FILED SENATE
Apr 6, 2021
GENERAL ASSEMBLY OF NORTH CAROLINA
S.B. 643
SESSION 2021 PRINCIPAL CLERK
S D
SENATE BILL DRS15258-NExf-68A
Short Title: Invest NC Bond Act of 2021. (Public)
Sponsors: Senators Garrett, Batch, and Crawford (Primary Sponsors).
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO ENACT THE INVEST NC BOND ACT OF 2021.
3 The General Assembly of North Carolina enacts:
4 SECTION 1.(a) Short Title. – This section may be cited as the "Invest NC Bond Act
5 of 2021."
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 four billion seven
8 hundred million dollars ($4,700,000,000) 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 health care facilities.
12 SECTION 1.(c) Findings. – The General Assembly also finds:
13 (1) There is a documented need of eight billion one hundred million dollars
14 ($8,100,000,000) in need in the construction and renovation of public school
15 facilities.
16 (2) There is a documented need of four billion four hundred million dollars
17 ($4,400,000,000) in deficiencies at The University of North Carolina System.
18 (3) Community college facilities are necessary to educate and train the workforce
19 of tomorrow.
20 (4) Community college facilities are necessary to retrain those workers who have
21 been adversely impacted by changing economic conditions.
22 (5) Cultural facilities at the North Carolina Zoological Park and the North
23 Carolina History Museum are key cultural and educational attractions for the
24 citizens of the State.
25 (6) State parks are vital to the well-being of all North Carolinians.
26 (7) The facilities constructed in this act will benefit all future North Carolinians
27 for decades to come.
28 (8) All facilities are necessary to support the economic vitality of North Carolina.
29 (9) The State has prudently managed its finances.
30 (10) The State has achieved the highest credit rating available by independent
31 credit rating agencies.
32 (11) The debt proposed by this act is affordable and preferable to address the needs
33 of the citizens of the State.
34 SECTION 1.(d) Definitions. – The following definitions apply in this section unless
35 the context otherwise requires:
36 (1) Bonds. – Bonds issued under this section.
*DRS15258-NExf-68A*
 General Assembly Of North Carolina Session 2021
1 (2) Cost. – The term includes all of the following:
2 a. The cost of constructing, reconstructing, renovating, repairing,
3 enlarging, acquiring, and improving State capital facilities, including
4 the acquisition of land, rights-of-way, easements, franchises,
5 equipment, machinery, furnishings, and other interests in real or
6 personal property acquired or used in connection with a State capital
7 facility.
8 b. The cost of engineering, architectural, and other consulting services as
9 may be required.
10 c. Administrative expenses and charges.
11 d. The cost of providing personnel to ensure effective project
12 management.
13 e. The cost of bond insurance, investment contracts, credit enhancement
14 and liquidity facilities, interest-rate swap agreements or other
15 derivative products, financial and legal consultants, and related costs
16 of bond and note issuance, to the extent and as determined by the State
17 Treasurer.
18 f. Finance charges, reserves for debt service, and other types of reserves
19 required pursuant to the terms of any bond or note or related
20 documents, interest before and during construction or acquisition of a
21 State capital facility and, if considered advisable by the State
22 Treasurer, for a period not exceeding two years after the estimated date
23 of completion of construction or acquisition.
24 g. The cost of bond insurance, investment contracts, credit enhancement
25 facilities and liquidity facilities, interest-rate swap agreements or other
26 derivative products, financial and legal consultants, and related costs
27 of the incurrence or issuance of any bond or note.
28 h. The cost of reimbursing the State for any payments made for any cost
29 described in this subdivision.
30 i. Any other costs and expenses necessary or incidental to the purposes
31 of this section.
