NORTH CAROLINA GENERAL ASSEMBLY

1977 SESSION

 

 

CHAPTER 1136

SENATE BILL 920

 

 

AN ACT TO MODIFY CURRENT OPERATIONS AND CAPITAL IMPROVEMENTS APPROPRIATIONS FOR NORTH CAROLINA STATE GOVERNMENT FOR THE FISCAL YEAR 1978-79, AND TO MAKE OTHER CHANGES IN THE BUDGET OPERATION OF THE STATE.

 

The General Assembly of North Carolina enacts:

 

—APPROPRIATIONS FOR MAXIMUMS/REVERT BALANCES

Section 1.  The appropriations made in this act are for maximum amounts necessary to provide the services and accomplish the purposes described in the State budget. Savings shall be effected where the total amounts appropriated shall not be required to perform these services and accomplish these purposes, and except as allowed by the Executive Budget Act or this act, the savings shall be reverted to the appropriate fund at the end of the fiscal year.

An outline of the provisions of the act follows this section. The outline shows the heading "—CONTENTS/INDEX—" and it lists by general category the descriptive captions for the various sections and groups of sections that make up the act.

—CONTENTS/INDEX—

[This outline is designed for reference only, and it in no way limits, defines, or prescribes the scope or application of the text of the act.]

—APPROPRIATIONS FOR MAXIMUMS/REVERT BALANCES

Section 1.

PART I.—CURRENT OPERATIONS—GENERAL FUND

Sec. 2.

PART II.—CURRENT OPERATIONS—HIGHWAY FUND

Sec. 3.

PART III.—CAPITAL IMPROVEMENTS—GENERAL FUND

Sec. 4.

PART IV.—CAPITAL IMPROVEMENTS—HIGHWAY FUND

Sec. 5.

PART V.—GENERAL PROVISIONS

—HIGHWAY FUND UNRESERVED BALANCES

Sec. 6.

—FEDERAL REVENUE SHARING/CAPITAL APPROPRIATION

Sec. 7.

—FEDERAL ANTIRECESSION FUNDS

Sec. 8.

PART VI.—SPECIAL PROVISIONS—SALARIES AND BENEFITS

—MOST STATE WORKERS/SIX PERCENT SALARY INCREASE ADMIN.

Sec. 9.

—LEGISLATIVE EMPLOYEES/SIX PERCENT SALARY INCREASE

Sec. 10.

—JUDICIAL BRANCH OFFICIALS/SALARIES

Sec. 11.

—ASSISTANT DISTRICT ATTORNEYS/CLASSIFICATION AND PAY PLAN

Sec. 11.1.

—MAGISTRATES/INCREASE MAXIMUM SALARY

Sec. 12.

—CLERKS OF COURT/SALARIES

Sec. 13.

—PUBLIC SCHOOL PERSONNEL/LONGEVITY

Sec. 14.

—PUBLIC SCHOOL DRIVER TRAINING/SUMMER SALARY SCHEDULE

Sec 15.

—PUB. SCHOOL MAIDS & JANITORS, & PRINCIPALS' CLERKS/SALARIES

Sec. 16.

—PUBLIC SCHOOL ADM ALLOCATED EMPLOYEES/SALARY INCREASES

Sec. 17.

—RETIRED TEACHERS AND STATE EMPLOYEES/HOSPITALIZATION

Sec. 18.

Sec. 18.1.

—COMMUNITY COLLEGES PERSONNEL/SALARY INCREASES

Sec 19.

—HIGHER EDUCATION ACADEMIC PERSONNEL/SALARY INCREASES

Sec. 20.

—SALARY-RELATED CONTRIBUTIONS/EMPLOYERS

Sec. 21.

—SALARY ADJUSTMENT APPROPRIATIONS/AUTHORIZED TRANSFERS

Sec. 22.

PART VII.—SPECIAL PROVISIONS—HUMAN RESOURCES

—MEDICAID SCHEDULES

Sec. 23.

Sec. 23.1.

—COMMUNITY MENTAL HEALTH CENTERS

Sec. 24.

PART VIII.—SPECIAL PROVISIONS—PUBLIC EDUCATION

—SCHOOL BUS TRANSPORTATION/AREAS OF DANGEROUS WALKING COND.

Sec. 25.

—EXCEPTIONAL CHILDREN PROGRAM

Sec. 26.

PART IX.—SPECIAL PROVISIONS—COMMUNITY COLLEGES

—FULL-TIME EQUIVALENT TEACHING POSITIONS

Sec. 27.

Sec. 27.1.

PART X.—SPECIAL PROVISIONS—HIGHER EDUCATION

—EDUCATIONAL TELEVISION NETWORK IMPROVEMENTS/APPRN. & REPORT

Sec. 28.

—AID TO PRIVATE COLLEGES

Sec. 29.

—INSTITUTIONAL TRUST FUNDS/UNIVERSITY OF NORTH CAROLINA

Sec. 30.

—SPECIAL FUNDS/UNIVERSITY OF NORTH CAROLINA

Sec. 31.

—STUDENT AUXILIARY ENTERPRISE FUNDS/UNIV. OF NORTH CAROLINA

Sec. 32.

—DEPOSIT OF FEDERAL FUNDS/UNIVERSITY OF NORTH CAROLINA

Sec. 33.

Sec. 33.1.

—ABC APPROPRIATIONS MODIFICATIONS/N.C. MEMORIAL HOSPITAL

Sec. 34.

Sec. 35.

PART XI.—SPECIAL PROVISIONS—GEN. GOVT. & TRANS., & OTHER

—STATE AUDITOR/AUDITS PERFORMED FOR FEDERAL AGENCIES

Sec. 36.

—JUVENILE PROBATION AND AFTERCARE/FUNDING DELETED

Sec. 37.

—TRAVEL ALLOWANCE FOR STATE EMPLOYEES

Sec. 38.

Sec. 38.1.

—EXPENSE ALLOWANCE/GOVERNOR

Sec. 39.

—EXPENSE ALLOWANCE/LIEUTENANT GOVERNOR

Sec. 40.

PART XII.—SPECIAL PROVISIONS—APPROPRIATIONS ACT

—RETAIN 1977 APPROPRIATIONS LIMITATIONS AND DIRECTIONS

Sec. 41.

Sec. 42.

—EXECUTIVE BUDGET ACT REFERENCE

Sec. 43.

—EFFECT OF MOST LIMITATIONS AND DIRECTIONS IN TEXT/ONLY 78-79

Sec. 44.

—SEVERABILITY CLAUSE

Sec. 45.

—CAPTIONS NOT LIMIT TEXT/ONLY FOR REFERENCE

Sec. 46.

—EFFECTIVE DATE

Sec. 47.

PART I.—CURRENT OPERATIONS—GENERAL FUND

Sec. 2.  The appropriations from the General Fund for the 1978-79 fiscal year in the 1978-79 column of the schedule in Section 2 of 1977 Session Laws Chapter 802 are repealed, and appropriations from the General Fund for the maintenance of the State departments, institutions, and agencies, and for other purposes as enumerated are made for the fiscal year ending June 30, 1979, according to the following schedule:

Current Operations–General Fund                                                              1978-79

General Assembly

      01. Operations                                                                                    6,897,045

      02. Salary Increase Reserve                                                                    248,417

     TOTAL General Assembly                                                                    7,145,462

Judicial Department

      01. Operations                                                                                  54,482,184

      02. Salary Increase Reserve                                                                 7,316,329

     TOTAL Judicial Department                                                               61,798,513

Governor's Office                                                                                      1,315,596

Lieutenant Governor's Office                                                                         201,404

Department of Administration                                                                   22,671,628

Department of Secretary of State                                                                  501,071

Department of State Auditor                                                                      4,561,131

Department of State Treasurer

      01. Operations                                                                                    1,707,183

      02. Hospitalization Reserve-Retired Employees                                    6,028,000

     TOTAL Department of State Treasurer                                                 7,735,183

Department of Justice                                                                              16,595,144

