FUNDS TO NON-STATE ENTITIES/AMEND LAWS.

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View NCGA Bill Details2013-2014 Session
Senate Bill 750 (Public) Filed Wednesday, May 14, 2014
A BILL TO BE ENTITLED AN ACT TO MODIFY STATE BUDGET ACT PROVISIONS RELATING TO GRANTS AND APPROPRIATIONS TO NON-STATE ENTITIES, AS RECOMMENDED BY THE JOINT LEGISLATIVE PROGRAM EVALUATION OVERSIGHT COMMITTEE.
Intro. by Hartsell, Randleman.

Status: Ref To Com On Appropriations/Base Budget (Senate Action) (May 15 2014)

Bill History:

S 750

Bill Summaries:

  • Summary date: May 15 2014 - View Summary

    Identical to H 1035, filed 5/14/14.

    Enacts new GS 143C-6-24 regarding state-funded grants and appropriations to non-state entities. Requires any non-state entity receiving state funds of more than $100,000 in any fiscal year to deposit the funds into an interest-bearing account, and declares that any interest earned on those state funds held by the non-state entity are state funds. Additionally, provides that a non-state entity that receives state funds of $100,000 or less in any fiscal year may deposit the funds in an interest-bearing account, and any interest earned on the deposited funds are state funds. Regardless of the amount received by the non-state entity via a grant or an appropriation, limits the non-state entity's use of the interest earned on state funds to providing services consistent with the terms of the grant or the purposes of the appropriation, unless specified exceptions in this act are met or use of the funds is otherwise indicated in the grant or appropriation. Provides that regardless of the preceding provisions, a non-state entity may annually use up to $250 of any interest earned on held State funds to pay administrative costs directly related to holding the funds. Makes this section applicable to subgrantees just as it applies to grantees and recipients of appropriations. Specifies payments to which this section does not apply. Effective July 1, 2014.

    Amends GS 143C-6-23(d), which directs the Office of State Budget and Management (OSBM) to adopt rules to ensure uniform administration of state grants by all grantor state agencies and grantees or subgrantees. Amends the policies and procedures to require that grants include a duration after which unspent funds are returned to the state. Directs that all grants have a duration of two years unless otherwise specified in the grant agreement by the agency administering the grant. Specifies that grant recipients are to utilize current and generally accepted accounting principles in making use of their grant, and if grantees are not doing so, the rules adopted by the OSBM should provide guidance and standards for meeting the rules requirements to grantees and subgrantees. Makes additional conforming change.

    Provides that the rules adopted under GS 143C-6-23 as amended by this section are to be adopted before January 1, 2015; are exempt from the provisions of GS 143C-6-23(e), which declares that the rules are subject to the Administrative Procedure Act; and are to be effective for grants to be distributed on or after July 1, 2015.

    Amends GS 143C-6-22(b), effective July 1, 2014, to provide that the Director of the Budget is to take all of the specified actions when a non-state entity is found to have spent or encumbered state funds for an unauthorized purpose, or if the non-state entity knowingly fails to submit or willfully falsifies the information required by GS 143C-6-23 or any other provision of law. Makes additional clarifying and comforming changes.

    Except as otherwise indicated, this act is effective when it becomes law.