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.