GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION LAW 2001-424
AN ACT TO MAKE BASE BUDGET APPROPRIATIONS FOR CURRENT OPERATIONS OF STATE DEPARTMENTS, INSTITUTIONS, AND AGENCIES, AND FOR OTHER PURPOSES.
The General Assembly of North Carolina enacts:
PART i. INtroduction and title of act
Requested by: Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson
SECTION 1.1. 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: Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson
SECTION 1.2. This act shall be known as the "Current Operations and Capital Improvements Appropriations Act of 2001."
PART iI. current operations and expansion/general fund
Requested by: Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson
CURRENT OPERATIONS AND EXPANSION/GENERAL FUND
SECTION 2.1. 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, 2003, according to the following schedule:
Current Operations ‑ General Fund 2001‑2002 2002‑2003
EDUCATION
Community Colleges System Office 643,695,459 643,195,459
Department of Public Instruction 5,879,640,364 5,922,188,546
University of North Carolina - Board of Governors
Appalachian State University 85,231,527 85,494,527
East Carolina University
Academic Affairs 120,720,504 121,983,572
Health Affairs 46,062,074 46,062,074
Elizabeth City State University 21,649,628 21,649,628
Fayetteville State University 30,796,571 30,796,571
NC Agricultural and Technical University 59,512,768 59,512,768
North Carolina Central University 44,381,352 44,381,352
North Carolina School of the Arts 16,408,836 16,682,455
North Carolina State University
Academic Affairs 265,376,229 265,861,181
Agricultural Extension 37,434,400 37,434,400
Agricultural Research 46,704,489 46,678,373
University of North Carolina at Asheville 25,479,187 25,635,286
University of North Carolina at Chapel Hill
Academic Affairs 199,610,018 200,119,532
Health Affairs 154,439,887 156,170,103
Area Health Education Centers 46,072,336 46,072,336
University of North Carolina at Charlotte 95,659,924 96,131,150
University of North Carolina at Greensboro 93,245,204 93,322,528
University of North Carolina at Pembroke 24,591,556 24,532,869
University of North Carolina at Wilmington 59,584,977 59,936,359
Western Carolina University 51,888,048 52,156,307
Winston-Salem State University 28,095,527 28,519,116
General Administration 40,280,589 41,276,013
University Institutional Programs 40,397,754 41,247,754
Related Educational Programs 103,637,912 103,637,912
North Carolina School of Science and Mathematics 11,487,156 11,839,342
UNC Hospitals at Chapel Hill 40,587,322 40,587,322
Total 1,789,335,775 1,797,720,830
HEALTH AND HUMAN SERVICES
Department of Health and Human Services
Office of the Secretary 48,108,705 48,008,705
Division of Aging 29,531,910 29,531,910
Division of Child Development 289,058,396 289,058,396
Division of Education Services 69,581,525 69,581,525
Division of Public Health 108,459,083 107,434,083
Division of Social Services 188,690,237 194,763,531
Division of Medical Assistance 1,981,237,528 2,219,046,892
NC Health Choice 32,987,142 37,487,142
Division of Blind Services/Deaf/HH 10,168,115 10,168,115
Division of Mental Health 581,394,627 581,068,627
Division of Facility Services 15,246,969 15,442,236
Division of Vocational Rehabilitation 42,768,956 42,088,956
Total 3,397,233,193 3,643,680,118
NATURAL AND ECONOMIC RESOURCES
Department of Agriculture and Consumer Services 55,368,040 55,168,040
Department of Commerce
Commerce 59,280,374 44,280,374
Commerce State-Aid 7,125,000 5,200,000
NC Biotechnology Center 5,270,468 6,270,468
Rural Economic Development Center 4,091,055 5,090,749
Department of Environment and Natural Resources
Environment and Natural Resources 159,072,700 158,722,700
Clean Water Management Trust Fund 40,000,000 70,000,000
Office of the Governor - Housing Finance Agency 5,300,000 5,300,000
Department of Labor 15,517,906 15,117,906
JUSTICE AND PUBLIC SAFETY
Department of Correction 923,995,281 930,964,916
Department of Crime Control and Public Safety 31,749,131 28,493,506
Judicial Department 305,491,140 305,465,135
Judicial Department - Indigent Defense 70,181,601 68,867,771
Department of Justice 73,142,775 73,720,793
Department of Juvenile Justice and
Delinquency Prevention 140,800,030 142,554,017
GENERAL GOVERNMENT
Department of Administration 61,085,019 60,815,019
Office of Administrative Hearings 2,795,155 2,795,155
Department of State Auditor 11,864,673 11,864,673
Office of State Controller 11,523,868 11,523,868
Department of Cultural Resources
Cultural Resources 60,227,419 59,427,419
Roanoke Island Commission 1,859,463 1,859,463
State Board of Elections 3,186,269 3,186,269
General Assembly 39,383,848 39,553,848
Office of the Governor
Office of the Governor 5,442,905 5,442,905
Office of State Budget and Management 5,458,547 5,354,938
Mapping and Surveying 0 0
Reserve for Special Appropriations 3,635,000 3,080,000
Department of Insurance
Insurance 23,750,037 23,527,552
Insurance -- Volunteer Safety Workers'
Compensation 1,050,000 4,500,000
Office of Lieutenant Governor 669,545 669,545
Department of Revenue 77,100,467 77,955,704
Rules Review Commission 325,795 325,795
Department of Secretary of State 8,481,776 8,286,850
Department of State Treasurer
State Treasurer 7,216,817 7,216,817
State Treasurer -- Retirement for Fire and
Rescue Squad Workers 10,301,897 12,379,780
TRANSPORTATION
Department of Transportation 10,030,000 13,393,341
RESERVES AND DEBT SERVICE
Contingency and Emergency 5,000,000 5,000,000
Reserve for Compensation Increases 193,842,000 193,842,000
Reserve for Salary Adjustments 500,000 500,000
State Employee Health Benefit Plan
Statewide Reserve for State Health Plan 114,000,000 200,000,000
State Budget Office Reserve for State Health
Plan 36,000,000
Reserve for Teachers' and State Employees'
Retirement Rate Adjustment (241,002,720) (241,002,720)
Reserve for Consolidated Judicial Retirement
Rate Adjustment (2,265,000) (2,265,000)
Reserve for Mental Health Reform 47,525,675 0
Reserve to Implement HIPPA 15,000,000 0
Reserve for Information Technology Rate
Adjustment (4,000,000) (4,000,000)
Debt Service
General Debt Service 250,822,092 352,266,860
Federal Reimbursement 1,155,948 1,155,948
GRAND TOTAL CURRENT OPERATIONS –
GENERAL FUND $14,368,256,787 $14,780,657,357
Requested by: Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson
GENERAL FUND AVAILABILITY STATEMENT
SECTION 2.2.(a) The General Fund availability used in developing the 2001‑2003 biennial budget is shown below:
2001‑2002 2002‑2003
General Fund Budget Reform Statement ($ Millions) ($ Millions)
BUDGET REFORM STATEMENT
1. Composition of the 2001-2002 beginning availability:
a. Unappropriated balance 0.0
b. Revenue collections in fiscal year 2000-2001 in
excess of authorized estimates 0.0
c. Unexpended appropriations during fiscal year
2000-2001 (Reversions) 0.0
Beginning Unreserved Credit Balance 0.0
2. Revenues Based on Existing Tax Structure 13,303.4 13,979.0
3. Non-Tax Revenues:
Investment Income 164.0 171.0
Judicial Fees 112.8 115.9
Disproportionate Share 107.0 107.0
Insurance 45.5 47.4
Other Non-Tax Revenues 96.5 97.3
Highway Trust Fund Transfer 170.0 170.0
Highway Fund Transfer 14.5 15.3
Subtotal 14,013.7 14,702.9
4. Other Adjustments
IRC Conformity Adjustment (included in
House Bill 232) (3.4) (3.8)
North Carolina Railroad General Fund
Repayment 19.0
Senate Bill 353 Enhance Department of
Revenue Collections 50.0 50.0
Education/Human Services/Mental Health/
Revenue Initiatives 435.3 614.4
House Bill 1157 Implementation – Closure
of Tax Loopholes 61.3 64.3
House Bill 232 Implementation – Budget
Revenue Provisions (Accelerations) 112.1 6.0
Increase in Nontax Revenues -- Patients'
Bill of Rights (Senate Bill 199) 0.4 0.9
Transfer/Adjustment of Cash from Special,
Trust, Internal Service, and Reserve Funds 23.4 0.5
Court Fee Funds to State Bar (0.8) (1.7)
Credit to the Savings Reserve Account (181.0) ______
Subtotal 516.3 730.6
TOTAL GENERAL FUND AVAILABILITY $14,530.0 $15,433.5
SECTION 2.2.(b) Notwithstanding the provisions of Section 7.2.(a) of S.L. 2000‑67, nineteen million dollars ($19,000,000) of the North Carolina Railroad Company dividends received by the State during the 2000‑2001 fiscal year and the 2001‑2002 fiscal year shall: (i) be applied to increase the capital of the North Carolina Railroad Company, (ii) 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, and (iii) be deposited in the General Fund.
SECTION 2.2.(d) Effective July 1, 2001, cash balances remaining in special funds on June 30, 2001, shall be transferred to the State Controller to be deposited in Nontax Budget Code 19978 (Intra State Transfers) according to the schedule that follows. These funds shall be used to support General Fund appropriations for the 2001‑2002 fiscal year.
Fund Amount Transferred
Department of Agriculture and Consumer Services
Budget Code 23701, Fund Code 2201 (Warehouse
Investment Fund) $500,000
Department of Environment and Natural Resources
Budget Code 24300, Fund Code 2106 (DEH ‑ Sleep Products) 46,437
Budget Code 24300, Fund Code 2331 (DAQ ‑ Air Permits) 77,889
Budget Code 24300, Fund Code 2735 (DLR ‑ Sedimentation Fees) 148,562
Budget Code 24300, Fund Code 2620 (DLR ‑ Land Env Controls) 111,261
Budget Code 24300, Fund Code 2740 (DLR ‑ Dam Safety Account) 18,522
Budget Code 64305, Fund Code 6372 (DWM ‑ Inactive Hazardous Sites
Cleanup) 499,263
Budget Code 64305, Fund Code 6373 (DWM ‑ Emergency Response
Fund) 49,771
Budget Code 24300, Fund Code 2341 (DWQ ‑ Water Permits) 371,682
Budget Code 64306, Fund Code 6341 (DWQ ‑ WW Treatment
Maintenance & Repair) 43,256
Budget Code 24300, Fund Code 2335 (DWQ ‑ Lab Certification Fees) 16,371
Budget Code 24300, Fund Code 2130 (DWQ ‑ Well Construction Fund) 18,134
Budget Code 24300, Fund Code 2310 (DWQ ‑ Oil Pollution Control) 8,170
Budget Code 24303, Fund Code 2980 (DWQ ‑ Wetlands Restoration) 3,400,000
Department of Commerce
Budget Code 24610, Fund Code 2431 (International Trade Show Fund) $77,338
Department of Correction
Budget Code 24502 (Inmate Canteen/Welfare Fund) 380,000
SECTION 2.2.(e) Effective October 1, 2001, the sum of one million two hundred thousand dollars ($1,200,000) shall be transferred from the Department of Administration, Budget Code 74100, Fund Code 7211 (Motor Fleet Management) to the State Controller to be deposited in Nontax Budget Code 19978 (Intra State Transfers) to support General Fund appropriations for the 2001‑2002 fiscal year.
Effective April 1, 2002, the sum of two million dollars ($2,000,000) shall be transferred from the Department of Administration, Budget Code 74100, Fund Code 7211 (Motor Fleet Management) to the State Controller to be deposited in Nontax Budget Code 19978 (Intra State Transfers) to support General Fund appropriations for the 2001‑2002 fiscal year.
SECTION 2.2.(f) The transfer of cash from Department of Correction, Budget Code 74500, Fund Code 7100 (Prison Enterprises) to Nontax Budget Code 19978 (Intra State Transfers) shall be increased by one million dollars ($1,000,000), effective July 1, 2001, for the 2001‑2002 fiscal year.
The transfer of cash from Department of Correction, Budget Code 74500, Fund Code 7100 (Prison Enterprises) to Nontax Budget Code 19978 (Intra State Transfers) shall be increased by five hundred thousand dollars ($500,000), effective July 1, 2002, for the 2002‑2003 fiscal year and for subsequent fiscal years.
SECTION 2.2.(g) Notwithstanding G.S. 143‑15.2 and G.S. 143‑15.3, for the 2000‑2001 fiscal year only, funds shall not be reserved to the Savings Reserve Account, and the State Controller shall not transfer funds from the unreserved credit balance to the Savings Reserve Account on June 30, 2001. The State Controller shall credit the sum of one hundred eighty-one million dollars ($181,000,000) from the General Fund to the Savings Reserve Account on July 1, 2001. This is not an "appropriation made by law", as that phrase is used in Article V, Section 7(2) of the North Carolina Constitution.
This subsection becomes effective June 30, 2001.
SECTION 2.2.(h) Notwithstanding G.S. 143‑15.3B(a) for the 2001‑2003 fiscal biennium only, the appropriation to the Clean Water Management Trust Fund for the 2001‑2002 fiscal year is only forty million dollars ($40,000,000) as provided by this act and is only seventy million dollars ($70,000,000) for the 2002‑2003 fiscal year as provided by this act. The funds appropriated by this act to the Clean Water Management Trust Fund shall be used as provided by G.S. 143‑15.3B(b).
SECTION 2.2.(i) Effective November 1, 2001, the sum of three million dollars ($3,000,000) shall be transferred from the Office of Information Technology Services, Budget Code 74660, Fund Code 7100 to the State Controller to be deposited in Nontax Budget Code 19978 (Intra State Transfers) to support General Fund appropriations for the 2001‑2002 fiscal year.
Effective February 1, 2002, the sum of four million dollars ($4,000,000) shall be transferred from the Office of Information Technology Services, Budget Code 74660, Fund Code 7100 to the State Controller to be deposited in Nontax Budget Code 19978 (Intra State Transfers) to support General Fund appropriations for the 2001‑2002 fiscal year.
Effective June 15, 2002, the sum of three million dollars ($3,000,000) shall be transferred from the Office of Information Technology Services, Budget Code 74660, Fund Code 7100 to the State Controller to be deposited in Nontax Budget Code 19978 (Intra State Transfers) to support General Fund appropriations for the 2001‑2002 fiscal year.
The Office of Information Technology Services shall not increase rates to offset any reductions required by this act.
SECTION 2.2.(j) Notwithstanding the provisions of G.S. 105‑187.19(b), effective for taxes levied during the 2001‑2002 fiscal year, the Secretary of Revenue shall credit to the General Fund the net tax proceeds that G.S. 105‑187.19(b) directs the Secretary to credit to the Scrap Tire Disposal Account.
Notwithstanding the provisions of G.S. 105‑187.24 effective for taxes levied during the 2001‑2002 fiscal year, the Secretary of Revenue shall credit to the General Fund the net tax proceeds that G.S. 105‑187.24 directs the Secretary to credit to the White Goods Management Account.
PART iII. current operations and expansion/highway fund
Requested by: Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson
CURRENT OPERATIONS AND EXPANSION/HIGHWAY FUND
SECTION 3.1. 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, 2003, according to the following schedule:
Current Operations ‑ Highway Fund 2001‑2002 2002‑2003
(1) Transportation admin. (84210) $69,195,895 $69,195,895
(2) Transportation operations (84220) 28,801,650 28,801,650
(3) Transportation programs (84230)
State construction
Primary ‑ ‑
Secondary 87,462,000 89,387,000
Urban 14,000,000 14,000,000
Public access 2,000,000 2,000,000
Spot safety 9,100,000 9,100,000
Contingency 15,000,000 10,000,000
Federal aid match 5,212,266 5,212,266
Maintenance 578,632,263 571,609,292
Asphalt plant/OSHA 425,000 425,000
Capital 1,634,000
Ferry operations 19,747,132 19,747,132
Aid to municipalities 87,462,000 89,387,000
Rail 31,125,000 10,575,000
Public transit 64,460,834 64,460,834
Airports 5,000,000
(4) Governor's highway safety (84240) 266,693 266,693
(5) Transportation regulation (84260) 98,654,012 98,649,802
(6) Reserves and transfers (84270) 200,511,255 205,084,808
GRAND TOTAL CURRENT OPERATIONS
AND EXPANSION $1,318,690,000 $1,287,902,372
Requested by: Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson
HIGHWAY FUND AVAILABILITY STATEMENT
SECTION 3.2. The Highway Fund availability used in developing the 2001‑2003 biennial budget is shown below:
Highway Fund Budget Reform Statement 2001‑2002 2002‑2003
Beginning Credit Balance $ 14,860,000 ‑
Estimated Revenue 1,303,280,000 $1,311,720,000
Additional Reversions 550,000 ‑
Total Highway Fund Availability $1,318,690,000 $1,311,720,000
PART iv. highway trust fund appropriations
Requested by: Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson
SECTION 4.1. Appropriations from the Highway Trust 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, 2003, according to the following schedule:
Current Operations ‑ Highway Trust Fund 2001‑2002 2002‑2003
Intrastate System $464,295,516 $489,403,290
Urban Loops 187,741,771 197,894,308
Aid to Municipalities 48,715,429 51,349,821
Total for Secondary Roads 83,827,858 87,445,392
Program Administration 34,142,426 36,181,189
Transfer to General Fund 170,000,000 170,000,000
GRAND TOTAL CURRENT OPERATIONS
AND EXPANSION $988,723,000 $1,032,274,000
PART V. BLOCK GRANTS
Requested by: Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Easterling, Oldham, Redwine, Thompson
SECTION 5.1.(a) Appropriations from federal block grant funds are made for the fiscal year ending June 30, 2002, according to the following schedule:
COMMUNITY SERVICES BLOCK GRANT
01. Community Action Agencies $ 14,160,375
02. Limited Purpose Agencies 979,017
03. Department of Health and Human Services
to administer and monitor
the activities of the
Community Services Block Grant 500,000
TOTAL COMMUNITY SERVICES BLOCK GRANT $ 15,639,392
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. Comprehensive Treatment Services
Program 750,000
13. Transfer to Preventive Health Services
Block Grant for emergency medical services 213,128
14. Transfer to Preventive Health Services Block
Grant for HIV/AIDS Prevention Activities 395,789
15. Department of Administration
for the N.C. State 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. Transfer from TANF Block Grant for
Division of Social Services ‑ Child
Caring Agencies 1,500,000
20. Division of Mental Health,
Developmental Disabilities, and
Substance Abuse Services ‑ Developmentally
Disabled Waiting List for services 5,000,000
21. Transfer to Maternal and Child Health Block
Grant for Newborn Screenings 90,611
22. Transfer to Preventive Health Services Block
Grant for HIV/AIDS education, counseling, and
testing 66,939
TOTAL SOCIAL SERVICES BLOCK GRANT $ 53,888,298
LOW‑INCOME ENERGY BLOCK GRANT
01. Energy Assistance Programs $ 8,092,113
02. Crisis Intervention 5,795,825
03. Administration 1,984,934
04. Weatherization Program 2,684,116
05. Department of Administration ‑
N.C. State Commission of Indian Affairs 39,765
06. Heating Air Repair and Replacement Program 1,252,588
TOTAL LOW‑INCOME ENERGY BLOCK GRANT $ 19,849,342
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 $ 5,192,826
02. Provision of community‑based
services to children 2,378,540
03. Establish Child Residential
Treatment Services Program 1,500,000
04. Administration 783,911
TOTAL MENTAL HEALTH SERVICES BLOCK GRANT $ 9,855,277
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 $ 14,501,711
02. Continuation of services for
pregnant women and women
with dependent children 6,007,303
03. Continuation of services to
IV drug abusers and others at risk
for HIV diseases 5,209,934
04. Provision of services to children
and adolescents 6,839,190
05. Juvenile Services ‑ Family Focus 774,414
06. Child Residential Treatment
Services Program 700,000
07. Administration 2,423,049
TOTAL SUBSTANCE ABUSE PREVENTION
AND TREATMENT BLOCK GRANT $ 36,455,601
CHILD CARE AND DEVELOPMENT FUND BLOCK GRANT
01. Child care subsidies $148,343,839
02. Quality and availability initiatives 17,259,661
03. Administrative expenses 6,550,000
04. Transfer from TANF Block Grant for
child care subsidies 76,675,000
TOTAL CHILD CARE AND DEVELOPMENT FUND
BLOCK GRANT $248,828,500
TEMPORARY ASSISTANCE TO NEEDY FAMILIES
(TANF) BLOCK GRANT
01. Work First Cash Assistance $114,181,958
02. Work First County Block Grants 92,018,855
03. Transfer to the Child Care and
Development Fund Block Grant
for child care subsidies 76,675,000
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. Cash Assistance Reserve 11,676,624
06. Allocation to the Division of Social
Services for staff development 500,000
07. Reduction of out‑of‑wedlock births 1,440,000
08. Substance Abuse Services for Juveniles 1,182,280
09. Special Children Adoption Fund 2,811,687
10. Business Process Reengineering
Project Reserve 3,000,000
11. Work First Job Retention – NC Rural
Center ($270,000)
Work Central Career Advancement
Center ($380,000) 650,000
12. Allocation to the Division of Public Health
for teen pregnancy prevention 2,015,335
13. Transfer to Social Services Block Grant
for Child Caring Agencies 1,500,000
14. Child Care Subsidies for TANF Recipients 26,621,241
15. Work First Housing Initiative
‑ Existing programs ($1,800,000)
‑ New programs ($900,000) 2,700,000
16. Allocation to the Division of Social
Services for Domestic Violence
Prevention and Awareness 900,000
17. County Child Protective Services,
Foster Care, and Adoption Workers 2,727,550
18. Intensive Family Preservation Program 1,800,000
19. Work First/Boys and Girls Clubs 900,000
20. Transfer to Social Services Block Grant for
County Departments of Social Services for
Children's Services 4,500,000
21. Support Our Students – Department of
Juvenile Justice and Delinquency
Prevention 2,475,607
22. Residential Substance Abuse Services
for Women With Children 4,500,000
23. Domestic Violence Services
for Work First Families 1,800,000
24. After‑School Services for
At‑Risk Children 2,700,000
25. Division of Social Services ‑
Administration 500,000
26. Child Welfare workers and services for
local departments of social services 7,654,841
27. Child Welfare Training 2,000,000
28. Individual Development Accounts 180,000
TOTAL TEMPORARY ASSISTANCE TO NEEDY FAMILIES
(TANF) BLOCK GRANT $373,110,978
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
04. Transfer from Social Services Block Grant
for Newborn Screenings 90,611
TOTAL MATERNAL AND CHILD
HEALTH BLOCK GRANT $ 17,019,434
PREVENTIVE HEALTH SERVICES BLOCK GRANT
01. Statewide Health Promotion Programs $3,061,182
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 1,139,869
05. Transfer from Social Services
Block Grant ‑
HIV/AIDS Prevention Activities 395,789
06. Transfer from Social Services
Block Grant ‑
Emergency Medical Services 213,128
07. Transfer from Social Services
Block Grant –
HIV/AIDS education, counseling, and
testing 66,939
08. Office of Minority Health 159,459
09. Administrative Costs 108,546
TOTAL PREVENTIVE HEALTH SERVICES BLOCK GRANT $5,435,846
SECTION 5.1.(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 Health and Human Services, 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 5.1.(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 5.1.(d) Changes to the budgeted allocations to the block grants appropriated in this act and new allocations from the block grants not specified in this act shall be submitted to the Joint Legislative Commission on Governmental Operations for review prior to the change and shall be reported immediately to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division.
