the Board certifies that the matching requirement has not been met by July 1, 1999, shall be placed by the State Treasurer in a special account within the Community Colleges Bond Fund and shall be used for making grants to community colleges.  Bond proceeds in the special account shall be allocated among the community colleges in accordance with the following conditions:
(1)	The State Board of Community Colleges shall generate, by October 1, 1999, a priority ranking of legitimate community college capital improvement needs using a formula based on objective meaningful factors relevant to capital needs, including space to population ratio, population served ratio, capacity enrollment ratio, local to State and vocational education ratios, type of project, and readiness to implement.
(2)	The State Board of Community Colleges shall provide the State Treasurer a projected allocation of the proceeds in the special account in accordance with this priority ranking, except that:
a.	No projected allocation shall be made for a community college that the Board certified in accordance with this subdivision IV had failed to meet a matching requirement.
b.	No more than four million dollars ($4,000,000) shall be allocated to a single community college.
c.	Funds shall not be allocated for more than one project per community college.
(3)	The proceeds of grants made from bond proceeds in the special account shall be allocated and expended for paying the cost of community college capital improvements in accordance with this allocation by the State Board of Community Colleges, to the extent and as provided in this act.  The Director of the Budget is empowered, when the Director of the Budget determines it is in the best interest of the State and the North Carolina Community College System to do so, and if the cost of a particular project is less than the projected allocation, to use the excess funds to increase the size of that project or increase the size of any other project itemized in this section, or to increase the amount allocated to a particular community college within the aggregate amount of funds available under this section.  The Director of the Budget shall consult with the Advisory Budget Commission and the Joint Legislative Commission on Governmental Operations before making these changes."
(b)	This section becomes effective June 30, 1998, and expires August 15, 1998.

CONTINUE DRUG TREATMENT COURT
Section 13.  Section 21.6(c) of Chapter 507 of the 1995 Session Laws reads as rewritten:
"(c)	Subsection (a) of this section becomes effective July 1, 1995, and expires August 15, 1998.  The remainder of this section becomes effective October 1, 1995."

TEEN COURT FUNDS DO NOT REVERT
Section 14.  (a) The funds appropriated in S.L. 1997-443 to the Judicial Department for teen court programs throughout the State shall not revert at the end of the 1997-98 fiscal year and shall remain available to the Department for the 1998-99 fiscal year to be used for teen court programs.
(b) This section becomes effective June 30, 1998, and expires August 15, 1998.

