H1840 [SL 2000-67]

SESSION 1999

SESSION LAW 2000-67

AN ACT TO MODIFY THE CURRENT OPERATIONS AND CAPITAL IMPROVEMENTS APPROPRIATIONS ACT OF 1999 AND TO MAKE OTHER CHANGES IN THE BUDGET OPERATION OF THE STATE.

PART I. INTRODUCTION AND TITLE OF ACT

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.

TITLE OF ACT

Section 1.1. This act shall be known as "The Current Operations and Capital Improvements Appropriations Act of 2000."

PART II. CURRENT OPERATIONS/GENERAL FUND

Section 2. 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 fiscal year ending June 30, 2001, according to the schedule that follows. Amounts set out in brackets are reductions from General Fund appropriations for the 2000-01 fiscal year.

Current Operations - General Fund 2000-01

General Assembly $ (272,500)

Judicial Department 14,289,072

Office of the Governor

01. Office of State Budget

and Management 200,000

02. Office of State Budget and Management

Special Appropriations 420,000

Department of Secretary of State 2,854,671

Department of State Auditor 28,054

Department of State Treasurer 8,181,082

Department of Public Instruction (6,480,392)

Department of Justice (238,316)

Department of Administration 627,428

Office of the Governor - Housing Finance 3,000,000

Department of Agriculture and

Consumer Services 2,176,618

Department of Labor (300,000)

Department of Insurance 428,597

Department of Environment and

Natural Resources (1,670,030)

Office of Administrative Hearings (64,368)

Rules Review Commission 48,000

Department of Health and Human Services

01. Office of the Secretary (17,595,000)

02. Division of Aging 250,000

03. Division of Child Development (4,600,000)

04. Division of Services for the

Deaf and Hard of Hearing 1,251,250

05. Division of Social Services 5,450,000

06. Division of Health Services (3,329,871)

07. Division of Medical Assistance (107,176,129)

08. Division of Services

for the Blind 803,750

09. Division of Mental Health,

Developmental Disabilities, and

Substance Abuse Services 22,758,474

10. Division of Facility Services 1,649,000

11. Division of Vocational

Rehabilitation Services 5,358,672

Total Department of Health and Human Services (95,179,854)

Department of Correction (13,685,942)

Department of Commerce

01. Commerce 2,882,671

02. Biotechnology Center 1,000,000

03. Rural Economic Development

Center 1,650,000

04. State Aid to non-State

Entities 4,700,000

Department of Revenue (497,071)

Department of Cultural Resources 3,107,142

Department of Crime Control

and Public Safety (568,000)

Office of the State Controller (115,000)

University of North Carolina - Board

of Governors

01. General Administration (473,190)

02. University Institutional

Programs 39,762,236

03. Related Educational Programs 3,257,457

04. University of North Carolina

at Chapel Hill

a. Health Affairs (385,467)

05. North Carolina State University

at Raleigh

a. Academic Affairs (493,514)

06. University of North Carolina at

Wilmington (140,039)

07. Western Carolina University (159,178)

08. Winston-Salem State University (69,448)

09. North Carolina Central

University 10,646

Total University of North

Carolina - Board of Governors 41,309,503

Community Colleges System Office 17,806,602

Debt Service (52,200,000)

Office of Juvenile Justice 966,726

Reserve for Compensation Increase 456,750,000

Reserve for Compensation Bonus 83,500,000

Premium Reserve (Retirees) (50,000,000)

Retirement Contribution Adjustment (191,294,000)

Premium Reserve (Employees) (32,700,000)

State Employee Reserve 48,000,000

Death Benefit Contribution Adjustment (10,864,400)

Statewide Reserve for Salary Increases (11,000,000)

Reserve for Repairs and Renovations 100,000,000

Clean Water Management Trust Fund 30,000,000

Savings Reserve 120,000,000

GRAND TOTAL CURRENT OPERATIONS –

GENERAL FUND $ 476,796,293

PART III. CURRENT OPERATIONS AND EXPANSION/HIGHWAY FUND

Section 3. 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 fiscal year ending June 30, 2001, according to the schedule that follows. Amounts set out in brackets are reductions from Highway Fund appropriations for the 2000-2001 fiscal year.

Current Operations - Highway Fund 2000-2001

Department of Transportation

01. Administration $ 1,214,914

02. Operations -

03. Construction and Maintenance

a. Construction

(01) Primary Construction -

(02) Secondary Construction 192,000

(03) Urban Construction -

(04) Access and Public

Service Roads -

(05) Discretionary Fund -

(06) Spot Safety Construction -

b. State Funds to Match Federal

Highway Aid -

c. State Maintenance 20,577,486

d. Ferry Operations -

e. Capital Improvements 9,000,000

f. State Aid to Municipalities 192,000

g. State Aid for Public

Transportation and Railroads 7,700,000

h. OSHA - State -

04. Governor's Highway Safety Program -

05. Division of Motor Vehicles 765,284

06. Reserves and Transfers 25,958,316

GRAND TOTAL CURRENT OPERATIONS/

HIGHWAY FUND $ 65,600,000

PART IV. HIGHWAY TRUST FUND

Section 4. Appropriations from the Highway Trust Fund are made for the fiscal year ending June 30, 2001, according to the schedule that follows. Amounts set out in brackets are reductions from Highway Trust Fund appropriations for the 2000-2001 fiscal year.

Highway Trust Fund 2000-2001

01. Intrastate System $ 48,538,626

02. Secondary Roads Construction 6,102,120

03. Urban Loops 19,626,998

04. State Aid - Municipalities 5,092,834

05. Program Administration 4,119,422

GRAND TOTAL/HIGHWAY TRUST FUND $ 83,480,000

PART V. BLOCK GRANT FUNDS

Requested by: Representatives Earle, Nye, Easterling, Redwine, Senators Martin of Guilford, Plyler, Perdue, Odom

DHHS BLOCK GRANT PROVISIONS

Section 5.(a) Appropriations from federal block grant funds are made for the fiscal year ending June 30, 2001, according to the following schedule:

COMMUNITY SERVICES BLOCK GRANT

01. Community Action Agencies $ 12,377,017

02. Limited Purpose Agencies 687,612

03. Department of Health and Human Services

to administer and monitor

the activities of the

Community Services Block Grant 687,612

TOTAL COMMUNITY SERVICES BLOCK GRANT $ 13,752,241

SOCIAL SERVICES BLOCK GRANT

01. County departments of social services $ 27,395,663

(Transfer from TANF - $4,500,000)

02. Allocation for in-home services provided

by county departments of

social services 2,101,113

03. Division of Mental Health, Developmental

Disabilities, and Substance Abuse Services 3,234,601

04. Division of Services for the Blind 3,105,711

05. Division of Facility Services 426,836

06. Division of Aging - Home and Community

Care Block Grant 1,840,234

07. Child Care Subsidies 3,000,000

08. Division of Vocational Rehabilitation -

United Cerebral Palsy 71,484

09. State administration 1,693,368

10. Child Medical Evaluation Program 238,321

11. Adult day care services 2,155,301

12. County departments of social services for

child abuse prevention and

permanency planning 394,841

13. Transfer to Preventive Health Services

Block Grant for emergency medical services 213,128

14. Transfer to Preventive Health Services Block

Grant for AIDS education, counseling, and

testing 66,939

15. Department of Administration

for the N.C. Commission of Indian Affairs

In-Home Services Program for the elderly 203,198

16. Division of Vocational Rehabilitation -

Easter Seals Society 116,779

17. UNC-CH CARES Program for training and

consultation services 247,920

18. Office of the Secretary - Office of Economic

Opportunity for N.C. Senior Citizens'

