A BILL TO BE ENTITLED
AN ACT establishing the conservation trust fund commission and transferring the duties of The AGricultural development and Farmland Preservation trust fund Advisory Committee, the Natural Heritage Trust Fund Board of Trustees, and the Clean Water Management Trust Fund Board of Trustees to the conservation trust fund commission.
The General Assembly of North Carolina enacts:
SECTION 1.  Chapter 113A of the General Statutes is amended by adding a new Article to read:
"Article 19.
"Conservation Trust Fund Commission.
"§ 113A‑261. Conservation Trust Fund Commission: members; selection; compensation; meetings.
(a)	Commission Established. – There is established the North Carolina Conservation Trust Fund Commission. The Commission shall be administratively located within the Department of Environment and Natural Resources but shall operate independently of the Department.
(b)	Membership. – The Commission shall consist of 15 members. The Secretary of the Department of Environment and Natural Resources and the Commissioner of Agriculture or their designees shall serve as ex officio nonvoting members of the Commission. The Secretary of Commerce, the Secretary of Cultural Resources, the Executive Director of the Wildlife Resources Commission, and the Chair of the State Advisory Commission on Military Affairs or their designees shall serve as ex officio voting members of the Commission. The remaining members shall be appointed as follows: 
(1)	One member appointed by the Governor from the public at large.
(2)	One member appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate, as provided in G.S. 120‑121, from the public at large.
(3)	One member appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate, as provided in G.S. 120‑121, who shall, at the time of appointment, be actively connected with or have experience in agriculture.
(4)	One member appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate, as provided in G.S. 120‑121, who shall, at the time of appointment, have experience in environmental management.
(5)	One member appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate, as provided in G.S. 120‑121, who shall, at the time of appointment, be actively connected with or have experience with park and recreation issues in the State.
(6)	One member appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives, as provided in G.S. 120‑121, from the public at large.
(7)	One member appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives, as provided in G.S. 120‑121, who shall, at the time of appointment, be actively connected with or have had experience in the fish and wildlife conservation or habitat protection activities of the State. 
(8)	One member appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives, as provided in G.S. 120‑121, who shall, at the time of appointment, be actively connected with or have experience in soil and water conservation.
(9)	One member appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives, as provided in G.S. 120‑121, who shall, at the time of appointment, be actively connected with or have experience in forestry.
(c)	Terms. – Beginning August 1, 2012, members shall be appointed to the Commission for terms of four years. Members appointed to the Commission shall serve no more than two consecutive four‑year terms.
(d)	Vacancies. – An appointment to fill a vacancy on the Commission created by the resignation, removal, disability, or death of a member shall be for the balance of the unexpired term.
(e)	Cochairs. – The Secretary of the Department of Environment and Natural Resources and the Commissioner of Agriculture, or their designees, shall serve as cochairs of the Commission.
(f)	Quorum. – A majority of the membership of the Commission constitutes a quorum for the transaction of business.
(g)	Per Diem and Expenses. – Each member of the Commission shall receive per diem and necessary travel and subsistence expenses in accordance with the provisions of G.S. 138‑5. Per diem, subsistence, and travel expenses of the Trustees shall be paid from the Clean Water Management Trust Fund.
(h)	Meetings. – The Commission shall meet at least quarterly at a time and place designated by the cochairs and may hold special meetings at the call of the cochairs or a majority of the members. The Secretary of Environment and Natural Resources shall provide meeting facilities for the Commission and its staff as requested by the cochairs.
"§ 113A‑262. Conservation Trust Fund Commission: powers and duties.
(a)	The Commission may allocate moneys from the Clean Water Management Trust Fund established by Article 18 of this Chapter.
(b)	The Commission may authorize expenditures from the Natural Heritage Trust Fund under Article 5A of Chapter 113 of the General Statutes.
