BUDGET TABLE OF CONTENTS FOR S99-PCCS55094-MMxr-2

BUDGET TABLE OF CONTENTS FOR S99-PCCS55094-MMxr-2 PART I. INTRODUCTION AND TITLE OF ACT TITLE OF ACT SECTION 1.1....1 INTRODUCTION SECTION 1.2....1 PART II. CURRENT OPERATIONS AND EXPANSION GENERAL FUND CURRENT OPERATIONS AND EXPANSION/GENERAL FUND SECTION 2.1....1 GENERAL FUND AVAILABILITY STATEMENT SECTION 2.2....4 PART III. CURRENT OPERATIONS/HIGHWAY FUND CURRENT OPERATIONS AND EXPANSION/HIGHWAY FUND SECTION 3.1....6 HIGHWAY FUND AVAILABILITY STATEMENT SECTION 3.2....7 PART IV. HIGHWAY TRUST FUND APPROPRIATIONS HIGHWAY TRUST FUND APPROPRIATIONS SECTION 4.1....7 HIGHWAY TRUST FUND AVAILABILITY STATEMENT SECTION 4.2....7 PART V. OTHER APPROPRIATIONS APPROPRIATION OF RECEIPTS INCREASED DUE TO SALARY AND BENEFITS INCREASES SECTION 5.1....8 LOTTERY COMMISSION BENEFIT LIABILITIES SECTION 5.2....8 NEEDS-BASED SCHOOL CAPITAL AND LOTTERY CHANGES SECTION 5.3....8 CIVIL PENALTY AND FORFEITURE FUND SECTION 5.4....11 INDIAN GAMING EDUCATION REVENUE FUND SECTION 5.5....11 DISASTER RECOVERY 2018 SECTION 5.6....11 PART VI. GENERAL PROVISIONS ESTABLISHING OR INCREASING FEES SECTION 6.1....16 NON-STATE ENTITIES/REPORT AND REVERSION REQUIREMENTS SECTION 6.2....16 BUDGET ACCOUNTABILITY AND TRANSPARENCY REFORM INITIATIVE SECTION 6.3....17 RESTORE DEBT SERVICE FUNDS FOR WILMINGTON HARBOR SECTION 6.4....18 Page 1

PART VII. PUBLIC SCHOOLS ADJUSTMENT FOR FUNDS FOR CHILDREN WITH DISABILITIES SECTION 7.1....18 ADJUSTMENT FOR FUNDS FOR ACADEMICALLY GIFTED CHILDREN SECTION 7.2....18 ADJUST SUPPLEMENTAL FUNDING IN LOW-WEALTH COUNTIES SECTION 7.3....19 ADJUST SMALL COUNTY SCHOOL SYSTEM SUPPLEMENTAL FUNDING SECTION 7.4....19 REVISE DPI BUDGET REDUCTIONS/FUNDS FOR REDUCTION COSTS SECTION 7.5....20 ADJUST TRANSFER OF FUNDS FOR BUSINESS SYSTEM MODERNIZATION PLAN SECTION 7.6....21 REVISE DIGITAL LEARNING PLAN FUNDS SECTION 7.7....21 CTE GRADE EXPANSION PROGRAM FUNDS SECTION 7.8....21 EXTEND ADVANCED TEACHING ROLES PILOT FOR FIVE YEARS SECTION 7.9....22 EXTEND FINANCE REFORM STUDY COMMITTEE TO 2019 SECTION 7.10....22 CLARIFY DRIVER EDUCATION PROGRAM FUNDS SECTION 7.11....22 ADD EDGECOMBE COUNTY SCHOOLS/ENC STEM SECTION 7.12....23 EXTEND PILOT/VIRTUAL CHARTER SCHOOLS SECTION 7.13....24 STATE BOARD OF EDUCATION ROLL CALL VOTES SECTION 7.14....25 CERTAIN CIHS OPERATING WITHOUT ADDITIONAL FUNDS SECTION 7.15....25 REGIONAL SCHOOL WITHDRAWAL MORATORIUM SECTION 7.16....25 FUNDS FOR WORKFORCE DEVELOPMENT/HOSPITALITY JOBS SECTION 7.17....25 PERMIT MILITARY CHILDREN TO ENROLL PRIOR TO RESIDENCY IN NORTH CAROLINA SECTION 7.18....26 CHARTER SCHOOL TRANSPORTATION GRANT PILOT PROGRAM REPORT SECTION 7.19....27 MODIFY PROHIBITION ON DPI SERVING AS ISD OPERATOR SECTION 7.20....28 ADD SCHOOL SYSTEMS TO THE TEACHER ASSISTANT TUITION REIMBURSEMENT PROGRAM SECTION 7.21....29 FUNDS FOR CLASSROOM SUPPLIES SECTION 7.22....30 EXTEND DEADLINE FOR IMPLEMENTATION OF READ TO ACHIEVE ASSESSMENT INSTRUMENTS SECTION 7.23....30 CLARIFY REPORTING REQUIREMENTS FOR READ TO ACHIEVE DATA SECTION 7.24....31 Page 2

