AN ACT TO ENACT THE BUILD NC BOND ACT OF 2018. Enacted June 20, 2018. Effective January 1, 2019.
Bill Summaries: S758 (2017-2018 Session)
Summary date: Jun 21 2018 - View summary
Summary date: Jun 6 2018 - View summary
Senate committee substitute amends the 2nd edition by making technical corrections to proposed GS 142-97 (Additional Provisions with respect to Build NC Bonds).
Summary date: Jun 5 2018 - View summary
Senate committee substitute makes the following changes to 1st edition. Amends GS 142-97(2)(a), which forbids the State Treasurer from issuing Build NC Bonds if the Department of Transportation's average month-end cash balance for the first three months in the prior calendar year is $1 billion or less, by removing reference to GS 143C-6-11(f), which requires the Department of Transportation to maintain a cash balance at the end of each month of 7.5% of the total appropriations for the current fiscal year from the Highway Fund. Amends GS 142-97(8), exempting Build NC Bonds from the entirety of GS 142-83, which allows the State to incur special indebtedness for funding capital projects only if (a) the General Assembly enacts legislation setting a cap on the maximum amount of special indebtedness and (b) the sum of all special indebtedness authorized by the legislation after January 1, 2013, does not exceed 25% of the bond indebtedness of the State supported by the General Fund that was authorized after January, 1, 2013. Previously the statute only exempted Build NC Bonds from subsection (b) of GS 142-83.
Summary date: May 29 2018 - View summary
Establishes the intent of the act, titled the "Build NC Bond Act of 2018," is to maintain the integrity of the Strategic Transportation Investments Act. Sets out six parameters concerning bond proceeds, debt service, and fund distribution to carry out this legislative intent. Includes requiring that funds distributed under the act used for the Regional Impact Projects tier must be allocated within 2% by population of Distribution Regions pursuant to the criteria set out in GS 136-189.11(d)(2)(a), and funds used for the Division Need Projects tier must be allocated within 2% of an equal share to each of the Department divisions pursuant to the criteria in GS 136-189.11(d)(3)(a).
Amends GS 142-82 to add new subsections (2a), (2b), and (2c), defining terms related to the issuance of Build NC Bonds (bonds), a special indebtedness issued to finance Build NC Projects. Defines a Build NC Project as a capital facility selected for financing using Build NC Bonds. Directs that 2% to 50% of the proceeds from the bonds will be used for Division Need Projects in accordance with GS Chapter 136, Article 14B (defining division needs projects). The remainder of the proceeds are to be used for regional impact projects as defined by GS Chapter 136, Article 14B.
Amends GS Chapter 142, Article 9, State Capital Facilities Finance Act, to enact new GS 142-97. Designates the Highway Trust Fund as the source of repayment for Build NC Bonds. Directs that the State Treasurer may not issue Build NC Bonds unless the State Treasurer recommends issuing them, and the State Treasurer determines that the following requirements have been met: (1) the Department of Transportation’s average month-end cash balance for the first three months of the calendar year prior to the date of determination is equal to or less than $1 billion; (2) the total amount of Build NC Bonds outstanding after issuance will not cause the recommended transportation debt target to be exceeded; and (3) at least six months prior to the expected date of the issuance, the Department of Transportation consulted with the State Treasurer, the Joint Legislative Transportation Oversight Committee, and the Joint Legislative Commission on Governmental Operations.
Directs that the total amount of special indebtedness from the issuance of Build NC Bonds does not exceed $3 billion. Limits each individual issuance of the bonds to $300 million each fiscal year. Forbids the Department of Transportation from using proceeds from the bonds for a non-highway project or a project using tolling.
Amends GS 142-89(a) (defining limits of bonds and notes) to require that the maturity date for Build NC Bonds may not exceed 15 years.
Directs the State Treasurer, in consultation with the Department of Transportation, to implement a debt management policy for Build NC Bonds. Requires the Treasurer to report, by July 1, 2019, to the Joint Legislative Transportation Oversight Committee on the plan.
Effective January 1, 2019, and expires December 31, 2028.