Titles the act as the Rebuild a Better NC Bond Act of 2019. States the act's purpose and legislative findings, and provides seven defined terms.
Subject to voter approval at the statewide election on November 3, 2020, authorizes the State Treasurer to issue and sell, either at one time or from time to time, general obligation bonds and notes up to $3 billion, subject to consent of the Council of State. Restricts use of the proceeds of infrastructure improvement bonds and notes to projects for public instruction, community colleges, UNC, and for unit of local government. Sets out a procedure under which a committee will select the projects and funding amounts.
Concerning proceeds used for public instruction, requires that (1) no more than $300 million be awarded to one local school administrative unit or project; (2) a county receiving bond proceeds provide local matching funds, with the amount of matching funds set account to which development tier it is located within; (3) the proceeds be used for acquisition of real property and construction, acquisition, reconstruction, enlargement, renovation, or replacement of buildings or structures, and to supplement local funds for public school capital outlay projects while not decreasing local funds for these projects from one fiscal year to the next.
Concerning proceeds used for local government infrastructure, requires that the Local Government Commission create a grant program with applications prioritized based on maximizing the use of the bond proceeds, age of the infrastructure, impact to the community, degree to which the local government has made expenditures to keep facilities in good working order, and the ability to raise and the degree to which the local government has raised revenue to cover foreseeable costs for public infrastructure. Caps the grant at $300 million to one local unit or project. Sets out additional grant program requirements.
Concerning proceeds used for NC Community Colleges for new construction, repairs, and renovations, requires the proceeds be used for new construction or rehabilitation of existing facilities and repairs and renovations only. Requires all such purchases and replacements to have a useful life of at least 10 years and any renovation must extend the useful life of the facility at least 10 years. Requires matching of proceeds for new construction projects only at $1 match for every $3 of proceeds for projects in development tier one areas, $1 match for every $2 of proceeds for projects in development tier two areas, and $1 match for every $1 of proceeds for projects in development tier three areas.
Concerning proceeds used for projects selected for a constituent institution to be used for new construction or rehabilitation of existing facilities and repairs and renovation. Requires all such purchases and replacements to have a useful life of at least 10 years and any renovation must extend the useful life of the facility at least 10 years. Requires matching funds, but provides that matching is not required for rehabilitation of existing facilities and repairs and renovations. Caps awards at $300 million to a constituent institution or one project.
Details the allocation and accounting of infrastructure improvement bond proceeds. Allows for investment by the State Treasurer and use of investment earnings as specified. Sets forth further parameters regarding use of proceeds with other available monies and disbursement. Requires the State Treasurer or a designee to set up a comprehensive system of tracking the proceeds to account for use and compliance. Allows the State Treasurer to withhold proceeds for not complying with tracking requirements.
Details the procedure and requirements for issuance of the improvement bonds and notes, including: required terms and conditions; required signatures, forms, and registration; the manner of sale and expenses; notes and repayment; refunding of bonds and notes; tax exemption; investment eligibility; faith and credit of the State pledged; and other agreements the State Treasurer can provide for bond insurance and other derivative products.
Provides for the variable rate demand authority of the State Treasurer of the bonds and notes and sets restrictions concerning the aggregate principal amounts payable by the State under a credit facility, as defined by the act.
Provides guidance for the act's interpretation, including that the act is meant to provide an additional or alternative financing method, statutory cross references may be amended, the act is to be construed broadly, the act supersedes other conflicting law; and the act's provisions are severable.
Requires that any funds from the Education Bond expended for public schools be reported to the Department of Public Instruction and be credited against the judgement in N.C. Sch. Bds. Ass'n. v. Moore.
Bill Summaries: S766 (2019-2020 Session)
Bill S 766 (2019-2020)Summary date: May 15 2020 - View summary