REFERENDUM FOR CERTAIN LOCAL DEBT.

View NCGA Bill Details2015-2016 Session
House Bill 128 (Public) Filed Tuesday, March 3, 2015
AN ACT TO REQUIRE A REFERENDUM ON CERTIFICATES OF PARTICIPATION AND SIMILAR DEBT.
Intro. by Speciale.

Status: Reptd Unfav (House Action) (Apr 23 2015)
H 128

Bill Summaries:

  • Summary date: Mar 3 2015 - More information

    Amends GS 160A‑20 to require the governing board of a unit of local government to adopt a resolution stating its intent at least ten days before executing a contract under subsections (a) or (b) of the statute, which concern executing a contract to (1) purchase, or finance or refinance the purchase of, real or personal property by installment contracts that create in the property purchased a security interest to secure payment of the purchase price to the seller or to an individual or entity advancing moneys or supplying financing for the purchase transaction or (2) finance or refinance the construction or repair of fixtures or improvements on real property by contracts that create a security interest to secure repayment of moneys advanced or made available for the construction or repair. Requires the resolution to state the maximum amount of the proposed contract, describe the basic purpose of the contract, and state that the contract is a form of debt financing. Provides that several contracts that are all related to the same undertaking are deemed a single contract.

    Sets out when the petition must be filed depending on whether the Local Government Commission must approve the contract under the statute. Requires that the petition be: (1) in writing and (2) signed by a number of voters of the issuing unit equal to not less than 5 percent of the total number of voters registered to vote in elections of the issuing unit according to the most recent figures certified by the State Board of Elections. Requires the clerk to investigate the sufficiency of the petition and present it to the governing board, with a certificate stating the results of the investigation. Requires the governing board, after hearing any taxpayer requesting to be heard, to determine the sufficiency of the petition, and its determination is conclusive.

    Provides that if a contract requires voter approval, the affirmative vote of a majority of those voting is required. Requires the governing board to set the date of a voter referendum on the contract, but prohibits the date from being more than one year after adoption of the resolution indicating the board's intent to enter into a contract, only on a date permitted by GS 163‑287. Requires the clerk to deliver a certified copy of the resolution calling a special referendum to the board of elections that is to conduct it within three days after the resolution is adopted, but specifies that failure to do so does not affect the validity of the referendum or contract entered into. Requires the referendum to be conducted by the board of elections conducting regular elections of the unit of local government. Requires the clerk to publish a notice of the referendum at least twice and specifies the timing and content of the notices. Sets out the form of the question as it is to be stated on the ballot. Requires the board of elections to canvass the referendum and certify the results to the governing board, and then certify and declare the referendum result and publish a statement of the result using specified language.

    Amends GS 159-85, which prohibits the state or a municipality from issuing revenue bonds under this Article, the State and Local Government Revenue Bond Act, unless the issue is approved by the Local Government Commission (Commission). Requires the governing body to publish a public notice of the application at the time of application to the Commission. Allows a petition demanding that the revenue bond order be submitted to the voters to be filed with the clerk to the board at any time before the Commission enters its order approving or denying the application. Requires that the petition be: (1) in writing and (2) signed by a number of voters of the issuing unit equal to not less than 5 percent of the total number of voters registered to vote in elections of the issuing unit according to the most recent figures certified by the State Board of Elections. Requires the clerk to investigate the sufficiency of the petition and present it to the governing board, with a certificate stating the results of the investigation. Requires the governing board, after hearing any taxpayer requesting to be heard, to determine the sufficiency of the petition, and its determination is conclusive.

    Provides that if a bond order requires voter approval, the affirmative vote of a majority of those voting is required. Requires the governing board to set the date of a voter referendum on the contract, but prohibits the date from being more than one year after adoption of the resolution indicating the board's intent to enter into a contract, only on a date permitted by GS 163‑287. Requires the clerk to deliver a certified copy of the resolution calling a special referendum to the board of elections that is to conduct it within three days after the resolution is adopted, but specifies that failure to do so does not affect the validity of the referendum or contract entered into. Requires the referendum to be conducted by the board of elections conducting regular elections of the unit of local government. Requires the clerk to publish a notice of the referendum at least twice and specifies the timing and content of the notices. Sets out the form of the question as it is to be stated on the ballot. Requires the board of elections to canvass the referendum and certify the results to the governing board, and then certify and declare the referendum result and publish a statement of the result using specified language.