Federation for outreach services to

low-income elderly persons 41,302

19. Special Children Adoption Fund 511,687

20. Transfer from TANF Block Grant for

Enhanced Employee Assistance Program 1,000,000

21. Transfer from TANF Block Grant for

Division of Social Services - Child

Caring Agencies 1,500,000

22. Division of Mental Health,

Developmental Disabilities, and

Substance Abuse Services - Developmentally

Disabled Waiting List for services 5,000,000

TOTAL SOCIAL SERVICES BLOCK GRANT $ 54,558,426

LOW-INCOME ENERGY BLOCK GRANT

01. Energy Assistance Programs $ 8,092,113

02. Crisis Intervention 7,078,114

03. Administration 1,988,234

04. Department of Commerce -

Weatherization Program 2,684,116

05. Department of Administration -

N.C. Commission of Indian Affairs 39,765

TOTAL LOW-INCOME ENERGY BLOCK GRANT $ 19,882,342

MENTAL HEALTH SERVICES BLOCK GRANT

01. Provision of community-based

services in accordance with the

Mental Health Study Commission's

Adult Severe and Persistently

Mentally Ill Plan $ 4,301,361

02. Provision of community-based

services to children 1,898,520

03. Establish Child Residential

Treatment Services Program 1,500,000

04. Administration 783,911

TOTAL MENTAL HEALTH SERVICES BLOCK GRANT $ 8,483,792

SUBSTANCE ABUSE PREVENTION

AND TREATMENT BLOCK GRANT

01. Provision of community-based

alcohol and drug abuse services,

tuberculosis services, and services

provided by the Alcohol and Drug Abuse

Treatment Centers $ 15,043,841

02. Continuation of services for

pregnant women and women

with dependent children 6,567,532

03. Continuation of services to

IV drug abusers and others at risk

for HIV diseases 5,210,497

04. Provision of services to children

and adolescents 7,216,992

05. Juvenile Services - Family Focus 893,811

06. Juvenile offender services and substance

abuse pilot 300,000

07. Establish Child Residential Treatment

Services Program 1,000,000

08. Administration 2,623,049

TOTAL SUBSTANCE ABUSE PREVENTION

AND TREATMENT BLOCK GRANT $ 38,855,722

CHILD CARE AND DEVELOPMENT FUND BLOCK GRANT

01. Child care subsidies $117,145,326

02. Quality and availability initiatives 12,332,039

03. Administrative expenses 6,814,598

04. Transfer from TANF Block Grant for

child care subsidies 57,957,188

05. Transfer from TANF Block Grant for

child care rate increases and quality

initiatives 18,717,812

TOTAL CHILD CARE AND DEVELOPMENT FUND

BLOCK GRANT $212,966,963

TEMPORARY ASSISTANCE TO NEEDY FAMILIES

(TANF) BLOCK GRANT

01. Work First Cash Assistance

Standard Counties $ 81,859,561

Electing Counties 24,331,095

02. Work First County Block Grants 92,018,855

03. Transfer to the Child Care and

Development Fund Block Grant

for child care subsidies 57,957,188

04. Allocation to the Division of Mental

Health, Developmental Disabilities, and

Substance Abuse Services for Work First

substance abuse screening, diagnostic, and

support treatment services and drug testing 3,500,000

05. Allocation to the Division of Social

Services for Work First Evaluation 1,500,000

06. Allocation to the Division of Social

Services for staff development 500,000

07. Reduction of out-of-wedlock births 1,600,000

08. Substance Abuse Services for Juveniles 1,182,280

09. Special Children Adoption Fund 2,300,000

10. Employment Security Commission -

First Stop Employment Assistance 1,000,000

11. Transfer to Social Services Block Grant -

Enhanced Employee Assistance Program 1,000,000

12. Work First Job Retention and Follow-Up

Initiatives 1,607,529

13. Allocation to the Division of Public Health

for teen pregnancy prevention 2,000,000

14. Transfer to Social Services Block Grant

for Child Caring Agencies 1,500,000

15. Child Care Subsidies for TANF Recipients 26,621,241

16. Work First Housing Initiative 3,000,000

17. Transfer to Child Care and Development Fund

Block Grant for Child Care Rate Increases 18,717,812

18. Allocation to the Division of Social

Services for Domestic Violence

Prevention and Awareness 1,000,000

19. County Child Protective Services,

Foster Care and Adoption Workers 2,727,550

20. Intensive Family Preservation Program 2,000,000

21. Work First/Boys and Girls Clubs 1,000,000

22. Transfer to Social Services Block Grant for

County Departments of Social Services for

Children's Services 4,500,000

23. Adolescent Pregnancy Prevention Program 239,261

24. Expand Support Our Students -

Office of Juvenile Justice 2,750,674

25. Residential Substance Abuse Services

for Women with Children 5,000,000

26. Domestic Violence Services

for Work First families 3,000,000

27. Responsible Fatherhood Initiative 1,000,000

28. After-School Services for

At-Risk Children 2,000,000

29. Division of Social Services -

Administration 500,000

30. Child Welfare workers for local

departments of social services 7,260,000

31. Work First Pilots 5,400,000

32. Child Welfare Training 2,000,000

33. Work First Business Council 100,000

34. JobLink Pilots 300,000

TOTAL TEMPORARY ASSISTANCE TO NEEDY FAMILIES

(TANF) BLOCK GRANT $362,973,046

MATERNAL AND CHILD HEALTH BLOCK GRANT

01. Healthy Mothers/Healthy Children

Block Grants to Local Health

Departments $ 9,838,074

02. High-Risk Maternity Clinic Services,

Perinatal Education and Training,

Childhood Injury Prevention,

Public Information and Education, and

Technical Assistance to Local Health

Departments 2,012,102

03. Services to Children With Special Health

Care Needs 5,078,647

TOTAL MATERNAL AND CHILD

HEALTH BLOCK GRANT $ 16,928,823

PREVENTIVE HEALTH SERVICES BLOCK GRANT

01. Statewide Health Promotion Programs $3,184,399

02. Dental Services/Fluoridation 100,800

03. Rape Crisis/Victims' Services

Program - Council for Women 190,134

04. Rape Prevention and Education

Program - Division of Public

Health and Council for Women 1,137,186

05. Transfer from Social Services

Block Grant -

AIDS/HIV Education, Counseling,

and Testing 66,939

06. Transfer from Social Services

Block Grant -

Emergency Medical Services 213,128

07. Office of Minority Health 159,459

08. Administrative Costs 143,151

TOTAL PREVENTIVE HEALTH SERVICES BLOCK GRANT $5,195,196

Section 5.(b) Decreases in Federal Fund Availability. – If the United States Congress reduces federal fund availability in the Social Services Block Grant below the amounts appropriated in this section, then the Department of Health and Human Services shall allocate these decreases giving priority first to those direct services mandated by State or federal law, then to those programs providing direct services that have demonstrated effectiveness in meeting the federally and State-mandated services goals established for the Social Services Block Grant. The Department shall not include transfers from TANF for specified purposes in any calculations of reductions to the Social Services Block Grant.

If the United States Congress reduces the amount of TANF funds below the amounts appropriated in this section after the effective date of this act, then the Department shall allocate the decrease in funds after considering any underutilization of the budget and the effectiveness of the current level of services. Any TANF Block Grant fund changes shall be reported to the Senate Appropriations Committee on Human Resources, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division.

Decreases in federal fund availability shall be allocated for the Maternal and Child Health and Preventive Health Services federal block grants by the Department of Health and Human Services after considering the effectiveness of the current level of services.

Section 5.(c) Increases in Federal Fund Availability. – Any block grant funds appropriated by the United States Congress in addition to the funds specified in this act shall be expended by the Department of Health and Human Services, 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.

Section 5.(d) Changes to the budgeted allocations to the block grants appropriated in this act due to decreases or increases in federal funds shall be reported immediately to the Senate Appropriations Committee on Human Resources, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division.