Department of Revenue                                                                           19,381,146

State Board of Elections                                                                               212,447

Department of Crime Control and Public Safety                                         6,003,957

Department of Commerce                                                                        11,336,447

Department of Insurance                                                                            3,122,310

Department of Labor                                                                                 2,998,450

Department of Correction                                                                        91,677,710

Department of Public Education

      01. Program Administration & Support                                              77,170,263

      02. Fiscal Administration & Support                                                910,791,628

      03. Salary Increase Reserve-Public School Employees                     105,820,659

     TOTAL Department of Public Education                                        1,093,782,550

Department of Community Colleges

      01. Operations                                                                                114,987,952

      02. Longevity                                                                                         364,984

      03. Merit Salary Increases                                                                   3,596,035

      04. Equipment                                                                                     6,070,358

      05. Salary Increase Reserve Community College Personnel                14,184,570

     TOTAL Community Colleges                                                            139,203,899

The University of North Carolina                                                                               

Board of Governors                                                                                                  

      01. General Administration                                                                   4,926,162

      02. Lump Sum Appropriations                                                           32,610,840

      03. Related Educational Programs                                                      20,196,342

      04. Agricultural Programs                                                                    1,266,400

      05. Reserve for Merit Increments                                                                        

         a. Sixteen Constituent Institutions                                                       5,441,496

         b. Agricultural Programs                                                                       433,992

         c. Memorial Hospital                                                                            124,512

      06. Salary Increase Reserve                                                                                

         a. Sixteen Constituent Institutions                                                     21,073,953

         b. Agricultural Programs                                                                    1,675,729

         c. Memorial Hospital                                                                            489,616

      07. University of North Carolina at Chapel Hill                                                    

         a. Academic Affairs                                                                         42,025,120

         b. Division of Health Affairs                                                             28,153,641

         c. Area Health Education Centers                                                    10,709,436

      08. North Carolina State University at Raleigh                                                     

         a. Academic Affairs                                                                         43,266,380

         b. Agricultural Experiment Station                                                    12,633,090

         c. Agricultural Extension Service                                                        9,685,985

      09. University of North Carolina at Greensboro                                  17,328,992

      10. University of North Carolina at Charlotte                                      14,165,941

      11. University of North Carolina at Asheville                                        3,104,751

      12. University of North Carolina at Wilmington                                     6,162,837

      13. East Carolina University                                                               22,890,481

      14. North Carolina Agricultural & Technical State University              10,245,009

      15. Western Carolina University                                                         11,092,421

      16. Appalachian State University                                                        14,889,126

      17. Pembroke State University                                                             3,889,368

      18. Winston-Salem State University                                                     4,612,195

      19. Elizabeth City State University                                                        3,568,574

      20. Fayetteville State University                                                           4,219,545

      21. North Carolina Central University                                                  8,938,073

      22. North Carolina School of the Arts                                                  2,222,945

      23. North Carolina Memorial Hospital                                               17,976,650

     TOTAL University of North Carolina                                                380,019,612

Department of Cultural Resources                                                            12,436,202

Department of Transportation                                                                                   

      01. Aid to Airports                                                                              1,616,571

      02. Mass Transit Aid                                                                           1,010,000

     TOTAL Department of Transportation                                                  2,626,571

Department of Human Resources                                                                              

      01. Central Administration                                                                   8,509,064

      02. Health Services                                                                            32,916,794

      03. Services for the Blind                                                                     3,822,729

      04. Vocational Rehabilitation                                                              10,283,275

      05. Mental Health Services                                                                                 

         a. Administration and Grant-in-aid                                                   45,137,630

         b. Alcoholic Rehabilitation Center, Black Mountain                            1,645,860

         c. Alcoholic Rehabilitation Center, Butner                                          1,154,629

         d. Walter B. Jones Alcoholic Rehabilitation Center, Greenville            1,188,933

         e. Dorothea Dix Hospital                                                                 15,744,051

         f. Broughton Hospital                                                                      13,299,042

         g. Western Carolina Center                                                               4,707,324

         h. Cherry Hospital                                                                           14,729,863

         i. O'Berry Center                                                                              6,195,186

         j. John Umstead Hospital                                                                 13,544,260

         k. Murdoch Center                                                                         13,015,209

         l. Caswell Center                                                                             14,774,125

         m. Wright School                                                                                 641,908

      06. North Carolina Orthopedic Hospital                                               1,185,000

      07. Lenox D. Baker Children's Hospital of North Carolina                      265,164

      08. Confederate Women's Home                                                            116,173

      09. North Carolina Specialty Hospital                                                                 

         a. General Administrative Office                                                           237,044

         b. McCain Hospital                                                                           1,643,568

         c. Western Carolina Hospital                                                             1,943,504

         d. Eastern North Carolina Hospital                                                    1,915,938

      10. Division of Youth Services                                                                            

         a. Operations                                                                                  10,033,563

         b. Salary Increase Reserve-Teachers                                                    204,714

      11. North Carolina School for the Deaf                                                4,545,835

      12. Eastern North Carolina School for the Deaf                                    2,449,020

      13. Central North Carolina School for the Deaf                                    1,620,632

      14. Governor Morehead School                                                          2,501,953

      15. Facility Services                                                                             6,272,643

      16. Social Services                                                                          144,857,998

      17. State Aid to Non-State Health & Welfare Agencies                       3,521,048

     TOTAL Department of Human Resources                                         384,623,679

Department of Natural Resources & Community Development                 24,031,103

Department of Agriculture                                                                        16,885,004

Debt Service-Interest                                                                               27,100,000

Debt Service-Redemption                                                                        25,900,000

Contingency & Emergency                                                                         1,960,000

Salary Adjustments of State Employees                                                      1,300,000

Reserve for Continuation of Hospital Benefits Increases of 1977-78           3,500,000

Reserve for Social Security                                                                        2,769,400

Reserve for Continuation of Longevity Increases of 1977-78                         647,500

Reserve for Continuation of Seventh Merit Step of 1977-78                       5,500,000

Reserve for Travel                                                                                        700,000

Salary Increase for State Employees Subject to State Personnel Act         57,866,948

Salary Increase for Personnel Exempt from the State Personnel Act

      & Utilities Commissioners                                                                       329,280

GRAND TOTAL CURRENT OPERATIONS–

      GENERAL FUND                                                                     $2,438,439,347

PART II.—CURRENT OPERATIONS—HIGHWAY FUND

Sec. 3.  The amounts appropriated from the Highway Fund for the 1978-79 fiscal year in the 1978-79 column of the schedule in Section 3 of 1977 Session Laws Chapter 802 are repealed, and appropriations from the Highway Fund for the expense of collecting revenues, for the service of the highway debt, and for the maintenance of transportation-related activities are made for the fiscal year ending June 30, 1979, according to the following schedule:

Current Operations–Highway Fund                                                           1978-79

Department of Transportation                                                                                   

      01. General Administration                                                                 11,163,319

      02. Highways

         a. Maintenance & Operations                                                          18,227,446

         b. State Construction

         (01) Primary Construction                                                               23,286,000

         (02) Secondary Construction                                                           23,427,785

         (03) Urban Construction                                                                   8,090,000

         (04) Access & Public Service Roads                                                    500,000

         (05) Bridge Replacements                                                                 5,212,300

         c. State Funds to Match Federal Highway Aid

         (01) Construction                                                                            47,873,400

         (02) Planning Survey & Highway Planning Research                          1,493,952

         d. State Maintenance

         (01) Primary                                                                                   47,529,381

         (02) Secondary                                                                               73,343,703

         (03) Urban                                                                                      13,908,202

         e. Ferry Operations                                                                           4,883,686

         f. State Aid to Municipalities                                                            32,957,337

         g. Merit Salary Increments for Central Offices and

Division of Highways                                                                       7,273,243

         h. Employers' Contributions for Central Offices and

Division of Highways

         (01) Social Security                                                                           7,721,126

         (02) Retirement                                                                               11,122,617

