AN ACT TO AUTHORIZE THE ISSUANCE OF GENERAL OBLIGATION BONDS FOR THE PURPOSE OF ACCOMPLISHING CERTAIN INTERRELATED AND UNITED PROJECTS TO FURTHER ECONOMIC DEVELOPMENT IN THE STATE CONSISTENT WITH THE CONNECT NC PLAN. Enacted October 21, 2015. Effective October 21, 2015.
Summary date: Oct 29 2015 - More information
Summary date: Sep 23 2015 - More information
Senate amendment makes the following changes to the 5th edition.
Amends the language to be included on the ballot to include the Department of Public Safety as a funding recipient.
Provides that the Adjutant General of the North Carolina National Guard is the one who will be using the funds for National Guard capital improvements for readiness centers in Guilford, Burke, and Wilkes counties.
Summary date: Sep 22 2015 - More information
Senate committee substitute makes the following changes to the 4th edition. Decreases the amount of bonds to be issued and sold, if approved by the voters, to $2 billion (was, $2,859,076,952). Deletes language which stated that one of the purposes of the issuance of general obligation bonds was for the construction and renovation of highways, roads, bridges, and related road infrastructure.
Amends the findings included in the bill which provide various reasons for the issuance of the general obligation bonds. Deletes language which specified that debt payments for transportation projects had to come from the Highway Trust Fund.
Makes conforming changes reflecting the new issuance amount above, including adjusting allocation amounts for specified projects across the state, including reducing the allocation for various statewide capital repairs and renovations. Deletes from the bill the $10,800,000 allocation for the USS NC Battleship Visitor's Center. Adds an allocation of $30 million for a new Business School at NC Central and an allocation of $23 million for a new Business School at UNC-Pembroke. Deletes the allocation for courthouse grants. Deletes all of the 15 specified allocations for National Guard and military facilities and instead allocates $70 million to National Guard Readiness centers in Guilford, Burke, and Wilkes counties. Deletes the allocation for the Highway Patrol Training Academy. Deletes all allocations previously found under the categories of Public Instruction and Transportation. Deletes allocations for various projects in the UNC System: School of Aviation, Taylor Building Renovation, Discovery Center Residence Hall, Owens Hall Renovation/Addition, West Hall Comprehensive Renovation, and Old Library Renovation. Amends the projects receiving allocations, and the amount allocated, to the zoo.
Makes conforming changes by amending the overall total allocated amounts for the different project categories.
Amends the special allocation provisions that apply to the use of the proceeds of public improvement bonds and notes, deleting several of the provisions found in the previous edition, including deleting the following, that (1) the proceeds of public improvement bonds and notes for state parks must be used for capital improvements; any items purchased with such proceeds and installed or replaced as part of a renovation or rehabilitation must have a useful life of at least 20 years or must extend the life of the facility by at least 20 years once renovated or rehabilitated; (2) a requirement for bond proceeds for specified matching grants for local parks program under the Department of Environment and Natural Resources; (3) deletes all the specified conditions set for the allocations from the bond proceeds for public instruction for public schools capital assistance; and (4) makes conforming deletions concerning requirements for bond proceeds set aside for statewide capital repairs and renovations for state government agencies, as allocations for such projects have also been deleted. Further amends special allocation provisions to require that any items purchased with the bond proceeds for any NC Community College renovation or rehabilitation projects to have a useful life of at least 10 years or extend the life of the facility by at least 10 years once renovated or rehabilitated (previously required 20 years). Amends the matching fund requirements for community colleges to make the amount dependent on where the main campus is located. Also requires the bond proceeds used for statewide capital repairs and renovations for the University of North Carolina to be used for projects that are eligible to receive funds from the Repairs and Renovations Reserve; requires that any items purchased with the bond proceeds and installed or replaced as part of a renovation or rehabilitation projects to have a useful life of at least 10 years or must extend the life of the facility by at least 10 years once renovated or rehabilitated. Sets out additional conditions on the use of bond proceeds by universities. Adds several new allocation provisions specifically for bond proceeds used for projects for the Department of Environmental Quality for Statewide Water/Sewer Loans and Grants, including setting funding requirements and amounts for loan and grant applications. Also adds new provisions and requirements for bond proceeds used for the NC Zoological Park, providing that bond proceeds must be used for capital improvements, with any items purchased with the bond proceeds for such improvements, renovation, and rehabilitation being required to have a useful life of at least 10 years or extending the life of the facility by at least 10 years once renovated or rehabilitated. Requires bond proceeds used by the National Guard to be used for capital improvements for readiness centers in Guilford, Burke, and Wilkes counties. Makes various conforming changes to the reallocation provisions concerning bond proceeds.
