GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

H	1 

HOUSE BILL 1090

Short Title:  Beach Renourish/Reserve Funds.	(Public)

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Sponsors: Representatives Redwine; Cole, Culpepper, Hill, McComas, Nye, Owens, Preston, Rayfield, Smith, Wainwright, Warwick, and Wright.

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Referred to:  Environment, if favorable, Appropriations.

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April 21, 1997

A BILL TO BE ENTITLED
AN ACT TO ESTABLISH THE BEACH RENOURISHMENT FUND, THE TRUSTEES OF THE FUND, AND TO RESERVE FIVE PERCENT OF THE UNRESERVED CREDIT BALANCE IN THE GENERAL FUND AT THE END OF EACH FISCAL YEAR TO THE BEACH RENOURISHMENT FUND.
The General Assembly of North Carolina enacts:
Section 1.  Article 1 of Chapter 143 of the General Statutes is amended by adding a new section to read:
"§ 143-15.3C.  Funds reserved to the Beach Renourishment Fund.
(a)	The Beach Renourishment Fund is established in G.S. 113-146.1. The State Controller shall reserve to the Beach Renourishment Fund five percent (5%) of any unreserved credit balance remaining in the General Fund at the end of each fiscal year.  As used in this section, the term ‘unreserved credit balance' means the credit balance amount, as determined on a cash basis, before funds are reserved by the State Controller to the Savings Reserve Account, the Repairs and Renovations Reserve Account, the Clean Water Management Trust Fund, or the Beach Renourishment Fund pursuant to this section, G.S. 143-15.3, 143-15.3A, and 143-15.3B.
(b)	The funds in the Beach Renourishment Fund shall be used only in accordance with Article 13B of Chapter 113 of the General Statutes.”
Section 2.  Chapter 113 of the General Statutes is amended by adding a new Article to read:
"ARTICLE 13B.
"Beach Renourishment Fund.
"§ 113-146.  Definitions.
The following definitions apply in this Article:
(1)	Fund. – The Beach Renourishment Fund created pursuant to this Article.
(2)	Trustees. – The trustees of the Beach Renourishment Fund.
"§ 113-146.1.  Beach Renourishment Fund: established; purpose.
(a)	Fund Established. – There is established a Beach Renourishment Fund in the State Treasurer's Office that shall be used to provide grants to beach communities for beach renourishment in accordance with this Article.
(b)	Fund Earnings, Assets, and Balances. – The State Treasurer shall hold the Fund separate and apart from all other moneys, funds, and accounts. Investment earnings credited to the assets of the Fund shall become part of the Fund. Any balance remaining in the Fund at the end of any fiscal year shall be carried forward in the Fund for the next succeeding fiscal year. Payments from the Fund shall be made on the warrant of the Chair of the Board of Trustees.
"§ 113-146.2.  Beach Renourishment Fund: eligibility for grants; matching funds requirement.
(a)	Eligible Grant Applicants. – Any local government or other political subdivision of the State or a combination of such entities is eligible to apply for a grant from the Fund for the purpose of beach renourishment.
(b)	Grant Matching Requirement. – The Board of Trustees shall establish matching requirements for grants awarded under this Article. The Board of Trustees may require a match of up to ten percent (10%) of the amount of the grant awarded.
"§ 113-146.3.  Beach Renourishment Fund: Board of Trustees established; membership qualifications; vacancies; meetings and meeting facilities.
(a)	Board of Trustees Established. – There is established the Beach Renourishment Fund Board of Trustees. The Beach Renourishment Fund Board of Trustees shall be independent, but for administrative purposes shall be located under the Department of Environment, Health, and Natural Resources.
(b)	Membership. – The Beach Renourishment Fund Board of Trustees shall be composed of nine members. Three members shall be appointed by the Governor, three by the General Assembly upon the recommendation of the President Pro Tempore of the Senate in accordance with G.S. 120-121, and three by the General Assembly upon the recommendation of the Speaker of the House of Representatives in accordance with G.S. 120-121. The office of Trustee is declared to be an office that may be held concurrently with any other executive or appointive office, under the authority of Article VI, Section 9, of the North Carolina Constitution.
Persons appointed shall be knowledgeable in one of the following areas:
(1)	Beach renourishment.
(2)	Coastal wildlife and fisheries habitats and resources.
(3)	Environmental management.
(c)	Initial Appointments. – Each appointing officer shall designate one of the officer's initial appointments to serve two-year terms, one to serve four-year terms, and one to serve six-year terms. Thereafter, all appointments shall be for four years, subject to reappointment. All initial appointments shall be made on or before January 1, 1998. The Governor shall appoint one Trustee to serve as Chair of the Board.
(d)	Vacancies. – If a vacancy occurs, other than by the expiration of term, of a member subject to appointment by the General Assembly upon the recommendation of the Speaker of the House of Representatives or the President Pro Tempore of the Senate, the vacancy shall be filled in accordance with G.S. 120-122. All other vacancies shall be filled by the appointing official in the original manner.
(e)	Frequency of Meetings. – The Trustees shall meet at least twice each year and may hold special meetings at the call of the Chair or a majority of the members.
(f)	Per Diem and Expenses. – The Trustees shall receive per diem and necessary travel and subsistence expenses in accordance with the provisions of G.S. 138-5. Per diem, subsistence, and travel expenses of the Trustees shall be paid from the Fund.
(g)	Staff and Meeting Facilities. – The Secretary of the Department of Environment, Health, and Natural Resources shall provide staff and meeting facilities for the Board of Trustees as requested by the Chair.
"§ 113-146.4.  Beach Renourishment Fund Board of Trustees: powers and duties.
(a)	Allocate Grant Funds. – The Trustees shall allocate moneys from the Fund as grants. A grant may be awarded only for a project or activity that satisfies the criteria and furthers the purposes of this Article.
(b)	Develop Grant Criteria. – The Trustees shall develop criteria for awarding grants under this Article. The criteria developed shall include consideration of the following:
(1)	The significant enhancement and conservation of coastal beaches in the State.
(2)	The specific areas targeted as being in need of beach renourishment.
(3)	The geographic distribution of funds as appropriate.
(4)	The significant recreational or economic value and uses of the area.
(c)	Develop Additional Guidelines. – The Trustees may develop guidelines in addition to the grant criteria consistent with and as necessary to implement this Article.
(d)	Rule-Making Authority. – The Trustees may adopt rules to implement this Article. Chapter 150B of the General Statutes applies to the adoption of rules by the Trustees.
(e)	The Chair of the Trustees shall report to the Environmental Review Commission beginning November 1, 1997, and annually thereafter on implementation of this section. A written copy of the report shall also be sent to the Fiscal Research Division of the General Assembly beginning November 1, 1997, and annually thereafter on implementation of this section."
Section 3.  This act becomes effective June 30, 1997.