A BILL TO BE ENTITLED
AN ACT to reinforce the independence of the judicial branch as a separate and coordinate branch of state government and to ensure the fiscal integrity and accountability of the judicial branch, as recommended by the state judicial council.
The General Assembly of North Carolina enacts:

PART I. JUDICIAL BRANCH FISCAL INTEGRITY AND ACCOUNTABILITY

SECTION 1.  Chapter 7A of the General Statutes is amended by redesignating Article 29A, "Trial Court Administrators", as Article 29C and by adding a new Article to read:
"Article 29A.
"Judicial Branch Fiscal Integrity and Accountability.
"§ 7A-349. Appropriations to the Judicial Branch of Government.
All General Fund appropriations made by the General Assembly for the continuing operations of the Judicial Branch of Government shall be made to four categories within the budget code of the Judicial Branch for each year of the fiscal period for which the appropriation is being made: personnel, operating expenses, equipment, and other. Notwithstanding any contrary provision in Article 1 of Chapter 143 of the General Statutes (the Executive Budget Act) or elsewhere in the General Statutes, the Director of the Administrative Office of the Courts, after consultation with and upon the advice of the State Judicial Council, may expend the General Fund monies so appropriated in the manner deemed by the Director to be best calculated to maintain and advance the effective and efficient operation of the Judicial Branch as a separate and coordinate branch of the government of the State. The preparation, presentation, and review of expansion budget requests of the Judicial Branch shall be conducted as provided in G.S. 7A-409.1 and G.S. 143-8. Except as provided in G.S. 143-25(c), the quarterly allotment procedure established under G.S. 143-17 shall apply to General Fund appropriations made for the current operations of the Judicial Branch. All General Fund monies so appropriated shall be recorded, reported, and audited in the same manner as are General Fund appropriations to the Executive and Legislative Branches of Government.
"§ 7A-350. Reserve funds.
(a)	All appropriations for the continuing operations of the Judicial Branch of Government shall include appropriations to the reserves created by this section.
(b)	There is created within the budget of the Judicial Branch a Position Reserve that shall include all funding required for the additional assistant and deputy clerks of superior court, magistrates, judicial support staff, assistant district attorneys, and prosecutorial support staff required statewide to keep up with the increased workload of the courts in each fiscal year, as determined by the Director under the formulas developed under G.S. 7A-343(2a). All monies in the Position Reserve shall be expended exclusively to fund such positions. 
(c)	There is created within the budget of the Judicial Branch an Equipment Replacement Reserve that shall include all funding required for the replacement and upgrade of equipment each fiscal year, as those replacement and upgrade needs are determined by the Director using the aging and replacement tables and formulas developed under G.S. 7A-343(6a). All monies in the Equipment Replacement Reserve shall be expended exclusively to replace and upgrade such equipment.
"§ 7A-351. Reversions.
Of the General Fund current operations appropriations credit balance remaining at the end of each fiscal year in the budget code for the Judicial Branch of Government, any amount may be carried forward to the next fiscal year and may be used for one-time expenditures that will not impose additional obligations on the State.
"§ 7A-352. Position management.
After consultation with, and upon the advice of, the State Judicial Council, the Director may establish and abolish, and allocate and reallocate, all personnel positions within the Judicial Branch of Government so as best to meet the personnel needs of all Judicial Branch hiring authorities and of the Administrative Office of the Courts and to assure the most effective and efficient overall operation of the Judicial Branch of Government. This authority is subject to the following limitations:
(1)	The authority does not apply to the following positions:
a.	Justices and judges of the General Court of Justice;
b.	The Assistant Director of the Administrative Office of the Courts provided for in G.S. 7A-340 and 7A-342;
c.	Clerks of Superior Court provided for in G.S. 7A-100;
d.	District attorneys provided for in G.S. 7A-60;
e.	The Clerk of the Supreme Court, the Clerk of the Court of Appeals, the Supreme Court Librarian, the Supreme Court Marshall, the Appellate Reporters, and the Assistant Director of the Administrative Office of the Courts;
f.	The executive directors of the Judicial Standards Commission, the Conference of District Attorneys, and the Sentencing and Policy Advisory Commission; or
g.	Positions provided for in Article 39B of this Chapter (Indigent Defense) or otherwise funded from the Indigent Persons' Attorney Fee Fund;
(2)	Positions for assistant and deputy clerks of superior court, magistrates, judicial support staff, assistant district attorneys, and prosecutorial support staff shall be allocated among the counties of the State according to the formula developed under G.S. 7A-343(2a);
(3)	The magistrate positions for each county shall not be fewer than the minimum number specified for the county in G.S. 7A-133(c); and
(4)	The assistant district attorney positions for a prosecutorial district shall not be fewer than the minimum number specified for the district in G.S. 7A-60.
"§ 7A-353. Report to the Joint Legislative Commission on Governmental Operations.
On or before October 1 of each calendar year, the Director shall submit to the Joint Legislative Commission on Governmental Operations a detailed report of all expenditures made and other actions taken under this Article for the fiscal year ending June 30 of that year.
"§ 7A-354. Nonreverting special funds and other earmarked or pass-through funds.
(a)	Nothing in this Article expands the permissible uses of any nonreverting special funds within the budget of the Judicial Branch of Government, including the Court Information Technology Fund created by G.S. 7A-343.2, the Collection of Worthless Checks Fund created by G.S. 7A-308(c), and the Indigent Persons' Attorneys Fee Fund, or to other similar funds earmarked by statute for a specific purpose.
(b)	This Article does not apply to funds generated by the administrative fees for the regulation of mediators collected pursuant to G.S. 7A-39.2.
(c)	Nothing in this Article precludes the General Assembly from designating the Administrative Office of the Courts as the appropriate State entity to receive and disburse State funds appropriated to non-State entities."