SCHOOLS THAT LEAD PILOT PROGRAM SECTION 7.25....33 STATEWIDE ANONYMOUS SAFETY TIP LINE APPLICATION SECTION 7.26....33 SCHOOL SAFETY GRANTS PROGRAM SECTION 7.27....35 PART VIII. COMPENSATION OF PUBLIC SCHOOL EMPLOYEES TEACHER SALARY SCHEDULE SECTION 8.1....38 PRINCIPAL SALARY SCHEDULE SECTION 8.2....39 PRINCIPAL BONUSES SECTION 8.3....41 ASSISTANT PRINCIPAL SALARIES SECTION 8.4....42 CENTRAL OFFICE SALARIES SECTION 8.5....42 NONCERTIFIED PERSONNEL SALARIES SECTION 8.6....43 REALIGN DPI BUDGET IN CERTAIN SCHOOL COMPENSATION AREAS SECTION 8.7....44 CLARIFY APPLICATION OF HIGHLY QUALIFIED GRADUATE SUPPLEMENT SECTION 8.8....44 BONUSES FOR CERTAIN VETERAN TEACHERS SECTION 8.9....44 REVISE CERTAIN TEACHER BONUS PROGRAMS SECTION 8.10....45 REVISE FOURTH AND FIFTH GRADE READING TEACHER BONUS PROGRAM SECTION 8.11....45 REVISE FOURTH TO EIGHTH GRADE MATH TEACHER BONUS PROGRAM SECTION 8.12....47 PART IX. COMMUNITY COLLEGES EXTEND REORGANIZATION AUTHORITY SECTION 9.1....48 CONTINUE TRANSFER OF WIOA FUNDS FOR APPRENTICESHIPNC SECTION 9.2....49 REMOVE OUTDATED STATUTORY REFERENCE SECTION 9.3....49 EXTEND CAREER- AND COLLEGE-READY GRADUATE PROGRAM IMPLEMENTATION DATE SECTION 9.4....50 REDUCE FUNDS FOR BOARD OF POSTSECONDARY EDUCATION CREDENTIALS SECTION 9.5....52 ELIMINATE NCCCS INSTRUCTIONAL TRUST FUND SECTION 9.6....52 COMMUNITY COLLEGE RESIDENCY DETERMINATION FORMULA SECTION 9.7....52 INCENTIVES FOR INSTITUTIONAL PERFORMANCE ACCOUNTABILITY SECTION 9.8....53 Page 3

MITIGATION OF LOSS OF FEDERAL FUNDS TO ADULT EDUCATION PROVIDERS FOR ONE YEAR SECTION 9.9....53 COMMUNITY COLLEGE STUDY ON EARNING FTE FOR INSTRUCTION IN LOCAL JAILS SECTION 9.10....53 PART X. UNIVERSITIES UNC LABORATORY SCHOOL CHANGES SECTION 10.1....54 FERRYMON/NO OVERHEAD SECTION 10.2....55 MODIFY APPOINTMENT PROCESS FOR BOG COMMITTEE ON FREE EXPRESSION SECTION 10.3....55 FOOD PROCESSING INNOVATION CENTER/CARRYFORWARD OF FUNDS SECTION 10.4....55 NC PROMISE "BUY DOWN"/REPORT SECTION 10.5....55 SUBPART X-A. UNIVERSITY/STATE EDUCATION ASSISTANCE AUTHORITY MODIFY AND ALIGN THE K-12 SCHOLARSHIP PROGRAMS SECTION 10A.1....56 CHANGES TO THE NC TEACHING FELLOWS PROGRAM SECTION 10A.2....61 CHANGES TO THE NC PRINCIPAL FELLOWS PROGRAM SECTION 10A.3....63 PRINCIPAL PREP PROGRAM CHANGES SECTION 10A.4....65 ONE-YEAR TUITION GRANTS FOR CERTAIN GRADUATES OF THE NORTH CAROLINA SCHOOL OF SCIENCE AND MATHEMATICS FOR THE 2019-2020 