AN ACT TO ENACT THE BUILD NC BOND ACT OF 2018.
Amends GS 142-82 to add new subsections (2a), (2b), and (2c), defining terms related to the issuance of Build NC Bonds (bonds), a special indebtedness issued to finance Build NC Projects. Defines a Build NC Project as a capital facility selected for financing using Build NC Bonds. Directs that 2% to 50% of the proceeds from the bonds will be used for Division Need Projects in accordance with GS Chapter 136, Article 14B (defining Division Needs Projects). The remainder of the proceeds are to be used for Regional Impact Projects as defined by GS Chapter 136, Article 14B.
Amends GS Chapter 142, Article 9, State Capital Facilities Finance Act, to enact new GS 142-97. Designates the Highway Trust Fund as the source of repayment for Build NC Bonds. Directs that the State Treasurer may not issue Build NC Bonds unless the State Treasurer recommends issuing them, and the State Treasurer determines that the following requirements have been met: (1) the Department of Transportation’s average combined month-end cash balance for the first three months of the calendar year prior to the date of termination is equal to or less than 20% of the total expenditures from the Highway Fund and Highway Trust Fund for the most recent complete fiscal year; (2) the total amount of Build NC Bonds outstanding after issuance will not cause the recommended transportation debt target to be exceeded; and (3) at least six months prior to the expected date of the issuance, the Department of Transportation consulted with the State Treasurer, the Joint Legislative Transportation Oversight Committee, and the Joint Legislative Commission on Governmental Operations.
Directs that the total amount of special indebtedness resulting from the sale of the bonds does not exceed $3 billion. Limits each individual issuance of the bonds to $300 million (NOTE: summary has been corrected from $3 million) each fiscal year. Forbids the Department of Transportation from using proceeds from the bonds for a non-highway project or a project using tolling.
Amends GS 142-89(a) (defining limits of bonds and notes) to require that the maturity date for Build NC Bonds may not exceed 15 years.
Directs the State Treasurer, in consultation with the Department of Transportation, to implement a debt management policy for Build NC Bonds. Requires the Treasurer to report, by July 1, 2019, to the Joint Legislative Transportation Oversight Committee on the plan.