PART II. CONFORMING CHANGES TO DUTIES OF THE DIRECTOR OF THE ADMINISTRATIVE OFFICE OF THE COURTS AND THE STATE JUDICIAL COUNCIL

SECTION 2.1.  G.S. 7A‑343 reads as rewritten:
"§ 7A‑343.  Duties of Director.
The Director is the Administrative Officer of the Courts, and his duties include the following:
(1)	Collect and compile statistical data and other information on the judicial and financial operation of the courts and on the operation of other offices directly related to and serving the courts;
(2)	Determine the state of the dockets and evaluate the practices and procedures of the courts, and make recommendations concerning the number of  judges and district  attorneys required for the efficient administration of justice;
(2a)	After consultation with, and on the advice of, the State Judicial Council, develop a workload-based methodology for the allocation of assistant and deputy clerks of superior court and magistrates among the counties of the State, for the allocation of assistant district attorneys among the prosecutorial districts of the State, and for the allocation of judicial support staff and prosecutorial support staff. In developing this methodology, the Director may take into consideration, among other things, prior personnel levels, growth in caseload volume and composition, population, the effect of technology on personnel needs, recommendations of appropriate State and national organizations and agencies specializing in determining the personnel needs of courts, and other relevant factors;
(2b)	Establish and abolish, and allocate and reallocate, personnel positions within the Judicial Branch of Government, as further provided in G.S. 7A-352;
(3)	Prescribe uniform administrative and business methods, systems, forms and records to be used in the offices of the clerks of superior court;
(4)	Prepare and submit budget estimates of State appropriations necessary for the maintenance and operation of the  Judicial Branch as further provided in G.S. 7A-409.1 and G.S. 143-8;
(4a)	After consultation with, and on the advice of, the State Judicial Council, authorize expenditures from funds appropriated for the maintenance and operation of the Judicial Branch, as further provided in Article 29A of this Chapter, including:
a.	Authorize expenditures from the Position Reserve and the Equipment Replacement Reserve created by G.S. 7A-350; and
b.	Specify the uses, within the Judicial Branch budget, of funds that remain available for expenditure at the end of each fiscal year under G.S. 7A-351 and G.S. 143-18 or revert such funds under G.S. 143-18.
(5)	Investigate, make recommendations concerning, and assist in the securing of adequate physical accommodations for the General Court of Justice;
(6)	Procure, distribute, exchange, transfer, assign, and reassign such equipment, books, forms and supplies as are to be acquired with State funds for the General Court of Justice;
(6a)	Develop standard tables and formulas for the aging and replacement of all equipment used in the Judicial Branch and use funds available in the Equipment Replacement Reserve created by G.S. 7A-350 to replace and upgrade equipment in accordance with those tables and formulas;
(7)	Make recommendations for the improvement of the operations of the Judicial  Branch;
(8)	Prepare and submit an annual report on the work of the Judicial  Branch to the Chief Justice, and transmit a copy to each member of the General Assembly;
(9)	Assist the Chief Justice in performing his duties relating to the transfer of district court judges for temporary or specialized duty;
(9a)	Establish and operate systems and services that provide electronic transaction processing and access to court information systems pursuant to G.S. 7A‑343.2; and
(10)	Perform such additional duties and exercise such additional powers as may be prescribed by statute or assigned by the Chief Justice."
SECTION 2.2.  G.S. 7A‑409.1(a) reads as rewritten:
"(a)	The State Judicial Council shall:
(1)	Study the judicial system and report periodically to the Chief Justice on its findings;
(2)	Advise the Chief Justice on priorities for funding;
(3)	Review and advise the Chief Justice on the budget prepared by the Director of the Administrative Office of the Courts for submission to the General Assembly;
(4)	Study and recommend to the General Assembly the salaries of justices and judges;
(5)	Recommend to the General Assembly changes in the expense allowances, benefits, and other compensation for judicial officials; bills to implement such recommendations shall have the same status for introduction in the General Assembly as bills recommended by the Courts Commission;
(6)	Recommend the creation of  judgeships;
(6a)	Consult with the Director on, and advise the Director in, the performance of the Director's duties under G.S. 7A-343(2a), 
7A-343(4a), and 7A-343(6a) and under Article 29A of this Chapter (Judicial Branch Fiscal Integrity and Accountability); and
(7)	Advise or assist the Chief Justice, as requested, on any other matter concerning the operation of the courts."