ACADEMIC YEAR SECTION 10A.5....70 ACCESS TO PRIVATE INSTITUTION NEED-BASED SCHOLARSHIPS FOR VETERANS SECTION 10A.6....71 PART XI. DEPARTMENT OF HEALTH AND HUMAN SERVICES SUBPART XI-A. CENTRAL MANAGEMENT AND SUPPORT HEALTH INFORMATION TECHNOLOGY SECTION 11A.1....72 RESTRICTION ON USE OF SALARY RESERVE BY DIVISION OF CENTRAL MANAGEMENT AND SUPPORT SECTION 11A.2....72 REDUCTION OF FUNDS FOR PURCHASED SERVICES SECTION 11A.3....72 COMPETITIVE GRANT FUNDS/CROSS TRAIL OUTFITTERS SECTION 11A.4....72 CHILD WELFARE ASSIST PROGRAM SECTION 11A.5....73 SUBPART XI-B. DIVISION OF CHILD DEVELOPMENT AND EARLY EDUCATION ADJUSTMENTS TO NC PRE-K FUNDING SECTION 11B.1....73 SEPARATE STAR-RATED LICENSE/BIRTH THROUGH TWO YEARS OF AGE/REPORT SECTION 11B.2....73 Page 4

ADDITIONAL CHILD CARE SUBSIDY MARKET RATE INCREASES/CERTAIN AGE GROUPS AND COUNTIES SECTION 11B.3....73 REVISE SMART START INITIATIVES/REPORT DATE FOR MATCH REQUIREMENTS/ALLOW FUND-RAISING WITH STATE FUNDS SECTION 11B.4....74 CLARIFY LANGUAGE/DOLLY PARTON'S IMAGINATION LIBRARY EARLY LITERACY INITIATIVE SECTION 11B.5....75 SUBPART XI-C. DIVISION OF SOCIAL SERVICES FINAL REPORT/CHILD WELFARE SYSTEM CHANGES SECTION 11C.1....76 EXPAND ECKERD KIDS AND CARING FOR CHILDREN'S ANGEL WATCH PROGRAM TO INCLUDE SIBLINGS UNDER 18 YEARS OF AGE SECTION 11C.2....77 CHILD SUPPORT FEE CHANGE AS REQUIRED UNDER FEDERAL LAW SECTION 11C.3....77 CRIMINAL RECORD CHECKS OF APPLICANTS AND CURRENT EMPLOYEES WHO ACCESS FEDERAL TAX INFORMATION UNDER FEDERAL LAW SECTION 11C.4....77 SUBPART XI-D. DIVISION OF AGING AND ADULT SERVICES PLAN FOR ALLOWING THE EASTERN BAND OF CHEROKEE INDIANS TO ASSUME RESPONSIBILITY FOR ADMINISTERING THE HOME AND COMMUNITY CARE BLOCK GRANT SECTION 11D.1....78 SUBPART XI-E. DIVISION OF PUBLIC HEALTH FEE INCREASE TO OFFSET COST OF NEWBORN SCREENING PROGRAM SECTION 11E.1....79 STUDY CONCERNING VITAL RECORDS FEES SECTION 11E.2....81 FUNDS FOR PREGNANCY CARE INITIATIVES SECTION 11E.3....81 HUMAN COALITION PILOT PROGRAM SECTION 11E.4....82 EVERY WEEK COUNTS DEMONSTRATION PROJECT SECTION 11E.5....83 SUBPART XI-F. DIVISION OF MH/DD/SAS AND STATE OPERATED HEALTHCARE FACILITIES SINGLE-STREAM FUNDING FOR MH/DD/SAS COMMUNITY SERVICES SECTION 11F.1....85 USE OF DOROTHEA DIX HOSPITAL PROPERTY FUNDS TO PURCHASE ADDITIONAL BEHAVIORAL HEALTH BEDS SECTION 11F.2....86 USE OF DOROTHEA DIX HOSPITAL PROPERTY FUNDS TO IMPROVE SCHOOL SAFETY SECTION 11F.3....87 FUNDS FOR TROSA TO EXPAND SUBSTANCE USE DISORDER TREATMENT & RECOVERY SERVICES SECTION 11F.4....87 Page 5