Makes conforming changes to the question that is to be placed on the ballot for approval/disapproval. Requires that absentee ballots be available 50 days before the date on which the election is to be held. Deletes language which provided for certain reimbursements to counties for specified costs incurred by holding the election.
Amends reporting requirements for specified recipients of bond proceeds, replacing a requirement that a report be submitted to the Joint Legislative Oversight Committee with a requirement that the report now be submitted to the Joint Legislative Oversight Committee on Capital Improvements by January 1, 2017.
Deletes a requirement that the Department of Public Safety take appropriate measures, including maximizing the use of the Inmate Construction Program, to reduce costs related to construction of correctional projects authorized in SL 2007-323, as amended.
Specifies that the report by the Office of State Budget and Management on retained funds is to be made to the Joint Legislative Oversight Committee on Capital Improvements.
Makes various conforming changes, updating language and requirements to reflect new allocations of bond proceeds and other changes to the act.
Summary date: Aug 6 2015 - More information
House amendments make the following changes to the 3rd edition, as amended.
Amendment #6 inserts a new clause into a section making a special allocation of bonds and notes for public instruction for public schools capital assistance to school administrative units in counties whose wealth is less than the state average. The new clause allows allocation also to schools in counties containing a base of the Armed Forces of the United States that have an average daily membership of more than 23,000 students.
Amendment #11 moves the date of the bond referendum from November 2015 to the time of North Carolina's 2016 presidential primary.
Summary date: Aug 5 2015 - More information
House amendments make the following changes to the 2nd edition.
Amendment #1 inserts a new provision requiring a community college receiving proceeds of public improvement bonds and notes to provide matching local funds from county funds or other non-state funds equal to the amount of proceeds received.
Amendment #5 requires entities receiving proceeds of public improvement bonds and notes to report not only to the Joint Legislative Capital Oversight Committee, as the 2nd edition requires, but also to the House of Representatives Appropriations Committee and the Senate Committee on Appropriations/Base Budget.
Amendment #5 also amends the special allocation provisions to require items purchased with bond and note proceeds as part of a renovation or rehabilitation to have a useful life of or extend the life of the facility by at least 20 (was, 10) years.
Summary date: Aug 4 2015 - More information
House committee substitute makes the following changes to the 1st edition.
Changes section 1.(i) to prohibit bonds from being issued if a majority of voters do not vote in favor of (was, vote against) their issuance.
Makes a technical change and corrects the name of the Joint Legislative Capital Oversight Committee (was, Legislative Capital Oversight Committee).
Summary date: Aug 3 2015 - More information
States the purpose of the act and sets out the General Assembly’s findings. Sets out and defines the terms bonds, cost, credit facility agreement, notes, par formula, and State, as they are used in the act.
Subject to approval by qualified voters at the November 2015 general election, authorizes the State Treasurer to issue and sell general obligation bonds designated as “State of North Carolina Public Improvement Bonds” in an amount not to exceed $2,859,076,952. Specifies that for public improvement bonds authorized for transportation projects, it is the General Assembly’s intent that the debt service on those bonds will be provided from amounts deposited to the Highway Trust Fund.
