Bill Summaries: all (2011-2012 Session)

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  • Summary date: Jun 1 2011 - View summary

    Senate committee substitute, reported into the Senate on 5/31/11, makes the following changes to 6th edition. The digest incorporates the amendment adopted by the Senate on 6/1/11.

    PART I. INTRODUCTION AND TITLE OF ACT
    Identical to 6th edition.

    PART II. CURRENT OPERATIONS AND EXPANSION GENERAL FUND

    CURRENT OPERATIONS AND EXPANSION/GENERAL FUND
    SECTION 2.1. Modifies appropriations from the General Fund for the fiscal biennium ending June 30, 2013, as follows.

    Current Operations – General Fund 2011 2012 2012 2013

    EDUCATION

    Community Colleges System Office $ 985,000,000 $ 985,000,000

    Department of Public Instruction 7,464,492,057 7,450,000,000

    University of North Carolina – Board of Governors
    Appalachian State University 145,563,319 145,680,676
    East Carolina University
    Academic Affairs 247,397,807 247,397,807
    Health Affairs 65,196,439 65,196,439
    Elizabeth City State University 38,226,042 38,398,361
    Fayetteville State University 56,925,951 56,925,951
    NC A&T State University 105,355,805 105,794,754
    NC Central University 94,342,683 94,342,683
    NC State University
    Academic Affairs 434,563,241 434,677,423
    Agricultural Research 59,239,461 59,239,461
    Agricultural Extension 43,539,609 43,539,609
    UNC Asheville 42,004,444 42,004,444
    UNC Chapel Hill
    Academic Affairs 309,481,584 312,843,120
    Health Affairs 219,507,009 222,570,732
    AHEC 49,747,851 49,747,851
    UNC Charlotte 216,455,073 217,471,216
    UNC Greensboro 173,180,926 173,180,926
    UNC Pembroke 61,534,005 62,277,254
    UNC School of the Arts 27,796,473 27,796,473
    UNC Wilmington 105,943,181 107,138,757
    Western Carolina University 90,591,556 91,070,460
    Winston Salem State University 76,496,951 76,496,950
    General Administration 38,186,863 27,628,722
    University Institution Programs (375,153,400) (383,808,914)
    Related Educational Programs 85,679,060 115,272,420
    UNC Financial Aid Private Colleges 91,635,664 86,534,065
    NC School of Science & Math 18,937,535 18,937,535
    UNC Hospitals 18,000,000 18,000,000
    Total University of North Carolina –
    Board of Governors $ 2,540,375,132 $ 2,551,672,698

    HEALTH AND HUMAN SERVICES

    Department of Health and Human Services
    Division of Central Management and Support $ 50,177,377 $ 44,577,987
    Division of Aging and Adult Services 37,019,667 37,019,667
    Division of Services for Blind/Deaf/Hard of Hearing 8,389,110 8,372,886
    Division of Child Development 266,102,933 266,102,933
    Division of Health Service Regulation 16,133,031 16,133,031
    Division of Medical Assistance 2,958,388,184 2,907,276,302
    Division of Mental Health,
    Developmental Disabilities, and
    Substance Abuse Services 665,712,232 710,712,232
    NC Health Choice 79,452,317 83,717,865
    Division of Public Health 190,443,245 157,538,834
    Division of Social Services 186,183,068 186,183,068
    Division of Vocational Rehabilitation 37,125,788 37,528,128
    Total Health and Human Services $ 4,495,126,952 $ 4,455,162,933

    NATURAL AND ECONOMIC RESOURCES

    Department of Agriculture and Consumer Services $ 65,460,864 $ 62,198,634

    Department of Commerce
    Commerce 50,852,340 33,250,463
    Commerce State Aid 32,851,025 30,151,984
    NC Biotechnology Center 17,551,710 17,551,710
    Rural Economic Development Center 25,376,729 25,376,729

    Department of Environment and Natural Resources 165,784,887 148,148,105

    DENR Clean Water Management Trust Fund 11,250,000 11,250,000

    Department of Labor 15,836,887 15,836,887

    Wildlife Resources Commission 18,000,000 17,221,179

    JUSTICE AND PUBLIC SAFETY

    Department of Correction $ 1,337,816,346 $ 1,348,410,793

    Department of Crime Control and Public Safety 225,258,795 215,164,518

    Judicial Department 438,920,048 435,141,107
    Judicial Department – Indigent Defense 110,091,526 112,748,733

    Department of Justice 80,704,013 80,864,138

    Department of Juvenile Justice and Delinquency Prevention 135,593,692 131,140,565

    GENERAL GOVERNMENT
    Department of Administration $ 63,607,330 $ 65,511,460

    Department of State Auditor 11,857,574 10,676,035

    Office of State Controller 28,368,957 28,368,957

    Department of Cultural Resources
    Cultural Resources 63,524,857 61,697,001
    Roanoke Island Commission 1,805,236 1,203,491

    State Board of Elections 5,186,603 5,126,603

    General Assembly 53,259,495 50,104,208

    Office of the Governor
    Office of the Governor 4,741,157 4,741,157
    Office of State Budget and Management 5,848,663 5,848,663
    OSBM – Reserve for Special Appropriations 1,940,612 440,612
    Housing Finance Agency 9,673,051 9,673,051

    Department of Insurance
    Insurance 36,393,921 36,393,921
    Insurance – Volunteer Safety Workers' Compensation 2,294,000 2,623,654

    Office of Lieutenant Governor 695,324 695,324

    Office of Administrative Hearings 4,983,871 4,983,871

    Department of Revenue 78,199,538 78,199,538

    Department of Secretary of State 10,654,563 10,654,563

    Department of State Treasurer
    State Treasurer 6,657,031 6,621,750
    State Treasurer –
    Retirement for Fire and Rescue Squad Workers 17,812,114 17,812,114

    RESERVES, ADJUSTMENTS, AND DEBT SERVICE

    Contingency and Emergency Fund $ 5,000,000 $ 5,000,000

    State Retirement System Contribution 248,100,000 336,000,000

    Judicial Retirement System Contribution 6,800,000 7,800,000

    Firemen's & Rescue Squad Workers' Pension Fund 4,318,042 5,366,928

    State Health Plan 7,119,541 102,151,104

    Information Technology Fund 4,458,142 6,158,142

    Reserve for Job Development Investment Grants (JDIG) 15,400,000 27,400,000

    Continuation Review Reserve 0 35,576,758

    Comprehensive Review of Compensation Plans 2,000,000 0

    Compensation Adjustment and Performance Pay Reserve 0 121,105,840
    Severance Expenditure Reserve 69,000,000 0

    Automated Fraud Detection Development 1,000,000 7,000,000

    Controller – Fraud Detection Development 500,000 500,000

    Debt Service
    General Debt Service 688,957,188 759,984,974
    Federal Reimbursement 1,616,380 1,616,380

    TOTAL CURRENT OPERATIONS –
    GENERAL FUND $ 19,678,116,193 $ 19,943,327,275

    GENERAL FUND AVAILABILITY STATEMENT
    SECTION 2.2.(a) Modifies the General Fund availability used in developing the 2011-13 biennial budget as follows.
    FY 2011 2012 FY 2012 2013
    Unappropriated Balance Remaining $ 0 $ 13,980,015
    Ending Unreserved Fund Balance for FY 2009 2010 236,902,394 0
    Anticipated Reversions for FY 2010 2011 537,740,799 0
    Anticipated Over collections from FY 2010 2011 180,800,000 0
    Repayment of Medicaid Receipts in FY 2010 2011 (125,000,000) 0

    Statutory Earmarks:
    Savings Reserve Account (185,000,000) 0
    Repairs and Renovations Reserve Account (125,000,000) 0

    Beginning Unreserved Fund Balance $ 520,443,193 $ 13,980,015

    Revenues Based on Existing Tax Structure $ 18,129,800,000 $ 19,181,900,000

    Nontax Revenues
    Investment Income $ 59,400,000 $ 76,700,000
    Judicial Fees 217,800,000 217,800,000
    Disproportionate Share 100,000,000 100,000,000
    Insurance 71,400,000 73,500,000
    Other Nontax Revenues 182,500,000 182,500,000
    Highway Trust Fund/Use Tax Reimbursement Transfer 41,500,000 27,600,000
    Highway Fund Transfer 20,230,000 24,080,000
    Subtotal Nontax Revenues $ 692,830,000 $ 702,180,000

    Total General Fund Availability $ 19,343,073,193 $ 19,898,060,015

    Adjustments to Availability: 2011 Session
    Loss of Estate Tax $ (57,100,000) $ (72,200,000)
    Small Business Tax Relief Package (131,600,000) (335,600,000)
    Repeal Wildlife Resources Commission Sales Tax
    Earmark 22,970,000 23,920,000
    Suspend Corporate Income Tax Earmark (Public School
    Construction) 72,110,000 74,750,000
    Increase in Judicial Fees 61,765,715 61,765,715
    Increase Investment Company Notice Filing Fee 1,600,000 1,600,000
    Increase Parking Fees for Visitors 550,000 550,000
    Loss of Revenue from the Town of Butner (1,213,235) (1,213,235)
    Transfer from E Commerce Reserve Fund 4,483,526 0
    Divert Funds from Parks & Recreation Trust Fund 8,435,000 0
    Divert Funds from Recreational/Natural Heritage
    Trust Fund 8,000,000 0
    Transfer from Highway Fund for State Highway
    Patrol 196,849,542 188,209,049
    Transfer Additional Funds from Highway Trust Fund 35,223,642 0
    Transfer from Mercury Prevention Pollution Fund 250,000 0
    Transfer from Commerce – Enterprise Fund 500,000 0
    Divert Funds from Scrap Tire Disposal Account 2,268,989 0
    Divert Funds from White Goods Management Account 1,951,465 0
    Diversion of Golden LEAF Funds 17,563,760 17,563,760
    Master Settlement Agreement Funds 24,668,720 25,580,772
    Transfer Health and Wellness Trust Funds to Public Health 32,904,411 0
    Department of Revenue – Accounts Receivable Program 25,000,000 25,000,000
    Medicaid Disproportionate Share Receipts 15,000,000 15,000,000
    Adjust Transfer from Insurance Regulatory Fund (742,348) (742,348)
    Adjust Transfer from Treasurer's Office (3,881,172) (3,916,453)
    Transfer from NC Flex FICA Funds 1,000,000 0
    Proceeds from the Sale of State Assets 15,000,000 25,000,000
    Subtotal Adjustments to Availability:
    2011 Session $ 353,558,015 $ 45,267,260

    Revised General Fund Availability $ 19,696,631,208 $ 19,943,327,275

    Less General Fund Appropriations $ (19,682,651,193) $ (19,943,327,275)

    Unappropriated Balance Remaining $ 13,980,015 $ 0

    SECTION 2.2.(b) Same as 6th edition except directs $76,723,642 (was, $41,500,000) to be transferred from the Highway Trust Fund under specified statutory provisions for 2011-12.
    SECTION 2.2.(c) Same as 6th edition except directs the Secretary of Revenue to transfer specified funds to the State Controller for deposit in Nontax Budget Code 19978 (Intrastate Transfers) during the 2011-12 and 2012-13 fiscal years.
    SECTION 2.2.(d) Same as the provision in the 4th edition.
    SECTION 2.2.(e) Rewrites provision as follows. Of the 2011-12 and 2012-13 annual installment payments to the NC State Specific Account that would have been transferred to The Golden L.E.A.F. Inc., transfers $17,563,760 for 2011-12 and for 2012-13 to the General Fund.
    SECTION 2.2.(f) Same as 6th edition except directs the Secretary of Revenue to credit to the General Fund $2,268,989 (was, $1,134,495) from the net tax proceeds that GS 105-187.19(b) directs the Secretary to credit to the Scrap Tire Disposal Account.
    SECTION 2.2.(g) Same as 6th edition except directs the Secretary of Revenue to credit to the General Fund $ 1,951,465 (was, $1,131,342) from the net tax proceeds that GS 105-187.24 directs the Secretary to credit to the White Goods Management Account.
    SECTION 2.2.(h) Same as the provision in the 4th edition.
    SECTION 2.2.(i) Same as the provision in the 4th edition.
    SECTION 2.2.(j) Same as the 6th edition except makes a clarifying change.
    SECTION 2.2.(k) Same as 6th edition except directs the State Controller to transfer only $125,000,000 (was, $202,994,339) from the unreserved fund balance to the Repairs and Renovations Account on June 30, 2011.
    SECTION 2.2.(l) Identical to 6th edition.
    SECTION 2.2.(m) Same as 6th edition except directs the State Controller to transfer only $185,000,000 (was, $202,994,339) from the unreserved fund balance to the Savings Reserve Account on June 30, 2011.
    SECTION 2.2.(n) New provision directs the State Controller to transfer $1 million from the NC FICA Account for deposit in the Nontax Budget Code 19878 (Intrastate Transfers) for 2011-12.

    PART III. CURRENT OPERATIONS/HIGHWAY FUND

    CURRENT OPERATIONS AND EXPANSION/HIGHWAY FUND
    SECTION 3.1. Modifies appropriations from the State Highway Fund for the fiscal biennium ending June 30, 2013, as follows.

    Current Operations – Highway Fund 2011 2012 2012 2013

    Department of Transportation
    Administration $ 85,412,594 $ 85,412,594

    Division of Highways
    Administration 34,836,793 34,836,793
    Construction 87,232,806 86,339,067
    Maintenance 1,185,080,215 1,244,588,354
    Planning and Research 4,055,402 4,055,402
    OSHA Program 372,792 372,792

    Ferry Operations 34,189,589 43,538,132

    State Aid
    Municipalities 89,373,921 90,187,224
    Public Transportation 90,551,575 90,551,575
    Airports 18,401,413 22,311,031
    Railroads 21,701,153 21,701,153

    Governor's Highway Safety 273,093 273,093
    Division of Motor Vehicles 90,142,238 43,004,042
    Other State Agencies, Reserves, Transfers 292,326,416 351,988,748
    Capital Improvements 15,250,000 15,000,000

    Total $ 2,049,200,000 $ 2,134,160,000

    HIGHWAY FUND AVAILABILITY STATEMENT
    SECTION 3.2. Modifies the Highway Fund availability used in developing the 2011-13 fiscal biennial budget as follows.

    Highway Fund Availability Statement 2011 2012 2012 2013

    Unappropriated Balance from Previous Year $ 24,000,000 $ 0
    Beginning Credit Balance 0 0
    Estimated Revenue 2,025,200,000 2,134,160,000

    Total Highway Fund Availability $ 2,049,200,000 $ 2,134,160,000

    Unappropriated Balance $ 0 $ 0

    PART IV. HIGHWAY TRUST FUND APPROPRIATIONS

    HIGHWAY TRUST FUND APPROPRIATIONS
    SECTION 4.1. Modifies the appropriations from the State Highway Trust Fund for the biennium ending June 30, 2013, as follows.

    Current Operations – Highway Trust Fund 2011 2012 2012 2013

    Intrastate $ 460,823,529 $ 487,503,034
    Aid to Municipalities 51,216,036 54,043,432
    Secondary Roads 43,655,667 49,320,944
    Urban Loops 263,587,722 212,957,986
    Program Administration 44,774,400 47,107,200
    Turnpike Authority 64,000,000 81,500,000
    Transfer to General Fund 76,720,918 27,595,861
    Transfer to Highway Fund 400,000 400,000
    Debt Service 79,231,728 81,481,543
    Mobility Fund 31,000,000 0
    Reserves 0 45,000,000

    GRAND TOTAL CURRENT OPERATIONS $ 1,115,410,000 $ 1,086,910,000

    HIGHWAY TRUST FUND AVAILABILITY STATEMENT
    SECTION 4.2. Modifies the Highway Trust Fund availability used in developing the 2011-13 fiscal biennial budget as shown below.

    Highway Trust Fund Availability 2011 2012 2012 2013

    Unappropriated Balance $ 75,000,000 $ 0
    Estimated Revenue 1,040,410,000 1,086,910,000

    Total Highway Trust Fund Availability $ 1,115,410,000 $ 1,086,910,000

    PART V. OTHER APPROPRIATIONS

    APPROPRIATION OF OTHER FUNDS
    SECTION 5.1. Identical to 6th edition.

    OTHER RECEIPTS FROM PENDING GRANT AWARDS
    SECTION 5.2. Identical to 6th edition.

    CIVIL FORFEITURE FUNDS
    SECTION 5.3. Identical to 6th edition.

    EDUCATION LOTTERY
    SECTION 5.4. Identical to 6th edition.

    PART VI. GENERAL PROVISIONS

    CLARIFY CERTIFIED BUDGET
    SECTION 6.1. Identical to 6th edition.

    CONTINGENCY AND EMERGENCY FUND LIMITATION
    SECTION 6.2. Identical to 6th edition.

    ESTABLISHING OR INCREASING FEES UNDER THIS ACT
    SECTION 6.3. Identical to 6th edition.

    CONSULTATION REQUIRED BEFORE CREATION OF NEW FUNDS
    SECTION 6.4. Identical to 6th edition.

    INTERIM APPROPRIATIONS COMMITTEES/MEETINGS/CONSULTATION BY GOVERNOR
    SECTION 6.5. Same as the provision in the 4th edition.

    JUSTIFICATION/OPERATIONAL REVIEWS
    SECTION 6.6. Same as 6th edition except clarifies that the Lumberton Southeastern Agricultural Center and Farmer’s Market (was, Lumberton Farmer’s Market) is subject to Justification Review in 2011-12 and reinstates the operations of the regional offices of the Department of Environment and Natural Resources as subject to review in 2011-12.

    CONTINUATION REVIEW OF CERTAIN FUNDS/PROGRAMS/DIVISIONS
    SECTION 6.7. Same as 6th edition except deletes from continuation review the Visitors Center Funding in the Department of Transportation.

    STATE GOVERNMENT REORGANIZATION
    SECTION 6.8. Same as the provision in 4th edition.

    UTILIZATION REVIEW/PUBLIC SCHOOL AND PUBLIC HEALTH NURSES
    SECTION 6.9. Identical to 6th edition.

    GLOBAL TRANSPARK DEBT, REPORT, AND STUDY
    SECTION 6.10. Identical to 6th edition.

    HEALTH AND WELLNESS TRUST FUND AND TOBACCO TRUST FUND/FUTURE MSA PAYMENTS
    SECTION 6.11. Same as 6th edition except directs that funds remaining in the Health and Wellness Trust Fund on June 30, 2011, be transferred to the State Controller (was, to DHHS) to be deposited in Nontax Budget Code 19878 (Intrastate Transfers) for fiscal year 2011-12 to be used by the Department of Health and Human Services (DHHS) for the specified purposes.
    Deletes proposed new subsection (c1) amending GS 143C-9-3 to establish a General Fund Account in the Settlement Reserve Fund (SRF). Repeals subsections GS 143C-9-3(b) (establishing a Health Trust Account in the SRF) and (c) (establishing a Tobacco Trust Account in the SRF).

    CONSOLIDATION OF AIR SERVICES AND CENTRALIZATION OF AIR MANAGEMENT/STATE-OWNED PASSENGER AND NON-PASSENGER VEHICLES
    SECTION 6.13. Identical to 6th edition.

    TORNADO ASSISTANCE
    SECTION 6.14. Identical to 6th edition.

    STATE-OWNED DISPOSABLE ASSETS
    SECTION 6.15. Same as the provision in the 4th edition except designates a date, September 1, 2011, by which the Department of Administration is to implement a system for the sale of state-owned disposable assets (was, develop criteria to be considered prior to the sale of assets). Directs the Department of Administration to take the action necessary to accomplish the sale of state-owned disposable assets in accordance with Section 2.2(a) of this act. Deletes the requirement for an interim report by December 31, 2011, to the Joint Legislative Commission on Governmental Operations (JLCGO), the Research Division (RD), and the Program Evaluation Division and instead requires the Department of Administration to report by March 31, 2012, to the JLCGO and the RD on all asset sales made under this section. Makes conforming changes.

    UNEMPLOYMENT INSURANCE/IMPLEMENT THREE-YEAR LOOK BACK
    SECTION 6.16. Same as Section 14.5A, Extend Unemployment Insurance Benefits, of the 6th edition, which allows the payment of extended unemployment insurance benefits as provided under the federal Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.

    PART VI-A. INFORMATION TECHNOLOGY

    INFORMATION TECHNOLOGY FUND/AVAILABILITY
    SECTION 6A.1. Identical to 6th edition.

    INFORMATION TECHNOLOGY OPERATIONS
    SECTION 6A.2. Identical to 6th edition.

    COORDINATION OF INFORMATION TECHNOLOGY REQUIREMENTS AND GEOGRAPHIC INFORMATION
    SYSTEM REQUIREMENTS
    SECTION 6A.3 Identical to 6th edition..

    CRIMINAL JUSTICE LAW ENFORCEMENT AUTOMATED DATA SERVICES (CJLEADS)
    SECTION 6A.4. Identical to 6th edition.

    CONTINUING PILOT PROGRAM TO ALLOW PUBLIC-PRIVATE PARTNERSHIPS TO MEET DEPARTMENT OF REVENUE TECHNOLOGY NEEDS
    SECTION 6A.5. Identical to 6th edition.

    INFORMATION TECHNOLOGY PERSONAL SERVICES CONTRACT REQUIREMENTS
    SECTION 6A.6. Identical to 6th edition.

    STATE INFORMATION TECHNOLOGY CONSOLIDATION
    SECTION 6A.7. Identical to 6th edition.

    ITS/INTERNAL SERVICE FUND RATE ESTABLISHMENT/CASH MANAGEMENT
    SECTION 6A.8. Identical to 6th edition.

    INFORMATION TECHNOLOGY PRIVATIZATION
    SECTION 6A.9. Identical to 6th edition.

    STATE PORTAL IMPLEMENTATION AND OPERATION
    SECTION 6A.10 Identical to 6th edition.

    TRANSFER CRIMINAL JUSTICE INFORMATION NETWORK TO THE OFFICE OF THE STATE CHIEF INFORMATION OFFICER
    SECTION 6A.11. Identical to 6th edition.

    INTEGRATED BUDGET INFORMATION SYSTEM
    SECTION 6A.12. Identical to 6th edition.

    USE OF MOBILE ELECTRONIC COMMUNICATIONS DEVICES
    SECTION 6A.14. Identical to 6th edition.

    USE OF DMV INSPECTION PROGRAM ACCOUNT FUND
    SECTION 6A.15. Identical to 6th edition.

    STATEWIDE INFORMATION TECHNOLOGY PROCUREMENT
    SECTION 6A.16. Identical to 6th edition.

    REPLACEMENT OF THE STATE TITLING AND REGISTRATION SYSTEM (STARS) AND THE STATE AUTOMATED DRIVER LICENSE SYSTEM (SADLS)
    SECTION 6A.17. Same as 6th edition, except appropriates $24 million from the DMV Inspection Program Account Fund and $10 million from bulk data fees for the 2011-13 fiscal biennium for replacement of STARS and SADLS. Provides that if the Department of Transportation, Division of Motor Vehicles, does not receive approval for system replacement projects within two weeks after submitting the required data, then the Office of the State Chief Information Officer (SCIO) is to immediately notify the Office of State Budget and Management, the Joint Legislative Oversight Committee on Information Technology, and the Fiscal Research Division (was, if project approval was not received within two weeks, then approval was automatic). Allows the Department of Transportation (was, only the SCIO or Office of Information Technology Services) to request committee review as defined in GS 147-33.72D if it is necessary to delay or suspend the project based on technical or funding issues. Requires that the review be completed within five business days (was, within five days).

    ENTERPRISE ELECTRONIC FORMS AND DIGITAL SIGNATURES
    SECTION 6A.18. Identical to 6th edition.

    EVALUATION OF STATE INFORMATION TECHNOLOGY OPERATIONS
    SECTION 6A.19. Identical to 6th edition.

    COMPREHENSIVE ENTERPRISE-LEVEL DATA INTEGRATION CAPABILITY
    SECTION 6A.20. Same as 6th edition, except clarifies that payments are limited to the delineated payment schedule under the terms of the enterprise automated fraud detection contract entered into by the Office of the State Controller (Controller). Provides that the payments are contingent upon achieving the anticipated schedule of benefits realization. Directs the Controller to ensure that the state receives an appropriate share of intellectual property ownership or residuals, or both, accruing as a result of subsequent contracts between the vendor and third parties that utilize the innovations developed as a result of this contract.

    PART VII. PUBLIC SCHOOLS

    EDUCATION REFORM IN NORTH CAROLINA
    SECTION 7.1. Identical to 6th edition.

    CAREER AND COLLEGE PROMISE
    SECTION 7.1A. Same as the 6th edition, except clarifies that a College Transfer Pathway, one of the Career and College pathways aligned with the K-12 curriculum and career and college ready standards adopted by the State Board of Education, requires the successful completion of 30 semester hours of transfer courses, including English and math, (was, eight college transfer courses including English and Math) for qualified junior and senior high school students. Makes a conforming change to GS 115D-20(4) and makes additional conforming changes. Also amends GS 115D-20(4) to clarify that the academic transition pathways offered by local community colleges are to be offered to qualified junior and senior high school students.

    CLASS SIZE REDUCTION FOR GRADES 1-3
    SECTION 7.1B. Identical to 6th edition.

    FUNDS FOR CHILDREN WITH DISABILITIES
    SECTION 7.2. Identical to 6th edition.

    FUNDS FOR ACADEMICALLY GIFTED CHILDREN
    SECTION 7.3. Identical to 6th edition.

    USE OF SUPPLEMENTAL FUNDING IN LOW-WEALTH COUNTIES
    SECTION 7.4. Identical to 6th edition.

    LITIGATION RESERVE FUNDS
    SECTION 7.5. Identical to 6th edition.

    UNIFORM EDUCATION REPORTING SYSTEM (UERS) FUNDS
    SECTION 7.6. Identical to 6th edition.

    FOCUSED EDUCATION REFORM PROGRAM FUNDS DO NOT REVERT
    SECTION 7.7. Identical to 6th edition.

    DISADVANTAGED STUDENT SUPPLEMENTAL FUNDING (DSSF)
    SECTION 7.8. Identical to 6th edition.

    TUITION CHARGE FOR GOVERNOR’S SCHOOL
    SECTION 7.9. Identical to 6th edition.

    SCHOOL CONNECTIVITY INITIATIVE FUNDS
    SECTION 7.10. Identical to 6th edition.

    SMALL SCHOOL SYSTEM SUPPLEMENTAL FUNDING
    SECTION 7.12. Same as the provision in the 4th edition.

    ELIMINATION OF REPORTING REQUIREMENTS
    SECTION 7.13. Same as 6th edition, except moves provision regarding renewing a professional educator’s license to new Section 7.13A.

    RENEWAL OF PROFESSIONAL EDUCATOR’S LICENSE (NEW)
    SECTION 7.13A. Prohibits the State Board of Education (SBE) from requiring more than five semester hours or seven and one-half units of renewal credits to renew a North Carolina Standard Professional 2 professional educator’s license.

    SCHOOL BUILDING ADMINISTRATION
    SECTION 7.14. Identical to 6th edition.

    TRANSFER OF FEDERAL AGRICULTURAL EDUCATION FUNDS
    SECTION 7.15. Identical to 6th edition.

    ELIMINATION OF TEACHERS FOR GEOGRAPHICALLY ISOLATED SCHOOLS
    SECTION 7.16. Deleted.

    SCHOOL CALENDAR PILOT PROGRAM
    SECTION 7.17. Same as 6th edition, except authorizes the SBE to grant a pilot school system a waiver to use up to five instructional days or an equivalent number of instructional hours as teacher workdays if the SBE finds that to do so will enhance student performance.

    BUDGET REDUCTIONS/DEPARTMENT OF PUBLIC INSTRUCTION
    SECTION 7.19. Identical to 6th edition.

    LEA BUDGET ADJUSTMENT
    SECTION 7.20. Identical to 6th edition.

    LEA BUDGETARY FLEXIBILITY
    SECTION 7.21. Same as 6th edition, except provides that the emergency rules, which the SBE is authorized to extend to grant maximum flexibility to LEAs in expending state funds, do not permit the transfer of funds (1) from the classroom teachers allotment to any allotment other than teachers assistants allotments or (2) from the teacher assistants allotment to any allotment other than the classroom teachers allotment (was, only prohibited the transfer of funds into central office administration). Includes teaching assistants in the goal of protecting direct classroom services as LEAs are making efforts to reduce spending.

    NORTH CAROLINA VIRTUAL PUBLIC SCHOOLS
    SECTION 7.22. Identical to 6th edition.

    PERFORMANCE-BASED REDUCTIONS IN FORCE
    SECTION 7.23. Identical to 6th edition.

    TEACHING FELLOWS ADMINISTRATIVE REDUCTION
    SECTION 7.24. Identical to 6th edition.

    RESIDENTIAL SCHOOLS
    SECTION 7.25. Same as the 6th edition, except adds the following to factors to be considered by the Department of Public Instruction (DPI) in deciding which residential school is to be closed: (1) minimization of required travel for students of the school that is closed and (2) the historical and cultural significance of the school.

    DEPARTMENT OF PUBLIC INSTRUCTION RECEIPTS
    SECTION 7.27. Identical to 6th edition.

    SCHOOL BUS PURCHASES
    SECTION 7.28. Deleted.

    INCREASE NUMBER OF INSTRUCTIONAL DAYS
    SECTION 7.29. Same as 6th edition, except amends GS 115C-84.2(a) to authorize the SBE to grant a local board of education a waiver to use up to five of the required instructional days as teacher workdays if the SBE finds that to do so will enhance student performance. Requires that an equivalent number of instructional hours be waived for each instructional day that is waived. Also amends GS 115C-238.29F(d)(1) to authorize the SBE to grant the waiver to use instructional days as teacher workdays to charter schools.

    TESTING PROGRAM
    SECTION 7.30. Identical to 6th edition.

    FUND ONE LEA PER COUNTY
    SECTION 7.31. Deleted.

    PART VIII. COMMUNITY COLLEGES

    REORGANIZATION OF THE COMMUNITY COLLEGES SYSTEM OFFICE
    SECTION 8.1. Identical to 6th edition.

    REPEAL OBSOLETE REPORTING REQUIREMENTS
    SECTION 8.2. Identical to 6th edition.

    IMPLEMENT ALTERNATIVE FORMULA MODEL
    SECTION 8.3. Identical to 6th edition.

    USE OF OVERREALIZED RECEIPTS TO SUPPORT ENROLLMENT GROWTH RESERVE RATHER THAN EQUIPMENT RESERVE
    SECTION 8.4. Identical to 6th edition.

    BASIC SKILLS PLUS
    SECTION 8.5. Identical to 6th division.

    CARRYFORWARD OF COLLEGE INFORMATION SYSTEM FUNDS
    SECTION 8.6. Identical to 6th edition.

    EQUIPMENT FUNDING
    SECTION 8.8. Same as 6th edition, except directs the State Board of Community Colleges to allocate $250,000 of the funds appropriated to the Community Colleges System Office for equipment for 2011-12 to Forsyth Technical Community College. Limits use of the funds to building and equipping the Stokes County multi-campus site and prohibits considering these funds for a management flexibility reduction.

    CLARIFICATION REGARDING EQUIPMENT TITLED TO STATE BOARD
    SECTION 8.9. Identical to 6th edition.

    NO STATE FUNDS FOR INTERCOLLEGIATE ATHLETICS
    SECTION 8.10. Identical to 6th edition.

    COMMUNITY COLLEGE TUITION WAVERS
    SECTION 8.12. Same as 6th edition, except amends GS 115D-5(b) to allow the State Board of Community Colleges (SBCC) to provide for the waiver of tuition and registration fees for Radio Emergency Associated Citizens Teams (REACT) under contract to a county as an emergency response agency.

    FUNDING FOR MULTICAMPUS CENTERS
    SECTION 8.13. Identical to 6th edition.

    STUDY COMMUNITY COLLEGE PERFORMANCE MEASURES
    SECTION 8.14. Identical to 6th edition.

    COMMUNITY COLLEGE AUDITS
    SECTION 8.15. Identical to 6th edition.

    ENROLLMENT GROWTH
    SECTION 8.16. Identical to 6th edition.

    EXEMPT COMMUNITY COLLEGES FROM APA
    SECTION 8.18. Identical to 6th edition.

    CAPITAL IMPROVEMENTS AT COMMUNITY COLLEGES
    SECTION 8.19. Identical to 6th edition.

    GRANTING COMMUNITY COLLEGES ADDITIONAL FLEXIBILITY WITH REGARD TO INVESTMENTS
    SECTION 8.20. Same as 6th edition, except makes a stylistic change to the Section title and makes organizational changes to GS 115D-58.6. Makes conforming changes to GS 115D-58.7 to reflect the organizational changes to GS 115D-58.6.

    PART IX. UNIVERSITIES

    CENTER FOR PUBLIC TELEVISION CONTINUATION REVIEW
    SECTION 9.1. Identical to 6th edition.

    UNIVERSITY CANCER RESEARCH FUND REPORTING REQUIREMENT
    SECTION 9.4. Identical to 6th edition.

    UNC BOARD OF GOVERNORS REVIEW OF FACULTY RECRUITMENT AND RETENTION
    SECTION 9.5. Identical to 6th edition.

    UNC MANAGEMENT FLEXIBILITY REDUCTION
    SECTION 9.6. Same as the 6th edition, except, in the allocation of the management flexibility reduction, prohibits any reduction in state funds (was, no reduction by more than 15%) from the Governor’s Recommended Continuation Budget in either fiscal year of the 2011-13 biennium, for the following: (1) Hickory Metro Higher Education Center, (2) joint Graduate School of Nanoscience and Nanoengineering at North Carolina Agricultural and Technical State University and the University of North Carolina at Greensboro, (3) the North Carolina Research Campus, and (4) Agricultural Research. Provides that in allocating the management flexibility reduction, state funds cannot be reduced in either fiscal year of the 2011-13 biennium by more than 12.3% from the Governor’s Recommended Continuation Budget for (1) Agricultural Extension and (2) North Carolina Judicial College of the UNC School of Government. Also prohibits any reduction in state funds in allocating the management flexibility reduction in either fiscal year of the 2011-13 biennium to the following: (1) Center for Turfgrass Environmental Research and Education at North Carolina State University, (2) Need-Based Financial Aid, (3) Aid to Private Colleges, (4) the Coastal Wave Energy Research Project, (5) any special responsibility constituent institution which has been granted a basic type designation of Special Focus Institution under the Carnegie Classification of Institutions of Higher Education, and (6) any special responsibility constituent institution with the designation of Baccalaureate Colleges—Arts & Sciences. Also provides that in allocating the management flexibility reduction, state funds cannot be reduced in either fiscal year of the 2011-13 biennium by more than 12.3% from the Governor’s Recommended Continuation Budget for Agricultural Research funds, except that state funds cannot be reduced in either fiscal year of the biennium by more than 10% from the Governor’s Recommended Continuation Budget for the biennium for Agricultural Research Stations.

    ADVISORY COMMISSION ON MILITARY AFFAIRS/MODIFY MEMBERSHIP
    SECTION 9.6A. Identical to 6th edition.

    CLARIFICATION/GENERAL FUND APPROPRIATIONS CARRIED FORWARD BY UNC SHALL NOT BE USED FOR CAPITAL IMPROVEMENTS
    SECTION 9.6B. Deleted.

    ALLOW CHANCELLORS OF CONSTITUENT INSTITUTIONS TO APPROVE CERTAIN REPAIR AND MAINTENANCE PROJECTS AND FUND THOSE WITH AVAILABLE OPERATING FUNDS
    SECTION 9.6C. Identical to 6th edition.

    AUTHORIZE BOARD OF GOVERNORS TO PERMIT NORTH CAROLINA STATE UNIVERSITY TO SELF-PERFORM ENERGY CONSERVATION MEASURES AND TO AUTHORIZE ENERGY SAVINGS REALIZED BY NORTH CAROLINA STATE UNIVERSITY TO BE USED AS A SOURCE OF REPAYMENT FOR CERTAIN DEBTS
    SECTION 9.6D. Identical to 6th edition.

    AMEND REGULATION OF UNC INSTITUTIONAL TRUST FUNDS AND FUNDS OF UNC HEALTH CARE SYSTEM
    SECTION 9.6E. Identical to 6th edition.

    UNC/INSTITUTIONAL EXPENDITURE BENCHMARKS
    SECTION 9.6F. Identical to 6th edition.

    UNC ASSUME RESPONSIBILITY FOR QUALITY ACCEPTANCE INSPECTION PROCESS
    SECTION 9.6G. Identical to 6th edition.

    NCSU MAY SELL TIMBER
    SECTION 9.6H. Identical to 6th edition.

    USE OF ESCHEAT FUND FOR NEED-BASED FINANCIAL AID PROGRAMS
    SECTION 9.8. Identical to 6th edition.

    UNC NEED-BASED FINANCIAL AID PROGRAM FUNDING SCHEDULE
    SECTION 9.9. Identical to 6th edition.

    CONSOLIDATE ASSETS OF MILLENNIUM TEACHING SCHOLARSHIP LOAN PROGRAM AND PROSPECTIVE TEACHERS SCHOLARSHIP LOAN FUND/GIVE PRIORITY FOR SCHOLARSHIP LOANS FOR PROSPECTIVE TEACHERS TO CERTAIN FORMER TEACHER ASSISTANTS
    SECTION 9.10. Identical to 6th edition.

    LIMIT CERTAIN FINANCIAL AID GRANTS TO THE TRADITIONAL TIME PERIOD REQUIRED TO EARN A BACCALAUREATE DEGREE
    SECTION 9.11. Identical to 6th edition.

    ACADEMIC COMMON MARKET
    SECTION 9.12. Identical to 6th edition.

    ELIMINATE CERTAIN UNC TUITION WAIVERS FOR NONRESIDENT STUDENTS
    SECTION 9.13. Same as the provision in the 4th edition, except does not repeal GS 116-143.6.

    ELIMINATE PRIVATE MEDICAL SCHOOL AID
    SECTION 9.14. Identical to 6th edition.

    TRANSFER NORTH CAROLINA ARBORETUM RESPONSIBILITIES TO WESTERN CAROLINA
    SECTION 9.15. Identical to 6th edition.

    SPECIAL RESPONSIBILITY CONSTITUENT INSTITUTION AUDITS
    SECTION 9.16. Identical to 4th edition.

    NEED-BASED SCHOLARSHIPS FOR STUDENTS ATTENDING PRIVATE INSTITUTIONS OF HIGHER EDUCATION
    SECTION 9.18. Same as 6th edition, except amends the eligibility requirements to receive a scholarship under the proposed Article 34. Amends the criteria regarding scholarship amounts and changes the minimum scholarship amount to $500 (was $100).
    Deletes restrictions in GS 90-332.1(a)(4a), GS 105-278.4(a), and GS 116-11(10a) that limited the application of each statute’s provisions to a nonprofit postsecondary educational institution as described in GS 116-80 that is not a seminary, Bible school, Bible college, or similar religious institution.

    CONSTITUENT INSTITUTIONS MAY PURCHASE MOTOR VEHICLES INDEPENDENT OF MOTOR FLEET MANAGEMENT
    SECTION 9.19. Identical to 6th edition.

    PART X. DEPARTMENT OF HEALTH AND HUMAN SERVICES

    CHILD CARE SUBSIDY RATES
    SECTION 10.1 Identical to 6th edition.

    CHILD CARE ALLOCATION FORMULA
    SECTION 10.2. Identical to 6th edition.

    CHILD CARE FUNDS MATCHING REQUIREMENT
    SECTION 10.3. Identical to 6th edition.

    CHILD CARE REVOLVING LOAN
    SECTION 10.4. Identical to 6th edition.

    EXPIRATION OF EARLY EDUCATION CERTIFICATION REQUIREMENT
    SECTION 10.4A. Identical to 6th edition.

    EARLY CHILDHOOD EDUCATION AND DEVELOPMENT INITIATIVES ENHANCEMENTS
    SECTION 10.5. Identical to the provision in 4th edition.

    ADMINISTRATIVE ALLOWANCE FOR COUNTY DEPARTMENTS OF SOCIAL SERVICES
    SECTION 10.6. Identical to 6th edition.

    CONSOLIDATE MORE AT FOUR PROGRAM INTO DIVISION OF CHILD DEVELOPMENT
    SECTION 10.7. Identical to 6th edition.

    MENTAL HEALTH CHANGES
    SECTION 10.8. Same as 6th edition, except adds additional reporting requirement.

    JOHNSTON COUNTY LME ADMINISTRATIVE FUNDING
    SECTION 10.8A. Identical to the provision in 4th edition.

    MH/DD/SAS HEALTH CARE INFORMATION SYSTEM PROJECT
    SECTION 10.9. Identical to 6th edition.

    LME FUNDS FOR SUBSTANCE ABUSE SERVICES
    SECTION 10.10. Identical to 6th edition.

    MH/DD/SAS COMMUNITY SERVICE FUNDS
    SECTION 10.11. Identical to the provision in 4th edition.

    CONSOLIDATION OF FORENSIC HEALTH CARE AT DOROTHEA DIX COMPLEX
    SECTION 10.12. Identical to 6th edition.

    TRANSITION OF UTILIZATION MANAGEMENT OF COMMUNITY-BASED SERVICES TO LOCAL MANAGEMENT ENTITIES
    SECTION 10.13. Identical to 6th edition.

    THIRD PARTY BILLING FOR STATE FACILITIES
    SECTION 10.14. Identical to 6th edition.

    COLLABORATION AMONG DEPARTMENTS OF ADMINISTRATION, HEALTH AND HUMAN SERVICES, JUVENILE JUSTICE AND DELINQUENCY PREVENTION AND PUBLIC INSTRUCTION ON SCHOOL-BASED CHILD AND FAMILY TEAM INITIATIVE
    SECTION 10.15. Identical to 6th edition.

    DHHS POSITION ELIMINATIONS
    SECTION 10.16. Same as 6th edition, except the amount of savings required by the elimination of positions is decreased from $7,771,997 to $7,606,000.

    DHHS REGULATORY FUNCTIONS STUDY AND PLAN
    SECTION 10.17. Identical to the provision in 4th edition.

    REDUCE FUNDING FOR NONPROFIT ORGANIZATIONS
    SECTION 10.18. Identical to 4th edition, except adds the additional requirement that in achieving the reductions as required by the section, DHHS must not reduce funds allocated to the North Carolina High School Athletic Association by more than 10%.

    PROHIBIT USE OF ALL FUNDS FOR PLANNED PARENTHOOD ORGANIZATIONS
    SECTION 10.19. Identical to 6th edition.

    LIABILITY INSURANCE
    SECTION 10.20. Identical to 6th edition.

    CHANGES TO COMMUNITY-FOCUSED ELIMINATING HEALTH DISPARITIES INITIATIVE
    SECTION 10.21. Identical to 6th edition.

    FUNDS FOR SCHOOL NURSES
    SECTION 10.22. Identical to 6th edition.

    REPLACEMENT OF RECEIPTS FOR CHILD DEVELOPMENT SERVICE AGENCIES
    SECTION 10.23. Identical to 6th edition.

    HEALTH INFORMATION TECHNOLOGY
    SECTION 10.24. Identical to 6th edition.

    FUNDS FOR STROKE PREVENTION
    SECTION 10.25. Identical to 6th edition.

    AIDS DRUG ASSISTANCE PROGRAM
    SECTION 10.26. Identical to 6th edition.

    MEN’S HEALTH
    SECTION 10.26A. Identical to 6th edition.

    NC HEALTH CHOICE MEDICAL POLICY
    SECTION 10.27. Identical to 6th edition.

    COMMUNITY CARE OF NORTH CAROLINA
    SECTION 10.28. Identical to 6th edition.

    MEDICAID MANAGEMENT INFORMATION SYSTEM (MMIS) FUNDS/IMPLEMENTATION OF MMIS
    SECTION 10.29. Same as 6th edition, except adds an additional reporting requirement.
    .
    NORTH CAROLINA FAMILIES ACCESSING SERVICES THROUGH TECHNOLOGY (NC FAST) FUNDS
    SECTION 10.30. Identical to 6th edition.

    MEDICAID
    SECTION 10.31.(a) Identical to 6th edition.
    SECTION 10.31.(b) Identical to 6th edition.
    SECTION 10.31.(c) Identical to 6th edition.
    SECTION 10.31.(d) Same as 6th edition, except the prior authorization provision (10-31.(d)(2)r.5A) is identical to that provision in the 4th edition.
    SECTION 10.31.(e) Identical to 6th edition.
    SECTION 10.31.(f) Identical to 6th edition.
    SECTION 10.31.(g) Identical to 6th edition.

    MEDICAID PROVIDER ASSESSMENTS
    SECTION 10.31A. Identical to 6th edition.

    DMA CONTRACT SHORTFALL
    SECTION 10.32. Identical to 6th edition.

    MEDICAID COST CONTAINMENT ACTIVITIES
    SECTION 10.33. Identical to 6th edition.

    MEDICAID SPECIAL FUND TRANSFER
    SECTION 10.34. Identical to 6th edition.

    ACCOUNTING FOR MEDICAID RECEIVABLES AS NONTAX REVENUE
    SECTION 10.35. Identical to the provision in 4th edition.

    FAMILIES PAY PART OF THE COST OF SERVICES UNDER THE CAP-MR/DD PROGRAM AND THE CAP-CHILDREN’S PROGRAM BASED ON FAMILY INCOME
    SECTION 10.36. Identical to 6th edition.

    AUTHORIZE THE DIVISION OF MEDICAL ASSISTANCE TO TAKE CERTAIN STEPS TO EFFECTUATE COMPLIANCE WITH BUDGET REDUCTIONS IN THE MEDICAID PROGRAM
    SECTION 10.37. Same as 6th edition except reduces the provider rate to 2% (previously 3%) and adds providers that are excepted from the rate reduction. Limits length of stay for mental health residential services to no more than 180 days (was, no more than 120 days). Reduces provider rate for inpatient hospital services to 7.32% (previously 9.6%). Makes provisions concerning dental and miscellaneous services provided under Medicaid identical to the 4th edition by deleting provision limiting dental services to emergency and pregnant women, and by restoring other services.

    MEDICAID WAIVER FOR ASSISTED LIVING
    SECTION 10.38. Identical to 6th edition.

    PROGRAM INTEGRITY
    SECTION 10.39. Identical to 6th edition.

    TRANSFER TO OFFICE OF ADMINISTRATIVE HEARINGS
    SECTION 10.40. Identical to 6th edition

    NC HEALTH CHOICE
    SECTION 10.41. Same as 6th edition, except clarifies implementation and effective dates.

    MEDICATION THERAPY MANAGEMENT PILOT
    SECTION 10.42. Identical to 6th edition.

    MEDICAID RECIPIENT APPEALS
    SECTION 10.44. Identical to the provisions in 4th edition.

    DEPARTMENT TO DETERMINE COST-SAVINGS FOR MEDICAID THAT WOULD RESULT FROM PROVISION OF MUSCULOSKELETAL HEALTH SERVICES
    SECTION 10.45. Identical to 6th edition.

    DHHS SAVINGS THROUGH CCNC
    SECTION 10.47. Same as 6th edition except requires savings of $90 million for 2011-12 and $90 million for 2012-13.

    INCREASE GENERIC DRUG DISPENSING RATE IN MEDICAID BY REVISING PHARMACY DISPENSING FEES FOR PHARMACISTS THAT DISPENSE HIGH PROPORTIONS OF GENERIC DRUGS
    SECTION 10.48 Identical to 6th edition.

    NC NOVA
    SECTION 10.49. Identical to 6th edition.

    HOME CARE AGENCY LICENSURE MORATORIUM IN-HOME AIDE SERVICES
    SECTION 10.49A. Identical to 6th edition.

    INTENSIVE FAMILY PRESERVATION SERVICES FUNDING AND PERFORMANCE ENHANCEMENTS
    SECTION 10.50. Identical to 6th edition.

    FOSTER CARE AND ADOPTION ASSISTANCE PAYMENT RATES
    SECTION 10.51. Identical to 6th edition.

    ADOPTION ASSISTANCE VENDOR PAYMENTS
    SECTION 10.51A. Deleted.

    CHILD CARING INSTITUTIONS
    SECTION 10.52. Identical to 6th edition.

    REPEAL STATE ABORTION FUND
    SECTION 10.53. Identical to 6th edition.

    CHILD WELFARE POSTSECONDARY SUPPORT PROGRAM
    SECTION 10.54. Identical to 6th edition.

    TANF BENEFIT IMPLEMENTATION
    SECTION 10.55. Identical to 6th edition.

    PAYMENT FOR LIEAP/CIP
    SECTION 10.56. Identical to 6th edition.

    NON-MEDICAID REIMBURSEMENT CHANGES
    SECTION 10.58. Identical to 6th edition.

    STATE-COUNTY SPECIAL ASSISTANCE
    SECTION 10.59 Identical to 6th edition.

    DHHS BLOCK GRANTS
    SECTION 10.60. Same as 6th edition except modifies the following appropriations from the federal block grant funds.
    TEMPORARY ASSISTANCE TO NEEDY FAMILIES (TANF) FUNDS
    Appropriates $72,680,370 to Work First Family Assistance
    Transfers $79,437,674 to the Child Care and Development Fund
    Deletes transfer to Social Services Block Grant for Independent Living Program
    Transfers $4,148,001 to Social Services Block Grant for County Departments of Social Services
    Makes conforming change to total.
    TANF EMERGENCY CONTINGENCY FUNDS
    Appropriates $6,114,959 to Continuation of Subsidized Employment Initiative.
    Makes conforming change to total.
    SOCIAL SERVICES BLOCK GRANT
    Appropriates $30,288,783 to County Departments of Social Services (Transfer from TANF $4,148,001)
    Appropriates $3,773,001 to Food Banks
    Appropriates $3,633,077 to Independent Living Program
    Makes a conforming change to total.
    CHILD CARE AND DEVELOPMENT FUND BLOCK GRANT
    Appropriates $158,004,959 to Subsidized Child Care Services
    Appropriates $79,437,674 to Subsidized Child Care Services (Transfer from TANF)
    Makes conforming change to total.

    PART XI. DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES

    REPEAL BOARD OF AGRICULTURE REVIEW OF FEE SCHEDULES
    SECTION 11.2. Identical to 6th edition.

    RECLASSIFY VACANT POSITION WITHIN DACS TO ANIMAL WELFARE PROGRAM
    SECTION 11.7. Identical to 6th edition.

    PART XII. DEPARTMENT OF LABOR

    LABOR/REPEAL STATUTE REQUIRING BIENNIAL REVIEW OF FEES BY DEPARTMENT
    SECTION 12.1. Identical to 6th edition.

    PART XIII. DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

    ABOLISH, TRANSFER TO OTHER DEPARTMENTS, OR CONSOLIDATE WITHIN DENR ALL ENVIRONMENTAL HEALTH PROGRAMS UNDER DENR
    SECTION 13.3. Makes numerous technical changes to 6th edition, but transfers the same entities as transferred under 4th edition. Transfers the Grade “A” Milk Sanitation Program to DACS.

    REQUIRE DENR TO USE DWQ’S GROUNDWATER INVESTIGATION UNIT’S WELL DRILLING SERVICES IN OTHER DENR DIVISIONS
    SECTION 13.4. Identical to 6th edition.

    DENR CIVIL PENALTY ASSESSMENTS
    SECTION 13.6. Identical to 4th edition.

    WATER AND AIR QUALITY ACCOUNT REVERTS
    SECTION 13.7 Identical to 6th edition.

    FUNDS FOR CLEANUP AND MONITORING OF TEXFI SITE CONTAMINATION
    SECTION 13.10A. Identical to 6th edition.

    FUNDS FOR RECYCLING PROGRAMS FOR PRODUCTS THAT CONTAIN MERCURY
    SECTION 13.10B. Identical to 6th edition.

    FUNDS FOR DENR STUDY OF ONSHORE SHALE GAS RESOURCES IN NC
    SECTION 13.10D. Deleted.

    REPEAL DENR REVIEW OF FEE SCHEDULES
    SECTION 13.11. Identical to 6th edition.

    DWSRF LOANS AND GRANTS TO INVESTOR–OWNED DRINKING WATER CORPORATIONS
    SECTION 13.11A. Identical to 6th edition.

    REGULATORY REFORM FOR DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES, DEPARTMENT OF LABOR, AND DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES
    SECTION 13.11B. Identical to 6th edition.

    PARKS AND RECREATION TRUST FUND; ALLOCATION OF DEED STAMP TAX PROCEEDS CREDITED TO FUND
    SECTION 13.11C. New provision is identical to Section 13.14. of the 4th edition.

    PARKS AND RECREATION TRUST FUND; ALLOCATION OF DEED STAMP TAX PROCEEDS CREDITED TO FUND
    SECTION 13.14. Deleted. (Most provisions moved to Section 13.11C)

    NATURAL HERITAGE TRUST FUND USED FOR COSTS TO ADMINISTER PLANT CONSERVATION PROGRAM/CONSERVATION PLANNING & COMMUNITY AFFAIRS PROGRAM
    SECTION 13.16. Identical to 6th edition.

    OYSTER SANCTUARY PROGRAM SUPPORT
    SECTION 13.18. Identical to 6th edition.

    MARINE FISHERIES ENCOURAGED TO CONTRACT WITH PRIVATE SECTOR FOR OYSTER SANCTUARY RESTORATION
    SECTION 13.18A. Identical to 6th edition.

    DIVISION OF MARINE FISHERIES TO USE DIVISION OF FOREST RESOURCES MECHANICS FOR AIRCRAFT MAINTENANCE
    SECTION 13.18B. Identical to 6th edition.

    END PILOT PROGRAM FOR ANNUAL INSPECTIONS OF CERTAIN ANIMAL OPERATIONS
    SECTION 13.21. Identical to 6th edition.

    END DSWC ROLE REGARDING ANIMAL WASTE MANAGEMENT SYSTEMS
    SECTION 13.22. Identical to 6th edition.

    TRANSFER DIVISION OF SOIL AND WATER CONSERVATION AND SOIL AND WATER CONSERVATION COMMISSION TO DACS
    SECTION 13.22A. Identical to 6th edition.

    AGRICULTURAL WATER RESOURCES ASSISTANCE PROGRAM/CONFORMING CHANGES; FUNDS TO PROMOTE WATER SUPPLY DEVELOPMENT
    SECTION 13.23. Identical to 6th edition.

    CONTRACT TO OUTSOURCE GIFT SHOPS AT NC ZOO TO DIRECT PROFITS TO ZOO FUND
    SECTION 13.24. Identical to 6th edition.

    TRANSFER FORESTRY DIVISION AND FORESTRY COUNCIL FROM DENR TO DACS
    SECTION 13.25. Same as to 6th edition, except repeals GS 143B-279.3(b)(13) as a conforming change.

    CLEAN WATER MANAGEMENT TRUST FUND
    SECTION 13.26.(a) Identical to 6th edition.
    SECTION 13.26.(b) Identical to 6th edition.
    SECTION 13.26.(c) Same as 6th edition except decreases to $6,250,000 (was $8 million) the amount allocated during 2011-13 fiscal biennium for wastewater projects, water quality restoration projects, mini-grants, conservation easements, and stormwater projects.
    SECTION 13.26.(d) New provision directs that certain funds allocated under this section will not be used for land acquisition and clarifies which funds may be used to purchase conservation easements.
    SECTION 13.26.(e) Identical to Section 13.26(d) of 6th edition.

    NEW FUNDING SOURCE FOR WILDLIFE RESOURCE COMMISSION BUDGET
    SECTION 13.27.(a) Identical to 6th edition.
    SECTION 13.27.(b) Same as 6th edition except increases the amount appropriated to the Wildlife Resources Commission to $18 million (was $16 million) and directs that the funds appropriated will be transferred to the Wildlife Resources Fund and be used for personal services expenditures only.

    ANNUAL REPORT TO GOV OPS ON WILDLIFE RESOURCES FUND EXPENDITURES
    SECTION 13.28. Identical to 6th edition.

    ANNUAL APPROPRIATIONS FOR BEAVER DAMAGE CONTROL PROGRAM FROM FUNDS AVAILABLE TO THE WILDLIFE RESOURCES COMMISSION
    SECTION 13.29. Identical to 6th edition.

    PART XIV. DEPARTMENT OF COMMERCE

    NER BLOCK GRANTS
    SECTION 14.1. Identical to 6th edition.

    ONE NORTH CAROLINA FUND
    SECTION 14.2. Identical to 6th edition.

    EXTEND DEADLINE FOR TWENTY PERCENT REDUCTION ON PETROLEUM PRODUCTS USE FOR STATE FLEETS/CLARIFY REPORTING REQUIREMENT
    SECTION 14.2B. Identical to 6th edition.

    STATUS OF TRAVEL AND TOURISM INDUSTRY IN NC/ANNUAL REPORT
    SECTION 14.3. Identical to 6th edition.

    NORTH CAROLINA WINERIES & TOURISM /OPERATING COMMITTEES
    SECTION 14.3A. Same as provision in 4th edition except makes committee members appointed by the Commissioner of Agriculture (rather than the Secretary of Commerce) and deletes required meeting locations.

    WINE AND GRAPE GROWERS COUNCIL ELIMINATED
    SECTION 14.3B. Identical to 6th edition.

    21ST CENTURY COMMUNITIES PROGRAM ELIMINATED/CONFORMING CHANGES
    SECTION 14.3C. Identical to 6th edition.

    EMPLOYMENT SECURITY COMMISSION FUNDS.
    SECTION 14.4. Identical to 6th edition.

    TRANSFER EMPLOYMENT SECURITY COMMISSION TO DEPARTMENT OF COMMERCE
    SECTION 14.5. Same as 6th edition except makes section effective on November 1, 2011.

    EXTEND UNEMPLOYMENT INSURANCE BENEFITS
    SECTION 14.5A. Deleted.

    AGRICULTURAL EMPLOYEES/UNEMPLOYMENT INSURANCE
    SECTION 14.5B. Identical to 6th edition.

    DEPARTMENT OF COMMERCE/CONTRACTS RELATED TO EMPLOYMENT SECURITY ORGANIZATIONAL REFORM
    SECTION 14.5C. Identical to 6th edition.

    TRANSFER STATE PORTS AUTHORITY FROM DEPARTMENT OF COMMERCE TO DEPARTMENT OF TRANSPORTATION
    SECTION 14.6. Identical to 6th edition.

    STUDY COSTS OF SERVICES PROVIDED BY DEPARTMENT OF COMMERCE TO AGENCIES IN THE DEPARTMENT OF COMMERCE
    SECTION 14.7. Identical to 6th edition.

    INDUSTRIAL COMMISSION FEES/COMPUTER SYSTEM REPLACEMENT
    SECTION 14.8. Identical to 6th edition.

    UTILITIES COMMISSION/TERMS OF COMMISSIONERS
    SECTION 14.8A. Same as 6th edition except amends GS 62-10 to set the terms of commissioners on the North Carolina Utilities Commission at six years (was, four years in previous edition) and makes the change effective January 1, 2012 (rather than July 1, 2011).

    STATE-AID REPORTING REQUIREMENTS
    SECTION 14.10. Same as 6th edition except expands the list of entities subject to the reporting requirement. Prohibits more than $120,000 in state funds be used for the annual salary of any one employee of a specified entity beginning in fiscal year 2012-13 (was, no more than $100,000).

    GRASSROOTS SCIENCE PROGRAM
    SECTION 14.11. Same as 6th edition except prohibits more than $120,000 in state funds be used for the annual salary of any one employee of a specified entity beginning in fiscal year 2012-13 (was, no more than $100,000).

    WAKE FOREST INSTITUTE FOR REGENERATIVE MEDICINE/PROFIT SHARING WITH STATE
    SECTION 14.12. Same as 6th edition except prohibits more than $120,000 in state funds be used for the annual salary of any one employee of the Institute beginning in fiscal year 2012-13 (was, no more than $100,000).

    COUNCIL OF GOVERNMENT FUNDS
    SECTION 14.12A. Identical to 6th edition.

    RTI INTERNATIONAL /REPORTING REQUIREMENTS; USE OF STATE FUNDS
    SECTION 14.12.B. Same as 6th edition except prohibits more than $120,000 in state funds be used for the annual salary of any one employee of RTI International beginning in fiscal year 2012-13 (was, no more than $100,000).

    E-NC AUTHORITY TO TRANSFER FEDERAL GRANT FOR BROADBAND MAPPING TO DEPARTMENT OF COMMERCE
    SECTION 14.12C. Same as 6th edition except transfers federal grant to the Department of Commerce (rather than the NC Center for Geographic Information and Analysis).

    REGIONAL ECONOMIC DEVELOPMENT COMMISSIONS ALLOCATIONS
    SECTION 14.13. Same as provision in 4th edition except prohibits more than $100,000 (rather than $120,000) in state funds be used for the annual salary of any one employee of a regional economic development commission.

    BIOFUELS CENTER OF NORTH CAROLINA
    SECTION 14.14.(a) Restores 4th edition allocations for specified activities.
    SECTION 14.14.(b) New provision authorizes Biofuels Center management to reallocate up to ten percent of each of the specified allocations in subsection (a) if such reallocation will advance the mission of the Center.
    SECTION 14.14.(c) Identical to Section 14.14.(b) of 6th edition.
    SECTION 14.14.(d) Identical to Section 14.14.(c) of 6th edition.
    SECTION 14.14.(e) Same as Section 14.14.(d) of 6th edition except prohibits more than $120,000 in state funds be used for the annual salary of any one employee of the Center beginning in fiscal year 2012-13 (was, no more than $100,000).

    NORTH CAROLINA BIOTECHNOLOGY CENTER
    SECTION 14.15. Same as 6th edition except increases total allocation of specified activities to $17,551,710 (was $16,576,615). Increases allocations for job creation to $3,779,721 (was $3,569,736), science and commercialization to $11,360,700 (was $10,729,550), and Center operations to $2,411,289 (was $2,277,329). Also increases limit on use of state funds for the annual salary of any one employee of the Center beginning in fiscal year 2012-13 to $120,000 (was $100,000).

    RURAL ECONOMIC DEVELOPMENT CENTER
    SECTION 14.16. Same as 6th edition except restores 4th edition allocations for all specified activities and increases limit on use of state funds for the annual salary of any one employee of the Rural Center beginning in fiscal year 2012-13 to $120,000 (was $100,000).

    RURAL ECONOMIC DEVELOPMENT CENTER/INFRASTRUCTURE PROGRAM
    SECTION 14.17. Same as 6th edition except restores 4th edition allocation of $16,505,758 to the North Carolina Infrastructure Program.

    OPPORTUNITIES INDUSTRIALIZATION CENTERS FUNDS
    SECTION 14.18. Same as 6th edition except restores 4th edition allocation of $287,280 for distribution to Opportunities Industrialization Centers.

    NC SMALL BUSINESS LENDING ENHANCEMENT
    SECTION 14.19. Deleted.

    RURAL CENTER/RURAL JOBS FUND
    SECTION 14.20. New provision appropriates $5 million in nonrecurring funds each fiscal year of the 2011-13 fiscal biennium for the provision of Rural Jobs Infrastructure Grants to local governments for infrastructure needs including public wastewater systems, public water systems, natural gas availability, fiber availability, building restoration or upfits, and other infrastructure needs as determined by the Rural Center’s board of directors. Provides that a local government is eligible for a grant if it is a rural county or is located in a rural county. Establishes that grant applicants may request up to $5,000 per job created up to a maximum of $500,000 for a project. Requires local government recipient to match the grant on a dollar-for-dollar basis with local resources, and specifies that at least five percent of the grant amount must be matched with cash.
    Provides that grant applicants must document the infrastructure needs to be addressed, specify the number of jobs to be created, document the availability of matching funds, provide evidence that private enterprises will contract to produce the jobs, and provide other information requested by Rural Center. Requires Rural Center to determine in its review of applications that private sector jobs created in conjunction with a grant will not compete unfairly with existing businesses. Elevates the priority of applications for projects in economically distressed areas. Exempts Rural Jobs Infrastructure Grants used for water infrastructure needs from the provisions of GS 143-355.4. Establishes submission requirements for grant applications. Authorizes Rural Center to use up to four percent of the funds appropriated in this section to cover administrative costs of administering the grant program. Prohibits making loans with appropriated funds. Requires Rural Center to report on the progress of the Rural Infrastructure Grant Program by September 1 of each year to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division.

    PART XV. JUDICIAL DEPARTMENT

    All sections identical to 6th edition.

    PART XVI. DEPARTMENT OF JUSTICE

    All sections identical to 6th edition.

    PART XVII. DEPARTMENT OF JUVENILE JUSTICE AND DELINQUENCY PREVENTION

    All sections identical to 6th edition.

    PART XVIII. DEPARTMENT OF CORRECTION

    FEDERAL GRANT REPORTING
    SECTION 18.1. Identical to 6th edition.

    FEDERAL GRANT MATCHING FUNDS
    SECTION 18.2. Identical to 6th edition.

    USE OF CLOSED PRISON FACILITIES
    SECTION 18.3. Identical to 6th edition.

    LIMIT USE OF OPERATIONAL FUNDS
    SECTION 18.4. Identical to 6th edition.

    REIMBURSE COUNTIES FOR HOUSING AND EXTRAORDINARY MEDICAL COSTS FOR INMATES, PAROLEES, AND POST-RELEASE SUPERVISEES AWAITING TRANSFER TO STATE PRISON SYSTEM
    SECTION 18.5. Identical to 6th edition.

    CENTER FOR COMMUNITY TRANSITIONS/CONTRACT AND REPORT
    SECTION 18.6. Identical to 6th edition.

    PAROLE ELIGIBILITY REPORT/MUTUAL AGREEMENT PAROLE PROGRAM/MEDICAL RELEASE PROGRAM
    SECTION 18.7. Identical to 6th edition.

    CRIMINAL JUSTICE PARTNERSHIP
    SECTION 18.8. Identical to 6th edition.

    SWANNANOA CORRECTIONAL CENTER FOR WOMEN
    SECTION 18.9. Identical to 6th edition.

    INMATE MEDICAL COST CONTAINMENT
    SECTION 18.10. Same as 6th edition except directs the Department of Correction to reimburse providers of approved inmate medical services outside the correctional facility the lesser amount of either 70% of the then-current prevailing charge or two times the then-current Medicaid rate for any given service.

    DEPARTMENT OF CORRECTION RULES FOR INMATE LABOR
    SECTION 18.12. Identical to 6th edition.

    REPORT ON PROBATION AND PAROLE CASELOADS
    Section 18.13. Identical to 6th edition.

    REMOVE SUNSET ON CORRECTION ENTERPRISES STATE AND LOCAL EMPLOYEE/RETIREE PURCHASE ALLOWANCE
    SECTION 18.14. Identical to 6th edition.

    PART XIX. DEPARTMENT OF CRIME CONTROL AND PUBLIC SAFETY

    CONSOLIDATE THE DEPARTMENT OF CORRECTION, THE DEPARTMENT OF CRIME CONTROL AND PUBLIC SAFETY, AND THE DEPARTMENT OF JUVENILE JUSTICE AND DELINQUENCY PREVENTION INTO THE DEPARTMENT OF PUBLIC SAFETY
    SECTION 19.1. Same as 6th edition except removes the State Bureau of Investigation and the North Carolina Justice Academy from consolidation within the Department of Public Safety and makes conforming changes throughout the section. Also deletes provision making the Secretary’s appointment subject to confirmation by the General Assembly.

    CONSOLIDATE BUDGET CODES FOR DEPARTMENT OF PUBLIC SAFETY
    SECTION 19.2. Identical to 6th edition.

    MODIFY THE REMITTANCE OF TAXES BASED ON VALUATION OF PROPERTY IN THE BUTNER FIRE AND POLICE PROTECTION DISTRICT
    SECTION 19.3. Rewrites section to require tax collectors of Durham and Granville Counties to remit taxes collected in the Butner Fire and Police Protection District to the Town of Butner rather than to the State Treasurer. Rewrites GS 122C-408(c) to remove the formula for payment by the Town of Butner for service provided by the Butner Public Safety Division of the Department of Crime Control and Public Safety, and to authorize the town and the Department to determine by mutual agreement the amount to be paid by the town. Rewrites GS 122C-411 to increase the basis for payment by the Department of Crime Control and Public Safety for fire protection in the vicinity of Butner from 20¢ to 25¢ per $100 valuation.

    REPORTS ON LAW ENFORCEMENT ACCREDITATION SERVICES
    SECTION 19.4. Identical to 6th edition.

    STUDY THE FEASIBILITY OF ASSESSING A FEE FOR PROVIDING TRAFFIC CONTROL BY THE STATE HIGHWAY PATROL AT SPECIAL EVENTS
    SECTION 19.5. Identical to 6th edition.

    PART XX. DEPARTMENT OF ADMINISTRATION

    STATE ENTITIES TO USE AGENCY FOR PUBLIC TELECOMMUNICATIONS
    SECTION 20.1. Identical to 6th edition.

    TRANSFER OF NC HUMAN RELATIONS COMMISSION FROM DEPARTMENT OF ADMINISTRATION TO OFFICE OF ADMINISTRATIVE HEARINGS
    SECTION 20.1A. Identical to 6th edition.

    STUDY BY THE LEGISLATIVE RESEARCH COMMISSION OF THE DUTIES AND SERVICES OF THE NORTH CAROLINA HUMAN RELATIONS COMMISSION AND THE CIVIL RIGHTS DIVISION OF THE OFFICE OF ADMINISTRATIVE HEARINGS
    SECTION 20.2. Identical to 6th edition.

    DOMESTIC VIOLENCE CENTER FUNDS
    SECTION 20.3. Identical to 6th edition.

    USE OF CAPITAL PROJECT CONTINGENCY FUNDS TO INCREASE THE SPEED AND EFFICIENCY OF THE STATE CONSTRUCTION OFFICE
    SECTION 20.4. Identical to 6th edition.

    OFFICE OF STATE PERSONNEL/STUDY CENTRALIZED HUMAN RESOURCES FOR COUNCIL OF STATE OFFICES
    SECTION 20.5. Identical to 6th edition.

    HUMAN RESOURCES DEVELOPMENT
    SECTION 20.5A. New provision allows $1.5 million from the savings in the employer’s share of contributions under the Federal Insurance Contributions Act on account of reduction in salary to be transferred from the NCFlex FICA Fund to the Office of State Personnel to support program components of the HCM System during 2011-13.

    STATE BOARD OF ELECTIONS AND ETHICS
    SECTION 20.6. Deleted.

    ELIMINATE FUNDING FOR DEVELOPMENT OF SMART CARDS
    SECTION 20.7. Identical to 6th edition.

    PART XXI. DEPARTMENT OF CULTURAL RESOURCES

    TRANSPORTATION MUSEUM SPECIAL FUND
    SECTION 21.1. Identical to 6th edition.

    ROANOKE ISLAND COMMISSION FUNDING/HISTORIC ROANOKE ISLAND FUND
    SECTION 21.2. Identical to 6th edition.

    TRYON PALACE FUNDING
    SECTION 21.3. New provision stating intent of the General Assembly that no state funds will be used to support Tryon Palace Historic Sites and Gardens beginning with the 2014-15 fiscal year. Department of Cultural Resources will report plan for site to become financially self-sufficient by May 1, 2012.

    PART XXII. GENERAL ASSEMBLY

    PED STUDYING ADMINISTRATION OF STATE ATTRACTIONS
    SECTION 22.1. Identical to 6th edition.

    REVISOR OF STATUTES
    SECTION 22.2. Deleted.

    ACCOMMODATING FEDERAL LAW FLEXIBILITY
    SECTION 22.3. New provision amends GS 120-30.9B, stating that if the Attorney General fails to seek approval of the redistricting plan within 30 days of enactment then the Legislative Services Commission may authorize another appropriate person to seek approval of the plan.

    CLIENT DECISIONS
    SECTION 22.4. New provision amending GS 147-17 to add a new subsection (d) providing that the authority of outside counsel employed by a state agency or other entity supported by the state will be allocated between the outside counsel and the client according to Rule 1.2 of the North Carolina Rules of Professional Conduct; where more than one outside counsel is employed, the client will designate in writing which outside counsel possesses final decision-making authority on behalf of the client.

    CONFORMING CHANGE
    SECTION 22.5. New provision amending GS 120-32.6 to exempt the General Assembly from GS 147-17(a) through (c), which requires the Attorney General to act as counsel for all state agencies and limits hiring of outside counsel by state agencies unless approved by the Governor.

    PART XXIII. DEPARTMENT OF INSURANCE

    PERMISSIBLE USE OF INSURANCE REGULATORY FUND
    SECTION 23.1. Identical to 6th edition.

    NO BUDGET REDUCTION FOR CERTAIN STATE FIRE PROTECTION GRANT FUND RECIPIENTS
    SECTION 23.2. Identical to 6th edition.

    PART XXIV. OFFICE OF ADMINISTRATIVE HEARINGS

    ACCESS TO REGISTER AND CODE
    SECTION 24.1. Identical to 6th edition.

    PART XXV. OFFICE OF STATE BUDGET AND MANAGEMENT

    TRANSFER STATE FIRE PROTECTION GRANT FUND
    SECTION 25.1. Identical to 6th edition.

    NC SYMPHONY FUNDING
    SECTION 25.2. Identical to 6th edition.

    PART XXVI. STATE BOARD OF ELECTIONS

    NO EXPENDITURE OF HAVA TITLE II FUNDS FOR STATE FY 2011-2012
    SECTION 26.1. Identical to 6th edition.

    ALLOWING COUNTY BOARDS OF ELECTION TO EMPLOY PERSONNEL TO MAINTAIN VOTING SYSTEMS
    SECTION 26.3. Identical to 6th edition.

    PART XXVI-A. STATE CONTROLLER

    OVERPAYMENTS AUDIT
    SECTION 26A.1. Identical to 6th edition.

    PART XXVII. DEPARTMENT OF THE STATE TREASURER

    LOCAL GOVERNMENT UNIT POSITIONS
    SECTION 27.1. Identical to 6th edition.

    PART XXVIII. DEPARTMENT OF TRANSPORTATION

    CASH FLOW HIGHWAY FUND AND HIGHWAY TRUST FUND APPROPRIATION
    SECTION 28.1.(a) Identical to 6th edition.

    CHANGES TO HIGHWAY FUND CERTIFIED BUDGET TO INCREASE TRANSPARENCY
    SECTION 28.2. Identical to 6th edition.

    REMOVE PILOT DESIGNATION FOR PUBLIC-PRIVATE PARTNERSHIPS
    SECTION 28.3. Identical to 6th edition.

    REMOVE CAP ON DESIGN-BUILD PROJECTS
    SECTION 28.4. Identical to 6th edition.

    REQUEST FOR INFORMATION RELATED TO SPONSORSHIPS
    SECTION 28.5. Same as Section 28.5 in 4th edition, except directs DOT to issue a request for information from potential sponsors for specified DOT facilities.

    SMALL CONSTRUCTION AND CONTINGENCY FUNDS
    SECTION 28.6. Identical to 6th edition.

    ADJUST SECONDARY ROAD CONSTRUCTION AND SECONDARY ROAD MAINTENANCE
    SECTION 28.7.(a) Same as 6th edition, except adds new requirement providing that differences in funding amounts that otherwise would have been allocated from the Highway Fund for secondary road construction and maintenance and the amount allocated in the base budgets for the FY 2011-2013 biennium will be allocated to highway maintenance.
    SECTION 28.7.(b) Changes subsection to provide that funding allocated from the Highway Trust Fund for secondary road construction and maintenance will not increase over the amounts allocated in the base budgets for the FY 2011-2013 biennium, and any amounts that otherwise would have been allocated above the base budgets from the Highway Trust Fund will be allocated to urban loop projects.

    SYSTEM PRESERVATION FUNDS PREFERENCE FOR DEFICIENT BRIDGES
    SECTION 28.8. Identical to 6th edition.

    INCREASE DOT PRIVATIZATION
    SECTION 28.9. Identical to 6th edition.

