H83 [Edition 2]

GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

H 2

HOUSE BILL 83*

Committee Substitute Favorable With Amendments 6/4/91

Short Title: 1991 Current Operations/Expansion/Capital. (Public)

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Sponsors:

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Referred to:

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February 18, 1991

A BILL TO BE ENTITLED

AN ACT TO MAKE BASE BUDGET AND EXPANSION BUDGET APPROPRIATIONS FOR CURRENT OPERATIONS OF STATE DEPARTMENTS, INSTITUTIONS, AND AGENCIES, AND TO MAKE APPROPRIATIONS FOR CAPITAL IMPROVEMENTS FOR STATE DEPARTMENTS, INSTITUTIONS, AND AGENCIES, AND TO MAKE APPROPRIATIONS FOR OTHER PURPOSES.

The General Assembly of North Carolina enacts:

––-INTRODUCTION

Section 1. The appropriations made in this act are for maximum amounts necessary to provide the services and accomplish the purposes described in the budget. Savings shall be effected where the total amounts appropriated are not required to perform these services and accomplish these purposes and, except as allowed by the Executive Budget Act, or this act, the savings shall revert to the appropriate fund at the end of each fiscal year.

Requested by: Representatives Nesbitt, Diamont

––-TITLE OF ACT

Sec. 2. This act shall be known as "The Current Operations, Expansion, and Capital Improvements Appropriations Act of 1991."

TITLE I. - CURRENT OPERATIONS

PART I.––-GENERAL FUND APPROPRIATIONS

––-CURRENT OPERATIONS/GENERAL FUND

Sec. 3. Appropriations from the General Fund of the State for the maintenance of the State departments, institutions, and agencies, and for other purposes as enumerated are made for the biennium ending June 30, 1993, according to the following schedule:

Current Operations-General Fund 1991-92 1992-93

General Assembly $ 18,058,584 $ 21,046,954

Judicial Department 206,053,407 209,135,828

Department of the Governor

01. Office of the Governor 5,487,406 5,502,312

02. Office of State Budget

and Management 3,823,306 3,949,479

Lieutenant Governor's Office 545,159 546,884

Department of Secretary of State 4,356,396 4,051,550

Department of State Auditor 12,916,863 12,932,026

Department of State Treasurer 4,930,251 4,942,109

Department of Public Education 3,220,243,920 3,280,320,323

Department of Justice 49,750,476 49,098,004

Department of Administration

01. Administration 48,048,745 50,804,162

02. State Controller 4,995,821 5,003,852

Department of Agriculture 39,078,314 38,895,711

Department of Labor 8,047,871 8,054,821

Department of Insurance 12,178,029 12,148,724

Department of Transportation

01. Aeronautics 8,316,571 8,116,571

02. Aid to Railroads 128,406 100,000

Total Department of

Transportation 8,444,977 8,216,571

Department of Environment, Health, and

Natural Resources 171,915,042 173,523,494

Office of Administrative Hearings 1,281,763 -

Administrative Rules Review Commission 251,153 251,330

Department of Human Resources

01. Alcohol Drug Abuse Treatment Center -

Black Mountain 3,850,898 3,863,726

02. Alcohol Drug Abuse Treatment Center -

Butner 3,249,490 3,265,434

03. Alcohol Drug Abuse Treatment Center -

Greenville 3,281,023 3,296,129

04. N.C. Special Care Center 636,247 677,743

05. Black Mountain Center 1,719,852 2,024,711

06. DHR - Secretary 7,727,680 7,720,229

07. Division of Aging 8,501,036 8,501,722

08. Schools for the Deaf and

Hard of Hearing 19,182,026 19,314,192

09. Social Services 130,306,014 137,745,264

10. Medical Assistance 522,732,982 602,390,661

11. Social Services-State Aid to

Non-State Agencies 5,440,669 5,440,669

12. Division of Services for the

Blind 12,004,464 12,023,790

13. Division of Mental Health,

Developmental Disabilities, and

Substance Abuse Services 185,387,611 186,295,870

14. Dorothea Dix Hospital 35,390,232 37,689,383

15. Broughton Hospital 29,445,682 31,007,474

16. Cherry Hospital 30,679,936 31,973,149

17. John Umstead Hospital 30,733,855 34,128,381

18. Western Carolina Center 1,659,809 1,898,909

19. O'Berry Center 2,142,346 2,343,637

20. Murdoch Center 8,789,963 8,962,036

21. Caswell Center 5,797,091 7,746,005

22. Division of Facility Services 28,333,232 29,332,929

23. Division of Vocational

Rehabilitation Services 21,764,338 21,764,916

24. Division of Youth Services 45,798,628 45,844,845

Total Department of

Human Resources 1,144,555,104 1,245,251,804

Department of Correction 474,540,082 490,019,388

Department of Economic and Community

Development

01. Economic and Community

Development 24,613,189 24,626,628

02. Biotechnology 7,307,547 7,307,547

03. MCNC 15,675,140 15,150,000

04. Rural Economic Development

Center 1,630,627 1,614,766

Department of Revenue 53,197,751 53,164,856

Department of Cultural Resources 38,955,956 39,671,588

Department of Crime Control

and Public Safety 27,255,975 27,358,666

University of North Carolina - Board

of Governors

01. General Administration 14,794,357 16,875,887

02. University Institutional

Program 6,388,426 6,488,426

03. Related Educational Programs 44,732,694 44,503,693

04. University of North Carolina

at Chapel Hill

a. Academic Affairs 132,634,294 139,319,026

b. Health Affairs 99,957,942 104,859,175

c. Area Health Education

Centers 31,287,593 31,260,059

05. North Carolina State University

at Raleigh

a. Academic Affairs 169,787,112 172,933,442

b. Agricultural Research

Service 35,695,033 35,530,097

c. Agricultural Extension

Service 27,818,665 27,686,447

06. University of North Carolina at

Greensboro 54,411,564 54,659,118

07. University of North Carolina at

Charlotte 55,124,066 55,228,519

08. University of North Carolina at

Asheville 16,558,044 16,639,255

09. University of North Carolina at

Wilmington 32,270,378 32,434,104

10. East Carolina University

a. Academic Affairs 71,449,417 71,802,831

b. Division of Health Affairs 51,017,273 52,977,868

11. North Carolina Agricultural and

Technical State University 35,602,821 35,872,214

12. Western Carolina University 34,438,068 34,528,654

13. Appalachian State University 52,494,997 52,683,026

14. Pembroke State University 15,573,099 15,569,618

15. Winston-Salem State University 15,714,775 15,814,179

16. Elizabeth City State

University 14,554,788 14,537,230

17. Fayetteville State University 16,742,707 16,720,944

18. North Carolina Central

University 26,427,038 26,531,044

19. North Carolina School of the

Arts 8,280,060 8,287,663

20. North Carolina School of

Science and Mathematics 7,080,682 7,026,074

21. UNC Hospitals at Chapel Hill 38,555,919 47,093,268

Total University of North

Carolina - Board of Governors 1,109,391,812 1,137,861,861

Department of Community

Colleges 334,055,464 361,599,391

State Board of Elections 471,954 432,324

Contingency and Emergency 1,125,000 1,125,000

Reserve for Salary Adjustments 500,000 500,000

Reserve for Lowest Paid Employees 750,000 750,000

Reserve for Data Processing Equipment 5,000,000 5,000,000

Reserve for State Employees Health

Benefit Plan 79,700,000 95,000,000

Reserve for Reimbursements to

Local Governments 474,606,174 474,606,174

Debt Service 76,028,270 73,049,578

GRAND TOTAL CURRENT OPERATIONS –

GENERAL FUND $7,689,767,528 $7,942,513,705

PART II.––-CURRENT OPERATIONS/HIGHWAY FUND

Sec. 4. Appropriations from the Highway Fund of the State for the maintenance and operation of the Department of Transportation, and for other purposes as enumerated, are made for the biennium ending June 30, 1993, according to the following schedule:

Current Operations-Highway Fund 1991-92 1992-93

Department of Transportation

01. Administration $ 34,171,517 $ 34,329,674

02. Division of Highways

a. Administration and

Operations 32,800,070 32,866,712

b. State Construction

(01) Primary Construction - -

(02) Secondary

Construction 66,121,926 66,717,023

(03) Urban Construction 10,805,664 10,028,266

(04) Access and Public

Service Roads 2,000,000 2,000,000

(05) Special Appropriation

for Highways 5,000 5,000

(06) Spot Safety

Improvements 9,100,000 9,100,000

c. State Funds to Match Federal

Highway Aid

(01) Construction 65,992,066 65,992,066

(02) Planning Survey and Highway

Planning Research 2,959,649 2,959,649

d. State Maintenance

(01) Primary 85,882,433 85,882,433

(02) Secondary 151,355,630 151,355,630

(03) Urban 22,714,972 22,714,972

(04) Contract Resurfacing 100,000,000 102,500,000

e. Ferry Operations 16,547,896 16,547,896

03. Division of Motor Vehicles 74,682,719 74,649,678

04. Governor's Highway Safety Program 288,398 288,736

05. State Aid to Municipalities 66,121,926 66,717,023

06. State Aid for Public

Transportation 5,038,766 5,046,001

07. Salary Adjustments for Highway

Fund Employees 200,000 200,000

08. Reserve to Correct Occupational

Safety and Health Conditions 425,000 425,000

09. Reserve to Continue DOT

Merit Salary Increases 4,510,383 4,510,383

10. Debt Service 38,227,230 38,018,250

11. Reserve for State Employee

Health Benefit Plan 6,300,000 7,500,000

Appropriations for Other State Agencies

01. Crime Control and Public

Safety 84,297,637 86,652,285

02. Other Agencies

a. Department of Agriculture 2,892,001 2,790,013

b. Department of Revenue 1,921,279 1,923,941

c. Department of Environment,

Health, and Natural Resources:

LUST Trust Fund 5,186,720 5,586,046

Chemical Test Program 378,286 378,286

d. Department of Correction 4,614,056 4,614,056

e. Department of Justice 240,250 240,250

f. Department of Public

Education 22,930,662 22,868,826

GRAND TOTAL CURRENT OPERATIONS –

HIGHWAY FUND $ 918,712,136 $ 925,408,095

PART III.––-HIGHWAY TRUST FUND

Sec. 4.1.

1991-92 1992-93

01. Intrastate System $ 201,279,015 $ 203,941,317

02. Secondary Roads Construction 46,099,293 46,878,630

03. Urban Loops 81,313,427 82,389,951

04. State Aid - Municipalities 21,099,293 21,378,630

05. Program Administration 15,108,972 15,311,472

06. Transfer to General Fund 170,000,000 170,000,000

GRAND TOTAL/HIGHWAY TRUST FUND $ 534,900,000 $ 539,900,000

PART IV.––-BLOCK GRANT APPROPRIATIONS

Requested by: Representatives Nye, Easterling, Ethridge, H. Hunter

––-BLOCK GRANT PROVISIONS

Sec. 5. (a) Appropriations from federal block grant funds are made for the fiscal year ending June 30, 1992, according to the following schedule:

TOTAL JOB TRAINING PARTNERSHIP ACT $ 35,316,871

COMMUNITY SERVICES BLOCK GRANT

01. Community Action Agencies $ 8,906,905

02. Limited Purpose Agencies 494,305

03. Department of Human Resources

to administer and monitor

the activities of the

Community Services Block Grant 484,890

TOTAL COMMUNITY SERVICES BLOCK GRANT $ 9,886,100

COMMUNITY DEVELOPMENT BLOCK GRANT

01. State Administration $ 913,140

02. Urgent Needs/Contingency 1,987,193

03. Development Planning/Housing 1,987,193

04. Economic Development 7,948,772

05. Community Revitalization 27,820,702

TOTAL COMMUNITY DEVELOPMENT

BLOCK GRANT $ 40,657,000

PREVENTIVE HEALTH BLOCK GRANT

01. Emergency Medical Services $ 451,915

02. Basic Public Health Services 928,395

03. Hypertension Programs 590,230

04. Health Education/Risk Reduction Programs and

Health Promotion/Local Health Departments 1,013,371

05. Fluoridation of Water Supplies 158,134

06. Rape Prevention and Rape

Crisis Programs 91,269

07. AIDS/HIV Education, Counseling,

and Testing 290,577

08. TB Control Program 61,787

TOTAL PREVENTIVE HEALTH BLOCK GRANT $ 3,585,678

MATERNAL AND CHILD HEALTH SERVICES

01. Healthy Mother/Healthy Children

Block Grants to Local Health

Departments $ 11,788,781

02. High Risk Maternity Clinic Services,

Perinatal Education, and Consultation

to Local Health Departments

and Other Health Care Providers 1,554,303

03. Services to Disabled Children 5,367,054

04. Reimbursements for Local Health

Departments for Contracted

Nutritional Services 120,530

TOTAL MATERNAL AND CHILD

HEALTH SERVICES $ 18,830,668

SOCIAL SERVICES BLOCK GRANT

01. County Departments of Social Services $ 42,846,858

02. Allocation for In-Home Services provided

by County Departments of

Social Services 1,184,524

03. Division of Mental Health, Developmental

Disabilities, and Substance Abuse 5,514,782

04. Division of Services for the Blind 3,162,920

05. Division of Youth Services 1,037,868

06. Division of Facility Services 330,573

07. Division of Aging 333,656

08. Day Care Services 12,158,899

09. Volunteer Services 55,086

10. State Administration and State Level

Contracts 3,392,468

11. Voluntary Sterilization Funds 98,710

12. Transfer to Maternal and Child

Health Block Grant 1,670,089

13. Adult Day Care Services 652,889

14. County Departments of Social Services for

Child Abuse/Prevention and

Permanency Planning 394,841

15. Allocation to Division of Maternal and

Child Health for Grants-in-Aid to Prevention

Programs 439,261

16. Transfer to Preventive Health

Block Grant for Emergency Medical Services

and Basic Public Health Services 486,258

17. Allocation to Preventive Health Block

Grant for AIDS Education 290,577

18. Allocation to Department of Administration

for North Carolina Fund for Children 45,270

19. Allocation to the Division of Economic

Opportunity for Head Start,

Elderly and Handicapped Services 197,421

TOTAL SOCIAL SERVICES BLOCK GRANT $ 74,292,950

LOW INCOME ENERGY BLOCK GRANT

01. Energy Assistance Programs $ 18,407,453

02. Crisis Intervention 4,441,897

03. Administration 1,981,400

04. Weatherization Program 1,737,187

05. Indian Affairs 27,222

06. Transfer to Preventive Health Block Grant

for Emergency Medical Services Program 209,116

07. Transfer to Social Services

Block Grant for Adult

Day Care Services 417,648

08. Transfer to Social Services Block

Grant for State Administration

& Contract Service 192,748

09. Transfer to Maternal and Child Health

Block Grant in the Division of

Maternal and Child Health

for Healthy Mothers and Children 1,696,362

10. Transfer to SSBG for allocation to the

Department of Administration for

the North Carolina Fund for Children 45,270

TOTAL LOW INCOME ENERGY BLOCK GRANT $ 29,156,303

ALCOHOL AND DRUG ABUSE AND MENTAL HEALTH

SERVICES BLOCK GRANT

01. Allocate funds to the four regional

offices on a per capita basis

for mental health services $ 1,866,556

02. Programs for the Chronically

Mentally Ill 3,336,748

03. Continuation of child mental health

nonresidential services in

accordance with the Child Mental

Health Plan 315,013

04. Continuation of child mental health

residential services including group

homes, specialized foster care,

therapeutic homes, professional

parenting programs, and respite care,

with an emphasis on children under

the age of 12 359,703

05. Continuation and expansion of community-

based alcohol and drug services

including prevention, early inter-

vention, treatment, rehabilitation,

nonhospital medical detoxification,

and training 6,121,682

06. Continuation and expansion of services

to female substance abusers,

including specialized services at

the ADATCS 2,652,698

07. Continuation and expansion of services to

IV drug abusers, including increased

capacity for drug screens and IV

services at the ADATCS 3,518,950

08. Services to adolescents, including

continuation and expansion of services

in accordance with the Youth Substance

Abuse Plan 3,140,864

09. Funding to support the provision of

Treatment Alternatives to Street

Crimes (TASC) programs for adults

and four demonstration projects with

local jails 462,104

10. Continuing of funding for detoxification

services in the Eastern Region 1,048,110

11. Administration 1,085,098

TOTAL ALCOHOL, DRUG ABUSE AND

MENTAL HEALTH SERVICES

BLOCK GRANT $ 23,907,526

MENTAL HEALTH SERVICES FOR THE HOMELESS

BLOCK GRANT

01. Specialized Community Services for the

Chronically Mentally Ill $ 420,000

02. Community-Based Services for Chronically

Mentally Ill Youth 97,656

03. Administration 13,344

TOTAL MENTAL HEALTH SERVICES FOR THE

HOMELESS BLOCK GRANT $ 531,000

COMMUNITY YOUTH ACTIVITY PROGRAM BLOCK GRANT

01. Development of Community-Based Substance

Abuse Prevention Programs

for Youth $ 92,091

TOTAL COMMUNITY YOUTH ACTIVITY PROGRAM

BLOCK GRANT $ 92,091

CHILD CARE AND DEVELOPMENT BLOCK GRANT

01. Child Day Care Services 14,752,146

02. Head Start Wrap-Around 3,337,000

03. Revolving Loans/Grants 500,000

04. County Day Care Coordinators 467,167

05. Staff/Child Ratio Reduction 208,300

06. Study of Day Care Salaries 100,000

07. Child Care Worker Credentials 100,000

08. Resource and Referral Programs 650,000

09. Facility Services Administration 202,054

TOTAL CHILD CARE AND DEVELOPMENT

BLOCK GRANT $ 20,316,667

(b) Decreases in Federal Fund Availability

If federal funds are reduced below the amounts specified above after the effective date of this act, then every program, in each of the federal block grants listed above, shall be reduced by the same percentage as the reduction in federal funds.

Any block grant funds appropriated by the United States Congress in addition to the funds specified in this act shall be expended as follows:

(1) For the Community Development Block Grant or for the Preventive Health Block Grant – each program category under the Community Development Block Grant or the Preventive Health Block Grant, as applicable, shall be increased by the same percentage as the increase in federal funds.

(2) For the Maternal and Child Health Services Block Grant – these additional funds shall be allocated to local health departments to assist in the reduction of infant mortality.

(3) For other block grants – these additional funds may be budgeted by the appropriate department, with the approval of the Office of State Budget and Management, provided the resultant increases are in accordance with federal block grant requirements and are within the scope of the block grant plan approved by the General Assembly. All these budgeted increases shall be reported to the Joint Legislative Commission on Governmental Operations and to the Director of the Fiscal Research Division.

This subsection shall not apply to Job Training Partnership Act funds.

(d) Education Setaside of JTPA Funds

The Department of Economic and Community Development shall certify to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office when Job Training Partnership Act funds have been distributed to each agency, the total amount distributed to each agency, and the total amount of eight percent (8%) Education Setaside funds received.

PART V.––-GENERAL PROVISIONS

Requested by: Representatives Nesbitt, Diamont

––-SPECIAL FUNDS, FEDERAL FUNDS, AND DEPARTMENTAL RECEIPTS/AUTHORIZATION FOR EXPENDITURES

Sec. 6. There is appropriated out of the cash balances, federal receipts, and departmental receipts available to each department, sufficient amounts to carry on authorized activities included under each department's operations. All these cash balances, federal receipts, and departmental receipts shall be expended and reported in accordance with provisions of the Executive Budget Act, except as otherwise provided by statute. The Director of the Budget shall develop necessary budget controls, regulations, and systems to ensure that these funds and other State funds subject to the Executive Budget Act, may not be spent in a manner which would cause a deficit in expenditures.

Pursuant to G.S. 143-34.2, State departments, agencies, institutions, boards, or commissions may make application for, receive, or disburse any form of non-State aid. All non-State monies received shall be deposited with the State Treasurer unless otherwise provided by State law. These funds shall be expended in accordance with the terms and conditions of the fund award that are not contrary to the laws of North Carolina.

Requested by: Representatives Nesbitt, Diamont

––-INSURANCE AND FIDELITY BONDS

Sec. 7. All insurance and all official fidelity and surety bonds authorized for the several departments, institutions, and agencies shall be effected and placed by the Insurance Department, and the cost of placement shall be paid by the affected department, institution, or agency with the approval of the Insurance Commissioner.

Requested by: Representatives Nesbitt, Diamont

––-CONTINGENCY AND EMERGENCY FUND ALLOCATION

Sec. 8. Of the funds appropriated in this Title to the Contingency and Emergency Fund, $900,000 for the 1991-92 fiscal year and $900,000 for the 1992-93 fiscal year shall be designated for emergency allocations, which are for the purposes outlined in G.S. 143-23(a1). $225,000 for the 1991-92 fiscal year and $225,000 for the 1992-93 fiscal year shall be designated for other allocations from the Contingency and Emergency Fund.

Requested by: Representatives Nesbitt, Diamont

––-BUDGETING OF PILOT PROGRAMS

Sec. 9. (a) Any program designated by the General Assembly as experimental, model, or pilot shall be shown as a separate budget item and shall be considered as an expansion item until a succeeding General Assembly reapproves it.

Any new program funded in whole or in part through a special appropriations bill shall be designated as an experimental, model, or pilot program.

(b) The Governor shall submit to the General Assembly with his proposed budget a report of which items in the proposed budget are subject to the provisions of this section.

Requested by: Representatives Nesbitt, Diamont

––-AUTHORIZED TRANSFERS

Sec. 10. The Director of the Budget may transfer to General Fund budget codes from the General Fund salary adjustment appropriation, and may transfer to Highway Fund budget codes from the Highway Fund salary adjustment appropriation, amounts required to support approved salary adjustments made necessary by difficulties in recruiting and holding qualified employees in State government. The funds may be transferred only when the use of salary reserve funds in individual operating budgets is not feasible.

Requested by: Representatives Nesbitt, Diamont

––-EXPENDITURES OF FUNDS IN RESERVES LIMITED

Sec. 11. All funds appropriated by this act into reserves may be expended only for the purposes for which the reserves were established.

Requested by: Representatives Ethridge, H. Hunter

––-NONPROFITS MAY RELINQUISH FUNDS

Sec. 12. G.S. 143-6.1 reads as rewritten:

"§ 143-6.1. Information from private organizations receiving State funds.

Every private person, corporation, organization, and institution which receives, uses or expends any State funds shall use or expend such funds only for the purposes for which such State funds were appropriated by the General Assembly or collected by the State.

Each private person, corporation, organization, and institution which uses or expends State funds in the amount of twenty-five thousand dollars ($25,000) or more annually, except when the funds are compensation for goods or services, shall file annually with the State Auditor and with the Joint Legislative Commission on Governmental Operations a financial statement in such form and on such schedule as shall be prescribed by the State Auditor, and shall furnish to the State Auditor for audit all books, records and other information as shall be necessary for the State Auditor to account fully for the use and expenditure of State funds. Each such private person, corporation, organization, and institution shall furnish such additional financial or budgetary information as shall be requested by the State Auditor or by the Joint ~~Committee~~ Legislative Commission on Governmental Operations. The State shall not disburse State funds appropriated by the General Assembly or collected by the State for use by any private person, corporation, organization, or institution unless that person, corporation, organization, or institution has provided all the reports and financial information required by this section. All financial statements furnished to the State Auditor or to the Joint Legislative Commission on Governmental Operations pursuant to this section, and any audits or other reports prepared by the State Auditor, shall be public records.

The receipt, use or expenditure of State funds by a private person, corporation, organization, and institution shall not, in and of itself, make or constitute such person, corporation, organization, or institution a State agency."

Requested by: Representatives Ethridge, H. Hunter

––-STATE MONEY RECIPIENTS/CONFLICT OF INTEREST POLICY

Sec. 13. Each private, nonprofit entity eligible to receive State funds, either by General Assembly appropriation, or by grant, loan, or other allocation from a State agency, before funds may be disbursed to the entity, shall file with the disbursing agency a notarized copy of that entity's policy addressing conflicts of interest that may arise involving the entity's management employees and the members of its board of directors or other governing body. The policy shall address situations where any of these individuals may directly or indirectly benefit, except as the entity's employees or members of the board or other governing body, from the entity's disbursing of State funds, and shall include actions to be taken by the entity or the individual, or both, to avoid conflicts of interest and the appearance of impropriety.

Requested by: Representative Dockham

––-DEPARTMENTAL REDUCTIONS/COUNTIES HARMLESS

Sec. 14. The Departments of Environment, Health, and Natural Resources, Economic and Community Development, Labor, and Agriculture shall not reduce continuing operations disbursements to local governments for the 1991-92 fiscal year and the 1992-93 fiscal year below the disbursement level for the 1990-91 fiscal year solely for the purpose of effectuating reductions to those Departments required by this act.

Requested by: Representatives Warner, Anderson

––-STATE PURCHASES OF SUPPLIES, MATERIALS, EQUIPMENT

Sec. 14.1. (a) Notwithstanding the provisions of Article 3 of Chapter 143 of the General Statutes, each governmental entity required by statute to use the services of the Department of Administration in the purchase of supplies, materials, and equipment may make direct purchases of supplies, materials, and equipment during the 1991-93 biennium without complying with Article 3 of Chapter 143 of the General Statutes (Purchases and Contracts) provided that (1) all purchases shall be made pursuant to an open competitive bidding process substantially similar to that provided for in that Article, (2) no purchases may be made under the authority of this section except at a price which is less than that for the same item or items under any State contract in effect at the time of the purchase, and (3) all purchases shall be made under the authority of this section without regard to race, creed, gender, or national origin.

(b) Each governmental entity required by statute to use the services of the Department of Administration in the purchase of supplies, materials, and equipment that makes direct purchases pursuant to subsection (a) of this section shall report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division regarding these purchases by December 31, 1991, for the 1991-92 fiscal year and by May 1, 1992, for the 1992-93 fiscal year.

PART VI.––-STATE BOARD OF ELECTIONS

Requested by: Representatives Bowman, N.J. Crawford

––-CHANGE THE DATE OF THE PRESIDENTIAL PRIMARY TO THE DATE OF THE REGULAR STATEWIDE PRIMARY, AND ELIMINATE REIMBURSEMENT TO THE COUNTIES OF THE EXPENSE OF HOLDING A SEPARATE PRIMARY

Sec. 15. (a) G.S. 163-213.2 reads as rewritten:

"§ 163-213.2. Primary to be held; date; qualifications and registration of voters.

On the ~~second Tuesday in March, 1988,~~ Tuesday after the first Monday in May, 1992, and every four years thereafter, the voters of this State shall be given an opportunity to express their preference for the person to be the presidential candidate of their political party.

Any person otherwise qualified who will become qualified by age to vote in the general election held in the same year of the presidential preference primary shall be entitled to register and vote in the presidential preference primary. Such persons may register not earlier than 60 days nor later than the 21st day prior to the said primary. In addition, persons who will become qualified by age to register and vote in the general election for which the primary is held, who do not register during the special period may register to vote after such period as if they were qualified on the basis of age, but until they are qualified by age to vote, they may vote only in primary elections."

(b) G.S. 163-213.3 reads as rewritten:

"§ 163-213.3. Conduct of election.

The presidential preference primary election shall be conducted and canvassed by the same authority and in the manner provided by law for the conduct and canvassing of the primary election for the office of Governor and all other offices enumerated in G.S. 163-187 and under the same provisions stipulated in G.S. ~~163-188,~~ 163-188. ~~except that the earliest date by which absentee ballots shall be available shall be 35 days prior to the date of the primary.~~ The State Board of Elections shall have authority to promulgate reasonable rules and regulations, not inconsistent with provisions contained herein, pursuant to the administration of this Article."

"§ 163-213.4. Nomination by State Board of Elections.

The State Board of Elections shall convene in Raleigh on the first Tuesday in ~~January~~ February preceding the presidential preference primary election. At the meeting required by this section, the State Board of Elections shall nominate as presidential primary candidates all candidates affiliated with a political party, recognized pursuant to the provisions of Article 9 of Chapter 163 of the General Statutes, who have become eligible to receive payments from the Presidential Primary Matching Payment Account, as provided in section 9033 of the U.S. Internal Revenue Code of 1954, as amended. Immediately upon completion of these requirements, the Board shall release to the news media all such nominees selected. Provided, however, nothing shall prohibit the partial selection of nominees prior to the meeting required by this section, if all provisions herein have been complied with."

(d) G.S. 163-213.11 is repealed.

PART VII.––-OFFICE OF STATE AUDITOR

Requested by: Representatives Bowman, N.J. Crawford

––-DEPARTMENT OF REVENUE PERFORMANCE AUDIT

Sec. 16. The State Auditor shall conduct an operations performance audit of the Department of Revenue with particular attention to auditing the efficiency of information systems and the effectiveness of tax collection systems. The State Auditor shall report the results of the audit to the General Assembly on or before May 1, 1992.

PART VIII.––-DEPARTMENT OF ADMINISTRATION

Requested by: Representatives Bowman, N.J. Crawford

––-BOARD OF SCIENCE AND TECHNOLOGY LIMITATION

Sec. 17. All funds appropriated in the 1991-92 fiscal year and the 1992-93 fiscal year for research grants for the Board of Science and Technology shall be used only for research grants and shall not be transferred to any other objects of expenditure.

Requested by: Representatives Bowman, N.J. Crawford

––-OFFICE OF STATE PERSONNEL DECENTRALIZATION

Sec. 18. (a) Effective January 1, 1993, the Office of State Personnel shall have decentralized the classification and salary administration functions of all State departments with more than 500 permanent full-time employees, subject to criteria and standards set by the State Personnel Commission. The Commission shall have the authority to suspend decentralization when agencies violate State Personnel Commission criteria and standards.

The Office of State Personnel shall report annually to the Joint Legislative Commission on Governmental operations and to the Fiscal Research Division by December 1 of each year, beginning on December 1, 1991, on its progress towards this decentralization.

(b) The Office of State Personnel shall present its plan for decentralization of the classification and salary administration functions to the State Personnel Study Commission or its successor. The State Personnel Study Commission shall consider those statutory changes as may facilitate decentralization and report its recommendations to the General Assembly by April 1, 1992.

Requested by: Representatives Bowman, N.J. Crawford

––-COUNCIL OF GOVERNMENT FUNDS

Sec. 19. (a) Of the funds appropriated in this Title to the Department of Administration, $864,270 for 1991-92 fiscal year and $864,270 for 1992-93 fiscal year shall only be used as provided by this section. Each regional council of government or lead regional organization is allocated up to $48,015 each fiscal year, with the actual amount calculated as provided in subsection (b) of this section.

(b) The funds shall be allocated as follows: A share of the maximum $48,015 each fiscal year shall be allocated to each county and smaller city based on the most recent annual estimate of the Office of State Budget and Management of the population of that county (less the population of any larger city within that county) or smaller city, divided by the sum of the total population of the region (less the population of larger cities within that region) and the total population of the region living in smaller cities. Those funds shall be paid to the regional council of government for the region in which that city or county is located upon receipt by the Department of Administration of a resolution of the governing board of the county or city requesting release of the funds. If any city or county does not so request payment of funds by June 30 of a State fiscal year, that share of the allocation for that fiscal year shall revert to the General Fund.

(c) A regional council of government may use funds appropriated by this section only to assist local governments in grant applications, economic development, community development, support of local industrial development activities, and other activities as deemed appropriate by the member governments.

(d) Funds appropriated by this section may not be used for payment of dues or assessments by the member governments, and may not supplant funds appropriated by the member governments.

(e) As used in this section "Larger City" means an incorporated city with a population of 50,000 or over. "Smaller City" means any other incorporated city.

Requested by: Representatives Ethridge, N.J. Crawford

––-ALLOCATION OF RAPE CRISIS CENTER FUNDS

Sec. 20. All funds for the Rape Crisis Centers appropriated to the Department of Administration, Council of the Status of Women, for the 1991-92 fiscal year and the 1992-93 fiscal year in this Title shall be available to Rape Crisis Centers providing direct services to victims of sexual assault and rape prevention services. Funds shall be awarded according to criteria established by the Department of Administration. In reviewing grant applications, the Department shall consider the impact of discontinued federal funding on those centers that received funding through Section 41 of Chapter 1086 of the 1987 Session Laws, Regular Session 1988. Grants shall be awarded by September 1 each fiscal year and the funds disbursed on a quarterly basis.

Requested by: Representatives Bowman, N.J. Crawford

––-DOMESTIC VIOLENCE CENTER FUNDS

Sec. 21. The funds appropriated in this Title to the Department of Administration, Council on the Status of Women, for fiscal years 1991-92 and 1992-93 for domestic violence centers, shall be allocated equally among all of the 61 domestic violence centers in operation on July 1, 1989, that offered services including a hotline, transportation services, community education programs, daytime services, and call forwarding during the night. For the 1991-92 fiscal year and for the 1992-93 fiscal year, each grant shall be $17,500. Grants shall be awarded based on criteria established by the Department of Administration and disbursed on a quarterly basis. The North Carolina Coalition Against Domestic Violence, Incorporated, is eligible for a grant of $10,000 under this section.

Requested by: Representatives Bowman, N.J. Crawford

––-MOTOR FLEET MANAGEMENT CHANGES/EFFICIENCY MEASURES/COMMUTING AND SPECIAL USE VEHICLE RESTRICTIONS

Sec. 22. G.S. 143-341(8)i. reads as rewritten:

"i. To establish and operate a central motor pool and such subsidiary related facilities as the Secretary may deem necessary, and to that end:

1. To establish and operate central facilities for the maintenance, repair, and storage of state-owned passenger motor vehicles for the use of State agencies; to utilize any available State facilities for that purpose; and to establish such subsidiary facilities as the Secretary may deem necessary.

2. To acquire passenger motor vehicles by transfer from other State agencies and by purchase. All motor vehicles transferred to or purchased by the Department shall become part of a central motor pool.

3. To require on a schedule determined by the Department all State agencies to transfer ownership, custody or control of any or all passenger motor vehicles within the ownership, custody or control of that agency to the Department, except those motor vehicles under the ownership, custody or control of the Highway Patrol or the State Bureau of Investigation which are used primarily for law-enforcement purposes, and except those motor vehicles under the ownership, custody or control of the Department of Crime Control and Public Safety for Butner Public Safety which are used primarily for law-enforcement, fire, or emergency purposes.

4. To maintain, store, repair, dispose of, and replace state-owned motor vehicles under the control of the Department. The Department shall ensure that state-owned vehicles are not normally replaced until they have been driven for 90,000 miles or more.

5. Upon proper requisition, proper showing of need for use on State business only, and proper showing of proof that all persons who will be driving the motor vehicle have valid drivers' licenses, to assign suitable transportation, either on a temporary or permanent basis, to any State employee or agency. An agency assigned a motor vehicle may not allow a person to operate that motor vehicle unless that person displays to the agency and allows the agency to copy that person's valid driver's license. Notwithstanding G.S. 20-30(6), persons or agencies requesting assignment of motor vehicles may photostat or otherwise reproduce drivers' licenses for purposes of complying with this subpart.

As used in this subpart, 'suitable transportation' means the standard vehicle in the State motor fleet, unless special towing provisions are required by the employee or agency. The Department may not assign any employee or agency a motor vehicle that is not suitable. The Department shall not approve requests for vehicle assignment or reassignment when the purpose of that assignment or reassignment is to provide any employee with a newer or lower mileage vehicle because of his or her rank, management authority, or length of service or because of any non-job-related reason. The Department shall not assign 'special use' vehicles, such as four-wheel drive vehicles or law enforcement vehicles, to any agency or individual except upon written justification, verified by historical data, and accepted by the Secretary.

6. To allocate and charge against each State agency to which transportation is furnished, on a basis of mileage or of rental, its proportionate part of the cost of maintenance and operation of the motor pool.

The amount allocated and charged by the Department of Administration to State agencies to which transportation is furnished shall be at least as follows:

I. Pursuit vehicles and full size ~~4-wheel~~ four-wheel drive vehicles – $.24/mile.

II. Vans and compact ~~4-wheel~~ four-wheel drive vehicles – $.22/mile.

III. All other vehicles – $.20/mile.

7. To adopt, with the approval of the Governor, reasonable rules for the efficient and economical operation, maintenance, repair, and ~~replacement~~ replacement, as limited in paragraph 4. of this subdivision, of all state-owned motor vehicles under the control of the Department, and to enforce those rules; and to adopt, with the approval of the Governor, reasonable rules regulating the use of private motor vehicles upon State business by the officers and employees of State agencies, and to enforce those rules. The Department, with the approval of the Governor, may delegate to the respective heads of the agencies to which motor vehicles are permanently assigned by the Department the duty of enforcing the rules adopted by the Department pursuant to this paragraph. Any person who violates a rule adopted by the Department and approved by the Governor is guilty of a misdemeanor, and upon conviction is punishable in the discretion of the court.

7a. To adopt with the approval of the Governor and to enforce rules and to coordinate State policy regarding (i) the permanent assignment of state-owned passenger motor vehicles and (ii) the use of and reimbursement for those vehicles for ~~commuting.~~ the limited commuting permitted by this subdivision. For the purpose of this subdivision 7a, 'state-owned passenger motor vehicle' includes any state-owned passenger motor vehicle, whether or not owned, maintained or controlled by the Department of Administration, and regardless of the source of the funds used to purchase it. Notwithstanding the provisions of G.S. 20-190 or any other provisions of law, all state-owned passenger motor vehicles are subject to the provisions of this subdivision 7a; no permanent assignment shall be made and no one shall be exempt from payment of reimbursement for commuting or from the other provisions of this subdivision 7a except as provided by this subdivision 7a. Commuting, as defined and regulated by this subdivision, is limited to those specific cases in which the Secretary has received and accepted written justification, verified by historical data. The Department shall not assign any state-owned motor vehicle that may be used for commuting other than those authorized by the procedure prescribed in this subdivision.

A State-owned passenger motor vehicle shall not be permanently assigned to an individual who is likely to drive it on official business at a rate of less than ~~12,600 miles per year~~ 3,150 miles per quarter unless (i) the individual's duties are routinely related to public safety or (ii) the individual's duties are likely to expose him routinely to life-threatening situations. A State-owned passenger motor vehicle shall also not be permanently assigned to an agency that is likely to drive it on official business at a rate of less than ~~12,600 miles per year~~ 3,150 miles per quarter unless the agency can justify to the Division of Motor Fleet Management the need for permanent assignment because of the unique use of the vehicle. The Department of Administration shall verify, on a quarterly basis, that each motor vehicle has been driven at the minimum allowable rate. If it has not and if the department by whom the individual to which the car is assigned is employed or the agency to which the car is assigned cannot justify the lower mileage for the quarter in view of the minimum annual rate, the permanent assignment shall be revoked immediately.

Every individual who uses a State-owned passenger motor vehicle, pickup truck, or van to drive between his official work station and his home, shall reimburse the State for these trips at a rate computed by the Department. This rate shall approximate the benefit derived from the use of the vehicle as prescribed by federal law. Reimbursement shall be for 20 days per month regardless of how many days the individual uses the vehicle to commute during the month. Reimbursement shall be made by payroll deduction. Funds derived from reimbursement on vehicles owned by the Motor Fleet Management Division shall be deposited to the credit of the Division; funds derived from reimbursements on vehicles initially purchased with appropriations from the Highway Fund and not owned by the Division shall be deposited in a Special Depository Account in the Department of Transportation, which shall revert to the Highway Fund; funds derived from reimbursement on all other vehicles shall be deposited in a Special Depository Account in the Department of Administration which shall revert to the General Fund. Commuting, for purposes of this paragraph, does not include those individuals whose office is in their home, as determined by the Department of Administration, Division of Motor Fleet Management. Also, this paragraph does not apply to the following vehicles: (i) clearly marked police and fire vehicles, (ii) delivery trucks with seating only for the driver, (iii) flatbed trucks, (iv) cargo carriers with over a 14,000 pound capacity, (v) school and passenger buses with over 20 person capacities, (vi) ambulances, (vii) hearses, (viii) bucket trucks, (ix) cranes and derricks, (x) forklifts, (xi) cement mixers, (xii) dump trucks, (xiii) garbage trucks, (xiv) specialized utility repair trucks (except vans and pickup trucks), (xv) tractors, (xvi) unmarked law-enforcement vehicles that are used in undercover work and are operated by full-time, fully sworn law-enforcement officers whose primary duties include carrying a firearm, executing search warrants, and making arrests, and (xvii) any other vehicle exempted under Section 274(d) of the Internal Revenue Code of 1954, and Federal Internal Revenue Services regulations based thereon. The Department of Administration, Division of Motor Fleet Management, shall report quarterly to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office on individuals who use State-owned passenger motor vehicles, pickup trucks, or vans between their official work stations and their homes, who are not required to reimburse the State for these trips.