FUNDS FOR VAYA HEALTH TO EXPAND FACILITY-BASED CRISIS SERVICES SECTION 11F.5....87 COST ANALYSIS FOR EXPANSION OF THE WRIGHT SCHOOL SECTION 11F.6....87 FUNDS FOR EVIDENCE-BASED SUPPORTED EMPLOYMENT SERVICES FOR INDIVIDUALS WITH SERIOUS MENTAL ILLNESS, INTELLECTUAL DISABILITIES, OR DEVELOPMENTAL DISABILITIES SECTION 11F.7....88 YOUTH TOBACCO ENFORCEMENT FUNDING SECTION 11F.8....88 FUNDS FOR NEW BROUGHTON HOSPITAL SECTION 11F.9....88 ESTABLISH RANGES FOR LME/MCO SOLVENCY SECTION 11F.10....89 SUBPART XI-G. DIVISION OF HEALTH SERVICE REGULATION APPROVAL FOR NURSING HOME ADMINISTRATORS TO SERVE AS ADULT CARE HOME ADMINISTRATORS SECTION 11G.1....93 SUBPART XI-H. DIVISION OF MEDICAL ASSISTANCE (MEDICAID) ACCOUNTING FOR MEDICAID RECEIVABLES AS NONTAX REVENUE SECTION 11H.1....94 LME/MCO INTERGOVERNMENTAL TRANSFERS SECTION 11H.2....94 MEDICAID COVERAGE FOR NURSE FAMILY PARTNERSHIP MODEL PILOT SECTION 11H.3....94 ESTABLISH MEDICAID COVERAGE FOR AMBULANCE TRANSPORTS TO ALTERNATIVE APPROPRIATE CARE LOCATIONS SECTION 11H.4....95 AMEND AUDIT FREQUENCY/COUNTY ACCURACY OF MEDICAID ELIGIBILITY DETERMINATIONS SECTION 11H.5....96 CONFORM TO FEDERAL REPEAL OF MEDICAID SUBROGATION PROVISIONS SECTION 11H.6....97 STUDY EXPANSION OF PACE PROGRAM SECTION 11H.7....98 EVALUATION OF ADMINISTRATIVE AND POLICY STAFFING NEEDS IN A MANAGED CARE SERVICE DELIVERY ENVIRONMENT SECTION 11H.8....98 MEDICAID TRANSFORMATION SEVEN-YEAR FORECAST SECTION 11H.9....99 CLARIFY SCOPE OF AUTHORITY TO DEFINE MEDICAID PROGRAM ELIGIBILITY SECTION 11H.10....100 INCREASE NUMBER OF MEDICAL PROFESSIONAL PROVIDERS ELIGIBLE FOR SUPPLEMENTAL PAYMENTS SECTION 11H.11....101 MEDICAID AND HEALTH CHOICE PROVIDER SCREENING CHANGES SECTION 11H.12....101 Page 6

SUBPART XI-I. DIVISION OF HEALTH BENEFITS USE OF MEDICAID TRANSFORMATION FUND FOR MEDICAID TRANSFORMATION NEEDS SECTION 11I.1....104 SUBPART XI-J. MISCELLANEOUS [RESERVED] SUBPART XI-K. DIVISIONS OF VOCATIONAL REHABILITATION, SERVICES FOR THE BLIND, AND SERVICES FOR THE DEAF AND HARD OF HEARING [RESERVED] SUBPART XI-L. DHHS BLOCK GRANTS REVISE DHHS BLOCK GRANTS SECTION 11L.1....105 PART XII. DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES FUTURE FARMERS OF AMERICA PROJECT COMPLETION SECTION 12.1....120 OYSTER MARKETING SECTION 12.2....121 CARRY FORWARD FOOD MARKETING FUNDS SECTION 12.3....121 AGRICULTURAL DEVELOPMENT AND FARMLAND PRESERVATION TRUST FUND SECTION 12.4....121 NEW AND EMERGING CROPS PROGRAM SECTION 12.5....121 PART XIII. DEPARTMENT OF ENVIRONMENTAL QUALITY WATER SAFETY SECTION 13.1....122 REPURPOSE PRE-REGULATORY LANDFILL FUNDS SECTION 13.2....127 CRAB POT CLEANUP PROGRAM SECTION 13.3....127 WATER AND SEWER INFRASTRUCTURE GRANTS SECTION 13.4....128 ECOSYSTEM RESTORATION FUND/STATE TREASURER INVESTMENT SECTION 13.5....128 INCREASE AQUATIC WEED CONTROL FUNDING SECTION 13.6....128 ACQUIRE PERMANENT DREDGING CAPACITY SECTION 13.7....128 NUTRIENT MANAGEMENT REGULATORY FRAMEWORK REVISIONS SECTION 13.8....130 DEQ GRANT-IN-AID SECTION 13.9....132 COASTAL STORM DAMAGE MITIGATION FUND SECTION 13.10....133 VOLKSWAGEN SETTLEMENT FUNDS SECTION 13.11....133 SUBPART XIII-A. WILDLIFE RESOURCES COMMISSION OUTDOOR HERITAGE COUNCIL REVISIONS SECTION 13A.1....134 Page 7