    STATE STREET-AID TO MUNICIPALITIES (POWELL BILL) ADJUSTMENTS
    SECTION 28.10. Identical to 6th edition.

    STATE AID TO RAILROADS TRANSPARENCY
    SECTION 28.12. Identical to 6th edition.

    PROGRAM EVALUATION DIVISION TO STUDY NORTH CAROLINA RAILROAD
    SECTION 28.12A. Identical to 6th edition.

    STATE AID TO SHORT-LINE RAILROADS
    SECTION 28.13. Identical to the provision in 4th edition.

    REPORT, CONSULTATION, AND APPROVAL OF RAIL PROJECTS
    SECTION 28.15. Same as 6th edition, except makes DOT’s acceptance of federal rail funds subject to approval by the General Assembly if the amount of state matching funds or the reasonably expected amount of future annual maintenance and operational costs exceeds $5 million (was $20 million).

    PROHIBIT RAIL DIVISION FROM PROVIDING CONVENIENCE ITEMS FREE OF CHARGE ON ALL PASSENGER RAIL SERVICE
    SECTION 28.16. Identical to 6th edition.

    STUDY MANNS HARBOR REPAIR AND PAINT SHOP
    SECTION 28.16A. Deleted.

    ELIMINATE AERONAUTICS COUNCIL, BICYCLE COMMITTEE, AND RAIL COUNCIL
    SECTION 28.17. Identical to 6th edition.

    AVIATION DIVISION APPROPRIATION
    SECTION 28.17A. Identical to 6th edition.

    FLEXIBLE USE OF FUNDS TO LEVERAGE FEDERAL FUNDS FOR RURAL PUBLIC TRANSPORTATION
    SECTION 28.18. Identical to 6th edition.

    MAXIMIZE LEVERAGE OF FEDERAL PUBLIC TRANSPORTATION OPERATING AND CAPITAL FUNDS FOR LOCAL PUBLIC TRANSPORTATION SYSTEMS
    SECTION 28.19. Identical to 6th edition.

    STREAMLINE GRANT PROCESS AND CONSOLIDATE GRANTS FOR PUBLIC TRANSPORTATION
    SECTION 28.20. Identical to 6th edition.

    STUDY REGIONAL CONSOLIDATION OF TRANSIT SYSTEMS
    SECTION 28.21. Identical to 6th edition.

    BLUE LINE EXTENSION AND RED LINE COMMUTER RAIL PROJECTS
    SECTION 28.21A. Deleted.

    FLEXIBLE USE OF FUNDS FOR DIVISION OF MOTOR VEHICLES FOR FISCAL YEARS 2011-2012 AND 2012-2013
    SECTION 28.23. Identical to 6th edition.

    COMPETITIVE BIDDING OF LICENSE PLATE AGENCY CONTRACTS
    SECTION 28.23A. Deleted.

    CONFORMING CHANGES RELATED TO DMV AUDITORS AND CHANGES RELATED TO DMV HEARINGS
    SECTION 28.23B. Identical to 6th edition.

    STUDY EXEMPTING MOTOR VEHICLES FROM EMISSIONS INSPECTIONS
    SECTION 28.24. Same as Section 28.24 in 4th edition except directs DMV to lead a study to examine exemption for both the three newest model year vehicles and all vehicles.

    DEPARTMENT OF REVENUE TO REPORT ON MOTOR FUELS TAX AUDITOR AND INVESTIGATOR PERFORMANCE
    SECTION 28.25. Identical to 6th edition.

    REDUCE ADMINISTRATIVE TRANSFERS AND REDIRECT LEAKING UNDERGROUND STORAGE TANK FUNDING TO HIGHWAY FUND FOR SYSTEM PRESERVATION
    SECTION 28.25A. Identical to 6th edition.

    STUDY REIMBURSEMENT PROCESS FOR DEPARTMENT OF CORRECTION LITTER PICKUP
    SECTION 28.26. Identical to 6th edition.

    STATE HIGHWAY PATROL FUNDS TRANSFER
    SECTION 28.27.(a) Same as 6th edition except changes amount of funds transferred to $196,849,542 (was $193,585,434).
    SECTION 28.27.(b) Same as 6th edition except changes amount of funds transferred to $188,209,049 (was $189,859,507).
    SECTION 28.27.(c) Identical to 6th edition.
    SECTION 28.27.(d) Identical to 6th edition.

    STATE HIGHWAY PATROL POSITIONS AND MANAGEMENT FLEXIBILITY
    SECTION 28.28. Same as 6th edition except changes the amount of recurring management flexibility budget reduction in subsection (c) to $2,325,484 in FY 2011-12 (was $5,589,592), and $10,373,350 in FY 2012-13 (was $8,722,892).

    HIGHWAY TRUST FUND MONEY FOR VISITOR CENTERS; SPECIAL REGISTRATION PLATES MONEY FOR VISITOR CENTERS
    SECTION 28.30. Same as Section 28.30 in 4th edition except directs any additional funds collected from the new fee to be credited to the Highway Fund (rather than the Mobility Fund) to be allocated and used for urban loop projects.

    MAINTAIN CURRENT LEVEL OF ADMINISTRATIVE FUNDING FROM HIGHWAY TRUST FUND; SEND SAVINGS TO URBAN LOOPS
    SECTION 28.31. Same as 6th edition except directs the difference between the amount that otherwise would have been allocated to Highway Trust Fund administrative expenses and the amounts for administrative expenses in the base budgets for the 2011-2013 biennium to be allocated to urban loop projects.

    ADMINISTRATIVE FUND BALANCE TRANSFERRED TO URBAN LOOPS
    SECTION 28.31A. New provision reallocates $25 million of the accumulated fund balance for administrative costs associated with the Highway Trust Fund to urban loop projects.

    SCHOOL BUS FUNDING FROM UNEXPENDED MID-CURRITUCK BRIDGE GAP FUNDS AND URBAN LOOP FUNDS; REDUCE GARDEN PARKWAY GAP FUNDS AND TRANSFER FUNDING TO URBAN LOOPS PROGRAM
    SECTION 28.32.(a) Identical to 6th edition.
    SECTION 28.32.(b) Identical to 6th edition.
    SECTION 28.32.(c) Deleted.
    SECTION 28.32.(d) Deleted.
    SECTION 28.32.(e) Deleted.
    SECTION 28.32.(f) Deleted.
    SECTION 28.32.(g) Deleted.
    SECTION 28.32.(h) Deleted.
    SECTION 28.32.(i) Deleted.
    SECTION 28.32.(c) (new) Same as 6th edition except increases amount of annual appropriation to the North Carolina Turnpike Authority from the Highway Trust Fund to $64 million (previously $49 million) (this subsection, previously (j) now renumbered as subsection (c)). Restores $15 million for the Mid-Currituck Bridge.
    SECTION 28.32.(d) (new) New provision, effective for 2012-13 only, amends GS 136-176(62) to appropriate $81.5 million to the Authority. $17.5 million of that amount will be used for the Garden Parkway.
    SECTION 28.32.(e) (new) Same as 6th edition except directs DOT to study and develop up to eight Turnpike Projects (was six) by restoring the Garden Parkway and the Mid-Currituck Bridge (this subsection (previously (k), now renumbered as subsection (e)).

    MOBILITY FUND PROJECT SELECTION CRITERIA ADJUSTMENT; MOBILITY FUND MONEY PLACED IN RESERVE ACCOUNT FOR FY 2012-2013 AND FUTURE FISCAL YEARS
    SECTION 28.33. Same as Section 28.33 in the 4th edition, except adds two new subsections:
    SECTION 28.33(c) New subsection amends GS 105-187.9(c) to provide that $45 million annual transfer of tax revenues will be deposited in the DOT Prioritization Reserve account within the Trust Fund (was, deposited in the Mobility Fund). Effective July 1, 2012.
    SECTION 28.33(d) New subsection amends GS 105-187.9(c) to increase annual transfer of tax revenues deposited in DOT Prioritization Reserve account within the Trust Fund to $58 million (was $45 million). Effective July 1, 2013.

    REMOVE URBAN LOOP PROJECTS FROM STATUTE AND ALLOW DEPARTMENT OF TRANSPORTATION TO DEFINE AND PRIORITIZE URBAN LOOP PROJECTS
    SECTION 28.34. Identical to 6th edition.

    MODIFY DEPARTMENT OF TRANSPORTATION REPORTING REQUIREMENTS
    SECTION 28.35. Identical to 6th edition.

    COST-EFFICIENT TIRE RETREADS ON STATE VEHICLES AND SCHOOL BUSES
    SECTION 28.36. Identical to 6th edition.

    DRIVER EDUCATION REFORM
    SECTION 28.37. Same as 6th edition except allows students receiving instruction through a home school to participate in the driver education program.

    ROAD IMPROVEMENTS FOR LAWYERS ROAD IN MECKLENBURG AND UNION COUNTIES
    SECTION 28.38. New provision directs DOT to use up to $2 million of non-highway maintenance funds for improvements to Lawyers Road in Mecklenburg and Union counties between NC Highway 51 and Interstate 485.

    PART XXIX. SALARIES AND BENEFITS

    GOVERNOR AND COUNCIL OF STATE
    SECTION 29.1. Identical to 6th edition.

    NONELECTED DEPARTMENT HEAD
    SECTION 29.2. Identical to 6th edition.

    CERTAIN EXECUTIVE BRANCH OFFICIALS
    SECTION 29.3. Identical to 6th edition.

    JUDICIAL BRANCH
    SECTION 29.4. Identical to 6th edition.

    GENERAL ASSEMBLY
    SECTION 29.5. Identical to 6th edition.

    COMMUNITY COLLEGES PERSONNEL
    SECTION 29.6. Identical to 6th edition.

    UNIVERSITY OF NORTH CAROLINA SYSTEM
    SECTION 29.7. Identical to 6th edition.

    SALARY ADJUSTMENTS FOR SPECIAL CIRCUMSTANCES ONLY/NO AUTOMATIC INCREASES
    SECTION 29.8. Same as 6th edition, except adds to subsection (a)(2) authorization for retention adjustments, and adds a new subsection (a)(3) authorizing local supplementation for employees of the judicial branch authorized by GS 7A-300.1.

    MOST STATE EMPLOYEES
    SECTION 29.9. Identical to 6th edition.

    ALL STATE-SUPPORTED PERSONNEL/NO SALARY INCREASES
    SECTION 29.10. Identical to 6th edition.

    STATE AGENCY TEACHERS’ COMPENSATION
    SECTION 29.11. Identical to 6th edition.

    TEACHER SALARY SCHEDULES
    SECTION 29.12. Same as the provision in 4th edition (including restoring the Monthly Salary Schedule for “M” teachers with NBPTS Certification which was reduced in the 6th edition).

    SCHOOL-BASED ADMINISTRATOR SALARY SCHEDULE
    SECTION 29.13. Identical to 6th edition.

    CENTRAL OFFICE SALARIES
    SECTION 29.14. Identical to 6th edition.

    NONCERTIFIED PERSONNEL SALARIES
    SECTION 29.15. Identical to 6th edition.

    ALL FURLOUGHS PROHIBITED EXCEPT AS ORDERED TO BALANCE THE BUDGET/BENEFITS PROTECTION FOR FURLOUGHED PERSONNEL
    SECTION 29.18.(a) Identical to 6th edition.
    SECTION 29.18.(b) Same as 6th edition except requires the UNC Board of Governors, the State Board of Community Colleges, and local public school boards of education to petition the Governor in order to furlough employees.
    SECTION 29.18.(c) Same as 6th edition except adds additional language clarifying that a furlough of state employees must be effected in accordance with subsection (b) of the provision if necessary to achieve economies in expenditures.
    SECTION 29.18.(d) Identical to 6th edition.
    SECTION 29.18.(e) Identical to 6th edition.

    MONITOR COMPLIANCE WITH FREEZE ON MOST SALARY INCREASES
    SECTION 29.19. Identical to 6th edition.

    COMPREHENSIVE REVIEW FOR REFORM OF PUBLIC EMPLOYEE COMPENSATION PLANS/RECOMMENDATIONS FOR LEGISLATION BY MAY 1, 2012
    SECTION 29.20. Same as 6th edition, except adds new subsection (b) directing a consulting firm (if any) hired by the Legislative Services Commission to report its progress to Fiscal Research and Program Evaluation Divisions every 90 days, and renumbers remaining subsections accordingly.

    ESTABLISH COMPENSATION ADJUSTMENT AND PERFORMANCE PAY RESERVE IN ANTICIPATION OF COMPENSATION RECOMMENDATIONS
    SECTION 29.20A. Same as 6th edition except changes name of Salary Adjustment and Performance Pay Reserve to Compensation Adjustment and Performance Pay Reserve.

    ESTABLISH SEVERANCE EXPENDITURE RESERVE
    SECTION 29.21. Identical to 6th edition.

    REPEAL REDUCTION-IN-FORCE PRIORITY CONSIDERATION UNDER THE STATE PERSONNEL ACT
    SECTION 29.21A. Identical to 6th edition.

    JUDICIAL DEPARTMENT EXPENSE AMENDMENTS
    SECTION 29.21B. Deleted.

    STATE PERSONNEL INFORMATION AMENDMENT
    SECTION 29.21C. Same as 6th edition except adds additional requirement that access to the BEACON/HR payroll system by the Program Evaluation Division will only be through the Division Director and two employees designated by the Division Director.

    SALARY RELATED CONTRIBUTIONS
    SECTION 29.22(a) Identical to 6th edition.
    SECTION 29.22(b) New subsection directing the Boards of Trustees of the Teachers’ and State Employees’ Retirement System, the Consolidated Judicial Retirement System, and the Firemen’s and Rescue Squad Workers’ Pension Fund to adopt a 12-year liquidation period for all unfunded accrued liability, and directs the State Treasurer to do so for the North Carolina National Guard Pension Fund.
    SECTION 29.22(c) Same as 6th edition except makes changes to employer contribution rates for FY 2011-2012 as follows: 13.12% for Teachers and State Employees (was 13.62%); 18.12% for State Law Enforcement Officers (was 18.62%); and 30.05% for Consolidated Judicial Retirement System (was 31.54%).
    SECTION 29.22(d) Same as 6th edition except makes changes to employer contribution rates for FY 2012-2013 as follows: 14.31% for Teachers and State Employees (was 15%); 19.31% for State Law Enforcement Officers (was 20%); and 31.70% for Consolidated Judicial Retirement System (was 33.51%).
    SECTION 29.22(e) Identical to 6th edition.
    SECTION 29.22(f) Identical to 6th edition.

    REPORTING OF POSITION ELIMINATIONS
    SECTION 29.22A. Deleted.

    LIMIT STATE ABORTION FUNDING/HEALTH PLAN/INSURANCE
    SECTION 29.23. Same as 6th edition except codifies provision as new GS 143C-6-5.5 and makes conforming amendment to GS 135-48.50(l).

    PERMANENTLY EXEMPT PARTICIPANTS IN THE UNIVERSITY OF NORTH CAROLINA PHASED RETIREMENT PROGRAM FROM THE RESTRICTIONS ON RETURNING TO WORK
    SECTION 29.24. Same as 6th edition except rewites amendment to GS 135-1(20) to clarify that full-time UNC faculty may return to work after retirement notwithstanding the six-month waiting period so long as the faculty member immediately enters the University’s Phased Retirement Program for Tenured Faculty.

    REDUCE THE REQUIRED BREAK IN SERVICE FOR RETIREES OF THE TEACHERS’ AND STATE EMPLOYEES’ RETIREMENT SYSTEM TO RETURN TO WORK WITHOUT LOSING RETIREMENT BENEFITS
    SECTION 29.25. Deleted.

    PROVIDE FOR VESTING RECIPROCITY BETWEEN THE STATE AND LOCAL EMPLOYEES’ RETIREMENT SYSTEMS AND THE OPTIONAL RETIREMENT PROGRAM FOR STATE INSTITUTIONS OF HIGHER LEARNING
    SECTION 29.26. Identical to 6th edition.

    ENABLE THE UNC HEALTH CARE SYSTEM TO OFFER THE OPTIONAL RETIREMENT PROGRAM (ORP) AS A RETIREMENT OPTION
    SECTION 29.27. Identical to 6th edition.

    PART XXX. CAPITAL APPROPRIATIONS

    GENERAL FUND CAPITAL APPROPRIATIONS/INTRODUCTION
    SECTION 30.1. Identical to 6th edition.

    CAPITAL APPROPRIATIONS/GENERAL FUND
    SECTION 30.2. Identical to 6th edition.

    WATER RESOURCES DEVELOPMENT PROJECTS
    SECTION 30.3.(a) Same as 4th edition, including adjustment to allow total allocated funds to provide a state match for an estimated $23,449,000 (was $20,749,000) in federal funds and adjusting funding for the following projects: $1.225 million for Manteo Old House Channel (was, $0); $275,000 for Currituck Sound Environmental Restoration Study (was, $0); $500,000 million for state-local projects (was, $3 million); and $1 million for Agricultural Water Resources Assistance Program (was $0).
    SECTION 30.3.(b) Identical to 6th edition.
    SECTION 30.3.(c) Identical to 6th edition.
    SECTION 30.3.(d) Identical to 6th edition.
    SECTION 30.3.(e) Identical to 6th edition.

    NON GENERAL FUND CAPITAL IMPROVEMENT AUTHORIZATIONS
    SECTION 30.4. Identical to 6th edition.

    REPAIRS AND RENOVATIONS RESERVE ALLOCATION
    SECTION 30.5. Identical to 6th edition.

    PROCEDURES FOR DISBURSEMENT OF CAPITAL FUNDS
    SECTION 30.6. Identical to 6th edition.

    UNC NON-GENERAL FUND CAPITAL PROJECTS
    SECTION 30.7. Identical to 6th edition.

    VANCE-GRANVILLE COMMUNITY COLLEGE BOND FUNDS
    SECTION 30.9. Identical to 6th edition.

    ALLOW THE UNIVERSITY OF NORTH CAROLINA BOARD OF GOVERNORS TO APPROVE THE PLANNING, AUTHORIZATION, AND FUNDING OF CAPITAL PROJECTS FROM NON-GENERAL FUND SOURCES
    SECTION 30.10. Identical to 6th edition.

    AUTHORIZE THE UNIVERSITY OF NORTH CAROLINA BOARD OF GOVERNORS TO ALLOCATE OR REALLOCATE FUNDS TO REPAIRS AND RENOVATIONS PROJECTS
    SECTION 30.11. Identical to 6th edition.

    WAIVE THE REQUIREMENT FOR A CAPITAL PROJECT FEASIBILITY DETERMINATION FOR CAPITAL PROJECTS OF THE UNIVERSITY OF NORTH CAROLINA FOR WHICH ADVANCE PLANNING HAS NOT BEEN UNDERTAKEN
    SECTION 30.12. Identical to 6th edition.

    JOINT LEGISLATIVE OVERSIGHT COMMITTEE ON CAPITAL IMPROVEMENTS SHALL EXAMINE ADEQUACY OF PLANNING FOR LONG-TERM STATE CAPITAL NEEDS
    SECTION 30.13. Identical to 6th edition.

    PART XXXI. FEES

    EDUCATION/DRIVER EDUCATION COURSE FEE
    SECTION 31.1. New provision amends GS 115C-216 to authorize local boards of education to charge students participating in a driver education program a fee of up to $45. ¶
    EDUCATION/STATE BOARD AUTHORITY TO ESTABLISH GED TESTING FEES
    SECTION 31.2. Identical to 6th edition.

    NER/COMMERCE/SET REGULATORY FEE FOR UTILITIES COMMISSION
    SECTION 31.4. Identical to 6th edition.

    FEE TO ADVERTISE IN WELCOME CENTERS
    SECTION 31.4A. Deleted.

    NER/AGRICULTURE/INCREASE FEES FOR PET SHOPS, AUCTIONS, KENNELS, AND DEALERS
    SECTION 31.5. Identical to 6th edition.

    NER/AGRICULTURE/FEES FOR OUT-OF-STATE SOIL TESTS AND EXPEDITED SOIL TESTS
    SECTION 31.7. Identical to 6th edition.

    NER/AGRICULTURE/TECHNICAL CORRECTIONS REGARDING COMMERCIAL FERTILIZER INSPECTION FEE, PESTICIDE TECHNICIAN IDENTIFICATION CARD RENEWAL FEE, AND PESTICIDE DEALER LICENSE RENEWAL FEE
    SECTION 31.8. Identical to 6th edition.

    NER/AGRICULTURE/INCREASE AGRICULTURAL LIMING MATERIALS TONNAGE FEES
    SECTION 31.9. Identical to 6th edition.

    NER/AGRICULTURE/INCREASE ANTIFREEZE DISTRIBUTION REGISTRATION FEE
    SECTION 31.10. Identical to 6th edition.

    NER/ENVIRONMENT/REDUCE PORTION OF CERTIFICATE OF TITLE FEES CREDITED TO MERCURY SWITCH REMOVAL ACCOUNT
    SECTION 31.11. Identical to 6th edition.

    LOCALS TO RECEIVE LARGER PORTION OF FOOD AND LODGING FEES
    SECTION 31.11A. Identical to 6th edition.

    NER/ENVIRONMENT/ADDITIONAL USES OF HAZARDOUS WASTE FEES
    SECTION 31.15. Identical to 6th edition.

    NER/NATURAL RESOURCES/NO NEW FEES FOR PARKING IN STATE PARKS
    SECTION 31.22. Identical to 6th edition.

    JPS/AOC/INCREASE CERTAIN COURT COSTS
    SECTION 31.23. Same as 6th edition except changes to $1.50 (was $2.05) the amount to be remitted from various court fees to the North Carolina State Bar for the support of legal services programs; and deletes amendment to new provision in GS 7A-307(a)(4) specifying that the $20 fee must accompany any filing requiring a notice of hearing.

    JPS/AOC/COMMUNITY MEDIATION CENTERS/WORTHLESS CHECK PROGRAMS
    SECTION 31.24. Identical to 6th edition.

    JPS/AOC/INCREASE INTERSTATE COMPACT FEE
    SECTION 31.25. Identical to 6th edition.

    JPS/AOC/CONTINGENT COURT COST INCREASES FOR COUNTIES
    SECTION 31.26. Identical to 6th edition.

    LABORATORY FACILITIES FEE EXPANSION
    SECTION 31.26A. Identical to 6th edition.

    GENGOV/INS/SET INSURANCE REGULATORY CHARGE
    SECTION 31.27. Identical to 6th edition.

    INVESTMENT COMPANY NOTICE FILING FEE
    SECTION 31.27A. Identical to 6th edition.

    RAISE PARKING RATES
    SECTION 31.27B. Identical to 6th edition.

    TRANSPORTATION/DIVISION OF MOTOR VEHICLES BULK DATA
    SECTION 31.29. Identical to 6th edition.

    TRANSPORTATION/FERRY DIVISION TOLLING
    SECTION 31.30. Same as 6th edition except prohibits establishing tolls for the Ocracoke/Hatteras Ferry and the Knotts Island Ferry.

    PART XXXI-A. FINANCE PROVISIONS

    USE ADJUSTED GROSS INCOME AS STARTING POINT FOR CALCULATION OF STATE INCOME TAX AND PROVIDE TAX RELIEF FOR SMALL BUSINESS
    SECTION 31A.1. Same as 2nd edition of HB 619, Job Creation Act of 2011, summarized in Daily Bulletin on May 26, 2011, except removes sunset provision on amendment to proposed GS 105-134.6(b)(22).
    Deletes amendments to GS 105-134.2, which reduced the individual income tax rate.

    ELIMINATE DEDUCTION FOR SEVERANCE WAGES AND CREDIT FOR OYSTER SHELLS
    SECTION 31A.2. Deleted.

    FRANCHISE TAX BASE MODIFICATIONS
    SECTION 31A.2. New provision amending GS 105-122(b)(2) to add amortization of intangible assets to the franchise tax base. Effective for taxable years beginning on or after January 1, 2007.

    ELIMINATE SALES TAX EXEMPTION FOR CERTAIN NUTRITIONAL SUPPLEMENTS AND THE ENERGY STAR TAX HOLIDAY
    SECTION 31A.3. Deleted.

    PART XXXII. MISCELLANEOUS PROVISIONS

    STATE BUDGET ACT APPLIES
    SECTION 32.1. Identical to 6th edition.

    MOST TEXT APPLIES ONLY TO THE 2011 2013 FISCAL BIENNIUM
    SECTION 32.2. Identical to 6th edition.

    EFFECT OF HEADINGS
    SECTION 32.3. Identical to 6th edition.

    COMMITTEE REPORT
    SECTION 32.4. Same as 6th edition except references the Senate Appropriations Committee Report, dated May 31, 2011, and references distribution of the Committee Report in the House of Representatives.

    SEVERABILITY CLAUSE
    SECTION 32.5. Identical to 6th edition.

    EFFECTIVE DATE
    SECTION 32.6. Identical to 6th edition.


  • Summary date: May 26 2011 - View summary

    Amendments from the Senate Appropriations Committee meeting on 5/25/11 make the following changes to 5th edition.
    Amendment #6 creates new SECTION 7.1A.(d1) directing community colleges to generate budget FTE for instruction provided through Career and College Promise. Makes a conforming change to Section 7.1A.(e).
    Amends Section 13.3.(j) to rewrite GS 143-300.8 to also include any local health department sanitarian enforcing rules of the Environmental Management Commission under the supervision of the Department of Health and Human Services as an entity defended by the Attorney General and protected from liability, as specified. Provides that the Department of Health and Human Services must pay any judgment against the sanitarian, or any settlement on its behalf. Amends Section 13.3.(y) by rewriting GS 90A-51 to include milk and dairy sanitation within environmental health practice. Deletes Section 13.10, which concerns well testing. Amends Section 14.12A.(a) to increase funds in 2012-13 that the Department of Commerce must use as provided in the section from $243,187 to $343,187. Deletes Section 31.27C concerning statewide information technology procurement. Makes other technical changes.
    Amendment #7 amends Section 6.11.(d) to add a new subsection (b) providing that any monies paid into the North Carolina State Specific Account from the Disputed Payments Account on account of the Non-Participating Manufacturers that would have been transferred to The Golden L.E.A.F., Inc., or to the trust funds established in accordance with (a)(2) of the provision be deposited in the General Fund Account of the Settlement Reserve Fund. Makes conforming change. Creates new SECTION 6.11.(g) providing that 50% of the above referenced monies be transferred to the General Fund Account within the Settlement Reserve Fund.
    Creates new SECTION 6.11.(h) directing the Attorney General to notify the court in a specified lawsuit, and other specified parties of the actions set forth by subsection (g). Rewrites GS 143C-9-3 to add new subsection (c1) to establish a General Fund Account in the Settlement Reserve Fund; directs how the General Fund Account is funded, and directs the State Controller to transfer all funds in the General Fund Account to the General Fund.
    Amendment #8 creates a new section to read:
    TRANSFER OF FEDERAL AGRICULTURAL EDUCATION FUNDS
    SECTION 7.15. Directs the Agricultural Education Program in the Department of Agricultural and Extension Education at North Carolina State University to develop secondary agricultural education curricula (as detailed) and recommend such curricula to the State Board of Education, which must adopt the curricula for inclusion in the Standard Course of Study. Provides for the transfer of a prorated share of funds from all federal Career and Technical Education funds available for state-level usage to the Agricultural Education and FFA Program housed in the Department of Agricultural and Extension Education at North Carolina State University.
    Amendment #9 replaces SECTION 8.18.(b) rewriting GS 150B-1 by adding a new subsection to provide that no Article in GS Chapter 150B, except Article 4, applies to the State Board of Community Colleges.
    Creates new SECTION 8.18.(b1) which repeals GS 115D-80. Makes technical change to Section 20.1.
    Amendment #10 deletes Section 7.22.(g) from the previous edition and replaces it with a new SECTION 7.22.(g), requiring the State Board of Education to direct NCVPS to develop a plan, which it must submit by September 15, 2011, to generate revenue from the sale of courses to out-of-state educational entities. Directs that revenue generated by NCVPS be used to offset instructional costs to local school administrative units and charter schools. Creates new SECTION 7.22.(l), rewriting GS 66-58(c) to provide that the sale by the State Board of Education of NCVPS courses to home schools, private schools, and out-of-state educational entities does not violate the prohibition against the selling of merchandise or services by governmental units.
    Amendment #11 amends Section 9.6.(b) to delete the University of North Carolina School of Arts from those entities for which state funds may not be reduced by more than 15% in allocating management flexibility reduction. Amends Section 9.6.(c) to add the following to those entities for which no reduction in state funds may be made in allocating management flexibility reduction: (1) Any special responsibility constituent institution which has the basic type Carnegie classification of “Special Forces Institution” and (2) Any special responsibility constituent institution which has the basic type Carnegie classification of “Baccalaureate-Arts and Science” and which has a total undergraduate and graduate fall 2010 FTE enrollment that exceeds 3.250 FTE.
    Amendment #12 amends Section 10.35.(b) to remove the term “owned and operated” when referring to state hospitals.
    Amendment #13 creates the following new section:
    HOME CARE AGENCY LICENSURE MORATORIUM IN HOME AIDE SERVICES
    SECTION 10.49A. Provides, effective July 1, 2011, and for a period of three years, the Department of Health and Human Services (DHHS) may not issue any licenses for home care agencies as defined in GS 131E-136(2) that intend to offer in-home aide services. Provides DHHS is not restricted from issuing licenses to certified home health agencies as defined in GS 131E-176(12) that intend to offer in-home aid services, or to agencies that need a new license for an existing home care agency being acquired. Provides certain exceptions to the provisions.
    Amendment # 14 amends Section 10.11.(d) to provide additional specifications the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services must review when reducing the Community Service Fund by $25 million for the 2011-12 fiscal year as directed by the section.
    Amendment #15 amends Section 10.16 to direct that the Secretary of the Department of Health and Human Services eliminate up to 250 full time equivalent positions that have been vacant since July 1, 2010.
    Amendment #16 creates new SECTION 10.47.(e) directing the Department of Health and Human Services (Department), in collaboration with Community Care of North Carolina and Local Management Entities (LMEs), to ensure the effective integration of behavioral health and physical health services for Medicaid recipients. Directs the Department to amend contracts between the Department and LMEs and between the Department and Community Care of North Carolina to include effectiveness measures regarding data sharing, roles and responsibilities, best practices, and budgetary savings to address integration and collaboration of behavioral and physical health.
    Amendment #19 amends Section 11.7 to direct the Department of Agriculture and Consumer Services to reclassify one (previously three) vacant positions within the Department. Makes conforming change to section title.
    Amendment #20 amends Section 13.26.(c) to include land acquisition and conservation easements to those items certain monies from the Clean Water Management Trust Fund may be used for. Makes a conforming change.
    Amendment #21 amends Section 13.25.(c) by rewriting GS 143A-65.1 to include care of the State recreational forests to those duties charged to the Department of Agriculture and Consumer Services. Makes technical and conforming changes to Section 13.25.(i) and Section 13.25.(o). Amends Section 13.25.(o) to create new GS 106-857 designating DuPont State Forest as a State Recreational Forest (Forest). Details how and for what purpose the Department must manage the Forest; directs the Department to adopt a land management plan for the Forest; provides under what circumstance, the Department may cut and remove timber with respect to the Forest; how the Department may sell, lease or exchange Forest property; and how the department may acquire lands adjacent to the Forest. Provides for the construction of public facilities and allows for the collection of reasonable fees for hunting or fishing in the forest. Allows the Department to grant private individuals or companies concessions for operation and management of the forest. Directs the Department to adopt rules for operation and management of the forest in consultation with interested parties. Details reporting requirements.
    Amendment #22 creates the following new section:
    OTHER MATTERS REGARDING THE TRANSFER OF TWO DENR DIVISIONS TO THE DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES
    SECTION 13.25A. Directs DENR to transfer at least four central business office staff of DENR to the Department of Agriculture and Consumer Services. Provides details regarding such transfers. Directs the Attorney General to continue providing legal counsel and support to the Division of Forest Resources and Division of Soil and Water Conservation (collectively, the Divisions) after these Divisions are transferred from DENR to the Department of Agriculture and Consumer Services. Allows office staff from the Divisions to occupy current office space after such transfer. Directs DENR and the Department of Agriculture and Consumer Services to enter into a memorandum of understanding concerning the sharing of existing databases and any software programs affected by the transfer of the Divisions to assure the uninterrupted continuation of services during and after the transfer of the Divisions.
    Amendment #23 amends Section 14.16.(a) to increase the allocation to Water/Sewer/Business Development Matching Grants from $662,960 per fiscal year to $1,064,712 per fiscal year; makes a conforming change.
    Amendment #25 amends Section 24.1. by rewriting GS 150B-21.24, requiring the Codifier of Rules to make the North Carolina Administrative Code available on the Internet at no charge.
    Amendment #27 creates the following new section:
    REPORTING OF POSITION ELIMINATIONS
    SECTION 29.22A. Details the reporting requirements regarding position eliminations for the Office of State Personnel, Administrative Office of the Courts, the Legislative Services Officer, the Department of Public Instruction, the North Carolina Community College System, and the University of North Carolina.

    H 242. NAT. GAS/BONDS/FEES/STUDIES. Filed 3/7/11. House committee substitute makes the following changes to 2nd edition.
    Amends GS 113-395 to increase the well drilling permit fee to $3,000 (was, $1,500) per well. Directs the Department of Environment and Natural Resources (DENR) to report the findings and recommendations from its study on oil and gas exploration and the use of directional and horizontal drilling and hydraulic fracturing to the Environmental Review Commission by February 1, 2012 (was, September 1, 2011). Expands and clarifies issues to be included in the study. Appropriates $100,000 from the General Fund to DENR for 2011-12 to complete the study and required public hearings. Makes clarifying changes, and conforming changes to the bill title.


  • Summary date: May 25 2011 - View summary

    Senate committee substitute makes the following changes to 4th edition. The digest incorporates the amendments made by the Senate Finance Committee on 5/24/11.
    Changes the title to AN ACT TO SPUR THE CREATION OF PRIVATE SECTOR JOBS; REORGANIZE AND REFORM STATE GOVERNMENT; MAKE BASE BUDGET APPROPRIATIONS FOR CURRENT OPERATIONS OF STATE DEPARTMENTS AND INSTITUTIONS; AND TO ENACT BUDGET RELATED AMENDMENTS.

    PART I. INTRODUCTION AND TITLE OF ACT

    SECTION 1.1. Identical to 4th edition.
    SECTION 1.2. Identical to 4th edition.

    PART II. CURRENT OPERATIONS AND EXPANSION GENERAL FUND

    CURRENT OPERATIONS AND EXPANSION/GENERAL FUND
    SECTION 2.1. Modifies appropriations from the General Fund for the fiscal biennium ending June 30, 2013, as follows.

    Current Operations – General Fund 2011 2012 2012 2013

    EDUCATION

    Community Colleges System Office $ 982,305,416 $ 982,305,416

    Department of Public Instruction 7,226,755,942 7,191,532,300

    University of North Carolina – Board of Governors
    Appalachian State University 145,615,228 145,732,585
    East Carolina University
    Academic Affairs 247,883,972 247,883,972
    Health Affairs 65,196,439 65,196,439
    Elizabeth City State University 38,394,847 38,567,166
    Fayetteville State University 56,968,000 56,968,000
    NC A&T State University 105,413,397 105,852,346
    NC Central University 94,413,933 94,413,933
    NC State University
    Academic Affairs 434,600,291 434,714,473
    Agricultural Research 59,239,461 59,239,461
    Agricultural Extension 43,539,609 43,539,609
    UNC Asheville 41,984,728 41,984,728
    UNC Chapel Hill
    Academic Affairs 309,582,768 312,944,304
    Health Affairs 219,507,009 222,570,732
    AHEC 49,747,851 49,747,851
    UNC Charlotte 216,916,678 217,932,821
    UNC Greensboro 173,205,364 173,205,364
    UNC Pembroke 61,700,446 62,443,695
    UNC School of the Arts 27,849,173 27,849,173
    UNC Wilmington 105,967,837 107,163,413
    Western Carolina University 90,758,068 91,236,972
    Winston Salem State University 76,496,951 76,496,950
    General Administration 38,186,863 27,628,722
    University Institution Programs (395,719,732) (398,078,528)
    Related Educational Programs 85,679,060 115,272,420
    UNC Financial Aid Private Colleges 91,426,688 62,286,250
    NC School of Science & Math 18,937,535 18,937,535
    UNC Hospitals 25,000,000 25,000,000
    Total University of North Carolina –
    Board of Governors $ 2,528,492,464 $ 2,526,730,386

    HEALTH AND HUMAN SERVICES

    Department of Health and Human Services
    Division of Central Management and Support $ 45,011,380 $ 39,411,990
    Division of Aging and Adult Services 35,359,667 35,359,667
    Division of Services for Blind/Deaf/Hard of Hearing 7,198,149 7,181,925
    Division of Child Development 266,102,933 266,102,933
    Division of Health Service Regulation 16,133,031 16,133,031
    Division of Medical Assistance 2,928,301,996 2,904,589,504
    Division of Mental Health,
    Developmental Disabilities, and
    Substance Abuse Services 648,478,227 673,478,227
    NC Health Choice 79,452,317 83,717,865
    Division of Public Health 186,876,812 153,972,401
    Division of Social Services 184,286,652 184,286,652
    Division of Vocational Rehabilitation 37,125,788 37,528,128
    Total Health and Human Services $ 4,434,326,952 $ 4,401,762,323

    NATURAL AND ECONOMIC RESOURCES

    Department of Agriculture and Consumer Services $ 71,484,049 $ 68,177,845

    Department of Commerce
    Commerce 48,426,722 31,232,429
    Commerce State Aid 27,201,984 27,041,395
    NC Biotechnology Center 16,576,615 16,576,615
    Rural Economic Development Center 39,244,692 39,244,692
    Department of Environment and Natural Resources 167,763,360 162,750,956
    DENR Clean Water Management Trust Fund 12,500,000 12,500,000
    Department of Labor 15,836,887 15,836,887
    Wildlife Resources Commission 16,000,000 15,221,179

    JUSTICE AND PUBLIC SAFETY
    Department of Correction $ 1,337,816,346 $ 1,348,410,793
    Department of Crime Control and Public Safety 247,927,627 270,204,922
    Judicial Department 436,243,082 432,464,141
    Judicial Department – Indigent Defense 111,732,877 111,160,465
    Department of Justice 52,330,297 24,537,108
    Department of Juvenile Justice and Delinquency Prevention 135,593,692 131,140,565

    GENERAL GOVERNMENT
    Department of Administration $ 62,232,817 $ 64,136,947
    Department of State Auditor 11,857,574 10,676,035
    Office of State Controller 28,368,957 28,368,957
    Department of Cultural Resources
    Cultural Resources 60,994,609 58,256,841
    Roanoke Island Commission 1,203,491 0
    State Board of Elections 5,186,603 5,126,603
    General Assembly 53,259,495 50,104,208
    Office of the Governor
    Office of the Governor 4,887,061 4,887,061
    Office of State Budget and Management 5,848,663 5,848,663
    OSBM – Reserve for Special Appropriations 1,940,612 440,612
    Housing Finance Agency 10,673,051 10,673,051
    Department of Insurance
    Insurance 36,393,921 36,393,921
    Insurance – Volunteer Safety Workers' Compensation 2,294,000 2,623,654
    Office of Lieutenant Governor 775,245 775,245
    Office of Administrative Hearings 4,983,871 4,983,871
    Department of Revenue 78,199,538 78,199,538
    Department of Secretary of State 10,654,563 10,654,563
    Department of State Treasurer
    State Treasurer 6,657,031 6,621,750
    State Treasurer –
    Retirement for Fire and Rescue Squad Workers 17,812,114 17,812,114

    RESERVES, ADJUSTMENTS, AND DEBT SERVICE
    Contingency and Emergency Fund $ 5,000,000 $ 5,000,000
    State Retirement System Contribution 297,400,000 404,200,000
    Judicial Retirement System Contribution 7,900,000 9,000,000
    Firemen's & Rescue Squad Workers' Pension Fund 5,800,000 6,900,000
    National Guard Pension Fund 263,000 523,000
    State Health Plan 7,119,541 102,151,104
    Information Technology Fund 4,458,142 6,158,142
    Reserve for Job Development Investment Grants (JDIG) 15,400,000 27,400,000
    Continuation Review Reserve 0 22,982,380
    Comprehensive Review of Compensation Plans 2,000,000 0
    Salary Adjustment and Performance Pay Reserve 0 328,000,000
    Severance Expenditure Reserve 75,000,000 0
    Automated Fraud Detection Development 1,000,000 7,000,000
    Controller – Fraud Detection Development 500,000 500,000
    Debt Service
    General Debt Service 688,957,188 759,984,974
    Federal Reimbursement 1,616,380 1,616,380

    TOTAL CURRENT OPERATIONS –
    GENERAL FUND $ 19,425,196,471 $ 19,886,830,031

    GENERAL FUND AVAILABILITY STATEMENT
    SECTION 2.2.(a) Modifies the General Fund availability used in developing the 2011-13 biennial budget as follows.
    FY 2011 2012 FY 2012 2013
    Unappropriated Balance Remaining $ 0 $ 72,311,073
    Ending Unreserved Fund Balance for FY 2009 2010 236,902,394 0
    Anticipated Reversions for FY 2010 2011 –
    S.L. 2011-15 (S.B. 109) 537,740,799 0
    Anticipated Overcollections from FY 2010 2011 180,800,000 0
    Repayment of Medicaid Receipts in FY 2010 2011 (125,000,000) 0

    Statutory Earmarks:
    Savings Reserve Account (202,994,340) 0
    Repairs and Renovations Reserve Account (202,994,339) 0

    Beginning Unreserved Fund Balance $ 424,454,514 $ 72,311,073

    Revenues Based on Existing Tax Structure $ 18,129,800,000 $ 19,181,900,000

    Nontax Revenues
    Investment Income $ 59,400,000 $ 76,700,000
    Judicial Fees 217,800,000 217,800,000
    Disproportionate Share 100,000,000 100,000,000
    Insurance 71,400,000 73,500,000
    Other Nontax Revenues 182,500,000 182,500,000
    Highway Trust Fund/Use Tax Reimbursement Transfer 41,500,000 27,600,000
    Highway Fund Transfer 20,230,000 24,080,000
    Subtotal Nontax Revenues $ 692,830,000 $ 702,180,000

    Total General Fund Availability $ 19,247,084,514 $ 19,956,391,073

    Adjustments to Availability: 2011 Session
    Loss of Estate Tax Revenue $ (57,100,000) $ (72,200,000)
    Private Sector Job Creation Package (186,400,000) (485,300,000)
    Repeal Deduction for Sale of a Manufactured Home
    Community to Manufactured Homeowners 100,000 100,000
    Repeal Deduction for Severance Wages 16,000,000 16,400,000
    Repeal Credit for Recycling Oyster Shells 100,000 100,000
    Repeal Energy Star Tax Holiday 1,900,000 2,000,000
    Repeal Sales Tax Exemption for Nutritional
    Supplements Sold by Chiropractors 300,000 400,000
    Repeal Wildlife Resources Commission Sales Tax
    Earmark 22,970,000 23,920,000
    Suspend Corporate Income Tax Earmark (Public School
    Construction) 0 74,750,000
    Increase in Judicial Fees 60,986,955 60,986,955
    Increase Investment Company Notice Filing Fee 1,600,000 1,600,000
    Increase Parking Fees for Visitors 550,000 550,000
    Loss of Revenue from the Town of Butner (1,213,235) (1,213,235)
    Transfer from E Commerce Reserve Fund 4,483,526 0
    Divert Funds from Parks & Recreation Trust Fund 4,217,500 0
    Divert Funds from Recreational/Natural Heritage
    Trust Fund 4,500,000 0
    Transfer from Highway Fund for State Highway
    Patrol 193,585,434 189,859,507
    Transfer from Highway Trust Fund for School Bus
    Replacement 35,223,642 0
    Transfer from Mercury Prevention Pollution Fund 125,000 0
    Transfer from Commerce – Enterprise Fund 250,000 0
    Divert Funds from Scrap Tire Disposal Account 1,134,495 0
    Divert Funds from White Goods Management Account 1,131,342 0
    Diversion of Golden LEAF Funds 67,563,760 67,563,760
    Tobacco Trust Fund Master Settlement Agreement Funds 8,334,360 8,790,386
    Health and Wellness Trust Fund Master Settlement
    Agreement Funds 16,334,360 16,790,386
    Transfer Health and Wellness Trust Funds to Public Health 32,904,411 0
    Department of Revenue – Accounts Receivable Program 15,000,000 15,000,000
    Medicaid Disproportionate Share Receipts 15,000,000 15,000,000
    Adjust Transfer from Insurance Regulatory Fund (742,348) (742,348)
    Adjust Transfer from Treasurer's Office (3,881,172) (3,916,453)
    Subtotal Adjustments to Availability:
    2011 Session $ 254,958,030 $ (69,561,042)

    Revised General Fund Availability $ 19,502,042,544 $ 19,886,830,031

    Less General Fund Appropriations $ (19,429,731,471) $ (19,886,830,031)

    Unappropriated Balance Remaining $ 72,311,073 $ 0

    SECTION 2.2.(b) Identical to 4th edition.
    SECTION 2.2.(c) Same as 4th edition except directs the Secretary of Revenue to transfer specified funds to the State Controller for deposit in Nontax Budget Code 19978 (Intrastate Transfers) during the 2012-13 fiscal year (was, 2011-13 fiscal biennium).
    SECTION 2.2.(d) Same as 4th edition except transfers the following amounts to the State Controller to be deposited in Nontax Budget Code 19878 (Intrastate Transfers) or the appropriate budget code:
    Budget Fund
    Code Code Description Amount
    24100 2514 E-Commerce Reserve 4,483,526
    54600 5881 Commerce Enterprise Fund 250,000
    24300 2119 Mercury Prevention Pollution Fund 125,000

    SECTION 2.2.(e) Identical to 4th edition.
    SECTION 2.2.(f) Same as 4th edition except directs the Secretary of Revenue to credit to the General Fund $1,134,495 from the net tax proceeds that GS 105-187.19(b) directs the Secretary to credit to the Scrap Tire Disposal Account.
    SECTION 2.2.(g) Same as 4th edition except directs the Secretary of Revenue to credit to the General Fund $1,131,342 from the net tax proceeds that GS 105-187.24 directs the Secretary to credit to the White Goods Management Account.
    SECTION 2.2.(h) Same as 4th edition except directs the Secretary of Revenue to credit $4,217,500 (was, $8.435 million) to the General Fund of the net tax proceeds that GS 105-228.30(b) directs the Secretary to credit to the Parks and Recreation Trust Fund.
    SECTION 2.2.(i) Same as 4th edition except directs the Secretary of Revenue to credit $4.5 million (was, $8 million) to the General Fund of the net tax proceeds that GS 105-228.30(b) directs the Secretary to credit to the Natural Heritage Trust Fund.
    SECTION 2.2.(j) Identical to 4th edition.
    SECTION 2.2.(k) New provision directs the State Controller to transfer only $202,994,339 from the unreserved fund balance to the Repairs and Renovations Account on June 30, 2011. Effective June 30, 2011.
    SECTION 2.2.(l) New provision specifies that funds transferred to the Repairs and Renovations Account are appropriated for 2011-12 to be used in accordance with GS 143C-4-3.
    SECTION 2.2.(m) New provision directs the State Controller to transfer only $202,994,339 from the unreserved fund balance to the Savings Reserve Account on June 30, 2011. Provides that this is not an “appropriation made by law,” as the phrase is used in Section 7(1) of Article V of the NC Constitution. Effective June 30, 2011.

    PART III. CURRENT OPERATIONS/HIGHWAY FUND

    CURRENT OPERATIONS AND EXPANSION/HIGHWAY FUND
    SECTION 3.1. Modifies appropriations from the State Highway Fund for the fiscal biennium ending June 30, 2013, as follows.

    Current Operations – Highway Fund 2011 2012 2012 2013

    Department of Transportation
    Administration $ 85,412,594 $ 85,412,594

    Division of Highways
    Administration 34,836,793 34,836,793
    Construction 87,232,806 86,339,067
    Maintenance 1,202,416,068 1,253,761,275
    Planning and Research 4,055,402 4,055,402
    OSHA Program 372,792 372,792

    Ferry Operations 33,689,589 41,038,132

    State Aid
    Municipalities 89,373,921 90,187,224
    Public Transportation 69,801,308 69,801,308
    Airports 18,401,413 22,311,031
    Railroads 21,701,153 21,701,153

    Governor's Highway Safety 273,093 273,093
    Division of Motor Vehicles 90,142,238 43,004,042
    Other State Agencies, Reserves, Transfers 296,240,830 366,066,094
    Capital Improvements 15,250,000 15,000,000

    Total $ 2,049,200,000 $ 2,134,160,000

    HIGHWAY FUND AVAILABILITY STATEMENT
    SECTION 3.2. Modifies the Highway Fund availability used in developing the 2011-13 fiscal biennial budget as follows.

    Highway Fund Availability Statement 2011 2012 2012 2013

    Unappropriated Balance from Previous Year $ 24,000,000 $ 0
    Beginning Credit Balance 0 0
    Estimated Revenue 2,025,200,000 2,134,160,000

    Total Highway Fund Availability $ 2,049,200,000 $ 2,134,160,000

    Unappropriated Balance $ 0 $ 0

    STATE HIGHWAY PATROL FUNDS TRANSFER
    SECTION 3.3. Deleted.

    PART IV. HIGHWAY TRUST FUND APPROPRIATIONS

    Highway Trust Fund Appropriations
    SECTION 4.1. Modifies the appropriations from the State Highway Trust Fund for the biennium ending June 30, 2013, as follows.

    Current Operations – Highway Trust Fund 2011 2012 2012 2013

    Intrastate $ 460,823,529 $ 487,503,034
    Aid to Municipalities 51,216,036 54,043,432
    Secondary Roads 36,155,667 41,820,944
    Urban Loops 275,761,364 237,407,986
    Program Administration 44,774,400 47,107,200
    Turnpike Authority 49,000,000 49,000,000
    Transfer to General Fund 76,720,918 27,595,861
    Transfer to Highway Fund 400,000 0
    Debt Service 79,231,728 81,481,543
    Mobility Fund 41,326,358 60,950,000

    GRAND TOTAL CURRENT OPERATIONS $ 1,115,410,000 $ 1,086,910,000

    HIGHWAY TRUST FUND AVAILABILITY STATEMENT
    SECTION 4.2. Modifies the Highway Trust Fund availability used in developing the 2011-13 fiscal biennial budget as shown below.

    Highway Trust Fund Availability 2011 2012 2012 2013

    Unappropriated Balance $ 75,000,000 $ 0
    Estimated Revenue 1,040,410,000 1,086,910,000

    Total Highway Trust Fund Availability $ 1,115,410,000 $ 1,086,910,000

    PART V. OTHER APPROPRIATIONS

    APPROPRIATION OF OTHER FUNDS
    SECTION 5.1.(a) Identical to 4th edition.
    SECTION 5.1.(b) Identical to 4th edition.
    SECTION 5.1.(c) Identical to 4th edition.
    SECTION 5.1.(d) Identical to 4th edition.

    OTHER RECEIPTS FROM PENDING GRANT AWARDS
    SECTION 5.2.(a) Identical to 4th edition.
    SECTION 5.2.(b) Identical to 4th edition.
    SECTION 5.2.(c) Identical to 4th edition.
    SECTION 5.2.(d) New provision authorizes the Department of Public Instruction to spend funds received from the following grants for 2011-12 awarded after the act’s enactment for up to the specified amounts:
    (1) Child Nutrition Equipment Assistance $815,762
    (2) Verizon Thinkfinity State Education Partnership $40,000
    (3) State Abstinence Education Program $1,585,347
    States that neither the approval of the Governor nor consultation with the Joint Legislative Commission on Governmental Operations is required before expending these funds.

    CIVIL FORFEITURE FUNDS
    SECTION 5.3. Identical to 4th edition.

    EDUCATION LOTTERY
    SECTION 5.4.(a) Identical to 4th edition.
    SECTION 5.4.(b) Same as 4th edition except makes the following appropriations from the Education Lottery Fund for 2011-12.
    Teachers in Early Grades $ 220,643,188
    Prekindergarten Program 63,135,709
    Public School Building Capital Fund 100,000,000
    Scholarships for Needy Children 30,450,000
    UNC Need-Based Financial Aid 10,744,733
    Total Appropriation $ 424,973,630
    SECTION 5.4.(c) Identical to 4th edition.
    SECTION 5.4.(d) Same as 4th edition except deletes provision specifying how local school administrative units may use Public School Building Capital Fund monies.
    SECTION 5.4.(e) Identical to 4th edition.
    SECTION 5.4.(f) Identical to 4th edition.
    SECTION 5.4(g) New provision provides that funds appropriated for scholarships for needy students must be used only for students at the University of North Carolina, the Community College System, and their respective constituent institutions.

    PART VI. GENERAL PROVISIONS

    CLARIFY CERTIFIED BUDGET
    SECTION 6.1. Identical to 4th edition.

    CONTINGENCY AND EMERGENCY FUND LIMITATION
    SECTION 6.2. Same as 4th edition except provides that these funds may not be used for other statutorily
    authorized purposes or for any other contingencies and emergencies.

    ESTABLISHING OR INCREASING FEES UNDER THIS ACT
    SECTION 6.3. Identical to 4th edition.

    CONSULTATION REQUIRED BEFORE CREATION OF NEW FUNDS
    SECTION 6.4. Identical to 4th edition.

    INTERIM APPROPRIATIONS COMMITTEES/MEETINGS/CONSULTATION BY GOVERNOR
    SECTION 6.5. Deleted.

    JUSTIFICATION/OPERATIONAL REVIEWS
    SECTION 6.6. Same as 4th edition except it deletes from review in 2011-2012 the operations of the regional offices of the Department of Environment and Natural Resources.

    CONTINUATION REVIEW OF CERTAIN FUNDS/PROGRAMS/DIVISIONS
    SECTION 6.7. Same as 4th edition except deletes from continuation review (1) the drug treatment court in the Department of Justice and Public Safety, (2) the research stations in the Department of Agriculture and Consumer Affairs, and (3) the Prairie Ridge Ecostation in the Department of Environment and Natural Resources.

    STATE GOVERNMENT REORGANIZATION
    SECTION 6.8. Deleted.

    UTILIZATION REVIEW/PUBLIC SCHOOL AND PUBLIC HEALTH NURSES
    SECTION 6.9. Identical to 4th edition.

    GLOBAL TRANSPARK DEBT, REPORT, AND STUDY
    SECTION 6.10. Same as 4th edition except directs the Global Transpark Authority to report to the Program Evaluation Division of the General Assembly no later than January 1, 2012 (was, May 1, 2012) and directs the Division to study the feasibility and implications of transferring some or all of the authority’s functions to other state agencies. Directs the Division to report to the Joint Legislative Program Evaluation Oversight Committee no later than May 1, 2012.

    HEALTH AND WELLNESS TRUST FUND AND TOBACCO TRUST FUND/FUTURE MSA PAYMENTS
    SECTION 6.11. Same as 4th edition but makes significant changes and substantially reorganizes the section as follows:
    (1) Deletes amendments to GS Chapter 143.
    (2) Transfers content of Section 6.11.(i) to Section 6.11.(c), and of Section 6.11(m) to Section 6.11(d).
    (3) Effective June 30, 2011, directs that funds remaining in Health and Wellness Trust Fund (HWTF) on June 30, 2011, be transferred to the Department of Health and Human Services (DHHS) and used as follows: $22 million to administer grants for Teen Tobacco Prevention, ChecKmeds, Medication Assistance Programs, and Obesity Prevention and $10 million to reduce the total savings required to be achieved for Medicaid by Community Care of North Carolina.
    (4) Provides that the administrative costs of the Tobacco Trust Fund may not exceed $625,000 for the fiscal 2011-2013 biennium.
    (5) Changes effective date for abolishing the HWTF and the Health and Wellness Trust Fund Commission from Dec. 31, 2011, to 60 days after the act becomes law, or on October 1, 2011, whichever occurs first.

    COMPENSATION LIMITATIONS FOR GRANTEE ORGANIZATIONS RECEIVING STATE FUNDS
    SECTION 6.12. Deleted.

    CONSOLIDATION OF AIR SERVICES AND CENTRALIZATION OF AIR MANAGEMENT/STATE-OWNED PASSENGER AND NON-PASSENGER VEHICLES
    SECTION 6.13. Identical to 4th edition.

    TORNADO ASSISTANCE
    SECTION 6.14. Identical to 4th edition.

    STATE-OWNED DISPOSABLE ASSETS
    SECTION 6.15. Deleted.

    PART VI-A. INFORMATION TECHNOLOGY

    INFORMATION TECHNOLOGY FUND/AVAILABILITY
    SECTION 6A.1. Changes the fund balances used to support appropriations from the Information Technology Fund in each year of fiscal biennium as follows: “Interest” from $100,000 to $25,000; “IT Fund Balance June 30” from $2,454,934 to $792,000 in fiscal 2011-12 and from $1,227,467 to $0 in fiscal 2012-13; and “Total Funds Available” from $7,013,076 to $5,275,142 in fiscal 2011-12 and from $7,485,609 to $6,183,142 in 2012-13. Modifies the appropriations made from the Information Technology Fund for each year of the 2011-13 fiscal biennium as follows: “Enterprise Security Risk Management” from $1,064,148 to $864,148; “Enterprise Project Management Office” from $1,673,285 to $1,473,285; “Architecture and Engineering” from $648,000 to $581,986; IT Consolidation from $100,000 to $776,440 (2011-12) and $784,440 (2012-13); “Transfer to OSC for Data Integration” (title changed to “Transfer to OSC for E-Forms”) from $1,420,893 (2011-12) and $920,893 (2012-13) to $500,000; “Subtotal Information Technology Projects” from $1,420,893 to $1,276,440 (2011-12) and $920,893 to $1,284,440 (2012-13).
    Provides that changes to the specified uses must be approved in writing by the State Chief Information Officer after consultation with the Office of State Budget and Management. Provides that changes to the specified uses of funds must be reported to the Chairs of the House Appropriations Committee, the House Subcommittee on General Government, the Chairs of the Senate Committee on Appropriations and the Senate Appropriations Committee on General Government and Information Technology, the Joint Legislative Oversight Committee on Information Technology, the Fiscal Research Division, and the Office of State Budget and Management. Directs the Office of the State Controller to coordinate with Office of the State Chief Information Officer to identify four positions in the Office of the State Information Officer that must be used, effective Aug. 1, 2011, to support planning and implementation of an automated fraud detection capability and an e-forms/digital signature project.

    INFORMATION TECHNOLOGY OPERATIONS
    SECTION 6A.2. Same as 4th edition except provides that any information project (or segment of one) costing more than $250,000 (4th edition, $100,000) must be included in the agency’s most recent information technology plan and approved by the General Assembly.

    COORDINATION OF INFORMATION TECHNOLOGY REQUIREMENTS AND GEOGRAPHIC INFORMATION
    SYSTEM REQUIREMENTS
    SECTION 6A.3 Identical to 4th edition.

    CRIMINAL JUSTICE LAW ENFORCEMENT AUTOMATED DATA SERVICES (CJLEADS)
    SECTION 6A.4. Same as 4th edition except also directs agencies to use existing resources to provide required support for CJLEADS.

    CONTINUING PILOT PROGRAM TO ALLOW PUBLIC-PRIVATE PARTNERSHIPS TO MEET DEPARTMENT OF REVENUE TECHNOLOGY NEEDS
    SECTION 6A.5. Identical to 4th edition.

    INFORMATION TECHNOLOGY PERSONAL SERVICES CONTRACT REQUIREMENTS
    SECTION 6A.6. Identical to 4th edition.

    STATE INFORMATION TECHNOLOGY CONSOLIDATION
    SECTION 6A.7. Identical to 4th edition.

    ITS/INTERNAL SERVICE FUND RATE ESTABLISHMENT/CASH MANAGEMENT
    SECTION 6A.8. Identical to 4th edition.

    INFORMATION TECHNOLOGY PRIVATIZATION
    SECTION 6A.9. Identical to 4th edition.

    STATE PORTAL IMPLEMENTATION AND OPERATION
    SECTION 6A.10 Incorporates most provisions from 4th edition, but adds clarification that any fees for portal services must be approved by the General Assembly and deposited in the General Fund, or the Highway Fund, for fees collected from the Department of Transportation. Requires a convenient, free alternative for any online service provided. Requires the Department of Administration to engage private counsel with pertinent information technology and computer law expertise to negotiate and review contracts for the portal. Lists quarterly reporting requirements as to the total amount of fees and other charges collected by the vendor for each service provided, the amount of funding collected by the state for each service, and any other costs associated with operating the portal. Creates a Portal Project Committee and describes membership and operational rules. Requires the Committee to hold public meetings at various locations around the state for each proposed service or application to allow comment and promote public participation. Gives the Committee approval authority for services and applications not requiring a fee or cost. Requires the Committee to make recommendations to the next General Assembly on the feasibility of developing and implementing any services or applications supported by fees.

    TRANSFER CRIMINAL JUSTICE INFORMATION NETWORK TO THE OFFICE OF THE STATE CHIEF INFORMATION OFFICER
    SECTION 6A.11. Identical to 4th edition.

    INTEGRATED BUDGET INFORMATION SYSTEM
    SECTION 6A.12. Identical to 4th edition.

    COMPREHENSIVE, ENTERPRISE-LEVEL DATA INTEGRATION CAPABILITY
    SECTION 6A.13 [SEE SECTION 6A-20]

    USE OF MOBILE ELECTRONIC COMMUNICATIONS DEVICES
    SECTION 6A.14. New provision requires each executive branch agency to develop a policy to limit the use of mobile electronic devices (MEDs) to the minimum required to carry out the agency’s mission. Requires policies to be submitted by September 1, 2011, to listed General Assembly Committees, the Fiscal Research Division, and the Office of State Budget and Management. Requires MEDs to be used only for state business and requires limited issuance only when use is a critical requirement for job performance. Requires plans to be the minimum required to support work requirements and requires considering the use of pagers. Requirements for each MED issued must be documented in a written justification maintained by the agency and reviewed annually. Requires regular review and audit of MED plans and usage. Requires quarterly reports on changes to policies and number and types of MEDs issued, including types and cost. Requirement does not apply to legislative or judicial branches.

    USE OF DMV INSPECTION PROGRAM ACCOUNT FUND
    SECTION 6A.15. New provision amends GS 20-183.7(d) to allow funds in the Inspection Program Account to be used for replacement of the State Titling and Registration System and the State Automated Driver License System.

    STATEWIDE INFORMATION TECHNOLOGY PROCUREMENT
    SECTION 6A.16. New provision requires Statewide Information Technology Procurement (SITP) to be funded through fees charged to agency using SITP services. Authorizes the Office of State Budget and Management to transfer funds to SITP from any agency that fails to pay for services within 30 days of billing.

    REPLACEMENT OF THE STATE TITLING AND REGISTRATION SYSTEM (STARS) AND THE STATE AUTOMATED DRIVER LICENSE SYSTEM (SADLS)
    SECTION 6A.17. New provision requires the Department of Transportation, Division of Motor Vehicles, to begin the replacement of systems as title indicates. Department is to determine costs and funding strategies for system. Requires plan and associated time line by October 1, 2011. Establishes quarterly reporting requirements beginning on that date, and requires the Office of the state Chief Information Officer and the Office of Information Technology Services to provide support and expedited project review.

    ENTERPRISE ELECTRONIC FORMS AND DIGITAL SIGNATURES
    SECTION 6A.18. New provision requires the state to develop forms and signatures as title indicates under the direction of the State Controller. Requires the State Controller to report quarterly to the Joint Legislative Oversight Committee on Information Technology, beginning October 1, 2011.

    EVALUATION OF STATE INFORMATION TECHNOLOGY OPERATIONS
    SECTION 6A.19. New provision requires the General Assembly to conduct a detailed, comprehensive evaluation of information technology (IT) operations, infrastructure, systems, ongoing projects, and applications within state government. Includes evaluation of state IT organization and functions, inventory of assets and resources, agency operations, actual agency IT costs, costs of specific IT projects and support, funding sources, common requirements for IT infrastructure, systems, projects, or applications. Requires the House and Senate Appropriations Committee chairs to establish a project team to develop an evaluation plan/methodology and to manage the evaluation. Requires agencies to provide all requested support and information. Authorizes the project team to implement changes during the evaluation to create opportunities for savings or efficiencies. Provides that the General Assembly will create an advisory committee chaired by the State Controller to provide advice and assistance during the evaluation. Appropriates $2 million for fiscal year 2011-12 and $3 million for fiscal year 2012-13 to implement the evaluation.

    COMPREHENSIVE ENTERPRISE-LEVEL DATA INTEGRATION CAPABILITY
    SECTION 6A.20. Substantially similar to 4th edition provision (see Section 6A.13). Moves the deadline for updating BEACON Strategic Plan for Data Integration from March 1, 2012, to October 1, 2011. Prioritizes Criminal Justice Law Enforcement Automated Data System in the effort for data integration. Deletes provision prohibiting members of the General Assembly from serving on the Data Integration Steering Committee. Requires all state agencies to support and participate in development of an automated fraud detection system, and lists specific requirements for the Office of the State Controller in developing this system. Authorizes the Office of the State Controller to enter into an enterprise automated fraud detection contract for $8 million over two years and establishes payment schedule and other minimum requirements. Replaces $100,000 appropriation in 4th edition with allocation of funds appropriated to the Office of the State Controller in the amount of $1.5 million for the 2011-12 fiscal year, and $7.5 million for the 2012-13 fiscal year, to support the enterprise process to detect fraud, waste, and improper payments across state agencies, of which $500,000 is to be used by the Office of the State Controller and the remainder to be used to fund payments to the vendor.

    PART VII. PUBLIC SCHOOLS

    EDUCATION REFORM IN NORTH CAROLINA
    SECTION 7.1. Same as 4th edition except stresses that it is a priority of the General Assembly that high school graduates enter the workforce or higher education fully prepared. Replaces the lengthy list of issues to be studied by the Joint Education Oversight Committee (Ed Oversight) with the following: (1) literacy and (2) ways to reduce the need for remedial education in the state’s institutions of higher learning to save the costs of repeatedly paying for the same education. Requires Ed Oversight to report its comprehensive plan to address these issues to the 2012 Regular Session of the 2011 General Assembly. Specifies that the comprehensive plan is to include implementation dates and schedules that address the following items: (1) implementation of a third grade literacy policy, including the advisability of a program modeled on Florida’s reading specialist program; (2) ways to hold high schools accountable for the performance of their students in higher education institutions, including requiring that high schools fund developmental education; and (3) determining the most cost-effective way to provide remedial education in higher education [items (2) and (3) were in the 4th edition as issues to be studied].
    Deletes the provisions from the 4th edition which focused on the need for all children in all grades to receive quality education from high quality teachers and directed Ed Oversight to study a lengthy list of issues which included (1) the relationship of teacher tenure and teacher pay to student performance, (2) strategies for reducing teacher paperwork to assist teachers in spending more time with students, (3) kindergarten as a transition year between pre-K and elementary education, (4) the relationship to student performance of reducing the teacher-student ratio to 1:15 in grades first through third, and (5) other issues relating to the transition from high school to higher education.

    CAREER AND COLLEGE PROMISE
    SECTION 7.1A. New provision directs the State Board of Education (SBE) and the North Carolina Community College System (NCCCS) to establish the Career and College Promise (CCP) program. Provides that the purpose of the CCP program is to provide structured opportunities for qualified high school students to dually enroll in community college courses that follow Career and College pathways that lead to a certificate, diploma, or degree as well as entry-level job skills. Provides that students dually enrolled in high school and the CCP program who continue with postsecondary education after high school graduation will be able to obtain a postsecondary degree in less time than would normally be required. Consolidates and replaces all existing high school transitions programs, including Huskins, Concurrent Enrollment, Cooperative and Innovative High Schools, Learn and Earn, and Learn and Earn Online, with the CCP program.
    Permits the offering of specified Career and College Pathways aligned with the K-12 curriculum and career and college ready standards adopted by the SBE by (1) North Carolina community colleges subject to approval by the State Board of Community Colleges (SBCC) and (2) the constituent institutions of the University of North Carolina subject to approval by the UNC Board of Governors.
    Directs the NCCCS and the Department of Public Instruction (DPI) to jointly develop and implement an accountability program to evaluate long- and short-term outcomes for CCP. Delineates the outcomes to be measured.
    Directs the community colleges to generate budget based on full-time equivalent students (FTE) for instruction provided through CCP and to report no later than February 1 to Ed Oversight, or if the General Assembly is in session, to the House and Senate Education Committees, regarding the number and cost of high school FTE served as a result of the CCP program created by this section. Effective January 1, 2013, and repealed effective June 30, 2015.
    Makes the following conforming changes: (1) repeals GS 115D-1.1 and GS 115D-1.2 and (2) amends GS 115D-41 and GS 115C-238.54.
    Amends GS 115D-20 regarding the powers and duties of local community college trustees to provide that local community colleges, subject to the approval of the SBCC, may collaborate with local school administrative units (LEAs) to offer courses through the following programs: (1) cooperative innovative high school programs as provided by Part 9 of Article 16 of GS Chapter 115C; (2) academic transition pathways for qualified high school students that lead to a career technical education certificate or diploma; and (3) college transfer certificates requiring the successful completion of eight college transfer courses, including English and math.
    Directs the NCCCS, UNC General Administration, and the NC Independent Colleges and Universities, Inc. (should it choose to participate) to develop a plan for articulation of a college transfer certificate to all UNC institutions and participating independent colleges and universities.
    Amends Part 9 of Article 16 of GS Chapter 115C to expand the target groups for innovative high school programs to include high school students with parents who did not continue education beyond high school. Makes additional changes streamlining the list of objectives for cooperative innovative high school programs. Adds a definition for cooperative innovative high school to mean a high school that (1) has no more than 100 students per grade level; (2) partners with an institution of higher education to enable students to concurrently obtain a high school diploma and begin or complete an associate degree program, master certificate or vocational program or earn up to two years of college credit within five years; and (3) is located on the campus of the institution of higher education unless the governing board specifically waives the requirement through a formal resolution. Requires cooperative innovative high schools approved by the SBE prior to July 1, 2011, to meet the requirements set out in the definition of cooperative innovative high school no later than July 1, 2014. Provides that any cooperative innovative high school which fails to meet the specified requirements by July 1, 2014, will no longer be authorized as such. Amends GS 115C-238.51, specifying that no additional state funds will be provided to approved programs unless approved by the General Assembly.
    Except as otherwise provided, the provisions of this section become effective January 1, 2012.

    CLASS SIZE REDUCTION FOR GRADES 1-3
    SECTION 7.1B. New provision provides that it is the intent of the General Assembly to reduce class size in grades first through third to a class size allotment not exceeding a 1:15 ratio as funds become available. Provides findings by the General Assembly that the beneficial effect on academic achievement of such a ratio in grades 1-3 is supported by educational research.

    FUNDS FOR CHILDREN WITH DISABILITIES
    SECTION 7.2. Same as 4th edition except changes the amount of additional funds allocated for children with disabilities to $3,585.88 per child (was, $3,598.55).

    FUNDS FOR ACADEMICALLY GIFTED CHILDREN
    SECTION 7.3. Same as 4th edition except changes the amount of additional funds allocated for academically or intellectually gifted children to $1,192.90 per child for fiscal years 2011-12 and 2012-13.

    USE OF SUPPLEMENTAL FUNDING IN LOW-WEALTH COUNTIES
    SECTION 7.4. Identical to 4th edition.

    LITIGATION RESERVE FUNDS
    SECTION 7.5. Identical to 4th edition.

    UNIFORM EDUCATION REPORTING SYSTEM (UERS) FUNDS
    SECTION 7.6. Identical to 4th edition.

    FOCUSED EDUCATION REFORM PROGRAM FUNDS DO NOT REVERT
    SECTION 7.7. Identical to 4th edition.

    DISADVANTAGED STUDENT SUPPLEMENTAL FUNDING (DSSF)
    SECTION 7.8. Identical to 4th edition.

    TUITION CHARGE FOR GOVERNOR’S SCHOOL
    SECTION 7.9. Identical to 4th edition.

    SCHOOL CONNECTIVITY INITIATIVE FUNDS
    SECTION 7.10. Identical to 4th edition.

    TEXTBOOKS
    SECTION 7.11. Deleted.

    SMALL SCHOOL SYSTEM SUPPLEMENTAL FUNDING
    SECTION 7.12. Same as the 4th edition, except provides that all county school administrative units (units) with an average daily membership (ADM) that is less than maximum small school system ADM are eligible for small school system supplemental funding. Sets the maximum small school system ADM at 3,200 students for the 2011-12 and 2012-13 fiscal years (was, allocated funding to units with ADM less than 3,175 students and to units with a total ADM of 3,175 to 4,000 students if the unit is located in a county that has a county-adjusted property tax base per student that is below the state-adjusted property tax base per student). Deletes provisions specifying how the allocation formula is to be used.
    Provides a revised formula for determining the dollar allotment to each eligible county. Provides that for the 2011-12 and 2012-13 fiscal years, the maximum small school system dollars per student is $2,000. Provides that if a unit becomes ineligible for funding under the small school system supplemental funding formula, the funding for the unit is to be phased out in equal increments over a five-year period with funding eliminated in the fifth fiscal year after the unit becomes ineligible (was, funding for an ineligible unit was continued for seven years after the ineligibility). Prohibits reducing allotments for eligible units by more than 20% in any fiscal year. Deletes reporting and use of funds provisions.

    ELIMINATION OF REPORTING REQUIREMENTS
    SECTION 7.13. Same as 4th edition, except amends GS 115C-12(25) to delete requirement that the State Board of Education (SBE) must include information on school improvement plans in its mandated reports to Ed Oversight. Repeals GS 115C-47(38), which requires local boards of education to establish school improvement teams. Also repeals GS 115C-105.20(b)(5), which requires that the SBE establish dispute resolution guidelines to resolve disputes in the development of school improvement plans. Amends GS 115C-105.25 to eliminate from budget flexibility provisions that funds allocated for teacher assistants may be transferred to reduce class size. Makes conforming changes to various provisions of GS Chapter 115C to eliminate references to school improvement plans and school improvement teams. Repeals GS 115C-105.27 and GS 143B-146.12 (development and approval of school improvement plans), GS 115C-105.30 (Staff development funds and school improvement plans), GS 115C-105.31(b)(3) (Creates the Task Force on School Based Management), GS 115C-105.32 (parental involvement and conflict resolution as a part of school improvement plan), and GS 115C-105.47(b)(13) (regarding directions to school improvement teams).
    Amends GS 115C-174.12(a)(3) to transfer the authority for approving more than two field tests at any one grade level during a school year to the principal of the school (was, the school improvement team). Repeals GS 115C-105.41, which requires LEAs to identify students who are at-risk of academic failure and provides a timeline for developing a personal education plan for academic improvement for all students identified as at-risk.
    Provides that the SBE cannot require more than five semester hours or seven and one-half units of renewal credits to renew a North Carolina Standard Professional 2 professional educator’s license.

    SCHOOL BUILDING ADMINISTRATION (NEW)
    SECTION 7.14. Same as 4th edition, except includes provision allowing LEAs to transfer funds for school building administration for any purpose that is not otherwise prohibited by the SBE’s ABC transfer policy. Requires the LEA to submit an ABC Transfer Form to the Department of Public Instruction (DPI). Provides additional guidelines and restrictions on the use of the transferred funds.

    TRANSFER OF FEDERAL AGRICULTURAL EDUCATION FUNDS
    SECTION 7.15. Deleted.