(c)	The Commission shall advise the Commissioner of Agriculture at least annually on the prioritization and allocation of funds, the development of criteria for awarding funds, program planning, and other areas where monies from the North Carolina Agricultural Development and Farmland Preservation Trust Fund established by G.S. 106‑744 can be used to promote the growth and development of family farms in North Carolina.
(d)	The Commission may receive public and private donations, appropriations, grants, and revenues for deposit into the Parks and Recreation Trust Fund established by G.S. 113‑44.15(e) and to allocate funds from the Fund for land acquisition, repairs, renovations, improvements, construction, and other capital projects at units of the State Parks System.
(e)	The Commission may acquire land by purchase, negotiation, gift, or devise. Any acquisition of land by the Commission must be reviewed and approved by the Council of State and the deed for the land subject to approval of the Attorney General before the acquisition can become effective. In determining whether to acquire land as permitted by Article 18 of this Chapter, the Commission shall consider whether the acquisition furthers the purposes of Article 18 of this Chapter and may also consider recommendations from the Council. Nothing in this section shall allow the Commission to acquire land under the right of eminent domain.
(f)	The Commission may exchange any land it acquires under Article 18 of this Chapter in carrying out the powers conferred on the Commission by that Article.
(g)	The Commission may designate managers or managing agencies of the lands acquired under Article 18 of this Chapter.
(h)	Tax Credit Certification. – The Commission shall develop guidelines to determine whether land donated for a tax credit under G.S. 105‑130.34 or G.S. 105‑151.12 is suitable for one of the purposes under Article 18 of this Chapter and may be certified for a tax credit.
(i)	Rule‑Making Authority. – The Commission may adopt rules to implement this Article and powers conferred upon it by any other provision of the General Statutes. Chapter 150B of the General Statutes applies to the adoption of rules by the Commission."
SECTION 2.  G.S. 106‑744 reads as rewritten:
"§ 106‑744.  Purchase of agricultural conservation easements; establishment of North Carolina Agricultural Development and Farmland Preservation Trust Fund.
…
(g)																		
	The Commissioner shall take the recommendations of the North Carolina Conservation Trust Fund Commission into consideration in making decisions on the distribution of monies from the Trust Fund.
	" 
SECTION 3.  G.S. 113‑44.15 reads as rewritten:
"§ 113‑44.15.  Parks and Recreation Trust Fund.
(a)	Fund Created. – There is established a Parks and Recreation Trust Fund in the State Treasurer's Office. The Trust Fund shall be a nonreverting special revenue fund consisting of gifts and grants to the Trust Fund, monies credited to the Trust Fund pursuant to G.S. 105‑228.30(b), and other monies appropriated to the Trust Fund by the General Assembly. Investment earnings credited to the assets of the Fund shall become part of the Fund.
(b)	Use. – Funds in the Trust Fund are annually appropriated to the North Carolina Conservation Trust Fund Commission and, unless otherwise specified by the General Assembly or the terms or conditions of a gift or grant, shall be allocated and used as follows:
(1)	Sixty‑five percent (65%) for the State Parks System for capital projects, repairs and renovations of park facilities, and land acquisition, and to retire debt incurred for these purposes under Article 9 of Chapter 142 of the General Statutes.
(2)	Thirty percent (30%) to provide matching funds to local governmental units or public authorities as defined in G.S. 159‑7 on a dollar‑for‑dollar basis for local park and recreation purposes. The appraised value of land that is donated to a local government unit or public authority may be applied to the matching requirement of this subdivision. These funds shall be allocated by the North Carolina Conservation Trust Fund Commission based on criteria patterned after the Open Project Selection Process established for the Land and Water Conservation Fund administered by the National Park Service of the United States Department of the Interior.
(3)	Five percent (5%) for the Coastal and Estuarine Water Beach Access Program.
(b1)	Geographic Distribution. – In allocating funds in the Trust Fund under this section, the North Carolina Conservation Trust Fund Commission shall make geographic distribution across the State to the extent practicable.