The Department of Administration shall revoke the assignment or require the Department owning the vehicle to revoke the assignment of a State-owned passenger motor vehicle, pick-up truck or van to any individual who:

I. Uses the vehicle for other than official business except in accordance with the commuting rules;

II. Fails to supply required reports to the Department of Administration, or supplies incomplete reports, or supplies reports in a form unacceptable to the Department of Administration and does not cure the deficiency within 30 days of receiving a request to do so;

III. Knowingly and willfully supplies false information to the Department of Administration on applications for permanent assignments, commuting reimbursement forms, or other required reports or forms;

IV. Does not personally sign all reports on forms submitted for vehicles permanently assigned to him and does not cure the deficiency within 30 days of receiving a request to do so;

V. Abuses the vehicle; or

VI. Violates other rules or policy promulgated by the Department of Administration not in conflict with this act.

A new requisition shall not be honored until the Secretary of the Department of Administration is assured that the violation for which a vehicle was previously revoked will not recur.

The Department of Administration, with the approval of the Governor, may delegate, or conditionally delegate, to the respective heads of agencies which own passenger motor vehicles or to which passenger motor vehicles are permanently assigned by the Department, the duty of enforcing all or part of the rules adopted by the Department of Administration pursuant to this subdivision 7a. The Department of Administration, with the approval of the Governor, may revoke this delegation of authority.

Prior to adopting rules under this paragraph, the Secretary of Administration may consult with the Advisory Budget Commission.

8. To adopt and administer rules for the control of all state-owned passenger motor vehicles and to require State agencies to keep all records and make all reports regarding motor vehicle use as the Secretary deems necessary.

9. To acquire motor vehicle liability insurance on all State-owned motor vehicles under the control of the Department.

10. To contract with the appropriate State prison authorities for the furnishing, upon such conditions as may be agreed upon from time to time between such State prison authorities and the Secretary, of prison labor for use in connection with the operation of a central motor pool and related activities.

11. To report annually to the General Assembly on any rules adopted, amended or repealed under paragraphs 3, 7, or 7a of this subdivision."

Requested by: Representatives Bowman, N.J. Crawford

––-MOTOR FLEET MANAGEMENT/RETURN OF GENERAL FUND INVESTMENT

Sec. 23. On April 1, 1992, the Department of Administration shall credit to the Office of State Treasurer, Nontax Revenues, the sum of $2,000,000 and on June 15, 1992, the sum of $1,500,000, unless the Department chooses to make a total payment of $3,500,000 on April 1, 1992. These funds represent a partial return to the General Fund of its investment of $5,100,000 in capital funds for the upgrading of the State motor fleet appropriated in Section 57 of Chapter 757 of the 1985 Session Laws.

PART IX.––-DEPARTMENT OF STATE TREASURER

Requested by: Representatives Ethridge, H. Hunter

––-LOCAL GOVERNMENTS FUND COST OF LOCAL GOVERNMENT COMMISSION

Sec. 24. G.S. 105-213 reads as rewritten:

"§ 105-213. Appropriation to counties and municipalities; use of appropriation.

(a) There is annually appropriated from the General Fund to counties and municipalities the amount of revenue collected under this Article during the preceding fiscal year, plus an amount equal to forty percent (40%) of the tax collected on accounts receivable during the preceding fiscal year and less an amount equal to the costs during the preceding fiscal year of:

(1) Refunds made during the fiscal year of taxes levied under this Article.

(2) The Department of Revenue to collect and administer the taxes levied under this Article.

(3) The Department of Revenue in performing the duties imposed by Article 15 of this Chapter.

(4) The Property Tax Commission.

(5) The Institute of Government in operating a training program in property tax appraisal and assessment.

(6) The personnel and operations provided by the Department of State Treasurer for the Local Government Commission.

The appropriation shall be distributed by August 30 of each year. The appropriation shall be included in the Current Operations Appropriations Act.

To distribute the appropriation, the Secretary of Revenue shall keep a separate record by counties of the taxes collected under this Article and shall certify to the State Controller and to the State Treasurer the amount to be distributed to each county and municipality in the State. The State Controller shall then issue a warrant on the State Treasurer to each county and municipality in the amount certified.

The Secretary shall allocate the amount appropriated under this Article to the counties according to the county in which the taxes were collected. The Secretary shall then increase the amount allocable to each county by a sum equal to forty percent (40%) of the amount of tax on accounts receivable allocated to the county on the basis of collections. The amounts so allocated to each county shall in turn be divided between the county and the municipalities in the county in proportion to the total amount of ad valorem taxes levied by each during the fiscal year preceding the distribution. For the purpose of computing the distribution of the intangibles tax to any county and the municipalities located in the county for any year with respect to which the property valuation of a public service company is the subject of an appeal pursuant to the provisions of the Machinery Act, or to applicable provisions of federal law, and the Department of Revenue is restrained by operation of law or by a court of competent jurisdiction from certifying such valuation to the county and municipalities therein, the Department shall use the last property valuation of such public service company which has been so certified in order to determine the ad valorem tax levies applicable to such public service company in the county and the municipalities therein.

The chairman of each board of county commissioners and the mayor of each municipality shall report to the Secretary of Revenue information requested by the Secretary to enable the Secretary to distribute the amount appropriated by this section. If a county or municipality fails to make a requested report within the time allowed, the Secretary may disregard the county or municipality in distributing the amount appropriated by this section. The amount distributed to each county and municipality shall be used by the county or municipality in proportion to property tax levies made by it for the various funds and activities of the county or municipality, unless the county or municipality has pledged the amount to be distributed to it under this section in payment of a loan agreement with the North Carolina Solid Waste Management Capital Projects Financing Agency. A county or municipality that has pledged amounts distributed under this section in payment of a loan agreement with the Agency may apply the amount the loan agreement requires.

(b) For purposes of this section, the term 'municipality' includes any urban service district defined by the governing board of a consolidated city-county, and the amounts due thereby shall be distributed to the government of the consolidated city-county."

PART X.––-DEPARTMENT OF REVENUE

Requested by: Representatives Bowman, N.J. Crawford

––-NO GAS TAX ON GAS FOR STATE VEHICLES

Sec. 25. (a) Article 36 of Chapter 105 of the General Statutes is amended by adding a new section to read:

"§ 105-449A. Exemption of motor fuel used in State vehicles.

(a) Motor fuel purchased by the State for use in State-owned motor vehicles for State business is exempt from the excise tax levied by this Article if an invoice for the fuel stating the agency to whom the fuel was delivered, the price per gallon of the fuel excluding the tax, and the kind and quantity of fuel sold is furnished to the Secretary of Revenue. A person who holds a State contract for the sale of motor fuel to be used in State-owned motor vehicles for State business shall invoice motor fuel sold to the State for this purpose at the prevailing contract price, excluding the tax, and a person who does not hold a State contract for the sale of motor fuel to be used in State-owned motor vehicles for State business but who sells motor fuel for this purpose in quantities not sufficient to require a State contract shall invoice motor fuel sold to the State at the lowest informal bid price, excluding the tax.

(b) A person authorized to sell motor fuel to the State who paid the tax levied by this Article on fuel sold to the State for use in State-owned motor vehicles for State business may obtain a refund of the tax paid on the fuel upon filing an application for refund with the Secretary of Revenue and attaching an invoice, containing the information required in subsection (a) of this section, to the refund application. Upon receipt of a proper application and invoice, the Secretary shall refund the amount of tax paid.

(c) A person who makes a false invoice or application for refund under this section shall be guilty of a misdemeanor, punishable by a fine of up to five hundred dollars ($500.00), imprisonment for up to two years, or both."

(b) This section becomes effective July 1, 1991, and applies to sales made on or after that date.

PART XI.––-OFFICE OF THE GOVERNOR

––- COMPUTER RESERVE FUND

Sec. 26. (a) The funds appropriated in this Title to the Office of State Budget and Management for a Computer Reserve shall be used by the Office of State Budget and Management to address critical computer needs when no alternative source of funds is available. Critical computer needs for which Computer Reserve funds may be used pursuant to this section are defined as those needs that involve one or more of the following factors:

(1) An explicit provision in federal or State law or rule, or a federal grant-in-aid condition, that can only be satisfied through investment in additional data processing equipment or software;

(2) A failure or breakdown of existing equipment that substantially degrades current operations, when repair of existing equipment is uneconomical;

(3) Research or instructional activity of an ongoing nature that serves a vital public interest whose continuation depends upon the acquisition of data processing equipment or software; and

(4) A direct relationship between the proposed acquisition to ongoing maintenance or continued operation of existing minicomputers, minicomputer networks, mainframes, or mainframe networks, which renders the proposed acquisition essential to the existing system.

The Office of State Budget and Management shall designate $3,200,000 of this reserve for each fiscal year for the critical computer needs of The University of North Carolina and its constituent institutions.

The Office of State Budget and Management shall submit a report showing disbursements from or encumbrances upon the Computer Reserve and the reasons for the disbursement or encumbrance to the Joint Legislative Commission on Governmental Operations, the Fiscal Research Division, and the Information Technology Commission at the conclusion of each quarter of each fiscal year of the 1991-93 fiscal biennium.

At the end of each fiscal year, unexpended funds in the Computer Reserve shall revert to the General Fund.

(b) Notwithstanding the provisions of G.S. 143-16.3, and G.S. 143-23(a1), State departments may use funds from any source available to them and may transfer funds from other line items in their budgets to purchase additional data processing equipment and software.

Requested by: Representatives Nesbitt, Diamont, McAllister

––-IDENTIFICATION OF POSITIONS, PROGRAMS, AND SALARY LINE ITEMS TO BE REDUCED

Sec. 27. (a) To effect the reductions in departmental budgets required by this Title for the 1991-93 fiscal biennium, the Office of State Budget and Management shall freeze all new hires for these departments on July 1, 1991, allow the departments 30 days to identify the positions, programs, and salary line items affected, and transfer the reductions to those line items from which positions will be eliminated.

(b) The positions identified pursuant to subsection (a) of this section shall remain vacant for the 1991-92 fiscal year and shall not be reported in the base budget requested by the departments for the 1992-93 fiscal year, shall remain as permanent cuts, and shall be abolished.

(c) The departments shall report, by August 15, 1991, to the appropriate House and Senate Appropriations subcommittees, to the chairmen of the House and Senate Appropriations Committees, and to the Joint Legislative Commission on Governmental Operations the particular line items in their departmental budgets that reflect the reductions required by this section.

(d) No positions in the Sickle Cell Activities of the Sickle Cell and Genetic Counseling Program of the Department of Environment, Health, and Natural Resources shall be subject to this section.

Requested by: Representatives Diamont, Nesbitt

––-RESERVE FOR LOCAL TAX REIMBURSEMENTS

Sec. 28. (a) There is created in the Office of State Budget and Management a special reserve to be known as the Local Government Tax Reimbursement Reserve. Funds in the reserve shall be distributed to local governments as provided by statute. Of the funds appropriated from the General Fund to the Local Government Tax Reimbursement Reserve the sum of $237,779,454 for the 1991-92 fiscal year and the sum of $237,779,454 for the 1992-93 fiscal year shall be used for reimbursements as provided in G.S. 105-164.44C, 105-213, 105-213.1, 105-275.1, 105-277A, and 105-277.1A.

(b) There is created in the Office of State Budget and Management a special reserve to be known as the Local Government Tax Sharing Reserve. Funds in the reserve shall be distributed to local governments as provided by statute. Of the funds appropriated from the General Fund to the Local Government Tax Sharing Reserve the sum of $236,826,720 for the 1991-92 fiscal year and the sum of $236,826,720 for the 1992-93 fiscal year shall be used to be distributed as provided in G.S. 105-113.82, 105-116(d), 105-120(c), and 105-213.

"§ 105-113.82. Appropriation of amount equal to part of beer and wine taxes.

(a) Amount, Method. – An amount equal to the following percentages of the net amount of excise taxes collected, during the period that ~~begins the preceding October 1 and ends September 30,~~ began October 1, 1989, and ended September 30, 1990, on the sale of malt beverages and wine, less the amount of the net proceeds credited to the Department of Agriculture under G.S 105-113.81A, is annually appropriated from the General Fund to the counties and cities in which the retail sale of these beverages is authorized:

(1) Of the tax on malt beverages levied under G.S. 105-113.80(a), twenty-three and three-fourths percent (23 3/4%);

(2) Of the tax on unfortified wine levied under G.S. 105-113.80(b), sixty-two percent (62%); and

(3) Of the tax on fortified wine levied under G.S. 105-113.80(b), twenty-two percent (22%).

If malt beverages, unfortified wine, or fortified wine may be licensed to be sold at retail in both a county and a city located in the county, both the county and city shall receive a portion of the amount appropriated, that portion to be determined on the basis of population. If one of these beverages may be licensed to be sold at retail in a city located in a county in which the sale of the beverage is otherwise prohibited, only the city shall receive a portion of the amount appropriated, that portion to be determined on the basis of population. The amount of the appropriation to be distributed under subdivisions (1), (2), and (3) shall be computed separately.

(b) Reduction in Appropriation. – Where the sale of malt beverages, unfortified wine, or fortified wine is prohibited in a defined area of a city or county in which the sale of the beverage is authorized, the amount that would otherwise be appropriated to the city or county on the basis of population under subsection (a) shall be reduced in the same ratio that the area of the defined area bears to the total area of the city or county, unless the defined area is a city. If the defined area in a county is a city, the reduction in the amount that would otherwise be appropriated to the county under subsection (a) shall be based on population instead of area.

(c) Exception. – Notwithstanding subsection (a), in a county in which ABC stores have been established by petition, the amount appropriated shall be distributed as though the entire county had approved the retail sale of a beverage whose retail sale is authorized in part of the county.

(d) Time. – The appropriation shall be distributed to cities and counties within 60 days after September 30 of each year.

(e) Population Estimates. – To determine the population of a city or county for purposes of the distribution required by this section, the Secretary shall use the most recent annual estimate of population certified by the State Budget Officer.

(f) City Defined. – As used in this section, the term 'city' means a city as defined in G.S. 153A-1(1) or an urban service district defined by the governing body of a consolidated city-county.

(g) Use of Funds. – Funds appropriated to a county or city under this section may be used for any public purpose.

(h) Act. – The appropriation made by this section shall be included in the Current Operations Appropriations Act."

(d) G.S. 105-116(d) reads as rewritten:

"(d) Appropriation. There is annually appropriated from the General Fund to each municipality an amount that equals three and nine hundredths percent (3.09%) of the taxable gross receipts derived, from ~~April 1 of the preceding fiscal year to the following March 31,~~ April 1, 1990, to March 31, 1991, by an electric power company and a natural gas company from sales within the municipality of the commodities and services described in subsection (a). The Secretary of Revenue shall transfer the amount appropriated to a municipality in quarterly installments on or before September 15, December 15, March 15, and June 15 ~~based on~~ in proportion to the taxable gross receipts derived within the municipality during the preceding calendar quarter. If a company's report does not state the company's taxable gross receipts derived within a municipality, the Secretary of Revenue shall determine a practical method of allocating part of the company's taxable gross receipts to the municipality. Before transferring the amount appropriated by this subsection, the Secretary of Revenue shall certify the amount to be transferred distributed to the State Controller. The appropriation made by this subsection shall be included in the Current Operations Appropriations Act.

As used in this subsection, the term 'municipality' includes an urban service district defined by the governing board of a consolidated city-county. The amount due an urban service district shall be distributed to the governing board of the consolidated city-county."

(e) G.S. 105-120(c) reads as rewritten:

"(c) Appropriation. There is annually appropriated from the General Fund to each municipality an amount that equals three and nine hundredths percent (3.09%) of the taxable gross receipts derived, from ~~April 1 of the preceding fiscal year to the following March 31,~~ April 1, 1990, to March 31, 1991, from local telecommunications service provided within the municipality. The Secretary of Revenue shall transfer the amount appropriated to a municipality in quarterly installments on or before September 15, December 15, March 15, and June 15 ~~based on~~ in proportion to the taxable gross receipts derived within the municipality during the preceding calendar quarter. If a company's report does not state the company's taxable gross receipts derived within a municipality, the Secretary of Revenue shall determine a practical method of allocating part of the company's taxable gross receipts to the municipality. Before transferring the amount appropriated by this subsection, the Secretary of Revenue shall certify the amount to be transferred to the State Controller. The appropriation made by this subsection shall be included in the Current Operations Appropriations Act.

(f) G.S. 105-164.44C reads as rewritten:

"§ 105-164.44C. Reimbursement for sales taxes on food stamp foods and supplemental foods.

~~As soon as practicable after July 1 of each year, the Secretary shall determine from available information~~ There is annually appropriated to each county and the cities in the county an amount equal to the amount of local sales taxes that would have been collected in ~~each~~ the county during the ~~preceding~~ 1989-90 fiscal year on foods purchased with food stamp coupons or supplemental food instruments in the county, had these foods not been exempt from tax under G.S. 105-164.13(38). The Secretary shall ~~then~~ distribute the amounts determined to be due each county between the county and the cities located in the county in accordance with the method by which local sales and use taxes are distributed in that county. In order to pay for the reimbursement under this section and the cost to the Department of Revenue for administering the reimbursement, the Secretary of Revenue shall draw from the Local Government Tax Reimbursement Reserve an amount equal to the amount of the reimbursement and the cost of administration."

(g) G.S. 105-198 reads as rewritten:

"§ 105-198. Intangible personal property.

The intangible personal properties enumerated and defined in this Article are classified under authority of Section 2(2), Article V of the North Carolina Constitution. The taxes are levied for the purposes stated in this ~~Article.~~ Subchapter."

(h) G.S. 105-213 reads as rewritten:

"§ 105-213. Appropriation to counties and municipalities; use of appropriation.

(a) There is annually appropriated from the General Fund to counties and municipalities the net amount of revenue collected under this Article during the ~~preceding~~ 1989-90 fiscal year, plus an amount equal to forty percent (40%) of the tax collected on accounts receivable during the ~~preceding~~ 1989-90 fiscal year and less an amount equal to the costs during the preceding fiscal year of:

(1) Refunds made during the fiscal year of taxes levied under this Article.

(2) The Department of Revenue to collect and administer the taxes levied under this Article.

(3) The Department of Revenue in performing the duties imposed by Article 15 of this Chapter.

(4) The Property Tax Commission.

(5) The Institute of Government in operating a training program in property tax appraisal and assessment.

The appropriation shall be distributed by August 30 of each year. The appropriation shall be included in the Current Operations Appropriations Act.

The appropriation shall be allocated among the counties in proportion to the amount of taxes collected under this Article in each county during the preceding fiscal year. ~~To distribute the appropriation, the~~ The Secretary of Revenue shall keep a separate record by counties of the taxes collected under this Article and shall certify to the State Controller and to the State Treasurer the amount to be distributed to each county and municipality in the State. The State Controller shall then issue a warrant on the State Treasurer to each county and municipality in the amount certified. Article. The Secretary shall allocate the amount appropriated under this ~~Article~~ section to the counties according to the county in which the taxes were collected. The Secretary shall then increase the amount allocable to each county by a sum equal to forty percent (40%) of the amount of tax on accounts receivable allocated to the county on the basis of collections. The amounts so allocated to each county shall in turn be ~~divided~~ allocated between the county and the municipalities in the county in proportion to the total amount of ad valorem taxes levied by each during the fiscal year preceding the distribution. After making these allocations, the Secretary of Revenue shall certify to the State Controller and to the State Treasurer the amount to be distributed to each county and municipality in the State. The State Controller shall then issue a warrant on the State Treasurer to each county and municipality in the amount certified. The amount based on forty percent (40%) of the tax collected on accounts receivable shall be drawn from the Local Government Tax Reimbursement Reserve and the amount based on the net amount of revenue collected under this Article shall be drawn from the Local Government Tax Sharing Reserve.

For the purpose of computing the distribution of the intangibles tax to any county and the municipalities located in the county for any year with respect to which the property valuation of a public service company is the subject of an appeal pursuant to the provisions of the Machinery Act, or to applicable provisions of federal law, and the Department of Revenue is restrained by operation of law or by a court of competent jurisdiction from certifying such valuation to the county and municipalities therein, the Department shall use the last property valuation of such public service company which has been so certified in order to determine the ad valorem tax levies applicable to such public service company in the county and the municipalities therein.

The chairman of each board of county commissioners and the mayor of each municipality shall report to the Secretary of Revenue information requested by the Secretary to enable the Secretary to ~~distribute~~ allocate the amount appropriated by this section. If a county or municipality fails to make a requested report within the time allowed, the Secretary may disregard the county or municipality in ~~distributing~~ allocating the amount appropriated by this section. The amount distributed to each county and municipality shall be used by the county or municipality in proportion to property tax levies made by it for the various funds and activities of the county or municipality, unless the county or municipality has pledged the amount to be distributed to it under this section in payment of a loan agreement with the North Carolina Solid Waste Management Capital Projects Financing Agency. A county or municipality that has pledged amounts distributed under this section in payment of a loan agreement with the Agency may apply the amount the loan agreement requires.

(i) G.S. 105-213.1 reads as rewritten:

"§ 105-213.1. Additional appropriation to counties and municipalities.

(a) Appropriation. – As soon as practicable after July 1 of 1986, the Secretary of Revenue shall allocate for distribution to each county and the municipalities located in the county the amount allocated to that county from taxes levied under G.S. 105-199, 105-200, and 105-205 for the last taxable year in which these taxes were levied, plus or minus a sum that equals the product of this amount and the percentage by which State disposable personal income has increased or decreased during the most recent 12-month period for which State personal income data has been compiled by the Bureau of Economic Analysis of the United States Department of Commerce.

Thereafter, by August 30 of ~~each year,~~ 1987, 1988, 1989, and 1990, the Secretary shall allocate to each county the amount of funds allocated to the county under this section the preceding year, plus or minus a sum that equals the product of this amount and the percentage by which State disposable personal income has increased or decreased during the most recent 12-month period for which State personal income data has been compiled by the Bureau of Economic Analysis of the United States Department of Commerce.

Thereafter, by August 30 of each year, the Secretary shall allocate to each county the amount of funds allocated to the county under this section in 1990.

Amounts allocated to a county under this section shall in turn be divided and distributed between the county and the municipalities located in the county in accordance with the method of allocating intangible tax revenue between a county and the municipalities located in the county provided in G.S. 105-213.

(b) Restrictions on Use. – Amounts distributed to a county or a municipality under this section are subject to the same restrictions as amounts distributed under G.S. 105-213.

(d) Source. – Funds distributed under this section shall be drawn from the Local Government Tax Reimbursement Reserve."

(j) G.S. 105-277A(b) reads as rewritten:

"(b) First Per Capita Distribution. – As soon as practicable after January 1 of 1989, the Secretary shall distribute to each taxing unit the unit's per capita share of the sum of fifteen million seven hundred forty-five thousand dollars ($15,745,000). Thereafter, as soon as practicable after January 1 of ~~each year~~ 1990 and 1991, the Secretary shall distribute to each taxing unit the unit's per capita share of an amount equal to the sum distributed to all taxing units the previous year under this subsection plus or minus the product of the sum distributed the previous year and the percentage by which State personal income has increased or decreased during the most recent 12-month period for which State personal income data has been compiled by the Bureau of Economic Analysis of the United States Department of Commerce.

Thereafter, as soon as practicable after January 1 of each year the Secretary shall distribute to each taxing unit the unit's per capita share of the sum that this subsection provided was to be distributed to all taxing units in 1991.

To make the per capita distributions required by this subsection, the Secretary shall first allocate the sum to be distributed among the counties on a per capita basis. The Secretary shall then compute a per capita distributable amount for each county by dividing the amount allocated to a county by the total population of the county, plus the population of any incorporated towns and cities located in the county. Each taxing unit in a county, including the county itself, shall receive the product of the population of the taxing unit and the per capita distributable amount for that county.

A city or county that receives funds under this subsection and that collects taxes for another taxing unit shall distribute part of the taxes received by it to the taxing unit for which it collects tax. The distribution shall be made on the basis of the proportionate amount of ad valorem taxes levied, for the most recent fiscal year beginning July 1, by the city or county and by all the taxing units for which the city or county collects tax. This distribution shall be made as soon as practicable after a city or county receives funds from the State under this section."

(k) G.S. 105-277A(f) reads as rewritten:

"(f) Source of Funds. – ~~The Secretary of Revenue shall~~ To pay for the distribution required by this section and the cost of making the ~~distribution as follows:~~

~~(1)~~ For the distribution made in 1989, the Secretary shall draw an amount equal to the amount distributed and the cost of making the distribution first from the Inventory Tax Reimbursement Fund created in Section 15.1 of the School Facilities Finance Act of 1987, until it is exhausted, and then the remainder of that amount from collections received by the Department under Division I of Article 4 of this Chapter.

~~(2)~~ ~~For distributions made in subsequent years,~~

distribution, the Secretary shall draw from the Local Government Tax Reimbursement Reserve ~~for the distribution required by this section~~ an amount equal to the amount distributed and the cost of making the distribution."

(l) G.S. 105-277.1A reads as rewritten:

"§ 105-277.1A. Property classified for taxation at reduced valuation; duties of tax collectors; reimbursement of localities for portion of tax lost.

(a) On September ~~1 of each year,~~ 1, 1990, the tax collector of each county and the tax collector of each city shall furnish to the Secretary of Revenue a list containing the name and address of each person who has qualified in that year for the exemption provided in G.S. 105-277.1. The list shall also contain for each name the total amount of property exempted, the tax rate the property is subject to, and the product obtained by multiplying those two numbers by each other. The lists shall be accompanied by an affidavit attesting to the accuracy of the list, and shall all be on a form prescribed by the Secretary of Revenue.

(b) In addition to the list required by subsection (a) of this section, the county or city may provide a supplemental list on December 1.

(d) ~~After receiving a certified list under subsections (a) through (c) of this section,~~ Before May 31, 1991, the Secretary of Revenue ~~shall, within 60 days, pay~~ shall distribute to the county or city fifty percent (50%) of the total for the entire list of the product obtained by multiplying the tax exemption for each taxpayer times the applicable tax rate. Each year thereafter, on or before May 31, the Secretary of Revenue shall pay to each county and city that was entitled to receive a distribution under this section in 1991 the amount it was entitled to receive in 1991.

(e) Any funds received by any county or city pursuant to this section because the county or city was collecting taxes for another unit of government or special district shall be credited to the funds of that other unit or district in accordance with regulations issued by the Local Government Commission.

(f) In order to pay for the reimbursement under this section and the cost to the Department of Revenue ~~for~~ of administering the reimbursement, the Secretary of Revenue shall draw from the Local Government Tax Reimbursement Reserve an amount equal to the reimbursement and the cost of administration."

(m) This section becomes effective July 1, 1991.

PART XII.––-OFFICE OF THE STATE CONTROLLER

Requested by: Representatives Bowman, N.J. Crawford

––-STATE INFORMATION PROCESSING SYSTEMS' AMENDED RATE SCHEDULE

Sec. 29. The Office of the State Controller shall adopt an amended rate schedule that will reduce rates for the 1991-93 fiscal biennium to agencies for data processing and data processing related services by five percent (5%) below what the same agencies were charged for the 1990-91 fiscal year.

The rates set by this amended rate schedule shall not be increased during the 1991-93 fiscal biennium.

PART XIII.––-GENERAL ASSEMBLY

Requested by: Representatives Bowman, N. J. Crawford

––-STUDY COMMISSION ON COMPUTER SERVICES

Sec. 30. There is created a Computer Services Study Commission, an independent commission, to study the organization, management, and cost of State computer services. The Commission shall consist of twelve members. The Speaker of the House of Representatives shall appoint six members, four who shall be members of the House of Representatives and two who shall have a background in and familiarity with information systems or data communications. The President Pro Tempore of the Senate shall appoint six members, four who shall be members of the Senate and two who shall have a background in and familiarity with information systems or data communications. Initial appointments shall be made within 30 days following adjournment of the 1991 Session of the General Assembly for a period of more than 10 days. Members of the Study Commission shall not be employed by, provide consulting services to, or serve on the board of directors or other governing body of any information systems, computer hardware, or telecommunications enterprise currently doing business with the State of North Carolina. Vacancies shall be filled by the official who made the initial appointment using the same criteria as provided by this subsection.

(b) The President Pro Tempore of the Senate and the Speaker of the House of Representatives shall each appoint a cochair of the Commission from their appointees. The cochairs shall call the first meeting and preside at alternate meetings.

(c) The Study Commission on Computer Services shall examine the functions, powers, and effectiveness of the Information Technology Commission, the organization and operation of the State Information Processing Service, the processes by which long term plans for computer applications are devised and approved, the policies and practices applied to hardware and software procurement, and such other issues as may, in the judgment of the Commission, relate to the cost of computer usage in State government.

(d) Subject to the approval of the Legislative Services Commission, the professional and clerical staff of the Legislative Services Office shall be available to the Study Commission. Upon request of the Study Commission or its staff, all State departments and agencies shall furnish to the Study Commission any information in their possession or available to them. The Study Commission may acquire by contract or purchase such other expertise or information as may be necessary to complete its report.

(e) Members of the Study Commission who are also members of the General Assembly shall be paid subsistence and travel expenses at the rate set forth in G.S. 120-3.1. Members of the Study Commission who are officials or employees of the State shall receive travel allowances at the rate set forth in G.S. 138-6. All other members of the Study Commission shall be paid per diem and allowances at the rates set forth in G.S. 138-5.

(f) Of the funds appropriated from the General Fund to the General Assembly, the sum of $10,000 for the 1991-92 fiscal year and the sum of $20,000 for the 1992-93 fiscal year shall be allocated for this study.

(g) The Study Commission on Computer Services shall report its findings and recommendations to the General Assembly upon the convening of the 1993 Session.

PART XIV.––-PUBLIC SCHOOLS

Requested by: Representatives Payne, Fussell

––-CONSOLIDATE SCHOOL ADMINISTRATOR ALLOTMENTS

Sec. 31. The State Board of Education shall consolidate the allotment of assistant and associate superintendents and supervisors and shall convert the allotment from a position allotment to a dollar allotment.

Requested by: Representatives Payne, Fussell

––-DRIVER TRAINING PROGRAM

Sec. 32. (a) G.S. 20-88.1 reads as rewritten:

"§ 20-88.1. Driver ~~training and safety~~ education.

(a) In accordance with criteria and standards approved by the State Board of Education, the State Superintendent of Public Instruction shall organize and administer a program of driver education to be offered at the public high schools of this State for all ~~persons of provisional license age. This program shall be made available to all~~ physically and mentally qualified persons ~~of provisional license age, including public school students, nonpublic school students and out-of-school youths under 18 years of age.~~ who (i) are older than 14 years and six months, (ii) are approved by the principal of the school, pursuant to rules adopted by the State Board of Education, (iii) are enrolled in a public or private high school within the State, and (iv) have not previously enrolled in the program. The State Board of Education shall use for such purpose all funds appropriated to it for said purpose, and may use all other funds that become available for its use for said purpose. The ~~drivers'~~ driver education program established pursuant to this section shall include instructions on the rights and privileges of the handicapped and the signs and symbols used to assist the handicapped relative to motor vehicles, including the 'international symbol of accessibility' and other symbols and devices as provided in Article 2A of this Chapter. In addition, this program shall include at least six hours of instruction on the offense of driving while impaired and related subjects.

(b) The State Board of Education shall adopt a salary ~~schedule~~ range for ~~Driver's Education Training Instructors.~~ driver education instructors who are public school employees and who do not hold teacher certificates.

Driver education instructors who are public school employees and who hold teacher certificates shall be paid on the teacher salary schedule. A day of employment for driver education instructors who hold teacher certificates shall be the same number of hours required of all regular classroom teachers as established by the local board of education. No educational degree requirement may be a criterion used in setting salaries. The State Board of Education shall report the salary schedule and criteria developed for a drivers' education program to the 1983 General Assembly, Second Session 1984.

(b1) The State Board of Education shall adopt rules to permit local boards of education to enter contracts with public or private entities to provide a program of driver education at public high schools. All driver education instructors shall meet the requirements established by the State Board of Education; provided, however, driver education instructors shall not be required to hold teacher certificates.

(c) All expenses incurred by the State in carrying out the provisions of this section shall be paid out of the ~~Highway Fund~~ General Fund."

(b) G.S. 115C-215 reads as rewritten:

"§ 115C-215. Instruction in driver training and safety education.

There shall be organized and administered under the general supervision of the Superintendent of Public Instruction a program of driver training and safety education in the public schools of this State, said courses to be noncredit courses taught by instructors ~~approved by the Department of Public Instruction.~~ who meet the requirements established by the State Board of Education. Instructors shall not be required to hold teacher certificates."

"§ 115C-216. Boards of education required to provide courses in operation of motor vehicles.

(a) Course of Training and Instruction Required in Public High Schools. – The State Board of Education and local boards of education are ~~hereby~~ required to provide as a part of the program of the public high schools in this State a course of training and instruction in the operation of motor vehicles and to make such courses available for all persons of provisional license age, including public school students, nonpublic school students and out-of- school youths under 18 years of age whose physical and mental qualifications meet license requirements, in conformance with course requirements and funds made available under the provisions of G.S. 20-88.1 or as hereinafter provided or both. vehicles, in accordance with G.S. 20-88.1.

(b) Inclusion of Expense in Budget. – The local boards of education of every local school administrative unit are hereby authorized to include as an item of instructional service and as a part of the current expense fund of the budget of the several high schools under their supervision, the expense necessary to install and maintain such a course of training and instructing eligible persons in such schools in the operation of motor vehicles.

~~(c)~~ Appropriations. – The boards of county commissioners in the several counties of the State and the governing bodies of all municipalities having power to appropriate and raise money by taxation and otherwise are hereby authorized to appropriate funds necessary to pay the expenses necessary to install and maintain in any public high school under their supervision a course of training and instruction for eligible students in such schools in the operation of motor vehicles, whether or not the county board of education or administrative unit shall have included the cost of the same in its budget request when submitted for approval.

~~(d)~~ How Moneys Appropriated May Be Provided. – The board of county commissioners and the governing bodies of all municipalities having power to appropriate money and to levy taxes and raise money are hereby authorized to allocate and expend the moneys appropriated pursuant to this section or other acts of the General Assembly and the moneys provided by taxation, by sale or rental of any real or personal property owned by such county or other taxing unit, or by use of any surplus funds on hand or acquired from any source, for the purpose of funding any such course of instruction and training in any public high school. The special approval of the General Assembly is hereby given for the levying of taxes for such purpose and for providing funds for such purpose by the other means herein mentioned.

~~(e)~~ ~~Content of Course; What Persons Eligible. – The words "a course of training and instruction for eligible persons in the operation of motor vehicles~~" as applied to this section means such course of instruction in the operation of motor vehicles prescribed or approved by the Department of Public Instruction, provided that every such course shall include actual operation of motor vehicles by the persons eligible for same, under the supervision of a qualified instructor. Only such persons older than 14 years and six months, who are approved by the principal of the school, shall be eligible for such course of instruction, subject to rules and regulations prescribed by the Department of Public Instruction.

~~(f)~~ Acts Ratified and Confirmed. – The acts of all boards of county commissioners and the governing bodies of all municipalities, the acts of all local boards of education, and the acts of the State Board of Education heretofore done in connection with providing courses of training and instruction in the operation of motor vehicles in this State, including the appropriation and expenditure of funds for such purpose, are hereby ratified and confirmed."

(d) The State Board of Education shall convert the allotments of funds for months of employment for driver education instructors and for loan car fees to dollar allotments.

Requested by: Representatives Payne, Fussell

––-DROPOUT PREVENTION/IN-SCHOOL SUSPENSION

Sec. 33. Of the funds appropriated to the Department of Public Education for aid to local school administrative units for the Dropout Prevention/In-School Suspension Program, the sum of $200,000 for each fiscal year of the 1991-93 fiscal biennium may be used to fund eight pilot public/private educational compacts to bring together on an ongoing basis representatives from public education, community colleges, higher education, and business and industry to determine how to improve attendance, prevent dropping out of school, increase academic performance, and increase participation in higher education and the work force by at-risk students. The funds may also be used to fund eight parental involvement pilot programs, and to provide for operating costs, workshops, and committee meetings for the State Department of Public Instruction's dropout prevention staff.

The State Board of Education may adopt rules governing the use of these funds. These funds are to be part of the continuation budget in the next fiscal biennium.

Requested by: Representatives Payne, Fussell

––-DROPOUT PREVENTION COORDINATORS

Sec. 34. Of the funds appropriated to the Department of Public Education for aid to local school administrative units for dropout prevention, the State Board of Education shall allocate to the Department of Public Instruction up to $225,000 for the 1991-92 fiscal year and up to $225,000 for the 1992-93 fiscal year for the three dropout prevention coordinators. The State Superintendent shall assign the dropout prevention coordinators to designated areas within the State and shall develop job descriptions for them. These funds are to be part of the continuation budget in the next biennium.

Requested by: Representatives Payne, Fussell

––-PROJECT TEACH FUNDS

Sec. 35. Of the funds appropriated to the Department of Public Education for the 1991-93 fiscal biennium for aid to local school administrative units, the State Board of Education shall allocate to the Department of Public Instruction $73,000 for the 1991-92 fiscal year and $73,000 for the 1992-93 fiscal year to be used to:

(1) Maintain the Project Teach Initiative in the Robeson, Pitt, Cumberland, Warren, Halifax, Guilford, Vance, Northampton, Anson and Bertie County Schools, and the Durham, High Point, and Greensboro City Schools.

(2) Expand the project in at least two school systems to focus on parents of students in the seventh grade so as to involve parents in the coaching and support of promising minority young people.

These funds are to be part of the continuation budget in the next fiscal biennium.

Requested by: Representatives Payne, Fussell

––-ADVANCED TRAINING FOR FOREIGN LANGUAGE TEACHERS

Sec. 36. Of the funds appropriated to the Department of Public Education for aid to local school administrative units, the State Board of Education may allocate to the Department of Public Instruction $300,000 each year of the 1991-93 biennium for two positions, support expenses, and workshops to provide intensive advanced training for teachers who teach foreign languages.

Requested by: Representatives J.W. Crawford, Hardaway, Hunter

––-CONTINUE MODEL TEACHER EDUCATION CONSORTIUM

Sec. 36.1. Of the funds appropriated to the Department of Public Education for the 1991-92 fiscal year for aid to local school administrative units, the State Board of Education shall use $150,000 for the 1991-92 fiscal year for the model teacher education consortium established in Section 72 of Chapter 752 of the 1989 Session Laws. Of these funds, up to $30,000 may be used for administrative purposes.

Requested by: Representatives Payne, Fussell

––-FUNDING FOR CITY SCHOOL SYSTEMS

Sec. 37. (a) If two or more local school administrative units are consolidated and merged into one unit, the allotments of the following positions shall not be less than those same allotments to the separate units for the first and second full fiscal years of the consolidation and merger and shall be used for the continuation of the positions and programs, except as specifically authorized by the State Board of Education: (i) superintendents, (ii) associate and assistant superintendents, (iii) supervisors, and (iv) maintenance supervisors.

(b) Effective July 1, 1991, Chapter 115C of the General Statutes is amended by adding a new section to read:

"§ 115C-68.1. Merger of units by the board of county commissioners.

(a) The board of county commissioners of a county in which two or more local school administrative units are located, but all are located wholly within the county, may adopt a plan for the consolidation and merger of the units into a single countywide unit.

The plan adopted under this subsection shall require that the county adopting the plan provide local funding per average daily membership to the resulting local school administrative unit for subsequent years of at least the highest level of any local school administrative unit in the county for the fiscal year before the merger.

(b) The boards of county commissioners of two counties in which one local school administrative unit is located in both counties may jointly adopt plans for each of their counties, including a plan of consolidation and merger for such unit that is located in more than one county. The results of such consolidation and merger shall be that there is only one county-wide local school administrative unit in each county, or that the entirety of the unit located within two counties is merged and consolidated with the county unit of one of the two counties. Such plans shall also merge and consolidate any other city school administrative unit located wholly within one of the two counties. Within the two county area, all the plans shall take effect on the same day.