    ELIMINATION OF TEACHERS FOR GEOGRAPHICALLY ISOLATED SCHOOLS (NEW)
    SECTION 7.16. Deletes provision in 4th edition and instead repeals Section 7.26 of SL 2009-451, which defined geographically isolated schools (was, provided for no reduction in funding for additional teaching positions at geographically isolated schools as defined in Section 7.26 of SL 2009-451).

    SCHOOL CALENDAR PILOT PROGRAM
    SECTION 7.17. Same as 4th edition, except adds Montgomery County Schools to the school calendar pilot program.

    PERFORMANCE PAY MODEL PROGRAM
    SECTION 7.18. Deleted.

    BUDGET REDUCTIONS/DEPARTMENT OF PUBLIC INSTRUCTION
    SECTION 7.19. Identical to 4th edition.

    LEA BUDGET ADJUSTMENT
    SECTION 7.20. Identical to 4th edition.

    LEA BUDGETARY FLEXIBILITY
    SECTION 7.21. Same as 4th edition, except excludes teaching assistants from the goal of protecting direct classroom services as LEAs are making efforts to reduce spending. Also deletes provision that allocation of teachers in grades K-3 is to remain unchanged.

    NORTH CAROLINA VIRTUAL PUBLIC SCHOOLS
    SECTION 7.22. Same as 4th edition except directs the State Board of Education (SBE) to reduce each LEA’s or charter school’s classroom teacher allotment, or other allotment as determined by the SBE (was, ADM dollar allotment), on the basis of ADM in grades 6-12 to provide $2,866,923 for the state-level operations and administration of the NC Virtual Public Schools (NCVPS) for the 2011-12 fiscal year.
    Directs the State Board of Education (SBE), for fiscal year 2011-12, to reduce each LEA’s or charter school’s classroom teacher allotment, or other allotment as determined by the SBE (was, ADM dollar allotment), on the basis of ADM in grades 6-12 to provide $2 million in order to create an NCVPS enrollment reserve to cover the instructional costs of LEAs or charter schools with enrollments that exceed projected NCVPS enrollment.
    Directs the SBE, beginning in fiscal year 2012-13 and annually thereafter, to reduce each LEA’s or charter school’s classroom teacher allotment, or other allotment as determined by the SBE (was, ADM dollar allotment), on the basis of ADM in grades 6-12 by an amount that is the difference between $2 million and the balance of the NCVPS enrollment reserve.

    PERFORMANCE-BASED REDUCTIONS IN FORCE
    SECTION 7.23. Same as 4th edition, except directs each LEA to adopt a Reduction in Force (RIF) policy (was, directed SBE to adopt an RIF policy that was consistent across all LEAs) that includes criteria as specified in the 4th edition. Requires each LEA to have the RIF policy in place on or before July 15, 2011.

    TEACHING FELLOWS ADMINISTRATIVE REDUCTION
    SECTION 7.24. Identical to 4th edition.

    RESIDENTIAL SCHOOLS
    SECTION 7.25. Same as the 4th edition, except declares that the General Assembly has determined that there is no longer a need for three residential schools and directs DPI to determine which one of the following residential schools is to be closed: (1) the Eastern North Carolina School for the Deaf, (2) the Governor Morehead School for the Blind, or (3) the North Carolina School for the Deaf. Requires DPI to report its decision as to which school is to close and its plan for consolidating that school’s programs with those at the two remaining schools to Ed Oversight no later than January 15, 2012. Specifies that the following criteria are to be considered by DPI in deciding which residential school is to be closed: (1) minimization of the impact on services to deaf and blind students currently served by the residential schools, (2) minimization of the costs of modifications at the two remaining schools to accommodate students from the closed school, and (3) maximization of the funds generated or net savings to the state from the closing of one residential school. Requires closure and consolidation by July 1, 2012.
    Amends GS 115C-325(p) to make provisions regarding the procedure for dismissal of school administrators and teachers employed in low performing residential schools applicable to DPI.

    SIXTY-FIVE PERCENT OF SCHOOL FUNDING MUST BE USED FOR CLASSROOM INSTRUCTION
    SECTION 7.26. Deleted.

    DEPARTMENT OF PUBLIC INSTRUCTION RECEIPTS
    SECTION 7.27.
    New provision permits DPI to realign receipts among specified General Fund purpose codes on a recurring basis through the budget certification process for the sole purpose of correctly aligning the certified budget with the appropriate purpose or programs as defined in GS 143C-1-1(d)(23).

    SCHOOL BUS PURCHASES
    SECTION 7.28. New provision directs local boards of education (local boards) to use allotments for replacement school buses only for purchases during fiscal year 2011-12 or for 2011-12 fiscal year payments for purchase financing contracts entered into during prior years. Prohibits local boards from using allotments for replacement school buses to enter into a purchase financing contract that will require state funding in future years.
    Amends GS 115C-249 to delete provision regarding the appropriation of funds by the General Assembly for the purchase of school buses or service vehicles and the allocation of such funds to local school boards by the SBE. Also deletes provision which allowed a local board to apply to the SBE funds to replace a damaged or destroyed school bus. Deletes provision that prohibited appropriations by the General Assembly for the purchase of public school buses from reverting to the General Fund. Eliminates distinctions between additional or replacement school bus or service vehicle, and provides that a local board has title to any school bus or service vehicle purchased under the provisions of GS 115C-249 as amended in this act. Makes a conforming change to GS 115C-426(f)(4). Effective July 1, 2012.

    INCREASE NUMBER OF INSTRUCTIONAL DAYS
    SECTION 7.29. New provision amends GS 115C-84.2 to require that a school calendar include a minimum of 185 instructional days (was, 180 days) and 1,025 instructional hours (was, 1,000 hours). Deletes subsection (a)(4) which provided for five days, designated by the local board, for use as teacher workdays. Makes conforming changes, reducing the number of days that local boards must designate as days on which teachers may take accumulated vacation leave to two (was, seven).

    TESTING PROGRAM
    SECTION 7.30. New provision amends GS 115C-174.11 to direct the SBE to continue to participate in the development of the Common Core State Standards in conjunction with a consortium of other states. Requires the SBE to review all national assessments developed by both multistate consortia and to implement the assessments that the SBE deems most appropriate to assess student achievement on the Common Core Standards. Also requires the SBE to plan for and require the administration of the ACT test in 11th grade to the extent that funds are available. Provides an exemption from taking the ACT test for students who have already taken a comparable test and scored at or above a level set by the SBE. Makes a conforming change.
    Adds two new Parts to Article 10A of GS Chapter 115C: Part 4, Student Diagnostic Tests, and Part 5, Career Readiness. Part 4 requires the SBE to plan for and require the administration of diagnostic tests in the eighth and tenth grades that align with the ACT test, to the extent that there are funds available. Part 5 directs the SBE to plan for and require LEAs to make the appropriate Work Keys tests available for all students who complete the second level of vocational/career courses, to the extent that funds are available.
    Provisions in this section apply beginning with the 2011-12 school year.

    FUND ONE LEA PER COUNTY
    SECTION 7.31. As the title indicates. Provides that the SBE is to begin allotting state funds on the basis of only one LEA per county beginning with the 2012-13 fiscal year. Specifies additional criteria regarding the allotment of funds on a one-LEA-per-county basis. Provides that this section does not apply to allotments to the Nash-Rocky Mount School Administrative Unit, the Edgecombe County School Administrative Unit, the Cleveland County School Administrative Unit, or the Gaston County School Administrative Unit.

    PART VIII. COMMUNITY COLLEGES

    REORGANIZATION OF THE COMMUNITY COLLEGES SYSTEM OFFICE
    SECTION 8.1. Identical to 4th edition.

    REPEAL OBSOLETE REPORTING REQUIREMENTS
    SECTION 8.2. Identical to 4th edition.

    IMPLEMENT ALTERNATIVE FORMULA MODEL
    SECTION 8.3. Identical to 4th edition.

    USE OF OVERREALIZED RECEIPTS TO SUPPORT ENROLLMENT GROWTH RESERVE RATHER THAN EQUIPMENT RESERVE
    SECTION 8.4. Identical to 4th edition.

    BASIC SKILLS PLUS
    SECTION 8.5. Identical to 4th division.

    CARRYFORWARD OF COLLEGE INFORMATION SYSTEM FUNDS
    SECTION 8.6. Identical to 4th edition.

    EQUIPMENT FUNDING
    SECTION 8.8. Same as 4th edition, except deletes requirement that the State Board of Community Colleges allocate $250,000 of the funds appropriated to the Community College System Office for the 2011-12 fiscal year for equipment to Forsyth Technical Community College.

    CLARIFICATION REGARDING EQUIPMENT TITLED TO STATE BOARD
    SECTION 8.9. Identical to 4th edition.

    NO STATE FUNDS FOR INTERCOLLEGIATE ATHLETICS
    SECTION 8.10. Identical to 4th edition.

    MANAGEMENT FLEXIBILITY REDUCTION/COMMUNITY COLLEGES
    SECTION 8.11. Deleted.

    COMMUNITY COLLEGE TUITION WAVERS
    SECTION 8.12. Same as 4th edition, except amends GS 115D-5(b) to clarify that the State Board of Community Colleges (SBCC) may provide for waivers of tuition and registration fees for courses requested by specified entities that support the organizations’ training needs and are on a specialized course list approved by the SBCC (was, courses requested for the training of personnel by the specified entities).
    Amends GS 115D-39(a1) to identify any federal firefighters, EMS personnel, and rescue and lifesaving personnel (was, applied only to federal law enforcement officers) with a permanent duty station in North Carolina as eligible for the state resident community college tuition rate for courses that support their organizations’ training needs and are approved for this purpose by the SBCC.

    FUNDING FOR MULTICAMPUS CENTERS
    SECTION 8.13. Identical to 4th edition.

    STUDY COMMUNITY COLLEGE PERFORMANCE MEASURES
    SECTION 8.14. Identical to 4th edition.

    COMMUNITY COLLEGE AUDITS
    SECTION 8.15. Identical to 4th edition.

    ENROLLMENT GROWTH
    SECTION 8.16. Identical to 4th edition.

    LIMITATION ON COMMUNITY COLLEGE TUITION
    SECTION 8.17. Deleted.

    EXEMPT COMMUNITY COLLEGES FROM APA
    SECTION 8.18. New provision repeals GS 150B-1(d)(14) and (19) which provided exemptions from the rule making provisions of Article 2A of GS chapter 150B for the Community Colleges System Office in developing guidelines for the Community College Facilities and Equipment Fund, and in developing criteria and guidelines administering the Customized Training Program under GS 115D 5.1. Adds a new subsection (g) to GS 150B-1 to provide that, except as provided in GS 143-135.3 (regarding boards, commissions, or other state agencies contracting for construction or repair work), no Article in GS Chapter 150B except Article 4 (judicial review) applies to the Community College Systems Office. Effective when it becomes law.

    CAPITAL IMPROVEMENTS AT COMMUNITY COLLEGES
    SECTION 8.19. New provision amends GS 115D-9 to provide that the authority of the State Board of Community Colleges (SBCC) to engage in specified activities in the processing of making capital improvements applies to state-funded property developments (was, state or non-state funded property developments) requiring the estimated expenditure of public money of $4 million or less (was, $1 million or less). Adds new subsection (h) to provide that the provisions of GS 143-341(3) (regarding the powers and duties of the Department of Administration with respect to capital projects), do not apply to a capital improvement project that is funded with non-state funds if the SBCC determines that the college has the expertise necessary to manage the project unless the assistance of the Office of State Construction is requested. Effective when it becomes law and applies to projects initiated on or after that date.

    ADDITIONAL FLEXIBILITY WITH REGARD TO COMMUNITY COLLEGE INVESTMENTS
    SECTION 8.20. New provision amends GS 115D-58.6 (investment of idle cash) to add definitions for cash balance (all moneys received into institutional fund accounts minus all expenses and withdrawals from those accounts in an official depository of the institution as designated by the local board of trustees consistent with GS 115D-58.7) and official depository (one or more banks, savings and loan associations, or trust companies in North Carolina designated by a community college board of trustees consistent with GS 115D-58.7).
    Provides that a community college may deposit at interest (was, deposit at interest or invest) all or part of the cash balance of any fund in any official depository of the institution. Creates a new subsection to deal with investments by an institution of all or part of the cash balance of any fund in an official depository of the institution. Provides that a community college is to manage its investments subject to restrictions and directions imposed by the board of trustees. Authorizes the institution to purchase, sell, and exchange securities on behalf of the board of trustees. Requires that the investment program be managed to allow investments and deposits to be converted into cash as needed. Provides that money shall (was, may) only be invested in the form of investments pursuant to GS 159-30(c) to county governments (was, county governments and no others) or in any form of investment established or managed by an investment advisor who is registered and in good standing with either the Securities and Exchange Commission or the NC Secretary of State, Securities Division, and is a member of the Securities Investor Protection Corporation. Clarifies that the investment securities listed in GS 159-30(c) may be bought, sold, and traded by private negotiation and that the institutions may pay all incidental costs resulting from these actions.
    Directs the board of trustees to appoint an Investment Committee with a minimum of three individuals with sufficient financial background to review and evaluate investment options. Provides additional guidelines regarding the experience and knowledge required of the Investment Committee members. Instructs the board of trustees as to their duties with respect to the management and investment of college funds. Amends GS 147-69.2 to add a new subdivision, (20) Institutional funds of the colleges of the North Carolina Community College System.

    PART IX. UNIVERSITIES

    CENTER FOR PUBLIC TELEVISION CONTINUATION REVIEW
    SECTION 9.1. Identical to 4th edition.

    UNIVERSITY CANCER RESEARCH FUND REPORTING REQUIREMENT
    SECTION 9.4. Identical to 4th edition.

    UNC BOARD OF GOVERNORS REVIEW OF FACULTY RECRUITMENT AND RETENTION
    SECTION 9.5. Identical to 4th edition.

    UNC MANAGEMENT FLEXIBILITY REDUCTION
    SECTION 9.6. Same as the 4th edition, except in the allocation of the management flexibility reduction, prohibits reducing state funds by more than 15% from the Governor’s Recommended Continuation Budget for 2011-13 fiscal biennium, in either fiscal year of the biennium, for the following (was, identified entities for whom there was to be no deduction made): (1) Hickory Metro Higher Education Center; (2) joint Graduate School of Nanoscience and Nanoengineering at North Carolina Agricultural and Technical State University and the University of North Carolina at Greensboro; (3) the North Carolina Research Campus; (4) Agricultural Extension; (5) Agricultural Research; (6) University of North Carolina School of Arts; and (7) the North Carolina Judicial College of the UNC School of Government.
    Prohibits any reduction in state funds in allocating the management flexibility reduction in either fiscal year of the 2011-13 biennium to the following: (1) Center for Turfgrass Environmental Research and Education at North Carolina State University; (2) Need-Based Financial Aid; and (3) Aid to Private Colleges.

    ADVISORY COMMISSION ON MILITARY AFFAIRS/MODIFY MEMBERSHIP
    SECTION 9.6A. New provision amends GS 127C-2 to add the President of the University of North Carolina and the President of the North Carolina Community College System as nonvoting, ex-officio members of the North Carolina Advisory Commission on Military Affairs. Increases the number of nonvoting, ex-officio members to 17.

    CLARIFICATION/GENERAL FUND APPROPRIATIONS CARRIED FORWARD BY UNC SHALL NOT BE USED FOR CAPITAL IMPROVEMENTS
    SECTION 9.6B. New provision amends GS 116-30.3 as the title indicates.

    ALLOW CHANCELLORS OF CONSTITUENT INSTITUTIONS TO APPROVE CERTAIN REPAIR AND MAINTENANCE PROJECTS AND FUND THOSE WITH AVAILABLE OPERATING FUNDS
    SECTION 9.6C. New provision amends GS 116-13.1 as the title indicates. Provides that the chancellor of UNC’s constituent institutions may approve the expenditure of available operating funds that does not exceed $1 million per project for certain repair and maintenance projects. Provides that funds contractually obligated to an approved project do not revert at the end of the fiscal year and remain available to fund the completion of the project.

    AUTHORIZE BOARD OF GOVERNORS TO PERMIT NORTH CAROLINA STATE UNIVERSITY TO SELF-PERFORM ENERGY CONSERVATION MEASURES AND TO AUTHORIZE ENERGY SAVINGS REALIZED BY NORTH CAROLINA STATE UNIVERSITY TO BE USED AS A SOURCE OF REPAYMENT FOR CERTAIN DEBTS
    SECTION 9.6D. New provision GS 143-64.17L authorizes the UNC Board of Governors (Board) as the title indicates. Requires that both of the following conditions be met in order for the Board to authorize North Carolina State University (NCSU) to implement an energy conservation measure without entering into a guaranteed energy savings contract: (1) the Board finds that the resulting energy savings equal or exceed the total cost of implementing the measure, and (2) the energy conservation measure is for an existing building or utility system.
    Enacts new GS 143-64.17M to require an energy savings analysis prior to the implementation of an energy conservation measure under proposed GS 143-64.17L, and a post-implementation analyses by the institution after implementation of an energy conservation measure. Requires that both the prior and post-implementation analyses be done by a third party, and that the post-implementation analyses be done on an annual basis. Requires the third party to provide a reconciliation statement annually which is to disclose any shortfall or surplus between the estimated energy usage and operational savings set forth in the required energy savings analysis and actual energy usage and operational savings incurred during a given year. Provides additional responsibilities on the part of the institution if the reconciliation statement reveals a shortfall in energy savings for a given year.
    Amends GS 116-30.3B(b) to provide that appropriations to the Board of Governors on behalf of a constituent institution are not to be reduced as a result of the institutions energy savings.
    Amends GS 143-64.17F(b) to provide that the rules adopted under this subsection do not apply to energy conservation measures implemented under new GS 143-64.17L.
    Amends GS 143-64.17H to require that a state governmental unit entering into a guaranteed energy savings contract or implementing an energy conservation measure under GS 143-64.17L must report either the contract and its terms or the implementation of the measure to the State Energy Office of the Department of Commerce within 30 days of the date the contracted is entered into or the measure is implemented. Makes a conforming change.
    Makes conforming change to GS 142-63, GS 142-64(a), and GS 116D-22(3).

    AMEND REGULATION OF UNC INSTITUTIONAL TRUST FUNDS AND FUNDS OF UNC HEALTH CARE SYSTEM
    SECTION 9.6E. New provision amends GS 116-36.1 as the title indicates. Directs the Board to adopt uniform policies and procedures applicable to the deposit and investment, as well as the administration of the trust funds, of UNC and of each institution. Provides that trust funds and investment earnings on those funds are available for expenditure by each institution without any further authorization from the General Assembly. Directs each institution to submit reports or other information regarding its trust fund accounts as required by the Board (was, the Director of the Budget). Provides that the Board may authorize, via the President, that the chancellors may deposit or invest each institution’s available trust fund cash balances in interest-bearing accounts and other investments as may be authorized by the Board in the exercise of its sound discretion, without regard to any statute or rule of law relating to the investment of funds by fiduciaries.
    Amends GS 116-37(e) to provide that all receipts of the University of North Carolina Hospitals at Chapel Hill (UNC Hospitals) may be invested pursuant to GS 116-37.2(h) (was, GS 147.69.2(b3)). Amends GS 116-37.2 to expand the definition for funds to include moneys received by UNC Hospitals with borrowings for capital; equipment or construction projects to further services it renders in either or both of its hospital or clinical operations. Makes additional conforming changes to reflect changes in GS 116-36.1.

    UNC/INSTITUTIONAL EXPENDITURE BENCHMARKS
    SECTION 9.6F. New provision amends GS 116-31.10 to provide that an institution with an expenditure benchmark greater than $250,000 is to comply with subsection GS 116-31.10(b) for any purchase greater than the institution’s benchmark set by the Board (was, greater than $250,000) but not greater than $500,000. Effective October 1, 2011.

    UNC ASSUME RESPONSIBILITY FOR QUALITY ACCEPTANCE INSPECTION PROCESS
    SECTION 9.6G. New provision amends GS 143-60 which provides that the Secretary of Administration may adopt, modify, or abrogate rules covering specified purposes. Provides that provisions regarding the delivery of supplies and materials as specified do not apply to the constituent institutions of UNC and provides that the President of UNC is to issue regulations and guidelines for the conducting of quality inspections by constituent institutions to ensure that deliveries have been made in compliance with specifications. Effective October 1, 2011.

    NCSU MAY SELL TIMBER
    SECTION 9.6H. New provision adds new GS 143-64.06 as the title indicates. Provides that North Carolina State University may sell timber that is severed or transferred from any unimproved timberlands owned or allocated to NCSU without involvement by the State Surplus Property Agency (Agency) without having to pay any service charge or surcharge to the Agency.

    USE OF ESCHEAT FUND FOR NEED-BASED FINANCIAL AID PROGRAMS
    SECTION 9.8. Identical to 4th edition.

    UNC NEED-BASED FINANCIAL AID PROGRAM FUNDING SCHEDULE
    SECTION 9.9. Same as 4th edition, except decreases the amounts to be carried forward and held in reserve by the State Education Assistance Authority to $59,859,562 for each of fiscal years 2011-12 and 2012-13 (was, $89 million for each fiscal year).

    CONSOLIDATE ASSETS OF MILLENNIUM TEACHING SCHOLARSHIP LOAN PROGRAM AND PROSPECTIVE TEACHERS SCHOLARSHIP LOAN FUND/GIVE PRIORITY FOR SCHOLARSHIP LOANS FOR PROSPECTIVE TEACHERS TO CERTAIN FORMER TEACHER ASSISTANTS
    SECTION 9.10. Same as the 4th edition, except directs the State Education Assistance Authority to give priority when awarding scholarship loans to any applicant who qualifies for a scholarship loan under GS 116-209.33 if the applicant was formerly employed as a teacher assistant at a public school in North Carolina and lost the position as a result of a reduction in force.

    LIMIT CERTAIN FINANCIAL AID GRANTS TO THE TRADITIONAL TIME PERIOD REQUIRED TO EARN A BACCALAUREATE DEGREE
    SECTION 9.11. Same as the 4th edition except codifies Section 9.11(a) as new GS 116-25.1, limiting the receipt of UNC need-based financial aid grants to no more than nine academic semesters or its equivalent if the individual is enrolled part-time, unless the student is enrolled in a program officially designated by the Board as a five-year degree program. Sets the limit for receipt of need-based financial aid grants for students enrolled in a five-year degree program at 11 full-time academic semesters or its equivalent if enrolled part-time. Effective for the 2012-13 academic year and each subsequent year.
    Deletes amendments to GS 116-21.3(d) (legislative tuition grants) and to GS 116-43.5(f) (state tuition grants). Makes additional conforming changes to reflect the deleted amendments.

    ACADEMIC COMMON MARKET
    SECTION 9.12. Identical to 4th edition.

    ELIMINATE CERTAIN UNC TUITION WAIVERS FOR NONRESIDENT STUDENTS
    SECTION 9.13. Deleted.

    ELIMINATE PRIVATE MEDICAL SCHOOL AID
    SECTION 9.14. Identical to 4th edition.

    TRANSFER NORTH CAROLINA ARBORETUM RESPONSIBILITIES TO WESTERN CAROLINA
    SECTION 9.15. Identical to 4th edition.

    SPECIAL RESPONSIBILITY CONSTITUENT INSTITUTION AUDITS
    SECTION 9.16. Identical to 4th edition.

    UNC NEED-BASED FINANCIAL AID PROGRAM AND UNC MANAGEMENT FLEXIBILITY
    SECTION 9.17. Deleted.

    NEED-BASED SCHOLARSHIPS FOR STUDENTS ATTENDING PRIVATE INSTITUTIONS OF HIGHER EDUCATION
    SECTION 9.18. New provision adds new Article 34 to GS Chapter 116 to provide as the title indicates (applies to the 2012-13 academic year and each subsequent academic year). Presents definitions for terms as used in Article 34. Delineates the eligibility requirements to receive a scholarship under the proposed Article. Includes that only needy North Carolina students are eligible to receive scholarships and provides that needy North Carolina students are students whose expected family contribution under the federal methodology does not exceed $5,000. Requires that the student must meet all other eligibility requirements for the federal Pell Grant except for the expected family contribution. Requires the student to qualify as a legal resident of this state for tuition purposes and that the student must meet enrollment standards. Provides that a student’s continued eligibility requires that the student meet certain achievement standards. Limits the duration of the scholarship for a qualifying student to four full academic years. Provides guidelines regarding determining the amount of any scholarship awarded under this proposed Article. Effective July 1, 2011.
    Provides that the scholarships awarded under this proposed Article are to be administered under the State Education Assistance Authority (Authority) under rules adopted by the Authority, effective July 1, 2011. Allows the Authority to use up to 1.5% of the funds appropriated for scholarships for administrative purposes. Provides that unexpended funds are to remain available for future scholarships awarded under this proposed Article.
    Makes conforming changes to GS 115C-499.1(3). Repeals the following statutes: GS 116-19, 116-20, 116-21, 116-21.1, 116-21.2, 116-21.3, 116-21.4, 116-22, and 116-43.5.
    Directs the Authority to report no later than June 1, 2013 to Ed Oversight regarding the implementation of proposed Article 34. Prescribes information to be contained in the report. Effective July 1, 2011.
    Amends GS 90-332.1(a)(4a) to provide that Article 24 (Licensed Professional Counselors Act) does not apply to a nonprofit postsecondary educational institution as described in GS 116-80 that is not a seminary, Bible school, Bible college, or similar religious institution.
    Amends GS 105-278.4(a) to provide that buildings, the land that they occupy, and additional land reasonably necessary for the convenient use of the building are exempt from taxation if the buildings are owned by a nonprofit postsecondary educational institution as described in GS 116-80 that is not a seminary, Bible school, Bible college, or similar religious institution. Amends GS 116-11(10a) to include a nonprofit postsecondary educational institution as described in GS 116-80 that is not a seminary, Bible school, Bible college, or similar religious institution in the definition for institutions of higher learning. Makes a conforming change to GS 143-49(6).
    Except as otherwise indicated, the provisions of this Section are effective July 1, 2012.

    CONSTITUENT INSTITUTIONS MAY PURCHASE MOTOR VEHICLES INDEPENDENT OF MOTOR FLEET MANAGEMENT
    SECTION 9.19. New provision amends GS 143-341(8)i.3 as the title indicates.

    PART X. DEPARTMENT OF HEALTH AND HUMAN SERVICES

    CHILD CARE SUBSIDY RATES
    SECTION 10.1 Identical to 4th edition.

    CHILD CARE ALLOCATION FORMULA
    SECTION 10.2. Identical to 4th edition.

    CHILD CARE FUNDS MATCHING REQUIREMENT
    SECTION 10.3. Identical to 4th edition.

    CHILD CARE REVOLVING LOAN
    SECTION 10.4. Identical to 4th edition.

    EXPIRATION OF EARLY EDUCATION CERTIFICATION REQUIREMENT
    SECTION 10.4A. New provision, effective July 1, 2011, repeals SL 2010-178 (requires all early care and education providers working in licensed child care centers or licensed family child care homes to obtain and maintain early educator certification).

    EARLY CHILDHOOD EDUCATION AND DEVELOPMENT INITIATIVES ENHANCEMENTS
    SECTION 10.5. Effective July 1, 2011, dissolves the North Carolina Partnership for Children and transfers the activities assigned to that Partnership to the Division of Child Development of the Department of Health and Human Services. Directs the Division to develop a plan to allocate funds available to it to local partnerships. Retains limitations on use of funds by local partnerships as specified in 4th edition, with following changes: (1) limits administrative costs to 4% of the total statewide allocation to all partnerships; (2) directs Division to establish salary caps for employees of partnerships, ranging from $100,000 for a partnership that receives more than $10 million in state funds, to $60,000 for partnerships that receive no more than $1 million, although non-state funds may be used to provide higher salaries; (3) specifies that for each year of 2011-13 biennium, local partnerships must spend at least $72 million, of which $20 million is to be spent to reduce waiting lists for child care subsidies.

    ADMINISTRATIVE ALLOWANCE FOR COUNTY DEPARTMENTS OF SOCIAL SERVICES
    SECTION 10.6. Identical to 4th edition.

    CONSOLIDATE MORE AT FOUR PROGRAM INTO DIVISION OF CHILD DEVELOPMENT
    SECTION 10.7. Identical to 4th edition.

    MENTAL HEALTH CHANGES
    SECTION 10.8. Identical to 4th edition.

    JOHNSTON COUNTY LME ADMINISTRATIVE FUNDING.
    SECTION 10.8A. Deleted.

    MH/DD/SAS HEALTH CARE INFORMATION SYSTEM PROJECT
    SECTION 10.9. Identical to 4th edition.

    LME FUNDS FOR SUBSTANCE ABUSE SERVICES
    SECTION 10.10. Identical to 4th edition.

    MH/DD/SAS COMMUNITY SERVICE FUNDS
    SECTION 10.11. Substantively identical to 4th edition, except requires Division to reduce the Community Service Fund by $30 million, rather than by $20 million.

    CONSOLIDATION OF FORENSIC HEALTH CARE AT DOROTHEA DIX COMPLEX
    SECTION 10.12. Identical to 4th edition.

    TRANSITION OF UTILIZATION MANAGEMENT OF COMMUNITY-BASED SERVICES TO LOCAL MANAGEMENT ENTITIES
    SECTION 10.13. Identical to 4th edition.

    THIRD PARTY BILLING FOR STATE FACILITIES
    SECTION 10.14. Identical to 4th edition.

    COLLABORATION AMONG DEPARTMENTS OF ADMINISTRATION, HEALTH AND HUMAN SERVICES, JUVENILE JUSTICE AND DELINQUENCY PREVENTION AND PUBLIC INSTRUCTION OF SCHOOL-BASED CHILD AND FAMILY TEAM INITIATIVE
    SECTION 10.15. Identical to 4th edition.

    DHHS POSITION ELIMINATIONS
    SECTION 10.16. Same as 4th edition, except the amount of reduction required by the elimination of positions is increased from $6.5 million to $7,771,997.

    DHHS REGULATORY FUNCTIONS STUDY AND PLAN
    SECTION 10.17. Deleted.

    REDUCE FUNDING FOR NONPROFIT ORGANIZATIONS
    SECTION 10.18. Increases amount of reduction to nonprofits from $5 million to $10 million, and prohibits reduction of allocation to the NC High School Athletic Association by more than 10%. Deletes prohibition on reduction of funds for organizations that provide direct services to individuals with developmental disabilities.

    PROHIBIT USE OF ALL FUNDS FOR PLANNED PARENTHOOD ORGANIZATIONS
    SECTION 10.19. Identical to 4th edition.

    LIABILITY INSURANCE
    SECTION 10.20. Identical to 4th edition.

    CHANGES TO COMMUNITY-FOCUSED ELIMINATING HEALTH DISPARITIES INITIATIVE
    SECTION 10.21. Same as 4th edition, except limits the number of grants that can be issued to 12, with a maximum of $300,000 per grant, with grants running from two to three years. Grants must be distributed across the three regions of the state.

    FUNDS FOR SCHOOL NURSES
    SECTION 10.22. Identical to 4th edition.

    REPLACEMENT OF RECEIPTS FOR CHILD DEVELOPMENT SERVICE AGENCIES
    SECTION 10.23. Identical to 4th edition.

    HEALTH INFORMATION TECHNOLOGY
    SECTION 10.24. Identical to 4th edition.

    FUNDS FOR STROKE PREVENTION
    SECTION 10.25. Identical to 4th edition.

    AIDS DRUG ASSISTANCE PROGRAM
    SECTION 10.26. Identical to 4th edition.

    MEN’S HEALTH
    SECTION 10.26A. Identical to 4th edition.

    NC HEALTH CHOICE MEDICAL POLICY
    SECTION 10.27. Identical to 4th edition.

    COMMUNITY CARE OF NORTH CAROLINA
    SECTION 10.28. Identical to 4th edition.

    MEDICAID MANAGEMENT INFORMATION SYSTEM (MMIS) FUNDS/IMPLEMENTATION OF MMIS
    SECTION 10.29.(a) New provision requires Department of Health and Human Services (DHHS), by August 1, 2011, to provide detailed cost information on the replacement Medicaid Management Information System (MMIS) to specified committees of the General Assembly and Office of State Budget and Management. Sets forth an enumerated list of information that must be included in the report.
    SECTION 10.29.(b) Moves Section 10.29(a) of 4th edition (appropriation provision) to this subsection and adds language requiring DHHS to consult with the Joint Legislative Commission on Governmental Operations, and to immediately notify specified legislative bodies if DHHS determines it requires funding beyond prior year earned revenues to advance the project.
    SECTION 10.29.(c) Same as Section 10.29.(b) of 4th edition except moves some language of Section 10.29.(b) of 4th edition to Section 10.29.(d).
    SECTION 10.29.(d) Same as portion of Section 10.29.(b) of 4th edition except requires DHHS, before signing the vendor contract, to report detailed cost information to specified House and Senate chairs and committees. Adds requirements regarding any sole source contract.
    SECTION 10.29.(e) New provision requires the State Chief Information Officer to ensure that the replacement MMIS meets all state requirements for project management and to immediately report any failure to meet such requirements to the specified chairs of legislative committees and the Office of State Budget and Management.
    SECTION 10.29.(f) Same as Section 10.29.(c) of 4th edition except adds that private counsel review of requests for proposals and contracts includes amendments that exceed $10 million; the review must include whether contract terms are in the state’s best interests.
    SECTION 10.29.(g) Same as Section 10.29.(d) in 4th edition except requires DHHS to develop a revised comprehensive schedule by August 1, 2011, and requires changes to the schedule to be reported monthly, rather than quarterly.
    SECTION 10.29.(h) Same as Section 10.29.(e) in 4th edition except requires report to include any changes, or anticipated changes, in the scope, functionality, or projected costs of the project.
    SECTION 10.29.(i) Identical to Section 10.29.(f) in 4th edition.

    NORTH CAROLINA FAMILIES ACCESSING SERVICES THROUGH TECHNOLOGY (NC FAST) FUNDS
    SECTION 10.30. Identical to 4th edition.

    MEDICAID
    SECTION 10.31.(a) Same as 4th edition except adds that DHHS must apply Medicaid medical policy to recipients who have primary insurance other than Medicare, Medicare Advantage, and Medicaid, unless application of the policy would adversely affect patient care.
    SECTION 10.31.(b) Same as 4th edition except requires providers to submit requests for prior authorizations electronically via the vendor’s website.
    SECTION 10.31.(c) Identical to 4th edition.
    SECTION 10.31.(d) Same as 4th edition except, with respect to optional drug services, removes language prohibiting DHHS from implementing prior authorization on medications prescribed for Medicaid recipients for the treatment of mental illness or HIV/AIDS.
    SECTION 10.31.(e) Identical to 4th edition.
    SECTION 10.31.(f) Identical to 4th edition.
    SECTION 10.31.(g) Identical to 4th edition.

    MEDICAID PROVIDER ASSESSMENTS
    SECTION 10.31A. New provision authorizes DHHS to implement a Medicaid assessment program for any willing provider category allowed under federal regulations up to the maximum allowed by federal regulation. Sets forth permissible use of assessment funds.

    DMA CONTRACT SHORTFALL
    SECTION 10.32. Identical to 4th edition.

    MEDICAID COST CONTAINMENT ACTIVITIES
    SECTION 10.33. Identical to 4th edition.

    MEDICAID SPECIAL FUND TRANSFER
    SECTION 10.34. Identical to 4th edition.

    ACCOUNTING FOR MEDICAID RECEIVABLES AS NONTAX REVENUE
    SECTION 10.35. Identical to 4th edition.

    FAMILIES PAY PART OF THE COST OF SERVICES UNDER THE CAP-MR/DD PROGRAM AND THE CAP-CHILDREN’S PROGRAM BASED ON FAMILY INCOME
    SECTION 10.36. Identical to 4th edition.

    AUTHORIZE THE DIVISION OF MEDICAL ASSISTANCE TO TAKE CERTAIN STEPS TO EFFECTUATE COMPLIANCE WITH BUDGET REDUCTIONS IN THE MEDICAID PROGRAM
    SECTION 10.37. Same as 4th edition except quantifies the provider rate reduction (3%) and changes the providers that are excepted from the rate reduction. Limits length of stay for mental health residential services to no more than 120 days (was, no more than 180 days). Removes language prohibiting reductions for adult care home services below current levels. Prohibits the provider rate for physicians from being reduced and requires inpatient hospital rates to be reduced by an annualized amount not to exceed by 9.6% (does not apply to non-state-owned free standing psychiatric and rehabilitation hospitals). Removes local health departments and Critical Access Behavioral Health Agencies from the list of providers exempt from the rate reductions. Sets schedule for rate reductions that includes implementation beginning October 1, 2011. Eliminates from Medicaid services optical services and supplies; limits, beginning fiscal year 2012-13, adult dental to emergency and pregnant women only. Authorizes DHHS to adjust the rate paid for incontinence supplies. Eliminates respiratory therapy, chiropractic services, home infusion therapy, over-the-counter drugs, podiatry (except for diabetes), adult physical therapy, occupational therapy, and speech therapy. Limits outpatient specialized therapies to three visits per year and reduces nursing homes ceiling to 100%. Eliminates H Codes, provisionally licensed MH billing, and reduces service limits.

    MEDICAID WAIVER FOR ASSISTED LIVING
    SECTION 10.38. Same as 4th edition except providers who do not accept reimbursement for residents’ personal care services through Medicaid or the State-County Special Assistance program are not subject to the provisions, requirements, or conditions of the Medicaid Waiver.

    PROGRAM INTEGRITY
    SECTION 10.39. Identical to 4th edition.

    TRANSFER TO OFFICE OF ADMINISTRATIVE HEARINGS
    SECTION 10.40. Identical to 4th edition

    NC HEALTH CHOICE
    SECTION 10.41. Same as 4th edition except provides that health benefits changes of the Program must meet the coverage requirements set forth in the amended statutory requirements rather than “begin to transition” to meet the requirements.

    MEDICATION THERAPY MANAGEMENT PILOT
    SECTION 10.42. Identical to 4th edition.

    NO INFLATIONARY MEDICAID PROVIDER RATE INCREASES
    SECTION 10.43. Moved to Section 10.37.(a)(6)a.5.

    MEDICAID RECIPIENT APPEALS
    SECTION 10.44.(a) New provision amends GS 108A-70.9A to require that a properly completed appeal request form must be filed with the Office of Administrative Hearings (OAH). DHHS must reinstate or continue services only if the appeal is filed within 10 days of the adverse notice. If the appeal is filed more than 10 days from the date of the adverse notice, DHHS must not authorize payment for services at the level provided on the day preceding the adverse determination or the amount requested by the recipient pending the outcome of the appeal. Provides that only a completed DHHS individualized appeal request form may be accepted for hearing by OAH. Appeal request forms filed more than 30 days from the date of adverse notice must not be accepted for hearing by OAH under any circumstances. Sets forth notice requirements that OAH must give DHHS upon receipt of a hearing request.
    SECTION 10.44.(b) New provision amends GS 108A-70.9B to provide that “good cause” for holding a hearing in the county of residence of the recipient, rather than Wake County, is limited to the recipient’s impairments limiting travel. Redefines “good cause” necessary to reopen a contested Medicaid case. Makes other technical and clarifying changes.

    DEPARTMENT TO DETERMINE COST-SAVINGS FOR MEDICAID THAT WOULD RESULT FROM PROVISION OF MUSCULOSKELETAL HEALTH SERVICES
    SECTION 10.45. Identical to 4th edition.

    MEDICAID PROVIDER RATE COST ADJUSTMENTS
    SECTION 10.46. Moved to Section 10.37.(a)(6) and changes formula for reducing rate for hospital inpatient services.

    DHHS SAVINGS THROUGH CCNC
    SECTION 10.47. Same as 4th edition except requires savings of $83,071,581 for 2011-12 and $90 million for 2012-13.

    INCREASE GENERIC DRUG DISPENSING RATE IN MEDICAID BY REVISING PHARMACY DISPENSING FEES FOR PHARMACISTS THAT DISPENSE HIGH PROPORTIONS OF GENERIC DRUGS
    SECTION 10.48 Same as 4th edition except changes amount of required savings to $15 million for 2011-12 and $24 million for 2012-13 (was, $18.2 million and $29 million, respectively).

    NC NOVA
    SECTION 10.49. Identical to 4th edition.

    INTENSIVE FAMILY PRESERVATION SERVICES FUNDING AND PERFORMANCE ENHANCEMENTS
    SECTION 10.50. Identical to 4th edition.

    FOSTER CARE AND ADOPTION ASSISTANCE PAYMENT RATES
    SECTION 10.51. Identical to 4th edition.

    ADOPTION ASSISTANCE VENDOR PAYMENTS
    SECTION 10.51A. New provision authorizes DHHS to eliminate the Adoption Assistance Vendor payments for all adoptions finalized on or after July 1, 2011. Only children who have been in foster care are eligible for Adoption Assistance.

    CHILD CARING INSTITUTIONS
    SECTION 10.52. Identical to 4th edition.

    REPEAL STATE ABORTION FUND
    SECTION 10.53. Identical to 4th edition.

    CHILD WELFARE POSTSECONDARY SUPPORT PROGRAM
    SECTION 10.54. Identical to 4th edition.

    TANF BENEFIT IMPLEMENTATION
    SECTION 10.55. Identical to 4th edition.

    PAYMENT FOR LIEAP/CIP
    SECTION 10.56. Same as 4th edition except directs that the Crisis Intervention Program payment must not exceed $600 per household per fiscal year.

    CONSOLIDATE BLIND, DEAF, AND VOCATIONAL REHABILITATION DIVISIONS
    SECTION 10.57. Deleted.

    NON-MEDICAID REIMBURSEMENT CHANGES
    SECTION 10.58. Identical to 4th edition.

    STATE-COUNTY SPECIAL ASSISTANCE
    SECTION 10.59 Identical to 4th edition.

    DHHS BLOCK GRANTS
    SECTION 10.60. Same as 4th edition except moves $1 million of TANF block grant funds from Work First Family Assistance to the Division of Services for the Blind for an additional $1 million allocation to the Independent Living Program. Reduces the Low-Income Home Energy Assistance block grant allocation to the Division of Social Services Crisis Intervention Program by $110,638 and allocates the same amount to the NC Commission on Indian Affairs. Requires DHHS, Division of Social Services, to certify county block grant funds in the appropriate state level services based on prior year actual expenditures. Adds provision relating to low-income energy assistance that requires county departments of social services to submit to the Division of Social Services an outreach plan for targeting households with 60 year-old household members no later than August 1 of each year.

    PART XI. DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES

    REPEAL BOARD OF AGRICULTURE REVIEW OF FEE SCHEDULES
    SECTION 11.2. Identical to 4th edition.

    RECLASSIFY THREE VACANT POSITIONS WITHIN DACS TO ANIMAL WELFARE PROGRAM
    SECTION 11.7. Identical to 4th edition.

    AGRICULTURAL RESEARCH STATIONS OPERATING REDUCTIONS
    SECTION 11.8. Deleted.

    PART XII. DEPARTMENT OF LABOR

    LABOR/REPEAL STATUTE REQUIRING BIENNIAL REVIEW OF FEES BY DEPARTMENT
    SECTION 12.1. Identical to 4th edition.

    PART XIII. DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

    ABOLISH, TRANSFER TO OTHER DEPARTMENTS, OR CONSOLIDATE WITHIN DENR ALL ENVIRONMENTAL HEALTH PROGRAMS UNDER DENR
    SECTION 13.3. Makes numerous technical changes to 4th edition, but transfers the same entities as transferred under 4th edition, except transfers the Grade “A” Milk Sanitation Program to the Division of Public Health of DHHS rather than to the Food and Drug Protection Division of the Department of Agriculture and Consumer Services.

    MODIFY ELIMINATION OF NON-MATCH POSITIONS IN REGIONAL OFFICES
    SECTION 13.3A. Deleted.

    REQUIRE DENR TO USE DWQ’S GROUNDWATER INVESTIGATION UNIT’S WELL DRILLING SERVICES IN OTHER DENR DIVISIONS
    SECTION 13.4. Identical to 4th edition.

    ADDITIONAL USES OF HAZARDOUS WASTE FEES
    SECTION 13.5. Deleted.

    DENR CIVIL PENALTY ASSESSMENTS
    SECTION 13.6. Identical to 4th edition.

    WATER AND AIR QUALITY ACCOUNT REVERTS
    SECTION 13.7 Identical to 4th edition.

    CHANGE EFFECTIVE DATE REGARDING WELL TESTING
    SECTION 13.10. Identical to 4th edition.

    FUNDS FOR CLEANUP AND MONITORING OF TEXFI SITE CONTAMINATION
    SECTION 13.10A. Identical to 4th edition.

    FUNDS FOR RECYCLING PROGRAMS FOR PRODUCTS THAT CONTAIN MERCURY

    SECTION 13.10B. Identical to 4th edition.

    USE OF FUNDS OBTAINED FROM CLOSING THE RALEIGH OFFICE OF THE DIVISION OF COASTAL MANAGEMENT
    SECTION 13.10C. Deleted.

    FUNDS FOR DENR STUDY OF ONSHORE SHALE GAS RESOURCES IN NC
    SECTION 13.10D. Rewrites provision to direct that funds for study come from the Mercury Switch Removal Account, and specifies that the study is to focus on shale gas resources, provided Senate Bill 709 becomes law.

    FLEXIBILITY IN REDUCTIONS AT DENR REGIONAL OFFICES
    SECTION 13.10E. Deleted.

    RESTORE CERTAIN POSITIONS AT DENR REGIONAL OFFICES
    SECTION 13.10F. Deleted.

    DENR CELL PHONE FUNDS REDUCTION
    SECTION 13.10G. Deleted.

    DENR MOTOR FLEET MANAGEMENT FUNDS REDUCTION
    SECTION 13.10H. Deleted.

    USE OF FUNDS/FOOD AND LODGING PROGRAM
    SECTION 13.10I. Deleted

    REPEAL DENR REVIEW OF FEE SCHEDULES
    SECTION 13.11. Identical to 4th edition.

    DWSRF LOANS AND GRANTS TO INVESTOR–OWNED DRINKING WATER CORPORATIONS
    SECTION 13.11A. New provision amends GS 159G-31 to allow investor-owned for profit drinking water corporations to apply for loans and grants from the Drinking Water State Revolving Fund. Makes conforming statutory changes.

    REGULATORY REFORM FOR DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES, DEPARTMENT OF LABOR, AND DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES
    SECTION 13.11B. New provisions in GS Chapter 95, 106, and 143B establish limits on rule-making authority of the three departments cited in the title. Each section provides that the department may not adopt a rule that imposes a more restrictive standard than one imposed by federal law, subject to exceptions established by the new statutes. The exceptions are for serious and unforeseen threats to health and safety, express legislative mandate to adopt rules, changes in budgetary policy, federally mandated rules, or court orders. For proposed rules with no federal analog, the agency must prepare a formal evaluation of costs and benefits of the rule.

    PARKS AND RECREATION TRUST FUND; ALLOCATION OF DEED STAMP TAX PROCEEDS CREDITED TO FUND
    SECTION 13.14. Same as 4th edition, but with different amounts than in 4th edition: increases allocation to state parks to $9.75 million from $8 million; increases allocation to local governments to $6,345,000 from $4,230,000; and increases allocation to Beach Access Program to $1,057,500 from $705,000.

    NATURAL HERITAGE TRUST FUND USED FOR COSTS TO ADMINISTER PLANT CONSERVATION PROGRAM/CONSERVATION PLANNING & COMMUNITY AFFAIRS PROGRAM
    SECTION 13.16. Identical to 4th edition.

    OYSTER SANCTUARY PROGRAM SUPPORT
    SECTION 13.18. Identical to 4th edition.

    MARINE FISHERIES ENCOURAGED TO CONTRACT WITH PRIVATE SECTOR FOR OYSTER SANCTUARY RESTORATION
    SECTION 13.18A. New provision applies as title indicates.

    DIVISION OF MARINE FISHERIES TO USE DIVISION OF FOREST RESOURCES MECHANICS FOR AIRCRAFT MAINTENANCE
    SECTION 13.18B. New provision applies as title indicates.

    END PILOT PROGRAM FOR ANNUAL INSPECTIONS OF CERTAIN ANIMAL OPERATIONS
    SECTION 13.21. Identical to 4th edition.

    END DSWC ROLE REGARDING ANIMAL WASTE MANAGEMENT SYSTEMS
    SECTION 13.22. Identical to 4th edition.

    TRANSFER DIVISION OF SOIL AND WATER CONSERVATION AND SOIL AND WATER CONSERVATION COMMISSION TO DACS
    SECTION 13.22A. New provision transfers Division of Soil and Water Conservation to the Department of Agriculture and Consumer Services by Type I transfer, and transfers Soil and Water Conservation Commission to DACS by Type II transfer. Makes numerous conforming changes.

    AGRICULTURAL WATER RESOURCES ASSISTANCE PROGRAM/CONFORMING CHANGES; FUNDS TO PROMOTE WATER SUPPLY DEVELOPMENT
    SECTION 13.23. Identical to 4th edition, except deletes provisions contingent on House Bill 609 becoming law.

    CONTRACT TO OUTSOURCE GIFT SHOPS AT NC ZOO TO DIRECT PROFITS TO ZOO FUND
    SECTION 13.24. Identical to 4th edition.

    TRANSFER FORESTRY DIVISION AND FORESTRY COUNCIL FROM DENR TO DACS
    SECTION 13.25. Identical to 4th edition.

    CLEAN WATER MANAGEMENT TRUST FUND
    SECTION 13.26. Same as 4th edition except increases from $1 million to $1.5 million the amount allocated during 2011-13 fiscal biennium for the Readiness and Environmental Protection Initiative and any other U.S. Department of Defense program, as specified, and increases from $6 million to $8 million the amount allocated for wastewater projects, water quality restoration projects, mini-grants, conservation easements, and stormwater projects.

    NEW FUNDING SOURCE FOR WILDLIFE RESOURCE COMMISSION OPERATING BUDGET
    SECTION 13.27. Same as 4th edition, except reduces from $18.5 million to $16 million the appropriation from the General Fund to the Wildlife Resources Commission, and removes requirement that the funds be used for personal services expenditures only.

    ANNUAL REPORT TO GOV OPS ON WILDLIFE RESOURCES FUND EXPENDITURES
    SECTION 13.28. Identical to 4th edition.

    ANNUAL APPROPRIATIONS FOR BEAVER DAMAGE CONTROL PROGRAM FROM FUNDS AVAILABLE TO THE WILDLIFE RESOURCES COMMISSION
    SECTION 13.29. Identical to 4th edition.

    MUSEUM OF NATURAL SCIENCES TEMPORARY WAGES
    SECTION 13.30. Deleted.

    GREEN SQUARE OPERATING RESERVE
    SECTION 13.31. Deleted.

    SOIL AND WATER AREA COORDINATOR POSITIONS AT DENR REGIONAL OFFICES
    SECTION 13.32. Deleted.

    FOREST RESOURCES OPERATING REDUCTION
    SECTION 13.33. Deleted.

    PARKS AND RECREATION OPERATING REDUCTION
    SECTION 13.34. Deleted.

    PART XIV. DEPARTMENT OF COMMERCE

    NER BLOCK GRANTS
    SECTION 14.1. Identical to 4th edition but adds new section 14.1(g) to restrict use of Infrastructure funds to the installation of public water or sewer lines and improvements to water or sewer treatment plants that have specific problems such as being under moratoriums or special orders of consent, and to prevent the reallocation of subsection (a) federal block infrastructure funds.

    ONE NORTH CAROLINA FUND
    SECTION 14.2. Same as 4th edition but makes major changes as follows:
    (1) Deletes section 14.2(b), which would authorize the Department of Commerce (DOC) to use up to $250,000 of One North Carolina Fund appropriations to create and maintain an electronic database;
    (2) Adds new section 14.2(b) to amend GS 143B-437.07 (Economic development grant reporting) to (a) Require DOC to publish information concerning entities that have received economic incentives during the previous five calendar years, providing it to the General Assembly on a quarterly basis; (b) Require information to include, among other things, the development tier designation of the county in which site is located, the source and dollar value of incentives by program name, and dollar value of local government funds provided, the intended purpose of the fund, the amount of potential future liability under the incentive program, the number of, type, and wage level of jobs to be created or retained, the projected cost per job created or retained, and any amount recaptured from the business entity for failure to satisfy terms of the agreement; (c) Require DOC to post summary of such report on its website; and (d) require the Department of Revenue (DOR) to report as economic development incentives special tax credits and refunds;
    (3) Deletes substance of section 14.2(c), which would add GS Chapter 143B, Article 10 (Part 2L. Monitor and Assess Job Creation)
    (4) Rewrites section 14.2(c) with provision relieving DOC of requirement to file report concerning economic development incentives prior to July 1, 2011.

    REDUCE FUNDING TO THE STATE FAIR ENTERPRISE FUND TO FUND THE DEFENSE AND SECURITY TECHNOLOGY ACCELERATOR
    SECTION 14.2(A). Deletes $700,000 allocation by Department of Agriculture and Consumer Services State Fair Enterprise Fund for a defense and security technology accelerator.

    EXTEND DEADLINE FOR TWENTY PERCENT REDUCTION OF PETROLEUM PRODUCTS USE FOR STATE FLEETS/CLARIFY REPORTING REQUIREMENT
    SECTION 14.2(B). New provision amends Section 19.5(a) of SL 2005-276, as amended by Section 14.141(a) of SL 2009-451 to extend fuel reduction deadline to July 1, 2016 (now, July 1, 2011), agency reporting deadlines to September 1, 2016 (now, September 1, 2011), and State Energy Office reporting deadlines to November 1, 2016 (now, November 1, 2011).

    STATUS OF TRAVEL AND TOURISM INDUSTRY IN NC/ANNUAL REPORT
    SECTION 14.3. Identical to 4th edition.

    NORTH CAROLINA WINERIES & TOURISM /OPERATING COMMITTEES
    SECTION 14.3A. Deleted.

    WINE AND GRAPE GROWERS COUNCIL ELIMINATED
    SECTION 14.3B. New provision repeals GS Chapter 143B, Article 10, Part 2J as title indicates.

    21ST CENTURY COMMUNITIES PROGRAM ELIMINATED/CONFORMING CHANGES
    SECTION 14.3C. New provision amends GS Chapter 143B, Article 10, Part 2K to eliminate 21st Century Communities Program and make conforming changes.

    EMPLOYMENT SECURITY COMMISSION FUNDS.
    SECTION 14.4. Identical to 4th edition.

    TRANSFER EMPLOYMENT SECURITY COMMISSION TO DEPARTMENT OF COMMERCE
    SECTION 14.5. Identical to 4th edition.

    EXTEND UNEMPLOYMENT INSURANCE BENEFITS
    SECTION 14.5A. New provision amends G.S. 96-12.01(a1)(4) to allow extended benefits to be paid under the Federal Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 so long as the payment of benefits does not hinder the State’s ability to reduce its federal debt incurred to pay for the extended benefits. Makes provisions effective April 16, 2011, but expiring on January 1, 2012.

    AGRICULTURAL EMPLOYEES/UNEMPLOYMENT INSURANCE
    SECTION 14.5B. New provision amends GS 96-8(5)n. to increase from $20,000 to $50,000 the total wage floor paid for agricultural labor above which an employer must contribute to unemployment insurance fund.

    DEPARTMENT OF COMMERCE/CONTRACTS RELATED TO EMPLOYMENT SECURITY ORGANIZATIONAL REFORM
    SECTION 14.5C New provision authorizes Department of Commerce to enter into sole-source contracts to obtain recommendations to achieve employment security organizational reform.

    TRANSFER STATE PORTS AUTHORITY FROM DEPARTMENT OF COMMERCE TO DEPARTMENT OF TRANSPORTATION
    SECTION 14.6. Same as 4th edition except for the following changes:
    (1) Section 14.6(e) of 4th edition becomes Section 14.6(f);
    (2) Section 14.6(f) of 4th edition becomes Section 14.6(g);
    (3) Section 14.6(g) of 4th edition becomes Section 14.6(e);
    (4) Section 14.6(h) adds additional amendment to GS 136-260(a) to provide that the State Ports Authority is created within the Department of Transportation (NCDOT) and is under the supervision of the NCDOT Secretary, that members of the North Carolina Board of Transportation may be appointed to the authority, and that the Governor will appoint six members to the authority, effective July 1, 2011.

    STUDY COSTS OF SERVICES PROVIDED BY DEPARTMENT OF COMMERCE TO AGENCIES IN THE DEPARTMENT OF COMMERCE
    SECTION 14.7. Identical to 4th edition.

    INDUSTRIAL COMMISSION FEES/COMPUTER SYSTEM REPLACEMENT
    SECTION 14.8 Identical to 4th edition.

    UTILITIES COMMISSION/TERMS OF COMMISSIONERS
    SECTION 14.8A. New provision amends GS 62-10(b) to reduce the terms of Utilities Commission members from eight years to four years, effective July 1, 2011, and applying to all vacancies on the Commission occurring on or after that date.

    STATE-AID REPORTING REQUIREMENTS
    SECTION 14.10. Same as 4th edition except reduces from $120,000 to $100,000 the cap on the annual salary of any one employee of an entity named in the section.

    GRASSROOTS SCIENCE PROGRAM
    SECTION 14.11. Same as 4th edition except reduces from $120,000 to $100,000 the cap on the annual salary of any one employee of one of the named museums and science centers.

    WAKE FOREST INSTITUTE FOR REGENERATIVE MEDICINE/PROFIT SHARING WITH STATE
    SECTION 14.12. Rewrites almost entirely the 4th edition. Requires Wake Forest to reimburse the state by returning to it 5% of the royalty revenue received by the Institute from inventions arising under research projects for which state funds were used, plus 4% interest. Requires Institute to report by September of each year to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division on program activities, objectives, and accomplishments. Requires Institute to provide Fiscal Research Division with a copy of the Institute’s annual audited financial statement within 30 days of its issuance. Forbids the release to the Institute of remaining allotments if it does not satisfy reporting requirements. Provides that annual salary of any one Institute employee may not exceed $100,000.

    COUNCIL OF GOVERNMENT FUNDS
    SECTION 14.12A. Identical to 4th edition.

    RTI INTERNATIONAL /REPORTING REQUIREMENTS; USE OF STATE FUNDS
    SECTION 14.12.B. New provision provides that appropriated funds are to be used to support new research conducted in North Carolina, that the organization is to report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division by September 1 of each year and failure to do so will result in forfeiture of remaining allotments; that unexpended, unencumbered funds revert; and that the annual salary of any one employee may not exceed $100,000.

    E-NC AUTHORITY TO TRANSFER FEDERAL GRANT FOR BROADBAND MAPPING TO NC CENTER FOR GEOGRAPHIC INFORMATION AND ANALYSIS
    SECTION 14.12.C. New provision directs Authority to consult with the National Telecommunications and Information Administration regarding the orderly transfer of grant funds originally awarded to the Authority under the State Broadband Data and Development grant program to the Center cited in title.

    REGIONAL ECONOMIC DEVELOPMENT COMMISSIONS ALLOCATIONS
    SECTION 14.13. Deleted.

    BIOFUELS CENTER OF NORTH CAROLINA
    SECTION 14.14. Same as 4th edition except it reduces from $4.5 million to $4 million the Center’s overall allocation for the following activities and reduces the allocation for individual activities for each year of 2011-13 fiscal biennium as follows:
    (1) General Administration: from $1,010,197 to $897,953
    (2) Administration - Projects & Program Delivery : from $732,113 to $650,767
    (3) Communications & Public Information: from $143,100 to $127,200
    (4) Grant Program: from $1,613,790 to $1,434,480
    (5) Targeted Projects & Accelerated Initiatives: from $1,000,800 to $889,600.
    Also, reduces from $120,000 to $100,000 the cap on the annual salary of any one employee of the Center.

    NORTH CAROLINA BIOTECHNOLOGY CENTER
    SECTION 14.15. Same as 4th edition reduces from $17,551,710 to $16,576,615 the Center’s overall allocation and reallocates funds according to new categories for each year of the 2011-2013 fiscal biennium as follows:
    (1) Job Creation: $3,569,736
    (2) Science and Commercialization: $10,729,550
    (3) Center Operations: $2,277,329
    Allows Center management to adjust allocations above by a factor of up to 10%. Reduces from $120,000 to $100,000 the cap on the annual salary of any one employee of the Center.

    RURAL ECONOMIC DEVELOPMENT CENTER
    SECTION 14.16. Same as 4th edition reduces from $3,583,691 to $3,384,600 the Center’s overall allocation for the following activities and reduces the allocation for individual activities for each year of 2011-13 fiscal biennium as follows:
    (1) Administration: from $1,302, 173 to $1,229,830
    (2) Research and Demonstration Grants: from $294,120 to $277,780
    (3) Institute for Rural Entrepreneurship: from $114,570 to $108,205
    (4) Community Development Grants: from $844,250 to $797,360
    (5) Microenterprise Loan Program: from $155,610 to $146,965
    (6) Water/Sewer Matching Grants: from $701,955 to $662,960
    (7) Statewide Water/Sewer Database: from $79,523 to $75,098
    (8) Agricultural Advancement Consortium: from $91,490 to $86,402
    Reduces from $120,000 to $100,000 the cap on the annual salary of any one employee of the center.

    RURAL ECONOMIC DEVELOPMENT CENTER/INFRASTRUCTURE PROGRAM
    SECTION 14.17. Same as 4th edition except reduces the allocation for each year of the 2011-13 fiscal biennium from $16,505,758 to $15,588,772.

    OPPORTUNITIES INDUSTRIALIZATION CENTERS FUNDS
    SECTION 14.18. Same as 4th edition except reduces the allocation for each year of the 2011-13 fiscal biennium from $287,280 to $271,320.

    NC SMALL BUSINESS LENDING ENHANCEMENTS
    SECTION 14.19. New provisions create, as a component of the North Carolina Capital Access Program, the Income –Producing Property Program. Provides that the program is to leverage public investment, along with private sector resources, to stimulate additional financing opportunities for new and existing buildings used for business purposes in North Carolina. Provides that the program must require that at least 50% of commercial property to be financed is occupied. Establishes North Carolina Small Business Express Loan Fund for the purpose of providing loans ranging in size from $5,000 to $25,000 for the start-up or expansion of small businesses. Directs the Rural Economic Development Center to administer both the property program and the loan fund and may use up to 4% of its funds for this purpose. Requires reporting to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division by September of each year.

    PART XV. JUDICIAL DEPARTMENT

    GRANT FUNDS
    SECTION. 15.1. Identical to 4th edition.

    TRANSFER OF EQUIPMENT AND SUPPLY FUNDS
    SECTION 15.2. Identical to 4th edition.

    REIMBURSEMENT FOR USE OF PERSONAL VEHICLES
    SECTION 15.3. Identical to 4th edition.

    COLLECTION OF WORTHLESS CHECK FUNDS
    SECTION 15.4. Identical to 4th edition.

    DISPUTE RESOLUTION FEES
    SECTION 15.5. Identical to 4th edition.

    WORKLOAD FORMULA FOR SUPERIOR COURT JUDGES/MINUTES MAINTAINED BY THE CLERK OF SUPERIOR COURT TO RECORD CONVENING AND ADJOURNMENT OR RECESS OF COURT
    SECTION 15.6. Identical to 4th edition.

    STUDY FEASIBILITY OF OFFICE OF PROSECUTORIAL SERVICES
    SECTION 15.7. Identical to 4th edition.

    ENSURE MINIMUM NUMBER OF CLERK OF COURT STAFF
    SECTION 15.8. Identical to 4th edition.

    STUDY INFRACTIONS AND WAIVABLE OFFENSES
    SECTION 15.9. Identical to 4th edition.

    WAIVER OF CRIMINAL COURT COSTS ONLY WHEN JUDGE MAKES FINDING OF JUST CAUSE TO GRANT WAIVER
    SECTION 15.10. Identical to 4th edition.

    STUDY CONSOLIDATION OF JUDICIAL AND PROSECUTORIAL DISTRICTS
    SECTION 15.11. Identical to 4th edition.

    STATEWIDE ADMINISTRATIVE COURT SESSIONS
    SECTION 15.11A. Identical to 4th edition.

    OFFICE OF INDIGENT DEFENSE SERVICES EXPANSION FUNDS/EXPANSION OF PUBLIC DEFENDER OFFICES
    SECTION 15.16. Deletes provisions in 4th edition mandating statewide expansion of public defender system. Retains authority for Office of Indigent Defense Services (Office) to use up to $2.15 million to expand staff in current public defender offices, to create new offices within existing public defender offices, or to establish regional public defender offices. Directs Office to seek proposals from private attorneys or non-profit organizations to provide all legal services to indigent clients in each judicial district. If proposed contract will provide services more efficiently than current costs, directs Office to enter into contracts for that purpose. Directs Office to report on the issuance of the request for proposals by October 1, 2011, to the Joint Legislative Commission on Governmental Operations.

    OFFICE OF INDIGENT DEFENSE SERVICES REPORT
    SECTION 15.17. Identical to 4th edition.

    AUDIT OF FARMWORKER LEGAL AID PROGRAM
    SECTION 15.18. Identical to 4th edition.

    ELIMINATE SENTENCING SERVICES
    SECTION 15.19. Deleted.

    LIMIT COMPENSATION RATE PAID TO EXPERT WITNESSES BY THE OFFICE OF INDIGENT DEFENSE SERVICES
    SECTION 15.20. Identical to 4th edition.

    TRIAL COURT ADMINISTRATOR POSITIONS
    SECTION 15.21. Specifies that trial court administrator positions must be provided in districts 4, 5, 7B/7C, 10, 12, 14, 18, 21, 26, 28, replacing 4th edition language that directed the Administrative Office of the Courts to work with any district seeking funding for trial court administrators for the district by identifying other funds currently used for that district that can be diverted to establish or maintain the position.

    PART XVI. DEPARTMENT OF JUSTICE

    USE OF SEIZED AND FORFEITED PROPERTY TRANSFERRED TO STATE LAW ENFORCEMENT AGENCIES BY THE FEDERAL GOVERNMENT
    SECTION 16.1. Identical to 4th edition.

    PURCHASE OF TIME MANAGEMENT SOFTWARE
    SECTION 16.2. Identical to 4th edition.

    PRIVATE PROTECTIVE SERVICES AND ALARM SYSTEMS LICENSING BOARDS PAY FOR USE OF STATE FACILITIES AND SERVICES
    SECTION 16.3. Identical to 4th edition.

    CERTAIN LITIGATION EXPENSES TO BE PAID BY CLIENTS
    SECTION 16.4. Identical to 4th edition.

    HIRING OF SWORN STAFF POSITIONS FOR THE STATE BUREAU OF INVESTIGATION
    SECTION 16.5. Identical to 4th edition.

    CRIMINAL INFORMATION DATABASE STUDY
    SECTION 16.6. New provision directs the Department of Justice to issue request for information to determine the cost to have a private company maintain the software required for criminal information databases managed by the Criminal Information Division. Report on the request due by March 1, 2012, to specified appropriations committees.

    PART XVII. DEPARTMENT OF JUVENILE JUSTICE AND DELINQUENCY PREVENTION

    STATE FUNDS MAY BE USED AS FEDERAL MATCHING FUNDS
    SECTION 17.1. Identical to 4th edition.

    ANNUAL EVALUATION OF COMMUNITY PROGRAMS
    SECTION 17.2. Identical to 4th edition.

    ALLOCATE REALIZED SAVINGS OF WILDERNESS CAMPS TO FUND CERTAIN LEVEL 2 INTERMEDIATE DISPOSITIONAL ALTERNATIVES FOR JUVENILES
    SECTION 17.3. Identical to 4th edition.

    JUVENILE CRIME PREVENTION COUNCIL FUNDS
    SECTION 17.4. Identical to 4th edition.

    FUNDING FOR JUVENILE JUSTICE AND DELINQUENCY PREVENTION EDUCATION PROGRAMMING
    SECTION 17.5. Identical to 4th edition.

    DJJDP AND DOC JOINT EFFORT TO MAKE IN-HOME MONITORING AVAILABLE AS ALTERNATIVE TO DETENTION FOR JUVENILES
    SECTION 17.6 Identical to 4th edition.

    TREATMENT STAFFING MODEL AT YOUTH DEVELOPMENT CENTERS
    SECTION 17.7. Identical to 4th edition.

    YOUTH DEVELOPMENT CENTER ANNUAL REPORT
    SECTION 17.8. Identical to 4th edition.

    DJJDP FACILITY MONTHLY COMMITMENT REPORT
    SECTION 17.9. Identical to 4th edition.

    USE OF INMATE LABOR FOR REPAIR AND RENOVATION OF YOUTH DEVELOPMENT CENTERS
    SECTION 17.10. Adds provision to 4th edition’s language requiring sight and sound barriers to be in place between juveniles and adult inmates working on the repair projects, and specifically authorizes the inmate crews to work at the centers, effective September 1, 2011.

    ALLOCATE FUNDS FOR REPAIRS AND RENOVATIONS TO STONEWALL JACKSON AND C.A. DILLON YOUTH DEVELOPMENT CENTERS
    SECTION 17.11. Identical to 4th edition.

    JUVENILE ASSESSMENT CENTER FUNDS
    SECTION 17.12. Identical to 4th edition.

    PART XVIII. DEPARTMENT OF CORRECTION

    FEDERAL GRANT REPORTING
    SECTION 18.1. Identical to 4th edition.

    FEDERAL GRANT MATCHING FUNDS
    SECTION 18.2. Identical to 4th edition.

    USE OF CLOSED PRISON FACILITIES
    SECTION 18.3. Identical to 4th edition.

    LIMIT USE OF OPERATIONAL FUNDS
    SECTION 18.4. Identical to 4th edition.

    REIMBURSE COUNTIES FOR HOUSING AND EXTRAORDINARY MEDICAL COSTS FOR INMATES, PAROLEES, AND POST-RELEASE SUPERVISEES AWAITING TRANSFER TO STATE PRISON SYSTEM
    SECTION 18.5. Identical to 4th edition.

    CENTER FOR COMMUNITY TRANSITIONS/CONTRACT AND REPORT
    SECTION 18.6. Identical to 4th edition.

    PAROLE ELIGIBILITY REPORT/MUTUAL AGREEMENT PAROLE PROGRAM/MEDICAL RELEASE PROGRAM
    SECTION 18.7. Identical to 4th edition.

    CRIMINAL JUSTICE PARTNERSHIP
    SECTION 18.8. Identical to 4th edition.

    SWANNANOA CORRECTIONAL CENTER FOR WOMEN
    SECTION 18.9. Identical to 4th edition.

    INMATE MEDICAL COST CONTAINMENT
    SECTION 18.10. Same as 4th edition except requires the Department of Correction to reimburse providers of inmate medical services outside a correctional facility at a rate that is two times the then current rate for Medicaid supported services (was, or at a rate of 70% of the provider’s then current prevailing charge, or less). Amends GS 131E-FF(al), clarifying that specified hospitals must treat inmates in Department of Correction custody as a condition of licensure, unless the hospital lacks capacity or capability.

    DEPARTMENT OF CORRECTION RULES FOR INMATE LABOR
    SECTION 18.12. Same as 4th edition except deletes provision prohibiting the closing of Bladen Correctional Center.

    REPORT ON PROBATION AND PAROLE CASELOADS
    Section 18.13. New provision directs the Department of Correction to report by March 1 of each year to specified committees on caseload averages for probation and parole officers, as indicated. Details the components to be included in the study of probation/parole officer workload. Specifies reporting requirements.

    REMOVE SUNSET ON CORRECTION ENTERPRISES STATE AND LOCAL EMPLOYEE/RETIREE PURCHASE ALLOWANCE
    SECTION 18.14. New provisions state that SL 2007-280 (concerning the Division of Correction Enterprises) becomes effective August 1, 2007; deletes language stating the first sentence of GS 148-127(5) expires July 1, 2012.

    PART XIX DEPARTMENT OF CRIME CONTROL AND PUBLIC SAFETY

    CONSOLIDATE THE DEPARTMENT OF CORRECTION, THE DEPARTMENT OF CRIME CONTROL AND PUBLIC SAFETY, THE DEPARTMENT OF JUVENILE JUSTICE AND DELINQUENCY PREVENTION, THE STATE BUREAU OF INVESTIGATION, AND THE NORTH CAROLINA JUSTICE ACADEMY INTO THE DEPARTMENT OF PUBLIC SAFETY

    CREATION OF DEPARTMENT; CREATION OF STATUTORY PARTS AND SUBPARTS; CHANGES TO STATUTORY REFERENCES TO AGENCIES; RECODIFICATION OF AFFECTED STATUTES; OTHER SUBSTANTIVE CHANGES; CONFORMING CHANGES; LIMITED AUTHORITY TO RECLASSIFY AND ELIMINATE CERTAIN POSITIONS; CREATION OF REGIONAL OFFICES; CHANGES TO CONFORM WITH S.L. 2011-19; REPORTING AND EFFECTIVE DATE
    SECTION 19.1. Substantially equivalent to 4th edition, with the following changes: (1) includes State Bureau of Investigation (and State Crime Lab) in new department; (2) includes North Carolina Justice Academy in new department; (3) requires the Secretary of the new department to be confirmed by joint resolution of the General Assembly; (4) creates separate divisions within new department for the National Guard and for the Division of Emergency Management; (5) establishes the State Crime Lab as a separate division, with Director to report directly to the Secretary; (6) clarifies that heads of divisions for Adult Correction, Juvenile Justice, and Law Enforcement are all chief deputies in the new department; (7) adds new division for the Office of External Affairs; (8) specifies that Secretary may reclassify or eliminate existing administrative positions not specifically dealt with in this act; and (9) requires new department to create eight regional offices, which will house the State Bureau of Investigation, Alcohol Law Enforcement, and State Highway Patrol equipment and personnel for the region. Makes conforming changes to SL 2011-19.

    CONSOLIDATE BUDGET CODES FOR DEPARTMENT OF PUBLIC SAFETY
    SECTION 19.2. New provision provides as title indicates; consolidation required by July 1, 2012.

    ABOLISH BUTNER PUBLIC SAFETY DIVISION
    SECTION 19.3. New provision, effective July 1, 2011, abolishes the Butner Public Safety Division in the Department of Crime Control and Public Safety, and directs the Governor to transfer all personal property now used by the Division to the town of Butner. Makes conforming changes to various statutes. Directs the state of North Carolina to lease all real property allocated to or occupied by the Division as of April 1, 2011, to Butner as specified.

    REPORTS ON LAW ENFORCEMENT ACCREDITATION SERVICES
    SECTION 19.4. New provision directs the State Highway Patrol, Alcohol Law Enforcement Division, State Capitol Police, and State Bureau of Investigation to report to specified committees by March 1, 2012, on any national associations that accredit law enforcement agencies, with an analysis of the costs and benefits of each.

    STUDY THE FEASIBILITY OF ASSESSING A FEE FOR PROVIDING TRAFFIC CONTROL BY THE STATE HIGHWAY PATROL AT SPECIAL EVENTS
    SECTION 19.5. New provision directs the Joint Legislative Corrections, Crime Control and Juvenile Justice Oversight Committee to study the issue of charging fees for use of State Highway Patrol at special events, and report to the General Assembly before June 1, 2012.

    PART XX. DEPARTMENT OF ADMINISTRATION

    STATE ENTITIES TO USE AGENCY FOR PUBLIC TELECOMMUNICATIONS
    SECTION 20.1. Same as 4th edition except deletes provision requiring all state agencies, including the University system, to use mail service center. Changes title accordingly.

    TRANSFER OF NC HUMAN RELATIONS COMMISSION FROM DEPARTMENT OF ADMINISTRATION TO OFFICE OF ADMINISTRATIVE HEARINGS
    SECTION 20.1A. Identical to 4th edition.

    STUDY BY THE LEGISLATIVE RESEARCH COMMISSION OF THE DUTIES AND SERVICES OF THE NORTH CAROLINA HUMAN RELATIONS COMMISSION AND THE CIVIL RIGHTS DIVISION OF THE OFFICE OF ADMINISTRATIVE HEARINGS
    SECTION 20.2. Identical to 4th edition.

