GSNC

ARTICLE 1. General Provisions.

Sec.

§ 143C-1-1. Purpose and definitions.

Title of Chapter. - This Chapter is the "State Budget Act" and may be cited by that name.
The provisions of this Chapter shall apply to every State agency, unless specifically exempted herein, and to every non-State entity that receives or expends any State funds. No State agency or non-State entity shall expend any State funds except in accordance with an act of appropriation and the requirements of this Chapter. The provisions of Chapter 120 of the General Statutes shall continue to apply to the General Assembly and to control its expenditures and in the event of a conflict with this Chapter, the provisions of Chapter 120 of the General Statutes shall control. Nothing in this Chapter abrogates or diminishes the inherent power of the legislative, executive, or judicial branch.
Purpose. - This Chapter establishes procedures for the following:
1. Preparing the recommended State budget.
2. Enacting the State budget.
3. Administering the State budget.
Definitions. - The following definitions apply in this Chapter:
1. Appropriation. - An enactment by the General Assembly authorizing the withdrawal of money from the State treasury. An enactment by the General Assembly that authorizes, specifies, or otherwise provides that funds may be used for a particular purpose is not an appropriation.
2. Authorized budget. - The certified budget with changes authorized by the Director of the Budget through authority granted in G.S. 143C-6-4 or other statutes.
3. Availability. - The total anticipated cash available within a fund for appropriation purposes, including unreserved fund balance and all revenue and receipts anticipated in a fiscal year.
4. Base Budget. - That part of the recommended State budget that provides the baseline for the next biennium. The base budget for each State agency shall be the authorized budget for that agency with adjustments only for the following:
  1. Annualization of programs and positions.
  2. Reductions to adjust for items funded with nonrecurring funds during the prior fiscal biennium.
  3. Increases to adjust for nonrecurring reductions during the prior fiscal biennium.
  4. Adjustments for federal payroll tax changes.
  5. Rate increases in accordance with the terms of existing leases of real property.
  6. Adjustments to receipt projections, made in accordance with G.S. 143C-3-5(b)(2)c.
  7. Reconciliation of intragovernmental and intergovermental transfers.
  8. Adjustments for statutory appropriations and other adjustments as directed by the General Assembly.
5. Biennium. - The two fiscal years beginning on July 1 of each odd-numbered year and ending on June 30 of the next odd-numbered year.
6. Budget. - A plan to provide and spend money for specified programs, functions, activities, or objects during a fiscal year.
7. Budget year. - The fiscal year for which a budget is proposed and enacted.
8. Capital improvement. - A term that includes real property acquisition, new construction or rehabilitation of existing facilities, and repairs and renovations over one hundred thousand dollars ($100,000) in value.
9. Repealed by Session Laws 2017-57, s. 6.6(a), effective July 1, 2017, and applicable beginning with the base budget developed for the 2018-2019 fiscal year.
10. Certified budget. - The budget as enacted by the General Assembly including adjustments made for (i) distributions to State agencies from statewide reserves appropriated by the General Assembly, (ii) distributions of reserves appropriated to a specific agency by the General Assembly, and (iii) organizational or budget changes mandated by the General Assembly.
11. Repealed by Session Laws 2014-100, s. 6.4(a), effective July 1, 2014, and applicable beginning with the recommended State budget of the 2015-2017 fiscal biennium.
12. Controller. - The Office of the State Controller.
13. Current Operations Appropriations Act. - An act of the General Assembly estimating revenue availability for and appropriating money for the current operations and capital improvement needs of State government during one or more budget years.
14. Departmental receipt. - Fees, licenses, federal funds, grants, fines, penalties, tuition, and other similar collections or credits generated by State agencies in the course of performing their governmental functions that are applied to the cost of a program administered by the State agency or transferred to the Civil Penalty and Forfeiture Fund pursuant to G.S. 115C-457.1, and that are not defined as tax proceeds or nontax revenues. Departmental receipts may include moneys transferred into a fiscal year from a prior fiscal year.
15. Director. - The Director of the Budget, who is the Governor.
16. Encumbrance. - A financial obligation created by a purchase order, contract, salary commitment, unearned or prepaid collections for services provided by the State, or other legally binding agreement.
17. Fiscal period. - A fiscal biennium beginning in odd-numbered years or the first or second fiscal year within a fiscal biennium.
18. Fiscal year. - The annual period beginning July 1 and ending on the following June 30.
19. Fund. - A fiscal and accounting entity with a self-balancing set of accounts recording cash and other resources, together with all related liabilities and residual equities or balances, and changes therein, for the purpose of carrying on stated programs, activities, and objectives of State government.
20. General Fund Operating Budget. - The sum of all appropriations from the General Fund for a fiscal year, except appropriations for (i) capital improvements, including repairs and renovations, and (ii) one-time expenditures due to natural disasters or other emergencies shall not be included.
21. Increase the scope. - With respect to a capital improvement project, either increasing the square footage of a capital improvement project by more than ten percent (10%) of the amount authorized or programming new functions into the project.
22. Information technology. - As defined in G.S. 143B-1320.
23. Non-State entity. - Any of the following that is not a State agency: an individual, a firm, a partnership, an association, a county, a corporation, or any other organization or group acting as a unit. The term includes a unit of local government and public authority.
24. Nontax revenue. - Revenue that is not a tax proceed or a departmental receipt and that is required by statute to be credited to a fund.
25. Object or line item. - An expenditure or receipt in a recommended or enacted budget that is designated in the Budget Code Structure of the North Carolina Accounting System Uniform Chart of Accounts prescribed by the Office of the State Controller.
26. Performance information. - The organizational structure, agency activity statements, performance indicators, and analyses of program efficiency and effectiveness.
27. Public authority. - A municipal corporation that is not a unit of local government or a local governmental authority, board, commission, council, or agency that (i) is not a municipal corporation and (ii) operates on an area, regional, or multiunit basis, and the budgeting and accounting systems of which are not fully a part of the budgeting and accounting systems of a unit of local government.
28. Purpose or program. - A group of objects or line items for support of a specific activity outlined in a recommended or enacted budget that is designated by a nine-digit fund code in accordance with the Budget Code Structure of the North Carolina Accounting System Uniform Chart of Accounts prescribed by the Office of the State Controller.
29. State agency. - A unit of the executive, legislative, or judicial branch of State government, such as a department, an institution, a division, a commission, a board, a council, or The University of North Carolina. The term does not include a unit of local government or a public authority.
30. State funds. - Any moneys including federal funds deposited in the State treasury except moneys deposited in a trust fund or agency fund as described in G.S. 143C-1-3.
31. State resources. - All financial and nonfinancial assets of the State.
32. State revenue. - An increase, other than interfund transfers and debt issue proceeds, in the financial assets of any State governmental or proprietary fund.
33. Statutory appropriation. - An appropriation enacted by the General Assembly in the General Statutes that authorizes the current and future withdrawal of funds from the State treasury during current and future fiscal years, without further act of the General Assembly.
34. Unit of local government. - A municipal corporation that has the power to levy taxes, including a consolidated city-county, as defined by G.S. 160B-2(1), and all boards, agencies, commissions, authorities, and institutions thereof that are not municipal corporations.
35. Unreserved fund balance. - The available cash balance effective June 30 after excluding documented encumbrances, unearned revenue, statutory requirements, and other legal obligations to a fund's cash balance as determined by the State Controller. Beginning unreserved fund balance equals ending unreserved fund balance from the prior fiscal year.

History

(2006-66, s. 6.19(h); 2006-203, s. 3; 2006-221, s. 3A; 2006-259, s. 40(h); 2007-393, s. 2; 2010-31, s. 30.8; 2013-360, s. 6.12(a), (b), (h), (i); 2014-100, s. 6.4(a), (b); 2015-241, s. 7A.4(z); 2017-57, s. 6.6(a); 2018-5, s. 36.7(c).)

Government Efficiency and Reform. - Session Laws 2013-360, s. 6.5(a)-(f), provides: "(a) The Office of State Budget and Management shall contract for a Government Efficiency and Reform review and analysis of the executive branch of State government, which shall be known as NC GEAR. The purpose of the review and analysis is to evaluate the efficiency and effectiveness of State government and to identify specific strategies for making State government more efficient and effective. The review and analysis may examine entire departments, agencies, institutions, or similar programs in different departments. The review and analysis shall include an examination of the efficiency and effectiveness of major management policies, practices, and functions pertaining to the following areas:

"(1) The statutory authority, funding sources, and functions of each department, agency, institution, or program.

"(2) The organizational structure and staffing patterns in place to perform these functions and whether they are appropriate based on comparative data and other reasonable staffing criteria.

"(3) The measurement of each reviewed program's outcomes, overall performance, and success in accomplishing its mandated or stated mission and subsequent goals, considering the resources provided to the program.

"(4) State and local responsibilities for providing government services and funding for those services, and whether these responsibilities should be reallocated.

(5) Personnel systems operations and management.

"(6) State purchasing operations and management.

"(7) Information technology and telecommunications systems policy, organization, and management.

"(8) The identification of opportunities to reduce fragmentation, duplication, and related or overlapping services or activities through restructuring of departmental organizations and streamlining programs.

"(b) All executive branch departments, agencies, boards, commissions, authorities, and institutions in the executive branch of State government, including receipt-supported agencies, and all non-State entities receiving State funds shall be subject to review and analysis. The chief administrative officer of each entity shall ensure full cooperation with the Office of State Budget and Management and provide timely responses to the Office of State Budget and Management's request for information under the provisions of G.S. 143C-2-1(b).

"(c) The Office of State Budget and Management will work collaboratively with the Office of State Auditor to develop the review, analysis, and findings needed to produce a final report and recommendations to the Governor and General Assembly.