The plans jointly adopted under this subsection shall require that the counties jointly adopting the plans provide local funding per average daily membership to the resulting local school administrative units for subsequent fiscal years of at least the highest level of any local school administrative unit in the counties for the fiscal year before the merger.

(c) The plans under this section shall be prepared and approved in accordance with G.S. 115C-67 as provided by general law, or G.S. 115C-68 as provided by general law, as applicable, except that the county and city boards of education shall not participate by preparing, entering into, submitting, or agreeing to a plan, and the plan shall not be contingent upon approval of the voters.

(d) For the purpose of this section, local funding per average daily membership means the budgeted local expense per average daily membership. The State Board of Education shall establish guidelines for the computation of this amount and the amount shall be set out in the plan for consolidation and merger.

(e) If the State Board of Education fails to approve a plan submitted to it under this section, such failure to approve does not preclude the approval of the plan by the General Assembly by local act."

"§ 115C-68.2. Merger of units by the local boards of education.

If a city board of education notifies the State Board of Education that it is dissolving itself, the State Board of Education shall adopt a plan of consolidation and merger of that city school administrative unit with the county school administrative unit in the county in which the city unit is located; provided, however, if a city school administrative unit located in more than one county notifies the State Board of Education that it is dissolving itself, the State Board shall adopt a plan that divides the city unit along the county line and consolidates and merges the part of the city unit in each county with the county unit in that county and the plans shall take effect on the same day. The plans shall be prepared and approved in accordance with G.S. 115C-67 as provided by general law, and G.S. 115C-68 as provided by general law, as applicable, except that the county and city boards of education and the boards of commissioners shall not participate by preparing, entering into, submitting, or agreeing to a plan, and the plan shall not be contingent upon approval by the voters."

(d) No liability for any supplemental school tax levied under local act or G.S. 115C-501 to G.S. 115C-511 that attached prior to the date on which a levy is discontinued pursuant to a plan for merger for local school administrative units under G.S. 115C-68.1 or G.S. 115C-68.2 is discharged as a result of the repeal, and no right to a refund of tax that accrued prior to the effective date on which a levy is discontinued may be denied as a result of the repeal.

This subsection becomes effective July 1, 1991.

Requested by: Representatives Payne, Fussell

––-PUPIL TRANSPORTATION PROGRAM IMPROVEMENTS

Sec. 38. The Department of Public Instruction shall implement the Pupil Transportation Program Improvements Implementation Projects authorized by Section 55 of Chapter 752 of the 1989 Session Laws. The Department of Public Instruction may use up to $400,000 of the funds appropriated for the 1991-92 fiscal year for aid to local school administrative units for pupil transportation in order to replace computer equipment located in the 100 county school bus garages and in the Department of Public Instruction, as required by the State Fleet Vehicle Management System, and for other purposes required for the implementation of the projects authorized by the 1989 Session.

The Department shall report to the Joint Legislative Commission on Governmental Operations in March of 1992 the implementation of the projects specified in this section.

Requested by: Representatives Diamont, Nesbitt

––-APPROPRIATION OF FUNDS FROM STATE LITERARY FUND

Sec. 39. There is appropriated from the State Literary Fund to the Department of Public Education the sum of $2,500,000 for the 1991-92 fiscal year for aid to local school administrative units.

PART XV.––-COMMUNITY COLLEGES

Requested by: Representatives Payne, Fussell

––-MAINTENANCE OF PLANT

Sec. 40. (a) Notwithstanding any provision of law to the contrary, any community college that has an out-of-county student head count served on the main campus of the college in excess of fifty percent (50%) of the total student head count as defined by the State Board of Community Colleges shall be provided funds for the purpose of "operations of plant". These funds shall not exceed eighty-five percent (85%) of the funds allocated to these colleges during the 1990-91 fiscal year for this purpose.

(b) This section becomes effective July 1, 1992.

Requested by: Representatives Payne, Fussell

––-BUDGET FLEXIBILITY

Sec. 41. The State Board of Community Colleges shall establish budget guidelines that grant to the individual institutions maximum budget flexibility to accomplish the budget reductions assigned to them by the State Board for the 1991-93 fiscal biennium. These guidelines shall allow transfers of all operating funds, except from literacy funds and the Human Resources Development Program, between line items and program areas. These guidelines shall also require that, to the extent possible, reductions shall be taken in administrative costs rather than from instructional costs.

The State Board is not required to make budget reduction allocations on a pro rata basis and may specify various programs for reduction.

The State Board shall require each college to submit a plan assuring a balanced educational program that meets statewide priorities.

The State Board shall report to the Regular 1992 Session of the 1991 General Assembly on these guidelines and on the implementation of these guidelines by each institution.

Requested by: Representatives Payne, Fussell

––-OPERATING APPROPRIATIONS/NOT USED FOR RECREATION EXTENSION

Sec. 42. Funds appropriated in the 1991-93 fiscal biennium to the Department of Community Colleges as operating expenses for allocation to the institutions comprising the Community College System shall not be used to support recreation extension courses. The financing of these courses by any institution shall be on a self-supporting basis, and membership hours produced from these activities shall not be counted when computing full-time equivalent students for use in budget-funding formulas at the State level.

Requested by: Representatives Payne, Fussell

––-FULL-TIME EQUIVALENT TEACHING POSITIONS/COMMUNITY COLLEGES

Sec. 43. For the purpose of determining the community college system-wide number of full-time equivalent (FTE) teaching positions each year, the total curriculum full-time equivalent student enrollment shall be divided by 21.63 for the 1991-92 fiscal year and by 21.44 for the 1992-93 fiscal year; the occupational extension full-time equivalent student enrollment shall be divided by 23 for the 1991-92 fiscal year and by 23 for the 1992-93 fiscal year.

Requested by: Representatives Payne, Fussell

––-TUITION/PUBLIC SCHOOL STUDENTS TAKING COMMUNITY COLLEGE COURSES

Sec. 44. G.S. 115D-5(b) reads as rewritten:

"(b) In order to make instruction as accessible as possible to all citizens, the teaching of curricular courses and of noncurricular extension courses at convenient locations away from institution campuses as well as on campuses is authorized and shall be encouraged. A pro rata portion of the established regular tuition rate charged a full-time student shall be charged a part-time student taking any curriculum course. In lieu of any tuition charge, the State Board of Community Colleges shall establish a uniform registration fee, or a schedule of uniform registration fees, to be charged students enrolling in extension courses for which instruction is financed primarily from State funds; provided, however, that the State Board of Community Colleges may provide by general and uniform regulations for waiver of tuition and registration fees for persons not enrolled in elementary or secondary schools taking courses leading to a high school diploma or equivalent certificate, for training courses for volunteer firemen, local fire department personnel, volunteer rescue and lifesaving department personnel, local rescue and lifesaving department personnel, Radio Emergency Associated Citizens Team (REACT) members when the REACT team is under contract to a county as an emergency response agency, local law-enforcement officers, patients in State alcoholic rehabilitation centers, all full-time custodial employees of the Department of Correction, employees of the Department of Correction's Division of Adult Probation and Parole and employees of the Division of Youth Services of the Department of Human Resources required to be certified pursuant to Chapter 17C of the General Statutes and the rules of the Criminal Justice and Training Standards Commission, trainees enrolled in courses conducted under the New and Expanding Industry Program, clients of sheltered workshops, clients of adult developmental activity programs, students in Human Resources Development Programs, juveniles of any age committed to the Division of Youth Services of the Department of Human Resources by a court of competent jurisdiction, and prison inmates. Provided further, tuition shall be waived for senior citizens attending institutions operating pursuant to this Chapter as set forth in Chapter 115B of the General Statutes, Tuition Waiver for Senior Citizens. Provided further, tuition shall also be waived for all courses taken by high school students at community colleges in accordance with G.S. 115D-20(4) and this section."

Requested by: Representatives Payne, Fussell

––-BOOKS AND EQUIPMENT APPROPRIATIONS/REVERT AFTER ONE YEAR

Sec. 45. Appropriations to the Department of Community Colleges for equipment and library books are made for each year of the fiscal biennium. All unencumbered appropriations shall revert to the General Fund 12 months after the close of each fiscal year for which they were appropriated. Encumbered balances outstanding at the end of each period shall be handled in accordance with existing State Budget policies. The Department shall be able to identify to the Office of State Budget and Management which appropriations will revert at the end of the 12 months after the close of each fiscal year.

Requested by: Representatives Payne, Fussell

––-" TECH PREP" IMPLEMENTATION

Sec. 46. Of the funds available to the Department of Public Education for vocational education, $50,000 for the 1991-92 fiscal year and $50,000 for the 1992-93 fiscal year, shall be allocated to the North Carolina Tech Prep Leadership Development Center at Richmond Community College for assistance to local education agencies and community colleges in planning and implementing "Tech Prep" across the State. The Department of Community Colleges shall allocate $50,000 each year from funds available to it for the 1991-92 fiscal year and for the 1992-93 fiscal year for the North Carolina "Tech Prep" Leadership Development Center at Richmond Community College.

Requested by: Representatives Payne, Fussell

––-ASSISTANCE TO HOSPITAL NURSING/FUND DISTRIBUTION

Sec. 47. Funds appropriated in this Title to the Department of Community Colleges to provide financial assistance to hospital programs of nursing education leading to diplomas in nursing that are fully accredited by the North Carolina Board of Nursing and operated under the authority of a public or nonprofit hospital licensed by the North Carolina Medical Care Commission shall be distributed, upon application for financial assistance, for each full-time student duly enrolled in the program as of December 1 of the preceding year and on condition that accreditation is maintained. The amount per student shall not exceed $850. The State Board of Community Colleges shall adopt rules to ensure that this financial assistance is used directly for faculty and instructional needs of diploma nursing programs.

Requested by: Representative Nesbitt

––-STATE DEFENSE MILITIA EXEMPT FROM COMMUNITY COLLEGE TUITION AND FEES

Sec. 48. G.S. 115D-5(b) reads as rewritten:

"(b) In order to make instruction as accessible as possible to all citizens, the teaching of curricular courses and of noncurricular extension courses at convenient locations away from institution campuses as well as on campuses is authorized and shall be encouraged. A pro rata portion of the established regular tuition rate charged a full-time student shall be charged a part-time student taking any curriculum course. In lieu of any tuition charge, the State Board of Community Colleges shall establish a uniform registration fee, or a schedule of uniform registration fees, to be charged students enrolling in extension courses for which instruction is financed primarily from State funds; provided, however, that the State Board of Community Colleges may provide by general and uniform regulations for waiver of tuition and registration fees for persons not enrolled in elementary or secondary schools taking courses leading to a high school diploma or equivalent certificate, for training courses for volunteer firemen, local fire department personnel, volunteer rescue and lifesaving department personnel, local rescue and lifesaving department personnel, Radio Emergency Associated Citizens Team (REACT) members when the REACT team is under contract to a county as an emergency response agency, local law-enforcement officers, patients in State alcoholic rehabilitation centers, all full-time custodial employees of the Department of Correction, employees of the Department's Division of Adult Probation and Parole and employees of the Division of Youth Services of the Department of Human Resources required to be certified pursuant to Chapter 17C of the General Statutes and the rules of the Criminal Justice and Training Standards Commission, trainees enrolled in courses conducted under the New and Expanding Industry Program, clients of sheltered workshops, clients of adult developmental activity programs, students in Human Resources Development Programs, juveniles of any age committed to the Division of Youth Services of the Department of Human Resources by a court of competent jurisdiction, ~~and prison inmates.~~ prison inmates, and members of the North Carolina State Defense Militia as defined in G.S. 127A-5 and as administered pursuant to Article 5 of Chapter 127A of the General Statutes. Provided further, tuition shall be waived for senior citizens attending institutions operating pursuant to this Chapter as set forth in Chapter 115B of the General Statutes, Tuition Waiver for Senior Citizens."

PART XVI.––-COLLEGES AND UNIVERSITIES

Requested by: Representatives Payne, Fussell

––-TEACHING HOSPITAL REIMBURSEMENT

Sec. 49. Reimbursement to Pitt County Memorial Hospital for uncompensated care provided to non-Pitt County residents admitted by East Carolina Medical School faculty shall be limited to the unreimbursed portion of actual costs as determined in the Medicare Cost Report.

Requested by: Representatives Payne, Fussell

––-AID TO PRIVATE COLLEGES/LEGISLATIVE TUITION GRANT LIMITATIONS

Sec. 50. (a) The amount of a tuition grant awarded to a student enrolled in a degree program at a site away from the main campus of the approved private institution, as defined in G.S. 116-22(1), may be no more than the result of the ratio of the cost per credit hour for off-campus instruction at that site to the cost per credit hour for regular, full-time on-campus instruction, multiplied by the maximum grant award, or the maximum grant award allowable under Section 51(b) of this Title, whichever is less.

(b) No Legislative Tuition Grant funds may be expended for a program at an off-campus site of a private institution, as defined in G.S. 116-22(1), established after May 15, 1987, unless (i) the private institution offering the program has previously notified and secured agreement from other private institutions operating degree programs in the county in which the off-campus program is located or operating in the counties adjacent to that county or (ii) the degree program is neither available nor planned in the county with the off-campus site or in the counties adjacent to that county.

An "off-campus program" is any program offered for degree credit away from the institution's main, permanent campus.

(c) Any member of the armed services as defined in G.S. 116-143.3(a), abiding in this State incident to active military duty, who does not qualify as a resident for tuition purposes as defined under G.S. 116-143.1, is eligible for a Legislative Tuition Grant pursuant to this section if the member is enrolled as a full-time student. The member's Legislative Tuition Grant may not exceed the cost of tuition less any tuition assistance paid by the member's employer.

Requested by: Representatives Payne, Fussell

––-AID TO PRIVATE COLLEGES/PROCEDURE

Sec. 51. (a) Funds appropriated in this Title to the Board of Governors of The University of North Carolina for aid to private colleges shall be disbursed in accordance with the provisions of G.S. 116-19, 116-21, and 116-22. These funds shall provide up to $450.00 per full-time equivalent North Carolina undergraduate student enrolled at a private institution as of October 1 each year.

These funds shall be placed in a separate, identifiable account in each eligible institution's budget or chart of accounts. All funds in this account shall be provided as scholarship funds for needy North Carolina students during the fiscal year. Each student awarded a scholarship from this account shall be notified of the source of the funds and of the amount of the award. Funds not utilized under G.S. 116-19 shall be made available for the tuition grant program as defined in subsection (b) of this section.

(b) In addition to any funds appropriated pursuant to G.S. 116-19 and in addition to all other financial assistance made available to private educational institutions located within the State, or to students attending these institutions, there is granted to each full-time North Carolina undergraduate student attending an approved institution as defined in G.S. 116-22, a sum, not to exceed $1,150 per academic year, which shall be distributed to the student as hereinafter provided.

The tuition grants provided for in this section shall be administered by the State Education Assistance Authority pursuant to rules adopted by the State Education Assistance Authority not inconsistent with this section. The State Education Assistance Authority may not approve any grant until it receives proper certification from an approved institution that the student applying for the grant is an eligible student. Upon receipt of the certification, the State Education Assistance Authority shall remit at such times as it shall prescribe the grant to the approved institution on behalf, and to the credit, of the student.

In the event a student on whose behalf a grant has been paid is not enrolled and carrying a minimum academic load as of October 1 of the first academic term or on the tenth classroom day following the beginning of the second school term for which the grant was paid, the institution shall refund the full amount of the grant to the State Education Assistance Authority. Each approved institution shall be subject to examination by the State Auditor for the purpose of determining whether the institution has properly certified eligibility and enrollment of students and credited grants paid on the behalf of the students.

In the event there are not sufficient funds to provide each eligible student with a full grant:

(1) The Board of Governors of The University of North Carolina, with the approval of the Office of State Budget and Management, may transfer available funds to meet the needs of the programs provided by subsections (a) and (b) of this section; and

(2) Each eligible student shall receive a pro rata share of funds then available for the remainder of the academic year within the fiscal period covered by the current appropriation.

Any remaining funds shall revert to the General Fund.

(c) Expenditures made pursuant to this section may be used only for secular educational purposes at nonprofit institutions of higher learning.

Requested by: Representatives Payne, Fussell

––-WAKE FOREST AND DUKE MEDICAL SCHOOL ASSISTANCE/FUNDING FORMULAE

Sec. 52. Funds appropriated in this Title to the Board of Governors of The University of North Carolina for continuation of financial assistance to the medical schools of Duke University and Wake Forest University shall be disbursed on certifications of the respective schools of medicine that show the number of North Carolina residents as first-year, second-year, third-year, and fourth-year students in the medical school as of November 1, 1991, and November 1, 1992. Disbursement to Wake Forest University shall be made in the amount of $8,000 for each medical student who is a North Carolina resident, $1,000 of which shall be placed by the school in a fund to be used to provide financial aid to needy North Carolina students who are enrolled in the medical school. The maximum aid given to any student from this fund in a given year may not exceed the amount of the difference in tuition and academic fees charged by the school and those charged at the School of Medicine at the University of North Carolina at Chapel Hill.

Disbursement to Duke University shall be made in the amount of $5,000 for each medical student who is a North Carolina resident, $500.00 of which shall be placed by the school in a fund to be used to provide student financial aid to financially needy North Carolina students who are enrolled in the medical school. No individual student may be awarded assistance from this fund in excess of $2,000 each year. In addition to this basic disbursement for each year of the biennium, a disbursement of $1,000 shall be made for each medical student who is a North Carolina resident in the first-year, second-year, third-year, and fourth-year classes to the extent that enrollment of each of those classes exceeds 30 North Carolina students.

The Board of Governors shall establish the criteria for determining the eligibility for financial aid of needy North Carolina students who are enrolled in the medical schools and shall review the grants or awards to eligible students. The Board of Governors shall adopt rules for determining which students are residents of North Carolina for the purposes of these programs. The Board of Governors shall also make any regulations as necessary to ensure that these funds are used directly for instruction in the medical programs of the schools and not for religious or other nonpublic purposes. The Board of Governors shall encourage the two schools to orient students towards personal health care in North Carolina giving special emphasis to family and community medicine.

Requested by: Representatives Payne, Fussell

––-UNIVERSITY OF NORTH CAROLINA HOSPITALS AT CHAPEL HILL/NURSING

Sec. 53. Notwithstanding the provisions of G.S. 126-4(1), G.S. 126-4(2), and Section 9 of Chapter 738 of the 1987 Session Laws, as amended by Section 100(a) of the 1987 Session Laws, and as further amended by Section 54 of Chapter 500 of the 1989 Session Laws, the Current Operations Appropriations Act of 1989, the Board of Directors of the University of North Carolina Hospitals at Chapel Hill shall establish policies and rules governing the study and implementation of competitive position classification and compensation plans for registered and licensed practical nurse positions that have been approved by the Board of Directors. These plans shall provide for minimum, maximum, and intermediate rates of pay, and may include provisions for range revisions and shift premium pay and for salary adjustments to address internal inequities, job performance, and market conditions. The Office of State Personnel shall review the classification and compensation plans on an annual basis, and all changes in compensation plans for these registered and licensed practical nursing positions shall be submitted to the Office of State Personnel upon implementation.

Requested by: Representatives Payne, Fussell

––-UNC BUDGETARY CHANGES

Sec. 54. The Board of Governors of The University of North Carolina shall make the following change in all future budget presentations to the General Assembly and in the 1991-93 budget certification to the constituent institutions of The University of North Carolina:

The existing budget purposes or programs of State Administration, State-Subject Matter, State Information, County Supervision, and County Program Operation with the North Carolina Agricultural Extension Service budget code shall be consolidated into the budget purposes or programs entitled State Administration, State Program Operations, and County Program Operations.

Requested by: Representatives Payne, Fussell

––-UNC BOARD OF GOVERNORS/STATE BOARD OF COMMUNITY COLLEGES SMALL BUSINESS MEMORANDUM OF AGREEMENT

Sec. 55. The Board of Governors of The University of North Carolina and the State Board of Community Colleges shall develop and implement a new Memorandum of Agreement between the Small Business and Technology Development Centers Program (SBTDC) in The University of North Carolina and the Small Business Assistance Centers in the Community Colleges system. This Memorandum of Agreement shall:

(1) Refine existing agreements to increase coordination of services, to provide for referral and client tracking between the systems, and to define the types of service to be provided by each entity;

(2) Provide for subcontractors when necessary or reasonable for the provision of services, including the use of federal funds to provide services;

(3) Require definitive working agreements at the local level in those counties or municipal areas where more than one State-funded entity provides services to small businesses. These defined working agreements shall include:

a. Efforts to consolidate office space and support services where feasible;

b. Referral and client tracking systems; and

c. Coordination of program and service delivery efforts; and

(4) Provide for joint annual reports on these efforts.

The Board of Governors of The University of North Carolina and the State Board of Community Colleges shall approve the Memorandum of Agreement and report the results of their efforts and the impact of the working agreements on operations and cost to the General Assembly by March 31, 1992.

Requested by: Representatives Payne, Fussell

––-UNC BOARD OF GOVERNORS PREVENTION OF DUPLICATIVE ECONOMIC DEVELOPMENT EFFORTS

Sec. 56. The Board of Governors of The University of North Carolina shall address the issue of duplicative economic development efforts within The University of North Carolina. To achieve this, the Board shall:

(1) Reallocate the funds for Northeastern North Carolina Tomorrow (E.C.S.U.), Western North Carolina Tomorrow (W.C.U.), the Regional Development Institute (ECU), The Economic Development Office (PSU), and the Urban Development Institute (UNC-C), pulled out of the individual campuses and provided to the Board in this act, after the funding reduction required by this act, to achieve consolidation of services and after:

a. Ensuring that the efforts of these offices are consistent with the Small Business and Technology Development Centers Program (SBTDC) efforts and may be used to match federal funds, including additional federal funds that may become available. The Board shall, when possible, consolidate these offices into the (SBTDC) network; and

b. Requiring the Small Business and Technology Development Centers Program (SBTDC) to provide those direct services to small businesses previously offered by the Department of Economic and Community Development, including purchaser/supplier conferences and export assistance.

The Board shall report the results of its consolidation and coordination of economic development activities including the allocation of funds, to the General Assembly and the House and Senate Appropriations Subcommittees on Education by March 31, 1992.

Requested by: Representative Nesbitt

––-OBSTETRICAL EDUCATION FUNDS

Sec. 57. Funds in the amount of $480,000 appropriated to the Division of Maternal and Child Health, Department of Environment, Health, and Natural Resources in this Title for the Obstetrical Education Program of the Mountain Area Health Education Center (MAHEC) are hereby transferred to the Area Health Education Centers budget of the Board of Governors of The University of North Carolina. The funds transferred by this section shall be used for the MAHEC Obstetrical Education Program.

PART XVII.––-DEPARTMENT OF TRANSPORTATION

Requested by: Representative Anderson

––-MOWING ROAD SHOULDERS

Sec. 58. The Board of Transportation shall review its policy of requiring private contractors to mow the State highway system. The Board shall look at the comparative costs between mowing with State forces versus private contractors. The Board shall explore the costs of returning mowing work, especially of secondary roads, to the 14 Highway Divisions. This study shall also consider the savings derived from reducing the width of the shoulder to be mowed. A report of the Board's findings shall be submitted to the House Appropriations Subcommittee on Transportation, to the Senate Appropriations Committee on Natural and Economic Resources, and to the Fiscal Research Division 30 days prior to the scheduled convening date of the 1992 Session of the General Assembly. Until a report is made to the 1992 Session, the Board of Transportation shall award mowing contracts of no more than one year in duration.

Requested by: Representatives McLaughlin, Holt

––-DOT PERSONNEL ACTIONS REPORTED

Sec. 59. The Department of Transportation shall submit a list of personnel actions every six months to the Joint Legislative Highway Oversight Committee and to the Fiscal Research Division. This list shall include positions reallocated, reclassified, abolished, and created. The report shall give the status of the Department's salary reserves and how they were used during the reporting period.

Requested by: Representatives McLaughlin, Holt

––-PLAN TO REDUCE LABOR VARIANCE

Sec. 60. The Department of Transportation shall submit to the House Appropriations Subcommittee on Transportation and the Senate Appropriations Committee on Natural and Economic Resources during the 1992 Session of the General Assembly, a plan to reduce labor variance in highway planning and design from the current nineteen and two-tenths percent (19.2%) to the pre-Trust Fund 1985 level of ten and six-tenths percent (10.6%). The Plan shall list all activities that are charged to labor variance and the reasons why the work has not been assigned to job orders.

Requested by: Representatives McLaughlin, Holt

––-PERFORMANCE AUDIT COMPARING COST OF ENGINEERING SERVICES BETWEEN DEPARTMENT OF TRANSPORTATION AND PRIVATE ENGINEERING FIRMS

Sec. 61. The State Auditor shall conduct a performance audit comparing the cost, quality, and timeliness of engineering services provided by outside consultants versus Department of Transportation personnel. This audit shall include an analysis of overhead costs, labor variance, the impact of newly hired employees or Department of Transportation efficiency and the cost of supervising consultants. The State Auditor shall report his findings, by April 1, 1992, to the Chairmen of the Senate and House Appropriations Committees, the Chairmen of the House Appropriations Subcommittee on Transportation, and the Chairman of the Senate Appropriations Committee on Natural and Economic resources.

Requested by: Representatives McLaughlin, Holt

––-REDUCTION OF HIGHWAY TRUST FUND REVENUE USED FOR ADMINISTRATIVE EXPENSES

Sec. 62. G.S. 136-176(b) reads as rewritten:

"(b) Funds in the Trust Fund are annually appropriated to the Department of Transportation to be allocated and used as provided in this subsection. A sum, not to exceed ~~five percent (5%)~~ four and one-half percent (4.5%) of the amount of revenue deposited in the Trust Fund under subdivisions (a)(1), (2), and (3) of this section, may be used each fiscal year by the Department for expenses to administer the Trust Fund. The rest of the funds in the Trust Fund shall be allocated and used as follows:

(1) Sixty-one and ninety-five hundredths percent (61.95%) to plan, design, and construct the projects of the Intrastate System described in G.S. 136-179.

(2) Twenty-five and five hundredths percent (25.05%) to plan, design, and construct the urban loops described in G.S. 136-180.

(3) Six and one-half percent (6.5%) to supplement the appropriation to cities for city streets under G.S. 136-181.

(4) Six and one-half percent (6.5%) for secondary road construction as provided in G.S. 136-182."

Requested by: Representatives McLaughlin, Holt

––-BRANCH AGENT TRANSACTION RATE

Sec. 63. The Division of Motor Vehicles of the Department of Transportation shall compensate a contractor with whom it has a contract under G.S. 20-63(h) at the rate of ninety-two cents (92¢) for each transaction performed in accordance with the requirements set by the Division. A transaction is any of the following activities:

(1) Issuance of a registration plate, a registration card, a registration renewal sticker, or a certificate of title.

(2) Issuance of a handicapped placard or handicapped identification card.

(3) Acceptance of an application for a personalized registration plate.

(4) Acceptance of a surrendered registration plate, registration card, or registration renewal sticker, or acceptance of an affidavit stating why a person cannot surrender a registration plate, registration card, or registration renewal sticker.

(5) Cancellation of a title because the vehicle has been junked.

(6) Acceptance of an application for, or issuance of, a refund for a fee or a tax, other than the highway use tax.

(7) Receipt of the civil penalty imposed by G.S. 20-309 for a lapse in financial responsibility or receipt of the restoration fee imposed by that statute.

(8) Acceptance of a notice of failure to maintain financial responsibility for a motor vehicle.

(9) Collection of the highway use tax.

Performance at the same time of any combination of the items that are listed within each subdivision or are listed within subdivisions (1) through (8) is a single transaction. Performance of the item listed in subdivision (9) in combination with any other items listed in this section is a separate transaction.

Requested by: Representatives McLaughlin, Holt

––-BIDS FOR COMPUTER SERVICES

Sec. 64. In requests for bids, requests for quotes, requests for proposals, or other procurement actions issued through the Department of Administration, Division of Purchase and Contract, or through any other State agency, for vendors to develop a strategic plan, conduct a feasibility study, or prepare a needs assessment for a computer system, information system, data communications network, data processing application, or other information technology application, there shall be a provision that reads as follows:" Eligibility for Future Requirements: The successful offeror on this project will not be considered for an award on subsequent hardware, software, software support, and related procurements which are based on specifications or recommendations resulting from this procurement." The Division of Purchase and Contract and the State agency or agencies involved in the procurement may delete this provision in a procurement request by jointly (i) filing a written request with the Director of the Office of State Budget for authorization to delete this provision from the procurement effort, (ii) sending a copy of this written request for authorization to the Director of the Fiscal Research Division at the time it is filed with the Office of State Budget, (iii) receiving written authorization to delete the provision from the Director of the Office of State Budget, and (iv) reporting the authorization, if it is granted, to the Director of the Fiscal Research Division and to the next meeting of the Joint Legislative Commission on Governmental Operations.

Requested by: Representatives McLaughlin, Holt, Bowie

––-NORTH CAROLINA RAILROAD DIVIDENDS APPROPRIATED TO THE HIGHWAY FUND FOR RAILROAD PURPOSES

Sec. 65. G.S. 136-16.6 reads as rewritten:

"§ 136-16.6. Continuing rail appropriations.

There is annually ~~appropriated, beginning with the 1987-88 fiscal year, from the General Fund to the Department of Transportation for rail purposes the greater of one hundred thousand dollars ($100,000) or~~ appropriated one hundred percent (100%) of the annual dividends received in the prior fiscal year ~~(less any amounts that are required by Section 13.18 of Chapter 792, Session Laws of 1985 to be paid for the expenses of the Railroad Negotiating Commission)~~ by the State from its ownership of stock in the North Carolina Railroad Company and the Atlantic and North Carolina Railroad ~~Company.~~ Company to the Highway Fund for use by the Department of Transportation for railroad purposes."

Requested by: Representatives McLaughlin, Holt

––-TRANSFER OF FUNDS FROM THE EQUIPMENT FUND

Sec. 66. The Department of Transportation's Equipment Fund shall pay to the Highway Fund $5,000,000 for the 1991-92 fiscal year and $5,000,000 for the 1992-93 fiscal year. These funds shall be used for highway maintenance.

PART XVIII.––-DEPARTMENT OF CORRECTION

Requested by: Representatives Anderson, Redwine

––-PRIVATE CONFINEMENT FACILITIES

Sec. 67. No for-profit, privately owned or operated confinement facilities may be added to the State prison system unless approved by the General Assembly. The State may contract with private, nonprofit firms to provide or operate work and study release centers for women and for youth.

Requested by: Representatives Anderson, Redwine

––-NEGOTIATED RATES FOR MEDICAL SERVICES

Sec. 68. The Department of Correction shall negotiate for rates as close to Medicaid rates as possible for all medical services rendered to that Department by providers who are not State employees. The Department shall report the results of its negotiations to the Chairmen of the Senate Appropriations Committee and the Senate Base Budget Appropriations Committee, the Chairmen of the House Appropriations Committee, and the Chairmen of the Senate and the House Appropriations Committees on Justice and Public Safety prior to March 15, 1992.

Requested by: Representatives Anderson, Redwine

––-LIMIT USE OF OPERATIONAL FUNDS

Sec. 69. Funds appropriated in this Title to the Department of Correction for operational costs for additional facilities shall be used for the personnel and operating expenses set forth in the budget approved by the General Assembly in this act. These funds may not be expended for any other purpose, and may not be expended for additional prison personnel positions until the new facilities are within 90 days of completion, except as authorized for the facilities at Nash, Pender, South Mountain, and Brown Creek.

Requested by: Representatives Anderson, Redwine

––-INMATE REPRESENTATION STUDY

Sec. 70. The Joint Legislative Commission on Governmental Operations shall study the issue of providing legal representation to inmates in the custody of the Department of Correction by examining the current means and alternative means of providing such representation and determining which of those means are the most feasible. The Commission shall report its findings and any recommendations to the Chairmen of the Senate and House Appropriations Committees and the Chairmen of the Senate and House Appropriations Committees on Justice and Public Safety by May 1, 1992.

PART XIX.––-DEPARTMENT OF CRIME CONTROL AND PUBLIC SAFETY

Requested by: Representatives Anderson, Redwine

––-REPORT ON COMMUNITY SERVICE WORKERS

Sec. 71. The Department of Crime Control and Public Safety shall report quarterly in the 1991-92 fiscal year and the 1992-93 fiscal year to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division on the number of community service workers who were available during each month of the time period preceding that report to perform repairs and maintenance of the parks and when and where they were available.

Requested by: Representatives Anderson, Redwine

––-REPORTS ON THE COMMUNITY PENALTIES PROGRAM AND THE CRIME VICTIMS COMPENSATION FUND

Sec. 72. The Department of Crime Control and Public Safety shall report annually to the Senate and House Appropriations Base Budget Committees on Justice and Public Safety and the Fiscal Research Division on the administrative expenditures of the Community Penalties Program and the North Carolina Crime Victims Compensation Fund.

Requested by: Representatives Anderson, Redwine

––-LEGISLATIVE REVIEW OF DRUG LAW ENFORCEMENT AND OTHER GRANTS

Sec. 73. (a) Section 1303(4) of the Omnibus Crime Control and Safe Streets Act of 1968 provides that State applications for drug law enforcement grants are subject to review by the State legislature or its designated body.

(b) The North Carolina General Assembly hereby provides that State applications for grants under the State and Local Law Enforcement Assistance Act of 1986, Part M of the Omnibus Crime Control and Safe Streets Act of 1968 as enacted by Subtitle K of P.L. 99-570, the Anti-Drug Abuse Act of 1986, are subject to review by the Joint Legislative Commission on Governmental Operations if at the time of review the General Assembly is not in session.

(c) Unless a State statute provides a different forum for review where a federal law or regulation provides that a State application for a grant must be reviewed by the State legislature or its designated body and at the time of the review the General Assembly is not in session, that application shall be reviewed by the Joint Legislative Commission on Governmental Operations.

Requested by: Representatives Anderson, Redwine

––-REPORT ON MOTOR VEHICLE REPLACEMENT COST

Sec. 74. The Department of Crime Control and Public Safety shall report to the 1991 General Assembly, 1992 Regular Session, regarding the reduction in the number of motor vehicles replaced by the Highway Patrol for the 1991-92 fiscal year and the effect, if any, of that reduction on the Highway Patrol, and shall also review and report on the projected cost of replacing motor vehicles for the 1992-93 fiscal year. The Department of Justice shall report to the 1991 General Assembly, 1992 Regular Session, regarding the reduction in the number of motor vehicles replaced by the State Bureau of Investigation for the 1991-92 fiscal year and the effect, if any, of that reduction on the State Bureau of Investigation, and shall also review and report on the projected cost of replacing motor vehicles for the 1992-93 fiscal year.

Requested by: Representatives Anderson, Redwine

––-REPORT ON HIGHWAY PATROL FURNITURE AND EQUIPMENT REPLACEMENT SCHEDULE

Sec. 75. The Highway Patrol, Department of Crime Control and Public Safety, shall report to the 1991 General Assembly, 1992 Regular Session, regarding the reductions in the replacement schedule for furniture and equipment for the Highway Patrol for the 1991-92 fiscal year and the effect, if any, of those reductions. The Highway Patrol shall also report on the projected cost of the replacement schedule for equipment and furniture for the 1992-93 fiscal year.

Requested by: Representatives Anderson, Redwine

––-CRIME VICTIMS COMPENSATION/SOFTWARE FUNDS

Sec. 76. (a) The Office of State Budget and Management shall designate $10,080 of the Computer Reserve Fund created in the Office of State Budget and Management for the 1991-92 fiscal year for the critical computer needs of the Crime Victims Compensation Program in the Department of Crime Control and Public Safety.

(b) The Department of Crime Control and Public Safety shall eliminate one position for a claims examiner and one position for an investigator by July 1, 1992.

PART XX.––-JUDICIAL DEPARTMENT

Requested by: Representatives Anderson, Redwine

––-COMMISSIONERS ON UNIFORM STATE LAWS

Sec. 77. From funds appropriated to the Judicial Department in the certified budget for the 1991-93 biennium, the Administrative Office of the Courts may transfer within its budget up to $19,000 for the 1991-92 fiscal year and up to $19,000 for the 1992-93 fiscal year to reimburse the expenses of travel of the North Carolina delegation of the National Conference of Commissioners on Uniform State Laws.

Requested by: Representatives Anderson, Redwine

––-INDIGENT PERSONS' ATTORNEY FEE FUND

Sec. 78. (a) Effective July 1, 1991, the Administrative Office of the Courts shall each year of the biennium place the sum of $3,249,236 from the Indigent Persons' Attorney Fee Fund in a reserve for capital cases and for transcripts, professional examinations, and expert witness fees. The Administrative Office of the Courts shall allot these funds as needed for these purposes and for unanticipated demands on the fund.

(b) Effective July 1, 1991, the Administrative Office of the Courts shall, for each year of the biennium, allot the sum of $11,500,000 from the Indigent Persons' Attorney Fee Fund for adult, juvenile, and guardian ad litem cases for the 1991-92 and 1992-93 fiscal years to each judicial district where the superior and district court districts are coterminous, and otherwise by county, according to the caseload of indigent persons who were not represented by the public defender in the districts or counties during 1990-91 and 1991-92, respectively.

The Administrative Office of the Courts shall notify all senior resident superior court judges, all chief district court judges, and the clerk of superior court within the district or county immediately after the allotment is made and shall regularly notify them how much remains for the district or county.

The senior resident superior court judge and the chief district court judge of each district or county shall ask all judges holding court within the district or county: (i) to take into consideration the amount of money allotted at the beginning of the fiscal year and the amount of money remaining in the allotment when they award counsel fees to attorneys of indigent persons, and (ii) to make an effort to award fees equally and justly for legal services provided. The clerk of superior court for each county shall assure that all judges holding court within the county receive this request from the senior resident superior court judge and the chief district court judge.

(c) If the funds allotted pursuant to subsection (b) of this section are depleted in a district or county prior to the end of the fiscal year, the Administrative Office of the Courts shall allot the remaining funds from the Indigent Persons' Attorney Fee Fund in the same manner as provided in subsection (b) of this section, provided, however, if necessary and appropriate due to unusual and unanticipated circumstances occurring in the current year, the Administrative Office of the Courts may allocate funds to a district or county in a manner calculated to result in the reasonably fair distribution of the remaining funds. Such funds shall be subject to the limitations and directions set out in subsection (b) of this section.

(d) If the funds allotted pursuant to subsection (c) of this section are depleted in a district or county prior to the end of the fiscal year, the Administrative Office of the Courts is authorized to resume payments in such districts or counties only if and when it is reasonably determined that the total projected expenditures will be less than the total approved budget for the Indigent Persons' Attorney Fee Fund for the fiscal year.

Requested by: Representatives Anderson, Redwine

––-CURRENT OPERATING EXPENSES

Sec. 79. From funds appropriated to the Judicial Department in the certified budget for the 1991-92 fiscal year in this Title, the Administrative Office of the Courts may transfer within its budget up to $2,500,000 to meet additional current operating expenses for supplies and materials, current obligations, fixed charges, other expenses, equipment and books, and indigent persons' attorney fees. The Administrative Office of the Courts shall make quarterly reports on transfers made pursuant to this section to the Joint Legislative Commission on Governmental Operations and the Chairmen of the Senate and the House Appropriations Committees on Justice and Public Safety.

Requested by: Representatives Anderson, Redwine

––-RAPE VICTIM WITNESS COUNSELLOR PROGRAM

Sec. 80. From funds appropriated to the Judicial Department in the certified budget for the 1991-93 biennium in this Title, the Administrative Office of the Courts may transfer within its budget up to $25,000 for the 1991-92 fiscal year and up to $25,000 for the 1992-93 fiscal year to support the existing Rape Victim Witness Counsellor Program.

