A BILL TO BE ENTITLED
AN ACT to reconstitute the clean water management trust fund board of trustees and the parks and recreation authority which was held to have unconstitutionally appointed membership pursuant to mccrory v. berger and cooper v. berger and to clarify the powers and duties of the clean water management trust fund.
The General Assembly of North Carolina enacts:

CLEAN WATER MANAGEMENT TRUST FUND CLARIFICATIONS
SECTION 1.  Part 41 of Article 2 of Chapter 143B of the General Statutes reads as rewritten:
"Part 41. Clean Water Management Trust Fund.
"§ 143B‑135.230.  Purpose.
It is the intent of the General Assembly that moneys from the Fund created under this Part shall be used to help finance projects that enhance or restore degraded surface waters; protect and conserve surface waters, including drinking supplies, and contribute toward a network of riparian buffers and greenways for environmental, educational, and recreational benefits; provide buffers around military bases to protect the military mission; acquire land that represents the ecological diversity of North Carolina; and acquire land that contributes to the development of a balanced State program of historic properties.
"§ 143B‑135.232.  Definitions.
The following definitions apply in this Part:
	
(2)	Fund. – The Clean Water Management Trust Fund created pursuant to this Part.
(3)	Land. – Real property and any interest in, easement in, or restriction on real property.
(4)	Local government unit. – Defined in G.S. 159G‑20.
(5)	Trustees. – The trustees of the Clean Water Management Trust Fund.
"§ 143B‑135.234.  Clean Water Management Trust Fund.
(a)	Fund Established. – The Clean Water Management Trust Fund is established as a special revenue fund to be administered by the Department of Natural and Cultural Resources. The Fund receives revenue from the following sources and may receive revenue from other sources:
(1)	Annual appropriations.
(2)	Special registration plates under G.S. 20‑81.12.
(3)	Other special registration plates under G.S. 20‑79.7.
(4)	Hazard mitigation funds from the Federal Emergency Management Agency and other agencies.
(b)	Fund Earnings, Assets, and Balances. – The State Treasurer shall hold the Fund separate and apart from all other moneys, funds, and accounts. Any balance remaining in the Fund at the end of any fiscal year shall be carried forward in the Fund for the next succeeding fiscal year. Payments from the Fund shall be made on the warrant of the Chair of the Board of Trustees.
(c)	Fund Purposes. – Moneys from the Fund are appropriated annually to finance projects to clean up or prevent surface water pollution and for land preservation in accordance with this Part. Revenue in the Fund may be used for any of the following purposes:
(1)	To acquire land for riparian buffers for the purposes of providing environmental protection for surface waters drinking water supplies and establishing a network of riparian greenways for environmental, educational, and recreational uses.
(2)	To acquire conservation easements or other interests in real property for the purpose of protecting and conserving surface waters and enhancing drinking water supplies, including the development of water supply reservoirs.
(3)	To coordinate with other public programs involved with lands adjoining water bodies to gain the most public benefit while protecting and improving water quality.
(4)	To restore previously degraded lands to reestablish their ability to protect water quality.
(5)	To facilitate planning that targets reductions in surface water pollution.
(6)	To finance innovative efforts, including pilot projects, to improve stormwater management, to reduce pollutants entering the State's waterways, to improve water quality, and to research alternative solutions to the State's water quality problems.
(7)	To prevent incompatible use encroachment around military installations or military training areas, or for State matching funds for federal initiatives that provide funds to buffer military installations or training areas from incompatible use encroachment.
(8)	To acquire land that represents the ecological diversity of North Carolina, including natural features such as riverine, montane, coastal, and geologic systems and other natural areas to ensure their preservation and conservation for recreational, scientific, educational, cultural, and aesthetic purposes.
(9)	To acquire land that contributes to the development of a balanced State program of historic properties.
(10),	(11) Repealed by Session Laws 2015‑241, s. 14.4, effective July 1, 2015.
(12)	To protect and restore floodplains and wetlands for the purpose of storing water, reducing flooding, improving water quality, providing wildlife and aquatic habitat, and providing recreational opportunities.
(d)	Repealed by Session Laws 2015‑241, s. 14.4, effective July 1, 2015.
"§ 143B‑135.236.  North Carolina Conservation Easement Endowment Fund.