         (03) Hospital/Medical Insurance                                                        3,329,066

      03. Mass Transit Administration                                                              142,393

      04. Aeronautics Administration                                                                 34,154

      05. Motor Vehicles                                                                            25,660,134

      06. Salary Increase for Employees Subject to the

State Personnel Act                                                                     23,719,675

      07. Reserve for Continuation of Hospitalization Cost

Increases in 1977-78                                                                        438,396

      08. Salary Adjustment Fund                                                                    650,000

      09. Reserve for Continuation of Seventh Merit Increment Step             3,010,000

      10. Reserve for Continuation of Longevity Reserve                                  686,162

      11. Reserve for Social Security                                                               155,364

      12. Travel Reserve                                                                                   50,000

      13. Reserve for Contingencies                                                                 250,000

      14. Reserve to Correct Occupational Safety and

Health Act Deficiencies                                                                     500,000

      15. Debt Service                                                                               29,691,000

Appropriations for Other State Agencies                                                                   

      01. Crime Control & Public Safety                                                     29,927,994

      02. Other Agencies                                                                                             

         a. Department of Agriculture                                                              1,148,243

         b. Department of Commerce                                                                487,768

         c. Department of Labor                                                                            5,387

         d. Department of Revenue                                                                    804,776

         e. Department of State Auditor                                                             914,886

         f . Department of Community Colleges                                                  115,566

         g. Human Resources                                                                              53,894

         h. Correction                                                                                        500,000

GRAND TOTAL–HIGHWAY FUND                                               $460,288,355

PART III.—CAPITAL IMPROVEMENTS—GENERAL FUND

Sec. 4.  The items and amounts appropriated from the General Fund for the 1978‑79 fiscal year in the 1978-79 column in the schedule in Section 4 of 1977 Session Laws Chapter 681 and the total amount appropriated to begin July 1, 1978, in the first paragraph of Section 4 are repealed, and appropriations are made from the General Fund for use by State institutions, departments and agencies to provide for capital improvement projects according to the following schedule:

Capital Improvements–General Fund                                                          1978-79

DEPARTMENT OF ADMINISTRATION (TOTAL)                            10,240,000

      01. Repairs and Alterations to State Buildings in

the State Government Center                                                            150,000

      02. Two New Elevators for Justice Building                                            100,000

      03. Land Acquisition - State Government Center                                     150,000

      04. Land Acquisition - State Parks                                                          100,000

Less Receipts-Federal-BOR                                                             500,000

Subtotal, General Fund                                                                     500,000

      05. Hangar and Fuel Storage Facility for Helicopters                                 60,000

      06. Energy Retro-fitting Measures-State Buildings                                   500,000

      07. Architectural Barriers Removal-State Government Center                    50,000

      08. Blount Street Historic District-Acquisition,

Renovations and Landscaping                                                                       150,000

      09. Reroof Agriculture Building                                                                 80,000

      10. Office Building                                                                               8,500,000

DEPARTMENT OF AGRICULTURE (TOTAL)                                     2,646,050

      01. Repairs to Dorton Arena                                                                   650,000

      02. Three Mobile Laboratories - Aflatoxin Testing Services                       98,450

      03. Supplement for Animal Disease Diagnostic

Lab - Union County                                                                            40,000

      04. Land Acquisition-N.C. State Fairgrounds                                       1,500,000

      05. Animal Disease Diagnostic Laboratory-Rose Hill                               300,000

      06. Grant-in-Aid: Lenoir County Farmers Market                                     57,600

BOARD OF GOVERNORS OF THE UNIVERSITY OF

NORTH CAROLINA (TOTAL)                                                            49,678,700

      Funds for Schedule of Priorities-Capital Improvements:                                       

      01. The University of North Carolina at Charlotte,                                               

Classroom/Office Building (Phase II)                                              6,877,000

      02. OSHA Compliance; Architectural Barrier

Removal; Renovation and Construction; Land Acquisition               2,500,000

      03. School of Veterinary Medicine                                                       7,280,000

      04. New Facilities, Major Renovation & Facilities Planning                 24,183,000

Subtotal, Funds for Schedule of Priorities-

Capital Improvements                                                                  40,840,000

      05. North Carolina Memorial Hospital

         a. Renovations to existing Facilities                                                    3,000,000

      06. U.N.C.-General Administration: Expansion

of the Educational Television Network                                           5,838,700

DEPARTMENT OF COMMERCE (TOTAL)                                             700,000

      01. State Ports Authority                                                                                    

         a. Reserve for Capital Construction                                                      700,000

COMMUNITY COLLEGES (TOTAL)                                                    1,000,000

      01. Capital Construction Grants                                                           1,222,932

Less Receipts-Federal Funds                                                            222,932

Subtotal, General Fund                                                                  1,000,000

DEPARTMENT OF CORRECTION (TOTAL)                                     45,700,000

      01. Replacement of Central Prison                                                     16,150,000

      02. Reserve for Repairs and Renovations at Existing Facilities               3,000,000

      03. Reserve for Prison Construction                                                   26,250,000

      04. Mobile Classrooms                                                                        3,000,000

DEPARTMENT OF CRIME CONTROL

AND PUBLIC SAFETY (TOTAL)                                                             130,000

      01. New Armory, Reidsville/Eden                                                           650,000

Less Receipts-Local Funds                                                                 81,250

Less Receipts-Federal Funds                                                            487,500

Subtotal, General Fund                                                                       81,250

      02. New Armory, Edenton                                                                     390,000

Less Receipts-Local Funds                                                                 48,750

Less Receipts-Federal Funds                                                            292,500

Subtotal, General Fund                                                                       48,750

DEPARTMENT OF CULTURAL RESOURCES (TOTAL)                       200,000

      01. Reserve for Capital Improvements at Historic Sites                            200,000

DEPARTMENT OF HUMAN RESOURCES (TOTAL)                          8,585,000

      01. Correction of Code Deficiencies                                                    2,000,000

      02. Rural Health Clinics: Grant-in-aid                                                                  

         a. Marshall-Walnut Medical Clinic                                                          80,000

         b. Pittsboro Medical Clinic                                                                     15,000

      03. North Carolina School for the Deaf

         a. Renovation of Hoffmeyer Hall

         (01) Building                                                                                        590,000

         (02) Equipment                                                                                      25,000

Subtotal                                                                                          615,000

      04. Central North Carolina School for Deaf

         a. Gymnasium                                                                                      600,000

      05. Governor Morehead School                                                                         

         a. Replacement of Boiler and Renovation of Heating System                 250,000

      06. Lenox Baker Children's Hospital

         a. Renovation, Phase II                                                                     1,250,000

      07. Cherry Hospital

         a. Renovation and Air Conditioning of Caswell Annex

         (01) Building                                                                                     1,450,000

         (02) Equipment                                                                                      40,000

Subtotal                                                                                       1,490,000

      08. Caswell Center

         a. Air Conditioning of Residential Buildings                                           300,000

         b. Completion of Non-Ambulatory Dormitory

         (01) Building                                                                                        915,000

         (02) Equipment                                                                                      85,000

Subtotal                                                                                       1,000,000

      09. O'Berry Center                                                                                             

         a. Renovation of Primary Electrical and Street Lighting Systems             135,000

      10. Western Carolina Center

         a. Construction of Facilities for Educable Program

         (01) Building                                                                                        800,000

         (02) Equipment                                                                                      50,000

Subtotal                                                                                          850,000

DEPARTMENT OF JUSTICE (TOTAL)                                                    548,058

      01. Renovation Funds for State Bureau of Investigation

Facilities at Garner Road Campus (Supplement)                                357,058

      02. Reroofing Buildings at the Criminal Justice Academy                          191,000

DEPARTMENT OF NATURAL RESOURCES AND

COMMUNITY DEVELOPMENT (TOTAL)                                           4,500,000

      01. Division of Environmental Management

         a. Reserve for Civil Works Projects

         (01) Reserve for Civil Works                                                               750,000