Requested by: Representatives Anderson, Redwine

––-ASSIGNED COUNSEL/PUBLIC DEFENDER COST COMPARISON REPORTS FOR DISTRICTS 4A, 5, AND 10; INTENT TO ESTABLISH PUBLIC DEFENDER OFFICES WHERE ASSIGNED COUNSEL COSTS EXCESSIVE

Sec. 81. (a) Before the 1992 Regular Session of the General Assembly convenes, the Administrative Office of the Courts shall submit to the House and Senate Appropriations Committees on Justice and Public Safety and to the Joint Legislative Commission on Governmental Operations two reports which compare the amount actually spent on private assigned counsel for indigent persons in Superior Court District or Set of Districts 4A (Sampson, Duplin, and Jones Counties), 5 (New Hanover and Pender Counties), and 10 (Wake County), with the estimated amount which would have been incurred had there been a public defender in each of those districts. The first report shall be submitted on or before January 1, 1992, and shall cover the period May 1, 1991, through October 31, 1991; the second report shall be submitted on or before May 20, 1992, and shall cover the period May 1, 1991, through April 30, 1992. Each report shall be based on methods and shall be presented in a format substantially similar to those of the "Comparative Cost Estimates for Establishing Additional Public Defender Offices in Certain Judicial Districts" which are prepared annually by the Administrative Office of the Courts.

(b) It is the intent of the General Assembly to establish, effective July 1, 1992, a public defender office for a defender district coterminous with any of the three superior court districts or set of districts designated in subsection (a) of this section in which the amount actually spent on private assigned counsel between May 1, 1991, and April 30, 1992, exceeds the estimated amount which would have been incurred in the same period had there been a public defender office in that district or set of districts, as shown in the reports submitted pursuant to subsection (a) of this section.

(c) By May 20, 1992, the Administrative Office of the Courts shall report to the entities designated to receive the reports in subsection (a) of this section on the cost effectiveness of the existing public defender offices.

Requested by: Representatives Anderson, Redwine

––-APPELLATE DEFENDER – DEATH PENALTY CASES

Sec. 82. (a) Report on Appellate Defender's Office. The Judicial Department shall submit reports on March 15 of each year of the 1991-93 biennium to the House and Senate Appropriation Committees on Justice and Public Safety and to the Joint Legislative Commission on Governmental Operations on:

(1) The purpose and activities of that part of the Appellate Defender's Office devoted to death penalty cases, and

(2) An accounting of General Fund expenditures on assistance provided to paid counsel, State-appointed counsel, and pro bono attorneys.

(b) No Lobbying by Appellate Defender's Office. The Appellate Defender's Office shall not lobby any entity, organization, or legislative body to urge either abolition or retention of the death penalty. If the Appellate Defender's Office or any of its employees fail to comply with this section or any of the duties of the Appellate Defender's Office related to death penalty cases, the Director of the Administrative Office of the Courts may refuse to seek continued State funding for that part of the Appellate Defender's Office devoted to death penalty cases, or take such other actions as the Director considers appropriate.

"§ 7A-486.3. Duties.

The appellate defender shall:

(1) Represent indigent persons subsequent to conviction in trial courts pursuant to assignment by trial court judges under the general supervision of the Chief Justice of the Supreme Court. The Chief Justice may, following consultation with the appellate defender and consistent with the resources available to the appellate defender to ensure quality criminal defense services by the appellate defender's office, authorize the appellate defender not to accept assignments of certain appeals but instead to cause those appeals to be assigned either to a local public defender's office or to private assigned counsel.

(2) Maintain a clearinghouse of materials and a repository of briefs prepared by the appellate defender to be made available to private counsel representing indigents in criminal cases.

(3) Provide continuing legal education training to assistant appellate defenders and to private counsel representing indigents in criminal cases, including capital cases, as resources are available.

(4) Provide consulting services to attorneys representing defendants in capital cases.

(5) Recruit qualified members of the private bar who are willing to provide representation in State and federal death penalty postconviction proceedings.

(6) In his discretion, serve as counsel of record for indigent defendants in capital cases in State court.

(7) Undertake direct representation and consultation in capital cases pending in federal court only to the extent that such work is fully federally funded."

Requested by: Representatives Anderson, Redwine

––-JUDICIAL DEPARTMENT AND DEPARTMENT OF CORRECTION PURCHASES OF SUPPLIES, MATERIALS, AND EQUIPMENT

Sec. 83. During the 1991-93 biennium, the Administrative Office of the Courts is authorized to make direct purchases of supplies, materials, and equipment for the Judicial Department, and the Department of Correction is authorized to make direct purchases of supplies, materials, and equipment for the Department of Correction, without complying with Article 3 of Chapter 143 of the General Statutes (Purchases and Contracts) provided that (i) all purchases shall be made pursuant to an open competitive bidding process substantially similar to that provided for in that Article, and (ii) no purchases may be made under the authority of this section except at a price which is less than that for the same item or items under any State contract in effect at the time of the purchase.

The Administrative Office of the Courts and the Department of Correction shall report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division regarding these purchases by December 31, 1991, and by May 1, 1992, for the 1991-92 fiscal year and by May 1, 1993, for the 1992-93 fiscal year.

Requested by: Representatives Anderson, Redwine

––-TERMINATION OF AUTOMATIC DISMISSAL PROGRAMS

Sec. 84. Effective July 1, 1991, the programs in Prosecutorial Districts 5, 25, 26, 27A, and 27B for dismissing all minor traffic citation court cases and forgiving the payment of all court costs upon the completion by the offender of a "defensive driving course" or "traffic safety school" shall be terminated. No such program may be established or operated in any judicial or prosecutorial district except by express enactment of the General Assembly.

PART XXI.––-DEPARTMENT OF JUSTICE

Requested by: Representatives Anderson, Redwine

––-USE OF SEIZED AND FORFEITED PROPERTY TRANSFERRED TO STATE LAW ENFORCEMENT AGENCIES BY THE FEDERAL GOVERNMENT

Sec. 85. (a) Assets transferred to the Department of Justice during the 1991-93 biennium pursuant to 19 U.S.C. § 1616a shall be credited to the budget of that Department and shall result in an increase of law enforcement resources for the Department. Assets transferred to the Department of Crime Control and Public Safety during the 1991-93 biennium pursuant to 19 U.S.C. § 1616a shall be credited to the budget of that Department and shall result in an increase of law enforcement resources for the Department. The departments shall report to the Joint Legislative Commission on Governmental Operations upon the receipt of these assets and before using these assets shall report the intended use of these assets and the departmental priorities on which the assets may be expended.

The General Assembly finds that the use of these assets for new projects, the acquisition of real property, repair of buildings where such repair includes structural change, and construction of or additions to buildings may result in additional expenses for the State in future fiscal periods; therefore, the Department of Justice and the Department of Crime Control and Public Safety are prohibited from using these assets for such purposes without the prior approval of the General Assembly.

(b) This section does not apply to the extent that it prevents North Carolina law enforcement agencies from receiving funds from the U.S. Department of Justice pursuant to 19 U.S.C. § 1616a.

Requested by: Representatives Anderson, Redwine

––-DEPARTMENT OF JUSTICE STUDY/CHARGES FOR LEGAL SERVICES TO LOCAL GOVERNMENTS AND STATE AGENCIES

Sec. 86. (a) The Department of Justice shall study the feasibility of charging local governments for legal services rendered to those governments by the Office of the Attorney General. The Department of Justice shall consider the number of requests for legal assistance received from local governments, the type of legal assistance requested, the time required to respond to the requests, and any other matters related to the issue of charging local governments for legal assistance. The Department of Justice shall also consider what fee, if any, is appropriate to charge local governments for such legal services. The Department of Justice shall report its findings and recommendations to the 1991 General Assembly, 1992 Regular Session.

(b) The Department of Justice shall study the feasibility of an increase in the fees currently charged other State departments and agencies for its legal services, such fee increase to be effective for the 1993-94 fiscal year. The Department of Justice shall also study the feasibility of requiring all State departments and agencies that have attorneys assigned to them by the Attorney General to pay the compensation, including salaries and benefits, for those legal positions. The Department of Justice shall report its finding and recommendations to the 1991 General Assembly, 1992 Regular Session.

Requested by: Representatives Anderson, Redwine

––-DEPARTMENT OF TRANSPORTATION TO PAY COMPENSATION OF ATTORNEYS ASSIGNED TO MOTOR VEHICLES DIVISION BY THE ATTORNEY GENERAL

Sec. 87. The Department of Transportation shall pay the compensation, including salaries and benefits, of the attorneys assigned to the Division of Motor Vehicles by the Attorney General. The funds to pay the compensation for those legal positions shall be taken from the Highway Fund.

Requested by: Representatives Anderson, Redwine

––-JUSTICE ACADEMY STUDY/STUDENT REGISTRATION FEE

Sec. 88. The North Carolina Justice Academy shall study the possibility of requiring a student registration fee. The study shall include consideration of the actual cost for a student to attend the Justice Academy, the merits of charging a registration fee, and the amount, if any, that should be charged as a registration fee. The North Carolina Justice Academy shall report its findings and recommendations to the 1991 General Assembly, 1992 Regular Session.

Requested by: Representatives Anderson, Redwine

––-SBI USE OF COURT-ORDERED RESTITUTION FUNDS

Sec. 89. The State Bureau of Investigation (SBI) may use funds available from court-ordered restitution in undercover drug operations.

Requested by: Representatives Anderson, Redwine

––-PRIVATE PROTECTIVE SERVICES AND ALARM SYSTEMS LICENSING BOARDS PAY FOR USE OF STATE FACILITIES AND SERVICES

Sec. 90. The Private Protective Services and Alarm Systems Licensing Boards shall pay the appropriate State agency for the use of physical facilities and services provided to those boards by the State.

REQUESTED BY: Representatives Anderson, Redwine

––-TRANSFER LEGAL AND SUPPORT STAFF POSITIONS FROM VARIOUS DEPARTMENTS TO THE DEPARTMENT OF JUSTICE

Sec. 91. (a) The following positions are transferred to the Department of Justice from the Department of Administration:

Dept Position Position

Agency Number Title Grade

ADMINISTRATION

Radioactive

Waste 0095 Paralegal II 67

(b) The following positions are transferred to the Department of Justice from the Department of Agriculture:

Dept Position Position

Agency Number Title Grade

AGRICULTURE

Administration

Legal Staff Agency Legal

0105 Specialist II 75

Dept Position Position

Agency Number Title Grade

COMMUNITY COLLEGES

Legal Staff 0180

(to 1160) Paralegal I 65

(d) The following positions are transferred to the Department of Justice from the Department of Correction:

Dept Position Position

Agency Number Title Grade

CORRECTION

Legal Staff Agency Legal

0074 Specialist III 77

Agency Legal

0078 Specialist II 75

Agency Legal

0080 Specialist II 75

Agency Legal

0079 Specialist II 75

Paralegal III

(Employee Title = 70

0084 Paralegal II) 67

Support Staff

Administrative

0088 Secretary IV 61

0090 Clerk-Typist IV 59

0092 Clerk-Typist III 57

(e) The following positions are transferred to the Department of Justice from the Department of Environment, Health, and Natural Resources:

Dept Position Position

Agency Number Title Grade

ENVIRONMENT, HEALTH AND NATURAL RESOURCES

Legal Staff

Administration Agency Legal

1902 Specialist III 77

Agency Legal

1903 Specialist III 77

Agency Legal

1906 Specialist I 73

Agency Legal

1907 Specialist III 77

Agency Legal

1909 Specialist III 77

Agency Legal

1911 Specialist II 75

Agency Legal

1912 Specialist III 77

Agency Legal

1915 Specialist III 77

Agency Legal

1916 Specialist III 77

Agency Legal

1918 Specialist I 73

Marine Fisheries 8442 Paralegal II 67

8443 Paralegal II 67

8444 Paralegal II 67

Solid Waste 4523 Attorney II 79

Support Staff 1914 Clerk-Steno V 61

1917 Clerk-Typist IV 59

1908 Clerk-Typist IV 59

1905 Clerk-Typist IV 59

4035 Secretary III 57

(f) The following positions are transferred to the Department of Justice from the Department of Human Resources:

Dept Position Position

Agency Number Title Grade

HUMAN RESOURCES

Legal Staff

Office of the Agency Legal

Secretary 0713 Specialist II 75

Division of

Youth Services Agency Legal

0003 Specialist I 73

(g) The following positions are transferred to the Department of Justice from the Department of Insurance:

Dept Position Position

Agency Number Title Grade

INSURANCE

Legal Services

Division 0114 Attorney II 79

0117 Attorney II 79

0120 Attorney II 79

0122 Attorney II 79

0123 Attorney II 79

0124 Attorney II 79

0125 Attorney II 75

Agency Legal

0126 Specialist III 77

0133 Paralegal II 67

Field Audit 0420 Attorney II 79

Support Staff 0134 Clerk-Typist IV 59

0138 Clerk-Typist IV 59

Administrative

0139 Secretary V 61

0144 Clerk-Typist IV 59

(h) The following positions are transferred to the Department of Justice from the Department of Revenue:

Dept Position Position

Agency Number Title Grade

REVENUE

Legal Staff

Field Operations Agency Legal

8210 Specialist II 75

(i) The following positions are transferred to the Department of Justice from the Department of the Secretary of State:

Dept Position Position

Agency Number Title Grade

SECRETARY OF STATE

Legal Staff

Corporations Attorney-

Division 0200 Corporations Filing 75

Support Staff 0420 Clerk-Steno III 57

(j) The equipment, supplies, records, and other property to support the positions transferred by this section are also transferred from the appropriate departments to the Department of Justice.

(k) Funds are transferred in this Title to the Department of Justice for the positions, equipment, supplies, and other property transferred to the Department of Justice by this section. Funds for the 1992-93 fiscal year for those positions, equipment, supplies, and other property shall be reduced by fifteen percent (15%). To achieve the fifteen percent (15%) reduction required by this section, the Attorney General shall identify specific reductions relating to equipment, supplies, and other property transferred under this section and shall identify the positions transferred to the Department of Justice by this section to be eliminated. The Attorney General shall report to the Legislative Commission on Governmental Operations and the Fiscal Research Division by March 15, 1992, regarding those reductions and positions to be eliminated. By July 1, 1992, the Attorney General shall permanently make reductions relating to equipment, supplies, and other property transferred by this section and shall eliminate the positions transferred to the Department of Justice by this section to achieve the fifteen percent (15%) reduction.

(l) Any department from which a position is transferred under this section to the Department of Justice shall continue to provide adequate office space for legal and support staff assigned to that department by the Attorney General.

(m) Any disputes arising out of this transfer shall be resolved by the Director of the Budget.

Requested by: Representative Anderson

––-DEPARTMENT OF JUSTICE/DRUG INFORMATION SYSTEM

Sec. 92. The North Carolina Drug Information System proposed in the State's 1991 Criminal Justice Improvement and Drug Control Grant application submitted to the United States Department of Justice, Bureau of Justice Assistance, shall be housed in the Department of Justice and shall be under the supervision and control of the Attorney General. The Department of Justice and the Department of Crime Control and Public Safety shall report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division by March 15, 1992, regarding the progress in implementing the system.

PART XXII.––-DEPARTMENT OF HUMAN RESOURCES

Requested by: Representatives Nye, Easterling

––-MEDICAID

Sec. 93. (a) Funds appropriated in this Title for services provided in accordance with Title XIX of the Social Security Act (Medicaid) are for both the categorically needy and the medically needy. Funds appropriated for these services shall be expended in accordance with the following schedule of services and payment bases. All services and payments are subject to the language at the end of this subsection.

Services and payment bases:

(1) Hospital-Inpatient - Payment for hospital inpatient services will be prescribed in the State Plan as established by the Department of Human Resources. Administrative days for any period of hospitalization shall be limited to a maximum of three days.

(2) Hospital-Outpatient - Eighty percent (80%) of allowable costs or a prospective reimbursement plan as established by the Department of Human Resources.

(3) Nursing Facilities - As prescribed under the reimbursement plan for Nursing Facilities. Nursing facilities providing services to Medicaid recipients who also qualify for Medicare, must be enrolled in the Medicare program as a condition of participation in the Medicaid program, subject to phase-in certification for those nursing facilities not already enrolled in Medicare. State facilities are not subject to the requirement to enroll in the Medicare Program.

(4) Intermediate Care Facilities for the Mentally Retarded - As prescribed under the State Plan for reimbursing intermediate care facilities for the mentally retarded.

(5) Drugs - Drug costs as allowed by federal regulations plus a professional services fee per month excluding refills for the same drug or generic equivalent during the same month. Reimbursement shall be available for up to six prescriptions per recipient, per month, including refills. Payments for drugs are subject to the provisions of subsection (h) of this section and to the provisions at the end of subsection (a) of this section, or in accordance with a plan adopted by the Department of Human Resources consistent with federal reimbursement regulations. Payment of the professional services fee shall be made in accordance with the plan adopted by the Department of Human Resources, consistent with federal reimbursement regulations. Adjustments to the professional services fee shall be established by the General Assembly.

(6) Physicians, Chiropractors, Podiatrists, Optometrists, Dentists, Certified Nurse Midwife Services - Fee schedules as developed by the Department of Human Resources. Payments for dental services are subject to the provisions of subsection (g) of this section.

(7) Community Alternative Program, EPSDT Screens - Payment to be made in accordance with rate schedule developed by the Department of Human Resources.

(8) Home Health, Private Duty Nursing, Clinic Services, Prepaid Health Plans - Payment to be made according to reimbursement plans developed by the Department of Human Resources.

(9) Medicare Buy-In - Social Security Administration premium.

(10) Ambulance Services - Uniform fee schedules as developed by the Department of Human Resources.

(11) Hearing Aids - Actual cost plus a dispensing fee.

(12) Rural Health Clinic Services - Provider based - reasonable cost; nonprovider based - single cost reimbursement rate per clinic visit.

(13) Family Planning - Negotiated rate for local health departments. For other providers - see specific services, for instance, hospitals, physicians.

(14) Independent Laboratory and X-Ray services - Uniform fee schedules as developed by the Department of Human Resources.

(15) Optical Supplies - One hundred percent (100%) of reasonable wholesale cost of materials.

(16) Ambulatory Surgical Centers - Payment as prescribed in the reimbursement plan established by the Department of Human Resources.

(17) Medicare Crossover Claims - An amount up to the actual coinsurance or deductible or both, in accordance with the plan, as approved by the Department of Human Resources.

(18) Physical Therapy and Speech Therapy - Services limited to EPSDT eligible children. Payments are to be made only to the Children's Special Health Services program at rates negotiated by the Department of Human Resources.

(19) Personal Care Services - Payment in accordance with plan approved by the Department of Human Resources.

(20) Case Management Services - Reimbursement in accordance with the availability of funds to be transferred within the Department of Human Resources.

(21) Hospice - Services may be provided in accordance with plan developed by the Department of Human Resources.

(22) Other Mental Health Services - Unless otherwise covered by this section, coverage is limited to agencies meeting the requirements of the rules established by the Commission for Mental Health, Developmental Disabilities, and Substance Abuse Services, and reimbursement is made in accordance with a plan developed by the Department of Human Resources not to exceed the upper limits established in federal regulations.

(23) Medically Necessary Prosthetics or Orthotics for EPSDT Eligible Children - Reimbursement in accordance with plan approved by the Department of Human Resources.

(24) Health Insurance Premiums - Payments to be made in accordance with the plan adopted by the Department of Human Resources consistent with federal regulations.

Reimbursement is available for up to 24 visits per recipient per year to any one or combinations of the following: physicians, clinics, hospital outpatients, optometrists, chiropractors, and podiatrists. Prenatal services, all ESPDT children, and emergency rooms are exempt from the visit limitations contained in this paragraph. Exceptions may be authorized by the Department of Human Resources where the life of the patient would be threatened without such additional care. Any person who is determined by the Department to be exempt from the 24-visit limitation may also be exempt from the six-prescription limitation.

(b) Allocation of Nonfederal Cost of Medicaid. The State shall pay eight-five percent (85%); the county shall pay fifteen percent (15%) of the nonfederal costs of all applicable services listed in this section.

(c) Copayment for Medicaid Services. The Department of Human Resources may establish copayment up to the maximum permitted by federal law and regulation.

(d) Medicaid and Aid to Families with Dependent Children Income Eligibility Standards. Effective January 1, 1990, the maximum net family annual income eligibility standards for Medicaid and Aid to Families with Dependent Children, and the Standard of Need for Aid to Families with Dependent Children shall be as follows.

Categorically Needy Medically Needy

Family Standard AFDC Payment

Size Of Need Level* AA,AB,AD*

1 $ 4,344 $ 2,172 $ 2,900

2 5,664 2,832 3,800

3 6,528 3,264 4,400

4 7,128 3,564 4,800

5 7,776 3,888 5,200

6 8,376 4,188 5,600

7 8,952 4,476 6,000

8 9,256 4,680 6,300

*Aid to Families with Dependent Children (AFDC); Aid to the Aged (AA); Aid to the Blind (AB); and Aid to the Disabled (AD).

The payment level for Aid to Families with Dependent Children shall be fifty percent (50%) of the standard of need.

These standards may be changed with the approval of the Director of the Budget with the advice of the Advisory Budget Commission.

(e) Spouse Responsibility. The Department of Human Resources, Division of Medical Assistance, may not consider the income or assets of the spouse of a person who is admitted as a long-term care patient in a certified public or private intermediate care or skilled nursing facility to be available to the institutionalized person. This provision will remain in effect until superseded by federal law under the Medicare Catastrophic Coverage Act of 1988, on September 1, 1989.

(f) Dental Coverage Limits. Dental services will be provided on a restricted basis in accordance with regulations developed by the Department. Funds for dental services shall be disbursed only with prior approval by the Department of Human Resources, Division of Medical Assistance, as required by this subsection. No prior approval shall be required for emergency services or routine services. Routine services are defined as examinations, X rays, prophylaxes, nonsurgical tooth extractions, amalgam fillings, and fluoride treatments. Prior approval shall be required for all other services and for routine services performed more than two times during a consecutive 12-month period. The Department of Human Resources shall adopt rules, as provided by the Administrative Procedure Act, to implement this subsection.

(g) Dispensing of Generic Drugs. Notwithstanding G.S. 90-85.27 through G.S. 90-85.31, under the Medical Assistance Program (Title XIX of the Social Security Act) a prescription order for a drug designated by a trade or brand name shall be considered to be an order for the drug by its established or generic name, except when the prescriber personally indicates, either orally or in his own handwriting on the prescription order, "dispense as written" or words of similar meaning. Generic drugs, when available in the pharmacy, shall be dispensed at a lower cost to the Medical Assistance Program rather than trade or brand name drugs, subject to the prescriber's "dispense as written" order as noted above.

As used in this subsection "brand name" means the proprietary name the manufacturer places upon a drug product or on its container, label or wrapping at the time of packaging; and "established name" has the same meaning as in section 502(e)(3) of the Federal Food, Drug and Cosmetic Act as amended, 21 U.S.C. § 352(e)(3).

(h) Exceptions to Service Limitations, Eligibility Requirements, and Payments. Service limitations, eligibility requirements, and payments, and payments bases in this section may be waived by the Department of Human Resources, with the approval of the Director of the Budget, to allow the Department to carry out pilot programs for prepaid health plans or community based services programs in accordance with plans approved by the U.S. Department of Health and Human Services, or when the Department determines that such a waiver will result in a reduction in the total Medicaid costs for the recipient.

(i) Volume Purchase Plans and Single Source Procurement. The Department of Human Resources, Division of Medical Assistance, may, subject to the approval of a change in the State Medicaid Plan, contract for services, medical equipment, supplies, and appliances by implementation of volume purchase plans, single source procurement or other similar processes in order to improve cost containment.

(j) Cost Containment Programs. The Department of Human Resources, Division of Medical Assistance, may undertake cost containment programs including preadmissions to hospitals and prior approval for certain outpatient surgeries before they may be performed in an inpatient setting.

(k) For all Medicaid eligibility classifications for which the federal poverty level is used as an income limit for eligibility determination, the income limits will be updated each July 1 immediately following publication of federal poverty guidelines.

(l) Effective January l, 1988, the Department of Human Resources shall provide Medicaid to 19-, 20-, and 21-year-olds in accordance with federal rules and regulations.

(m) The Department of Human Resources shall provide coverage to pregnant women and children according to the following schedule:

(1) Pregnant women with incomes equal to or less than one hundred eighty-five percent (185%) of the federal poverty guidelines as revised each July shall be covered for Medicaid benefits;

(2) Infants under the age of 1 with family incomes equal to or less than one hundred eighty-five percent (185%) of the federal poverty guidelines as revised each July l, shall be covered for Medicaid benefits;

(3) Children aged 1 through 5 with family incomes equal to or less than one hundred thirty-three percent (133%) of the federal poverty guidelines as revised each July 1 shall be covered for Medicaid benefits; and

(4) Children aged 6 through 18 who were born after September 30, 1983, with family incomes equal to the federal poverty guidelines as revised each July 1, shall be covered for Medicaid benefits.

Services to pregnant women eligible under this section continue throughout the pregnancy but include only those related to pregnancy and to those other conditions determined by the Department as conditions that may complicate pregnancy. In order to reduce county administrative costs and to expedite the provision of medical services to pregnant women, to infants, and to children eligible under this section, no resources test shall be applied.

(n) The Department of Human Resources may use Medicaid funds budgeted from program services to support the cost of administrative activities to the extent that these administrative activities produce a net savings in services requirements. Administrative initiatives funded by this section shall be first approved by the Office of State Budget and Management.

Requested by: Representatives Easterling, Nye

––-REDUCTIONS FROM INFLATIONARY INCREASES

Sec. 94. The Department of Human Resources, Division of Medical Assistance, shall effect the reductions of $10,700,000 for the 1991-92 fiscal year and $10,700,000 for the 1992-93 fiscal year from inflationary increases in the following categories of services:

(1) Inpatient Hospital;

(2) Specialty Hospital Inpatient;

(3) Mental Hospital Inpatient - Private;

(4) Skilled Nursing;

(5) Intermediate Nursing;

(6) Intermediate Care Facilities for the Mentally Retarded - Private;

(7) Physician, Dental, Chiropractor, Optometrist, and Podiatrist;

(8) Drugs - Profession Services Fee;

(9) Home Health;

(10) Personal Care Service;

(11) Community Alternative Program (CAP).

The Division of Medical Assistance shall implement these reductions and shall adopt rules necessary to reflect these reductions and accomplish these savings at the earliest appropriate date for each service type.

Requested by: Representatives Nye, Easterling

––-GENERAL REDUCTIONS

Sec. 95. The Department of Human Resources, Division of Medical Assistance, shall effect the reduction of $3,200,000 for the 1991-92 fiscal year and of $3,200,000 for the 1992-93 fiscal year and shall adopt rules necessary to reflect these reductions and accomplish these savings at the earliest appropriate date.

Requested by: Representatives Easterling, Nye

––-FAMILY SUPPORT ACT

Sec. 96. (a) Section 229 of Chapter 1014 of the 1985 Session Laws is amended by adding a new subsection to read:

"( d) If any provision of this section is held invalid by a court of competent jurisdiction, the invalidity shall not affect the remaining provisions of this section that can be given effect."

(b) The General Assembly finds that it is in the best interest of the State and of all its citizens to encourage recipients of Aid to Families with Dependent Children to obtain jobs and become self-sufficient. It further finds that, by continuing medical assistance and providing limited wage assistance to those recipients who are working, the State will make it possible to help many recipients to be able to keep their jobs, support their families, and become self-sufficient.

(c) The Social Services Commission shall adopt rules to change the way it budgets Aid to Families with Dependent Children payments that will result in more recipients being able to find work and keep working. These rules shall include subtracting countable income from the State standard of need, and paying a percentage of the difference. The percentage that shall be applied to determine the amount of assistance shall be the same percentage set in the Current Operations Appropriations Act that determines the Aid to Families of Dependent Children payment level from the standard of need.

Requested by: Representatives Nye, Easterling

––-RETROSPECTIVE ACCOUNTING ADJUSTMENT

Sec. 97. The Department of Human Resources shall use funds appropriated to it by this Title to provide a State supplementary payment to Aid to Families of Dependent Children households adversely affected by the retrospective accounting procedure as allowed under section 403(a) of the Social Security Act as amended by section 157(a) of the Tax Equity and Fiscal Responsibility Act of 1982. The amount of the State supplement shall not exceed the maximum payment standard for the Aid to Families with Dependent Children Program.

Requested by: Representatives Easterling, Nye

––-AFDC/WOMEN IN THIRD TRIMESTER OF PREGNANCY ADJUSTMENT

Sec. 98. The Division of Social Services, Department of Human Resources, shall provide Aid to Families with Dependent Children to women in their third trimester of pregnancy regardless of whether these women have children, if they otherwise qualify for these payments.

Requested by: Representatives Nye, Easterling

––-ADOPTION SUBSIDY

Sec. 99. The adoption subsidy paid monthly by the Division of Social Services, Department of Human Resources, to eligible families who adopt hard-to-place children shall be established at $150.00 per child per month.

Requested by: Representatives Easterling, Nye

––-FOSTER CARE

Sec. 100. Funds appropriated to the Department of Human Resources by this Title for foster care assistance rates shall be used to set the rates at $265.00 per child per month.

Requested by: Representatives Nye, Easterling

––-EMERGENCY ASSISTANCE

Sec. 101. The Division of Social Services, Department of Human Resources, shall not expend more State funds than are appropriated for Emergency Assistance by this Title. Within this limit, Emergency Assistance benefits shall not exceed $300.00 per year per family, payable over a 30-day period. After this 30-day period, Emergency Assistance benefits are not available to that family until 12 months have elapsed from the initial authorization date. The family may have no more than a total of $300.00 in liquid assets in order to qualify for any Emergency Assistance pursuant to this section.

It is the intent of the General Assembly that these Emergency Assistance funds shall only be used to provide assistance to persons to alleviate an emergency. In evaluating whether an emergency exists, the county departments of social services shall apply prudent judgment to evaluate each emergency on its own merits. Prudent judgment will permit departments of social services to consider whether the client created the emergency and whether the assistance will resolve the emergency.

Requested by: Representatives Easterling, Nye

––-FOOD STAMP OUTREACH

Sec. 102. The Department of Human Resources shall continue a Food Stamp Outreach Program. Under the Program, the Department shall inform public and private agencies, community groups, potentially eligible persons, and the general public regarding the eligibility requirements of the Food Stamp Program. The Department shall maintain a referral list of public and private agencies, community groups, and interested persons and organizations who serve low-income persons. The Department shall inform these agencies and persons regarding the Food Stamp Program and changes in the law that affect client eligibility or the extent of benefits. The Department shall develop and distribute informational materials, such as public service announcements, brochures, pamphlets, posters, and correspondence.

Requested by: Representatives Nye, Easterling

––-CHILD PROTECTIVE SERVICES

Sec. 103. (a) Of the funds appropriated to the Department of Human Resources, Division of Social Services for Child Protective Services in this Title, the Division shall use up to $175,900 in each fiscal year of the 1991-93 biennium to provide consultation and technical assistance to county departments of social services to strengthen and support local child protective services. The remaining funds shall be allocated to the county departments of social services as follows:

(1) $10,000 for the 1991-92 fiscal year and $10,000 for the 1992-93 fiscal year shall be allocated to each of the 15 county departments that did not receive an allocation of the 1985 State appropriation for child protective services;

(2) In addition, each of the 100 county departments shall receive an allocation of $10,000 for the 1991-92 fiscal year and $10,000 for the 1992-93 fiscal year;

(3) The balance of available funds shall be allocated to each county department based upon the percentage that the total number of abuse and neglect reports within that county represents to the statewide total number of abuse and neglect reports. These percentages shall be computed from the reports received by the Central Registry of Abuse and Neglect cases for the next two prior fiscal years.

(b) Funds allocated to county departments of social services pursuant to this section shall be used for staff carrying out investigations of reports of child abuse or neglect or providing protective or preventive services in cases in which the department confirms neglect, abuse, or dependency. If a county department demonstrates that it has adequate protective services staff, these funds may be used to purchase or provide treatment and other support services to children and their families in confirmed cases. All expenditures shall be directly in support of the department's program of protective services for children. These funds shall not be used to supplant any Social Services Block Grant funds or county appropriations previously budgeted for protective services for children.

(c) The Department of Human Resources, Division of Social Services, shall establish criteria and guidelines to assure that the allocations to county departments of social services are used in accordance with the intent and purposes of this section.

Requested by: Representatives Easterling, Nye

––-CHILD CARING INSTITUTION REIMBURSEMENT

Sec. 104. (a) Funds appropriated to the Department of Human Resources, Division of Social Services, in this Title for the 1992-93 fiscal year for the monthly payment of State funds to private residential child care agencies for the provision of foster care shall be disbursed in accordance with rules established by the Social Services Commission pursuant to G.S. 143B-153(2)d., and in accordance with the following requirements:

(1) Only those child caring agencies that have been receiving funds from the Division of Social Services that have been appropriated as grants-in-aid to non-State agencies shall be included in the disbursement unless additional State or federal funds are made available to permit disbursement to new child caring agencies. A new child caring agency may receive funds pursuant to this section only if the additional State or federal funds made available are sufficient to allow disbursements to the new agency without reducing the disbursement to the agencies already receiving funds;

(2) The formula for the disbursement of these funds shall be based on the assumption that the State is committed to paying allowable foster care maintenance costs and shall do so, to the extent that State and federal funds are available; and

(3) In any year that State and federal funds are not sufficient to pay each agency's allowable foster care maintenance costs, each participating agency's rate shall be reduced by the same percentage, so that each agency receives the same percentage of its allowable costs.

(b) This section becomes effective July 1, 1992.

Requested by: Representatives Easterling, Nye

––-CHILD-PLACING AGENCIES CHANGE

Sec. 105. G.S. 143B-153(2) reads as rewritten:

"(2) The Social Services Commission shall have the power and duty to establish standards and adopt rules and regulations:

a. For the programs of public assistance established by federal legislation and by Article 2 of Chapter 108A of the General Statutes of the State of North Carolina with the exception of the program of medical assistance established by G.S. 108A-25(b);

b. To achieve maximum cooperation with other agencies of the State and with agencies of other states and of the federal government in rendering services to strengthen and maintain family life and to help recipients of public assistance obtain self-support and self-care;

c. For the placement and supervision of dependent and delinquent children and payment of necessary costs of foster home care for needy and homeless children as provided by G.S. 108A-48; and

d. For the payment of ~~grants-in-aid and other~~ State funds to private child-caring institutions.The payment and distribution of grants-in-aid funds to private child-caring institutions shall be regulated by the grant-in-aid (GIA) formula. This formula and any modifications of this formula shall be approved by the Advisory Budget Commission prior to its implementation. child-placing agencies as defined in G.S. 131D-10.2(4) and residential child care facilities as defined in G.S. 131D-10.2(13) for care and services provided to children who are in the custody or placement responsibility of a county department of social services."

Requested by: Representatives Nye, Easterling

––-LIMITATIONS ON STATE ABORTION FUND

Sec. 106. Section 93 of Chapter 479 of the 1985 Session Laws, as amended by Section 75 of Chapter 738 of the 1987 Session Laws, as amended by Section 72 of Chapter 500 of the 1989 Session Laws, as amended by Section 79 of Chapter 1066 of the 1989 Session Laws, Regular Session 1990, shall remain in effect on and after July 1, 1991, with the following exception:

Any reference in Section 93 of Chapter 479 of the 1985 Session Laws, as amended, to the 1985-86 fiscal year or the 1986-87 fiscal year applies to the 1991-92 fiscal year and the 1992-93 fiscal year.

Requested by: Representatives Easterling, Nye

––-WILLIE M.

Sec. 107. (a) Legislative Findings. The General Assembly finds:

(1) That there is a need in North Carolina to provide appropriate treatment and education programs to children under the age of 18 who suffer from emotional, mental, or neurological handicaps accompanied by violent or assaultive behavior;

(2) That children meeting these criteria have been identified as a class in the case of Willie M., et al. vs. Martin, et al., formerly Willie M., et al. vs. Hunt, et al.; and

(3) That these children have a need for a variety of services, in addition to those normally provided, that may include but are not limited to residential treatment services, educational services, and independent living arrangements.

(b) Funds appropriated by the General Assembly to the Department of Human Resources for serving members of the Willie M. Class shall be expended only for programs serving members of the Willie M. Class identified in Willie M., et al. vs. Martin, et al., formerly Willie M., et al. vs. Hunt, et al., including evaluations of potential class members. The Department shall reallocate these funds among services to Willie M. Class members during the year as it deems advisable in order to use the funds efficiently in providing appropriate services to Willie M. Class children.

(c) Funds for Department of Public Education. Funds appropriated to the Department of Public Education in this act for members of the Willie M. Class, are to establish a supplemental reserve fund to serve only members of the class identified in Willie M., et al. vs. Martin, et al., formerly Willie M., et al. vs. Hunt, et al. These funds shall be allocated by the State Board of Education to the local education agencies to serve those class members who were not included in the regular average daily membership and the census of children with special needs, and to provide the additional program costs which exceed the per pupil allocation from the State Public School Fund and other State and federal funds for children with special needs.

(d) The Department of Human Resources shall continue to implement its prospective unit cost reimbursement system and shall ensure that unit cost rates reflect reasonable costs by conducting cost center service type rate comparisons and cost center line item budget reviews as may be necessary, and based upon these reviews and comparisons, the Department shall reduce and/or cap rates to programs which are significantly higher than those rates paid to other programs for the same service.

Any exception to this requirement shall be approved by the Director of the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, and shall be reported in the Department's annual joint report to the Governor and the General Assembly and in any periodic report the Department may make to the Joint Legislative Commission on Governmental Operations.

(d1) The Department of Human Resources shall implement a process to review those cases for whom treatment has been recommended whose annual cost is anticipated to be in excess of one hundred fifty percent (150%) of the average annual per client expenditure of the previous fiscal year and shall take actions to reduce these treatment costs where appropriate.

(e) Reporting Requirements. The Department of Human Resources and the Department of Public Education shall submit, by May 1 of each fiscal year, a joint report to the Governor and the General Assembly on the progress achieved in serving members of the Willie M. Class. The report shall include the following unduplicated data for each county: (i) the number of children nominated for the Willie M. Class; (ii) the number of children actually identified as members of the Class in each county; (iii) the number of children served as members of the Class in each county; (iv) the number of children who remain unserved or for whom additional services are needed in order to be determined to be appropriately served; (v) the types and locations of treatment and education services provided to Class members; (vi) the cost of services, by type, to members of the Class and the maximum and minimum rates paid to providers for each service; (vii) the number of cases whose treatment costs were in excess of one hundred fifty percent (150%) of the average annual per client expenditure; (viii) information on the impact of treatment and education services on members of the Class; (ix) an explanation of, and justification for, any waiver of departmental rules that affect the Willie M. program; and (x) the total State funds expended, by program, on Willie M. class members, other than those funds specifically appropriated for the Willie M. programs and services.

(e1) From existing funds available to it, the Department of Human Resources shall begin a process to document and assess individual class members' progress through the continuum of services. Standardized measures of functioning shall be administered periodically:

(1) In the 1991-92 fiscal year, to a representative sample of class members;

(2) In the 1992-93 fiscal year and thereafter, to each member of the class, and the information generated from these measures shall be used to assess client progress and program effectiveness,

(f) The Departments of Human Resources and Public Education shall provide periodic reports of expenditures and program effectiveness on behalf of the Willie M. Class to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division. As part of these reports, the Departments shall explain measures they have taken to control and reduce program expenditures.

(g) In fulfilling the responsibilities vested in it by the Constitution of North Carolina, the General Assembly finds:

(1) That the General Assembly has evaluated the known needs of the State and has endeavored to satisfy those needs in comparison to their social and economic priorities; and

(2) That the funds appropriated will enable the development and implementation of placement and services for the class members in Willie M., et al. vs. Martin, et al., formerly Willie M., et al. vs. Hunt, et al., within a reasonable period of time considered within the context of the needs of the class members, the other needs of the State and the resources available to the State.

(h) The General Assembly supports the efforts of the responsible officials and agencies of the State to meet the requirements of the court order in Willie M., et al. vs. Martin, et al., formerly Willie M., et al. vs. Hunt, et al. To ensure that Willie M. class members are appropriately served, no State funds shall be expended on placement and services for Willie M. class members except:

(1) Funds specifically appropriated by the General Assembly for the placement and services of Willie M. class members; and

(2) Funds for placement and services for which Willie M. class members are otherwise eligible.

This limitation shall not preclude the use of unexpended Willie M. funds from prior fiscal years to cover current or future needs of the Willie M. program subject to approval by the Director of the Budget. These Willie M. expenditures shall not be subject to the requirements of G.S. 143-18.

