A BILL TO BE ENTITLED AN ACT TO LIMIT THE ABILITY OF STATE AGENCIES OR STATE ENTITIES TO ENTER INTO DEBT OR DEBT-LIKE ARRANGEMENTS OUTSIDE OF THE PURVIEW OF THE GENERAL ASSEMBLY.
Amends GS Chapter 142 to add a new Article 1A limiting the ability of state entities to enter into certain debt arrangements for the acquisition or lease of assets without General Assembly approval. Provisions are as follows:
New GS 142-15.15 sets forth findings related to the purpose of the act and the impact of financing arrangements that obligate the state to make ongoing payments similar to those for borrowed money.
New GS 142-15.16 defines three terms for purposes of the Article: financing arrangement, state entity, and state-supported financing arrangements.
New GS 142-15.17 prohibits a state entity from entering into a state-supported financing arrangement for the acquisition of a capital asset valued at $5 million or more unless the General Assembly enacts legislation specifically approving the acquisition or project to be financed and the use of a state-supported financing arrangement.
Effective when the act becomes law and applies to financing arrangements entered into on or after that date.
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