32 (3) Credit facility. – An agreement entered into by the State Treasurer on behalf
33 of the State with a bank, savings and loan association, or other banking
34 institution, an insurance company, reinsurance company, surety company or
35 other insurance institution, a corporation, investment banking firm, or other
36 investment institution, or any financial institution or other similar provider of
37 a credit facility, which provider may be located within or without the United
38 States, such agreement providing for prompt payment of all or any part of the
39 principal or purchase price (whether at maturity, presentment or tender for
40 purchase, redemption, or acceleration), redemption premium, if any, and
41 interest on any bonds or notes payable on demand or tender by the owner, in
42 consideration of the State agreeing to repay the provider of the credit facility
43 in accordance with the terms and provisions of such agreement.
44 (4) Notes. – Notes issued under this section.
45 (5) Par formula. – A provision or formula adopted by the State to provide for the
46 adjustment, from time to time, of the interest rate or rates borne by any bonds
47 or notes, including the following:
48 a. A provision providing for such adjustment so that the purchase price
49 of such bonds or notes in the open market would be as close to par as
50 possible.
Page 2 DRS15258-NExf-68A
 General Assembly Of North Carolina Session 2021
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 section, the State Treasurer
16 is hereby authorized, by and with the consent of the Council of State, to issue and sell, at one
17 time 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 section,
20 in an aggregate principal amount not exceeding four billion seven hundred million dollars
21 ($4,700,000,000) for the purpose of providing funds, with any other available funds, for the
22 purposes authorized in this section.
23 SECTION 1.(f) Use of Public Improvement Bond and Note Proceeds. –
24 (1) Subject to the provisions 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 (1a) Subject to the provision of subdivision (2) of this subsection, the proceeds of
28 public improvement bonds and notes, including premium thereon, if any, shall
29 be used for the projects in the following general amounts set forth below:
30
31 Public Instruction
32
33 Public Schools
34 Capital Assistance New Schools, Additions, Renovations $2,500,000,000
35 Total for Public Instruction $2,500,000,000
36
37 Department of Administration
38
39 Relocation of Health and Human Resources Headquarters $229,000,000
40 Total for Department of Administration $229,000,000
41
42 Department of Health and Human Services
43
44 J. Iverson Riddle Developmental Center $60,275,700
45
46 Black Mountain Neuro-medical Center $20,808,000
47
48 Murdoch Developmental Center $50,904,000
49
50 O'Berry Neuro-medical Center $23,833,800
51 Total for Department of Health and Human Services $155,821,500
DRS15258-NExf-68A Page 3
 General Assembly Of North Carolina Session 2021
1
2 Department of Environmental Quality
3
4 Reedy Creek Lab $45,000,000
5 Total for Department of Environmental Quality $45,000,000
6
7 NC Community Colleges
8
9 Alamance Comm. College New Construction, Repairs, Renovations $8,439,444
10
11 Asheville – Buncombe New Construction, Repairs, Renovations $13,582,502
12 Technical Comm. College
13
14 Beaufort Co. Comm. College New Construction, Repairs, Renovations $4,569,429
15
16 Bladen Comm. College New Construction, Repairs, Renovations $5,095,808
17
18 Blue Ridge Comm. College New Construction, Repairs, Renovations $5,049,505
19
20 Brunswick Comm. College New Construction, Repairs, Renovations $5,518,081
21
22 Caldwell Comm. College New Construction, Repairs, Renovations $9,005,483
23 Technical Institute
24
25 Cape Fear Comm. College New Construction, Repairs, Renovations $14,006,275
26