(i) Notwithstanding any other provision of law, if the Department of Human Resources determines that a local program is not providing appropriate services to members of the class identified in Willie M., et al. vs. Martin, et al., formerly Willie M., et al. vs. Hunt, et al., the Department may ensure the provision of these services through contracts with public or private agencies or by direct operation by the Department of such programs.

(j) The Department of Human Resources and the Department of Public Instruction shall submit a plan to the General Assembly by April 1, 1992, which outlines specific steps which are to be taken, within a specified time period, and within existing resources, to meet its obligation of providing appropriate services to class members. As part of this plan, the Department shall propose when and how the Willie M. program shall become fully self-regulating and self-monitoring.

Requested by: Representatives Nye, Easterling

––-WILLIE M. AUDIT CONTINUED

Sec. 108. The Office of State Auditor shall conduct a follow-up study of its 1990 performance audit of the Willie M. program to determine, along with other issues the Auditor considers appropriate, the following:

(1) To what extent the range of reimbursement rates paid to area programs for similar types of services has been reduced;

(2) To what extent the process implemented by the Department of Human Resources to review high-cost Willie M. clients has been effective in reducing the number of these clients and the costs of providing these clients services; and

(3) To what extent a client evaluation process has been implemented by the Department of Human Resources and with what results.

The Auditor may also conduct an analysis of costs associated with providing services to a sample of clients, including high-cost clients, to determine the justification of the costs incurred. The Auditor shall submit the findings of this follow-up study of the Willie M. program to the General Assembly by February 15, 1993.

Requested by: Representatives Easterling, Nye

––-THOMAS S.

Sec. 109. (a) Funds appropriated to the Department of Human Resources in this Title for the 1991-92 fiscal year and the 1992-93 fiscal year for members of the Thomas S. Class as identified in Thomas S., et al. vs. Flaherty, shall be placed in a reserve in the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, and shall be expended only for programs serving Thomas S. Class members or for services for those clients who are likely to become class members. To ensure that Thomas S. Class members are appropriately served, no State funds shall be expended on placement and services for Thomas S. Class members except:

(1) Funds specifically appropriated by the General Assembly for the placement and services of Thomas S. Class members; and

(2) Funds for placement and services for which Thomas S. Class members are otherwise eligible.

(b) The Department of Human Resources shall provide periodic reports of funds expended and services performed on behalf of members of the Thomas S. Class and on behalf of those clients who are likely to become class members to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office.

(c) Notwithstanding any other provision of law, if the Department of Human Resources determines that a local program is not providing minimally adequate services to members of the class identified in Thomas S., et al. vs. Flaherty, the Department may ensure the provision of these services through contracts with public or private agencies or by direct operation by the Department of such programs.

Requested by: Representatives Nye, Easterling

––-TRANSFERS OF CERTAIN FUNDS AUTHORIZED

Sec. 110. In order to assure maximum utilization of funds in county departments of social services, county or district health agencies, and area mental health, mental retardation, and substance abuse authorities, the Director of the Budget is authorized to transfer excess funds appropriated to a specific service or program or fund, whether specified in a block grant plan or General Fund appropriation, into another service or program or fund for local services within the budget of the respective State agency.

The Office of State Budget and Management shall report quarterly to the Joint Legislative Commission on Governmental Operations on each transfer authorized by this section.

Requested by: Representatives Easterling, Nye

––-MIXED BEVERAGE TAX FOR AREA MENTAL HEALTH PROGRAMS

Sec. 111. Funds received by the Department of Human Resources for the tax levied on mixed beverages under G.S. 18B-804(b)(8) shall be expended by the Department of Human Resources as prescribed by G.S. 18B-805(h). These funds shall be matched by local funds in accordance with the State/local ratio established by the current area mental health matching formula. These funds shall be allocated to the area mental health programs for substance abuse services on a per capita basis as determined by the Office of State Budget and Management's most recent estimates of county populations.

Requested by: Representatives Nye, Easterling

––-ADAP TRANSPORTATION FUNDS

Sec. 112. (a) Reimbursement of Adult Developmental Activity Programs for transportation of clients shall be based on a cost per client basis. There shall be different levels of reimbursement based on documented cost levels.

(b) In reimbursing Adult Developmental Activity Programs, the Department of Human Resources shall base the reimbursement on the distribution by cost range developed by the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services in accordance with its most recently conducted cost study.

Requested by: Representatives Easterling, Nye

––-SPECIALIZED RESIDENTIAL CENTERS' BED CONVERSION

Sec. 113. Funds made available as a result of the conversion of State supported beds in specialized residential centers to ICF/MR beds shall be used to increase the State subsidy provided to centers. Funds made available to centers by this section shall be used, as they become available, to increase the subsidy rate to sixty-five percent (65%) of the statewide average cost of providing this service based on the most recent Specialized Community Residential Cost Study.

Funds made available in addition to those needed to increase the subsidy rate may be transferred to the Department of Human Resources, Division of Medical Assistance, as needed to be used as a State match for the converted ICF/MR beds.

Requested by: Representatives Nye, Easterling

––-LIABILITY INSURANCE

Sec. 114. The Secretary of the Department of Human Resources, the Secretary of the Department of Environment, Health, and Natural Resources, and the Secretary of the Department of Correction may provide medical liability coverage not to exceed $1,000,000 on behalf of employees of the Departments licensed to practice medicine or dentistry. This coverage may include commercial insurance or self-insurance and shall cover these employees for their acts or omissions only while they are engaged in providing medical and dental services pursuant to their State employment.

The coverage provided under this section shall not cover any employee for any act or omission that the employee knows or reasonably should know constitutes a violation of the applicable criminal laws of any state or the United States, or that arises out of any sexual, fraudulent, criminal or malicious act, or out of any act amounting to willful or wanton negligence.

The coverage provided pursuant to this section shall not require any additional appropriations and shall not apply to any individual providing contractual service to the Department of Human Resources, the Department of Environment, Health, and Natural Resources, or the Department of Correction.

Requested by: Representatives Easterling, Nye

––-NON-MEDICAID REIMBURSEMENT

Sec. 115. Providers of medical services under the various State programs, other than Medicaid, offering medical care to citizens of the State shall be reimbursed at rates no more than those under the North Carolina Medical Assistance Program.

The Department of Human Resources may reimburse hospitals at the full prospective per diem rates without regard to the Medical Assistance Program's annual limits on hospital days. When the Medical Assistance Program's per diem rates for inpatient services and its interim rates for outpatient services are used to reimburse providers in non-Medicaid medical service programs, retroactive adjustments to claims already paid shall not be required.

Notwithstanding the provisions of paragraph one of this section, the Department of Human Resources may negotiate with providers of medical services under the various Department of Human Resources' programs, other than Medicaid, for rates as close as possible to Medicaid rates for the following purposes: contracts or agreements for medical services and purchases of medical equipment and other medical supplies. These negotiated rates are allowable only to meet the medical needs of its non-Medicaid eligible patients, residents, and clients who require these services that cannot be provided when limited to the Medicaid rate.

Maximum net family annual income eligibility standards for services in these programs shall be as follows:

Family Medical Eye All

Size Care Adults Rehabilitation Other

1 $4,860 $ 8,364 $4,200

2 5,940 10,944 5,300

3 6,204 13,500 6,400

4 7,284 16,092 7,500

5 7,824 18,648 7,900

6 8,220 21,228 8,300

7 8,772 21,708 8,800

8 9,312 22,220 9,300

The eligibility level for children in the Medical Eye Care Program in the Division of Services for the Blind shall be one hundred percent (100%) of the federal poverty guidelines, as revised annually by the United States Department of Health and Human Services and in effect on July 1 of each fiscal year.

The Department of Human Resources shall contract at, or as close as possible to, Medicaid rates for medical services provided to residents of State facilities of the Department.

Requested by: Representatives Nye, Easterling

––-JOHN UMSTEAD HOSPITAL - PLANNING

Sec. 116. The Department of Human Resources may use funds that become available to it through gifts, federal or private grants, receipts from federal programs, or any other source in the 1991-92 fiscal year, for advance planning through the working drawings phase for a psychiatric facility at John Umstead Hospital.

Requested by: Representatives Easterling, Nye

––-DIVISION OF MENTAL HEALTH, DEVELOPMENTAL DISABILITIES, AND SUBSTANCE ABUSE SERVICES BUDGET CODE CONSOLIDATION

Sec. 117. Subject to the approval of the Office of State Budget and Management, in order to operate more efficiently, the Department of Human Resources may consolidate the appropriate budget codes of the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services and the institutions operated by the Division. Any consolidation shall ensure that each institution budget is clearly identifiable as a separate fund within the consolidated budget code or codes. To implement this change, the General Assembly approves current budget code structure of the Division's and institutions' budgets for the 1991-93 fiscal biennium and authorizes the Department to proceed with appropriate consolidation of these budget codes during the 1991-93 fiscal biennium.

Requested by: Representatives Nye, Easterling

––-DEVELOPMENTAL DAY CENTERS GRANT-IN-AID

Sec. 118. Of the funds appropriated in this Title, to the Department of Human Resources, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, the sum of $2,260,470 for the 1991-92 fiscal year is transferred to the Department of Public Instruction for handicapped children aged 3 through 4 years who have been identified through Division of Mental Health, Developmental Disabilities, and Substance Abuse Services statewide services and who are served in developmental day centers. These funds shall be used to contract with area mental health, developmental disabilities, and substance abuse authorities or with public or private nonprofit developmental day centers to continue to serve handicapped children aged 3 through 4 years who are identified as needing developmental day services.

The Department of Public Instruction shall report to the General Assembly and to the Fiscal Research Division by May 1, 1992, regarding the use of the funds transferred to it by this section.

Requested by: Representatives Easterling, Nye

––-CAREGIVER SUPPORT SHARING

Sec. 119. (a) Of the funds appropriated to the Division of Aging, Department of Human Resources, by this Title for the 1991-93 fiscal biennium, the sum of $1,008,000 for the 1991-92 fiscal year and the sum of $1,008,000 for the 1992-93 fiscal year shall be used for services that support family caregivers of elderly persons with functional disabilities, whether physical or mental, who want to stay in their homes rather than be institutionalized but who need assistance with the activities of daily living in order to remain at home. The services that may be purchased from funds received under this section include:

(1) Respite Care;

(2) Adult Day Care;

(3) Stipends and other related costs for senior companions, modeled after the federal Senior Companion Program; and

(4) Other related services that meet needs not now adequately addressed by the services described in subdivisions (1) through (3) of this subsection.

(b) The Division of Aging shall expend funds for these services according to the population of persons 70 years of age or older in each region. The Division of Aging shall use a maximum of ninety-five percent (95%) of the funds it receives under this section for the services described in subdivisions (1) through (4) of subsection (a) of this section and may only use a maximum of five percent (5%) for technical assistance as described in subsection (c) of this section. The Division of Aging shall choose providers in accordance with procedures under the Older Americans Act. Funds allocated by the Division pursuant to this section shall be allocated by October 1 of each fiscal year. Effective July 1, 1992, local matching requirements shall be no less than ten percent (10%). State funding shall not exceed ninety percent (90%) of the reimbursable costs.

(c) The Division of Aging may contract for technical assistance. The technical assistance shall include training assistance, coordination of various service delivery and funding sources, and ideas for innovative ways to build a lasting system of services for family caregivers.

Requested by: Representatives Nye, Easterling

––-IN-HOME AGING SERVICES

Sec. 120. Of the funds appropriated to the Division of Aging, Department of Human Resources, by this Title for the 1991-93 fiscal biennium, the sum of $720,000 for the 1991-92 fiscal year and the sum of $720,000 for the 1992-93 fiscal year shall be used to provide funds for additional in-home aide services that enable the frail elderly to remain in their homes and avoid institutionalization.

The Division shall administer the in-home aide services and activities funded by this section. The Division of Aging shall choose in-home service providers in accordance with procedures under the Older Americans Act and shall include the following criteria: documented capacity to provide care, adequacy of quality assurance, training, supervision, abuse prevention complaint mechanisms, and costs. All funds allocated by the Division pursuant to this section shall be allocated by October 1 of each fiscal year on the same basis as funding under the Older Americans Act. Effective July 1, 1992, local matching requirements shall be no less than ten percent (10%). State funding shall not exceed ninety percent (90%) of the reimbursable costs.

Requested by: Representatives Easterling, Nye

––-SENIOR CENTER OUTREACH

Sec. 121. (a) Of the funds appropriated to the Department of Human Resources, Division of Aging, by this Title for the 1991-93 fiscal biennium, $403,800 for the 1991-92 fiscal year and $403,800 for the 1992-93 fiscal year shall be used by the Division of Aging to enhance senior center programs as follows:

(1) To test "satellite" services provided by existing senior centers to unserved or underserved areas; or

(2) To provide start-up funds for new senior centers.

All of these funds shall be allocated by October 1 of each fiscal year.

(b) Prior to funds being allocated pursuant to this section for start-up funds for a new senior center, the county commissioners of the county in which the new center will be located shall:

(1) Formally endorse the need for such a center;

(2) Formally agree on the sponsoring agency for the center; and

(3) Make a formal commitment to use local funds to support the ongoing operation of the center.

(c) Effective July 1, 1992, local matching requirements shall be no less than ten percent (10%). State funding shall not exceed ninety percent (90%) of reimbursable costs.

Requested by: Representatives Nye, Easterling

––-FUNDS TO MATCH FEDERAL FUNDS FOR AGING

Sec. 122. The Division of Aging, Department of Human Resources, may use funds appropriated in this Title to provide the State matching requirement necessary to draw down federal money available through Title III-D of the Older Americans Act for in-home services for the frail elderly, including those with Alzheimer's Disease.

Requested by: Representatives Easterling, Nye

––-DAY CARE FUNDS MATCHING REQUIREMENT

Sec. 123. No local matching funds may be required by the Department of Human Resources as a condition of any locality's receiving any State day care funds appropriated by this act unless federal law requires such a match.

Requested by: Representatives Nye, Easterling

––-DAY CARE

Sec. 124. The Department of Human Resources shall distribute the funds appropriated and otherwise available to it for the purchase of slots in day care for minor children of needy families so as to serve the greatest number of children possible.

Requested by: Representatives Easterling, Nye

––-DAY CARE RATES

Sec. 125. (a) Rules for the monthly schedule of payments for the purchase of day care services for low-income children shall be established by the Social Services Commission pursuant to G.S. 143B-153(8)a., in accordance with the following requirements:

(1) For day care facilities, as defined in G.S. 110-86(3), in which fewer than fifty percent (50%) of the enrollees are subsidized by State or federal funds, the State shall continue to pay the same fee paid by private paying parents for a child in the same age group in the same facility.

(2) Facilities in which fifty percent (50%) or more of the enrollees are subsidized by State or federal funds may choose annually one of the following payment options:

a. The facility's payment rate for fiscal year 1985-86; or

b. The market rate, as calculated annually by the Division of Facility Services' Child Day Care Section in the Department of Human Resources.

(3) A market rate shall be calculated for each county and for each age group or age category of enrollees and shall be representative of fees charged to unsubsidized private paying parents for each age group of enrollees within the county. The county market rates shall be calculated from facility fee schedules collected by the Child Day Care Section on a routine basis. The Section shall also calculate a statewide market rate for each age category. The Social Services Commission shall adopt rules to establish minimum county rates that use the statewide market rates as a reference point.

(4) Child day care homes as defined in G.S. 110-86(4) and individual child care arrangements may be paid the market rate for day care homes which shall be calculated at least biennially by the Child Day Care Section according to the method described in subsection (a)(3) of this section.

(b) Facilities licensed pursuant to Article 7 of Chapter 110 of the General Statutes may participate in the program that provides for the purchase of care in day care facilities for minor children of needy families. No separate licensing requirements may be used to select facilities to participate.

Day care homes from which the State purchases day care services shall meet the standards established by the Child Day Care Commission pursuant to G.S. 110-101 and G.S. 110-105.1. Individual child care arrangements shall meet the requirements established by the Social Services Commission.

(c) County departments of social services shall continue to negotiate with day care providers for day care services below those rates prescribed by subsection (a) of this section. County departments are directed to purchase day care services so as to serve the greatest number of children possible with existing resources.

(d) To simplify current day care allocation methodology and more equitably distribute State day care funds, the Department of Human Resources shall apply the following allocation formula to all noncategorical federal and State day care funds used to pay the costs of necessary day care for minor children of needy families:

(1) One-third of budgeted funds shall be distributed according to the county's population in relation to the total population of the State;

(2) One-third of the budgeted funds shall be distributed according to the number of children under 6 years of age in a county who are living in families whose income is below the State poverty level in relation to the total number of children under 6 in the State in families whose income is below the poverty level; and

(3) One-third of budgeted funds shall be distributed according to the number of working mothers with children under 6 years of age in a county in relation to the total number of working mothers with children under 6 in the State.

(e) Counties whose allocation, if based on previously used formulas, exceeds the allocation produced by the formula prescribed by this section may not have their allocations reduced to the level that results from application of the new formula. Counties whose allocation, if based on previously used formulas, is less than the allocation produced by the formula prescribed by this section shall continue to receive the proportional share of those funds that they received pursuant to appropriations for this purpose by the 1985 General Assembly. The formula prescribed by this section shall not be implemented unless additional State or federal funds are made available. The additional funds must be sufficient to apply the new formula without reducing any county's allocation below the previous year's initial allocation for child day care.

Requested by: Representatives Nye, Easterling

––-COMMUNITY ACTION PROGRAM FUNDS

Sec. 126. For the 1991-92 fiscal year and the 1992-93 fiscal year, all agencies designated as eligible agencies pursuant to G.S. 108A-24 that receive Community Service Block Grant Funds may use those funds for the administration of agency programs. The amount of those funds used for administration of agency programs shall be limited to ten percent (10%) of the total annual budget of the agency as certified in the prior year's audit of the agency. The Department of Human Resources shall report annually to the Joint Legislative Commission on Governmental Operations and the Appropriations Committee on Human Resources beginning October 1, 1991, on the use of Community Service Block Grant Funds for administration of agency programs. The report shall show:

(1) The total budget for each community action agency or limited purpose agency by program-funding source;

(2) The amount of funds for administration provided by each program;

(3) The criteria for determining the amount of funds used for administrative expenses; and

(4) The number of persons served by each program.

Requested by: Representatives Easterling, Nye

––-DOMICILIARY RATE INCREASE

Sec. 127. Effective July 1, 1991, the maximum monthly rate for ambulatory residents in domiciliary care facilities shall be $766.00 and the maximum monthly rate for semiambulatory residents shall be $803.00. Effective July 1, 1992, the maximum monthly rates for ambulatory residents shall be increased to $777.00 and for semiambulatory residents to $814.00.

Requested by: Representatives Nye, Easterling

––-DOMICILIARY STATE/COUNTY SHARE OF COSTS

Sec. 128. Article 3 of Chapter 143B of the General Statutes is amended by adding a new section to read:

"§ 143B-139.5. Department of Human Resources; domiciliary State/county share of costs.

State funds available to the Department of Human Resources shall pay fifty percent (50%), and the counties shall pay fifty percent (50%) of the authorized rates for domiciliary care in homes for the aged and for family care homes including area mental health agency-operated or contracted-group homes."

Requested by: Representatives Easterling, Nye

––-DHR EMPLOYEES/IN-KIND MATCH

Sec. 129. Notwithstanding the limitations of G.S. 143B-139.4, the Secretary of the Department of Human Resources may assign employees of the Office of Rural Health and Resource Development to serve as in-kind match to nonprofit corporations working to establish health care programs that will improve health care access while controlling costs.

Requested by: Representatives Nye, Easterling

––-NO EYE CLINICS IN CERTAIN COUNTIES

Sec. 130. No funds may be expended by the Division of Services for the Blind, Department of Human Resources, to hold eye clinics in any county in which an optometrist or ophthalmologist is willing to perform the services that would otherwise be performed by the clinic.

Requested by: Representatives Easterling, Nye

––-COMMUNITY-BASED ALTERNATIVES PARTICIPATION

Sec. 131. County governments participating in the Community-Based Alternatives Program shall certify annually to the Division of Youth Services, Department of Human Resources, that Community-Based Alternatives Aid to Counties shall not be used to duplicate or supplant other programs within the county.

Requested by: Representatives Nye, Easterling

––-DEPARTMENT OF HUMAN RESOURCES PROGRAM FUNDS

Sec. 132. Notwithstanding the provisions of G.S. 143-23, the Secretary of the Department of Human Resources, with the approval of the Office of State Budget and Management, may use, to the extent possible, any funds appropriated or otherwise available to the Department in the 1991-92 fiscal year for the Mental Health Accounts Receivable/Billing System.

Requested by: Representatives Easterling, Nye

––-SHORT-TERM LOAN FUND FOR INTERMEDIATE CARE FACILITIES/MENTAL RETARDATION FACILITIES

Sec. 133. The Department of Human Resources may use funds that become available to it through gifts, federal or private grants, receipts from federal programs, or any other resource to develop a revolving short-term loan fund to assist area mental health, developmental disabilities, and substance abuse programs and their nonprofit contract agencies in establishing community ICF/MR facilities.

Requested by: Representatives Nye, Easterling

––-EXPANSION OF THE TARGET POPULATION FOR TASC SERVICES

Sec. 134. Treatment Alternatives to Street Crimes (TASC) services may include mentally ill offenders as well as substance abusing offenders.

Requested by: Representatives Easterling, Nye

––-DHR AUTHORIZATION FOR USE OF AVAILABLE FUNDS FOR RECRUITMENT OF HEALTH CARE PROFESSIONALS

Sec. 135. G.S. 122C-112(b) reads as rewritten:

"(b) The Secretary may:

(1) Acquire by purchase or otherwise in the name of the Department equipment, supplies, and other personal property necessary to carry out the mental health, developmental disabilities, and substance abuse programs;

(2) Sponsor training opportunities in the fields of mental health, developmental disabilities, and substance abuse;

(3) Promote and conduct research in the fields of mental health, developmental disabilities, and substance abuse;

(4) Provide technical assistance for the development and improvement of prevention services;

(5) Receive donations of money, securities, equipment, supplies, or any other personal property of any kind or description which shall be used by the Secretary for the purpose of carrying out mental health, developmental disabilities, and substance abuse programs. Any donations shall be reported to the Office of State Budget and Management as determined by that office;

(6) Accept, allocate, and spend any federal funds for mental health, developmental disabilities, and substance abuse activities that may be made available to the State by the federal government. This Chapter shall be liberally construed in order that the State and its citizens may benefit fully from these funds. Any federal funds received shall be deposited with the State Treasurer and shall be appropriated by the General Assembly for the mental health, developmental disabilities, or substance abuse purposes specified;

(7) Enter agreements authorized by G.S. 122C-346;

(8) Accept, allocate, and spend funds from the United States Department of Defense to operate mental health demonstration projects for families of the uniformed services. Demonstration projects shall be operated through an area authority. The operation of these demonstration projects may be accomplished through subcontracts with one or more private sector ~~providers.~~ providers; and

(9) Authorize funds for contracting with a person, firm, or corporation for aid or assistance in locating, recruiting, or arranging employment of health care professionals in any facility listed in G.S. 122C-181, notwithstanding the provisions of G.S. 126-18."

Requested by: Representative Nye

––-WILLIE M. SECURE TREATMENT FACILITY AUTHORIZATION

Sec. 136. G.S. 122C-181(a) reads as rewritten:

"(a) Except as provided in subsection (b) of this section, the Secretary shall operate the following facilities:

(1) For the mentally ill:

a. Cherry Hospital;

b. Dorothea Dix Hospital;

c. John Umstead Hospital; and

d. Broughton Hospital; and

(2) For the mentally retarded:

a. Caswell Center;

b. O'Berry Center;

c. Murdoch Center;

d. Western Carolina Center; and

e. Black Mountain Center; and

(3) For substance abusers:

a. Walter B. Jones Alcohol and Drug Abuse Treatment Center at Greenville;

b. Alcohol and Drug Abuse Treatment Center at Butner; and

c. Alcohol and Drug Abuse Treatment Center at Black Mountain; and

(4) As special care facilities:

a. Wilson Special Care Center;

b. Whitaker School; ~~and~~

c. Wright ~~School~~. School; and

d. Butner Adolescent Treatment Center."

Requested by: Representatives Nye, Easterling

––-EARLY EDUCATION/HANDICAPPED/FUNDS

Sec. 137. The Department of Human Resources shall ensure that, by October 1, 1991, all types of early intervention services referenced in G.S. 122C-3(13a), and any other such services the Secretary of Human Resources, in cooperation with the other appropriate agencies and upon the advice of the Interagency Coordinating Council for Handicapped Children from Birth to Five Years of Age, considers necessary, shall be available to all eligible infants and toddlers and their families, as defined in G.S. 122C-3(13a).

Requested by: Representatives Diamont, Easterling, and Nye

––-CHILD PROTECTIVE SERVICES NON-SUPPLANT REQUIREMENT

Sec. 138. The Department of Human Resources, Division of Social Services shall ensure that local county departments of social services do not reduce federal fund disbursements or county appropriations for child protective services because they have received State appropriations for that purpose. The Department shall monitor local agency compliance with this provision and report its findings to the General Assembly by May 1, 1992.

PART XXIII.––-DEPARTMENT OF AGRICULTURE

Requested by: Representatives Ethridge, H. Hunter

––-AGRICULTURE TO MARKET FOREST PRODUCTS

Sec. 139. The Department of Agriculture shall market forest products through the Department's marketing programs.

PART XXIV.––-DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT

Requested by: Representatives Ethridge, H. Hunter

––-MAIN STREET PROGRAM RESTRICTIONS

Sec. 140. (a) G.S. 143B-472.35(e) reads as rewritten:

"(e) A Main Street City that is selected may not receive a grant plus any loans pursuant to this act totaling less than ~~one hundred thousand dollars ($100,000)~~ twenty thousand dollars ($20,000) or more than three hundred thousand dollars ($300,000)."

(b) Notwithstanding G.S. 143B-472.35(b), the Department of Economic and Community Development may transfer not more than $40,000 of interest earnings credited to the Main Street Financial Incentive Fund pursuant to G.S. 143B-472.35(a), from the Fund to the North Carolina Main Street Center Program operating budget for fiscal year 1991-92.

(c) Notwithstanding G.S. 143B-472.35, the Department of Economic and Community Development shall transfer $100,000 of interest earnings in the Main Street Financial Incentive Fund from the Fund to the General Fund for fiscal year 1991-92. The Department shall transfer funds pursuant to this subsection on July 1, 1991.

Requested by: Representatives Ethridge, H. Hunter

––-WORKER TRAINING TRUST FUND

Sec. 141. (a) There is appropriated from the Worker Training Trust Fund to the Employment Security Commission of North Carolina the sum of $5,459,673 for the 1991-92 fiscal year and the sum of $6,059,673 for the 1992-93 fiscal year for the operation of local offices at the 1986-87 level of service.

(b) Notwithstanding G.S. 96-5(c), there is appropriated from the Special Employment Security Administration Fund to the Employment Security Commission of North Carolina, the sum of $2,000,000 for the 1991-92 fiscal year and the sum of $2,000,000 for the 1992-93 fiscal year for administration of the Veterans Employment Program, Employment Services Program, and Unemployment Insurance Program.

(c) Supplemental federal funds or other additional funds received by the Employment Security Commission for similar purposes shall be expended prior to the expenditure of funds appropriated by this section.

(d) Notwithstanding the provisions of G.S. 96-5(f), there is appropriated from the Worker Training Trust Fund to the following agencies the following sums for the 1991-92 and the 1992-93 fiscal years for the following purposes:

(1) $3,000,000 for the 1991-92 fiscal year and $2,400,000 for the 1992-93 fiscal year to the Department of Economic and Community Development, Division of Employment and Training, for the Employment and Training Grant Program.

(2) $500,000 for the 1991-92 fiscal year and $500,000 for the 1992-93 fiscal year to the North Carolina Department of Labor for customized training of the unemployed and the working poor for specific jobs needed by employers through the Department's Pre-Apprenticeship Division.

(3) $2,000,000 for the 1991-92 fiscal year and $2,000,000 for the 1992-93 fiscal year to the North Carolina Department of Human Resources to assist welfare recipients in gaining employment through the federally funded Job Opportunities and Basic Skills Program in such a way as to gain the maximum match of federal funds for the State dollars appropriated.

(4) $1,250,000 for the 1991-92 fiscal year and $1,250,000 for the 1992-93 fiscal year to the North Carolina Department of Community Colleges to continue the Focused Industrial Training Program.

Requested by: Representatives Ethridge, H. Hunter

––-WORKER TRAINING TRUST FUND/REVERSION OF FUNDS

Sec. 142. G.S. 96-5(f) reads as rewritten:

"(f) Employment Security Commission Reserve Fund. – There is created in the State treasury a special trust fund, separate and apart from all other public moneys or funds of this State, to be known as the Employment Security Commission Reserve Fund, hereinafter 'Reserve Fund'. Except as provided herein and in G.S. 96-9(b)(3)j, all proceeds from the tax as defined in G.S. 96-9(b)(3)j and collected pursuant to G.S. 96-10 shall be paid into the Reserve Fund. The moneys in the Reserve Fund may be used by the Commission for loans to the Unemployment Insurance Fund, as security for loans from the federal Unemployment Insurance Trust Fund, and to pay any interest required on advances under Title XII of the Social Security Act as required by G.S. 96-6(f), and shall be continuously available to the Commission for expenditure in accordance with the provisions of this section. The State Treasurer shall be ex officio the treasurer and custodian and shall invest said moneys in accordance with existing law as well as rules and regulations promulgated pursuant thereto. Furthermore, the State Treasurer shall disburse the moneys in accordance with the directions of the Commission and in accordance with such regulations as the Commission may prescribe.

Administrative costs for the collection of the tax and interest payable to the Reserve Fund shall be borne by the Special Employment Administration Fund. Refunds of interest and tax allowable under G.S. 96-9(b)(3)j shall be made from the Reserve Fund. No taxes shall be collected or paid into this fund during a calendar year when, as of the computation date (August 1) of the preceding calendar year, the balance of the fund equals to or exceeds one percent (1%) of the taxable wages.

The interest earned from investment of the Reserve Fund moneys shall be deposited in a fund hereby established in the State Treasurer's Office, to be known as the 'Worker Training Trust Fund'. These moneys shall be used to:

(1) Fund programs, specifically for the benefit of unemployed workers or workers who have received notice of long-term layoff or permanent unemployment, which will enhance the employability of workers, including, but not limited to, adult basic education, adult high school or equivalency programs, occupational skills training programs, assessment, job counseling and placement programs;

(2) Continue operation of local Employment Security Commission offices throughout the State; or

(3) Provide refunds to employers.

The use of funds from the Worker Training Trust Fund, for the purposes set out in the above paragraph, shall be pursuant to appropriations in the Current Operations Appropriations Act. Funds deposited in the Worker Training Trust Fund prior to July 1, 1987, shall be used as provided in the Current Operations Appropriations Act for 1987-89. Funds appropriated from the Worker Training Trust Fund that are unexpended and unencumbered at the end of the fiscal year for which they are appropriated shall revert to the State treasury to the credit of the Worker Training Trust Fund in accordance with G.S. 143-18."

Requested by: Representatives Ethridge, H. Hunter

––-UTILITIES REGULATORY FEE

Sec. 143. The percentage rate for the Utilities regulatory fee is set at nine hundredths percent (0.09%) effective July 1, 1991.

Requested by: Representatives Ethridge, H. Hunter

––-TOURISM PROMOTION FUNDS

Sec. 144. Funds appropriated in this Title to the Department of Economic and Community Development for tourism promotion grants shall be allocated according to per capita income, unemployment, and population growth in an effort to direct funds to counties most in need in terms of lowest per capita income, highest unemployment, and slowest population growth, in the following manner:

(1) Counties 1 through 20 are each eligible to receive a maximum grant of $7,500 for each fiscal year, provided these funds are matched on the basis of one non-State dollar for every four State dollars.

(2) Counties 21 through 50 are each eligible to receive a maximum grant of $3,500 for two of the next three fiscal years, provided these funds are matched on the basis of one non-State dollar for every three State dollars.

(3) Counties 51 through 100 are each eligible to receive a maximum grant of $3,500 for alternating fiscal years, beginning with the 1991-92 fiscal year, provided these funds are matched on the basis of four non-State dollars for every State dollar.

Requested by: Representatives Ethridge, H. Hunter

––-PETROLEUM OVERCHARGE ATTORNEY FEES

Sec. 145. (a) Unless prohibited by federal law, rule, or regulation or preexisting settlement agreement, no later than October 1, 1989, the North Carolina Attorney General shall direct the withdrawal of all funds received in the cases of United States v. Exxon and Stripper Well that are held in accounts or reserves located out-of-State for payment of attorney fees and reasonable expenses incurred in connection with oil overcharge litigation authorized by the Attorney General. The Attorney General shall deposit these funds, and all funds to be received from petroleum overcharge funds in the future for attorney fees and reasonable expenses, into the Special Reserve for Oil Overcharge Funds.

(b) All attorney fees and reasonable expenses incurred in connection with oil overcharge litigation shall be paid by the State Treasurer from petroleum overcharge funds that have been received by this State and deposited into the Special Reserve for Oil Overcharge Funds.

(c) Notwithstanding any other provision of law, the Attorney General may authorize the payment of attorney fees and reasonable expenses from the Special Reserve for Oil Overcharge Funds without further action of the General Assembly and funds are hereby appropriated from the Special Reserve for Oil Overcharge Funds for the 1991-92 fiscal year and for the 1992-93 fiscal year for that purpose.

Requested by: Representatives Ethridge, H. Hunter

––-NORTH CAROLINA MANUFACTURING DIRECTORY PROCEEDS

Sec. 146. (a) The Department of Economic and Community Development may expend for industrial promotional advertising any amount collected from the sales of the North Carolina Manufacturing Directory above the sum of $155,000 already budgeted for the 1991-92 and 1992-93 fiscal years.

(b) Beginning October 1, 1991, the Department shall submit quarterly reports to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division. These reports shall include the amount of proceeds collected from the sales of the Directory and the amount spent on advertising pursuant to the provisions of this section.

Requested by: Representatives Ethridge, H. Hunter

––-INDUSTRIAL DEVELOPMENT FUND/LOCAL MATCH

Sec. 147. Local governments requesting financial assistance from the Industrial Development Fund shall demonstrate to the satisfaction of the Department of Economic and Community Development that it would be an economic hardship for the local government to match State assistance from the Fund with local funds. The Department shall develop guidelines for determining hardship.

Requested by: Representatives Ethridge, H. Hunter

––-BIOTECHNOLOGY CENTER

Sec. 148. (a) The North Carolina Biotechnology Center may recapture funds spent in support of successful research efforts in the nonacademic private sector.

(b) The North Carolina Biotechnology Center shall provide funding for biotechnology and related bioscience applications under its Economic and Corporate Development Program.

(c) Beginning October 1, 1991, the North Carolina Biotechnology Center shall provide quarterly reports on all of the Center's programs to the Joint Legislative Commission on Governmental Operations. The initial report shall include information on the activities and accomplishments during the past fiscal year, itemized expenditures during the past fiscal year with sources of funding, planned activities and accomplishments for at least the next 12 months, and itemized anticipated expenditures with sources of funding for the next 12 months. Subsequent reports shall include quarterly updates of the initial report.

(d) The North Carolina Biotechnology Center shall provide a report containing detailed budget, personnel, and salary information to the Office of State Budget and Management and to the Fiscal Research Division in the same manner as State Departments and agencies in preparation for biennium budget requests.

Requested by: Representatives Ethridge, H. Hunter

––-MCNC

Sec. 149. (a) MCNC shall present a written report on the progress of the supercomputer program on a quarterly basis to the Joint Legislative Commission on Governmental Operations through fiscal years 1991-92 and 1992-93. The written reports shall contain at least the following information: the major accomplishments since the last report; the major activities expected for the project for the next 12 months after the date of the report; the major applications and uses on the supercomputer in the time since the last report; and, the major projected applications and uses on the supercomputer in the next six months after the date of the report. The report shall constitute a full management and status report on the supercomputer project.

(b) The Board of Directors of MCNC shall be the governing body for the supercomputer program.

(1) Technical policy and operating procedure advice,

(2) Advice concerning use of the supercomputing facilities by educational institutions and other groups and individuals,

(3) Advice and policy suggestions concerning the structures and operations of the supercomputing center and any adjunct institutes, conferences, or consultative committees, and

(4) Advice and counsel to MCNC or anyone it employs or enters into contract with related to the operation of the supercomputer project,

that Technical Advisory Council shall have an equal number of members appointed from (i) public sector, academic, not-for-profit organizations and (ii) for-profit, private companies by July 31, 1991. The intent of the General Assembly is for one-half of the members of this Technical Advisory Council, or any group directly affiliated with the supercomputer project management group that performs the functions of the technical advisory council as listed in this section, to be current employees of private sector, for-profit corporations by July 31, 1991.

(d) It is the intent of the General Assembly that all appropriations to MCNC for all years after the 1990-91 fiscal year for the MCNC basic research program contain the proviso that the appropriated funds are matched on the basis of two non-State dollars ($2.00) for every three State dollars ($3.00).

(e) Beginning October 1, 1991, MCNC shall provide quarterly reports on all of its programs to the the Joint Legislative Commission on Governmental Operations, and the Fiscal Research Division. These reports shall include information on the activities and accomplishments during the past fiscal year, itemized expenditures during the past fiscal year with sources of funding, planned activities and accomplishments for at least the next 12 months, and itemized anticipated expenditures with sources of funding for the next 12 months.

(f) MCNC shall provide a report containing detailed budget information to the Office of State Budget and Management in the same manner as State departments and agencies in preparation for biennium budget requests. Specific salary information will be provided upon written request by the Chairmen of the Joint Legislative Commission on Governmental Operations or the Chairmen of the House Appropriations Committee on Environment, Health, and Natural Resources and the Chairman of the Senate Appropriations Committee on Natural and Economic Resources.

Requested by: Representatives Ethridge, H. Hunter

––-MCNC BUDGET LIMITS

Sec. 150. (a) The funds appropriated in this Title to MCNC shall be used as follows:

FY 1991-92 FY 1992-93

Microelectronics Program $ 6,194,302 $ 6,000,000

Grants Program -0- -0-

Administration & Support 2,204,804 2,000,000

Supercomputer 5,298,063 5,224,705

Telecommunications 2,827,971 2,775,295

In addition, the above amounts shall be further reduced by $850,000 in each fiscal year of the biennium. The allocation of such reductions may be determined by MCNC.

(b) Of the funds appropriated to MCNC for the Microelectronics Program, $2,000,000 of the total appropriation in each fiscal year is contingent upon a dollar-for-dollar match in non-State funds.

(c) If MCNC finds it necessary to make changes in the program allocations specified in subsection (a) of this Section, MCNC shall report such changes to the Joint Legislative Commission on Governmental Operations within 30 days of the reallocation.

Requested by: Representatives Ethridge, H. Hunter

––-RURAL ECONOMIC DEVELOPMENT CENTER

Sec. 151. (a) Of the funds appropriated in this Title to the Department of Economic and Community Development, $1,630,627 for fiscal year 1991-92 and $1,614,766 for fiscal year 1992-93 shall be used for a grant-in-aid to the Rural Economic Development Center, Inc., for the administrative costs of the Center and for its pilot projects and research. No more than $300,000 of the funds appropriated for each fiscal year may be used for the administrative costs of the Rural Economic Development Center, Inc.

(b) Beginning October 1, 1991, the Rural Economic Development Center, Inc., shall provide quarterly reports on the Center's programs to the Joint Legislative Commission on Governmental Operations. The initial report shall include information on the activities and accomplishments during the past fiscal year, itemized expenditures during the past fiscal year with sources of funding, planned activities and accomplishments for at least the next 12 months, and itemized anticipated expenditures with sources of funding for the next 12 months. Subsequent reports shall include quarterly updates of the information in the initial report.

(c) The Rural Economic Development Center, Inc., shall provide a report containing detailed budget, personnel, and salary information to the Office of State Budget and Management in the same manner as State departments and agencies in preparation for biennium budget requests.

Requested by: Representatives Ethridge, H. Hunter

––-RURAL ECONOMIC DEVELOPMENT CENTER FUND LIMITATIONS

Sec. 152. Not more than fifty percent (50%) of the interest earned on State funds appropriated to the Rural Economic Development Center, Inc., may be used by the Rural Economic Development Center, Inc., for administrative purposes, including salaries and fringe benefits.