PART XIV. DEPARTMENT OF NATURAL AND CULTURAL RESOURCES CLEAN WATER MANAGEMENT TRUST FUND SECTION 14.1....135 PART XV. DEPARTMENT OF COMMERCE ECONOMIC DEVELOPMENT MODIFICATIONS SECTION 15.1....135 MODIFY FILM GRANT FUND SECTION 15.4....141 TRANSFER CERTAIN COMMERCE FUNCTIONS TO EDPNC SECTION 15.5....142 UTILITY ACCOUNT TRANSFERS SECTION 15.6....142 CERTIFIED RETIREMENT COMMUNITY CHANGES SECTION 15.7....143 DOWNTOWN REVITALIZATION AND ECONOMIC DEVELOPMENT GRANTS SECTION 15.8....143 SUBPART XV-A. COMMERCE STATE AID [RESERVED] PART XVI. DEPARTMENT OF PUBLIC SAFETY GRANTS FOR LAW ENFORCEMENT CAMERAS/STATEWIDE SEX OFFENDER REGISTRY/SAMARCAND TRAINING SIMULATOR UPGRADES SECTION 16.1....144 GOVERNOR'S CRIME COMMISSION GRANT REPORTS SECTION 16.2....145 SAMARCAND TRAINING ACADEMY SECTION 16.3....146 SUBPART XVI-A. GENERAL PROVISIONS [RESERVED] SUBPART XVI-B. DIVISION OF LAW ENFORCEMENT VIPER IN-KIND CONTRIBUTIONS/USER SURVEY/INCREASE OUTREACH SECTION 16B.1....147 VIPER BUILD-OUT/SUPPORT SECTION 16B.2....147 ENSURE ENFORCEMENT OF TOBACCO LAWS/PREVENTION OF SALES TO YOUTH SECTION 16B.3....147 SUBPART XVI-C. DIVISION OF ADULT CORRECTION EXTEND REENTRY COUNCIL CONTRACTS SECTION 16C.1....148 PRISON REFORM FUNDING AND REPORTING SECTION 16C.2....148 SUBPART XVI-D. DIVISION OF JUVENILE JUSTICE CONTINUE CRISIS AND ASSESSMENT CENTERS CONTRACTS SECTION 16D.1....149 SUBPART XVI-E. EMERGENCY MANAGEMENT AND NATIONAL GUARD [RESERVED] PART XVII. DEPARTMENT OF JUSTICE CRIMINAL JUSTICE FELLOWS PROGRAM SECTION 17.1....149 Page 8

REPORT ON ATTORNEY GENERAL'S OFFICE MANAGEMENT FLEXIBILITY REDUCTION SECTION 17.2....153 PART XVIII. JUDICIAL DEPARTMENT SUBPART XVIII-A. OFFICE OF INDIGENT DEFENSE SERVICES MODIFY REPORT DATE/PUBLIC DEFENDER WORKLOAD FORMULA SECTION 18A.1....153 CREATE NEW PUBLIC DEFENDER DISTRICT IN MCDOWELL AND RUTHERFORD COUNTIES/EXPAND DISTRICT 3B SECTION 18A.2....153 OPT-OUT/UNIFORM FEE SCHEDULE IDS PILOT PROJECT SECTION 18A.3....155 FINAL REPORT ON STANDARDS FOR INDIGENCY SECTION 18A.4....155 SUBPART XVIII-B. ADMINISTRATIVE OFFICE OF THE COURTS NOTICE OF FEE WAIVER/IMPLEMENTATION REPORT SECTION 18B.1....155 STUDY APPROPRIATE HOUSING/TREATMENT FOR DWI OFFENDERS SECTION 18B.2....155 FIVE-YEAR PROJECTION STATEWIDE MISDEMEANANT CONFINEMENT BEDS SECTION 18B.3....156 E-COURTS SYSTEM SECTION 18B.4....156 ALLOCATION OF SUPERIOR COURT JUDGES SECTION 18B.5....156 ALLOCATION OF ASSISTANT DISTRICT ATTORNEYS SECTION 