Bill Summary for S 803 (2019-2020)

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Summary date: 

May 19 2020

Bill Information:

View NCGA Bill Details2019-2020 Session
Senate Bill 803 (Public) Filed Tuesday, May 19, 2020
Intro. by Brown, Harrington, B. Jackson.

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Bill summary

Transfers a sum sufficient in nonrecurring funds from the General Fund to the State Capital and Infrastructure Fund (Fund) for the 2020-21 fiscal year. Appropriates from the Fund to the Office of State Budget and Management (OSBM) a sum sufficient in nonrecurring funding for the 2020-21 fiscal year to be allocated for repairs and renovation projects pursuant to GS 143C-8-13, governing capital repairs and renovations. Of the appropriated funds, allocates 40% for repairs and renovations at constituent institutions of UNC determined by the Board of Governors (BOG), and 60% for repairs and renovations for State agencies other than UNC. Directs OSBM to consult with or report to the specified NCGA committee as appropriate and consistent with GS 143C-8-13. Directs the BOG to report to the specified NCGA committee consistent with GS 143C-8-13. Requires allocation of a sum sufficient to the Department of Revenue for security improvements at various locations throughout the state. Restricts use of funds that are expended on projects where the recipient intends or expects to receive insurance proceeds or aid or assistance, only to the extent insurance settlements and other aid or assistance are insufficient to cover damages sustained as a result of Hurricane Florence. Effective July 1, 2020.

Amends GS 143C-8-13 to authorize the chancellor of a constituent institution of UNC to pay for capital improvement projects with funds available to the institution whereby (1) the total project costs do not exceed $1 million and the projects are of the 13 types permitted under the statute, regardless of whether the facilities and related infrastructure are supported form the General Fund or the State Capital and Infrastructure Fund; (2) the institution reports to the BOG and specified NCGA division on projects undertaken pursuant to this authority, with specified content included, on a quarterly basis; and (3) funds from a General Fund appropriation that are contractually obligated for a project pursuant to this authority remain available to fund the completion of the project. Requires the BOG to negatively weight the availability of non-State resources and carryforward funds available for repairs and renovations in making campus allocations of funds for capital improvements, and include information about the manner of compliance of this provision with any reporting required by the statute. Makes conforming changes.

Amends GS 143C-8-7 to authorize the Department of Agriculture and Consumer Services (DACS) to use the specified types of available funds under the statute to build equipment structures that meet the description contained in GS 143-138(b4)(1)c. (providing a State Building Code exemption for certain farm buildings which are unoccupied structures built upon State land and administratively allocated to DACS or NC State University and used primarily for forestry production and research or agriculture production and research) on an as-needed basis. Caps such authorized project costs at $125,000.

Enacts GS 143C-8-7.1 to establish procedures for legislative appropriations for capital improvements. Restricts uses to constructing, repairing, or renovating State buildings, utilities, and other capital facilities; for acquiring sites for them where necessary; and for acquiring buildings and land for State government purposes or other authorized purposes. Requires allotments to be issued by the Director of the Budget (Director) upon compliance with the act and prohibits unreasonably withholding allotments. Requires prior approval of the Director for projects financed with self-liquidating appropriations, and requires the Director to report such approval to the specified NCGA committee. Requires expenditures for fixed and movable equipment and furnishings to be approved by the Director prior to commitment of funds; does not require transfer to construction accounts unless at the direction of the Director. Sets project completion requirements and design costs consistent with appropriations provided. Requires disbursement of funds from the Fund for legislatively authorized projects as needed to initiate or advance a capital project, with funds authorized for a particular project remaining in the Fund until disbursement is necessary to satisfy financial obligations for the project.

Amends GS 143C-8-12 and GS 143C-3-3 to clarify that neither statute prohibits BOG expenditures or requests for planning for a project legislatively authorized and funded with an allocation from the Fund.

Amends GS 143C-4-3.1, which governs the Fund, to explicitly allow funds of the Fund to be used for broadband infrastructure projects funded through appropriations to the Growing Rural Economies with Access to Technology Fund, and for projects and grants identified in the Current Operations Appropriations Act. Adds that funds appropriated for a project that are unspent and unencumbered upon completion revert to the Fund. Adds new authority for OSBM to reallocate appropriations from the Fund between projects to meet cash flow requirements for a project so long as five specified criteria are met, including that the amount reallocated cannot be used to expand the scope of the project and a project cannot begin until the fiscal year legislatively authorized.

Amends GS 143-341 to modify the powers and duties of the Department of Administration regarding certification that the statement of needs for projects, other than a project of UNC for which advance planning has not been completed, is feasible. Now excludes from the Department's certification duties requests for appropriations below the formal project limit set by the State Building Commission, rather than below $100,000.

Reenacts and incorporates the State Budget Act, GS Chapter 143C.

Deems departmental receipts appropriated for the 2020-21 fiscal year to implement the act. 

Provides for the continued validity of 2019 Regular Session legislation expressly appropriating funds to a State entity covered by the act except where expressly repealed or amended.