SECTION 5.1.(f) 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 2001‑2002 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 5.1.(g) The Department of Health and Human Services, Division of Social Services, shall do the following:
(1) Continue 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) Continue 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.
The Division of Social Services may use up to seven hundred fifty thousand dollars ($750,000) in TANF funds to complete the evaluation of Work First.
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 Health and Human Services, 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 5.1.(h) The sum of two million eight hundred eleven thousand six hundred eighty‑seven dollars ($2,811,687) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Special Children Adoption Fund, for the 2001‑2002 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 5.1.(i) 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 2001‑2002 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 5.1.(j) The sum of three hundred thousand dollars ($300,000) appropriated in this section to the Department of Health and Human Services in the Child Care and Development Fund Block Grant shall be used to develop and implement a Medical Child Care Pilot open to children throughout the State.
SECTION 5.1.(k) The sum of nine hundred thousand dollars ($900,000) 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 youths 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.
SECTION 5.1.(m) The sum of two million seven hundred thousand dollars ($2,700,000) 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 to provide direct housing support to Work First clients. 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 5.1.(n) 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 2001‑2002 fiscal year shall be used to support administration of TANF‑funded programs.
SECTION 5.1.(o) The sum of four million five hundred thousand dollars ($4,500,000) 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 2001‑2002 fiscal year shall be used to provide 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, 2001, and March 1, 2002, to the Senate Appropriations Committee on Health and Human Services, 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 5.1.(p) The sum of two million four hundred seventy‑five thousand six hundred seven dollars ($2,475,607) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services and transferred to the Department of Juvenile Justice and Delinquency Prevention for the 2001‑2002 fiscal year shall be used to support the existing Support Our Students Program and to expand the Program statewide, focusing on low‑income communities in unserved areas. These funds shall not be used for administration of the program.
SECTION 5.1.(q) The sum of one million eight hundred thousand dollars ($1,800,000) appropriated under this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2001‑2002 fiscal year shall be used to provide domestic violence services to Work First recipients. These funds shall be used to provide domestic violence counseling, support, and other direct services to clients. These funds shall not be used to establish new domestic violence shelters or to facilitate lobbying efforts. The Division of Social Services may use up to seventy‑five thousand dollars ($75,000) in TANF funds to establish one administrative position within the Division of Social Services to implement this subsection.
Each county department of social services and the local domestic violence shelter program serving the county shall jointly develop a plan for utilizing these funds. The plan shall include the services to be provided and the manner in which the services shall be delivered. The county plan shall be signed by the county social services director or the director's designee and the domestic violence program director or the director's designee and submitted to the Division of Social Services by December 1, 2001. The Division of Social Services, in consultation with the Council for Women, shall review the county plans and shall provide consultation and technical assistance to the departments of social services and local domestic violence shelter programs, if needed.
The Division of Social Services shall allocate these funds to county departments of social services according to the following formula: (i) each county shall receive a base allocation of ten thousand dollars ($10,000) and (ii) each county shall receive an allocation of the remaining funds based on the county's proportion of the statewide total of the Work First caseload as of July 1, 2001, and the county's proportion of the statewide total of the individuals receiving domestic violence services from programs funded by the Council for Women as of July 1, 2001. The Division of Social Services may reallocate unspent funds to counties that submit a written request for additional funds.
SECTION 5.1.(r) The sum of two million seven hundred thousand dollars ($2,700,000) 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, 2002, on its progress in complying with this section to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Subcommittee on Health and Human Services, and the Fiscal Research Division.
SECTION 5.1.(s) The sum of seven million six hundred fifty‑four thousand eight hundred forty‑one dollars ($7,654,841) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2001‑2002 fiscal year for Child Welfare Improvements shall be allocated to the county departments of social services for hiring or contracting staff 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 5.1.(t) 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 2001‑2002 fiscal year and the sum of seven hundred thousand dollars ($700,000) 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 2001‑2002 fiscal year shall be used to continue a Comprehensive Treatment Services Program in accordance with Section 21.60 of this act.
SECTION 5.1.(u) 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 2001‑2002 shall be used to support various child welfare training projects as follows:
(1) Provide a regional training center in southeastern North Carolina.
(2) Support the Masters Degree in Social Work/Baccalaureate Degree in Social Work Collaborative.
(3) Provide training for residential child care facilities.
(4) Provide for various other child welfare training initiatives.
The sum of two million five hundred twenty‑eight thousand nine hundred ninety‑three dollars ($2,528,993) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services for a Cash Assistance Reserve shall be held in the Cash Assistance Reserve until the Department of Health and Human Services and the Office of State Budget and Management can certify that these funds are not needed to ensure the continuation of the Work First Family Assistance payments to recipients during the 2001‑2002 fiscal year. These funds may be used only for the payment of Work First Family Assistance and the allocations listed in this subsection. If the Department of Health and Human Services and the Office of State Budget and Management certify that these funds are not needed to ensure the continuation of Work First Family Assistance payments, the Department may make the following transfers from the Cash Assistance Reserve:
(1) Reduction of out‑of‑wedlock births. $160,000
(2) Work First Job Retention –
Rural Center ($30,000)
Work Central Career Center ($20,000) $50,000
(3) Teen Pregnancy Prevention $223,926
(4) Work First Housing Initiative $300,000
(5) Domestic Violence Prevention and
Awareness $100,000
(6) Intensive Family Preservation Program $200,000
(7) Work First Boys and Girls Clubs $100,000
(8) Support Our Students $275,674
(9) Residential Substance Abuse Services
for Women with Children $500,000
(10) Domestic Violence Services for
Work First Families $200,000
(11) After School Services for At‑Risk Children $300,000
(12) Individual Development Accounts $20,000.
SECTION 5.1.(w) 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 for a Business Process Reengineering Project Reserve may only be used for the project if funds appropriated in this act for Business Process Reengineering are not sufficient to continue the project through the 2001‑2002 fiscal year. Prior to the use of these funds, the Office of State Budget and Management shall review all proposals for expenditure of these funds in order to ensure compliance with this subsection.
(1) Division of Social Services programs and services:
a. Domestic Violence Prevention and Awareness.
b. Domestic Violence Services for Work First Families.
c. After School Services for At Risk Children.
d. Work First Boys/Girls Clubs.
(2) Division of Mental Health, Developmental Disabilities, and Substance Abuse Services programs and services:
a. Substance Abuse Services for Juveniles.
b. Residential Substance Abuse Services for Women and Children.
(3) Division of Public Health programs and services:
a. Teen Pregnancy Prevention Activities.
b. Out‑of‑Wedlock Births.
c. School Health Program.
d. High‑Risk Maternity Clinic Services.
e. Perinatal Education and Training.
f. Public Information and Education.
g. Technical Assistance to Local Health Departments.
(4) Other divisions, services, and programs:
a. Family Support Services.
b. Family Resource Centers.
c. Independent Living Services.
d. Residential schools and facilities.
e. Other programs, services, or contracts that provide education and awareness services to children and families.
SECTION 5.1.(aa) The sum of one hundred eighty thousand dollars ($180,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services for the 2001‑2002 fiscal year shall be used for Individual Development Accounts (IDA) for TANF‑eligible individuals. The Social Services Commission shall adopt rules for the implementation of this subsection.
Requested by: Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson
NER BLOCK GRANT FUNDS
SECTION 5.2.(a) Appropriations from federal block grant funds are made for the fiscal year ending June 30, 2002, 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 13,200,000
04. Economic Development 8,710,000
05. Community Revitalization 13,500,000
06. State Technical Assistance 450,000
07. Housing Development 2,000,000
08. Infrastructure 5,140,000
TOTAL COMMUNITY DEVELOPMENT
BLOCK GRANT ‑ 2002 Program Year $45,000,000
SECTION 5.2.(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 these federal block grants shall be reduced by the same percentage as the reduction in federal funds.
SECTION 5.2.(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 5.2.(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 thirteen million two hundred thousand dollars ($13,200,000) 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 two million dollars ($2,000,000) may be used for Housing Development; up to five million one hundred forty thousand dollars ($5,140,000) 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 5.2.(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 5.2.(f) Study. – The Department of Commerce shall study the development of a training program designed to provide a minimum level of knowledge and skills for Community Development Block Grant administrators. In conducting the study, the Department shall consult the North Carolina League of Municipalities, the North Carolina Association of County Commissioners, the North Carolina Community Development Association, and the Institute of Government at the University of North Carolina at Chapel Hill. The Department may use unencumbered and unspent State Technical Assistance funds from previous program years to conduct the study. The Department shall report its findings to the House and Senate Appropriations Subcommittees on Natural and Economic Resources and the Fiscal Research Division by February 1, 2002.
PART VI. general provisions
Requested by: Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson
special funds, federal funds, DEPARTMENTAL RECEIPTs, and cash balanceS/AUTHORIZATION FOR EXPENDITURES
SECTION 6.1.(a) 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, and shall be expended at the level of service authorized by the General Assembly. If the receipts, other than gifts and grants that are unanticipated and are for a specific purpose only, collected in a fiscal year by an institution, department, or agency exceed the receipts certified for it in General Fund Codes or Highway Fund Codes, then the Director of the Budget shall decrease the amount he allots to that institution, department, or agency from appropriations from that Fund by the amount of the excess, unless the Director of the Budget finds that the appropriations from the Fund are necessary to maintain the function that generated the receipts at the level anticipated in the certified Budget Codes for that Fund.
Funds that become available from overrealized receipts in General Fund Codes and Highway Fund Codes may be used for new permanent employee positions or to raise the salary of existing employees only as follows:
(1) As provided in G.S. 116‑30.1, 116‑30.2, 116‑30.3, 116‑30.4; or
(2) If the Director of the Budget finds that the new permanent employee positions are necessary to maintain the function that generated the receipts at the level anticipated in the certified budget codes for that Fund. The Director of the Budget shall notify the President Pro Tempore of the Senate, the Speaker of the House of Representatives, the chairmen of the appropriations committees of the Senate and the House of Representatives, and the Fiscal Research Division of the Legislative Services Office that he intends to make such a finding at least 10 days before he makes the finding. The notification shall set out the reason the positions are necessary to maintain the function.
The Office of State Budget and Management shall report to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office within 30 days after the end of each quarter the General Fund Codes or Highway Fund Codes that did not result in a corresponding reduced allotment from appropriations from that Fund.
SECTION 6.1.(b) There is appropriated from the Reserve for Reimbursements to Local Governments and Shared Tax Revenues for each fiscal year an amount equal to the amount of the distributions required by law to be made from that reserve for that fiscal year.
SECTION 6.1.(c) 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 are not spent in a manner that would cause a deficit in expenditures.
Requested by: Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson
SECTION 6.2. All insurance and all official fidelity and surety bonds authorized for the several departments, institutions, and agencies shall be effected and placed by the Department of Insurance, and the cost of placement shall be paid by the affected department, institution, or agency with the approval of the Commissioner of Insurance.
Requested by: Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson
contingency and emergency fund allocations
SECTION 6.3.(a) Funds in the amount of five million dollars ($5,000,000) for the 2001‑2002 fiscal year and five million dollars ($5,000,000) for the 2002‑2003 fiscal year are appropriated in this act to the Contingency and Emergency Fund. Of the funds:
(1) The sum of three million eight hundred seventy‑five thousand dollars ($3,875,000) for the 2001‑2002 fiscal year and the sum of three million eight hundred seventy‑five thousand dollars ($3,875,000) for the 2002‑2003 fiscal year shall be used only to respond to an unanticipated disaster such as a fire, hurricane, or tornado;
(2) The sum of nine hundred thousand dollars ($900,000) for the 2001‑2002 fiscal year and the sum of nine hundred thousand dollars (900,000) for the 2002‑2003 fiscal year shall be used only (i) for the purposes set out in subdivision (1) of this subsection, (ii) as required by a court, Industrial Commission, or administrative hearing officer's order or award, or (iii) to match unanticipated federal funds; and
(3) The sum of two hundred twenty‑five thousand dollars ($225,000) for the 2001‑2002 fiscal year and the sum of two hundred twenty‑five thousand dollars ($225,000) for the 2002‑2003 fiscal year shall be used for the purposes set out in subdivisions (1) and (2) of this subsection or for other allocations from the Contingency and Emergency Fund.
SECTION 6.3.(b) Funds appropriated to the Contingency and Emergency Fund shall not be used to lease office space unless the expenditure is for a purpose set out in subdivision (1) or (2) of subsection (a) of this section.
Requested by: Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson
authorized transfers from salary adjustment reserves
SECTION 6.4. The Director of the Budget may transfer to General Fund budget codes from the General Fund Salary Adjustment Reserves appropriation and may transfer to Highway Fund budget codes from the Highway Fund Salary Adjustment Reserve 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 salary reserve funds in individual operating budgets are not available.
Requested by: Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson
expenditures of funds in reserves limited
SECTION 6.5. All funds appropriated by this act into reserves may be expended only for the purposes for which the reserves were established.
Requested by: Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson
state money recipients/conflict of interest policy
SECTION 6.6. 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 in which 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: Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson
SECTION 6.7. G.S. 143‑26 reads as rewritten:
"§ 143‑26. Director to have discretion as to manner of paying annual appropriations.
(a) Unless
otherwise provided, Except as provided in subsection (b) of this section
or as otherwise provided by law, it shall be discretionary with the
Director of the Budget whether any annual appropriation shall be paid in
monthly, quarterly or semiannual installments or in a single payment.
(b) Except as otherwise provided by law, an annual appropriation of one hundred thousand dollars ($100,000) or less to or for the use of a nonprofit corporation shall be paid in a single annual payment. An annual appropriation of more than one hundred thousand dollars ($100,000) to or for the use of a nonprofit corporation shall be paid in quarterly or monthly installments, in the discretion of the Director of the Budget."
Requested by: Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson
SECTION 6.8.(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.
SECTION 6.8.(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: Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson
APPROPRIATIONS EFFICIENCY review
SECTION 6.9. The Appropriations Committees of the Senate and House of Representatives may convene at least once a month during the interim period between the 2001 General Assembly and the 2002 Regular Session of the 2001 General Assembly to study the structure, duties, and functions of the various agencies and programs of State government. The review by the Appropriations Committees shall focus on ways to ensure that State government functions efficiently and to generate cost savings to the citizens of the State. The Appropriations Committees shall apply zero‑base budgeting principles in evaluating the fiscal functions and funding needs of State agencies. The Appropriations Committees shall consider the recommendations of the Governor's Efficiency Commission and shall evaluate the feasibility of consolidating, eliminating, transferring, or privatizing certain State programs, operations, or entities where there is duplication of services or functions or where the functions being performed are not cost‑effective.
Requested by: Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson
LIMITATIONS ON AGENCY LEGISLATIVE LIAISON
SECTION 6.10.(a) Article 9A of Chapter 120 of the General Statues is amended by adding the following new section to read:
"§ 120-47.12. Limitations on agency legislative liaisons.
(a) No principal State department may use State funds to contract with persons who are not employed by the State to lobby the General Assembly.
(b) No more than two persons in each principal State department and constituent institution of The University of North Carolina may be registered to lobby the General Assembly or designated as legislative liaisons pursuant to this Article."
SECTION 6.10.(b) G.S. 120‑47.1 is amended by adding a new subdivision to read:
"(4a) The term "legislative liaison personnel" means any State officer or employee whose principal duties in practice or as set forth in that person's job description involve lobbying the General Assembly."
SECTION 6.10.(c) This section is effective when it becomes law.
Requested by: Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson
RESERVE TO IMPLEMENT THE HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT (HIPAA)
SECTION 6.11.(a) Funds in the amount of fifteen million dollars ($15,000,000) are appropriated in this act to the Reserve to Implement HIPAA. This reserve shall be located in the Office of State Budget and Management.
SECTION 6.11.(b) The federal Health Insurance Portability and Accountability Act (HIPAA) was enacted in 1996 and set many goals for the health care industry. The act’s primary purpose is to protect health insurance coverage for workers and their families when workers change or lose jobs. This new protection requires major administrative changes for health care programs. The most comprehensive changes include: (i) moving from paper‑based transactions to electronic transactions, (ii) establishing national identifiers for providers, payers, and employers, and (iii) upgrading security and privacy of health care information. Failure to implement HIPAA requirements may result in denied or delayed reimbursements and severe civil and criminal penalties.
SECTION 6.11.(c) The Office of State Budget and Management, in consultation with the State Chief Information Officer and the Secretary of Health and Human Services, shall develop a strategic plan to implement the requirements outlined in HIPAA. Specifically, the plan shall:
(1) Identify and document all requirements outlined in the federal HIPAA legislation as they relate to State agencies;
(2) Include an assessment of the State’s existing administrative systems, policies, and information technology systems, as they relate to the requirements of HIPAA;
(3) Include a timeline for implementing all necessary administrative, policy, and technology changes to ensure compliance; and
(4) Provide a detailed cost and cash flow analysis for each State agency subject to compliance. The analysis shall include personnel requirements, information technology equipment needs, and other operating and start‑up expenses needed to implement HIPAA requirements.
SECTION 6.11.(d) The Office of State Budget and Management shall report on the strategic plan developed pursuant to this section to the Chairs of the Senate and House of Representatives Appropriations Committees, the Chairs of the Senate and House of Representatives Appropriations Subcommittees on Information Technology, the Joint Legislative Commission on Governmental Operations, and the Fiscal Research Division by October 1, 2001.
SECTION 6.11.(e) Funds spent to implement this section shall not exceed one million five hundred thousand dollars ($1,500,000) until the Office of State Budget and Management reports to the Chairs of the Senate and House of Representatives Appropriations Committees, the Chairs of the Senate and House of Representatives Appropriations Subcommittees on Information Technology, the Joint Legislative Commission on Governmental Operations, and the Fiscal Research Division on actual and proposed expenditures and actual and projected monthly cash requirements for the 2001‑2002 fiscal year and beyond. After making this report, the Office of State Budget and Management shall report quarterly on its progress in implementing this section to the Chairs of the Senate and House of Representatives Appropriations Committees, the Chairs of the Senate and House of Representatives Appropriations Subcommittees on Information Technology, the Joint Legislative Commission on Governmental Operations, and the Fiscal Research Division.
Requested by: Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson
LIMITATIONS ON USE OF STATE AIRCRAFT
SECTION 6.12. No airplane or helicopter operated or maintained with State funds may be used to transport any member of a board or commission to or from a meeting of the board or commission to which that member is appointed unless:
(1) The member is an elected official or head of a principal State department who serves on the board or commission by virtue of his or her office;
(2) The member is traveling with another member who is an elected official who serves on the board or commission by virtue of his or her office;
(3) The member is traveling on an airplane or helicopter that is flying to a particular destination for official State business other than a meeting of a board or commission; or
(4) The Director of the Office of State Budget and Management has approved the use of the State airplane or helicopter as an exceptional circumstance.
The Director of the Office of State Budget and Management shall report to the Chairs of the Appropriations Committees of the Senate and House of Representatives by December 31 each year on the use of State aircraft in the prior year pursuant to subdivision (4) of this section.
Requested by: Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson
PRIVATE LICENSE PLATES ON PUBLICLY OWNED MOTOR VEHICLES
SECTION 6.14.(a) Chapter 20 of the General Statutes is amended by adding a new section to read:
"§ 20-39.1. Publicly owned vehicles to be marked; private license plates on publicly owned vehicles.
(a) Except as otherwise provided in this section, the executive head of every department of State government and every county, institution, or agency of the State shall mark every motor vehicle owned by the State, county, institution, or agency with a statement that the vehicle belongs to the State, county, institution, or agency. The requirements of this subsection are complied with if:
(1) The vehicle has imprinted on the license plate, above the license number, the words "State Owned" and the vehicle has affixed to the front the words "State Owned";
(2) In the case of a county, the vehicle has painted or affixed on its side a circle not less than eight inches in diameter showing a replica of the seal of the county; or
(3) In the case of vehicles assigned to members of the Council of State, the vehicle has imprinted on the license plate the license number assigned to the appropriate member of the Council of State pursuant to G.S. 20-79.5(a); a member of the Council of State shall not be assessed any registration fee if the member elects to have a State-owned motor vehicle assigned to the member designated by the official plate number.
(b) A motor vehicle used by any State or county officer or official for transporting, apprehending, or arresting persons charged with violations of the laws of the United States or the laws of this State is not required to be marked as provided in subsection (a) of this section. The Commissioner may lawfully provide private license plates to local, State, or federal departments or agencies for use on publicly owned or leased vehicles used for those purposes. Private license plates issued under this subsection shall be issued on an annual basis and the records of issuance shall be maintained in accordance with the provisions of G.S. 20-56.
(c) A motor vehicle used
by a county for transporting day or residential facility clients of area mental
health, developmental disabilities, and substance abuse authorities established
under Article 4 of Chapter 122C of the General Statutes is not required to be
marked as provided in subsection (a) of this section. The Commissioner may
lawfully provide private license plates to counties for use on publicly owned
or leased vehicles used for that purpose. Private license plates issued under
this subsection shall be issued on an annual basis and the records of issuance
shall be maintained in accordance with the provisions of G.S. 20-56.
