Bill Summary for S 265 (2021-2022)
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AN ACT TO INCREASE THE TRANSPARENCY OF BOND REFERENDA BY REQUIRING ADDITIONAL DISCLOSURES BY UNITS OF LOCAL GOVERNMENT, TO MAKE CHANGES RECOMMENDED BY THE LOCAL GOVERNMENT COMMISSION TO STRENGTHEN THE SYSTEM FOR MONITORING THE FINANCIAL OPERATIONS OF LOCAL UNITS AND OVERSIGHT OF FISCALLY TROUBLED LOCAL UNITS, AS DIRECTED BY THE CURRENT OPERATIONS APPROPRIATIONS ACT OF 2021, AND TO AUTHORIZE CHARTER SCHOOLS TO PARTICIPATE IN THE STATE TREASURER'S ANCILLARY GOVERNMENTAL PARTICIPANT INVESTMENT PROGRAM.Intro. by Johnson, Ford.
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Enacts GS 159-52(c) to require the Local Government Commission (Commission) to state three disclosures in any order approving a local government's application to issue a bond, including (1) the total amount of estimated interest using the highest interest rate, as described, (2) the governmental unit's increase in property tax liability for each $10,000 of property tax value necessary for debt service, and (3) a notice that the unit can issue additional general obligation debt of up to two-thirds of the amount of the proposed bond as the debt is retired, without a vote, specifying the calculation of that amount. Makes organizational changes.
Amends GS 159-51 to require the local governmental unit's application to the Commission for approval to issue a bond to include the required disclosures of new GS 159-52(c). Makes conforming changes to GS 159-53 to reflect the reorganization of GS 159-52.
Changes the form of the question for a referendum to approve a bond provided in GS 159-61(d) to include the required disclosures with calculated amounts as now required in GS 159-51 and GS 159-52. Applies to bonds proposed on or after the date the act becomes law.