(b2)	Administrative Expenses. – Of the funds appropriated to the North Carolina Conservation Trust Fund Commission from the Trust Fund each year, no more than three percent (3%) may be used by the Department for operating expenses associated with managing capital improvements projects, acquiring land, and administration of local grants programs.
(b3)	Operating Expenses for State Parks System Allocations. – In allocating funds in the Trust Fund under subdivision (1) of subsection (b) of this section, the North Carolina Conservation Trust Fund Commission shall consider the operating expenses associated with each capital project, repair and renovation project, and each land acquisition. In considering the operating expenses, the North Carolina Parks and Recreation Authority shall determine both:
(1)	The minimal anticipated operating expenses, which are determined by the minimum staff and other operating expenses needed to maintain the project.
(2)	The optimal anticipated operating budget, which is determined by the level of staff and other operating expenses required to achieve a more satisfactory level of operation under the project.
	(d)	Debt. – The Commission may allocate up to fifty percent (50%) of the portion of the annual appropriation identified in subdivision (b)(1) of this section to reimburse the General Fund for debt service on special indebtedness to be issued or incurred under Article 9 of Chapter 142 of the General Statutes for the purposes provided in subdivision (b)(1) of this section and for waterfront access. In order to allocate funds for debt service reimbursement, the Commission must identify to the State Treasurer the specific parks projects for which it would like special indebtedness to be issued or incurred and the annual amount it intends to make available, and request the State Treasurer to issue or incur the indebtedness. After special indebtedness has been issued or incurred for a parks project requested by the Commission, the Commission must credit to the General Fund each year the actual aggregate principal and interest payments to be made in that year on the special indebtedness, as identified by the State Treasurer."
SECTION 4.  G.S. 113‑77.6 reads as rewritten:
"§ 113‑77.6.  Definitions.
As used in this Article:
(1)	"Appraised value" means the price estimated in terms of money at which the property would change hands between a willing and financially able buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of the uses to which the property is adapted and for which it is capable of being used.
(2)	"Fund" means the Natural Heritage Trust Fund created pursuant to this Article.
(3)	"Land" and "lands" mean real property and any interest in, easement in, or restriction on real property.
(4)	"Secretary" means the Secretary of Environment and Natural Resources.
(5)	"Trustees" means the members of the North Carolina Conservation Trust Fund Commission."
SECTION 5.  G.S. 113A‑252 reads as rewritten:
"§ 113A‑252.  Definitions.
The following definitions apply in this Article:
(1)	Council. – The advisory council for the Clean Water Management Trust Fund.
(2)	Economically distressed local government unit. – An economically distressed county, as defined in G.S. 143B‑437.01, or a local government unit located in that county.
(3)	Fund. – The Clean Water Management Trust Fund created pursuant to this Article.
(4)	Land. – Real property and any interest in, easement in, or restriction on real property.
(4a)	Local government unit. – Defined in G.S. 159G‑20.
(4b)	Stormwater quality project. – Defined in G.S. 159G‑20.
(5)	Trustees. – The members of the North Carolina Conservation Trust Fund Commission. 
(6)	Wastewater collection system. – Defined in G.S. 159G‑20.
(7)	Wastewater treatment works. – Defined in G.S. 159G‑20."
SECTION 6.  G.S. 113A‑254 reads as rewritten:
"§ 113A‑254.  Grant requirements.
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(g)	Develop Grant Criteria. – The Trustees shall develop criteria for awarding grants under this Article. The criteria developed shall include consideration of the following:
(1)	The significant enhancement and conservation of water quality in the State.
(2)	The objectives of the basinwide management plans for the State's river basins and watersheds.
(3)	The promotion of regional integrated ecological networks insofar as they affect water quality.
(4)	The specific areas targeted as being environmentally sensitive.
(5)	The geographic distribution of funds as appropriate.
(6)	The preservation of water resources with significant recreational or economic value and uses.
(7)	The development of a network of riparian buffer‑greenways bordering and connecting the State's waterways that will serve environmental, educational, and recreational uses.