(d) For purposes of this section, the term "private license plate" refers to a license plate that would normally be issued to a private party and therefore lacks any markings indicating that it has been assigned to a publicly owned vehicle. "Confidential" license plates are a specialized form of private license plate for which a confidential registration has been authorized under subsection (e) of this section. "Fictitious" license plates are a specialized form of private license plate for which a fictitious registration has been issued under subsection (f) or (g) of this section.
(e) Upon approval and request of the Director of the State Bureau of Investigation, the Commissioner shall issue confidential license plates to local, State, or federal law enforcement agencies and agents of the Internal Revenue Service in accordance with the provisions of this subsection. Applicants in these categories shall provide satisfactory evidence to the Director of the State Bureau of Investigation of the following:
(1) The confidential license plate requested is to be used on a publicly owned or leased vehicle that is primarily used for transporting, apprehending, or arresting persons charged with violations of the laws of the United States or the State of North Carolina;
(2) The use of a confidential license plate is necessary to protect the personal safety of an officer or for placement on a vehicle used primarily for surveillance or undercover operations; and
(3) The application contains an original signature of the head of the requesting agency or department or, in the case of a federal agency, the signature of the senior ranking officer for that agency in this State.
Confidential license plates issued under this subsection shall be issued on an annual basis and the Division shall maintain a separate registration file for vehicles bearing confidential license plates. That file shall be confidential for the use of the Division and is not a public record within the meaning of Chapter 132 of the General Statutes. Upon the annual renewal of the registration of a vehicle for which a confidential status has been established under this section, the registration shall lose its confidential status unless the agency or department supplies the Director of the State Bureau of Investigation with information demonstrating that an officer's personal safety remains at risk or that the vehicle is still primarily used for surveillance or undercover operations at the time of renewal.
(f) The Commissioner may to the extent necessary provide law enforcement officers of the Division on special undercover assignments with motor vehicle operator's licenses and motor vehicle license plates under assumed names, using false or fictitious addresses. The Commissioner shall be responsible for the request for issuance and use of such licenses and license plates, and may direct the immediate return of any license or license plate issued pursuant to this subsection.
(g) The Commissioner may, upon the request of the Director of the State Bureau of Investigation and to the extent necessary, lawfully provide local, State, and federal law enforcement officers on special undercover assignments with motor vehicle drivers licenses and motor vehicle license plates under assumed names, using false or fictitious addresses. Fictitious license plates shall only be used on publicly owned or leased vehicles. A request for fictitious licenses and license plates by a local, State or federal law enforcement agency or department shall be made in writing to the Director of the State Bureau of Investigation and shall contain an original signature of the head of the requesting agency or department or, in the case of a federal agency, the signature of the senior ranking officer for that agency in this State.
Prior to the issuance of any fictitious license or license plate, the Director of the State Bureau of Investigation shall make a specific written finding that the request is justified and necessary. The Director shall maintain a record of all such licenses, license plates, assumed names, false or fictitious addresses, and law enforcement officers using the licenses or license plates. That record shall be confidential and is not a public record within the meaning of Chapter 132 of the General Statutes. The Director shall request the immediate return of any license or registration that is no longer necessary.
Licenses and license plates provided under this subsection shall expire six months after initial issuance unless the Director of the State Bureau of Investigation has approved an extension in writing. The head of the local, State, or federal law enforcement agency shall be responsible for the use of the licenses and license plates and shall return them immediately to the Director for cancellation upon either (i) their expiration, (ii) request of the Director of the State Bureau of Investigation, or (iii) request of the Commissioner. Failure to return a license or license plate issued pursuant to this subsection shall be punished as a Class 2 misdemeanor. At no time shall the number of valid licenses issued under this subsection exceed two hundred nor shall the number of valid license plates issued under this subsection exceed one hundred twenty-five unless the Director determines that exceptional circumstances justify exceeding those amounts. However, fictitious licenses and license plates issued to special agents of the State Bureau of Investigation and alcohol law enforcement agents shall not be counted against the limitation on the total number of fictitious licenses and plates established by this subsection and shall be renewable annually.
(h) No private, confidential, or fictitious license plates issued under this section shall be used on privately owned vehicles under any circumstances.
(i) The Commissioner shall administer the issuance of private plates for State-owned vehicles under the provisions of this section to ensure strict compliance with those provisions. The Division shall report to the Joint Legislative Commission on Governmental Operations by January 1 and July 1 of each year on the total number of private plates issued to each agency, the total number of confidential plates issued to each agency, and the total number of fictitious licenses and plates issued by the Division."
SECTION 6.14.(b) Effective October 1, 2003, G.S. 20-39.1(b), as enacted in subsection (a) of this section, reads as rewritten:
"(b) A motor vehicle
used by any State or county officer or official for transporting,
apprehending, or arresting persons charged with violations of the laws of the
United States or the laws of this State is not required to be marked as
provided in subsection (a) of this section. The Commissioner may lawfully
provide private license plates to local, State, local or federal
law enforcement agencies for use on publicly owned or leased vehicles used for
those purposes. Private license plates issued under this subsection shall be
issued on an annual basis and the records of issuance shall be maintained in
accordance with the provisions of G.S. 20-56."
SECTION 6.14.(c) All information placed in a confidential file pursuant to the provisions of G.S. 20-56(b) prior to the effective date of this section may remain in that file through December 31, 2001, unless that confidential registration expires prior to that date. Effective January 1, 2002, all confidential license plates issued by the Division of Motor Vehicles shall be converted to private plates unless prior to that date the agency or department that requested the maintenance of a confidential file has supplied the Director of the State Bureau of Investigation with the information required under G.S. 20-39.1(e), as enacted by this subsection (a) of this section.
SECTION 6.14.(d) G.S. 14‑250 is repealed.
SECTION 6.14.(e) G.S. 20-39(g) and G.S. 20-39(h) are repealed.
SECTION 6.14.(f) The catchline of G.S. 20-39 reads as rewritten:
"§
20‑39. Administering and enforcing laws; rules and regulations; agents,
etc.; seal; fees; licenses and plates for undercover officers. fees."
SECTION 6.14.(g) G.S. 20-56(b) is repealed.
SECTION 6.14.(h) Subsection (b) of this section becomes effective October 1, 2003. Except as provided in subsection (c) of this section, the remainder of this section is effective when it becomes law.
Requested by: Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson
EXTEND THE COMMISSION TO ADDRESS SMART GROWTH, GROWTH MANAGEMENT, AND DEVELOPMENT ISSUES
SECTION 6.16. Section 16.7(g) of S.L.1999‑237 reads as rewritten:
"Section 16.7.(g) Report. –
The Commission shall submit an interim report to the 2000 Regular Session of
the 1999 General Assembly and shall submit a final report of its findings and
recommendations by January 15, 2001,November 1, 2001, to the
General Assembly, the Governor, and the citizens of the State. The report may
include recommendations to (i) enact and implement a program of comprehensive
planning, supportive infrastructure development, and growth management and (ii)
address the issue of continued oversight of growth and development in the
State, including whether a permanent commission should be established. The
Commission shall terminate upon filing its final report."
Requested by: Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson
Masters Level Internships in state agencies
SECTION 6.17. The Governor's Public Management Fellowship Program (GPMFP) is reinstated. The Office of State Personnel shall continue to provide central coordination of the Program as provided by Executive Order No. 169, April 13, 2000. State agencies may resume paid internships for recent graduates of in-State Masters of Public Administration and Masters of Public Policy programs as provided by Executive Order No. 169, April 13, 2000, subject to the availability of agency funds.
Requested by: Senators Plyler, Odom, Lee; Representative Easterling, Oldham, Redwine, Thompson
application of tort claims act to bus drivers
SECTION 6.18. G.S. 143‑300.1(d) reads as rewritten:
"(d) Except as otherwise
provided in this subsection, the The Attorney General may may,
upon the request of an employee or former employee, defend any civil action
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 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. 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 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 that would be within the jurisdiction of the
Industrial Commission under the Tort Claims Act.
The Attorney General shall refuse to provide for the defense of a civil action or proceeding brought against an employee or former employee if the Attorney General determines that:
(1) The act or omission was not within the scope and course of his employment as a State employee; or
(2) The employee or former employee acted or failed to act because of actual fraud, corruption, or actual malice on his part; or
(3) Defense of the action or proceeding by the State would create a conflict of interest between the State and the employee or former employee; or
(4) Defense of the action or proceeding would not be in the best interests of the State."
Requested by: Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson
Personal Services Contracts/Reporting requirements
SECTION 6.19.(a) By January 1, 2002, and quarterly thereafter, each State department, agency, and institution shall make a detailed written report to the Office of State Budget and Management and the Office of State Personnel on its utilization of personal services contracts. The report by each State department, agency, and institution shall include the following:
(1) The total number of personal services contractors in service during the reporting period.
(2) The type, duration, status, and cost of each contract.
(3) The number of contractors utilized per contract.
(4) A description of the functions and projects requiring contractual services.
(5) The number of contractors for each function or project.
(6) Identification of the State employee responsible for oversight of the performance of each contract and the number of contractors reporting to each contract manager or supervisor.
SECTION 6.19.(b) By March 15, 2002, and biannually thereafter, the Office of State Budget and Management and the Office of State Personnel shall compile and analyze the information required under subsection (a) of this section and shall submit to the Joint Legislative Commission on Governmental Operations a detailed report on the type, number, duration, cost and effectiveness of State personal services contracts throughout State government.
Requested by: Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson
INCLUDE CONTINUING RESOLUTION ITEMS
SECTION 6.20.(a) All appropriations made in S.L. 2001-250, S.L. 2001-287, S.L. 2001-322, and S.L. 2001-395, are repealed and funds appropriated pursuant to those acts shall revert to the appropriate fund. The Director of the Budget shall adjust allocations made pursuant to the Current Operations and Capital Improvements Act of 2001 to reflect allocations made pursuant to S.L. 2001-250, S.L. 2001-287, S.L. 2001-322, and S.L. 2001-395, so as to give effect to the Current Operations and Capital Improvements Act of 2001 from July 1, 2001.
SECTION 6.20.(b) Section 5 of S.L. 2001-250, Section 5 of S.L. 2001-322, and Sections 2.1, 3, 4, 5, 6, 7, 8, 10, 15, and 16 of S.L. 2001-395 are repealed.
SECTION 6.20.(c) The provisions of S.L. 2001-250, S.L. 2001-287, S.L. 2001-322, and S.L. 2001-395, S.L. 2001 remain in effect for the 2001-2002 fiscal year except to the extent that:
(1) Those provisions are expressly repealed or amended in this act or
(2) Those provisions conflict with the provisions of this act. To the extent of such a conflict, the provisions of this act shall prevail.
(3) Those provisions expire or expired pursuant to the provisions of those acts.
PART VII. DEPARTMENT OF ADMINISTRATION
Requested by: Senators Warren, Rand, Kerr, Harris, Plyler, Odom, Lee; Representatives Jeffus, Sherrill, Dedmon, Wainwright, Walend, Easterling, Oldham, Redwine, Thompson
SECTION 7.1.(a) G.S. 165‑20(3) reads as rewritten:
"§ 165‑20. Definitions.
As used in this Article the terms defined in this section shall have the following meaning:
…
(3) "Child" means a
person person: (i) who is a domiciliary of North Carolina and is a resident
of North Carolina when applying for a scholarship, (ii) who is a senior in high
school or its equivalent and who will graduate at the end of the academic year
or a person who has completed high school or its equivalent prior to
receipt of a scholarship as may be awarded under this Article, equivalent,
(iii) who has complied with the requirements of the Selective Service
System, if applicable, and (iv) who further meets one of the following
requirements:
a. A person whose veteran parent was a legal resident of North Carolina at the time of said veteran's entrance into that period of service in the armed forces during which eligibility is established under G.S. 165‑22.
b. A veteran's child who was born in North Carolina and has lived in North Carolina continuously since birth. Provided, that the requirement in the preceding sentence as to birth in North Carolina may be waived by the Department of Administration if it is shown to the satisfaction of the Department that the child's mother was a native‑born resident of North Carolina and was such resident at the time of her marriage to the veteran and was outside the State temporarily at the time of the child's birth, following which the child was returned to North Carolina within a reasonable period of time where said child has since lived continuously.
c. A person meeting either of the requirements set forth in subdivision (3)a or b above, and who was legally adopted by the veteran prior to said person's reaching the age of 15 years."
SECTION 7.1.(b) G.S. 165‑21 reads as rewritten:
(a) A scholarship granted pursuant to this Article shall consist of the following benefits in either a State or private educational institution:
(1) With respect to State educational institutions, unless expressly limited elsewhere in this Article, a scholarship shall consist of:
a. Tuition,
b. A reasonable board allowance,
c. A reasonable room allowance,
d. Matriculation and other institutional fees required to be paid as a condition to remaining in said institution and pursuing the course of study selected, excluding charges or fees for books, supplies, tools and clothing.
(2) With respect to private educational institutions, a scholarship shall consist of a monetary allowance as prescribed in G.S. 165‑22.1(d).
(3) Only one scholarship may be granted pursuant to this Article with respect to each child and it shall not extend for a longer period than four academic years, which years, however, need not be consecutive.
(4) No educational assistance shall be afforded a child under this Article after the end of a 10‑year period beginning on the date the scholarship is first awarded. Those persons who have been granted a scholarship under this Article prior to the effective date of this act shall be entitled to the remainder of their period of scholarship eligibility if used prior to August 1, 1999. Whenever a child is enrolled in an educational institution and the period of entitlement ends while enrolled in a term, quarter or semester, such period shall be extended to the end of such term, quarter or semester, but not beyond the entitlement limitation of four academic years.
(b) If a child is awarded a scholarship under this Article and the child is a senior in high school or its equivalent, then the scholarship shall be awarded pending the graduation of the child."
Requested by: Senators Warren, Rand, Kerr, Harris, Plyler, Odom, Lee; Representatives Jeffus, Sherrill, Dedmon, Wainwright, Gibson, Easterling, Oldham, Redwine, Thompson
MODIFICATIONS TO THE STATE EMPLOYEE INCENTIVE BONUS PROGRAM
SECTION 7.2.(a) G.S. 143‑340(1) reads as rewritten:
"(1) To establish the State Employee Incentive Bonus Program pursuant to Article 36A of this Chapter, with the authority to adopt all rules necessary to implement the program. The Secretary shall serve ex officio on all program committees and shall designate an executive secretary to administer the program."
SECTION 7.2.(b) G.S. 143‑345.20 reads as rewritten:
"§ 143‑345.20. Definitions.
The following definitions apply in this Article:
(1) Baseline reversion. – The two‑year historical average of reversions by a State department, agency, or institution.
(2) Employing unit.
– Any of the following:
a. The principal
Council of State office or department enumerated in G.S. 143A-11 for which a
State employee works.
b. The principal
State department enumerated in G.S. 143B-6 for which a State employee works.
c. The
constituent institution of The University of North Carolina or the General
Administration of The University of North Carolina for which a State employee
works.
d. The local
school administrative unit for which a State employee works.
e. The board,
commission, or agency and its staff for which a State employee works, if that
agency is not organizationally housed in any of the other offices, departments,
or institutions listed in this subdivision.
(2a) Participating agency. – Any State department, agency, or institution, or any local school administrative unit that employs State employees eligible to participate in the State Employee Incentive Bonus Program. The term includes the North Carolina Community Colleges System, The University of North Carolina and its constituent institutions, and charter schools. The term does not include federal or local government agencies.
(2b) SEIBP. – Acronym for the State Employee Incentive Bonus Program.
(3) State employee. – Any of the following:
a. A person who is a contributing member of the Teachers' and State Employees' Retirement System of North Carolina, the Consolidated Judicial Retirement System of North Carolina, or the Optional Program.
b. A person who receives wages from the State as a part‑time or temporary worker, but is not otherwise a contributing member of one of the retirement programs listed in sub‑subdivision a. of this subdivision."
SECTION 7.2.(c) G.S. 143‑345.21 reads as rewritten:
"§ 143‑345.21. State employee incentive bonus.
(a) A State employee or team of State employees may receive an incentive bonus or bonuses in reward for suggestions or innovations resulting in monetary savings to the State, increased revenues to the State, or improved quality of services delivered to the public.
(b) In addition to
any bonuses paid directly to individual State employees, a portion of the
cost-savings associated with any savings realized from permanent efficiencies
implemented pursuant to this Article may be contributed to a reserve fund for
State employee performance bonuses. Funds for State employee incentive bonuses
shall only come from savings including reversions above the baseline reversion
of the employing State department, agency, or institution.
(b1) The amount of savings generated by suggestions and innovations shall be determined after a 12-month period of implementation. No incentive bonus shall be paid prior to the expiration of 12 months, and payment may be delayed further as reasonably required to ensure that a complete cost implementation cycle is evaluated fully.
(c) Savings generated by
suggestions and innovations shall be determined at the end of the fiscal year
in which the suggestion or innovation is implemented or the determination may
be carried over for one full fiscal year after implementation before making an
award if the actual savings cannot be verified before the end of the fiscal
year. Any savings are to be calculated using the actual expenditures for a
program, activity, or service compared to the budgeted amount for the same, if
an amount has been budgeted for the program, activity, or service. The savings
calculation shall include the amount of any reversions in excess of the
baseline reversion. The savings or revenue increases realized from any
suggestion or innovation implemented for less than one full fiscal year shall
be annualized. Any savings realized through the State Employee Incentive
Bonus Program shall be weighed against continued service to the public.public
and the assurance that there is not a negative impact on State programs.
(d) If a suggestion or innovation affects a program, activity, or service for which no separate budgeted amount has been made, the State Coordinator, in conjunction with the agency evaluator or agency fiscal officer, or both for that suggestion or innovation, shall determine the budgetary impact of the suggestion or innovation.
(e) Federal and local government funds and corporate and foundation grant funds are excluded from the SEIBP.
(f) The Department of Administration shall establish the SEIBP reserve fund in which all savings for all suggestions shall be deposited as earned. Each participating agency shall be responsible for transferring savings to the SEIBP reserve fund. The funds may be encumbered as needed to ensure payment to the General Fund, to the suggester, and for distribution as required by G.S. 143-345.22. The Department of Administration shall provide the SEIBP reserve fund summary at the close of each fiscal year to the Office of State Budget and Management and to the participating agencies. The Office of State Budget and Management shall have oversight responsibility for ensuring that the required reversions and transfers are made to the General Fund, and that all encumbered funds are accounted for and paid as required by law.
(g) No distribution of suggester awards shall occur until reversion requirements to the General Fund are met and distributions as required by G.S. 143-345.22 are satisfied and verified by the Office of State Budget and Management. When all of the requirements of G.S. 143-345.22 are fulfilled, the Department of Administration shall transfer to the suggester's agency funds required to award the suggester. The suggester's agency shall make the suggestion award and ensure that all taxes and withholding requirements are met.
(h) Implementation costs may be prorated over a maximum of three years for suggestions or innovations that are capital intensive, involve leading-edge technology, or involve unconventional processes that require longer than 12 months for implementation. The amount of the average annual savings minus the average annual implementation cost shall be used as the basis for the agency to recommend a suggester award. The State Review Committee shall consult the Office of State Budget and Management to make the final award determination in these cases.
(i) There is established in the Department of Administration a nonreverting fund to be administered by the Office of State Personnel for the training and education of permanent State employees to address specific mission critical needs and objectives. Funds shall be credited from the SEIBP to the fund as provided by this Article."
SECTION 7.2.(d) G.S. 143‑345.22 reads as rewritten:
"§ 143‑345.22. Allocation of incentive bonus funds; nonmonetary recognition.
(a) If a State employee's suggestion or innovation results in a monetary savings or increased revenue to the State, the funds saved or increased shall be distributed according to the following scale or subject to guidelines as set forth by the funding source:
(1) Twenty percent (20%) of
the annualized savings or increased revenues, up to a maximum of twenty
thousand dollars ($20,000) for any one State employee, to constitute
gainsharing. If a team of State employees is the suggester, the bonus provided
in this subdivision shall be divided equally among the team members, except
that no team member may shall receive in excess of twenty
thousand dollars ($20,000), nor may shall the team receive an
aggregate amount in excess of one hundred thousand dollars ($100,000). These
funds shall not revert.
(2) Thirty percent (30%) for
all current employees in the work unit, as designated by the agency head, of
the employing unit of the suggester.allocated as follows:
a. Ten percent (10%) to the implementing agency for nonrecurring budget items to be used (i) by the implementing agency to provide equipment, supplies, training, and limited but appropriate recognition for the division, section, or group responsible for the implementation of the cost-saving measure and (ii) to meet other similar needs within the agency.
b. Ten percent (10%) to the Department of Administration for augmenting funding for the management and administration of the SEIBP. These funds shall not revert.
c. Ten percent (10%) to the State employee education and training fund administered by the Office of State Personnel under G.S. 143-342.21(i). These funds shall not revert.
(3) The remainder to the General Fund for nonrecurring budget items.
(a1) Of the pool of funds identified in subsection (a) of this section, only the General Fund appropriations shall be subject to reversion, except during declared budget emergencies. Under nonemergency budget conditions, SEIBP funds arising from savings at The University of North Carolina, the North Carolina Community Colleges System, the Highway Trust Fund, enterprise funds, and receipt-supported organizations shall be exempt from the General Fund reversion requirements.
(b) The budget of a State agency shall not be reduced in the following fiscal year by an amount similar to the monetary savings or increased revenues realized by the State Employee Incentive Bonus Program. The agency budget shall be reduced in subsequent years only if structural or organizational changes are made that warrant the reductions, including the transfer of responsibility for an activity or service to another agency or the elimination of some function of State government.
(c) If a suggestion or innovation results in improved quality of services to the public or to other State agencies, departments, and institutions, but not in monetary savings to the State, the suggester shall receive a nonmonetary award in the form of a certificate, leave with pay, or other similar recognition."
SECTION 7.2.(e) G.S. 143‑345.23 reads as rewritten:
"§ 143‑345.23. Suggestion and review process; role of agency coordinator and agency evaluator.