Sets out projects to be funded by the bonds in the following specified categories: Agriculture ($195 million); Attractions, Parks, and Historic Sites ($135,050,000); Local Parks and Infrastructure ($85 million); National Guard and Military ($92,751,623); NC Community Colleges ($300 million); Public Instruction ($500 million); Public Safety ($46,725,000); State Agencies ($215 million); Transportation ($400 million); University of North Carolina ($889,550,329).
Sets out seven special allocation provisions that apply to the use of the proceeds of public improvement bonds and notes, including: (1) the proceeds of public improvement bonds and notes for State Parks must be used for capital improvements; any items purchased with such proceeds and installed or replaced as part of a renovation or rehabilitation must have a useful life of at least 10 years or must extend the life of the facility by at least 10 years once renovated or rehabilitated; (2) sets conditions on and allocates specified amounts for specified purposes, from the proceeds of public improvement bonds and notes for public instruction for public schools capital assistance; and (3) requires the proceeds of public improvement bonds and notes for statewide supplemental highway funding for transportation be issued only for highway projects satisfying the following: an environmental impact statement, if required, was completed prior to January 1, 2015; construction on the project is projected by the Department of Transportation to commence by January 1, 2017; and the project meets the requirements set forth in Article 14B of GS Chapter 136.
Sets out the conditions under which the General Assembly may increase or decrease the allocation of the proceeds of public improvement bonds and notes, or reallocate any amounts among agencies or non-transportation projects; sets out separate provisions governing transportation projects.
Sets out procedures to be followed by the State Treasurer in allocating and tracking the bond proceeds.
Sets out the procedure for conducting the election and specifies the question that is to be placed on the ballot. Provides that if a majority of those voting on the bond question vote in favor of the issuance of the bonds, those bonds may be issued as provided in the act.
Sets out requirements for the issuance of the bonds and notes, including allowing bonds or notes to be issued as certificated or uncertificated obligations, setting out required signatures, and providing for the manner of sale of the bonds or notes. Exempts bonds and notes from all state, county, and municipal taxation or assessment, excluding inheritance and gift taxes, income taxes on the gain from the transfer of bonds and notes, and franchise taxes. Also specifies that the interest on bonds and notes will not be subject to taxation as to income.
Sets out guidance for interpreting the act, including a severability clause.
Establishes reporting guidelines for entities receiving the proceeds of public improvement bonds and notes.
Prohibits the State Treasurer from issuing bonds or notes otherwise authorized by the act in an amount or year where the issuance of the bonds or notes would violate the Debt Affordability Advisory Committee's recommendations on debt capacities required under GS 142-101.
Requires that other than for projects for DENR Statewide Children With Disabilities and Veterans With Disabilities Local Parks (Matching Grants), NC Community Colleges, projects for Public Instruction, DENR Statewide Water/Sewer Loans, and AOC Statewide Courthouse Grants, projects funded in whole or in part with the proceeds of public improvement bonds and notes, the portion of funds estimated to be needed for escalation of costs must remain with the Office of State Budget and Management and is to be disbursed only to: (1) address unforeseen contingencies related to the specific project for which the funds were made available or (2) address inflation costs related to that specific project. Requires any such funds retained by the Office of State Budget and Management at the time a project is completed to be retained by the Office until the General Assembly has reallocated it for other purposes. Requires a report on any funds retained, within 90 days of a project's completion.
Provides that transfers of voters from a given precinct, for the purpose of voting, to an adjacent precinct for the election held in November of 2015 are for that election only and do not apply to any subsequent election.
Requires the Department of Public Safety to take appropriate measures, including maximizing the use of the Inmate Construction Program, to reduce costs related to construction of correctional projects authorized in SL 2007-323, as amended. Allows the Department, with the approval of the Office of State Budget and Management, to use the funds from any savings generated, together with available funds, to finance the capital facility costs of renovating existing space at Central Prison for bed space for long-term palliative care. Provides that no additional special indebtedness may be issued or incurred to finance the construction of bed space for such care; the use of funds authorized by this section do not require further approval by the Council of State.
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