(a)	The North Carolina Conservation Easement Endowment Fund is established as a special fund in the Office of the State Treasurer. The principal of the Endowment Fund shall consist of a portion of grant funds transferred by the Trustees to the Endowment Fund from the Clean Water Management Trust Fund for stewardship activities related to projects for conservation easements funded from the Clean Water Management Trust Fund. The principal of the Endowment Fund may also consist of any proceeds of any gifts, grants, or contributions to the State that are specifically designated for inclusion in the Endowment Fund and any investment income that is not used in accordance with subsection (b) of this section. The State Treasurer shall hold the Endowment Fund separate and apart from all other moneys, funds, and accounts. The State Treasurer shall invest the assets of the Endowment Fund in accordance with the provisions of G.S. 147‑69.2 and G.S. 147‑69.3. The State Treasurer shall disburse the endowment investment income only upon the written direction of the Chair of the Board of Trustees. No expenditure or disbursement shall be made from the principal of the Endowment Fund.
(b)	The Trustees may authorize the disbursement of the endowment investment income only for activities related to stewardship of conservation easements owned by the State.
"§ 143B‑135.238.  Grant requirements.
(a)	Eligible Applicants. – Any of the following are eligible to apply for a grant from the Fund for the purpose of protecting and enhancing water quality:
(1)	A State agency.
(2)	A local government unit.
(3)	A nonprofit corporation whose primary purpose is the conservation, preservation, or restoration of our State's cultural, environmental, or natural resources.
(b)	Criteria. – The criteria developed by the Trustees under G.S. 143B‑135.242 apply to grants made under this Part.
(c)	Matching Requirement. – The Board of Trustees shall establish matching requirements for grants awarded under this Part. This requirement may be satisfied by the donation of land to a public or private nonprofit conservation organization as approved by the Board of Trustees. The Board of Trustees may also waive the requirement to match a grant pursuant to guidelines adopted by the Board of Trustees.
(d)	Restriction. – No grant shall be awarded under this Part to satisfy compensatory mitigation requirements under 33 USC § 1344 or G.S. 143‑214.11.
(e)	Withdrawal. – An award of a grant under this Part is withdrawn if the grant recipient fails to enter into a construction contract for the project within one year after the date of the award, unless the Trustees find that the applicant has good cause for the failure. If the Trustees find good cause for a recipient's failure, the Trustees must set a date by which the recipient must take action or forfeit the grant.
"§ 143B‑135.240.  Clean Water Management Trust Fund: Board of Trustees established; membership qualifications; vacancies; meetings and meeting facilities.
(a)	Board of Trustees Established. – There is established the Clean Water Management Trust Fund Board of Trustees. The Clean Water Management Trust Fund Board of Trustees shall be administratively located within the Department of Natural and Cultural Resources.
(b)	Membership. – The Clean Water Management Trust Fund Board of Trustees shall be composed of nine members appointed to three‑year terms as follows:
(1)	Two members appointed by the Governor to terms that expire on July 1 of years that precede by one year those years that are evenly divisible by three.
(2)	Two members appointed by the Governor to terms that expire on July 1 of years that follow by one year those years that are evenly divisible by three.
(3)	One member appointed by the Governor to a term that expires on July 1 of years that are evenly divisible by three.
(4)	One member appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate to a term that expires on July 1 of years that precede by one year those years that are evenly divisible by three.
	
(5)	One member appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate to a term that expires on July 1 of years that are evenly divisible by three.
	
(6)	One member appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives to a term that expires on July 1 of years that follow by one year those years that are evenly divisible by three.
(7)	One member appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives to a term that expires on July 1 of years that are evenly divisible by three.
The initial terms of members appointed pursuant to subdivisions (2) and (6) of this subsection shall expire July 1, 2020. The initial terms of members appointed pursuant to subdivisions (1) and (4) of this subsection shall expire July 1, 2021. The initial terms of members appointed pursuant to subdivisions (3), (5), and (7) of this subsection shall expire July 1, 2022.
(c)	Qualifications. – The office of Trustee is declared to be an office that may be held concurrently with any other executive or appointive office, under the authority of Article VI, Section 9, of the North Carolina Constitution. When appointing members of the Authority, the Governor, the President Pro Tempore of the Senate, and the Speaker of the House of Representatives shall give consideration to adequate representation from the various regions of the State and shall give consideration to the appointment of members who are knowledgeable in any of the following areas:
(1)	Acquisition and management of natural areas.
(2)	Conservation and restoration of water quality.
(3)	Wildlife and fisheries habitats and resources.
(4)	Environmental management.
(5)	Historic preservation.
(d)	Limitation on Length of Service. – No member of the Board of Trustees shall serve more than two consecutive three‑year terms or a total of 10 years.
(e)	Chair. – The Governor shall appoint one member to serve as Chair of the Board of Trustees.
(e1)	Removal. – Members of the Board of Trustees may be removed pursuant to G.S. 143B‑16.