Section 5.(e) Limitations on Preventive Health Services Block Grant Funds. – Twenty-five percent (25%) of funds allocated for Rape Prevention and Rape Education shall be allocated as grants to nonprofit organizations to provide rape prevention and education programs targeted for middle, junior high, and high school students.

If federal funds are received under the Maternal and Child Health Block Grant for abstinence education, pursuant to section 912 of Public Law 104-193 (42 U.S.C. § 710), for the 2000-2001 fiscal year, then those funds shall be transferred to the State Board of Education to be administered by the Department of Public Instruction. The Department of Public Instruction shall use the funds to establish an Abstinence Until Marriage Education Program and shall delegate to one or more persons the responsibility of implementing the program and G.S. 115C-81(e1)(4). The Department of Public Instruction shall carefully and strictly follow federal guidelines in implementing and administering the abstinence education grant funds.

Section 5.(f) The sum of one million five hundred thousand dollars ($1,500,000) appropriated to the Department of Health and Human Services, Division of Social Services, in the TANF Block Grant for the 2000-2001 fiscal year for the evaluation of the Work First Program shall be used to do each of the following:

(1) Expand the current evaluation of the Work First Program to assess former recipients' earnings, barriers to advancement to economic self-sufficiency, utilization of community support services, and other longitudinal employment data. Assessment periods shall include six and 18 months following closure of the case.

(2) Expand the current evaluation of the Work First Program to profile the State's child-only caseload to include indicators of economic and social well-being, academic and behavioral performance, demographic data, description of living arrangements including length of placement out of the home, social and other human services provided to families, and other information needed to assess the needs of the child-only Work First Family Assistance clients and families.

(3) Expand the current evaluation to profile clients and families exempted from federal and State work participation requirements. The evaluation shall include an assessment of the client and family needs including why clients and families have been exempted.

The Department of Health and Human Services shall make a report on its progress in complying with this subsection to the Senate Appropriations Committee on Human Resources, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division no later than September 30, 2001, and shall make a final report no later than September 30, 2002.

Section 5.(g) The sum of one million six hundred seven thousand five hundred twenty-nine dollars ($1,607,529) appropriated to the Department of Health and Human Services, Division of Social Services, in this section in the TANF Block Grant in the 2000-2001 fiscal year for the Work First job retention and follow-up model programs shall be used to continue pilots and strategies that support TANF recipients in attaining and maintaining self-sufficiency through job retention, family support services, and pre- and post-TANF follow-up.

The Department of Health and Human Services shall make a report on its use of TANF funds for the Work First job retention pilots. This report shall include each of the following:

(1) A description of the clients served by the program. This description shall include demographic and geographic information about the clients.

(2) A description of services provided by the program.

(3) The effectiveness of services to clients. Effectiveness of services to clients shall be measured, in part, by the percentage of clients who remain employed at intervals of six months and one year after commencement of employment.

(4) The estimated cost of services per client.

(5) A description of the development and design of the program and of any evaluation mechanisms.

(6) A description of coordination efforts among local departments of social services with other human services agencies.

(7) A description of progress in achieving other outcome goals such as family economic progress and child/family well-being.

This report shall be made to the Senate Appropriations Committee on Human Resources, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division no later than April 1, 2001.

Section 5.(h) The sum of five hundred eleven thousand six hundred eighty-seven dollars ($511,687) appropriated in this section in the Social Services Block Grant to the Department of Health and Human Services, Special Children Adoption Fund, for the 2000-2001 fiscal year shall be used to implement this subsection. The Division of Social Services, in consultation with the North Carolina Association of County Directors of Social Services and representatives of licensed private adoption agencies, shall develop guidelines for the awarding of funds to licensed public and private adoption agencies upon the adoption of children described in G.S. 108A-50 and in foster care. Payments received from the Special Children Adoption Fund by participating agencies shall be used exclusively to enhance the adoption services program. No local match shall be required as a condition for receipt of these funds.

Section 5.(i) If funds appropriated through the Child Care and Development Fund for any program cannot be obligated or spent in that program within the obligation or liquidation periods allowed by the federal grants, the Department may move funds to other programs, in accordance with federal requirements of the grant, in order to use the federal funds fully.

Section 5.(j) The sum of one million five hundred thousand dollars ($1,500,000) appropriated in this act in the TANF Block Grant and transferred to the Social Services Block Grant to the Department of Health and Human Services, Division of Social Services, for child caring agencies for the 2000-2001 fiscal year shall be allocated to the State Private Child Caring Agencies Fund. These funds shall be combined with all other funds allocated to the State Private Child Caring Agencies Fund for the reimbursement of the State's portion of the cost of care for the placement of certain children by the county departments of social services who are not eligible for federal IV-E funds. These funds shall not be used to match other federal funds.

Section 5.(k) The sum of one million dollars ($1,000,000) appropriated in this section in the TANF Block Grant and transferred to the Social Services Block Grant to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, shall be used for the Enhanced Employee Assistance Program, to continue a grant program of financial incentives for private businesses employing former and current Work First recipients. These grants may supply funds to private employers who agree to hire former or current Work First recipients or their spouses at entry-level positions and wages and to supply enhanced grant funds to private employers who agree to hire former or current Work First recipients or their spouses at a level higher than entry-level positions, paying more than the minimum wage, including fringe benefits.

The Department of Health and Human Services shall report no later than April 1, 2001, on the use of these funds to the Senate Appropriations Committee on Human Resources, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division. This report shall include each of the following:

(1) The number of clients served since the inception of the program by fiscal year.

(2) The amount of funds expended each fiscal year.

(3) A description of the clients served. This description shall include demographic information about these clients.

(4) A description of coordination efforts with other human services agencies, including local departments of social services.

(5) A description of specific services provided to clients.

(6) Statistics related to job retention, measured at least at intervals of six months and one year after the commencement of employment.

(7) Statistics related to the wage history of clients.

(8) Any other information the Department and the Employment Security Commission find relevant to an evaluation of the program.

Section 5.(l) The sum of two million dollars ($2,000,000) appropriated in this act in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2000-2001 fiscal year for the Intensive Family Preservation Services (IFPS) Program shall be used by the Division, in consultation with local departments of social services and other human services agencies, to plan and implement a revised IFPS Program.

Notwithstanding the provisions of G.S. 143B-150.6, the Program shall provide intensive services to children and families in cases of abuse, neglect, and dependency where a child is at imminent risk of removal from the home and to children and families in cases of abuse where a child is not at imminent risk of removal. The Program shall be developed and implemented statewide on a regional basis. The revised IFPS Program shall ensure the application of standardized assessment criteria for determining imminent risk and clear criteria for determining out-of-home placement.

The Department shall reexamine the existing IFPS Program design to ensure the application of a standardized assessment and clear criteria for the determination of imminent risk of removal. Additionally, the Department shall assess the education and skill levels required of staff providing intensive family preservation services in existing programs.

The Department shall develop a revised evaluation model for the current and expanded IFPS Program. This evaluation shall not include area mental health or juvenile justice programs. The model shall be scientifically rigorous, including the use of treatment comparison groups, a review and description of interventions provided to families as compared to customary services provided to other child welfare children and families, and data regarding the number and type of referrals made for other human services and the utilization of those services.

The Department shall report on the use of the funds appropriated under this subsection, including the revised evaluation model and IFPS Program, to the Senate Appropriations Committee on Human Resources, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division no later than April 1, 2001.

Section 5.(m) The Department of Health and Human Services and the Employment Security Commission shall report on the use of funds appropriated under this section from the TANF Block Grant to the First Stop Employment Assistance Program. This report shall include each of the following:

(1) The number of clients served since the inception of the program by fiscal year.

(2) The amount of funds expended each fiscal year.

(3) A description of the clients served. This description shall include demographic information about these clients.

(4) A description of coordination efforts with other human services agencies, including local departments of social services.