"(d) The contracting provisions of Chapter 143 of the General Statutes and related State purchasing and budget regulations do not apply to NC GEAR; however, the Office of State Budget and Management shall report all external contracts for consultants or professional services within 30 days of their execution to the Joint Legislative Commission on Governmental Operations, the Fiscal Research Division, the President Pro Tempore of the Senate, and the Speaker of the House of Representatives.

"(e) The Office of State Budget and Management shall submit an interim report of the NC GEAR's analysis, findings, and recommendations to the Governor, the President Pro Tempore of the Senate, the Speaker of the House of Representatives, the Fiscal Research Division, and the Program Evaluation Division by February 15, 2014, and a final report by February 15, 2015.

"(f) Funds appropriated for NC GEAR shall be used to contract with consultants and other experts and to pay for travel, postage, printing, planning, and other related costs as needed to accomplish the objectives specified for the project. Funds appropriated for the 2013-2015 fiscal biennium for NC GEAR shall not revert at the end of each fiscal year but shall remain available for expenditure for the project."

Session Laws 2013-360, s. 6.15(a), (b), provides: "(a) No State funds shall be used by a non-State entity to pay for lobbying or lobbyists.

"(b) For the purposes of this section, the following definitions apply:

"(1) Lobbying. - As defined by G.S. 120C-100(a)(9).

"(2) Lobbyist. - As defined by G.S. 120C-100(a)(10).

"(3) Non-State entity. - As defined by G.S. 143C-1-1(d)(18).

"(4) State funds. - As defined by G.S. 143C-1-1(d)(25) and interest earnings that accrue from those funds."

Session Laws 2013-360, s. 36.7(a)-(e), provides: "Definitions. - The following definitions apply in this section:

"(1) Capital project. - Any capital improvement, as that term is defined in G.S. 143C-1-1, that is not complete by the effective date of this section and that is funded in whole or in part with State funds, including receipts, non-General Fund sources, or statutorily or constitutionally authorized indebtedness of any kind. This term includes only projects with a total cost of one hundred thousand dollars ($100,000) or more.

"(2) Construction phase. - The status of a particular capital project as described using the terms customarily employed in the design and construction industries.

"(3) New capital project. - A capital project that is authorized in this act or subsequent to the effective date of this act.

"(b) Reporting. - The following reports are required:

"(1) By October 1, 2013, and every six months thereafter, each State agency shall report on the status of agency capital projects to the Joint Legislative Commission on Governmental Operations.

"(2) By October 1, 2013, and quarterly thereafter, each State agency shall report on the status of agency capital projects to the Fiscal Research Division and to the Office of State Budget and Management.

"(c) The reports required by subsection (b) of this section shall include at least the following information about every agency capital project:

"(1) The current construction phase of the project.

"(2) The anticipated time line from the current construction phase to project completion.

"(3) Information about expenditures that have been made in connection with the project, regardless of source of the funds expended.

"(4) Information about the adequacy of funding to complete the project, including estimates of how final expenditures will relate to initial estimates of expenditures, and whether or not scope reductions will be necessary in order to complete the project within its budget.

"(5) For new capital projects only, an estimate of the operating costs for the project for the first five fiscal years of its operation.

"(d) In addition to the other reports required by this section on October 1, 2013, and every six months thereafter, the Office of State Construction shall report on the status of the Facilities Condition Assessment Program (FCAP) to the Joint Legislative Commission on Governmental Operations. The report shall include (i) summary information about the average length of time that passes between FCAP assessments for an average State building; (ii) detailed information about when the last FCAP assessment was for each State building complex; and (iii) detailed information about the condition and repairs and renovations needs of each State building complex.

"(e) In addition to the other reports required by this section on October 1, 2013, and quarterly thereafter, the State Construction Office shall report to the General Assembly on the status of plan review, approval, and permitting for each State capital improvement project and community college capital improvement project over which the Office exercises plan review, approval, and permitting authority. Each report shall include (i) summary information about the workload of the Office during the previous quarter, including information about the average length of time spent by the State Construction Office on each major function it performs that is related to capital project approval and (ii) detailed information about the amount of time spent engaged in those functions for each project that the State Construction Office worked on during the previous quarter."

Budget Accountability And Transparency Reform Initiative. - Session Laws 2018-5, s. 6.3(a)-(e), provides: "(a) Finding and Purpose. - The General Assembly finds that the State budget is its central policy document and primary vehicle for directing the provision of programs and services to the citizens of the State. As such, the State's budget must be clear, transparent, and credible if it is to serve as a basis of accountability to its citizens. Therefore, it is the intent of the General Assembly to provide flexibility and support to the Governor in continuing efforts to effectuate the necessary changes to the structure and presentation of the State budget. The purpose of the Budget Accountability and Transparency Reform Initiative established by this section is to ensure the highest level of transparency for meaningful review of the State budget by all citizens of the State.

"(b) Base Budget Reform Plan Pilot. - The Office of State Budget and Management and the Department of Public Safety (Department) shall develop jointly and execute a base budget reform plan for the Department that ensures all of the following:

"(1) Strict adherence to Chapter 143C of the General Statutes, the State Budget Act.

"(2) Realignment of the Department's expenditures and revenues in a clear and logical manner.

"(3) Presentation of a comprehensive, accurate, and reliable account of all Department expenditures and revenues.

"(4) An annual base budget document for the Department that:

"a. Is presented in a format that promotes effective decision making, accountability, and oversight; and

"b. Provides detailed budget information that can be understood at all levels of State government and by members of the general public.

"(c) Realignments. - Effective with the development and presentation of the Governor's 2019-2021 recommended biennial base budget, the Office of State Budget and Management may realign the various line items of expenditure and revenue in the Department's budget. The Department, with the approval of the Office of State Budget and Management, shall build its line-item budgets, including elimination of vacant positions to more closely align with actual requirements and anticipated receipts for each of the programs and purposes contained in the Governor's Recommended Base Budget for the Department. The Department must budget receipts based on historical trends. Under no circumstances may the Department move receipts between programs and purposes. The Department's newly aligned line-item budgets shall be submitted to the General Assembly as part of the Governor's Recommended Base Budget for the 2019-2021 fiscal biennium.

"(d) Authorization to Eliminate Positions. - Notwithstanding any State law, rule, regulation, or directive to the contrary, including any order issued by the Governor or the Governor's designee, vacant positions in the Department may be eliminated for the purpose of realigning the Department's budget only upon the express authorization of the General Assembly in this act or a subsequent enactment.

"(e) Reporting. - The Office of State Budget and Management shall report its progress in developing the realigned base budget required in subsection (a) of this section to the chairs of the House of Representatives Appropriations Committee, the chairs of the Senate Appropriations•ase Budget Committee, and the Fiscal Research Division of the General Assembly no later than October 1, 2018. The Office of State Budget and Management shall submit the newly realigned base budget to the Fiscal Research Division by January 1, 2019."

Editor's Note. - Session Laws 2006-259, s. 40(h) was repealed, pursuant to the terms of Session Laws 2006-259, s. 40(i), upon Session Laws 2006-221 becoming law.

Session Laws 2007-323, s. 6.4, provides: "Notwithstanding G.S. 143C-6-4(b), the Office of State Budget and Management, in consultation with the Office of the State Controller and the Fiscal Research Division, may adjust the enacted budget by making transfers among purposes or programs for the sole purpose of correctly aligning authorized positions and associated operating costs with the appropriate purposes or programs as defined in G.S. 143C-1-1(d)(23). The Office of State Budget and Management shall change the certified budget to reflect these adjustments only after reporting the proposed adjustments to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division. Under no circumstances shall total General Fund expenditures for a State department exceed the amount appropriated to that department from the General Fund for the fiscal year."

Session Laws 2007-323, s. 1.2, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2007'."

Session Laws 2007-323, s. 32.3, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2007-2009 fiscal biennium, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2007-2009 fiscal biennium."

Session Laws 2007-323, s. 32.5, is a severability clause.

Session Laws 2009-399, s. 5, provides: "(a) Notwithstanding Chapter 143C of the General Statutes, funds in the unreserved credit balance on June 30, 2009, may be used only to partially repay federal funds that were overdrawn in the Medicaid Program in the 2008-2009 fiscal year. The remainder of the overdrawn funds may be repaid during the 2009-2011 fiscal biennium. The Director of the Budget shall report the timing and amount of the repayment to the chairs of the Senate and House of Representatives Appropriations Committees and the Fiscal Research Division by October 1, 2009.

"(b) This section becomes effective June 30, 2009."

Session Laws 2009-451, s. 6.21, provides: "Notwithstanding Chapter 143C of the General Statutes or any other provision of law, the Director of the Budget shall use funds appropriated in this act to repay any outstanding federal Medicaid funds not repaid pursuant to Section 5 of S.L. 2009-399. If funds available in the Department of Health and Human Services over the 2009-2011 fiscal biennium are not sufficient to repay the funds, the Director may use any funds within the State budget.

"The Director of the Budget shall report the amount of funds repaid no later than 30 days after payment to the Joint Legislative Commission on Governmental Operations, the Chairs of the Senate and House of Representatives Appropriations Committees, and the Fiscal Research Division."

Session Laws 2009-451, s. 1.2, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2009'."

Session Laws 2009-451, s. 28.3, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2009-2011 fiscal biennium, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2009-2011 fiscal biennium."

Session Laws 2009-451, s. 28.5, is a severability clause.

Session Laws 2012-142, s. 27.1, provides: "The provisions of the State Budget Act, Chapter 143C of the General Statutes, are reenacted and shall remain in full force and effect and are incorporated in this act by reference." (For prior similar provisions, see Session Laws 2007-323, s. 32.1; 2008-107, s. 30.1; 2009-451, s. 28.1; 2010-31, s. 32.1).

Session Laws 2012-142, s. 1.2, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2012.'"

Session Laws 2012-142, s. 27.4, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2012-2013 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2012-2013 fiscal year."

Session Laws 2012-142, s. 27.7, is a severability clause.

Session Laws 2013-360, s. 1.1, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2013.'"