(a) The process for a State
employee or team of State employees to submit a cost‑saving or revenue‑increasing
proposal shall begin by with the employee or team of employees
submitting the suggestion or innovation to an agency coordinator designated
by the State department, agency, or institution impacted by the suggestion or
innovation.coordinator. The agency coordinator, in conjunction with
an agency evaluator, shall review the suggestion or innovation for submission
to the State Review Committee established in G.S. 143-345.14.G.S.
143-345.24.
(b) An agency coordinator shall be appointed by the head of each participating agency to serve as liaison between the agency, the suggester, the agency evaluator, and the SEIBP office. The duties of the agency coordinator shall include:
(1) Serving as an information source and maintaining sufficient forms necessary to submit suggestions.
(2) Responsibility for
presenting, Presenting, in conjunction with the agency evaluator,
the plan of implementation for a suggestion or innovation recommendation
for an award to the State Review Committee.
(3) Working in conjunction
with the agency evaluator designated by the Agency Coordinator for to
process a particular suggestion or innovation.innovation within
180 days, except when there are extenuating circumstances.
An agency may have more than one coordinator if required to provide sufficient services to State employees.
(c) An agency evaluator shall be designated by the management of the implementing agency to evaluate one or more suggestions. The duties of an agency evaluator shall include:
(1) Reviewing Receiving
from the agency coordinator and reviewing within 90 days, when possible,
the feasibility and effectiveness of cost‑saving or revenue‑increasing
measures suggested by State employees.
(2) Being knowledgeable of the subject program, activity, or service.
(3) Determining, in conjunction with the agency fiscal officer, the budgetary impact of a suggestion or innovation.
(4) Judging impartially both the positive and negative effects of a suggestion or innovation on the current functions of the subject program, activity, or service.
The specific assignments of the
agency evaluator shall be determined by the agency coordinator.
(d) The State Coordinator
executive secretary shall be responsible for general oversight and
coordination of the State Employee Incentive Bonus Program. The State Coordinator
coordinator shall be a State an employee working inof
the Department of Administration. The State coordinator shall be responsible
for day-to-day SEIBP program management and administration of the technical
aspects of the program. The State coordinator shall be an ex officio voting
member of the State Review Committee."
SECTION 7.2.(f) G.S. 143‑345.24 reads as rewritten:
"§ 143‑345.24. Incentive Bonus Review Committee.
(a) The Incentive Bonus Review Committee, hereinafter "State Review Committee", shall consist of nine members, as follows:
(1) The State Coordinator.
(2) A representative of the Office of State Budget and Management.
(3) A representative of the Office of State Personnel.
(4) A representative of The University of North Carolina.
(5) A representative of the Department of Justice.
(6) A representative of the Department of Labor.
(7) One State employee appointed by the Speaker of the House of Representatives.
(8) One State employee appointed by the President Pro Tempore of the Senate.
(9) One State employee appointed by the Governor upon the recommendation of the State Employees Association of North Carolina, Inc.
(b) The duties of the State Review Committee shall include:
(1) Responsibility for
receiving Receiving from the various agency coordinators
recommendations on suggestion and innovation implementation plans.suggestions
and innovations.
(2) Determining the impact of a suggestion or innovation on State government services by judging the monetary savings, increased revenues, or improved quality of services generated by a suggestion or innovation.
(3) Ensuring that the State employee incentive bonus process does not result in a negative impact on services provided to taxpayers by State government.
(c) All administrative, management, clerical, and other functions and services required by the State Review Committee shall be supplied by the Department of Administration. The Department of Administration and the State Review Committee shall report annually to the Joint Legislative Commission on Governmental Operations on the administration of the State Employee Incentive Bonus Program."
SECTION 7.2.(g) G.S. 143‑345.25 reads as rewritten:
"§
143‑345.25. Effect Innovations deemed property of the State;
effect of decisions regarding bonuses.
(a) All suggestions
or innovations submitted by State employees pursuant to this Article are the
property of the State.State, and all related intellectual property
rights shall be assigned to the State. By January 1, 2002, the Office of State
Personnel shall establish a policy regarding intellectual property rights that
arise from the SEIBP.
(b) Decisions regarding the award of bonuses by the agency coordinator and the State Review Committee are final and are not subject to review under the contested case procedures of Chapter 150B of the General Statutes."
SECTION 7.2.(h) This section becomes effective July 1, 2001, and applies to State employee suggestions and innovations approved or awarded on or after that date.
Requested by: Senators Warren, Plyler, Odom, Lee; Representatives Jeffus, Sherrill, Easterling, Oldham, Redwine, Thompson
study of motor fleet management
SECTION 7.3. The Office of State Budget and Management shall study the operations of the State motor fleet management system and shall consider the feasibility of privatizing the function. The Office of State Budget and Management shall report the results of this study to the 2002 Regular Session of the 2001 General Assembly.
Requested by: Senators Warren, Plyler, Odom, Lee; Representatives Jeffus, Sherrill, Easterling, Oldham, Redwine, Thompson
Motor Pool operations and assignment of vehicles
SECTION 7.4. G.S. 143‑341(8)(i) reads as rewritten:
"§ 143‑341. Powers and duties of Department.
The Department of Administration has the following powers and duties:
…
(8) General Services:
…
i. To establish and operate a central motor pool and such subsidiary related facilities as the Secretary may deem necessary, and to that end:
…
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 90,000 110,000
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 economically 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, "economically suitable transportation" means the most
cost-effective 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 economically
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. The Department may provide law enforcement
vehicles only to those agencies which have statutory pursuit authority."
Requested by: Senators Warren, Plyler, Odom, Lee; Representatives Jeffus, Sherrill, Easterling, Oldham, Redwine, Thompson
TRANSFER BOARD OF SCIENCE AND TECHNOLOGY
SECTION 7.6. The statutory authority, power, duties, functions, records, personnel, property, unexpended balances of appropriations, allocations, or other funds, including the functions of budgeting and purchasing, of the North Carolina Board of Science and Technology, as established in G.S. 143B‑426.30, are transferred to the Department of Commerce. Part 27 of Article 9 of Chapter 143B of the General Statutes is recodified as Part 18 of Article 10 of Chapter 143B of the General Statutes and the Revisor of Statutes shall substitute the term "Commerce" for the term "Administration" everywhere that term appears in Part 18 of Article 10 of Chapter 143B of the General Statues.
Requested by: Senators Warren, Rand, Kerr, Harris, Plyler, Odom, Lee; Representatives Jeffus, Sherrill, Dedmon, Wainwright, Easterling, Oldham, Redwine, Thompson
Domestic Violence Commission Staffing
SECTION 7.7. G.S. 143B‑394.15 is amended by adding a new subsection to read:
"(l) Staffing. – The Secretary of the Department of Administration shall be responsible for staffing the Commission. To that end, the Secretary shall, at a minimum, assign an employee to serve as a Deputy Director within the North Carolina Council for Women whose primary duties shall be to staff the Commission. The person assigned as Deputy Director shall have the education, experience, and any other qualifications necessary for the position."
Requested by: Senators Warren, Rand, Kerr, Harris, Plyler, Odom, Lee; Representatives Jeffus, Sherrill, Dedmon, Wainwright, Easterling, Oldham, Redwine, Thompson
Petroleum Overcharge Funds Allocation
SECTION 7.8.(a) There is appropriated from funds and interest thereon received from the case of United States v. Exxon that remain in the Special Reserve for Oil Overcharge Funds to the Department of Health and Human Services the sum of one million three hundred thousand dollars ($1,300,000) for the 2001-2002 fiscal year to be allocated to the Weatherization Assistance Program.
SECTION 7.8.(b) Any funds remaining in the Special Reserve for Oil Overcharge Funds after the allocation made pursuant to subsection (a) 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.
Requested by: Senators Plyler, Odom, Lee; Representatives Wainwright, Easterling, Oldham, Redwine, Thompson
Historically Underutilized Businesses
SECTION 7.9. The Secretary of the Department of Administration shall maintain the Office of Historically Underutilized Businesses (HUB) as established by Executive Order 150. The HUB shall have the same duties, responsibilities, and functions as under Executive Order 150 until further action is taken by the General Assembly concerning the HUB. Every governmental entity required by statute to use the services of the Department of Administration in the purchase of goods and services shall report its use of historically underutilized businesses to the HUB on a quarterly basis. The HUB shall report annually to the Chairs of the Appropriation Subcommittee on General Government of the Senate and the House of Representatives by May 1 of each year.
PART VIII. OFFICE OF ADMINISTRATIVE HEARINGS
Requested by: Senators Warren, Plyler, Odom, Lee; Representatives Jeffus, Sherrill, Easterling, Oldham, Redwine, Thompson
OFFICE OF ADMINISTRATIVE HEARINGS RECLASSIFICATION OF POSITIONS
SECTION 8.1. The Office of Administrative Hearings shall reclassify positions in the Rules Division, Civil Rights Division, Hearings Division, and Administration Division of the Office of Administrative Hearings in accordance with the findings and recommendations of the Office of State Personnel submitted to the General Assembly on January 30, 2001.
PART IX. OFFICE OF THE STATE AUDITOR
Requested by: Senators Warren, Plyler, Odom, Lee; Representatives Jeffus, Sherrill, Easterling, Oldham, Redwine, Thompson
electronic distribution of auditor's reports
SECTION 9.1.(a) G.S. 147‑64.6(c) reads as rewritten:
"(c) The Auditor shall be responsible for the following acts and activities:
…
(12) The Auditor shall provide in
a written statement a report to the Governor and Attorney General,
and other appropriate officials, of such facts as are in his possession
which pertain to the apparent violation of penal statutes or apparent instances
of malfeasance, misfeasance, or nonfeasance by an officer or employee.
…
(14) The Auditor shall provide
copies of each audit report to notify the General Assembly, the
Governor, the Chief Executive Officer of each agency audited, and other persons
as the Auditor deems appropriate. appropriate that an audit report
has been published, its subject and title, and the locations, including State
libraries, at which the report is available. The Auditor shall then distribute
copies of the report only to those who request a report. The copies shall be in
written or electronic form, as requested. He shall also file a copy of the
audit report in the Auditor's office, which will be a permanent public record;
Provided, nothing in this subsection shall be construed as authorizing or
permitting the publication of information whose disclosure is otherwise
prohibited by law.
…."
SECTION 9.1.(b) G.S. 147‑64.5(a) reads as rewritten:
"(a) Joint Legislative Commission on Governmental Operations. – The Auditor shall furnish copies of any and all audits only when requested by the Joint Legislative Commission on Governmental Operations. The copies shall be in written or electronic form, as requested. Accordingly, the Auditor shall, upon request by the chairmen, appear before the Commission to present findings and answer questions concerning the results of these audits. The Commission is hereby authorized to use these audit findings in its inquiries concerning the operations of State agencies and is empowered to require agency heads to advise the Commission of actions taken or to be taken on any recommendations made in the report or explain the reasons for not taking action."
PART X. OFFICE OF THE STATE CONTROLLER
Requested by: Senators Warren, Plyler, Odom, Lee; Representatives Jeffus, Sherrill, Easterling, Oldham, Redwine, Thompson
SECTION 10.1.(a) During the 2001‑2002 fiscal year, receipts generated by the collection of inadvertent overpayments by State agencies to vendors as a result of pricing errors, neglected rebates and discounts, miscalculated freight charges, unclaimed refunds, erroneously paid excise taxes, and related errors as required by G.S. 147‑86.22(c) are to be deposited in the Special Reserve Account 24172.
SECTION 10.1.(b) For the 2001‑2002 fiscal year, two hundred thousand dollars ($200,000) of the funds transferred from the Special Reserve Account 24172 shall be used by the Office of the State Controller for data processing, debt collection, or e‑commerce costs.
SECTION 10.1.(c) All funds available in the Special Reserve Account 24172 on July 1, 2001, are transferred to the General Fund on that date.
SECTION 10.1.(d) Any unobligated funds in the Special Reserve Account 24172 that are realized above the allowance in subsection (b) of this section are subject to appropriation by the General Assembly in the 2002 Regular Session of the 2001 General Assembly.
SECTION 10.1.(e) The State Controller shall report quarterly to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division on the revenue deposited into the Special Reserve Account and the disbursement of that revenue.
PART XI. DEPARTMENT OF CULTURAL RESOURCES
Requested by: Senators Warren, Plyler, Odom, Lee; Representatives Jeffus, Sherrill, Easterling, Oldham, Redwine, Thompson
COMPLETION OF THE INFORMATION TECHNOLOGY EXPANSION PROJECT AND THE INFORMATION RESOURCE MANAGEMENT COMMISSION PROJECT CERTIFICATION
SECTION 11.1. Of the funds appropriated to the Department of Cultural Resources, the sum of fifty thousand dollars ($50,000) shall be used to complete the planning for the Information Technology Expansion Project and the Information Resource Management Commission (IRMC) Project Certification. The Department shall not expend any additional funds for information technology expansion prior to review of the IRMC Project Certification by the Joint Select Committee on Information Technology. The results of the IRMC Project Certification shall be presented to the Joint Select Committee on Information Technology no later than March 1, 2002.
Requested by: Senators Lee, Warren, Rand, Kerr, Harris, Plyler, Odom, Representatives Jeffus, Sherrill, Dedmon, Wainwright, Easterling, Oldham, Redwine, Thompson
SECTION 11.2.(a) The Department of Cultural Resources and the Department of Commerce and other public and private organizations shall study the feasibility of creating tourism programs that highlight the State's Civil War history.
SECTION 11.2.(b) The Departments shall consider the following information in conducting the study:
(1) Existing Civil War tourism programs in the State, including ways that those Departments already collaborate in promoting Civil War tourism.
(2) Successful Civil War tourism programs in other states.
(3) The acquisition of federal funds and ways in which private funds can be raised to support the preservation, development, and promotion of Civil War tourism recommended by the study.
(4) An analysis of the fiscal impact of each recommendation.
SECTION 11.2.(c) The Departments shall submit a final report of their findings and recommendations, including draft legislation to implement the recommendations, to the Joint Appropriations Subcommittee on General Government and the Joint Appropriations Subcommittee on Natural and Economic Resources by April 15, 2002.
PART XII. OFFICE OF THE GOVERNOR
Requested by: Senators Warren, Rand, Kerr, Harris, Plyler, Odom, Lee; Representatives Jeffus, Sherrill, Dedmon, Wainwright, Baddour, Easterling, Oldham, Redwine, Thompson
ADVISORY COMMISSION ON MILITARY AFFAIRS
SECTION 12.1. The General Statutes are amended by adding a new Chapter to read:
"Advisory Commission on Military Affairs.
"§ 127C-1. Creation of the North Carolina Advisory Commission on Military Affairs.
There is created in the Office of the Governor the North Carolina Advisory Commission on Military Affairs to advise the Governor and the Secretary of Commerce on protecting the existing military infrastructure in this State and to promote new military missions and economic opportunities for the State and its citizens.
"§ 127C-2. Membership.
(a) The North Carolina Advisory Commission on Military Affairs shall consist of 21 voting members, who shall serve on the Executive Committee, and nine nonvoting, ex officio members who shall serve by reason of their positions.
(b) The Executive Committee shall be appointed as follows:
(1) Three members appointed by the Speaker of the House of Representatives, one of whom shall be a member of a recognized veterans' organization.
(2) Three members appointed by the President Pro Tempore of the Senate, one of whom shall be a member of a recognized veterans' organization.
(3) Fifteen members appointed by the Governor, consisting of:
a. Three representatives from the Jacksonville community.
b. Three representatives from the Havelock community.
c. Three representatives from the Goldsboro community.
d. Three representatives from the Fayetteville community.
e. Three public members from across the State.
(c) The following members shall serve ex officio:
(1) Secretary of Crime Control and Public Safety, or a designee.
(2) Secretary of Commerce, or a designee.
(3) Commanding General 18th Airborne Corps, Fort Bragg.
(4) Commanding General Marine Corps Base, Camp Lejeune.
(5) Commanding General Marine Corps Air Station, Cherry Point.
(6) Commander 4th FW, Seymour Johnson Air Force Base.
(7) Commander 43rd Airlift Wing, Pope Air Force Base.
(8) Commander of the U.S. Coast Guard Support Center, Elizabeth City.
(9) Adjutant General of the North Carolina National Guard.
(d) The Executive Committee appointed pursuant to subsection (b) of this section shall choose a Chairman and four Vice-Chairmen from amongst its membership.
"§ 127C-3. Military Advisor.
The Military Advisor within the Office of the Governor shall serve as the administrative head of the Commission and be responsible for the operations and normal business activities of the Commission, with oversight by the Executive Committee."§ 127C-4. Purposes.
The Commission shall have the following responsibilities and duties:
(1) Advise the Governor and Secretary of Commerce on how to strengthen the State's relationship with the military to protect the installations of this State from the results of any future defense budget cuts or military downsizing by providing a sound infrastructure, affordable housing, and affordable education for military members and their families, working to be viewed by national military leaders as the most military-friendly State in the nation.
(2) Develop a strategic plan to provide initiatives to support the long-term viability and prosperity of the military of this State that shall include, at least:
a. A comprehensive Economic Impact Study of Military Activities in North Carolina to be conducted by the North Carolina State University Department of Economics and the East Carolina University Office of Regional Development.
b. A Strengths/Weaknesses/Opportunities/Threats (SWOT) Analysis conducted by a professional strategic planning group on the current status of the military in North Carolina.
(3) Study ways to improve educational opportunities for military personnel in North Carolina.
(4) Assist in coordinating the State's interests in future activities of the Department of Defense.
(5) Promote initiatives to improve the quality of life for military personnel in this State."
Requested by: Senators Warren, Plyler, Odom, Lee; Representatives Jeffus, Sherrill, Easterling, Oldham, Redwine, Thompson
Eliminate State Planning Unit and rename budget office
SECTION 12.2.(a) G.S. 143‑10.3, 143‑10.4, 143‑10.5, and 143‑10.6 are repealed.
SECTION 12.2.(b) The phrase "Office of State Budget, Planning, and Management" is deleted and replaced by the phrase "Office of State Budget and Management" wherever it occurs in each of the following General Statutes:
G.S. 7A‑101. Compensation.
G.S. 7A‑113. Bookkeeping and accounting systems equipment.
G.S. 18B‑1009. In‑stand sales.
G.S. 20‑7. Issuance and renewal of drivers licenses.
G.S. 47‑30. Plats and subdivisions; mapping requirements.
G.S. 58‑6‑25. Insurance regulatory charge.
G.S. 58‑85A‑1. Creation of Fund; allocation to local fire districts and political subdivisions of the State.
G.S. 62A‑25. Use of funds.
G.S. 96‑4. Administration.
G.S. 96‑32. Common follow‑up information management system created.
G.S. 96‑35. Reports on common follow‑up system activities.
G.S. 97‑80. Rules and regulations; subpoena of witnesses; examination of books and records; depositions; costs.
G.S. 105‑130.5. Adjustments to federal taxable income in determining State net income.
G.S. 105‑134.6. Adjustments to taxable income.
G.S. 105‑262. Rules.
G.S. 108A‑27.8. Standard Program Counties – Duties of Department.
G.S. 115C‑457.1. Creation of Fund; administration.
G.S. 115C‑457.2. Remittance of moneys to the Fund.
G.S. 115C‑457.3. Transfer of funds to the State School Technology Fund.
G.S. 115C‑546.1. Creation of Fund; administration.
G.S. 115D‑31. State financial support of institutions.
G.S. 116‑220. Establishment and administration of self‑insurance trust funds; rules and regulations; defense of actions against covered persons; application of § 143‑300.6.
G.S. 120‑30.45. Fiscal note on legislation.
G.S. 120‑30.49. Compiling federal mandates; annual report.
G.S. 120‑36.8. Certification of legislation required by federal law.
G.S. 120‑131.1. Requests from legislative employees for assistance in the preparation of fiscal notes.
G.S. 120‑166. Additional criteria; nearness to another municipality.
G.S. 122A‑16. Oversight by committees of General Assembly; annual reports.
G.S. 122C‑112. Powers and duties of the Secretary.
G.S. 122C‑185. Application of funds belonging to State facilities.
G.S. 131D‑4.2. Adult care homes; family care homes; annual cost reports; exemptions; enforcement.
G.S. 131E‑13. Lease or sale of hospital facilities to or from for‑profit or nonprofit corporations or other business entities by municipalities and hospital authorities.
G.S. 135‑39.3. Oversight team.
G.S. 138‑6. Travel allowances of State officers and employees.
G.S. 138‑8. Moving expenses of State employees.
G.S. 143‑1. Scope and definitions.
G.S. 143‑2. Purposes.
G.S. 143‑3.5. Coordination of statistics; fiscal analysis required for any bill proposed by a State agency that affects the budget.
G.S. 143‑4. (For applicability see note) Advisory Budget Commission.
G.S. 143‑6. Information from departments and agencies asking State aid.
G.S. 143‑6.1. Report on use of State funds by non‑State entities.
G.S. 143‑10.1A. Same – Continuation and expansion costs.
G.S. 143‑10.2. Limit on number of State employees.
G.S. 143‑10.3. Strategic planning process.
G.S. 143‑10.4. Departmental operations plans.
G.S. 143‑10.5. Development of performance measures for major programs.
G.S. 143‑10.7. Review of department forms and reports.
G.S. 143‑12.1. Vending facilities.
G.S. 143‑15.4. General Fund operating budget size limited.
G.S. 143‑19. Help for Director.
G.S. 143‑20.1. Annual financial statements.
G.S. 143‑27. Appropriations to educational, charitable and correctional institutions are in addition to receipts by them.
G.S. 143‑28.1. Highway Fund appropriation.
G.S. 143‑31.1. Study and review of plans and specifications for building, improvement, etc., projects.
G.S. 143‑34.2. Information as to requests for nonstate funds for projects imposing obligation on State; statement of participation in contracts, etc., for nonstate funds; limiting clause required in certain contracts or grants.
G.S. 143‑34.41. Legislative intent; purpose.
G.S. 143‑34.43. Capital improvement needs criteria.
G.S. 143‑34.44. Agency capital improvement needs estimates.
G.S. 143‑138. North Carolina State Building Code.
G.S. 143‑215.94P. Groundwater Protection Loan Fund.
G.S. 143‑299.4. Payment of State excess liability.
G.S. 143‑345.24. Incentive Bonus Review Committee.
G.S. 143B‑133.1. Powers of Commission.