Requested by: Representatives Ethridge, H. Hunter

––-FEDERAL FUNDS ADMINISTRATION

Sec. 153. G.S. 143B-431 is amended by adding the following new subsection to read:

"( d) The Department of Economic and Community Development, with the approval of the Governor, may apply for and accept grants from the federal government and its agencies and from any foundation, corporation, association, or individual and may comply with the terms, conditions, and limitations of such grants in order to accomplish the Department's purposes. Grant funds shall be expended pursuant to the Executive Budget Act. In addition, the Department shall have the following powers and duties with respect to its duties in administering federal programs:

(1) To negotiate, collect, and pay reasonable fees and charges regarding the making or servicing of grants, loans, or other evidences of indebtedness.

(2) To establish and revise by regulation, in accordance with Chapter 150B of the General Statutes, schedules of reasonable rates, fees, or charges for services rendered, including but not limited to, reasonable fees or charges for servicing applications. Schedules of rates, fees, or charges may vary according to classes of service, and different schedules may be adopted for public entities, nonprofit entities, private for-profit entities, and individuals."

Requested by: Representatives Ethridge, H. Hunter

––-EMPLOYMENT AND TRAINING PROGRAM

Sec. 154. Chapter 143B is amended by adding the following new section to read:

"§ 143B-438.6. Employment and Training Grant Program.

(a) There is established in the Department of Economic and Community Development, Division of Employment and Training, an Employment and Training Grant Program. The purpose of the program is to make grants available to local agencies operating on behalf of the Private Industry Council serving Job Training Partnership Act service delivery areas. Grant funds shall be allocated for the purpose of enabling recipient agencies to implement local employment and training programs in accordance with existing resources, local needs, local goals, and selected training occupations. The Department shall adopt rules in accordance with Chapter 150B of the General Statutes for administering the Employment and Training Grant Program, which rules shall include procedures for review and approval of grant applications by local agencies and for monitoring use of grant funds by recipient agencies. A State-administered program of performance standards shall be used to measure grant program outcomes.

(b) Use of grant funds: Local agencies may use funds received under this section only for the purpose of upgrading the foundation of basic skills of the adult population and the existing work force in North Carolina. Services that may be provided include participant programs currently available under the federal Job Training Partnership Act that are appropriate for adults; on-the-job training; work experience; adult basic education; skills training, upgrading, and retraining; counseling and screening for job placement; service corps; and related support services. Local agencies may use grant funds to provide services only to individuals who are 18 years of age or older and who either (i) meet the current Federal Job Training Partnership Act definition of 'economically disadvantaged', or (ii) meet the current definition for eligibility under Title III of the Federal Job Training Partnership Act.

(c) Allocation of grants: The Department may reserve and allocate up to five percent (5%) of funds available to the Employment and Training Grant Program for State and local administrative costs to implement the program. The Division of Employment and Training shall allocate employment and training grants to local agencies operating on behalf of the Private Industry Council serving Job Training Partnership Act service delivery areas based on the following formula:

(1) One half of the funds shall be allocated on the basis of the relative excess number of unemployed individuals residing in each county as compared to the total excess number of unemployed individuals in all counties in the State.

'Excess number of unemployed' is defined as the number of unemployed individuals in excess of four and one-half percent (4.5%) of the civilian labor force in each county or the number of unemployed individuals in excess of four and one-half percent (4.5%) of the civilian labor force in each census tract within the county. The following methodology is used to determine the excess number of unemployed:

a. For counties classified as having excess unemployment, the excess number of unemployed is determined by subtracting four and one-half percent (4.5%) of the civilian labor force from the number of unemployed individuals within the county. The difference equals the number of excess unemployed.

b. In situations where the entire county is not classified as having excess unemployment, the excess number of unemployed is determined by census tract unemployment within the county. Census tract data is used to determine which subcounty areas qualify as areas of excess unemployment. In those subcounty areas classified as having excess unemployment (census tracts with four and one-half percent (4.5%) or higher unemployment rates), four and one-half percent (4.5%) of the census tract labor force is subtracted from the number of unemployed individuals within the area of excess unemployment. The subcounty figures of excess number of unemployed within the county are then added together to determine the total excess number of unemployed within the county.

(2) One half of the funds shall be allocated on the basis of the relative number of economically disadvantaged individuals within each county compared to the total number of economically disadvantaged individuals in the State. To determine the number of economically disadvantaged individuals within each county, data from the State Data Center in the Office of State Budget and Management, or from the federal decennial census, whichever is most recent, shall be used.

(d) Reports, Coordination: The Department of Economic and Community Development shall report quarterly to the Governor and to the Speaker of the House of Representatives and the President Pro Tempore of the Senate on the North Carolina Employment and Training Grant Program. The Department shall also provide a copy of these quarterly reports to the State Job Training Coordinating Council. The Council shall advise the Department on the merger of the funds provided to implement this section with other employment and training funds to develop comprehensive work-force preparedness initiatives for the State.

(e) Funds appropriated to the Department of Economic and Community Development for the Employment and Training Grant Program that are not expended at the end of the fiscal year shall not revert but shall remain available to the Department for the purposes established in this section."

PART XXV.––-DEPARTMENT OF LABOR

Requested by: Representatives Ethridge, H. Hunter

––-FUNDING FOR OSHA ENFORCEMENT POSITIONS

Sec. 155. The Department of Labor may use funds appropriated to the Department of Labor for the Occupational Safety and Health Act of North Carolina (OSHANC) program to fully fund enforcement personnel in the Compliance Bureau of the OSHANC program, provided the Department of Labor certifies to the Office of State Budget and Management that no federal match is available for the 1991-92 fiscal year and for the 1992-93 fiscal year.

PART XXVI.––-DEPARTMENT OF ENVIRONMENT, HEALTH, AND NATURAL RESOURCES

Requested by: Representatives Ethridge, H. Hunter

––-REDUCTION IN ADMINISTRATIVE SERVICES

Sec. 156. The Department of Environment, Health, and Natural Resources shall consider abolishing positions in each of the following administrative services areas:

(1) Computer Systems,

(2) Fiscal Management,

(3) Office of the General Counsel,

(4) General Services,

(5) Personnel, and

(6) Planning & Assessment

in order to reduce the budget of administrative services by the sum of $200,000 for the 1991-92 fiscal year and by the sum of $400,000 for the 1992-93 fiscal year.

Requested by: Representatives Ethridge, H. Hunter

––-SEPTAGE MANAGEMENT FEES

Sec. 157. Receipts collected by the Department of Environment, Health, and Natural Resources pursuant to G.S. 130A-291.1 are appropriated to the Department to establish and operate the North Carolina Septage Management Program.

Requested by: Representatives Ethridge, H. Hunter

––-AUTHORIZE USE OF WATER QUALITY FEES

Sec. 158. There is appropriated from the nonreverting account established in G.S. 143-215.3A to the Department of Environment, Health, and Natural Resources a sum not to exceed $2,124,142 for the 1991-92 fiscal year and a sum not to exceed $2,148,017 for the 1992-93 fiscal year for the salaries and the necessary support for up to 49 positions for the 1991-92 fiscal year and the 1992-93 fiscal year in the water quality program. Water quality fees shall be the only source of funds for these positions and all necessary support. These positions shall be used to reduce the backlog of permit applications and to improve the rate of compliance of facilities with environmental standards for toxic substances.

Requested by: Representatives Ethridge, H. Hunter

––-AUTHORIZE USE OF AIR QUALITY FEES

Sec. 159. There is appropriated from the nonreverting account established in G.S. 143-215.3A to the Department of Environment, Health, and Natural Resources a sum not to exceed $1,193,340 for the 1991-92 fiscal year and a sum not to exceed $1,487,506 for the 1992-93 fiscal year for the salaries and the necessary support:

(1) For up to 24 positions for the 1991-92 fiscal year; and

(2) For up to 29 positions for the 1992-93 fiscal year

in the air quality program. Air quality fees shall be the only source of funds for these positions and all necessary support. These positions shall be used to conduct air quality permitting, compliance, and monitoring activities.

Requested by: Representatives Ethridge, H. Hunter

––-SUPERFUND PROGRAM

Sec. 160. (a) The Department of Environment, Health, and Natural Resources may use available funds, with the approval of the Office of State Budget and Management, in order to provide the ten percent (10%) cost share required for Superfund cleanups on National Priority List sites. These funds may be in addition to those appropriated for this purpose.

(b) The Department of Environment, Health, and Natural Resources and the Office of State Budget and Management shall report to the Joint Legislative Commission on Governmental Operations the amount and the source of the funds used pursuant to subsection (a) of this section within 30 days of the expenditure of these funds.

Requested by: Representatives Ethridge, H. Hunter

––-FOREST DEVELOPMENT ACT FUNDS

Sec. 161. Notwithstanding the provisions of G.S. 113A-192, the assessment from the primary forest product processors shall be collected for the 1991-92 fiscal year and the 1992-93 fiscal year. Notwithstanding the provisions of G.S. 113A-180 and G.S. 113A-183(c), all funds accrued to the Forest Development Fund, from whatever source, may be expended pursuant to the provisions of G.S. 113A-193(c) and Article 11 of Chapter 113A of the General Statutes for the 1991-92 fiscal year and the 1992-93 fiscal year.

Requested by: Representatives Ethridge, H. Hunter

––-STUDY TERMINATING LEASE WITH FEDERAL GOVERNMENT

Sec. 162. The Parks and Recreation Division, Department of Environment, Health, and Natural Resources, shall study the desirability and the feasibility of terminating any long-term lease that the State entered into, whereby the State leases federal reservoirs. The Department shall report its findings and recommendations to the 1991 General Assembly (1992 Regular Session) no later than April 1, 1992.

Requested by: Representatives Ethridge, H. Hunter

––-REVISION OF PARKS FEE SCHEDULE

Sec. 163. (a) The Parks and Recreation Division, Department of Environment, Health, and Natural Resources may amend its fee schedule such that an additional sum of $392,300 is raised by such fees.

(b) Notwithstanding the provisions of G.S. 150B-13, the Department may adopt temporary rules to implement subsection (a) of this section.

(c) If the Division amends its fee schedule under subsection (a) of this section, the amended fee schedule becomes effective July 1, 1991.

Requested by: Representatives Ethridge, H. Hunter

––-TECHNICAL REVIEW COMMITTEE APPOINTMENTS

Sec. 164. The Soil and Water Conservation Commission shall include the Executive Director of the Wildlife Resources Commission, or his designee, and the Director of the Marine Fisheries Division of the Department of Environment, Health, and Natural Resources, or his designee, among its appointments to the Technical Review Committee, which reviews the technical specifications for the best management practices specified for the Agricultural Cost Share Program for Nonpoint Source Pollution Control.

Requested by: Representatives Ethridge, H. Hunter

––-AGRICULTURE COST SHARE PROGRAM

Sec. 165. Of the funds appropriated in this Title to the Department of Environment, Health, and Natural Resources for the Agriculture Cost Share Program for Nonpoint Source Pollution Control, a sum not to exceed $40,000 for the 1991-92 fiscal year and a sum not to exceed $40,000 for the 1992-93 fiscal year shall be used to fund tide gates in Hyde County in accordance with the match requirements specified in G.S. 143-215.74(b)(6).

Requested by: Representatives Ethridge, H. Hunter

––-AUDITS OF SOIL AND WATER DISTRICT BOARDS

Sec. 166. G.S. 139-7 reads as rewritten:

"§ 139-7. District board of supervisors – appointive members; organization of board; certain powers and duties.

The governing body of a soil and water conservation district shall consist of the three elective supervisors from the county or counties in the district, together with the appointive members appointed by the Soil and Water Conservation Commission pursuant to this section, and shall be known as the district board of supervisors. When a district is composed of less than four counties, the board of supervisors of each county shall on or before October 31, 1978, and on or before October 31 as the terms of the appointive supervisors expire, recommend in writing two persons from the district to the Commission to be appointed to serve with the elective supervisors. If the names are not submitted to the Commission as required, the office shall be deemed vacant on the date the term is set to expire and the Commission shall appoint two persons of the district to the district board of supervisors to serve with the elected supervisors. The Commission shall make its appointments prior to or at the November meeting of the Commission. Appointive supervisors shall take office on the first Monday in December following their appointment. Such appointive supervisors shall serve for a term of four years, and thereafter, as their terms expire, their successors shall serve for a term of four years. The terms of office of all appointive supervisors who have heretofore been lawfully appointed for terms the final year of which presently extends beyond the first Monday in December are hereby terminated on the first Monday in December of the final year of appointment. Vacancies for any reason in the appointive supervisors shall be filled for the unexpired term by the appointment of a person by the Commission from the district in which the vacancy occurs. Vacancies for any reason in the elected supervisors shall be filled for the unexpired term by appointment by the Commission of a person from the county in the district in which the vacancy occurs.

In those districts composed of four or more counties, the Commission may, but is not ~~required, to~~ required to, appoint two persons from the district without recommendation from the board of supervisors, to serve as district supervisors along with the elected members of the board of supervisors. Such appointments shall be made at the same time other appointments are made under this section, and the persons appointed shall serve for a term of four years.

The supervisors shall designate a chairman and may, from time to time, change such designation. A simple majority of the board shall constitute a quorum for the purpose of transacting the business of the board, and approval by a majority of those present shall be adequate for a determination of any matter before the board, provided at least a quorum is present. Supervisors of soil and water conservation districts shall be compensated for their services at the per diem rate and allowed travel, subsistence and other expenses, as provided for State boards, commissions and committees generally, under the provisions of G.S. 138-5; provided, that when per diem compensation and travel, subsistence, or other expense is claimed by any supervisor for services performed outside the district for which such supervisor ordinarily may be appointed or elected to serve, the same may not be paid unless prior written approval is obtained from the Department of Environment, Health, and Natural Resources.

The supervisors may employ a secretary, technical experts, whose qualifications shall be approved by the Department, and such other employees as they may require, and shall determine their qualifications, duties and compensation. The supervisors may call upon the Attorney General of the State for such legal services as they may require. The supervisors may delegate to their chairman, to one or more supervisors, or to one or more agents, or employees such powers and duties as they may deem proper. The supervisors shall furnish to the Soil and Water Conservation Commission, upon request, copies of such ordinances, rules, regulations, orders, contracts, forms, and other documents as they shall adopt or employ, and such other information concerning their activities as it may require in the performance of its duties under this Chapter.

The supervisors shall provide for the execution of surety bonds for all employees and officers who shall be entrusted with funds or property; shall provide for the keeping of a full and accurate record of all proceedings and of all resolutions, regulations, and orders issued or adopted; and shall provide for an annual audit of the accounts of receipts and disbursements. In any given year, if the supervisors provide for an internal audit, the supervisor serving as chairman shall certify, under oath, that this internal audit is a true and accurate reflection of the accounts of receipts and disbursements, then the supervisors shall not be required, notwithstanding the provisions of G.S. 159-34, to provide for an audit of the accounts of receipts and disbursements by a certified public accountant or by an accountant certified by the Local Government Commission. Any supervisor may be removed by the Soil and Water Conservation Commission upon notice and hearing, for neglect of duty, incompetence or malfeasance in office, but for no other reason.

The supervisors may invite the legislative body of any municipality or county located near the territory comprised within the district to designate a representative to advise and consult with the supervisors of the district on all questions of program and policy which may affect the property, water supply, or other interests of such municipality or county.

All district supervisors whose terms of office expire prior to the first Monday in January, 1948, shall hold over and remain in office until supervisors are elected or appointed and qualify as provided in this Chapter, as amended. The terms of office of all district supervisors, who have heretofore been elected or appointed for terms extending beyond the first Monday in January, 1948, are hereby terminated on the first Monday in January, 1948."

Requested by: Representatives Ethridge, H. Hunter

––-INTEREST ON WILDLIFE RESOURCES FUND/PRESERVE FEDERAL FUNDING

Sec. 167. (a) G.S. 143-250 reads as rewritten:

"§ 143-250. Wildlife Resources Fund.

All moneys in the game and fish fund or any similar State fund when this Article becomes effective shall be credited forthwith to a special fund in the office of the State Treasurer, and the State Treasurer shall deposit all such moneys in said special fund, which shall be known as the Wildlife Resources Fund.

All unexpended appropriations made to the Department of Conservation and Development, the Board of Conservation and Development, the Division of Game and Inland Fisheries or to any other State agency for any purpose pertaining to wildlife and wildlife resources shall also be transferred to the Wildlife Resources Fund.

Except as otherwise specifically provided by law, all moneys derived from hunting, fishing, trapping, and related license fees, exclusive of commercial fishing license fees, including the income received and accruing from the investment of license revenues, and all funds thereafter received from whatever sources shall be deposited to the credit of the Wildlife Resources Fund and made available to the Commission until expended subject to the provisions of this Article. License revenues include the proceeds from the sale of hunting, fishing, trapping, and related licenses, from the sale, lease, rental, or other granting of rights to real or personal property acquired or produced with license revenues, and from federal aid project reimbursements to the extent that license revenues originally funded the project for which the reimbursement is being made. For purposes of this section, real property includes lands, buildings, minerals, energy resources, timber, grazing, and animal products. Personal property includes equipment, vehicles, machines, tools, and annual crops. The Wildlife Resources Fund herein created shall be subject to the provisions of the Executive Budget Act, Chapter 143, Article 1 of the General Statutes of North Carolina as amended, and the provisions of the General Statutes of North Carolina as amended, and the provisions of the Personnel Act, Chapter 143, Article 2 of the General Statutes of North Carolina as amended.

All moneys credited to the Wildlife Resources Fund shall be made available to carry out the intent and purposes of this Article in accordance with plans approved by the North Carolina Wildlife Resources Commission, and all such funds are hereby appropriated, reserved, set aside and made available until expended, for the enforcement and administration of this Article, Chapter 75A, Article 1, and Chapter 113, Subchapter IV of the General Statutes of North Carolina. The Wildlife Resources Commission shall report to the Joint Legislative Commission on Governmental Operations before expending from the Wildlife Resources Fund more than the amount authorized in the budget enacted by the General Assembly for the fiscal period.

In the event any uncertainty should arise as to the funds to be turned over to the North Carolina Wildlife Resources Commission the Governor shall have full power and authority to determine the matter and his recommendation shall be final and binding to all parties concerned."

(b) This section becomes effective January 1, 1992.

Requested by: Representatives Ethridge, H. Hunter

––-ABOLISH PERINATAL COUNCIL

Sec. 168. G.S. 130A-128 is repealed.

Requested by: Representative Michaux

––-CONTINUE PUBLIC DENTAL HEALTH PROGRAM EMPHASIS

Sec. 169. (a) The reduction of $204,000 for each fiscal year of the biennium in the budget for the Department of Environment, Health, and Natural Resources for Dental Health Services shall be taken only in vacant positions. When eliminating vacant positions and reducing the funding for these positions, the Department shall eliminate vacant Dentist and Dental Hygienist positions only after eliminating other vacancies.

(b) From the funds appropriated to the Department of Environment, Health, and Natural Resources in this act for Dental Health Services, the Department shall administer the public dental health program the primary emphasis of which shall continue to be the delivery of preventive, educational, and dental care services to preschool children and school-age children.

Requested by: Representative Diamont

––-MATERNAL AND CHILD HEALTH CARE NON-SUPPLANTING REQUIREMENT

Sec. 170. Chapter 130A of the General Statutes is amended by adding a new section to read:

"§ 130A-4.1. State Funds for Maternal and Child Health Care/non-supplanting.

(a) The Department of Environment, Health, and Natural Resources shall ensure that local health departments do not reduce county appropriations for maternal and child health services provided by the local health departments because they have received State appropriations for this purpose.

(b) All income earned by local health departments for maternal and child health programs supported in whole or in part from State or federal funds, received from the Department of Environment, Health, and Natural Resources, shall be budgeted and expended by local health departments to further the objectives of the program that generated the income."

Requested by: Representative Diamont

––-HEALTH PROMOTION NON-SUPPLANTING REQUIREMENT

Sec. 171. Chapter 130A of the General Statutes is amended by adding a new section to read:

"§ 130A-4.2. State Funds for Health Promotion/non-supplanting.

The Department of Environment, Health, and Natural Resources shall ensure that local health departments do not reduce county appropriations for health promotion services provided by the local health departments because they have received State appropriations for this purpose."

Requested by: Representatives Ethridge, H. Hunter

––-NON-MEDICAID REIMBURSEMENT

Sec. 172. Providers of medical services under the various State programs other than Medicaid offering medical care to citizens of the State shall be reimbursed at rates no more than those under the North Carolina Medical Assistance Program.

The Department of Environment, Health, and Natural Resources may reimburse hospitals at the full prospective per diem rates without regard to the Medical Assistance Program's annual limits on hospital days. When the Medical Assistance Program's per diem rates for inpatient services and its interim rates for outpatient services are used to reimburse providers in non-Medicaid medical service programs, retroactive adjustments to claims already paid shall not be required.

Notwithstanding the provisions of paragraph one of this section, the Department of Environment, Health, and Natural Resources may negotiate with providers of medical services under the various Environment, Health, and Natural Resources programs, other than Medicaid, for rates as close as possible to Medicaid rates for the following purposes: contracts or agreements for medical services and purchases of medical equipment and other medical supplies. These negotiated rates are allowable only to meet the medical needs of its non-Medicaid eligible patients, residents and clients who require such services which cannot be provided when limited to the Medicaid rate.

Maximum net family annual income eligibility standards for services in these programs with the exception of Migrant Health, School Health, AIDS Drug Reimbursement Program, diagnostic assessment for infants with sickle cell syndrome, and Home Health shall be as follows:

Family All

Size Kidney Other

1 $ 6,400 $ 4,200

2 8,000 5,300

3 9,600 6,400

4 11,000 7,500

5 12,000 7,900

6 12,800 8,300

7 13,600 8,800

8 14,400 9,300

The eligibility level each fiscal year for outpatient services for all clients and for inpatient services for children under the age of 5, in the Children's Special Health Services Program shall be one hundred percent (100%) of the federal poverty guidelines as revised annually by the United States Department of Health and Human Services, in effect on July 1 of each fiscal year.

Requested by: Representatives Ethridge, H. Hunter

––-ASBESTOS HAZARD MANAGEMENT FUNDS

Sec. 173. The fees established and collected pursuant to Article 19 of Chapter 130A of the General Statutes are appropriated to the Department of Environment, Health, and Natural Resources to support the Asbestos Hazard Management Program.

Requested by: Representatives Ethridge, H. Hunter

––-ADOLESCENT PREGNANCY PREVENTION PROJECTS

Sec. 174. (a) Of the funds appropriated in Section 3 of this act to the Division of Maternal and Child Health, Department of Environment, Health, and Natural Resources, $982,768 for the 1991-92 fiscal year and $982,768 for the 1992-93 fiscal year shall be used to fund adolescent pregnancy prevention projects.

(b) Beginning in fiscal year 1991-92, the Division shall evaluate all of the adolescent pregnancy projects funded as a result of this program at least yearly and shall report its findings to the Commission for Health Services, the Joint Legislative Commission on Governmental Operations, and the Chairmen of the House Appropriations Committee on Environment, Health, and Natural Resources, and the Senate Appropriations Committee on Natural and Economic Resources by April 1 of each year. The evaluation shall be conducted by a firm or individual external to the Department. Funds appropriated to the Department in Section 3 of this act for employing a Public Health Program Consultant in the Division of Maternal and Child Health shall be used by the Department to retain the services of the evaluator required by this subsection. Any evaluation of these projects shall include a study of the effectiveness of the project in reducing the pregnancy rate within the target population.

(c) The Commission for Health Services shall be responsible for monitoring the Division's administration of the Adolescent Pregnancy Prevention Program. The Division shall implement the following changes in the management and funding of the Adolescent Pregnancy Prevention Program for projects funded from General Fund appropriations and federal block grants:

(1) Applications. Any local agency or organization or combination of agencies and organizations may apply to the Division of Maternal and Child Health for an allocation of money to operate a project aimed at preventing adolescent pregnancy. The application shall contain an analysis of the adolescent pregnancy and related problems in the locality the project would serve, and a description of how the project would attempt, over a period of at least five years, to prevent the problems. The application shall state how much money is needed to operate the project and how the money shall be spent. The Division shall conduct annually a proposal-writing session that shall be attended by a representative of any project that wishes to apply for funding; that session shall define the criteria for accountability and evaluation that the Division requires of projects. That session shall also provide information about additional funding sources to which projects might turn to satisfy the matching requirements of subdivision (5) of this subsection.

(2) Proposal Requirements. The Division shall apply the following minimum standards to projects applying for first-year funding:

a. Each project shall have a plan of action that extends for at least five years for prevention of adolescent pregnancy.

b. Each project shall have realistic, specific, and measurable goals and objectives for the prevention of adolescent pregnancy.

c. Each project, before submitting its proposal, shall send a representative to the proposal-writing session held by the Division.

(3) Operating standards. The Division shall apply the following minimum operating standards:

a. Each project shall have a Board of Advisors composed of members from outside the sponsoring agency of the project. The Board of Advisors shall include representatives from at least four of the following: media, government, charitable organizations, private business, medical institutions. The Boards of Advisors shall meet at least quarterly and advise project staff on project policies and operations.

b. Each project shall comply with reporting, contracting, and evaluation requirements of the Division.

c. Each project shall define and maintain cooperative ties with other community institutions.

d. Each project shall demonstrate its ability to attract financial support from sources other than the State, including sources in the local community.

(4) Criteria for Selection. For first-year funding, the Division shall choose from among the applicants that meet the minimum standards in subdivision (2) of this subsection the best selection of projects according to the following criteria:

a. Adequacy of proposed staff to meet project objectives;

b. Appropriateness of project strategies to reduce adolescent pregnancy;

c. Level of community support, including documentation from the appropriate local government entity or from community organizations that opportunity has been given for citizen input into the proposed program, and that there is community support for the proposal. Documentation may include letters or statements of support from citizens or community organizations, or statements that community support was expressed at public hearings;

d. Degree of need of the locality, including that the county has a significant adolescent pregnancy problem as evidenced by its attributable risk score developed by the Division of Statistics and Information Services; and

e. Other appropriate criteria.

The Division shall make its recommendations for funding to the Commission for Health Services. The Commission shall make the final determination of which projects are to be funded. The Commission shall consider the recommendations of the Division but shall not be bound by them. The Commission shall notify the projects that are to be funded by June 1 of each year.

(5) Schedule of Funding. If the Commission, upon consultation with the Division, finds that a project it has chosen for first-year funding continues to meet the operating standards of subdivisions (2) and (3) of this subsection, funding for that project shall continue, to the extent of available money, for an additional four years. The level of funding provided by the Division to approved projects shall be set according to the following schedule:

a. First year, eighty percent (80%) of the project's annual budget not to exceed the maximum award established by the Commission for Health Services,

b. Second year, ninety percent (90%) of the State appropriations or federal block grant funds awarded in the first year,

c. Third year, seventy-five percent (75%) of the State appropriations or federal block grant funds awarded in the first year,

d. Fourth year, sixty-five percent (65%) of the State appropriations or federal block grant funds awarded in the first year, and

e. Fifth year, fifty percent (50%) of the State appropriations or federal block grant funds awarded in the first year.

The portion of a project's budget that must come from sources other than State or federal block grant funds may be provided as in-kind contributions as well as cash.

(6) Five-Year Limit on Funding. No project shall receive State funding if it has previously received State funding for five full years. Any project that has received State funding before July 1, 1990 will be eligible for consideration for an additional five years' State support, according to the schedule. The Commission may fund any such project that meets the minimum standards if it determines, after considering the experience and impact of the project and measuring its application against those of other applicants, that it should be funded.

(7) Maximum Level of Funding. The Commission for Health Services shall by rule determine the maximum annual amount that may be made to any one project.

(8) As adolescent pregnancy prevention project grant funds decrease, a project shall maintain its original budget level, less the amount expended for start-up costs. The Department shall develop guidelines for determining start-up costs, which guidelines shall be uniform for all projects. Local match percentage may come from any in-kind source or newly generated funds, public or private, available to the project.

Requested by: Representatives Ethridge, H. Hunter

––-INFECTION CONTROL PROGRAM/FUNDS TRANSFER

Sec. 175. Of the funds appropriated to the Department of Environment, Health, and Natural Resources, Division of Epidemiology, for the 1991-93 biennium, $85,274 shall be transferred in each fiscal year to the University of North Carolina at Chapel Hill for the School of Medicine of the University of North Carolina at Chapel Hill. Funds transferred pursuant to this section shall be used to support the Health Care Facilities Infection Control Program in investigating and controlling nosocomial infections in hospitals, long-term care facilities, and other medical facilities in cooperation with the Division of Epidemiology. Funds transferred shall also be used to provide training and consultation to hospitals, long-term care facilities, and other medical facilities to prevent and control nosocomial infections.

Requested by: Representative James

––-SOIL AND WATER CONSERVATION DISTRICT SUPERVISORS' EXPENSES

Sec. 176. Of the funds appropriated in this Title to the Division of Soil and Water Conservation, Department of Environment, Health, and Natural Resources, $214,594 for the 1991-92 fiscal year and $214,594 for the 1992-93 fiscal year shall be used for the per diem and travel expenses of the Soil and Water Conservation District Supervisors.

Requested by: Representative Ethridge

––-NO CAP ON USE OF PERMIT FEES

Sec. 177. G.S. 143-215.3A reads as rewritten:

"§ 143-215.3A. Use of application and permit fees.

There is established a separate nonreverting account within the Department of Environment, Health, and Natural Resources. The account may be used, to the extent appropriated by the General Assembly, to (a) defray the expenses of any project or program supporting the permitting and compliance activities needed to protect the State's surface water, groundwater, and air quality, and (b) establish additional permanent positions, under the Personnel Act, for water, groundwater, and air quality permitting and compliance activities. All application fees and permit administration fees collected by the State for permits issued under Articles 21, 21A, 21B, and 38, except those collected under Part 2 of Article 21A and deposited in the Oil or Other Hazardous Substances Pollution Protection Fund, and except as provided in G.S. 143-215.28A and G.S. 143-215.3B shall be credited to the account. The total monies collected per year from fees for permits under G.S. 143-215.3(a)(1a) shall not exceed thirty percent (30%) of the total budgets from all sources of environmental permitting and compliance programs within the Department of Environment, Health, and Natural Resources. The Department shall make an annual report to the General Assembly and its Fiscal Research Division on the cost of the State's environmental permitting programs contained within such Department. The report shall include, but is not limited to, fees set and established under this Article, fees collected under this Article, revenues received from other sources for environmental permitting and compliance programs, changes made in the fee schedule since the last report, anticipated revenues from all other sources, interest earned and any other information requested by the General Assembly."

Requested by: Representative Gottovi

––-CHILDREN'S SPECIAL HEALTH SERVICES/REFUNDS

Sec. 178. (a) The Office of State Budget and Management shall carry forward all funds allotted in the 1990-91 fiscal year for the Children's Special Health Services Program to the 1991-92 fiscal year in the Division of Maternal and Child Health, Department of Environment, Health, and Natural Resources.

(b) The Office of State Budget and Management shall allow the Department of Environment, Health, and Natural Resources to budget and expend refunds of the prior year's expenditures for the purchase of care by the Children's Special Health Services Program for the same purpose in the fiscal year in which the refund is received.

Requested by: Representatives Ethridge, H. Hunter

––-PUBLIC HEALTH PROGRAM FEES/EXEMPTION FOR ELDERLY

Sec. 179. G.S. 130A-248(d) reads as rewritten:

"(d) (Expires June 30, 1992) The Department shall charge each facility subject to this section, except nutrition programs for the elderly administered by the Division of Aging of the Department of Human Resources and public school cafeterias, an annual fee of twenty-five dollars ($25.00). The Department shall charge an additional twenty-five dollar ($25.00) late payment fee to any facility that fails to pay the required fee within 45 days after billing by the Department. The Department may, in accordance with G.S. 130A-23, suspend or revoke the permit of a facility that fails to pay the required fee within 60 days after billing by the Department. The Commission shall adopt rules to implement this subsection. Fees collected under this subsection shall be credited to the General Fund and may be used to support State and local public health programs and activities. The Department shall make an annual report to the Joint Legislative Commission on Governmental Operations and the Director of the Fiscal Research Division that shall include the fees collected and disbursed under this subsection and any other information requested by the General Assembly or the Commission."

Requested by: Representative James

––-EHNR REDUCTIONS/HOLD COUNTIES HARMLESS

Sec. 180. The Department of Environment, Health, and Natural Resources shall not reduce current operations disbursements to local governments for the 1991-92 fiscal year and the 1992-93 fiscal year solely for the purpose of effectuating budget reductions required by this act.

Requested by: Representative Redwine

––-TRANSFER LAND RECORDS MANAGEMENT

Sec. 181. (a) The statutory authority, powers, duties, and functions, records, personnel, property, unexpended balances of appropriations, allocations or other funds, including the functions of budgeting and purchasing, of the Department of Environment, Health, and Natural Resources to conduct the land records management program, as provided by G.S. 143-345.6, is transferred to the Department of the Secretary of State.

(b) G.S. 143-345.6 is recodified as G.S. 147-54.3.

"§ 147-54.3. Land records management program.

(a) The ~~Department of Environment, Health, and Natural Resources~~ Secretary of State shall administer a land records management program for the purposes (i) of advising registers of deeds, local tax officials, and local planning officials about sound management practices, and (ii) of establishing greater uniformity in local land records systems. The management program shall consist of the activities provided for in subsections (b) through (e) of this section, and other related activities essential to the effective conduct of the management program.

(b) The ~~Department of Environment, Health, and Natural Resources,~~ Secretary of State, in cooperation with the Secretary of Cultural Resources and in accordance with G.S. 121-5(c) and G.S. 132-8.1, shall establish minimum standards and provide advice and technical assistance to local governments in implementing and maintaining minimum standards with regard to the following aspects of land records management:

(1) Uniform indexing of land records;

(2) Uniform recording and indexing procedures for maps, plats and condominiums; and

(3) Security and reproduction of land records.

(c) The ~~Department of Environment, Health, and Natural Resources~~ Secretary of State shall conduct a program for the preparation of county base maps pursuant to standards prepared by ~~that Department.~~ the Secretary.

(c1) The ~~Department of Environment, Health, and Natural Resources,~~ Secretary of State, shall, in cooperation with the Secretary of Revenue, conduct a program for the preparation of county cadastral maps pursuant to standards prepared by the ~~Department of Environment, Health, and Natural Resources.~~ Secretary of State.

(d) Upon the joint request of any board of county commissioners and the register of deeds and subject to available resources of personnel and funds, the Secretary shall make a management study of the office of register of deeds, using assistance from the Office of State Personnel. At the conclusion of the study, the Secretary shall make nonbinding recommendations to the board, the register of deeds, and to the General Assembly.

(d1) The ~~Department of Environment, Health, and Natural Resources~~ Secretary of State shall make comparative salary studies periodically of all registers of deeds offices and at the conclusion of each study the Secretary of ~~Environment, Health, and Natural Resources~~ State shall present his written findings and shall make recommendations to the board of county commissioners and register of deeds of each county.

(e) The ~~Department of Environment, Health, and Natural Resources,~~ Secretary of State, in cooperation with the Secretary of Cultural Resources and in accordance with G.S. 121-5(c) and G.S. 132-8.1, shall undertake research and provide advice and technical assistance to local governments on the following aspects of land records management:

(1) Centralized recording systems;

(2) Filming, filing, and recording techniques and equipment;

(3) Computerized land records systems; and

(4) Storage and retrieval of land records.

(f) An advisory committee on land records is created to assist the Secretary in administering the land records management program. The Governor shall appoint 12 members to the committee; one member shall be appointed from each of the organizations listed below from persons nominated by the organization:

(1) The North Carolina Association of Assessing Officers;

(2) The North Carolina Section of the American Society of Photogrammetry;

(3) The North Carolina Chapter of the American Institute of Planners;

(4) The North Carolina Section of the American Society of Civil Engineers;

(5) The North Carolina Tax Collectors' Association;

(6) The North Carolina Association of Registers of Deeds;

(7) The North Carolina Bar Association;

(8) The North Carolina Society of Land Surveyors; and

(9) The North Carolina Association of County Commissioners.

In addition, three members from the public at large shall be appointed. The members of the committee shall be appointed for four-year terms, except that the initial terms for members listed in positions (1) through (4) above and for two of the members-at-large shall be two years; thereafter all appointments shall be for four years. The Governor shall appoint the chairman, and the committee shall meet at the call of the chairman. The Governor in making the appointments shall try to achieve geographical and population balance on the advisory committee; one third of the appointments shall be persons from the most populous counties in the State containing approximately one third of the State's population, one third from the least populous counties containing approximately one third of the State's population, and one third shall be from the remaining moderately populous counties containing approximately one third of the State's population. Each organization shall nominate one nominee each from the more populous, moderately populous, and less populous counties of the State. The members of the committee shall receive per diem and subsistence and travel allowances as provided in G.S. 138-5."

(d) This section is effective upon ratification.

TITLE II. - EXPANSION

PART XXVII.––-CURRENT OPERATIONS/GENERAL FUND

Sec. 182. Appropriations from the General Fund of the State for the maintenance of the State departments, institutions, and agencies, and for other purposes as enumerated, are made for the biennium ending June 30, 1993, according to the following schedule:

Current Operations-General Fund 1991-92 1992-93

Judicial Department $ 1,000,000 $ 1,000,000

Department of Public Education 54,253,414 72,774,393

Department of Justice 229,627 229,627

Department of Administration

01. Administration 569,395 606,507

02. State Controller 1,037,280 1,037,280

Department of Agriculture 205,000 205,000

Department of Insurance 964,893 925,349

Department of Environment, Health, and

Natural Resources 5,459,644 9,529,095

Office of Administrative Hearings 619,776 1,916,466

Department of Human Resources

01. DHR - Secretary 43,892 43,892

02. Social Services 17,178,708 19,723,832

03. Medical Assistance 58,750,817 67,938,215

04. School for the Deaf and

Hard of Hearing 496,955 577,151

05. Division of Services for the

Blind 944,910 1,639,890

06. Division of Mental Health,

Developmental Disabilities, and

Substance Abuse Services 15,368,898 22,196,460

07. Division of Youth Services 900,000 960,000

Total Department of

Human Resources 93,684,180 113,079,440

Department of Correction - 6,902,493

Department of Economic and Community

Development 150,461 393,989

Rural Economic Development Center 4,500,000 4,500,000

Department of Cultural Resources 70,145 70,145

Department of Crime Control

and Public Safety 197,262 197,262

University of North Carolina - Board

of Governors

01. University Institutional

Program 8,564,400 9,664,400

State Board of Elections 8,200 -

Department of Community

Colleges 14,507,173 14,507,173

Debt Service 3,210,800 14,610,800

Salary Increase Reserve (For all

employees except teachers on

Salary Schedule) - 16,900,000

GRAND TOTAL CURRENT OPERATIONS –

GENERAL FUND $189,231,650 $268,049,419

PART XXVIII.––-CURRENT OPERATIONS/HIGHWAY FUND

Sec. 183. Appropriations from the Highway Fund of the State for the maintenance and operation of the Department of Transportation, and for other purposes as enumerated, are made for the biennium ending June 30, 1993, according to the following schedule:

Current Operations-Highway Fund 1991-92 1992-93

Department of Transportation

01. Administration $ 552,800 $ 555,440

02. Division of Highways

a. Administration and

Operations 236,824 221,474

b. State Maintenance

(01) Primary 8,191,105 5,993,348

(02) Secondary 14,396,487 10,533,764

(03) Urban 2,233,938 1,634,550

03. Division of Motor Vehicles 822,436 1,184,729

04. Reserve for Asphalt Cleanup 1,000,000 2,000,000

05. Reserve for Pay Increase 1,700,000

GRAND TOTAL CURRENT OPERATIONS–

HIGHWAY FUND $ 27,433,590 $ 23,823,305

PART XXIX.––-GENERAL PROVISIONS

Requested by: Representative Gardner

––-STATE AGENCY MAILING LISTS PURGED

Sec. 184. (a) Each State agency, commission, institution, and university that maintains a mailing list comprising more than 200 addressees to whom free printed material is distributed through the postal service shall, no later than January 1, 1992, query each addressee to determine whether that addressee desires to remain on the mailing list. The agency, commission, institution, or university shall within one month thereafter purge the mailing list of each nonresponding addressee and each addressee who indicates a desire that the addressee's name be removed. Each State agency, commission, institution, and university shall report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division by March 1, 1992, regarding its cost savings.