Session Laws 2013-360, s. 38.2, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2013-2015 fiscal biennium, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2013-2015 fiscal biennium."

Session Laws 2013-360, s. 38.5, is a severability clause.

Session Laws 2014-100, s. 6.4(h), made the amendment of subdivision (d)(1c) and the repeal of subdivision (d)(7a) by Session Laws 2014-100, s. 6.4(a) and (b), applicable beginning with the recommended State budget of the 2015-2017 fiscal biennium.

Session Laws 2014-100, s. 1.1, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2014.'"

Session Laws 2014-100, s. 38.7, is a severability clause.

Session Laws 2017-57, s. 6.6(h), made the amendment to subsection (d) of this section by Session Laws 2017-57, s. 6.6(a), effective July 1, 2017, and applicable beginning with the base budget developed for the 2018 2019 fiscal year.

Session Laws 2017-57, s. 26.3(a)-(d), as amended by Session Laws 2018-5, s. 26.1(a), provides: "(a) The General Assembly finds and declares that a nationally recognized cost-benefit analysis model will allow the General Assembly to direct public resources to cost-effective programs that deliver the best outcomes for residents. The Office of State Budget and Management shall receive periodic updates that incorporate new research and enhancements identified through work in participating states and practical technical assistance to implement this cutting-edge approach for identifying policy and budget options. The General Assembly also intends to provide necessary assistance for State agencies to align their individual efforts and resources to achieve statewide priority outcomes.

"(b) The Office of State Budget and Management may consult and work with staff from the Pew-MacArthur Results First Initiative to implement a cost-benefit analysis model for use in crafting policy and budget decisions. The goal of the project is to obtain a model that will help the State invest in policies and programs that can be shown to work.

"State agencies shall provide any information requested by the Office of State Budget and management for purposes of implementing this project. Local government and non-State entities that receive State funds may also be required to provide information to their funding agency or to the Office of State Budget and Management for purposes of implementing this project.

"(c) The Office of State Budget and Management shall file an interim report with the Joint Legislative Commission on Governmental Operations, the Joint Legislative Oversight Committee on General Government, and the Joint Legislative Program Evaluation Oversight Committee by April 8, 2018, on progress in implementing the cost-benefit analysis model and an annual report by October 1 of each year. The reports may include recommendations for legislation.

"(d) By October 1, 2018, the Office of State Budget and Management, in consultation with Results First partner agencies and the Pew-MacArthur Results First Initiative, shall develop and publish descriptive, formal definitions for tiered-levels of evidence. Each definition shall outline the criteria needed to qualify for each tier of evidence. The Office of State Budget and Management shall also identify which program or service areas will be expected to include evidence and research to support budget proposals. The definitions may be periodically updated as needed. The definitions, and any subsequent updates, shall be included in the annual report required by subsection (c) of this section."

Session Laws 2017-57, s. 31.3(c), provides: "The Department shall determine the amount required by each agency to cover the cost of the increase in the amount allocated and charged for transportation for fiscal biennium 2019-2021. Notwithstanding the provisions of Chapter 143C (State Budget Act) of the General Statutes, the Office of State Budget and Management shall include the increase in the amount allocated and charged for transportation in the base budget for each State agency for fiscal biennium 2019-2021."

Session Laws 2017-57, s. 36.7(a)-(e), as amended by Session Laws 2018-142, s. 24(a), provides: "(a) Definitions. - The following definitions apply in this section:

"(2) Construction phase. - The status of a particular capital project as described using the terms customarily employed in the design and construction industries.

"(3) New capital project. - A capital project that is authorized in this act or subsequent to the effective date of this act.

"(b) Reporting. - The following reports are required:

"(1) By October 15, 2017, and every six months thereafter, each State agency shall report on the status of agency capital projects to the Joint Legislative Commission on Governmental Operations.

"(2) By October 15, 2017, and quarterly thereafter, each State agency shall report on the status of agency capital projects to the Fiscal Research Division of the General Assembly and to the Office of State Budget and Management.

"(c) The reports required by subsection (b) of this section shall include at least the following information about every agency capital project:

"(1) The current construction phase of the project.

"(2) The anticipated time line from the current construction phase to project completion.

"(3) Information about expenditures that have been made in connection with the project, regardless of source of the funds expended.

"(5) For new capital projects only, an estimate of the operating costs for the project for the first five fiscal years of its operation.

"(d) In addition to the other reports required by this section, on October 1, 2017, and every six months thereafter, the Office of State Construction shall report on the status of the Facilities Condition Assessment Program (FCAP) to the Joint Legislative Commission on Governmental Operations. The report shall include (i) summary information about the average length of time that passes between FCAP assessments for an average State building; (ii) detailed information about when the last FCAP assessment was for each State building complex; and (iii) detailed information about the condition and repairs and renovations needs of each State building complex.

"(e) In addition to the other reports required by this section, on October 1, 2017, and quarterly thereafter, the State Construction Office shall report to the Joint Legislative Oversight Committee on Capital Improvements on the status of plan review, approval, and permitting for each State capital improvement project and community college capital improvement project over which the Office exercises plan review, approval, and permitting authority. Each report shall include (i) summary information about the workload of the Office during the previous quarter, including information about the average length of time spent by the State Construction Office on each major function it performs that is related to capital project approval, and (ii) detailed information about the amount of time spent engaged in those functions for each project that the State Construction Office worked on during the previous quarter."

Session Laws 2017-57, s. 1.1, provides: "This act shall be known as the 'Current Operations Appropriations Act of 2017.'"

Session Laws 2017-57, s. 39.4, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2017-2019 fiscal biennium, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2017-2019 fiscal biennium."

Session Laws 2017-57, s. 39.6, is a severability clause.

Session Laws 2018-2, s. 1(e), provides: "No Conflict. - The legislative power of the State is vested in the General Assembly of the State of North Carolina. The Legislature must declare the policy of the law, fix legal principles which are to control in given cases, and provide standards for guidance in executing the law. The Governor shall take care that the laws be faithfully executed. Therefore, nothing in this section shall be construed, or is intended, to (i) be in conflict with the rights of any person or any mandatory provision of federal law or to infringe on the constitutional powers of the Governor to execute the laws of this State or (ii) preclude or supersede any mitigation agreement entered into under applicable State or federal law."

Session Laws 2018-5, s. 26.1(b), provides: "The Office of State Budget and Management shall research best practices in performance management from leading states, academia, and nongovernmental organizations and implement a pilot performance management initiative that is designed to inform the budget process and operational management of State programs. By November 30, 2018, the Office of State Budget and Management shall report to the Joint Legislative Oversight Committee on General Government on the progress of implementing the pilot. The report may include recommendations for additional legislation. For purposes of this section, the term 'performance management' means an ongoing process of measuring, evaluating, and adjusting actions to improve outcomes."

Session Laws 2018-5, s. 1.1, provides: "This act shall be known as the 'Current Operations Appropriations Act of 2018.'"

Session Laws 2018-5, s. 39.4, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2018-2019 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2018-2019 fiscal year."

Session Laws 2018-5, s. 39.7, is a severability clause.

Session Laws 2020-4, s. 1.1, provides: "This act shall be known as the "2020 COVID-19 Recovery Act."

Session Laws 2020-4, s. 1.2, provides: "Except as otherwise provided, the following definitions apply in this act:

"(1) CDC. - The federal Centers for Disease Control and Prevention.

"(2) Coronavirus or COVID-19. - The coronavirus disease 2019.

"(3) COVID-19 emergency. - The period beginning March 10, 2020, and ending on the date the Governor signs an executive order rescinding Executive Order No. 116 (2020), Declaration of a State of Emergency to Coordinate Response and Protective Actions to Prevent the Spread of COVID-19.

"(4) COVID-19 Recovery Legislation. - The following legislation enacted by Congress:

"a. The Coronavirus Aid, Relief, and Economic Security (CARES) Act, P.L. 116-136.

"b. The Families First Coronavirus Response Act, P.L. 116-127.

"c. The Coronavirus Preparedness and Response Supplemental Appropriations Act, 2020, P.L. 116-123.

"d. Paycheck Protection Program and Health Care Enhancement Act, P.L. 116-139."

Session Laws 2020-4, s. 1.3, provides: "The General Assembly finds that State government must serve as a facilitator in assisting local governments, communities, families, workers and other individuals, and businesses in accessing federal relief and recovery funds related to the COVID-19 pandemic. The purpose of this act is to fulfill the General Assembly's constitutional duty to appropriate all funds, including federal funds appropriated or otherwise made available under the COVID-19 Recovery Legislation, and to direct the use of those funds in a manner that is consistent with the authorizing federal legislation and that responsibly provides for the public health and economic well-being of the State."

Session Laws 2020-4, s. 4.3, as amended by Session Laws 2021-1, s. 3.5, provides: "(a) OSBM shall establish a temporary North Carolina Pandemic Recovery Office (Office) to oversee and coordinate funds made available under COVID-19 Recovery Legislation. This Office shall also provide technical assistance and ensure coordination of federal funds received by State agencies and local governments and ensure proper reporting and accounting of all funds. The authorization set forth in this section expires on December 31, 2021, and the Office shall cease to operate upon expiration of the authorization."

"(b) Beginning March 1, 2021, and ending on the date the Office ceases to operate under subsection (a) of this section, the Office shall submit a monthly report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division that includes each of the following:

"(1) For each month since March 1, 2020, the number of staff hired to support the Office's duties and responsibilities, including the position numbers, whether the position is permanent or temporary, the start date and end date for each temporary position, the funding source for each position, and the total amount of funds spent on salary and benefits for personnel.

"(2) For each month since March 1, 2020, an accounting of nonpersonnel expenditures.

"(3) A description of the Office's activities during the 2020 calendar year.

"(4) A description of the Office's activities related to the Fund that remain to be completed in the 2021 calendar year.