(5) A description of specific services provided to both initial and intensive First Stop clients.

(6) The placement rates of clients in both the initial and intensive programs.

(7) Statistics related to job retention, measured at least at intervals of six months and one year after the commencement of employment.

(8) Statistics related to the wage history of clients.

(9) Any other information the Department and the Employment Security Commission find relevant to an evaluation of the program.

Section 5.(n) The sum of one million dollars ($1,000,000) appropriated in this section to the Department of Health and Human Services in the TANF Block Grant for Boys and Girls Clubs shall be used to make grants for approved programs. The Department of Health and Human Services, in accordance with federal regulations for the use of TANF Block Grant funds, shall administer a grant program to award funds to the Boys and Girls Clubs across the State in order to implement programs that improve the motivation, performance, and self-esteem of youth and to implement other initiatives that would be expected to reduce school dropout and teen pregnancy rates. The Department shall encourage and facilitate collaboration between the Boys and Girls Clubs and Support Our Students, Communities in Schools, and similar programs to submit joint applications for the funds if appropriate. The Department shall report on its progress in complying with this subsection to the Senate Appropriations Committee on Human Resources, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division no later that April 1, 2001.

Section 5.(o) Payment for subsidized child care services provided with federal TANF funds shall comply with all regulations and policies issued by the Division of Child Development for the subsidized child care program.

Section 5.(p) The sum of three million dollars ($3,000,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for the Work First Housing Initiative shall be used for direct housing support to Work First clients and families. Direct housing support includes using funds for rental assistance, loans, moving expenses, and other financial assistance. No more than ten percent (10%) of these funds may be used for administration. These funds may be used for counseling or similar services only if it is demonstrated that those services are not otherwise available in the community.

Section 5.(q) The sum of five hundred thousand dollars ($500,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2000-2001 fiscal year shall be used to support administration of TANF-funded programs.

Section 5.(r) The sum of five million dollars ($5,000,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, for the 2000-2001 fiscal year shall be used to establish and expand regional residential substance abuse treatment and services for women with children. The Department of Health and Human Services, the Division of Social Services, and the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, in consultation with local departments of social services, area mental health programs, and other State and local agencies or organizations, shall coordinate this effort in order to facilitate the expansion of regionally based substance abuse services for women with children. These services shall be culturally appropriate and designed for the unique needs of TANF women with children.

In order to expedite the expansion of these services, the Secretary of the Department of Health and Human Services may enter into contracts with service providers.

The Department of Health and Human Services, the Division of Social Services, and the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, shall report on their progress in complying with this subsection no later than October 1, 2000, and March 1, 2001, to the Senate Appropriations Committee on Human Resources, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division. These reports shall include all of the following:

(1) The number and location of additional beds created.

(2) The types of facilities established.

(3) The delineation of roles and responsibilities at the State and local levels.

(4) Demographics of the women served, the number of women served, and the cost per client.

(5) Demographics of the children served, the number of children served, and the services provided.

(6) Job placement services provided to women.

(7) A plan for follow-up and evaluation of services provided with an emphasis on outcomes.

(8) Barriers identified to the successful implementation of the expansion.

(9) Identification of other resources needed to appropriately and efficiently provide services to Work First recipients.

(10) Other information as requested.

Section 5.(s) The sum of two million seven hundred fifty thousand six hundred seventy-four dollars ($2,750,674) appropriated under this section in the TANF Block Grant to the Department of Health and Human Services and transferred to the Office of Juvenile Justice for the 2000-2001 fiscal year shall be used to support the existing Support Our Students Program and to expand the Program statewide. These funds shall not be used for administration of the program.

Section 5.(t) The sum of three million dollars ($3,000,000) appropriated under this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2000-2001 fiscal year shall be used to provide domestic violence services to Work First recipients. The Division of Social Services, in consultation with the Council for Women and local departments of social services, shall develop and implement a mechanism by which these funds may be used to facilitate delivery of domestic violence counseling, support, and other direct services to clients. These funds shall not be used to establish new domestic violence shelters, for State administration, or to facilitate lobbying efforts. The Department of Health and Human Services and the Council for Women shall report on the uses of these funds no later than February 1, 2001, to the Senate Appropriations Committee on Human Resources, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division.

Section 5.(u) The sum of one million dollars ($1,000,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Public Health, for the 2000-2001 fiscal year shall be used to support the Responsible Fatherhood Initiative. These funds shall be used for responsible parenting programs targeted at young-adult males. These funds shall be targeted at counties with the highest needs as determined by the Division of Public Health. The evaluation of this initiative shall be incorporated into the overall evaluation of the pregnancy prevention and responsible parenting activities currently in place. This initiative shall be administered as directed in subsection (v) of this section.

Section 5.(v) The funds appropriated to the Department of Health and Human Services, Division of Public Health, in this act for the 2000-2001 fiscal year for teen pregnancy prevention shall be used in accordance with the provisions of this subsection.

Effective July 1, 2000, the Department of Health and Human Services, Division of Public Health, in collaboration with local program administrators, the Adolescent Pregnancy Prevention Coalition of North Carolina, and other organizations, shall adopt guidelines for the administration of funds for teen pregnancy prevention and for parenting programs. The guidelines shall include the following programmatic requirements:

(1) Council development at the local level is encouraged but not required for program funding. Councils that received first-year funding for the 1999-2000 fiscal year for administrative expenses for coalition building and partnership development shall receive funds committed for the second year of organizational development. The Division shall encourage programs that receive funding under this section to involve other health service organizations, nonprofit organizations, and task forces in program efforts.

(2) In awarding grants, the Department shall target counties with the highest teen pregnancy rates, increasingly higher teen pregnancy rates, high rates within demographic subgroups, or greatest need for parenting programs. Grants may be renewed annually based on program efficiency and effectiveness, teen pregnancy rates, and the level of need for parenting programs. Grants shall be funded at a particular level and may be funded on a multiyear cycle.

(3) The Division shall encourage all programs to implement best practice models. While best practice models are encouraged, the Department may fund innovative and promising projects that have not yet been recognized as best practice. All existing programs not using best practice models shall be encouraged to transition to the use of best practice models.

(4) Programs are not required to provide a cash match for these funds, however, the Department may require an in-kind match.

Funds for State-level administrative expenses of the Program shall not exceed ten percent (10%) of the total budget for teen pregnancy prevention and parenting programs. Administrative expenses include staffing and contracted services for evaluation and coalition-building activities.

The Department shall contract with an independent private consulting firm to evaluate the programs. The evaluation shall include standard data collection utilizing the mechanism that has been developed by the University of North Carolina at Chapel Hill, School of Social Work, and shall be conducted in a manner that objectively measures the effectiveness of each program evaluated.

The Department shall report annually on March 1, to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Human Resources, and the Fiscal Research Division. The report shall include information on all of the following for each teen pregnancy prevention and parenting program:

(1) The program budget delineating all administrative expenses, contracts for services, and technical assistance.

(2) A narrative describing each project funded and the amount of funds received by the project.

(3) Effectiveness of the program in reducing teen pregnancy or developing responsible parenting skills in young adults, as applicable.

(4) Status of the evaluation.

Section 5.(w) The sum of two million dollars ($2,000,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, shall be used to expand after-school programs and services for at-risk children. The Department shall develop and implement a grant program to award grants to community-based programs that demonstrate the ability to reach children at risk of teen pregnancy and school dropout. The Department shall award grants to community-based organizations that demonstrate the ability to develop and implement linkages with local departments of social services, area mental health programs, schools, and other human services programs in order to provide support services and assistance to the child and family. These funds may be used to establish one position within the Division of Social Services to coordinate at-risk after-school programs and shall not be used for other State administration. The Department shall report no later than March 1, 2001, on its progress in complying with this section to the Senate Appropriations Committee on Human Resources, the House of Representatives Subcommittee on Health and Human Services, and the Fiscal Research Division.