(8)	The strategic acquisition of conservation easements or fee simple purchase of buffer areas immediately adjacent to military installations.
(h)	Develop Additional Guidelines. – The Trustees may develop guidelines in addition to the grant criteria consistent with and as necessary to implement this Article.
(i)	Debt. – Of the funds credited annually to the Fund, the Trustees may authorize expenditure of a portion to reimburse the General Fund for debt service on special indebtedness to be issued or incurred under Article 9 of Chapter 142 of the General Statutes for the purposes provided in G.S. 113A‑253(c)(1) through (4). In order to authorize expenditure of funds for debt service reimbursement, the Trustees must identify to the State Treasurer and the Department of Administration the specific capital projects for which they would like special indebtedness to be issued or incurred and the annual amount they intend to make available, and request the State Treasurer to issue or incur the indebtedness. After special indebtedness has been issued or incurred for a capital project requested by the Trustees, the Trustees must direct the State Treasurer to credit to the General Fund each year the actual aggregate principal and interest payments to be made in that year on the special indebtedness, as identified by the State Treasurer."
SECTION 7.  G.S. 120‑123(67) reads as rewritten:
"§ 120‑123. Service by members of the General Assembly on certain boards and commissions.
No member of the General Assembly may serve on any of the following boards or commissions:
…
	…."
SECTION 8.  Employees currently assigned as staff to the Clean Water Management Trust Fund Board of Trustees, the Natural Heritage Trust Fund Board of Trustees, and the Agricultural Development and Farmland Preservation Trust Fund Advisory Committee shall be transferred to the North Carolina Conservation Trust Fund Commission established by Section 1 of this act.  Employees of the Division of Parks and Recreation of the Department of Environment and Natural Resources with assigned duties related to the North Carolina Parks and Recreation Trust Fund Authority shall provide support as needed to the Commission for its duties related to the Parks and Recreation Trust Fund.
SECTION 9.(a)  G.S. 113‑77.8, 113A‑255, 113A‑256, 143B‑313.1, and  143B‑313.2 are repealed.
SECTION 9.(b)  The Agricultural Development and Farmland Preservation Advisory Committee, the Natural Heritage Trust Fund Board of Trustees, and the Clean Water Management Trust Fund Board of Trustees are abolished on the effective date of this act, and the terms of the members currently serving on those boards expire on the effective date of this act.
SECTION 10.  Notwithstanding G.S. 113A‑261(b), as enacted by Section 1 of this act, an interim board shall be appointed to serve on the North Carolina Conservation Trust Fund Commission to perform the duties of the Commission until a permanent board is appointed. The interim board shall consist of 14 members.  The Secretary of the Department of Environment and Natural Resources and the Commissioner of Agriculture or their designees shall serve as ex officio nonvoting members of the Commission. The Secretary of Commerce, the Secretary of Cultural Resources, the Executive Director of the Wildlife Resources Commission, and the Chair of the State Advisory Commission on Military Affairs, or their designees, shall serve as ex officio voting members.  The chairs of the Natural Heritage Trust Fund Board of Trustees, the Clean Water Management Trust Fund Board of Trustees, and the North Carolina Parks and Recreation Authority, all of whom were serving as chair of their respective boards prior to the effective date of this act, shall serve on the interim board, and each chair shall appoint one member to the interim board from his or her respective board, all of whom shall have served on those boards prior to the effective date of this act.  Two members shall be appointed to the interim board by the Commissioner of Agriculture from the Agricultural Development and Farmland Preservation Advisory Committee, both of whom shall have served on that committee prior to the effective date of this act.  The ex officio members shall begin serving on the interim board on the effective date of this act, and the remaining members shall be appointed by August 1, 2011.  Terms of the members of the interim board shall expire on July 31, 2012. The Secretary of the Department of Environment and Natural Resources and the Commissioner of Agriculture shall serve as cochairs of the interim board.
SECTION 11.  This act is effective when it becomes law.