PART III. ADDITIONAL CONFORMING CHANGES TO CHAPTER 7A OF THE GENERAL STATUTES

SECTION 3.1.  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 at least the number of full‑time assistant district attorneys set forth in the following  table. The Director of the Administrative Office of the Courts may establish additional assistant district attorney positions for a prosecutorial district, as provided in Article 29A of this Chapter.

		No. of Full‑Time
		Prosecutorial		Asst. District
		District	Counties	Attorneys
	1	Camden, Chowan, Currituck,	9
			Dare, Gates, Pasquotank,
	Perquimans
	2	Beaufort, Hyde, Martin,	5
			Tyrrell, Washington
	3A	Pitt	9
	3B	Carteret, Craven, Pamlico	10
	4	Duplin, Jones, Onslow,	14
		Sampson
	5	New Hanover, Pender	14
	6A	Halifax	4
	6B	Bertie, Hertford,	4
		Northampton
	7	Edgecombe, Nash, Wilson	15
	8	Greene, Lenoir, Wayne	11
	9	Franklin, Granville,	10
		Vance, Warren
	9A	Person, Caswell	4
	10	Wake	30
	11	Harnett, Johnston, Lee	14
	12	Cumberland	18
	13	Bladen, Brunswick, Columbus	10
	14	Durham	13
	15A	Alamance	8
	15B	Orange, Chatham	7
	16A	Scotland, Hoke	5
	16B	Robeson	9
	17A	Rockingham	5
	17B	Stokes, Surry	5
	18	Guilford	26
	19A	Cabarrus	6
	19B	Montgomery, Moore, Randolph	11
	19C	Rowan	5
	20	Anson, Richmond,	15
		Stanly, Union
	21	Forsyth	17
	22	Alexander, Davidson, Davie,	16
		Iredell
	23	Alleghany, Ashe, Wilkes,	5
		Yadkin
	24	Avery, Madison, Mitchell,	4
		Watauga, Yancey
	25	Burke, Caldwell, Catawba	14
	26	Mecklenburg	33
	27A	Gaston	12
	27B	Cleveland,	8
		Lincoln
	28	Buncombe	10
	29	Henderson, McDowell, Polk,	11
		Rutherford, Transylvania
	30	Cherokee, Clay, Graham,	8
		Haywood, Jackson, Macon,
				Swain."
SECTION 3.2.  G.S. 7A‑133(c) reads as rewritten:
"(c)	Each county shall have  at least the number of magistrates, and the additional seats of district court, as set forth in the following  table. The Director of the Administrative Office of the Courts may establish additional magistrate positions for a county, as provided in Article 29A of this Chapter.