    DOMESTIC VIOLENCE CENTER FUNDS
    SECTION 20.3. Identical to 4th edition.

    USE OF CAPITAL PROJECT CONTINGENCY FUNDS TO INCREASE THE SPEED AND EFFICIENCY OF THE STATE CONSTRUCTION OFFICE
    SECTION 20.4. Identical to 4th edition.

    OFFICE OF STATE PERSONNEL/STUDY CENTRALIZED HUMAN RESOURCES FOR COUNCIL OF STATE OFFICES
    SECTION 20.5. Identical to 4th edition.

    STATE BOARD OF ELECTIONS AND ETHICS
    SECTION 20.6. Completely rewrites section and incorporates the substantive provisions of Senate Bill 772, digested in the Daily Bulletin on 4/20/11. Transfers all powers and functions of the State Ethics Commission and State Board of Elections, and the Secretary of State’s powers and functions relating to lobbying registration and enforcement, to a new State Board of Elections and Ethics Enforcement, created in the provision. Creates a new GS Chapter 163A (State Elections and Ethics Act). (Does not appear to include powers and duties of the board from SB 772 version.) Repeals and recodifies under new GS Chapter 163A, provisions in GS Chapter 138A (Ethics Commission), GS Chapter 120C (Lobbying), and GS Chapter 163 (Elections). Provides for consolidation of budgets and for continuation of ongoing proceedings and investigations. Specifies that the consolidation does not affect any ongoing audit or investigation. Requires the new Board to report to the Legislative Ethics Committee on or before April 1, 2012, and again, on or before February 1, 2013, with recommendations for any necessary statutory changes. Provision becomes effective January 1, 2012, and applies to elections held on or after that date.

    ELIMINATE FUNDING FOR DEVELOPMENT OF SMART CARDS
    SECTION 20.7. Identical to 4th edition.

    REDUCE FUNDING FOR PED STAFF EXPANSION TO RESTORE FUNDING TO THE AID TO COUNTIES PROGRAM IN THE DIVISION OF VETERANS AFFAIRS
    SECTION 20.8. Deleted.

    YOUTH ADVOCACY AND INVOLVEMENT OFFICE POSITION CHANGES
    SECTION 20.9. Deleted.

    PART XXI. DEPARTMENT OF CULTURAL RESOURCES

    TRANSPORTATION MUSEUM SPECIAL FUND
    SECTION 21.1. Identical to 4th edition.

    ROANOKE ISLAND COMMISSION FUNDING/HISTORIC ROANOKE ISLAND FUND
    SECTION 21.2. Identical to 4th edition.

    PART XXII. GENERAL ASSEMBLY

    PED STUDYING ADMINISTRATION OF STATE ATTRACTIONS
    SECTION 22.1. Same as 4th edition except adds language to state the Program Evaluation Division (Division) must review all sources of revenue generated by the specified attractions, including admission fees, donations, and concession sales and directs the Division to review daily visitation trends to the attractions to determine optimal operating schedules.

    REVISOR OF STATUTES
    SECTION 22.2. Identical to 4th edition.

    PART XXIII. DEPARTMENT OF INSURANCE

    PERMISSIBLE USE OF INSURANCE REGULATORY FUND
    SECTION 23.1. Identical to 4th edition.

    NO BUDGET REDUCTION FOR CERTAIN STATE FIRE PROTECTION GRANT FUND RECIPIENTS
    SECTION 23.2. Identical to 4th edition.

    PART XXIV. OFFICE OF STATE BUDGET AND MANAGEMENT

    ACCESS TO REGISTER AND CODE
    SECTION 24.1. Same as 4th edition except deletes language directing the Codifier of Rules to provide a free copy of the current volume of the Register to any member of the General Assembly.

    PART XXV. OFFICE OF ADMINISTRATIVE HEARINGS
    ¶TRANSFER STATE FIRE PROTECTION GRANT FUND
    SECTION 25.1. Identical to 4th edition.

    NC SYMPHONY FUNDING
    SECTION 25.2. Identical to 4th edition.

    PERSONNEL ADJUSTMENT AND IT REDUCTION
    SECTION 25.3. Deleted.

    PART XXVI. STATE BOARD OF ELECTIONS

    NO EXPENDITURE OF HAVA TITLE II FUNDS FOR STATE FY 2011-2012
    SECTION 26.1. Identical to 4th edition.

    ELIMINATED POSITIONS IN VOTER REGISTRATION AND SYSTEMS
    SECTION 26.2. Deleted.

    ALLOWING COUNTY BOARDS OF ELECTION TO EMPLOY PERSONNEL TO MAINTAIN VOTING SYSTEMS.
    SECTION 26.3. New provision amends GS 163-165.9(b)(2) to allow county boards of election to employ personnel to maintain a voting system in lieu of entering into maintenance agreements necessary to maintain the warranty of its voting system. Allows, but does not require, the State Board of Elections to provide routine maintenance to any county board of elections that does not maintain the warranty of its voting system. Effective July 1, 2011.

    PART XXVI-A. STATE CONTROLLER

    OVERPAYMENTS AUDIT
    SECTION 26A.1. Identical to 4th edition.

    PART XXVII. DEPARTMENT OF THE STATE TREASURER

    LOCAL GOVERNMENT UNIT POSITIONS
    SECTION 27.1. Identical to 4th edition.

    PART XXVIII. DEPARTMENT OF TRANSPORTATION

    CASH FLOW HIGHWAY FUND AND HIGHWAY TRUST FUND APPROPRIATION
    SECTION 28.1.(a) Same as 4th edition, except increases anticipated revenues to the following amounts:
    For Fiscal Year 2013-2014 $2,125.4 million
    For Fiscal Year 2014-2015 $2,238.0 million
    For Fiscal Year 2015-2016 $2,352.3 million
    For Fiscal Year 2016-2017 $2,470.9 million
    SECTION 28.1(b) Same as 4th edition, except increases anticipated revenues to the following amounts:
    For Fiscal Year 2013-2014 $1,084.0 million
    For Fiscal Year 2014-2015 $1,169.8 million
    For Fiscal Year 2015-2016 $1,232.6 million
    For Fiscal Year 2016-2017 $1,256.7 million

    CHANGES TO HIGHWAY FUND CERTIFIED BUDGET TO INCREASE TRANSPARENCY
    SECTION 28.2. Identical to 4th edition.

    REMOVE PILOT DESIGNATION FOR PUBLIC-PRIVATE PARTNERSHIPS
    SECTION 28.3. Identical to 4th edition.

    REMOVE CAP ON DESIGN-BUILD PROJECTS
    SECTION 28.4. Identical to 4th edition.

    STUDY SPONSORSHIP OPPORTUNITIES
    SECTION 28.5. Deleted.

    FLEXIBILITY TO SEEK LIMITED SPONSORSHIPS
    SECTION 28.5.(a) New provision rewrites GS 66-58(b)(20) to specify that subsection (a) of the statute does not apply to the Department of Transportation, or any lessee (currently nonprofit lessee) of or other party contracting with the Department, for the sale of travel-related goods and services at welcome centers, visitor centers, rest areas, and administrative facilities owned by the Department. Rewrites GS 66-58(c) to include new language stating that subsection (a) does not prohibit the Department or any lessee of or contracting party with the Department from conducting activities related to privatization and operation of welcome centers, visitor centers, rest areas, and administrative facilities, or from entering into agreements for sponsorship of agency services.
    SECTION 28.5.(b) New provision rewrites GS 136-18(9) to authorize the Department of Transportation (DOT) to contract for sponsorship of ferry welcome centers, Incident Management Assistance Patrols, welcome centers, visitor centers, and rest areas, and provides that the contracting party may use the right-of-way for commercial purposes for the sale of travel-related goods and services in accordance with GS 136-89.56. Rewrites GS 136-18(39) to authorize DOT to enter into partnership agreements with private entities and authorized local governments to finance the cost of acquiring, constructing, equipping, maintaining, and operating facilities, including ferry welcome centers, Incident Management Patrols, welcome centers, visitor centers, rest areas and administrative offices. Further authorizes DOT to enter into partnership agreements with private entities and authorize local governments to finance the cost of providing sponsorship for state services.
    SECTION 28.5.(c) New provision rewrites GS 136-89.56(1) to conform with the above sections and provides the Department of Transportation may also adopt guidelines and policies regulating the display and sale of materials at welcome centers, visitor centers, rest areas, and other administrative offices.

    SMALL CONSTRUCTION AND CONTINGENCY FUNDS
    SECTION 28.6. Same as 4th edition, except directs the Department to allocate $12 million (previously $5,169,020) for statewide use for rural or small urban highway improvements and related transportation enhancements to public roads and public facilities, industrial access roads, and spot safety projects, including pedestrian walkways that enhance highway safety.

    ADJUST SECONDARY ROAD CONSTRUCTION AND SECONDARY ROAD MAINTENANCE
    SECTION 28.7. Identical to 4th edition.

    SYSTEM PRESERVATION FUNDS PREFERENCE FOR DEFICIENT BRIDGES
    SECTION 28.8. Identical to 4th edition.

    INCREASE DOT PRIVATIZATION
    SECTION 28.9. Identical to 4th edition.

    STATE STREET-AID TO MUNICIPALITIES (POWELL BILL) ADJUSTMENTS
    SECTION 28.10.(a)-(c) Identical to 4th edition
    SECTION 28.10.(d) New provision rewrites GS 136-41.3. to direct the Department to adopt a policy to allow small municipalities to apply to the DOT to be allowed to accumulate up to the sum of the past 20 allocations if a municipality’s allocations are so small that the sum of the past 10 allocations would not be sufficient to accomplish the purpose of the statute.

    STATE AID TO RAILROADS TRANSPARENCY
    SECTION 28.12. Identical to 4th edition.

    PROGRAM EVALUATION DIVISION TO STUDY NORTH CAROLINA RAILROAD
    SECTION 28.12A. New provision directs the Program Evaluation Division (Division) of the General Assembly to conduct a comprehensive evaluation of the North Carolina Railroad Company. Provides minimum guidelines which the Division must address. Provides authority for Division to carry out its evaluation and details reporting requirements.

    STATE AID TO SHORT-LINE RAILROADS
    SECTION 28.13. Deleted.

    STUDY RAIL CONNECTION BETWEEN WILMINGTON AND FAYETTEVILLE
    SECTION 28.14. Deleted.

    REPORT, CONSULTATION, AND APPROVAL OF RAIL PROJECTS
    SECTION 28.15. Identical to 4th edition, except makes the Department’s approval of federal rail funds subject to approval by the General Assembly if the amount of state matching funds or the reasonably expected amount of future costs exceeds $20 million (rather than $5 million). Allows 30 days (rather than 60) to pass before inaction is deemed an approval.

    PROHIBIT RAIL DIVISION FROM PROVIDING CONVENIENCE ITEMS FREE OF CHARGE ON ALL PASSENGER RAIL SERVICE
    SECTION 28.16. Identical to 4th edition.

    STUDY MANNS HARBOR REPAIR AND PAINT SHOP
    SECTION 28.16A. New provision directs the Joint Legislative Transportation Oversight Committee to study the issue of privatizing the ferry repair facilities and paint shop at Manns Harbor.

    ELIMINATE AERONAUTICS COUNCIL, BICYCLE COMMITTEE, AND RAIL COUNCIL
    SECTION 28.17. Identical to 4th edition.

    AVIATION DIVISION APPROPRIATION
    SECTION 28.17A. New provision provides that the continuing aviation appropriation from the Highway Fund to the Department of Transportation is to be reduced as provided in the act.

    FLEXIBLE USE OF FUNDS TO LEVERAGE FEDERAL FUNDS FOR RURAL PUBLIC TRANSPORTATION
    SECTION 28.18. Identical to 4th edition.

    MAXIMIZE LEVERAGE OF FEDERAL PUBLIC TRANSPORTATION OPERATING AND CAPITAL FUNDS FOR LOCAL PUBLIC TRANSPORTATION SYSTEMS
    SECTION 28.19. Identical to 4th edition.

    STREAMLINE GRANT PROCESS AND CONSOLIDATE GRANTS FOR PUBLIC TRANSPORTATION
    SECTION 28.20. Identical to 4th edition.

    STUDY REGIONAL CONSOLIDATION OF TRANSIT SYSTEMS
    SECTION 28.21. Identical to 4th edition.

    BLUE LINE EXTENSION AND RED LINE COMMUTER RAIL PROJECTS
    SECTION 28.21A. New provision prohibiting the Department of Transportation from entering into any contracts for the construction, design, or planning of the LYNX Blue Line Extension/Northeast Corridor project or the LYNX Red Line/North Corridor Commuter Rail project if the contract requires the present or future commitment of any state funds.

    FLEXIBLE USE OF FUNDS FOR DIVISION OF MOTOR VEHICLES FOR FISCAL YEARS 2011-2012 AND 2012-2013
    SECTION 28.23. Identical to 4th edition.

    COMPETITIVE BIDDING OF LICENSE PLATE AGENCY CONTRACTS
    SECTION 28.23A.(a) New provision rewrites GS 20-63(h) to provide that Commission contracts entered into by the Division of Motor Vehicles under the subsection before September 1, 2011, must provide for compensation on a per transaction basis.
    SECTION 28.23A.(b) New provision rewrites GS 20-63(h1) to provide that Commission contracts entered into by the Division under the subsection before September 1, 2011, must also pay an additional $1 of compensation to commission contract agents for certain specified transactions.
    SECTION 28.23A.(c) New provision amends GS 20-63 by adding new subsection (h3), which provides for competitive contract bidding for contracts entered into after September 1, 2011.

    CONFORMING CHANGES RELATED TO DMV AUDITORS AND CHANGES RELATED TO DMV HEARINGS
    SECTION 28.23B.(a) New provision makes the following changes to GS 20-183.8F. Deletes subsection (a) (finding of violation). Amends subsection (b) to remove a person engaged in the business of replacing windshields as someone the Division may charge with a violation. Requires the statement of charges to inform the license holder of the right to request a hearing. Makes other technical change. Amends subsection (d) to state that delivery of notice may be made via certified mail or by hand delivery.
    SECTION 28.23B.(b) New provision amends GS 20-183G(b) to require the Division to hold a hearing requested under the subsection within 30 days (previously 10 business days) after receiving the request for a hearing.

    STUDY EXEMPTING THE THREE NEWEST MODEL YEARS FROM EMISSIONS INSPECTIONS OF MOTOR VEHICLES
    SECTION 28.24. Deleted.

    DEPARTMENT OF REVENUE TO REPORT ON MOTOR FUELS TAX AUDITOR AND INVESTIGATOR PERFORMANCE
    SECTION 28.25. Identical to 4th edition.

    REDUCE ADMINISTRATIVE TRANSFERS AND REDIRECT LEAKING UNDERGROUND STORAGE TANK FUNDING TO HIGHWAY FUND FOR SYSTEM PRESERVATION
    SECTION 28.25A.(a) New provision directs the amount of allowable costs of administering GS Chapter 119 for the Department of Agriculture and Consumer Services must be reduced by a recurring $261,888. Requires the amount of allowable costs of administering Subchapter V of GS Chapter 105 for the Department of Revenue must be reduced by a recurring $1,024,544.
    SECTION 28.25A.(b) New provision rewrites GS 119-18(b) to provide that the remainder of the proceeds from the inspection tax levied by the statute be credited on a monthly basis to the Highway Fund to be used for system preservation under the Department of Transportation in the highway maintenance program.

    STUDY REIMBURSEMENT PROCESS FOR DEPARTMENT OF CORRECTION LITTER PICKUP
    SECTION 28.26. Identical to 4th edition.

    STATE HIGHWAY PATROL FUNDS TRANSFER
    SECTION 28.27. New provision transfers $193,585,434 of the funds allocated to the Highway Fund under GS 105-449.125 to the General Fund for 2011-12 as specified. Transfers $189,859,507 of the funds allocated to the Highway Fund under GS 105-449.125 to the General Fund for 2012-13. Directs the OSBM and the Office of State Controller to discontinue use of the Crime Control and Public Safety – Highway Fund budget code and to certify funds appropriated by this act for the SHP under a separate code within the Crime Control and Public Safety-General Fund budget code. Directs DOT, OSBM, and Office of State Controller to certify and account for state matching funds for Motor Carrier Safety Assistance Program grants, federal funds, and other receipts budgeted for SHP programs, as necessary. Rewrites GS 20-194 to eliminate language providing that all expenses incurred by carrying out the specified provisions be paid out of the Highway Fund.

    STATE HIGHWAY PATROL POSITIONS
    SECTION 28.28. Deleted; several provisions moved to new Section 28.28.

    STATE HIGHWAY PATROL POSITIONS AND MANAGEMENT FLEXIBILITY
    SECTION 28.28.(a) New provision eliminates the Administrative Services Section of the State Highway Patrol. Directs the Secretary of the Department of Crime Control and Public Safety (Department) to consolidate remaining Administrative Services Section positions and organizational units with other human resources functions of the Department.
    SECTION 28.28.(b) New provision eliminates the following SHP positions:

    Position ID Position Title
    60084611 Program Assistant V
    60084615 Attorney
    60085385 Sergeant
    60084952 First Sergeant
    60085315 W/A First Sergeant
    60084628 Assessment Analyst
    60084772 Office Assistant
    60084779 Budget Analyst
    60085953 Major
    60084998 First Sergeant
    60084947 Captain
    60085945 W/A Captain
    60085302 Lieutenant
    60084755 Office Assistant
    60084858 Office Assistant
    60084686 Deputy Secretary

    SECTION 28.28.(c) New provision provides management flexibility to the Department of Crime Control and Public Safety, State Highway Patrol, to achieving savings in the Patrol’s operation of a recurring $5,589,592 in fiscal year 2011-12 and $8,722,892, recurring in fiscal year 2012-13. Authorizes the Department to eliminate positions to achieve this budgetary reduction. Allows the Department to eliminate filled positions but not specified sworn law enforcement officer positions, unless the State Highway Patrol has first achieved 25% of the required savings elsewhere. Directs the State Highway Patrol to maintain balanced law enforcement coverage among the troops and authorizes the movement of troops from one troop to another to maintain balanced coverage.
    SECTION 28.28.(d) New provision directs the Commander of the SHP to report on the number of positions eliminated for fiscal year 2011-12 and specifies the information that must be included in the report. The Commander must submit the report to specified committees by March 1, 2012.

    ADDITIONAL HIGHWAY TRUST FUND MONEY FOR MOBILITY FUND; VISITOR CENTERS FUNDING
    SECTION 28.30.(a) Same as 4th edition, except directs the additional fifty cents of the fee imposed for any transaction assessed a fee under subdivision (a)(1) of the statute be credited to the Mobility Fund.
    SECTION 28.30.(b) Deletes provision in 4th edition; new provision provides that the first $400,000 collected under the additional fifty cents fee be credited to the Reserve for Visitor Centers in the Highway Fund.
    SECTION 28.30.(c) New provision provides that for the fiscal year 2012-13, the annual appropriation under GS 20-79.7(c)(2) be appropriated to the Highway Fund.

    MAINTAIN CURRENT LEVEL OF ADMINISTRATIVE FUNDING FROM HIGHWAY TRUST FUND
    SECTION 28.31. Identical to 4th edition.

    TRANSFER MID-CURRITUCK BRIDGE FUNDING TO GENERAL FUND TO PURCHASE SCHOOL BUSES IN FY 2011-2012 AND TO THE MOBILITY FUND; AND TRANSFER GARDEN PARKWAY FUNDING TO URBAN LOOPS PROGRAM
    SECTION 28.32.(a) Same as 4th edition except transfers funds to the General Fund (rather than the Mobility Fund) to replace school buses. Directs the amount transferred under GS 105-187.9(c) to the Mobility Fund for fiscal year 2011-12 be reduced by $5,223,642, and that amount be transferred to the General Fund for the purpose of replacing school buses for local school districts.
    SECTION 28.32.(b) Same as 4th edition, except transfers funds to the Highway Trust Fund to be used for urban loop projects.
    SECTION 28.32.(c) New provision repeals the amendment to GS 105-187.9(c) made in Section 28.7(h) of SL 2010-31. Repeals Sections 28.7(j) and 28.7(k) of SL 2010-31.
    SECTION 28.32.(d) New provision rewrites Section 28.7(l) of SL 2010-31 to provide the following effective dates for subsections under the section: (f) and (g)- July 1, 2011; (h)- July 1, 2012; (i)- July 1, 2013. The remainder of the section is effective July 1, 2010.
    SECTION 28.32.(e) New provision rewrites GS 105-187.9(c) to require the State Treasurer to transfer $46 million (previously $31 million) from the taxes deposited in the Trust Fund to the Mobility Fund each fiscal year.
    SECTION 28.32.(f) New provision rewrites GS 105-187.9(c), effective July 1, 2012, to require the State Treasurer to transfer $60 million (previously $46 million) from the taxes deposited in the Trust Fund to the Mobility Fund each fiscal year.
    SECTION 28.32.(g) New provision rewrites GS 105-187.9(c), effective July 1, 2013, to require the State Treasurer to transfer $86 million (previously $60 million) from the taxes deposited in the Trust Fund to the Mobility Fund each fiscal year.
    SECTION 28.32.(h) New provision repeals GS 136-89.183A.
    SECTION 28.32.(i) New provision rewrites GS 136-176(b) to specify that $35 million from the Highway Trust Fund be allocated and used for urban loop projects.
    SECTION 28.32.(j) New provision rewrites GS 136-176(b2), as amended by Section 28.7(g) of SL 2010-31, to provide an annual appropriation to the North Carolina Turnpike Authority from the Highway Trust Fund of $49 million (previously $99 million). Deletes use of the funds for specified Mid-Currituck Bridge and Garden Parkway expenses.
    SECTION 28.32.(k) New provision rewrites GS 136-187(2) to reduce the number of Turnpike Projects that may be studied, planned, developed, and undertaken from nine to six. Rewrites GS 136-187(2)a to include the Southeast Extension in Wake and Johnston counties as a project the Turnpike Authority is authorized to design, establish, purchase, construct, operate, and maintain. Deletes subsections (b) and (e) of GS 136-187(2).

    MOBILITY FUND PROJECT SELECTION CRITERIA ADJUSTMENT
    SECTION 28.33. Same as 4th edition, except deletes language directing the Department to involve the public and stakeholders when developing the project criteria and during the selection process.

    TRANSFER URBAN LOOPS PROGRAM TO THE MOBILITY FUND
    SECTION 28.34. Deleted.

    REMOVE URBAN LOOP PROJECTS FROM STATUTE AND ALLOW DEPARTMENT OF TRANSPORTATION TO DEFINE AND PRIORITIZE URBAN LOOP PROJECTS
    SECTION 28.34. New provision rewrites GS 136-180 to provide that funds allocated from the Trust Fund for urban loops may be used only for urban loops as designated and prioritized by the Department of Transportation, and deletes the remaining provisions of the statute. Specifies that by removing the statutory listing of urban projects, it is not the intent of the General Assembly to interfere with the acceleration of certain urban loop projects announced in March 2011.

    MODIFY DEPARTMENT OF TRANSPORTATION REPORTING REQUIREMENTS
    SECTION 28.35. Identical to 4th edition.

    COST-EFFICIENT TIRE RETREADS ON STATE VEHICLES AND SCHOOL BUSES
    SECTION 28.36. New provision enacts new GS 143-63.2 and 115C-249.1 to detail definitions, standards, tire purchase and contract standards, and exemptions concerning the purchase of tires for state vehicles and for school buses.

    DRIVER EDUCATION REFORM
    SECTION 28.37. New provision amends GS 115C-215 to provide for a standardized driver education program, administered by the Department of Public Instruction in accordance with criteria and standards approved by the State Board of Education. Details requirements that the driver education curriculum must include. Requires that the State Board establish and implement a strategic plan for this program and specifies minimum elements. Directs the State Board to adopt a salary range for driver education instructors who are public school employees and not licensed teachers. Directs the State Board to adopt rules to permit local boards of education to enter into contracts with public or private entities to provide a program of driver education at public high schools. Requires all driver education instructors to meet the requirements established by the State Board, but clarifies that driver education instructors are not required to hold teacher certificates. Amends GS 115C-216 to require local boards of education to offer noncredit courses using standardized curriculum provided by the Department of Public Instruction. Makes other conforming amendments. Provides reporting requirements on the status of the implementation of Section 7.12 of SL 2010-31. Specifies that for the 2011-12 school year, no state funds are to be used for driver education programs that do not use the standard driver education curriculum. Directs the State Board to establish a pilot program to deliver driver education by electronic means. Directs the State Board to report to the Joint Legislative Education Oversight Committee and to the Joint Legislative Program Evaluation Oversight Committee by June 15, 2012, on specified issues.

    PART XXIX. SALARIES AND BENEFITS

    GOVERNOR AND COUNCIL OF STATE
    SECTION 29.1. Identical to 4th edition.

    NONELECTED DEPARTMENT HEAD
    SECTION 29.2. Identical to 4th edition.

    CERTAIN EXECUTIVE BRANCH OFFICIALS
    SECTION 29.3. Identical to 4th edition.

    JUDICIAL BRANCH
    SECTION 29.4. Identical to 4th edition.

    GENERAL ASSEMBLY
    SECTION 29.5. Identical to 4th edition.

    COMMUNITY COLLEGES PERSONNEL
    SECTION 29.6. Identical to 4th edition.

    UNIVERSITY OF NORTH CAROLINA SYSTEM
    SECTION 29.7. Identical to 4th edition.

    SALARY ADJUSTMENTS FOR SPECIAL CIRCUMSTANCES ONLY/NO AUTOMATIC INCREASES
    SECTION 29.8. Same as 4th edition, except removes language for allowable increases for employees of the judicial branch for local supplementation, and replaces it with language allowing increases for University of North Carolina (i) faculty using funds from the Faculty Recruiting and Retention Fund, the Distinguished Professors Endowment Fund, or the University Cancer Research Fund in the case of faculty involved in cancer research supported by such fund and (ii) faculty, nonfaculty, and other employee adjustments funded from non-state funding sources.

    MOST STATE EMPLOYEES
    SECTION 29.9. Identical to 4th edition.

    ALL STATE-SUPPORTED PERSONNEL/NO SALARY INCREASES
    SECTION 29.10. Identical to 4th edition.

    STATE AGENCY TEACHERS’ COMPENSATION
    SECTION 29.11. Same as 4th edition, except adds provision that removes certain agencies from the section effective January 1, 2012.

    TEACHER SALARY SCHEDULES
    SECTION 29.12. Same as 4th edition, except makes reductions to Monthly Salary Schedule for “M” teachers with NBPTS Certification.

    SCHOOL-BASED ADMINISTRATOR SALARY SCHEDULE
    SECTION 29.13. Identical to 4th edition.

    CENTRAL OFFICE SALARIES
    SECTION 29.14. Identical to 4th edition.

    NONCERTIFIED PERSONNEL SALARIES
    SECTION 29.15. Identical to 4th edition.

    FURLOUGHS AUTHORIZED/PUBLIC SCHOOLS
    SECTION 29.16. Deleted.

    FURLOUGHS AUTHORIZED/UNC
    SECTION 29.17. Deleted.

    FURLOUGHS AUTHORIZED/NORTH CAROLINA COMMUNITY COLLEGE SYSTEM
    SECTION 29.17A. Deleted.

    ALL FURLOUGHS PROHIBITED EXCEPT AS ORDERED TO BALANCE THE BUDGET/BENEFITS PROTECTION FOR FURLOUGHED PERSONNEL
    SECTION 29.18.(a) Same as 4th edition, except makes changes to definitions.
    SECTION 29.18.(b) New provision forbids any furlough of a public employee paid with state funds unless ordered by the Governor while acting to balance the budget, or by the Chief Justice or the Legislative Services Officer.
    SECTION 29.18.(c) Deleted and is replaced with a provision substantially similar to Section29.18.(e) of the 4th edition, except with conforming changes and changes to what is required to be reported.
    SECTION 29.18.(d) Same as 29.18.(b) of the 4th edition.
    SECTION 29.18.(e) New provision provides that the benefits protections in the section also apply to public employees in the judicial and legislative branches.

    MONITOR COMPLIANCE WITH FREEZE ON MOST SALARY INCREASES
    SECTION 29.19. Identical to 4th edition.

    COMPREHENSIVE REVIEW AND REFORM OF PUBLIC EMPLOYEE COMPENSATION PLANS
    SECTION 29.20. Same as 4th edition, except provides for an additional minimum component of the study to evaluate salary supplements for public school employees paid on account of advanced degrees. Removes the assessment of the validity of performance-based compensation plans from the minimum requirements of the study. Makes changes to reporting details. Makes other technical changes.

    ESTABLISH SALARY ADJUSTMENT AND PERFORMANCE PAY RESERVE
    SECTION 29.20A. New provision establishes General Fund and Highway Fund reserve budget codes in the Office of State Budget and Management for the purpose of correcting labor market and other salary inequities, and to provide funding for a performance-based compensation plan to effectuate recommendations made under Section 29.20. Details how funds are to be appropriated and allocated.

    ESTABLISH SEVERANCE EXPENDITURE RESERVE
    SECTION 29.21. Same as 4th edition, except adds language providing for the allocation for funds appropriated to the Severance Expenditure Fund to public agencies for positions funded, or partially funded, by the General Fund or Highway Fund. Makes other technical changes.

    REPEAL REDUCTION-IN-FORCE PRIORITY CONSIDERATION UNDER THE STATE PERSONNEL ACT
    SECTION 29.21A. New provision rewrites GS 126-7.1 to remove language which required state employees who had been separated from employment due to a reduction in force be given priority consideration for employment vacancies. Applies to employees subject to reductions in force on or after July 1, 2011. Makes other technical changes.

    JUDICIAL DEPARTMENT EXPENSE AMENDMENTS
    SECTION 29.21B. New provision repeals GS 7A-300.1 and GS 135-1(7a)(b).10a. Makes conforming and technical changes to GS 7A-300(a). Rewrites GS 135-53(5) to remove language stating that compensation, as defined, does not include local supplementation as authorized under GS 7A-300.1. Makes other technical change to GS 135-53(5).

    STATE PERSONNEL INFORMATION AMENDMENT
    SECTION 29.21C. New provision rewrites GS 120-32.01(b) to provide that access to the BEACON/HR payroll system by the Research and Bill Drafting Divisions can only be done through the Fiscal Research Division.

    SALARY RELATED CONTRIBUTIONS
    SECTION 29.22. Same as 4th edition, except changes the maximum annual employer contributions, payable monthly, by the state for each covered employee or retiree for the fiscal years 2011-12 and 2012-13 to the State Health Plan for Teachers and State Employees.

    LIMIT STATE ABORTION FUNDING/HEALTH PLAN/INSURANCE
    SECTION 29.23. Same as 4th edition, except provides that the provisions of GS 135-45.8(21) and (22) do not apply to complications or related charges from an abortion not covered due to the section.

    PERMANENTLY EXEMPT PARTICIPANTS IN THE UNIVERSITY OF NORTH CAROLINA PHASED RETIREMENT PROGRAM FROM THE RESTRICTIONS ON RETURNING TO WORK
    SECTION 29.24. New provision rewrites GS 135-1(20) to clarify the definition of retirement for members who are, and who are not, participants in the University of North Carolina Phased Retirement Program.

    REDUCE THE REQUIRED BREAK IN SERVICE FOR RETIREES OF THE TEACHERS’ AND STATE EMPLOYEES’ RETIREMENT SYSTEM TO RETURN TO WORK WITHOUT LOSING RETIREMENT BENEFITS
    SECTION 29.25. New provision amends GS 135-1 by adding a new subdivision to define qualifying period. Amends GS 135-1(20) to provide that for a member’s retirement to become effective in any month, the member must render no services at any time during the qualifying period (previously six months) immediately following the effective date of retirement. Makes similar changes to GS 135-3(8)(c).

    PROVIDE FOR VESTING RECIPROCITY BETWEEN THE STATE AND LOCAL EMPLOYEES’ RETIREMENT SYSTEMS AND THE OPTIONAL RETIREMENT PROGRAM FOR STATE INSTITUTIONS OF HIGHER LEARNING
    SECTION 29.26. New provision rewrites GS 135-5.1(b)(5) to provide as title indicates.

    ENABLE THE UNC HEALTH CARE SYSTEM TO OFFER THE OPTIONAL RETIREMENT PROGRAM (ORP) AS A RETIREMENT OPTION
    SECTION 29.27. New provision amends GS 135-5.1(a) to include employees of the University of North Carolina Health Care System, subject to rules for eligibility and participation as may be adopted by the Board of Governors in the Optional Retirement Program plan document, to those eligible for the Optional Retirement Program.

    PART XXX. CAPITAL APPROPRIATIONS

    GENERAL FUND CAPITAL APPROPRIATIONS/INTRODUCTION
    SECTION 30.1. Identical to 4th edition.

    CAPITAL APPROPRIATIONS/GENERAL FUND
    SECTION 30.2. Identical to 4th edition.

    WATER RESOURCES DEVELOPMENT PROJECTS
    SECTION 30.3.(a) Same as 4th edition except states that the allocated funds will provide a state match for an estimated $20,749,000 (was, $23,449,000) in federal funds. Modifies the following allocations: $0 for Manteo Old House Channel (was, $1.225 million); $0 for Currituck Sound Environmental Restoration Study (was, $275,000); $3 million for state-local projects (was, $1 million); deletes allocation for Agricultural Water Resources Assistance Program.
    SECTION 30.3.(b) Same as 4th edition except deletes provision prohibiting fund availability to be used to fund the North Carolina International Terminal.
    SECTION 30.3.(c) Identical to 4th edition.
    SECTION 30.3.(d) Identical to 4th edition.
    SECTION 30.3.(e) Same as 4th edition except deletes requirement to provide information at least 60 days before preparing the Plan.

    NON GENERAL FUND CAPITAL IMPROVEMENT AUTHORIZATIONS
    SECTION 30.4.(a) Same as 4th edition except increases the authorized funding for Zoo-New Restrooms at Elephant/Rhino Exhibit to $400,000 (was, $300,000).
    SECTION 30.4.(b) Identical to 4th edition.

    REPAIRS AND RENOVATIONS RESERVE ALLOCATION
    SECTION 30.5. Identical to 4th edition.

    PROCEDURES FOR DISBURSEMENT OF CAPITAL FUNDS
    SECTION 30.6. Identical to 4th edition.

    UNC NON-GENERAL FUND CAPITAL PROJECTS
    SECTION 30.7. Identical to 4th edition.

    PROHIBIT GENERAL FUND, HIGHWAY FUND, OR HIGHWAY TRUST FUND EXPENDITURES FOR THE NORTH CAROLINA INTERNATIONAL TERMINAL
    SECTION 30.8. Deleted.

    VANCE-GRANVILLE COMM. COLL. BOND FUNDS
    SECTION 30.9. New provision adds Vance-Granville Community College to existing provision in SL 2000-3 to allow use of bond funds to be reallocated to different site from the one for which they were originally allocated.

    ALLOW THE UNIVERSITY OF NORTH CAROLINA BOARD OF GOVERNORS TO APPROVE THE PLANNING, AUTHORIZATION, AND FUNDING OF CAPITAL PROJECTS FROM NON-GENERAL FUND SOURCES
    SECTION 30.10. New provision amends GS 143C-8-12 as title indicates. Requires Board of Governors to report expenditures to the Office of State Budget and Management and the Legislative Commission on Government Operations.

    AUTHORIZE THE UNIVERSITY OF NORTH CAROLINA BOARD OF GOVERNORS TO ALLOCATE OR REALLOCATE FUNDS TO REPAIRS AND RENOVATIONS PROJECTS
    SECTION 30.11. New provision amends GS 143C-4-3 as title indicates. Requires that project meet requirements in subsection (b) of the statute unless the Board determines that sufficient funds are not available from other sources and that conditions warrant General Fund assistance, and the allocation or reallocation is in accordance with guidelines developed in The University of North Carolina Funding Allocation Model for Reserve for Repairs and Renovations, as approved by the Board of Governors. Requires the Board of Governors to report to the Joint Legislative Commission on Governmental Operations within 60 days of any allocation or reallocation under the statute. Becomes effective July 1, 2011.

    WAIVE THE REQUIREMENT FOR A CAPITAL PROJECT FEASIBILITY DETERMINATION FOR CAPITAL PROJECTS OF THE UNIVERSITY OF NORTH CAROLINA FOR WHICH ADVANCE PLANNING HAS NOT BEEN UNDERTAKEN
    SECTION 30.12. New provision amends GS 143C-3-3 and 143-341(3)(bl.) as title indicates. Becomes effective July 1, 2011.

    JOINT LEGISLATIVE OVERSIGHT COMMITTEE ON CAPITAL IMPROVEMENTS SHALL EXAMINE ADEQUACY OF PLANNING FOR LONG-TERM STATE CAPITAL NEEDS
    SECTION 30.13. New provision amends GS 120-259 to require examination as title indicates for long-term capital needs throughout the state (not just in Wake County). Requires report to the General Assembly on specified issues by April 1, 2012.

    PART XXXI. FEES

    EDUCATION/DRIVER EDUCATION REFORM
    SECTION 31.1. Deleted.¶
    EDUCATION/STATE BOARD AUTHORITY TO ESTABLISH GED TESTING FEES
    SECTION 31.2. Identical to 4th edition.

    NER/COMMERCE/SET REGULATORY FEE FOR UTILITIES COMMISSION
    SECTION 31.4. Identical to 4th edition.

    FEE TO ADVERTISE IN WELCOME CENTERS
    SECTION 31.4A. New provisions amend GS 143B-421.3 to impose fee of $100 or $200 (depending on the size of the advertising materials) to be paid by a person who places or displays advertising materials in a welcome center building. Does not apply to public sector entities.

    NER/AGRICULTURE/INCREASE FEES FOR PET SHOPS, AUCTIONS, KENNELS, AND DEALERS
    SECTION 31.5. Identical to 4th edition.

    NER/AGRICULTURE/REPEAL BOARD OF AGRICULTURE REVIEW OF FEE SCHEDULES
    SECTION 31.6 Deleted.

    NER/AGRICULTURE/FEES FOR OUT-OF-STATE SOIL TESTS AND EXPEDITED SOIL TESTS
    SECTION 31.7. Identical to 4th edition.

    NER/AGRICULTURE/TECHNICAL CORRECTIONS REGARDING COMMERCIAL FERTILIZER INSPECTION FEE, PESTICIDE TECHNICIAN IDENTIFICATION CARD RENEWAL FEE, AND PESTICIDE DEALER LICENSE RENEWAL FEE
    SECTION 31.8. Same as 4th edition except adds an amendment to GS 143-448(c) to increase the license renewal fee for pesticide dealers from $50 to $75.

    NER/AGRICULTURE/INCREASE AGRICULTURAL LIMING MATERIALS TONNAGE FEES
    SECTION 31.9. Identical to 4th edition.

    NER/AGRICULTURE/INCREASE ANTIFREEZE DISTRIBUTION REGISTRATION FEE
    SECTION 31.10. Identical to 4th edition.

    NER/AGRICULTURE/REDUCE PORTION OF CERTIFICATE OF TITLE FEES CREDITED TO MERCURY SWITCH REMOVAL ACCOUNT
    SECTION 31.11. Identical to 4th edition.

    LOCALS TO RECEIVE LARGER PORTION OF FOOD AND LODGING FEES
    SECTION 31.11A. New provision amends GS 130A-248(d) to reduce from 33 1/3% to 10% the amount of funds that may be used for state health programs (increasing the amount allocated for local programs).

    NER/ENVIRONMENT/STUDY FOOD AND LODGING FEES AND THEIR DISTRIBUTION BETWEEN THE STATE PROGRAM AND THE LOCAL PROGRAMS
    SECTION 31.14. Deleted.

    NER/ENVIRONMENT/ADDITIONAL USES OF HAZARDOUS WASTE FEES
    SECTION 31.15. Identical to 4th edition.

    NER/NATURAL RESOURCES/DIVERT PORTION OF DEED STAMP TAX REVENUE SOURCE FOR NATURAL HERITAGE TRUST FUND
    SECTION 31.17. Deleted.

    NER/NATURAL RESOURCES/PARKS AND RECREATION TRUST FUND; ALLOCATION OF DEED STAMP TAX PROCEEDS CREDITED TO FUND
    SECTION 31.18. Deleted.

    NER/NATURAL RESOURCES/NEW FUNDING SOURCE FOR WILDLIFE RESOURCE COMMISSION OPERATING BUDGET
    SECTION 31.20. Deleted.

    NER/NATURAL RESOURCES/NO NEW FEES FOR PARKING IN STATE PARKS
    SECTION 31.22. Identical to 4th edition.

    JPS/AOC/INCREASE CERTAIN COURT COSTS
    SECTION 31.23. Same as 4th edition except: Changes district court costs in criminal actions from $124.50 to $129.50; restores to $2.05 (was, $1.00) the amount to be remitted to the North Carolina State Bar for the support of legal services programs. Amendment #1 (from the Senate Finance Committee meeting on 5/24/11) revises new provision in GS 71-307(a)(4) to specify that the $20 fee must accompany any filing requiring a notice of hearing.

    JPS/AOC/COMMUNITY MEDIATION CENTERS/WORTHLESS CHECK PROGRAMS
    SECTION 31.24. Identical to 4th edition.

    JPS/AOC/INCREASE INTERSTATE COMPACT FEE
    SECTION 31.25. Identical to 4th edition.

    JPA/AOC/CONTINGENT COURT COST INCREASES FOR COUNTIES
    SECTION 31.26 Same as 4th edition except: Amendment #2 deletes provision in subsections (a) and (b) and enacts new GS 148.10, creating within the Department of Correction a special non-reverting fund called the Statewide Misdemeanor Confinement Fund (SMCF). Provides that costs under GS 7A-304(a) new subsection (2b) ($18 for maintenance of misdemeanors in county jails) and under new section (4b) ($50 for convictions for improper equipment, to provide for contractual services to reduce county jail populations), are to be remitted to the SMCF. Also contingent on House Bill 642 becoming law.

    LABORATORY FACILITIES FEE EXPANSION
    SECTION 31.26A. New provision amends GS 7A-304(a)(7) to allow costs under that provision for the services of local law enforcement laboratory facilities to be remitted to the local law enforcement laboratory that performed the analysis.

    GENGOV/INS/SET INSURANCE REGULATORY CHARGE
    SECTION 31.27. Identical to 4th edition.

    INVESTMENT COMPANY NOTICE FILING FEE
    SECTION 31.27A. New provision amends GS 78A-31(a) to specify that it applies to a security issued by an investment company that is registered or has filed a registration statement under the Investment Company Act of 1940; and changes the initial and renewal fee amount from $2,000 to $1,725, plus $275 for each series, fund, or portfolio offered in this state and listed in the federal registration statement. New provision becomes effective July 1, 2011, and applies to fees for filings due on or after that date.

    RAISE PARKING RATES
    SECTION 31.27B. New provision requires the Department of Administration to increase by $1 per hour the visitor parking lot rates for lots in the State Government Complex. Directs funds to be used for debt service for the Green Square Parking Lot authorized in SL 2008-107.

    STATEWIDE INFORMATION TECHNOLOGY PROCUREMENT
    SECTION 31.27C. New provision directs that Statewide Information Technology Procurement (SITP) will be funded by fees charged to agencies using their services. Authorizes the Chief Information Officer to create a fee schedule, and authorizes the Office of State Budget and Management to transfer unpaid amounts to SITP if agencies fail to pay for services within 30 days of billing.

    TRANSPORTATION/DIVISION OF MOTOR VEHICLES BULK DATA
    SECTION 31.29. Identical to 4th edition.

    TRANSPORTATION/FERRY DIVISION TOLLING ON ALL ROUTES
    SECTION 31.30. Same as 4th edition except eliminates provisions requiring the Board of Transportation to maintain one untolled ferry route to any barrier island not accessible by a state-maintained road and prohibiting a toll on the Knotts Island Ferry.

    PART XXXI-A FINANCE PROVISIONS (New)

    ENCOURAGE JOB GROWTH AND LONG-TERM ECONOMIC PROSPERITY BY REDUCING THE INCOME TAX BURDEN ON INDIVIDUALS AND SMALL BUSINESSES
    SECTION 31A.1 Amends GS 105-134.2 to decrease individual income tax rates by .25%. Amends GS 105-134.5 to define taxable income as adjusted gross income as modified in GS 105-134.6 and rewrites modifications to adjusted gross income under that statute. Amendment #4 deletes “temporary” from the heading and deletes provisions that would have made the rate changes expire beginning taxable year 2014. Amendment #5 amends GS 105-122(b)(2) regarding determination of capital base for corporate franchise and privilege tax, to include in list of allowed reservation or allocation from surplus or undivided profits taxes accrued, dividends declared, and reserves for amortization of intangible assets as permitted for income tax purposes. Amends GS 105-151.26 (Credit for charitable contributions by nonitemizers) to delete provision disallowing credit for amounts deducted for contributions for which a credit was claimed under GS 105-151.12 (real property donations) or GS 105-151.14 (gleaned crop). Changes become effective for taxable years beginning on or after January 1, 2012.

    ELIMINATE DEDUCTION FOR SEVERANCE WAGES AND CREDIT FOR OYSTER SHELLS
    SECTION 31A.2. Repeals G.S. 105-134.6(b)(11) (severance wages) and (b)(19) (5% of gross purchase price of qualified sale of a manufactured home community); and GS 105-130.48 (recycling oyster shells) and GS 105-151.30 (recycling oyster shells). Effective for taxable years beginning on or after January 1, 2011.

    ELIMINATE SALES TAX EXEMPTION FOR CERTAIN NUTRITIONAL SUPPLEMENTS AND THE ENERGY STAR TAX HOLIDAY
    SECTION 31A.3. Repeals GS 105-164.13(13c) (nutritional supplements sold by a chiropractic physician to a patient as part of plan of treatment) and GS 105-164.13D (Energy Star tax holiday) and makes conforming changes in GS 105-467(b). Effective October 1, 2011, and applies to sales made on or after that date.

    PART XXXII. MISCELLANEOUS PROVISIONS

    STATE BUDGET ACT APPLIES
    SECTION 32.1. Identical to 4th edition.

    MOST TEXT APPLIES ONLY TO THE 2011 2013 FISCAL BIENNIUM
    SECTION 32.2. Identical to 4th edition.

    EFFECT OF HEADINGS
    SECTION 32.3. Identical to 4th edition.

    COMMITTEE REPORT
    SECTION 32.4. Same as 4th edition except references the Senate Appropriations Committee Report, dated May 26, 2011.

    SEVERABILITY CLAUSE
    SECTION 32.5. Identical to 4th edition.

    EFFECTIVE DATE
    SECTION 32.6. Identical to 4th edition.

    Amendments from the Senate Appropriations Committee meeting on 5/25/11 will be digested in tomorrow’s Daily Bulletin.


  • Summary date: May 3 2011 - View summary

    House amendments make the following changes to 3rd edition.
    Amendment #1 amends Section 5.4.(d) to allow local school administrative units to use funds received from the Public School Building Capital Fund pursuant to subsections (b) and (f) (previously limited to only subsection (f)). Amends Section 9.13.(b) to allow the giving of tuition and fee waivers or especially reduced rates when expressly authorized by statute or session law under GS 116-143(c). Amends Section 10.48.(a) by increasing the amount of achieved savings to $18.2 million in 2011-12, and to $29 million in 2012-13 that DHHS is directed to achieve through a greater generic prescription dispensing rate under Medicaid.
    Creates a new section to read:
    USE OF FUNDS/FOOD AND LODGING PROGRAM
    SECTION 13.10C. Directs the Division of Environmental Health to not change the use of the $400,000 appropriation originally intended for aid to counties for local food and lodging programs. Specifies the Division may not use the funds to pay for the costs to operate the state elements of the program. Specifies that counties will not receive a higher percentage of the food and lodging fee that would have offset not receiving the grant funds.
    Deletes Section 13.20., which permitted a marine fisheries inspector authorized by the Fisheries Director (or designee) to accept delegation of law enforcement powers from the National Marine Fisheries Service over matters within the Service’s jurisdiction. Amends Section 13.22.(a) by rewriting GS 143-215.10A to specify that technical assistance for animal waste management systems will be provided by the Division of Soil and Water Conservation.
    Creates a new section to read:
    TRANSFER OF NC HUMAN RELATIONS COMMISSION FROM DEPARTMENT OF ADMINISTRATION TO OFFICE OF ADMINISTRATIVE HEARINGS
    SECTION 20.1A. Transfers the North Carolina Human Relations Commission created pursuant to GS 143B-391, other than the administration of the Martin Luther King, Jr. Commission created pursuant to GS 143B-426.34A, from the Department of Administration to the Office of Administrative Hearings. Makes other technical and conforming changes.
    Amends Section 24.1. by reinstating language previously deleted, allowing a free copy of the NC
    Administrative Code to specified parties.
    Creates new section to read:
    PERSONNEL ADJUSTMENT AND IT REDUCTION
    SECTION 25.3. Directs that of the six vacant positions eliminated in the Office of State Budget
    and Management, the Accounting Technician position #60008574 is to be substituted with the State
    Budget Management Analyst position #60008609. Specifies substitutions or additions relating to salaries
    and benefits to be made in (1) Salaries; (2) Social Security; (3) Retirement; (4) Medical Insurance; and (5)
    531211 Salary Reserve.
    Creates a new section to read:
    ELIMINATED POSITIONS IN VOTER REGISTRATION AND SYSTEMS
    SECTION 26.2. Directs that of the ten vacant positions eliminated in the State Board of
    Elections’ Voter Registration and Systems, the Elections Technician position #60088251 is to be
    substituted with the Voting Systems Project Manager position #60088252.
    Creates a new Part to read:
    PART XXVIA. STATE CONTROLLER
    OVERPAYMENTS AUDITS
    SECTION 26.1A. Directs that during the 2011-2013 biennium, receipts generated by the
    collection of certain inadvertent overpayments by state agencies to vendors are to be deposited in
    Special Reserve Account 24172 (Reserve). Directs that for each year of the 2011-13 biennium
    $500,000 of the funds transferred from the Reserve must be used by the Office of the State Controller for
    data processing, debt collection, or e-commerce costs. Directs that all funds available in the Reserve on
    July 1 of each year of the 2011-13 biennium be transferred to the General Fund on that date. Specifies
    that any unobligated funds in the Reserve that are realized above the $500,000 allowance set forth above
    are subject to appropriation by the General Assembly. Directs the State Controller to report quarterly to
    the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division on the
    revenue deposited into the Reserve and the disbursement of that revenue. Makes other technical changes.
    Amendment #2 rewrites Section 29.8.(f) to specify that employees of the University of North Carolina Health Care System and employees participating in a constituent institution’s medical faculty practice plan may receive compensation bonuses.
    Amendment #3 amends Section 10.41.(b) by rewriting GS 108A-70.21(b) to include additional language directing the Department of Health and Human Services to begin transitioning all health benefit changes of the Program to meet the coverage requirements set forth in the subsection. Makes a clarifying change.
    Amendment #4 amends Section 31.30.(a) by specifying the Department of Transportation is not to establish a toll for the Knotts Island Ferry.
    Amendment #5 eliminates Section 18.11., which transferred all functions, powers, duties, and obligations of administering the Sentencing Services Program entrusted in the Office of Indigent Defense Services to the Department of Correction as a Type I transfer. Creates a new section to read:
    ELIMINATE SENTENCING SERVICES
    SECTION 15.19. Eliminates the Sentencing Services Program of the Office of Indigent Defense Services and specifies that no funds are to be taken from the Criminal Justice Partnership Program to restore or transfer the Sentencing Services program. Makes technical and conforming statutory changes.
    Amendment #7 amends Section 7.21(b), specifying that local school administrative units must make every effort to reduce spending with the goal of protecting direct classroom services, such as classroom teachers and teacher assistants in 2011-13. Directs units to first consider reductions to central office administration and other administrative functions.
    Amendment #10 amends Section 10.35(b), specifying that deposits accounted as nontax revenue represent the return of General Fund appropriations, non-federal revenue, fund balances, or other resources from state-owned and operated hospitals which are used to provide indigent and non-indigent care services. Adds that the return from state-owned and operated hospitals to DHHS will be made from non-federal resources in an amount equal to the amount of the payments from the Division of Medical Assistance for uncompensated care.
    Amendment #11 amends Section 31.23(b), (c), and (d) to clarify that no costs will be assessed to a motion containing as a sole claim for relief the taxing of costs, including attorneys’ fees, in GS 7A-305(f), 7A-306(g), and 7A-307(a)(4), respectively.
    Amendment #12 adds the following new section:
    REVISOR OF STATUTES
    SECTION 22.2. Recodifies Article 2 of GS Chapter 114 as Article 7D of GS Chapter 120, entitled Codification of Statutes. Directs the Legislative Services Commission to assign to its staff duties previously designated to the Division of Legislative Drafting and Codification of Statutes in the Department of Justice, and to prepare bills as provided by GS 120-31(9). Makes conforming changes and specifies that the staff member of the Legislative Services Commission who performs duties under GS 120-36.21(3) is the Revisor of Statutes.
    Amendment #14 clarifies, in Section 9.11(a), that a student’s demonstrated inability to enroll in appropriate courses due to reduced course offerings may also allow the student to receive a grant for additional financial aid.
    Amendment #22 deletes Section 17.16, providing for the phaseout of allotment of teachers at geographically isolated schools, in its entirety. Adds the following new section:
    GEOGRAPHICALLY ISOLATED SCHOOLS
    SECTION 7.16. Prohibits any reduction in funding for additional teacher positions at geographically isolated schools as defined by Section 7.26 of SL 2009-451. Increases the recurring reduction for instructional support by $192,035 for 2011-12 and $411,053 for 2012-13.
    Amendment #23 adds the potential sale, and the time such sale should take place, of a DOT Beechcraft B200 aircraft to the study directed under Section 6.13.(b).
    Amendment #24 reduces the appropriation made to the General Assembly by $138,000 for both years of the 2011-13 biennium. Adds the following new section:
    REDUCE FUNDING FOR PED STAFF EXPANSION TO RESTORE FUNDING TO THE AID TO COUNTIES PROGRAM IN THE DIVISION OF VETERANS AFFAIRS
    SECTION 20.8. Reduces the funds appropriated to expand the General Assembly’s Program Evaluation Division by $138,000 for each of the years in the 2011-13 biennium and reduces the number of positions to expand the Division from five to three. Moves those funds to the Aid to Counties Program in the Department of Administration, Division of Veterans Affairs.
    Amendment #26 adds “conservation easements” to projects approved Section 13.26.(c)(3). Replaces Section 13.26(d) with the following:
    SECTION 13.26.(d). Specifies that certain funds under the section cannot be used for land acquisition, but provides that certain funds may be used to purchase conservation easements. Designates which funds may be used for land acquisition.
    Amendment #28 adds a new section:
    LIMIT COMPENSATION RATE PAID TO EXPERT WITNESSES BY THE OFFICE OF INDIGENT DEFENSE SERVICES
    SECTION 15.19. Rewrites GS 7A-498.5(f) to set the rate of compensation for an expert witness to be no greater than the rate set by the Administrative Office of the Courts under GS 7A-314(d).
    Amendment #30 makes the following changes to the appropriations from the General Fund for current operations and expansion: (1) decreases the amount appropriated to the Department of Agriculture and Consumer Services by $100,000 for 2011-12 and 2012-13 (was, appropriated $62,985,947 for 2011-12 and $58,601,764 for 2012-13); (2) decreases the amount appropriated to the Department of Commerce for Commerce State-Aid (Commerce) by $310,079 for the 2011-12 (was, appropriated $31,376,632 for the 2011-12 fiscal year); and (3) increases the appropriation to the Department of Environment and Natural Resources (DENR) by $410,079 for 2011-12 and by $100,000 for 2012-13, (was, appropriated $163,030,800 for 2011-12 and $147,986,824 for 2012-13).
    Adds new Section 13.10C, Use of Funds Obtained From Closing the Raleigh Office of the Division of Coastal Management, to direct DENR to shift funding for General Fund positions, or operating expenses, or both to receipt support in the amount of $109,523 for 2011-12 and 2012-13 fiscal years from the federal receipts that were formerly used to support the one full-time receipt-supported position that is eliminated as a result of closing the Raleigh office of the Division of Coastal Management of DENR.
    Adds new Section 13.10D, Funds for DENR Study of Oil and Gas Exploration in NC, to provide that if House Bill 242, 2011 Regular Session becomes law, DENR is directed to use $100,000 of the nonrecurring funds appropriated for 2011-12 to Commerce for the Institute of Regenerative Medicine at Wake Forest University to study the issue of oil and gas exploration in the state as provided in House Bill 242.
    Adds new Section 13.10E, Flexibility in Reductions at DENR Regional Offices, to allow DENR the flexibility as the title indicates in meeting the total reduction under this act for each of DENR’s seven Regional Offices for the 2011-12 and 2012-13 fiscal years.
    Adds new Section 13.10F, Restore Certain Positions at DENR Regional Offices, to decrease the total amount of the reduction for eliminating positions at DENR’s seven Regional Offices by $420,872 for the 2011-12 and 2012-13 fiscal years and to identify nine positions that are not to be eliminated at the seven Regional Offices. Also directs DENR to reduce its costs by $310,079 for the 2012-13 fiscal year by eliminating vacant positions that DENR selects from across DENR and using these funds to decrease the reduction under this section by $310,079 for 2012-13.
    New Section 13.10G, DENR Cell Phone Funds Reduction, increases the General Fund recurring reduction for cell phones across DENR by $22,450 for the 2011-12 and for the 2012-13 fiscal years. New Section 13.10H, DENR Motor Fleet Management Funds Reduction, increases the General Fund recurring reduction for motor fleet management expenditures across DENR by $88,343 for the 2011-12 and for the 2012-13 fiscal years.
    Amends the title for Section 13.23 to add the phrase, Funds to Promote Water Supply Development. Makes a conforming change to punctuation.
    Adds new subsection (i) to Section 13.23 to provide that if House Bill 609, 2011 Regular Session becomes law, DENR is to use $83,000 of its funds available for Water Resources projects for the 2011-12 fiscal year to implement House Bill 609. Also adds new subsection (j) to provide that if House Bill 609 becomes law, DENR is to use $83,000 of the funds appropriated to it for the Green Square Operating Reserve for the 2012-13 fiscal year to implement House Bill 609.
    Adds new Section 13.30 Museum of Natural Sciences Temporary Wages, to decrease the reduction in temporary wages for the Museum of Natural Sciences by $100,000 for the 2011-12 and the 2012-13 fiscal years.
    New Section 13.31, Green Square Operating Reserve, decreases the recurring appropriation to DENR for the Green Square Operating Reserve by $100,000 for the 2011-12 and for the 2012-13 fiscal years.
    Adds new Section 13.32, Soil and Water Area Coordinator Positions at DENR Regional Offices, to decrease the total reduction for eliminating positions at DENR’s seven Regional Offices by $360,278 for 2011-12 and 2012-13 fiscal years. Provides that six Soil and Water Coordinator positions are not to be eliminated at the seven Regional Offices.
    New Section 13.33, Forest Resources Operating Reduction, increases the recurring reduction for the operating expenses for the Division of Forest Resources of DENR by $200,000 for the 2011-12 and the 2012-13 fiscal years.
    Adds Section 13.34, Parks and Recreation Operating Reduction, to increase the recurring reduction for DENR’s Division of Parks and Recreation by $60,278 for the 2011-12 and 2012-13 fiscal years.
    New Section 11.8, Agricultural Research Stations Operating Reduction, increases the recurring reduction for the operating expenses of the agricultural research stations of the Department of Agriculture and Consumer Services by $100,000 for the 2011-12 and for the 2012-13 fiscal years.
    Adds new subsection (h) to Section 14.12 to decrease the non-recurring appropriation to the Department of Commerce for Commerce State-Aid for the Institute by $310,079 for the 2011-2012 fiscal year.
    Provides that the appropriate totals are to be adjusted accordingly.
    Amendment #32 adds a new section:
    JUVENILE ASSESSMENT CENTER FUNDS
    SECTION 17.12. Directs that of the funds appropriated for 2011-12 and for 2012-13 to the Department of Juvenile Justice and Delinquency Prevention for the operation of the Cumberland Regional Juvenile Detention Center, the sum of $124,075 must be used for the Juvenile Assessment Center in each fiscal year.
    Amendment #33 adds protecting direct classroom services including faculty members and adjunct professors to the list of those to be considered by the UNC Board of Governors and campuses of the constituent institutions before taking reductions in instructional budgets in Section 9.6.(a).
    Amendment #34 adds language to Section 10.57 specifying that the consolidation does not eliminate or reduce any programs or services currently offered by the three Divisions. Adds new section:
    SECTION 10.57.(b). Provides that the savings obtained from the consolidations be achieved through reductions in administrative staff, leased space, and other administrative or overhead costs associated with the consolidation of the three Divisions only. Makes technical change.
    Amendment #35 adds a new section:
    YOUTH ADVOCACY AND INVOLVEMENT OFFICE POSITION CHANGES
    SECTION 20.9. Increases the reduction in funding for the personnel in the Office of Youth Advocacy and Involvement Office by $50,325 for both years of the 2011-13 biennium through a change in positions eliminated and an increase in reduction to operating expenses. Restores Executive Director position #6001406 and substitutes Advocacy Specialist position # 60014503 and Administrative Officer II position #60014065, resulting in six positions being eliminated.
    Amendment #38 adds a new section:
    DEPARTMENT OF CORRECTION RULES FOR INMATE LABOR
    SECTION 18.12.(a). Amends GS 148-26 by adding a new subsection directing the Department of Correction to establish rules, standards, and procedures for establishing inmate labor services contracts with any county or municipality expressing interest in contracting for inmate labor.
    SECTION 18.12.(b). Directs the Department of Correction not to close the Bladen Correctional Center and to identify equivalent savings through the closure of other prisons, as specified.
    Amendment #39 adds additional language to Section 10.7.(f) to expand access to the More at Four program to age-eligible children of either (1) an active member of the armed forces of the United States or a reserve component ordered to active duty by the proper authority within the last 18 months; or (2) a member of the armed forces of the United States or a reserve component who was injured or killed while serving on active duty.
    Amendment #40 amends Section 10.21.(a), by adding community based organizations, faith based organizations and American Indian tribes as organizations to which grants-in-aid may be provided under the section. Deletes Section 10.21.(b), which required local public health departments to demonstrate certain funding partnerships. Makes conforming changes to Section 10.21.
    Amendment #41 adds a new section:
    REDUCE FUNDING TO THE STATE FAIR ENTERPRISE FUND TO FUND THE DEFENSE & SECURITY TECHNOLOGY ACCELERATOR
    SECTION 14.2A. Provides that of the nonrecurring funds appropriated to the Department of Agriculture and Consumer Services’ State Fair Enterprise Fund, $700,000 for 2011-12 must be allocated to the Commerce State-Aid to fund the Defense & Security Technology Accelerator.
    Amendment #42 adds a new section:
    TRIAL COURT ADMINISTRATOR POSITIONS
    SECTION 15.19. Provides that any judicial district wishing to retain or establish a Trial Court Administrator position may petition the Administrative Office of the Courts (AOC) for the position. Directs the AOC to work with the senior resident superior court judge in each district seeking a Trial Court Administrator position to identify other positions or sources of funding within that judicial district to fund the position.
    Amendment #44 amends Section 5.4(b) to make the following appropriations to the Public School Building Capital Fund and UNC Need-Based Financial Aid from the Education Lottery Fund in 2011-12: $98,697,370 (was, $55,238,170) and $42,497,363 (was, $51,356,563), respectively. Deletes appropriation to Scholarships for Needy Students. Adds the following new section:
    UNC NEED-BASED FINANCIAL AID PROGRAM AND UNC MANAGEMENT FLEXIBILITY
    SECTION 9.17. Increases the appropriation to the UNC Board of Governors for the UNC Need-Based Financial Aid Program by $8,859,200 in each fiscal year, and increases the management flexibility reduction for UNC by $8,859,200 in each year.


  • Summary date: Apr 29 2011 - View summary

    Amendments from the House Appropriations Committee meeting on 4/27/11 make the following changes.
    Amendment #1 amends Section 10.46.(b) to provide that required rate reductions must take effect no later than October 1, 2011. Further provides that if effective after July 1, 2011, the reductions are to be adjusted by a percentage sufficient to yield savings as if the reductions had taken effect July 1, 2011.
    Amendment #2 adds a new section entitled:

    COUNCIL OF GOVERNMENT FUNDS
    SECTION 14.12A.(a) Directs that of the funds appropriated in this act to the Department of Commerce, $343,187 for 2011-12 and $243,187 for 2012-13 are to be used only as provided by this section. Allocates up to $25,000 to each regional council of government or lead regional organization for 2011-12 and 2012-13.
    SECTION 14.12A.(b) Directs a regional council of government to use funds allocated to it 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 14.12A.(c) Directs that funds allocated by this section must be paid by electronic transfer in two equal installments each fiscal year. Upon receipt of the report required by subsection (e) of this section, the first installment must be paid no later than September 15 of each year.
    SECTION 14.12A.(d) Specifies that funds allocated by this section must not be used for payment of dues or assessments by the member governments and must not supplant funds appropriated by the member governments.
    SECTION 14.12A.(e) Provides that by September 1 of each year, and more frequently as requested, each council of government or lead regional organization must report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division of the General Assembly on prior state fiscal year program activities, objectives, and accomplishments and prior state fiscal year itemized expenditures and fund sources. Each council of government or lead regional organization must provide to the Fiscal Research Division of the General Assembly a copy of the organization's annual audited financial statement within 30 days of issuance of the statement.

    Amendment #7 adds a new section entitled:

    NORTH CAROLINA WINERIES & TOURISM/OPERATING COMMITTEES
    SECTION 14.3A.(a) Establishes an operating committee for the Vinifera Group and an operating committee for the Muscadines Group. Provides guidelines, including the purpose, membership, and meeting details for the committees.

    Amendment #9 amends Section 13.22.(a) to provide that technical assistance, inspection, and enforcement will be provided by the Division of Water Quality.
    Amendment #13 deletes Section 9.7, which forbids the Board of Governors of the University of North Carolina from approving or implementing campus-initiated tuition increases.
    Amendment #14 deletes Section 9.2., entitled DOCUMENTATION AND ACCOUNTABILITY FOR ENROLLMENT GROWTH FUNDING MODEL.
    Amendment #17 deletes Section 9.3., which provided that a special responsibility constituent institution must not increase the state appropriation for any program or line item reduced by the act.
    Amendment #21 amends Section 10.8.(b) to allow, at the discretion of the Secretary of Health and Human Services, certain existing funds allocated to LMEs to be used to purchase additional local inpatient psychiatric beds or bed days. Makes other conforming changes.
    Amendment #22 adds a new subsection:
    SECTION 7.19.(c) Directs the Department of Public Instruction to not reduce funding or positions for the Positive Behavioral Support program.
    Amendment #23 adds a new section entitled:

    FUNDS FOR RECYCLING PROGRAMS FOR PRODUCTS THAT CONTAIN MERCURY
    SECTION 13.10B. Effective July 1, 2011 until December 31, 2017, rewrites GS 130A-310.54 to implement and fund the Mercury Pollution Prevention Fund for the purpose of implementing recycling programs for products containing mercury, including at least recycling programs for light bulbs and thermostats. Makes other technical and conforming changes.

    Amendment #28 amends Section 30.3.(b) to specify available funds are not to be used to fund the North Carolina International Terminal. Also adds a new section entitled:

    PROHIBIT GENERAL FUND, HIGHWAY FUND, OR HIGHWAY TRUST FUND EXPENDITURES FOR THE NORTH CAROLINA INTERNATIONAL TERMINAL
    SECTION 30.8. Directs that, notwithstanding any provision of law, funds from the General Fund, Highway Fund, or Highway Trust Fund are not to be used to fund the North Carolina International Terminal of the North Carolina State Ports Authority. Excepts the use of agency receipts.

    Amendment #34 amends Section 31.23.(b), (c), and (d) by adding that no court costs are to be assessed to an application for the taxing of costs or a prayer for relief. Makes other technical and conforming changes.

    Amendment #35 adds a new section entitled:

    TRANSFER SENTENCING SERVICES PROGRAM
    SECTION 18.11. Transfers all functions, powers, duties, and obligations of administering the Sentencing Services Program entrusted in the Office of Indigent Defense Services to the Department of Correction as a Type I transfer. Makes technical and conforming statutory changes.

    Amendment #38 amends Section 10.31.(d), prohibiting the Department of Health and Human Services from imposing prior authorization requirements on medications prescribed for Medicaid recipients for the treatment of mental illness, unless the provider fails to prescribe those drugs in accordance with indications and dosage levels approved by the federal Food and Drug Administration, or HIV/AIDS. Further provides guidelines when individuals 18 years old and younger are prescribed three or more psychotropic drugs.

    Amendment #41 amends Section 5.4.(b) to replace the word “Children” with “Students.” Amends Section 19.1.(aa) by deleting the language which establishes the Division of Emergency Management within the Department of Crime Control and Public Safety in GS 143B-272.52. Deletes Section 19.1.(ff). Deletes Section 19.1.(nn), which deleted the definition of “Civil Air Patrol members” from GS 143-166.2(d), as rewritten by subsections (h) and (l) of the section. Deletes the word “FEDERAL” from the title of Section 26.1. and replaces it with the word “STATE.” Deletes Section 28.28.(e), which suspended salary increase provisions under GS 20-187.3 for 2011-12 and 2012-13. Amends the bill by deleting numerous duplicative sections, and makes conforming changes. Amends the bill to create a new subsection:

    SECTION 20.6.(a) Transfers the campaign finance functions of the State Board of Elections and the lobbying registration and enforcement functions of the Secretary of State to the State Ethics Commission and makes technical changes.
    Makes further technical, conforming, and clarifying changes.

    Amendment #45 amends the bill by adding a new section entitled:

    JOHNSTON COUNTY LME ADMINISTRATIVE FUNDING
    SECTION 10.8A. Provides that, notwithstanding GS 122C-115(a1), the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, must not further reduce, as a consequence of the total population of the catchment area served, the allocation of administrative funding to the Johnston County Area Mental Health, Developmental Disabilities, and Substance Abuse Authority for 2011-12.

    Amendment #51 deletes Section 7.22. in its entirety and replaces it with a new section entitled:

    NORTH CAROLINA VIRTUAL PUBLIC SCHOOLS
    SECTION 7.22. Directs the North Carolina Virtual Public School (NCVPS) to report to the State Board of Education (SBE) and to maintain an administrative office at the Department of Public Instruction (DPI). Directs the Director of NCVPS to ensure that students residing in rural and low-wealth county local administrative units (LEAs) have access to e-learning course offerings. Directs the SBE to implement an allotment formula for NCVPS beginning with the 2011-12 school year. Specifies steps to be taken to implement the allotment formula. Provides that the NCVPS program is available at no cost to all high school students enrolled in North Carolina’s public schools, Department of Defense schools, and schools that are operated by the Bureau of Indian Affairs. Directs SBE to consider recommendations from the eLearning Commission and NCVPS Advisory Board when establishing a fee and payment structure for NCVPS. Directs the SBE to establish a separate per student fee structure for out-of-state students, private school students, and home-schooled students. Directs NCVPS to develop a revenue-generating plan for the sale of courses to out-of-state educational entities and to submit such plan to SBE by September 1, 2011. Requires, beginning in 2011, that the Director of NCVPS submit an annual report on NCVPS to SBE no later than December 1 of each year. Specifies the information required in the report. Directs SBE to reduce ADM dollar allotments on the basis of ADM in grades 6-12 to provide $2,866,923 for state-level operations and administration of NCVPS for 2011-12 with such reductions continuing (adjusted annually) in future fiscal years. Directs SBE to reduce ADM dollar allotments on the basis of ADM in grades 6-12 to provide the sum of $2 million in order to create the NCVPS enrollment reserve which is to fund NCVPS instructional costs for LEAs or charter schools with enrollments exceeding projected NCVPS enrollment. Provides formula to fund enrollment reserve for 2012-13 and annually thereafter. Requires SBE to use only funds provided through the North Carolina Virtual Public Schools Allotment Formula and the NCVPS enrollment reserve to fund instructional costs of NCVPS. Repeals section 7.4 of SL 2010-31 (North Carolina Virtual Public Schools Allotment Formula).

    Amendment #54 deletes Section 20.2. which transfers the North Carolina Human Relations Commission from the Department of Administration to the Office of Administrative Hearings and replaces it with a new section entitled:

    STUDY BY THE LEGISLATIVE RESEARCH COMMISSION OF THE DUTIES AND SERVICES OF THE NORTH CAROLINA HUMAN RELATIONS COMMISSION AND THE CIVIL RIGHTS DIVISION OF THE OFFICE OF ADMINISTRATIVE HEARINGS
    SECTION 20.2. Authorizes the Legislative Research Commission (LRC) to study the duties and services of the North Carolina Human Relations Commission and the Civil Rights Division of the Office of Administrative Hearings to determine whether there is unnecessary overlap and duplication of services and to recommend the placement of the Commission and Division in the appropriate agencies. Requires LRC to make interim report to the 2011 General Assembly when it reconvenes in 2012 and make its final report to the 2013 General Assembly. Effective when it becomes law.

    Amendment #71 amends Section 7.1.(b) (Education Reform) by rewriting certain subsections to provide more detailed and clarifying language. Adds numerous other subsections directing the Committee to study state funding formulas, course offerings, alternative course delivery methods, increasing public access to value-added assessments, school and district accreditation, adding additional information to the State Public School Report Cards, use of school district resources, privatization of local school administrative unit services, and strategies for measuring and strengthening academic achievement in middle schools.
    Amendment #72 deletes Section 13.1., which increased certain inspections fees, gave local health departments authority to set such fees, and reduced the percentage of such fees that are used to support state health programs and activities.
    Amendment #73 amends Section 13.27.(b) by deleting the word “operating” where it occurs and adds a provision directing that the funds appropriated under the section are to be transferred to the Wildlife Resources Fund, as provided by GS 143-250, and are to be used for personal services expenditures only.
    Amendment #74 amends Section 10.21.(a) by directing the Office of Minority Health to coordinate and implement the grant-in-aid program. Amends Section 10.21.(c) by adding an additional provision forbidding the grantee from using more than 5% of the grant funds for indirect costs. Makes other technical and conforming changes.
    Amendment #75 adds a new section entitled:

    FUNDS FOR CLEANUP AND MONITORING OF TEXFI SITE CONTAMINATION
    SECTION 13.10A. Reduces the operating expenses of the Solid Waste Management Trust Fund by $50,000 for 2011-12 and provides funding of $50,000 to be used for 2011-12 for the cleanup and monitoring of the groundwater and other contamination at the Texfi site in Fayetteville.

    Amendment #77 adds a new section entitled:

    STATEWIDE ADMINISTRATIVE COURT SESSIONS
    SECTION 15.11A. Directs the Administrative Office of the Courts (AOC) to develop protocols to offer regular Administrative Court sessions in each district court in the state for the purpose of hearing Chapter 20 (Motor Vehicles) infractions and directs that such sessions be offered in each district by October 1, 2011. The AOC must report to the Joint Legislative Commission on Governmental Operations on the scheduling and deployment of resources by February 1, 2012.

    Amendment #81 amends Section 29.16.(f) by increasing the annual salary that an employee must earn to not be subject to a furlough from $25,000 to $30,500.
    Amendment #98 amends Section 28.28. by deleting subsections (a) and (b) and replacing them with a new SECTION 28.28(a) granting the Department of Crime Control and Public Safety, State Highway Patrol, the flexibility to achieve a savings of $1,380,370, recurring, in the State Highway Patrol’s administrative structure and specifically authorizes the elimination of positions. Amends Section 28.28.(c) to forbid any elimination of sworn law enforcement positions allocated for district-level traffic and commercial vehicle enforcement unless the state Highway Patrol is otherwise incapable of implementing the above reductions. Makes other technical changes.