CUMBERLAND JUVENILE ASSESSMENT CENTER
Section 15. (a)	Section 18.21 of S.L. 1997-443 reads as rewritten:
"Section 18.21.  (a)	Of the funds appropriated in this act to the Administrative Office of the Courts for the 1997-98 fiscal year, the sum of one hundred fifty thousand dollars ($150,000) shall be used to fund the Juvenile Assessment Project authorized by this section. These funds shall be matched by local funds on the basis of one dollar ($1.00) of local funds for every three dollars ($3.00) of State funds.  These funds shall not revert at the end of the 1997-98 fiscal year but shall remain in the Department during the 1998-99 fiscal year to implement this section.
(b)	The Administrative Office of the Courts, in collaboration with the Chief Court Counselor of District Court District 12, the Cumberland County Department of Social Services, and the appropriate local school administrative units, shall develop and implement a Juvenile Assessment Center Project in District Court District 12 to operate from the effective date of this act to June 30, 1999.  The purpose of the Project is to facilitate efficient prevention and intervention service delivery to juveniles who are (i) alleged to be delinquent or undisciplined and have been taken into custody or (ii) at risk of becoming delinquent or undisciplined because they have behavioral problems and have committed delinquent acts even though they have not been taken into custody.  The Project shall assist these juveniles by providing a centralized point of intake and assessment for the juveniles, by addressing the educational, emotional, and physical needs of the juveniles, and by providing juveniles with an atmosphere for learning personal responsibility, self-respect, and respect for others.  The Administrative Office of the Courts shall consider the recommendations of the Juvenile Assessment Advisory Board in developing and implementing the Project.
(c)	The Project shall be modeled after the Juvenile Assessment Center in Hillsborough County, Florida, and shall:
(1)	Identify those juveniles who are alleged to be delinquent or undisciplined or are at risk of becoming delinquent or undisciplined;
(2)	Evaluate the educational, emotional, and physical needs of the juveniles identified and determine whether the juveniles have problems related to substance abuse, depression, or other emotional conditions;
(3)	Develop in-depth and comprehensive assessment plans for the juveniles identified that recommend appropriate treatment, counseling, and disposition of the juveniles; and
(4)	Provide services to juveniles identified and their families through collaboration with public and private resources, including local law enforcement, parents' organizations, the Fayetteville Chamber of Commerce, and county and community programs and organizations that provide substance abuse treatment and child and family counseling.
(d)	There is established the Juvenile Assessment Advisory Board to make recommendations to the Administrative Office of the Courts regarding the development and operations of the Project.  The Board shall consist of 13 members, including:
(1)	The director of the Department of Social Services of Cumberland County, or the director's designee.
(2)	A representative from the local mental health area authority of Cumberland County.
(3)	A member of the Cumberland County Board of Education.
(4)	The sheriff of Cumberland County, or the sheriff's designee.
(5)	The chief of police of the Fayetteville Police Department, or the designee of the chief of police.
(6)	A judge of District Court District 12.
(7)	A juvenile court counselor from District Court District 12.
(8)	The director of the Guardian Ad Litem program in Cumberland County, or the director's designee.
(9)	The director of the Health Department of Cumberland County, or the director's designee.
(10)	Two public members appointed by the Fayetteville City Council.
(11)	Two public members appointed by the Board of County Commissioners of Cumberland County.
The members of the Board shall, within 30 days after the initial appointment is made, meet and elect one member as chair.  The Board shall meet at least once a month at the call of the chair, and a quorum of the Board shall consist of a majority of its members. The Board of County Commissioners of Cumberland County shall provide necessary clerical and professional assistance to the Board.
Initial appointments shall be made by October 1, 1997, and all terms shall expire June 30, 1999.
(e)	The Administrative Office of the Courts, in consultation with the Department of Health and Human Services, shall evaluate the Project and report to the Chairs of the House and Senate Appropriations Committees, the Chairs of the House and Senate Appropriations Subcommittees on Justice and Public Safety and Health and Human Services and the Fiscal Research Division of the General Assembly by May 1, 1999, on the progress of the development and implementation of the Project.  In the report, the Administrative Office of the Courts, in consultation with the Department of Health and Human Services, shall evaluate the effectiveness of the Project, including the number of juveniles served or expected to be served, and shall recommend whether the Project should be continued.  If the report recommends that the Project be continued, it shall also provide a cost analysis outlining the long-term staffing and operating needs of the Project."
(b)	This section becomes effective June 30, 1998, and expires August 15, 1998.

EXTEND SUNSET ON BAD CHECK PROGRAM
Section 16. (a) Subsection (e) of Section 18.22 of S.L. 1997-443 reads as rewritten:
"(e)	This section becomes effective October 1, 1997, and expires June 30, 1999."
(b)	This section becomes effective June 30, 1998, and expires August 15, 1998.

DRIVERS EDUCATION FUNDS DO NOT REVERT
Section 17. (a) Funds appropriated for drivers education for the 1997-98 fiscal year but not expended for that purpose shall not revert at the end of the fiscal year.  The State Board of Education may use these funds during the 1998-99 fiscal year for forms to implement S.L. 1997-507, AN ACT TO PROVIDE THAT CERTAIN STUDENTS WHO DROP OUT OF SCHOOL OR DO NOT MAKE PROGRESS TOWARD GRADUATION SHALL NOT BE ELIGIBLE FOR DRIVERS PERMITS OR LICENSES.
(b)	This section becomes effective June 30, 1998, and expires August 15, 1998.

COMMUNITIES IN SCHOOLS FUNDS/DO NOT REVERT
Section 18.  (a)	Funds allocated to Communities in Schools of the Rocky Mount Region, Inc., for the 1997-98 fiscal year shall not revert at the end of the fiscal year but shall remain available for expenditure during the 1998-99 fiscal year.
(b)	This section becomes effective June 30, 1998, and expires August 15, 1998.

LITIGATION RESERVE
Section 19.  (a)	Funds in the State Board of Education's Litigation Reserve that are not expended or encumbered on June 30, 1998, shall not revert on July 1, 1998, but shall remain available for expenditure until June 30, 1999.
(b) Subsection (a) of this section becomes effective June 30, 1998, and expires August 15, 1998.