G.S. 143B‑336.1. Special Zoo Fund.
G.S. 143B‑372.3. Staff.
G.S. 143B‑426.39. Powers and duties of the State Controller.
G.S. 146‑30. Application of net proceeds.
G.S. 147‑33.78. Information Resource Management Commission.
G.S. 147‑33.87. Financial reporting and accountability for information technology investments and expenditures.
G.S. 147‑86.22. Statewide accounts receivable program.
G.S. 150B‑21. Agency must designate rule‑making coordinator; duties of coordinator.
G.S. 150B‑21.4. Fiscal notes on rules.
G.S. 150B‑21.9. Standards and timetable for review by Commission.
G.S. 150B‑21.28. Role of the Office of State Budget and Management.
G.S. 153A‑230.1. Definitions.
G.S. 153A‑230.2. Creation of Satellite Jail/Work Release Unit Fund.
G.S. 153A‑230.5. Satellite jails/work release units built with non‑State funds.
G.S. 159I‑25. Disbursement.
G.S. 159I‑28. Rules.
G.S. 159I‑29. Annual reports to Joint Legislative Commission on Governmental Operations.
G.S. 160A‑486. Estimates of population.
G.S. 163‑132.5. Cooperation of State and local agencies.
SECTION 12.2.(c) G.S. 147‑33.85(b) reads as rewritten:
"(b) The Office shall
coordinate with the Office of State Budget, Planning, and Management Office
of State Budget and Management to integrate agency strategic and business
planning, technology planning and budgeting, and project expenditure processes
into the Office's information technology portfolio‑based management. The
Office shall provide recommendations for agency annual budget requests for
information technology investments, projects, and initiatives to the Office
of State Budget, Planning, and Management.Office of State Budget and
Management."
Requested by: Senators Warren, Rand, Kerr, Harris, Plyler, Odom, Lee; Representatives Jeffus, Sherrill, Dedmon, Wainwright, Easterling, Oldham, Redwine, Thompson
TRansfer the Center for Geographic Information Analysis/Geodetic Survey and the Statewide Floodplain Mapping unit
SECTION 12.3.(a) The Center for Geographic Information Analysis/Geodetic Survey is transferred from the Office of State Budget and Management to the Department of Environment and Natural Resources, Division of Land Resources. This transfer has all of the elements of a Type I transfer as defined in G.S. 143A‑6.
SECTION 12.3.(b) The Statewide Floodplain Mapping Unit is transferred from the Office of State Budget and Management to the Department of Crime Control and Public Safety, Division of Emergency Management. This transfer has all of the elements of a Type I transfer as defined in G.S. 143A‑6.
PART XIII. OFFICE OF STATE PERSONNEL
Requested by: Senators Warren, Plyler, Odom, Lee; Representatives Jeffus, Sherrill, Easterling, Oldham, Redwine, Thompson
Abolish Office of State PERSONNEL Prepare Program
SECTION 13.1. The General Assembly encourages the Department of State Treasurer to include the model of the PREPARE program in its current delivery of retirement services. The PREPARE program in the Office of State Personnel is abolished.
PART XIV. GENERAL GOVERNMENT
Requested by: Senators Warren, Plyler, Odom, Lee; Representatives Jeffus, Sherrill, Easterling, Oldham, Redwine, Thompson
Use of Internet for Agency Publications
SECTION 14.1.(a) Each of the State agencies listed in subsection (b) of this section shall review its printing and publication requirements and schedules and develop a plan to reduce the cost of printing, publishing, and distributing agency information and materials, including documents, reports, and other publications by using computer technology and the Internet, in particular, to distribute information and materials to the public. In developing the plan, each State agency shall review the statutory and regulatory requirements of the agency with regard to publishing and distributing information to the public and make recommendations on any statutory revisions needed to publish and distribute agency information over the Internet or by other computer‑related means. Each agency shall submit a written report to the Fiscal Research Division of the General Assembly by April 1, 2002, outlining the required information and the recurring adjustments in the agency budget.
SECTION 14.1.(b) This section applies to the Office of the Governor, the Office of the Lieutenant Governor, the Department of Administration, the Office of the State Auditor, the Office of State Budget and Management, the Board of Elections, the Department of Insurance, the Office of the Secretary of State, the Office of the State Treasurer, the Office of Administrative Hearings, the Office of the State Controller, the Department of Cultural Resources, the General Assembly, the Office of State Personnel, the Department of Revenue, and the Rules Review Commission.
PART XIV-B. STATE BOARD OF ELECTIONS
Requested by: Senators Warren, Rand, Kerr, Harris, Plyler, Odom, Lee; Representatives Jeffus, Sherrill, Dedmon, Wainwright, Baddour, Nesbitt, Easterling, Oldham, Redwine, Thompson
SECTION 14B.1.(a) The State Board of Elections shall make grants as specified in subsection (b) of this section to certain counties that provided additional one‑stop absentee voting sites in the 2000 General Election at locations other than the county board of elections office or the county courthouse. The funds for such grants shall come from funds previously appropriated, but not granted, to the State Board of Elections by S.L. 2000‑136, for grants to counties to provide additional one‑stop absentee voting sites. Under no circumstances shall any new grants by the State Board, under this act, be funded by any new appropriations. No other grants from funds previously appropriated, but not granted, to the State Board of Elections by S.L. 2000‑136, for grants to counties to provide additional one‑stop absentee voting shall be made other than those specified in subsection (b) of this section. Any funds from the fiscal year 2000‑2001 appropriation remaining on June 30, 2001, shall not revert to the General Fund until the grant awards are made.
(1) Buncombe in the amount of fifteen thousand dollars ($15,000).
(2) Chatham in the amount of five thousand dollars ($5,000).
(3) Durham in the amount of ten thousand dollars ($10,000).
(4) Edgecombe in the amount of five thousand dollars ($5,000).
(5) Lenoir in the amount of ten thousand dollars ($10,000).
(6) Orange in the amount of five thousand dollars ($5,000).
(7) Wake in the amount of ten thousand dollars ($10,000).
PART XIV-D. DEPARTMENT OF REVENUE
Requested by: Senators Warren, Rand, Kerr, Harris, Plyler, Odom, Lee; Representatives Jeffus, Sherrill, Dedmon, Wainwright, Easterling, Oldham, Redwine, Thompson
SECTION 14D.1. Funds appropriated to the Department of Revenue for Project Collect Tax shall be transferred to a separate Fund Code in the Department's budget.
Requested by: Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson
Request for Proposal for Performance-based contract for overdue tax collections
SECTION 14D.2. The Department of Revenue shall report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division by October 1, 2001, and monthly thereafter regarding its progress in developing a request for proposal for a performance-based contract to collect overdue tax debts as defined in G.S. 105-243.1. The report shall include a list of any funds expended in developing the request for proposal and the purposes for which the funds were spent.
The Department of Revenue shall consult with the Joint Legislative Commission on Governmental Operations prior to issuing the request for proposal for performance-based contracts.
Requested by: Senators Hoyle, Kerr, Plyler, Odom, Lee; Representatives Allen, Buchanan, Luebke, Wainwright, Easterling, Oldham, Redwine
Sales Tax RATE Administrative Costs
SECTION 14D.3 The Department of Revenue may used up to two hundred thirty thousand one hundred sixty dollars ($230,160) in lapsed salary funds for the 2001‑2002 fiscal year to hire temporary personnel to implement the change in the State sales tax rate effective October 16, 2001, as enacted by this act. In addition, the Department of Revenue may draw up to two hundred thirty thousand dollars ($230,000) from collections under Article 5 of Chapter 105 of the General Statutes for the 2001‑2002 fiscal year to pay for printing, mailing, and other one‑time costs necessary to implement the changes in the State sales tax effective October 16, 2001, as enacted by this act.
PART XIV-E. DEPARTMENT OF INSURANCE
Requested by: Senators Warren, Rand, Kerr, Harris, Plyler, Odom, Lee; Representatives Jeffus, Sherrill, Dedmon, Wainwright, Easterling, Oldham, Redwine, Thompson
Authorization of reimbursement from the INSURANCE REGULATORY FUND
SECTION 14E.1.(a) G.S. 58-6-25(d) is amended by adding the following new subdivisions to read:
"(4) Money appropriated for the office of Managed Care Patient Assistance Program established under G.S. 143-730 to pay the actual costs of administering the program.
(5) Money appropriated to the Department of Insurance for the implementation and administration of independent external review procedures required by Part 4 of Article 50 of this Chapter."
SECTION 14E.1.(b) This section becomes effective only if Senate Bill 199, 2001 General Assembly, becomes law.
PART XIV-F. SECRETARY OF STATE
Requested by: Senators Warren, Harris, Rand, Kerr, Representatives Jeffus, Sherrill, Dedmon, Wainwright
PRINTING AND DISTRIBUTION OF NORTH CAROLINA MANUAL
SECTION 14F.1. G.S. 147-54 reads as rewritten:
"§ 147-54. Printing, distribution and sale of the North Carolina Manual.
The Secretary of State shall have
printed biennially for distribution and sale, five thousand (5,000)
two thousand three hundred fifty (2,350) copies of the North Carolina
Manual, and shall make distribution to the State agencies, individuals,
institutions and others as herein set forth.
NORTH CAROLINA STATE GOVERNMENT:
Members of the
GeneralAssembly.................................................................................... 2 ea.1
ea.
Officers of the General Assembly.................................................................................... 1 ea.
Offices of the Clerk of each House of
the General Assembly.................................................................................................... 1 ea.
Legislative Services Officer.............................................................................................. 1
Legislative Library.............................................................................................................. 6
Members of the Council of State...................................................................................... 2 ea.
Appointed Secretaries of Executive Departments........................................................... 2 ea.
Personnel of the Department of the Secretary of State.................................................. 1 ea.
State Board of Elections.................................................................................................... 2
Divisions of Archives and History, Director.................................................................... 1
Search Room................................................................................................................... 3
Publications Section....................................................................................................... 2
State Library...................................................................................................................... 10
Libraries within State Agencies......................................................................................... 1 ea.
Justices of the North Carolina Supreme Court................................................................ 1 ea.
Judges of the North Carolina Court of Appeals............................................................... 1 ea.
Judges of the North Carolina Superior Court................................................................... 1 ea.
Supreme Court Library..................................................................................................... 12
Court of Appeals Library.................................................................................................... 2
Clerk of the Supreme Court............................................................................................... 1
Clerk of the Court of Appeals............................................................................................ 1
Reporter of the Supreme Court and Court of Appeals.................................................... 1
Administrative Office of the Court................................................................................... 5
NORTH CAROLINA EDUCATIONAL INSTITUTIONS:
University of North Carolina System
General Administration Offices...................................................................................... 12
Chancellors of the Constituent Institutions...................................................................... 1 ea.
University of North Carolina – Chapel Hill Library...................................................... 15
North Carolina State University Library........................................................................... 5
East Carolina University Library....................................................................................... 5
North Carolina Central University Library....................................................................... 5
Appalachian State University Library................................................................................ 4
University of North Carolina – Charlotte Library........................................................... 4
University of North Carolina – Greensboro Library....................................................... 4
Western Carolina University Library................................................................................ 4
Other Constituent Institutions Libraries........................................................................... 3 ea.
North Carolina School of the Arts.................................................................................... 2
Institute of Government..................................................................................................... 2
Community Colleges and Technical Institutes................................................................. 2 ea.
Private Colleges and Universities
Duke University Library..................................................................................................... 6
Wake Forest University...................................................................................................... 6
Campbell University Library.............................................................................................. 5
Davidson College Library.................................................................................................. 4
All other Libraries of Senior and Junior Colleges........................................................... 2 ea.
Public and Private Schools containing grades 8-12......................................................... 1 ea.
COUNTY GOVERNMENT:
Clerks of Court................................................................................................................... 1 ea.
Registers of Deeds............................................................................................................. 1 ea.
Public Libraries of North Carolina................................................................................... 1 ea.
FEDERAL GOVERNMENT:
President of the United States........................................................................................... 1
North Carolina Members of the Presidential Cabinet..................................................... 1 ea.
North Carolina Members of the United States Congress................................................ 2 ea.
Library of Congress............................................................................................................ 3
Resident Judges of the Federal Judiciary
and United States Attorneys in North Carolina............................................................ 1 ea.
Secretaries of State of the United States
and Territories................................................................................................................. 1 ea.
After making the above distribution, the remainder shall be sold at the cost of publication plus tax and postage and the proceeds from such sales deposited with the State Treasurer for use by the Publications Division of the Secretary of State's Office to defray the expense of publishing the North Carolina Manual. Libraries and educational institutions not covered in the above distribution shall be entitled to a twenty percent (20%) discount on the cost of any purchase(s)."
PART XV. INFORMATION TECHNOLOGY
Requested by: Senators Reeves, Hagan, Miller, Plyler, Odom, Lee; Representatives Tolson, Tucker, Russell, Miner, Easterling, Oldham, Redwine, Thompson
STATE AGENCIES TO REPORT ON INTELLECTUAL PROPERTY/study state intellectual property assets and technology transfers
SECTION 15.1.(a) Prior to (i) the transfer of any patentable intellectual property or (ii) the release of any State grants or loans to non‑State entities for purposes related to the development of patentable intellectual property, the transferring State agency, institution, or other entity of the State shall prepare and submit to the Governor, the Joint Legislative Commission on Governmental Operations, and the Chairs of the House of Representatives Science and Technology Committee and the Senate Information Technology Committee a written evaluation of the following matters:
(1) If the proposed or pending transaction involves the transfer of patentable intellectual property developed by State employees within the scope of their employment:
a. The nature of the State’s interest in the patentable intellectual property.
b. The potential value of the State’s interest in the patentable intellectual property.
c. How to best protect the State’s interest in the patentable intellectual property, as appropriate.
(2) If the proposed or pending transaction involves the release of State grants or loans to a non‑State entity for purposes related to the development of patentable intellectual property, the measures employed by the non‑State entity to assure that the State funds do not inappropriately inure to the benefit of individuals serving in an official capacity for the State, a State agency, or the non‑State entity that receives the funds.
SECTION 15.1.(b) The provisions of subsection (a) of this section do not apply to The University of North Carolina and its constituent institutions, or to the North Carolina Community Colleges System, or to employees of these respective institutions who are subject to the intellectual property and inventor policies of the institutions employing them.
SECTION 15.1.(c) The Board of Science and Technology shall study the transfer and use of intellectual property developed with State resources, including State funds, State personnel, or facilities. The Board shall recommend to the Governor and the General Assembly legislation or other mechanisms to promote and regulate the transfer and use of intellectual property assets developed with State resources. In conducting the study required by this section, the Board of Science and Technology shall consider the following:
(1) Economic benefits, including accelerated State revenue growth, that result from the commercialization of intellectual property assets developed with State resources.
(2) Potential methods, benefits, and detriments of recouping costs incurred by the State in the development of intellectual property assets that are subsequently commercialized.
(3) Potential methods, benefits, and detriments of sharing between the public and private sectors the profits or losses resulting from the commercialization of intellectual property assets developed with State resources.
(4) Existing and potential mechanisms for assuring that intellectual property assets developed with State resources do not inappropriately inure to the benefit of individuals serving in an official capacity for the State, a State agency, or an entity receiving or using State resources.
(5) Current and potential interplay between State and federal law governing the use and transfer of intellectual property assets developed with State resources.
(6) The experience of other states in addressing the transfer and use of intellectual property assets developed using State resources.
(7) Any other factors that the Board considers appropriate.
SECTION 15.1.(d) In formulating the recommendations enumerated in subsection (c) of this section, the Board of Science and Technology shall solicit input from affected parties, including State agencies, public and private universities, businesses with experience in the development, financing, and valuation of intellectual property assets, and organizations representing information technology and biotechnology businesses.
SECTION 15.1.(e) The Board of Science and Technology shall report the recommendations required by subsection (c) of this section to the Governor and to the 2002 Regular Session of the 2001 General Assembly.
Requested by: Senators Reeves, Hagan, Miller, Plyler, Odom, Lee; Representatives Tolson, Tucker, Russell, Miner, Easterling, Oldham, Redwine, Thompson
SECURITY STANDARDS FOR STATE INFORMATION TECHNOLOGY
SECTION 15.2.(a) G.S. 147‑33.81 reads as rewritten:
"§ 147‑33.81. Definitions.
As used in this Article:
(1) "Distributed information technology assets" means hardware, software, and communications equipment not classified as traditional mainframe‑based items, including personal computers, local area networks (LANs), servers, mobile computers, peripheral equipment, and other related hardware and software items.
(2) "Information
technology" means electronic data processing goods and services and services,
telecommunications goods and services, security goods and services,
microprocessors, software, information processing, office systems, any services
related to the foregoing, and consulting or other services for design or
redesign of information technology supporting business processes.
(3) "Information technology enterprise management" means a method for managing distributed information technology assets from acquisition through retirement so that total ownership costs (purchase, operation, maintenance, disposal, etc.) are minimized while maximum benefits are realized.
(4) "Information technology portfolio management" means a business‑based approach for analyzing and ranking potential technology investments and selecting those investments that are the most cost‑effective in supporting the strategic business and program objectives of the agency.
(5) "Office" means the Office of Information Technology Services as established in this Article.
(6) "State agency" means any department, institution, commission, committee, board, division, bureau, office, officer, or official of the State. The term does not include any State entity excluded from coverage under this Article by G.S. 147-33.80, unless otherwise expressly provided."
SECTION 15.2.(b) G.S. 147‑33.82 reads as rewritten:
"§ 147‑33.82. Powers and duties of the State Chief Information Officer and the Office of Information Technology Services.
(a) The Office of Information Technology Services shall:
(1) Procure all information technology for State agencies, as provided in Part 4 of this Article.
(2) Submit for approval of the Information Resources Management Commission all rates and fees for common, shared State government‑wide technology services provided by the Office.
(3) Submit for approval of the Information Resources Management Commission recommended State government‑wide, enterprise‑level policies for information technology.
(4) Develop standards, procedures, and processes to implement policies approved by the Information Resources Management Commission.
(5) Assure that State agencies implement and manage information technology portfolio‑based management of State information technology resources, in accordance with the direction set by the State Chief Information Officer.
(6) Assure that State agencies implement and manage information technology enterprise management efforts of State government, in accordance with the direction set by the State Chief Information Officer.
(7) Provide recommendations to the Information Resources Management Commission for its biennial technology strategy and to develop State government‑wide technology initiatives to be approved by the Information Resources Management Commission.
(8) Develop a project management, quality assurance, and architectural review process that adheres to the Information Resources Management Commission's certification program and portfolio‑based management initiative.
(9) Establish and utilize the Information Technology Management Advisory Council to consist of representatives from other State agencies to advise the Office on information technology business management and technology matters.
(b) Notwithstanding any other provision of law, local governmental entities may use the information technology programs, services, or contracts offered by the Office, including information technology procurement, in accordance with the statutes, policies, and rules of the Office. For purposes of this subsection, "local governmental entities" includes local school administrative units, as defined in G.S. 115C‑5, and community colleges. Local governmental entities are not required to comply with otherwise applicable competitive bidding requirements when using contracts established by the Office. Any other State entities may also use the information technology programs, services, or contracts offered by the Office, including information technology procurement, in accordance with the statutes, policies, and rules of the Office.
(c) The State Chief Information Officer shall establish an enterprise-wide set of standards for information technology security to maximize the functionality, security, and interoperability of the State's distributed information technology assets, including communications and encryption technologies. As part of this function, the State Chief Information Officer shall review periodically existing security standards and practices in place among the various State agencies to determine whether those standards and practices meet enterprise-wide security and encryption requirements. The State Chief Information Officer may assume the direct responsibility of providing for the information technology security of any State agency that fails to adhere to security standards adopted pursuant to this section. Any actions taken by the State Chief Information Officer under this subsection shall be reported to the Information Resources Management Commission at its next scheduled meeting.
(d) Notwithstanding G.S. 143-48.3 or any other provision of law, and except as otherwise provided by this subsection, all information technology security purchased using State funds, or for use by a State agency or in a State facility, shall be subject to approval by the State Chief Information Officer in accordance with security standards adopted under this section.
(1) If the legislative branch, the judicial branch, The University of North Carolina and its constituent institutions, local school administrative units as defined by G.S. 115C-5, or the North Carolina Community Colleges System develop their own security standards, taking into consideration the mission and functions of that entity, that are comparable to or exceed those set by the State Chief Information Officer under this section, then these entities may elect to be governed by their own respective security standards, and approval of the State Chief Information Officer shall not be required before the purchase of information technology security. The State Chief Information Officer shall consult with the legislative branch, the judicial branch, The University of North Carolina and its constituent institutions, local school administrative units, and the North Carolina Community Colleges System in reviewing the security standards adopted by those entities.
(2) If the State Chief Information Officer certifies that a State agency has developed security standards that meet or exceed those set under this section, then the agency may elect to be governed by its own security standards, and approval of the State Chief Information Officer shall not be required before the purchase of information technology security. This certification by the State Chief Information Officer is subject to annual renewal and may be revoked by the State Chief Information Officer at any time that a State agency's standards no longer exceed those set under this section.
(e) The State Chief Information Officer shall submit the enterprise-wide set of standards for the State's information technology security to the Information Resources Management Commission for approval. The Information Resources Management Commission shall report approval of the standards to the Joint Legislative Commission on Governmental Operations prior to implementation of the standards. The State Chief Information Officer shall review and revise the standards at least annually, and the revisions shall be subject to approval by the Information Resources Management Commission, with the Commission reporting to the Joint Legislative Commission on Governmental Operations on the revisions.
(f) The head of each State agency shall cooperate with the State Chief Information Officer in the discharge of his or her duties by:
(1) Providing the full details of the agency's information technology and operational requirements.
(2) Providing comprehensive information concerning the information technology security employed to protect the agency's information technology.
(3) Forecasting the parameters of the agency's projected future information technology security needs and capabilities.
(4) Designating an agency liaison in the information technology area to coordinate with the State Chief Information Officer.
The information provided by State agencies to the State Chief Information Officer under this subsection is protected from public disclosure pursuant to G.S. 132-6.1(c)."
SECTION 15.2.(c) G.S. 147‑64.6(c) is amended by adding a new subdivision to read:
"(18) The Auditor shall, after consultation and in coordination with the State Chief Information Officer, assess, confirm, and report on the security practices of information technology systems. If an agency has adopted standards pursuant to G.S. 147-33.82(d)(1) or (2), the audit shall be in accordance with those standards. The Auditor's assessment of information security practices shall include an assessment of network vulnerability. The Auditor may conduct network penetration or any similar procedure as the Auditor may deem necessary. The Auditor may investigate reported information technology security breaches, cyber attacks, and cyber fraud in State government. The Auditor shall issue public reports on the general results of the reviews undertaken pursuant to this subdivision but may provide agencies with detailed reports of the security issues identified pursuant to this subdivision which shall not be disclosed as provided in G.S. 132-6.1(c). For the purposes of this subdivision only, the Auditor is exempt from the provisions of Article 3 of Chapter 143 of the General Statutes in retaining contractors."
SECTION 15.2.(d) This section is effective when it becomes law.
Requested by: Senators Reeves, Hagan, Miller, Plyler, Odom, Lee; Representatives Tolson, Tucker, Russell, Miner, Easterling, Oldham, Redwine, Thompson
Executive budget act information technology provisions
SECTION 15.3.(a) G.S. 143‑6 is amended by adding a new subsection to read:
"(b2) 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 acquiring or maintaining information technology as defined by G.S. 147‑33.81(2) shall, before making the request for State financial aid, submit to the State Chief Information Officer (CIO) a statement of its needs in terms of information technology and other related requirements and shall furnish the CIO with any additional information requested by the CIO. The CIO shall then review the statement of needs submitted by the requesting department, bureau, division, officer, board, commission, institution, or other State agency or undertaking and perform additional analysis, as necessary, to comply with G.S. 147-33.82. All requests for financial aid for the purpose of acquiring or maintaining information technology shall be accompanied by a certification from the CIO deeming the request for financial aid to be consistent with Article 3D of Chapter 147 of the General Statutes. The CIO shall make recommendations to the Governor regarding the merits of requests for financial aid for the purpose of acquiring or maintaining information technology. This subsection shall not apply to requests for appropriations of less than one hundred thousand dollars ($100,000)."
SECTION 15.3.(b) G.S. 143‑7 reads as rewritten:
"§ 143‑7. Itemized statements and forms; exemptions from G.S. 147‑64.6(c)(10).
(a) The statements and estimates required under G.S. 143‑6 shall be itemized in accordance with the budget classification adopted by the State Controller, and upon forms prescribed by the Director, and shall be approved and certified by the respective heads or responsible officer of each department, bureau, board, commission, institution, or agency submitting same. Official estimate blanks which shall be used in making these reports shall be furnished by the Director of the Budget.
(b) The budget classification adopted by the State Controller and the forms prescribed by the Director shall include budget account codes relating specifically to information technology to allow reliable and meaningful analysis of information technology funding and expenditures throughout State government."
Requested by: Senators Reeves, Hagan, Miller, Plyler, Odom, Lee; Representatives Tolson, Tucker, Russell, Miner, Easterling, Oldham, Redwine, Thompson
computer networking costs/TELECOMMUNICATIONS SERVICE BILLING for state agencies
SECTION 15.4.(a) The Office of the State Controller, the Office of State Budget and Management, and the Office of Information Technology Services shall adopt a common definition for computer networking costs. The definition shall include a specific and detailed list of the separate components that comprise overall networking costs. These agencies shall define a process to capture all such costs without redundancy.
SECTION 15.4.(b) The Office of the State Controller, the Office of State Budget and Management, and the Office of Information Technology Services shall complete the definition by December 15, 2001. By January 1, 2002, the agencies shall provide an interim report to the Joint Select Committee on Information Technology and to the Chairs of the House of Representatives Appropriations Subcommittee on Information Technology and the Senate Appropriations Committee on Information Technology on the process to capture networking costs, with a final report by May 1, 2002.
SECTION 15.4.(c) The Office of State Personnel, in conjunction with the Office of Information Technology Services, shall devise a mechanism for identifying, by specific industry‑relevant categories, State information technology positions across all relevant classifications in State government employment. The Office of State Personnel shall identify the results of market analyses comparing State information technology workers with private sector information technology workers. By January 1, 2002, the Office of State Personnel shall report on the results of the market analyses and its identification of State information technology personnel to the Joint Select Committee on Information Technology and to the Chairs of the House of Representatives Appropriations Subcommittee on Information Technology and the Senate Appropriations Committee on Information Technology.
SECTION 15.4.(d) The Office of Information Technology Services shall accurately identify and present State agencies with detailed information on the cost of the ITS services for telecommunications data and video services. The bill should clearly indicate the usage and the rate for the service.
SECTION 15.4.(e) By January 15, 2002, the Office of State Budget and Management shall conduct a detailed and comprehensive study of the costs of all information technology networks operated by or for the Administrative Office of the Courts and report the results of the study to the Joint Select Committee on Information Technology.
Requested by: Senators Reeves, Hagan, Miller, Plyler, Odom, Lee; Representatives Tolson, Tucker, Russell, Miner, Easterling, Oldham, Redwine, Thompson
STUDY STATE AGENCY USE OF CONTRACTORS FOR INFORMATION TECHNOLOGY/pilot project feasibility study
SECTION 15.5.(a) The Office of State Personnel, the Office of Information Technology Services, the Office of State Budget and Management, and the Office of the State Controller shall study the issue of State agency's use of information technology contractors. The study shall report on the number of contractors currently in use by State agencies, the duration of the working period for individual contractors, and the length of the contracts. The purpose of the contracts should be clearly identified, and the unit and actual costs of the contracts should be clearly identified.
SECTION 15.5.(b) The study report should recommend the most appropriate use of contractors (i.e., for discrete projects) and the most appropriate use of permanent employees (i.e., for ongoing activities such as LAN/WAN management). In cases where the study indicates that permanent employees are best suited for a given task or activity, the Office of State Personnel is directed to identify effective mechanisms for recruiting and retaining employees.
SECTION 15.5.(c) The study shall also compare the costs of outsourcing discrete functions and activities versus performing those activities with State government employees or contractors working for State agencies.
SECTION 15.5.(d) By March 1, 2002, the study group shall report its findings and recommendations to the Joint Legislative Commission on Governmental Operations and to the Joint Select Committee on Information Technology.
SECTION 15.5.(e) The Joint Select Committee on Information Technology shall conduct a feasibility study of a pilot program to allow budget flexibility for converting information technology contractors to employees in State agencies. The study shall include, but is not limited to, the following:
(1) Assessment of the need for budget flexibility for information technology staffing in the various agencies.
(2) Review of agency plans and projects pertaining to information technology operations and personal services contracts.
(3) Identification of the State agencies best suited to participate in a pilot project allowing budget flexibility for information technology staffing.
(4) Consideration of the advisability of limiting the number, type, and duration of new positions that would be created as the result of the budget flexibility pilot.
(5) Consideration of the training and career development initiatives that would be required to support and maximize the technical competencies needed in any new information technology positions created by the budget flexibility pilot.
The Joint Select Committee on Information Technology shall report its findings and recommendations to the General Assembly by the convening of the 2002 Regular Session of the 2001 General Assembly.
Requested by: Senators Reeves, Hagan, Miller, Plyler, Odom, Lee; Representatives Tolson, Tucker, Russell, Miner, Easterling, Oldham, Redwine, Thompson
E‑Procurement/Procurement card program
SECTION 15.6.(a) Section 20.3 of S.L. 1998‑212, Section 24 of S.L. 1999‑237, and Section 21.3 of S.L. 2000‑67 are repealed.
SECTION 15.6.(b) G.S. 143‑48.3 reads as rewritten:
"§ 143‑48.3. Electronic procurement.
(a) The Department of Administration and the Office of the State Controller, in conjunction with the Office of Information Technology Services (ITS), the Department of State Auditor, the Department of State Treasurer, the University of North Carolina General Administration, the Community Colleges System Office, and the Department of Public Instruction shall collaborate to develop electronic or digital procurement standards.
(b) The Department of Administration, in conjunction with the Office of the State Controller and the Office of Information Technology Services may, upon request, provide to all State agencies, universities, local school administrative units, and the community colleges, training in the use of the electronic procurement system.
(c) The Office of Information Technology Services shall act as an Application Service Provider for an electronic procurement system and shall establish, manage, and operate this electronic procurement system and shall establish, manage, and operate, through State ownership or commercial leasing, in accordance with the requirements and operating standards developed by the Department of Administration, the Office of the State Controller, and ITS.
(d) Nothing in this
section modifies This section does not otherwise modify existing law
relating to procurement between The University of North Carolina, UNC Health
Care, local school administrative units, community colleges, and the Department
of Administration.
(e) The Board of Governors of The University of North Carolina may exempt North Carolina State University and the University of North Carolina at Chapel Hill from the electronic procurement system authorized by this Article until May 1, 2003, if the Board of Governors determines that each exemption is in the best interest of the respective constituent institutions. Each exemption shall be subject to the Board of Governors' annual review and reconsideration. Exempted constituent institutions shall continue working with the North Carolina E-Procurement Service as that system evolves and shall ensure that their proposed procurement systems are compatible with the North Carolina E-Procurement Service so that they may take advantage of this service to the greatest degree possible. Before an exempted institution expands any electronic procurement system, that institution shall consult with the Joint Legislative Commission on Governmental Operations and the Joint Select Committee on Information Technology. By May 1, 2003, the General Assembly shall evaluate the efficacy of the State's electronic procurement system and the inclusion and participation of entities in the system.
(f) Any State entity, local school administrative unit, or community college operating a functional electronic procurement system established prior to September 1, 2001, may until May 1, 2003, continue to operate that system independently or may opt into the North Carolina E-Procurement Service. Each entity subject to this section shall notify the Information Resources Management Commission by January 1, 2002, and annually thereafter, of its intent to participate in the North Carolina E-Procurement Service."
SECTION 15.6.(c) The Board of Governors of The University of North Carolina shall take appropriate action to encourage the effective utilization of the North Carolina Electronic Procurement Service by the constituent institutions. By April 1, 2002, and annually thereafter, the Department of Administration and the Office of Information Technology Services, in conjunction with the UNC General Administration, shall review the effect of the exemptions granted under subsection (b) of this section upon the North Carolina Electronic Procurement Service and shall report their findings to the Joint Select Committee on Information Technology and the Joint Legislative Commission on Governmental Operations.
SECTION 15.6.(d) G.S. 143‑49 is amended by adding a new subdivision to read:
"(8) To establish and maintain a procurement card program for use by State agencies, community colleges, constituent institutions of The University of North Carolina, and local school administrative units. The Secretary of Administration may adopt temporary rules for the implementation and operation of the program in accordance with the payment policies of the State Controller, after consultation with the Office of Information Technology Services. These rules would include the establishment of appropriate order limits that leverage the cost savings and efficiencies of the procurement card program in conjunction with the fullest possible use of the North Carolina E-Procurement Service. Procurement cards shall be utilized only through the E-Procurement Service. North Carolina State University and the University of North Carolina at Chapel Hill may use procurement cards consistent with the rules adopted by the Secretary, provided that the procurement cards have a purchase limit of two hundred fifty dollars ($250.00) per month. Prior to implementing the program, the Secretary shall consult with the State Controller, the UNC General Administration, the Community Colleges System Office, the State Auditor, the Department of Public Instruction, and the Office of Information Technology Services. The Secretary may periodically adjust the order limit authorized in this section after consulting with the State Controller, the UNC General Administration, the Community Colleges System Office, the Department of Public Instruction, and the Office of Information Technology Services."
SECTION 15.6.(e) This section is effective when it becomes law.
Requested by: Senators Reeves, Hagan, Miller, Plyler, Odom, Lee; Representatives Tolson, Tucker, Russell, Miner, Easterling, Oldham, Redwine, Thompson
NORTH CAROLINA INFORMATION HIGHWAY SITES
SECTION 15.7.(a) Of the funds available in the Office of Information Technology Services' operating cash, the sum of three million twenty‑four thousand one hundred eighty‑five dollars ($3,024,185) shall be used for the 2001‑2002 fiscal year to fund North Carolina Information Highway (NCIH) sites that received funding from ITS operating cash during the 2000‑2001 fiscal year. In consultation with the Community Colleges System Office, the Department of Public Instruction, and the respective NCIH sites, the Office of Information Technology Services shall take appropriate action to ensure that NCIH funds are utilized efficiently, including modification of the allocations of funding for NCIH sites.
SECTION 15.7.(b) In consultation with the Office of Information Technology Services, the Community Colleges System Office shall:
(1) Evaluate utilization of the existing NCIH sites at community colleges.
(2) Consider appropriate actions relative to those community college sites that have experienced low utilization of the NCIH in the past year, including how funding for low–utilization sites should be reallocated to provide NCIH service to other community colleges that have higher usage, a demonstrated need, and the necessary facilities to utilize the NCIH most effectively and efficiently.
The Office of Information Technology Services may reallocate funding for NCIH sites at community colleges based upon the recommendations of the Community Colleges System Office.
SECTION 15.7.(c) In consultation with the Office of Information Technology Services, the Department of Public Instruction shall:
(1) Evaluate utilization of the existing NCIH sites in the public schools.
(2) Consider appropriate actions relative to those public school sites that have experienced low utilization of the NCIH in the past year, including how funding for low–utilization sites should be reallocated to provide NCIH service to other public schools that have higher usage, a demonstrated need, and the necessary facilities to utilize the NCIH most effectively and efficiently.
The Office of Information Technology Services may reallocate funding for NCIH sites in the public schools based upon the recommendations of the Department of Public Instruction.
SECTION 15.7.(d) The House of Representatives and Senate Appropriations Subcommittees on Education shall jointly review the use of the North Carolina Information Highway and recommend a mechanism for funding the sites beyond the 2001‑2002 fiscal year.
Requested by: Senators Reeves, Hagan, Miller, Plyler, Odom, Lee; Representatives Tolson, Tucker, Russell, Miner, Easterling, Oldham, Redwine, Thompson
REDUCTION IN EXPENDITURES BASED ON ITS RATE REDUCTIONS/no rate increases to offset reductions
SECTION 15.8.(a) The Office of State Budget and Management shall administer reductions in the Telephone (532811), Telecommunications Data (532812), and Computer Data Processing (532821) expenditure accounts in an amount equal to four million dollars ($4,000,000) of General Fund appropriations through the allotment system established in G.S. 143‑17. The reductions in expenditures shall be based on a percentage reduction in the rates for telephone/telecommunications and computer data processing services provided by the Office of Information Technology Services.
SECTION 15.8.(b) The Office of Information Technology Services shall not increase rates to offset any reductions required by this act.
PART XVI. HOUSING FINANCE AGENCY
Requested by: Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson
SECTION 16.1.(a) Funds appropriated in this act to the Housing Finance Agency for the federal HOME Program shall be used to match federal funds appropriated for the HOME Program. In allocating State funds appropriated to match federal HOME Program funds, the Agency shall give priority to HOME Program projects, as follows:
(1) First priority to projects that are located in counties designated as Tier One, Tier Two, or Tier Three Enterprise Counties under G.S. 105‑129.3; and
(2) Second priority to projects that benefit persons and families whose incomes are fifty percent (50%) or less of the median family income for the local area, with adjustments for family size, according to the latest figures available from the United States Department of Housing and Urban Development.
The Housing Finance Agency shall report to the Joint Legislative Commission on Governmental Operations by April 1 of each year concerning the status of the HOME Program and shall include in the report information on priorities met, types of activities funded, and types of activities not funded.
SECTION 16.1.(b) If the United States Congress changes the HOME Program such that matching funds are not required for a given program year, then the Agency shall not spend the matching funds appropriated under this act for that program year.
SECTION 16.1.(c) Funds appropriated in this act to match federal HOME Program funds shall not revert to the General Fund on June 30, 2002, or on June 30, 2003.
PART XVII. DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES
Requested by: Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson
authorize promotion of nc farm products at rest areas and welcome centers
SECTION 17.1. Article 6D of Chapter 136 of the General Statutes is amended by adding a new section to read:
"§ 136-89.59A. Promotion of North Carolina farm products at rest areas and welcome centers.
Subject to the approval of the Department, the Department of Agriculture and Consumer Services may distribute promotional materials and free samples of North Carolina farm products at rest areas and welcome centers located on controlled-access facilities and operated by the State for the purpose of promoting North Carolina farm products."
Requested by: Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson
TRansfer rural rehabilitation corporation to agricultural finance authority
SECTION 17.2.(a) G.S. 143A‑63 reads as rewritten:
"§ 143A‑63. North Carolina Rural Rehabilitation Corporation; transfer.
The North Carolina Rural
Rehabilitation Corporation, and board of directors, as contained in Chapter 137
of the General Statutes and the laws of this State, is hereby transferred
by a Type II Type I transfer to the North Carolina
Agricultural Finance Authority in the Department of Agriculture and
Consumer Services."
SECTION 17.2.(b) Article 2 of Chapter 137 of the General Statutes is repealed.
SECTION 17.2.(c) No later than January 15, 2002, the North Carolina Agricultural Finance Authority shall report to the Joint Legislative Commission on Governmental Operations, the Appropriations Subcommittees on Natural and Economic Resources in both the Senate and the House of Representatives, and the Fiscal Research Division on the status of the transfer required under this section. This report shall include any statutory changes that are needed to implement the transfer required under this section.
SECTION 17.2.(d) This section is effective when it becomes law.
Requested by: Senators Cunningham, Martin of Pitt, Weinstein, Albertson, Hoyle, Plyler, Odom, Lee; Representatives Fox, Owens, Allen, Gulley, Smith, Easterling, Oldham, Redwine, Thompson
SECTION 17.3. The sum of two hundred thousand dollars ($200,000) appropriated in this act to the Department of Agriculture and Consumer Services for the North Carolina Farmland Preservation Trust Fund established in G.S. 106‑744 shall be used to continue the purposes for which the Fund was established.
Requested by: Senators Martin of Pitt, Weinstein, Albertson, Hoyle, Plyler, Odom, Lee; Representatives Fox, Owens, Allen, Gulley, Smith, Easterling, Oldham, Redwine, Thompson
Farmers markets and agricultural centers/vending facility exemption
SECTION 17.4. G.S. 111‑42(c), as amended by S.L. 2000-41, reads as rewritten:
"(c) "State property or State building" means building and land owned, leased, or otherwise controlled by the State, exclusive of schools, colleges and universities, the North Carolina State Fair, farmers markets and agricultural centers, the Legislative Office Building, and the State Legislative Building."
PART XVIII. DEPARTMENT OF LABOR
Requested by: Senators Martin of Pitt, Weinstein, Albertson, Hoyle, Plyler, Odom, Lee; Representatives Fox, Owens, Allen, Gulley, Smith, Easterling, Oldham, Redwine, Thompson
labor department/ elevator inspection fee receipts
SECTION 18.1. If House Bill 232 of the 2001 General Assembly becomes law, the Department of Labor shall allocate the increased elevator and amusement device inspection fee receipts to support the Elevator and Amusement Device Bureau, and the Director of the Budget shall reduce appropriations to the Department as provided in G.S. 143‑25.
PART XIX. DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
Requested by: Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson
statewide beaver damage control program funds
SECTION 19.1. Of the funds appropriated in this act to the Wildlife Resources Commission, the sum of five hundred thousand dollars ($500,000) for the 2001‑2002 fiscal year and the sum of five hundred thousand dollars ($500,000) for the 2002‑2003 fiscal year shall be used to provide the State share necessary to support the beaver damage control program established in G.S. 113‑291.10, provided the sum of at least twenty‑five thousand dollars ($25,000) in federal funds is available each fiscal year of the biennium to provide the federal share.
Requested by: Senators Martin of Pitt, Weinstein, Albertson, Hoyle, Plyler, Odom, Lee; Representatives Fox, Owens, Allen, Gulley, Smith, Easterling, Oldham, Redwine, Thompson
grassroots science program
SECTION 19.2. Of the funds appropriated in this act to the Department of Environment and Natural Resources for the Grassroots Science Program, the sum of three million one hundred twenty thousand dollars ($3,120,000) for fiscal year 2001‑2002 and the sum of three million one hundred twenty thousand dollars ($3,120,000) for fiscal year 2002‑2003 are allocated as grants‑in‑aid for each fiscal year as follows:
2001‑2002 2002‑2003
Aurora Fossil Museum $58,733 $58,733
Cape Fear Museum $209,018 $209,018
Catawba Science Center $167,833 $167,833
Colburn Gem and Mineral Museum, Inc. $71,336 $71,336
Discovery Place $699,985 $699,985
Granville County Museum Commission,
Inc. ‑ Harris Gallery $61,553 $61,553
The Health Adventure Museum of Pack
Place Education, Arts and
Science Center, Inc. $157,305 $157,305
Imagination Station $94,815 $94,815
Iredell County Children's Museum $58,342 $58,342
Museum of Coastal Carolina $64,141 $64,141
Natural Science Center of Greensboro $250,850 $250,850
North Carolina Museum of Life
and Science $445,843 $445,843
Rocky Mount Children's Museum $88,855 $88,855
Schiele Museum of Natural History $348,433 $348,433
Sci Works Science Center and
Environmental Park of Forsyth County $178,947 $178,947
Western North Carolina Nature Center $164,011 $164,011
Total $3,120,000 $3,120,000
Requested by: Senators Martin of Pitt, Weinstein, Albertson, Hoyle, Plyler, Odom, Lee; Representatives Fox, Owens, Allen, Gulley, Smith, Easterling, Oldham, Redwine, Thompson
Agriculture Cost Share Technical Assistance Program funds
SECTION 19.2A. Of the funds appropriated by this act to the Department of Environment and Natural Resources for the Agriculture Cost Share Program for Nonpoint Source Pollution Control for financial assistance funding, the sum of two hundred forty thousand dollars ($240,000) for the 2001‑2002 fiscal year and the sum of two hundred forty thousand dollars ($240,000) for the 2002‑2003 fiscal year shall be used to support the cost‑share technical assistance in soil and water conservation districts participating in the Agriculture Cost Share Program for Nonpoint Source Pollution Control. This reallocation of funds is permanent, and the transfer of funds as provided by this section shall continue in subsequent fiscal years unless directed otherwise by the General Assembly.
Requested by: Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson
terms for members of the North Carolina Parks and recreation authority
SECTION 19.3.(a) G.S. 143B‑313.2(b) reads as rewritten:
"(b) Terms. – Members
shall serve two-year termsstaggered terms of office of three years.
Members shall serve no more than two full two-year termsconsecutive
three-year terms. After serving two consecutive three-year terms, a member is
not eligible for appointment to the Authority for at least one year after the
expiration date of that member's most recent term. Upon the expiration of a
two-year three-year term, a member may continue to serve until a
successor is appointed and duly qualified as provided by G.S. 128‑7. The
term of members appointed under odd-numbered subdivisions of subsection (a) of
this section shall expire on 30 June of odd-numbered years. The term of members
appointed under even-numbered subdivisions of subsection (a) of this section
shall expire on 30 June of even-numbered years.The terms of members
appointed under subdivision (1), (5), (7), or (9) of subsection (a) of this
section shall expire on July 1 of years that are evenly divisible by three. The
terms of members appointed under subdivision (2), (4), (8), or (11) of
subsection (a) of this section shall expire on July 1 of years that follow by
one year those years that are evenly divisible by three. The terms of members
appointed under subdivision (3), (6), or (10) of subsection (a) of this section
shall expire on July 1 of years that precede by one year those years that are
evenly divisible by three."
SECTION 19.3.(b) In order to alter the length of the staggered terms from two years to three years for the North Carolina Parks and Recreation Authority and to provide for an orderly transition in membership of the Authority as specified in G.S. 143B‑313.2, as amended by subsection (a) of this section, notwithstanding G.S. 143B‑313.2(b), as amended by subsection (a) of this section, the following apply:
(1) John D. Runkle shall serve in the position established by G.S. 143B‑313.2(a)(1) until July 1, 2001.
(2) Wendell Begley shall serve in the position established by G.S. 143B‑313.2(a)(2) until July 1, 2002.
(3) Jonathon B. Howes shall serve in the position established by G.S. 143B‑313.2(a)(3) until July 1, 2003.
(4) Ron Kincaid shall serve in the position established by G.S. 143B‑313.2(a)(4) until July 1, 2002.
(5) Russell Robinson III shall serve in the position established by G.S. 143B‑313.2(a)(5) until July 1, 2001.
(6) Roy Alexander shall serve in the position established by G.S. 143B‑313.2(a)(6) until July 1, 2003.
(7) Kenneth Sadler shall serve in the position established by G.S. 143B‑313.2(a)(7) until July 1, 2001.
(8) Leslie Anderson shall serve in the position established by G.S. 143B‑313.2(a)(8) until July 1, 2002.
(9) Troy Boyd shall serve in the position established by G.S. 143B‑313.2(a)(9) until July 1, 2001.
(10) Harriet L. Farrior shall serve in the position established by G.S. 143B‑313.2(a)(10) until July 1, 2003.
(11) Eddie Holbrook shall serve in the position established by G.S. 143B‑313.2(a)(11) until July 1, 2002.
Requested by: Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson
receipts for NC Zoological park admission fee increase to be used for marketing purposes
SECTION 19.4. Subject to the approval of the Secretary of Environment and Natural Resources, up to four hundred thousand dollars ($400,000) of the receipts from the increase in admission fees to the North Carolina Zoological Park for the 2001‑2002 fiscal year and up to four hundred thousand dollars ($400,000) of those receipts for the 2002‑2003 fiscal year may be used for marketing activities related to promoting the North Carolina Zoological Park.
Requested by: Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson
North carolina water quality workgroup initiative/rivernet monitoring system pilot program/research funds
SECTION 19.5. Article 21 of Chapter 143 of the General Statutes is amended by adding a new section to read:
"§ 143-215.8D. North Carolina Water Quality Workgroup; Rivernet.
(a) The Department of Environment and Natural Resources and North Carolina State University shall jointly establish the North Carolina Water Quality Workgroup. The Workgroup shall work collaboratively with the appropriate divisions of the Department of Environment and Natural Resources and North Carolina State University, the Scientific Advisory Council on Water Resources and Coastal Fisheries Management, the Environmental Management Commission, and the Environmental Review Commission to identify the scientific and State agency databases that can be used to formulate public policy regarding the State's water quality, evaluate those databases to determine the information gaps in those databases, and establish the priorities for obtaining the information lacking in those databases. The Workgroup shall have the following duties:
(1) To address specifically the ongoing need of evaluation, synthesis, and presentation of current scientific knowledge that can be used to formulate public policy on water quality issues.
(2) To identify knowledge gaps in the current understanding of water quality problems and fill these gaps with appropriate research projects.
(3) To maintain a web-based water quality data distribution site.
(4) To organize and evaluate existing scientific and State agency water quality databases.
(5) To prioritize recognized knowledge gaps in water quality issues for immediate funding.
(b) The North Carolina Water Quality Workgroup shall be composed of no more than 15 members. Those members shall be jointly appointed by the Chancellor of North Carolina State University and the Secretary of Environment and Natural Resources. Any person appointed as a member of the Workgroup shall be knowledgeable in one of the following areas:
(1) Water Quality Assessment, Water Quality Monitoring, and Water Quality Permitting.
(2) Nutrient Management.
(3) Water Pollution Control.
(4) Waste Management.
(5) Groundwater Resources.
(6) Stream Hydrology.
(7) Aquatic Biology.
(8) Environmental Education and Web-Based Data Dissemination.
(c) North Carolina State University shall provide meeting facilities for the North Carolina Water Quality Workgroup as requested by the Chair.
(d) The members of the North Carolina Water Quality Workgroup shall elect a Chair. The Chair shall call meetings of the Workgroup and set the meeting agenda.
(e) The Chair of the North Carolina Water Quality Workgroup shall report each year by January 30 to the Scientific Advisory Council on Water Resources and Coastal Fisheries Management, to the Environmental Review Commission, to the Cochairs of the House of Representatives and Senate Appropriations Subcommittees on Natural and Economic Resources, and to the Chancellor of North Carolina State University or the Chancellor's designee on the previous year's activities, findings, and recommendations of the North Carolina Water Quality Workgroup.
(f) The North Carolina Water Quality Workgroup shall develop a water quality monitoring system to be known as Rivernet that effectively uses the combined resources of North Carolina State University and State agencies. The Rivernet system shall be designed to implement advances in monitoring technology and information management systems with web-based data dissemination in the waters that are impaired based on the criteria of the State's basinwide water quality management plans. Water quality and nutrient parameters shall be continuously monitored at each station, and the data shall be sent back to a centralized computer server.
The Rivernet system shall be coordinated with related data collection and monitoring activities of the Department of Environment and Natural Resources, the Water Resources Research Institute, the North Carolina Water Quality Workgroup, and other research efforts pursued by academic institutions or State government entities. If the North Carolina Water Quality Workgroup chooses to employ a technology for which there are testing procedure guidelines promulgated by the United States Environmental Protection Agency, the American Public Health Association, the American Water Works Association, or the Water Environment Federation then the testing procedures shall comply with the appropriate guidelines. If the North Carolina Water Quality Workgroup chooses to employ a technology for which there are no testing procedure guidelines promulgated by any of the groups cited in this subsection, then the North Carolina Water Quality Workgroup may establish testing procedure guidelines.
The Rivernet system shall also have the capabilities to trigger alarms and notify the appropriate member of the Workgroup when monitoring stations exceed defined limits indicating a spill or a significant water quality or nutrient measurement event, which then can be comprehensively analyzed."
Requested by: Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson
continue one‑stop permit assistance pilot program
SECTION 19.6.(a) The Department of Environment and Natural Resources shall continue the one‑stop environmental permit application assistance and tracking system pilot project established under Section 13.7 of S.L. 2000‑67 during the 2001‑2003 fiscal biennium. It is the intent of the General Assembly that the Department of Environment and Natural Resources expand this pilot program to a statewide program effective in all of the Department's regional offices if the resources are available to do so during the 2001‑2003 fiscal biennium. The provisions of Section 13.7(a) through (d) of S.L. 2000‑67 apply to the pilot program under this section.
SECTION 19.6.(b) The Department of Environment and Natural Resources shall report to the Appropriations Subcommittees on Natural and Economic Resources in both the Senate and the House of Representatives, the Fiscal Research Division, and the Environmental Review Commission no later than April 1, 2002, and again no later than April 1, 2003, regarding the results of the pilot project continued under this section. This report shall include the number of environmental permits in the pilot project that took more than 90 days to issue or deny; the types of permits those were; the reasons for the extended processing time of those permits; how the time within which the permit was actually issued or denied compared with the projected time frame provided to the applicant by the Department; based on the data gathered in the pilot project, any recommendations regarding what the permit time frames should be for all major permits issued by the Department; and to what extent, if any, the program has been expanded to a statewide program under this section.
SECTION 19.6.(c) The Department of Environment and Natural Resources may adopt temporary rules to implement this section.
Requested by: Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson
Division of Radiation Protection Self‑Sufficiency Plan
SECTION 19.7. The Department of Environment and Natural Resources shall develop a plan to make the Division of Radiation Protection of the Department of Environment and Natural Resources self‑supporting within two years. The Department of Environment and Natural Resources shall report the details of this plan to the Appropriations Subcommittees on Natural and Economic Resources in both the Senate and the House of Representatives no later than January 15, 2002.
Requested by: Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson
DENR to Study feasibility of Transferring Sedimentation Program to Local Governments
SECTION 19.8. The Department of Environment and Natural Resources shall study the feasibility of transferring the program within the Department of Environment and Natural Resources under the Sedimentation Pollution Control Act of 1973, Article 4 of Chapter 113A of the General Statutes, to local governments. The Department of Environment and Natural Resources shall consider the economic impact that the proposed transfer would have on local governments, any savings that would be generated for the State by the proposed transfer, and any statutory changes that would be needed to implement such a transfer. The Department of Environment and Natural Resources shall report its findings and recommendations, including legislative proposals, to the Appropriations Subcommittees on Natural and Economic Resources in both the Senate and the House of Representatives no later than April 1, 2002.
Requested by: Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson
Submerged Lands Program/Secretary designate program manager
SECTION 19.9. The Secretary of Environment and Natural Resources shall designate from existing staff within the Department of Environment and Natural Resources a staff position to be responsible for managing the Submerged Lands Program. By November 1, 2001, the Secretary shall report to both the Senate and House of Representatives Cochairs of the Appropriations Subcommittees on Natural and Economic Resources what position will manage the Program.
Requested by: Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson
DENR RECLASSIFICATION OF Senior Field Officer Positions REPORT
SECTION 19.10. The Department of Environment and Natural Resources shall report to the Senate and House of Representatives Cochairs of the full Appropriations Committee, and to the Senate and House of Representatives Cochairs of the Natural and Economic Resources Appropriations Subcommittees by January 1, 2002, on the Department’s reclassification of its regional office managers as directed by Section 26.12 of S.L. 1995‑324. The report shall include the following: the location and title of the four remaining positions, a description of the duties and responsibilities assigned to each position, a description of the day‑to‑day activities of each of the positions, an explanation of the purposes each of the positions serve, an explanation of how the positions benefit the Department, and a description of the role that the positions play in each of the respective communities and regions in which the positions are located.
Requested by: Senators Martin of Pitt, Weinstein, Albertson, Hoyle, Plyler, Odom, Lee; Representatives Fox, Owens, Allen, Gulley, Smith, Easterling, Oldham, Redwine, Thompson
DENR Study of Environmental Permitting Process
SECTION 19.11.(a) The Department of Environment and Natural Resources shall study the permitting process in the Division of Water Quality, the Division of Coastal Management as it relates to CAMA permits, and the Division of Land Resources as it relates to the sedimentation and erosion control plans. The study shall at a minimum include the following:
(1) A description of how the permitting process currently works.
(2) The number and types of permits issued by each of these Divisions.
(3) The time frame within which each of the types of permits is issued.
(4) The adequacy of existing staff levels to complete the issuance of permits in a timely manner.
(5) Whether duplication in the permitting process exists between the regional office and the central office staff.
(6) Efficiencies to be gained from delegation of authority to regional offices.
(7) Efficiencies to be gained from issuing more general permits.
(8) The amount of revenue generated by the permits and retained as departmental receipts.
(9) Any other information or issue deemed relevant by the Fiscal Research Division to provide an accurate analysis of the issues.
SECTION 19.11.(b) In conducting this study, the Department shall record its tracking of the permits and the statistical data regarding those permits in a format that is easily accessible and usable for fiscal analysis by the Fiscal Research Division.
SECTION 19.11.(c) The Department shall make a report with its findings and recommendations to the Senate and House of Representatives Cochairs of the full Appropriations Committee and to the Senate and House of Representatives Cochairs of the Natural and Economic Resources Appropriations Subcommittees, on ways to improve, expedite, or simplify the permitting process no later than March 10, 2002.
Requested by: Senators Martin of Pitt, Weinstein, Albertson, Hoyle, Plyler, Odom, Lee; Representatives Fox, Owens, Allen, Gulley, Smith, Baker, Easterling, Oldham, Redwine, Thompson
REALLOCATE TOWN FORK CREEK FUNDS
"(a) The funds placed in
a reserve account in the Department of Environment, Health, and Natural
Resources pursuant to Section 26.3(c) of Chapter 507 of the 1995 Session Laws
shall not revert until June 30, 2001. 2003. Those funds are
reallocated as follows:
(1) Five hundred four
thousand five hundred sixty forty-one thousand six hundred eighty
dollars ($504,560) ($541,680) to the Stokes County Water and
Sewer Authority, Inc., for the Germanton Water Project.
(2) Nine hundred thirty
thousand six hundred eighty dollars ($930,680) Eight hundred ninety-three
thousand five hundred sixty dollars ($893,560) to the Stokes County Water
and Sewer Authority, Inc., for the Walnut Cove/Industrial Site Connection
Project. Any funds under this subdivision not necessary for this project are
reallocated to the project listed under subdivision (3) of this subsection upon
the written finding of the Stokes County Water and Sewer Authority, Inc.
(3) Eighty thousand dollars ($80,000) to the Stokes County Water and Sewer Authority, Inc., for the Dan River Project.
(4) Thirty thousand dollars ($30,000) to the Department of Environment, Health, and Natural Resources for the Limestone Creek small watershed project in Duplin County.
(5) Three hundred forty thousand six hundred forty dollars ($340,640) to the Department of Environment, Health, and Natural Resources for the Deep Creek small watershed project in Yadkin County."
SECTION 19.12.(b) This section becomes effective June 30, 2001.
Requested by: Senators Martin of Pitt, Weinstein, Albertson, Hoyle, Plyler, Odom, Lee; Representatives Fox, Owens, Allen, Gulley, Smith, Warwick, Easterling, Oldham, Redwine, Thompson
FAIR GEOGRAPHIC REPRESENTATION IN APPOINTMENTS TO THE ENVIRONMENTAL MANAGEMENT COMMISSION
SECTION 19.13.(a) G.S. 143B‑282 is amended by adding a new subsection to read:
"(e) In appointing the members of the Commission, the appointing authorities shall make every effort to ensure fair geographic representation of the Commission."
Requested by: Senators Martin of Pitt, Weinstein, Albertson, Hoyle, Plyler, Odom, Lee; Representatives Fox, Owens, Allen, Gulley, Smith, Easterling, Oldham, Redwine, Thompson
DENR POSITION FOR SCRAP TIRE PROGRAM
SECTION 19.14. Notwithstanding the provisions of G.S. 130A-309.63, the Department of Environment and Natural Resources may use funds in the Scrap Tire Disposal Account that, pursuant to G.S. 130A-309.63(d), are to be used for the cleanup of scrap tire collection sites, to maintain and support a position for the 2001-2002 fiscal year and for the 2002-2003 fiscal year to provide regulatory assistance to local governments to develop programs to prevent scrap tires from outside the State from being presented for free disposal and to complete the cleanup of nuisance tire collection sites.
PART XX. DEPARTMENT OF COMMERCE
Requested by: Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson
SECTION 20.1. Funds appropriated in this act to the Department of Commerce 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 seven thousand five hundred dollars ($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 three thousand five hundred dollars ($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 three thousand five hundred dollars ($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: Senators Martin of Pitt, Weinstein, Albertson, Hoyle, Plyler, Odom, Lee; Representatives Fox, Owens, Allen, Gulley, Smith, Easterling, Oldham, Redwine, Thompson
WANCHESE SEAFOOD INDUSTRIAL PARK FUNDS/OREGON INLET FUNDS
SECTION 20.2.(a) Of the funds appropriated in this act to the Department of Commerce for the Wanchese Seafood Industrial Park, the sum of one hundred twenty‑seven thousand eight hundred seventy dollars ($127,870) for the 2001‑2002 fiscal year and the sum of one hundred twenty‑seven thousand eight hundred seventy dollars ($127,870) for the 2002‑2003 fiscal year may be expended by the North Carolina Seafood Industrial Park Authority for operations, maintenance, repair, and capital improvements in accordance with Article 23C of Chapter 113 of the General Statutes, in addition to funds available to the Authority for these purposes.
SECTION 20.2.(b) Funds appropriated to the Department of Commerce for the 2000‑2001 fiscal year for the Oregon Inlet Project that are unexpended and unencumbered as of June 30, 2001, shall not revert to the General Fund on June 30, 2001, but shall remain available to the Department for legal costs associated with the Project. This subsection becomes effective June 30, 2001.
Requested by: Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson
INDUSTRIAL RECRUITMENT COMPETITIVE FUND
SECTION 20.3.(a) Funds appropriated in this act to the Department of Commerce for the Industrial Recruitment Competitive Fund shall be used to continue the Fund. The purpose of the Fund is to provide financial assistance to those businesses or industries deemed by the Governor to be vital to a healthy and growing State economy and that are making significant efforts to establish or expand in North Carolina. Moneys allocated from the Fund shall be used for the following purposes:
(1) Installation or purchase of equipment;
(2) Structural repairs, improvements, or renovations of existing buildings to be used for expansion; and
(3) Construction of or improvements to new or existing water, sewer, gas or electric utility distribution lines, or equipment for existing buildings.
Moneys may also be used for construction of or improvements to new or existing water, sewer, gas or electric utility distribution lines, or equipment to serve new or proposed industrial buildings used for manufacturing and industrial operations. The Governor shall adopt guidelines and procedures for the commitment of moneys from the Fund.
SECTION 20.3.(b) The Department of Commerce shall report on or before January 1, 2002, and quarterly thereafter to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division on the commitment, allocation, and use of funds allocated from the Industrial Recruitment Competitive Fund.
Requested by: Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson
ABOLISH CENTER FOR ENTREPRENEURSHIP AND TECHNOLOGY
SECTION 20.4.(a) Effective July 1, 2001, the Center for Entrepreneurship and Technology (hereinafter Center) in the Department of Commerce (hereinafter Department) is abolished.
SECTION 20.4.(b) The Department shall not carryforward any unencumbered State funds for the Center to the 2001‑2002 fiscal year. This subsection becomes effective June 30, 2001.
Requested by: Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson
COMMERCE STUDY/ Consolidate BUSINESS AND INDUSTRY dIVISION regional offices AND regional ECONOMIC DEVELOPMENT COMMISSIONs
SECTION 20.5. The Department of Commerce (hereinafter Department) shall study the feasibility of consolidating each of the Business and Industry Division regional offices (hereinafter B&I) with a Regional Economic Development Commission (hereinafter Commission) office. In considering whether consolidation is feasible and would better advance the goals of both the B&I and the Commissions, the Department shall do at least the following:
(1) Evaluate the degree to which existing shared offices in Asheville, Edenton, Greensboro, and Research Triangle Park differ in organization, budget, and performance from the B&I offices in Charlotte, Greenville, and Fayetteville that do not share office space with Commissions.
(2) Evaluate the extent to which B&I staff responsibilities in each B&I office duplicate those performed by the Commission staff in their region regardless of whether the offices are shared or separate.
(3) Evaluate the extent to which existing B&I offices in Lenoir and Bryson City add value cost‑effectively to the service provided by the Asheville office. In particular, the Department shall consider how the same level of service might be provided if the Lenoir and Bryson City offices were eliminated or merged into the Asheville office.
(4) Estimate any costs that would result from closing B&I offices in Charlotte, Greenville, and Fayetteville and consolidating them with Commissions in Charlotte, Kinston, and Elizabethtown, respectively. The Department shall also estimate any costs that would result from closing B&I offices in Lenoir and Bryson City and consolidating them with the Asheville office.
(5) Identify whether the actions described in subdivision (4) of this section would produce any net savings and, if affirmative, identify the sources of the savings. The Department shall document whether all current B&I regional staff would remain essential to program function if the closings and consolidations described in subdivision (4) of this section were carried out.
The Department shall report its findings and recommendations, including any estimates of efficiencies and cost savings that may be produced by consolidating the Charlotte, Greenville, and Fayetteville B&I regional offices with Commissions and consolidating the Lenoir and Bryson City offices with the existing shared office in Asheville, to the House of Representatives and Senate Appropriations Subcommittees on Natural and Economic Resources by January 15, 2002.
Requested by: Senators Martin of Pitt, Weinstein, Albertson, Hoyle, Plyler, Odom, Lee; Representatives Fox, Owens, Allen, Gulley, Smith, Easterling, Oldham, Redwine, Thompson
WORKER TRAINING TRUST FUND APPROPRIATIONS
(1) Two million one hundred sixty‑six thousand forty‑seven dollars ($2,166,047) for the 2001‑2002 fiscal year to the Department of Commerce, Division of Employment and Training, for the Employment and Training Grant Program;
(2) Nine hundred forty‑one thousand seven hundred sixty dollars ($941,760) for the 2001‑2002 fiscal year to the Department of Labor for customized training of the unemployed and the working poor for specific jobs needed by employers through the Department's Bureau for Training Initiatives;
(3) One million six hundred forty‑four thousand three hundred twelve dollars ($1,644,312) for the 2001‑2002 fiscal year to the Community Colleges System Office to continue the Focused Industrial Training Program;
(4) Two hundred eleven thousand eight hundred ninety‑six dollars ($211,896) for the 2001‑2002 fiscal year to the Employment Security Commission for the State Occupational Information Coordinating Committee to develop and operate an interagency system to track former participants in State education and training programs;
(5) Three hundred seventy‑six thousand seven hundred four dollars ($376,704) for the 2001‑2002 fiscal year to the Community Colleges System Office for a training program in entrepreneurial skills to be operated by North Carolina REAL Enterprises;
(6) Fifty‑six thousand five hundred six dollars ($56,506) for the 2001‑2002 fiscal year to the Employment Security Commission to maintain compliance with Chapter 96 of the General Statutes, which directs the Commission to employ the Common Follow‑Up Management Information System to evaluate the effectiveness of the State's job training, education, and placement programs; and
(7) Nine hundred forty‑one thousand seven hundred sixty dollars ($941,760) for the 2001‑2002 fiscal year to the Department of Labor to continue the Apprenticeship Program.
