H.B. 1088
GENERAL ASSEMBLY OF NORTH CAROLINA
May 14, 2020
SESSION 2019 HOUSE PRINCIPAL CLERK
H D
HOUSE BILL DRH40560-MCxf-230
Short Title: Invest NC Bond Act of 2020. (Public)
Sponsors: Representative Harris.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO ENACT THE INVEST NC BOND ACT OF 2020.
3 The General Assembly of North Carolina enacts:
4 SECTION 1.(a) Short Title. – This act may be cited as the "Invest NC Bond Act of
5 2020."
6 SECTION 1.(b) Purpose. – It is the intent of the General Assembly by this act to
7 provide, subject to a vote of the qualified voters of the State, for the issuance of three billion nine
8 hundred million dollars ($3,900,000,000) providing funds, with any other available funds, to
9 invest in the State's public facilities, without limitation, construction, repair, renovation, and
10 furnishing of new facilities in order to ensure that the citizens of North Carolina have access to
11 high quality educational facilities, cultural facilities and attractions, and to ensure the viability of
12 water and sewer infrastructure.
13 SECTION 1.(c) Findings. – The General Assembly also finds:
14 (1) There is a documented need of $8.1 billion in need in the construction and
15 renovation of public school facilities.
16 (2) There is a documented need of $16.7 billion in need in water and sewer
17 infrastructure.
18 (3) There is a documented need of $4.4 billion in deficiencies at The University
19 of North Carolina System.
20 (4) Community college facilities are necessary to educate and train the workforce
21 of tomorrow.
22 (5) Community college facilities are necessary to retrain those workers who have
23 been adversely impacted by changing economic conditions.
24 (6) Cultural facilities at the North Carolina Zoological Park and the North
25 Carolina History Museum are key cultural and educational attractions for the
26 citizens of the State.
27 (7) The facilities constructed in this act will benefit all future North Carolinians
28 for decades to come.
29 (8) All facilities are necessary to support the economic vitality of North Carolina.
30 (9) The State has prudently managed its finances.
31 (10) The State has achieved the highest credit rating available by independent
32 credit rating agencies.
33 (11) The debt proposed by this act is affordable and preferable to address the needs
34 of the citizens of the State.
35 SECTION 1.(d) Definitions. – The following definitions apply in this act unless the
36 context otherwise requires:
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 General Assembly Of North Carolina Session 2019
1 (1) Bonds. – Bonds issued under this act.
2 (2) Cost. – The term includes all of the following:
3 a. The cost of constructing, reconstructing, renovating, repairing,
4 enlarging, acquiring, and improving State capital facilities, including
5 the acquisition of land, rights-of-way, easements, franchises,
6 equipment, machinery, furnishings, and other interests in real or
7 personal property acquired or used in connection with a State capital
8 facility.
9 b. The cost of engineering, architectural, and other consulting services as
10 may be required.
11 c. Administrative expenses and charges.
12 d. The cost of providing personnel to ensure effective project
13 management.
14 e. The cost of bond insurance, investment contracts, credit enhancement
15 and liquidity facilities, interest rate swap agreements or other
16 derivative products, financial and legal consultants, and related costs
17 of bond and note issuance, to the extent and as determined by the State
18 Treasurer.
19 f. Finance charges, reserves for debt service, and other types of reserves
20 required pursuant to the terms of any bond or note or related
21 documents, interest before and during construction or acquisition of a
22 State capital facility and, if considered advisable by the State
23 Treasurer, for a period not exceeding two years after the estimated date
24 of completion of construction or acquisition.
25 g. The cost of bond insurance, investment contracts, credit enhancement
26 facilities and liquidity facilities, interest rate swap agreements or other
27 derivative products, financial and legal consultants, and related costs
28 of the incurrence or issuance of any bond or note.
29 h. The cost of reimbursing the State for any payments made for any cost
30 described in this subdivision.
31 i. Any other costs and expenses necessary or incidental to the purposes
32 of this act.
33 (3) Credit facility. – An agreement entered into by the State Treasurer on behalf
34 of the State with a bank, savings and loan association, or other banking
35 institution; an insurance company, reinsurance company, surety company or
36 other insurance institution; a corporation, investment banking firm, or other
37 investment institution; or any financial institution or other similar provider of
38 a credit facility, which provider may be located within or without the United
39 States, such agreement providing for prompt payment of all or any part of the
40 principal or purchase price (whether at maturity, presentment or tender for
41 purchase, redemption, or acceleration), redemption premium, if any, and
42 interest on any bonds or notes payable on demand or tender by the owner, in
43 consideration of the State agreeing to repay the provider of the credit facility
44 in accordance with the terms and provisions of such agreement.