    Amendment #99 amends Section 31.30. by providing that the Board of Transportation must maintain one untolled ferry route to any barrier island that is not accessible by a state-maintained road.
    Amendment #100 adds a new section entitled:

    MEN’S HEALTH
    SECTION 10.26A. Directs the Department of Health and Human Services, Division of Public Health, to ensure attention to the prevention of disease and improvement in the quality of life for men over their lifetime by (1) developing a strategic plan to improve health care services, (2) building public health awareness, (3) developing initiatives within existing programs, and (4) pursuing federal and state funding for the screening, early detection, and treatment of prostate cancer and other diseases affecting men’s health.

    Amendment #105 adds a new section entitled:

    MODIFY ELIMINATION OF NON-MATCH POSITIONS IN REGIONAL OFFICES
    SECTION 13.3A. Provides that the following positions, eliminated in items 104, 105, 107, 109, and 110 of the Report on the Continuation, Expansion and Capital Budgets are not to be eliminated: (1) 60035967; (2) 60035965; (3) 60035966; (4) 60035968; (5) 60035957; and (6) 60035972. Grants DENR flexibility to select other positions supported by the General Fund, in the same dollar amount, to substitute for elimination.


  • Summary date: Apr 29 2011 - View summary

    House committee substitute makes the following changes to the 2nd edition.
    PART I. INTRODUCTION AND TITLE OF ACT

    This act shall be known as the Current Operations and Capital Improvements Appropriations Act of 2011.

    PART II. CURRENT OPERATIONS AND EXPANSION GENERAL FUND

    CURRENT OPERATIONS AND EXPANSION/GENERAL FUND
    SECTION 2.1. Makes the following appropriations from the General Fund for the fiscal biennium ending June 30, 2013.

    Current Operations – General Fund 2011 2012 2012 2013

    EDUCATION

    Community Colleges System Office $ 991,518,860 $ 991,518,860

    Department of Public Instruction 7,164,492,057 7,188,174,120

    University of North Carolina – Board of Governors
    Appalachian State University 145,517,520 145,634,877
    East Carolina University
    Academic Affairs 245,397,807 245,397,807
    Health Affairs 65,196,439 65,196,439
    Elizabeth City State University 38,046,385 38,218,704
    Fayetteville State University 56,905,587 56,905,587
    NC A&T State University 105,176,407 105,615,356
    NC Central University 94,313,451 94,313,451
    NC State University
    Academic Affairs 433,670,004 433,784,186
    Agricultural Research 59,239,461 59,239,461
    Agricultural Extension 43,539,609 43,539,609
    UNC Asheville 41,957,576 41,957,576
    UNC Chapel Hill
    Academic Affairs 305,534,624 308,896,160
    Health Affairs 219,507,009 222,570,732
    AHEC 49,747,851 49,747,851
    UNC Charlotte 216,403,013 217,419,156
    UNC Greensboro 172,887,958 172,887,958
    UNC Pembroke 61,534,005 62,277,254
    UNC School of the Arts 27,558,488 27,558,488
    UNC Wilmington 105,812,709 107,008,285
    Western Carolina University 90,591,556 91,070,460
    Winston Salem State University 76,496,951 76,496,950
    General Administration 38,186,863 27,628,722
    University Institution Programs (440,030,224) (441,270,898)
    Related Educational Programs 74,207,668 74,660,590
    UNC Financial Aid Private Colleges 94,038,880 94,038,880
    North Carolina School of Science and Mathematics 18,937,535 18,937,535
    UNC Hospitals at Chapel Hill 0 0

    Total University of North Carolina –
    Board of Governors $ 2,440,375,132 $ 2,439,731,176

    HEALTH AND HUMAN SERVICES

    Department of Health and Human Services
    Division of Central Management and Support $ 52,152,812 $ 46,553,422
    Division of Aging and Adult Services 37,019,667 37,019,667
    Division of Services for Blind/Deaf/Hard of Hearing 7,889,110 7,872,886
    Division of Child Development 266,102,933 266,102,933
    Division of Health Service Regulation 16,133,031 16,133,031
    Division of Medical Assistance 2,961,588,184 2,912,276,302
    Division of Mental Health,
    Developmental Disabilities and
    Substance Abuse 665,342,797 710,342,797
    NC Health Choice 79,452,317 83,717,865
    Division of Public Health 157,538,834 157,538,834
    Division of Social Services 185,077,068 185,077,068
    Division of Vocational Rehabilitation 37,125,788 37,528,128
    Total Health and Human Services $ 4,465,422,541 $ 4,460,162,933

    NATURAL AND ECONOMIC RESOURCES

    Department of Agriculture and Consumer Services $ 62,885,947 $ 58,601,764

    Department of Commerce
    Commerce 51,491,819 32,028,510
    Commerce State Aid 28,561,423 21,484,527
    NC Biotechnology Center 17,551,710 17,551,710
    Rural Economic Development Center 20,376,729 20,376,729

    Department of Environment and Natural Resources 163,180,800 147,986,824

    DENR Clean Water Management Trust Fund 10,000,000 10,000,000

    Department of Labor 15,842,931 15,842,931

    Wildlife Resources Commission 18,500,000 17,721,179

    JUSTICE AND PUBLIC SAFETY

    Department of Correction $ 1,340,202,159 $ 1,350,623,300

    Department of Crime Control and Public Safety 222,612,176 219,684,199

    Judicial Department 439,752,763 433,930,299
    Judicial Department – Indigent Defense 109,353,574 108,842,576

    Department of Justice 81,834,747 81,994,872

    Department of Juvenile Justice and Delinquency Prevention 135,862,879 131,409,752

    GENERAL GOVERNMENT

    Department of Administration $ 64,481,019 $ 66,385,149

    Department of State Auditor 11,085,580 9,904,041

    Office of State Controller 27,768,957 27,768,957

    Department of Cultural Resources
    Cultural Resources 61,753,553 61,110,275
    Roanoke Island Commission 1,203,491 0

    State Board of Elections 4,093,594 4,033,594

    General Assembly 47,989,154 46,700,667

    Office of the Governor
    Office of the Governor 5,243,332 5,243,332
    Office of State Budget and Management 5,848,663 5,848,663
    OSBM – Reserve for Special Appropriations 1,940,612 440,612
    Housing Finance Agency 11,702,026 11,702,026

    Department of Insurance
    Insurance 36,393,921 36,393,921
    Insurance – Volunteer Safety Workers' Compensation 2,294,000 2,623,654

    Office of Lieutenant Governor 567,733 567,733

    Office of Administrative Hearings 4,983,871 4,983,871

    Department of Revenue 78,321,271 78,321,271

    Department of Secretary of State 9,219,596 9,219,596

    Department of State Treasurer
    State Treasurer 6,657,031 6,621,750
    State Treasurer –
    Retirement for Fire and Rescue Squad Workers 17,812,114 17,812,114

    RESERVES, ADJUSTMENTS, AND DEBT SERVICE

    Contingency and Emergency Fund $ 5,000,000 $ 5,000,000

    State Retirement System Contribution 297,400,000 404,200,000

    Judicial Retirement System Contribution 7,900,000 9,000,000

    Firemen & Rescue Squad Workers Pension Fund 5,800,000 6,900,000

    National Guard Pension Fund 263,000 523,000

    State Health Plan 11,725,587 109,480,158

    Information Technology Fund 4,458,142 6,158,142

    Reserve for Job Development Investment Grants (JDIG) 20,400,000 27,400,000

    Continuation Review Reserve 0 36,738,931

    Comprehensive Review of Compensation Plans 2,000,000 0

    Severance Expenditure Reserve 75,000,000 0

    Debt Service
    General Debt Service 688,957,188 759,984,974
    Federal Reimbursement 1,616,380 1,616,380

    TOTAL CURRENT OPERATIONS –
    GENERAL FUND $ 19,299,698,062 $ 19,510,349,072

    Capital Improvements – General Fund 2011 2012 2012 2013

    Water Resources Development Projects 4,535,000 0

    TOTAL CAPITAL IMPROVEMENTS – GENERAL FUND 4,535,000 0

    TOTAL ADJUSTMENT $ 19,304,233,062 $ 19,510,349,072

    GENERAL FUND AVAILABILITY STATEMENT
    SECTION 2.2.(a) The General Fund availability used in developing the 2011 13 biennial budget is as follows.
    FY 2011 2012 FY 2012 2013
    Unappropriated Balance Remaining $ 0 $ 120,233,506
    Ending Unreserved Fund Balance for FY 2009 2010 236,902,394 0
    Anticipated Reversions for FY 2010 2011 537,740,799 0
    Anticipated Overcollections from FY 2010 2011 156,300,000 0
    Repayment of Medicaid Receipts in FY 2010 2011 (125,000,000) 0

    Statutory Earmarks:
    Savings Reserve Account (201,485,798) 0
    Repairs and Renovations Reserve Account (201,485,798) 0

    Beginning Unreserved Fund Balance $ 402,971,597 $ 120,233,506

    Revenues Based on Existing Tax Structure $18,129,800,000 $19,181,900,000

    Nontax Revenues
    Investment Income $ 59,400,000 $ 76,700,000
    Judicial Fees 217,800,000 217,800,000
    Disproportionate Share 100,000,000 100,000,000
    Insurance 71,400,000 73,500,000
    Other Nontax Revenues 182,500,000 182,500,000
    Highway Trust Fund/Use Tax Reimbursement Transfer 41,500,000 27,600,000
    Highway Fund Transfer 20,230,000 24,080,000
    Subtotal Nontax Revenues $ 692,830,000 $ 702,180,000

    Total General Fund Availability $19,225,601,597 $20,004,313,506

    Adjustments to Availability: 2011 Session
    Loss of Estate Tax (nonrecurring) $ (57,100,000) $ (72,200,000)
    Reserve for Finance Committee (230,000,000) (405,000,000)

    Repeal Wildlife Resources Sales Tax Earmark 22,970,000 23,920,000
    Suspend Corporate Income Tax Earmark
    (Public School Construction) 72,110,000 74,750,000
    Increase in Judicial Fees 57,319,466 57,319,466
    Transfer from E Commerce Reserve Fund 4,483,526 0
    Divert Funds from Parks & Recreation Trust Fund 8,435,000 0
    Divert Funds from Recreational/
    Natural Heritage Trust Fund 8,000,000 0
    Transfer from Commerce – Enterprise Fund 500,000 0
    Transfer from Highway Fund for State Highway Patrol 193,527,300 190,394,000
    Transfer from Mercury Prevention Pollution Fund 250,000 0
    Divert Funds from Scrap Tire Disposal Account 2,268,989 0
    Divert Funds from White Goods Management Account 1,951,465 0
    Diversion of Golden LEAF Funds 67,563,760 67,563,760
    Tobacco Master Settlement Agreement Funds 16,585,466 16,697,818
    Department of Revenue – Accounts Receivable Program 15,000,000 15,000,000
    Medicaid Disproportionate Share Receipts 15,000,000 15,000,000
    Redirect Dispute Resolution Fees (205,535) (205,535)
    Subtotal Adjustments to
    Availability: 2011 Session $ 198,659,437 $ (16,760,491)

    Revised General Fund Availability $ 19,424,261,034 $ 19,987,347,480

    Less General Fund Appropriations: $ (19,304,233,062) $ (19,510,349,072)

    Unappropriated Balance Remaining $ 120,027,971 $ 476,998,408

    SECTION 2.2.(b) Transfers $41.5 million for 2011-12 and $27.6 million for 2012-13 under GS 105 187.9(b)(1) and GS 105 187.9(b)(2).
    SECTION 2.2.(c) Directs the Secretary of Revenue to transfer the funds specified in GS 115C 546.1(b) to the State Controller for deposit in Nontax Budget Code 19978 (Intrastate Transfers) during the 2011 13 fiscal biennium to offset continued operations of the state's public schools.
    SECTION 2.2.(d) Effective July 1, 2011, transfers the following amounts to the State Controller to be deposited in Nontax Budget Code 19878 (Intrastate Transfers) or the appropriate budget code as determined by the State Controller, to be used to support the General Fund appropriations as specified in this act for the 2011 12 fiscal year.

    Budget Fund
    Code Code Description Amount
    24100 2514 E Commerce Reserve 4,483,526
    54600 5881 Commerce Enterprise Fund 500,000
    24300 2119 Mercury Prevention Pollution Fund 250,000

    SECTION 2.2.(e) Pursuant to Section 2(b) of SL 1999 2, transfers the 50% of the 2011 12 and 2012 13 annual installment payments to the North Carolina State Specific Account that would have been transferred to The Golden L.E.A.F. (Long Term Economic Advancement Foundation), Inc. to the General Fund instead.
    SECTION 2.2.(f) Effective for taxes levied during 2011 12, directs the Secretary of Revenue to credit to the General Fund the net tax proceeds that GS 105 187.19(b) directs the Secretary to credit to the Scrap Tire Disposal Account.
    SECTION 2.2.(g) Effective for taxes levied during 2011 12, directs the Secretary of Revenue to credit to the General Fund the net tax proceeds that GS 105 187.24 directs the Secretary to credit to the White Goods Management Account.
    SECTION 2.2.(h) Effective for taxes levied during 2011 12, directs the Secretary of Revenue to credit $8.435 million to the General Fund of the net tax proceeds that GS 105 228.30(b) directs the Secretary to credit to the Parks and Recreation Trust Fund.
    SECTION 2.2.(i) Effective for taxes levied during 2011 12, directs the Secretary of Revenue to credit $8 million to the General Fund of the net tax proceeds that GS 105 228.30(b) directs the Secretary to credit to the Natural Heritage Trust Fund.
    SECTION 2.2.(j) Of the funds available in the year end 2010 11 fund balance, authorizes the Governor to use up $125 million to repay the federal Centers for Medicare and Medicaid Services for excess Medicaid funds drawn down during the 2009 10 fiscal year. Directs the Governor to report the amount of funds used under this section no later than 30 days after payment to specified entities.

    PART III. CURRENT OPERATIONS/HIGHWAY FUND

    CURRENT OPERATIONS AND EXPANSION/HIGHWAY FUND

    SECTION 3.1. Appropriations from the State Highway Fund for the fiscal biennium ending June 30, 2013, are as follows.

    Current Operations – Highway Fund 2011 2012 2012 2013

    Department of Transportation
    Administration $ 87,555,806 $ 87,555,806

    Division of Highways
    Administration 30,709,626 28,923,392
    Construction 80,401,826 79,508,087
    Maintenance 1,073,293,592 1,145,325,356
    Planning and Research 4,055,402 4,055,402
    OSHA Program 372,792 372,792

    Ferry Operations 31,189,589 38,538,132

    State Aid
    Municipalities 89,373,921 90,187,224
    Public Transportation 93,794,695 93,794,695
    Airports 18,401,413 22,311,031
    Railroads 22,101,153 22,101,153

    Governor's Highway Safety 273,093 273,093
    Division of Motor Vehicles 89,823,520 42,758,451
    Other State Agencies, Reserves, Transfers 286,143,572 296,795,386
    Capital Improvements 15,250,000 15,000,000

    Total $ 1,922,740,000 $ 1,967,500,000

    HIGHWAY FUND AVAILABILITY STATEMENT
    SECTION 3.2. The Highway Fund availability used in developing the 2011 13 fiscal biennial budget is as follows.

    Highway Fund Availability Statement 2011 2012 2012 2013

    Unappropriated Balance from Previous Year $ 0 $ 0
    Beginning Credit Balance 0 0
    Estimate Revenue 1,922,740,000 1,967,500,000

    Total Highway Fund Availability $ 1,922,740,000 $ 1,967,500,000

    Unappropriated Balance $ 0 $ 0

    PART IV. HIGHWAY TRUST FUND APPROPRIATIONS

    Highway Trust Fund Appropriations
    SECTION 4.1. Appropriations from the State Highway Trust Fund for the biennium ending June 30, 2013, are as follows.

    Current Operations – Highway Trust Fund 2011 2012 2012 2013

    Intrastate $ 435,942,824 $ 454,712,566
    Aid to Municipalities 48,605,470 50,602,947
    Secondary Roads 51,155,667 56,820,944
    Program Administration 44,774,400 47,107,200
    Turnpike Authority 99,000,000 99,000,000
    Transfer to General Fund 41,497,276 27,595,861
    Transfer to Highway Fund 400,000 400,000
    Debt Service 79,231,728 81,481,543
    Mobility Fund 272,602,635 213,568,939

    Grand Total Current Operations $ 1,073,210,000 $ 1,031,290,000

    HIGHWAY TRUST FUND AVAILABILITY STATEMENT
    SECTION 4.2. The Highway Trust Fund availability used in developing the 2011 13 fiscal biennial budget is shown below.

    Total Highway Trust Fund Availability $ 1,073,210,000 $ 1,031,290,000

    PART V. OTHER APPROPRIATIONS

    APPROPRIATION OF OTHER FUNDS
    SECTION 5.1.(a) Appropriates and authorizes state funds, as defined in GS 143C 1 1(d)(25), as provided in GS 143C 1 2 for the 2011 13 fiscal biennium, with the adjustments made to the continuation budget as reflected in the Governor's Recommended Budget and Budget Support document, as follows:
    (1) For all budget codes listed in "The State of North Carolina Governor's Recommended Budget, 2011 2013" and in the Budget Support Document, cash balances and receipts are appropriated up to the amounts specified, as adjusted by the General Assembly, for 2011 12 and 2012 13. Funds may be expended only for the programs, purposes, objects, and line items or as otherwise authorized by the General Assembly. Expansion budget funds listed in those documents are appropriated only as otherwise provided in this act.
    (2) Notwithstanding the provisions of subdivision (1) of this subsection:
    a. Any receipts that are required to be used to pay debt service requirements for various outstanding bond issues and certificates of participation are appropriated up to the actual amounts received for 2011 12 and 2012 13, and must be used only to pay debt service requirements.
    b. Other funds, cash balances, and receipts of funds that meet the definition issued by the Governmental Accounting Standards Board of a trust or agency fund are appropriated for and in the amounts required to meet the legal requirements of the trust agreement for 2011-12 and 2012-13.
    SECTION 5.1.(b) Receipts collected in a fiscal year in excess of the amounts authorized by this section willl remain unexpended and unencumbered until appropriated by the General Assembly in a subsequent fiscal year, unless the expenditure of overrealized receipts in the fiscal year in which the receipts were collected is authorized by the State Budget Act. Overrealized receipts are appropriated up to the amounts necessary to implement this subsection.
    SECTION 5.1.(c) Directs the Office of State Budget and Management to report, as specified, to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division within 30 days after the end of each quarter on any overrealized receipts approved for expenditure under this subsection by the Governor.
    SECTION 5.1.(d) Notwithstanding subsections (a) and (b) of this section, appropriates 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.

    OTHER RECEIPTS FROM PENDING GRANT AWARDS
    SECTION 5.2.(a) Authorizes state agencies, with approval of the Governor and after consultation with the Joint Legislative Commission on Governmental Operations, to spend funds received from grants awarded subsequent to the enactment of this act.
    SECTION 5.2.(b) Directs the Office of State Budget and Management to work with the recipient state agencies to budget grant awards according to the annual program needs and within the parameters of the respective granting entities, as detailed. Directs the Office of State Budget and Management to consult with the Joint Legislative Commission on Governmental Operations before expending any funds received from grant awards. Funds received from such grants are hereby appropriated and shall be incorporated into the authorized budget of the recipient state agency.
    SECTION 5.2.(c) Prohibits any state agency from accepting a grant not anticipated in this act if acceptance of the grant would obligate the state to make future expenditures relating to the program receiving the grant or would otherwise result in a financial obligation as a consequence of accepting the grant funds.

    CIVIL FORFEITURE FUNDS
    SECTION 5.3. Appropriations. – Makes the following appropriations from the Civil Penalty and Forfeiture Fund for the fiscal biennium ending June 30, 2013.

    FY 2011 2012 FY 2012 2013
    School Technology Fund $ 18,000,000 $ 18,000,000
    State Public School Fund 120,362,790 120,362,790
    Total Appropriation $ 138,362,790 $ 138,362,790

    EDUCATION LOTTERY
    SECTION 5.4.(a) Transfers $424,973,630 for 2011-12 from the State Lottery Fund to support appropriations made in this act.
    SECTION 5.4.(b) Makes the following appropriations from the Education Lottery Fund for 2011 12.

    Teachers in Early Grades $ 220,643,188
    Prekindergarten Program 63,135,709
    Public School Building Capital Fund 55,238,170
    Scholarships for Needy Children 34,600,000
    UNC Need Based Financial Aid 51,356,563
    Total Appropriation $ 424,973,630

    SECTION 5.4.(c) Prohibits the North Carolina State Lottery Commission from transferring funds to the Education Lottery Reserve Fund for 2011 12 or 2012 13.
    SECTION 5.4.(d) Allocates funds appropriated in this section to the Public School Building Capital Fund for 2011-12 to counties on the basis of average daily membership (ADM). Permits counties to authorize local school administrative units to use funds received from the Public School Building Capital Fund under subsection (f) of this section for one or more of the following purposes only: (1) for school construction projects in accordance with GS 115C 546.2(d); (2) to retire indebtedness incurred on or after January 1, 2003, in accordance with GS 115C 546.2(d), for school construction projects; and (3) for classroom teachers, only upon the request of the local board of education.
    SECTION 5.4.(e) Specifies that the funds appropriated in this section for UNC Need Based Financial Aid will be administered in accordance with the policy adopted by the UNC Board of Governors.
    SECTION 5.4.(f) States that if the actual net lottery revenues for 2011 12 exceed the amounts appropriated in subsection (b) of this section, then the excess net lottery revenues will be allocated for school capital on the basis of average daily membership.

    PART VI. GENERAL PROVISIONS

    CLARIFY CERTIFIED BUDGET
    SECTION 6.1.(a) States that the purpose of this section is to clarify the distinction between changes to the budget enacted by the General Assembly in this act and those made by the Director of the Budget pursuant to other authority.
    SECTION 6.1.(b) Provides that for the 2011 13 fiscal biennium, the certified budget for each state agency must reflect only the total appropriations enacted for each state agency by the General Assembly in this act as modified by this act; therefore, the Director of the Budget must modify the certified budget only to reflect the following actions and only to the extent that they are authorized by this act: the allocation of funds set out in reserves, and government reorganizations. Requires the Director of the Budget to set out all other budget modifications in the authorized budget.

    CONTINGENCY AND EMERGENCY FUND LIMITATION
    SECTION 6.2. Provides that for the 2011 13 fiscal biennium, funds appropriated to the Contingency and Emergency Fund may be used only for expenditures required by a court or Industrial Commission order or to respond to events as authorized under GS 166A 5(1)a.9. of the NC Emergency Management Act of 1977.

    ESTABLISHING OR INCREASING FEES UNDER THIS ACT
    SECTION 6.3. Provides that an agency is not required to consult with the Joint Legislative Commission on Governmental Operations prior to establishing or increasing a fee as authorized or anticipated in this act and that an agency may adopt an emergency rule to establish or increase a fee as authorized by this act in certain circumstances.

    CONSULTATION REQUIRED BEFORE CREATION OF NEW FUNDS
    SECTION 6.4. Requires the Office of State Budget and Management (OSBM) and the Office of the State Controller to consult with the Joint Legislative Commission on Governmental Operations before establishing a new fund as defined in GS 143C 1 3.

    INTERIM APPROPRIATIONS COMMITTEES/MEETINGS/CONSULTATION BY GOVERNOR
    SECTION 6.5. Authorizes the House and Senate Appropriations Committees (the Committees) to meet monthly between legislative sessions to examine and oversee state agencies' execution and administration of the budget and to perform specified tasks. Requires that the Governor consult with the Committees prior to certain events and expenditures.

    JUSTIFICATION/OPERATIONAL REVIEWS
    SECTION 6.6. Requires periodic Justification Reviews for operations of state government and nongovernmental entities receiving state funds. Specifies scope of the reviews. Specifies programs or services that are to be the subject of review in fiscal 2011 12. Requires reporting.

    CONTINUATION REVIEW OF CERTAIN FUNDS/PROGRAMS/DIVISIONS
    SECTION 6.7. States the General Assembly’s intent to periodically and systematically review the funds, agencies, divisions, and programs financed by state government through a Continuation Review Program. Authorizes the Committees to review specified funds, programs, and divisions and requires them to determine whether to continue, reduce, or eliminate funding for them. Requires reporting. Specifies contents of continuation review reports.

    STATE GOVERNMENT REORGANIZATION
    SECTION 6.8. Requires the Joint Legislative Commission on Governmental Operations to study the feasibility of creating a single department to support state departments, agencies, and offices with services, including human resource management, information technology, purchasing, and budget and financial management. Requires reporting.

    UTILIZATION REVIEW/PUBLIC SCHOOL AND PUBLIC HEALTH NURSES
    SECTION 6.9. Requires, beginning July 1, 2011, that the Fiscal Research Division, in consultation with the Department of Public Instruction and the Department of Health and Human Services, review all publicly funded public school nurse positions to determine the most effective and cost efficient ways to provide nursing services. Specifies contents of the review and requires reporting.

    GLOBAL TRANSPARK DEBT/REPORT
    SECTION 6.10. Amends GS 147 69.2(b)(11), as amended, to set the final maturity of funds with respect to assets of the Escheat Fund and obligations of the Trans Park Authority not later than Oct. 1, 2012 (had been 2011). Requires reporting by the Global TransPark Authority.

    HEALTH AND WELLNESS TRUST FUND AND TOBACCO TRUST FUND/FUTURE MSA PAYMENTS
    SECTION 6.11. Effective December 31, 2011, abolishes the Health and Wellness Trust Fund. Rewrites Section 6 of S.L. 1999-2, reallocating funds under the Master Settlement Agreement as follows: 50% to the nonprofit corporation as provided by the Consent Decree; and 50% to debt service authorized by the State Capital Facilities Act of 2004, Part 1 of SL 2004-179 and SL 2004-124, $8 million as credited to Budget Code 69430 to be transferred to the University Cancer Research Fund, and the balance to the state General Fund to be used for specified purposes. Requires the Health and Wellness Trust Fund Commission and the Tobacco Trust Fund Commission to develop a plan to phase out existing programs and staff by December 31. 2011. Provides that any funds remaining in the Health and Wellness Trust Fund and the Tobacco Trust Fund on December 31, 2011, shall revert to the General Fund. Repeals GS Chapter 147 Art. 6C, GS 143 717, 143 719, 143-723, 143C-9-3, and makes various conforming changes.

    COMPENSATION LIMITATIONS FOR GRANTEE ORGANIZATIONS RECEIVING STATE FUNDS
    SECTION 6.12. Provides that any private organization that is a GS 143C 6 23(a)(2) grantee must impose an annual salary cap on full and part time employees paid from state funds in accordance with a specified schedule. Also provides that no state funds may be used to support the costs of any position with an annual salary in excess of $250,000. Salaries capped pursuant to the provisions of Parts X and XIV of this act are exempted. GS 143C 6 23(f) applies to violations.

    CONSOLIDATION OF AIR SERVICES AND CENTRALIZATION OF AIR MANAGEMENT/STATE OWNED PASSENGER AND NON PASSENGER VEHICLES
    SECTION 6.13. Requires the Program Evaluation Division to (1) evaluate the consolidation of air services provided by the Department of Transportation, the State Bureau of Investigation, and the University of North Carolina Passenger Mission and make recommendations; (2) study the formation of an Aviation Management Authority; and (3) study all passenger and non passenger vehicles owned and operated by all state government departments, institutions, and entities. Requires reporting.

    TORNADO ASSISTANCE
    SECTION 6.14. Expresses the General Assembly’s intent to provide state matching funds to help mitigate losses, rebuild infrastructure, and aid citizens and businesses affected by the April 16, 2011, storms.

    STATE OWNED DISPOSABLE ASSETS
    SECTION 6.15. Requires the Department of Administration to take certain action regarding "State owned disposable assets" (defined as state owned land, buildings, and other assets that are unused, underused, or do not involve a core function of government), including developing criteria to be considered prior to the sale; determining whether the highest and best use is being made of the asset; review assets to determine whether an agency has any property that meets the criteria as set forth in this section; and examining current law to determine amendments to allow for the most efficient and effective disposition of assets. Requires reporting.

    PART VI A. INFORMATION TECHNOLOGY
    INFORMATION TECHNOLOGY FUND/AVAILABILITY
    SECTION 6A.1.(a) Specifies that the availability used to support appropriations made in this act from the Information Technology Fund established in GS 147 33.72H is as follows:

    FY 2011 2012 FY 2012 2013

    Appropriation from General Fund $4,458,142 $6,158,142
    Interest $ 100,000 $ 100,000
    IT Fund Balance June 30 $2,454,934 $1,227,467

    Total Funds Available $7,013,076 $7,485,609

    Makes appropriations from the Information Technology Fund for the 2011 13 fiscal biennium as follows:

    FY 2011 2012 FY 2012 2013

    Information Technology Operations
    Center for Geographic Information and Analysis $ 599,347 $ 599,347
    Enterprise Security Risk Management $1,064,148 $1,064,148
    Enterprise Project Management Office $1,673,285 $1,673,285
    Architecture and Engineering $ 648,000 $ 648,000
    Criminal Justice Information Network $ 166,422 $ 166,422
    Statewide IT Procurement $0 $0
    ITS Overhead Reduction ($91,486) ($91,486)
    Subtotal Information Technology Operations $4,059,716 $4,059,716
    Information Technology Projects
    State Portal $0 $0
    IT Consolidation $1,320,893 $ 820,893
    Transfer to OSC for Data Integration $ 100,000 $ 100,000
    Subtotal Information Technology Projects $1,420,893 $ 920,893
    Data Integration License Funding Transfer to State Agencies $ 200,000 $2,400,000
    Position Transfer to Office of State Budget and Management $ 105,000 $ 105,000
    Total $5,785,609 $7,485,609

    SECTION 6A.1.(b) Provides for an annual transfer of data integration funding in the Information Technology Fund to state agencies according to a specified allocation. Provides that any licensing requirements after the 2011 13 fiscal biennium are the responsibility of the participating agency. Requires the State Chief Information Officer to notify affected agencies of this requirement. Requires reporting.
    SECTION 6A.1.(c) Provides that this section is effective when it becomes law.

    INFORMATION TECHNOLOGY OPERATIONS
    SECTION 6A.2.(a) Requires the Office of Information Technology Services (OITS) to develop an annual budget for review and approval by the OSBM that must be included in the Governor's budget recommendations to the General Assembly. Provides that OSBM must ensure that state agencies have an opportunity to adjust their budgets based on any rate changes proposed by the OITS and approved by OSBM. Provides that any uses of the Internal Service Fund not specifically related to the operation of the OITS must be reported immediately.
    SECTION 6A.2.(b) Requires the State Chief Information Officer to consult the respective state agency chief information officer and obtain approval from the OSBM prior to the initiation of any enterprise project or contract. Provides that state agency requirements must be incorporated into any enterprise agreement signed by the State Chief Information Officer and that enterprise projects may not exceed the participating State agencies' ability to financially support the contracts.
    SECTION 6A.2.(c) Prohibits the State Chief Information Officer from entering into any information technology contracts without obtaining written agreements from participating state agencies regarding the apportionment of the contract cost. Establishes requirements for state agencies agreeing to participate in a contract. Requires the State Chief Information Officer to ensure that enterprise project and contract costs are allocated to participating agencies in an equitable manner.
    SECTION 6A.2.(d) Provides that prior to initiation, any information technology project or any segment of a multipart project costing $100,000 must be approved by the General Assembly.
    SECTION 6A.2.(e) Authorizes the OITS to procure information technology goods and services for up to three years where the terms of the procurement contract require payment of all, or a portion, of the contract price at the beginning of the contract agreement. Specifies conditions that must be met before payment for these agreements may be disbursed. Requires the OSBM to ensure the savings from any authorized agreement are included in the Information Technology Internal Service Fund rate calculations before the OSBM annually approves proposed rates. Any savings resulting from the agreements must be returned to agencies included in the contract in the form of reduced rates. Provides that multiyear contracts may not result in rate increases for participating agencies. Requires reporting by the Office of Information Technology Services.
    SECTION 6A.2.(f) Requires state agencies developing and implementing information technology projects to use the state infrastructure to host their projects, subject to an exception. Requires that projects currently hosted outside the state infrastructure be returned to state infrastructure by the end of any current contract. Requires reporting.
    SECTION 6A.2.(g) Requires that service level agreements developed with supported state agencies include metrics for the Office of Information Technology Services and the supported agencies. Provides for action in the event of failure to meet the metrics.
    SECTION 6A.2.(h) Requires the OITS to assist state agencies in identifying the least expensive source and best value for the purchase of IT goods and services and ensure that agencies receive every available discount when making purchases. Requires reporting in certain circumstances.
    SECTION 6A.2.(i) Requires the state CIO to ensure that bills from the OITS are easily understood and transparent. Provides that if a state agency fails to pay its IT Internal Service Fund bills within 30 days of receipt, the OSBM may transfer funds from the agency to cover the cost of the bill.

    COORDINATION OF INFORMATION TECHNOLOGY REQUIREMENTS AND GEOGRAPHIC INFORMATION SYSTEM REQUIREMENTS
    SECTION 6A.3. Requires the State Chief Information Officer (CIO), through the Enterprise Project Management Office, to develop a plan and adopt measures to avoid the duplication of information technology capabilities and resources. Provides that when multiple agencies require the same or substantially similar information technology capability, the CIO must designate one agency as the lead to coordinate support and to manage that capability for all state agencies requiring it, with the CIO maintaining oversight of the effort. Specifies activities that must be undertaken by the Enterprise Project Management Office, including review of ongoing and future technology projects for certain purposes and other activities and requires reporting by that office. Requires that all state agencies must coordinate any Geographic Information System initiatives through the Center for Geographic Information and Analysis (CGIA) to ensure that they are not duplicating an existing function. Requires the CGIA to monitor and approve all new GIS related information technology projects and expansion budget requests. Requires reporting.

    CRIMINAL JUSTICE LAW ENFORCEMENT AUTOMATED DATA SERVICES (CJLEADS)
    SECTION 6A.4. Requires the Office of the State Controller, in cooperation with the State Chief Information Officer (State CIO) to continue the implementation of CJLEADS throughout the state, review plans to transition CJLEADS to the Department of Justice, provide a recommendation on the best alternative for managing and hosting CJLEADS and a time line for transition, and provide quarterly reports on program status. Requires the Office of the State Controller (OSC) to administer CJLEADS with the assistance of a Leadership Council composed of, among others, the Attorney General and AOC Director. Provides that data not classified as a public record under GS 132 1 shall not be considered a public record when incorporated into CJLEADS. Requires that each source agency providing data for CJLEADS is the sole custodian of the data for the purpose of requests for inspection or copies. Provides that CJLEADS may only allow access to data from the source agencies in accordance with rules adopted by those respective agencies. Repeals Section 6.10 of S.L. 2010 31.

    CONTINUING PILOT PROGRAM TO ALLOW PUBLIC PRIVATE PARTNERSHIPS TO MEET DEPARTMENT OF REVENUE TECHNOLOGY NEEDS
    SECTION 6A.5. Authorizes the Secretary of the Department of Revenue (the Secretary) to enter into public private arrangements where the funding of the project under the arrangement comes from project-generated revenue and the project is related to implementation of the Tax Information Management System (TIMS) and additional components of the Planning and Design Project (PDP). Provides that all such arrangements must terminate by June 30, 2015. Work under the arrangement may be contracted by requests for proposals, modifications to existing contracts, and purchases using existing contract vehicles. Requires the Secretary to establish a measurement process to determine the increased revenue attributable to the arrangements; the process must include: (1) Calculation of a revenue baseline against which the increased revenue attributable to the project is measured; (2) Periodic evaluation to determine if the baseline needs to be modified; and (3) Monthly calculation of increased revenue attributable to contracts executed under this program. Of funds generated from collections above the subdivision (1) baseline in both the General Fund, Highway Funds, and the state portion of the Unauthorized Substance Tax collections of the Special Revenue Fund, up to $45.5 million may be authorized by the OSBM for the purchases related to the implementation of TIMS and the additional components of the PDP. Authorizes the Department of Revenue to retain an additional $6,646,557 from benefits generated for the General Fund since the beginning of the public private partnership which must be used as payment of internal costs for the fiscal biennium and appropriates them for that purpose. Specifies that if the Department of Revenue finds that it cannot generate additional benefits totaling $45.5 million through June 30, 2015, or that total costs exceed the total available appropriations and earned benefits, then the Department must: (i) immediately notify the chairs of the House and Senate Appropriations Committees and the Fiscal Research Division, (ii) identify any obligations to vendors, (iii) identify options for meeting obligations to vendors, and (iv) provide costs associated with each option. Notification must be made in time to allow the General Assembly to evaluate the options. Requires the Department of Revenue to engage the services of private counsel with pertinent expertise to review requests for proposals and negotiate and review contracts associated with TIMS and the additional components of the PDP. Establishes an Oversight Committee for reviewing and approving the benefits measurement methodology and calculation process and specifies committee’s responsibilities and composition. Requires reporting by the Department of Revenue. Provides that TIMS shall be subject to existing Information Technology project oversight legislation and that TIMS project management must comply with all statutory requirements and other requirements established by the State CIO and the OSBM for information technology projects. The State CIO and the OSBM must immediately report such lapses. Repeals Section 6.20 of SL 2009 451, as rewritten by Section 2.3 of SL 2010 123.

    INFORMATION TECHNOLOGY PERSONAL SERVICES CONTRACT REQUIREMENTS
    SECTION 6A.6. Effective for the 2011 13 fiscal biennium, sets information technology personal services contract requirements. Requirements include, among other things, that no contract for such services, or providing personnel to perform information technology functions, may be established or renewed without the approval of the Statewide Information Technology Procurement Office and that before any State agency, department, or institution may renew a contract position for information technology personnel, it must report to the Statewide Information Technology Procurement Office, the OSBM, the Office of State Personnel, the Office of Information Technology Services, and the Fiscal Research Division. Provides that whenever a state agency, department, or institution determines that only a contractor can fill a position required to perform an ongoing function, the agency head must develop and implement a plan to hire or train a qualified state employee to fill the position within 12 months. Requires reporting of the plan. Requires monthly reporting by each state agency, department, and institution employing information technology personal services contractors, or contract personnel performing information technology functions. Specifies report contents. Requires each state agency to provide a detailed explanation of any differences between the agency report and the Information Technology Expenditures Report published annually by the OSC. Provides that this section does not apply to UNC and its constituent institutions.

    STATE INFORMATION TECHNOLOGY CONSOLIDATION
    SECTION 6A.7. Requires the State CIO, in conjunction with the OSBM, to develop a plan for consolidating the information technology infrastructure and applications of all state agencies, departments, and institutions in the executive branch. Specifies contents of the consolidation plan. When setting consolidation targets, requires the State CIO to give high priority to infrastructure issues that pose significant risk to agency operations or data that provide opportunities for immediate cost savings, and where a statewide approach would minimize disruption of services. In carrying out the consolidation, the Office of Information Technology Services will use the authority set out in GS 147 33.83. Requires the State CIO to plan and implement an enterprise level grants management system and the Department of Health and Human Services to develop a plan to implement a single case management system. Requires reporting.

    ITS/INTERNAL SERVICE FUND RATE ESTABLISHMENT/CASH MANAGEMENT
    SECTION 6A.8. Provides that for the 2011 13 fiscal biennium, receipts for the Information Technology Internal Service Fund may not exceed $190 million, excluding a 60 day balance for contingencies. Requires that rates established by the OSBM to support the IT Internal Service Fund must be based on this required fund limit and that established rates be adjusted if the fund exceeds the limit. If an increase in receipts for the IT Internal Service Fund is required, authorizes the Office of Information Technology Services to implement the increase after consultation with the Joint Legislative Commission on Governmental Operations. Requires that rates be set to support a specific service for which an agency is being charged. Overhead charges to agencies must be consistently applied and not exceed industry standards, rate increases must be approved by OSBM, and rate reductions must be immediately implemented following notification to the OSBM. Requires reporting by the State CIO.

    INFORMATION TECHNOLOGY PRIVATIZATION
    SECTION 6A.9. Provides that any privatization of any grouping of information technology services, or "towers," identified in the Infrastructure Study and Assessment (INSA) require prior General Assembly approval. Funding to support any outsourcing of any of these towers must be specifically appropriated by the General Assembly. Requires the State CIO to take specified steps before privatizing any major information technology function during the 2011 13 fiscal biennium and to take certain steps after privatizing any major information technology function, including, among other things, reporting.

    STATE PORTAL
    SECTION 6A.10. Authorizes the Department of Administration (Department) to implement and operate a statewide electronic enterprise portal to increase the convenience of members of the public in conducting online transactions with, and obtaining information from, state government and to facilitate their interactions and communications with government agencies. Requires the portal to be hosted on state information technology infrastructure. Requires the Department to provide specified items to the General Assembly prior to implementation of a portal, including, among other things, a detailed plan for development and implementation. Provides that participation in the portal by state agencies is voluntary and that any fees or charges collected for its use or any supporting functions must be collected by the Department and deposited in the General Fund. Requires the portal project to meet all requirements for project management established by the State CIO.

    TRANSFER CRIMINAL JUSTICE INFORMATION NETWORK TO THE OFFICE OF THE STATE CHIEF INFORMATION OFFICER
    SECTION 6A.11. Transfers the Criminal Justice Information Network to the Office of the State CIO and specifies that the transfer shall have all the elements of a Type II transfer, as defined in GS 143A 6. Makes conforming changes to provisions in GS Chapter 143.

    INTEGRATED BUDGET INFORMATION SYSTEM
    SECTION 6A.12. Requires the OSBM to create a detailed, comprehensive plan for the development and implementation of the Integrated Budget Information System (IBIS). Sets a date for plan submission and specifies plan contents. Requires the OSBM to report on the status of IBIS, and specifies report contents. Requires the State CIO to immediately suspend the project if OSBM fails to report. Provides that if OSBM fails to timely submit reports to the Enterprise Project Management Office for inclusion in the project portfolio management tool, the State CIO must immediately suspend the project until the information is completed in the tool.

    COMPREHENSIVE, ENTERPRISE LEVEL DATA INTEGRATION CAPABILITY
    SECTION 6A.13. Requires the Office of the State Controller (OSC) to continue the development of a comprehensive, enterprise level data integration capability, providing broad access to and analysis of information across state government. Requires the OSC to update the BEACON Strategic Plan for Data Integration and report accordingly. Requires the plan to comply with all necessary security measures and restrictions. Requires the OSC to develop, document, and enforce security requirements for data integration initiatives, to include establishing and monitoring security standards for vendors supporting development and implementation efforts. Requires the OSC to develop an enterprise process to detect fraud, waste, and improper payments across state agencies, includes specific requirements, and appropriates $100,000 of the funds appropriated to the Information Technology Fund to support this initiative. Creates a Data Integration Steering Committee with responsibility for providing oversight for all data integration efforts in the state. Provides that the Committee will assume all of the BEACON Project Steering Committee roles and responsibilities for oversight of data integration projects and provides for Committee composition.

    PART VII. PUBLIC SCHOOLS

    EDUCATION REFORM IN NORTH CAROLINA
    SECTION 7.1. Directs the Joint Education Oversight Committee to study specified topics in order to implement the intent of the General Assembly with regard to the education of children of North Carolina. States that it is the intent of the General Assembly that the children of this state (1) are ready to succeed when they begin school, (2) learn the appropriate foundational education in the early grades, (3) are prepared for a career or higher education upon graduation, and (4) have job and learning skills appropriate to the global economy.
    Specifies education-related topics and issues to be studied in three areas: (1) elementary and secondary education, (2) transition from high school, and (3) higher education. In the area of elementary and secondary education, some of the topics to be studied are (1) the relationship of teacher pay and teacher tenure to student performance (2) specific class size ratios and the effectiveness of teacher assistants in kindergarten, (3) reducing the teacher-student ratio to 1:15 in first through third grades, (4) strategies for reducing the dropout rate, and (5) the option of funding one local school administrative unit (LEA) per county. In the area of transition from high school, some of the topics to be studied are (1) ways to reduce the need for remedial or developmental education in the state’s higher education institutions, and (2) the most efficient and effective ways to provide opportunities for high school students to access higher education. In the area of higher education, some of the topics to be studied are (1) ways to increase transparency in spending and revenues in the university system; (2) the performance funding systems of other states including Ohio, Florida, and Washington; and (3) a revised set of accountability measures and performance standards to evaluate and measure student progress and success in the NC Community College System.
    Provides that the funds that are appropriated to implement this section may be used by the committee to hire one or more external consultants to complete the study. Includes reporting requirement.

    FUNDS FOR CHILDREN WITH DISABILITIES
    SECTION 7.2. Requires that the State Board of Education (SBE) allocate funds for children with disabilities on the basis of $3,598.55 per child. Directs that each local school administrative unit (LEA) is to receive funds for children with disabilities based on the lesser number of: (1) all students who are identified as children with disabilities or (2) 12.5% of the 2011-12 allocated average daily membership (ADM) in the LEA. Provides that the dollar amounts allocated under this section for children with disabilities are to adjust in accordance with legislative salary increments, retirement rate adjustments, and health benefit adjustments for personnel who serve children with disabilities.

    FUNDS FOR ACADEMICALLY GIFTED CHILDREN
    SECTION 7.3. Requires that the SBE allocate funds for academically or intellectually gifted children (AG) on the basis of $1,083.52 per child for fiscal year 2011-12 and $1,083.20 per child for fiscal year 2012-13. Provides that an LEA receive funds for a maximum of 4% of its 2009-10 allocated ADM regardless of the number of children identified as AG in an LEA. Provides that the dollar amounts allocated under this section for academically or intellectually gifted children are to adjust in accordance with legislative salary increments, retirement rate adjustments, and health benefit adjustments for personnel who serve academically or intellectually gifted children.

    USE OF SUPPLEMENTAL FUNDING IN LOW-WEALTH COUNTIES
    SECTION 7.4. Provides that counties in which county wealth, as a percentage of state average wealth is less than 100%, are eligible to receive supplemental funding. Makes the following exceptions: (1) penalizes counties expending less than minimum effort in funding, based on a comparison of the effective tax rates in 1996 97 and 1997 98 or thereafter with a reduction in funding under this section and (2) directs the SBE to withhold funds from counties that it determines have used funds to supplant current expenses and make a report to the Joint Legislative Education Oversight Committee (Ed Oversight) before May 1, 2012, identifying those counties. Directs that counties may not use the funds to supplant local current expense funds.
    Specifies acceptable purposes for which funds may be used. Encourages local boards of education (local boards) to use at least 25% of funds to improve the academic performance of students scoring below Level III on the end of grade tests and the grades 4 and 7 writing test. Provides allocation formula for funds based on the difference between state average current expense appropriation per student and current expenses appropriations per student that the county could provide, given county’s wealth and average effort to fund schools. Directs that the funds for the LEAs located in whole or in part in the county be allocated based on the ADM of the county’s students in the LEAs. Provides that if the funds appropriated for supplemental funds are insufficient to fully fund the formula, then each LEA is to receive a pro rata share of the funds appropriated for supplemental funding.
    Requires the Department of Revenue to issue a preliminary report on the assessed value of the property tax base for each county to the Department of Public Instruction (DPI) before March 1 of each year and a final report before May 1 of each year. Specifies that the funding formula in this section is not intended to reflect any commitment by the General Assembly to appropriate additional supplemental funds for low wealth counties and if funds are not adequate to fully fund the formula, funds will be distributed on a pro rata basis. Provides definitions of terms as used in this section.

    LITIGATION RESERVE FUNDS
    SECTION 7.5. Authorizes the SBE to use up to $500,000 each year for the 2011-12 and 2012-13 fiscal years from unexpended funds for certified employees’ salaries to pay expenses related to litigation.

    UNIFORM EDUCATION REPORTING SYSTEM (UERS) FUNDS
    SECTION 7.6. Effective June 30, 2011, prohibits funds appropriated for the Uniform Education Reporting System from reverting at the end of the 2010-11 fiscal year.

    FOCUSED EDUCATION REFORM PROGRAM FUNDS DO NOT REVERT
    SECTION 7.7. Effective June 30, 2011, directs that funds appropriated for the Focused Education Reform Pilot Program that are unexpended and unencumbered at the end of the 2010-11 fiscal year are not to revert but are to remain available for expenditure for that purpose through the 2011-12 fiscal year.

    DISADVANTAGED STUDENT SUPPLEMENTAL FUNDING (DSSF)
    SECTION 7.8. Specifies that the approved uses for Disadvantaged Student Supplemental Fund (DSSF) are restricted to the following: (1) providing instructional positions or instructional support positions and/or professional development; (2) providing intensive in-school and /or after-school remediation; (3) purchasing diagnostic software and progress-monitoring tools; and (4) providing funds for teacher bonuses and supplements. Directs the SBE to set a maximum percentage of the funds that may be used for teacher bonuses and supplements.
    Authorizes the SBE to require LEAs receiving DSSF to purchase the Education Value Added Assessment System for use in analysis of student performance and identifying strategies for improving student achievement. Requires that the DSSF allocation be based on the LEA’s eligible DSSF population (calculated according to DPI formula) and calculations based on the student-to-teacher ratio differential. LEAs that received funds in 2005-06 will not receive a DSSF allocation less than the amount allotted in 2006-07. Provides that if the wealth of an LEA increases to a level that adversely affects the LEA’s DSSF allotment ratio, the DSSF allotment ration for the LEA will be maintained at the prior year level for one additional year.

    TUITION CHARGE FOR GOVERNOR’S SCHOOL
    SECTION 7.9. Amends GS 115C-12(36) to provide that the SBE may implement a tuition charge for students attending the Governor’s School of North Carolina to cover the costs of the School (was, directed the SBE to implement a tuition charge of $500).

    SCHOOL CONNECTIVITY INITIATIVE FUNDS
    SECTION 7.10. Amends Section 7.9(b) of SL 2010-31 to provide that up to $350,000 of the School Connectivity Initiative funds (Initiative Funds) may be used for the 2010-11 fiscal year by the Office of the Governor for education innovation and the education E-learning portal (was, up to $350,000 of Initiative Funds may be used for this and subsequent fiscal years).
    Amends Section 7.6(a) of SL 2008-107, as amended, to provide that up to $300,000 may be transferred annually through June 30, 2011 (was, June 30, 2013) to the Friday Institute at North Carolina State University to evaluate the effectiveness of using technology and its impact on 21st Century Teaching and Learning outcomes approved by the SBE.

    TEXTBOOKS
    SECTION 7.11. Provides that the SBE is not to adopt any new textbooks before July 1, 2013.

    SMALL SCHOOL SYSTEM SUPPLEMENTAL FUNDING
    SECTION 7.12. Provides supplemental funding for each county LEA (1) with an average daily membership (ADM) of fewer than 3,175 students or (2) with a total ADM from 3,175 to 4,000 if the county adjusted property tax base per student is below the state adjusted property tax base per student. Provides that the allocation formula is to: (1) include a base for the consolidated funds allotment of at least $717,360, excluding textbooks, for the 2011-12 fiscal year and a base of $717,360 for the 2012-13 fiscal year and (2) allot vocational education funds for grade 6 as well as for grades 7-12. Provides additional specifications as to the designated uses of the allocation formula. Specifies that the funding formula in this section is not intended to reflect any commitment by the General Assembly to appropriate additional supplemental funds for small school systems and if funds are not adequate to fully fund the formula, funds will be distributed on a pro rata basis. Directs that counties may not use the funds to supplant local current expense funds. Directs the SBE to withhold funds from counties that it determines have used funds to supplant current expenses and make a report to the Joint Legislative Education Oversight Committee (Ed Oversight) before May 1, 2012, identifying those counties.
    Provides that if a unit becomes ineligible for small school supplemental funding under the formula because of (1) an increase in the county’s population where the LEA is located or (2) an increase in the county-adjusted tax rate base per student in the county where the LEA is located, funding for the unit will continue for seven years after the unit becomes ineligible.
    Encourages a local board of education (local board) to use at least 20% of the funds to improve the academic performance of students scoring less than a Level III on the end of grade tests in grades 3-8. Provides definitions of terms as used in this section.

    ELIMINATION OF REPORTING REQUIREMENTS
    SECTION 7.13. Amends GS 115C-47(32a) to delete language that provided that local boards of education were encouraged to incorporate policies and guidelines adopted under subdivision (32a) (to establish alternative learning programs and develop policies and guidelines) in their safe school plans developed under GS 115C-105.47.
    Amends GS 115C-105.27(b)(2) to provide that the strategies for improving student performance included in the school improvement plan must include a plan to address school safety and discipline concerns (was, include a plan to address school safety and discipline concerns in accordance with the safe school plan developed under Article 8C (Local Plans For Alternative Schools/Alternative Learning Programs and Maintaining Safe and Orderly Schools) of GS Chapter 115C.
    Deletes provisions of GS 115C-105.46 providing the responsibilities of the SBE in implementing Article 8C of GS Chapter 115C, except for the provision requiring the SBE to adopt policies that define who is an at-risk student.
    Repeals GS 115C-105.47 (Local safe school plans), GS 115C-102.6C (Approval of local school system technology plans), and GS 115C-102.6D(d) (providing that no local school administrative unit may access technology related funds until the State Board of Education has approved its school technology plan).
    Amends GS 115C-102.7 to delete requirements regarding monitoring local system technology plans and makes conforming changes deleting any reporting and monitoring requirements related to local school system technology plans.
    Repeals Section 7.61(b) of SL 2005-276, as amended (regarding reporting requirements for LEAs to maintain eligibility for funds appropriated for the At Risk/Alternative Schools allotment and the Improving Student Accountability allotment).

    ALLOTMENT OF PRINCIPALS
    SECTION 7.14. Provides that a school with less than 100 students in final ADM is not entitled to 12 months of employment for a principal. Applies only to schools created after July 1, 2011.

    TRANSFER OF FEDERAL AGRICULTURAL EDUCATION FUNDS
    SECTION 7.15. Requires the Agricultural Education Program (Program) in the Department of Agricultural and Extension Education at North Carolina State University (NCSU) to develop the secondary agricultural education curricula. Directs the SBE to adopt the curricula recommended by the Program for inclusion in the Standard Course of Study. Directs the SBE, effective with the 2011 federal grant, to transfer a prorated share of funds from all federal Career and Technical Education funds available for state-level usage to the Agricultural Education and FFA Program housed in the Department of Agricultural and Extension at NCSU. Provides guidelines for calculating the percentage of the funds to be transferred and delineates the uses of the funds.

    PHASEOUT OF ALLOTMENT OF TEACHERS FOR GEOGRAPHICALLY ISOLATED SCHOOLS
    SECTION 7.16. Repeals Section 7.26 of SL 2009-451, providing for the allotment of teachers for geographically isolated schools. Directs the SBE, for the 2011-12 fiscal year, to modify its policy on the allotment of additional classroom teachers to a K-12 school located in an LEA in which the ADM is less than 1.5 per square mile in order to allot four additional teachers to the geographically isolated school.

    SCHOOL CALENDAR PILOT PROGRAM
    SECTION 7.17. Directs the SBE to establish a school calendar pilot program in Stanly County Schools and Wilkes County Schools to determine whether and to what extent an LEA can save money by consolidating the school calendar. Requires the school calendars for 2011-12 to include a minimum of 180 days or 1,000 hours of instruction covering at least nine calendar months. Permits the opening date for students to be before August 25. Allows the local boards in the pilot program to add instructional hours to previously scheduled school days, and provides that the LEA is deemed to have 180 days of instruction and teachers employed for a 10-month term are deemed employed for those days, in such a situation. Instructs the SBE to report to the Joint Legislative Education Oversight Committee by March 15, 2012, on the administration of the pilot program, cost savings realized by it, and its impact on student achievement.

    PERFORMANCE PAY MODEL PROGRAM
    SECTION 7.18. Directs the SBE to establish a performance pay model program. Allows an LEA that is approved by the SBE as a performance pay model LEA to use state funds, except for funds allotted for salaries, to implement a performance pay model.

    BUDGET REDUCTIONS/DEPARTMENT OF PUBLIC INSTRUCTION
    SECTION 7.19. Provides that the Department of Public Instruction (DPI) may, after consulting with the Office of State Budget and Management and the Fiscal Research Division, reorganize if necessary to implement the budget reductions in this act. Requires the consultation to occur prior to DPI requesting budgetary and personnel changes through the budget revision process and directs DPI to provide a current organization chart in the consultation process. Requires DPI to report to the Joint Legislative Commission on Governmental Operations on any reorganization. Prohibits DPI from increasing the number of state-funded positions in any division of DPI identified for reductions in this act.

    LEA BUDGET ADJUSTMENT
    SECTION 7.20. Directs the SBE to notify each LEA and charter school of the amount that the LEA or charter school must reduce from the General Fund appropriations within 14 days of the date that this act becomes law. Provides that the SBE is to determine the amount of the reduction for each LEA and charter school on the basis of ADM. Requires each LEA or charter school to report to DPI on the flexibility budget reductions it has identified for the LEA or charter within 30 days of the date this act becomes law.

    LEA BUDGETARY FLEXIBILITY
    SECTION 7.21. Authorizes the SBE for fiscal years 2011-12 and 2012-13 to extend its emergency rules, in accordance with GS 150B-21.1A, granting maximum flexibility to LEAs regarding the expenditures of state funds. Provides that these rules are not subject to the limitations on transfers of funds between allotment categories set out in GS 115C-105.25. Prohibits the transfer of funds into central office administration.
    Directs LEAs to make every effort to reduce spending for fiscal years 2011-12 and 2012-13 as appropriate but with the goal of protecting direct classroom services. Provides that LEAs are to have the maximum flexibility to use allotted teaching positions to maximize student achievement in grades 4-12. Directs that the allocation of teachers and class size requirements in grades K-3 are to remain unchanged.

    NORTH CAROLINA VIRTUAL PUBLIC SCHOOLS ALLOTMENT FORMULA
    SECTION 7.22. Directs the SBE to implement an allotment formula developed pursuant to Section 7.16(d) of SL 2006-66 for funding e-learning, beginning with the 2011-12 fiscal year. Directs the SBE to utilize only funds provided through the North Carolina Virtual Public School Allotment Formula to fund North Carolina Virtual Public Schools (NCVPS). Specifies steps that DPI is to take to implement the NCVPS Allotment Formula.
    Provides that the NCVPS program is available at no cost to all high school students enrolled in North Carolina’s public schools, Department of Defense schools, and schools that are operated by the Bureau of Indian Affairs. Directs the NCVPS to provide only high school courses and not to provide any courses in physical education. Directs the SBE to establish a separate per student fee structure for out-of-state students, private school students, and home-schooled students. Requires NCVPS to provide specific instructions for enrollment on its website for the 2011-12 school year and to provide, beginning with the 2012-13 school year, an online enrollment process for NCVPS courses.
    Requires the SBE to direct NCVPS to develop and submit to SBE by September 15, 2011, a plan to generate revenue from the sale of courses to out-of-state educational entities. Specifies responsibilities of the Director of NCVPS. Caps the funds for administration of NCVPS at a maximum of 15% per year of the funds transferred to NCVPS.

    PERFORMANCE-BASED REDUCTIONS IN FORCE
    SECTION 7.23. Directs the SBE to adopt a Reduction in Force policy that is consistent across all LEAs. Delineates the criteria under the policy which is to apply to LEAs conducting any reductions in force. Requires the SBE to have the policy in place on or before July 15, 2011. Amends GS 115C-325(e)(2) (reduction in force) to delete provision that gave priority to career employees for all positions in which they had career status and for which they were qualified for three consecutive years following their dismissal as a result of a reduction in force.

    TEACHING FELLOWS ADMINISTRATIVE REDUCTION
    SECTION 7.24. Amends GS 115C-363.23A(f) to direct that all funds appropriated or otherwise received by the Teaching Fellows Program, including funds received as repayment of scholarship loans and the interest earned on these funds, are to be placed in a revolving fund to be used for scholarship loans under the Teaching Fellows Program. Provides that the revolving fund may also be used for campus and summer program support, and costs related to disbursement of awards and collection of loan repayments with the prior approval of the General Assembly in the Current Operations Appropriations Act. Provides that the administrator for the Teaching Fellows Program, the Public School Forum, may use up to $600,000 (was, $800,000) for administrative costs associated with the Teaching Fellows Program.

    RESIDENTIAL SCHOOLS
    SECTION 7.25. Directs DPI not to close the following residential schools despite any other provisions of this act: (1) the Governor Morehead School for the Blind, (2) the Eastern North Carolina School for the Deaf and (3) the North Carolina School for the Deaf. Also prohibits consolidating the operations of any of the residential schools on the campus of another residential school until an enactment of the General Assembly instructs DPI to do so. Directs DPI to ensure that residential and instructional schedules for the residential schools in effect prior to February 8, 2010, remain in effect unless the General Assembly approves a material change to the instructional week. Provides additional directives to DPI regarding the programs at the residential schools. Provides that DPI may create a principal position at each residential school not currently assigned a principal. Eliminates the position of superintendent within DPI for the residential schools. Directs DPI to designate one of the directors of the residential schools to serve as the superintendent for the residential schools. Allots $20,000 of funds previously appropriated to DPI for the superintendent position to be used to supplement the salary of the director who also serves as superintendent of residential schools. Provides that the remaining funds are to be used to offset other reductions to the residential schools made in this act.

    SIXTY-FIVE PERCENT OF SCHOOL FUNDING MUST BE USED FOR CLASSROOM INSTRUCTION
    SECTION 7.26. Adds new GS 115C-408.1 to Article 30 of GS Chapter 115C to provide that it is the duty of the SBE to ensure that each LEA spends at least 65% of the state funding that it receives for the operations of the public schools on classroom instruction. Directs the SBE to modify its rules regarding the expenditure of state funds, modify its allotment formulas, and transfer funds as necessary to achieve this outcome. Applies to expenditures for school years beginning with the 2012-13 school year.

    PART VIII. COMMUNITY COLLEGES
    REORGANIZATION OF THE COMMUNITY COLLEGES SYSTEM OFFICE
    SECTION 8.1. Provides that consistent with the authority granted to the President of the North Carolina Community College System in GS 115D-3, the President may reorganize the System Office in accordance with recommendations and plans that have been submitted to the State Board of Community Colleges and approved by that Board. Expires June 30, 2012.

    REPEAL OBSOLETE REPORTING REQUIREMENTS
    SECTION 8.2. Amends GS 115D-4.1(e), deleting the requirement that the State Board of Community Colleges (SBCC) make an annual report to the General Assembly on the compliance of the community colleges with criteria and standards regulating the operation of college transfer programs. Also amends GS 115D-5(j), deleting the requirement that the SBCC report on expenditures from the SBCC Reserve Fund bi-annually to the Joint Legislative Education Oversight Committee (Ed Oversight).

    IMPLEMENT ALTERNATIVE FORMULA MODEL
    SECTION 8.3. Directs the SBCC to consolidate the Health Sciences Allotment, the technical Education Allotment, and the Special High Cost Allotment for Heavy Equipment with formula funds to support curriculum instruction. Provides criteria to be used in allocating formula funds appropriated to support curriculum instruction and the occupational education component of continuing education. Provides criteria for an instructional base allocation of funds to all colleges and allocation of the remaining funds on a weighted full-time equivalent (FTE) basis.

    USE OF OVERREALIZED RECEIPTS TO SUPPORT ENROLLMENT GROWTH RESERVE RATHER THAN EQUIPMENT RESERVE RATHER THAN EQUIPMENT RESERVE
    SECTION 8.4. Amends GS 115D-31(e) to provide for the transfer of receipts for community college tuition and fees that are in excess of the amount certified in the General Fund Codes at the end of the fiscal year to the Enrollment Growth Reserve (was, Equipment Reserve Fund). Provides that the funds in the Enrollment Growth Reserve do not revert and remain available to the SBCC until they are expended. Authorizes the SBCC to allocate the reserve funds to colleges that have an enrollment increase greater than 5% of budgeted enrollment levels.

    BASIC SKILLS PLUS
    SECTION 8.5. Allows the SBCC to authorize community colleges to use 20% of the State Literacy Funds to provide employability skills, job-specific occupational and technical skills, and developmental education instruction to students who are also enrolled in a community college course leading to a high school diploma or equivalent certificate and to allow colleges to waive the tuition and registration fees associated with this instruction.

    CARRYFORWARD OF COLLEGE INFORMATION SYSTEM FUNDS
    SECTION 8.6. Provides that up to $1.25 million of the funds appropriated to the Community Colleges System Office for the College Information System for the 2011-13 biennium does not revert at the end of each fiscal year but remains available for use only to purchase periodic system upgrades until the funds are expended.

    STATE BOARD AUTHORITY TO ESTABLISH GED TESTING FEES
    SECTION 8.7 Amends GS 115D-5(s) to authorize the SBCC to establish retain and budget fees for taking the GED, including fees for retesting (was, authorized the SBCC to retain and budget fees charged to students taking the GED).

    EQUIPMENT FUNDING
    SECTION 8.8. Permits community colleges to expend regular equipment allocations on equipment, repairs and renovation of existing facilities, and new construction for the 2011-13 fiscal biennium. Requires colleges to match funds spent on new construction on an equal matching-fund basis in accordance with GS 115D-31. Colleges are not required to provide matching funds for repairs and renovations of existing facilities. Directs colleges to have capital improvement projects approved by the SBCC and to identify any required matching funds by June 30, 2013. Directs the SBCC to allocate $250,000 of the funds appropriated to the Community Colleges System Office for equipment for 2011-12 to Forsyth Technical Community College. Limits use of the funds to building and equipping the Stokes County multi-campus site and prohibits considering these funds for a management flexibility reduction.

    CLARIFICATION REGARDING EQUIPMENT TITLED TO STATE BOARD
    SECTION 8.9. Amends GS 115D-15(a) to authorize the transfer of personal property titled to the SBCC consistent with GS 115D-14 and GS 115D-58.3 to another community college at no cost and without the approval of the Department of Administration, Division of Surplus Property.

    NO STATE FUNDS FOR INTERCOLLEGIATE ATHLETICS
    SECTION 8.10 Amends Article 3 of GS Chapter 115D adding new GS 115D-42.1 to provide as this section title indicates.

    MANAGEMENT FLEXIBILITY REDUCTION/ COMMUNITY COLLEGES
    SECTION 8.11. Provides guidelines for the allocation of the management flexibility reduction for the NC Community College System. Directs the community colleges to consider reducing budgets for senior and middle management personnel and for programs with both low enrollment and low postgraduate success before making deductions to instructional budgets. Directs colleges to minimize the impact on student support services and on the training of dislocated workers. Prohibits any reduction in funds allocated to Rowan-Cabarrus Community College for the Biotechnology Training Center at the North Carolina Research Campus..

    COMMUNITY COLLEGE TUITION WAIVERS
    SECTION 8.12. Amends GS 115D-5(b), which under current law allows the SBCC to provide general and uniform regulations for the waiver of tuition and registration fees for specified categories or groups of persons, and certain courses. Makes change to provide that waivers of tuition and registration fees apply to courses that have been requested for the training of specified public safety personnel (was, waivers apply to training courses for specified public safety personnel). Deletes waiver of tuition and registration fees for: (1) clients of sheltered workshops; (2) clients of adult developmental activity programs; (3) students in Health and Human Services Development programs; (4) juveniles of any age committed to the Department of Juvenile Justice and Delinquency Prevention by a court of competent jurisdiction; (5) members of the NC State Defense Militia as defined in GS 127A-5; (6) prison inmates; and (7) patients in state alcoholic rehabilitation centers. Directs the SBCC not to waive tuition and registration fees for other individuals. Amends GS 115D-5 to prohibit waivers of tuition and registration fees for community college faculty or staff members. Permits community colleges to use state or local funds to pay tuition and registration fees for one course per semester for full-time community college faculty or staff employed for a term of nine to twelve months. Directs the Community Colleges System Office to transfer funds appropriated for curriculum and continuing education instruction to the Department of Correction (DOC) for use by the DOC to pay tuition and fees for prisoners. Provides criteria for calculating the amount to be transferred to DOC and projects a 43% reduction in the number of curriculum and continuing education courses provided to prisoners. Makes technical and organizational changes.

    FUNDING FOR MULTICAMPUS CENTERS
    SECTION 8.13 Amends GS 115D-5(o) to require that all multi-campus centers approved by the SBCC receive funding under the same formula.

    STUDY COMMUNITY COLLEGE PERFORMANCE MEASURES
    SECTION 8.14. Directs the SBCC to report by March 1, 2012 to Ed Oversight on a revised set of accountability measures and performance standards for evaluating and measuring student success. Requires that the report include a plan to incorporate the revised accountability measures into regular formula funding. Provides that the revised measures and standards are also to be the basis for the allocation of performance funding under GS 115D-31.3(g) and (h).

    COMMUNITY COLLEGE AUDITS
    SECTION 8.15. Adds new GS 115D-58.16 to Article 4A of GS Chapter 115D to require that each community college be audited at minimum once every two years. Allows community colleges to use state funds to contract with the State Auditor or with a certified public accountant to perform the audits. Directs the colleges to submit the results of the audits to the SBCC. Additionally provides that in spite of the provisions of GS Chapter 143D, a community college is not subject to the EAGLE program administered by the Office of the State Controller unless (1) there is a finding of internal control problems in the most recent financial audit of the college, or (2) the SBCC determines that a college should be subject to the program.

    ENROLLMENT GROWTH
    SECTION 8.16. Requires that the continuation budget requirements proposed by the Governor to fund the community college enrollment growth include adjustments necessary to fund additional technology and equipment full time equivalent at the previous year’s rate. Directs the SBCC’s requests for funding enrollment growth to provide a detailed description of the costs of educating community college students beginning with any adjustments to the 2011-12 budget and annually from then on. Specifies the information that must be included for each community college in the enrollment requests.

    LIMITATION ON COMMUNITY COLLEGE TUITION
    SECTION 8.17. Prohibits community colleges’ tuition for curriculum courses and fees for continuing education courses for the 2011-13 fiscal biennium from exceeding the amounts provided for in this act.

    PART IX. UNIVERSITIES

    CENTER FOR PUBLIC TELEVISION CONTINUATION REVIEW
    SECTION 9.1. Directs the University of North Carolina General Administration (General Administration) and the University of North Carolina Center for Public Television to jointly prepare a continuation review of the Center for Public Television to be submitted to the House of Representatives and Senate Appropriations Subcommittees on Education no later than March 31, 2012. Delineates all the information required to be in the report.

    DOCUMENTATION AND ACCOUNTABILITY FOR ENROLLMENT GROWTH FUNDING MODEL
    SECTION 9.2. Directs the General Administration to modify the existing student credit hour enrollment (SCH) change funding model. Provides some criteria for making modifications. Directs the General Administration to submit its revisions to Ed Oversight, the Office of State Budget and Management (OSBM), and the Fiscal Research Division by February 1, 2012. Encourages Ed Oversight to fully examine the revised model and to ensure that the model aligns with the modifications listed in this section.
    Directs the UNC Board of Governors (Board) with the assistance of the General Administration to develop written policies for enrollment change funding decisions. Provides that the written policies are to address (1) procedures for developing campus enrollment projections, calculating tuition offset, and calculating funding formula elements and cost factors, and (2) criteria for granting hold harmless status. Requires that the policies and procedures be made available to UNC System constituent institutions, the OSBM, and the Fiscal Research Division by February 15, 2012.
    Enacts new subdivision (9a) to GS 116-11 to require the Board to submit a report annually by March 15 to Ed Oversight on the accuracy of enrollment growth projection at each campus and establishing key performance indicators meaningful to enrollment growth planning. Also requires that that report be published on the Board’s web site and printed copies be made available upon request. Directs the Board to make a report as required by new subdivision (9a) by March 15, 2012. Lists information that the report must contain.
    Amends GS 116-11(9) to provide that enrollment change funding is to be based on the performance of each constituent institution and contingent on the institution’s target as determined by the Board. Withholds enrollment change funding from a constituent institution that fails to achieve the target. Directs the Board to provide full documentation and justification of any enrollment change funding request at the time it is recommended including hold harmless status requests, and to include an explanation of how the hold harmless status request meets established criteria and the history of hold harmless requests that have been granted to the institution.

    FISCAL ACCOUNTABILITY AND FLEXIBILITY
    SECTION 9.3. Prohibits, notwithstanding GS 116-30.2, a special responsibility constituent institution from increasing the state appropriation for any program or line item reduced by this act.

    UNIVERSITY CANCER RESEARCH FUND REPORTING REQUIREMENT
    SECTION 9.4. Amends GS 116-29.1 to require the Cancer Research Fund Committee to provide an annual financial report containing specified components to Ed Oversight and the OSBM by November 1 of each year.

    UNC BOARD OF GOVERNORS REVIEW OF FACULTY RECRUITMENT AND RETENTION
    SECTION 9.5. As the Section title indicates. Requires the Board to submit its findings and recommendations resulting from its review to Ed Oversight, the OSBM, and the Fiscal Research Division by April 1, 2012.

    UNC MANAGEMENT FLEXIBILITY REDUCTION
    SECTION 9.6. Directs the Board to refrain from use of an across-the-board method in allocating the management flexibility reduction for the University of North Carolina (UNC) but to instead act in a manner that recognizes the importance of the academic mission and differences among the UNC entities. Requires the Board to consider all of the following before taking reductions in instructional budgets:
    (1) Reducing state funding for centers and institutes, speaker series, and other nonacademic activities.
    (2) Faculty workload adjustments.
    (3) Restructuring of research activities.
    (4) Implementing cost saving span of control measures.
    (5) Reducing the number of senior and middle management positions.
    (6) Eliminating low performing, redundant, or low enrollment programs.
    Directs the Board and the constituent institutions to also review institutional trust funds and special funds held by or on behalf of UNC and its constituent institutions for possible available monies to assist with operating costs. Also directs the campuses of the constituent institutions to require their faculty to have a teaching workload equal to the national average in their Carnegie classification. Directs the Board and the campuses to make every effort to abolish vacant positions first when implementing personnel reductions.
    Prohibits making reductions to funding for any of the following:
    (1) Hickory Metro Higher Education Center.
    (2) Need Based Financial Aid.
    (3) Aid to Private Colleges.
    (4) Joint Graduate School of Nanoscience and Nanoengineering at North Carolina Agricultural and Technical State University and the University of North Carolina at Greensboro.
    (5) The North Carolina Research Campus.
    Provides that in allocating the management flexibility reduction, state funds for agricultural research stations operated by UNC cannot be reduced in either fiscal year of the biennium by more than 10% from the Governor’s Recommended Continuation Budget for the 2011-13 fiscal biennium.

    CAMPUS-INITIATED TUITION INCREASES
    SECTION 9.7. Prohibits the approval or implementation by the Board of any campus-initiated tuition increase for the 2011-12 or 2012-13 academic years except as otherwise provided by this section. Permits any campus-initiated increases for the 2011-12 academic year that were approved by the Board in February 2011 to be implemented for the 2011-12 academic year.

