AN ACT TO MAKE TIER THREE COUNTIES ELIGIBLE FOR THE NEEDS-BASED PUBLIC SCHOOL CAPITAL FUND AND TO AUTHORIZE COUNTIES TO USE FUNDS FROM THE PUBLIC SCHOOL BUILDING CAPITAL FUND FOR NEW CONSTRUCTION LEASES.
Amends Section 5.3(d) of SL 2017-57, as amended, concerning increasing the amount of the revenue of the NC Education Lottery dedicated to assisting local governments in meeting local school capital needs. Expands the authorized use of the Needs-Based Public School Capital Fund, created in Section 5.3(d), to now allow for the Fund to be used to award grants to counties to assist with their critical public school building capital needs (previously limited to counties designated as development tier one or tier two areas). Amends Section 5.3(e) of SL 2017-57, as amended, to establish a matching requirement for recipient counties designated as development tier three areas at a ratio of 1:1.
Amends GS 115C-546.2 regarding allocations from the Public School Building Capital Fund (Fund). Authorizes counties to use Fund monies to enter into a lease agreement for the construction of new school facilities so long as four criteria are satisfied, including the retention of ownership of the subject property by the county and the term of the lease agreement being at least 15 years but no more than 25 years. Specifies that lease agreement includes any ancillary agreements or predevelopment agreements entered into in anticipation of or in accordance with a lease. Subjects lease agreements to the requirements of Article 8, GS Chapter 159 (regarding local government financing agreements); permits the Local Government Commission to consider other relevant construction and financing methods available to the county in determining whether the lease agreement is necessary or expedient pursuant to GS 159-151. Makes conforming changes.