RESERVE TO IMPLEMENT WELFARE REFORM/CLARIFICATION
Section 20.  (a)	Section 12.36(a)	of S.L. 1997-443 reads as rewritten:
"Section 12.36.  (a)	Of the funds appropriated in this act to the Office of State Budget and Management, the sum of five million seventy-five thousand two hundred two dollars ($5,075,202) for the 1997-98 fiscal year and the sum of three million nine hundred thousand dollars ($3,900,000) for the 1998-99 fiscal year shall be placed in a Restrictive Reserve to Implement Welfare Reform.  These funds shall be allocated from the Reserve as follows:
(1)	$275,000 for the 1997-98 fiscal year and $400,000 for the 1998-99 fiscal year to support the establishment of a uniform system of public assistance programs as authorized under G.S. 108A-25.1, and to provide counties with workstations for biometric imaging:
(2)	$2,500,000 in each fiscal year to fund program integrity activities in each county.  These funds shall be given to the counties in a lump sum and unexpended funds shall revert to the General Fund;
(3)	$500,000 for the 1997-98 fiscal year to establish and support an Office of Inspector General in the Department of Justice;
(4)	$300,000 in each fiscal year to establish a pilot project in the Department of Labor for creation of Individual Development Accounts;
(5)	$1,500,202 for the 1997-98 fiscal year for the following purposes:
a.	To establish First Stop Employment Assistance in the Department of Commerce;
b.	To expand the Labor Market Information System in the Employment Security Commission; and
c.	To assist the Job Service Employer Committees or the Workforce Development Boards in their completion of the study of the working poor.
	Funds shall not be allocated under this subdivision unless and until the Office of State Budget and Management has certified that federal funds are not available to the Department of Commerce for these purposes; and
(6)	$700,000 for the 1998-99 fiscal year for the continued support of the Office of Inspector General in the Department of Justice, and for the First Stop Employment Assistance in the Department of Commerce.  These funds shall be allocated by the Office of State Budget and Management on the basis of need."
(b)	This section becomes effective June 30, 1998, and expires August 15, 1998.

CORE SOUND MORATORIUM
Section 21.  Section 3 of Chapter 547 of the 1995 Session Laws, Regular Session 1996, as amended by subsection (b) of Section 1 of Chapter 633 of the 1995 Session Laws, Regular Session 1996; Section 27.33 of Chapter 18 of the 1996 Session Laws, Second Extra Session; Section 12 of S.L. 1997-256; Section 8 of S.L. 1997-347; and Section 6.14 of S.L. 1997-400, reads as rewritten:
"Sec. 3.  Notwithstanding G.S. 113-202, a moratorium on new shellfish cultivation leases shall be imposed in the remaining area of Core Sound not described in Section 1 of this act.  During the moratorium, a comprehensive study of the shellfish lease program shall be conducted.  The moratorium established under this section covers that part of Core Sound bounded by a line beginning at a point on Cedar Island at 35°00'39"N - 76°17'48"W, thence 109°(M)	to a point in Core Sound 35°00'00"N - 76°12'42"W, thence 229°(M) to Marker No. 37 located 0.9 miles off Bells Point at 34°43'30"N - 76°29'00"W, thence 207°(M) to the Cape Lookout Lighthouse at 34°37'24"N - 76°31'30"W, thence 12°(M) to a point at Marshallberg at 34°43'07"N - 76°31'12"W, thence following the shoreline in a northerly direction to the point of beginning except that the highway bridges at Salters Creek, Thorofare Bay, and the Rumley Bay ditch shall be considered shoreline.  The moratorium shall expire August 15, 1998."

BEAVER DAMAGE CONTROL FUNDS
Section 22.  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, Section 27.3 of Chapter 769 of the 1993 Session Laws, Section 26.6 of Chapter 507 of the 1995 Session Laws, Section 27.15 of Chapter 18 of the Session Laws of the 1996 Second Extra Session, and Section 15.44(b) of S.L. 1997-443, reads as rewritten:
"(h)	Subsections (a) through (d) of this section expire August 15, 1998."

ROANOKE/PAMLICO WATER QUALITY FUNDS
Section 23.  The Department of Environment and Natural Resources shall continue the water quality monitoring program for the Roanoke-Pamlico estuary system, which was  established in Section 15.13 of S.L. 1997-443, until August 15, 1998.

EFFECTIVE DATE
Section 24.  Except as otherwise provided, this act becomes effective July 1, 1998.