A BILL TO BE ENTITLED
AN ACT ENHANCing LEGISLATIVE REVIEW OF BUDGET EXECUTION AND ADMINISTRATION BY ESTABLISHING A PERMANENT Joint legisLATIVE BUDGET OVERSIGHT COMMITTEE OF THE GENERAL ASSEMBLY.
Whereas, Article V, Section 7 of the North Carolina Constitution states that no money shall be drawn from the State treasury but in consequence of appropriations made by law; and
Whereas, Article III, Section 5 of the North Carolina Constitution states that the Governor shall administer the budget as enacted by the General Assembly; and
Whereas, members of the General Assembly recognize that proper oversight of public funds and oversight of the execution and administration of the State's budget are tantamount to good stewardship and proper governance; and
Whereas, members of the General Assembly also recognize that it is the proper duty of a legislative body to examine and review the expenditure of public funds on an ongoing basis; Now, therefore,
The General Assembly of North Carolina enacts:
SECTION 1.  Chapter 120 of the General Statutes is amended by adding a new Article to read:
"Article 12P.
"Joint Legislative Budget Oversight Committee.
"§ 120‑70.135.  Joint Legislative Budget Oversight Committee established.
(a)	 Purpose. – The Joint Legislative Budget Oversight Committee (Committee) is established. The purpose of the Committee is to perform ongoing examination and oversight of State agencies' execution and administration of the budget, including review of agency expenditures and collections of receipts, agency compliance with State laws governing the expenditure of public moneys, compliance with legislative policies and intent, and the ongoing fiscal stability and integrity of State government.
(b)	The Committee consists of 20 members as follows:
(1)	Ten members of the Senate appointed by the President Pro Tempore of the Senate. All members must be current members of the Senate Appropriations Committee with at least one member from each subcommittee. At least three of the members must be members of the minority party.
(2)	Ten members of the House of Representatives appointed by the Speaker of the House of Representatives. All members must be current members of the House Appropriations Committee with at least one member of each subcommittee. At least three of the members must be members of the minority party.
(c)	Terms. – Terms on the Committee are for two years and begin upon the convening of each Regular Session of the General Assembly. Legislative members may complete a term of service on the Committee even if they do not seek reelection or are not reelected to the General Assembly. Resignation or removal from service in the General Assembly constitutes resignation or removal from service on the Committee. A member continues to serve until a successor is appointed. 
(d)	Chairs and Quorum. – The President Pro Tempore of the Senate and the Speaker of the House of Representatives shall each designate a cochair of the Committee. The Committee meets monthly upon the call of the cochairs. A quorum of the Committee is eleven members. The Committee may not act except by a majority vote at a meeting at which a quorum is present.
(e)	Standard Procedure. – Funding for the Committee is provided by the Legislative Services Commission from appropriations made to the General Assembly. Members of the Committee receive subsistence and travel expenses as provided in G.S. 120‑3.1. The Committee may contract for consultants in accordance with G.S. 120‑32.02. Upon approval of the Legislative Services Commission, the Legislative Services Officer must assign professional and clerical staff to assist the Committee in its work. 
(f)	The Committee, while in the discharge of official duties, shall have access to any paper or document, and may compel the attendance of any State official or employee before the Commission or secure any evidence under the provisions of G.S. 120‑19. In addition, the provisions of G.S. 120‑19.1 through 120‑19.4 shall apply to the proceedings of the Committee.
"§ 120‑70.136.  Powers and duties of the Committee.
(a)	The Committee shall have the following powers and duties:
(1)	To conduct reviews of the expenditure of State funds as follows:
a.	Conformity with State law.
b.	Conformity with legislative intent.
c.	Necessity with meeting program or purpose objectives.
(2)	To receive quarterly analyses of the State's revenues and expenditures as prepared by the Fiscal Research Division of the Legislative Services Commission.
(3)	To propose legislation that would result in enhanced program accountability.
(4)	To conduct fiscal studies.
(5)	To devise a system, in cooperation with the Fiscal Research Division of the Legislative Services Commission, whereby all new programs authorized by the General Assembly or otherwise created by the Governor are evaluated periodically for continuing appropriations. The results of these evaluations shall be made to the Appropriations Committees at the beginning of each legislative session.
(6)	To evaluate State agencies' plans or proposals regarding the funding of new or expanded programs and services not previously approved by the General Assembly as part of its Appropriations Act.
(7)	To produce written reports of findings and recommendations as follows:
a.	To the Appropriations Committees of the Senate and the House of Representatives. If findings arrived at during a study have a potential impact on appropriations deliberations, the findings shall be presented immediately to the committee. These reports shall contain recommendations for appropriate executive action and when legislation is considered necessary to effect change, draft legislation for that purpose may be included.
b.	To the Governor. If findings arrived at during a review have a potential impact on the current budget, the findings shall be presented immediately to the Governor and shall contain recommendations for appropriate executive action.
(b)	The Committee shall be consulted by the Governor prior to any of the following:
(1)	Establishment of permanent State positions unless authorized in the current Appropriations Act.
(2)	Expenditures in excess of the total requirements of a purpose or program as enacted by the General Assembly and as provided by G.S. 143C‑6‑4.
(3)	Extraordinary measures taken under Article III, Section 5(3) of the North Carolina 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 appropriate and necessary actions and shall then report those actions at the next meeting of the Committee.
(4)	Notwithstanding G.S. 143C‑8‑7 and G.S. 143C‑8‑12, the Committee shall be consulted by the Governor prior to approval of new capital improvement projects funded from gifts, grants, receipts, special funds, self‑liquidating indebtedness, and other funds or any combination of funds for projects not specifically authorized by the General Assembly. The consultation shall include a description for each proposed capital project as delineated in G.S. 143C‑8‑6(e)."
SECTION 2.  Notwithstanding G.S. 120‑70.135, as enacted by Section 1 of this act, the terms of the initial members of the Joint Legislative Budget Oversight Committee begin on appointment and end upon the convening of the next Regular Session of the General Assembly.
SECTION 3.  This act is effective when it becomes law.