Bill Summary for H 1010 (2017-2018)

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Summary date: 

Jun 5 2018

Bill Information:

View NCGA Bill Details2017-2018 Session
House Bill 1010 (Public) Filed Thursday, May 24, 2018
Intro. by Torbett, Iler, Presnell, Shepard.

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Bill summary

House committee substitute makes the following changes to 1st edition. Changes the long title by deleting AS RECOMMENDED BY THE HOUSE SELECT COMMITTEE ON STRATEGIC TRANSPORTATION PLANNING AND LONG TERM FUNDING SOLUTIONS

Sets out legislative intent of the statute, which is to maintain the integrity of the Strategic Transportation Investments Act (STI). Adds the following provisions. Prohibits the bond proceeds from being treated as revenue. Makes debt service subject to the distribution formula in GS 136-189.11. Requires that funds to be used for the Regional Impact Projects tier be allocated within 2% by population of Distribution Regions and used for Regional Impact Projects. Requires funds to be used for the Division Need Projects tier be allocated within 2% of an equal share to each of the Department divisions and used for Division Need Projects. Provides that the formula variance in GS 136-189.11(e) only applies to the debt service. Provides that nothing in the Build NC Bond Act of 2018 prevents the issuance of other bonds or special indebtedness for highway or transportation purposes.

Amends GS 142-82(2a), changing the definition of Build NC Bonds to remove the requirement to measure compliance with the two requirements of the provision in successive periods of 10 fiscal years each. No specific time frame is provided. Amends GS 142-97(2)(a) to forbid the State Treasurer from issuing Build NC Bonds if the Department of Transportation's average month-end cash balance for the first three months of the prior year is $1 billion or less. Previously, issuance was not allowed if the Department's average combined month-end cash balance was 20% or less of the total expenditures from the Highway Fund and the Highway Trust Fund for the previous fiscal year. 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.

Makes other clarifying changes.

Act is now effective January 1, 2019, and expires December 31, 2028.