18B.6....159 PART XIX. DEPARTMENT OF MILITARY AND VETERANS AFFAIRS IMPROVEMENTS TO VETERANS CEMETERY SECTION 19.1....160 VA SCHOLARSHIPS/TECHNICAL AMENDMENT SECTION 19.2....161 MILITARY AFFAIRS COMMISSION/MEMBERS AND PAYMENT OF EXPENSES FROM BRAC FUNDS SECTION 19.3....161 PART XX. OFFICE OF ADMINISTRATIVE HEARINGS [RESERVED] PART XXI. TREASURER LOCAL GOVERNMENT COMMISSION/REPORTS FROM LOCAL GOVERNMENTS SECTION 21.1....162 PART XXII. DEPARTMENT OF INSURANCE WORKERS' COMPENSATION/ALLOW ALTERNATIVE EMPLOYER PENALTY SECTION 22.1....163 INSURANCE REGULATORY FEE SECTION 22.2....164 PART XXIII. BIPARTISAN STATE BOARD OF ELECTIONS AND ETHICS ENFORCEMENT HAVA FUNDS SECTION 23.1....164 Page 9

PART XXIV.GENERAL ASSEMBLY CHILD WELL-BEING TRANSFORMATION COUNCIL SECTION 24.1....164 PART XXV. OFFICE OF THE GOVERNOR [RESERVED] PART XXVI. OFFICE OF STATE BUDGET AND MANAGEMENT RESULTS FIRST PROJECT/PERFORMANCE-BASED MANAGEMENT IN STATE BUDGETING SECTION 26.1....167 AMEND PURPOSES FOR FUNDS APPROPRIATED FOR STANLY COMMUNITY COLLEGE SECTION 26.2....167 STATE BUDGET AND MANAGEMENT SPECIAL PROVISIONS SECTION 26.3....168 PART XXVI-A. OFFICE OF STATE HUMAN RESOURCES OFFICE OF STATE HUMAN RESOURCES/CRIMINAL RECORD CHECKS FOR PROSPECTIVE TEMPORARY EMPLOYEES SECTION 26A.1....170 OSHR/TEMPORARY EMPLOYMENT NEEDS OF CABINET & COUNCIL OF STATE AGENCIES SECTION 26A.2....171 MARKET RATE STUDY FOR AREA DIRECTOR SALARY RANGE REVISIONS SECTION 26A.3....171 PART XXVII. STATE AUDITOR OFFICE OF STATE AUDITOR/STATE AGENCIES REQUIRED TO PREPARE FINANCIAL STATEMENTS PRIOR TO AUDIT SECTION 27.1....172 PART XXVIII. HOUSING FINANCE AGENCY [RESERVED] PART XXIX. DEPARTMENT OF THE SECRETARY OF STATE [RESERVED] PART XXX. OFFICE OF LT. GOVERNOR [RESERVED] PART XXXI. DEPARTMENT OF ADMINISTRATION DOA/CONTRACT MANAGEMENT TRAINING FOR CERTAIN STATE EMPLOYEES SECTION 31.1....172 DOA/MANAGE STATE PORTFOLIO OF REAL PROPERTY SECTION 31.2....173 PART XXXII. DEPARTMENT OF REVENUE DOR TAX FRAUD ANALYTICS SECTION 32.1....173 PART XXXIII. OFFICE OF STATE CONTROLLER [RESERVED] PART XXXIV. DEPARTMENT OF TRANSPORTATION CASH FLOW HIGHWAY FUND AND HIGHWAY TRUST FUND APPROPRIATIONS SECTION 34.1....174 CONTINGENCY FUNDS SECTION 34.2....174 Page 10

DOT PILOT PROGRAM/FUNDING AND OVERSIGHT OF TIME-CRITICAL ECONOMIC DEVELOPMENT PROJECT SECTION 34.3....175 COMPENSATION TO NC STATE FOR DOT I-440 PROJECT SECTION 34.4....175 TOLL ROAD AND LANE CLARIFICATIONS SECTION 34.5....175 CLARIFY STI LAW SECTION 34.6....177 STI/ADDITIONAL REQUIREMENT FOR HIGH-COST PROJECTS SECTION 34.7....179 INCREASE TRANSPARENCY OF HIGHWAY FUND CERTIFIED BUDGET SECTION 34.8....179 EXTEND MAP ACT MORATORIUM SECTION 34.9....179 DOT REPORT/QUARTERLY COST ESCALATION REPORTS SECTION 