	Additional
	Magistrates	Seats of
County		Court
Camden	1	
Chowan	2	
Currituck	1	
Dare	3	
Gates	2	
Pasquotank	3	
Perquimans	2	
Martin	5	
Beaufort	4	Tyrrell	1	
Hyde	2	
Washington	3	
Pitt	10		Farmville
	Ayden
Craven	7		Havelock
Pamlico	2	
Carteret	5	
Sampson	6	
Duplin	9	
Jones	2	Onslow	8	New Hanover	6	
Pender	4	
Halifax	9		Roanoke
	Rapids,
	Scotland Neck
Northampton	5	Bertie 	4	Hertford	5	Nash	7		Rocky Mount
Edgecombe	4		Rocky Mount
Wilson	4	
Wayne	5		Mount Olive
Greene	2	
Lenoir	4		La Grange
Granville	3	Vance	3	Warren	3	Franklin	3	Person	3	Caswell	2	
Wake	12		Apex,
	Wendell,
	Fuquay‑
	Varina,
	Wake Forest
Harnett	7		Dunn
Johnston	10		Benson,
	Clayton,
	Selma
Lee	4	
Cumberland	10	Bladen	4	Brunswick	4	
Columbus	6		Tabor City
Durham	8	
Alamance	7		Burlington
Orange	4		Chapel Hill
Chatham	3		Siler City 
Scotland	3	
Hoke	4	
Robeson	8		Fairmont,
	Maxton,
	Pembroke,
	Red Springs,
	Rowland,
	St. Pauls
Rockingham	4		Reidsville,
	Eden,
	Madison
Stokes	2	
Surry	5		Mt. Airy
Guilford	20		High Point
Cabarrus	5		Kannapolis
Montgomery 	2	
Randolph	5		Liberty
Rowan	5	Stanly	5	Union	4	Anson	4	Richmond	5		Hamlet
Moore	5		Southern
	Pines
Forsyth	3		Kernersville
Alexander	2	
Davidson	7		Thomasville
Davie	2	Iredell	4		Mooresville
Alleghany	1	Ashe	3	Wilkes	4	
Yadkin	3	Avery	3	
Madison	4	
Mitchell	3	
Watauga	4	
Yancey	2	Burke	4	
Caldwell	4	
Catawba	6		Hickory
Mecklenburg	15	
Gaston	11	
Cleveland	5	
Lincoln	4	
Buncombe	6	
Henderson	4	
McDowell	3	Polk	3	
Rutherford	6	Transylvania	2	
Cherokee	3	
Clay	1	Graham	2	Haywood	5		Canton
Jackson	3	
Macon	3	
Swain 	2	"
SECTION 3.3.  G.S. 7A‑171 reads as rewritten:
"§ 7A‑171.  Numbers; appointment and terms; vacancies.
(a)	The General Assembly shall establish a minimum number of magistrates for each county. In no county shall the minimum quota be less than one.
(b)	Not earlier than the Tuesday after the first Monday nor later than the third Monday in December of each even‑numbered year, the clerk of the superior court shall submit to the senior regular resident superior court judge of the district or set of districts as defined in G.S. 7A‑41.1(a) in which his county is located the names of two (or more, if requested by the judge) nominees for each magisterial office established for the  county, pursuant to Article 29A of this Chapter. Not later than the fourth Monday in December, the senior regular resident superior court judge shall, from the nominations submitted by the clerk of the superior court, appoint magistrates to fill the  magisterial offices established for each county of his district or set of districts. The term of a magistrate so appointed shall be two years, commencing on the first day in January of the calendar year next ensuing the calendar year of appointment.
	