Section 5.(x) The Department of Health and Human Services may use available block grant funds up to the sum of five million twelve thousand dollars ($5,012,000) in the 2000-2001 fiscal year to continue the Business Process Reengineering Project. The Department shall report directly on the use of any funds under this subsection to the Information Resource Management Commission in accordance with the Commission's requirements. The Department shall report on the use of these funds no later than April 1, 2001, to the Senate Appropriations Committee on Human Resources, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division.

Section 5.(y) The sum of seven million two hundred sixty thousand dollars ($7,260,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2000-2001 fiscal year for Child Welfare Improvements shall be allocated to the county departments of social services for hiring or contracting additional staff on or after July 1, 2000, to investigate and provide services in Child Protective Services cases; to provide foster care and support services; to recruit, train, license, and support prospective foster and adoptive families; and to provide interstate and post-adoption services for eligible families.

Section 5.(z) The sum of one million five hundred thousand dollars ($1,500,000) appropriated in this section in the Mental Health Block Grant to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, for the 2000-2001 fiscal year and the sum of one million dollars ($1,000,000) appropriated in this section in the Substance Abuse Prevention and Treatment Block Grant to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, for the 2000-2001 fiscal year shall be used to establish a Child Residential Treatment Services Program in accordance with Section 11.19 of this act.

Section 5.(aa) The Department of Health and Human Services, the Department of Commerce, and the Department of Public Instruction may allocate available block grant funds for pilot programs established pursuant to Section 11.4A of this act. These funds may be used for the planning, implementation, and evaluation of those pilot programs.

Section 5.(bb) The sum of two million dollars ($2,000,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for fiscal year 2000-2001 shall be used to support various child welfare training projects as follows:

(1) The sum of three hundred fifty thousand dollars ($350,000) shall be used to establish a regional training center in southeastern North Carolina.

(2) The sum of seven hundred fifty thousand dollars ($750,000) shall be used to support the Masters Degree in Social Work/Baccalaureate Degree in Social Work Collaborative.

(3) The sum of one hundred eighty thousand dollars ($180,000) to provide training for residential child care facilities.

(4) The sum of seven hundred twenty thousand dollars ($720,000) to provide for various other child welfare training initiatives.

Section 5.(cc) The sum of three hundred thousand dollars ($300,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2000-2001 fiscal year for JobLink pilots shall be used to replicate the Ladders to Success model program at community colleges.

The Department shall make two reports no later than February 15, 2001, and May 15, 2001, respectively, to the Senate Appropriations Committee on Human Resources, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division. These reports shall include the following:

(1) A detailed explanation by each recipient of start-up funds on the use of these funds.

(2) A detailed explanation of the incentives offered to each county department of social services to encourage collaboration with JobLink programs including an explanation of the necessity of the incentives and an explanation of the benefits obtained as a result of the incentives.

(3) A detailed explanation of services offered by JobLink as a result of the incentives including an explanation of why the services are not otherwise offered.

(4) A description of and justification for the use of incentive funds.

(5) A report on the individuals hired or contracted to staff JobLink programs including the number of individuals hired or contracted, the positions and primary responsibilities of individuals hired or contracted, and the impact of these additional positions on JobLink clients.

(6) A detailed report on the employment outcomes of Work First clients who have participated in JobLink programs including information on job retention rates and salary level.

(7) Demographic information on clients served in the program.

Requested by: Representatives Fox, Owens, Warren, Easterling, Redwine, Senators Martin of Pitt, Weinstein, Plyler, Perdue, Odom

NER BLOCK GRANT FUNDS

Section 5.1.(a) Appropriations from federal block grant funds are made for the fiscal year ending June 30, 2001, according to the following schedule:

COMMUNITY DEVELOPMENT BLOCK GRANT

01. State Administration $ 1,000,000

02. Urgent Needs and Contingency 1,000,000

03. Scattered Site Housing 10,340,000

04. Economic Development 8,710,000

05. Community Revitalization 13,500,000

06. State Technical Assistance 450,000

07. Housing Development 3,000,000

08. Infrastructure 7,000,000

TOTAL COMMUNITY DEVELOPMENT

BLOCK GRANT - 2001 Program Year $ 45,000,000

Section 5.1.(b) Decreases in Federal Fund Availability. – Decreases in federal fund availability for the Community Development Block Grants. – If federal funds are reduced below the amounts specified above after the effective date of this act, then every program in each of these federal block grants shall be reduced by the same percentage as the reduction in federal funds.

Section 5.1.(c) Increases in Federal Fund Availability for Community Development Block Grant. – Any block grant funds appropriated by the Congress of the United States in addition to the funds specified in this section shall be expended as follows: – Each program category under the Community Development Block Grant shall be increased by the same percentage as the increase in federal funds.

Section 5.1.(d) Limitations on Community Development Block Grant Funds. – Of the funds appropriated in this section for the Community Development Block Grant, the following shall be allocated in each category for each program year: up to one million dollars ($1,000,000) may be used for State administration; up to one million dollars ($1,000,000) may be used for Urgent Needs and Contingency; up to ten million three hundred forty thousand dollars ($10,340,000) may be used for Scattered Site Housing; up to eight million seven hundred ten thousand dollars ($8,710,000) may be used for Economic Development; not less than thirteen million five hundred thousand dollars ($13,500,000) shall be used for Community Revitalization; up to four hundred fifty thousand dollars ($450,000) may be used for State Technical Assistance; up to three million dollars ($3,000,000) may be used for Housing Development; up to seven million dollars ($7,000,000) may be used for Infrastructure. If federal block grant funds are reduced or increased by the Congress of the United States after the effective date of this act, then these reductions or increases shall be allocated in accordance with subsection (b) or (c) of this section, as applicable.

Section 5.1.(e) Increase Capacity for Nonprofit Organizations. – Assistance to nonprofit organizations to increase their capacity to carry out CDBG-eligible activities in partnership with units of local government is an eligible activity under any program category in accordance with federal regulations. Capacity building grants may be made from funds available within program categories, program income, or unobligated funds.

Section 5.1.(f) Future CDBG Proposals. – In developing future CDBG proposals, the Department of Commerce shall consider ways in which to address the abatement of outhouses in the State.

PART VI. GENERAL FUND AND HIGHWAY FUND AVAILABILITY STATEMENTS

GENERAL FUND AVAILABILITY STATEMENT

Section 6.(a) The General Fund availability used to adjust the 2000-2001 fiscal year budget is shown below:

FY 2000-2001

Budget Reform Statement ($ million)

Beginning Unreserved Credit Balance 0.0

Tax Revenues - Current Tax Law 13,216.3

Non-Tax Revenues:

Investment Income 214.0

Judicial Fees 106.7

Disproportionate Share 105.0

Insurance 42.1

Highway Trust Fund Transfer 170.0

Highway Fund Transfer 13.8

Other Non-Tax Revenues 103.9

Subtotal 13,971.8

HB 1854 - 2000 Fee Bill 6.1

Y2K Reserve Transfer 9.0

Hurricane Fran Reserve Transfer 48.0

11TH/12TH Month Carryforward Revision 11.0

HB 1559 IRC Conformity Adjustment (2.0)

Disproportionate Share Reserve Transfer 1.0

Crime Victims Compensation Fund Reversion 1.0

State/Federal Retirees Administrative

Cost Reimbursement 0.1

Federal Retirees Refund Reversion 0.3

SB 1305 UCC Revision 3.9

TOTAL GENERAL FUND AVAILABILITY 14,050.2

Section 6.(b) Effective June 30, 2000, the Director of the Budget shall transfer from the 11th/12th month carryforward balance in the State Aid to Local School Administrative Units the sum of two hundred forty million dollars ($240,000,000) to a reserve in the Department of State Treasurer. These funds shall be held in reserve for allocation pursuant to a consent order entered in Wake County Superior Court for the Class B plaintiffs in Smith, et al. v. State, 95 CVS 06715 and for all plaintiffs in Shaver, et al. v. State, 98 CVS 00625. Of funds remaining in the 11th/12th month carryforward balance on July 1, 2000, the sum of eleven million dollars ($11,000,000) shall revert to the General Fund.

