House committee substitute to the 1st edition makes the following changes.  

Section 1.

No longer adds the provisions comprising the State Infrastructure Bank Board as comprising Part 23 of Article 10 of GS Chapter 143B. Instead, enacts those provisions as part of Article 6 to GS Chapter 147. Makes conforming changes to the statutory citations. 

Changes the administrative location of the State Infrastructure Bank Board (Board) from the Department of Commerce to the Department of the Treasurer (Treasurer) in GS 147-86.5 (was, GS 143B-472.130). Makes technical changes. Defines other infrastructure projects as those that are publicly owned or undertaken through a public-private partnership and that are essential to the health, safety, and economic vitality of the State. Caps loan terms at 30 years in duration unless otherwise approved by a unanimous vote of the Board. Specifies that interest rates cannot be less than 50% of the market AAA municipal bond rate at the time of loan approval, except if federal law requires otherwise or if the Board finds, by a supermajority vote, that a lower rate is necessary to achieve a compelling public interest. Authorizes the Board to (1) provide loans or other financial assistance at interest rates below prevailing market rates (including 0%) if doing so would meet three listed requirements; (2) structure financial assistance packages that combine public and private funds to leverage private investment, including by any of the four listed methods; (3) solicit and receive private capital contributions, co-investments, or subordinated capital for projects meeting State infrastructure objectives so long as the participation meets the three listed requirements, including having safeguards to ensure accountability, transparency, and public benefit; and (4) provide loans to the described local government joint, regional or other entities to undertake infrastructure projects that serve multiple governmental by engaging in any or all of the six listed acts.

Authorizes a council of governments to receive assistance from the State Infrastructure Bank (Bank) if: (1) it is acting as the administrative agent for a joint infrastructure project involving two or more governmental units and (2) it is acting pursuant to an interlocal agreement or joint agency agreement that provides for repayment from pledged revenues or guarantees repayment by the participating governmental units. Proivdes that State (was, Federal) funds for funds credited to the infrastructure banking accounts do not revert. Authorizes the Bank to be capitalized through appropriations from the General Assembly, federal grants, and contributions from private entities. Allows the Board to issue revenue bonds secured by the Bank, subject to approval by the Local Government Commission (LGC) and the Treasurer. Requires the Board to annually propose a standing appropriation to ensure continued capitalization of the Bank to the NCGA. Removes instruction to Board to refrain from modifying the formula for the distribution of funds established by GS 136-189.11. Instead, now provides that nothing in GS 147-86.5 affects the transportation investment strategy formula established under GS 136-189.11. Prevents any funds administered under GS Chapter 159G, including the Clean Water State Revolving Fund and the Drinking Water State Revolving Fund, from being deposited in, transferred to, or otherwise used to capitalize the Bank. Instructs the Board to ensure that those funds remain segregated and administered solely for the purposes set forth in GS Chapter 159G.

Increases the Board’s membership under GS 147-86.6 (was, GS 143B-472.131) from six to ten members, with the new members being appointees by the Governor (2 appointees), the Speaker of the House of Representatives (1 appointee), and the President Pro Tempore of the Senate (1 appointee) with at least ten years of the described experience. Specifies that appointed members will serve four-year terms. Makes technical and conforming changes. Requires the Board to establish a Stakeholder Advisory Committee (Committee) to provide input on infrastructure priorities, financing strategies, and private sector participation, including the two described duties. Requires the Committee to include representatives from the three listed stakeholders along with any other stakeholders as determined by a supermajority of the Board. Directs the Board to convene a joint public meeting with the Committee at least annually and responds to any formal recommendations of the Committee within 60 days of receipt. Increases the specified NCGA committees who should receive the Board’s annual report to four (was, one). Now requires the Board to also submit the report to the Fiscal Research Division with the specified private investment metrics and to list of all loan applications received, loans awarded, and the terms thereof on its website or the Treasurer’s website if it does not have a website. Requires the Board to contract with the described entities to perform a financial and performance audit of the Bank, to be made available to the public. Requires Board members to disclose any potential conflicts of interest and recuse themselves from deliberations and voting on matters if any conflict exists.

Section 4.

Makes technical and conforming changes to new GS 147-69.2(25).

Section 5.

Requires the Bank to submit an initial report to the specified NCGA committee by February 1, 2026, in addition to the report due to all of the specified NCGA committees on July 1, 2026.

Makes conforming organizational changes to the act to account for new Section 5.