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  • Summary date: Apr 6 2023 - View Summary

    Amends GS 159-171 (Grant anticipation notes) to create new subsection (a1), permitting a unit of local government to borrow money for paying appropriations made for a State Transportation Improvement regional impact or division need project in anticipation of receiving the funds from the State or the federal government or their agencies, and to issue negotiable notes in evidence thereof. Provides that notes issued under the subsection cannot be renewed, and must mature no later than 12 months after the first day of the calendar year following the year the project is scheduled to be completed. Requires a local government that plans to borrow money under the subsection to enter into an expedited project agreement with the Department of Transportation and outlines the requirements of that agreement. Creates new subsection (b2) that prohibits borrowing under subsection (a1) if the total amount of notes issued in anticipation of the project exceeds the amount of funding identified for the project, and specifies a mandatory certificate to be included on the note, signed by the finance officer. Makes clarifying changes to the statute to reflect the new subsections. 

    Amends GS 136-189.11 to create new subsection (f1), requiring the Department of Transportation to ensure that any amendment or modification of the State Transportation Improvement Program will not delay the repayment of grant anticipation notes issued under GS 159-171(a1). 

    Requires the Department of Transportation to develop procedures and rules as necessary for expedited project agreements to incorporate the terms and use of grant anticipation notes as added by this bill. Directs the Department of the State Treasurer, in consultation with the Department of Transportation, to adopt rules that are consistent with the purposes of this bill.