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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House committee substitute to the 2nd edition makes the following changes.
Modifies proposed GS 159-33.2, which authorizes the Secretary of Revenue to require a local government or public authority to report events defined by the Secretary that will or may have a material, adverse effect on the financial health, operations, or internal controls of the local government or public authority within 30 days after the occurrence of such events. Directs the Local Government Commission (Commission) to adopt a policy specifying the events required to be reported under the statute and the process for reporting such events (previously, did not include the reporting procedure).
Eliminates proposed subsection (d) to GS 159-34, directing the Commission to notify the State Treasurer and the Secretary of Revenue of a unit's failure to comply with the annual audit requirements if the unit has failed to file a copy of the audit report with the Secretary (as required by subsection (a)) within 12 months of the unit's fiscal year end, and providing for withholding from the unit's distributions under GS 105-486 and GS 105-501 of 150% of the cost of the required annual audit, as specified, until the Commission notifies the State Treasurer and the Secretary that the required report has been filed, reviewed, and accepted.
Adds the following new content.
Repeals GS 135-48.55, which sets an interest rate of 1.5% to be charged to charter schools and local government units on late premiums due to the State Health Plan for Teachers and State Employees.
Amends GS 159-7, adding a new subsection to require a local government to notify the Commission within 60 days of creating a public authority or unit subject to the Local Government Budget and Fiscal Control Act (Article 3, GS Chapter 159), including the name and governance structure of the authority or unit and any other information requested by the Commission.
Effective January 1, 2023, amends GS 159-29, disqualifying individuals from appointment as a local government finance officer if the individual is unable to obtain a performance bond required by the statute. Changes the minimum amount of the performance bond of a finance officer to be fixed by the governing board to be the greater of $50,000 or an amount equal to 10% of the unit's annually budgeted funds, up to $1 million (previously, required to be set at at least $50,000). Similarly, disqualifies individuals from acting as a local government or public authority's officer, employee, or agent responsible for handling more than $100 of public funds, or having access to the inventories of the unit or authority, if the individual is unable to secure a performance bond of the amount set by the governing board.
Makes the act applicable to bonds issued under bond orders introduced on or after October 1, 2022, and to contracts entered into on or after October 1, 2022 (was, on the date the act became law).
Changes the act's titles.