(b) Mailing lists that are required by law are exempt from this section.

PART XXX.––-SALARIES AND BENEFITS

Requested by: Representatives Nesbitt, Diamont

––-SALARIES/GOVERNMENT EMPLOYEES

Sec. 185. The salaries of those individuals whose annual salaries for the 1989-90 and 1990-91 fiscal years were set in Sections 23, 24, 25, 26, 27, 28, 30, 31, 32, 33, and 39 of Chapter 752 of the 1989 Session Laws, are set for the 1991-92 and 1992-93 fiscal years at the level set in those sections for the 1990-91 fiscal year.

Requested by: Representative Nesbitt

––-RESERVE FOR STATE EMPLOYEES' SALARY INCREASES

Sec. 186. (a) Effective July 1, 1992, there is established in the Office of State Budget and Management a Reserve for State Employee Salary Increases, to be administered pursuant to subsection (b) of this section.

(b) The funds in the Reserve for State Employee Salary Increases, established by subsection (a) of this section, shall be used in accordance with Section 187 of this act for State employee Cost of Living general pay increases and/or performance pay only for those State employees not covered under the Teacher Salary Schedule Plan provided by law.

Requested by: Representative Nesbitt

––-STATE EMPLOYEE COST OF LIVING PRIORITY

Sec. 187. (a) It is the intent of the General Assembly that Cost of Living general pay increases be given priority over performance pay as the Governor and the General Assembly determine the appropriate allocation of State employee salary increases relating to Cost of Living general pay adjustments and performance pay. To effect this intent, no performance pay shall be granted except in accordance with subsections (b), (c), (d), and (e) of this section, which ensure that Cost of Living general pay increases of at least two percent (2%) are allocated before any performance pay is allocated. It is also the intent of the General Assembly to acknowledge the need to adjust the determination of Cost of Living general pay increases so that all State employees, regardless of salary, are treated equitably. To effect that intent, the General Assembly may make any adjustment to the Cost of Living general salary increases allocated to State employees that it considers necessary to render the allocations truly equitable for all employees.

Nothing in this section affects the right of the General Assembly to allocate flat percentage Cost of Living general pay increases.

(b) G.S. 126-7(a) reads as rewritten:

"(a) It is the policy of the State to compensate its employees at a level sufficient to encourage excellence of performance and to maintain the labor market competitiveness necessary to recruit and retain a competent work force. To this end, salary increases to State employees ~~shall~~ may be based, in part, on each individual employee's job performance and, in part, on general increases given to all State employees."

"( a1) General salary increases for State employees shall precede any consideration of a performance pay allocation. Performance pay shall be allocated only when the total allocation for increases equals or exceeds two percent (2%).

(d) G.S. 126-7(b) reads as rewritten:

"(b) To guide the Governor and the General Assembly in making appropriations to further the compensation policy of the State, the State Personnel Commission shall conduct annual compensation surveys. The Commission shall determine the percent of funds appropriated for salary increases to be reserved for a general increase for all State employees and the percent to be reserved for performance-based increases for eligible employees. The Commission shall present ~~its recommendation on the percentages and~~ the results of the compensation survey to the Appropriations Committees of the House and Senate no later than two weeks after the convening of the legislature in odd years and May 1st of even years. ~~The amount reserved for performance increases shall not be less than twenty-five percent (25%) nor more than seventy-five percent (75%) of the total allocation.~~"

(e) G.S. 126-7(c), until the first subdivision, reads as rewritten:

"(c) Performance ~~increases~~ increases, if awarded, shall be based on performance appraisals of all employees conducted by each department, agency, and institution. The State Personnel Commission, under the authority of G.S.126-4(8), shall adopt policy and regulations for performance appraisal. The policy and regulations shall include the following:".

Requested by: Representatives Diamont, Nesbitt

––-SALARY RELATED CONTRIBUTIONS/EMPLOYERS

Sec. 188. (a) Required employer salary-related contributions for employees whose salaries are paid from department, office, institution, or agency receipts shall be paid from the same source as the source of the employees' salary. If an employee's salary is paid in part from the General Fund or Highway Fund and in part from department, office, institution, or agency receipts, required employer salary-related contributions may be paid from the General Fund or Highway Fund only to the extent of the proportionate part paid from the General Fund or Highway Fund in support of the salary of the employee, and the remainder of the employer's requirements shall be paid from the source that supplies the remainder of the employee's salary. The requirements of this section as to source of payment are also applicable to payments on behalf of the employee for hospital-medical benefits, longevity pay, unemployment compensation, accumulated leave, workers' compensation, severance pay, separation allowances, and applicable disability income and disability salary continuation benefits.

(b) Effective July 1, 1991, the State's employer contribution rates budgeted for retirement and related benefits as a percentage of covered salaries for the 1991-92 fiscal year and the 1992-93 fiscal year are (i) ten and ninety-three hundredths percent (10.93%) - Teachers and State Employees; (ii) fifteen and ninety-three hundredths percent (15.93%) - State Law Enforcement Officers; (iii) eight and sixty-six hundredths percent (8.66%) - University Employees' Optional Retirement Program; (iv) twenty-nine and forty-six hundredths percent (29.46%) - Consolidated Judicial Retirement System; and (v) thirty-two and thirty hundredths percent (32.30%) - Legislative Retirement System. Each of the foregoing contribution rates includes two percent (2%) for hospital and medical benefits. The rate for State Law Enforcement Officers includes five percent (5%) for the Supplemental Retirement Income Plan. The rates for Teachers and State Employees, State Law Enforcement Officers, and for the University Employees' Optional Retirement Program includes forty-two hundredths percent (0.42%) for the Disability Income Plan.

(c) The maximum annual employer contributions, payable monthly, by the State for each covered employee or retiree for the 1991-92 fiscal year to the Teachers' and State Employees' Comprehensive Major Medical Plan are: (i) Medicare eligible employees and retirees - $1,260; and (ii) Non-Medicare eligible employees and retirees - $1,655.

(d) The maximum annual employer contributions, payable monthly, by the State for each covered employee or retiree for the 1992-93 fiscal year to the Teachers' and State Employees' Comprehensive Major Medical Plan are: (i) Medicare eligible employees and retirees - $1,351; and (ii) Non-Medicare eligible employees and retirees - $1,774.

PART XXXI.––-DEPARTMENT OF INSURANCE

Requested by: Representative Diamont

––-INSURANCE STUDY OF HEALTH INSURANCE COVERAGE OF WOMEN NEEDING PRENATAL AND DELIVERY HEALTH SERVICES

Sec. 189. (a) The Department of Insurance, in conjunction with the Department of Environment, Health, and Natural Resources, Division of Maternal and Child Health, and the Department of Human Resources, Division of Medical Assistance, shall conduct a study to determine the extent to which there are women who lack health insurance covering prenatal and delivery services; and to determine the gaps in private and self-funded health insurance coverage. Not later than March 1, 1992, the Department of Insurance shall report to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division on the progress of this study.

(b) Of the funds appropriated to the Department of Insurance in this act, $40,000 is allocated for the study required by this act. The Department may contract for clerical or professional staff or any other services it requires in the course of this study.

PART XXXII.––-OFFICE OF STATE AUDITOR

Requested by: Representatives Bowman, N. J. Crawford

––-INFORMATION FROM PRIVATE ORGANIZATIONS RECEIVING STATE FUNDS AND FROM STATE AGENCIES PROVIDING THESE FUNDS/INFORMATION FROM STATE AGENCIES JUSTIFYING APPROPRIATIONS REQUESTS

Sec. 190. (a) G.S. 143-6.1 reads as rewritten:

"§ 143-6.1. Information from private organizations receiving State ~~funds.~~ funds; information from State departments and agencies providing State funds.

Every ~~private person,~~ corporation, organization, and institution which receives, uses or expends any State funds shall use or expend such funds only for the purposes for which such State funds were appropriated by the General Assembly or collected by the State.

Each ~~private person,~~ corporation, organization, and institution which receives, uses or expends State funds in the amount of twenty-five thousand dollars ($25,000) or more annually, except when the funds are ~~compensation~~ for the purchase of goods or services, shall file annually with the State Auditor and with the Joint Legislative Commission on Governmental Operations a financial ~~statement~~ statements in such form and on such schedule as shall be prescribed by the State Auditor, and shall furnish to the State Auditor for audit all books, records and other information as shall be necessary for the State Auditor to account fully for the receipt, use and expenditure of State funds. Each such ~~private person,~~ corporation, organization, and institution shall furnish such additional financial or budgetary information as shall be requested by the State Auditor or by the Joint Committee on Governmental Operations. All financial statements furnished to the State Auditor or to the Joint Legislative Commission on Governmental Operations pursuant to this section, and any audits or other reports prepared by the State Auditor, shall be public records.

Each State department and agency shall identify to the State Auditor each corporation, organization, and institution to which State funds received by the department or agency have been provided, except for the purchase of goods and services, and submit documents to the State Auditor for approval in a prescribed format describing standards of compliance and suggested audit procedures sufficient to give adequate direction to independent auditors performing audits.

The receipt, use or expenditure of State funds by a ~~private person,~~ corporation, organization, and institution shall not, in and of itself, make or constitute such ~~person,~~ corporation, organization, or institution a State agency."

(b) G.S. 143-6 reads as rewritten:

"§ 143-6. Information from departments and agencies asking State aid.

(a) On or before the first day of September ~~biennially,~~ in the even-numbered years, each of the departments, bureaus, divisions, officers, boards, commissions, institutions, and other State agencies and undertakings receiving or asking financial aid from the State, or receiving or collecting funds under the authority of any general law of the State, shall furnish the Director all the information, data and estimates which he may request with reference to past, present and future appropriations and expenditures, receipts, revenue, and income.

(b) Any department, bureau, division, officer, board, commission, institution, or other State agency or undertaking desiring to request financial aid from the State for the purpose of constructing or renovating any State building, utility, or other property development (except a railroad, highway, or bridge structure) shall, before making any such request for State financial aid, submit to the Department of Administration a statement of its needs in terms of space and other physical requirements, and shall furnish the Department with such additional information as it may request. The Department of Administration shall then prepare preliminary studies and cost estimates for the use of the requesting department, bureau, division, officer, board, commission, institution, or other State agency or undertaking in presenting its request to the Director of the Budget.

(c) On or before the first day of September in the even-numbered years, each of the departments, bureaus, divisions, officers, boards, commissions, institutions, and other State agencies receiving or asking financial aid or support from the State, any part or all of which is being requested for disbursement to non-State entities under the authority of any general law of the State, shall furnish the Director with the following information:

(1) The amount of State funds disbursed to the entity in the immediately preceding two fiscal years and the purpose for which the funds were disbursed and used, the amount being requested as continuation funds for the upcoming fiscal year for the non-State entity, and the justification for continued State support for the non-State entity; and

(2) Justification for continued State support for each non-State entity shall include information on the extent of the public benefit being derived from State support of the non-State entity.

(d) The Office of State Budget and Management and the Director of the Budget shall provide to the General Assembly, on or before January 15 of each odd-numbered year, a report that adequately and fairly presents the information required in this section."

PART XXXIII.––-DEPARTMENT OF CULTURAL RESOURCES

Requested by: Representative Colton

––-MUSEUM OF HISTORY/MODIFY DUTIES

Sec. 191. (a) G.S. 121-7(b) reads as rewritten:

"(b) Insofar as practicable, the North Carolina Museum of History shall accession and maintain records showing provenance, value, location, and other pertinent information on such furniture, furnishings, decorative items, and other objects as have historical or cultural importance and which are owned by or to be acquired by the State for use in the State Capitol. ~~Capitol and the Executive Mansion, and, upon request of the Department of Administration, any other state-owned building.~~ When any such item or object has been entered in the accession records of the Museum of History, the custodian of such item or object shall, upon its removal from the premises upon which it was located or when it is otherwise disposed of, submit to the Museum of History sufficient details concerning its removal or disposition to permit an adequate entry in the accession records to the end that its location or disposition, and authority for such change, shall be showed therein."

(b) This section is effective upon ratification.

Requested by: Representative Colton

––-MUSEUM OF HISTORY CONTRACTS

Sec. 192. (a) G.S. 121-4 is amended by adding a new subdivision to read:

"(16) To enter into an agreement with a private nonprofit corporation for the management of facilities to provide food and beverages at the North Carolina Museum of History. Any net proceeds received by the private nonprofit corporation shall be devoted to the work of the Department. Any private nonprofit corporation entering into an agreement with the Department with regard to the management of the facilities may enter into further agreements with private persons or corporations concerning the operation of the facilities. The Department may enter into an agreement in regard to obtaining or installing equipment, furniture, and furnishings for such facilities."

(b) This section is effective upon ratification.

PART XXXIV.––-PUBLIC SCHOOLS

Requested by: Representatives Barnes, Payne, Fussell

––-TEACHER SALARY SCHEDULE

Sec. 193. (a) The Director of the Budget may transfer from the Reserve for Teachers Salary Increases for the 1991-92 fiscal year funds necessary to implement the teacher salary schedule set out in subsection (b) of this section, including funds for the employer's retirement and Social Security contributions and funds for annual longevity payments at two and one-half percent (2.5%) of base salary only upon the completion of 25 years of State service, commencing with the sixth teacher pay period in the 1991-92 fiscal year for all teachers whose salaries are supported from the State's General Fund. These funds shall be allocated to individuals according to rules adopted by the State Board of Education and the Superintendent of Public Instruction.

(b)(1) Beginning with the sixth teacher pay period in the 1991-92 fiscal year the following monthly salary schedule shall apply to certified personnel of the public schools who are classified as "A"teachers. The schedule contains 30 steps with each step corresponding to one year of teaching experience.

Years of 1991-92

Experience Salary

00 $1,981

01 2,021

02 2,061

03 2,164

04 2,207

05 2,251

06 2,296

07 2,342

08 2,389

09 2,437

10 2,486

11 2,536

12 2,587

13 2,639

14 2,692

15 2,746

16 2,801

17 2,857

18 2,914

19 2,972

20 3,031

21 3,092

22 3,154

23 3,217

24 3,281

25 3,347

26 3,414

27 3,482

28 3,552

29+ 3,623

(2) Beginning with the sixth teacher pay period in the 1991-92 fiscal year the following monthly salary schedule shall apply to certified personnel of the public schools who are classified as "G"teachers. The schedule contains 30 steps with each step corresponding to one year of teaching experience.

Years of 1991-92

Experience Salary

00 $2,105

01 2,147

02 2,190

03 2,300

04 2,346

05 2,393

06 2,441

07 2,490

08 2,540

09 2,591

10 2,643

11 2,696

12 2,750

13 2,805

14 2,861

15 2,918

16 2,976

17 3,036

18 3,097

19 3,159

20 3,222

21 3,286

22 3,352

23 3,419

24 3,487

25 3,557

26 3,628

27 3,701

28 3,775

29+ 3,851

(3) The rules adopted by the State Board for allocating funds to individuals shall provide for (i) a seven and one-half percent (7.5%) salary increase for teachers with certification based on academic preparation at the six-year degree level, (ii) a ten percent (10%) salary increase for teachers with certification based on academic preparation at the doctoral degree level, and (iii) annual longevity pay at two and one-half percent (2.5%) of base salary only upon the completion of 25 years of State service.

Requested by: Representatives Payne, Fussell

––-DIFFERENTIATED PAY FUNDS

Sec. 194. Notwithstanding the provisions of Part 4 of Article 16 of Chapter 115C of the General Statutes or any other provision of law, no State funds shall be spent for differentiated pay for public school employees for the 1991-93 fiscal biennium, except for funds for employees in career development pilot projects. State funds for differentiated pay plans in career development pilot units shall be phased down for the 1991-93 fiscal biennium as provided in Section 7 of Chapter 778 of the 1989 Session Laws, as amended by Section 97 of Chapter 1066 of the 1989 Session Laws.

Requested by: Representative Diamont

––-SALARY SCHEDULE FOR ADMINISTRATORS

Sec. 195. Prior to February 1, 1992, the State Board of Education shall develop a reasonable salary schedule for superintendents, assistant superintendents, associate superintendents, supervisors, directors, coordinators, evaluators, program administrators, principals, and assistant principals whose salaries are supported from the State's General Fund.

The State Board of Education shall also develop a reasonable schedule for implementing this salary schedule.

The State Board of Education shall report to the Joint Legislative Commission on Governmental Operations prior to February 1, 1992, on the salary schedule developed pursuant to this section and the proposed implementation schedule for this salary schedule.

Requested by: Representatives Barnes, Fussell, Payne, Rogers, Diamont, Nesbitt

––-BASIC EDUCATION PROGRAM

Sec. 196. (a) G.S. 115C-81(a) reads as rewritten:

"(a) The State Board of Education shall adopt a Basic Education Program for the public schools of the State. Before it adopts or revises the Basic Education Program, the State Board shall consult with an Advisory Committee, including at least eight members of local boards of education, that the State Board appoints from a list of nominees submitted by the North Carolina School Boards Association. The State Board shall report annually to the General Assembly on any changes it has made in the program in the preceding 12 months and any changes it is considering for the next 12 months.

The State Board of Education shall review the Basic Education Program in an effort to (i) simplify the Basic Education Program, especially the standard course of study and the core curriculum for all students, and (ii) assure that the Program adopted by the State Board and implemented by the local boards of education carries out the intent of the General Assembly to provide every student in the State equal access to a Basic Education Program. The State Board shall report the results of its review to the Joint Legislative Education Oversight Committee and to the General Assembly prior to March 15, 1992.

The State Board shall implement the Basic Education Program within funds appropriated for that purpose by the General Assembly and by units of local government. It is the intent of the General Assembly that until the Basic Education Program is fully funded, the implementation of the Basic Education Program shall be the focus of State educational funding. It is the goal of the General Assembly that the Basic Education Program be fully funded and completely operational in each local school administrative unit by July 1, 1995.

It is further a goal of the General Assembly to provide supplemental funds to low-wealth counties to allow those counties to enhance the instructional program and student achievement."

(b) G.S. 115C-12(9) reads as rewritten:

"(9) Miscellaneous Powers and Duties. – All the powers and duties exercised by the State Board of Education shall be in conformity with the Constitution and subject to such laws as may be enacted from time to time by the General Assembly. Among such duties are:

a. To certify and regulate the grade and salary of teachers and other school employees.

b. To adopt and supply textbooks.

c. To adopt rules requiring all local boards of education to implement the Basic Education Program on an incremental basis within funds appropriated for that purpose by the General Assembly and by units of local government. Beginning with the 1991-92 school year, the rules shall require each local school administrative unit to implement fully the standard course of study in every school in the State in accordance with the Basic Education Program so that every student in the State shall have equal access to the curriculum as provided in the Basic Education Program and the standard course of study.

The Board shall establish benchmarks by which to measure the progress that each local board of education has made in implementing the Basic Education Program. The Board shall report to the Joint Legislative Education Oversight Committee and to the General Assembly by December 31, 1991, and by February 1 of each subsequent year on each local board's progress in implementing the Basic Education Program, including the use of State and local funds for the Basic Education Program.

The Board shall develop a State accreditation program that meets or exceeds the standards and requirements of the Basic Education Program. The Board shall require each local school administrative unit to comply with the State accreditation program to the extent that funds have been made available to the local school administrative unit for implementation of the Basic Education Program.

The Board shall use the State accreditation program to monitor the implementation of the Basic Education Program.

c1. To issue an annual 'report card' for the State and for each local school administrative unit, assessing each unit's efforts to improve student performance and taking into account progress over the previous years' level of performance and the State's performance in comparison with other states. This assessment shall take into account demographic, economic, and other factors that have been shown to affect student performance.

c2. To develop management accountability indicators to measure the efficiency and appropriate use of staff in each school and at the administrative office. Staff development for school administrators shall be a high priority of the Department of Public Instruction.

d. To formulate rules and regulations for the enforcement of the compulsory attendance law.

e. To manage and operate a system of insurance for public school property, as provided in Article 38 of this Chapter.

In making substantial policy changes in administration, curriculum, or programs the Board should conduct hearings throughout the regions of the State, whenever feasible, in order that the public may be heard regarding these matters."

"(a) Prior to June 30 each year, the State Superintendent shall review local school improvement plans submitted by the local school administrative units in accordance with policies and performance indicators adopted by the State Board of Education. If the State Superintendent approves the plan for a local school administrative unit, that unit shall participate in the Program for the next fiscal year.

If a local plan contains a request for a waiver of State laws, regulations, or policies, in accordance with G.S. 115C-238.3(e), the State Superintendent shall determine whether and to what extent the identified laws, regulations, or policies should be waived. The State Superintendent shall present that plan and his determination to the State Board of Education. If the State Board of Education deems it necessary to do so to enable a local unit to reach its local accountability goals, the State Board, only upon the recommendation of the State Superintendent, may grant waivers of:

(1) State laws pertaining to class size, teacher certification, assignment of teacher assistants, the use of State-adopted textbooks, and the purposes for which State funds for the public schools may be ~~used, and~~ used: Provided, however, the State Board of Education shall not permit the use of funds for teachers for expanded programs under the Basic Education Program for any other purpose;

(2) All State regulations and policies, except those pertaining to State salary schedules and employee benefits for school employees, the instructional program that must be offered under the Basic Education Program, the system of employment for public school teachers and administrators set out in G.S. 115C-325, health and safety codes, compulsory school attendance, the minimum lengths of the school day and year, and the Uniform Education Reporting System."

(d) The Department of Public Instruction shall report to the Joint Legislative Education Oversight Committee and to the General Assembly before May 1, 1992, on the methods used to measure student achievement.

(e) Of the funds appropriated to the Department of Public Education for the 1991-93 fiscal biennium, the sum of $28,907,374 for the 1991-92 fiscal year and the sum of $28,907,374 for the 1992-93 fiscal year shall be used to complete the funding of teachers for expanded programs under the Basic Education Program. These funds shall be used by local school administrative units to implement fully the standard course of study in every school in the State in accordance with the Basic Education Program so that every student in the State shall have equal access to the curriculum provided for therein.

The State Board of Education shall not waive, in accordance with G.S. 115C-238.6(a), the requirement that all local schools use these funds for teachers for expanded programs to implement fully the standard course of study in every school in the State.

Requested by: Representatives Barnes, Diamont, Nesbitt

––-EXTENDED SCHOOL DAY

Sec. 197. G.S. 115C-84(a) reads as rewritten:

"(a) School Day. – The length of the school day shall be determined by the several local boards of education for all public schools in their respective local school administrative units, and the minimum time for which teachers shall be employed in the schoolroom or on the grounds supervising the activities of children shall not be less than six hours: Provided, the several local boards of education may adopt rules and regulations allowing handicapped pupils, kindergarten pupils, and pupils attending the first, second, and third grades to attend school for a period less than six hours. The superintendent of the several local boards of education, in the event of an emergency, act of God, or any other conditions requiring the termination of classes before six hours have elapsed, may suspend the operation of any school for that particular day without loss of credit to the pupil or loss of pay to the teacher.

The General Assembly urges the local boards of education to expand the length of the school day so that it includes at least six hours of instructional time."

Requested by: Representatives Barnes, Fussell, Payne, Diamont, Nesbitt

––-SCHOOL-TO-WORK TRANSITION

Sec. 198. G.S. 115C-81(a1) reads as rewritten:

"(a1) The Basic Education Program shall describe the education program to be offered to every child in the public schools. It shall provide every student in the State equal access to a Basic Education Program. Instruction shall be offered in the areas of arts, communication skills, physical education and personal health and safety, mathematics, media and computer skills, science, second languages, social studies, and vocational education.

Instruction in vocational education under the Basic Education Program shall be based on factors including:

(1) The integration of academic and vocational education;

(2) A sequential course of study leading to both academic and occupational competencies;

(3) Increased student work skill attainment and job placement;

(4) Increased linkages, where geographically feasible, between public schools and community colleges, so the public schools can emphasize academic preparation and the community colleges can emphasize specific job training; and

(5) Instruction and experience, to the extent practicable, in all aspects of the industry the students are prepared to enter."

Requested by: Representatives Nesbitt, Diamont, Barnes

––-OUTCOME-BASED EDUCATION

Sec. 199. (a) Article 16 of Chapter 115C of the General Statutes is amended by adding a new Part to read:

"Part 5. Outcome-Based Education Program.

"§ 115C-238.12. Purpose of program.

An outcome-based education program is a program in which expectations for student achievement are clearly stated in terms of knowledge, skills, and attitudes. Students develop skills and attitudes to maximize the acquisition of knowledge. The program recognizes that achievement occurs as a result of individual and developmental progress towards goals, and reflects that students learn at different rates using varying learning styles. Outcome-based education measures achievement periodically throughout the learning process and is the criteria for high school graduation. Measurement of student achievement is implemented by teachers to complement varied learning growth and styles. The results of those measurements are used to determine when a student understands and has mastered the material and is ready to move forward in the learning process.

"§ 115C-238.13. Implementation of the project by the State Board of Education.

(a) The State Board of Education shall develop and implement an outcome-based education program. The State Board of Education shall select four sites to participate in the program for five fiscal years beginning with the 1992-93 fiscal year. The first year of the project shall be a year for the sites to plan their projects. The remaining four years shall be to implement the projects and to demonstrate their effectiveness.

(b) The State Board of Education shall adopt expectations for student achievement, necessary for students to function successfully in the next century. These expectations shall be consistent with national education goals recommended by the National Governors' Association in 1990. The State Board of Education, after consultation with the Board of Governors of The University of North Carolina, the State Board of Community Colleges, representatives of independent colleges, representatives of the business community, representatives of the Department of Public Instruction, representatives of local school administrative units, principals, teachers, and parents, shall adopt proficiencies that are required for graduation from high school. These expectations and proficiencies shall be adopted no later than June 15, 1992, and shall be used by the sites to develop their local outcome-based education projects.

The proficiencies that are required for graduation from high school may include:

(1) Writing – High school graduates will be able to organize complex, demanding, and extended subject matter clearly and effectively. They will produce structured writings in which relationships between successive paragraphs are signaled by connective words and phrases. They will punctuate their writing so that meaning and structure are clear.

(2) Reading – High school graduates will be able to make independent and discriminating selections from a range of reference materials; retrieve information from those materials using techniques such as skimming; and evaluate and synthesize information from different parts of a text or different texts.

(3) Mathematics – High school graduates will be able to present a set of complex data in a simplified form using a variety of diagrams and graphs.

(c) The State Board of Education, the Board of Governors of The University of North Carolina, and the State Board of Community Colleges shall work jointly to develop a mechanism by which the institutions of higher education accept certification of proficiencies on high school transcripts in lieu of Carnegie units.

"§ 115C-238.14. Selection of sites.

(a) No later than October 10, 1991, the State Board of Education shall develop a competitive process for the selection of project sites.

(b) No later than November 30, 1991, the Department of Public Instruction shall initiate the competitive process for the selection of project sites and shall conduct regional briefings for local school administrative units interested in submitting proposals. The regional briefings shall provide detailed information about outcome-based education models so local school administrative units can decide whether to compete for selection as a project site.

(c) No later than February 29, 1992, local school administrative units shall submit their proposals to the Department of Public Instruction. The proposal may cover all or part of the schools in a local school administrative unit.

The proposal shall include information regarding the local school administrative unit's plan for, ability to, and commitment to complying with the following requirements for local programs:

(1) The program shall ensure that all students have access to a common core of knowledge and that all students are treated equitably.

(2) Student advancement shall be based on the mastery of the proficiencies adopted by the State Board of Education pursuant to G.S. 115C-238.13(b).

(3) Students shall be allowed to progress at different rates; however, expectations for progress shall be based on the goal that all students master the proficiencies required for high school graduation. Computer assisted, personal education plans shall be available for every student.

(4) Parents and guardians shall be involved in a student's selection of high school completion options.

(5) Teachers and principals shall have a major role in development of local projects.

(6) A majority of the teachers and principals who will participate in the pilot project shall approve the proposal for selection as a pilot site and the plans for the local program before they are submitted to the Department of Public Instruction.

(7) Programs shall provide each student a school-based adult advocate to foster self-esteem, protect learning options, ensure that student needs are being met, and ensure that students are being treated equitably.

(8) Projects shall be shared with the public. Annual reports describing program goals, activities, and accomplishments shall be made available to the public. The reports shall contain specific information regarding the contributions of teachers, administrators, and the local board of education to the program, and to student progress under the program.

(d) The Department of Public Instruction shall review the proposals and shall transmit its recommendations regarding the sites to the State Board of Education no later than April 30, 1992. The Department of Public Instruction shall involve an advisory committee comprised of business leaders, legislators, school board members, public school administrators, and other educators in the review process.

(e) The State Board of Education shall select the project sites no later than June 15, 1992. The State Board shall base its decision on the local school administrative units' plans for, ability to, and commitment to complying with the requirements for local programs set out in subsection (c) of this section.

"§ 115C-238.15. Development of local programs by the project sites.

(a) From June 15, 1992, through March 15, 1993, the project sites shall develop their local programs. No later than March 15, 1993, the sites shall submit their plans to the Department of Public Instruction for review. No later than May 30, 1993, the Department shall review the plans and work with the sites to assure that the plans carry out the provisions of this Part.

(b) The Department of Public Instruction shall provide technical assistance to the sites in developing their local programs.

(c) In developing its local plan, each local school administrative unit shall select the outcome-based education model to be followed. Each local school administrative unit shall determine the instructional programs and strategies used to develop student proficiencies at its site. Under the plan, teachers shall determine when the proficiencies of a group of students are assessed; provided, however, State-administered tests shall be used to test proficiencies at a site no more than four times a year. Student advancement shall be determined by school-based personnel assigned to oversee the instructional program of a group of students.

(d) In developing and administering local projects, local boards of education need broad decision-making authority so that teachers and administrators at the sites can experiment with the instructional activities that meet the instructional needs in that particular setting. Each local school administrative unit shall set forth in its plan, with specificity, those aspects of the plan that would be enhanced by flexibility with regard to statutes and regulations. The State Board of Education may grant each local school administrative unit such flexibility with regard to statutes and regulations as it finds necessary and appropriate to implement a local program (i) so long as the projects and activities are carried out within total funds available for that purpose, and (ii) so long as the State Board of Education does not find as a fact that the flexibility is being abused.

The State Board of Education shall report such flexibility with regard to statutes and regulations contained in any projects or proposed changes to projects to the Joint Legislative Commission on Governmental Operations.

(e) Local projects may include model accountability programs that meet the needs of the project sites. To the extent that the State Board of Education finds that these accountability programs provide sufficient data for oversight, they may be used instead of other State-mandated programs.

(f) Local projects shall include plans to train and retrain teachers, administrators, and school board members to implement the projects.

"§ 115C-238.16. Approval and implementation of plans.

(a) Between March 15, 1993, and June 1, 1993, the State Board of Education shall receive plans for projects from the project sites and the comments of the Department of Public Instruction regarding the projects.

(b) No later than June 15, 1993, the State Board of Education shall approve the plans for the projects, approve the plans with modifications, or reject the plans.

(c) The project sites shall begin implementation immediately of projects approved, or approved with modifications, by the State Board.

"§ 115C-238.17. Annual assessment and reapproval of plans.

(a) Between March 15 and May 15 of each subsequent year of the project, the projects shall submit to the Department of Public Instruction any data requested by the Department of Public Instruction or the State Board of Education and any proposed changes in the projects. No later than May 30 each year, the Department shall review the data and the proposed changes in the plans for the projects and shall work with the project sites to assure that the plans carry out the provisions of this Part.

(b) Between March 15 and June 1 of each subsequent year, the State Board of Education shall receive the data requested and the proposed changes in plans for projects from the project sites and shall receive the comments of the Department of Public Instruction regarding the data and the proposed changes in the projects. The State Board shall also consider the results of audits and evaluations performed pursuant to G.S. 115C-238.18.

(c) No later than June 15 of each subsequent year, the State Board of Education shall reapprove the plans and any changes for the projects, reapprove the plans and any changes with modifications, or reject the plans.

(d) The project sites shall begin implementation immediately of projects reapproved, or reapproved with modifications, by the State Board.

"§ 115C-238.18. Evaluation of program.

(a) State-Level Program Evaluation Procedures. – A program audit shall be conducted by the Office of the State Auditor following the first and second years of the program. The audit shall certify that the State Board of Education and State Department of Public Instruction have implemented procedures as specified by the General Assembly. The audit shall focus on the autonomy and flexibility given to local school administrative units in the development of outcome-based education models and plans so as to determine if the appropriate amount of autonomy and flexibility was sought and granted and if the autonomy and flexibility were used properly.

(b) Local-Level Program Evaluation Procedures. –

(1) The program audit conducted by the Office of the State Auditor following the second year of the program shall include a local-level procedures component. The audit shall certify that local plans contain elements as specified by the General Assembly. The audit shall also certify that teachers and building level administrators were involved in the development of plans.

(2) The Department of Public Instruction shall conduct a process evaluation of each pilot site following the second through sixth years of the program. The evaluation shall determine how well plans have been implemented. The evaluation shall focus on staff development, organizational and instructional activities, and the involvement and acceptance of the project by all concerned groups including the board of education, administrators, teachers, parents, students, and the business community.

(1) Local pilot sites shall develop and implement accountability models designed to measure student outcomes. The plans shall include the use of tests available through the State's testing program. Accountability models shall be part of the site plans submitted to the State Board for approval.

(2) The State Department of Public Instruction shall audit the implementation of accountability models. Audits shall be conducted following the third, fourth, fifth, and sixth years of the program.

(3) The State Department of Public Instruction shall conduct a summative evaluation following the sixth year of the program. Student outcomes shall be the focus of the summative evaluation.

(d) Reports to the General Assembly. – The State Board of Education shall submit a summative evaluation report on the projects to the General Assembly no later than March 15, 1998.

"§ 115C-238.19. Solicitation of private funds for additional sites.

The State Board of Education shall design and implement a program for soliciting private funds to support the outcome-based education pilot sites. As funds become available, the State Board may request that the General Assembly authorize additional sites to participate in the program."

(b) Of the funds appropriated to the Department of Public Education, the sum of $100,000 for the 1991-92 fiscal year shall be used for advance planning for the outcome-based education program at four sites pursuant to subsection (a) of this section and the sum of $4,000,000 for the 1992-93 fiscal year shall be used to implement the program at the four pilot sites. These funds shall be allocated on the basis of $500.00 for each State-funded certificated employee participating in the program. These funds shall be used (i) for staff development activities, including planning activities, for teachers, administrators, and school board members, (ii) to pay substitute teachers while teachers are engaged in staff development activities, and (iii) to pay 10-month employees for participating in staff development activities, including planning activities during the summer.

It is the intent of the General Assembly to appropriate an additional $4,000,000 each year for the 1993-94 through 1996-97 fiscal years to complete the implementation of the outcome-based education program at the four sites.

Requested by: Representatives Diamont, Nesbitt

––-SCHOOL ADMINISTRATOR TRAINING AND CERTIFICATION

Sec. 200. (a) G.S. 115C-284 reads as rewritten:

"§ 115C-284. Method of selection and requirements.

(a) Principals and supervisors shall be elected by the local boards of education upon the recommendation of the superintendent, in accordance with the provisions of G.S. 115C-276(j).

(b) In the city administrative units, principals shall be elected by the board of education of such administrative unit upon the recommendation of the superintendent of city schools.

(c) The State Board of Education shall have entire control of certifying all applicants for supervisory and professional positions in all public elementary and high schools of North Carolina; and it shall prescribe the rules and regulations for the renewal and extension of all certificates, and shall determine and fix the salary for each grade and type of certificate which it authorizes. Provided, that the State Board of Education shall require each applicant for an initial certificate or graduate certificate to demonstrate his academic and professional preparation by achieving a prescribed minimum score at least equivalent to that required by the Board on November 30, 1972, on a standard examination appropriate and adequate for that purpose: Provided, further, that in the event the Board shall specify the National Teachers Examination for this purpose, the required minimum score shall not be lower than that which the Board required on November 30, ~~1972.~~ 1972: Provided, further, that the Board shall not issue provisional certificates for principals and assistant principals.

(c1) It is the policy of the State of North Carolina to maintain the highest quality principal and assistant principal education programs in order to enhance the competence of professional personnel certified in North Carolina. To ensure that principal and assistant principal preparation programs are upgraded to reflect a more rigorous course of study, the State Board of Education shall submit to the General Assembly not later than March 1, 1992, a plan to promote this policy. In developing this plan, the State Board shall consider (i) requiring these programs to include additional preparation for site-based decision making and for the additional autonomy being granted to local schools units, (ii) enhancing program entrance requirements to include assessment of an applicant's ability to complete the program and to perform as a principal, and (iii) enhancing the overall content of the programs.

The State Board of Education, as lead agency in coordination and cooperation with the University Board of Governors and such other public and private agencies as are necessary, shall refine the several certification requirements, standards for approval of institutions of principal and assistant principal education, standards for institution-based innovative and experimental programs, and standards for improved efficiencies in the administration of the approved programs.

(d) Repealed by Session Laws 1989, c. 385, s. 1.

(d1) It is the policy of the State of North Carolina that, subsequent to the adoption of a system of classroom teacher differentiation and prerequisites to candidacy for principal, a classroom teacher must have attained at least the second level of differentiation, have at least four years of classroom teaching experience, and possess, at least, a Masters Degree in Education Administration. This subsection shall not apply to educational personnel certified as of July 1, 1984.

(e) It shall be unlawful for any board of education to employ or keep in service any principal or supervisor who neither holds nor is qualified to hold a certificate in compliance with the provision of the law or in accordance with the regulations of the State Board of Education.

(f) The allotment of classified principals shall be one principal for each duly constituted school with seven or more state-allotted teachers and shall be included in the calculation of the allotment of general teachers set out in G.S. 115C-301(b)(i).

(g) Local boards of education shall have authority to employ supervisors in addition to those that may be furnished by the State when, in the discretion of the board of education, the schools of the local school administrative unit can thereby be more efficiently and more economically operated and when funds for the same are provided in the current expense fund budget. The duties of such supervisors shall be assigned by the superintendent with the approval of the board of education.

(h) All principals and supervisors employed in the public schools of the State or in schools receiving public funds, shall be required either to hold or be qualified to hold a certificate in compliance with the provision of the law or in accordance with the regulations of the State Board of ~~Education: Provided, that nothing herein shall prevent the employment of temporary personnel under such rules as the State Board of Education may prescribe.~~ Education."

(b) G.S. 115C-289 reads as rewritten:

"§ 115C-289. Assignment of principal's duties to assistant or acting principal; duties of State-funded assistant principals.

(a) Any duty or responsibility assigned to a principal by statute, State Board of Education regulation, or by the superintendent may, with the approval of the local board of education, be assigned by the principal to an assistant principal designated by the local board of education or to an acting principal designated by a principal.

(b) ~~Except as provided in subsection (c), all~~ All persons employed as assistant principals in State-allotted positions, or as assistant principals in full-time positions regardless of funding source, in the public schools of the State or in schools receiving public funds, shall, in addition to other applicable requirements, be required either to hold or be qualified to hold a principal's certificate in compliance with applicable law and in accordance with the regulations of the State Board of Education. ~~Except as provided in subsection (c), it~~ It shall be unlawful for any board of education to employ or keep in service any assistant principal who neither holds nor is qualified to hold a principal's certificate in compliance with applicable law and in accordance with the regulations of the State Board of Education. ~~Nothing herein shall prevent the employment of temporary personnel under such rules as the State Board of Education may prescribe.~~

~~(c)~~ Subsection (b) shall not apply to any person who was employed as an assistant principal in either a full- or part-time position during the 1986-87 school term until the first day of the 1990-91 school term. Such persons shall meet all other requirements which are applicable to teachers generally. In addition, the local board of education may in its discretion require that any person employed as an assistant principal make satisfactory progress, as determined by the local board, toward meeting the requirements for certification as a principal.

(d) Assistant principals paid from State funds shall not have regularly assigned teaching duties."

"§ 115C-12.1. Training of State Board members.

The State Board of Education shall establish minimum training requirements for members of the State Board of Education. All Board members shall participate in training programs, as required by the State Board."

(d) Chapter 115C of the General Statutes is amended by adding a new section to read:

"§ 115C-50. Training of board members.