         (02) Reserve for Wanchese Harbor                                                      500,000

         (03) Watershed Projects-Chicod Creek and Swift Creek                     300,000

      02. Division of Parks and Recreation

         a. Reserve for Capital Improvements at State Parks

& Water-Based Recreation Areas                                                   1,200,000

      03. Forestry

         a. Irrigation System and Other Facilities                                                100,000

      04. North Carolina Zoological Park

         a. New Construction                                                                         2,250,000

Less Private Gifts, Donation                                                               600,000

Subtotal, General Fund                                                                    1,650,000

GRAND TOTAL–CAPITAL IMPROVEMENTS

GENERAL FUND APPROPRIATION                                             $ 123,927,808

PART IV.—CAPITAL IMPROVEMENTS—HIGHWAY FUND

Sec. 5.  The items and amounts appropriated from the Highway Fund for the 1978‑79 fiscal year in the 1978-79 column in the schedule in Section 5 of 1977 Session Laws Chapter 681 and the total amount appropriated to begin July 1, 1978, in the first paragraph of Section 5 are repealed, and appropriations are made from the Highway Fund for use of the Departments of Transportation and Crime Control and Public Safety to provide for capital improvements projects according to the following schedule:

Capital Improvements–Highway Fund                                                         1978-79

DEPARTMENT OF CRIME CONTROL AND

PUBLIC SAFETY (TOTAL)                                                              $ 400,600

      01. Highway Patrol

         a. Renovation-Garner Road Campus                                                    400,600

DEPARTMENT OF TRANSPORTATION (TOTAL)                             1,133,395

      01. Highways

         a. Reserve for Capital Improvement Projects                                        300,000

         b. Renovation of Marine Repair Facility                                                500,000

      02. Governor's Highway Safety

         a. Purchase of Thompson Building                                                        575,000

Less Federal Receipts                                                                       241,605

Subtotal, Highway Fund                                                                    333,395

GRAND TOTAL–CAPITAL IMPROVEMENTS–

HIGHWAY FUND                                                                                $ 1,533,995

PART V.—GENERAL PROVISIONS

—HIGHWAY FUND UNRESERVED BALANCES

Sec. 6.  Any unreserved credit balances in the Highway Fund on June 30, 1978, shall be available for 1978-79 appropriations in Section 3 and Section 5 of this act.

—FEDERAL REVENUE SHARING/CAPITAL APPROPRIATION

Sec. 7.  The allocations from the General Revenue Sharing Trust Fund of the State for the 1978-79 fiscal year in the 1978-79 column of the schedule in Section 5.5 of 1977 Session Laws Chapter 681 are repealed, and allocations are made from the General Revenue Sharing Trust Fund of the State for the fiscal year ending June 30, 1979, according to a new substituted schedule to read as follows:

Capital Improvements                                                                                 1978-79

Administration

      04. Elevators - Justice Building                                                             $ 100,000

      05. Land Acquisition - Government Center                                             150,000

      06. Land Acquisition - State Parks                                                          500,000

Subtotal                                                                                            750,000

Agriculture

      06. Repairs to Dorton Arena                                                                   650,000

Subtotal                                                                                            650,000

Correction

      01. Central Prison Replacement, Phase I                                            16,150,000

      02. New Single Cell Construction                                                      10,450,000

Subtotal                                                                                       26,600,000

Cultural Resources

      01. Capital Reserve for Historic Sites                                                      200,000

Subtotal                                                                                            200,000

Crime Control & Public Safety

      01. Armories                                                                                          130,000

Subtotal                                                                                            130,000

Natural Resources and Community Development

      01. State Parks Capital Reserve                                                           1,200,000

Subtotal                                                                                         1,200,000

Commerce

      01. Reserve for State Ports                                                                     700,000

Subtotal                                                                                            700,000

Human Resources

      01. Code Deficiencies Reserve                                                            2,000,000

Subtotal                                                                                         2,000,000

GRAND TOTAL–REV. SHAR./CAPITAL                                         $ 32,230,000

—FEDERAL ANTIRECESSION FUNDS

Sec. 8.  The appropriations from antirecession funds for fiscal year 1978-79 in Section 12.5 of 1977 Session Laws Chapter 802 (to the Department of Correction—Adult Prisons Custody and Security in the amount of one million eight hundred thousand dollars ($1,800,000)) are repealed.

PART VI.—SPECIAL PROVISIONS—SALARIES AND BENEFITS

—MOST STATE WORKERS/SIX PERCENT SALARY INCREASE ADMIN.

Sec. 9.  The Director of the Budget is authorized to transfer from the appropriations in Sections 2 and 3 of this act for legislative salary increases of State employees paid from the General Fund and the Highway Fund, respectively, such amounts, including the employer's retirement and social security contributions, as may be required to increase salaries in effect on June 30, 1978, for all permanent employees by an average of six percent (6%) commencing July 1, 1978, rounded to conform to the steps in such salary ranges as may be adopted by the State Personnel Commission. For an employee whose salary in effect on June 30, 1978, is not equal to a specific pay rate within the salary schedule effective on that date, the annual increase will be the amount applicable to the next lower pay rate.

Except for salaries specifically established in this act, State department secretaries and other exempt positions whose salaries are recommended by the Governor or the Governor and the Advisory Budget Commission and set by the General Assembly shall be granted the same approximately six percent (6%) salary increases as provided for other State employees under this section, commencing July 1, 1978.

The Director of the Budget is authorized to allocate, out of special operating funds or from sources other than tax revenues under which personnel are employed, sufficient funds to allow increases in salaries paid from those sources to conform with the increases authorized for other State employees under the provisions of this section, provided necessary funds are made available by sponsoring agencies.

The Director of the Budget is further authorized to promulgate special rules and regulations to apply to salary increases for employees whose salaries are paid from interagency receipts, where payments for the services of such employees originate from State appropriations, to the end that the effective purchasing power of such appropriations is not materially reduced as a result of these salary increases. Any question as to the applicability of the provisions of this paragraph shall be resolved by the Director of the Budget and the Advisory Budget Commission.

Salaries for positions which are paid partially from the General Fund and partially from sources other than the General Fund shall be increased from the General Fund appropriation only to the extent of the proportionate part of the salaries paid from the General Fund.

The granting of the legislative salary increases under this section shall not affect the status of eligibility for automatic or merit salary increments or both for which employees may be eligible.

The salary ranges for all employees under the State Personnel Act shall be increased, so far as the maximums are concerned by amounts corresponding to those of the legislative salary increase so that, after the salary increases provided for in this act are made, every employee will continue to have the same relative position with respect to salary increases and future increments as he would have had if the salary increases provided by this act had not been made.

The salary increases provided in this act to be effective July 1, 1978, shall not apply to persons separated from State service due to resignation, dismissal, reduction in force, death or retirement, whose last work day is prior to July 1, 1978.

Within regular executive Budget Act procedures as limited by this act, all State agencies and departments are authorized to increase the rate of pay of temporary State employees, subject to availability of funds in the particular agency or department and on an equitable basis, by pro rata amounts approximately equal to the six percent (6%) increase provided for other State employees.

—LEGISLATIVE EMPLOYEES/SIX PERCENT SALARY INCREASE

Sec. 10.  The Legislative Services Officer is authorized to increase the salaries of permanent non-elected employees of the General Assembly in effect on June 30, 1978, by six percent (6%) commencing July 1, 1978, rounded to the nearest whole dollar figure divisible by 12 and otherwise adjusted to conform with the relative levels of the Legislative Services Commission salary schedule. The granting of this legislative percentage salary increase shall not affect the status of employees' eligibility for automatic or merit increments.