    Amends GS 159-104, which prohibits a local government from issuing project development financing debt instruments unless the issue is approved by the Local Government Commission. Allows a petition demanding that the project development financing be submitted to the voters to be filed with the clerk to the board at any time before the Commission enters its order approving or denying the application. Requires that the petition be: (1) in writing and (2) signed by a number of voters of the issuing unit equal to not less than 5 percent of the total number of voters registered to vote in elections of the issuing unit according to the most recent figures certified by the State Board of Elections. Requires the clerk to investigate the sufficiency of the petition and present it to the governing board, with a certificate stating the results of the investigation. Requires the governing board, after hearing any taxpayer requesting to be heard, to determine the sufficiency of the petition, and its determination is conclusive.

    Provides that if a project development financing requires voter approval, the affirmative vote of a majority of those voting is required. Requires the governing board to set the date of a voter referendum on the contract, but prohibits the date from being more than one year after adoption of the resolution indicating the board's intent to enter into a contract, only on a date permitted by GS 163‑287. Requires the clerk to deliver a certified copy of the resolution calling a special referendum to the board of elections that is to conduct it within three days after the resolution is adopted, but specifies that failure to do so does not affect the validity of the referendum or contract entered into. Requires the referendum to be conducted by the board of elections conducting regular elections of the unit of local government. Requires the clerk to publish a notice of the referendum at least twice and specifies the timing and content of the notices. Sets out the form of the question as it is to be stated on the ballot. Requires the board of elections to canvass the referendum and certify the results to the governing board, and then certify and declare the referendum result and publish a statement of the result using specified language.

    Amends GS 159I-30, which prohibits a local government from issuing bonds or notes unless the issuance is approved and the bonds or notes are sold by the Local Government Commission (Commission). Requires the governing body to publish a public notice at the time of application to the Commission in a newspaper of general circulation in the local government. Allows a petition demanding that the special obligation bond order be submitted to the voters to be filed with the clerk to the board at any time before the Commission enters its order approving or denying the application. Requires that the petition be: (1) in writing and (2) signed by a number of voters of the issuing unit equal to not less than 5 percent of the total number of voters registered to vote in elections of the issuing unit according to the most recent figures certified by the State Board of Elections. Requires the clerk to investigate the sufficiency of the petition and present it to the governing board with a certificate stating the results of the investigation. Requires the governing board, after hearing any taxpayer requesting to be heard, to determine the sufficiency of the petition, and its determination is conclusive.

    Provides that if a special obligation bond order requires voter approval, the affirmative vote of a majority of those voting is required. Requires the governing board to set the date of a voter referendum on the contract, but prohibits the date from being more than one year after adoption of the resolution indicating the board's intent to enter into a contract, only on a date permitted by GS 163‑287. Requires the clerk to deliver a certified copy of the resolution calling a special referendum to the board of elections that is to conduct it within three days after the resolution is adopted, but specifies that failure to do so does not affect the validity of the referendum or contract entered into. Requires the referendum to be conducted by the board of elections conducting regular elections of the unit of local government. Requires the clerk to publish a notice of the referendum at least twice and specifies the timing and content of the notices. Sets out the form of the question as it is to be stated on the ballot. Requires the board of elections to canvass the referendum and certify the results to the governing board, and then certify and declare the referendum result and publish a statement of the result using specified language.

    Makes conforming changes to GS 159-60 (petition for referendum on bond issue), including reducing the number of voters that must sign a petition demanding that a bond order be submitted to the voters, from 10 to 5 percent of the total number of registered voters of the issuing unit.