(d)	Within 30 days after a vacancy in the office of magistrate occurs the clerk of superior court shall submit to the senior regular resident superior court judge the names of two (or more, if so requested by the judge) nominees for the office vacated. Within 15 days after receipt of the nominations the senior regular resident superior court judge shall appoint from the nominations received a magistrate who shall take office immediately and shall serve for the remainder of the unexpired term."

PART IV. CONFORMING CHANGES TO THE EXECUTIVE BUDGET ACT AND RELATED PROVISIONS

SECTION 4.1.  G.S. 143‑18 reads as rewritten:
"§ 143‑18.  Unencumbered balances to revert to treasury; capital appropriations excepted.
All unencumbered balances of maintenance appropriations shall revert to the State treasury to the credit of the general fund or special funds from which the appropriation and/or appropriations, were made and/or expended, at the end of each fiscal year; except that capital expenditures for the purchase of land, the erection of buildings, new construction or renovations in progress shall continue in force until the attainment of the object or the completion of the work for which the appropriations are made; except that maintenance appropriations to the General Assembly shall remain available until expended, unless otherwise provided by the Legislative Services  Commission, and except that maintenance appropriations to the Judicial Branch of Government shall remain available until expended, unless otherwise provided by the Director of the Administrative Office of the Courts.
As used in this section, "unencumbered" means not obligated in the form of purchase orders, contracts, renovations in progress or salary commitments. No purchase orders, contracts, renovations in progress, or salary commitments shall be entered into during a fiscal year unless sufficient funds are available within the purpose for which the funds were appropriated by the General Assembly or as authorized by the Director of the Budget as allowed by law."
SECTION 4.2.  G.S. 143‑25 reads as rewritten:
"§ 143‑25.  Maintenance appropriations dependent upon adequacy of revenues to support them.
(a)	All maintenance appropriations now or hereafter made are hereby declared to be maximum, conditional and proportionate appropriations, the purpose being to make the appropriations payable in full in the amounts named herein if necessary and then only in the event the aggregate revenues collected and available during each fiscal year of the biennium for which such appropriations are made, are sufficient to pay all of the appropriations in full; otherwise, the said appropriations shall be deemed to be payable in such proportion as the total sum of all appropriations bears to the total amount of revenue available in each of said fiscal years. Except as provided in subsections (b) and (c) of this section, the Director of the Budget is given full power and authority to examine and survey the progress of the collection of the revenue out of which such appropriations are to be made, and to declare and determine the amounts that can be, during each quarter of each of the fiscal years of the biennium properly allocated to each respective appropriation. In making such examination and survey, the Director of the Budget shall receive estimates of the prospective collection of revenues from the Secretary of Revenue and every other revenue collecting agency of the State. The Director of the Budget may reduce all of said appropriations pro rata when necessary to prevent an overdraft or deficit to the fiscal period for which such appropriations are made. The Governor may also reduce all of said appropriations pursuant to Article III, Section 5(3) of the Constitution in accordance with subsection (b) of this section, after consulting with the Joint Legislative Commission on Governmental Operations under G.S. 120‑76(8) if prior consultation is required by that section. The purpose and policy of this Article are to provide and insure that there shall be no overdraft or deficit in the general fund of the State at the end of the fiscal period, growing out of appropriations for maintenance and the Director of the Budget is directed and required to so administer this Article as to prevent any such overdraft or deficit. Prior to taking any action under this section to reduce appropriations pro rata, the Governor may consult with the Advisory Budget Commission.
(b)	The General Assembly recognizes that it has required units of local government to adopt and maintain annual balanced budgets and take other steps to assure financially sound operations under the Local Government Budget and Fiscal Control Act and other provisions of Chapter 159 of the General Statutes. Accordingly, the General Assembly finds that in order to satisfy those statutory requirements and provide adequate services to their citizens, units of local government must be able to rely on the funds and local revenue sources the General Assembly has provided.