Section 6.(c) The unencumbered balance remaining in the Department of Commerce Y2K Conversion Fund shall be transferred to the General Fund on July 1, 2000.

Section 6.(d) Of the unencumbered balance remaining in Budget Code 13017-1710, the Hurricane Fran Disaster Relief Fund, the sum of forty-eight million dollars ($48,000,000) shall be transferred to the General Fund on July 1, 2000.

Section 6.(e) Of the unencumbered balance in budget code 24701 in the Department of Revenue, the sum of three hundred fifty thousand dollars ($350,000) shall be transferred to the General Fund on July 1, 2000.

Section 6.(f) The Commissioner of Insurance shall transfer funds quarterly from the Department of Insurance Fund to the General Fund to repay the funds appropriated to the Department of Insurance from the General Fund for each fiscal year, plus accrued interest at a rate determined by the State Treasurer.

Section 6.(g) Disproportionate Share Receipts reserved at the end of the 1999-2000 fiscal year shall be deposited with the Department of State Treasurer as a nontax revenue for the 2000-2001 fiscal year.

HIGHWAY FUND AVAILABILITY

Section 6.1. The Highway Fund appropriations availability used in developing modifications to the 2000-2001 Highway Fund budget contained in this act is shown below:

2000-2001

Beginning Credit Balance $6,980,000

Estimated Revenue 1,240,030,000

Additional Reversions –

TOTAL HIGHWAY FUND AVAILABILITY $1,247,010,000

PART VII. GENERAL PROVISIONS

Requested by: Representatives Easterling, Redwine, Senators Plyler, Perdue, Odom

CONTROLLER FINANCIAL STATEMENT REPORTING CLARIFICATION

Section 7.(a) G.S. 143-20.1 reads as rewritten:

"§ 143-20.1. Annual financial statements.

~~Beginning with fiscal years ending in 1984 and each and every year thereafter,~~ Every fiscal year, all State agencies and component units of the State, as defined by generally accepted accounting principles, shall prepare annual financial statements on all funds administered by them no later than 60 days ~~subsequent to the close~~ after the end of the State's fiscal year then ended in accordance with generally accepted accounting principles as described in authoritative pronouncements and interpreted ~~and/or~~ or prescribed by the State Controller, and in ~~such form as he may require.~~ the form required by the State Controller. The State Controller shall publish guidelines specifying the procedures to implement the necessary records, procedures, and accounting systems to reflect these statements on the proper basis of accounting.

Accordingly, the State Controller shall combine the financial statements for the various agencies into a Comprehensive Annual Financial Report for the State of North Carolina in accordance with generally accepted accounting principles. These statements, along with the opinion of the State Auditor, shall be published as the official financial statements of the State and shall be distributed to the Governor, the Office of State Budget and Management, members of the General Assembly, heads of departments, ~~agencies~~ agencies, and institutions of the State, and other interested parties. The State Controller shall notify the Director of the Budget of any ~~and all~~ State agencies ~~which~~ and component units of the State, as defined by generally accepted accounting principles, that have not complied fully with the requirements of this ~~provision~~ section within the specified time, and the Director of the Budget shall employ whatever means necessary, including the withholding of allotments, to ensure immediate corrective actions."

Section 7.(b) G.S. 143B-426.39 reads as rewritten:

"§ 143B-426.39. Powers and duties of the State Controller.

The State Controller shall:

(1) Prescribe, develop, operate, and maintain in accordance with generally accepted principles of governmental accounting, a uniform state accounting system for all state agencies. The system shall be designed to assure compliance with all legal and constitutional requirements including those associated with the receipt and expenditure of, and the accountability for public funds.

(2) On the recommendation of the State Auditor, prescribe and supervise the installation of any changes in the accounting systems of an agency that, in the judgment of the State Controller, are necessary to secure and maintain internal control and facilitate the recording of accounting data for the purpose of preparing reliable and meaningful statements and reports. The State Controller shall be responsible for seeing that a new system is designed to accumulate information required for the preparation of budget reports and other financial reports.

(3) Maintain complete, accurate and current financial records that set out all revenues, charges against funds, fund and appropriation balances, interfund transfers, outstanding vouchers, and encumbrances for all State funds and other public funds including trust funds and institutional funds available to, encumbered, or expended by each State agency, in a manner consistent with the uniform State accounting system.

(4) Prescribe the uniform classifications of accounts to be used by all State agencies including receipts, expenditures, assets, liabilities, fund types, organization codes, and purposes. The State Controller shall also, after consultation with the Office of State Budget and Management, prescribe a form for the periodic reporting of financial accounts, transactions, and other matters that is compatible with systems and reports required by the State Controller under this section. Additional records, accounts, and accounting systems may be maintained by agencies when required for reporting to funding sources provided prior approval is obtained from the State Controller.

(4a) Prescribe that, unless exempted by the State Controller, newly created or acquired component units of the State are required to have the same fiscal year as the State.

(5) Prescribe the manner in which disbursements of the State agencies shall be made, in accordance with G.S. 143-3.

(6) Operate a central payroll system, in accordance with G.S. 143-3.2 and 143-34.1.

(7) Keep a record of the appropriations, allotments, expenditures, and revenues of each State agency, in accordance with G.S. 143-20.

(8) Make appropriate reconciliations with the balances and accounts kept by the State Treasurer.

(9) Develop, implement, and amend as necessary a uniform statewide cash management plan for all State agencies in accordance with G.S. 147-86.11.

(9a) Implement a statewide accounts receivable program in accordance with Article 6B of Chapter 147 of the General Statutes.

(10) Prepare and submit to the Governor, the State Auditor, the State Treasurer, and the Office of State Budget and Management each month, a report summarizing by State agency and appropriation or other fund source, the results of financial transactions. This report shall be in the form that will most clearly and accurately set out the current fiscal condition of the State. The State Controller shall also furnish each State agency a report of its transactions by appropriation or other fund source in a form that will clearly and accurately present the fiscal activities and condition of the appropriation or fund source.

(11) Prepare and submit to the Governor, the State Auditor, the State Treasurer, and the Office of State Budget and Management, at the end of each quarter, a report on the financial condition and results of operations of the State entity for the period ended. This report shall clearly and accurately present the condition of all State funds and appropriation balances and shall include comments, recommendations, and concerns regarding the fiscal affairs and condition of the State.

(12) Prepare on or before October 31 of each year, a Comprehensive Annual Financial Report in accordance with generally accepted accounting principles of the preceding fiscal year, in accordance with G.S. 143-20.1. The report shall include State agencies and component units of the State, as defined by generally accepted accounting principles.

(13) Perform additional functions and duties assigned to the State Controller, within the scope and context of the Executive Budget Act, Chapter 143, Article 1 of the General Statutes.

(14) through (16) Recodified by Session Laws 1997-148, s. 3."

Section 7.(c) G.S. 115D-58.5(a) reads as rewritten:

"(a) Each institution shall establish and maintain an accounting system consistent with procedures as prescribed by the Community Colleges System Office and the State ~~Auditor,~~ Controller, which shows its assets, liabilities, equities, revenues, and expenditures."