    Amends GS 159-148 to add that if a contract, agreement, memorandum of understanding, and any other transaction having the force and effect of a contract must have Local Government Commission (Commission) approval, the local government’s governing body must publish a public notice at the time of application in a newspaper of general circulation in the local government. Allows a petition demanding that the contract, agreement, memorandum of understanding, and any other transaction having the force and effect of a contract to be filed with the clerk to the board at any time before the Commission enters its order approving or denying the application. Requires that the petition be: (1) in writing and (2) signed by a number of voters of the issuing unit equal to not less than 5 percent of the total number of voters registered to vote in elections of the issuing unit according to the most recent figures certified by the State Board of Elections. Requires the clerk to investigate the sufficiency of the petition and present it to the governing board, with a certificate stating the results of the investigation. Requires the governing board, after hearing any taxpayer requesting to be heard, to determine the sufficiency of the petition, and its determination is conclusive.

    Provides that if a contract, agreement, memorandum of understanding, and any other transaction having the force and effect of a contract requires voter approval, the affirmative vote of a majority of those voting is required. Requires the governing board to set the date of a voter referendum on the contract, but prohibits the date from being more than one year after adoption of the resolution indicating the board's intent to enter into a contract, only on a date permitted by GS 163‑287. Requires the clerk to deliver a certified copy of the resolution calling a special referendum to the board of elections that is to conduct it within three days after the resolution is adopted, but specifies that failure to do so does not affect the validity of the referendum or contract entered into. Requires the referendum to be conducted by the board of elections conducting regular elections of the unit of local government. Requires the clerk to publish a notice of the referendum at least twice and specifies the timing and content of the notices. Sets out the form of the question as it is to be stated on the ballot. Requires the board of elections to canvass the referendum and certify the results to the governing board, and then certify and declare the referendum result and publish a statement of the result using specified language.

    Amends GS 159-153 which requires, with specified exceptions, approval by the Local Government Commission (Commission) before a unit of local government, or any public body, agency, or similar entity created by any action of a unit of local government, may: (1) incur indebtedness, (2) enter into any similar type of financing arrangement, or (3) approve or otherwise participate in the incurrence of indebtedness or the entering into of a similar type of financing arrangement by another party on its behalf. Adds that if any of these types of transactions are undertaken by a local government, and it is subject to approval by the Commission, the governing body of the local government must, at the time of application, publish a notice in a newspaper of general circulation in the local government.

    Allows a petition demanding that the contract, agreement, memorandum of understanding, and any other transaction having the force and effect of a contract to be filed with the clerk to the board at any time before the Commission enters its order approving or denying the application. Requires that the petition be: (1) in writing and (2) signed by a number of voters of the issuing unit equal to not less than 5 percent of the total number of voters registered to vote in elections of the issuing unit according to the most recent figures certified by the State Board of Elections. Requires the clerk to investigate the sufficiency of the petition and present it to the governing board, with a certificate stating the results of the investigation. Requires the governing board, after hearing any taxpayer requesting to be heard, to determine the sufficiency of the petition, and its determination is conclusive.

    Provides that if a contract, agreement, memorandum of understanding, and any other transaction having the force and effect of a contract requires voter approval, the affirmative vote of a majority of those voting is required. Requires the governing board to set the date of a voter referendum on the contract, but prohibits the date from being more than one year after adoption of the resolution indicating the board's intent to enter into a contract, only on a date permitted by GS 163‑287. Requires the clerk to deliver a certified copy of the resolution calling a special referendum to the board of elections that is to conduct it within three days after the resolution is adopted, but specifies that failure to do so does not affect the validity of the referendum or contract entered into. Requires the referendum to be conducted by the board of elections conducting regular elections of the unit of local government. Requires the clerk to publish a notice of the referendum at least twice and specifies the timing and content of the notices. Sets out the form of the question as it is to be stated on the ballot. Requires the board of elections to canvass the referendum and certify the results to the governing board, and then certify and declare the referendum result and publish a statement of the result using specified language.


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