"(c) The General Assembly finds that the need for a fully staffed Office declines as funds from the Fund are expended and reports are submitted to the federal government. Therefore, the Office shall reduce its level of staffing accordingly as the duties and responsibilities of the Office decline."

Effect of Amendments. - Session Laws 2006-66, s. 6.19(h), as added by Session Laws 2006-221, s. 3A, effective July 1, 2007, added the last two sentences to subsection (b).

Session Laws 2007-393, s. 2, effective October 1, 2007, substituted "agency, unless specifically exempted herein" for "agency" in the first sentence of subsection (b).

Session Laws 2010-31, s. 30.8, effective July 1, 2010, added subdivision (d)(16a).

Session Laws 2013-360, s. 6.12(a), effective July 1, 2013, in subdivision (d)(19), inserted "or a departmental receipt" and substituted "a fund" for "the General Fund."

Session Laws 2013-360, s. 6.12(b), effective July 1, 2013, in subdivision (d)(30), deleted "General Fund" following "The available" and "federal grants" following "unearned revenue," and substituted "a fund's cash balance" for "General Fund cash."

Session Laws 2013-360, s. 6.12(h), effective July 1, 2013, added subdivisions (d)(1a), (d)(1b), and (d)(7a).

Session Laws 2013-360, s. 6.12(i), effective July 1, 2013, substituted "mandated by the General Assembly" for "directed by the General Assembly but left to the Director to carry out" in subdivision (d)(7).

Session Laws 2014-100, ss. 6.4(a) and 6.4(b), effective July 1, 2014, added subdivision (d)(1c) and deleted subdivision (d)(7a). See Editor's note for applicability.

Session Laws 2015-241, s.7A.4(z), effective July 1, 2015, substituted "G.S. 143B-1320" for "G.S. 147-33.81(2)" at the end of subdivision (d)(17).

Session Laws 2017-57, s. 6.6(a), effective July 1, 2017, added sub-subdivision (d)(1c)h.; deleted former subdivision (d)(6) which read: "Capital Improvements Appropriations Act. - An act of the General Assembly containing appropriations for one or more capital improvement projects.", added "and capital improvement needs" in subdivision (d)(9), and rewrote subdivision (d)(28) which formerly read: "Statutory appropriation. - An appropriation that authorizes the withdrawal of funds from the State treasury during fiscal years extending beyond the current fiscal biennium, without further act of the General Assembly." For effective date and applicability, see editor's note.

Session Laws 2018-5, s. 36.7(c), effective July 1, 2018, added "over one hundred thousand dollars ($100,000) in value" at the end of subdivision (d)(5).

CASE NOTES

Editor's Note. - Some of the annotations below were decided under former G.S. 143-2 and 143-16.

Appropriation of Federal Block Grant Funds. - Governor's claim challenging the General Assembly's appropriation of federal block grant funds awarded to the State was properly dismissed as the block grant funds were, despite their source in the federal government, subject to appropriation by the General Assembly because Congress left the issue of state legislative appropriation of federal block grants for each state to determine; and, while some federal funds could be considered custodial agency funds, the State Budget Act treated federal block grants as state funds subject to appropriation through the statutory budgetary process, and the Governor did not identify any federal prohibition against treating the block grant funds as state funds subject to legislative appropriation. Cooper v. Berger, 268 N.C. App. 468, 837 S.E.2d 7 (2019), aff'd, 376 N.C. 22, 852 S.E.2d 46, 2020 N.C. LEXIS 1133 (2020).

Art Museum Building Commission. - There is nothing in this Article or G.S. 143B-58 which indicates a legislative intent to exempt the Art Museum Building Commission from the requirements of this Article. Lewis v. White, 287 N.C. 625, 216 S.E.2d 134 (1975).

Opinions of Attorney General

Whether private donations to the State or its agencies are or are not subject to this Article, the Executive Budget Act, depends upon the nature of the gift and the particular terms and directions of the donor. See opinion of Attorney General to Mr. Phillip J. Kirk, Jr., Secretary, Department of Human Resources, 56 N.C.A.G. 10 (1986).

Student activity fees, which are assessed from students of the Schools for the Deaf pursuant to G.S. 115C-126.1 (see now 143B-216.44), are "State funds" and are subject to the fiscal control of this Article, the Executive Budget Act. See opinion of Attorney General to Mr. Phillip J. Kirk, Jr., Secretary, Department of Human Resources, 56 N.C.A.G. 10 (1986).

Patient funds held by institutions operated by the Division of Mental Health, either in its capacity as representative payee of the patient's Social Security income or as trustee of other personal funds received voluntarily from the patient or on his behalf, are not "State funds" and are not subject to this Article, the Executive Budget Act, or fiscal policies adopted pursuant to the Act. See opinion of Attorney General to Mr. Phillip J. Kirk, Jr., Secretary, Department of Human Resources, 56 N.C.A.G. 10 (1986).

"Enterprise funds," established for the enhancement of vocational rehabilitation services for clients of State-operated sheltered workshops, are "State funds" and are subject to the fiscal control of this Article, the Executive Budget Act. See opinion of Attorney General to Mr. Phillip J. Kirk, Jr., Secretary, Department of Human Resources, 56 N.C.A.G. 10 (1986).

The Governor has authority to transfer money from the Wireless 911 Fund to avoid a budget deficit, although it is within his discretion as to whether to do so. See opinion of Attorney General to Mr. Charles B. Archer, Vice Chair, North Carolina Wireless 911 Board, 2001 N.C. AG LEXIS 39 (6/29/01).

§ 143C-1-2. Appropriations: constitutional requirement; reversions.

Appropriation Required to Withdraw State Funds From the State Treasury. - In accordance with Section 7 of Article V of the North Carolina Constitution, no money shall be drawn from the State treasury but in consequence of appropriations made by law. A law enacted by the General Assembly that expressly appropriates funds from the State treasury is an appropriation; however, an enactment by the General Assembly that describes the purpose of a fund, authorizes the use of funds, allows the use of funds, or specifies how funds may be expended, is not an appropriation.
Reversions. - Unless otherwise provided by law, at the end of the fiscal year the unexpended, unencumbered balance of an appropriation reverts to the fund from which the appropriation was made; except that (i) an appropriation to the General Assembly shall not revert unless otherwise provided by the Legislative Services Commission, (ii) an appropriation for a capital improvement project shall revert as provided by G.S. 143C-8-11, and (iii) an appropriation for the implementation of information technology (IT) projects shall not revert until the project is implemented or abandoned.

History

(2006-203, s. 3; 2019-250, s. 5.11.)

Cross References. - As to collegiate insignia plates and certain other special plates, see G.S. 20-81.12.

Disaster Recovery Act of 2017. - Session Laws 2017-119, s. 5, provides: "No Reversion of Funds. - Funds described in Section 1 of this act shall remain available to implement the provisions of this act until the General Assembly directs the reversion of any unexpended and unencumbered funds. G.S. 143C-6-23(f1)(1) shall not apply to funds de- scribed in Section 1 of this act."

Editor's Note. - Session Laws 2009-451, s. 15.6, provides: "Notwithstanding the provisions of G.S. 143C-1-2(b), certification and renewal fees collected by the Dispute Resolution Commission are nonreverting and are only to be used at the direction of the Commission."

For prior similar provisions, see Session Laws 2007-323, s. 14.9.

Session Laws 2009-451, s. 1.2, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2009'."

Session Laws 2009-451, s. 28.5, is a severability clause.

Session Laws 2014-100, s. 6.7(a)-(g), provides: "(a) Finding. - The General Assembly finds that State budgeting is more transparent when the enacted budget for any given fiscal year appropriates all State funds intended for expenditure during that fiscal year, including funds encumbered in prior fiscal years, funds carried forward from prior fiscal years pursuant to statutory authority, and unearned revenue earned in a prior fiscal year.

"(b) Review of Current Practices. - The Office of State Budget and Management and the Office of the State Controller, in consultation with the Fiscal Research Division, shall examine all of the following:

"(1) How funds in the General Fund are currently accounted for, including practices relating to (i) the reversion of appropriated funds to the General Fund, (ii) the appropriation of funds to pay obligations incurred in prior fiscal years, (iii) the movement of funds into and out of special funds, and (iv) related matters.

"(2) How the practices examined pursuant to subdivision (1) of this section compare with those of other states.

"(3) Whether any statutory or administrative changes would improve the transparency and accounting accuracy of the General Fund.

"(4) Whether the practices examined pursuant to subdivision (1) of this section comply with applicable standards of the Governmental Accounting Standards Board.

"(c) Pilot Program. - The Office of State Budget and Management and the Office of the State Controller, in consultation with the Fiscal Research Division, may establish and operate a pilot program to test measures for improving the extent to which funds that are to be spent in a given fiscal year are properly budgeted in that fiscal year. The pilot program may be subject to the following:

"(1) The pilot program may include the following programs and funds:

"a. Some or all of the grant programs and special funds within the Department of Environment and Natural Resources.

"b. Some or all of the unexpended appropriations carried forward by The University of North Carolina pursuant to G.S. 116-30.3.

"c. Any other programs and funds that are deemed to be suitable for inclusion in the pilot program.

"(2) Funds and programs that are included in the pilot program may be subject to the following requirements:

"a. An alternative liquidation period for encumbered funds that do not revert at the end of the 2014-2015 fiscal year under G.S. 143C-1-2(b).

"b. A requirement (i) that The University of North Carolina prepare an estimate of the amount of funds it anticipates will be carried forward into the 2015-2016 fiscal year pursuant to G.S. 116-30.3 and (ii) that this estimate be submitted to the Office of State Budget and Management and to the Fiscal Research Division no later than March 1, 2015.

"(d) Report. - No later than October 1, 2015, the Office of State Budget and Management and the Office of the State Controller, in consultation with the Fiscal Research Division, shall report the results of the review and pilot program required by this section to the chairs of the Senate Appropriations•ase Budget Committee, to the chairs of the House Appropriations Committee, and to the Director of the Budget. The report may include a recommendation to extend the pilot program for an additional fiscal year, if this is deemed desirable.