It is the intent of the General Assembly that funds that have been collected by the State on behalf of local governments and funds that the General Assembly has appropriated or otherwise committed to local governments shall not be reduced except as provided in this section. In exercising the powers contained in Section 5(3) of Article III of the North Carolina Constitution, the Governor shall not withhold from distribution funds that have been collected by the State on behalf of local governments or funds that the General Assembly has appropriated or otherwise committed to local governments unless, after making adequate provision for the prompt payment of principal of and interest on bonds and notes of the State according to their terms, the Governor has exhausted all other sources of revenue of the State including surplus remaining in the treasury at the beginning of the fiscal period.
This subsection does not authorize the Governor to withhold revenues from taxes levied by units of local governments and collected by the State. The General Assembly recognizes that under Section 19 of Article I of the North Carolina Constitution and under the Due Process Clause of the United States Constitution, the State is prohibited from taking local tax revenue.
(c)	Whenever performing the duties set forth in Article III, Section 5(3) of the North Carolina Constitution, the Governor shall consult with the Chief Justice before making any reductions or revisions to the Judicial Branch appropriations and, to the extent practicable consistent with the Governor's responsibilities under Article III, Section 5(3) of the Constitution, shall attempt to follow such recommendations as the Chief Justice may make for reductions or revisions in those appropriations."
SECTION 4.3.  G.S. 120‑76(8) reads as rewritten:
"§ 120‑76.  Powers and duties of the Commission.
The Commission shall have the following powers:
…
(8)	The Joint Legislative Commission on Governmental Operations shall be consulted by the Governor before the Governor does any of the following:
a.	Makes allocations from the Contingency and Emergency Fund.
b.	Authorizes expenditures in excess of the total requirements of a purpose or program as enacted by the General Assembly and as provided by G.S. 143‑23(a1)(3), except for trust funds as defined in G.S. 116‑36.1(g).
c.	Proceeds to reduce programs subsequent to a reduction of ten percent (10%) or more in the federal fund level certified to a department and any subsequent changes in distribution formulas.
d.	Takes extraordinary measures under Article III, Section 5(3) of the Constitution to effect necessary economies in State expenditures required for balancing the budget due to a revenue shortfall, including, but not limited to, the following: loans among funds, personnel freezes or layoffs, capital project reversions, program eliminations, and use of reserves. However, if the Committee fails to meet within 10 calendar days of a request by the Governor for its consultation, the Governor may proceed to take the actions he feels are appropriate and necessary and shall then report those actions at the next meeting of the Commission. With respect to expenditures from appropriations for the maintenance and operation of the Judicial Branch of Government, the Chief Justice shall comply with this subdivision.
e.	Approves a new capital improvement project funded from gifts, grants, receipts, special funds, self‑liquidating indebtedness, and other funds or any combination of funds for the project not specifically authorized by the General Assembly. The budget for each capital project must include projected revenues in an amount not less than projected expenditures.
Notwithstanding the provisions of this subdivision or any other provision of law requiring prior consultation by the  Governor, or the Chief Justice with respect to expenditures from appropriations for the maintenance and operation of the Judicial Branch, with the Commission, whenever an expenditure is required because of an emergency that poses an imminent threat to public health or public safety, and is either the result of a natural event, such as a hurricane or a flood, or an accident, such as an explosion or a wreck, the Governor or the Chief Justice may take action under this subsection without consulting the Commission if the action is determined by the Governor or the Chief Justice to be related to the emergency. The Governor or the Chief Justice shall report to the Commission on any expenditures made under this paragraph no later than 30 days after making the expenditure and shall identify in the report the emergency, the type of action taken, and how it was related to the emergency."

PART V. CHANGE REFERENCES FROM "JUDICIAL DEPARTMENT" TO "JUDICIAL BRANCH OF GOVERNMENT"

SECTION 5.1.  The Revisor of Statutes shall change all references in the General Statutes to the "Judicial Department" by deleting that term each time it appears and substituting the term "Judicial Branch of Government" or "Judicial Branch" as the context requires and shall make any necessary conforming grammatical changes in the affected provisions.

PART VI. EFFECTIVE DATE AND APPLICABILITY

SECTION 6.1.  This act becomes effective July 1, 2003.