Requested by: Representatives Nesbitt, Walend, Easterling, Redwine, Baddour, Senators Plyler, Perdue, Odom, Miller

RAISE STATE TORT CLAIMS LIMIT

Section 7A.(a) G.S. 143-291(a) reads as rewritten:

"(a) The North Carolina Industrial Commission is hereby constituted a court for the purpose of hearing and passing upon tort claims against the State Board of Education, the Board of Transportation, and all other departments, institutions and agencies of the State. The Industrial Commission shall determine whether or not each individual claim arose as a result of the negligence of any officer, employee, involuntary servant or agent of the State while acting within the scope of his office, employment, service, agency or authority, under circumstances where the State of North Carolina, if a private person, would be liable to the claimant in accordance with the laws of North Carolina. If the Commission finds that there was ~~such~~ negligence on the part of an officer, employee, involuntary servant or agent of the State while acting within the scope of his office, employment, service, agency or ~~authority, which~~ authority that was the proximate cause of the injury and that there was no contributory negligence on the part of the claimant or the person in whose behalf the claim is asserted, the Commission shall determine the amount of damages ~~which~~ that the claimant is entitled to be paid, including medical and other expenses, and by appropriate order direct the payment of ~~such~~ damages ~~by the department, institution or agency concerned,~~ as provided in subsection (a1) of this section, but in no event shall the amount of damages awarded exceed the ~~sum of one hundred fifty thousand dollars ($150,000)~~ amounts authorized in G.S. 143-299.2 cumulatively to all claimants on account of injury and damage to any one ~~person.~~ person arising out of a single occurrence. Community colleges and technical colleges shall be deemed State agencies for purposes of this Article. The fact that a claim may be brought under more than one Article under this Chapter shall not increase the foregoing maximum liability of the State."

Section 7A.(b) G.S. 143-291 is amended by adding a new subsection to read:

"(a1) The unit of State government that employed the employee at the time the cause of action arose shall pay the first one hundred fifty thousand dollars ($150,000) of liability, and the balance of any payment owed shall be paid in accordance with G.S. 143-299.4."

Section 7A.(c) G.S. 143-291.3 reads as rewritten:

"§ 143-291.3. Counterclaims by State.

The filing of a claim under this Article shall constitute consent by the ~~plaintiff(s)~~ plaintiff to the jurisdiction of the Industrial Commission to hear and determine any counterclaim of ~~one hundred fifty thousand dollars ($150,000)~~ the maximum amount authorized for a claim in G.S. 143-299.2 or less ~~which~~ that may be filed on behalf of a State department, ~~institution, or agency~~ institution or agency, or a county or city board of education. A final award of the Industrial Commission awarding damages on a counterclaim shall be filed with the ~~Clerk of the Superior Court~~ clerk of the superior court of the county ~~wherein~~ where the case was heard. These awards shall be docketed and shall be enforceable in the same manner as judgments of the General Court of Justice. Notwithstanding the provisions of Rule 12 of the Rules of Civil Procedure, nothing in this section shall require the filing of ~~such~~ a counterclaim."

Section 7A.(d) G.S. 143-299.2 reads as rewritten:

"§ 143-299.2. Limitation on payments by the State.

(a) The maximum amount ~~which~~ that the State may pay cumulatively to all claimants on account of injury and damage to any one ~~person,~~ person arising out of any one occurrence, whether the claim or claims are brought under this ~~Article~~ Article, or Article 31A or ~~Article 31B, shall be one hundred fifty thousand dollars ($150,000),~~ Article 31B of this Chapter, shall be five hundred thousand dollars ($500,000), less any commercial liability insurance purchased by the State and applicable to the claim or claims under G.S. 143-291(b), 143-300.6(c), or 143-300.16(c).

(b) The fact that a claim or claims may be brought under more than one Article under this Chapter shall not increase the above maximum liability of the State."

Section 7A.(e) Article 31 of Chapter 143 of the General Statutes is amended by adding a new section to read:

"§ 143-299.4. Payment of State excess liability.

For each claim payable during any fiscal year in excess of one hundred fifty thousand dollars ($150,000) per claim arising under this Article, or Article 31A or 31B of this Chapter, on account of injury or damage to any one person, each State agency shall transfer to the Office of State Budget and Management its proportionate share of that agency's estimated lapsed salaries, as determined by the Director of the Budget, and the Director of the Budget shall use these transferred funds to pay the balance of that claim in excess of one hundred fifty thousand dollars ($150,000)."

Section 7A.(f) G.S. 143-300.1(c) reads as rewritten:

"(c) In the event that the Industrial Commission ~~shall make award of~~ awards damages against any county or city board of education ~~pursuant to~~ under this section, the Attorney General shall draw a voucher for the amount required to pay ~~such~~ the award. The funds necessary to cover the first one hundred fifty thousand dollars ($150,000) of liability per claim ~~vouchers written by the Attorney General~~ for claims against county and city boards of education for accidents involving school buses and school transportation service vehicles shall be made available from funds appropriated to the ~~Department of Public Instruction.~~ State Board of Education. The balance of any liability owed shall be paid in accordance with G.S. 143-299.4. Neither the county or city boards of education, or the county or city administrative unit shall be liable for the payment of any award made pursuant to the provisions of this section in excess of the amount paid upon ~~such~~ a voucher by the Attorney General. Settlement and payment may be made by the Attorney General as provided in G.S. 143-295."

Section 7A.(g) G.S. 143-300.1(d) reads as rewritten:

"(d) The Attorney General may defend any civil action ~~which may be~~ brought against the driver, transportation safety assistant, or monitor of a public school bus or school transportation service vehicle or school bus maintenance mechanic when ~~such~~ the driver or mechanic is employed and paid by the local school administrative unit, when the monitor is acting in accordance with G.S. 115C-245(d), when the transportation safety assistant is acting in accordance with G.S. 115C-245(e), or when the driver is an unpaid school bus driver trainee under the supervision of an authorized employee of the Department of Transportation, Division of Motor Vehicles, or an authorized employee of a county or city board of education or administrative ~~unit thereof.~~ unit. The Attorney General may afford this defense through the use of a member of his staff or, in his discretion, employ private counsel. The Attorney General is authorized to pay any judgment rendered in ~~such~~ the civil action not to exceed the limit provided under the Tort Claims Act. The funds necessary to cover the first one hundred fifty thousand dollars ($150,000) of liability per claim shall be made available from funds appropriated to the State Board of Education. The balance of any liability owed shall be paid in accordance with G.S. 143-299.4. The Attorney General may compromise and settle any claim covered by this section to the extent that he finds the same to be valid, up to the limit provided in the Tort Claims Act, provided that the authority granted in this subsection shall be limited to only those claims ~~which~~ that would be within the jurisdiction of the Industrial Commission under the Tort Claims Act."

Section 7A.(h) G.S. 143-300.6(a) reads as rewritten:

"(a) Payment of Judgments and Settlements. In an action to which this Article applies, the State shall pay (i) a final judgment awarded in a court of competent jurisdiction against a State employee or (ii) the amount due under a settlement of the action under this section. The unit of State government ~~by which~~ that employed the employee ~~was employed~~ shall ~~make the payment.~~ pay the first one hundred fifty thousand dollars ($150,000) of liability, and the balance of any payment owed shall be paid in accordance with G.S. 143-299.4. This section does not waive the sovereign immunity of the State with respect to any claim. A payment of a judgment or settlement of a claim against a State employee or several State employees as joint tort-feasors may not exceed the amount payable for one claim under the Tort Claims Act."

Section 7A.(i) G.S. 143-300.16(a) reads as rewritten:

"(a) Any final judgment awarded against an employee in an action ~~which~~ that meets the requirements of G.S. 143-300.14, or any amount payable under a settlement of ~~such an~~ the action, shall be paid by the State. The first one hundred fifty thousand dollars ($150,000) of liability shall be paid from funds appropriated to the State Board of Education for the payment of State Tort Claims. The balance of any payment owed shall be paid in accordance with G.S. 143-299.4. ~~from the appropriation for the payment of State Tort Claims, except that no~~ No payment shall be made from ~~that appropriation~~ either funds appropriated to the State Board of Education or funds transferred from State agencies under G.S. 143-299.4 for any judgment for punitive damages. Nothing in this section shall be deemed to waive the sovereign immunity of the State with respect to a claim covered under this section or authorize the payment of any judgment or settlement against a public school employee in excess of the limit provided in the Tort Claims Act."