    USE OF ESCHEAT FUND FOR NEED-BASED FINANCIAL AID PROGRAMS
    SECTION 9.8. Appropriates $32,122,242 for 2011-12 and $32,122,242 for 2012-13 from the Escheat Fund income to the UNC Board of Governors to be used for the UNC Need-Based Financial Aid Program. In addition to the aforementioned appropriation, also appropriates $95,231,912 for 2011-12 from the Escheat Fund income to the UNC Board of Governors to be used for the UNC Need-Based Financial Aid Program.
    Appropriates $16.5 million for 2011-12 and $16.5 million for 2012-13 from the Escheat Fund income to the State Board of Community Colleges to be used for community college grants.
    Appropriates $6,520,964 for 2011-12 and $6,520,964 for 2012-13 from the Escheat Fund income to the Department of Administration, Division of Veterans Affairs to be used for need-based student financial aid.
    Assigns the State Educational Assistance Authority (SEAA) to perform all the administrative functions necessary to implement this program of financial aid. Provides that these appropriated funds are to be allocated by SEAA for need-based financial aid in accordance with GS 116B-7. Provides that if the interest income generated from the Escheat Fund is insufficient to cover the appropriations in this section, then the difference may be taken from the Escheat principal to reach the appropriation amounts provided in this section; however, restricts reducing the Escheat Fund principal below the amount required in GS 116B-6(f). Provides for the return to the Escheat Fund of any uncommitted need-based financial aid as of the end of a fiscal year but only to the extent that the funds are more than the amount of the Escheat Fund income for that fiscal year.
    Directs the SEAA to conduct periodic evaluations of the expenditures of the scholarship programs and authorizes SEAA to make recommendations for redistribution of funds to UNC, the Department of Administration, and the President of the Community College System regarding their respective scholarship programs. Directs the OSBM to transfer the cash balance of the community college grant program remaining in Budget Code 66801, Fund 6102 to the Escheat Fund.

    UNC NEED-BASED FINANCIAL AID PROGRAM FUNDING SCHEDULE
    SECTION 9.9. Directs that $89 million of the funds appropriated in this act for 2011-12 for the UNC Need-Based Financial Aid Program, are not to be used for expenditures in 2011-12 but are to be carried forward and held in reserve by the SEAA, not to be disbursed until after July 1, 2012, for need-based student financial aid in the 2012-13 academic year in accordance with GS 116B-7.
    Directs that $89 million of the funds appropriated in this act for the 2012-13 fiscal year for the UNC Need-Based Financial Aid Program, are not to be used for expenditures in the 2012-13 fiscal year but are to be carried forward and held in reserve by the SEAA, not to be disbursed until after July 1, 2013, for need-based student financial aid in the 2013-14 academic year in accordance with GS 116B-7.

    CONSOLIDATE ASSETS OF MILLENNIUM TEACHING SCHOLARSHIP LOAN PROGRAM AND PROSPECTIVE TEACHERS SCHOLARSHIP LOAN FUND
    SECTION 9.10. Abolishes the Millennium Teaching Scholarship Loan Program (Program), effective January 1, 2012. Provides that all financial obligations to any student receiving a scholarship loan from the Program before January 1, 2012 will be fulfilled with funds from the Scholarship Loan Fund for Prospective Teachers established under GS 116-209.33, if the student remains eligible under the provisions of the Program. Provides that all contractual agreements between a student who received a Program loan before January 1, 2012 and the SEAA regarding the loan remain enforceable. Directs the assets and liabilities for the Program to be transferred as follows:
    (1) $500,000 is to be transferred to the Escheat Fund on July 1, 2011.
    (2) The remaining balance of the assets and liabilities is to be transferred to the Scholarship Loan Fund for Prospective Teachers established under GS 116 209.33 on January 1, 2012.

    LIMIT CERTAIN FINANCIAL AID GRANTS TO THE TRADITIONAL TIME PERIOD REQUIRED TO EARN A BACCALAUREATE DEGREE
    SECTION 9.11. Prohibits a student from receiving a grant from the UNC Need-Based Financial Aid Program for more than nine full-time academic semesters or the equivalent if the student is enrolled part-time, unless the student is enrolled in a program officially designated by the Board as a five-year degree program, in which case the student may not receive the grant for more than 11 full-time academic semesters. Provides for the extension of an additional semester upon application and a student’s showing of extraordinary hardship. Amends GS 116-21.3(d) to provide similar prohibitions regarding a legislative tuition grant received under GS 116-21.2(a) and amends GS 116-43.5(f) to impose similar limits on state grants. Effective for the 2012-13 academic year and each subsequent fiscal year.
    Directs the Fiscal Research in cooperation with UNC, the NC Community College System (CCS), the NC Independent Colleges and Universities, Inc., and the SEAA to track and document the receipt of the need-based grants, legislative tuition grants, and state grants by students who enroll in both public and private institutions of higher education and receive a combination of these grants that exceeds a cumulative total of nine full-time academic semesters or 11 full-time academic semesters as appropriate. Provides additional topics and issues to be covered by the study and requires that the Fiscal Research Division report its findings and recommendations by March 1, 2012 to Ed Oversight and the Education Appropriation Subcommittees of the House of Representatives and the Senate.

    ACADEMIC COMMON MARKET
    SECTION 9.12. Prohibits the Board from participating in the Academic Common Market (ACM) for the purpose of accepting new students for the 2012-13 academic year, and prohibits enrolling any new students through the ACM program into the UNC graduate programs for the 2012-13 academic year. Provides that this section does not affect a student who enrolled in UNC System under the ACM prior to the 2012-13 academic year, and permits that student to continue to pay in-state tuition as long as that student is enrolled in that graduate program.

    ELIMINATE CERTAIN UNC TUITION WAIVERS FOR NONRESIDENT STUDENTS
    SECTION 9.13. As the title indicates. Repeals GS 116-143.6 (regarding in-state residency status for full scholarship students attending constituent institutions) and GS 116-143.5 (eligibility for in-state tuition of certain teachers). Amends GS 116-143(c) to prohibit the practice of giving tuition and fee waivers, especially reduced rates (was, prohibited tuition and fee waivers except as expressly authorized by statute or the Board). Abolishes the Prospective Teacher Scholars program begun as a pilot program under Section 9.9 of SL 2002-126.

    ELIMINATE PRIVATE MEDICAL SCHOOL AID
    SECTION 9.14. As the title indicates. Repeals GS 116-21.6.

    TRANSFER NORTH CAROLINA ARBORETUM RESPONSIBILITIES TO WESTERN NORTH CAROLINA
    SECTION 9.15. Amends GS 116-242 as the title indicates. Provides that state funds for the administration of the North Carolina Arboretum are to be appropriated to the University of North Carolina for Western Carolina University to administer on behalf of the Arboretum. Amends GS 116-243 to make changes in the appointments to the Board of Directors of the Arboretum and membership terms. Provides for two appointees by the President of UNC and increases the number of appointments by the Board from six to eight. Provides a schedule for the appointment of the new members. Also eliminates some member positions. Amends GS 116-244 to make changes to the duties and responsibilities of the Board of Directors of the Arboretum.

    SPECIAL RESPONSIBILITY CONSTITUENT INSTITUTION AUDITS
    SECTION 9.16. Adds new GS 116-30.8 to Article 1 of GS Chapter 116 to require that each special responsibility constituent institution be audited annually. Allows the Chancellor of the special responsibility constituent institution to use state funds to contract with the State Auditor or with a certified public accountant to perform the audit. Requires that the audit be provided to the Chancellor and Board of Trustees of the special responsibility institution, the UNC Board of Governors, and the State Auditor. Requires that the audit also be included in the State’s Comprehensive Annual Financial Report (CAFR). Directs the Board to ensure that all special responsibility constituent institutions are audited in accordance with this section.

    PART X. DEPARTMENT OF HEALTH AND HUMAN SERVICES

    CHILD CARE SUBSIDY RATES
    SECTION 10.1.(a). Provides that the maximum gross income for eligibility for subsidized child care services is 75% of the state median income, adjusted for family size.
    SECTION 10.1.(b). Creates formula for determining the amounts of fees for families who are required to share in the cost of care, based on gross income and adjusted for family size.
    SECTION 10.1.(c). Sets forth requirements for the purchase of child care services for low-income children. Sets maximum rates that may be charged to families by child care facilities participating in the subsidized child care program. Prohibits payments for transportation services or registration fees. Limits payments for subsidized child care services for postsecondary education to a maximum of 20 months of enrollment. Directs Department of Health and Human Services (DHHS) to make necessary rule changes to restructure services, including targeting benefits to employment.
    SECTION 10.1.(d). Provides for payment rates for center-based and home-based child care providers in counties that do not have at least 50 children in each age group.
    SECTION 10.1.(e). Requires a market rate to be calculated for child care centers and homes at each rated license level for each county and for each age group of enrollees. Directs the Division of Child Development to calculate a statewide rate and regional market rates for each license level and age category.
    SECTION 10.1.(f). Provides that facilities licensed and operated pursuant to specified provisions in GS Chapter 110 may participate in the child care subsidy program. Prohibits the use of separate licensing requirements in the selection of facilities for participation. Requires facilities to meet any additional applicable requirements of federal law or regulations. Requires facilities that are exempt from regulation under GS Chapter 110, Article 7, to meet requirements established by other state law and the Social Services Commission. Prohibits county departments of social services or other local contracting agencies from reducing a provider’s subsidized child care rate because of the provider’s failure to comply with requirements additional to those provided in this subsection.
    SECTION 10.1.(g). Requires payment for subsidized child care services provided with Work First Block Grant funds to comply with regulations and policies issued by the Division of Child Development.
    SECTION 10.1.(h). Provides that noncitizen families residing in the state legally are eligible for child care subsidies if other eligibility criteria are met. Makes noncitizen families residing in the state illegally ineligible for subsidies unless the child for whom the subsidy is sought: (1) is receiving child protective services or foster care services, (2) is developmentally delayed or at risk of becoming developmentally delayed, or (3) is a United States citizen.

    CHILD CARE ALLOCATION FORMULA
    SECTION 10.2. Establishes formula for DHHS to use in allocating child care subsidy voucher funds to counties, using the mandatory 30% Smart Start subsidy allocation as the base amount and taking into account the projected cost of serving all eligible children under age 11. Provides that no county’s allocation may be less than 90% of its FY 2001-02 allocation. Permits DHHS to reallocate unused subsidy voucher funds to meet the child care needs of low-income families. Requires DHHS to allocate up to $20 million in federal block grant funds and state funds appropriated for fiscal years 2011-12 and 2012-13 for child care services, in order to prevent termination of services. Allows DHHS to use funds appropriated for specific purposes, including targeted market rate adjustments made in the past, separately from the allocation formula established by this section.

    CHILD CARE FUNDS MATCHING REQUIREMENT
    SECTION 10.3. Prohibits DHHS from requiring local matching funds as a condition of receiving an initial allocation of child care funds, unless federal law requires a match. However, if DHHS reallocates additional funds in excess of $25,000, local purchasing agencies must provide a 20% local match. Matching requirements shall not apply when funds are allocated because of a disaster as defined in GS 166A-4(1).

    CHILD CARE REVOLVING LOAN
    SECTION 10.4. Provides that funds budgeted for the Child Care Revolving Loan Fund may be transferred to and invested by the financial institution contracted to operate the fund. Permits the fund’s principal and income to be used to make loans, reduce loan interest or provide collateral for borrowers, pay the contractor’s cost of operating the fund, or pay DHHS’s cost of administering the program.

    EARLY CHILDHOOD EDUCATION AND DEVELOPMENT INITIATIVE ENHANCEMENTS
    SECTION 10.5.(a). Limits average statewide administrative costs for local partnerships to no more than 8% of the total allocation to all local partnerships. Defines administrative costs. Directs the North Carolina Partnership for Children, Inc. (Partnership) to develop a single statewide contract management system and requires local partnerships to participate in the system. Further directs the Partnership to direct local partnerships to collaborate with each other to increase efficiency and effectiveness.
    SECTION 10.5.(b). Repeals GS 143B-168.12(a)(5), which requires the Partnership to develop, and local partnerships to participate in, a regional accounting and contract management system.
    SECTION 10.5.(c). Sets the maximum amount of state funds that may be used for the salary of any individual employee at $80,000 for an employee paid by the Partnership and $60,000 for an employee paid by a local partnership. Provides that non-state funds may be used to supplement salaries.
    SECTION 10.5.(d). Requires the Partnership and all local partnerships to use competitive bidding practices in contracting for goods or services. Specifies the practices that must be used for different contract amounts.
    SECTION 10.5.(e). Requires the Partnership and all local partnerships in the aggregate to match 100% of the total amount budgeted for the program in each fiscal year. Specifies that at least 10% of the match must be cash and a maximum of 3% may be in-kind donated resources. Allows funds carried forward by the Partnership to be included in the match amount. Allows certain expenses incurred by entities that contract with the Partnership or a local partnership to be included in the match amount. Provides that failure to obtain a 13% match by June 30 of each fiscal year will result in a dollar-for-dollar reduction in the appropriation for the program for a subsequent fiscal year.
    SECTION 10.5.(f). Requires DHHS to continue to implement the performance-based evaluation system.
    SECTION 10.5.(g). Requires DHHS and the Partnership to ensure that allocations of funds for Early Childhood Education and Development Initiatives are administered and distributed in a manner that prohibits the use of funds for capital expenditures or advertising and promotional activities.
    SECTION 10.5.(h). Permits a county to use the county’s allocation of state and federal child care funds to subsidize child care according to the county’s approved Early Childhood Education and Development Initiatives Plan.
    SECTION 10.5.(i). Requires local partnerships to spend an amount for child care subsidies that provides at least $52 million for the TANF maintenance of effort requirement and the Child Care Development Fund and Block Grant match requirement.
    SECTION 10.5.(j). Prohibits local partnerships from using state funds on marketing campaigns, advertising, or associated materials. Permits the use of private funds for those activities.
    SECTION 10.5.(k). Requires the Partnership and its Board to establish policies focused on the Partnership’s mission of improving child care quality. Specifies that Partnership-funded activities must include assisting child care facilities with improving quality and implementing prekindergarten programs. Requires state funding for local partnerships to be used for evidence-based or evidence-informed programs that increase children’s literacy, increase parents’ ability to raise healthy successful children, improve children’s health, or assist four- and five-star facilities in improving and maintaining quality.
    SECTION 10.5.(l). States that it is the intent of the General Assembly that the Partnership implement an evidence-based pilot literacy program with specified goals and an annual evaluation.
    SECTION 10.5.(m). Authorizes the Legislative Research Commission to study the Partnership’s activities to increase early literacy, improve families’ abilities to raise healthy productive children, and increase access to preventive health care for children from birth to age five. Directs the Commission to evaluate and report on specified matters.
    SECTION 10.5.(n). Requires the Legislative Research Commission to report findings and recommendations by October 1, 2012.

    ADMINISTRATIVE ALLOWANCE FOR COUNTY DEPARTMENTS OF SOCIAL SERVICES
    SECTION 10.6. Directs the Division of Child Development to fund the allowance that county departments for social services may use for administrative costs at an amount equal to 4% of the county’s total child care subsidy funds allocated in the Child Care Development Fund Block Grant plan.

    CONSOLIDATE MORE AT FOUR PROGRAM INTO DIVISION OF CHILD DEVELOPMENT
    SECTION 10.7.(a). Transfers More at Four program from the Department of Public Instruction to DHHS’s Division of Child Development, which is renamed the Division of Child Development and Early Education (DCDEE). Provides that all funds transferred must be used for prekindergarten slots for four-year-olds and for management of the program. Requires DHHS to incorporate eight consultant positions into DCDEE’s regulation and accounting sections and eliminate the remaining positions. Funds from the eliminated positions must be used to fund prekindergarten students.
    SECTION 10.7.(b). Directs Childcare Commission to adopt rules for prekindergarten programmatic standards, and to approve and add to the existing More at Four curricula new comprehensive, evidence-based early childhood curricula with a reading component.
    SECTION 10.7.(c). Increases membership of the Childcare Commission from 15 to 17 members, by adding two early childhood education specialists appointed by the General Assembly.
    SECTION 10.7.(d). Requires additional curricula approved and taught in prekindergarten classrooms to also be taught in four- and five-star rated child care facilities’ non-prekindergarten four-year-old classrooms. Requires Childcare Commission to increase standards in four- and five-star rated facilities to place an emphasis on early reading and to require those facilities to teach from the Commission’s approved curricula.
    SECTION 10.7.(e). Directs DCDEE to adopt a policy to encourage prekindergarten classrooms to blend private pay families with prekindergarten subsidized children. A waiver or transition period is permitted for public classrooms.
    SECTION 10.7.(f). Allows the prekindergarten program to continue to serve at-risk children identified through existing “child find” methods and regardless of income, up to 20% of the four-year-olds served.
    SECTION 10.7.(g). Directs DCDEE to adopt policies that improve the quality of child care for children who receive subsidies. Prohibits subsidy funds for one- or two-star rated facilities, but with an allowance for exemptions in nonstar-rated programs, such as religious programs.
    SECTION 10.7.(h). Directs DCDEE to implement a parent co-payment for pre-kindergarten programs that matches the co-payment requirements for parents of children receiving regular child care subsidies.
    SECTION 10.7.(i). Requires all prekindergarten classrooms to participate in the Subsidized Early Education for Kids (SEEK) accounting system.
    SECTION 10.7.(j). Requires DCDEE to establish reimbursement rates based on the newly increased requirements for four- and five-star-rated facilities and the higher More at Four teacher standards for prekindergarten classrooms. Requires prekindergarten curriculum day to cover between 6.5 and 10 hours daily and no less than 10 months per year. Provides a one-year transition period for public classrooms to become licensed through DCDEE.

    MENTAL HEALTH CHANGES
    SECTION 10.8.(a). Directs the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services (DMHDDSAS) to adjust the timing and method by which service dollars are distributed to non-single-stream local management entities (LMEs) in order to mitigate cash flow problems at the beginning of each fiscal year.
    SECTION 10.8.(b). Allocates $29.1 million of the funds appropriated to DMHDDSAS for each fiscal year of the biennium for the purchase of local inpatient psychiatric beds or bed days. Provides that LMEs shall manage and control the beds, but funds will be held by DMHDDSAS in a statewide reserve to which LMEs and community hospitals may remit claims. Requires DHHS to develop reporting requirements for LMEs regarding the use of beds or bed days. Funds appropriated by this section may not be used to supplant other available funds.
    SECTION 10.8.(c). Allocates $5.7 million of the funds appropriated to DMHDDSAS to LMEs for the support of 30 mobile crisis teams.
    SECTION 10.8.(d). Authorizes DHHS to create a midyear process for reallocating state service dollars away from LMEs that do not appear to be on track to spend their full appropriation.

    MH/DD/SAS HEALTH CARE INFORMATION SYSTEM PROJECT
    SECTION 10.9. Permits DHHS to use an unspecified portion of its appropriation for the biennium to develop and implement a health care information system for state institutions operated by DMHDDSAS.

    LME FUNDS FOR SUBSTANCE ABUSE SERVICES
    SECTION 10.10. Encourages LMEs to use a portion of funds appropriated for substance abuse treatment services for prevention and education. Authorizes an LME to use up to 1% of funds allocated to it for substance abuse services to provide nominal incentives for consumers who achieve treatment benchmarks. Directs LMEs to consult with Treatment Accountability for Safer Communities (TASC) to improve offender access to substance abuse treatment. Directs DHHS to allocate up to $300,000 to TASC before funds are allocated to LMEs. Requires LMEs, in providing drug treatment court services, to consult with the local drug treatment court team and select a treatment provider that meets the court’s needs, and allows a single treatment provider to be chosen for non-Medicaid-eligible participants only.

    MH/DD/SAS COMMUNITY SERVICE FUNDS
    SECTION 10.11.(a). Directs DMHDDSAS to reduce the Community Service Fund by $20 million.
    SECTION 10.11.(b). Requires DMHDDSAS, in consultation with LME representatives and stakeholders, to develop a set of standardized covered benefits, which will become the only services paid for by community service funds through LMEs.
    SECTION 10.11.(c). Requires DMHDDSAS to implement a copayment for all services based on Medicaid co-payment rates, effective January 1, 2012.
    SECTION 10.11.(d). Directs DMHDDSAS to reduce the Community Service Fund by $25 million for the 2011-12 fiscal year, and to allocate the reduction among LMEs based on unreserved, undesignated fund balance totals as of June 30, 2010.
    SECTION 10.11.(e). Directs LMEs to spend their unreserved, undesignated fund balances on services. Requires LMEs to submit quarterly reports to DMHDDSAS to ensure expenditures occur at the level required.
    SECTION 10.11.(f). Requires DHHS to report on its implementation of this section to the House and Senate appropriations subcommittees by December 12, 2011.

    CONSOLIDATION OF FORENSIC HEALTH CARE AT DOROTHEA DIX COMPLEX
    SECTION 10.12. Directs DHHS’s Division of State Operated Facilities to issue a request for proposals to consolidate forensic hospital care. The Secretary of Health and Human Services must compare DHHS’s cost to provide forensic care to the proposals received and determine whether it is cost-effective to contract for the service. Includes reporting requirement.

    TRANSITION OF UTILIZATION MANAGEMENT OF COMMUNITY-BASED SERVICES TO LOCAL MANAGEMENT ENTITIES
    SECTION 10.13. Requires DHHS to collaborate with LMEs to enhance the LMEs’ administrative capacity to assume utilization management responsibilities for the provision of community-based services.

    THIRD-PARTY BILLING FOR STATE FACILITIES
    SECTION 10.14. Amends GS 122C-55 to authorize a facility subject to the confidentiality provisions of GS Chapter 122C to disclose confidential information for the purpose of collecting payment for services provided by the facility.

    COLLABORATION AMONG DEPARTMENTS OF ADMINISTRATION, HEALTH AND HUMAN SERVICES, JUVENILE JUSTICE AND DELINQUENCY PREVENTION, AND PUBLIC INSTRUCTION ON SCHOOL-BASED CHILD AND FAMILY TEAM INITIATIVE
    SECTION 10.15. Subsection (a) establishes the School-Based Child and Family Team Initiative (Initiative) to identify and coordinate community services and supports for children at risk of school failure or out-of-home placement. Directs departments named in section title, the Administrative Office of the Courts, and other state agencies that provide services for children to collaborate in the Initiative. Subsection (b) establishes the North Carolina Child and Family Leadership Council (Council) to advise the Governor in the development of the Initiative and to ensure the active participation and collaboration in the Initiative by state and local agencies that provide services to children in the participating counties. Subsection (a) requires the local board of education, in coordination with the Council, to establish the Initiative at designated schools and appoint a school nurse and a school social worker as Child and Family Team Leaders (Leaders). Each LME that has any selected schools in its catchment area must appoint a Care Coordinator (Coordinator), and any department of social services with a selected school in its catchment area must appoint a Child and Family Teams Facilitator (Facilitator). Directs Coordinators and Facilitators to provide training to school-based personnel. Directs Leaders to identify and screen children at risk of academic failure or out-of-home placement. Specifies responsibilities for local agencies or officials involved in the Initiative. Requires the superintendent of the local LEA in each county with a participating school to either identify an existing cross-agency collaborative or form a new group to serve as a local advisory committee to work with the Initiative. Specifies the public officials who must serve on the collaborative or group. Subsections (c) through (f) direct the heads of the affected state agencies to ensure that their agencies collaborate in the development and implementation of the Initiative, and provide all required support to ensure it is successful.

    DHHS POSITION ELIMINATIONS
    SECTION 10.16. Directs the Secretary of Health and Human Services to eliminate 250 full-time equivalent positions that have been continuously vacant since July 1, 2010, to achieve a savings of $6.5 million. If the elimination of the vacant positions does not achieve the savings goal, the Secretary may eliminate other positions or achieve the savings through other administrative or operational reductions or efficiencies. Includes reporting requirement.

    DHHS REGULATORY FUNCTIONS STUDY AND PLAN
    SECTION 10.17. Directs DHHS to examine all regulatory functions performed by each of its divisions and report to the House and Senate Appropriations Committees on Health and Human Services and the Fiscal Research Division by January 30, 2012. Specifies the contents of the report. Requires DHHS to develop a plan to consolidate regulatory functions.

    REDUCE FUNDING FOR NONPROFIT ORGANIZATIONS
    SECTION 10.18. Requires DHHS to reduce funds allocated to nonprofit organizations by $5 million on a recurring basis. Reductions in funds for the provision of direct services must be minimized, and reductions in funds allocated to nonprofit organizations to pay for direct services for individuals with developmental disabilities are prohibited.

    PROHIBIT USE OF ALL FUNDS FOR PLANNED PARENTHOOD ORGANIZATIONS
    SECTION 10.19. Prohibits DHHS from providing state funds or other funds it administers for contracts or grants to Planned Parenthood, Inc., and affiliated organizations.

    LIABILITY INSURANCE
    SECTION 10.20. Authorizes the Secretaries of DHHS, the Department of Environment and Natural Resources, and the Department of Correction to provide medical liability coverage of up to $1 million per incident on behalf of: (1) their employees who are licensed to practice medicine or dentistry; (2) licensed physicians who are faculty members of the University of North Carolina working on contract with DMHDDSAS, for incidents that occur in DMHDDSAS programs; and (3) physicians in residency training programs from the University of North Carolina who are training at DHHS institutions. Provides that the coverage shall not extend to sexual, fraudulent, criminal, or malicious acts, or acts amounting to willful or wanton negligence.

    CHANGES TO COMMUNITY-FOCUSED ELIMINATING HEALTH DISPARITIES INITIATIVE
    SECTION 10.21. Provides that funds appropriated to DHHS for the Community-Focused Eliminating Health Disparities Initiative shall be used to provide grants-in-aid to local public health departments to close the gap in health status of minority populations. Provides that the grants-in-aid are awarded to honor the memory of recently deceased members of the General Assembly. Requires annual reports to the House and Senate Appropriations Committees on Health and Human Services and the Fiscal Research Division.

    FUNDS FOR SCHOOL NURSES
    SECTION 10.22. Requires that all funds appropriated in this act for the School Nurse Funding Initiative must be used to supplement and not supplant other sources of funds for school nurses. Provides that the appropriated funds shall not be used to fund nurses for state agencies. Distributes funds to local health departments according to a formula. Directs the Division of Public Health (DPH) to ensure that school nurses funded with state funds perform specified duties for school health programs, but do not assist in instructional or administrative duties associated with a school’s curriculum.

    REPLACEMENT OF RECEIPTS FOR CHILD DEVELOPMENT SERVICE AGENCIES
    SECTION 10.23. Provides that receipts earned by Child Development Service Agencies (CDSAs) from third-party payers shall be budgeted on a recurring basis to replace reductions in state appropriations to CDSAs.

    HEALTH INFORMATION TECHNOLOGY
    SECTION 10.24. Directs DHHS, in cooperation with the State Chief Information Officer, to coordinate health information technology (HIT) policies and programs within the state. Specifies goals for HIT, including the security and protection of patient health information, improving health care quality, improving health care coordination, improving public health services, promoting early detection and management of chronic diseases, and facilitating research. Directs DHHS to establish and direct a HIT management structure with specified responsibilities. Requires written quarterly reports on the status of HIT efforts, beginning October 1, 2011.

    FUNDS FOR STROKE PREVENTION
    SECTION 10.25. Allocates $400,000 in nonrecurring funds for each year of the biennium to DPH’s Heart Disease and Stroke Prevention Branch, for continuation of community education campaigns. Allocates $50,000 in nonrecurring funds for each year of the biennium to DPH’s Stroke Advisory Council.

    AIDS DRUG ASSISTANCE PROGRAM
    SECTION 10.26. Requires DHHS to work with the Department of Correction (DOC) to use DOC funds to purchase HIV/AIDS medications for DOC inmates in a manner that allows the funds to serve as part of the state match for federal Ryan White funds.

    NC HEALTH CHOICE MEDICAL POLICY
    SECTION 10.27. Prohibits DHHS from changing medical policy affecting the amount, sufficiency, duration, and scope of NC Health Choice services and providers until the Division of Medical Assistance (DMA) has prepared a 5-year fiscal analysis documenting the increased cost of the proposed change and submitted it for departmental review (unless the changed policy is required by federal law). Provides a procedure for pre-implementation review and approval of proposed policy changes with a fiscal impact exceeding $1 million in a given year.

    COMMUNITY CARE OF NORTH CAROLINA
    SECTION 10.28. Requires DHHS to arrange for annual independent reports on the Medicaid cost savings achieved by the Community Care of North Carolina (CCNC) networks. Directs DHHS and DMA to enter into a contract with North Carolina Community Care Networks, Inc. (NCCCN) and each of 14 participating CCNC networks, requiring NCCCN to provide standardized clinical and budgetary coordination, oversight, and reporting for a statewide case Enhanced Primary Care Case Management System for Medicaid enrollees. Requires NCCCN to report quarterly to DHHS and the Office of State Budget and Management (OSBM) on the development of the system. Requires DHHS and OSBM to assess the performance of NCCCN and CCNC by January 1, 2012, and based on the assessment, expand, cancel, or alter the contract. By July 1, 2012, DHHS, DMA and NCCCN must finalize a comprehensive plan that establishes management methodologies meeting specified criteria.

    MEDICAID MANAGEMENT INFORMATION SYSTEM (MMIS) FUNDS/IMPLEMENTATION OF MMIS
    SECTION 10.29. Authorizes the Secretary of DHHS to use prior year earned revenue for the new Medicaid Management Information System (MMIS). The amounts that may be used are $3.2 million for fiscal year 2011-12 and $12 million for fiscal year 2012-13. If DHHS does not receive prior year earned revenues in those amounts, it may, with the approval of OSBM, use other overrealized receipts and appropriated funds. Requires DHHS to make full development of MMIS a top priority and to develop plans to ensure certain capabilities. Authorizes DHHS to engage private counsel with information technology and computer law expertise to review requests for proposals and negotiate contracts. Requires DHHS to develop schedules for development and implementation of MMIS and to make quarterly reports on changes in its functionality and costs. Reports must include any changes to MMIS vendor contracts and provide detailed explanations for any cost increases.

    NORTH CAROLINA FAMILIES ACCESSING SERVICES THROUGH TECHNOLOGY (NC FAST) FUNDS
    SECTION 10.30. Allocates $9.59 million in nonrecurring funds for each fiscal year of the biennium to support the NC FAST project. Further directs DHHS to use $8.77 million of prior year earned revenues for the project. If DHHS does not receive prior year earned revenues in that amount, it may use other overrealized receipts and appropriated funds, provided DHHS receives prior approval from OSBM, the Office of Information Technology Services, and specified federal agencies. Appropriated funds must be used to expedite the development and implementation of the Global Case Management and Food and Nutrition Services and the Eligibility Information System components of NC FAST.

    MEDICAID
    SECTION 10.31.(a) Use of Funds, Allocation of Costs, Other Authorizations.
    Specifies that (1) funds appropriated in this act for Medicaid services are for both the categorically needy and the medically needy; (2) the state pays 100% of the nonfederal costs of all applicable services listed in this section and 100% of the federal Medicare Part D clawback payments under the Medicare Modernization Act of 2004; and (3) DHHS, Division of Medical Assistance, may use funds that are identified to support the cost of development and acquisition of equipment and software and related operational costs through contractual means to improve and enhance information systems that provide management information and claims processing. Requires that DHHS identify adequate funds to support the implementation and first year's operational costs that exceed funds allocated for the new contract for the fiscal agent for the Medicaid Management Information System. Specifies that all required reports by DHHS to the General Assembly be submitted to the House of Representatives Appropriations Subcommittee for Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division of the Legislative Services Office, unless otherwise provided.
    SECTION 10.31.(b) Policy.
    Authorizes DHHS, Division of Medical Assistance, to (1) contract for services, medical equipment, supplies, and appliances by implementation of volume purchase plans, single source procurement, or other contracting processes in order to improve cost containment, subject to the approval of a change in the State Medicaid Plan and (2) undertake cost containment programs, including contracting for services, preadmissions to hospitals, and prior approval for certain outpatient surgeries before they may be performed in an inpatient setting. Requires DHHS, Division of Medical Assistance, to provide incentives to counties that successfully recover fraudulently spent Medicaid funds by sharing state savings with counties responsible for the recovery of the fraudulently spent funds. Prohibits DHHS from changing medical policy affecting the amount, sufficiency, duration, and scope of health care services and who may provide services until the Division of Medical Assistance has prepared a five year fiscal analysis documenting the increased cost of the proposed change in medical policy and submitted it for DHHS review. If the fiscal impact indicated by the fiscal analysis for any proposed medical policy change exceeds $3 million in total requirements for a given fiscal year, then DHHS must submit the proposed medical policy change with the fiscal analysis to the OSBM and the Fiscal Research Division. Prohibits DHHS from implementing any proposed medical policy change exceeding $3 million in total requirements for a given fiscal year unless the source of state funding is identified and approved by the OSBM. For medical policy changes exceeding $3 million in total requirements for a given fiscal year that are required for compliance with federal law, DHHS must submit the proposed medical policy or policy interpretation change with the five year fiscal analysis to the OSBM prior to implementing the change. Requires DHHS to provide the OSBM and the Fiscal Research Division a quarterly report itemizing all medical policy changes with total requirements of less than $3 million. Sets requirements for posting of changes on the DHHS website pursuant to federal law. Requires Medicaid providers to submit claims electronically except where non-electronic claims are in the best interest of DHHS.
    SECTION 10.31.(c) Eligibility.
    Establishes the maximum family annual income eligibility standards for Medicaid and Work First Family Assistance and the Standard of Need for Work First Family Assistance.
    Requires that for specified Medicaid eligibility classifications for which the federal poverty guidelines are used as income limits for eligibility determinations, the income limits will be updated each April 1 immediately following publication of federal poverty guidelines. Requires DHHS, Division of Medical Assistance, to provide Medicaid coverage to specified classifications of people meeting specified federal poverty guidelines.
    Requires DHHS, Division of Medical Assistance, to provide Medicaid coverage to adoptive children with special or rehabilitative needs regardless of the adoptive family's income.
    Requires DHHS, Division of Medical Assistance, to provide Medicaid coverage to "independent foster care adolescents," ages 18, 19, and 20, as defined in section 1905(w)(1) of the Social Security Act [42 U.S.C. § 1396d(w)(1)], without regard to the adolescent's assets, resources, or income levels.
    Allows DHHS to provide an incentive allowance to Medicaid eligible recipients of ICF and ICF/MR services, who are regularly engaged in work activities as part of their developmental plan, and for whom retention of additional income contributes to their achievement of independence. Specifies monthly allowances based on monthly net wages. The state funds required to match the federal funds that are required by these allowances shall be provided from savings within the Medicaid budget or from other unbudgeted funds available to DHHS.
    Requires DHHS, Division of Medical Assistance, to provide Medicaid coverage to women who need treatment for breast or cervical cancer and who are defined in 42 U.S.C. § 1396a.(a)(10)(A)(ii)(XVIII).
    SECTION 10.31.(d) Services and Payment Bases.
    Requires DHHS to spend funds appropriated for Medicaid services in accordance with a specified schedule of services and payment bases. Unless otherwise provided, services and payment bases will be as prescribed in the State Plan as established by DHHS and may be changed with the approval of the Governor. Designates the following as mandatory services: (1) hospital inpatient; (2) hospital outpatient; (3) nursing facilities; (4) physicians, certified nurse midwife services, physician assistants, and nurse practitioners; (5) EPSDT screens; (6) home health and related services, and durable medical equipment; (7) rural health clinical services; (8) family planning; (9) independent laboratory and X ray services; (10) Medicare buy-in; (11) ambulance services; (12) Medicare crossover claims; (13) pregnancy related services; and (14) specified mental health services for children. Lists optional services.
    Reimbursements must be available for prescription drugs as allowed by federal regulations plus a professional services fee per month, excluding refills for the same drug or generic equivalent during the same month. Payment of the professional services fee shall be made in accordance with the State Plan adopted by DHHS, consistent with federal reimbursement regulations. DHHS shall establish the professional services fee and may pay an enhanced fee for pharmacy services. DHHS may establish authorizations, limitations, and reviews for specific drugs, drug classes, brands, or quantities in order to manage effectively the Medicaid pharmacy program. DHHS may impose prior authorization requirements on brand name medications for which the phrase “medically necessary” is written on the prescription.
    Specifies that notwithstanding GS 90 85.27 through GS 90 85.31, or any other law to the contrary, under the Medical Assistance Program and except as otherwise provided in this subsection for drugs listed in the narrow therapeutic index, a prescription order for a drug designated by a trade or brand name shall be considered to be an order for the drug by its established or generic name, except when the prescriber has determined, at the time the drug is prescribed, that the brand name drug is medically necessary and has written on the prescription order the phrase "medically necessary." An initial prescription order for a drug listed in the narrow therapeutic drug index that does not contain the phrase "medically necessary" shall be considered an order for the drug by its established or generic name, except that a pharmacy shall not substitute a generic or established name prescription drug for subsequent brand or trade name prescription orders of the same prescription drug without explicit oral or written approval of the prescriber given at the time the order is filled. Generic drugs shall be dispensed at a lower cost to the Medical Assistance Program rather than trade or brand name drugs. As used in this subsection, brand name means the proprietary name the manufacturer places upon a drug product or on its container, label, or wrapping at the time of packaging; and established name has the same meaning as in Section 502(e)(3) of the Federal Food, Drug, and Cosmetic Act, as amended, 21 U.S.C. § 352(e)(3).
    Requires DHHS to work with specialty drug providers, manufacturers, Medicaid recipients, and medical professionals to develop ways to prevent overutilization of specialty drugs. Requires DHHS to lock Medicaid enrollees into a single pharmacy and provider when the Medicaid enrollee’s utilization of selected controlled substance medications meets the lock-in criteria of the NC Physicians Advisory Group. Requires DHHS to establish and implement a preferred drug list program that receives ongoing review of the Physicians Advisory Group. DHHS must enter into a multistate purchasing pool, negotiate directly with manufacturers or labelers, and contract with a pharmacy benefit manager for negotiated discounts and rebates. DHHS must establish a Preferred Drug List (PDL) Policy Review Panel to review Medicaid PDL recommendations from DHHS, Division of Medical Assistance. Sets forth the composition of DHHS appointees to the review panel. DHHS may established a PDL for the North Carolina Health Choice for Children program and pursue negotiated discounts or rebates for all prescription drugs under the program.
    Limits Medicaid coverage of mental health services to (1) services established by the Division of Medical Assistance in consultation with the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services and approved by the Centers for Medicare and Medicaid Services (CMS) when provided in agencies meeting the requirements and reimbursement is made in accordance with the State Plan; (2) services provided by professionals specified in the act; and (3) services rendered by qualified providers in accordance with approved state policies and the State Plan.
    Prohibits Medicaid reimbursement for Never Events and Hospital Acquired Conditions.
    Notwithstanding GS 150B 21.1(a), DHHS may adopt temporary rules in accordance with GS Chapter 150B of the General Statutes further defining the qualifications of providers and referral procedures in order to implement this subsection.
    SECTION 10.31.(e) Provider Performance Bonds and Visits.
    Authorizes DHHS to require Medicaid enrolled providers to purchase a performance bond in an amount not to exceed $100,000 naming as beneficiary DHHS, Division of Medical Assistance, or provide to DHHS a validly executed letter of credit or other financial instrument issued by a financial institution or agency honoring a demand for payment in an equivalent amount. DHHS may require the purchase of a performance bond or the submission of an executed letter of credit or financial instrument as a condition of initial enrollment, reenrollment, or reinstatement if the provider fails to demonstrate financial viability, DHHS determines there is significant potential for fraud and abuse, or DHHS otherwise finds it is in the best interest of the Medicaid program to do so.
    Authorizes DHHS to waive or limit these requirements for individual Medicaid enrolled providers or for one or more classes of Medicaid enrolled provider. If DHHS waives or limits the requirements, it must take into consideration the potential fiscal impact of the waiver or limitation on the State Medicaid Program. DHHS must provide to the affected provider written notice of the findings upon which its action is based and shall include the performance bond requirements and the conditions under which a waiver or limitation apply. DHHS may adopt temporary rules in accordance with GS 150B 21.1 as necessary to implement this provision.
    Authorizes reimbursement for up to 30 visits per recipient per fiscal year for the following professional services: physicians, nurse practitioners, nurse midwives, physician assistants, clinics, health departments, optometrists, chiropractors, and podiatrists. Requires DHHS to (1) adopt medical policies in accordance with GS 108A 54.2 to distribute the allowable number of visits for each service or each group of services consistent with federal law, (2) establish a threshold of some number of visits for these services, and (3) ensure that primary care providers or the appropriate CCNC network are notified when a patient is nearing the established threshold to facilitate care coordination and intervention as needed.
    Exempts prenatal services, all EPSDT children, emergency room visits, and mental health visits subject to independent utilization review from the visit limitations contained in this subsection. Authorizes DHHS to authorize exceptions when additional care is medically necessary, subject to appropriate medical review. Specifies that routine or maintenance visits above the established visit limit will not be covered unless necessary to actively manage a life-threatening disorder or as an alternative to more costly care options.
    SECTION 10.31.(f) Exceptions and Limitations on Services; Authorization of Co-Payments and Other Services.
    Authorizes DHHS to waive service limitations, eligibility requirements, and payment bases in this section, with the approval of the Governor, to allow DHHS to carry out pilot programs for prepaid health plans, contracting for services, managed care plans, or community based services programs in accordance with plans approved by the United States Department of Health and Human Services or when DHHS determines that such a waiver will result in a reduction in the total Medicaid costs for the recipient.
    DHHS must charge a provider enrollment fee and may establish patient co payments up to the maximum permitted by federal law and regulation.
    SECTION 10.31.(g) Rules, Reports, and Other Matters.
    Authorizes DHHS to adopt temporary or emergency rules according to the procedures established in GS 150B 21.1 and GS 150B 21.1A when it finds that these rules are necessary to maximize receipt of federal funds within existing state appropriations, to reduce Medicaid expenditures, and to reduce fraud and abuse. Requires DHHS to adopt rules requiring providers to attend training as a condition of enrollment and may adopt temporary or emergency rules to implement the training requirement.
    Requires DHHS to consult with OSBM on the possible fiscal impact of the temporary or emergency rule and its effect on state appropriations and local governments before filing the temporary or emergency rules authorized under this subsection with the Rules Review Commission and the Office of Administrative Hearings.

    DMA CONTRACT SHORTFALL
    SECTION 10.32. Requires DHHS, Division of Medical Assistance, to receive budget approval by the OSBM before entering into any new contract or renewing or amending an existing contract that exceeds the current contract amounts. Directs the Division of Medical Assistance to create savings within its operational budget and use those savings to offset its contract shortfall. Authorizes DHHS to use funds appropriated in this act to cover the contract shortfall in the Division of Medical Assistance if insufficient funds exist within the Division.

    MEDICAID COST CONTAINMENT ACTIVITIES
    SECTION 10.33. Authorizes DHHS to use up to $5 million in Medicaid services funds in 2011 12 and 2012 13 to support the cost of administrative activities when cost effectiveness and savings are demonstrated. Specifies some of the activities that may be considered Medicaid cost-containment activities. Funds may be expended under this section only after the OSBM has approved a proposal for the expenditure submitted by DHHS. Proposals for expenditure of funds must include the cost of implementing the cost-containment activity and documentation of the amount of savings expected to be realized from the cost-containment activity. Requires DHHS to report annually on cost containment activity expenditures to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division.

    MEDICAID SPECIAL FUND TRANSFER
    SECTION 10.34. Of the funds transferred to DHHS for Medicaid programs pursuant to GS 143C 9 1, the act appropriates from the Medicaid Special Fund to DHHS $43 million for 2011 12 and $43 million for 2012 13. These funds must be allocated for Medicaid programs as prescribed by GS 143C 9 1(b). Notwithstanding the prescription in GS 143C 9 1(b) that these funds not reduce state general revenue funding, these funds must replace the reduction in general revenue funding effected in this act. Authorizes DHHS to use funds in the Medicaid Special Fund to fund the settlement of the Disproportionate Share Hospital payment audit issues between DHHS and the federal government related to fiscal years 1997 2002, and appropriates funds from the Medicaid Special Fund for 2011 12 for this purpose.

    ACCOUNTING FOR MEDICAID RECEIVABLES AS NONTAX REVENUE
    SECTION 10.35. Directs that receivables reserved at the end of 2011 12 and 2012 13 be accounted for as nontax revenue for those years. For each fiscal year, requires DHHS to deposit $115 million of its revenue with the Department of State Treasurer to be accounted for as nontax revenue. These deposits represent the return of General Fund appropriations provided to DHHS to provide indigent care services at state owned and operated mental hospitals.

    FAMILIES PAY PART OF THE COST OF SERVICES UNDER THE CAP MR/DD PROGRAM AND THE CAP CHILDREN'S PROGRAM BASED ON FAMILY INCOME
    SECTION 10.36.(a) Directs DHHS, Division of Medical Assistance, in consultation with the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, and Community Alternatives Program (CAP) stakeholders, to develop a schedule of cost sharing requirements for families of children with incomes above the Medicaid allowable limit to share in the costs of their child's Medicaid expenses under the CAP MR/DD (Community Alternatives Program for Mental Retardation and Developmentally Disabled) and the CAP C (Community Alternatives Program for Children). The cost sharing amounts must be based on a sliding scale of family income and take into account the impact on families with more than one child in the CAP programs. The Division of Medical Assistance may establish monthly deductibles as a means of implementing the cost sharing. Requires DHHS to hold at least one public hearing and provide other opportunities for individuals to comment on the imposition of cost sharing under the CAP program schedule.
    SECTION 10.36.(b) Requires the Division of Medical Assistance, in collaboration with the Controller's Office of DHHS, the Division of Information Resource Management (DIRM), and the new vendor of the replacement Medicaid Management Information System to develop business rules, program policies, and procedures, and to define relevant technical requirements.
    SECTION 10.36.(c) Implementation of the provision must be delayed until the implementation of the new Medicaid Management Information System.

    AUTHORIZE THE DIVISION OF MEDICAL ASSISTANCE TO TAKE CERTAIN STEPS TO EFFECTUATE COMPLIANCE WITH BUDGET REDUCTIONS IN THE MEDICAID PROGRAM
    SECTION 10.37.(a) Directs DHHS, the Division of Medical Assistance, to limit or reduce the expenditure of Medicaid and other funds on specified services. For In-Home Care, DHHS must no longer provide services under PCS and PCS-Plus on the later of January 1, 2012, or whenever CMS approves the elimination of the PCS and PCS-Plus programs and the implementation of the following two new services: (1) In-Home Care for Children (IHCC), which are services to assist families to meet the in-home care needs of children, including those individuals under the age of 21 receiving comprehensive and preventive child health services through the Early and Periodic Screening, Diagnosis, and Treatment (EPSDT) program and (2) In-Home Care for Adults (IHCA), services to meet the eating, dressing, bathing, toileting, and mobility needs of individuals 21 years of age or older who, because of a medical condition, disability, or cognitive impairment, demonstrate unmet needs. DHHS must establish a Medical Coverage Policy for each of these programs up to a maximum number of hours specified in the act, and implement specified limitations and restrictions on the provision of these services. Sets forth admission requirements and a time line for implementation of the new IHCC and IHCA programs.
    Requires the Division of Medical Assistance to amend clinical policies and submit State Plan amendments to the Centers for Medicare and Medicaid Services (CMS) to limit adult physical therapy, occupational therapy, and speech therapy visits to three visits per calendar year.
    Directs that, for MH/DD/SAS personal care and personal assistance services, a denial, reduction, or termination of Medicaid-funded personal care services or in-home care services shall result in a similar denial, reduction, or termination of state-funded MH/DD/SAS personal care and personal assistance services. Requires authorization for a Community Support Team to be based upon medical necessity as defined by DHHS and must not exceed 18 hours per week.
    Directs DHHS to restructure the Medicaid child mental health, developmental disabilities, and substance abuse residential services to ensure that total expenditures are within budgeted levels. All restructuring activities must be in compliance with federal and state law. Requires the Divisions of Medical Assistance and Mental Health, Developmental Disabilities, and Substance Abuse Services to establish a team inclusive of providers, LMEs, and other stakeholders to assure effective transition of recipients to appropriate treatment options. Sets forth numerous issues that must be addressed by the restructuring, including submission of the therapeutic family service definition to CMS, provider accreditation, entrance and continued stay criteria for residential services, length of stay not to exceed 180 days, the submission of a discharge plan, record maintenance, and the failure of a provider to comply with conditions of enrollment.
    Directs the Secretary of DHHS to reduce Medicaid provider rates to accomplish the reduction in funds enacted in the act, to issue Medicaid identification cards to recipients on an annual basis with updates as needed, and to develop a plan for the consolidation of case management services utilizing Community Care of North Carolina (CCNC).
    For the purpose of promoting cost-effective utilization of outpatient mental health services for children, DMA must require prior authorization for services following the sixteenth visit. DMA must change the Medicaid Private Duty Nursing program provided under the State Medicaid Plan to meet the authorization requirements and limits specified in the act, and develop and submit to CMS a Home and Community Based Services Waiver for individuals dependent on technology to substitute for a vital body function. Subject to prior approval of CMS, the Division of Medical Assistance must eliminate or modify the following Medicaid services: optical, durable medical equipment, specialized therapies (including physical, occupational, speech, respiratory, and audiological services), home health, the pregnancy home model initiative, and dental.
    SECTION 10.37.(b) At least 30 days before the adoption of new or amended medical coverage policies necessitated by the reductions to the Medicaid program enacted in this act, DHHS must (1) publish the proposed new or amended medical coverage policies in the Medicaid Bulletin published on the DHHS Web site with an invitation to readers to send written comments, (2) notify via direct mail the members of the Physician Advisory Group (PAG) of the proposed policies, (3) update the policies published on the Web site to reflect any changes made as a result of written comments received from the PAG and others, and (4) provide written notice to recipients about changes in policy.
    SECTION 10.37.(c) Directs DHHS to not take any action that it determines would jeopardize the receipt of federal funds.

    MEDICAID WAIVER FOR ASSISTED LIVING
    SECTION 10.38. Instructs DHHS, Division of Medical Assistance, to develop and implement a home and community based services program under Medicaid State Plan 1915(i) authority to continue Medicaid funding of personal care services to individuals living in adult care homes. The Division must implement the program upon approval of the application by the Centers for Medicare and Medicaid Services and by April 1, 2012, report on the status of approval and implementation of the program to the Joint Legislative Commission on Governmental Operations, 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.

    PROGRAM INTEGRITY
    SECTION 10.39. Authorizes DHHS to do prepayment claims reviews of providers to ensure all claims presented by a provider for DHHS payment meet the DHHS medical necessity criteria and all other applicable Medicaid, Health Choice, or other federal or state documentation requirements.

    TRANSFER TO OFFICE OF ADMINISTRATIVE HEARINGS
    SECTION 10.40. Transfers $1 million for 2011-12 and $1 million for 2012-13 from DHHS to the Office of Administrative Hearings (OAH) for mediation services provided for Medicaid applicant and recipient appeals and to contract for other services necessary to conduct the appeals process. OAH must continue the Memorandum of Agreement (MOA) with the Department for mediation services necessary to conduct the appeals process.

    NC HEALTH CHOICE
    SECTION 10.41. Amends GS 108A-54.3 to provide that, upon DHHS approval of any medical policy change applicable to NC Health Choice for Children and that requires an amendment to the Health Choice State Plan, DHHS must submit an amendment to the Health Choice State Plan. Amends GS 108-70.21 to eliminate or limit health care services provided under NC Health Choice for Children. Specifically, the act eliminates coverage for long-term care services, nonemergency medical transportation, EPSDT, dental services (oral exams, teeth cleaning, topical fluoride treatment, and orthognathic surgery), and auditory diagnostic testing services and hearing aids. Limits vision services to NC Health Choice-enrolled providers. Sets co-payments for nonemergency visits to the emergency room for children. Repeals GS 108A-70.23 (services for children with special needs) and amends GS 108A-70.27(c) (reporting requirements). Adds new GS 108A-70.29 to give DHHS rulemaking authority over the transition and operation of the NC Health Choice Program.

    MEDICATION THERAPY MANAGEMENT PILOT
    SECTION 10.42 Directs DHHS to develop a two-year medication therapy management pilot program to be administered through Community Care of North Carolina (CCNC) to determine (1) the best method of adapting the ChecKmedsNC program to the Medicaid program and CCNC’s Medical Homes and (2) the most effective and efficient role for community-based pharmacists as active members of CCNC’s care management team. Sets forth required elements of the pilot program and requires CCNC to report on the development and implementation of the pilot program on January 1, 2012, and every six months thereafter, to DHHS, the House and Senate Appropriations Subcommittees on Health and Human Services, and the Fiscal Research Division. Directs that funding for the pilot program must be made available through the Enhanced Federal Funding for Health Homes for the Chronically Ill.

    NO INFLATIONARY MEDICAID PROVIDER RATE INCREASES
    SECTION 10.43. Provides that DHHS may not authorize any inflationary increases to Medicaid provider rates during the 2011-13 fiscal biennium, except that increases for healthcare providers paying provider fees may occur if the state share of the increases can be funded with provider fees.

    MEDICAID RECIPIENT APPEALS
    SECTION 10.44. Requires DHHS to review the appeals process for adverse Medicaid determinations for Medicaid recipients to determine whether it conforms with, or exceeds, the requirements of federal law.

    DEPARTMENT TO DETERMINE COST-SAVINGS FOR MEDICAID THAT WOULD RESULT FROM PROVISION OF MUSCULOSKELETAL HEALTH SERVICES
    SECTION 10.45. Requires DHHS to study and determine the cost savings that would result for Medicaid if specified measures were implemented regarding the provision of services to those with musculoskeletal conditions. DHHS must report its findings to the House and Senate Appropriations Subcommittees on Health and Human Services and to the Fiscal Research Division by October 1, 2011.

    MEDICAID PROVIDER RATE ADJUSTMENTS
    SECTION 10.46 Reduces the Medicaid provider rates for all Medicaid providers by 2%, except that the rate reduction does not apply to physicians, and hospital inpatient services must be reduced by 2% plus a percentage sufficient to achieve the amount of savings that would have resulted if the 2% rate reduction had been applied to physicians. Includes a rate reduction schedule.

    DHHS SAVINGS THROUGH CCNC
    SECTION 10.47 Requires DHHS, CCNC, and North Carolina Community Care Inc. to obtain $90 million in savings through cooperation and effective cost-savings on the part of healthcare providers. DHHS must monitor the performance of the CCNC Networks and the expenditures of healthcare providers and report quarterly, beginning October 1, 2011, on the savings achieved. The report must be made to the House and Senate Appropriations Subcommittees on Health and Human Services and to the Fiscal Research Division. If by October 1, 2011, savings are not being achieved at a sufficient rate to yield the savings required by this section, DHHS must reduce Medicaid rates by up to 2% and eliminate or reduce the level or duration of optional Medicaid services, to be effective January 1, 2012.

    INCREASE GENERIC DRUG DISPENSING RATE IN MEDICAID BY REVISING PHARMACY DISPENSING FEES FOR PHARMACISTS THAT DISPENSE HIGH PROPORTIONS OF GENERIC DRUGS
    SECTION 10.48 Requires DHHS to revise its pharmacy dispensing fees to encourage a greater proportion of prescriptions to be generic prescriptions and thereby achieve savings of $15 million in 2011-12 and $24 million in 2012-13. DHHS must report on its progress in achieving the savings on November 1, 2011, January 1, 2012, and quarterly thereafter to the House and Senate Appropriations Subcommittees on Health and Human Services and to the Fiscal Research Division.

    NC NOVA
    SECTION 10.49 Authorizes DHHS to use up to $38,000 in each year of the fiscal biennium to continue the NC New Organizational Vision Award special licensure designation program established under GS 131E-154.14.

    INTENSIVE FAMILY PRESERVATION SERVICES FUNDING AND PERFORMANCE ENHANCEMENTS
    SECTION 10.50 Directs that the Intensive Family Preservation Services (IFPS) Program must provide intensive services to children and families in cases of abuse, neglect, and dependency where a child is at imminent risk of removal from the home and to children and families in cases of abuse where a child is not at imminent risk of removal. DHHS must require programs that receive funding for IFPS to submit specified data and must establish performance-based funding protocols. DHHS may only provide funding to programs and entities that provide the specified data.

    FOSTER CARE AND ADOPTION ASSISTANCE PAYMENT RATES
    SECTION 10.51 Adds new GS 108A-49.1 to set maximum per child, per month rates for state participation in the foster care assistance program and adoption assistance program. Also sets maximum rates for participation in HIV foster care and adoption assistance. Requires the state, and the county participating in foster care and adoption assistance, to contribute 50% of the nonfederal share of the cost of care for a child placed by a county department of social services or child-placing agency in a family foster home or residential child care facility.

    CHILD CARE INSTITUTIONS
    SECTION 10.52 Directs that, until the Social Services Commission adopts rules setting standardized rates for child caring institutions as authorized under G.S. 143B-153(8), the maximum reimbursement for child caring institutions must not exceed the rate established for the specific child caring institution by DHHS, Office of the Controller. In determining the maximum reimbursement, the state must include county and 48 IV-E reimbursements.

    REPEAL STATE ABORTION FUND
    SECTION 10.53 Eliminates funding for the termination of pregnancies caused by rape or incest or that endanger the life of the mother, for women whose income is below the federal poverty level and who are not eligible for Medicaid. Makes conforming changes.

    CHILD WELFARE POSTSECONDARY SUPPORT PROGRAM
    SECTION 10.54.(a) Of the funds appropriated from the General Fund to DHHS, $1,584,125 for 2011-12 and $1,584,125 for 2012-13 must be used to support the child welfare postsecondary support program for the educational needs of foster youth aging out of the foster care system and special needs children adopted from foster care after age 12, by providing assistance with the "cost of attendance" as that term is defined in 20 U.S.C. § 1087ll. These funds must be allocated by the State Education Assistance Authority.
    SECTION 10.54.(b) Of the funds appropriated from the General Fund to DHHS, $50,000 for each year of the 2011-13 fiscal biennium must be allocated to the North Carolina State Education Assistance Authority (SEAA) to perform administrative functions necessary to manage and distribute scholarship funds under the child welfare postsecondary support program.
    SECTION 10.54.(c) Of the funds appropriated from the General Fund to DHHS, $339,493 for each year of the fiscal biennium must be used to contract with an entity to administer the child welfare postsecondary support program described under subsection (a) of this section, which administration must include the performance of case management services.
    SECTION 10.54.(d) Funds appropriated to DHHS for the child welfare postsecondary support program must be used only for students attending public institutions of higher education in this state.

    TANF BENEFIT IMPLEMENTATION
    SECTION 10.55.(a) Approves the plan titled "North Carolina Temporary Assistance for Needy Families State Plan FY 2010-2012," prepared by DHHS for the period October 1, 2010, through September 30, 2012, and directs DHHS to submit the State Plan, as revised in accordance with subsection (b) of this section, to the U.S. Department of Health and Human Services, as amended by this act or any other act of the 2011 General Assembly.
    SECTION 10.55.(b) The counties approved as Electing Counties in the North Carolina Temporary Assistance for Needy Families State Plan FY 2010-2012 are Beaufort, Caldwell, Catawba, Lenoir, Lincoln, Macon, and Wilson.
    SECTION 10.55.(c) Counties that submitted the letter of intent to remain an Electing County or to be redesignated as an Electing County and the accompanying county plan for fiscal year 2011 through 2012, pursuant to G.S. 108A-27(e), shall operate under the Electing County budget requirements effective July 1, 2009. For programmatic purposes, all 50 counties referred to in this subsection shall remain under their current county designation through September 30, 2012.
    SECTION 10.55.(d) For 2011-12, Electing Counties are held harmless to their Work First Family Assistance allocations for the 2010-11 fiscal year, provided that remaining funds allocated for Work First Family Assistance and Work First Diversion Assistance are sufficient for payments made by DHHS on behalf of Standard Counties pursuant to GS 108A-27.11(b).
    SECTION 10.55.(e) Authorizes DHHS, in the event that its projections of Work First Family Assistance and Work First Diversion Assistance for 2011-2012 indicate that remaining funds are insufficient for Work First Family Assistance and Work First Diversion Assistance payments to be made on behalf of Standard Counties, to deallocate funds, from those allocated to Electing Counties for Work First Family Assistance in excess of the sums in GS 108A-27.11, up to the requisite amount for payments in Standard Counties. Prior to deallocation, DHHS must obtain approval by the Office of State Budget and Management. If DHHS adjusts the allocation set forth in subsection (d) of this section, it must report to the Joint Legislative Commission on Governmental Operations, the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division.

    PAYMENTS FOR LIEAP/CIP
    SECTION 10.56. Adds new GS 108A-25.4 to require that the Low-Income Energy Assistance Program Plan focus annual energy assistance payments on the elderly population age 60 and above with income up to 130% of the federal poverty level and on disabled persons receiving services through the Division of Aging and Adult Services. The energy assistance payment must be paid directly to the service provider by the county department of social services. The Plan for Crisis Intervention Program (CIP) must provide assistance for vulnerable populations who meet income eligibility criteria established by DHHS. The CIP payment must be paid directly to the service provider by the county department of social services. Directs DHHS to submit the Plan for each program to the U.S. Department of Health and Human Services no later than September 1 of each year and implement the Plan no later than October 1 of each year. Beginning September 1, 2011, on or before September 1 of each year, and for a period of three years thereafter, DHHS must submit a copy of the Plan to the House Appropriations Subcommittee on Health and Human Services and Senate Appropriations Committee on Health and Human Services.

    CONSOLIDATE BLIND, DEAF, AND VOCATIONAL REHABILITATION DIVISIONS
    SECTION 10.57. Directs DHHS, by January 1, 2012, to consolidate the Division of Services for the Blind, the Division of Services for the Deaf and the Hard of Hearing, and the Division of Vocational Rehabilitation Services into one division.

    NON-MEDICAID REIMBURSEMENT CHANGES
    SECTION 10.58. Directs that providers of medical services under the various state programs, other than Medicaid, offering medical care to citizens of the state must be reimbursed at rates no higher than those under the North Carolina Medical Assistance Program. Authorizes DHHS to reimburse hospitals at the full prospective per diem rates without regard to the Medical Assistance Program's annual limits on 5 hospital days. When the Medical Assistance Program's per diem rates for inpatient services and its interim rates for outpatient services are used to reimburse providers in non-Medicaid medical service programs, retroactive adjustments to claims already paid are not required. DHHS may negotiate with providers of medical services under the various DHHS service programs, other than Medicaid, for rates as close as possible to Medicaid rates for the following purposes: contracts or agreements for medical services and purchases of medical equipment and other medical supplies. Sets maximum net family annual income eligibility standards for services in these programs. Directs the Secretary, subject to the prior approval of the Office of State Budget and Management, to reduce provider rates for services rendered for the Medical Eye Care, Independent Living, and Vocational Rehabilitation programs within the Division of Services for the Blind, and Independent Living and Vocational Rehabilitation programs within the Division of Vocational Rehabilitation to accomplish the reduction in funds for this purpose enacted in this act.

    STATE-COUNTY SPECIAL ASSISTANCE
    SECTION 10.59. Sets the maximum monthly rate for residents in adult care home facilities at $1,182 per month per resident, and for residents in Alzheimer/Dementia special care units at $1,515 per month per resident; provides that DHHS may recommend rates based on appropriate cost methodology and cost reports submitted by adult care homes that receive State-County Special Assistance funds. Requires DHHS to review activities and costs related to the provision of care in adult care homes and to determine what costs may be considered to properly maximize allowable reimbursement available through Medicaid personal care services for adult care homes (ACH-PCS) under federal law. Authorizes DHHS to transfer funds from the State-County Special Assistance program within the Division of Social Services to the Division of Medical Assistance and use those funds as state match to draw down federal matching funds.

    DHHS BLOCK GRANTS.
    SECTION 10.60.(a). Makes the following appropriations from federal block grants for the fiscal year ending June 30, 2012.

    TEMPORARY ASSISTANCE TO NEEDY FAMILIES
    (TANF) FUNDS

    Local Program Expenditures
    Division of Social Services
    Work First Family Assistance $ 80,840,356
    01. Work First County Block Grants 94,453,315
    02. Work First Electing Counties 2,378,213
    Adoption Services – Special Children's Adoption Fund 3,609,355
    03. Family Violence Prevention 2,200,000
    04. Child Protective Services – Child Welfare
    Workers for Local DSS 14,452,391
    05. Child Welfare Collaborative 754,115
    Division of Child Development
    06. Subsidized Child Care Program 67,439,721
    Division of Public Health
    07. Teen Pregnancy Initiatives 450,000
    DHHS Administration
    08. Division of Social Services 1,093,176
    09. Office of the Secretary 75,392
    Transfers to Other Block Grants
    Division of Child Development
    10. Transfer to the Child Care and Development Fund 82,210,675
    11. Transfer to Social Services Block Grant for Child
    Protective Services – Child Welfare Training in
    Counties 1,300,000
    12. Transfer to Social Services Block Grant for
    Foster Care Services 650,829
    13. Transfer to Social Services Block Grant for Child
    Protective Services 5,040,000
    14. Transfer to Social Services Block Grant for Adult
    Protective Services 1,191,925
    15. Transfer to Social Services Block Grant for County
    Departments of Social Services 375,000
    TOTAL TEMPORARY ASSISTANCE TO NEEDY FAMILIES
    (TANF) FUNDS $ 358,514,463

    TEMPORARY ASSISTANCE TO NEEDY FAMILIES (TANF)
    EMERGENCY CONTINGENCY FUNDS
    Local Program Expenditures
    Division of Social Services
    01. NC FAST $ 1,664,936
    02. Work First – Boys and Girls Clubs 2,500,000
    03. Maternity Homes 943,002
    Division of Public Health
    04. Teen Pregnancy Initiatives 2,500,000
    DHHS Administration
    05. Division of Social Services 1,389,084
    TOTAL TEMPORARY ASSISTANCE TO NEEDY FAMILIES (TANF)
    EMERGENCY CONTINGENCY FUNDS $ 8,997,022

    SOCIAL SERVICES BLOCK GRANT
    Local Program Expenditures
    Divisions of Social Services and Aging and Adult Services
    01. County Departments of Social Services $ 29,288,783
    02. Child Protective Services (Transfer from TANF) 5,040,000
    03. Adult Protective Services (Transfer from TANF) 1,191,925
    04. State In Home Services Fund 2,101,113
    05. State Adult Day Care Fund 2,155,301
    06. Child Protective Services/CPS Investigative
    Services Child Medical Evaluation Program 609,455
    07. Foster Care Services
    (Transfer from TANF $650,829) 2,147,967
    08. Special Children Adoption Incentive Fund 500,000
    09. Child Protective Services Child Welfare Training
    for Counties (Transfer from TANF) 1,300,000
    10. Home and Community Care Block Grant (HCCBG) 1,834,077
    11. Child Advocacy Centers 375,000
    11A. Food Banks 1,000,000
    Division of Central Management and Support
    12. ALS Association Jim "Catfish" Hunter Chapter 400,000
    Division of Mental Health, Developmental Disabilities, and Substance
    Abuse Services
    13. Mental Health Services Program 422,003
    14. Developmental Disabilities Services Program 5,000,000
    15. Mental Health Services Adult and
    Child/Developmental Disabilities Program/
    Substance Abuse Services Adult 3,234,601
    Division of Public Health
    16. Prevent Blindness 150,000
    Division of Vocational Rehabilitation
    16. Vocational Rehabilitation Services – Easter Seal Society/UCP
    Community Health Program 188,263
    DHHS Program Expenditures
    Division of Aging and Adult Services
    17. UNC CARES Training Contract 247,920
    Division of Services for the Blind
    19. Independent Living Program 3,633,077
    20. Accessible Electronic Information for Blind and Disabled Persons 75,000
    Division of Health Service Regulation
    21. Adult Care Licensure Program 411,897
    22. Mental Health Licensure and Certification Program 205,668
    DHHS Administration
    23. Division of Aging and Adult Services 688,436
    24. Division of Social Services 892,624
    25. Office of the Secretary/Controller's Office 138,058
    26. Office of the Secretary/DIRM 87,483
    27. Division of Child Development 15,000
    28. Division of Mental Health, Developmental
    Disabilities, and Substance Abuse Services 29,665
    29. Division of Health Service Regulation 235,625
    30. Office of the Secretary NC Interagency Council
    for Coordinating Homeless Programs 250,000
    31. Office of the Secretary 48,053
    Transfers to Other Block Grants

    Division of Public Health
    32. Transfer to Preventive Health Services Block Grant
    for HIV/STD Prevention and Community Planning 145,819
    TOTAL SOCIAL SERVICES BLOCK GRANT $ 64,042,813

    LOW INCOME HOME ENERGY ASSISTANCE BLOCK GRANT
    Local Program Expenditures
    Division of Social Services
    01. Low Income Energy Assistance Program (LIEAP) $ 11,862,617
    02. Crisis Intervention Program (CIP) 48,679,871
    02A. NC FAST Implementation 4,732,667
    Local Administration
    Division of Social Services
    03. County DSS Administration 5,604,940
    DHHS Administration
    04. Office of the Secretary/DIRM 276,784
    05. Office of the Secretary/Controller's Office 12,332
    Transfers to Other State Agencies
    Department of Commerce
    06. Weatherization Program 500,000
    07. Heating Air Repair and Replacement
    Program (HARRP) 4,744,344
    08. Local Residential Energy Efficiency Service
    Providers – Weatherization 25,000
    09. Local Residential Energy Efficiency Service
    Providers – HARRP 227,038
    10. Department of Commerce Administration –
    Weatherization 25,000
    11. Department of Commerce Administration –
    HARRP 227,038
    TOTAL LOW INCOME HOME ENERGY ASSISTANCE
    BLOCK GRANT $ 76,917,631

    CHILD CARE AND DEVELOPMENT FUND BLOCK GRANT
    Local Program Expenditures
    Division of Child Development
    01. Subsidized Child Care Services (CCDF) $ 151,534,624
    02. Electronic Tracking System 3,336,345
    03. Subsidized Child Care Services
    (Transfer from TANF) 82,210,675
    04. Quality and Availability Initiatives
    (TEACH Program $3,800,000) 25,948,434
    Division of Social Services
    06. Local Subsidized Child Care Services Support 16,471,587
    (4% Administrative Allowance)
    DHHS Administration
    Division of Child Development
    07. DCD Administrative Expenses 6,539,277
    Division of Central Administration
    08. DHHS Central Administration – DIRM
    Technical Services 774,317
    TOTAL CHILD CARE AND DEVELOPMENT FUND
    BLOCK GRANT $ 286,815,255

    MENTAL HEALTH SERVICES BLOCK GRANT
    Local Program Expenditures
    01. Mental Health Services – Adult $ 6,656,212
    02. Mental Health Services – Child 5,121,991
    03. Administration 100,000
    TOTAL MENTAL HEALTH SERVICES BLOCK GRANT $ 11,878,203

    SUBSTANCE ABUSE PREVENTION AND TREATMENT BLOCK GRANT
    Local Program Expenditures
    Division of Mental Health, Developmental Disabilities, and Substance Abuse Services
    01. Substance Abuse Services – Adult $ 20,008,541
    02. Substance Abuse Treatment Alternative for Women 8,107,303
    03. Substance Abuse – HIV and IV Drug 5,116,378
    04. Substance Abuse Prevention – Child 7,186,857
    05. Substance Abuse Services – Child 4,940,500
    06. Institute of Medicine 250,000
    07. Administration 250,000
    Division of Public Health
    08. Risk Reduction Projects 633,980
    09. Aid to Counties 209,576
    TOTAL SUBSTANCE ABUSE PREVENTION
    AND TREATMENT BLOCK GRANT $ 46,703,135

    MATERNAL AND CHILD HEALTH BLOCK GRANT
    Local Program Expenditures
    Division of Public Health
    01. Children's Health Services 8,528,156
    02. Women's Health 8,510,783
    03. Oral Health 42,268
    DHHS Program Expenditures
    Division of Public Health
    04. Children's Health Services 1,417,087
    05. Women's Health 136,628
    06. State Center for Health Statistics 164,318
    07. Quality Improvement in Public Health 1,636
    08. Health Promotion 89,374
    09. Office of Minority Health 40,141
    DHHS Administration
    Division of Public Health
    09. Division of Public Health Administration 631,966
    TOTAL MATERNAL AND CHILD
    HEALTH BLOCK GRANT $ 19,562,357

    PREVENTIVE HEALTH SERVICES BLOCK GRANT

    Local Program Expenditures
    Division of Public Health
    01. NC Statewide Health Promotion $ 1,730,653
    02. Services to Rape Victims 89,152
    03. HIV/STD Prevention and Community Planning
    (Transfer from Social Services Block Grant) 145,819
    DHHS Program Expenditures
    Division of Public Health
    04. State Center for Health Statistics 55,040
    05. NC Statewide Health Promotion 947,056
    06. Oral Health 70,000
    07. State Laboratory of Public Health 16,600
    08. Services to Rape Victims 107,960
    TOTAL PREVENTIVE HEALTH SERVICES BLOCK GRANT $ 3,162,280

    COMMUNITY SERVICES BLOCK GRANT
    Local Program Expenditures
    Office of Economic Opportunity
    01. Community Action Agencies $ 18,075,488
    02. Limited Purpose Agencies 1,004,194
    DHHS Administration
    03. Office of Economic Opportunity 1,004,194
    TOTAL COMMUNITY SERVICES BLOCK GRANT $ 20,083,876

    GENERAL PROVISIONS
    SECTION 10.60.(b). Requires DHHS to submit a separate plan for each block grant it administers and receives.
    SECTION 10.60.(c). Provides that if Congress increases or decreases federal funds for any of the block grants, DHHS must allocate the increase or reduction proportionally across programs and activity appropriations identified in this section. In the event of an increase, prohibits OSBM from approving funding for new programs or activities not appropriated in this section.
    SECTION 10.60.(d). Provides that appropriations from federal block grants must be made according to the schedule established for the fiscal year 2011-12 until a new schedule is enacted by the General Assembly.
    SECTION 10.60.(e). Requires that all changes to the budgeted allocations for block grants, contingency funds, or other grants related to existing block grants administered by DHHS that are not specifically addressed in this section must be approved by OSBM.

    TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TANF) FUNDS
    SECTION 10.60.(f). Allocates $1.093 million of the TANF funds to the Division of Social Services (DSS) to support administration of TANF-funded programs.
    SECTION 10.60.(g). Provides that $2.2 million of the TANF funds appropriated to DSS must be used to provide domestic violence services to Work First recipients. The funds must be used for direct services to victims and may not be used to establish new domestic violence shelters or to facilitate lobbying. DSS may use up to $75,000 to support one administrative position to implement this subsection. Requires each county department of social services and the local domestic violence shelter program serving the county to jointly develop a plan for using the funds. Provides a formula for DSS to use in allocating funds to county departments of social services.
    SECTION 10.60.(h). Allocates $14.45 million to county departments of social services for child welfare improvements, including hiring or contracting staff for child protective services, providing foster care and support services, recruiting and supporting foster and adoptive families, and providing interstate and post-adoption services for eligible families.
    SECTION 10.60.(i). Allocates $3.6 million to the DHHS Special Children Adoption fund. Directs DSS, in consultation with the NC Association of County Directors of Social Services and representatives of licensed private adoption agencies, to develop guidelines for the awarding of funds to licensed public and private adoption agencies. Requires that participating agencies who receive payments from the fund must use them exclusively to enhance the adoption services program. Provides that no local match may be required for receipt of the funds.
    SECTION 10.60.(j). Provides that $754,115 of the TANF funds appropriated to DHHS must be used to continue support for the Child Welfare Collaborative.

    TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TANF) CONTINGENCY FUNDS
    SECTION 10.60.(k). Provides that the $2.5 million in TANF funds for Boys and Girls Clubs must be used to make grants for approved programs. Requires DHHS to administer a grant program to award the funds.
    SECTION 10.60.(l). Provides that $1.39 million of the TANF contingency funds appropriated to DSS must be used to support administration of TANF-funded programs.