45 (4) Notes. – Notes issued under this act.
46 (5) Par formula. – A provision or formula adopted by the State to provide for the
47 adjustment, from time to time, of the interest rate or rates borne by any bonds
48 or notes, including the following:
49 a. A provision providing for such adjustment so that the purchase price
50 of such bonds or notes in the open market would be as close to par as
51 possible.
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 General Assembly Of North Carolina Session 2019
1 b. A provision providing for such adjustment based upon a percentage or
2 percentages of a prime rate or base rate, which percentage or
3 percentages may vary or be applied for different periods of time.
4 c. Such other provision as the State Treasurer may determine to be
5 consistent with this act and will not materially and adversely affect the
6 financial position of the State and the marketing of bonds or notes at a
7 reasonable interest cost to the State.
8 (6) State. – The State of North Carolina, including any State agency.
9 (7) State agency. – Any agency, institution, board, commission, bureau, council,
10 department, division, officer, or employee of the State. The term does not
11 include counties, municipal corporations, political subdivisions, local boards
12 of education, or other local public bodies.
13 SECTION 1.(e) Authorization of Bonds and Notes. – Subject to a favorable vote of
14 a majority of the qualified voters of the State who vote on the question of issuing public
15 improvement bonds in the election called and held as provided in this act, the State Treasurer is
16 hereby authorized, by and with the consent of the Council of State, to issue and sell, at one time
17 or from time to time, general obligation bonds of the State to be designated "State of North
18 Carolina Public Improvement Bonds," with any additional designations as may be determined to
19 indicate the issuance of bonds from time to time, or notes of the State as provided in this act, in
20 an aggregate principal amount not exceeding three billion nine hundred million dollars
21 ($3,900,000,000) for the purpose of providing funds, with any other available funds, for the
22 purposes authorized in this act.
23 SECTION 1.(f) Use of Public Improvement Bond and Note Proceeds. –
24 (1) Subject to the provision of subdivision (2) of this subsection, the proceeds of
25 public improvement bonds and notes, including premium thereon, if any, shall
26 be used for the projects in the following general amounts set forth below:
27
28 Public Instruction
29
30 Public Schools New Schools, Additions, Renovations $2,000,000,000
31 Capital Assistance
32 Program
33
34 Total for Public Instruction $2,000,000,000
35
36 Water and Sewer Infrastructure
37
38 Department of Water/Sewer Loans and Grants $800,000,000
39 Environmental
40 Quality
41
42 Total for Water and Sewer Infrastructure $800,000,000
43
44 NC Community College
45 Prosperity Zone Projects $200,000,000
46
47 Alamance Comm. College New Construction, Repairs, Renovations 5,208,446
48
49 Asheville-Buncombe New Construction, Repairs, Renovations 7,674,446
50 Technical Comm. College
51
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 General Assembly Of North Carolina Session 2019
1 Beaufort Co. Comm. College New Construction, Repairs, Renovations 3,506,272
2
3 Bladen Comm. College New Construction, Repairs, Renovations 3,274,654
4
5 Blue Ridge Comm. College New Construction, Repairs, Renovations 3,102,116
6
7 Brunswick Comm. College New Construction, Repairs, Renovations 2,835,793
8
9 Caldwell Comm. College New Construction, Repairs, Renovations 5,000,623
10 Technical Institute
11
12 Cape Fear Comm. College New Construction, Repairs, Renovations 7,928,709
13
14 Carteret Comm. College New Construction, Repairs, Renovations 2,216,231
15
16 Catawba Valley Comm. New Construction, Repairs, Renovations 5,937,352
17 College
18
19 Central Carolina Comm. New Construction, Repairs, Renovations 5,923,335
20 College
21
22 Central Piedmont Comm. New Construction, Repairs, Renovations 15,764,095
23 College
24
25 Cleveland Comm. College New Construction, Repairs, Renovations 4,277,918
26