34.10....179 COMPREHENSIVE AGREEMENT CANCELLATION OR MODIFICATION SECTION 34.11....180 DOT PROPERTY SALE PROCEEDS TO BE DEPOSITED IN STATE HIGHWAY FUND SECTION 34.12....180 PROJECT DELIVERY METHOD PILOT PROGRAM SECTION 34.13....181 REPLACEMENT ROW FOR UTILITY RELOCATION SECTION 34.14....182 UNANTICIPATED BRIDGE OR ROAD CLOSURE/WAIVER OF BIDDING REQUIREMENTS SECTION 34.15....182 DESIGNATION OF BRIDGES SECTION 34.16....182 DOT REPORT/FEDERAL BUILD GRANT SUBMISSIONS SECTION 34.17....183 ZONING OR PERMIT REQUEST/PROHIBIT CITY FROM REQUIRING WAIVER BY SCHOOL OF CERTAIN RIGHTS AND REQUIREMENTS SECTION 34.18....183 PILOT PROGRAM/DOT SALARY ADJUSTMENT & RETENTION FUNDS SECTION 34.19....184 DOT/ATTRACTION LOGO SIGN SECTION 34.20....185 REST AREA PILOT PROJECT/RICHMOND COUNTY SECTION 34.21....185 DMV/COMMERCIAL MOTORCOACH STUDY SECTION 34.22....185 DMV/HEARINGS UNIT BUDGET SECTION 34.23....186 VACATE DMV NEW BERN AVENUE PROPERTY/ISSUE RFP FOR LEASING SPACE OUTSIDE RALEIGH SECTION 34.24....187 DMV/TRUCK DRIVER TRAINING STUDY SECTION 34.25....187 CLARIFY OVERSIGHT AUTHORITY OVER AUTO APPRAISERS SECTION 34.26....188 Page 11

SPECIAL REGISTRATION PLATES/STATE AND NATIONAL MOTTOS SECTION 34.27....189 EXPRESS AUTHORIZATION FROM THE GENERAL ASSEMBLY REQUIRED TO PURCHASE AN AIRPLANE OR HELICOPTER SECTION 34.28....191 AIRPORT FUNDING/REPORTING & DEADLINE FOR USE SECTION 34.29....191 DOT/STUDY PASSENGER RAIL STATION MAINTENANCE NEEDS SECTION 34.30....192 PART XXXV. SALARIES AND BENEFITS ELIGIBLE STATE-FUNDED EMPLOYEES AWARDED LEGISLATIVE SALARY INCREASES/EFFECTIVE JULY 1, 2018/RAISE MINIMUM ANNUAL STATE EMPLOYEE PAY TO $31,200 SECTION 35.1....192 GOVERNOR AND COUNCIL OF STATE SECTION 35.2....192 CERTAIN EXECUTIVE BRANCH OFFICIALS SECTION 35.3....193 JUDICIAL BRANCH SECTION 35.4....193 CLERKS OF SUPERIOR COURT SECTION 35.5....194 ASSISTANT AND DEPUTY CLERKS OF SUPERIOR COURT SECTION 35.6....194 MAGISTRATES SECTION 35.7....194 LEGISLATIVE EMPLOYEES SECTION 35.8....196 GENERAL ASSEMBLY PRINCIPAL CLERKS SECTION 35.9....196 SERGEANTS-AT-ARMS AND READING CLERKS SECTION 35.10....196 COMMUNITY COLLEGES SECTION 35.11....196 UNIVERSITY OF NORTH CAROLINA SYSTEM SECTION 35.12....197 STATE AGENCY TEACHERS SECTION 35.13....197 ALL STATE-SUPPORTED PERSONNEL SECTION 35.14....197 MOST STATE EMPLOYEES SECTION 35.15....198 USE OF FUNDS APPROPRIATED FOR LEGISLATIVELY MANDATED INCREASES SECTION 35.16....198 REQUIRE SUBMISSION OF PAY PLAN DESIGN SECTION 35.17....199 STATUTORY AUTHORITY REGARDING CERTAIN LAW ENFORCEMENT OFFICER BENEFITS SECTION 35.18....199 COUNCIL OF STATE AGENCIES/EXEMPT EMPLOYEES SECTION 35.19....199 Page 12