    SOCIAL SERVICES BLOCK GRANT (SSBG)
    SECTION 10.60.(m). Provides that the $1.3 million in SSBG funds appropriated to DSS must be used to support child welfare training projects, including the provision of a regional training center in southeastern North Carolina, and training for residential child caring facilities.
    SECTION 10.60.(n). Provides that $2.15 million in SSBG funds appropriated for child caring agencies must be allocated in support of state foster home children.
    SECTION 10.60.(o). Authorizes DHHS to transfer SSBG funding allocated for departmental administration between divisions, subject to the approval of OSBM.
    SECTION 10.60.(p). Requires a 50% local match for SSBG funds appropriated for the Special Children’s Adoption Incentive Fund.
    SECTION 10.60.(q). Provides that $422,003 in SSBG funds appropriated to DSS must be used to continue a Mental Health Services Program for children.
    SECTION 10.60.(r). Allocates $5.04 million in SSBG funds to DSS and directs DSS to allocate the funds to local departments of social services to replace the loss of child protective services state funds that are currently used by county government to pay for local child protective services staff. The funds must be used to pay for salaries and related expenses only and are exempt from a state regulation requiring a local match.
    SECTION 10.60.(s). Provides that $400,000 of the SSBG funds appropriated to the Division of Central Management and Support must be allocated to the ALS Association, Jim “Catfish” Hunter Chapter, to provide patient care and community services to persons with ALS and their families. Exempts the funds from a state regulation requiring a local match.
    SECTION 10.60.(t). Allocates $150,000 of the SSBG funds appropriated to DPH to Prevent Blindness North Carolina to be used for direct service programs. Exempts the funds from a state regulation requiring a local match.
    SECTION 10.60.(u). Provides that $75,000 in SSBG funds appropriated to the Division of Services for the Blind must be used to provide accessible electronic information for blind and disabled persons. Exempts the funds from a state regulation requiring a local match.
    SECTION 10.60.(v). Provides that $375,000 of the SSBG funds appropriated to DSS must be used to continue support for the Child Advocacy Centers. Exempts the funds from a state regulation requiring a local match.
    SECTION 10.60.(w). Provides that SSBG funds allocated to the North Carolina Inter-Agency Council for coordinating homeless programs and child medical evaluations are exempt from a state regulation requiring a local match.

    LOW-INCOME HOME ENERGY ASSISTANCE BLOCK GRANT
    SECTION 10.60.(x). Provides that additional emergency contingency funds received may be allocated for energy assistance payments or crisis intervention payments without prior consultation with the Joint Legislative Commission on Governmental Operations; however, such funds must be reported to the Commission. Further, the allocation of funds for any activities other than assistance payments requires prior consultation.
    SECTION 10.60.(y). Provides that $11.86 million of the funds appropriated to DSS must be used for energy assistance payments for persons 60 years or older with incomes up to 130% of the federal poverty level and disabled persons eligible for services through the Division of Aging and Adult Services.
    SECTION 10.60.(y1). Provides that $4.73 million of the funds appropriated to DHHS, Central Management and Support Division, must be used to continue the implementation of the NCFAST program.

    CHILD CARE AND DEVELOPMENT FUND BLOCK GRANT
    SECTION 10.60.(z). Requires payment for subsidized child care services provided with federal TANF funds to comply with regulations and policies issued by the Division of Child Development.
    SECTION 10.60.(aa). Provides that, if funds appropriated through the Child Care and Development Fund Block Grant for any program cannot be obligated or spent within the periods allowed by the federal grants, DHHS may move the funds to child care subsidies, unless such a move is prohibited by the federal grant requirements.

    SUBSTANCE ABUSE PREVENTION AND TREATMENT BLOCK GRANT
    SECTION 10.60.(bb). Provides that $250,000 appropriated to DMHDDSAS for the North Carolina Institute of Medicine (NCIOM) must be used to continue NCIOM’s Task Force on the mental, health, social, and emotional needs of young children and their families. Includes reporting requirement.

    MATERNAL AND CHILD HEALTH BLOCK GRANT
    SECTION 10.60.(cc). Allocates $1.497 million of the Maternal and Child Health Block Grant appropriated to DPH as follows: (1) $350,000 to the March of Dimes to provide folic acid and pre-conceptional education to women, (2) $650,000 to Teen Pregnancy Prevention, (3) $247,000 to Healthy Start/Safe Sleep, and (4) $250,000 to Perinatal Quality Collaborative of North Carolina.
    SECTION 10.60.(dd). Provides that, if funds are received under the Maternal and Child Block Grant for abstinence education, the funds will be transferred to the state Board of Education to be administered by the Department of Public Instruction.
    SECTION 10.60.(ee). Directs DHHS to ensure there will be follow-up testing in the Newborn Screening Program.

    PART XI. DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES

    TECHNICAL CORRECTIONS REGARDING COMMERCIAL FERTILIZER INSPECTION FEE AND PESTICIDE TECHNICIAN IDENTIFICATION CARD RENEWAL FEE
    SECTION 11.1. Amends GS 106-671(b) to increase the commercial fertilizer inspection fee from 25¢ to 50¢ per ton. Amends GS 106-65.31(b1) to increase the pesticide technician annual renewal fee from $25 to $40.

    REPEAL BOARD OF AGRICULTURE REVIEW OF FEE SCHEDULES
    SECTION 11.2. Repeals GS 106-6.1(b), which required biennial fee reports.

    FEES FOR OUT-OF-STATE SOIL TESTS AND EXPEDITED SOIL TESTS
    SECTION 11.3. Amends GS 106-22(17) to allow for out-of-state soil tests and expedited soil tests and provides that fees for these tests must be no less than $5 and $100 respectively.

    INCREASE FEES FOR PET SHOPS, AUCTIONS, KENNELS, AND DEALERS
    SECTION 11.4. Amends GS 19A-27, 19A-28, and 19A-29 to increase from $50 to $75 the costs of licenses to operate pet shops, public auction and boarding kennels, and dealers respectively.

    INCREASE AGRICULTURAL LIMING MATERIALS TONNAGE FEES
    SECTION 11.5. Amends GS 106-92.8 to increase fees for agricultural liming materials and landplaster from 10¢ to 50¢ per ton.

    INCREASE ANTIFREEZE DISTRIBUTION REGISTRATION FEE
    SECTION 11.6. Amends GS 106-579.4 to increase the license and inspection fee for each brand of antifreeze from $250 to $500.

    RECLASSIFY THREE VACANT POSITIONS WITHIN DACS TO ANIMAL WELFARE PROGRAM
    SECTION 11.7. Directs the Department of Agriculture and Consumer Services to reclassify three vacant positions within the Department and to fill these reclassified positions in a timely manner in order to provide support for the Animal Welfare Program within the Department.

    PART XII. DEPARTMENT OF LABOR

    LABOR/REPEAL STATUTE REQUIRING BIENNIAL REVIEW OF FEES BY DEPARTMENT
    SECTION 12.1. Repeals GS 95-14.1, which requires Department of Labor biennial review of fees.

    PART XIII. DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

    LOCALS TO SET AND COLLECT FOOD AND LODGING FEES AND RETAIN LARGER LOCAL PORTION OF THESE FEES
    SECTION 13.1. Rewrites GS 130A-248(d) to provide that certain establishments that prepare and sell meat food products, or poultry products, and public school cafeterias are required to pay a fee not to exceed $250 (previously set at $75) for each permit issued. Adds provision that a grocery store that elects to have separate inspections of its meat and seafood, delicatessen, produce and bakery operations will not be assessed a total fee of more than $500. Provides that no more than 10% (previously 33.1/3%) of the fees collected under the subsection may be used to support state health programs and activities. Amends GS 130A-39 and 153-77 to direct the local health department or the consolidated human services board, whichever applies, to set the fees for local food and lodging permits. Sends those fees, to support state health programs and activities, to the Department of Health and Human Services. Makes other conforming changes.

    REDUCE PORTION OF CERTIFICATE OF TITLE FEES CREDITED TO MERCURY SWITCH REMOVAL ACCOUNT
    SECTION 13.2. Amends GS 20-85(a1) to reduce from $1 to 50¢ of the amount collected for each specified motor vehicle certificate of title and registration fee that is transferred to the Department of Environment and Natural Resources for the Mercury Switch Removal Account.

    ABOLISH, TRANSFER TO OTHER DEPARTMENTS, OR CONSOLIDATE WITHIN DENR ALL ENVIRONMENTAL HEALTH PROGRAMS UNDER DENR
    SECTION 13.3.(a) Abolishes the Vector Control Program and the Tick Control Program.
    SECTION 13.3.(b) Transfers all functions, powers, duties, and obligations previously entrusted in the Grade "A" Milk Sanitation Program within the Division of Environmental Health of the Department of Environment and Natural Resources (DENR) to the Food and Drug Protection Division of the Department of Agriculture and Consumer Services (DACS).
    SECTION 13.3.(c) Transfers all functions, powers, duties, and obligations previously vested in the Sleep Products Program within the Public Health Pest Management Section of the Division of Environmental Health of DENR to DACS.
    SECTION 13.3.(d) Transfers the following sections of the Division of Environmental Health that support programs implemented through local health departments and programs primarily focused on food safety and other public health concerns, from the Department of Environment and Natural Resources to the Division of Public Health of the Department of Health and Human Services: 1) Environmental Health Services Section; 2) On Site Water Protection Section; 3) Radiation Protection Section; 4) Office of Education and Training.
    SECTION 13.3.(e) Transfers the Public Water Supply Section of the Division of Environmental Health of DENR to the Division of Water Resources of DENR.
    SECTION 13.3.(f) Transfers the Shellfish Sanitation and Recreational Water Quality Section of the Division of Environmental Health of DENR to the Division of Marine Fisheries of DENR.
    SECTION 13.3.(g) Abolishes the Division of Environmental Health of DENR. Abolishes the Public Health Pest Management Section of the Division of Environmental Health of DENR.
    SECTION 13.3.(h)-(qqq) Makes conforming and technical changes by recodifying various provisions under GS Chapter 106 to effectuate the transfers and consolidation in the act. Makes additional conforming changes to various provisions of the General Statutes.
    SECTION 13.3.(rrr) Rewrites GS 113-221.3 to add a new subsection stating it is a Class 2 misdemeanor for any person to remove, destroy, damage, deface, mutilate, or otherwise interfere with, or have in his or her possession, without just cause or excuse, specified signs posted by DENR. Makes other conforming and technical changes.
    SECTION 13.3.(sss)-(uuu) Makes further conforming and technical changes.
    SECTION 13.3.(VVV) Provides that the transfers under the section become effective July 1, 2011.

    REQUIRE DENR TO USE DWQ’S GROUNDWATER INVESTIGATION UNIT’S WELL DRILLING SERVICES IN OTHER DENR DIVISIONS
    SECTION 13.4. Directs the Groundwater Investigation Unit (GIU) of the Division of Water Quality (DWQ) to bid on contracts to perform well drilling services for any division within the Department of Environment and Natural Resources (DENR) that needs such services. States that the purposes of this provision are to assure GIU staff are fully utilized and to reduce the need for DENR to enter into contracts with private well drilling companies.

    ADDITIONAL USES OF HAZARDOUS WASTE FEES
    SECTION 13.5. Amends GS 130A-294.1(b) to permit additional uses of fees collected for the hazardous waste program. Allows the fees to be used (1) to implement and provide oversight of response activities involving inactive hazardous waste sites or (2) to provide compliance and prevention activities to ensure hazardous waste is not disposed in solid waste management facilities.

    DENR CIVIL PENALTY ASSESSMENTS
    SECTION 13.6. Enacts new GS 143B-279.16, regarding civil penalty assessments for violations of environmental statutes or rules. Requires DENR to extend by 10 days the period of time between the date a notice of violation is sent and the date a civil penalty is assessed. States that the purposes of extension are (1) to provide the recipient of the notice of violation a greater opportunity to understand the corrective action needed, receive technical assistance from DENR, and take corrective action and (2) to provide the recipient of the notice of violation a greater opportunity to informally resolve the matter.

    WATER AND AIR QUALITY ACCOUNT REVERTS
    SECTION 13.7. Amends GS 143-215.3A(a), which established the Water and Air Quality Account. Deletes provision making the account nonreverting. Provides that funds credited to the account from fees collected for laboratory facility certifications that are not expended at the end of each fiscal year shall revert. Provides that any other unexpended funds shall not revert.

    DIVERT SCRAP TIRE TAX PROCEEDS TO GENERAL FUND
    SECTION 13.8. For the 2011-12 fiscal year, directs the Secretary of Revenue to credit to the General Fund the net tax proceeds that ordinarily must be credited to the Scrap Tire Disposal Account under GS 105-187.19(b).

    DIVERT WHITE GOODS TAX PROCEEDS TO GENERAL FUND
    SECTION 13.9. For the 2011-12 fiscal year, directs the Secretary of Revenue to credit to the General Fund the net tax proceeds that ordinarily must be credited to the White Goods Management Account under GS 105-187.24.

    CHANGE EFFECTIVE DATE REGARDING WELL TESTING
    SECTION 13.10. SL 2009-124 amended GS 87-97 to require local health departments to test newly constructed private drinking water wells for volatile organic compounds. The amendment became effective October 1, 2010. This provision would change the effective date to October 1, 2012.

    REPEAL DENR REVIEW OF FEE SCHEDULES
    SECTION 13.11. Repeals GS 143B-279.2(4), which requires DENR to conduct a biennial review of all fees charged under any of its programs to determine whether the fees should be changed.

    NO NEW FEES FOR PARKING IN STATE PARKS
    SECTION 13.12. Prohibits the imposition of new fees for parking in a state park during the 2011-13 biennium. Provides that fees that were charged before the 2011-12 fiscal year may still be charged.

    DIVERT PORTION OF DEED STAMP TAX REVENUE SOURCE FOR PARKS AND RECREATION TRUST FUND
    SECTION 13.13. For the 2011-12 fiscal year, directs the Secretary of Revenue to credit to the General Fund $8.435 million of the net tax proceeds that ordinarily must be credited to the Parks and Recreation Trust Fund under GS 105-228.30.

    PARKS AND RECREATION TRUST FUND; ALLOCATION OF DEED STAMP TAX PROCEEDS CREDITED TO FUND
    SECTION 13.14. Provides that, for taxes levied during the 2011-12 fiscal year, the net tax proceeds credited to the Parks and Recreation Trust Fund shall be allocated as follows: (1) $6 million for the operating expenses of the Division of Parks and Recreation; (2) up to $8 million for the State Parks System for capital projects, repairs and renovations, land acquisition, and debt retirement; (3) up to $4.23 million for grants to local government units; and (4) up to $705,000 for the Coastal and Estuarine Water Beach Access Program.

    DIVERT PORTION OF DEED STAMP TAX REVENUE SOURCE FOR NATURAL HERITAGE TRUST FUND
    SECTION 13.15. For the 2011-12 fiscal year, directs the Secretary of Revenue to credit to the General Fund $8 million of the net tax proceeds that ordinarily must be credited to the National Heritage Trust Fund under GS 105-228.30(b).

    NATURAL HERITAGE TRUST FUND USED FOR COSTS TO ADMINISTER PLANT CONSERVATION PROGRAM/CONSERVATION PLANNING & COMMUNITY AFFAIRS PROGRAM
    SECTION 13.16. Amends GS 113-77.9(c) to direct the trustees of the Natural Heritage Trust Fund to authorize expenditures from the fund of up to $75,000 to pay the Department of Agriculture and Consumer Services to administer the Plant Conservation Program. Further directs the trustees to authorize up to $325,000 to pay the cost of supporting staff in the Office of Conservation Planning and Community Affairs.

    DIVISION OF MARINE FISHERIES TO USE DIVISION OF FOREST RESOURCES MECHANICS FOR AIRCRAFT MAINTENANCE
    SECTION 13.17. Directs the Division of Marine Fisheries to use mechanics employed by the Division of Forest Services for aircraft maintenance except when impracticable.

    OYSTER SANCTUARY PROGRAM SUPPORT
    SECTION 13.18. Amends GS 113-175.1(c) to encourage the Marine Fisheries Commission and the Wildlife Resources Commission to consider supporting the Oyster Sanctuary Program.

    MARINE FISHERIES ENCOURAGED TO CONTRACT WITH PRIVATE SECTOR FOR OYSTER SANCTUARY RESTORATION
    SECTION 13.19. Encourages the Division of Marine Fisheries to contract with private sector business for any oyster sanctuary restoration projects in the Pamlico Sound that are funded in whole or in part with state funds or revenues from various state sources.

    MARINE FISHERIES INSPECTORS DELEGATED LAW ENFORCEMENT POWERS BY NATIONAL MARINE FISHERIES SERVICE
    SECTION 13.20. Amends GS 113-134.1 to permit a marine fisheries inspector who has been authorized by the Fisheries Director (or designee) to accept delegation of law enforcement powers from the National Marine Fisheries Service over matters within the Service’s jurisdiction. Permits the office of marine fisheries inspector to be held concurrently with any other elected or appointed office.

    END PILOT PROGRAM FOR ANNUAL INSPECTIONS OF CERTAIN ANIMAL OPERATIONS
    SECTION 13.21. Effective June 30, 2011, terminates the pilot program for the annual inspection of animal operations subject to a permit under GS Chapter 143, Article 21. The program was initially authorized by SL 1997-443 and is presently scheduled to end September 1, 2011.

    END DSWC ROLE REGARDING ANIMAL WASTE MANAGEMENT SYSTEMS
    SECTION 13.22. Amends GS 143-215.10A to delete the requirement that the Division of Soil and Water Conservation provide technical assistance, through operations reviews, of animal waste management systems. Repeals GS 143-215.10D, a conforming change.

    AGRICULTURAL WATER RESOURCES ASSISTANCE PROGRAM/CONFORMING CHANGES
    SECTION 13.23(a). Adds new Article 5 to GS Chapter 139, Agricultural Water Resources Assistance Program. States that the purpose of the new program is to assist farmers and landowners in increasing water use efficiency, availability, storage, and in implementing best management practices to conserve and protect water resources. Directs the Soil and Water Conservation Commission to supervise, administer, and implement the program. Specifies the program’s functions, including the provision of funds for certain projects.
    SECTION 13.23(b). Provides that GS 14-234(a), which prohibits public officers and employees from deriving a direct benefit from contracts they make or administer, does not apply to an application for or receipt of a grant under the Agricultural Water Resources Assistance Program by a member of the Soil and Water Conservation Commission or to a district supervisor of a soil and water conservation district if certain requirements are met.
    SECTION 13.23(c) through 13.23(e). These sections make conforming changes to other statutes.
    SECTION 13.23(f). Identifies the stakeholders that the Director of the Division of Soil and Water Conservation and the Commission of Agriculture must meet with for the purpose of advising the Soil and Water Conservation Commission on the development and administration of the program.
    SECTION 13.23(g). Requires the first report required by the new Article 5 to be submitted to the Environmental Review Commission by January 31, 2013.
    SECTION 13.23(h). Directs DENR to transfer $1 million of funds available for water resource projects to the Division of Soil and Water Conservation to implement the Agricultural Water Resources Assistance Program.

    CONTRACT TO OUTSOURCE GIFT SHOPS AT NC ZOO TO DIRECT PROFITS TO ZOO FUND
    SECTION 13.24. Directs DENR to enter into a contract for the operation of at least three of the gift shops located at the North Carolina Zoological Park. Provides that any profits from the contract must be credited to the Special Zoo Fund created under GS 143B-336.1.

    TRANSFER FORESTRY DIVISION AND FORESTRY COUNCIL FROM DENR TO DACS.
    SECTION 13.25. Transfers the Division of Forest Services from the Department of Environment and Natural Resources (DENR) to the Department of Agriculture and Consumer Services (DACS) as a Type I transfer, effective July 1, 2011. Under GS 143A-6, a Type I transfer means all agency functions, personnel, funds, authority, and related matters are transferred to the new department, and powers and duties are transferred to the head of the new department. Also transfers the Forestry Council from DENR to DACS as a Type II transfer, meaning that the agency is administered by the head of the new department, and management functions are performed under the direction of the new department head, but the agency continues to exercise statutory powers independent of the department head. Recodifies relevant provisions currently in GS Chapter 113 (Conservation and Development) and GS Chapter 143B, in GS Chapter 106 (Agriculture), and makes conforming statutory changes to effectuate the transfer in various Chapters of the General Statutes. Amends GS 106-22 to include forest maintenance, protection, restoration and fire prevention as duties of the Commissioner and Board of Agriculture, as well as the authority to acquire property for performance of those duties when approved by the Governor and the Council of State. Enacts new GS 143A-65.1, stating that DACS has charge of the work of forest maintenance, forest fire prevention, reforestation, and the protection of lands and water supplies, as well as the care of state forests. Directs the Revisor of Statutes to make conforming statutory changes and corrections as required to reflect the transfer. Specifies that the transfers under the section become effective July 1, 2011, with funds transferred as net of any changes enacted by the section.

    CLEAN WATER MANAGEMENT TRUST FUND.
    SECTION 13.26. Repeals GS 113A-253.1, which currently provides for $100 million annual appropriation from the General Fund to Clean Water Management Trust Fund (Trust Fund). Provides that of funds appropriated to the Trust Fund in the budget bill (a) $3 million is to be used each year for operating costs of administering fund and debt retirement, (b) $1 million is to be used each year as matching funds for federal Readiness and Environmental Protection Initiative, and (c) $6 million is to be used each year for costs of wastewater and water quality restoration projects, minigrants and stormwater projects. Specifies that funds are not to be used for land acquisition except for the $1 million appropriated for matching funds under (b). Any additional funds that become available are to be used for purposes listed in (a) and (c) above.

    NEW FUNDING SOURCE FOR WILDLIFE RESOURCE COMMISSION OPERATING BUDGET.
    SECTION 13.27. Repeals GS 105-164.44B, which currently provides for the Secretary of Revenue to transfer to the Wildlife Resources Fund a specified amount of sales tax revenue each year. Directs Office of State Budget and Management, State Controller, and Wildlife Resources Commission to effectuate the transition of commission from receiving sales tax revenue to an $18.5 million operating budget from General Fund.

    ANNUAL REPORT TO GOV OPS ON WILDLIFE RESOURCES FUND EXPENDITURES
    SECTION 13.28. Amends GS 143-250 to require the Wildlife Resources Commission to report to the Joint Legislative Commission on Governmental Operations by October 1 of each year on expenditures from the previous year and plans for current fiscal year. First report due by October 1, 2011.

    ANNUAL APPROPRIATIONS FOR BEAVER DAMAGE CONTROL PROGRAM FROM FUNDS AVAILABLE TO THE WILDLIFE RESOURCES COMMISSION
    SECTION 13.29. Amends GS 113-291.10(f) to eliminate provision requiring that Wildlife Resources Commission must pay at least $349,000 each year for beaver damage control program, stating instead that commission is to pay for program as funds are appropriated.

    PART XIV. DEPARTMENT OF COMMERCE.

    NER BLOCK GRANTS
    SECTION 14.1. Provides that appropriations from federal block grant funds for 2011-12 are allocated as follows: $1 million for state administration; $450,000 for state technical assistance; $8 million for scattered site housing; $7.21 million for economic development; $3 million for small business/entrepreneurship; $5 million for NC Catalyst; $19.74 million for infrastructure; and $600,000 for capacity building. Increases and decreases based on federal funding are to be proportionate. Specifies limitations. Requires Department of Commerce to consult with Joint Legislative Commission on Governmental Operations before reallocating funds except in certain emergencies, and requires report by September 1, 2011, on the use of funds in the previous fiscal year, including list and description of grantees.

    ONE NORTH CAROLINA FUND
    SECTION 14.2. Provides that Department of Commerce (Department) may not use more than $250,000 each year for administrative costs of One North Carolina Fund. Also provides that the Department may use up to $250,000 of One North Carolina Fund appropriations for 2011-12 for establishment of electronic database, and enacts new Article 10 of GS Chapter 143B setting out details of database. Database to be available to public on Internet and to list each business granted discretionary economic development incentive since January 1, 2005, with various specifications as to exact data to be provided, including name and address of business, names of state officials with further information, source of funds, intended use of funds, competing government entities, jobs created or retained, and cost per job. Beginning January 1, 2012, the Department is to include specified additional information in database, including number of projects meeting job goals, average wages, total jobs retained and created, costs per job, and percentage of businesses meeting job goals. Also requires quarterly reports of database information from Department to Joint Legislative Commission on Governmental Operations and the Program Evaluation and Fiscal Research divisions, with trends in job creation and wage goals plus actions taken on grantees where clawbacks are in force.

    STATUS OF TRAVEL AND TOURISM IN NC/ANNUAL REPORT
    SECTION 14.3. Amends GS 143B-434.2(d) to require that the Division of Tourism, Film and Sports Development report to General Assembly by October 15 of each year rather than January 15, with first report due October 15, 2011.

    EMPLOYMENT SECURITY COMMISSION FUNDS
    SECTION 14.4(a). Provides that funds from the Employment Security Commission Reserve Fund may be used by the Commission as collateral for federal funds to pay administrative costs of collection of fund surcharge. Limits administrative costs paid from fund for 2011-12 to $2.5 million.
    SECTION 14.4(b). Appropriates $20 million from the Employment Security Commission Reserve Fund to the Commission for 2011-12 as follows: $19.5 million for operation of local offices; $200,000 to track former participants in state education and training programs; $300,000 to employ Common Follow-Up Management Information System to evaluate effectiveness of training, education, and placement programs.
    SECTION 14.4(c). Appropriates $1 million from Reserve to Commission for 2011-12 for state initiatives not funded through federal grants.
    SECTION 14.4(d). Appropriates $1 million from Worker Training Trust Fund to Commission for fiscal 2011-12 to fund Opportunity NC, and specifies standards training must meet.
    SECTION 14.4(e). Authorizes Commission to spend $205,063,552 from NC account in federal Unemployment Trust Fund as follows: $100 million to design and build integrated unemployment insurance benefit and tax accounting system, and remainder for operation of unemployment insurance program.

    TRANSFER EMPLOYMENT SECURITY COMMISSION TO DEPARTMENT OF COMMERCE
    SECTION 14.5. Transfers Employment Security Commission to Department of Commerce as Type I transfer under GS 143A-5, meaning all personnel, budget, property, and functions are transferred to new Department and are under the control of the head of the new Department.

    TRANSFER STATE PORTS AUTHORITY FROM DEPARTMENT OF COMMERCE TO DEPARTMENT OF TRANSPORTATION
    SECTION 14.6. Transfers State Ports Authority to Department of Transportation as Type I transfer under GS 143A-6. Recodifies present statutes governing the Authority in GS Chapter 143B as new Article 20 in Chapter 136, and makes conforming changes in various sections of GS Chapter 120, 143, 143B, and 146. Directs the Secretary of Transportation to fill the first Authority vacancy occurring after July 1, 2011.

    STUDY COSTS OF SERVICES PROVIDED BY DEPARTMENT OF COMMERCE TO AGENCIES IN THE DEPARTMENT OF COMMERCE
    SECTION 14.7. Requires Department of Commerce, in consultation with Fiscal Research Division, to study and report by May 1, 2012, to specified appropriations committees on types and costs, and formulas for determining costs, of services provided by the Department to ABC Commission, State Banking Commission, Credit Union Division, Cemetery Commission, Utilities Commission, Utilities Commission Public Staff, and Rural Electrification Authority. Requires Department and agencies to recommend formula to be used for allocating costs and to enter agreement on services to be provided.

    INDUSTRIAL COMMISSION FEES/COMPUTER SYSTEM REPLACEMENT
    SECTION 14.8. Authorizes Industrial Commission to retain revenue from increase in fee for filing compromised settlements over former $200 fee, and use money to replace hardware and software and assess needs for purchases for and to develop Electronic Case Management System, including two time-limited positions for application development and support and mainframe migration.

    SET REGULATORY FEE FOR UTILITIES COMMISSION
    SECTION 14.9. Sets .12% as percentage rate to calculate public utility regulatory fee under GS 62-302(b)(2) for each quarter beginning July 1, 2011, or later. Sets electric membership corporation regulatory fee under GS 62-302(b1) at $200,000 for fiscal 2011-12. Effective July 1, 2011.

    STATE-AID REPORTING REQUIREMENTS
    SECTION 14.10. Requires NC Association of Community Development Corps., NC Institute of Minority Economic Development, FFA Foundation, Ag in the Classroom, Land Loss Prevention Project, NC Minority Support Center, NC Community Development Initiative, Councils of Government, e-NC Authority, High Point Market Authority and Partnership for the Sounds to report to Joint Legislative Commission on Governmental Operations and Fiscal Research by September 1 of each year on the previous year’s activities, accomplishments, and itemized expenditures, along with annual audited financial statement. Prohibits allotments after September 1 to any nonprofit organization that fails to report, and prohibits any organization from using more than $120,000 in state funds for annual salary of any one employee.

    GRASSROOTS SCIENCE PROGRAM
    SECTION 14.11. Transfers Grassroots Science Program from Department of Environment and Natural Resources to Department of Commerce. Allocates $2,899,885 of department appropriations for each year to 27 named local museums, science centers, nature centers, and parks in specified amounts. Requires the Department of Commerce to report to Fiscal Research by March 1 of each year on actual and proposed operating budget and attendance for the previous fiscal year for each museum receiving funds. Requires museum to submit certain documents by November 1 of each year to be eligible for funding. Prohibits museum from using more than $120,000 in state funds for annual salary of any one employee.

    WAKE FOREST INSTITUTE FOR REGENERATIVE MEDICINE/PROFIT SHARING WITH STATE
    SECTION 14.12. Provides that Wake Forest Institute for Regenerative Medicine may not receive state funds until it enters agreement with state to share profits from investments made with state funds. Requires agreement to be submitted to Joint Legislative Commission on Governmental Operations by January 15, 2012. Also requires annual reports from Institute and annual audited financial statement and prohibits Institute from using more than $120,000 in state funds for annual salary of any one employee.

    REGIONAL ECONOMIC DEVELOPMENT COMMISSIONS ALLOCATIONS
    SECTION 14.13. Sets out formula for allocating funds appropriated for regional economic development commissions based on sum of allocations for each county in regional commission as determined by the development factor calculated under GS 143B-437.08, except that $174,890 is to be subtracted from funds for Eastern Region Economic Development Partnership for 2011-12 for interest on appropriations to Global TransPark Development Zone, with that amount to be allocated to other regional commissions. Prohibits each commission from using more than $120,000 in state funds for annual salary of any one employee. Also encourages commissions to seek funding from cities and counties.

    BIOFUELS CENTER OF NORTH CAROLINA
    SECTION 14.14. Allocates for specified functions the $4.5 million appropriated for each year of the biennium to Biofuels Center and requires Center to report by September 1 of each year to Joint Legislative Commission on Governmental Operations and Fiscal Research on prior year’s activities, accomplishments and itemized expenditures, along with annual audited financial statement. Prohibits Center from using more than $120,000 in state funds for annual salary of any one employee.

    NORTH CAROLINA BIOTECHNOLOGY CENTER
    SECTION 14.15. Allocates for specified functions the $17,551,710 appropriated for each year of the biennium to the NC Biotechnology Center and requires Center to report by September 1 of each year to Joint Legislative Commission on Governmental Operations and Fiscal Research on prior year’s activities, accomplishments and itemized expenditures, along with annual audited financial statement. Prohibits Center from using more than $120,000 in state funds for annual salary of any one employee.

    RURAL ECONOMIC DEVELOPMENT CENTER
    SECTION 14.16. Allocates for specified functions the $3,583,691 appropriated to the Rural Economic Development Center for each year of biennium. Provides that a community development corporation may not receive grant if it has outstanding tax assessment or collection action. Specifies qualifications of community development corporations, including incorporation under GS Chapter 55A, tax-exempt status under 501(c)(3), and mission to develop and improve low-income communities in Tier 1 counties. Requires Center to report same budget, personnel, and salary information to Office of State Budget and Management as state agencies. Sets preference for NC resident companies in award of grants, and priority for economically distressed areas. Requires report by September 1 of each year to Joint Legislative Commission on Governmental Operations and Fiscal Research on previous year’s activities, accomplishments and itemized expenditures. Prohibits Center from using more than $120,000 of state funds for salary of any one employee.

    RURAL ECONOMIC DEVELOPMENT CENTER/INFRASTRUCTURE PROGRAM
    SECTION 14.17. Specifies that $16,505,758 of funds appropriated to the Rural Economic Development Center for each year of the biennium are to be allocated to continue NC Infrastructure Program; to provide matching grants to local governments in distressed areas to reuse vacant properties, with priority to towns of less than 5,000; and to provide technical assistance grants for towns of less than 7,500. Requires recipients of grants to provide 5% cash match. Requires Center to give preference to NC resident companies and priority for projects in economically distressed areas. Authorizes Center to use up to $329,178 of funds each year for administration of the Economic Infrastructure Program. Requires report by September 1 of each year to Joint Legislative Commission on Governmental Operations and Fiscal Research on the progress of Economic Infrastructure Program.

    OPPORTUNITIES INDUSTRIALIZATION CENTERS FUNDS
    SECTION 14.18. Provides that $287,280 of funds appropriated to Rural Economic Development Center for each year of the biennium is to be equally distributed to certified Opportunities Industrialization (OI) Centers; that Center is to report by September 1 of each year to Joint Legislative Commission on Governmental Operations and Fiscal Research on activities, accomplishments and itemized expenditures of each OI Center; that Rural Center is to assure compliance of each OI Center with audit and reporting requirements; and that no funds are to be released to OI Center with overdue tax debt.

    PART XV. JUDICIAL DEPARTMENT

    GRANT FUNDS
    SECTION 15.1. Authorizes the Administrative Office of the Courts (AOC) to use up to $1.5 million to provide the state match for federal grant funds. Requires reporting prior to use of these funds.

    TRANSFER OF EQUIPMENT AND SUPPLY FUNDS
    SECTION 15.2. Requires that funds appropriated to the Judicial Department (Department) in 2011 13 for equipment and supplies be certified in a reserve account. Allows the AOC to transfer these funds to and between programs as equipment priorities and supply consumptions occur. Funds may not be expended for any other purpose.

    REIMBURSEMENT FOR USE OF PERSONAL VEHICLES
    SECTION 15.3. Authorizes the Department, during 2011 13, to elect to establish a per mile reimbursement rate for transportation by privately owned vehicles at a rate less than the business standard mileage rate set by the Internal Revenue Service.

    COLLECTION OF WORTHLESS CHECK FUNDS
    SECTION 15.4. Authorizes the Department to use any balance remaining in the Collection of Worthless Checks Fund on June 30, 2011, for the purchase or repair of office or information technology equipment during 2011 12. Requires reporting prior to use of funds.

    DISPUTE RESOLUTION FEES
    SECTION 15.5. Amends GS 7A-38.2(d) to provide that certification and renewal fees collected by the Dispute Resolution Commission are nonreverting and only may be used as directed by the Commission.

    WORKLOAD FORMULA FOR SUPERIOR COURT JUDGES/MINUTES MAINTAINED BY THE CLERK OF SUPERIOR COURT TO RECORD CONVENING AND ADJOURNMENT OR RECESS OF COURT
    SECTION 15.6. Requires the AOC to use available funds to contract with the National Center for State Courts (NCSC) to develop a workload formula for superior court judges. Requires submission of the formula to the House and Senate Appropriations Subcommittees on Justice and Public Safety by a specified date. Amends G.S. 7A-109, adding a new subsection (a1) providing that the clerk’s minutes must record the date and time when court convenes, recesses, or adjourns. Requires the AOC to provide, on a monthly basis, the clerk’s minutes specified in GS 7A-109(a) to the NCSC, the Fiscal Research Division, and the Study Committee on Consolidation of Judicial and Prosecutorial Districts.

    STUDY FEASIBILITY OF OFFICE OF PROSECUTORIAL SERVICES
    SECTION 15.7.(a). Requires the UNC School of Government to study the feasibility and cost of creating an Office of Prosecutorial Services. Specifies study contents and requires reporting by April 1, 2012.
    SECTION 15.7.(b). Authorizes the Conference of District Attorneys to use funds available during 2011-12 to contract for services to analyze the differences between budgeted and actual position and associated costs in prosecutors' offices.

    ENSURE MINIMUM NUMBER OF CLERK OF COURT STAFF
    SECTION 15.8. Amends GS 7A-102(a) to provide that no superior court clerk’s office may have fewer than five total staff positions in addition to the elected clerk of superior court.

    STUDY INFRACTIONS AND WAIVABLE OFFENSES
    SECTION 15.9. Requires the Revenue Laws Study Committee to study the penalties and fines for infractions and waivable offenses and determine whether the current amounts are appropriate for the offenses. Requires reporting.

    WAIVER OF CRIMINAL COURT COSTS ONLY WHEN JUDGE MAKES FINDING OF JUST CAUSE TO GRANT WAIVER
    SECTION 15.10.(a). Amends GS 7A-304(a), deleting language providing that costs may be assessed and collected only when the judgment imposing an active prison sentence specifically so provides. Adds a provision that costs may not be waived unless the judge makes a written finding of just cause to grant such a waiver.
    SECTION 15.10.(b). Requires the AOC to modify its information systems to maintain records of all cases in which the judge grants a waiver of criminal court costs under GS 7A-304(a) and requires reporting.

    STUDY CONSOLIDATION OF JUDICIAL AND PROSECUTORIAL DISTRICTS
    SECTION 15.11. Creates a 10-member Study Committee on Consolidation of Judicial and Prosecutorial Districts. Requires the Committee to study the number and structure of judicial and prosecutorial districts and make recommendations to reduce those districts as specified. Requires reporting.

    COMMUNITY MEDIATION CENTERS/WORTHLESS CHECK PROGRAMS
    SECTION 15.12. Amends GS 14-107.2, adding a new subsection (b1) providing that a community mediation center may establish and charge fees for its services in the collection of worthless checks and may assist the AOC and district attorneys in establishing worthless check programs. Enacts GS 7A-38.7(a1) allowing a community mediation center to establish and charge fees for its services.

    INCREASE CERTAIN COURT COSTS.
    SECTION 15.13(a). Amends GS 7A-304(a)(4) to increase costs in criminal cases from $100.50 to $124.50 in district court, and from $102.50 to $154.50 in superior court. Reduces the amount remitted to the State Bar for services specified by GS 7A-474.4 from $2.05 to $1.00.
    SECTION 15.13.(b). Amends GS 7A-305(a)(2) to increase costs in civil cases from $125 to $180 in superior court, from $80 to $130 in district court, and from $55 to $80 for cases heard by a magistrate. Reduces the amount remitted to the State Bar for services specified by GS 7A-474.4 from $2.05 to $1.00. Enacts GS 7A-305(a5) providing that in every civil action in superior or district court where a party files a pleading containing a counterclaim or cross-claim (subject to an exception), the following shall be assessed: (1) For the use of the courtroom and related judicial facilities, $12 in cases before a magistrate, and $16 in district and superior court; (2) For the upgrade, maintenance, and operation of the judicial and county courthouse phone systems, $4, to be credited to the Court Information Technology Fund; (3) for support of the General Court of Justice, $180 in the superior court, except that a complex business case must pay an additional $1,000, and $130 in the district court, except that if the case is assigned to a magistrate, the sum is $80. Requires $1 of each fee to be provided to the State Bar for services under GS 7A-474.4 and $.95 for services under GS 7A-474.19. Enacts GS 7A-305(f) providing that for the support of the General Court of Justice, $20 shall accompany any motion not listed in GS 7A-308 that is filed with the clerk.
    SECTION 15.13.(c). Amends GS 7A-306(a)(2) to increase costs in special proceedings from $75 to $106. Reduces the amount remitted to the State Bar from $2.05 to $1.00 of each fee collected for services under GS 7A-474.4. Enacts GS 7A-306(g) providing that for the support of the General Court of Justice, $20 shall accompany any motion not listed in GS 7A-308 that is filed with the clerk.
    SECTION 15.13.(d). Amends GS 7A-307(a)(2) increasing costs in the administration of estates and trusts under wills and other matters from $75 to $106. Reduces the amount remitted to the State Bar for services specified by GS 7A-474.4 from $2.05 to $1.00. Enacts GS 7A-307(a)(4) providing that for the support of the General Court of Justice, $20 shall accompany any motion not listed in GS 7A-308 that is filed with the clerk.
    SECTION 15.13.(e). Amends GS 7A-308(a) to increase fees for foreclosure under power of sale in deed of trust or mortgage from $150 to $300. Enacts GS 7A-308(a)(21) providing that in civil matters, all alias and pluries summons issued and all endorsements issued on an original summons incur a fee of $15.
    SECTION 15.13.(f) Repeals GS 7A 34.1 (unnecessary cover sheets).

    CONTINGENT COURT COST INCREASES FOR COUNTIES
    SECTION 15.14. Provides that if House Bill 642 or substantially similar legislation requiring a misdemeanant with a period of confinement of six months or less to serve the period in a local confinement facility becomes law, then (1) GS 7A 304(a)(2) is amended to increase the fee for the use of the courtroom and related judicial facilities in district court from $12 to $30; (2) GS 7A 304(a)(4b) is enacted requiring $50 for all offenses arising under GS Chapter 20 resulting in a conviction of an improper equipment offense to be remitted to the Department of Correction; (3) GS 7A 311(a)(1)a. is amended increasing the fees for each item of civil process served from $15 to $30 and increasing the fee when two or more items of civil process are served simultaneously on one party at the same level; (4) GS 7A-313 is amended to increase the jail fee from $5 to $10; and (5) GS 153A 225(a) is amended to increase the fee per incident for nonemergency care to prisoners from $10 to $20.

    INCREASE INTERSTATE COMPACT FEE
    SECTION 15.15. As title indicates, amends GS 148 65.7(a) to increase the fee from $150 to $250.

    OFFICE OF INDIGENT DEFENSE SERVICES EXPANSION FUNDS/EXPANSION OF PUBLIC DEFENDER OFFICES/STATEWIDE PUBLIC DEFENDER OFFICES
    SECTION 15.16.(a) Authorizes the Office of Indigent Defense Services (IDS) to use up to $2,150,000 during 2011 12 for the expansion of existing offices, creation of new public defender offices within existing public defender programs, or establishment of regional public defender programs. Authorizes IDS to use a portion of these funds to create positions within existing programs to handle cases in adjacent counties or districts. Funds may be used to create up to 50 new attorney positions and 25 new support staff positions in 2011 12, and for the salaries, benefits, equipment, and related expenses for these positions. Reporting required prior to use of funds.
    SECTION 15.16(b). Amends GS 7A-498.7(b) to provide that IDS makes appointments to fill public defender vacancies (was, a judge).
    SECTION 15.16(c). Amends GS 7A-498.7(a), deleting the provision about IDS recommendations that district or regional public defender offices be established and stating that a legislative act is required to establish a new office or to abolish an existing office.
    SECTION 15.16(d). Amends GS 7A-498.7(a), which specifies the organization of counties into defender districts, by consolidating some districts and creating others. Provides that IDS must establish positions necessary to staff public defender offices using funds available.
    SECTION 15.16(e). Provides that subsection (c) of this section becomes effective July 1, 2012, and that the remainder of this section becomes effective July 1, 2011.

    OFFICE OF INDIGENT DEFENSE SERVICES REPORT
    SECTION 15.17. Requires reporting by IDS, as specified.

    AUDIT OF FARMWORKER LEGAL AID PROGRAM
    SECTION 15.18. Requires the State Auditor to conduct a financial audit of the Farmworker Legal Aid program of Legal Aid of North Carolina; specifies content of such audit and requires it to be published before October 1, 2011.

    PART XVI. DEPARTMENT OF JUSTICE

    USE OF SEIZED AND FORFEITED PROPERTY TRANSFERRED TO STATE LAW ENFORCEMENT AGENCIES BY THE FEDERAL GOVERNMENT
    SECTION 16.1.(a) Provides that assets transferred to the Departments of Justice, Correction, and Crime Control and Public Safety in 2011 13 pursuant to federal law shall be credited to the budgets of the respective departments and shall result in an increase of law enforcement resources for those departments. Requires reporting.
    SECTION 16.1.(b) Because assets transferred pursuant to federal law for new personnel positions, new projects, acquisition of real property, repair of buildings where the repair includes structural change, and construction of or additions to buildings may result in additional expenses for the state in future fiscal periods, prohibits the Departments of Justice, Correction, and Crime Control and Public Safety from using these assets for such purposes without the General Assembly’s prior approval.
    SECTION 16.1.(c) Provides that North Carolina law enforcement agencies may receive funds from the U.S. Departments of Justice, Treasury, and Health and Human Services.

    PURCHASE OF TIME MANAGEMENT SOFTWARE
    SECTION 16.2. Requires the Department of Justice to use funds available to purchase, or purchase licenses for, time management software to be used to ensure adequate record keeping and management of Department attorneys' time.

    PRIVATE PROTECTIVE SERVICES AND ALARM SYSTEMS LICENSING BOARDS PAY FOR USE OF STATE FACILITIES AND SERVICES
    SECTION 16.3. Enacts GS 74C 4(h) providing that the licensing Board shall pay the appropriate state agency for the use of physical facilities and services provided to it by the state. Makes the same amendment to GS 74D 4.

    CERTAIN LITIGATION EXPENSES TO BE PAID BY CLIENTS
    SECTION 16.4. Amends GS 114 8.2 to provide that client state departments, agencies, boards, and commissions must reimburse the Department of Justice for reasonable court fees, attorney travel and subsistence costs, and other costs directly related to litigation in which the Department of Justice is representing the department, agency, or board.

    HIRING OF SWORN STAFF POSITIONS FOR THE STATE BUREAU OF INVESTIGATION
    SECTION 16.5. Provides that the Department of Justice may hire sworn personnel to fill vacant positions in the State Bureau of Investigation only in specified circumstances.

    PART XVII. DEPARTMENT OF JUVENILE JUSTICE AND DELINQUENCY PREVENTION

    STATE FUNDS MAY BE USED AS FEDERAL MATCHING FUNDS
    SECTION 17.1. Provides that funds appropriated to the Department of Juvenile Justice and Delinquency Prevention (the DJJDP) in 2011 2012 may be used as matching funds for Juvenile Accountability Incentive Block Grants. Requires that the Office of State Budget and Management and the Governor's Crime Commission consult with the DJJDP regarding the criteria for awarding federal funds. Requires reporting.

    ANNUAL EVALUATION OF COMMUNITY PROGRAMS
    SECTION 17.2. Requires the DJJDP to evaluate wilderness camp programs and multipurpose group homes. Specifies contents and requires reporting.

    ALLOCATE REALIZED SAVINGS OF WILDERNESS CAMPS TO FUND CERTAIN LEVEL 2 INTERMEDIATE DISPOSITIONAL ALTERNATIVES FOR JUVENILES
    SECTION 17.3. Provides that if any funds appropriated for 2011 13 for wilderness camps are not required for or expended for that purpose, they must be allocated to the Juvenile Crime Prevention Council grants fund to be used for the Level 2 intermediate dispositional alternatives for juveniles listed in GS 7B 2506(13) through (23). Requires reporting on all expenditures made from the miscellaneous contract line in Fund Code 1310, as detailed.

    JUVENILE CRIME PREVENTION COUNCIL FUNDS
    SECTION 17.4.(a) Requires the DJJDP to report grant recipients, as specified.
    SECTION 17.4.(b) Provides that of funds for 2011 12 appropriated to the DJJDP for Juvenile Crime Prevention Council grants, $121,600 must be transferred to Project Challenge North Carolina, Inc., for the continued support of Project Challenge programs.

    FUNDING FOR JUVENILE JUSTICE AND DELINQUENCY PREVENTION EDUCATION PROGRAMMING
    SECTION 17.5. Requires the DJJDP to work with the Department of Public Instruction to identify all education fund sources that can be used to cover DJJDP education programming costs. Requires reporting.

    DJJDP AND DOC JOINT EFFORT TO MAKE IN HOME MONITORING AVAILABLE AS ALTERNATIVE TO DETENTION FOR JUVENILES
    SECTION 17.6. Requires the DJJDP and the Department of Correction to work together to increase the use of in home monitoring as an alternative to detention for juveniles. Specifies areas of focus and requires reporting.

    TREATMENT STAFFING MODEL AT YOUTH DEVELOPMENT CENTERS
    SECTION 17.7. Requires the Department to implement a specified staffing treatment model. Caps staffing levels at new youth development centers for 2011 13 and sets staffing ratios.

    YOUTH DEVELOPMENT CENTER ANNUAL REPORT
    SECTION 17.8. Requires the DJJDP to report on the Youth Development Center population, staffing, and capacity in the preceding fiscal year. Specifies report contents.

    DJJDP FACILITY MONTHLY COMMITMENT REPORT
    SECTION 17.9. Requires the DJJDP to report monthly regarding each juvenile correctional facility and the average daily population for the previous month. Specifies report contents.

    USE OF INMATE LABOR FOR REPAIR AND RENOVATION OF YOUTH DEVELOPMENT CENTERS
    SECTION 17.10. Requires the DJJDP and the Department of Correction in consultation with the Governor's Crime Commission to establish policies regarding the appropriate use of inmate construction crews.

    ALLOCATE FUNDS FOR REPAIRS AND RENOVATIONS TO STONEWALL JACKSON AND C.A. DILLON YOUTH DEVELOPMENT CENTERS
    SECTION 17.11. Provides that of the funds appropriated to the DJJDP for 2011 12, $2,330,900 shall be allocated to the Stonewall Jackson Youth Development Center, and $1,531,000 shall be allocated to the C.A. Dillon Youth Development Center to be used for certain repairs and renovations. This allocation is separate from and in addition to any allocation of funds that might be made pursuant to Section 30.5 of this act.

    PART XVIII. DEPARTMENT OF CORRECTION

    FEDERAL GRANT REPORTING
    SECTION 18.1. Requires the Departments of Correction, Justice, Crime Control and Public Safety, and Juvenile Justice and Delinquency Prevention and the Judicial Department to report annually by May 1 on federal grant funds received or preapproved for receipt.

    FEDERAL GRANT MATCHING FUNDS
    SECTION 18.2. Authorizes the Department of Correction (Department) to use up to $1.2 million in 2011 12 and $1.2 million in 2012 13 for the state match for federal grant funds. Requires reporting before using funds.

    USE OF CLOSED PRISON FACILITIES
    SECTION 18.3. Requires the Department to consult with specified government entities and officials when closing prison facilities and to give priority to converting units to other criminal justice uses when considering proposals for future use. Allows the state to transfer or lease units. Authorizes the Department to consider converting units recommended for closing from one security custody level to another, when cost-effective. Exempts units under lease as a county jail from certain Secretary of Health and Human Services standards.

    LIMIT USE OF OPERATIONAL FUNDS
    SECTION 18.4. Funds appropriated for operational costs for additional facilities must be used for personnel and operating expenses as set forth in the budget. Funds may not be expended for any other purpose, except as provided. Funds may not be expended for additional prison personnel positions until the new facilities are within 120 days of projected completion, subject to a specified exception.

    REIMBURSE COUNTIES FOR HOUSING AND EXTRAORDINARY MEDICAL COSTS FOR INMATES, PAROLEES, AND POST RELEASE SUPERVISEES AWAITING TRANSFER TO STATE PRISON SYSTEM
    SECTION 18.5. Authorizes the Department to use funds in 2011 13 to pay $40 per day to counties for the cost of housing convicted inmates, parolees, and post release supervisees awaiting transfer to the state prison system. Requires reporting on the expenditure of funds to reimburse counties for prisoners awaiting transfer and on progress in reducing the jail backlog.

    CENTER FOR COMMUNITY TRANSITIONS/CONTRACT AND REPORT
    SECTION 18.6. Authorizes the Department to continue to contract with The Center for Community Transitions, Inc. for the purchase of prison beds for minimum security female inmates in 2011 13. Requires reporting.

    PAROLE ELIGIBILITY REPORT/MUTUAL AGREEMENT PAROLE PROGRAM/MEDICAL RELEASE PROGRAM
    SECTION 18.7. Requires the Post Release Supervision and Parole Commission to analyze the amount of time inmates eligible for parole on or before July 1, 2012, have served compared to the time served by offenders under Structured Sentencing. Requires the Commission to determine if the person has served more time in custody than he or she would have served if sentenced to the maximum sentence under GS Chapter 15A, Article 81B. Provides rules for calculating the maximum sentence. Specifies reporting requirements.

    CRIMINAL JUSTICE PARTNERSHIP
    SECTION 18.8. Authorizes a county to use Criminal Justice Partnership Act funds to provide more than one community based corrections program. Effective July 1, 2011, requires the Department to recalculate the county allocation funding formula using updated data. Authorizes the Department to reallocate unspent or unclaimed funds distributed to counties to maintain the level of services realized in previous fiscal years. The Department may not deny funds to a county to support both a residential program and a day reporting center if the Department determines that the county has a demonstrated need and a fully developed plan for each type of sanction. Specifies reporting requirements.

    SWANNANOA CORRECTIONAL CENTER FOR WOMEN
    SECTION 18.9. Requires the Department to relocate the fence at Swannanoa Correctional Center for Women for specified purposes.

    INMATE MEDICAL COST CONTAINMENT
    SECTION 18.10. Requires the Department to reimburse providers and facilities providing approved inmate medical services outside the correctional facility the lesser amount of either 70% of the provider's then current prevailing charge or two times the then current Medicaid rate for any given service. The Department may audit any provider for specified purposes. Exempts certain vendors. Provides that the Department may contract with a provider for services at rates that provide greater documentable cost avoidance for the state than do the rates contained in this section or at rates that are less favorable to the state but that will ensure the continued access to care. Requires the Department to make every effort to contain inmate medical costs by making use of its own hospital and health care facilities. Puts restrictions on the use of other facilities and services. Requires the Department to make reasonable efforts to equitably distribute inmates among health care facilities. Requires the Department to make best efforts to limit the number of inmates at a single hospital to 9% of all inmates requiring hospitalization or hospital services on an annual basis beginning in 2011 12, subject to certain exceptions. Requires the Department to give preference to nearby health care facilities. Requires the Department to continue these efforts until it has reached a number which represents no more than 5% of all inmates requiring hospitalization or hospital services on an annual basis at any single hospital by July 1, 2013, subject to certain exceptions. Amends GS 131E 77 (hospital licensure requirements), adding a new subsection (a1) providing that as a condition of licensure, hospitals must accept inmates. Specifies reporting requirements.

    PART XIX. DEPARTMENT OF CRIME CONTROL AND PUBLIC SAFETY

    CONSOLIDATE THE DEPARTMENT OF CORRECTION, THE DEPARTMENT OF JUVENILE JUSTICE AND DELINQUENCY PREVENTION, AND THE DEPARTMENT OF CRIME CONTROL AND PUBLIC SAFETY INTO THE DEPARTMENT OF PUBLIC SAFETY

    CREATION OF DEPARTMENT
    SECTION 19.1.(a). Establishes the Department of Public Safety as a new executive department as title indicates.
    SECTION 19.1(b). Amends GS Chapter 143B, adding a new Article 5A specifying the organization and powers and duties of the new Department and the powers and duties of its Secretary. Establishes the new Department with five divisions: Adult Correction, Juvenile Justice, Law Enforcement, Emergency Services, and Administration. Specifies which former departments and divisions fall within the five divisions. New GS 143B-259.1 and GS 143B-259.2 specify the powers and duties of the new Department and its Secretary.

    CREATION OF STATUTORY PARTS AND SUBPARTS
    SECTION 19.1(c) through (f). Amends GS Chapter 143B, Article 5A, to add new parts pertaining to the Divisions of Law Enforcement, Emergency Services, and Administration.

    CHANGES TO STATUTORY REFERENCES TO AGENCIES
    SECTION 19.1 (g) through (q). Makes conforming changes to various statutes as title indicates.

    RECODIFICATION OF AFFECTED STATUTES
    SECTION 19.1(r) through (w). Makes changes as title indicates.

    OTHER SUBSTANTIVE CHANGES
    SECTION 19.1(y) through (aa). Makes conforming changes.
    SECTION 19.1(bb). Abolishes the Law Enforcement Support Services Division of the Department of Crime Control and Public Safety.
    SECTION 19.1(cc). Provides that the evidence warehouse operated by the Law Enforcement Support Services Division and all state owned personal property in or associated with the warehouse is reallocated to the NC State Crime Laboratory. Requires the Department of Justice to assume any lease to which the warehouse is subject.
    SECTION 19.1(cc1). Amends GS 114-16 to provide the NC State Crime Laboratory with the following additional powers and duties: to provide (1) central storage and management of evidence and creation and maintenance of a data-bank of statewide storage locations of postconviction evidence or other similar programs, (2) central storage and management of rape kits as specified, and (3) for the storage and management of evidence.

    CONFORMING CHANGES
    SECTION 19.1(dd) through (hhh). Makes conforming changes to various statutes. Amends GS 143B-272.78 to delete provisions regarding support provided by the Crime Control Division to the Governor’s Crime Commission.

    REPORTING AND EFFECTIVE DATE
    SECTION 19.1.(iii) Requires the Office of State Budget and Management, in consultation with the Departments of Juvenile Justice and Delinquency Prevention, Crime Control and Public Safety, Correction, and Justice, to report on progress implementing this section, as specified.
    SECTION 19.1.(jjj) Except for subsection (iii) on reporting, provisions are effective January 1, 2012. On and after that date, any references or directives in this act to the Department of Correction, the Department of Juvenile Justice and Delinquency Prevention, or the Department of Crime Control and Public Safety shall be construed to apply to the appropriate division of the Department of Public Safety pursuant to the departmental consolidation enacted by this section.

    PART XX. DEPARTMENT OF ADMINISTRATION

    STATE ENTITIES TO USE MAIL SERVICE CENTER AND AGENCY FOR PUBLIC
    TELECOMMUNICATIONS
    SECTION 20.1.(a) Rewrites GS 143-341(8) to allow all state agencies, departments, and
    institutions, including The University of North Carolina System, use of the established mail service center.
    Clarifies that the Employment Security Commission is not required to use the mail service center
    established.
    SECTION 20.1.(b) Adds new GS 143B-426.11A requiring the Agency for Public Telecommunications (Agency) to be the primary party with whom all state agencies, departments, and institutions, including the University of North Carolina system, may contract for media placement and the creation of media to be placed, unless the Agency determines it cannot fulfill the agency’s, department’s, or institution’s needs. The Governor and the Council of State may void any contract entered into contrary to this provision.

    TRANSFER OF NC HUMAN RELATIONS COMMISSION FROM DEPARTMENT OF ADMINISTRATION
    TO OFFICE OF ADMINISTRATIVE HEARINGS
    SECTION 20.2. Transfers, by Type I transfer, the North Carolina Human Relations Commission created pursuant to GS 143B-391, other than the Martin Luther King Jr. Commission created pursuant to GS 143B-426.34A, from the Department of Administration to the Office of Administrative Hearings. Makes conforming changes to GS 143B-391 and 143B-392.

    DOMESTIC VIOLENCE CENTER FUNDS
    SECTION 20.3. Directs the Department of Administration to administer the Domestic Violence
    Center Funds without limiting the number of grantees by county or other geographic limitation. Directs every domestic violence center in operation by the preceding July 1, which offers the services described in the statute and is a nonprofit corporation or a local government entity, to receive an amount that is equal to that received by all other grantees of the Fund.

    USE OF CAPITAL PROJECT CONTINGENCY FUNDS TO INCREASE THE SPEED AND EFFICIENCY
    OF THE STATE CONSTRUCTION OFFICE
    SECTION 20.4.(a) Directs that contingency reserve funds appropriated for capital improvement
    projects that are subject to the Department of Administration's review authority under GS 143-341(3)a. be placed in a statewide capital reserve administered by the Office of State Budget and Management. Permits the Governor to, when in the best interest of the state to do so, allocate funds from the reserve to the requesting agency to be used for any of the purposes for which contingency funds may permissibly be used. Specifies that under no circumstances may funds disbursed from the statewide capital reserve be used for a capital improvement project not previously authorized by the General Assembly.
    SECTION 20.4.(b) Provides that each fiscal year of the biennium, the Governor may reallocate a portion of the funds deposited in the reserve not to exceed $875,000 in any fiscal year to the State Construction Office in the Department of Administration to be used to support the staffing needs in connection with carrying out its design and plan review, construction, building code compliance, inspection, and related duties imposed by GS 143-341(3) and other provisions of the General Statutes to ensure timely and complete responses in an effort to reduce the need for the use of contingency fees.
    SECTION 20.4.(c) Makes this section effective when it becomes law, applicable to all open and active capital improvement projects, regardless of the source of funds.

    OFFICE OF STATE PERSONNEL/STUDY CENTRALIZED HUMAN RESOURCES FOR COUNCIL OF
    STATE OFFICES
    SECTION 20.5. Directs the Office of State Personnel, in conjunction with the Office of State Budget and Management, to report to the General Assembly and to the Fiscal Research Division on the feasibility of transferring the human resources management functions currently divided among the various Council of State offices and departments to be centralized under the Office of State Personnel. Establishes minimum guidelines for what the report must include. Directs the report to be done by the convening of the 2012 Regular Session of the 2011 General Assembly.

    TRANSFER THE LOBBYING SECTION OF THE SECRETARY OF STATE AND THE CAMPAIGN
    FINANCE DIVISION OF THE STATE BOARD OF ELECTIONS TO THE STATE ETHICS COMMISSION
    SECTION 20.6. Directs any pending proceedings of the State Board of Elections concerning
    campaign finance law violations, and any pending proceedings of the Secretary of State concerning
    lobbying law violations, be transferred to the State Ethics Commission. Amends GS 138A-10(a) to give the
    Ethics Commission the authority to hear the proceedings. Makes other conforming changes.

    ELIMINATE FUNDING FOR DEVELOPMENT OF SMART CARDS
    SECTION 20.7. Transfers $1 million from the E-Commerce Reserve Fund to the General Fund to support appropriations made in this act.

    PART XXI. DEPARTMENT OF CULTURAL RESOURCES

    TRANSPORTATION MUSEUM SPECIAL FUND
    SECTION 21.1. Establishes the North Carolina Transportation Museum Fund and describes such fund, monies credited to the fund, emergency reserve, and audit procedures, by enacting new GS 121-7.6.

    ROANOKE ISLAND COMMISSION FUNDING/HISTORICAL ROANOKE ISLAND FUND
    SECTION 21.2.(a) Provides that the Roanoke Island Commission will receive state funds through the 2011-12 fiscal year and that beginning with the 2012-13 fiscal year the Roanoke Island Commission must be self-supporting.
    SECTION 21.2.(b) Directs all funds and assets in the Outer Banks Island Farm Fund be transferred to the Roanoke Island Commission Fund established in GS 143B-131.8.
    SECTION 21.2.(c) Amends GS 143B-131.8 by adding additional subsections which provide that, in particular and prescribed circumstances, the Commission may use funds from the principal and from the remaining 20% of the interest generated from the Roanoke Island Commission Endowment Fund. Specifies that such funds may not be used for capital expenditures. Makes other conforming changes.
    SECTION 21.2.(d) Rewrites GS 143B-131.2(b)(1) to provide that the local government with jurisdiction over the affected portion of the travel corridor will possess the applications for and issue the certificates of appropriateness. Also states that the local government will be responsible for the enforcement of those certificates and any rules that apply to the portion of the travel corridor within the jurisdiction of the local government. The local government will not be reimbursed by the Commission for carrying out these duties.
    SECTION 21.2.(e) Rewrites GS 143B-131.2(b)(10) by eliminating the requirement for the Commission to establish and maintain a separate fund for monies received from gifts, donations, grants, or bequests. Eliminates a provision that allows the Commission to transfer funds to the Friends of Elizabeth II, Inc. Adds a provision specifying that the balance of any unencumbered funds that were previously transferred to the Friends of Elizabeth II Inc. be used only for expenses as detailed.
    SECTION 21.2.(f) Transfers all funds held by the Roanoke Island Commission, including those credited to the Roanoke Island Commission Endowment Fund, to the Historical Roanoke Island Fund established in GS 143B-131.8A. Effective July 1, 2012.
    SECTION 21.2.(g) Rewrites GS 143B-131.1 to clarify that the Roanoke Island Commission is self-supporting. Effective July 1, 2012.
    SECTION 21.2.(h) Rewrites GS 143B-131.2(b)(14) to make conforming change. Effective July 1, 2012.
    SECTION 21.2.(i) Repeals GS 143B-131.8. Effective July 1, 2012
    SECTION 21.2.(j) Adds new GS 143B-131.8A, which establishes the Historical Roanoke Island Fund as a nonreverting fund, and describes its funding, purpose, and duties. Makes other conforming changes. Effective July 1, 2012.

    PART XXII. GENERAL ASSEMBLY

    PED STUDYING ADMINISTRATION OF STATE ATTRACTIONS
    SECTION 22.1. Directs the Program Evaluation Division (Division) to study and review state operations considered attractions in the state, and to recommend whether administration of such attractions can be consolidated in one Department or administrative unit. The Division must report its findings by March 30, 2012, to specified entities.

    PART XXIII. DEPARTMENT OF INSURANCE

    PERMISSIBLE USE OF INSURANCE REGULATORY FUND
    SECTION 23.1. Specifies that the Department of Insurance must not expend funds from the Insurance Regulatory Fund created under GS 58-6-25 for any purpose other than to reimburse the General Fund.

    NO BUDGET REDUCTION FOR CERTAIN STATE FIRE PROTECTION GRANT FUND RECIPIENTS
    SECTION 23.2. Provides that there is no reduction in funding under GS 58-85A-1 during the 2011-13 fiscal biennium for local fire districts and local governments that receive grant funding of $1,000 or less under that statute.

    PART XXIV. OFFICE OF ADMINISTRATIVE HEARINGS

    ACCESS TO REGISTER AND CODE
    SECTION 24.1. Rewrites GS 150B-21.24 to clarify that the Codifier of Rules must make the North Carolina Register available on the Internet at no charge and, upon request, provide a free copy of the current volume of the Register to any member of the General Assembly. Deletes provision allowing a free copy of the NC Administrative Code to specified parties.

    PART XXV. OFFICE OF STATE BUDGET AND MANAGEMENT

    TRANSFER STATE FIRE PROTECTION GRANT FUND
    SECTION 25.1. Rewrites GS 58-85A-1 to transfer the State Fire Protection Grant Fund from the Office of State Budget and Management to the Department of Insurance. Makes other conforming changes.

    NC SYMPHONY FUNDING
    SECTION 25.2. Appropriates, from the funds appropriated to the Office of State Budget and Management-Special Appropriations, $1.5 million in nonrecurring funds to the North Carolina Symphony for the 2011-12 fiscal year in three increments of $500,000, after specified non-state fundraising goals are achieved. Specifies that funds allocated pursuant to this section are in addition to any other funds allocated to the Symphony under this act.

    PART XXVI. STATE BOARD OF ELECTIONS

    NO EXPENDITURE OF HAVA TITLE II FUNDS FOR FEDERAL FY 2011-2012
    SECTION 26.1. Directs the State Board of Election to not expend any Help America Vote Funds (HAVA) Title II Funds for the 2011-12 fiscal year and, unless prohibited by federal law, retain those funds until Maintenance of Effort funds are appropriated.

    PART XXVII. DEPARTMENT OF THE STATE TREASURER

    LOCAL GOVERNMENT UNIT POSITIONS
    SECTION 27.1.(a) Rewrites GS 105-501(b) to clarify that Department of State Treasurer costs in the preceding month, which must be deducted and credited to the Department, also include the cost of the Local Government Division, and the cost for personnel and operations of the Local Government Commission.
    SECTION 27.1.(b) Rewrites GS 105-501(b), as rewritten by subsection (a) of this section, by removing the provision stating that 1/12th of the costs incurred by the state for the preceding fiscal year for personnel and operations provided by the Department of State Treasurer for the Local Government Commission are deducted and credited to the General Fund. Effective July 1, 2012.

    PART XXVIII. DEPARTMENT OF TRANSPORTATION

    CASH FLOW HIGHWAY FUND AND HIGHWAY TRUST FUND APPROPRIATION
    SECTION 28.1.(a) The General Assembly authorizes and certifies anticipated revenues for the Highway Fund as follows:
    For Fiscal Year 2013-2014 $1,996.5 million
    For Fiscal Year 2014-2015 $2,021.1 million
    For Fiscal Year 2015-2016 $2,040.5 million
    For Fiscal Year 2016-2017 $2,069.1 million
    SECTION 28.1.(b) The General Assembly authorizes and certifies anticipated revenues for the Highway Trust Fund as follows:
    For Fiscal Year 2013-2014 $1,041.0 million
    For Fiscal Year 2014-2015 $1,097.5 million
    For Fiscal Year 2015-2016 $1,128.7 million
    For Fiscal Year 2016-2017 $1,122.8 million

    CHANGES TO HIGHWAY FUND CERTIFIED BUDGET TO INCREASE TRANSPARENCY
    SECTION 28.2. Directs the Office of State Budget and Management (OSBM) to consult with the
    Department of Transportation, the Office of State Controller, and the Fiscal Research Division to
    implement changes to the Department of Transportation’s Highway Fund 2012-13 Fiscal Year
    Certified Budget to increase transparency by including object detail using the North Carolina
    Accounting System Uniform Chart of Accounts prescribed by the Office of the State Controller to
    provide a more detailed accounting of the proposed budgets and receipts and actual
    expenditures and revenue collections. These readjustments to the enacted budget are for the
    sole purpose of correctly aligning authorized positions and associated operating costs with the
    appropriate purposes and definitions as defined in GS 143C-1-1. The OSBM is to change the certified budget to reflect these adjustments only after reporting the proposed adjustments to the chairs of the Senate Appropriations Committee on Department of Transportation and the Chairs of the House Appropriations Subcommittee on Transportation and to the Fiscal Research Division by March 1, 2012. It is the intent of the General Assembly that these changes in the certified budget begin with the 2012-13 fiscal year and be used in subsequent fiscal years.

    REMOVE PILOT DESIGNATION FOR PUBLIC-PRIVATE PARTNERSHIPS
    SECTION 28.3. Rewrites GS 136-28.1 to remove the Department of Transportation’s (DOT) limit of two pilot contracts for public-private participation in providing litter removal from state right-of-way. Removes the DOT limit of two pilot contracts for public-private participation at state-owned rest areas. Makes other technical changes.

    REMOVE CAP ON DESIGN-BUILD PROJECTS
    SECTION 28.4. Rewrites GS 136-28.11 by allowing DOT to award unlimited contracts each fiscal year for the construction of transportation projects on a design-build basis (previously capped at 25 projects per fiscal year).

    STUDY SPONSORSHIP OPPORTUNITIES
    SECTION 28.5. Directs the DOT to study the sponsorship opportunities that may be available to the DOT to offset operational costs, including sponsorship of welcome centers, visitors centers, rest areas, ferry, and Incident Management Assistance Patrols. DOT to report the following to the Joint Legislative Transportation Oversight Committee by March 1, 2012: (1) the current cost of the suggested activities to be sponsored, (2) the potential receipts that could reasonably be collected through sponsorships, (3) suggested guidelines and process for selecting reasonable sponsors, (4) what sponsorships might look like once implemented, and (5) statutory or regulatory changes that may be necessary to effect the DOT’s proposed sponsorship changes.

    SMALL CONSTRUCTION AND CONTINGENCY FUNDS
    SECTION 28.6. Directs that funds appropriated to DOT be used for the following purposes:
    (1) Directs that $7 million be allocated in each fiscal year for small construction projects recommended by the State Highway Administrator in consultation with the Chief Operating Officer and approved by the Secretary of the DOT. These funds are to be allocated equally in each fiscal year of the biennium among the 14 Highway Divisions for small construction projects.
    (2) Directs that $5,169,020 be used statewide for rural or small urban highway improvements and related transportation enhancements to public roads and public facilities, industrial access roads, and spot safety projects, including pedestrian walkways that enhance highway safety. Projects funded pursuant to this subdivision must be approved by the Secretary of DOT.
    Specifies that none of these funds used for rural secondary road construction are subject to the county allocation formulas in GS 136-44.5(b) and (c).
    Specifies that these funds are not subject to GS 136 44.7.
    Directs DOT to report to the General Assembly on projects funded pursuant to this section in each member's district prior to construction. DOT also must make a quarterly comprehensive report on the use of these funds to the Joint Legislative Transportation Oversight Committee and the Fiscal Research Division.

    ADJUST SECONDARY ROAD CONSTRUCTION AND SECONDARY ROAD MAINTENANCE
    SECTION 28.7.(a) Directs that secondary road construction and secondary road maintenance funds from the Highway Fund must not increase over the amounts allocated in the 2011-12 and fiscal year 2012-13 base budgets.
    SECTION 28.7.(b) Directs that secondary road construction and secondary road maintenance funds from the Highway Trust Fund must not increase over the amounts allocated in the 2011-12 and fiscal year 2012-13 base budgets.
    SYSTEM PRESERVATION FUNDS PREFERENCE FOR DEFICIENT BRIDGES
    SECTION 28.8. Directs that the funds allocated to the system preservation program for 2011-12 and 2012-13 must be used for bridge improvements on structurally deficient bridges.

    INCREASE DOT PRIVATIZATION
    SECTION 28.9. Directs DOT to seek the use of contracts to further privatize design and engineering work where practical and economical by doing the following: (1) identify state-funded professional service contracts of $250,000 or less that are likely to attract increased participation by Small Professional Services Firms and direct the solicitation of applicable contracts to those firms, (2) expand the use of multiple contract awards for maintenance and repair projects, and (3) increase the outsourcing of preliminary engineering projects to 50% of the total funds in the annual work plan.

    STATE STREET-AID TO MUNICIPALITIES (POWELL BILL) ADJUSTMENTS
    SECTION 28.10.(a) Rewrites GS 136-41.1(a) to designate one-half of the amount appropriated under the statute to be allocated in cash on or before October 1 of each year to the cities and towns of the state in accordance with the statute. The second one-half of the amount appropriated under the statute must be allocated in cash on or before January 1 of each year to the cities and towns of the state in accordance with the statute.
    SECTION 28.10.(b) Adds new GS 136-41.2B providing that no municipality is eligible to receive funds under GS 136-41.1 unless the municipality maintains public streets that (1) are within its jurisdiction and (2) do not form a part of the state highway system.
    SECTION 28.10.(c) Directs that unexpended and unencumbered funds previously allocated to municipalities made ineligible by subsection (b) of this section be reallocated to eligible municipalities in accordance with GS 136-41.1.

    FERRY DIVISION TOLLING ON ALL ROUTES
    SECTION 28.11.(a) Rewrites GS 136-82 by adding that all ferry routes be tolled in an amount established by the Board of Transportation. Effective April 1, 2012.
    SECTION 28.11.(b) Directs the Board of Transportation (Board) to toll all ferry routes no later than the April 1, 2012, but encourages the Board to begin tolling all routes before such date. Directs the Board to consider the needs of commuters and other frequent passengers when establishing the tolls for ferry routes.

    STATE AID TO RAILROADS TRANSPARENCY
    SECTION 28.12. Repeals GS 136-44.20(d).

    STATE AID TO SHORT-LINE RAILROADS
    SECTION 28.13. Adds new GS 136-44.39 authorizing DOT to provide assistance to short-line railroads to continue and enhance rail service in the state. Assistance may involve both the Rail Industrial Access Program and the Short Line Infrastructure Access Program. Directs that grants under the statute must not exceed 50% of the nonfederal share and must be matched by equal or greater funding from the applicant.

    STUDY RAIL CONNECTION BETWEEN WILMINGTON AND FAYETTEVILLE
    SECTION 28.14. Directs DOT Rail Division (Division) to study the feasibility and cost of constructing a rail connection between Wilmington and Fayetteville. The Division must report its findings to the Joint Legislative Transportation Oversight Committee by March 1, 2012.

    REPORT, CONSULTATION, AND APPROVAL OF RAIL PROJECTS
    SECTION 28.15. Rewrites GS 136-44.36 by adding a new subsection (b) specifying that acceptance of federal funds by DOT for rail programs is subject to the following:
    (1) DOT must report the project details, including the amounts of federal funds and any
    state matching funds, as well as the expected annual maintenance and operational costs to the state of the project for the next 25 years as specified.
    (2) Provides the steps DOT must take if either the amount of state matching funds
    required by the federal grant or the amount of future annual maintenance and operational costs of the project are reasonably expected to exceed $3 million.
    (3) Provides the steps DOT must take if either the amount of state matching funds
    required by the federal grant or the amount of future annual maintenance and operational costs of the project are reasonably expected to exceed $5 million.
    Specifies that the definitions of “state matching funds” and “annual maintenance and operational costs to the state” do not include funds that may pass through DOT but that originally came from a non-state source.