27 College of the Albemarle New Construction, Repairs, Renovations 6,059,511
28
29 Coastal Carolina Comm. New Construction, Repairs, Renovations 4,351,331
30 College
31
32 Craven Comm. College New Construction, Repairs, Renovations 4,069,140
33
34 Davidson County Comm. New Construction, Repairs, Renovations 5,186,257
35 College
36
37 Durham Tech. Comm. New Construction, Repairs, Renovations 5,418,808
38 College
39
40 Edgecombe Comm. College New Construction, Repairs, Renovations 4,522,865
41
42 Fayetteville Tech. Comm. New Construction, Repairs, Renovations 13,136,041
43 College
44
45 Forsyth Tech. Comm. College New Construction, Repairs, Renovations 8,272,056
46
47 Gaston College New Construction, Repairs, Renovations 5,884,411
48
49 Guilford Tech. Comm. New Construction, Repairs, Renovations 12,264,749
50 College
51
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 General Assembly Of North Carolina Session 2019
1 Halifax Comm. College New Construction, Repairs, Renovations 3,479,856
2
3 Haywood Comm. College New Construction, Repairs, Renovations 2,772,246
4
5 Isothermal Comm. College New Construction, Repairs, Renovations 4,176,804
6
7 James Sprunt Comm. New Construction, Repairs, Renovations 2,586,064
8 College
9
10 Johnston Comm. College New Construction, Repairs, Renovations 4,296,762
11
12 Lenoir Comm. College New Construction, Repairs, Renovations 6,238,158
13
14 Martin Comm. College New Construction, Repairs, Renovations 3,596,531
15
16 Mayland Comm. College New Construction, Repairs, Renovations 2,762,350
17
18 McDowell Tech. Comm. New Construction, Repairs, Renovations 2,704,014
19 College
20
21 Mitchell Comm. College New Construction, Repairs, Renovations 3,465,636
22
23 Montgomery Comm. College New Construction, Repairs, Renovations 2,916,279
24
25 Nash Comm. College New Construction, Repairs, Renovations 5,295,128
26
27 Pamlico Comm. College New Construction, Repairs, Renovations 1,852,568
28
29 Piedmont Comm. College New Construction, Repairs, Renovations 3,168,468
30
31 Pitt Comm. College New Construction, Repairs, Renovations 8,555,417
32
33 Randolph Comm. College New Construction, Repairs, Renovations 3,980,619
34
35 Richmond Comm. College New Construction, Repairs, Renovations 4,491,480
36
37 Roanoke-Chowan Comm. New Construction, Repairs, Renovations 3,008,273
38 College
39
40 Robeson Comm. College New Construction, Repairs, Renovations 4,696,470
41
42 Rockingham Comm. College New Construction, Repairs, Renovations 4,286,334
43
44 Rowan-Cabarrus Comm. New Construction, Repairs, Renovations 7,175,882
45 College
46
47 Sampson Comm. College New Construction, Repairs, Renovations 3,024,075
48
49 Sandhills Comm. College New Construction, Repairs, Renovations 4,422,653
50
51 South Piedmont Comm. New Construction, Repairs, Renovations 3,648,592
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 General Assembly Of North Carolina Session 2019
1 College
2
3 Southeastern Comm. New Construction, Repairs, Renovations 4,004,465
4 College
5
6 Southwestern Comm. New Construction, Repairs, Renovations 4,511,990
7 College
8
9 Stanly Comm. College New Construction, Repairs, Renovations 4,115,667
10
11 Surry Comm. College New Construction, Repairs, Renovations 4,972,416
12
13 Tri-County Comm. College New Construction, Repairs, Renovations 2,628,483
14
15 Vance-Granville Comm. New Construction, Repairs, Renovations 5,414,978
16 College
17
18 Wake Tech. Comm. College New Construction, Repairs, Renovations 18,378,704
19
20 Wayne Comm. College New Construction, Repairs, Renovations 5,007,050
21
22 Western Piedmont Comm. New Construction, Repairs, Renovations 4,165,443
23 College
24
25 Wilkes Comm. College New Construction, Repairs, Renovations 4,361,402
26
27 Wilson Comm. College New Construction, Repairs, Renovations 4,023,584
28
29 Total for NC Community Colleges $500,000,000
30
31 The University of North Carolina
32
33 Appalachian State University Wey Hall Renovations $25,200,000
34
35 East Carolina University Howell Science Complex Renovations 38,580,000
36
37 Elizabeth City State Library Replacement 28,800,000
38 University
39
40 Fayetteville State Rosenthal and Chick Building Renovations 13,700,000
41 University
42
43 North Carolina Agricultural C