All members of local boards of education shall receive a minimum of 12 clock hours of training annually. The training shall include but not be limited to public school law, public school finance, and duties and responsibilities of local boards of education. The training may be provided by the North Carolina School Boards Association, the Institute of Government, or other qualified sources at the choice of the local board of education."

(e) Chapter 116 of the General Statutes is amended by adding a new section to read:

"§ 116-11.2. Duties regarding programs in education administration.

The Board of Governors shall direct the constituent institutions with programs in education administration to revise the programs to reflect any increased standards required for programs approved by the State Board of Education, including new requirements for school-based leadership in the public schools. The Board of Governors shall monitor the programs and devise an assessment plan for all programs leading to certification in education administration."

(f) Of the funds appropriated to the Board of Governors of The University of North Carolina for the 1991-93 fiscal biennium, the sum of $150,000 for the 1991-92 fiscal year and the sum of $570,000 for the 1992-93 fiscal year shall be used to expand the Principals Executive Program operated by the Institute of Government. Of these funds, the sum of $150,000 for the 1991-92 fiscal year and the sum of $150,000 for the 1992-93 fiscal year shall be used to expand the program at the Chapel Hill site; the sum of $420,000 for the 1992-93 fiscal year shall be used to provide the program at additional sites throughout the State and to offer the program to assistant principals.

Requested by: Representative Holt

––-NO WAIVERS OF FUNDS FOR SCHOOL HEALTH COORDINATORS

Sec. 201. G.S. 115C-238.6(a) reads as rewritten:

PART XXXV.––-DEPARTMENT OF COMMUNITY COLLEGES

Requested by: Representatives Fussell, Payne

––-HOLD HARMLESS/COMMUNITY COLLEGES SERVING MILITARY BASES

Sec. 202. The State Board of Community Colleges may use funds available to it for the 1991-92 fiscal year to allot funds at the 1990-91 budget level to institutions whose enrollments were adversely affected by Operation Desert Storm so that those institutions can serve the returning troops. If the institutions do not need these additional funds to serve returning troops, the additional funds allotted pursuant to this section shall revert at the end of the 1991-92 fiscal year.

Requested by: Representatives Fussell, Payne

––-COMMUNITY COLLEGE TUITION INCREASE

Sec. 203. (a) The State Board of Community Colleges shall adopt tuition rates beginning in the fall quarter of 1991 in the amount of eleven dollars ($11.00) per credit hour up to a cap of 14 credit hours for in-State students.

The State Board of Community Colleges shall adopt tuition rates beginning in the fall quarter of 1991 in the amount of thirty dollars ($30.00) a course for occupational extension courses.

(b) The State Board of Community Colleges shall adopt tuition rates beginning in the fall quarter of 1991 for out-of-State students that require the student to pay the full cost to the State on a per FTE basis.

PART XXXVI.––-COLLEGES AND UNIVERSITIES

Requested by: Representatives Payne, Fussell

––-CLINICAL FACULTY/NURSE MIDWIFERY EDUCATION PROGRAM

Sec. 204. Of the funds appropriated to the Board of Governors of The University of North Carolina, the sum of $95,000 for the 1991-92 fiscal year and the sum of $95,000 for the 1992-93 fiscal year shall be used to hire additional clinical faculty to establish a nurse midwifery education program. The program shall offer multiple track options for participating nurses; the multiple tracks shall take into consideration the varying degrees of preparation, and the only professional prerequisite shall be that applicants be licensed as registered nurses in the State of North Carolina, regardless of their education preparation. The program shall prepare participants for certification as nurse midwives; participants shall not be required to complete a baccalaureate degree or masters degree, although this option may be offered to interested participants. In order to maximize the impact of the training program on service provision in medically underserved areas, a committee composed of a nurse midwife and a physician providing obstetrical services to a medically underserved population, two members of the Division of Maternal and Child Health and two members of the Office of Rural Health and Resource Development shall be established. This committee shall review all applicants to identify priority candidates who will meet the needs of the State's underserved population. The applications of these priority candidates shall then be forwarded to the admissions committee of the nurse midwifery education program for consideration.

Requested by: Representatives Payne, Fussell

––-" OTHER" CATEGORY OF HEALTH AFFAIRS STUDENTS FUNDING LIMITS

Sec. 205. The Board of Governors of The University of North Carolina shall not provide any additional enrollment increase funds for growth in the "Other" category for continuing education in the Health Affairs budget code at the University of North Carolina at Chapel Hill until the fees budgeted for this category are increased to cover a greater proportion of the costs per contact hour.

Requested by: Representatives Nesbitt, Diamont

––-UNC ENROLLMENT/FACULTY

Sec. 206. In its allocation of the funds provided to the Board of Governors of The University of North Carolina for enrollment increases, the Board shall consider the impact of the changes in the student faculty ratio on each campus and shall use sufficient resources to insure that no campus has to reduce the number of budgeted teaching positions below the number budgeted for the 1990-91 academic year.

PART XXXVII.––-DEPARTMENT OF TRANSPORTATION

Requested by: Representative Nesbitt

––-LEGISLATIVE SERVICES COMMISSION TO PAY FOR CHAIRMEN OF TRANSPORTATION SUBCOMMITTEE OF THE HOUSE APPROPRIATIONS COMMITTEE TO ATTEND HIGHWAY OVERSIGHT COMMITTEE MEETINGS

Sec. 207. The Legislative Services Commission shall pay the costs of the attendance of the Chairmen of the Transportation Subcommittee of the House Appropriations Committee at all meetings of the Joint Legislative Highway Oversight Committee. These subsistence and travel expenses shall be as provided in G.S. 120-3.1.

Requested by: Representative Holt

––-BIENNIAL BILLBOARD REPORT BY DEPARTMENT OF TRANSPORTATION

Sec. 208. The Department of Transportation shall make a biennial report to the General Assembly beginning on January 1, 1993, on its Off-Premise Sign Regulatory Program.

The report shall include:

(1) The number of off-premise signs (billboards) that conform with State and local regulations and the number of off-premise signs that do not conform with State and local regulations in each county along federal-aid primary highways.

(2) The number of conforming and nonconforming off-premise signs on State-owned railroad right-of-way.

(3) The number of nonconforming off-premise signs removed during the fiscal year.

(4) The number of permitted tree cuttings and the number of illegal tree cuttings in front of off-premise signs.

(5) Expenses incurred in regulating off-premise signs and receipts from application and renewal permit fees.

Requested by: Representative McLaughlin

––-MAINTENANCE OF STATE HIGHWAY BRIDGES

Sec. 209. G.S. 136-97(b) reads as rewritten:

"(b) The Department of Transportation, as part of maintaining the highways, bridges, and watercourses of this State, ~~shall~~ may haul all debris removed from on, under, or around a bridge to an appropriate disposal site for solid waste, where the debris shall be disposed of in accordance with law. This requirement may be waived when bridge closure has an adverse impact on public safety or creates a significant hardship to the traveling public by restricting all access or necessitating a significant detour. In these instances, the minimum amount of debris which must be removed to restore service may be passed downstream."

Requested by: Representative McLaughlin

––-DEPARTMENT OF TRANSPORTATION FINANCIAL AND OPERATIONAL AUDIT

Sec. 210. (a) The State Auditor shall conduct a financial and operational audit of two Highway Divisions. The audit shall:

(1) List the functions performed by the Division offices. Calculate the percentage of time spent on each major category of maintenance and construction work;

(2) Analyze the equipment used in the Highway Divisions, with an emphasis on the amount of rental equipment utilized;

(3) Study the staffing levels for construction and maintenance operations. Report on the ratio of workers to supervisors. Review Department of Transportation procedures and criteria for establishing the size of maintenance crews;

(4) Study whether construction and maintenance activities are being properly charged to appropriate accounts; and

(5) Determine how maintenance workers are used during cold weather months and periods of inclement weather.

(b) The Fiscal Research Division shall cooperate with and assist the State Auditor in accomplishing this audit.

PART XXXVIII.––-DEPARTMENT OF CRIME CONTROL AND PUBLIC SAFETY

Requested by: Representatives Redwine, Anderson

Sec. 211. Notwithstanding G.S. 20-187.83, the salary increase provided by G.S. 20-187.23 is suspended for the 1991-92 fiscal year.

PART XXXIX.––-JUDICIAL DEPARTMENT

Requested by: Representatives Redwine, Anderson

––-SALARIES/ASSISTANT AND DEPUTY CLERKS OF SUPERIOR COURT

Sec. 212. Notwithstanding the provisions of G.S.7A-102(c), assistant clerks and deputy clerks of superior court shall not receive any automatic increment during the 1991-92 fiscal year.

PART XL.––-DEPARTMENT OF HUMAN RESOURCES

Requested by: Representatives Nye, Easterling

––-MENTAL HEALTH, DEVELOPMENTAL DISABILITIES, AND SUBSTANCE ABUSE SERVICES FUNDS

Sec. 213. (a) Of the funds appropriated in this Title to the Department of Human Resources, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, $6,000,000 for the 1991-92 fiscal year and $6,000,000 for the 1992-93 fiscal year shall be expended in accordance with the Mental Health Study Commission Plans adopted by the General Assembly, in the following amounts:

(1) Services for the mentally ill; $1,730,000

(2) Services for the developmentally

disabled; $1,960,000

(3) Services for substance abusers. $2,310,000.

(b) Of the funds allocated in subsection (a) of this section for Services for the developmentally disabled, $230,000 shall be transferred in the 1991-92 fiscal year and $230,000 in the 1992-93 fiscal year to the Department of Environment, Health, and Natural Resources, Division of Maternal and Child Health, for the United Cerebral Palsy therapeutic preschools.

Requested by: Representatives Nye, Easterling

––-MENTAL HEALTH, DEVELOPMENTAL DISABILITIES, AND SUBSTANCE ABUSE SERVICES FUNDS/SUBSTANCE ABUSE TREATMENT PROGRAMS FOR PREGNANT WOMEN

Sec. 214. (a) Effective January 1, 1992, of the funds appropriated in this Title to the Department of Human Resources, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, $400,000 for the 1991-92 fiscal year and $800,000 for the 1992-93 fiscal year shall be used to set up two regional residential and outpatient treatment programs for pregnant women who abuse drugs or alcohol. These programs shall be operated by public or private nonprofit agencies and shall include case management services, transportation, day care, prevention, residential placement, outpatient services, and money for household start-up costs. Outpatient services shall be located in a public health department, community, migrant or rural health center, hospital, or other agency that provides prenatal care.

(b) Effective July 1, 1991, of the funds appropriated in this Title to the Department of Human Resources, Division of Mental Health, Mental Retardation, and Substance Abuse Services, $220,000 for the 1991-92 fiscal year and $220,000 for the 1992-93 fiscal year shall be used to continue support for the residential and outpatient treatment center located in Robeson County.

Requested by: Representative McLaughlin

––-STATE SUBSIDY/COUNTY DETENTION HOME

Sec. 215. (a) G.S. 134A-38 reads as rewritten:

"§ 134A-38. State subsidy to county detention homes.

The Department shall develop a State subsidy program to pay a county detention home which provides ~~regional~~ juvenile detention services and meets State standards a certain ~~portion of its operating cost and its per capita daily cost~~ per diem per child for any child cared for ~~from another county~~ as recommended in said report. In general, this ~~subsidy~~ per diem should be fifty percent (50%) of the ~~operating costs of a county detention home and one hundred percent (100%) of the per capita daily cost~~ total cost of caring for a child from another county; any county placing a child in the county detention home of another county providing regional juvenile detention services or a regional detention home should pay fifty percent (50%) of the per capita daily cost of caring for the child to the Department. from within the county and 100 percent (100%) of the total cost of caring for a child from another county. Any county placing a child in a detention home in another county shall pay fifty percent (50%) of the total cost of caring for the child to the Department. The exact funding formulas may be varied by the Department to operate within existing State appropriations or other funds that may be available to pay for juvenile detention care."

(b) Of the funds appropriated to the Department of Human Resources, Division of Youth Services in this Title, $500,000 for the 1991-92 fiscal year and $500,000 for the 1992-93 fiscal year shall be used to implement this section.

Requested by: Representatives Easterling, Nye

––-COUNTY PROTECTIVE SERVICES ALLOCATION

Sec. 216. Of the funds appropriated to the Department of Human Resources, Division of Social Services, in this Title, $3,250,000 for the 1991-92 fiscal year and $7,000,000 for the 1992-93 fiscal year shall be allocated to county departments of social services beginning January 1, 1992, according to the following formula:

(1) All county departments shall receive a base allocation of $10,000 for the 1991-92 fiscal year and $10,000 for the 1992-93 fiscal year.

(2) The balance of the funds each year of the fiscal biennium shall be allocated to each county department based upon the percentage of the number of child abuse and neglect reports in that county compared to the total number of reports of child abuse and neglect statewide. These percentages shall be computed from the reports received by the Division of Social Services' Central Registry of Abuse and Neglect for the last two fiscal years.

Funds allocated to county departments of social services pursuant to this subsection shall be used to provide additional staff to carry out investigations of reports of child abuse or neglect or to provide protective or preventive services in cases in which the department confirms neglect, abuse, or dependency. However, if a county demonstrates to the Division of Social Services that it has adequate protective services staff, that county department may use these allocated funds to purchase or provide treatment or other support services to children and their families in confirmed cases of child abuse, neglect, or dependency. All expenditures made by any county department of social services from funds allocated pursuant to this subsection shall be in direct support of the department's program of protective services for children. These funds shall not be used to supplant any Social Services Block Grant funds or county appropriations budgeted for protective services for children.

The Department of Human Resources, Division of Social Services, shall establish guidelines and criteria to assure that the allocations to county departments of social services pursuant to this subsection are used in accordance with the intent and purpose of this subsection.

(f) The Division of Social Services shall prepare a report on the progress achieved in improving child protective services throughout the State. The report shall include an analysis of county staffing patterns, future county staffing and funding requirements needed to meet the Division's recommended guidelines, and analysis of the barriers to recruitment and retention of county child protective services staff, and a summary of the Division's progress in implementing improvements to the State's training and oversight responsibilities. The Division shall present this report to the 1991 General Assembly, to the Fiscal Research Division, and to the North Carolina Child Fatality Task Force established pursuant to Article 62 of Chapter 143 of the General Statutes by March 15, 1992.

Requested by: Representatives Nye, Easterling

––-MEDICAID ELIGIBLE PREGNANT WOMEN'S SERVICES

Sec. 217. (a) Effective October 1, 1991, the Department of Human Resources, Division of Medical Assistance, shall provide medical coverage for nutritional counseling, psychosocial counseling, and predelivery and postpartum home visits by maternity care coordinators and public health nurses, for Medicaid eligible pregnant women.

(b) Of the funds appropriated to the Department of Human Resources, Division of Medical Assistance, in this Title, $564,400 for the 1991-92 fiscal year and $664,520 for the 1992-93 fiscal year shall be used to provide the State share of the increased coverage for the services mandated by subsection (a) of this section.

Requested by: Representative Nye

––-DEPARTMENT OF HUMAN RESOURCES PHARMACY STUDY

Sec. 218. The Department of Human Resources shall contract for a survey study to determine the cost of filling a prescription in North Carolina. The Department shall consider the impact of refills on the dispensing fee and any other issues it considers necessary and shall implement appropriate adjustments to the pharmacy dispensing fee in the State Medicaid Plan based on the outcome of the study if the Department identifies funds available to it sufficient for the implementation. The Department shall include in its adjustments the adjustment of the fee annually to reflect appropriate inflationary increases as established in nationally recognized pricing indexes.

Requested by: Representative Nye

––-PHARMACY DISPENSING FEE INCREASE

Sec. 219. Effective January 1, 1992, the professional limits fee for dispensing drugs shall be $5.60 per prescription, adjusted in accordance with subdivision (5) of Section 93, Title 1, of this act.

Requested by: Representatives Diamont, Nye, Easterling

––-PURCHASE TRANSPORTATION SERVICES FOR PREGNANT WOMEN AND CHILDREN ON MEDICAID

Sec. 220. (a) Of the funds appropriated from the General Fund to the Department of Human Resources, in this Title, $300,000 for the 1991-92 fiscal year and $300,000 for the 1992-93 fiscal year shall be transferred to the Department of Transportation, Public Transportation Division, to purchase transportation services for pregnant women and children on Medicaid. All funds distributed by the Department, under this section, to counties are intended to purchase additional transportation services and not to supplant funds now being used by local governments for that purpose. These funds are not to be used towards the purchase of transportation vehicles or equipment, and may not be used to cover State administrative costs. Only those counties maintaining Medicaid transportation services to pregnant women and children at a level that is not reduced from the level of services in place during the 1989-90 fiscal year shall be eligible for additional transportation assistance funds.

(b) The Public Transportation Division of the Department of Transportation shall distribute these funds to the counties according to the following formula:

(1) Fifty percent (50%) divided equally among all eligible counties;

(2) Forty-five percent (45%) on the basis of the number of pregnant women and children receiving Medicaid in the county as a percentage of the total number of pregnant women and children receiving Medicaid statewide; and

(3) Five percent (5%) based upon a population density factor that recognizes the higher transportation costs in sparsely populated counties.

The Department of Transportation shall develop appropriate procedures for the distribution and use of these funds and shall adopt rules to implement these procedures.

(c) Funds distributed by the Department of Transportation under this section shall be used by counties in a manner consistent with implemented transportation development plans which have been approved by the Department of Transportation and the board of county commissioners. To receive funds apportioned for a given fiscal year, a county shall have an approved transportation plan. Funds that are not obligated in a given fiscal year due to the lack of an approved transportation plan shall be distributed to the eligible counties based on the distribution formula in subsection (b) of this section.

(d) The Department of Transportation shall report to the Joint Legislative Commission on Governmental Operations by March 15, 1992, on the amount of money that has been received and spent by each county pursuant to this section and the new transportation services provided in each county to pregnant women and children receiving Medicaid pursuant to this section.

Requested by: Representative Nye

––-DOMICILIARY RATE INCREASE

Sec. 221. (a) Effective July 1, 1991, the maximum monthly rate for ambulatory residents in domiciliary care facilities shall be $766.00 and the maximum monthly rate for semiambulatory residents shall be $803.00. Effective July 1, 1992, the maximum monthly rates for ambulatory residents shall be increased to $777.00 and for semiambulatory residents to $814.00.

(b) Effective only if there are funds appropriated in this act to fund the increase authorized by this subsection, subsection (a) of this section reads as rewritten:

"(a) Effective July 1, 1991, the maximum monthly rate for ambulatory residents in domiciliary care facilities shall be ~~$766.00~~ $832.00 and the maximum monthly rate for semiambulatory residents shall be ~~$803.00.~~ $871.00. Effective July 1, 1992, the maximum monthly rates for ambulatory residents shall be increased to ~~$777.00~~ $843.00 and for semiambulatory residents to ~~$814.00.~~ $882.00."

Requested by: Representatives Nesbitt, Diamont, Nye

––-WAKE COUNTY DETENTION FACILITY ALLOCATION

Sec. 221.1. Of the funds appropriated from the General Fund to the Department of Human Resources, Division of Youth Services, the sum of $400,000 for the 1991-92 fiscal year and the sum of $400,000 for the 1992-93 fiscal year shall be used for the operation of the Wake County Detention facility as a regional detention facility.

PART XLI.––-DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT

Requested by: Representatives James, Redwine, Ethridge, Kimsey

––-VISITOR AND WELCOME CENTER FUNDS

Sec. 222. (a) Before any other transfers are made pursuant to G.S. 20-81.3(c) or 20-81.3(g), the Secretary of Transportation shall allocate from the "Personalized Registration Plate Fund" $150,000 for the 1991-92 fiscal year and $150,000 for the 1992-93 fiscal year for personnel to staff Visitor and Welcome Centers as follows:

(1) $50,000 for the 1991-92 fiscal year and $50,000 for the 1992-93 fiscal year to the Albemarle Regional Planning and Development Office in the Town of Hertford for the Visitor and Welcome Center on U.S. Highway 17 in Camden County;

(2) $50,000 for the 1991-92 fiscal year and $50,000 for the 1992-93 fiscal year to the Southeastern Welcome Center, Inc., for the Visitor and Welcome Center on U.S. Highway 17 South in Brunswick County; and

(3) $50,000 for the 1991-92 fiscal year and $50,000 for the 1992-93 fiscal year to Smoky Mountain Hosts of North Carolina, Inc., for the Visitor and Welcome Center on U.S. Highway 441 in Macon County.

(b) This section expires June 30, 1993.

Requested by: Representatives Ethridge, H. Hunter

––-PETROLEUM OVERCHARGE FUNDS ALLOCATION

Sec. 223. (a) The funds and interest thereon received from the case of United States v. Exxon are deposited in the Special Reserve for Oil Overcharge Funds. There is appropriated from the Special Reserve to the Department of Economic and Community Development the sum of $10,900,000 for the 1991-92 fiscal year and the sum of $6,001,511 for the 1992-93 fiscal year to be allocated as follows:

(1) The sum of $2,200,000 for the 1991-92 fiscal year and the sum of $1,200,302 for the 1992-93 fiscal year shall be used for projects under the State Energy Conservation Plan and Energy Extension Service Program:

(2) The sum of $2,500,000 for the 1991-92 fiscal year and the sum of $1,380,348 for the 1992-93 fiscal year shall be used for energy conservation programs for hospitals and schools:

(3) The sum of $3,200,000 for the 1991-92 fiscal year and the sum of $1,740,438 for the 1992-93 fiscal year shall be used for the Low Income Weatherization Program:

(4) The sum of $3,000,000 for the 1991-92 fiscal year and the sum of $1,680,423 for the 1992-93 fiscal year shall be used for the Low Income Home Energy Assistance Program (LIHEAP).

(b) There is appropriated from the funds and interest thereon received from the United States Department of Energy's Stripper Well Litigation (MDL378) which remain in the Special Reserve for Oil Overcharge Funds to the Department of Economic and Community Development the sum of $4,898,489 for the 1992-93 fiscal year to be allocated as follows:

(1) The sum of $999,698 shall be used for projects under the State Energy Conservation Plan and Energy Extension Service Program;

(2) The sum of $1,119,652 shall be used for energy conservation programs for hospitals and schools;

(3) The sum of $1,459,562 shall be used for the Low Income Weatherization Program; and

(4) The sum of $1,319,577 shall be used for the Low Income Home Energy Assistance Program (LIHEAP).

(c) Any funds remaining in the Special Reserve for Oil Overcharge Funds after the allocations made pursuant to subsections (a) and (b) of this section may be expended only as authorized by the General Assembly. All interest or income accruing from all deposits or investments of cash balances shall be credited to the Special Reserve for Oil Overcharge Funds.

(d) The funds and interest thereon received from the Diamond Shamrock Settlement which remain in a reserve in the Office of State Budget and Management for the Division of Energy to administer the petroleum overcharge funds pursuant to Section 112 of Chapter 830 of the 1987 Session Laws shall continue to be available to the Division of Energy in the Department of Economic and Community Development on an as-needed basis.

(e) The Department of Economic and Community Development shall submit comprehensive annual reports to the General Assembly by May 15, 1992, and January 31, l993, which detail the use of all petroleum overcharge funds. Any State department or agency that has received petroleum overcharge funds shall provide all information requested by the Department of Economic and Community Development for the purpose of preparing these reports.

Requested by: Representatives Ethridge, H. Hunter, Michaux

––-ECONOMIC DEVELOPMENT FUNDS

Sec. 224. (a) Of the funds appropriated in this Title to the North Carolina Rural Economic Development Center, Inc., $1,500,000 for the 1991-92 fiscal year and $1,500,000 for the 1992-93 fiscal year, shall be allocated to local community development corporations. These funds shall be used to support community economic development projects and activities within the State's minority community.

Of these funds, $750,000 for each fiscal year shall be used for direct grants to local community development corporations to support operations and project activities, $500,000 for each fiscal year shall be used for direct grants to community development corporations classified as being in the emerging or sustaining phase, and $250,000 for each fiscal year shall be used for matching funds for the North Carolina Association of Community Development Corporations. If these matching funds are not matched before the end of the 1991-92 fiscal year, they shall be used during the 1992-93 fiscal year for direct grants to local community development corporations classified as being in the emerging or sustaining phase.

The North Carolina Rural Economic Development Center, Inc., shall report quarterly to the Joint Legislative Commission on Governmental Operations on the use of the funds allocated in this subsection.

For purposes of this subsection, the term "community development corporation" means a nonprofit corporation, chartered pursuant to Chapter 55A of the General Statutes and tax-exempt pursuant to section 501(c)(3) of the Internal Revenue Code, whose primary mission is to develop and improve low-income communities and neighborhoods through economic and related development, whose activities and decisions are initiated, managed, and controlled by their constituencies, and whose primary function is to act as deal maker and packager of projects and activities that will increase their constituencies' opportunities to become owners, managers, and producers.

(b) Of the funds appropriated in this Title to the North Carolina Rural Economic Development Center, Inc., $500,000 for the 1991-92 fiscal year and $500,000 for the 1992-93 fiscal year shall be used for Land Loss Prevention Project, Inc., to provide free legal representation to low-income financially distressed small farmers. The Land Loss Prevention Project, Inc., shall not use these funds to represent farmers who have income and assets that would make them financially ineligible for legal services pursuant to Title 45, Part 1611 of the Code of Federal Regulations. The North Carolina Rural Economic Development Center, Inc., with the Land Loss Prevention Project, Inc., shall report quarterly to the Joint Legislative Commission on Governmental Operations on the use of these funds.

(c) Of the funds appropriated in this Title to the North Carolina Rural Economic Development Center, Inc., $500,000 for the 1991-92 fiscal year and $500,000 for the 1992-93 fiscal year shall be used for the North Carolina Coalition of Farm and Rural Families, Inc., for its Small Farm Economic Development Project. These funds shall be used to foster economic development within the State's rural farm communities by offering financial, marketing, and technical assistance to small and limited resource farmers. Seventy-five percent (75%) of these funds shall be used for a revolving loan fund, fifteen percent (15%) of these funds shall be used to establish an agricultural market promotion matching fund program, and ten percent (10%) of these funds shall be used for operational and administrative support. The North Carolina Rural Economic Development Center, Inc., with the North Carolina Coalition of Farm and Rural Families, Inc., shall report quarterly to the Joint Legislative Commission on Governmental Operations on the use of these funds.

(d) Of the funds appropriated in this Title to the North Carolina Rural Economic Development, Inc., $300,000 for the 1991-92 fiscal year and $300,000 for the 1992-93 fiscal year for the North Carolina Minority Economic Development, Inc., shall be used to foster minority economic development within the State through policy analysis, information and technical assistance, and resource expansion. The North Carolina Rural Economic Development Center, Inc., and the North Carolina Institute for Minority Economic Development, Inc., shall research and identify key issues affecting the economic well-being of the State's ethnic minority community and issue annual reports with appropriate recommendations; provide information and technical assistance to organizations with minority economic development-based projects in common areas of need and interests; develop a resource bank of data and information to strengthen minority economic development initiatives; and facilitate training in appropriate areas of need. The North Carolina Rural Economic Development Center, Inc., with the North Carolina Institute for Minority Economic Development, Inc., shall report quarterly to the Joint Legislative Commission on Governmental Operations on the use of these funds.

(e) Of the funds appropriated in this Title to the North Carolina Rural Economic Development Center, Inc., $1,000,000 for the 1991-92 fiscal year and $1,000,000 for the 1992-93 fiscal year shall be allocated to local minority-owned and operated credit unions and to the North Carolina Minority Credit Union Support Center, Inc. These funds shall be used to foster minority economic development within the State by increasing the lending capacity of minority-owned and operated credit unions. Ninety percent (90%) of these funds shall be allocated to local minority-owned and operated credit unions for capitalization of economic development and housing loans, and ten percent (10%) of these funds shall be allocated to the North Carolina Minority Credit Union Support Center, Inc., for operational and administrative support. The North Carolina Rural Economic Development Center, Inc., shall report quarterly to the Joint Legislative Commission on Governmental Operations on the use of these funds.

(f) Of the funds appropriated in this Title to the North Carolina Rural Economic Development Center, Inc., $650,000 for the 1991-92 fiscal year and $650,000 for the 1992-93 fiscal year shall be used to expand the Microenterprise Loan Program. Of these funds $325,000 for each fiscal year shall be used as loan loss reserves and $325,000 for each fiscal year shall be used to cover operational costs. These funds are to be matched on the basis of two dollars of non-State funds for every one dollar of State funds. The North Carolina Rural Economic Development Center, Inc., shall report quarterly to the Joint Legislative Commission on Governmental Operations on the use of these funds.

(g) Of the funds appropriated in this Title to the North Carolina Rural Economic Development Center, Inc., $50,000 for the 1991-92 fiscal year and $50,000 for the 1992-93 fiscal year shall be used for its expenses in administrating this section.

Requested by: Representatives Ethridge, H. Hunter

––-HOME PROGRAM FUNDING LIMIT

Sec. 225. The Department of Economic and Community Development shall not spend any funds appropriated in this Title for the State administration of the federal HOME Program until Congress appropriates federal funds for the Program.

PART XLII.––-DEPARTMENT OF ENVIRONMENT, HEALTH, AND NATURAL RESOURCES

Requested by: Representatives Ethridge, H. Hunter

––-EHNR USE OF FEES

Sec. 226. (a) If the revenues received pursuant to G.S. 113A-119.1 exceed the amount in anticipated revenues from this source for the 1991-92 fiscal year or for the 1992-93 fiscal year, then the Department of Environment, Health, and Natural Resources may use up to $30,000 of this revenue for the 1991-92 fiscal year and up to $50,000 of this revenue for the 1992-93 fiscal year for permitting, education, and compliance activities, including salaries and necessary support, in the Division of Coastal Management. These funds are in addition to any other funds appropriated for this purpose.

(b) If the revenues received pursuant to G.S. 113A-54.2 exceed the amount in anticipated revenues from this source for the 1991-92 fiscal year or the 1992-93 fiscal year, then the Department of Environment, Health, and Natural Resources may use up to $140,000 of this revenue for the 1991-92 fiscal year and up to $160,000 of this revenue for the 1992-93 fiscal year for education, erosion control plan approval, and compliance activities in the Sedimentation Control Program, including salaries and necessary support, in the Division of Land Resources. These funds are in addition to any other funds appropriated for this purpose.

(c) If the revenues received pursuant to G.S. 143-215.28A exceed the amount in anticipated revenues from this source for the 1991-92 fiscal year or the 1992-93 fiscal year, then the Department of Environment, Health, and Natural Resources may use up to $20,000 of this revenue for the 1991-92 fiscal year and up to $20,000 of this revenue for the 1992-93 fiscal year for permitting, education, and compliance activities in the Dam Safety Program, including salaries and necessary support, in the Division of Land Resources. These funds are in addition to any other funds appropriated for this purpose.

(d) If the revenues received pursuant to G.S. 143B-290 exceed the amount in anticipated revenues from this source for the 1991-92 fiscal year or for the 1992-93 fiscal year, then the Department of Environment, Health, and Natural Resources may use up to $40,000 of this revenue for the 1991-92 fiscal year and up to $70,000 of this revenue for the 1992-93 fiscal year for permitting, education, and compliance activities in the Mining Program, including salaries and necessary support, in the Division of Land Resources. These funds are in addition to any other funds appropriated for this purpose.

Requested by: Representatives Ethridge, H. Hunter

––-COMMUNITY WATER SYSTEMS PERMITS FEES

Sec. 227. If Senate Bill 449, 1991 Session, is ratified, then there is appropriated from the General Fund to the Department of Environment, Health, and Natural Resources the sum of $258,938 for the 1991-92 fiscal year and the sum of $621,450 for the 1992-93 fiscal year to support the public water systems program; provided, however, if the revenues raised from Senate Bill 449, 1991 Session, as ratified, are less than $258,938 for the 1991-92 fiscal year or are less than $621,450 for the 1992-93 fiscal year, then the appropriation is reduced accordingly.

Requested by: Representatives Ethridge, H. Hunter

––-CLEAN AIR ACT PERMIT FEES

Sec. 228. If House Bill 551, 1991 Session, is ratified, then there is appropriated from the Title IV nonreverting account established in G.S. 143-215.3A, as written by House Bill 551, 1991 Session, to the Department of Environment, Health, and Natural Resources the sum of $999,855 for the 1991-92 fiscal year and the sum of $3,992,390 for the 1992-93 fiscal year to be used for the development and implementation of the Title V program in accordance with G.S. 143-215.3A, as enacted by House Bill 551, 1991 Session; provided, however, if the revenues raised from House Bill 551, 1991 Session, as ratified, are less than $999,855 for the 1991-92 fiscal year or are less than $3,992,390 for the 1992-93 fiscal year, then the appropriation is reduced accordingly.

Requested by: Representatives Ethridge, H. Hunter

––-HAZARDOUS WASTE INSPECTORS

Sec. 229. As industry is permitted that is subject to G.S. 130A-295.02 requiring the establishment of resident inspectors, the Department of Environment, Health, and Natural Resources may request through the Office of State Budget and Management the authorization to establish new positions and support costs necessary to comply with G.S. 130A-295.02. The Department shall report these positions as a continuation item in its next biennial budget request.

Requested by: Representatives Ethridge, H. Hunter

––-VITAL RECORDS FEES

Sec. 230. If Senate Bill 341, 1991 Session, is ratified, then there is appropriated from the Vital Records Automation Fund established under G.S. 130A-93.1 as written in Senate Bill 341, to the Department of Environment, Health, and Natural Resources the sum of $800,000 for the 1991-92 fiscal year and the sum of $800,000 for the 1992-93 fiscal year, for defraying the cost of automating the vital records system; provided, however, if the revenues raised from Senate Bill 341, 1991 Session, as ratified, are less than $800,000 for the 1991-92 fiscal year or are less than $800,000 for the 1992-93 fiscal year, then the appropriation is reduced accordingly.

Requested by: Representatives Ethridge, H. Hunter

––-ASBESTOSIS/SILICOSIS EXAMS FEES

Sec. 231. If Senate Bill 359, 1991 Session, is ratified, then there is appropriated from the General Fund to the Department of Environment, Health, and Natural Resources the sum of $112,124 for the 1991-92 fiscal year and the sum of $119,479 for the 1992-93 fiscal year for defraying the cost of examinations for screening for asbestosis or silicosis conducted by the Department; provided, however, if the revenues raised from Senate Bill 359, 1991 Session, as ratified, are less than $112,124 for the 1991-92 fiscal year or are less than $119,479 for the 1992-93 fiscal year, then the appropriation is reduced accordingly.

Requested by: Representatives Ethridge, H. Hunter

––-RURAL OBSTETRICAL CARE INCENTIVE PROGRAM

Sec. 232. Of the funds appropriated in this Title from the General Fund to the Department of Environment, Health, and Natural Resources, Division of Maternal and Child Health, the sum of $300,000 for the 1991-92 fiscal year and the sum of $500,000 for the 1992-93 fiscal year shall be used to expand the Rural Obstetrical Care Incentive Program established under Section 39.3 of Chapter 1100, 1987 Session Laws, Regular Session 1988. The Rural Obstetrical Care Incentive Program will be used to assist with the cost of malpractice insurance for family physicians, obstetricians, and certified nurse midwives who agree to provide prenatal and obstetrical services in medically underserved areas of the State. General surgeons who provide cesarean section backup to family physicians in counties where there are no obstetricians or where there are no obstetricians willing or able to provide such backup are also eligible for the program. Physicians and certified nurse midwives covered under the Rural Obstetrical Care Incentive Program are required to participate in an obstetrical care coverage plan developed by their local health department or community, migrant, or rural health center, and must agree to provide services to pregnant women regardless of their ability to pay for the services.

Requested by: Representatives Ethridge, H. Hunter

––-NORTH CAROLINA CHILD FATALITY PREVENTION

Sec. 233. (a) Chapter 143 of the General Statutes is amended by adding a new Article to read:

"ARTICLE 62.

"North Carolina Child Fatality Review Team; North Carolina

Child Fatality Task Force and Study.

"§ 143-571. Declaration of public policy.

The General Assembly finds that it is the public policy of this State to prevent child deaths. The General Assembly further finds that the prevention of child deaths is a community responsibility; that professionals from disparate disciplines have responsibilities for children and have expertise that can promote child safety and well-being; and that multidisciplinary reviews of child deaths can lead to a greater understanding of the causes and methods of preventing these deaths. It is, therefore, the intent of the General Assembly, through this Article, to establish a multidisciplinary task force to study the incidence and causes of child deaths and to develop a mechanism for multidisciplinary child death reviews. It is further the intent of the General Assembly that the task force, based upon its study and its expertise, make recommendations to the General Assembly and the Governor for changes to law, rule, and policy that will support the safe and healthy development of our children. It is also the intent of the General Assembly to establish a State Child Fatality Review Team to review certain child deaths.

"§ 143-572. Definitions.

The following definitions apply in this Article:

(1) Local team. A local multidisciplinary child abuse and neglect review team established for a county.

(2) State Team. The North Carolina Child Fatality Review Team.

(3) Task Force. The North Carolina Child Fatality Task Force.

"§ 143-573. Task Force - creation; membership; vacancies.

(a) There is created the North Carolina Child Fatality Task Force within the Department of Environment, Health, and Natural Resources for budgetary purposes only.

(b) The Task Force shall be composed of 24 members, 11 of whom shall be ex officio members, three of whom shall be appointed by the Governor, and eight of whom shall be appointed by the General Assembly, four upon recommendation of the Speaker of the House of Representatives and four upon recommendation of the President Pro Tempore of the Senate. The ex officio members other than the Chief Medical Examiner may designate representatives from their particular departments, divisions, or offices to represent them on the Task Force. The members shall be as follows:

(1) The Chief Medical Examiner;

(2) The Attorney General;

(3) The Director of the Division of Social Services;

(4) The Director of the State Bureau of Investigation;

(5) The Director of the Division of Maternal and Child Health of the Department of Environment, Health, and Natural Resources;

(6) The Director of the Governor's Youth Advocacy and Involvement Office;

(7) The Superintendent of Public Instruction;

(8) The President of the State Board of Education;

(9) The Director of the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services;

(10) The Secretary of the Department of Human Resources;

(11) The Secretary of the Department of Environment, Health, and Natural Resources;

(12) A director of a county department of social services appointed by the Governor upon recommendation of the President of the North Carolina Association of County Directors of Social Services;

(13) A representative from a Sudden Infant Death Syndrome counseling and education program appointed by the Governor upon recommendation of the Director of the Division of Maternal and Child Health of the Department of Environment, Health, and Natural Resources;

(14) A representative from the North Carolina Child Advocacy Institute appointed by the Governor upon recommendation of the President of the Institute;

(15) A representative from a private group, other than the North Carolina Child Advocacy Institute, that advocates for children, appointed by the General Assembly upon recommendation of the Speaker of the House of Representatives upon recommendation of private child advocacy organizations;

(16) A pediatrician, licensed to practice medicine in North Carolina, appointed by the General Assembly upon recommendation of the Speaker of the House of Representatives upon recommendation of the North Carolina Pediatric Society;

(17) A representative from the North Carolina League of Municipalities appointed by the General Assembly upon recommendation of the Speaker of the House of Representatives upon recommendation of the League;

(18) Two public members appointed by the General Assembly upon recommendation of the Speaker of the House of Representatives;

(19) A county or municipal law enforcement officer appointed by the General Assembly upon recommendation of the President Pro Tempore of the Senate upon recommendation of organizations that represent local law enforcement officers;

(20) A district attorney appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate upon recommendation of the President of the North Carolina Conference of District Attorneys;

(21) A representative from the North Carolina Association of County Commissioners appointed by the General Assembly upon recommendation of the President Pro Tempore of the Senate upon recommendation of the Association; and

(22) Two public members appointed by the General Assembly upon recommendation of the President Pro Tempore of the Senate;

(c) All members of the Task Force are voting members. Vacancies in the appointed membership shall be filled by the appointing officer who made the initial appointment. The Speaker of the House of Representatives shall call the first meeting no later than October 1, 1991. At the first meeting the members shall elect a chair who shall preside for the duration of the Task Force.

"§ 143-574. Task Force - duties.

The Task Force shall:

(1) Undertake a statistical study of the incidence and causes of child deaths in this State during 1988 and 1989, and establish a profile of child deaths. The study shall include (i) an analysis of all community and private and public agency involvement with the decedents and their families prior to death, and (ii) an analysis of child deaths by age, cause, and geographic distribution;

(2) Develop a syste