"(e) Recommendations for an Alternative Pilot Program. - If the Office of State Budget and Management and the Office of the State Controller, in consultation with the General Assembly's Fiscal Research Division, determine that the pilot program required by this section cannot be implemented, they shall report the reasons for reaching this conclusion, along with any other findings and recommendations for future action, to the chairs of the Senate Appropriations•ase Budget Committee, to the chairs of the House Appropriations Committee, and to the Director of the Budget no later than February 1, 2015. If a report is submitted pursuant to this subsection, then the pilot program required by subsection (c) of this section shall not be implemented, but the review required by subsection (b) of this section shall nonetheless be performed.

"(f) Expiration of Pilot Program. - The pilot program required by this section shall expire upon the submission of the report required by subsection (d) of this section or the submission pursuant to subsection (e) of this section stating that the pilot program cannot be implemented.

"(g) Effective Date. - This section is effective when it becomes law and applies to funds appropriated for the 2014-2015 fiscal year and subsequent fiscal years." Session Laws 2014-100, s. 6.7 became effective July 1, 2014.

Session Laws 2014-100, s. 1.1, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2014.'"

Session Laws 2014-100, s. 38.4, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2014-2015 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2014-2015 fiscal year."

Session Laws 2014-100, s. 38.7, is a severability clause.

Session Laws 2016-94, s. 14.20A(b), as amended by Session Laws 2017-17, s. 1, and as amended by Session Laws 2019-75, s. 2, provides: "Notwithstanding G.S. 143C-6-23(f1)(1) and G.S. 143C-1-2, funds allocated by this section shall be held in reserve by the Office of State Budget and Management and the allocations to each County shall be released when the County and one or more of the municipalities specified in subsection (a) of this section reach agreement on the funds allocated to that County by this section through interlocal agreements or the formation of regional water and sewer authorities or a combination of interlocal agreements and regional water and sewer authorities. Funds not spent or encumbered by June 30, 2021, shall be returned by the local governments or regional water and sewer authority to the Office of State Budget and Management and revert to the General Fund."

Session Laws 2017-17, s. 1(a), provides: "Of the funds appropriated to the Department of Environmental Quality, Division of Water Infrastructure, by this act, the sum of fourteen million five hundred forty-eight thousand nine hundred eighty-one dollars ($14,548,981) shall be used to fund interconnection, extension of water lines, and related water system modification and expansion involving the Counties of Rockingham and Guilford and the municipalities of Oak Ridge, Stokesdale, Summerfield, Reidsville, Madison, and Mayodan. Of the funds allocated by this section, no more than twenty-five percent (25%) of the funds shall be used for Guilford County and may include one or more of the municipalities listed in this section located in Guilford County, and no more than seventy-five percent (75%) shall be used for Rockingham County and may include one or more of the municipalities listed in this section located in Rockingham County. The funds allocated by this section may be spent for planning, design, survey, real property acquisition, construction, repair, and any other activities necessary to improve the performance and reliability and expand the capacity and service footprint of participating water systems in Rockingham and Guilford Counties. The Counties of Rockingham and Guilford and the municipalities participating in the interconnection and extension of water lines within each county funded by this section shall agree on the use of the funds allocated by this section through any combination of (i) interlocal agreements under Article 20 of Chapter 160A of the General Statutes that specify, at a minimum, the ownership of the water lines and infrastructure funded by this section and long-term maintenance, repair, and replacement responsibility or (ii) one or more regional water and sewer authorities under Article 1 of Chapter 162A of the General Statutes."

Session Laws 2017-57, s. 11C.14(c), provides: "G.S. 143C-1-2(b) shall not apply to funds appropriated for the 2016-2017 fiscal year for Eckerd Kids and Caring for Children's Angel Watch program."

Session Laws 2017-57, s. 1.1, provides: "This act shall be known as the 'Current Operations Appropriations Act of 2017.'"

Session Laws 2017-57, s. 39.6, is a severability clause.

Session Laws 2018-5, s. 18B.4(a), as amended by Session Laws 2018-97, s. 5.5, provides: "Notwithstanding G.S. 143C-1-2(b), for fiscal years 2018-2019, 2019-2020, and 2020-2021, the Judicial Department shall transfer any unexpended, unencumbered funds to Budget Code 22006-2006 to be used to implement an integrated information technology system (e-Courts) in accordance with G.S. 7A-343.2(b). The cumulative sum transferred shall not exceed three percent (3%) of the Judicial Department's certified budgets for Budget Code 12000, Administrative Office of the Courts, and Budget Code 12001, Office of Indigent Defense Services, for fiscal years 2018-2019, 2019-2020, and 2020-2021."

Session Laws 2018-5, s. 1.1, provides: "This act shall be known as the 'Current Operations Appropriations Act of 2018.'"

Session Laws 2018-5, s. 39.7, is a severability clause.

Effect of Amendments. - Session Laws 2019-250, s. 5.11, effective November 18, 2019, rewrote the second sentence of subsection (a).

§ 143C-1-3. Fund types.

Types. - The Controller shall account for State resources through use of the fund types listed in this subsection. The Controller may not establish a fund type that differs from the listed fund types unless the Governmental Accounting Standards Board has approved the use of the different fund type.
1. Capital Projects Funds. - Accounts for financial resources to be used for the acquisition or construction of major capital facilities other than those financed by proprietary funds or fiduciary funds. Capital outlays financed from general obligation bond proceeds should be accounted for through a capital projects fund.
2. Debt Service Funds. - Accounts for the accumulation of resources for, and the payment of, general long-term debt principal and interest.
3. General Fund. - Accounts for all financial resources except those required to be reported in another fund.
4. Special Revenue Funds. - Accounts for the proceeds of specific revenue sources, other than debt service or for major capital projects, that are legally restricted to expenditure for specified purposes.
5. Permanent Funds. - Accounts for resources that are legally restricted to the extent that only earnings, and not principal, may be used for purposes that support the reporting government's programs.
6. Enterprise Funds. - Accounts for any activity for which a fee is charged to external users for goods or services. Activities are required to be reported as enterprise funds if any one of the following criteria is met. Each of these criteria should be applied in the context of the activity's principal revenue sources.
  1. The activity is financed with debt that is secured solely by a pledge of the net revenues from fees and charges of the activity.
  2. Laws or regulations require that the activity's costs of providing services, including capital costs, be recovered with fees and charges rather than with taxes or similar revenues.
  3. The pricing policies of the activity establish fees and charges designed to recover its costs, including capital costs.
7. Internal Service Funds. - Accounts for any activity that provides goods or services to other funds, departments, or agencies of the primary government and its component units, or to other governments, on a cost-reimbursement basis. Internal service funds should be used only if the reporting government is the predominant participant in the activity. Otherwise, the activity should be reported as an enterprise fund.
8. Custodial Funds. - Accounts for resources held by the reporting government in a purely custodial capacity. Custodial funds are fiduciary activities that are not required to be reported in investment trust funds, pensions and other employee benefit trust funds, and private-purpose trust funds, as described in this section.
9. Investment Trust Funds. - Accounts for the external portion of investment pools reported by the sponsoring government.
10. Pension and Other Employee Benefit Trust Funds. - Accounts for resources that are required to be held in trust for pension plans, other postemployment benefit plans, and other employee benefit plans that meet certain Governmental Accounting Standards Board (GASB) criteria.
11. Private-Purpose Trust Funds. - Accounts for all other trust arrangements that are not required to be reported in investment trust funds and pension and other employee benefit trust funds.
Designation. - If State resources are designated by law as a fund or an account within a fund and there is a conflict between the legal designation and the appropriate accounting designation of the State resources, then the Controller shall determine the appropriate designation of the State resources based on the intended use and financial treatment of the State resources as set out in the law establishing the fund or account. The Controller shall determine the fund type of all separate funds and account for them accordingly. The Controller shall keep the total number of funds to the minimum number practical.
Notwithstanding subsections (a) and (b) of this section, funds established for The University of North Carolina and its constituent institutions pursuant to the following statutes are exempt from Chapter 143C of the General Statutes and shall be accounted for as provided by those statutes, except that the provisions of Article 8 of Chapter 143C of the General Statutes shall apply to the funds: G.S. 116-35, 116-36, 116-36.1, 116-36.2, 116-36.4, 116-36.5, 116-36.6, 116-44.4, 116-68, 116-220, 116-235.

The fund types are described as follows, except that where a conflict exists between a description used in this section and the definition of the corresponding fund type issued by the Governmental Accounting Standards Board, it is presumed that the definition issued by the Governmental Accounting Standards Board shall prevail.

Governmental Funds.

Proprietary Funds.

Fiduciary Funds.

History

(2006-203, s. 3; 2013-360, s. 6.12(c); 2019-250, s. 5.9(a).)

Editor's Note. - Session Laws 2009-451, s. 6.6B, provides: "Notwithstanding G.S. 143C-1-3 or any other provision of law to the contrary, the Office of State Budget and Management and the Office of the State Controller shall consult with the Joint Legislative Commission on Governmental Operations prior to the establishment of a new special fund as defined in G.S. 143C-1-3."

Session Laws 2009-451, s. 1.2, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2009'."

Session Laws 2009-451, s. 28.5, is a severability clause.

Session Laws 2011-145, s. 6.4, provides: "Notwithstanding G.S. 143C-1-3 or any other provision of law to the contrary, the Office of State Budget and Management and the Office of the State Controller shall consult with the Joint Legislative Commission on Governmental Operations prior to the establishment of a new fund as defined in G.S. 143C-1-3."

Session Laws 2011-145, s. 1.1, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2011.'"

Session Laws 2011-145, s. 32.2, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2011-2013 fiscal biennium, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2011-2013 fiscal biennium."