ADULT CORRECTIONS/ELIGIBILITY FOR SALARY ADJUSTMENTS SECTION 35.20....199 CORRECTIONAL OFFICERS/SALARY INCREASE SECTION 35.21....200 CORRECTIONAL OFFICERS/CUSTODY-BASED PAY DIFFERENTIAL SECTION 35.22....200 DIVISION OF ADULT CORRECTIONS BUDGET REVIEW AND REALIGNMENT SECTION 35.23....200 STATE HUMAN RESOURCES ACT/RIF CLARIFICATION/UNC SECTION 35.24....200 STATE TROOPERS INCREASE/TRAINING LOAN REIMBURSEMENT REQUIREMENTS SECTION 35.25....201 SPECIAL ANNUAL LEAVE BONUS SECTION 35.26....202 SALARY RELATED CONTRIBUTIONS SECTION 35.27....203 PROVIDE ONE-TIME COST-OF-LIVING SUPPLEMENT FOR RETIREES OF THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM, THE CONSOLIDATED JUDICIAL RETIREMENT SYSTEM, AND THE LEGISLATIVE RETIREMENT SYSTEM SECTION 35.28....203 INCREASE AND EXPAND PUBLIC SAFETY DEATH BENEFIT SECTION 35.29....204 PART XXXVI. CAPITAL APPROPRIATIONS CAPITAL APPROPRIATIONS/GENERAL FUND SECTION 36.1....210 CAPITAL APPROPRIATIONS/PROJECT RESERVE SECTION 36.2....211 WATER RESOURCES DEVELOPMENT PROJECTS SECTION 36.3....212 NON-GENERAL FUND CAPITAL IMPROVEMENT AUTHORIZATIONS SECTION 36.4....214 REPAIRS AND RENOVATIONS RESERVE ALLOCATION SECTION 36.5....216 UNC BOARD OF GOVERNORS PLANNING TASK FORCE SECTION 36.6....217 MISCELLANEOUS CAPITAL ITEMS SECTION 36.7....217 STATE CAPITAL AND INFRASTRUCTURE FUND CHANGES SECTION 36.8....218 RICHMOND COMMUNITY COLLEGE BOND USE SECTION 36.9....218 PART XXXVII. DEPARTMENT OF INFORMATION TECHNOLOGY GROWING RURAL ECONOMIES WITH ACCESS TO TECHNOLOGY (GREAT) PROGRAM SECTION 37.1....219 CYBERSECURITY REGIONAL TRAINING CENTER SECTION 37.2....227 IT INTERNAL SERVICE FUND/RATES CHANGES SECTION 37.3....227 911 CHANGES SECTION 37.4....228 Page 13

DEPARTMENT OF REVENUE/INFORMATION TECHNOLOGY TRANSITION TO DEPARTMENT OF INFORMATION TECHNOLOGY SECTION 37.5....228 PART XXXVIII. FINANCE PROVISIONS IRC UPDATE SECTION 38.1....229 BUSINESS TAX CHANGES SECTION 38.2....233 FEDERAL DETERMINATIONS AND AMENDED RETURNS SECTION 38.3....235 AUTOMATIC EXTENSION OF TIME TO FILE TAX RETURNS SECTION 38.4....238 SALES AND USE TAX CHANGES SECTION 38.5....238 EXCISE TAX CHANGES SECTION 38.6....252 MODIFIED RISK TOBACCO PRODUCT TAX REDUCTION SECTION 38.7....257 ALLOW CITIES TO USE REVENUES FOR PUBLIC EDUCATION SECTION 38.8....257 WAIVE CERTAIN PROPERTY TAX PENALTIES AND INTEREST SECTION 38.9....259 OTHER TAX CHANGES SECTION 38.10....259 PART XXXIX. MISCELLANEOUS PROVISIONS STATE BUDGET ACT APPLIES SECTION 39.1....265 COMMITTEE REPORT SECTION 39.2....265 REPORT BY FISCAL RESEARCH DIVISION SECTION 39.3....266 MOST TEXT APPLIES ONLY TO THE 2018-2019 FISCAL YEAR SECTION 39.4....266 EFFECT OF HEADINGS SECTION 39.5....266 APPROPRIATIONS LIMITATIONS AND DIRECTIONS APPLY SECTION 39.6....266 SEVERABILITY CLAUSE SECTION 39.7....266 EFFECTIVE DATE SECTION 39.8....267 Page 14