    PROHIBIT RAIL DIVISION FROM PROVIDING CONVENIENCE ITEMS FREE OF CHARGE ON
    ALL PASSENGER RAIL SERVICE
    SECTION 28.16. Directs that DOT, Rail Division (DOT) must not provide convenience items, including bottled or canned drink products, excluding water, newspapers, or other items of convenience, to passengers free of charge unless the items are donated to the state. Allows DOT to charge a nominal fee for such items through vending machines or other mechanisms.

    ELIMINATE AERONAUTICS COUNCIL, BICYCLE COMMITTEE, AND RAIL COUNCIL
    SECTION 28.17.(a) Eliminates the Aeronautics Council of DOT by repealing GS 143B-356 and GS 143B-357.
    SECTION 28.17.(b) Eliminates the North Carolina Bicycle Committee within DOT by repealing GS 136-71.13.
    SECTION 28.17.(c) Eliminates the North Carolina Rail Council of DOT by repealing Part 9 of Article 8 of GS Chapter 143B.

    FLEXIBLE USE OF FUNDS TO LEVERAGE FEDERAL FUNDS FOR RURAL PUBLIC TRANSPORTATION
    SECTION 28.18. Provides DOT with the flexibility to transfer funding from the consolidated capital program of its rural funding programs for vehicles, technology, and facilities to the operating programs, based on DOT’s ability to leverage all additional federal funds to meet the capital needs of rural transportation systems. Applies only to the fiscal years 2011-12 and 2012-13.

    MAXIMIZE LEVERAGE OF FEDERAL PUBLIC TRANSPORTATION OPERATING AND CAPITAL FUNDS FOR LOCAL PUBLIC TRANSPORTATION SYSTEMS.
    SECTION 28.19. Directs DOT to provide local public transportation systems with maximum flexibility to use state operating funds from specified grant programs to leverage all eligible federal transit operating assistance funds. Applies only to the fiscal years 2011-12 and 2012-13.

    STREAMLINE GRANT PROCESS AND CONSOLIDATE GRANTS FOR PUBLIC TRANSPORTATION
    SECTION 28.20.(a) Directs DOT to work with stakeholders to streamline the grant application process, determine levels for funding distributions, and make recommendations to the General Assembly to maximize the use of these grants funds. DOT must report these findings to the Joint Legislative Transportation Oversight Committee by March 1, 2012.
    SECTION 28.20.(b) Directs DOT and OSBM to combine grant funding to specified grant programs, and directs the Highway Fund to reflect these consolidations. This section does not change grant categories and respective formulas. Directs the DOT to determine an appropriate distribution for funds based upon the needs of the local governments. Effective July 1, 2012.

    STUDY REGIONAL CONSOLIDATION OF TRANSIT SYSTEMS
    SECTION 28.21. Directs DOT to study the feasibility and appropriateness of developing regional transit systems with the goals of: (1) providing increased mobility between existing transit systems within one county and between counties, (2) improving planning and coordination to better meet public demand, (3) maximizing funding, and (4) developing centralized professional staff that will create operational and administrative efficiencies. The study is to examine both (1) the consolidation of transit service planning and delivery based on regional travel patterns and (2) the consolidation of single-county transit systems, where applicable. DOT must report the results of its study to the Joint Legislative Transportation Oversight Committee by March 1, 2012.

    DIVISION OF MOTOR VEHICLES BULK DATA
    SECTION 28.22. Adds new GS 20-43.1(e) providing that the Division of Motor Vehicles may provide copies of partial crash report data collected under GS 20-166.1, partial driver license data kept pursuant to GS 20-26(a), and partial vehicle registration application data collected pursuant to GS 20-52, in bulk form to persons or entities for non-official uses, upon payment of a fee of 3¢ per individual record. Prohibits the furnishing of such data except upon execution by the recipient of a written agreement to comply with the Driver’s Privacy Protection Act of 1994, as amended, 18 U.S.C. 2721, et seq. Provides that the information released is not a public record under GS Chapter 132.

    FLEXIBLE USE OF FUNDS FOR DIVISION OF MOTOR VEHICLES FOR FISCAL YEARS 2011-2012 and 2012-2013
    SECTION 28.23. Directs that funds appropriated to the Division of Motor Vehicles be used for the following purposes:
    (1) $105,000 may be used for contractual security services at the Division of Motor
    Vehicles Registration and International Registration Plan office in Charlotte.
    (2) $225,030 may be used for staffing the dedicated commercial drivers license skills testing sites located in Lumberton and under construction in Iredell County. Authorizes the reclassification of five existing vacant positions for this purpose.

    STUDY EXEMPTING THE THREE NEWEST MODEL YEARS FROM EMISSIONS INSPECTIONS OF MOTOR VEHICLES
    SECTION 28.24.(a) Directs the Division of Motor Vehicles to study exempting, for the three newest model years, the emissions inspection required for motor vehicles under GS 20-183.2(b). Directs the Department of Environment and Natural Resources, Division of Air Quality (Division), to coordinate with DOT to evaluate the potential impacts of exempting these motor vehicles. Specifies certain considerations the Division must include when evaluating potential impacts.
    SECTION 28.24.(b) Directs that by March 1, 2012, DOT and the Department of Environment and Natural Resources must submit a joint report of the results of the study under this section, including the findings, recommendations, and any legislative or administrative proposals, to specified committees.

    DEPARTMENT OF REVENUE TO REPORT ON MOTOR FUELS TAX AUDITOR AND INVESTIGATOR PERFORMANCE
    SECTION 28.25. Directs the Department of Revenue, Motor Fuels Division, and the Tax Enforcement Division (Department) to report on the performance of auditor and investigator collection and enforcement activities as they relate to the administration of the motor fuels, alternative fuels, motor carrier, and inspection tax laws. The report must include the Department's collection and enforcement activities and include recommendations to improve these efforts. Directs the Department to develop a methodology to compare performance by employees and include these results in the report. The Department must report to the Joint Legislative Transportation Oversight Committee and to the Joint Legislative Commission on Governmental Operations by March 1, 2012.

    STUDY REIMBURSEMENT PROCESS FOR DEPARTMENT OF CORRECTION LITTER PICKUP
    SECTION 28.26. Directs OSBM, in consultation with the Department of Correction (DOC) and DOT, to study performance-based reimbursement as an alternative to the current funding mechanism for inmate litter pickup, which consists of a direct appropriation from DOT’s Highway Fund budget to the DOC budget. OSBM must report to the Joint Legislative Transportation Oversight Committee and to the Joint Legislative Commission on Governmental Operations by March 1, 2012. Directs the report to contain recommendations for reimbursement rates that have been agreed upon by DOC and DOT. Directs that the report also include any statutory changes to be considered by the General Assembly in relation to this report.

    DRIVER EDUCATION REFORM
    SECTION 28.27. Amends GS 115C-215.1 to provide for a standardized driver education program, administered by the Department of Public Instruction. Expands eligibility to home school students. Adds requirement for one hour of motorcycle awareness training. Adds requirement that State Board of Education establish and implement a strategic plan for this program and specifies minimum elements of that plan. Requires local boards of education to offer noncredit courses using standardized curriculum provided by the Department of Public Instruction. Allows local boards of education to charge fee of up to $75 for the course. Repeals GS 115C-215, recodifies portions of GS 20-88.1, and makes other conforming amendments.

    STATE HIGHWAY PATROL POSITIONS
    SECTION 28.28.(a) Eliminates the Administrative Services Section of the State Highway Patrol (SHP). Directs the Secretary of the Department of Crime Control and Public Safety (Department) to consolidate remaining Administrative Services Section positions and organizational units with other human resources functions of the Department.
    SECTION 28.28.(b) Eliminates the following SHP positions:

    Position ID Position Title
    60084611 Program Assistant V
    60084615 Attorney
    60085385 Sergeant
    60084952 First Sergeant
    60085315 W/A First Sergeant
    60084628 Assessment Analyst
    60084772 Office Assistant
    60084779 Budget Analyst
    60085953 Major
    60084998 First Sergeant
    60084947 Captain
    60085945 W/A Captain
    60085302 Lieutenant
    60084755 Office Assistant
    60084858 Office Assistant
    60084686 Deputy Secretary

    SECTION 28.28.(c) Authorizes the Commander of the SHP, upon the approval of the Secretary of the Department, to eliminate a greater number of positions than that specified in the Committee Report on the Continuation, Expansion, and Capital Budget for fiscal year 2011-12. Directs the Commander, when implementing the reductions in force required by this act, to minimize the number of sworn law enforcement officer positions allocated for district-level traffic and commercial motor vehicle enforcement that are to be eliminated. Specifies that reductions in force may include filled positions.
    SECTION 28.28.(d) Directs the Commander of the SHP to report on the number of positions eliminated for fiscal year 2011-12 and specifies the information that must be included in the report. The Commander must submit the report to the House of Representatives Appropriations Subcommittee on Justice and Public Safety, the Senate Appropriations Committee on Justice and Public Safety, and the Joint Legislative Crime Control and Public Safety Oversight Committee by March 1, 2012.
    SECTION 28.28.(e) Suspends the salary increase provisions of GS 20-187.3 for fiscal year 2011-2012 and 2012-13.

    STATE HIGHWAY PATROL FUNDS TRANSFER
    SECTION 28.29. Transfers $193,527,300 of the funds allocated to the Highway Fund under GS 105-449.125 to the General Fund for 2011-12 as specified. Transfers $190,394,000 of the funds allocated to the Highway Fund under GS 105-449.125 to the General Fund for 2012-13. Directs the OSBM and the Office of State Controller to discontinue use of the Crime Control and Public Safety – Highway Fund budget code and to certify funds appropriated by this act for the SHP under a separate code within the Crime Control and Public Safety-General Fund budget code. Directs DOT, OSBM, and Office of State Controller to certify and account for state matching funds for Motor Carrier Safety Assistance Program grants, federal funds, and other receipts budgeted for SHP programs, as necessary. Rewrites GS 20-194 to eliminate language providing that all expenses incurred by carrying out the specified provisions be paid out of the highway fund.

    HIGHWAY TRUST FUND MONEY FOR VISITOR CENTERS; SPECIAL REGISTRATION PLATES MONEY FOR VISITOR CENTERS
    SECTION 28.30.(a) Rewrites GS 20-85.1(a1), as amended by Section 13.2 of this act, to include an additional 50¢ of the fee imposed for any transaction assessed a fee under (a)(1) of the statute to be credited as follows: (1) the first $400,000 collected is to be credited to the Reserve for Visitor Centers in the Highway Fund and (2) any additional funds collected are to be credited to the Mobility Fund.
    SECTION 28.30.(b) Rewrites GS 20-29.7(c)(2) to increase the appropriated amount from the Special Registration Place Account, which provides operating assistance to specified visitor centers, from $1.2 million to $1.3 million. Adds the visitor center at the intersection of Interstate 73 and Interstate 74 in Randolph County as a specified visitor center and appropriates $100,000 of operating assistance to the center. Makes other conforming changes.

    MAINTAIN CURRENT LEVEL OF ADMINISTRATIVE FUNDING FROM HIGHWAY TRUST FUND
    SECTION 28.31. Provides that the amount of allowable expenses to administer the Highway Trust Fund must not increase over the amounts allocated in the 2011-12 and 2012-13 base budgets.

    TRANSFER UNENCUMBERED TURNPIKE PROJECTS GAP FUNDS TO MOBILITY FUND
    SECTION 28.32. Transfers any funds appropriated to the North Carolina Turnpike Authority under GS 136-176(b2) to cover debt service or related financing costs for the Mid-Currituck Bridge project that remain unencumbered at the end of 2010-11 to the Mobility Fund. Transfers any funds appropriated to the North Carolina Turnpike Authority under GS 136-176(b2) to cover debt service or related financing costs for the Golden Parkway project that remain unencumbered at the end of 2010-11 to the Mobility Fund solely for the use for urban loop projects.

    MOBILITY FUND PROJECT SELECTION CRITERIA ADJUSTMENT
    SECTION 28.33. Rewrites Section 28.7(b) of SL 2010-31, as rewritten by Section 8.2 of SL 2010-123, to remove language requiring DOT to give preferential consideration to projects qualified to receive state grants from the Congestion Relief and Intermodal Transportation 21st Century Fund under Article 19 of GS Chapter 136 when developing project criteria and selection processes. Directs the DOT to report to the Joint Legislative Transportation Oversight Committee on development of the selection criteria by October 15, 2011.

    TRANSFER URBAN LOOP PROGRAM TO THE MOBILITY FUND
    SECTION 28.34. Repeals GS 136-180 and rewrites GS 136-176(b)(2) to transfer funds formerly directed to those projects listed in GS 136-180 to the Mobility Fund. Specifies that funds transferred to the Mobility Fund in this manner are to be used solely for urban loop projects. Makes other conforming changes by eliminating references to GS 136-180 in other statutes.

    MODIFY DEPARTMENT OF TRANSPORTATION REPORTING REQUIREMENTS
    SECTION 28.35.(a) Repeals GS 136-12(a1), GS 136-12.2, GS 136-89.193(e), GS 136.93.1(g), and GS 136-125.2
    SECTION 28.35.(b) Rewrites GS 136-44.2 to remove the provision stating that no federally eligible construction project may be funded entirely with state funds unless DOT has first reported to the Joint Legislative Commission on Government Operations.
    SECTION 28.35.(c) Rewrites GS 136-89.182 to eliminate the requirement that any bylaws, or subsequent changes or amendments to the bylaws, adopted by the North Carolina Turnpike Authority Board be submitted to the Board of Transportation and the Joint Legislative Transportation Oversight Committee for review and comment at least 45 days prior to adoption by the Authority Board, and instead requires such bylaws, or subsequent changes or amendments to the bylaws, be included in the Annual Report as required by GS 136-89.193. Removes the requirement for the North Carolina Turnpike Authority to report the hiring of all administrative employees to the Joint Legislative Transportation Oversight Committee within 30 days of employment.

    PART XXIX. SALARIES AND BENEFITS

    GOVERNOR AND COUNCIL OF STATE
    SECTION 29.1. Specifies that for the 2011-13 fiscal biennium, the salary of the Governor remains the amount set by GS 147 11(a), $139,590 annually, payable monthly.
    Specifies that the annual salaries for the members of the Council of State, payable monthly, for the 2011-13 fiscal biennium remain unchanged as follows:

    Council of State Annual Salary
    Lieutenant Governor $123,198
    Attorney General 123,198
    Secretary of State 123,198
    State Treasurer 123,198
    State Auditor 123,198
    Superintendent of Public Instruction 123,198
    Agriculture Commissioner 123,198
    Insurance Commissioner 123,198
    Labor Commissioner 123,198

    NONELECTED DEPARTMENT HEAD
    SECTION 29.2(a). Specifies that, in accordance with GS 143B 9, the maximum annual salaries, payable monthly, for the nonelected heads of the principal state departments for the 2011-13 fiscal biennium remain unchanged as follows:

    Nonelected Department Heads Annual Salary
    Secretary of Administration $120,363
    Secretary of Correction 120,363
    Secretary of Crime Control and Public Safety 120,363
    Secretary of Cultural Resources 120,363
    Secretary of Commerce 120,363
    Secretary of Environment and Natural Resources 120,363
    Secretary of Health and Human Services 120,363
    Secretary of Juvenile Justice and
    Delinquency Prevention 120,363
    Secretary of Revenue 120,363
    Secretary of Transportation 120,363

    SECTION 29.2.(b) Provides that effective January 1, 2012, subsection (a) of this section is amended as follows:

    Nonelected Department Heads Annual Salary
    Secretary of Administration $120,363
    Secretary of Correction 120,363
    Secretary of Crime Control and Public Safety 120,363
    Secretary of Cultural Resources 120,363
    Secretary of Commerce 120,363
    Secretary of Environment and Natural Resources 120,363
    Secretary of Health and Human Services 120,363
    Secretary of Juvenile Justice and
    Delinquency Prevention 120,363
    Secretary of Public Safety 120,363
    Secretary of Revenue 120,363
    Secretary of Transportation 120,363

    CERTAIN EXECUTIVE BRANCH OFFICIALS
    SECTION 29.3. Specifies that the annual salaries, payable monthly, for the 2011-13 fiscal biennium remain unchanged as follows:

    Executive Branch Officials Annual Salary
    Chairman, Alcoholic Beverage Control Commission $109,553
    State Controller 153,319
    Commissioner of Motor Vehicles 109,553
    Commissioner of Banks 123,198
    State Personnel Director 120,363
    Chairman, Parole Commission 100,035
    Members of the Parole Commission 46,178
    Chairman, Utilities Commission 137,203
    Members of the Utilities Commission 123,198
    Executive Director, Agency for
    Public Telecommunications 92,356
    Director, Museum of Art 112,256
    Executive Director, North Carolina
    Agricultural Finance Authority 106,635
    State Chief Information Officer 153,227

    JUDICIAL BRANCH
    SECTION 29.4.(a) Directs that the annual salaries, payable monthly, for specified judicial branch officials for the 2011-13 fiscal biennium remained unchanged as follows:

    Judicial Branch Officials Annual Salary
    Chief Justice, Supreme Court $140,932
    Associate Justice, Supreme Court 137,249
    Chief Judge, Court of Appeals 135,061
    Judge, Court of Appeals 131,531
    Judge, Senior Regular Resident Superior Court 127,957
    Judge, Superior Court 124,382
    Chief Judge, District Court 112,946
    Judge, District Court 109,372
    District Attorney 119,305
    Administrative Officer of the Courts 126,738
    Assistant Administrative Officer of the Courts 115,763
    Public Defender 119,305
    Director of Indigent Defense Services 123,022

    SECTION 29.4.(b) Provides that effective for the 2011-13 fiscal biennium, the annual salaries of employees of the Judicial Department remain unchanged; applies to permanent full-time and part-time Judicial Department employees whose salaries are not itemized in this act, clerks of superior court, assistant and deputy clerks of court, and magistrates.

    GENERAL ASSEMBLY
    SECTION 29.5. Provides that effective for the 2011-13 fiscal biennium the annual salaries of legislative branch employees remain unchanged; applies to members and officers of the General Assembly, principal clerks in each house, the sergeant-at-arms and the reading clerk in each house, and the annual salaries of the Legislative Services Officer and of nonelected employees of the General Assembly.

    COMMUNITY COLLEGES PERSONNEL
    SECTION 29.6. Provides that the annual salaries of all community college nonfaculty and professional staff whose salaries are supported from the state’s General Fund remain unchanged for the 2011-13 fiscal biennium. Also provides that the annual salaries of all community college faculty whose salaries are supported from the state’s General Fund remain unchanged for the 2011-13 biennium. Provides that minimum salaries for nine-month, full time curriculum community college faculty also remain unchanged as follows:
    Education Level Minimum Salary
    Vocational Diploma/Certificate or Less $34,314
    Associate Degree or Equivalent $34,819
    Bachelor's Degree $37,009
    Master's Degree or Education Specialist $38,952
    Doctoral Degree $41,753
    Specifies that no full time faculty member may earn less than the minimum salary for his or her education level. The pro rata hourly rate of the minimum salary for each education level must be used to determine the minimum salary for part time faculty members.

    UNIVERSITY OF NORTH CAROLINA SYSTEM
    SECTION 29.7. Provides no salary changes for the 2011-13 fiscal biennium for all UNC EPA faculty, EPA non-faculty, SPA employees, and teachers employed by the North Carolina School of Science and Math. Also provides that salaries remain unchanged for all employees of the UNC Health Care System and the Medical Faculty Practice Plan at East Carolina University for the 2011-13 fiscal biennium.

    LIMITED SALARY ADJUSTMENTS FOR SPECIAL CIRCUMSTANCES ONLY/ NO AUTOMATIC INCREASES
    SECTION 29.8. Provides pay is to remain unchanged for the 2011-13 fiscal biennium to all state employees from that pay which is authorized on June 30, 2011, or the last date in pay status during the 2010-11 fiscal year, if earlier. Provides exception to this by allowing pay increases to state employees employed by the North Carolina Community College System and local school boards who are paid from state funds and to judicial branch employees for local supplementation as authorized under GS 7A-300.1. Suspends automatic salary step increases for assistant and deputy clerks of superior court and magistrates, and the salary increase provision of GS 20-187.3 (concerning State Highway Patrol steps) for the 2011-13 fiscal biennium. Directs that employees of the Office of the Commissioner of Banks and the employees of the Lottery Commission are not to receive compensation bonuses for the fiscal biennium 2011-13. Specifies that employees of every other state agency and constituent institution of the University of North Carolina Health Care System and the Medical Facility Practice Plan at East Carolina University are not to receive compensation bonuses.

    MOST STATE EMPLOYEES
    SECTION 29.9.(a) Directs that the salaries in effect June 30, 2011, of all permanent, full time state employees whose salaries are set in accordance with the State Personnel Act, remain unchanged for the 2011-13 fiscal biennium.
    SECTION 29.9.(b) Directs that the salaries for permanent, full time state officials and persons in exempt positions remain unchanged for the 2011-13 fiscal biennium.
    SECTION 29.9.(c) Directs that the salaries for all permanent, part time state employees remain unchanged for the 2011-13 fiscal biennium.
    SECTION 29.9.(d) Directs that the compensation for temporary and permanent hourly state employees remain unchanged for the 2011-13 fiscal biennium.

    ALL STATE SUPPORTED PERSONNEL/NO SALARY INCREASES
    SECTION 29.10.(a) Provides that the salaries provided for in this act are effective July 1, 2011, and do not apply to persons separated from state service due to resignation, dismissal, reduction in force, death, retirement, or whose last workday is prior to July 1, 2011. Applies to all employees, subject to or exempt from the State Personnel Act, paid from state funds.
    SECTION 29.10.(b) Directs that salaries for permanent, full-time employees who work a nine-, ten-, or eleven –month work year schedule remain unchanged for the 2011-13 fiscal biennium.

    STATE AGENCY TEACHERS’ COMPENSATION
    SECTION 29.11. Salaries for specified employees paid on the Teacher Salary Schedule or the School-Based Administrator Schedule remain unchanged for 2011-13.

    TEACHER SALARY SCHEDULES
    SECTION 29.12.(a) Establishes the monthly salary schedules for the 2011 12 fiscal year for
    certified personnel of the public schools who are classified as teachers. The schedule contains 35 steps with each step corresponding to one year of teaching experience. Salaries range from $3,043 for “A” Teachers with 0 years of experience to $5,255 for those with 34+ years of experience, and from $3,408 for teachers who are NBPTS certified with 3 years of experience to $5,886 for those with 34+ years of experience. Salaries range from $3,347 for “M” teachers with 0 years of experience to $5,781 for those with 34+ years of experience and from $3,749 for those that are NBPTS certified with 3 years of experience to $6,475 for those with 34+ years of experience.
    SECTION 29.12.(b) Specifies the following annual longevity payment rates for teachers:
    (1) 1.5% of base salary for 10 to 14 years of state service; (2) 2.25% of base salary for 15 to 19 years of state service; (3) 3.25% of base salary for 20 to 24 years of state service; and (4) 4.5% of base salary for 25 or more years of state service. The longevity payment must be paid in a lump sum once a year.
    SECTION 29.12.(c) Authorizes the following salary supplements (1) $126 per month for certified personnel of the public schools who are classified as "M" teachers for certified public school teachers with certification based on academic preparation at the six-year degree level and (2) $253 per month for certified personnel of the public schools who are classified as "M" teachers for certified public school teachers with certification based on academic preparation at the doctoral degree level.
    SECTION 29.12.(d) Specifies that the first step of the salary schedule for school psychologists is equivalent to Step 5, corresponding to five years of experience, on the salary schedule established in this section for certified personnel of the public schools who are classified as "M" teachers. Directs that certified psychologists be placed on the salary schedule at an appropriate step based on their years of experience and receive longevity payments based on years of state service in the same manner as teachers.
    Authorizes the following salary supplements (1) $126 per month for certified psychologists for certified psychologists with certification based on academic preparation at the six-year degree level and (2) $253 per month for certified psychologists with certification based on academic preparation at the doctoral degree level.
    SECTION 29.12.(e) Specifies that speech pathologists who are certified as speech pathologists at the master's degree level and audiologists who are certified as audiologists at the master's degree level and who are employed in the public schools as speech and language specialists and audiologists must be paid on the school psychologist salary schedule.
    Authorizes the following salary supplements (1) $126 per month for speech pathologists and audiologists for certified speech pathologists and audiologists with certification based on academic preparation at the six-year degree level; and (2) $253 per month for speech pathologists and audiologists for certified speech pathologists and audiologists with certification based on academic preparation at the doctoral degree level.
    SECTION 29.12.(f) Directs that certified school nurses who are employed in the public schools as nurses be paid on the "M" salary schedule.
    SECTION 29.12.(g) Specifies that, as used in this section, the term "teacher" also includes instructional support personnel.

    SCHOOL-BASED ADMINISTRATION SALARY SCHEDULE
    SECTION 29.13.(a) Directs that the base salary schedule for school based administrators applies only to principals and assistant principals. Establishes the base salary schedule for 2011 12 fiscal year, commencing July 1, 2011, for principals and assistant principals.
    SECTION 29.13.(b) Provides a schedule for placement of principals and assistant principals on the salary schedule based on number of teachers supervised. Specifies that the number of teachers supervised includes teachers and assistant principals paid from state funds only; it does not include teachers or assistant principals paid from non state funds or the principal or teacher assistants.
    The beginning classification for principals in alternative schools and in cooperative innovative high school programs is the Principal III level. Principals in alternative schools who supervise 33 or more teachers are classified according to the number of teachers supervised.
    SECTION 29.13.(c) Directs that a principal be placed on the step on the salary schedule that reflects total number of years of experience as a certificated employee of the public schools and an additional step for every three years of experience as a principal. Provides that a principal who acquires an additional step for 2011-12 or 2012-13 is not to receive a corresponding increase in salary during the 2011-13 fiscal biennium. Specifies that a principal or assistant principal also continue to receive any additional state funded percentage increases earned for the 1997 98, 1998 99, and 1999 00 school years for improvement in student performance or maintaining a safe and orderly school.
    SECTION 29.13.(d) Directs that principals and assistant principals with certification based on academic preparation at the six year degree level be paid a salary supplement of $126 per month and at the doctoral degree level be paid a salary supplement of $253 per month.
    SECTION 29.13.(e) Directs that longevity pay for principals and assistant principals must be as provided for state employees under the State Personnel Act.
    SECTION 29.13.(f) Specifies that if a principal is reassigned to a higher job classification because the principal is transferred to a school within a local school administrative unit with a larger number of state allotted teachers, the principal must be placed on the salary schedule as if the principal had served the principal's entire career as a principal at the higher job classification.
    If a principal is reassigned to a lower job classification because the principal is transferred to a school within a local school administrative unit with a smaller number of state allotted teachers, the principal must be placed on the salary schedule as if the principal had served the principal's entire career as a principal at the lower job classification.
    Applies to all transfers on or after the effective date of this section, except transfers in school systems created by merging two or more school systems. Transfers in these merged systems are exempt from the provisions of this subsection for one calendar year following the date of the merger.
    SECTION 29.13.(g) Provides that participants in an approved full time master's in school administration program receive up to a 10 month stipend at the beginning salary of an assistant principal during the internship period of the master's program. Specifies that for the 2006 07 fiscal year and subsequent fiscal years, the stipend may not exceed the difference between the beginning salary of an assistant principal plus the cost of tuition, fees, and books and any fellowship funds received by the intern as a full time student, including awards of the Principal Fellows Program. The Principal Fellows Program or the school of education where the intern participates in a full time master's in school administration program must supply the DPI with certification of eligible full time interns.
    SECTION 29.13.(h) During 2011 12, the placement on the salary schedule of an administrator with a one year provisional assistant principal's certificate must be at the entry level salary for an assistant principal or the appropriate step on the teacher salary schedule, whichever is higher.

    CENTRAL OFFICE SALARIES
    SECTION 29.14.(a) Directs that the following monthly salary ranges apply to assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers and remain unchanged for the 2011-13 fiscal biennium, beginning July 1, 2011.
    School Administrator I $3,309 $6,207
    School Administrator II $3,508 $6,583
    School Administrator III $3,724 $6,984
    School Administrator IV $3,874 $7,262
    School Administrator V $4,030 $7,556
    School Administrator VI $4,275 $8,013
    School Administrator VII $4,447 $8,336
    Directs the local board of education to determine the appropriate category and placement for each assistant superintendent, associate superintendent, director/coordinator, supervisor, or finance officer within the salary ranges and within funds appropriated by the General Assembly. The category in which an employee is placed must be included in the contract of any employee.
    SECTION 29.14.(b) Directs that the following monthly salary ranges apply to public school superintendents and remain unchanged for the 2011-13 fiscal biennium, beginning July 1, 2013.
    Superintendent I $4,720 $8,843
    Superintendent II $5,011 $9,377
    Superintendent III $5,316 $9,948
    Superintendent IV $5,642 $10,552
    Superintendent V $5,988 $11,196
    Directs the local board of education to determine the appropriate category and placement for the superintendent based on the average daily membership of the local school administrative unit and within funds appropriated by the General Assembly.
    SECTION 29.14.(c) Directs that longevity pay for superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers must be as provided for state employees under the State Personnel Act.
    SECTION 29.14.(d) Directs that superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers with certification based on academic preparation at the six year degree level receive a salary supplement of $126 per month. Directs that superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers with certification based on academic preparation at the doctoral degree level receive a salary supplement of $253 per month.
    SECTION 29.14.(e) Prohibits the State Board of Education from permitting local school administrative units to transfer state funds from other funding categories for salaries for public school central office administrators.
    SECTION 29.14.(f) Specifies that the salaries for permanent, full time personnel paid from the Central Office Allotment, remain unchanged for the 2011-13 fiscal biennium.

    NONCERTIFIED PERSONNEL SALARIES
    SECTION 29.15. Directs that the annual salary for permanent, full-time and part-time noncertified public school employees whose salaries are supported from the state’s General Fund are to remain unchanged for the 2011-2013 fiscal biennium.

    FURLOUGHS AUTHORIZED/PUBLIC SCHOOLS
    SECTION 29.16.(a) Provides the General Assembly’s findings that local boards of education are under economic stress requiring they be granted flexibility in managing expenditures.
    SECTION 29.16.(b) Authorizes local boards of education to implement furloughs of state-funded public school employees to offset the LEA funding flexibility adjustment.
    SECTION 29.16.(c) Defines furlough as a temporary period of leave from employment without pay that (1) is ordered by a local board of education and (2) is not in connection with a demotion or other disciplinary action. Defines public school employee as any person employed by a local school administrative unit, including public officers.
    SECTION 29.16.(d) Provides that the provisions of Section 29.18 (benefits protection) apply to public school employees furloughed pursuant to the section.
    SECTION 29.16.(e) Directs LEAs, if required, to cooperate with DPI in the implementation of furlough.
    SECTION 29.16.(f) Directs the SBE to adopt rules for the implementation of this section in accordance with GS 150B 21.1A, except that notwithstanding GS 150B 21.1A(d), those emergency rules may remain in effect until the expiration of this section. Sets as a timetable that the rules should be adopted as soon as practicable, and requires that the adoption of the rules take place no more than 30 calendar days from the effective date of this section. Directs local boards of education to apply the rules in designating the times public school employees may be subject to furlough. Sets out minimal requirements of matters to be addressed in the rules including (1) prohibiting the use of furloughs for employees who work only on instructional days; (2) prohibiting furloughs of employees who earn an annual base rate of $25,000 or less; (3) a furlough for other employees must be for the same number of days as all such employees; (4) prohibition of furlough of a teacher on an instructional day or a protected work day; (5) the requirement of a public hearing by the local board of education to disclose the local school administrative unit’s finances before a furlough is implemented; (6) allowing a local school administrative unit to spread the salary or wage reduction for furloughed employees over the contract period in order to lessen the impact on the employees; (7) requiring all of the savings realized as a result of a furlough to be used to offset the LEA budgetary flexibility adjustment; (8) directing the county in which an LEA implements a furlough not to supplant existing local current expense funds for schools; and (9) requiring the local school board to report the details of any furlough implemented by the LEA to the SBE and to certify that the furlough complied with the provisions of this section and the rules adopted by the SBE.
    SECTION 29.16.(g) Provides that a furlough as implemented by this section does not constitute a demotion.
    SECTION 29.16.(h) Provides that public school employees who are not paid out of state funds will receive the same reduction in pay applicable to state paid employees in the event a furlough is enacted by an LEA.
    SECTION 29.16.(i) Makes this section effective when it becomes law and expires June 30, 2013.

    FURLOUGHS AUTHORIZED/UNC
    SECTION 29.17.(a) Presents the General Assembly’s findings that the University of North Carolina (UNC) requires flexibility in managing personnel-related expenditures and that the provisions of this section will aid in the administration of personnel-related costs.
    SECTION 29.17.(b) Permits the President of UNC to implement furloughs of university employees or to delegate furlough authority to a chancellor of a constituent institution to offset the UNC management flexibility reduction.
    SECTION 29.17.(c) Defines furlough as a temporary period of leave from employment without pay that (1) is ordered by the President of UNC or a chancellor when delegated and (2) is not in connection with a demotion or other disciplinary action. Defines university employee as any permanent full time, permanent part time, or time limited employee of UNC, including employees exempt from the State Personnel Act under GS 126 5(c), 126 5(c1), 126 5(c7), and 126 5(c8) and including public officers.
    SECTION 29.17.(d) Provides that Section 29.18 (benefits protection) applies to university employees furloughed pursuant to the section.
    SECTION 29.17.(e). Directs UNC constituent institutions to cooperate with the UNC General Administration in the implementation of furloughs, if required.
    SECTION 29.17.(f) Directs the UNC Board of Governors to adopt policies for the implementation of this section as soon as practicable, and no more than 30 calendar days from the effective date of this section. Provides that the policies are to remain in effect until the expiration of this section. Requires that the policies are to be applied by the President and the constituent institutions in implementing a furlough of university employees, and are to provide at a minimum, that: (1) the President may establish a salary threshold below which university employees cannot be subject to furlough and in no event can a full time university employee, prorated for any part time employee, earning $25,000 or less be subject to furlough; (2) the scheduling of any furlough period is at the discretion of the President or the chancellor of the constituent institution when delegated; (3) no paid leave is to be used to offset all or any portion of a furlough; (4) if a holiday falls during the mandatory furlough period, the university employee must be paid for the holiday; (5) all savings realized as a result of a furlough must be used to offset the Management Flexibility Reduction for The University of North Carolina.
    SECTION 29.17.(g) Requires that upon delegation of furlough authority to a chancellor, the constituent institution must develop a furlough plan to be approved by the President consistent with the policies adopted by the UNC Board of Governors. Requires that access to approved furlough plans be provided to all affected employees.
    SECTION 29.17.(h) Makes this section effective when it becomes law and expires June 30, 2013.

    FURLOUGHS AUTHORIZED/NORTH CAROLINA COMMUNITY COLLEGE SYSTEM
    SECTION 29.17A.(a) Presents the General Assembly’s findings that the North Carolina Community College System requires flexibility in managing personnel-related expenditures and that the provisions of this section will aid in the administration of personnel-related costs.
    SECTION 29.17A.(b) Permits the President of the North Carolina Community College System (System President) to implement furloughs of community college employees or to delegate furlough authority to a local system president of a system institution to offset any management flexibility reduction.
    SECTION 29.17A.(c) Defines furlough as a temporary period of leave from employment without pay that (1) is ordered by the System President or a local system president when delegated and (2) is not in connection with a demotion or other disciplinary action. Defines community college employee as any permanent full time, permanent part time, or time limited employee of the North Carolina Community College system, including public officers.
    SECTION 29.17A.(d) Provides that Section 29.18 (benefits protection) applies to community college employees furloughed pursuant to the section.
    SECTION 29.17A.(e). Directs system institutions to cooperate with the North Carolina Community College System Office in the implementation of furloughs, if required.
    SECTION 29.17A.(f) Directs the State Board of Community Colleges to adopt policies for the implementation of this section as soon as practicable, and no more than 30 calendar days from the effective date of this section. Provides that the policies are to remain in effect until the expiration of this section. Requires that the policies are to be applied by the System President and the system institutions in implementing a furlough of community college employees, and are to provide at a minimum, that: (1) the System President may establish a salary threshold below which community college employees cannot be subject to furlough and in no event can a full time community college employee, prorated for any part time employee, earning $25,000 or less be subject to furlough; (2) the scheduling of any furlough period is at the discretion of the System President or the local system president of the system institution when delegated; (3) no paid leave is to be used to offset all or any portion of a furlough; (4) if a holiday falls during the mandatory furlough period, the community college employee must be paid for the holiday; (5) all savings realized as a result of a furlough must be used to offset the Management Flexibility Reduction for the North Carolina Community College System.
    SECTION 29.17A.(g) Requires that upon delegation of furlough authority to a local system president, the system institution must develop a furlough plan to be approved by the System President consistent with the policies adopted by the State Board of Community Colleges. Requires that access to approved furlough plans be provided to all affected employees.
    SECTION 29.17A.(h) Makes this section effective when it becomes law and expires June 30, 2013.

    BENEFITS PROTECTION FOR FURLOUGHED STATE GOVERNMENT EMPLOYEES AND PUBLIC
    SCHOOL PERSONNEL
    SECTION 29.18. Adopts new provision to define furlough as a temporary period of leave from employment without pay that (1) is ordered or authorized by the Governor, the Chief Justice, the Legislative Services Commission, the UNC Board of Governors, the Board of the NC Community College System, or a local school board, and (2) is not in connection with a demotion or any other disciplinary action. Also defines public agency and public employee. Provides that a member of (1) any of the state-supported retirement plans administered by the Retirement Systems Division of the Department of the State Treasurer (Retirement Systems Division) or (2) an Optional Retirement Program (ORP) administered under GS 135-5.1 or GS 135-5.4 is considered in active service during any period of furlough and entitled to all of the same benefits to which the employee was entitled on the workday immediately preceding the furlough. Directs that there is to be no diminution of retirement average final compensation based on being on furlough and that the retirement average final compensation be calculated based on the undiminished compensation. Requires the employer to pay both employer and employee contributions to the Retirement Systems Division or ORP on behalf of the employee on furlough. Directs that a member of the State Health Plan (Plan) for Teachers and State Employees is to be considered eligible for coverage under the Plan on the same basis as the workday immediately preceding the furlough. Requires the employer to pay contributions on behalf of the furloughed employee as if the employee were in active service. Specifies exceptions for when this section does not apply to a furlough within a public agency. Asserts that this section is not to be construed as authorizing furloughs. Directs the respective authorizing officer or entity to report certain specifics regarding an authorized furlough including the positions affected, the employees affected, and make certain certifications regarding the reason for the furlough. Makes this section effective when it becomes law.
    MONITOR COMPLIANCE WITH FREEZE ON MOST SALARY INCREASES
    SECTION 29.19.(a) Directs the Office of State Budget and Management (OSBM) and the Office of State Personnel (OSP) jointly to monitor the compliance of the following units of government with the provisions of Section 29.8 (regarding public employee salaries): (1) State agencies, departments, and institutions, including authorities, boards, and commissions; (2) the judicial branch; and (3) the University of North Carolina and its constituent institutions. Requires the OSBM and the OSP to submit quarterly reports of their monitoring activities to the President Pro Tempore of the Senate, the Speaker of the House of Representatives, and the Fiscal Research Division. Specifies information to be contained in the required quarterly reports.
    SECTION 29.19.(b) Directs the Legislative Services Officer to report quarterly to the President Pro Tempore of the Senate and the Speaker of the House of Representatives on compliance with this act.

    COMPREHENSIVE REVIEW AND REFORM OF PUBLIC EMPLOYEE COMPENSATION PLANS
    SECTION 29.20. Directs the Legislative Services Commission and specified entities to study the current compensation plans of public employees in two phases. Includes criteria to be included in the study. Specifies reporting requirement. Directs affected entities to dedicate staff for assistance as needed.

    ESTABLISH SEVERANCE EXPENDITURE RESERVE
    SECTION 29.21. Establishes, within the Office of State Budget and Mangement, a General Fund reserve budget code for the purpose of funding severance-related obligations to state employees subject to the State Personnel Act (SPA) and employees exempt from the SPA who are separated from service due to a reduction-in-force action. Specifies severance-related expenditures that the reserve is obligated to fund. Requires the Governor to allocate funds appropriated in Section 2.1 of the act to the Severance Expenditure Reserve to public agencies to fund severance-related obligations incurred by the agencies as a result of reduction-in-force actions that cause state-supported public employees to be terminated from public employment. Requires funds to be expended in their entirety before funds appropriated to a public agency for state-supported personal services expenditures may be used to fund any severance-related obligations. Defines public employee as an employee of a state agency, department, or institution; the University of North Carolina; the Community College System Office; or a local administrative unit.

    SALARY RELATED CONTRIBUTIONS
    SECTION 26.22.(a) Directs that, effective for the 2011-13 fiscal biennium, required employer salary related contributions for employees whose salaries are paid from department, office, institution, or agency receipts be paid from the same source as the source of the employee's salary. Specifies that if an employee's salary is paid in part from the General Fund or Highway Fund and in part from department, office, institution, or agency receipts, required employer salary related contributions may be paid from the General Fund or Highway Fund only to the extent of the proportionate part paid from the General Fund or Highway Fund in support of the salary of the employee, and the remainder of the employer's requirements be paid from the source that supplies the remainder of the employee's salary. The requirements of this section as to source of payment are also applicable to payments on behalf of the employee for hospital medical benefits, longevity pay, unemployment compensation, accumulated leave, workers' compensation, severance pay, separation allowances, and applicable disability income benefits.
    Directs that, notwithstanding any other provision of law, an employer who hires or has hired a retiree as an employee must enroll the retiree in the active group and pay the cost for the hospital medical benefits if that retiree is employed in a position that would require the employer to pay hospital medical benefits if the individual had not been retired.
    SECTION 26.22.(b) Directs that, effective July 1, 2011, the state's employer contribution rates budgeted for retirement and related benefits as percentage of covered salaries for 2011 12 are: (i) 13.62% – Teachers and State Employees; (ii) 18.62% – State Law Enforcement Officers; (iii) 12.36% – University Employees' Optional Retirement System; (iv) 12.36 percent – Community College Optional Retirement Program; (v) 31.54% – Consolidated Judicial Retirement System; and (vi) 5% – Legislative Retirement System. Each of the foregoing contribution rates includes 5% for hospital and medical benefits. The rate for Teachers and State Employees, State Law Enforcement Officers, Community College Optional Retirement Program, and for the University Employees' Optional Retirement Program includes 0.52% for the Disability Income Plan. The rates for Teachers and State Employees and State Law Enforcement Officers include 0.16% for the Death Benefits Plan. The rate for State Law Enforcement Officers includes 5% for Supplemental Retirement Income.
    SECTION 26.22.(c) Directs that, effective July 1, 2012, the state's employer contribution rates budgeted for retirement and related benefits as percentage of covered salaries for 2012 13 are: (i) 15% – Teachers and State Employees; (ii) 20% – State Law Enforcement Officers; (iii) 12.66% – University Employees' Optional Retirement System; (iv) 12.66% – Community College Optional Retirement Program; (v) 33.51% – Consolidated Judicial Retirement System; and (vi) 5.3% – Legislative Retirement System. Each of the foregoing contribution rates includes 5.3% for hospital and medical benefits. The rate for Teachers and State Employees, State Law Enforcement Officers, Community College Optional Retirement Program, and for the University Employees' Optional Retirement Program includes 0.52% for the Disability Income Plan. The rates for Teachers and State Employees and State Law Enforcement Officers include 0.16% for the Death Benefits Plan. The rate for State Law Enforcement Officers includes 5% for Supplemental Retirement Income.
    SECTION 29.22.(d) Directs that, effective July 1, 2011, the maximum annual employer contributions, payable monthly, by the state for each covered employee or retiree for the 2011-2012 fiscal year to the State Health Plan for Teachers and State employees are: (1) $3,776 for Medicare –eligible employees and retirees; and (2) $4,962 for non-Medicare-eligible employees and retirees.
    SECTION 29.22.(e) Directs that, effective July 1, 2012, the maximum annual employer contributions, payable monthly, by the State for each covered employee or retiree for the 2012-2013 fiscal year to the State Health Plan for Teachers and State employees are: (1) $3,981 for Medicare –eligible employees and retirees; and (2) $5,232 for non-Medicare-eligible employees and retirees.

    LIMIT STATE ABORTION FUNDING/HEALTH PLAN/INSURANCE
    SECTION 29.23. Provides that no state funds may be used for the performance of abortions or to support the administration of any governmental health plan or government-offered insurance policy offering abortion. Makes the following exceptions: (1) where the life of the mother would be endangered if the unborn child were carried to term; or (2) the pregnancy is the result of rape or incest. Specifies that nothing in this section is to be construed to limit medical health care provided after a spontaneous miscarriage.

    PART XXX. CAPITAL APPROPRIATIONS

    GENERAL FUND CAPITAL APPROPRIATIONS/INTRODUCTION
    SECTION 30.1. States that the appropriations made by the 2011 General Assembly for capital improvements are for constructing, repairing, or renovating state buildings, utilities, and other capital facilities, for acquiring sites where necessary, and for acquiring buildings and land for state government purposes.

    CAPITAL APPROPRIATIONS/GENERAL FUND
    SECTION 30.2. Appropriates the following amounts from the General Fund for 2011-12 for capital improvements.

    Capital Improvements – General Fund 2011 2012

    Department of Environment and Natural Resources
    Water Resources Development Projects $ 4,535,000

    TOTAL CAPITAL IMPROVEMENTS – GENERAL FUND $ 4,535,000

    WATER RESOURCES DEVELOPMENT PROJECTS
    SECTION 30.3.(a) Directs the Department of Environment and Natural Resources (DENR) to allocate appropriated funds for water resources development projects as follows. States that these funds provide a state match for an estimated $23,449,000 in federal funds.

    Name of Project 2011 2012

    (1) B. Everett Jordan Lake Water Supply Storage $ 200,000
    (2) Wilmington Harbor Maintenance –
    (3) Morehead City Harbor Maintenance 50,000
    (4) Water Resources Planning in Support of Session Law 2010 143 –
    (5) John H. Kerr Dam and Reservoir Sec. 216 – (50/50) 50,000
    (6) Planning Assistance to Communities (50/50) 50,000
    (7) Aquatic Plant Control, Statewide and Lake Gaston (50/50) 100,000
    (8) Wilmington Harbor Improvements Feasibility (50/50) 250,000
    (9) Belhaven Harbor – CAP – Sec. 1135 (75/25) –
    (10) Concord Streams, NC Sec. 206 (65/35) –
    (11) Manteo Old House Channel – CAP – Sec. 204 (65/25) 1,225,000
    (12) Wilmington Harbor Deepening (75/25) 300,000
    (13) Bogue Banks Coastal Storm Damage Reduction Study – (50/50) 50,000
    (14) West Onslow Beach (Topsail Beach) PED (75/25) –
    (15) Surf City/NTB Coastal Storm Damage Reduction Study – PED (75/25) 85,000
    (16) Neuse River Basin Restoration Feasibility Study (50/50) 300,000
    (17) Currituck Sound Environmental Restoration Study (50/50) 275,000
    (18) Princeville Flood Damage Reduction (50/50) 100,000
    (19) State Local Projects 500,000
    (20) Agricultural Water Resources Assistance Program 1,000,000

    TOTALS $ 4,535,000

    SECTION 30.3.(b) Authorizes DENR to adjust allocations among projects as needed. Also permits DENR to use funds resulting from delayed projects or projects completed at a lower cost to fund the following:
    (1) U.S. Army Corps of Engineers project feasibility studies.
    (2) U.S. Army Corps of Engineers projects whose schedules have advanced and require state matching funds in fiscal year 2011 12.
    (3) State local water resources development projects.
    Specifies that unexpended or unencumbered funds designated for the purposes in subdivisions (1) through (3) will revert to the General Fund at the end of 2012-13.
    SECTION 30.3.(c) Specifies reporting requirements for DENR.
    SECTION 30.3.(d) Provides that specified funds appropriated for a water resources development project will provide no more than 50% of the nonfederal portion of funds for the project, for projects in which a local government or local governments participate.
    SECTION 30.3.(e) Enacts new subsection (c1) to GS 143-215.73A, requiring DENR to provide information to appropriate local government officials on certain funding availability and requirements at least 60 days before preparing the Water Resources Development Plan.

    NON GENERAL FUND CAPITAL IMPROVEMENT AUTHORIZATIONS
    SECTION 30.4.(a) Authorizes the following capital projects to be funded with receipts or from other non-General Fund sources.

    Name of Project Amount of Non General Fund
    Funding Authorized for FY 2011 2012

    Department of Correction
    OSDT and DCC Search Trailer $ 45,400
    Statewide Emergency Fund for Small Storage Buildings 85,000
    Statewide Emergency Fund for Visitors Registration 500,000

    Department of Crime Control and Public Safety
    High Point Readiness Center – Addition/Alteration 1,551,000
    Greensboro Readiness Center – Addition/Alteration 306,000
    Murphy Firefighting Team Support Facility 2,946,000
    Morrisville Flight Facility Fixed Wing Hangar 8,815,000
    Statewide Master Planning Support Services – Ph III 125,000
    Statewide Master Planning Support Services – Ph IV 100,000
    Statewide Master Planning Support Services – Ph V 100,000
    Camp Butner Operations Readiness Training Center – Ph I 1,612,000

    Department of Cultural Resources
    USS North Carolina Battleship Major Hull Repairs 1,914,000
    Construction of Fort at Fort Dobbs State Historical Site 2,600,000

    Department of Environment and Natural Resources
    Zoo – New Restrooms at Elephant/Rhino Exhibit 300,000
    Aquarium – Roanoke Island Turtle Rehabilitation Center 500,000

    Wildlife Resources Commission
    Agency Land Purchases 7,500,000
    Watha Hatchery Replacement of 3 Residences 150,000
    Fishing Access Areas – New Construction 240,000
    Boating Access Areas – New Construction 800,000
    Repair & Renovations 1,105,000

    TOTAL AMOUNT OF NON GENERAL FUND CAPITAL
    PROJECTS AUTHORIZED $31,294,400

    SECTION 30.4.(b) Transfers $30,000 from funds deposited with the State Treasurer in a capital improvement account to the Department of Agriculture and Consumer Services for costs related to the plant conservation program.

    REPAIRS AND RENOVATIONS RESERVE ALLOCATION
    SECTION 30.5.(a) Allocates 50% of the funds in the Reserve for Repairs and Renovations for 2011-12 to the UNC Board of Governors for repairs and renovations, and allocates 50% to the Office of State Budget and Management for repairs and renovations. Requires prior consultation with the Joint Legislative Commission on Governmental Operations before allocation or reallocation of the funds.
    SECTION 30.5.(b) Directs a portion of the funds allocated to the UNC Board of Governors to be used to install fire sprinklers in university residence halls, as specified. Includes reporting requirement.
    SECTION 30.5.(c) Directs a portion of the funds allocated to the UNC Board of Governors to be used for campus public safety improvements.

    PROCEDURES FOR DISBURSEMENT OF CAPITAL FUNDS
    SECTION 30.6. States that the appropriations made by the 2011 General Assembly for capital improvements must be disbursed for the purposes provided by this act. Prohibits an expenditure of funds by any state department, institution, or agency until an allotment has been approved by the Governor. Specifies that, prior to the award of construction contracts for projects to be financed in whole or in part with self liquidating appropriations, the Governor must approve the elements of the method of financing of those projects, including the source of funds, interest rate, and liquidation period; however, if the Governor approves the method of financing a project, the Governor must report that action to the Joint Legislative Commission on Governmental Operations at its next meeting.
    Provides that where direct capital improvement appropriations include the purpose of furnishing fixed and movable equipment for any project, those funds for equipment are not subject to transfer into construction accounts, except as authorized by the Governor. Requires the Governor to review and approve expenditures for fixed and movable equipment and furnishings.
    Requires capital improvement projects authorized by the 2011 General Assembly to be completed within the limits of the amounts of the direct or self liquidating appropriations provided, except as otherwise provided in this act. States that capital improvement projects authorized by the 2011 General Assembly for the design phase only must be designed within the scope of the project, as defined.

    UNC NON-GENERAL FUND CAPITAL PROJECTS
    Identical to the provisions in the 2nd edition.

    PART XXXI. FEES
    SECTIONS 31.1 through 31.31. Identical to revenue provisions included in the 2nd edition.

    PART XXXII. MISCELLANEOUS PROVISIONS

    STATE BUDGET ACT APPLIES
    SECTION 32.1. States that the provisions of the State Budget Act, GS Chapter 143C, are reenacted and will remain in full force and effect and are incorporated in this act by reference.

    MOST TEXT APPLIES ONLY TO THE 2011 2013 FISCAL BIENNIUM
    SECTION 32.2. Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2011 13 fiscal biennium, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2011 13 fiscal biennium.

    EFFECT OF HEADINGS
    SECTION 32.3. States that the headings in the act are for reference only, and do not expand, limit, or define the text of the act, except for specific effective dates.

    COMMITTEE REPORT
    SECTION 32.4.(a) Specifies that The House Appropriations Committee Report on the Continuation, Expansion, and Capital Budgets dated April 27, 2011, which was distributed in the House of Representatives and used to explain this act, indicates action by the General Assembly on this act and will be used to construe this act, as provided in the State Budget Act, Chapter 143C of the General Statutes, and will be considered a part of this act and printed as a part of the Session Laws.
    SECTION 32.4.(b) States that the budget enacted by the General Assembly is for the maintenance of the various departments, institutions, and other spending agencies of the state for the 2011 13 biennial budget as provided in GS 143C 3 5, and includes appropriations of state funds as defined in GS 143C 1 1(d)(25). States that the Committee Report sets out adjustments to “The State of North Carolina Governor’s Recommended Budget, 2011-2013” and related budget documents, submitted by the Governor on February 15, 2011.
    SECTION 32.4.(c) Specifies that the budget enacted by the General Assembly will also be interpreted in accordance with GS 143C 5 5, the special provisions in this act, and other appropriate legislation. States that the budget enacted by the General Assembly will prevail in a conflict between the line-item budget certified by the Governor and the budget enacted by the General Assembly.

    SEVERABILITY CLAUSE
    SECTION 32.5. If any section or provision of this act is declared unconstitutional or invalid by the courts, it does not affect the validity of this act as a whole or any part other than the part declared to be unconstitutional or invalid.

    EFFECTIVE DATE
    SECTION 32.6. Except as otherwise provided, this act becomes effective July 1, 2011.


  • Summary date: Apr 26 2011 - View summary

    House committee substitute, with amendments from the House Finance Committee engrossed, makes the following changes.

    PARTS I-XXIX: RESERVED

    PART XXX: CAPITAL PROJECTS

    UNC NON-GENERAL FUND CAPITAL PROJECTS
    SECTION 30.7. Authorizes the planning or construction by certain constituent institutions of The University of North Carolina of the following capital improvement projects, financed by specified funds, revenue bonds, or certain special obligation bonds, as detailed. Allows the Governor to authorize an increase or decrease in the cost of funding, or a change in the method of funding. Effective when the act becomes law.

    Appalachian State University
    Winkler Residence Hall Renovation $ 11,805,000

    East Carolina University
    Athletic Facilities Expansion and Improvement – Phase 4
    Auxiliary Practice Gymnasium 15,000,000

    Fayetteville State University
    Rudolph Jones Student Center Expansion and Renovation 23,289,021

    North Carolina A&T State University
    New Health Center 10,000,000

    North Carolina Central University
    Chidley Residence Hall Expansion and Renovation 41,193,000

    North Carolina State University
    Centennial Campus Housing Complex 129,000,000
    Lee Residence Hall and Sullivan Residence Hall 6,000,000

    The University of North Carolina at Chapel Hill
    Carolina Inn Renovation – Phase 2 9,000,000
    Woollen Gymnasium Renovation – Phase 2 2,650,000

    The University of North Carolina at Charlotte
    New Residence Hall – Phase X 31,045,802
    New Residence Hall – Phase XI 40,837,005
    Residence Dining Hall Replacement 29,176,738
    Parking Deck J 27,418,000

    The University of North Carolina at Greensboro
    Student Recreation Center 91,000,000
    Tower Village II Residence Hall Acquisition 34,500,000
    Campus Police Building 10,030,000
    Village Parking Deck 10,877,000

    The University of North Carolina at Pembroke
    Student Health Services Comprehensive Renovation and Addition 3,950,000

    Western Carolina University
    Walker Residence Hall Expansion and Renovation 17,289,000

    The University of North Carolina at Chapel Hill
    Mary Ellen Jones Renovation – Phase 1 4,000,000
    Research Building at Carolina North 6,000,000

    The University of North Carolina at Charlotte
    New Residence Hall – Phase XII 3,840,741
    Cedar, Hickory, and Sycamore Residence Halls Renovation 750,000

    PART XXXI: FEES

    EDUCATION/DRIVER EDUCATION REFORM
    SECTION 31.1. Amends GS 115C-215.1 to provide for a standardized driver education program, administered by the Department of Public Instruction. Expands eligibility to home school students. Adds requirement for one hour of motorcycle safety awareness training. Adds requirement that State Board of Education establish and implement a strategic plan for this program and specifies minimum elements of that plan. Requires local boards of education to offer noncredit courses using standardized curriculum provided by the Department of Public Instruction. Allows local boards of education to charge fee of up to $75 for the course. Repeals GS 115C-215, recodifies portions of GS 20-88.1 and makes other conforming amendments.

    EDUCATION/STATE BOARD AUTHORITY TO ESTABLISH GED TESTING FEES
    SECTION 31.2. Amends GS 115D-5(s) to clarify that the State Board of Community Colleges may establish fees for General Education Development retesting.

    EDUCATION/NORTH CAROLINA VIRTUAL PUBLIC SCHOOLS ALLOTMENT FORMULA
    SECTION 31.3. Directs the State Board of Education to implement an allotment formula for the North Carolina Virtual Public Schools (NCVPS) beginning with the 2011-12 school year. Provides that only funds provided through this allotment formula may be used to fund NCVPS. Specifies the allotment formula. Provides that the NCVPS program is to be provided at no cost to all NC students enrolled in public schools and schools operated by the Department of Defense and the Bureau of Indian Affairs. Limits courses offered to high school courses and excludes any courses in physical education. Requires State Board of Education to establish a per student fee structure for out-of-state, private school, and home school students and requires that NCVPS provide online enrollment process for these students beginning with the 2012-13 school year. Requires NCVPS to develop and submit to the State Board of Education by September 15, 2011 a plan for revenue from sale of courses to out-of-state educational entities. Provides for consolidation of all e-learning opportunities offered by state-funded entities other than charter schools and alignment of these courses with the standard course of study. Caps administration costs at 15% per year of funds transferred to NCVPS.

    NER/COMMERCE/SET REGULATORY FEES FOR UTILITIES COMMISSION
    SECTION 31.4. Sets public utility regulatory fee under GS 62-302(b)(2) at 0.12% of jurisdictional revenues earned during each quarter that begins on or after July 1, 2011. Sets the electric membership corporation regulatory fee under GS 62-302(b1) at $200,000 for the 2011-12 fiscal year. Effective July 1, 2011.

    NER/AGRICULTURE/INCREASE FEES FOR PET SHOPS, AUCTIONS, KENNELS, AND DEALERS
    SECTION 31.5. Amends GS 19A-27, 19A-28, and 19A-29 to increase from $50 to $75 the costs of licenses to operate pet shops, public auction and boarding kennels, and dealers respectively.

    NER/AGRICULTURE/REPEAL BOARD OF AGRICULTURE REVIEW OF FEE SCHEDULES
    SECTION 31.6. Repeals GS 106-6.1(b), which required biennial fee reports.

    NER/AGRICULTURE/FEES FOR OUT-OF-STATE SOIL TESTS AND EXPEDITED SOIL TESTS
    SECTION 31.7. Amends GS 106-22(17) to allow for out-of-state soil tests and expedited soil tests and provides that fees for these tests must be no less than $5 and $100 respectively.

    NER/AGRICULTURE/TECHNICAL CORRECTIONS REGARDING COMMERCIAL FERTILIZER INSPECTION FEE AND PESTICIDE TECHNICIAN IDENTIFICATION CARD RENEWAL FEE
    SECTION 31.8. Amends GS 106-671(b) to increase commercial fertilizer inspection fee from 25¢ to 50¢ per ton. Amends GS 106-65.31(b1) to increase pesticide technician annual renewal fee from $25 to $40.

    NER/AGRICULTURE/INCREASE AGRICULTURAL LIMING MATERIALS TONNAGE FEES
    SECTION 31.9. Amends GS 106-92.8 to increase fees for agricultural liming materials and landplaster from 10¢ to 50¢ per ton.

    NER/AGRICULTURE/INCREASE ANTIFREEZE DISTRIBUTION REGISTRATION FEE
    SECTION 31.10. Amends GS 106-579.4 to increase the license and inspection fee for each brand of antifreeze from $250 to $500.

    NER/ENVIRONMENT/REDUCE PORTION OF CERTIFICATE OF TITLE FEES CREDITED TO MERCURY SWITCH REMOVAL ACCOUNT
    SECTION 31.11 Amends GS 20-85(a1) to reduce from $1 to 50¢ of the amount collected for each specified motor vehicle certificate of title and registration fee that is transferred to the Department of Environment and Natural Resources for the Mercury Switch Removal Account.

    NER/ENVIRONMENT/DIVERT SCRAP TIRE TAX PROCEEDS TO GENERAL FUND
    SECTION 31.12. Effective for the taxes levied during the 2011-12 fiscal year, provides that the 17% of the net Scrap Tire Disposal Tax proceeds previously mandated by GS 105-187.19(b) to be deposited to the Scrap Tire Disposal Account be deposited instead to the General Fund.

    NER/ENVIRONMENT/DIVERT WHITE GOODS TAX PROCEEDS TO GENERAL FUND
    SECTION 31.13. Effective for the taxes levied during the 2011-12 fiscal year, provides that the 20% of the net White Goods Disposal Tax proceeds previously mandated by GS 105-187.24 to be deposited to the White Goods Management Account be deposited instead to the General Fund.

    NER/ENVIRONMENT/STUDY FOOD AND LODGING FEES AND THEIR DISTRIBUTION BETWEEN THE STATE PROGRAM AND THE LOCALS PROGRAMS
    SECTION 31.14. Directs the Fiscal Research Division to study the administration and financing of the state’s food, lodging, and institution sanitation programs and rules, and to report to specified entities by May 1, 2012.

    NER/ENVIRONMENT/ADDITIONAL USES OF HAZARDOUS WASTE FEES
    SECTION 31.15. Amends GS 130A-294.1(b) to allow hazardous waste fees to be used to provide oversight of response activities for inactive hazardous substance or waste disposal sites, and to provide compliance and prevention activities to prevent disposal of hazardous wastes in solid waste management facilities.

    NER/LABOR/REPEAL STATUTE REQUIRING BIENNIAL REVIEW OF FEES BY DEPARTMENT
    SECTION 31.16. Repeals GS 95-14.1, which requires Department of Labor biennial review of fees.

    NER/NATURAL RESOURCES/DIVERT PORTION OF DEED STAMP TAX REVENUE SOURCE FOR NATURAL HERITAGE TRUST FUND
    SECTION 31.17. Effective for taxes levied during 2011-12, provides that $8 million of the funds previously mandated by GS 105-228.30(b) and 113-77.9 to be deposited to the Natural Heritage Trust Fund be deposited to the General Fund instead.

    NER/NATURAL RESOURCES/PARKS AND RECREATION TRUST FUND; ALLOCATION OF DEED STAMP TAX PROCEEDS CREDITED TO FUND
    SECTION 31.18. Effective for taxes levied during 2011-12, provides for the following allocation of funds in the Parks and Recreation Trust Fund: (1) $6 million for operating expenses of the Division of Parks and Recreation in the Department of Environment and Natural Resources; (2) up to $8 million for state parks capital projects; (3) up to $4.23 million for grants to local governments; and (4) up to $750,000 for the Coastal and Estuarine Water Beach Access Program. Provides that any funds in this Trust Fund in excess of the above amounts during the 2011-12 fiscal year shall be used according to GS 113-44.15(b).

    NER/NATURAL RESOURCES/DIVERT PORTION OF DEED STAMP TAX REVENUE SOURCE FOR PARKS AND RECREATION TRUST FUND
    SECTION 31.19. Effective for taxes levied during 2011-12, provides that $8.435 million of the funds previously mandated by GS 105-228.30 and 113-44.15 to be deposited to the Parks and Recreation Trust Fund be deposited to the General Fund instead.

    NER/NATURAL RESOURCES/NEW FUNDING SOURCE FOR WILDLIFE RESOURCE COMMISSION OPERATING BUDGET
    SECTION 31.20. Effective for the 2011-12 fiscal year, directs the Office of State Budget and Management, State Controller, and the Wildlife Commission to jointly effectuate the transition from the Commission receiving sales tax proceeds to General Fund appropriations of $18.5 million for the operating budget of the Wildlife Resources Commission. Repeals GS 105-164.44B.

    NER/NATURAL RESOURCES/REPEAL DENR REVIEW OF FEE SCHEDULES
    SECTION 31.21. Repeals GS 143B-279.2(4), which requires the Department of Environment and Natural Resources to review and make recommendations about all fees charged in programs under its authority.

    NER/NATURAL RESOURCES/NO NEW FEES FOR PARKING IN STATE PARKS
    SECTION 31.22. Prohibits any increase in fees for parking in state parks over the amounts charged in fiscal year 2011-12.

    JPS/AOC/INCREASE CERTAIN COURT COSTS
    SECTION 31.23.(a) Rewrites GS 7A-304(a)(4) to increase the General Court of Justice fee in criminal cases from $100.50 to $124.50 for cases in district court, and from $102.50 to $154.50 for cases in superior court, and decrease from $2.05 to $1.00 the portion of each fee remitted to the N.C. State Bar for the provision of legal services under GS 7A-474.4.
    SECTION 31.23.(b) Rewrites GS 7A-305(a)(2) to increase the General Court of Justice fee in civil cases from $125.00 to $180.00 for cases in superior court; from $80.00 to $130.00 for cases in district court; and from $55.00 to $80.00 for cases assigned to magistrates. Reduces from $2.05 to $1.00 the portion of each fee remitted to the N.C. State Bar for the provision of legal services under GS 7A-474.4. Adds new GS 7A-305(a5) providing for the assessment of additional fees for every civil action, except domestic violence actions under GS Chapter 50B, in which a party files a counterclaim or cross-claim, as follows:
    • facilities fee of $12.00 for cases heard by a magistrate and $16.00 for cases in district and superior court, to be paid to the municipality or county providing court facilities;
    • $4.00 in each case for upgrade, maintenance and operation of judicial and county courthouse phone systems;
    • for support of the General Court of Justice, $180.00 for cases in superior court and an additional $1,000.00 if a case is assigned as a complex business case; $130.00 for cases in district court, except $80.00 if the case is assigned to a magistrate. Directs that $1.95 of each fee be remitted to the State Bar for legal services described in GS 7A-474.4 ($1.00) and GS 7A-474.19 ($.95).
    Adds new GS 7A-305(f), providing for a fee of $20.00 for any motion filed with the clerk that is not listed in GS 7A-308 (miscellaneous fees and commissions).
    SECTION 31.23.(c) Rewrites GS 7A-306(a)(2) to increase the General Court of Justice fee in special proceedings from $75.00 to $106.00, and to decrease from $2.05 to $1.00 the portion of each fee remitted to the N.C. State Bar for the provision of legal services under GS 7A-474.4. Adds new GS 7A-306(g) providing for a General Court of Justice fee of $20.00 for any motion filed in a special proceeding that is not listed in GS 7A-308 (miscellaneous fees and commissions).
    SECTION 31.23.(d) Rewrites GS 7A-307(a)(2) to increase the General Court of Justice fee in estate matters from $75.00 to $106.00, and to decrease from $2.05 to $1.00 the portion of each fee remitted to the N.C. State Bar for the provision of legal services under GS 7A-474.4. Adds new GS 7A-307(a)(4) providing for a General Court of Justice fee of $20.00 for any motion filed in an estate matter that is not listed in GS 7A-308 (miscellaneous fees and commissions).
    SECTION 31.23.(e) Rewrites GS 7A-308(a) to increase from $150.00 to $300.00 the fee for foreclosure under power of sale in deed of trust or mortgage, and to add a fee of $15.00 in civil matters for all alias and pluries summons issued and all endorsements issued on an original summons.
    SECTION 31.23.(f) Repeals GS 7A-34.1, which provides that cover sheets are not required for papers filed in civil actions after the initial filing if the subsequent filing contains specified information.

    JPS/AOC/COMMUNITY MEDIATION CENTERS/WORTHLESS CHECK PROGRAMS
    SECTION 31.24.(a) Adds new GS 14-107.2(b1) providing that a community mediation center may establish and charge fees for services in the collection of worthless checks as part of a mediation program and may assist the Administrative Office of the Courts and district attorneys establish worthless check programs in any districts in which such programs have not been established.
    SECTION 31.24.(b) Rewrites GS 71-38.5(a) (clearly intends to amend GS 7A-38.5(a)) to provide that a community mediation center may establish and charge fees for its services.
    SECTION 31.24.(c) Rewrites GS 7A-38.6(a) to require all community mediation centers, regardless of whether they receive state funds, to report annually to the Mediation Network of North Carolina on their funding and activities.
    SECTION 31.24.(d) Rewrites GS 7A-38.7 to provide that the $60.00 mediation fee required by that provision be used to support services of community mediation centers and the Mediation Network of North Carolina (rather than the General Court of Justice); provide that the clerk remit the fees to the Mediation Network; authorize the Network to retain up to $3.00 of each fee for administrative expenses; and require that the remainder be remitted to the community mediation center that mediated the case.

    JPS/AOC/INCREASE INTERSTATE COMPACT FEE
    SECTION 31.25. Rewrites GS 148-65.7(a) to increase from $150.00 to $250.00 the transfer application fee required of someone who has been convicted in this state and requests transfer to another state.

    JPS/AOC/CONTINGENT COURT COST INCREASES FOR COUNTIES
    SECTION 31.26.(a) Contingent on the enactment of House Bill 642, or other legislation that requires confinement of a misdemeanant with a period of confinement of six months or less to be in a local facility, rewrites GS 7A-304(a)(2) to increase the facilities fee for criminal cases in district court from $12.00 to $30.00.
    SECTION 31.26.(b) Contingent on the enactment of House Bill 642, or other legislation that requires confinement of a misdemeanant with a period of confinement of six months or less to be in a local facility, adds new GS 7A-304(a)(4b) to add a fee of $50.00 to the costs in cases under GS Chapter 20 resulting in a conviction of an improper equipment offense, to be remitted to the Department of Correction for contractual services to reduce county jail populations.
    SECTION 31.26.(c) Contingent on the enactment of House Bill 642, or other legislation that requires confinement of a misdemeanant with a period of confinement of six months or less to be in a local facility, rewrites GS 7A-311(a)(1)a. to increase the civil process fee from $15.00 to $30.00.
    SECTION 31.26.(d) Contingent on the enactment of House Bill 642, or other legislation that requires confinement of a misdemeanant with a period of confinement of six months or less to be in a local facility, rewrites GS 7A-313 to increase the daily jail fee from $5.00 to $10.00.
    SECTION 31.26.(e) Contingent on the enactment of House Bill 642, or other legislation that requires confinement of a misdemeanant with a period of confinement of six months or less to be in a local facility, rewrites GS 153A-225(a) to increase from $10.00 to $20.00 the amount a local confinement facility may charge for the provision of nonemergency medical care for prisoners.

    GENGOV/INS/SET INSURANCE REGULATORY CHARGE
    SECTION 31.27(a) Provides that the percentage rate to be used to calculate the insurance regulatory charge under GS 58-6-25 is 6% for the 2011 calendar year.
    SECTION 31.27(b) Makes the provision effective when it becomes law.

    IT/INFORMATION TECHNOLOGY FUND/AVAILABILITY
    SECTION 31.28.(a) Sets amounts available to support appropriations from the Information Technology Fund and appropriates funds from the Fund for fiscal years 2011-12 and 2012-13 as follows.

    FY 2011 2012 FY 2012 2013

    Appropriation from General Fund $4,458,142 $6,158,142
    Interest $ 100,000 $ 100,000
    IT Fund Balance June 30 $2,454,934 $1,227,467
    Total Funds Available $7,013,076 $7,485,609

    Appropriations are made from the Information Technology Fund for the 2011 2013 fiscal biennium as follows:
    FY 2011 2012 FY 2012 2013
    Information Technology Operations
    Center for Geographic Information and Analysis $ 599,347 $ 599,347
    Enterprise Security Risk Management $1,064,148 $1,064,148
    Enterprise Project Management Office $1,673,285 $1,673,285
    Architecture and Engineering $ 648,000 $ 648,000
    Criminal Justice Information Network $ 166,422 $ 166,422
    Statewide IT Procurement $0 $0
    ITS Overhead Reduction ($91,486) ($91,486)
    Subtotal Information Technology Operations $4,059,716 $4,059,716
    Information Technology Projects
    State Portal $0 $0
    IT Consolidation $1,320,893 $ 820,893
    Transfer to OSC for Data Integration $ 100,000 $ 100,000
    Subtotal Information Technology Projects $1,420,893 $ 920,893
    Data Integration License Funding Transfer to State Agencies $ 200,000 $2,400,000
    Position Transfer to Office of State Budget and Management $ 105,000 $ 105,000
    Total $5,785,609 $7,485,609

    SECTION 31.28.(b) Provides that statewide information technology procurement will be funded through a fee charged to agencies using the services, and directs the Office of the State Chief Information Officer to provide a fee schedule to allow cost recovery to the Office of State Budget and Management.
    SECTION 31.28.(c) Requires that by September 1 of each year, data integration funding in the Information Technology Fund be transferred to state agencies in proportion to their use of data integration licenses at that point. Directs the State Chief Information Officer to report by September 2 of each year on the status of the transfers. Provides that any licensing requirements after the 2011-13 fiscal biennium are the responsibility of the participating agency, and requires the State Chief Information Officer to notify affected agencies of this requirement by September 1, 2011, and to report on that notification by September 2, 2011.
    SECTION 31.28(d). Makes the section effective when it becomes law.

    TRANSPORTATION/DIVISION OF MOTOR VEHICLES BULK DATA
    SECTION 31.29.(a) Adds new GS 20-43.1(e) providing that the Division of Motor Vehicles may provide copies of partial crash report data collected under GS 20-166.1, partial driver license data kept pursuant to GS 20-26(a), and partial vehicle registration application data collected pursuant to GS 20-52, in bulk form to persons or entities for non-official uses, upon payment of a fee of 3 cents per individual record. Prohibits the furnishing of such data except upon execution by the recipient of a written agreement to comply with the Driver’s Privacy Protection Act of 1994, as amended, 18 U.S.C. 2721, et seq. Provides that the information released is not a public record under GS Chapter 132.

    TRANSPORTATION/FERRY DIVISION TOLLING ON ALL ROUTES
    SECTION 31.30.(a) Rewrites GS 136-82, effective April 1, 2012, to require that all ferry routes be tolled in an amount established by the Board of Transportation.
    SECTION 31.30.(b) Requires the Board of Transportation to toll all ferry routes no later than April 1, 2012, but encourages it to do so before that date. Requires the Board, in setting tolls for ferry routes, to consider the needs of commuters and other frequent passengers.

    PART XXXI-A: EFFECTIVE DATE
    SECTION 31A.1. Provides that unless provided otherwise, the act becomes effective July 1, 2011.


  • Summary date: Mar 1 2011 - View summary

    Blank bill.