Section 7A.(j) Notwithstanding the limitations of G.S. 143-291.3, for claims pending on the effective date of this act, any counterclaim made by the State under G.S. 143-291.3 shall not exceed the greater of one hundred fifty thousand dollars ($150,000) or the amount of the plaintiff's claim.

Section 7A.(k) Subsections (a), (b), and (d) through (j) of this section apply to claims or actions pending on or after the effective date of this section. Subsection (c) of this section applies to claims filed on or after the effective date of this section.

Requested by: Representatives Easterling, Redwine, Senators Gulley, Dalton, Plyler, Perdue, Odom

NORTH CAROLINA RAILROAD DIVIDENDS/REPORT

Section 7.2.(a) Chapter 124 of the General Statutes is amended by adding a new section to read:

"§ 124-5.1. State use of North Carolina Railroad dividends.

(a) Notwithstanding the provisions of G.S. 136-16.6, in order to increase the capital of the North Carolina Railroad Company, any dividends of the North Carolina Railroad Company received by the State shall be applied to reduce the obligations described in subsection (c) of Section 32.30 of S.L. 1997-443, as amended by subsection (d) of Section 27.11 of S.L. 1999-237. Any dividends of the North Carolina Railroad Company received by the State shall be used by the Department of Transportation for the improvement of the property of the North Carolina Railroad Company as recommended and approved by the Board of Directors of the North Carolina Railroad Company.

(b) Effective January 1, 2000, interest shall not be accrued or otherwise charged on the remaining balance of the obligations described in subsection (c) of Section 32.30 of S.L. 1997-443, as amended by subsection (d) of Section 27.11 of S.L. 1999-237. Interest accrued on those obligations relating to periods prior to January 1, 2000, shall be deemed paid and contributed by the State to the capital of the North Carolina Railroad Company."

Section 7.2.(b) G.S. 124-3 reads as rewritten:

"§ 124-3. Report of railroad, canal, etc.; contents.

The president or other chief officer of every railroad, canal, or other public work of internal improvement in which the State owns an interest, shall, ~~when required to do so by the Governor,~~ report annually to the Joint Legislative Commission on Governmental Operations. ~~make or cause to be made to the Governor and Council of State a written report of its affairs.~~ This report shall ~~show:~~ include:

(1) Number of shares owned by the State.

(2) Number of shares owned otherwise.

(3) ~~Face~~ Par value of ~~such~~ the shares.

~~(4)~~ ~~Market value of each of such shares.~~

(5) Amount of bonded debt, and for what purpose contracted.

(6) Amount of other debt, and how incurred.

(7) If interest on bonded debt has been punctually paid as agreed; if not, how much in arrears.

(8) Amount of gross receipts for past year, and from what sources derived.

(9) An itemized account of expenditures for past year.

(10) ~~Any lease or sale of said property, or any part thereof, to whom made, for what consideration, and for what length of time.~~ A summary of all leases, sales, or acquisitions of real property to which the company has been a party since the last report.

(11) Suits at law pending against his company concerning its bonded debt, or in which title to all or any part of such road or canal is concerned.

(12) Any sales of stock owned by the State, by whose order made, and disposition of the proceeds.

(13) Annual financial statements, including notes, audited by an independent certified public accounting firm.

~~Any person failing to report as required by this section shall be guilty of a Class 1 misdemeanor.~~ Upon the request of the Governor or any committee of the General Assembly, a State-owned railroad company shall provide all additional information and data within its possession or ascertainable from its records."

Requested by: Representatives Easterling, Redwine, Senators Plyler, Perdue, Odom

STATE-SUPPORTED SCIENCE/TECHNOLOGY RECOMMENDATIONS/STUDY

Section 7.3.(a) The General Assembly finds that significant State funding or in-kind support of scientific or technological development activity by a non-State entity has been provided, but questions have arisen about whether there has been adequate provision for reimbursement of these expenses or a sharing by the State of the returns on the activities. The General Assembly desires to develop a policy to ensure that the State will share in any gain on these development activities in return for the substantial investment provided by the State, without discouraging traditional scientific or technological development activities provided through research institutions in the University system. The General Assembly finds that any solution should not cause unintended consequences, but shall protect the interest of the taxpayers who have provided the funds.

The General Assembly further finds that the constituent institutions of The University of North Carolina and the North Carolina Community Colleges System already have in place licensing, royalty, intellectual property, and other arrangements.

Section 7.3.(b) The Legislative Research Commission may study whether, consistent with the findings of subsection (a) of this section, the following should be required from the non-State entity as conditions of the funding or in-kind support:

(1) An acknowledgement that State funding or in-kind support is provided to serve a public purpose.

(2) A copy of the non-State entity's audited annual financial report for the year before and then each year after the extension of State funding or in-kind support.

(3) A quarterly report of marketing activities related to any of its scientific or technological development activity that has received State funding or in-kind support.

(4) Prior notice of any acquisition, merger, or corporate activity by the non-State entity that would:

a. Affect the public purpose and public benefit contemplated in the extension of State funding or in-kind support.

b. Benefit any of its corporate officers in the form of receiving directly or indirectly stock, stock options, or other valuable interest in a for-profit or nonprofit entity.

Section 7.3.(c) The Legislative Research Commission shall further study, consistent with the findings in subsection (a) of this section, whether the State shall provide funding or in-kind support to a non-State entity for scientific or technological development only as a contractual agreement and whether a condition of the contract shall be that the non-State entity do the following:

(1) Reimburse the State for all State support of any invention, innovation, discovery, or process that is transferred or marketed for a profit by the non-State entity.

(2) Agree to provide to the State prospectively a share in the future profits generated by a State-supported scientific or technological development.

Section 7.3.(d) The Legislative Research Commission may consult with The University of North Carolina and the North Carolina Community Colleges System regarding policy and practices relative to licensing and royalty arrangements.

Section 7.3.(e) The Legislative Research Commission shall report its recommendations to the 2001 Session of the General Assembly.

Requested by: Representatives Boyd-McIntyre, Oldham, Rogers, Easterling, Redwine, Senators Lee, Dalton, Plyler, Perdue, Odom

BUDGETING OF FUNDS TO IMPLEMENT THE ABCs OF PUBLIC EDUCATION PROGRAM

Section 7.4. The Director of the Budget shall include in the proposed continuation budget for the 2001-2003 fiscal biennium funds necessary to provide:

(1) Incentive funding for schools that meet or exceed the projected levels of improvement in student performance in accordance with the ABCs of Public Education Program; and

(2) Financial awards for personnel in schools that obtain the goals of the pilot program established in Section 8.36 of S.L. 1999-237. The purpose of this program is to test and evaluate a revised school accountability model for the ABCs of Public Education Program.

Requested by: Representatives Easterling, Redwine, Senators Plyler, Perdue, Odom

DISASTER RELIEF FUNDS

Section 7.5. The Director of the Budget may use lapsed salary funds for the 2000-2001 fiscal year to match federal funds for disaster relief.

Requested by: Representatives Easterling, Redwine, Senators Plyler, Perdue, Odom, Martin of Pitt, Robinson, Carter, Metcalf

CLEAN WATER MANAGEMENT TRUST FUND

Section 7.7.(a) Notwithstanding G.S. 143-15.3B(a), the State Controller shall not reserve to the Clean Water Management Trust Fund any portion of the unreserved credit balance remaining in the General Fund at the end of the 2000-2001 fiscal year.

Section 7.7.(b) Effective July 1, 2001, G.S. 143-15.3B(a) reads as rewritten: