GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2017

H                                                                                                                                                    1

HOUSE BILL 775

Short Title:      UNC Capital Efficiencies.		(Public)
Sponsors:	Representatives Arp and Strickland (Primary Sponsors). For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to:	Appropriations

April 13, 2017

A BILL TO BE ENTITLED

AN ACT related to the university of north carolina system budget requests and capital projects.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 116‑11 reads as rewritten:

"§ 116‑11.  Powers and duties generally.

The powers and duties of the Board of Governors shall include the following:

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(9)       …

b.         Funds for the continuing operation of each constituent institution shall be appropriated directly to the institution. Funds for salary increases for employees exempt from the North Carolina Human Resources Act shall be appropriated to the Board in a lump sum for allocation to the institutions. Funds for the third category in paragraph a of this subdivision shall be appropriated to the Board in a lump sum for allocation to the institutions. The Board shall make allocations among the institutions in accordance with the Board's schedule of priorities and any specifications in the Current Operations Appropriations Act. When both the Board and the Director of the Budget deemdeems it to be in the best interest of the State, funds in the third category may be allocated, in whole or in part, for other items within the list of priorities or for items not included in the list. Provided, nothing herein shall be construed to allow the General Assembly, except as to capital improvements, to refer to particular constituent institutions in any specifications as to priorities in the third category.

c.         The Director of the Budget may, on recommendation of the Board, Unless otherwise provided in Article 1 of Chapter 116 of the General Statutes, the Board may authorize transfer of appropriated funds from one institution to another to provide adjustments for over or under enrollment or may make any other adjustments among institutions that would provide for the orderly and efficient operation of the institutions.

…."

SECTION 2.  G.S. 116‑14 reads as rewritten:

"§ 116‑14.  President and staff.

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(b1)      The President shall receive General Fund appropriations made by the General Assembly for continuing operations of The University of North Carolina that are administered by the President and the President's staff complement established pursuant to G.S. 116‑14(b) in the form of a single sum to Budget Code 16010 of The University of North Carolina in the manner and under the conditions prescribed by G.S. 116‑30.2. The President, with respect to the foregoing appropriations, shall have the same duties and responsibilities that are prescribed by G.S. 116‑30.2 for the Chancellor of a special responsibility constituent institution. The President may establish procedures for transferring funds to and from Budget Code 16010 Budget Code 16010, including, but not limited to, transfers to the constituent institutions for nonrecurring expenditures. The President may identify funds for capital improvement projects and transfer funds for capital improvement projects to and from Budget Code 16010, and the capital improvement projects may be established following the procedures set out in G.S. 143C‑8‑8 and G.S. 143C‑8‑9.

…."

SECTION 3.  G.S. 116‑30.2 reads as rewritten:

"§ 116‑30.2.  Appropriations to special responsibility constituent institutions.

(a)        All General Fund appropriations made by the General Assembly for continuing operations of a special responsibility constituent institution of The University of North Carolina shall be made in the form of a single sum to each budget code of the institution for each year of the fiscal period for which the appropriations are being made. Notwithstanding G.S. 143C‑6‑4 and G.S.120‑76(8), each special responsibility constituent institution may expend monies from the overhead receipts special fund budget code and the General Fund monies so appropriated to it in the manner deemed by the Chancellor to be calculated to maintain and advance the programs and services of the institutions, consistent with the directives and policies of the Board of Governors. Special The President of the University of North Carolina and special responsibility constituent institutions may transfer appropriations between budget codes. These transfers shall be considered certified even if as a result of agreements between special responsibility constituent institutions. The preparation, presentation, and review of General Fund budget requests of special responsibility constituent institutions shall be conducted in the same manner as are requests of other constituent institutions. The quarterly allotment procedure established pursuant to G.S. 143C‑6‑3 shall apply to the General Fund appropriations made for the current operations of each special responsibility constituent institution.institution, and each special responsibility constituent institution shall submit to the Director of the Budget its requests for allotments quarterly. All General Fund monies so appropriated to each special responsibility constituent institution shall be recorded, reported, and audited in the same manner as are General Fund appropriations to other constituent institutions.

(b)        Repealed by Session Laws 2006‑66, s. 9.11(f), effective July 1, 2007."

SECTION 4.  G.S. 143C‑3‑3 reads as rewritten:

"§ 143C‑3‑3.  Budget requests from State agencies in the executive branch.

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(b)        University of North Carolina System Request. – Notwithstanding the requirement in G.S. 116‑11 that the Board of Governors prepare a unified budget request for all of the constituent institutions of The University of North Carolina, budget requests of the University shall be subject to all of the following:

(1)        Repairs and renovations requests, capital fund requests, and information technology requests shall comply with subsections (c), (d), and (e) of this section.

(2)        The University of North Carolina shall not make a capital funds request proposing to construct a new facility, expand the building area (square feet) of an existing facility, or rehabilitate an existing facility to accommodate new or expanded uses unless the University has completed advanced planning through schematic design conceptual planning of the project with funds other than General Fund appropriations. For purposes of this subdivision, "funds other than General Fund appropriations" includes funds carried forward from one fiscal year to another pursuant to G.S. 116‑30.3 and G.S. 116‑30.3B.

…."

SECTION 5.  G.S. 143C‑6‑3 reads as rewritten:

"§ 143C‑6‑3.  Allotments.

To receive the operating funds appropriated to it, a State agency shall submit to the Director, at intervals and in a format prescribed by the Director, a request for an allotment of the amount estimated to be required for the agency's operating costs during the ensuing fiscal period. The University of North Carolina shall submit to the Director requests for allotments at intervals as prescribed in Article 1 of Chapter 116 of the General Statutes. The Director shall approve or modify the allotment requests, and the State Controller shall implement the allotments as approved or modified by the Director."

SECTION 6.  G.S. 143C‑6‑4 reads as rewritten:

"§ 143C‑6‑4.  Budget Adjustments Authorized.

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(g)        Transfers in The University of North Carolina Budget. – Transfers Notwithstanding any provision to the contrary in this section, transfers or changes within the budget of The University of North Carolina may be made as provided in Article 1 of Chapter 116 of the General Statutes.

…."

SECTION 7.  Section 31.14 of S.L. 2015‑241 reads as rewritten:

"AUTHORIZE STATE AGENCIES TO UNDERTAKE SMALL REPAIRS AND RENOVATIONS PROJECTS WITH FUNDS AVAILABLE

"SECTION 31.14.(a)  Notwithstanding G.S. 143C‑8‑7, a State agency may undertake repairs and renovations projects so long as each project satisfies the following requirements:

(1)        Total project costs do not exceed three hundred thousand dollars ($300,000).one million dollars ($1,000,000).

(2)        The project is one of the types set forth in G.S. 143C‑4‑3(b)(1) through (12), regardless of whether the relevant State facilities and related infrastructure are supported from the General Fund.

(3)        The project is paid for with funds available to the agency.

"SECTION 31.14.(b)  Projects undertaken pursuant to this section shall be reported to the Fiscal Research Division on a quarterly basis. A report under this subsection shall include information about all of the following for each project:

(1)        The facility at which the project is being undertaken.

(2)        The nature and scope of the project.

(3)        The source of funds for the project.

(4)        The category of projects set forth in G.S. 143C‑4‑3(b) that the project falls within.

"SECTION 31.14.(c)  General funds contractually obligated for a project shall not revert at the end of the fiscal year but shall remain available to fund the completion of the project."

SECTION 8.  This act is effective when it becomes law.