Bill Summary for S 265 (2021)

Summary date: 

Jun 28 2022

Bill Information:

View NCGA Bill Details2021
Senate Bill 265 (Public) Filed Thursday, March 11, 2021
AN ACT TO INCREASE THE TRANSPARENCY OF BOND REFERENDA BY REQUIRING ADDITIONAL DISCLOSURES BY UNITS OF LOCAL GOVERNMENT, TO MAKE CHANGES RECOMMENDED BY THE LOCAL GOVERNMENT COMMISSION TO STRENGTHEN THE SYSTEM FOR MONITORING THE FINANCIAL OPERATIONS OF LOCAL UNITS AND OVERSIGHT OF FISCALLY TROUBLED LOCAL UNITS, AS DIRECTED BY THE CURRENT OPERATIONS APPROPRIATIONS ACT OF 2021, AND TO AUTHORIZE CHARTER SCHOOLS TO PARTICIPATE IN THE STATE TREASURER'S ANCILLARY GOVERNMENTAL PARTICIPANT INVESTMENT PROGRAM.
Intro. by Johnson, Ford.

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Bill summary

House committee substitute to the 3rd edition adds the following content.

Amends GS 115C-218.15 by enacting new (f) allowing funds received by a charter school under GS 115C-218.105 (concerning the allocation of State and local funds for a charter school), to be deposited with the State Treasurer for investment under GS 147-69.2(b8), to the extent allowed by the Internal Revenue Code. Deems the deposit and investment of these funds essential to providing public education in the state and the income from the investment to accrue solely to the charter school for providing public education. 

Amends GS 147-69.2, concerning investments authorized for special funds held by the State Treasurer, by making the statute also applicable to funds held by the State Treasurer to the credit of funds deposited with the State Treasurer by charter schools under GS 115C-218.15(f). Enacts new (b8) to allow the State Treasure to invest those funds in any of the investments authorized under (b)(6C) and (b)(8) of the statute, notwithstanding the listed percentage limitations. Under (b)(8)  the assets of the Teachers' and State Employees' Retirement System, the Consolidated Judicial Retirement System, the Firefighters' and Rescue Workers' Pension Fund, the Local Governmental Employees' Retirement System, the Legislative Retirement System, the North Carolina National Guard Pension Fund, the Registers of Deeds' Supplemental Pension Fund, and the Retiree Health Benefit Fund may be invested in a strategy composed primarily of equity securities traded on a public securities exchange or market organized and regulated pursuant to the laws of the jurisdiction of the exchange or market and issued by any company incorporated or otherwise created or located within or outside the United States as long as the investments meet the specified conditions of this subdivision. Under (b)(6C), those Retirement Systems' assets may be invested, within or outside the United States, in obligations, debt securities, and asset-backed securities, whether considered debt or equity, including obligations and securities convertible into other securities, that do not meet the requirements of any of subdivisions (b)(1) through (6) or (b)(7) of the statute. Allows the State Treasurer, for investments under 9b(6c) and (b)(8), to require a minimum deposit of up to $50,000 and assess reasonable fees of up to 15 basis points per annum; allows the fees to be used to defray investment administration costs and for expenditures authorized by the statute.

Amends GS 115C-218.100, which requires a charter school participating in the North Carolina Retirement System to, as long as it continues to participate, maintain one of the specified options for the purpose of ensuring payment of expenses related to closure proceedings in the event of a dissolution of the charter school. Expands upon those options to now also include the deposit of funds with the State Treasurer for investment under GS 147-69.2(b8); deems these funds and any income they earn as State Funds that are to be used solely for providing public education and deems the deposit and investment of these funds as essential to the provision of public education by the State.

Amends GS 147-69.3 (concerning the administration of State Treasurer's investment programs) to allow charter schools having custody of funds not required to be deposited with and invested by the State Treasurer to deposit all or any portion of those funds with the State Treasurer for investment in one of the investment programs established under the statute. 

Amends GS 159-30 to allow a charter school to make contributions to a Local Government Other Post-Employment Benefits Trust.

Amends GS 159-30.1 by adding a charter school to those entities allowed to establish and fund an irrevocable trust for the purpose of paying: (1) post-employment benefits for which the entity is liable or (2) contribution-based benefit cap liability to the Local Government Employees' Retirement System. Adds the requirement that the irrevocable trust designate the monies deposited in the trust, and any income earned thereon, as governmental funds to be used solely for an essential governmental purpose.

Changes the act's long title.

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