Session Laws 2011-145, s. 32.5, is a severability clause.

Effect of Amendments. - Session Laws 2013-360, s. 6.12(c), effective July 1, 2013, deleted "116-238" following "116-235" at the end of subsection (c).

Session Laws 2019-250, s. 5.9(a), effective November 18, 2019, in subdivision (a)(1), substituted "fiduciary funds" for "in trust funds for individuals, private organizations, or other governments"; in subdivision (a)(4), substituted "debt service" for "trusts for individuals, private organizations, or other governments"; substituted "Fiduciary" for "Agency and Trust" in the heading preceding subdivision (a)(8); in subdivision (a)(8), substituted "Custodial" for "Agency" in the heading and rewrote the second sentence which formerly read: "Agency funds typically involve only the receipt, temporary investment, and remittance of fiduciary resources to individuals, private organizations, or other governments."; in subdivision (a)(10), substituted "pension plans, other postemployment benefit plans, and other employee benefit plans that meet certain Governmental Accounting Standards Board (GASB) criteria" for "the members and beneficiaries of defined benefit pension plans, defined contribution plans, other postemployment benefit plans, or other employee benefit plans"; and in subdivision (a)(11), substituted "that are not required to be reported in investment trust funds and pension and other employee benefit trust funds" for "under which principal and income benefit individuals, private organizations, or other governments."

CASE NOTES

§ 143C-1-4. Interest earnings credited to the General Fund; interest earnings on Highway Fund and Highway Trust Fund credited to those funds.

Interest Earnings Credited to the General Fund. - Unless otherwise provided by law, interest earned on all funds shall be credited to the General Fund.
Exception for Interest Earnings on Highway Fund and Highway Trust Fund. - Interest earned by the Highway Fund and the Highway Trust Fund shall be credited to the Highway Fund and the Highway Trust Fund respectively.

History

(2006-203, s. 3.)

§ 143C-1-5. Chapter is applicable to The University of North Carolina.

Except as expressly provided in G.S. 143C-1-3(c) or otherwise expressly provided by law, The University of North Carolina shall be subject to the provisions of this Chapter in the same manner and to the same degree as other State agencies.

History

(2013-360, s. 6.12(d).)

ARTICLE 2. Director of the Budget.

Sec.

§ 143C-2-1. Governor is Director of the Budget.

Governor is Director of the Budget. - The Governor is the Director of the Budget. In that capacity, the Governor is required by Article III, Section 5(3) of the North Carolina Constitution to prepare and recommend a budget and to administer the budget as enacted by the General Assembly. The Governor's powers under this Chapter extend to all agencies, institutions, departments, bureaus, boards, and commissions of the State of North Carolina under whatever name now or hereafter known. The Governor may delegate the authority to perform a power or duty of the Director under this Chapter to the Office of State Budget and Management or to one or more persons.
State Agencies and Non-State Entities to Provide Information Requested by the Director; Examination of Persons and Agencies by Director. - Upon request, all State agencies and non-State entities subject to this act shall furnish the Director, in the form and at the time requested by the Director, any information desired by the Director in relation to their respective activities or fiscal affairs so long as the information is not confidential pursuant to federal or State law. The Director may subpoena and examine under oath any person directly or indirectly responsible for the operations of any executive State agency or any non-State entity subject to the provisions of this Chapter.
Governor May Request State Auditor to Audit State Agency or Non-State Entity Receiving State Funds. - As authorized by G.S. 147-64.6(c)(3), the Governor may request the State Auditor to make an audit of or cause an audit to be made of the books and accounts of any State agency and may require that the cost of the audit be borne by the State agency. The Governor may also request the State Auditor to make an audit of or cause an audit to be made of the books and records of any non-State entity receiving State funds pursuant to the State Auditor's authority granted in G.S. 147-64.7.

History

(2006-203, s. 3.)

Annual Follow-up Analyses of Human Resources/Payroll Function Mapping Analysis. - Session Laws 2007-323, s. 6.7.(a)-(e), provides: "(a) The Office of State Budget and Management, in consultation with the Office of State Controller and the Office of State Personnel, shall conduct annual follow-up analyses of the Human Resources/Payroll Function Mapping Analysis that was completed in fiscal year 2007 by the BEACON staff and the Office of State Budget and Management. This initial analysis was conducted to provide not only a pre-implementation assessment of State agency Human Resources/Payroll staffing prior to BEACON HR/Payroll implementation but also to provide a basis on which new HR/Payroll roles required by BEACON implementation can be mapped. These follow-up analyses of State agency HR/Payroll staffing shall be completed by January 1 of each year to assure the staffing levels remain appropriate. The annual staffing analyses shall be conducted throughout the implementation of the BEACON HR/Payroll System and shall continue for a reasonable time after the implementation to assure that the staffing levels are adjusted based on the increased efficiency provided by the implementation.

"(b) The Office of State Budget and Management, in consultation with the Office of State Controller, shall conduct a staffing analysis of the business functions of State government to include, but not be limited to, agency fiscal offices, budget offices, and procurement offices to be completed by April 30, 2008. This initial analysis will serve as a pre-implementation assessment of State agency business functions staffing prior to the proposed implementation of the remaining components of the BEACON ERP System. Follow-up analyses shall be conducted annually and completed by January 1 of each year to assure the staffing levels remain appropriate. The annual staffing analyses shall be conducted throughout the implementation of future BEACON components and shall continue for a reasonable time after the implementation to assure that the staffing levels are adjusted based on the increased efficiency provided by the implementation.

"(c) By April 30, 2008, the Office of State Budget and Management, in consultation with the Office of State Controller, and then by January 1, 2009, and annually thereafter, the Office of State Budget and Management, in consultation with the Office of State Controller and the Office of State Personnel, shall report to the Chairs of the House of Representatives Appropriations Committee, to the Chairs of the Senate Committee on Appropriations•ase Budget, to the Joint Legislative Oversight Committee on Information Technology, and to the Fiscal Research Division on the results of the annual staffing analyses of State government business functions conducted pursuant to subsection (a) of this section and on the implementation of the BEACON HR/Payroll System.

"(d) Prior to any staffing changes that result from the staffing analyses conducted pursuant to subsection (b) of this section, the Office of State Budget and Management, in consultation with the Office of State Controller and the Office of State Personnel, shall report to the Chairs of the House of Representatives Appropriations Committee, to the Chairs of the Senate Committee on Appropriations•ase Budget, to the Joint Legislative Oversight Committee on Information Technology, and to the Fiscal Research Division on the annual staffing analyses of State government business functions conducted pursuant to subsection (b) of this section and on the proposed implementation of the remaining components of the BEACON ERP System.

"(e) Notwithstanding any other provision of law, the Office of State Budget and Management may evaluate the impact of the BEACON Program on affected agencies and develop a plan for addressing resources affected by the Program. The State Redeployment Plan shall be implemented to the extent possible. When compliance with federal or State law requires, a new position may be created if a current or contracted position is eliminated. The Office of State Budget and Management, in consultation with the Office of the State Controller, shall report to the Joint Legislative Commission on Governmental Operations within 30 days for each employee change made under the State Redeployment Plan and shall include a five-year fiscal impact incurred by the State when converting any contracted position to a permanent position. This subsection expires June 30, 2008."

Session Laws 2014-100, s. 24.3, effective July 1, 2014, repealed Session Laws 2007-323, s. 6.7(a)-(e).

Session Laws 2007-323, s. 1.2, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2007'."

Session Laws 2007-323, s. 32.5, is a severability clause.

Session Laws 2008-107, s. 22.5 provides: "The Office of State Budget and Management shall conduct a staffing survey of all State agencies and universities that use the BEACON system and determine the number of FTE staff assigned to BEACON training. The Office of State Budget and Management shall submit a final report outlining its findings and staffing recommendations to the House Appropriations Subcommittee on General Government, the Senate Appropriations Subcommittee on General Government and Information Technology, and the Fiscal Research Division by March 1, 2009."

Ensure Adequate Funding in Medicaid Budget. - In order to provide for adequate funding in the Medicaid budget for the 2011-2012 fiscal year, Session Laws 2012-2, s. 1(a)-(c), Session Laws 2012-57, s. 1(a)-(c), and Session Laws 2012-142, ss. 6.14(a), (b), 6.15, and 10.9G, allow for certain extraordinary budget adjustments. These Session Laws are noted in full under G.S. 143C-4-3.

"(1) The statutory authority, funding sources, and functions of each department, agency, institution, or program.

"(2) The organizational structure and staffing patterns in place to perform these functions and whether they are appropriate based on comparative data and other reasonable staffing criteria.

"(4) State and local responsibilities for providing government services and funding for those services, and whether these responsibilities should be reallocated.

(5) Personnel systems operations and management.

"(6) State purchasing operations and management.

"(7) Information technology and telecommunications systems policy, organization, and management.

Editor's Note. - Session Laws 2008-107, s. 1.2, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2008'."

Session Laws 2008-107, s. 30.3, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2008-2009 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2008-2009 fiscal year."

Session Laws 2008-107, s. 30.5, is a severability clause.

Session Laws 2011-15, ss. 1 and 2, provide: "Section 1.(a) Except as provided in subsection (b) of this section and notwithstanding the State Budget Act or any other provision of law, the Director of the Budget shall increase General Fund availability for the 2011-2012 fiscal year by the sum of five hundred thirty-seven million seven hundred forty thousand seven hundred ninety-nine dollars ($537,740,799) by:

"(1) Taking all actions necessary to reduce General Fund expenditures for the remainder of the 2010-2011 fiscal year. This grant of authority includes all powers to balance the budget granted the Governor under Article III, Section 5 of the North Carolina Constitution.

"(2) Identifying and not expending funds in non-General Fund accounts for transfer to the General Fund on June 30, 2011.

"(b) This section does not apply to funds available to the Judicial Branch or the Legislative Branch.