—JUDICIAL BRANCH OFFICIALS/SALARIES

Sec. 11.  The annual salary, in fiscal year 1978-79, of the specified judicial branch official shall be as follows:

Judicial Branch Officials                                                                           1978-79

Chief Justice, Supreme Court                                                                  $48,000

Associate Justice, Supreme Court                                                             47,000

Chief Judge, Court of Appeals                                                                  45,500

Judge, Court of Appeals                                                                           44,500

Judge, Superior Court                                                                               39,500

Chief Judge, District Court                                                                        33,250

Judge, District Court                                                                                 32,000

District Attorney                                                                                       36,750

Assistant District Attorney–an average of                                                  23,750

Administrative Officer of the Courts                                                          42,000

Assistant Administrative Officer of the Courts                                            30,000

Public Defender                                                                                        36,750

Assistant Public Defender–an average of                                                   23,750

The minimum salary of any assistant district attorney, and any assistant public defender shall be twelve thousand dollars ($12,000) per annum; provided, that on recommendation of the district attorney or the public defender with the approval of the Administrative Officer of the Courts, the salaries of assistant district attorneys and assistant public defenders may be adjusted so long as the average salaries of assistant district attorneys and assistant public defenders in a judicial district do not exceed twenty-three thousand seven hundred fifty dollars ($23,750).

Funds appropriated in Section 2 of this act for salary increases and related employer's retirement and social security contributions for permanent employees of the Judicial Department, except for those itemized in this act, are to provide salary increases commencing July 1, 1978, of the same percentage as that authorized in Section 9 of this act (approximately 6%) for State employees subject to the Personnel Act, rounded to conform to the steps in the salary ranges adopted by the Judicial Department.

—ASSISTANT DISTRICT ATTORNEYS/CLASSIFICATION AND PAY PLAN

Sec. 11.1.  Section 41.6 of Chapter 802 of the 1977 Session Laws is repealed.

The Administrative Office of the Courts is requested to study the salaries of the Assistant District Attorneys in the Court System and prepare a report on a classification and pay plan that conforms generally with the recommendations contained in a like study conducted by the Office of State Personnel of the salaries for attorneys in the Department of Justice. This report is to be presented to the 1979 Session of the General Assembly.

—MAGISTRATES/INCREASE MAXIMUM SALARY

Sec. 12.  The maximum salary of magistrates in G.S. 7A-172 is changed by deleting "Eleven thousand four hundred seventy-six dollars ($11,476)" and inserting in lieu thereof "twelve thousand one hundred sixty-eight dollars($12,168)".

—CLERKS OF COURT/SALARIES

Sec. 13.  The schedule of salaries of clerks of superior courts beginning on line 5 of G.S. 7A-101, as it appears in the 1977 Cumulative Supplement to Volume 1B of the General Statutes, is deleted and in lieu thereof the following schedule is substituted:

Population                                                                                             Salary

Less than 10,000                                                                                 $13,000

10,000 to 19,999                                                                                  16,500

20,000 to 49,999                                                                                  19,500

50,000 to 99,999                                                                                  22,500

100,000 to 199,000                                                                              25,500

200,000 and above                                                                               31,000

—PUBLIC SCHOOL PERSONNEL/LONGEVITY

Sec. 14.  The funds appropriated in Section 2 of this act to the State Board of Education include nine million five thousand four hundred fifty-four dollars ($9,005,454) for the fiscal year beginning July 1, 1978, to provide a schedule of longevity payments for State‑allotted public school personnel. These longevity payments shall be based on the same payment rates as allowed for State employees subject to the State Personnel Act and for service intervals beginning with 10 years for superintendents, associate and assistant superintendents, and classified principals and with 15 years for supervisors, teachers, property cost clerks, and school bus mechanics.

The longevity payments described in this section shall not exceed the longevity appropriation made to the State Board of Education plus any available legislative salary increase funds for public school employees. Eligibility requirements for public school employees to receive these lump sum payments shall be those adopted by the State Personnel Commission for the State employees as of January 1, 1976. The State Board of Education is directed to formulate rules and regulations necessary to carry out the provisions of this section.

—PUBLIC SCHOOL DRIVER TRAINING/SUMMER SALARY SCHEDULE

Sec. 15.  The State Board of Education is authorized, within driver training funds available, to increase the summer salary schedule for driver training personnel by approximately six percent (6%) annually as provided in this act for other school personnel.

—PUB. SCHOOL MAIDS & JANITORS, & PRINCIPALS' CLERKS/SALARIES

Sec. 16.  Superintendents of the State's local public school units shall use funds appropriated for salary increases for State-funded janitor and maid employees, and also for State-funded clerical assistants in the offices of principals and superintendents, to assure that such employees shall receive salary increases of approximately six percent (6%) (subject to the provisions of this act that apply to salary increases for teaching personnel) on that portion of their salaries which is State-funded.

—PUBLIC SCHOOLS ADM ALLOCATED EMPLOYEES/SALARY INCREASES

Sec. 17.  Funds have been appropriated to the Department of Public Education in Section 2 of this act to provide the appropriate salary increase of approximately six percent (6%) for public school employees paid from State Average Daily Membership (ADM) allocations for instructional personnel in the areas of math, reading, and cultural arts; support personnel in the areas of psychological and guidance counseling, health, and social services; and personnel in the area of physical education in grades K-6.

—RETIRED TEACHERS AND STATE EMPLOYEES/HOSPITALIZATION

Sec. 18.  There is appropriated in Section 2 of this act the sum of six million twenty‑eight thousand dollars ($6,028,000) to the Department of State Treasurer for the purpose of supporting hospital-medical premiums for retired members and surviving spouses who are eligible for coverage in the State's Hospital-Medical Benefits Program to be effective October 1, 1978. Payments from the appropriation shall be made at the rate of sixteen dollars and forty-four cents ($16.44) per month for those eligible for Medicare and at the rate of twenty-four dollars and forty-eight cents ($24.48) per month for those not eligible for Medicare.

Sec. 18.1.  G.S. 135-33, as it appears in the 1977 Cumulative Supplement to Volume 3B of the General Statutes, is amended by inserting in line 19 after the word "employees" at the end of the sentence, the words and punctuation: ", adjusted for any appropriation by the General Assembly for qualified individuals"; and further amended by inserting in line 27 after the word "benefits" at the end of the sentence, the words and punctuation: ", adjusted for any appropriation by the General Assembly for qualified individuals".

—COMMUNITY COLLEGES PERSONNEL/SALARY INCREASES

Sec. 19.  Funds are appropriated in Section 2 of this act to provide an annual average salary increase of six percent (6%) in 1978-79 for all community college institutional personnel. These funds are to be allocated to individuals according to rules and regulations established by the State Board of Education and may not be used to establish any new positions.

—HIGHER EDUCATION ACADEMIC PERSONNEL/SALARY INCREASES

Sec. 20.  Funds are appropriated in Section 2 of this act to provide an annual average salary increase of six percent (6%) in 1978-79 for employees exempt from the State Personnel Act in the constituent institutions of The University of North Carolina. These funds are to be allocated to individuals in accordance with rules and regulations established by the Board of Governors and may not be used to establish any new positions.

—SALARY-RELATED CONTRIBUTIONS/EMPLOYERS

Sec. 21.  Required employer salary-related contributions for employees whose salaries are paid from department, office, institution, or agency receipts (other than gifts, including foundation funds), shall be paid from the same source as the source of the employee's salary. In those instances in which an employee's salary is paid in part from the General Fund and in part from department, office, institution, or agency receipts (other than gifts, including foundation funds), required employer salary-related contributions shall be paid from the General Fund only to the extent of the proportionate part paid from the General Fund in support of the salary of such employee, and the remainder of the employer's requirement shall be paid from the same source which supplies the remainder of such 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 insurance, longevity, and unemployment insurance, except that where the employee's salary is paid in whole or in part from gifts, including foundation funds, the source of such gifts must bear its proportional share of the employer's requirement for these purposes.

Any questions as to the applicability of the provisions of this section shall be resolved by the Director of the Budget and the Advisory Budget Commission.

—SALARY ADJUSTMENT APPROPRIATIONS/AUTHORIZED TRANSFERS

Sec. 22.  The Director of the Budget is authorized to transfer to General Fund budget codes from the General Fund salary adjustment appropriation, and to Highway Fund budget codes from the Highway Fund salary adjustment appropriation, such amounts as may be required to support approved salary adjustments made necessary by difficulties in recruiting and holding qualified employees in State government. The funds are to be transferred only when the use of salary reserve funds in individual operating budgets is not feasible.

PART VII.—SPECIAL PROVISIONS—HUMAN RESOURCES

—MEDICAID SCHEDULES

Sec. 23.  Appropriations in Section 2 of this act for services provided in accordance with Title XIX of the Social Security Act (Medicaid) are for both the categorically needy and the medically needy. Funds appropriated for such services are to be expended in accordance with the following schedule of services and payment basis:

Services                                                                                                   Payment Basis

Hospital – Inpatient                                                                               Allowable costs, but administrative days for any period of hospitalization shall be limited to a maximum of 3 days.

Hospital – Outpatient                                                                            90 percent of allowable costs.

Mental and Specialty Hospitals                                                             Allowable costs.

Skilled Nursing Facilities, Intermediate Care Facilities,

and Intermediate Care Facilities for the Mentally Retarded                     As prescribed under the State Plan for Reimbursing Long Term Care Facilities.

Drugs                                                                                                   Drug cost as allowed by federal regulation plus $2.50 professional service fee per month excluding refills for same drug or generic equivalent during the same month. (Payments for drugs are subject to the language on drugs at the end of this section.)

Physicians                                                                                             90 percent of allowable usual and customary charges.

Chiropractors                                                                                       90 percent of allowable usual and customary charges.

Dental                                                                                                  90 percent of allowable usual and customary charges. (Payments for dental services are subject to the language on dental services at the end of this section.)

Home Health                                                                                        Allowable costs.

Optical Services                                                                                   90 percent of allowable usual and customary charges.

Medicare Buy-In                                                                                  Social Security.

Administration premium.

Clinics - Public Health                                                                           Allowable costs.

Ambulance Services                                                                             100 percent of allowable, reasonable, usual and customary charges.

Pre-21 Screening                                                                                  See specific services, i.e.,

Physician and Clinic.

Hearing Aids                                                                                        80 percent usual, customary, and reasonable charges (including dispensing fee).

Clinics - Mental Health                                                                         Allowable costs (federal portion only; nonfederal share covered by State/local operating funds).

Family Planning                                                                                     See specific services, i.e., Hospital, Physician, and Clinic.

Independent Laboratory and X-Ray Services                                        90 percent of allowable usual and customary charges.

Optical Supplies                                                                                   100 percent of reasonable wholesale cost of materials.

Any changes in services or basis of payment in the Medicaid Program must be approved by the Governor and the Advisory Budget Commission.

The State shall pay eighty-five percent (85%) and the counties shall pay fifteen percent (15%) of the nonfederal costs of applicable services listed in this section. These same State and county percentages shall be used for any prepaid premium if Medicaid services and related administrative costs are paid for by a health-insuring contractor.

As allowed by federal regulations, recipient co-payments shall be required for services under Medicaid as follows:

                                                                  Eligibility                                                 Co-Payment for

                                            Categorically             Medically                                       Each Occasion

Service                                     Needy                     Needy                                                of Service

Hospital – Inpatient                                                  X                                                                  $ 2.00

Hospital - Outpatient                                                X                                                                     1.00

Physicians                                                                X                                                                     1.00

Optometrists                                                            X                                                                     1.00

Drugs                                       X                             X                                                                       .50

Dental                                      X                             X                                                                     2.00

Chiropractors                           X                             X                                                                       .50

Optical Supplies and

Services                             X                             X                                                                     2.00

Mental Health Centers              X                             X                                                                     1.00

Health Departments                  X                             X                                                                     1.00

Maximum net family annual income eligibility standards for Medicaid shall be as follows:

Family Size                               Categorically Needy Medically Needy

                                                AFDC*                   AA,AB,AD*                                                    

1                                           $ 1,452                       $   1,700                                         $   1,700

2                                              1,908                           2,200                                             2,200

3                                              2,196                           2,500                                             2,500

4                                              2,400                           2,800                                             2,800

5                                              2,628                           3,000                                             3,000

6                                              2,832                           3,200                                             3,200

7                                              3,036                           3,400                                             3,400

8                                              3,168                           3,600                                             3,600

9                                              3,300                           3,800                                             3,800

10                                            3,480                           4,000                                             4,000

11                                            3,660                           4,200                                             4,200

12                                            3,840                           4,400                                             4,400

13                                            4,020                           4,600                                             4,600

[*Aid to Families with Dependent Children (AFDC); Aid to the Aged (AA); Aid to the Blind (AB); and Aid to the Disabled (AD).]

Any change in these standards must be approved by the Governor and the Advisory Budget Commission.

Funds appropriated to the Department of Human Resources for dental services shall be dispersed only with prior approval as required by this paragraph. No prior approval shall be required for emergency services or routine services. Routine services are defined as examinations, x-rays, prophylaxis, nonsurgical tooth extractions, amalgam fillings, and fluoride treatments. Prior approval shall be required for all other services and for routine services performed more than two times during a consecutive 12-month period. The Department of Human Resources shall establish rules and regulations, as provided by the Administrative Procedures Act, for obtaining prior approval as required by this section.

Notwithstanding any provision of G.S. 90-76 to the contrary, during the 1978-79 fiscal year, under the Medical Assistance program (Title XIX of the Social Security Act) 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 personally indicates, either orally or in his own handwriting on the prescription order, "dispense as written" or words of similar meaning. As used in this paragraph "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" shall have the same meaning as assigned that term by the Federal Food, Drug and Cosmetic Act as amended, Title 21 U.S.C. 301 et seq.

Sec. 23.1.  Section 17 of 1977 Session Laws Chapter 802 is repealed.

—COMMUNITY MENTAL HEALTH CENTERS

Sec. 24.  Of the funds appropriated in Section 2 of this act to the Department of Human Resources, one million two hundred fifty thousand dollars ($1,250,000) in fiscal year 1978-79 is for the Division of Mental Health Services for inpatient services in community mental health centers. These funds are to be distributed to the area mental health boards to assist in the start-up phase of inpatient units on the basis of Rules and Regulations adopted by the Department of Human Resources. The funds for start-up costs are to be distributed in addition to any other State moneys to community mental health centers.

To qualify for funds under this section, area mental health boards shall submit a plan to the Department of Human Resources that details how these funds are to be expended and the procedures that will be employed to collect patient fees and various forms of third-party reimbursements.

PART VIII.—SPECIAL PROVISIONS—PUBLIC EDUCATION

—SCHOOL BUS TRANSPORTATION/AREAS OF DANGEROUS WALKING COND.

Sec. 25.  The sum of one million five hundred thousand dollars($1,500,000) has been appropriated to the Department of Public Education in Section 2 of this act to assist local school units with certain school bus operational costs. These funds are specifically provided for transportation of pupils living within one and one-half miles of schools who must walk through dangerous conditions. The State Board of Education shall adopt rules and regulations for the distribution of these funds to the local school units having the greatest need to provide this type of school bus transportation and willing to purchase the necessary buses.

—EXCEPTIONAL CHILDREN PROGRAM

Sec. 26.  In Section 2 of this act, funds have been appropriated to expand education and related services to approximately 153,000 children with special needs between the ages of five and eighteen. These increased funds shall be used: (1) to provide the appropriate educational and related services to children between the ages of five and eighteen identified and unserved in the categories covered by P.L. 94-142 and Chapter 927 of the 1977 Session Laws; (2) to continue efforts to identify and serve those children who have not been previously identified using personnel in the Department of Human Resources and the Department of Public Instruction and private diagnostic services when those State agencies cannot evaluate on a timely basis, those children between the ages of five and eighteen who are suspected of having special needs covered by P.L. 94-142 and Chapter 927 of the 1977 Session Laws; and (3) to ensure that all children between the ages of five and eighteen in the categories covered by P.L. 94-142 and Chapter 927 of the 1977 Session Laws who are currently receiving an inadequate education will have available a free appropriate public education.

In addition to the State funds appropriated for these services, there are anticipated federal funds which may be used in accordance with federal law. All federal funds received during the 1978-79 fiscal year are to be used to the maximum extent possible.

These State and federal funds will provide additional teachers' aides, special materials and equipment, staff development, diagnostic services and other needed services as approved by the State Board of Education for handicapped children as defined by P.L. 94-142, and for children identified as children with special needs in Chapter 927 of the 1977 Session Laws.

The funds will allow the State Board of Education to implement standards as required by the federal and State laws to all children with special needs as defined by State Board rules. The standards must be provided to all children with special needs by September 1, 1978.

When additional funds are required to provide diagnostic services and to provide educational and related services for those identified as having special needs according to State Board rules, budget transfers within the Department of Public Instruction during the 1977-79 biennial budget can be made or a special emergency appropriations bill can be considered in January 1979 at the beginning of the 1979 General Assembly.

It is essential that diagnostic evaluations be made in a timely manner so that children with special needs may be appropriately placed in school early in the academic year. The Department of Human Resources is qualified to conduct these evaluations and is encouraged to give priority to evaluate a child suspected of needing special education if the evaluation cannot be done by public education personnel.

In order that all available funds can be allocated as needed, all categorical funds to the Division of Exceptional Children of the Department of Public Instruction shall become noncategorical funds for children with special needs.

All programs of educational and related services for children with special needs shall be reviewed by staff of the Division for Exceptional Children for compliance with State Board rules, to prevent duplication of services and to make sure that programs are provided for all children with special needs.

PART IX.—SPECIAL PROVISIONS—COMMUNITY COLLEGES

—FULL-TIME EQUIVALENT TEACHING POSITIONS

Sec. 27.  For the purpose of determining the Community College system-wide number of full-time equivalent (FTE) teaching positions each year, the total curriculum and extension full-time equivalent student enrollment shall be divided by 22.

Sec. 27.1.  Section 34 of 1977 Session Laws Chapter 802 is repealed.

PART X.—SPECIAL PROVISIONS—HIGHER EDUCATION

—EDUCATIONAL TELEVISION NETWORK IMPROVEMENTS/APPRN. & REPORT

Sec. 28.  Funds are provided in Section 4 of this act (Capital Improvements—General Fund) to The University of North Carolina—General Administration to operate new television facilities (provided in item 06. under Board of Governors of The University of North Carolina) aimed at extending and improving the broadcast capabilities of the UNC Television Network.

Any additional moneys which may be received by The University through federal or private grants to aid in constructing or operating the improvements referred to in this section shall, to the extent possible, be used to supplant the General Fund appropriations provided for such improvements. Appropriations which are supplanted will revert to the General Fund.

The Board of Governors is hereby directed to submit progress reports to the Governor, Lt. Governor, Speaker of the House of Representatives, and each member of the Advisory Budget Commission at six-month intervals to cover not only the physical and operational aspects of the new and improved facilities, but also the number of school pupils and other persons added to the educational television network audience or gaining improved reception.

—AID TO PRIVATE COLLEGES

Sec. 29.  Funds are appropriated in Section 2 of this act to grant each full-time North Carolina undergraduate student attending an approved private educational institution located within the State, as defined in G.S. 116-22, the sum of four hundred dollars ($400.00) per academic year in 1978-79. These funds shall be distributed in accordance with Section 38.1 of Chapter 802 of the 1977 Session Laws.

In the event it is determined that there are not sufficient funds to provide each eligible student with a full grant, each eligible student shall receive a reduced but equal share of funds then available for the remainder of the academic year within the fiscal period covered by the current appropriation. Any remaining funds shall revert to the General Fund.

—INSTITUTIONAL TRUST FUNDS/UNIVERSITY OF NORTH CAROLINA

Sec. 30.  Chapter 116 of the General Statutes is amended by inserting a new section as follows:

"§ 116-36.1.  Regulation of institutional trust funds. — (a) The board is responsible for the custody and management of the trust funds of The University of North Carolina and of each institution. The board shall adopt uniform policies and procedures applicable to the administration of these funds which shall assure that the receipt and expenditure of such funds is properly authorized and that the funds are appropriately accounted for. The board may delegate authority, through the president, to the respective chancellors of the institutions when such delegation is necessary or prudent to enable the institution to function in a proper and expeditious manner.

(b)        Trust funds shall be deposited with the State Treasurer who shall hold them in trust in separate accounts in the name of The University of North Carolina and of each institution. The cash balances of these accounts may be pooled for investment purposes, but investment earnings shall be credited pro rata to each participating account. For purposes of distribution of investment earnings, all trust funds of an institution shall be deemed a single account.

(c)        Moneys deposited with the State Treasurer in trust fund accounts pursuant to this section, and investment earnings thereon, are available for expenditure by each institution without further authorization from the General Assembly.

(d)        Trust funds are subject to the oversight of the State Auditor pursuant to G.S. 147-58 but are not subject to the provisions of the Executive Budget Act except for capital improvements projects which shall be authorized and executed in accordance with G.S. 143‑18.1.

(e)        Each institution shall submit such reports or other information concerning its trust fund accounts as may be required by the Director of the Budget.

(f)         Trust funds or the investment income therefrom shall not take the place of State appropriations or any part thereof, but any portion of these funds available for general institutional purposes shall be used to supplement State appropriations to the end that the institution may improve and increase its functions, may enlarge its areas of service, and may become more useful to a greater number of people.

(g)        As used in this section, 'trust funds' means:

(1)        moneys, or the proceeds of other forms of property, received by an institution as gifts, devises, or bequests that are neither presumed nor designated to be gifts, devises, or bequests to the endowment fund of the institution;

(2)        moneys received by an institution pursuant to grants from, or contracts with, the United States Government or any agency or instrumentality thereof;

(3)        moneys received by an institution pursuant to grants from, or contracts with, any State agencies, any political subdivisions of the State, any other states or nations or political subdivisions thereof, or any private entities whereby the institution undertakes, subject to terms and conditions specified by the entity providing the moneys, to conduct research, training or public service programs, or to provide financial aid to students;

(4)        moneys collected by an institution to support extracurricular activities of students of the institution;

(5)        moneys received from or for the operation by an institution of activities established for the benefit of scholarship funds or student activity programs;

(6)        moneys received from or for the operation by an institution of any of its self‑supporting auxiliary enterprises except student auxiliary services identified in Section 116-36.3;

(7)        moneys received by an institution in respect to fees and other payments for services rendered by medical, dental or other health care professionals under an organized practice plan approved by the institution or under a contractual agreement between the institution and a hospital or other health care provider.

(h)        Notwithstanding the provisions of subsection (b) of this section, the board may designate as the official depository of the funds identified in subsection (g)(7) of this section one or more banks or trust companies in this State. The amount of funds on deposit in an official depository shall be fully secured by deposit insurance, surety bonds, or investment securities of such nature, in such amounts, and in such manner as is prescribed by the State Treasurer for the security of public deposits generally. The available cash balance of funds deposited pursuant to this subsection shall be invested in interest-bearing deposits and investments so that the rate of return equals that realized from the investment of State funds generally.

(i)         The cash balances on hand as of June 30, 1978, and all future receipts accruing thereafter, of funds identified in this section are hereby appropriated to the use of The University of North Carolina and its constituent institutions."

—SPECIAL FUNDS/UNIVERSITY OF NORTH CAROLINA

Sec. 31.  Chapter 116 of the General Statutes is amended by inserting a new section as follows:

"§ 116-36.2.  Regulation of special funds of individual institutions. — (a) Notwithstanding any provisions of law other than G.S. 147-58, the chancellor of each institution is responsible for the custody and management of the special funds of that institution. The board shall adopt uniform policies and procedures applicable to the administration of these funds which shall assure that the receipt and expenditure of such funds is properly authorized and that the funds are appropriately accounted for.

(b)        As used in this section, 'special funds of individual institutions' means:

(1)        moneys received from or for the operation by an institution of its program of intercollegiate athletics;

(2)        moneys held by an institution as fiscal agent for individual students, faculty, staff members, and organizations."

—STUDENT AUXILIARY ENTERPRISE FUNDS/UNIV. OF NORTH CAROLINA

Sec. 32.  Chapter 116 of the General Statutes is amended by inserting a new section as follows:

"§ 116-36.3.  Regulation of institutional student auxiliary enterprise funds. — (a) The chancellor of each institution, subject to uniform policies and procedures adopted by the Board of Governors, is responsible for the custody and management of the institutional student auxiliary enterprise funds of that institution. The custody and management of such funds is subject to the provisions of the Executive Budget Act and to the oversight of the State Auditor pursuant to G.S. 147-58.

(b)        Institutional student auxiliary enterprise funds shall be deposited with the State Treasurer who shall hold them in trust in separate accounts in the name of The University of North Carolina and of each institution. The cash balances of these accounts may be pooled for investment purposes, but investment earnings shall be credited pro rata to each participating account. For the purpose of distribution of investment earnings, all student auxiliary enterprise funds of an institution shall be deemed a single account.

(c)        As used in this section, "institutional student auxiliary enterprise funds" means moneys received from or for the operation by an institution of the following self-supporting student auxiliary services: housing; food; health and laundry."

—DEPOSIT OF FEDERAL FUNDS/UNIVERSITY OF NORTH CAROLINA

Sec. 33.  Section 15.26 of 1977 Session Laws Chapter 802 is amended by placing a comma at the end of the next to last sentence and adding the phrase, "except as otherwise provided by G.S. 116-36.1".

Sec. 33.1.  The last sentence of Section 15.26 of 1977 Session Laws Chapter 802 is repealed.

—ABC APPROPRIATIONS MODIFICATIONS/N.C. MEMORIAL HOSPITAL

Sec. 34.  Section 9 of 1977 Session Laws Chapter 681 is rewritten to read as follows:

"The Advisory Budget Commission may, when in its opinion it is in the best interest of the State to do so, and upon the request of the pertinent department, agency, or institution, authorize an increase or decrease in size and scope of a direct or self-liquidating capital appropriation. Changes to a project or projects enumerated in this act may come from gifts, federal or private grants, excess patient receipts collected above those budgeted by the North Carolina Memorial Hospital, special fund receipts, or, from within the funds appropriated for capital improvements in this act to that department, agency, or institution."

Sec. 35.  Section 10 of 1977 Session Laws Chapter 681 is rewritten to read as follows:

"The Governor and the Advisory Budget Commission may, when in their opinion it is in the best interest of the State to do so, and upon the request of a department, institution, or agency, authorize the construction of a capital improvement project not specifically provided for or authorized by the General Assembly. Funds which become available by gifts, excess patient receipts collected above those budgeted by the North Carolina Memorial Hospital, federal or private grants, or receipts becoming a part of special funds by act of the General Assembly may be used for this purpose. No funds appropriated under this act for a specific capital improvement shall be used or expended for any capital improvement not specifically provided for or authorized by the General Assembly."

PART XI.—SPECIAL PROVISIONS—GEN. GOVT. & TRANS., & OTHER

—STATE AUDITOR/AUDITS PERFORMED FOR FEDERAL AGENCIES

Sec. 36.  G.S. 147-58 is amended by adding a new subsection to be designated subsection (24) to read as follows:

"(24)    The Auditor is authorized to contract with federal audit agencies, or any governmental agency, on a cost reimbursable basis, for the Auditor to perform audits of federal grants and programs administered by the State departments and institutions in accordance with agreements negotiated between the Auditor and the contracting federal audit agencies or any governmental agency. In instances where the grantee State agency shall subgrant these federal funds to local governments, regional councils of government and other local groups or private or semi-private institutions or agencies, the Auditor shall have the authority to examine the books and records of these subgrantees to the extent necessary to determine eligibility and proper use in accordance with State and federal laws and regulations.

      The Auditor shall charge and collect from the contracting federal audit agencies, or any governmental agencies, the actual cost of all the audits of the grants and programs contracted by him to do. Amounts collected under these arrangements shall be deposited in the State Treasury and be budgeted in the Department of State Auditor and shall be available to hire sufficient personnel to perform these contracted audits and to pay for related travel, supplies and other necessary expenses."

—JUVENILE PROBATION AND AFTERCARE/FUNDING DELETED

Sec. 37.  Section 50.50 (Juvenile Probation and Aftercare/Funds) of 1977 Session Laws Chapter 802 is repealed.

—TRAVEL ALLOWANCE FOR STATE EMPLOYEES

Sec. 38.  To increase the travel allowance per mile for State employees there is appropriated in Section 2 of this act seven hundred thousand dollars ($700,000) from the General Fund, and in Section 3 of this act fifty thousand dollars ($50,000) from the Highway Fund. These funds may be transferred to travel subheads based upon need as determined by the Director of the Budget.

Sec. 38.1.  G.S. 138-6(a)(1), as it appears in the 1977 Cumulative Supplement to Volume 3C of the General Statutes, is amended by deleting the words and figures "fifteen cents (15¢) " and inserting in lieu thereof the words and figures "seventeen cents (17¢)".

—EXPENSE ALLOWANCE/GOVERNOR

Sec. 39.  G.S. 147-11, as it appears in 1974 Replacement Volume 3C of the General Statutes, is amended by deleting in the second sentence the words and figures "five thousand dollars ($5,000)" and inserting in lieu thereof the words and figures "ten thousand dollars ($10,000)".

—EXPENSE ALLOWANCE/LIEUTENANT GOVERNOR

Sec. 40.  G.S. 147-33, as it appears in the 1977 Cumulative Supplement to Volume 3C of the General Statutes, is amended by deleting in the second sentence the words and figures "four thousand dollars ($4,000)" and inserting in lieu thereof the words and figures "ten thousand dollars ($10,000)".

PART XII.—SPECIAL PROVISIONS—APPROPRIATIONS ACT

—RETAIN 1977 APPROPRIATIONS LIMITATIONS AND DIRECTIONS

Sec. 41.  Except where expressly repealed by this act, the provisions of 1977 Session Laws Chapter 681, and the provisions of 1977 Session Laws Chapter 802, shall remain in effect.

Sec. 42.  Notwithstanding any modifications by this act in the amounts appropriated, except where expressly repealed, the limitations and directions in 1977 Session Laws Chapter 681 and Chapter 802 that applied to 1978-79 appropriations to particular agencies or for particular purposes shall apply to the newly enacted appropriations of this act to those same particular agencies and for those same particular purposes.

—EXECUTIVE BUDGET ACT REFERENCE

Sec. 43.  The provisions of the Executive Budget Act, Chapter 143, Article 1, of the General Statutes, are reenacted and shall remain in full force and effect and are incorporated in this act by reference.

—EFFECT OF MOST LIMITATIONS AND DIRECTIONS IN TEXT/ONLY 78-79

Sec. 44.  Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 1978-79 fiscal year, the textual provisions of this act shall apply only to funds appropriated for, and activities occurring during, the 1978-79 fiscal year.

—SEVERABILITY CLAUSE

Sec. 45.  If any section or provision of this act is declared unconstitutional or invalid by the courts, the decision of the court shall not affect the validity of the act as a whole or the validity of any part other than the part declared to be unconstitutional or invalid.

—CAPTIONS NOT LIMIT TEXT/ONLY FOR REFERENCE

Sec. 46.  The series of captions used in this act (the descriptive phrases in all capital letters identified by parts numbered with Roman numerals or preceded by five hyphens) are inserted for convenience and reference only, and they in no way define, limit, or prescribe the scope or application of the text of the act.

—EFFECTIVE DATE

Sec. 47.  This act shall become effective July 1, 1978.

In the General Assembly read three times and ratified, this the 14th day of June, 1978.