(f)	Vacancies. – An appointment to fill a vacancy on the Board of Trustees created by the resignation, removal, disability, or death of a member shall be for the balance of the unexpired term. Vacancies in appointments made by the General Assembly shall be filled as provided in G.S. 120‑122.
(g)	Frequency of Meetings. – The Board of Trustees shall meet at least twice each year and may hold special meetings at the call of the Chair or a majority of the members.
(h)	Quorum. – A majority of the membership of the Board of Trustees constitutes a quorum for the transaction of business.
(i)	Per Diem and Expenses. – Each member of the Board of Trustees shall receive per diem and necessary travel and subsistence expenses in accordance with the provisions of G.S. 120‑3.1, 138‑5, and 138‑6, as applicable. Per diem, subsistence, and travel expenses of the Trustees shall be paid from the Fund.
"§ 143B‑135.242.  Clean Water Management Trust Fund Board of Trustees: powers and duties.
(a)	Allocate Grant Funds. – The Trustees shall allocate moneys from the Fund as grants. A grant may be awarded only for a project or activity that satisfies the criteria and furthers the purposes of this Part.
(b)	Develop Grant Criteria. – The Trustees shall develop criteria for awarding grants under this Part. 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 various basinwide management plans for the State's river basins and watersheds.
(2a)	The objectives of basinwide integrated water management plans developed and adopted at the regional level.
(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)	Water supply availability and the public's need for resources adequate to meet demand for essential water uses. Criteria developed pursuant to this subdivision may include the value of preserving capacity by preventing sedimentation and nutrient pollution.
(9)	The protection or preservation of land with outstanding natural or cultural heritage values.
(10)	The protection or preservation of land that contains a relatively undisturbed and outstanding example of a native North Carolina ecological community that is now uncommon; contains a major river or tributary, watershed, wetland, significant littoral, estuarine, or aquatic site, or important geologic feature; or represents a type of landscape, natural feature, or natural area that is not currently in the State's inventory of parks and natural areas.
(11)	The protection or preservation of a site or structure that is of such historical significance as to be essential to the development of a balanced State program of historic properties.
(12)	The rate and likelihood of land‑use change and development, where such data is available.
(13)	Priority shall be given to development projects that are part of a comprehensive, long‑term land‑use plan by a State agency, local government unit, or land trust corporation accredited by the Land Trust Alliance.
(c)	Develop Additional Guidelines. – The Trustees may develop guidelines in addition to the grant criteria consistent with and as necessary to implement this Part.
(d)	Acquisition of Land. – The Trustees may acquire land by purchase, negotiation, gift, or devise. Any acquisition of land by the Trustees 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 this Part, the Trustees shall consider whether the acquisition furthers the purposes of this Part. Nothing in this section shall allow the Trustees to acquire land under the right of eminent domain.
(e)	Exchange of Land. – The Trustees may exchange any land they acquire in carrying out the powers conferred on the Trustees by this Part.
(f)	Land Management. – The Trustees may designate managers or managing agencies of the lands acquired under this Part.
(g)	Rule‑making Authority. –  The Trustees may adopt rules to implement this Part. Chapter 150B of the General Statutes applies to the adoption of rules by the Trustees.
"§ 143B‑135.244.  Clean Water Management Trust Fund: reporting requirement.
The Chair of the Board of Trustees shall report no later than December 1 each year to the Joint Legislative Oversight Committee on Agriculture and Natural and Economic Resources, the Environmental Review Commission, the Subcommittees of the House of Representatives and Senate Appropriations Committees with jurisdiction over natural and economic resources, and the Fiscal Research Division of the General Assembly regarding the implementation of this Part. The report shall include a list of the projects awarded grants from the Fund for the previous 12‑month period. The list shall include for each project a description of the project, the amount of the grant awarded for the project, and the total cost of the project.
"§ 143B‑135.246.  Clean Water Management Trust Fund: Executive Director and staff.
The Secretary of Natural and Cultural Resources shall select and appoint a competent person in accordance with this section as Executive Director of the Clean Water Management Trust Fund Board of Trustees. The Executive Director shall be charged with the supervision of all activities under the jurisdiction of the Trustees and shall serve as the chief administrative officer of the Trustees. Subject to the approval of the Secretary of Natural and Cultural Resources, the Executive Director may employ such clerical and other assistants as may be deemed necessary.
The person selected as Executive Director shall have had training and experience in conservation, protection, and management of surface water resources. The salary of the Executive Director shall be fixed by the Secretary of Natural and Cultural Resources, and the Executive Director shall be allowed travel and subsistence expenses in accordance with G.S. 138‑6. The Executive Director's salary and expenses shall be paid from the Fund. The term of office of the Executive Director shall be at the pleasure of the Secretary of Natural and Cultural Resources.

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SECTION 2.  G.S. 126‑5(c1)(21) is repealed.
SECTION 3.  The Chair of the Board of Trustees shall report to the Joint Legislative Oversight Committee on Agriculture and Natural and Economic Resources, the Environmental Review Commission, the Subcommittees of the House of Representatives and Senate Appropriations Committees with jurisdiction over natural and economic resources, and the Fiscal Research Division of the General Assembly regarding the implementation of this act no later than July 1, 2020.
SECTION 4.  G.S. 20‑79.7(b) reads as rewritten:
"(b)	Distribution of Fees. – The Special Registration Plate Account and the Collegiate and Cultural Attraction Plate Account are established within the Highway Fund. The Division must credit the additional fee imposed for the special registration plates listed in subsection (a) of this section among the Special Registration Plate Account (SRPA), the Collegiate and Cultural Attraction Plate Account (CCAPA), the Clean Water Management Trust Fund (CWMTF), which is established under G.S. 143B‑135.234, and the Parks and Recreation Trust Fund, which is established under G.S. 143B‑135.56 as follows:
…."

NORTH CAROLINA PARKS AND RECREATION AUTHORITY RECONSTITUTION
SECTION 5.  G.S. 143B‑135.202 reads as rewritten:
"§ 143B‑135.202.  North Carolina Parks and Recreation Authority; members; selection; compensation; meetings.
(a)	Membership. – The North Carolina Parks and Recreation Authority shall consist of nine members. The members shall include persons who are knowledgeable about park and recreation issues in North Carolina or with expertise in finance. In making appointments, each appointing authority shall specify under which subdivision of this subsection the person is appointed. Members shall be appointed as follows:
(1)	One member appointed by the Governor.
(2)	One member appointed by the Governor.
(3)	One member appointed by the Governor.
(4)	One member appointed by the Governor.
(5)	One member appointed by the Governor.
(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.
(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.
(8)	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.
(9)	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.
(b)	Terms. – Members shall serve staggered terms of office of three years. Members shall serve no more than two consecutive three‑year terms. After serving two consecutive three‑year terms, a member is not eligible for appointment to the Authority for at least one year after the expiration date of that member's most recent term. Upon the expiration of a three‑year term, a member may continue to serve until a successor is appointed and duly qualified as provided by G.S. 128‑7. The terms of members appointed under subdivisions (1), (6), and (8) of subsection (a) of this section shall expire on July 1 of years that are evenly divisible by three, with the initial appointments expiring July 1, 2022. The terms of members appointed under subdivisions (2), (3), and (4) of subsection (a) of this section shall expire on July 1 of years that follow by one year those years that are evenly divisible by three, with the initial appointments expiring July 1, 2020. The terms of members appointed under subdivisions (5), (7), and (9) of subsection (a) of this section shall expire on July 1 of years that precede by one year those years that are evenly divisible by three, with the initial appointments expiring July 1, 2021.
(c)	Chair. – The Governor shall appoint one member of the North Carolina Parks and Recreation Authority to serve as Chair.
(d)	Vacancies. – A vacancy on the North Carolina Parks and Recreation Authority shall be filled by the appointing authority responsible for making the appointment to that position as provided in subsection (a) of this section. An appointment to fill a vacancy shall be for the unexpired balance of the term.
(e)	Removal. – The Governor may remove, as provided in Article 10 of Chapter 143C of the General Statutes any member of the North Carolina Parks and Recreation Authority appointed by the Governor for misfeasance, malfeasance, or nonfeasance. The General Assembly may remove any member of the North Carolina Parks and Recreation Authority appointed by the General Assembly for misfeasance, malfeasance, or nonfeasance.
(f)	Compensation. – The members of the North Carolina Parks and Recreation Authority shall receive per diem and necessary travel and subsistence expenses according to the provisions of G.S. 138‑5.
(g)	Meetings. – The North Carolina Parks and Recreation Authority shall meet at least quarterly at a time and place designated by the Chair.
(h)	Quorum. – A majority of the North Carolina Parks and Recreation Authority shall constitute a quorum for the transaction of business.
(i)	Staff. – All clerical and other services required by the North Carolina Parks and Recreation Authority shall be provided by the Secretary of Natural and Cultural Resources."
SECTION 6.  This act becomes effective July 1, 2019. All rules, regulations, and decisions made by the predecessor boards and authorities reconstituted in this act shall remain in full force and effect until and unless duly modified by the successor entities.