"Section 2. This act is effective when it becomes law [March 25, 2011] and applies to the 2010-2011 fiscal year only."

Session Laws 2011-145, s. 6.5(a)-(d), had provided for interim appropriations committees, meetings, and a requirement for consultation by the Governor prior to certain budgetary actions, during the period between legislative sessions. Session Laws 2012-142, s. 6.1, effective July 1, 2012, repealed s. 6.5 of Session Laws 2011-145.

Session Laws 2011-145, s. 1.1, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2011.'"

Session Laws 2011-145, s. 32.5 is a severability clause.

Session Laws 2012-2, s. 2, provides: "Notwithstanding any other provision of law, neither the Director of the Budget nor any other State official, officer, or agency shall draw down or transfer unearned or borrowed receipts or other funds if doing so would create or increase a financial obligation in the 2012-2013 fiscal year."

Session Laws 2012-142, s. 1.2, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2012.'"

Session Laws 2012-142, s. 27.7, is a severability clause.

Session Laws 2013-360, s. 1.1, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2013.'"

Session Laws 2013-360, s. 38.5, is a severability clause.

Session Laws 2014-100, s. 1.1, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2014.'"

Session Laws 2014-100, s. 38.7, is a severability clause.

§ 143C-2-2. Collection of State Budget Statistics.

The Director shall coordinate the efforts of governmental agencies to collect, disseminate, and analyze economic, demographic, and social statistics pertinent to State budgeting. The Director shall do all of the following:

Prepare and release the official demographic and economic estimates and projections for the State.
Conduct special economic and demographic analyses and studies to support statewide budgeting.
Develop and coordinate cooperative arrangements with federal, State, and local governmental agencies to facilitate the exchange of data to support State budgeting.
Report major trends that influence revenues and expenditures in the State budget in the current fiscal year and that may influence revenues and expenditures over the next five fiscal years.

History

(2006-203, s. 3.)

§ 143C-2-3. Fiscal analysis required for any State agency bill that affects the budget.

A State agency proposing a bill that affects the State budget shall prepare a fiscal analysis for the bill and submit the analysis to the Fiscal Research Division upon introduction of the bill. The fiscal analysis shall estimate the impact of the legislation on the State budget for the first five fiscal years the legislation would be in effect.

History

(2006-203, s. 3.)

§ 143C-2-4. Director of the Budget may direct State Treasurer to borrow money for certain payments.

The Director of the Budget, by and with the consent of the Governor and Council of State, may authorize and direct the State Treasurer to borrow in the name of the State, in anticipation of the collection of taxes, such sum as may be necessary to make the payments on the appropriations as even as possible and to preserve the best interest of the State in the conduct of the various State agencies during each fiscal year.

History

(2006-203, s. 3.)

§ 143C-2-5. Grants and contracts database.

The Director of the Budget shall require the Office of State Budget and Management, with the support of the Department of Information Technology, to build and maintain a database and Web site for providing a single, searchable Web site on State spending for grants and contracts to be known as NC OpenBook.
The head of each State institution, department, bureau, agency, or commission, or a designee, shall conduct a quarterly review of all State contracts and grants administered by that agency.
All State institutions, departments, bureaus, agencies, or commissions that maintain a Web site shall be required to include an access link to the NC OpenBook Web site on the home page of the agency Web site. Each agency shall also prominently display a search engine on the agency Web site home page to allow for ease of searching for information, including contracts and grants, on the agency's Web site.

History

(2010-169, s. 9; 2015-114, s. 1; 2015-241, s. 7A.4(aa).)

Effect of Amendments. - Session Laws 2015-114, s. 1, effective June 24, 2015, rewrote subsection (b); and in the first sentence of (c), deleted "subject to the authority of the Director of the Budget" following "commissions."

Session Laws 2015-241, s. 7A.4(aa), effective July 1, 2015, substituted "Department of Information Technology" for "Office of Information Technology Services" in subsection (a).

§ 143C-2-6. Contents of database and Web site.

The Office of State Controller, the Department of Administration, and the Department of Information Technology shall provide the Office of State Budget and Management with the statewide information on State contracts necessary for the development and maintenance of the database and Web site required by this Article, with the information updated at least monthly.
The Office of State Budget and Management shall work with the Office of the State Auditor and the Grant Information Center to incorporate data on grants into the database and Web site required by this Article. All State institutions, departments, bureaus, agencies, or commissions subject to the authority of the Governor shall make necessary changes to existing reporting processes for contracts and grants to ensure the goals of this Article are met.
All State contracts and grants awarded in amounts in excess of ten thousand dollars ($10,000) shall be included in the database and Web site required by this Article. The following information shall be provided for each contract or grant:
1. The name of the entity receiving the award.
2. The amount of the award or estimated award.
3. Information on the award, including type of transaction, funding agency, and duration of the contract or grant.
4. The location of the entity receiving the award.
5. Background information on the entity receiving the award.
6. Time lines for anticipated completion of the work required.
7. Expected outcomes of the contract or grant and specific deliverables required.
8. Contact information for the responsible State government officer or administrator of the contract or grant.

History

(2010-169, s. 9; 2015-241, s. 7A.4(bb).)

Effect of Amendments. - Session Laws 2015-241, s. 7A.4(bb), effective July 1, 2015, substituted "Department of Information Technology" for "Office of Information Technology Services" in subsection (a).

ARTICLE 3. Development of the Governor's Recommended Budget.

Sec.

§ 143C-3-1. Budget estimate for the legislative branch.

The Legislative Services Officer shall give the Director an estimate of the financial needs of the legislative branch for the upcoming fiscal period in accordance with the schedule prescribed by the Director. The estimates for the legislative branch shall be approved and certified by the President Pro Tempore of the Senate and the Speaker of the House of Representatives. The estimates shall be itemized in accordance with the accounting classifications adopted by the Controller. The Director shall include the estimates in the budget the Director submits to the General Assembly. The Director may recommend changes to these estimates in the budget submitted to the General Assembly.

History

(2006-66, s. 6.19(g); 2006-203, s. 3; 2006-221, s. 3A; 2006-259, s. 40(g).)

Editor's Note. - Session Laws 2006-259, s. 40(g) was repealed, pursuant to the terms of Session Laws 2006-259, s. 40(i), upon Session Laws 2006-221 becoming law.

Effect of Amendments. - Session Laws 2006-66, s. 6.19(g), as added by Session Laws 2006-221, s. 3A, effective July 1, 2007, substituted "Legislative Services Officer" for "Legislative Administrative Officer" in the first sentence.

§ 143C-3-2. Budget estimate for the judicial branch.

The Administrative Officer of the Courts shall give the Director an estimate of the financial needs of the judicial branch for the upcoming fiscal period in accordance with the schedule prescribed by the Director. The estimates for the judiciary shall be approved and certified by the Chief Justice. The estimates shall be itemized in accordance with the accounting classifications adopted by the Controller. The Director shall include these estimates for the judicial branch in the budget the Director submits to the General Assembly. The Director may recommend changes to these estimates in the budget the Director submits to the General Assembly.

History

(2006-203, s. 3; 2007-393, s. 3.)

Effect of Amendments. - Session Laws 2007-393, s. 3, effective October 1, 2007, inserted "for the judicial branch" in the fourth sentence, and substituted "the Director submits" for "submitted" in the last sentence.

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

General Provisions. - A State agency that is not in the legislative or judicial branch of government shall submit its budget requests for the upcoming fiscal period to the Director in accordance with the schedule prescribed by the Director. The Director shall give each State agency instructions to be used in estimating the funds required to provide necessary State government programs and capital improvements. The estimates shall be itemized in accordance with the accounting classifications adopted by the Controller and shall be approved and certified by the respective head or responsible officer of the agency submitting them.
University of North Carolina System Request. - Notwithstanding the requirement in G.S. 116-11 that the Board of Governors prepare a unified budget request for all of the constituent institutions of The University of North Carolina, budget requests of the University shall be subject to all of the following:
1. Repairs and renovations requests, capital fund requests, and information technology requests shall comply with subsections (c), (d), and (e) of this section.
2. The University of North Carolina shall not make a capital funds request proposing to construct a new facility, expand the building area (square feet) of an existing facility, or rehabilitate an existing facility to accommodate new or expanded uses unless the University has completed advanced planning through schematic design of the project with funds other than General Fund appropriations. For purposes of this subdivision, "funds other than General Fund appropriations" includes funds carried forward from one fiscal year to another pursuant to G.S. 116-30.3 and G.S. 116-30.3B.
Repairs and Renovations Funds Request. - In addition to any other information requested by the Director, any State agency proposing to repair or renovate an existing facility shall accompany that request with all of the following:
1. A description of current deficiencies and proposed corrections with a review and evaluation of that proposal prepared by the Department of Administration.
2. An estimate of project costs approved by the Department of Administration.
3. A certification of project feasibility as described in G.S. 143-341, except that in the case of a project of The University of North Carolina for which advance planning has not been completed, the request may be submitted without this certification.
4. An explanation of the method by which the repair or renovation is to be financed.
Capital Funds Request. - In addition to any other information requested by the Director, any State agency proposing to (i) acquire real property, (ii) construct a new facility, (iii) expand the building area (sq. ft.) of an existing facility, or (iv) rehabilitate an existing facility to accommodate new or expanded uses shall accompany that request with all of the following:
1. An estimate of its space needs and other physical requirements, together with a review and evaluation of that estimate prepared by the Department of Administration, except that in the case of a project of The University of North Carolina for which advance planning has not been completed, the estimate of space needs may be a preliminary estimate.
2. An estimate of project costs and cash flow requirements approved by the Department of Administration.
3. A certification of project feasibility as described in G.S. 143-341, except that in the case of a project of The University of North Carolina for which advance planning has not been completed, the request may be submitted without this certification.
4. An explanation of the method by which the acquisition, construction, or rehabilitation is to be financed.
5. An estimate of maintenance and operating costs, including personnel, for the project, covering the first five years of operation.
6. An estimate of revenues, if any, to be derived from the project, covering the first five years of operation.
Information Technology Request. - In addition to any other information requested by the State Chief Information Officer (State CIO), any State agency requesting significant State resources, as defined by the State CIO, for the purpose of acquiring, operating, or maintaining information technology shall accompany that request with all of the following:
1. A statement of its needs for information technology and related resources, including expected improvements to programmatic or business operations, together with a review and evaluation of that statement prepared by the State Chief Information Officer.
2. A statement setting forth the requirements for State resources, together with an evaluation of those requirements by the State Chief Information Officer that takes into consideration the State's current technology, the opportunities for technology sharing, the requirements of Article 15 of Chapter 143B of the General Statutes, and any other factors relevant to the analysis, and in cases of an acquisition, an explanation of the method by which the acquisition is to be financed.
3. A statement by the State Chief Information Officer that sets forth viable alternatives, if any, for meeting the agency needs in an economical and efficient manner. A statement setting forth the requirements for State resources, together with an evaluation of those requirements, including expected improvements to programmatic or business operations by the Secretary that takes into consideration the State's current technology, the opportunities for technology sharing, the requirements of the General Statutes, and any other factors relevant to the analysis.
4. In the case of an acquisition, an explanation of the method by which the acquisition is to be financed.