27 Carteret Comm. College New Construction, Repairs, Renovations $3,573,070
28
29 Catawba Valley Comm. New Construction, Repairs, Renovations $9,654,288
30 College
31
32 Central Carolina Comm. New Construction, Repairs, Renovations $9,630,927
33 College
34
35 Central Piedmont Comm. New Construction, Repairs, Renovations $26,152,843
36 College
37
38 Cleveland Comm. College New Construction, Repairs, Renovations $7,800,973
39
40 College of the Albemarle New Construction, Repairs, Renovations $9,857,886
41
42 Coastal Carolina Comm. New Construction, Repairs, Renovations $6,890,271
43 College
44
45 Craven Comm. College New Construction, Repairs, Renovations $6,540,602
46
47 Davidson County Comm. New Construction, Repairs, Renovations $8,402,462
48 College
49
50 Durham Tech. Comm. New Construction, Repairs, Renovations $8,910,697
51 College
Page 4 DRS15258-NExf-68A
 General Assembly Of North Carolina Session 2021
1
2 Edgecombe Comm. College New Construction, Repairs, Renovations $7,176,160
3
4 Fayetteville Tech. Comm. New Construction, Repairs, Renovations $22,564,512
5 College
6
7 Forsyth Tech. Comm. College New Construction, Repairs, Renovations $14,578,518
8
9 Gaston College New Construction, Repairs, Renovations $9,566,053
10
11 Guilford Tech. Comm. New Construction, Repairs, Renovations $20,199,949
12 College
13
14 Halifax Comm. College New Construction, Repairs, Renovations $5,437,813
15
16 Haywood Comm. College New Construction, Repairs, Renovations $5,412,170
17
18 Isothermal Comm. College New Construction, Repairs, Renovations $6,599,393
19
20 James Sprunt Comm. New Construction, Repairs, Renovations $4,981,218
21 College
22
23 Johnston Comm. College New Construction, Repairs, Renovations $7,040,622
24
25 Lenoir Comm. College New Construction, Repairs, Renovations $10,034,982
26
27 Martin Comm. College New Construction, Repairs, Renovations $5,632,270
28
29 Mayland Comm. College New Construction, Repairs, Renovations $5,275,026
30
31 McDowell Tech. Comm. New Construction, Repairs, Renovations $4,265,391
32 College
33
34 Mitchell Comm. College New Construction, Repairs, Renovations $5,655,410
35
36 Montgomery Comm. College New Construction, Repairs, Renovations $3,586,109
37
38 Nash Comm. College New Construction, Repairs, Renovations $8,463,265
39
40 Pamlico Comm. College New Construction, Repairs, Renovations $2,846,315
41
42 Piedmont Comm. College New Construction, Repairs, Renovations $5,039,481
43
44 Pitt Comm. College New Construction, Repairs, Renovations $14,017,730
45
46 Randolph Comm. College New Construction, Repairs, Renovations $7,305,476
47
48 Richmond Comm. College New Construction, Repairs, Renovations $7,123,852
49
50 Roanoke-Chowan Comm. New Construction, Repairs, Renovations $4,651,840
51 College
DRS15258-NExf-68A Page 5
 General Assembly Of North Carolina Session 2021
1
2 Robeson Comm. College New Construction, Repairs, Renovations $7,465,503
3
4 Rockingham Comm. College New Construction, Repairs, Renovations $6,781,942
5
6 Rowan-Cabarrus Comm. New Construction, Repairs, Renovations $12,630,914
7 College
8
9 Sampson Comm. College New Construction, Repairs, Renovations $5,711,235
10
11 Sandhills Comm. College New Construction, Repairs, Renovations $7,250,438
12
13 South Piedmont Comm. New Construction, Repairs, Renovations $7,785,156
14 College
15
16 Southeastern Comm. New Construction, Repairs, Renovations $6,312,161
17 College
18
19 Southwestern Comm. College New Construction, Repairs, Renovations $6,245,628
20
21 Stanly Comm. College New Construction, Repairs, Renovations $6,618,146
22
23 Surry Comm. College New Construction, Repairs, Renovations $7,925,411
24
25 Tri-County Comm. College New Construction, Repairs, Renovations $5,051,916
26
27 Vance-Granville Comm. New Construction, Repairs, Renovations $8,663,015
28 College
29
30 Wake Tech. Comm. College New Construction, Repairs, Renovations $30,510,523
31
32 Wayne Comm. College