Requested by: Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson
SECTION 20.7.(a) The North Carolina Biotechnology Center shall recapture funds spent in support of successful research and development efforts in the for‑profit private sector.
SECTION 20.7.(b) The North Carolina Biotechnology Center shall provide funding for biotechnology, biomedical, and related bioscience applications under its Business and Science Technology Programs.
SECTION 20.7.(c) The North Carolina Biotechnology Center shall:
(1) By January 15, 2002, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division the following information:
a. State fiscal year 2000‑2001 program activities, objectives, and accomplishments;
b. State fiscal year 2000‑2001 itemized expenditures and fund sources;
c. State fiscal year 2001‑2002 planned activities, objectives, and accomplishments including actual results through December 31, 2001; and
d. State fiscal year 2001‑2002 estimated itemized expenditures and fund sources including actual expenditures and fund sources through December 31, 2001;
(2) By January 15, 2003, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division the following information:
a. State fiscal year 2001‑2002 program activities, objectives, and accomplishments;
b. State fiscal year 2001‑2002 itemized expenditures and fund sources;
c. State fiscal year 2002‑2003 planned activities, objectives, and accomplishments including actual results through December 31, 2002; and
d. State fiscal year 2002‑2003 estimated itemized expenditures and fund sources including actual expenditures and fund sources through December 31, 2002; and
(3) Provide to the Fiscal Research Division a copy of the organization's annual audited financial statement within 30 days of issuance of the statement.
SECTION 20.7.(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: Senators Martin of Pitt, Weinstein, Albertson, Hoyle, Plyler, Odom, Lee; Representatives Fox, Owens, Allen, Gulley, Smith, Alexander, Insko, Easterling, Oldham, Redwine, Thompson
Biotechnology Center/Technological development authority, Inc., profit sharing with state
SECTION 20.8.(a) Prior to receiving any General Fund disbursements for the 2001‑2003 biennium, the North Carolina Biotechnology Center (hereinafter Center) and the North Carolina Technological Development Authority, Inc., (hereinafter Authority) must each enter into a memorandum of understanding with the Attorney General's Office in which they commit to do all of the following:
(1) Work with the Attorney General's Office to craft a legal agreement that specifies the manner in which any profits from investments made with State funds shall be shared with the State.
(2) Negotiate the terms of the legal agreement in good faith.
(3) Submit the proposed legal agreement to the Joint Legislative Commission on Governmental Operations for review by January 15, 2002.
(4) Execute the legal agreement no later than 30 days after it is presented to the Joint Legislative Commission on Governmental Operations.
SECTION 20.8.(b) If the Center or Authority fails to execute the legal agreement as provided in subdivision (a)(4) of this section, all disbursements to the Center or Authority shall be suspended until the legal agreement has been executed.
SECTION 20.8.(c) The Attorney General's Office shall consult with the Fiscal Research Division in crafting the memorandum of understanding and the legal agreement described in subsection (a) of this section.
SECTION 20.8.(d) The Center and the Authority shall submit a copy of the memorandum of understanding to the Fiscal Research Division prior to receiving any General Fund disbursements for the 2001‑2003 biennium and shall submit a copy of the proposed legal agreement to the Division by January 15, 2002.
Requested by: Senators Martin of Pitt, Weinstein, Albertson, Hoyle, Plyler, Odom, Lee; Representatives Fox, Owens, Allen, Gulley, Smith, Easterling, Oldham, Redwine, Thompson
NORTH CAROLINA TECHNOLOGICAL DEVELOPMENT AUTHORITY, INC./yadkin/pee Dee Lakes projects, inc./north carolina real enterprises/World trade center north carolina REPORTING REQUIREMENTS
SECTION 20.9.(a) The North Carolina Technological Development Authority, Inc., (TDA), Yadkin/Pee Dee Lakes Project, Inc., North Carolina REAL Enterprises, and World Trade Center North Carolina shall do the following:
(1) By January 15, 2002, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division the following information:
a. State fiscal year 2001‑2002 program activities, objectives, and accomplishments;
b. State fiscal year 2001‑2002 itemized expenditures and fund sources;
c. State fiscal year 2002‑2003 planned activities, objectives, and accomplishments including actual results through December 31, 2001; and
d. State fiscal year 2002‑2003 estimated itemized expenditures and fund sources including actual expenditures and fund sources through December 31, 2001.
(2) Provide to the Fiscal Research Division a copy of the organizations' annual audited financial statement within 30 days of issuance of the statement.
Requested by: Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson
REGIONAL ECONOMIC DEVELOPMENT COMMISSION ALLOCATIONS
SECTION 20.10.(a) Funds appropriated in this act to the Department of Commerce for regional economic development commissions shall be allocated to the following commissions in accordance with subsection (b) of this section: Western North Carolina Regional Economic Development Commission, Research Triangle Regional Commission, Southeastern North Carolina Regional Economic Development Commission, Piedmont Triad Partnership, Northeastern North Carolina Regional Economic Development Commission, Global TransPark Development Commission, and Carolinas Partnership, Inc.
SECTION 20.10.(b) Funds appropriated pursuant to subsection (a) of this section shall be allocated to each regional economic development commission as follows:
(1) First, the Department shall establish each commission's allocation by determining the sum of allocations to each county that is a member of that commission. Each county's allocation shall be determined by dividing the county's enterprise factor by the sum of the enterprise factors for eligible counties and multiplying the resulting percentage by the amount of the appropriation. As used in this subdivision, the term "enterprise factor" means a county's enterprise factor as calculated under G.S. 105‑129.3;
(2) Next, the Department shall subtract from funds allocated to the Global TransPark Development Zone the sum of two hundred four thousand four hundred thirty‑three dollars ($204,433) in each fiscal year, which sum represents the interest earnings in each fiscal year on the estimated balance of seven million five hundred thousand dollars ($7,500,000) appropriated to the Global TransPark Development Zone in Section 6 of Chapter 561 of the 1993 Session Laws; and
(3) Next, the Department shall redistribute the sum of two hundred four thousand four hundred thirty‑three dollars ($204,433) in each fiscal year to the seven regional economic development commissions named in subsection (a) of this section. Each commission's share of this redistribution shall be determined according to the enterprise factor formula set out in subdivision (1) of this subsection. This redistribution shall be in addition to each commission's allocation determined under subdivision (1) of this subsection.
Requested by: Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson
SECTION 20.11.(a) Each regional economic development commission receiving a grant‑in‑aid from the Department of Commerce shall:
(1) By January 15, 2002, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations, the Fiscal Research Division, and the Department of Commerce the following information:
a. State fiscal year 2000‑2001 program activities, objectives, and accomplishments;
b. State fiscal year 2000‑2001 itemized expenditures and fund sources;
c. State fiscal year 2001‑2002 planned activities, objectives, and accomplishments as specified in subdivisions (b)(1) through (b)(6) of this section including actual results through December 31, 2001;
d. State fiscal year 2001‑2002 estimated itemized expenditures and fund sources including actual expenditures and fund sources through December 31, 2001.
(2) By January 15, 2003, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations, the Fiscal Research Division, and the Department of Commerce the following information:
a. State fiscal year 2001‑2002 program activities, objectives, and accomplishments;
b. State fiscal year 2001‑2002 itemized expenditures and fund sources;
c. State fiscal year 2002‑2003 planned activities, objectives, and accomplishments as specified in subdivisions (b)(1) through (b)(6) of this section including actual results through December 31, 2002;
d. State fiscal year 2002‑2003 estimated itemized expenditures and fund sources including actual expenditures and fund sources through December 31, 2002.
(3) Provide to the Fiscal Research Division and the Department of Commerce a copy of its annual audited financial statement within 30 days of issuance of the statement.
SECTION 20.11.(b) Each regional economic development commission receiving a grant‑in‑aid from the Department of Commerce in each fiscal year of the 2001‑2003 biennium shall by January 15 of each fiscal year report to the Department of Commerce the following information for the most recently completed fiscal year:
(1) The number of and description of marketing outreach events including trade shows, recruitment missions, and related activities;
(2) The number of jobs saved;
(3) The amount of investment and number of jobs created by the direct efforts of a commission;
(4) Initiatives undertaken to establish certified sites and shell buildings;
(5) The number of referrals or leads handled that were generated by the Department of Commerce;
(6) The number and listing of available sites and buildings within the region served by a commission;
(7) A listing of major accomplishments.
Requested by: Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson
SECTION 20.12.(a) Of the funds appropriated in this act to the Department of Commerce, nine hundred thirty‑five thousand dollars ($935,000) for the 2001‑2002 fiscal year and nine hundred thirty‑five thousand dollars ($935,000) for the 2002‑2003 fiscal year shall only be used as provided by this section. Each regional council of government or lead regional organization is allocated up to fifty‑five thousand dollars ($55,000) for each fiscal year, with the actual amount calculated as provided in subsection (b) of this section.
SECTION 20.12.(b) The funds shall be allocated as follows: A share of the maximum fifty‑five thousand dollars ($55,000) each fiscal year shall be allocated to each county and smaller city, based on the most recent annual estimate of the Office of State Planning 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 Commerce 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.
SECTION 20.12.(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.
SECTION 20.12.(d) Funds appropriated by this section shall not be used for payment of dues or assessments by the member governments and shall not supplant funds appropriated by the member governments.
SECTION 20.12.(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.
SECTION 20.12.(f) Each council of government or lead regional organization shall do the following:
(1) By January 15, 2002, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division the following information:
a. State fiscal year 2000‑2001 program activities, objectives, and accomplishments;
b. State fiscal year 2000‑2001 itemized expenditures and fund sources;
c. State fiscal year 2001‑2002 planned activities, objectives, and accomplishments, including actual results through December 31, 2001; and
d. State fiscal year 2001‑2002 estimated itemized expenditures and fund sources, including actual expenditures and fund sources through December 31, 2001;
(2) By January 15, 2003, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division the following information:
a. State fiscal year 2001‑2002 program activities, objectives, and accomplishments;
b. State fiscal year 2001‑2002 itemized expenditures and fund sources;
c. State fiscal year 2002‑2003 planned activities, objectives, and accomplishments, including actual results through December 31, 2002; and
d. State fiscal year 2002‑2003 estimated itemized expenditures and fund sources, including actual expenditures and fund sources through December 31, 2002; and
(3) Provide to the Fiscal Research Division a copy of the organization's annual audited financial statement within 30 days of issuance of the statement.
Requested by: Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee, Kerr, Warren; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson
global transpark development commission membership changes
SECTION 20.13.(a) G.S. 158‑35(a) reads as rewritten:
"(a) Commission Membership. – The governing body of the Zone is the Global TransPark Development Commission. The members of the Commission must be residents of the Zone and shall be appointed as follows:
(1) The board of commissioners of each county participating in the Zone shall appoint three voting members, one of whom shall be a minority person as defined in G.S. 143‑128(f)(2) and one of whom may be a member of the board of commissioners.
(2) The Authority Commission
shall appoint at least three but no more than seven voting members. By the
appointment of these members, the Authority Commission shall
ensure that the voting membership of the Commission includes at least seven
women and seven members of a racial minority described in G.S. 143‑128(f)(2).
The Authority Commission shall appoint the fewest number of
members necessary to achieve these minimums.
(3) Four nonvoting members shall be appointed as follows:
a. One appointed by the Chancellor of East Carolina University to represent the University.
b. One appointed by a majority vote of the presidents of the community colleges located in the Zone, to represent the community colleges.
c. One appointed by the chair of the State Ports Authority, to represent the sea ports of the State.
d. One member of the board of directors of the Global TransPark Foundation, Inc., appointed by that board."
SECTION 20.13.(b) G.S. 158‑35(c) reads as rewritten:
"(c) Removal; Vacancies. – A member of the Commission may be removed with or without cause by the appointing body. In addition, a majority of the Commission members may, by majority vote, remove a member of the Commission if that member does not attend at least three-quarters of the regularly scheduled meetings of the Commission during any consecutive 12-month period of service of that member on the Commission, except that absences excused by the Commission due to serious medical or family circumstances shall not be considered. If the Commission votes to remove a member under this subsection, the vacancy shall be filled in the same manner as the original appointment. Appointments to fill vacancies shall be made for the remainder of the unexpired term by the respective appointing authority. All members shall serve until their successors are appointed and qualified, unless removed from office."
Requested by: Senators Martin of Pitt, Weinstein, Albertson, Hoyle, Plyler, Odom, Lee; Representatives Fox, Owens, Allen, Gulley, Smith, Hunter, Easterling, Oldham, Redwine, Thompson
NONPROFIT REPORTING REQUIREMENTS
SECTION 20.14.(a) The N.C. Institute for Minority Economic Development, Inc., Land Loss Prevention Project, North Carolina Coalition of Farm and Rural Families, Inc., North Carolina Minority Support Center, North Carolina Community Development Initiative, Inc., North Carolina Association of Community Development Corporations, Inc., and Partnership for the Sounds, Inc., shall do the following:
(1) By January 15, 2002, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division the following information:
a. State fiscal year 2000‑2001 program activities, objectives, and accomplishments;
b. State fiscal year 2000‑2001 itemized expenditures and fund sources;
c. State fiscal year 2001‑2002 planned activities, objectives, and accomplishments including actual results through December 31, 2001; and
d. State fiscal year 2001‑2002 estimated itemized expenditures and fund sources including actual expenditures and fund sources through December 31, 2001;
(2) By January 15, 2003, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division the following information:
a. State fiscal year 2001‑2002 program activities, objectives, and accomplishments;
b. State fiscal year 2001‑2002 itemized expenditures and fund sources;
c. State fiscal year 2002‑2003 planned activities, objectives, and accomplishments including actual results through December 31, 2002; and
d. State fiscal year 2002‑2003 estimated itemized expenditures and fund sources including actual expenditures and fund sources through December 31, 2002; and
(3) Provide to the Fiscal Research Division a copy of the organization's annual audited financial statement within 30 days of issuance of the statement.
SECTION 20.14.(b) No funds appropriated under this act shall be released to a nonprofit organization listed in subsection (a) of this section until the organization has satisfied the reporting requirement for January 15, 2001. Fourth quarter allotments shall not be released to any nonprofit organization that does not satisfy the reporting requirements for January 15, 2002, or January 15, 2003.
RURAL ECONOMIC DEVELOPMENT CENTER
SECTION 20.15.(a) Of the funds appropriated in this act to the Rural Economic Development Center, Inc., the sum of one million seven hundred eighty‑eight thousand seven hundred forty‑nine dollars ($1,788,749) for the 2001‑2002 fiscal year and the sum of one million seven hundred eighty‑eight thousand seven hundred forty‑nine dollars ($1,788,749) for the 2002‑2003 fiscal year shall be allocated as follows:
2001‑2002 FY 2002‑2003 FY
Research and Demonstration Grants $444,000 $444,000
Technical Assistance and Center
Administration of Research
and Demonstration Grants 444,471 444,471
Center Administration, Oversight,
and Other Programs 437,278 437,278
Administration of Clean Water/
Natural Gas Critical Needs
Bond Act of 1998 199,722 199,722
Additional Administration of Supplemental
Funding Program 138,278 138,278
Administration of Capacity Building
Assistance Program (1998 Bond Act) 125,000 125,000.
SECTION 20.15.(b) 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.
SECTION 20.15.(c) 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 Center for administrative purposes, including salaries and fringe benefits.
SECTION 20.15.(d) For purposes of this section, the term "community development corporation" means a nonprofit corporation:
(1) Chartered pursuant to Chapter 55A of the General Statutes;
(2) Tax‑exempt pursuant to section 501(c)(3) of the Internal Revenue Code of 1986;
(3) Whose primary mission is to develop and improve low‑income communities and neighborhoods through economic and related development;
(4) Whose activities and decisions are initiated, managed, and controlled by the constituents of those local communities; and
(5) 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 of small businesses, affordable housing, and jobs designed to produce positive cash flow and curb blight in the targeted community.
SECTION 20.15.(e) Of the funds appropriated in this act to the Rural Economic Development Center, Inc., the sum of two million nine hundred two thousand dollars ($2,902,000) for the 2001‑2002 fiscal year and the sum of two million nine hundred two thousand dollars ($2,902,000) for the 2002‑2003 fiscal year shall be allocated as follows:
(1) $1,124,000 in each fiscal year for community development grants to support development projects and activities within the State's minority communities. Any community development corporation as defined in this section is eligible to apply for funds. The Rural Economic Development Center, Inc., shall establish performance‑based criteria for determining which community development corporation will receive a grant and the grant amount. The Rural Economic Development Center, Inc., shall allocate these funds as follows:
a. $837,720 in each fiscal year for direct grants to the local community development corporations that have previously received State funds for this purpose to support operations and project activities;
b. $236,280 in each fiscal year for direct grants to local community development corporations that have not previously received State funds; and
c. $50,000 in each fiscal year to the Rural Economic Development Center, Inc., to be used to cover expenses in administering this section.
(2) $234,000 in each fiscal year to the Microenterprise Loan Program to support the loan fund and operations of the Program; and
(3) $1,344,000 in each fiscal year shall be used for a program to provide supplemental funding for matching requirements for projects and activities authorized under this subdivision. The Center shall allocate these funds as follows:
a. $1,094,000 in each fiscal year to make grants to local governments and nonprofit corporations to provide funds necessary to match federal grants or other grants for:
1. Necessary economic development projects and activities in economically distressed areas;
2. Necessary water and sewer projects and activities in economically distressed communities to address health or environmental quality problems except that funds shall not be expended for the repair or replacement of low‑pressure pipe wastewater systems. If a grant is awarded under this sub‑subdivision, then the grant shall be matched on a dollar‑for‑dollar basis in the amount of the grant awarded; or
3. Projects that demonstrate alternative water and waste management processes for local governments. Special consideration should be given to cost‑effectiveness, efficacy, management efficiency, and the ability of the demonstration project to be replicated.
b. $250,000 in each fiscal year to make grants to local governments and nonprofit corporations to provide funds necessary to match federal grants or other grants related to water, sewer, or business development projects.
(4) $200,000 in each fiscal year for the Agricultural Advancement Consortium. These funds shall be placed in a reserve and allocated as follows:
a. $75,000 in each fiscal year for operating expenses associated with the Consortium; and
b. $125,000 in each fiscal year for research initiatives funded by the Consortium.
The Consortium shall facilitate discussions among interested parties and shall develop recommendations to improve the State's economic development through farming and agricultural interests.
The grant recipients in this subsection shall be selected on the basis of need.
SECTION 20.15.(f) For the 2001‑2002 fiscal year only, the Office of State Budget and Management shall reduce the funds appropriated in this act to the Rural Economic Development Center, Inc., by an amount of nine hundred ninety‑nine thousand six hundred ninety‑four dollars ($999,694). The Center shall compensate for this reduction by using available cash balances from the Child Care Loan Fund in the amount of four hundred ninety‑nine thousand six hundred ninety‑four dollars ($499,694) and the amount of five hundred thousand dollars ($500,000) from other cash reserves on hand.
SECTION 20.15.(g) The Rural Economic Development Center, Inc., shall:
(1) By January 15, 2002, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division the following information:
a. State fiscal year 2000‑2001 program activities, objectives, and accomplishments;
b. State fiscal year 2000‑2001 itemized expenditures and fund sources;
c. State fiscal year 2001‑2002 planned activities, objectives, and accomplishments including actual results through December 31, 2001; and
d. State fiscal year 2001‑2002 estimated itemized expenditures and fund sources including actual expenditures and fund sources through December 31, 2001.
(2) By January 15, 2003, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division the following information:
a. State fiscal year 2001‑2002 program activities, objectives, and accomplishments;
b. State fiscal year 2001‑2002 itemized expenditures and fund sources;
c. State fiscal year 2002‑2003 planned activities, objectives, and accomplishments including actual results through December 31, 2002; and
d. State fiscal year 2002‑2003 estimated itemized expenditures and fund sources including actual expenditures and fund sources through December 31, 2002.
(3) Provide to the Fiscal Research Division a copy of each grant recipient's annual audited financial statement within 30 days of issuance of the statement.
Requested by: Senators Martin of Pitt, Weinstein, Albertson, Hoyle, Plyler, Odom, Lee; Representatives Fox, Owens, Allen, Gulley, Smith, Easterling, Oldham, Redwine, Thompson
OPPORTUNITIES INDUSTRIALIZATION CENTER FUNDS
SECTION 20.16.(a) Of the funds appropriated in this act to the Rural Economic Development Center, Inc., the sum of four hundred thousand dollars ($400,000) for the 2001‑2002 fiscal year and the sum of four hundred thousand dollars ($400,000) for the 2002‑2003 fiscal year shall be allocated as follows:
(1) $100,000 in each fiscal year to the Opportunities Industrialization Center of Wilson, Inc., for its ongoing job training programs;
(2) $100,000 in each fiscal year to the Opportunities Industrialization Center, Inc., in Rocky Mount, for its ongoing job training programs;
(3) $100,000 in each fiscal year to the Opportunities Industrialization Centers Kinston and Lenoir County, North Carolina, Inc.; and
(4) $100,000 in each fiscal year to the Opportunities Industrialization Center of Elizabeth City, Inc.
SECTION 20.16.(b) For each of the Opportunities Industrialization Centers receiving funds pursuant to subsection (a) of this section, the Rural Economic Development Center, Inc., shall:
(1) By January 15, 2002, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division the following information:
a. State fiscal year 2000‑2001 program activities, objectives, and accomplishments;
b. State fiscal year 2000‑2001 itemized expenditures and fund sources;
c. State fiscal year 2001‑2002 planned activities, objectives, and accomplishments, including actual results through December 31, 2001; and
d. State fiscal year 2001‑2002 estimated itemized expenditures and fund sources, including actual expenditures and fund sources through December 31, 2001.
(2) By January 15, 2003, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division the following information:
a. State fiscal y