Nothing in this subsection shall be construed to prohibit expenditures for planning for a project that has been authorized by an act of the General Assembly and funded with an allocation from the State Capital and Infrastructure Fund.

This subsection does not apply to requests for State resources for railroad, highway, or bridge construction or renovation.

This subsection shall not apply to requests submitted by the General Assembly or the Administrative Office of the Courts.

History

(2006-203, s. 3; 2007-117, s. 5(a); 2011-145, s. 30.12(a); 2013-360, s. 6.12(j); 2015-241, ss. 7A.4(cc), 31.9; 2015-268, s. 9.3; 2020-81, s. 4(e).)

Editor's Note. - The statutory reference in subdivision (e)(2) was changed with approval of the Reviser of Statutes to conform to the recodification by Session Laws 2015-241.

Session Laws 2015-241, s. 1.1, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2015.'"

Session Laws 2015-241, s. 33.6, is a severability clause.

Session Laws 2017-57, s. 36.2(b), provides: "Notwithstanding G.S. 143C-3-3(b), the University of North Carolina at Chapel Hill may use the funds appropriated to it in subsection (a) of this section to develop plans for the construction of a new business school building."

Session Laws 2017-57, s. 1.1, provides: "This act shall be known as the 'Current Operations Appropriations Act of 2017.'"

Session Laws 2017-57, s. 39.6, is a severability clause.

Session Laws 2018-5, s. 36.2(b), provides: "Notwithstanding G.S. 143C-3-3(b), the University of North Carolina at Wilmington may use the funds appropriated to it in subsection (a) of this section for planning for a library." Subsection (a) of the act provides for an appropriation from the Project Reserve Account, established pursuant to G.S. 143C-8-10 for the 2017-2018 fiscal year.

Session Laws 2018-5, s. 1.1, provides: "This act shall be known as the 'Current Operations Appropriations Act of 2018.'"

Session Laws 2018-5, s. 39.7, is a severability clause.

Effect of Amendments. - Session Laws 2007-117, s. 5(a), effective July 1, 2007, deleted "and cash flow requirements" following "project costs" in subdivision (c)(2).

Session Laws 2011-145, s. 30.12(a), effective July 1, 2011, added the exceptions at the end of subdivisions (c)(3), (d)(1), and (d)(3).

Session Laws 2013-360, s. 6.12(j), effective July 1, 2013, in subsection (b), substituted "the requirement in" for "subsections (c), (d), and (c) of this section, pursuant to," added "that" preceding "the Board" and "requests shall comply with subsections (c), (d), and (e) of this section," and deleted "shall" following "Board of Governors" and "including" following "North Carolina"; in subsection (e), added "or" following "General Assembly," and deleted "or The University of North Carolina" following "Courts" at the end.

Session Laws 2015-241, s. 7A.4(cc), effective July 1, 2015, in subsection (e), rewrote the introductory language and subdivisions (e)(2) and (e)(3).

Session Laws 2015-241, s. 31.9, effective July 1, 2015, rewrote subsection (b).

Session Laws 2015-268, s. 9.3, effective October 1, 2015, added the last sentence of subdivision (b)(2).

Session Laws 2020-81, s. 4(e), effective July 1, 2020, added the concluding paragraph of subsection (b).

§ 143C-3-4. Budget requests from non-State entities.

Unless otherwise provided by law, budget requests from non-State entities shall be submitted to the Director or to a State agency designated by the Director. A State agency designated to receive a budget request from a non-State entity shall evaluate the request and forward its evaluation to the Director in accordance with procedures established by the Director. This section does not apply to the General Assembly or to actions of the General Assembly to appropriate funds to non-State entities.

History

(2006-203, s. 3.)

Editor's Note. - Session Laws 2013-360, s. 12A.2(c)-(g), provides: "(c) No later than December 1, 2013, each nonprofit organization receiving funding pursuant to subsection (b) of this section shall submit to the Division of Central Management and Support a written report of all activities funded by State appropriations. The report shall include the following information about the fiscal year preceding the year in which the report is due:

"(1) The entity's mission, purpose, and governance structure.

"(2) A description of the types of programs, services, and activities funded by State appropriations.

"(3) Statistical and demographical information on the number of persons served by these programs, services, and activities, including the counties in which services are provided.

"(4) Outcome measures that demonstrate the impact and effectiveness of the programs, services, and activities.

"(5) A detailed program budget and list of expenditures, including all positions funded and funding sources.

"(6) The source and amount of any matching funds received by the entity.

"(d) It is the intent of the General Assembly that, beginning fiscal year 2014-2015, the Department implement a competitive grants process for nonprofit funding. To that end, the Department shall develop a plan that establishes a competitive grants process to be administered by the Division of Central Management and Support. The Department shall develop a plan that, at a minimum, includes each of the following:

"(1) A request for application (RFA) process to allow nonprofits to apply for and receive State funds on a competitive basis.

"(2) A requirement that nonprofits match a minimum of ten percent (10%) of the total amount of the grant award.

"(3) A requirement that the Secretary prioritize grant awards to those nonprofits that are able to leverage non-State funds in addition to the grant award.

"(4) A process that awards grants to nonprofits dedicated to providing services on a statewide basis and that support any of the following State health and wellness initiatives:

"a. A program targeting advocacy, support, education, or residential services for persons diagnosed with autism.

"b. A comprehensive program of education, advocacy, and support related to brain injury and those affected by brain injury.

"c. A system of residential supports for those afflicted with substance abuse addiction.

"d. A program of advocacy and supports for individuals with intellectual and developmental disabilities or severe and persistent mental illness, substance abusers, or the elderly.

"e. Supports and services to children and adults with developmental disabilities or mental health diagnoses.

"f. A food distribution system for needy individuals.

"g. The provision and coordination of services for the homeless.

"h. The provision of services for individuals aging out of foster care.

"i. Programs promoting wellness, physical activity, and health education programming for North Carolinians.

"j. A program focused on enhancing vision screening through the State's public school system.

"k. Provision for the delivery of after-school services for at-risk youth.

" l . The provision of direct services for amyotrophic lateral sclerosis (ALS) and those diagnosed with the disease.

"m. The provision of assistive information technology services for blind and disabled persons.

"(5) Ensures that funds received by the Department to implement the plan supplement and do not supplant existing funds for health and wellness programs and initiatives.

"(e) No later than February 1, 2014, the Secretary of Health and Human Services shall develop a plan for the implementation of the competitive grants process for nonprofit funding and shall report to the Joint Legislative Oversight Committee on Health and Human Services on the plan.

"(f) No later than March 1, 2014, the Secretary of Health and Human Services shall implement the plan for the competitive grants process.

"(g) No later than July 1, 2014, the Secretary shall announce the recipients of the competitive grant awards and allocate funds to the grant recipients for the 2014-2015 fiscal year pursuant to the amounts designated under subsection (a) of this section. After awards have been granted, the Secretary shall submit a report to the Joint Legislative Oversight Committee on Health and Human Services on the grant awards that includes at least all of the following:

"(1) The identity and a brief description of each grantee and each program or initiative offered by the grantee.

"(2) The amount of funding awarded to each grantee.

"(3) The number of persons served by each grantee, broken down by program or initiative."

Session Laws 2013-360, s. 1.1, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2013.'"

Session Laws 2013-360, s. 38.5, is a severability clause.

Session Laws 2013-360, s. 12A.2(a), as amended by Session Laws 2014-100, s. 12A.1.(a), provides: "Of the funds appropriated in this act to the Department of Health and Human Services, Division of Central Management and Support, the sum of nine million five hundred twenty-nine thousand one hundred thirty-four dollars ($9,529,134) in recurring funds for the 2013-2014 fiscal year and the sum of nine million one hundred three thousand nine hundred eleven dollars ($9,103,911) in recurring funds for the 2014-2015 fiscal year, the sum of three hundred seventeen thousand four hundred dollars ($317,400) in nonrecurring funds for each year of the 2013-2015 fiscal biennium, and the sum of three million eight hundred fifty-two thousand five hundred dollars ($3,852,500) appropriated in Section 12J.1 of this act in Social Services Block Grant funds for each year of the 2013-2015 fiscal biennium shall be used to allocate funds for nonprofit organizations."

Session Laws 2013-360, s. 12A.2.(c)-(h), as amended by Session Laws, 2014-100, s. 12A.1, provides: "(c) No later than December 1, 2013, each nonprofit organization receiving funding pursuant to subsection (b) of this section shall submit to the Division of Central Management and Support a written report of all activities funded by State appropriations. The report shall include the following information about the fiscal year preceding the year in which the report is due: