GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1995

S	2 

SENATE BILL 606
Second Edition Engrossed 5/2/95

Short Title:  Centennial Authority.	(Public)

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Sponsors: Senator Sherron.

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Referred to:  Finance

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April 6, 1995

A BILL TO BE ENTITLED
AN ACT TO PROVIDE FOR THE CREATION OF FACILITY AUTHORITIES AND TO ESTABLISH THE CENTENNIAL AUTHORITY.
The General Assembly of North Carolina enacts:
Section 1.  Article 20 of Chapter 160A of the General Statutes is amended by adding a new Part to read:
"Part 4.  Facility Authorities.
"§ 160A-480.1.  Short title.
This Part is the 'Facility Authority Act' and may be cited by that name.
"§ 160A-480.2.  Definitions.
The following definitions apply in this Part:
(1)	Authority. – A Facility Authority.
(2)	Credit facility. – An agreement with a banking institution, an insurance institution, an investment institution, or other financial institution located inside or outside the United States of America that provides for prompt payment, whether at maturity, presentment, or tender for purchase, redemption, or acceleration, of part or all of the principal or purchase price, redemption premium, if any, and interest on a bond or note issued by the Authority and for repayment of the institution.
(3)	Member. – A person appointed to a facility authority.
(4)	Par formula. – A provision or formula to make periodic adjustments in the interest rate of a bond or note, including:
a.	A provision for an adjustment to keep the purchase price of the bond or note in the open market as close to par as possible.
b.	A provision for an adjustment based on one or more percentages of a prime rate or base rate that may vary or apply for specified periods of time.
c.	Any other provision that does not materially and adversely affect the financial position of the Authority and the marketing of the bonds or notes at a reasonable interest cost to the Authority.
(5)	Regional facility. – A facility consisting of an arena or other buildings or both, or areas where sports, fitness, health, recreational, entertainment, or cultural activities can be conducted.  The facility may be composed of buildings grouped into complexes or separated from each other and may include ancillary support facilities, such as those for administration, sports science, sports medicine, training, museums, meeting rooms and conference centers, accommodations, and food services.  The facility must be designed to attract to the State as many major regional, national, and international tournaments, events, championships, training centers, training camps, and headquarters for the governance of various sports, associations, and events as possible.
(6)	Special facility. – A conference center, exhibition center, international trade center, performing arts center, coliseum, auditorium, museum, or other similar facilities.
"§ 160A-480.3.  Creation of Authority; additional membership.
(a)	Creation. – An authority may be created only by act of the General Assembly.  An authority so created shall be a political subdivision of the State.  The territorial jurisdiction of the authority shall be a county authorized by the General Assembly to levy a room occupancy tax and a prepared food and beverage tax, and where both those taxes have been levied.
(b)	Membership. – An authority shall have eight members.  Eight members shall be chosen for four-year terms as follows:
(1)	Four shall be appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives in accordance with G.S. 120-121; and
(2)	Four shall be appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate in accordance with G.S. 120-121.
Two of the initial appointments under subdivision (1)	of this subsection and two of the initial appointments under subdivision (2) of this subsection shall be for terms expiring July 1, 1997.  The remaining initial appointments shall be for terms expiring July 1, 1999.  Successors shall be appointed by the same procedure for four-year terms.  Vacancies occurring in the membership of the authority shall be filled by the remaining members.
(c)	The purpose of an authority is to study, design, plan, construct, own, promote, finance, and operate regional facilities and special facilities.
(d)	Charter and bylaws. – The act creating an authority and any amendments to it is the Authority's charter.  The charter of an authority shall include the name of the Authority.  An authority may adopt bylaws which may do any one or more of the following:
(1)	Limit the powers, duties, and functions that the Authority may exercise and perform.
(2)	Prescribe the compensation and allowances, if any, to be paid to the members of the Authority.
(3)	Contain rules for the conduct of Authority business and any other matter pertaining to the organization, powers, and functioning of the Authority that the members consider appropriate.
(e)	Meetings. – An authority shall meet at a time and place agreed upon by its members.  The initial meeting may be called by any four members. At its first meeting, the members shall elect a chairperson and any other officers that the charter may specify or the members may consider advisable.  The Authority shall then adopt bylaws for the conduct of its business.
(f)	Fiscal Accountability. – An authority is a public authority subject to the provisions of Article 3 of Chapter 159 of the General Statutes.
(g)	Conflicts. – If any member, officer, or employee of an Authority shall be:
(1)	Interested either directly or indirectly; or
(2)	An officer or employee of or have an ownership interest in any firm or corporation, not including units of local government, interested directly or indirectly,
in any contract with that Authority, the interest shall be disclosed to the Authority and shall be set forth in the minutes of the Authority.  The member, officer, or employee having an interest shall not participate on behalf of the Authority in the authorization of such contract.  Other provisions of law notwithstanding, failure to take any or all actions necessary to carry out the purposes of this subsection do not affect the validity of any bonds or notes issued under this Chapter.
"§ 160A-480.4.  Powers of an Authority.
An Authority shall have all of the powers necessary or convenient to carry out and effectuate the purposes and provisions of this Part.  These powers may include any one or more of the following:
(1)	To apply for, accept, receive, and dispense funds and grants made available to it by the State or any of its agencies or political subdivisions, the United States, any member unit, or any private entity.
(2)	To study, design, plan, construct, own, and operate regional facilities or special facilities.
(3)	To employ consultants and employees as may be required in the judgment of the Authority, to fix and pay their compensation from funds available to the Authority.  In employing consultants, the Authority shall promote participation by minority businesses.
(4)	To contract with any public or private entity.
(5)	To adopt bylaws for the regulation of its affairs and the conduct of its business, and to adopt rules in connection with the performance of its functions and duties.
(6)	To adopt an official seal.
(7)	To acquire and maintain an administrative building or office.
(8)	To sue and be sued in its own name, and to plead and be impleaded.
(9)	To receive, administer, and comply with the conditions and requirements respecting any gift, grant, or donation of any property or money.
(10)	To acquire by purchase, lease, gift, or otherwise, or to obtain options for the acquisition of, any real or personal property or interest therein.
(11)	To sell, lease, exchange, transfer, or otherwise dispose of, or to grant options for any of these purposes with respect to, any real or personal property or interest therein.
(12)	Subject to the provisions of this Part, to pledge, assign, mortgage, or otherwise grant a security interest in any real or personal property or interest therein, including the right and power to pledge, assign, or otherwise grant a security interest in any money, rents, charges, or other revenues and any proceeds derived by the Authority from any and all sources.
(13)	Subject to the provisions of this Part, to borrow money to finance part or all of a regional facility or a special facility, to issue revenue bonds or notes, to refund any revenue bonds or notes issued by the Authority, or to provide funds for other corporate purposes of the Authority.
(14)	To use officers, employees, agents, and facilities of units of local government or constituent institutions of The University of North Carolina for purposes and upon the terms that are mutually agreeable to between the Authority and the unit or institution.
(15)	To develop and make data, plans, information, surveys, and studies of public facilities within the area where constituent institutions of The University of North Carolina are located, and to prepare and make recommendations in regard thereto.
(16)	To set and collect fees and charges for the use of the regional facilities and special facilities.
(17)	To pay for services rendered by underwriters, financial consultants, or bond attorneys in connection with the issuance of revenue bonds or notes of the Authority out of the proceeds of the bonds or notes.  In employing consultants, underwriters, attorneys, and others, the Authority shall promote participation by minority businesses.
(18)	To exercise the power of eminent domain as provided by G.S. 40A-3(c).
(19)	To enter into agreements and contracts with units of local government pursuant to, and exercise all powers of a unit of local government derived from, Part 1 of Article 20 of this Chapter.  Units of local government may enter into such contracts and agreements with an authority.
(20)	To purchase or finance real or personal property in the manner provided for cities and counties under G.S. 160A-20.
"§ 160A-480.5.  Dissolution of Authority.
The General Assembly may dissolve an authority if all bonds or notes issued by the Authority and all other obligations incurred by the Authority have been fully paid or satisfied.  In such event any assets of the Authority shall become the property of the county authorized to levy a room occupancy and prepared food and beverage tax to be distributed to the Authority.
"§ 160A-480.6.  Construction contracts.
Article 8 of Chapter 143 of the General Statutes applies to a construction contract of an Authority.  An Authority may solicit bids on the basis of separate specifications for the branches or work described in G.S. 143-128(a)	and on a single-prime contract basis and accept the lowest bid.
"§ 160A-480.7.  Seating at regional facility arena.
The Authority shall ensure that at least fifty percent (50%) of the seats for an athletic event that is sponsored by a constituent institution of The University of North Carolina whose principal campus is in the territorial jurisdiction of the authority and is held at the arena of the regional facility are made available to students at that constituent institution and members of the general public.
"§ 160A-480.8.  Bonds.
(a)	Terms. – An Authority may provide for the issuance, at one time or from time to time, of bonds or notes to carry out its corporate purposes.  The principal of, the interest on, and any premium payable upon the redemption of the bonds or notes shall be payable from the proceeds of bonds or renewal notes, or, in the event bond or renewal note proceeds are not available, from any available revenues or other funds provided for this purpose.  The bonds or notes of each issue shall be dated and may be made redeemable prior to maturity at the option of the Authority or otherwise, at one or more prices, on one or more dates, and upon the terms and conditions set by the Authority.  The bonds or notes may also be made payable from time to time on demand or tender for purchase by the owner upon terms and conditions set by the Authority.  Notes and bonds shall mature at times determined by the Authority, not exceeding 40 years from the date of issue.  The Authority shall determine the form and the manner of execution of the bonds or notes, and shall fix the denomination of the bonds or notes and the place of payment of principal and interest.  In case an officer whose signature or a facsimile of whose signature appears on any bonds or notes ceases to be an officer before the delivery of the bond or note, the signature or facsimile shall nevertheless be valid and sufficient for all purposes the same as if the officer had remained in office until delivery.  The Authority may also provide for the authentication of the bonds or notes by a trustee or fiscal agent.
Bonds or notes may be issued under this Part without obtaining, except as otherwise expressly provided in this Part, the consent of any department, division, commission, board, body, bureau, or other agency of the State or of a political subdivision of the State, and without any other proceedings or conditions except as specifically required by this Part or the provisions of the resolution authorizing the issuance of, or any trust agreement securing, the bonds or notes.
Prior to the preparation of definitive bonds, the Authority may issue interim receipts or temporary bonds exchangeable for definitive bonds when the bonds have been executed and are available for delivery.  The Authority may also provide for the replacement of any bonds or notes which have been mutilated, destroyed, or lost.
(b)	Use of Proceeds. – The proceeds of a bond or note shall be used solely for the purposes for which the bond or note was issued and shall be disbursed in accordance with the resolution authorizing the issuance of a bond or note and with any trust agreement securing the bond or note.  If the proceeds of a bond or note of any issue, by reason of increased construction costs or error in estimates or otherwise, is less than the cost, additional bonds or notes may in like manner be issued to provide the amount of the deficiency.
(c)	Security. – Bonds or notes issued by an Authority may be secured in one or more of the following ways:
(1)	By the revenues of the regional facility or special facility.
(2)	By debt service subsidy payments.
(3)	By security interests in real or personal property acquired with the proceeds of the bonds or notes or improved with the proceeds of the bonds or notes.
(4)	By receipts from a room occupancy and prepared food and beverage tax levied by a county and distributed to the Authority.
The security for the bonds or notes shall be specified in the resolution or trust instrument authorizing the bonds or notes.
(d)	Revenues. – The Authority may pledge to the payment of its revenue bonds or notes the revenues from the regional facility or special facility, including revenues from improvements, betterments, or extensions to the facility.  The Authority may establish, maintain, revise, charge, and collect such rates, fees, rentals, or other charges for the use, services, and facilities of or furnished by a regional facility or special facility and provide methods of collection of and penalties for nonpayment of these rates, fees, rentals, or other charges.  Except as otherwise permitted, the rates, fees, rentals, and charges fixed and charged shall be in an amount that will produce sufficient revenues, with any other available funds, to meet the maintenance and operation expenses of the regional facility or special facility as well as any improvements and renewals and replacements to the facility, including reserves to pay the principal, interest, and redemption premium due, if any, on any bonds or notes secured by the facility, and to fulfill the terms of any agreements made by the Authority with the holders of bonds or notes secured by revenues of the facility.  In the event that bonds or notes are to be secured by the revenues of the regional facility or special facility or by debt service subsidy payments, the Authority may adjust the rates, fees, and charges to be collected to reflect the anticipated receipt of funds from debt service subsidy payments.
(e)	Security Interests. – Bonds or notes may be secured by security interests in any real or personal property either acquired with the proceeds of bonds or notes, or upon which improvements are provided from the proceeds of bonds or notes.  The security interest may cover all real and personal property acquired or improved or any portion of the property.  The Authority is authorized to enter into deeds of trust, mortgages, security agreements, and similar instruments as shall be necessary to carry out the powers in this subsection.  Bonds or notes may also be secured by security interests in any real or personal property conveyed to the Authority by any of its member units or any other person.
In the event the Authority fails to perform its obligations with respect to the bonds or notes and foreclosure or similar sale of property subject to a security interest occurs, a deficiency judgment may not be rendered against the Authority except to the extent that the deficiency is payable from either revenues from the regional facility or special facility or from any revenues dedicated by act of the General Assembly to the Authority.
(f)	Tax Support. – Bonds or notes may be secured by the receipts from a room occupancy and prepared food and beverage tax levied by a county and distributed to the Authority.
(g)	Issuance. – The issuance of bonds or notes of the Authority is subject to the approval of the Local Government Commission.  Upon the filing with the Local Government Commission of a resolution of the Authority requesting that its bonds or notes be sold, the Commission shall determine the manner in which the bonds or notes will be sold and the price or prices at which the bonds or notes will be sold.  In determining whether to approve a proposed bond or note issue of the Authority, the Local Government Commission shall consider the criteria for approval of revenue bonds under G.S. 159-86.  The Local Government Commission shall approve the proposed issue if it determines the bond or note issue will meet such criteria and will effect the purposes of this Part.  With the approval of the Authority, the Local Government Commission shall sell the bonds or notes either at public or private sale in the manner and at the prices determined to be in the best interests of the Authority and to effect the purposes of this Part.
(h)	Certification of Approval. – Each bond or note that is represented by an instrument shall contain a statement signed by the Secretary of the Local Government Commission, or an assistant designated by the Secretary, certifying that the issuance of the bond or note has been approved under this Chapter.  The signature may be a manual signature or a facsimile signature, as determined by the Local Government Commission.  Each bond or note that is not represented by an instrument shall be evidenced by a writing relating to the obligation that identifies the obligation or the issue of which it is a part, contains the signed statement certifying approval of the Local Government Commission that is required on an instrument, and is filed with the Local Government Commission.  A certification of approval by the Local Government Commission is conclusive evidence that a bond or note complies with this Chapter.
(i)	State Pledge. – The State pledges to the holder of a bond or note issued under this Chapter that, as long as the bond or note is outstanding and unpaid, the State will not limit or alter the power the Authority had when the bond or note was issued in a way that impairs the ability of the Authority to produce revenues sufficient with other available funds to do all of the following:
(1)	Maintain and operate the facility for which the bond or note was issued.
(2)	Pay the principal of, interest on, and redemption premium, if any, of the bond or note.
(3)	Fulfill the terms of an agreement with the holder.
The State further pledges to the holder of a bond or note issued under this Chapter that the State will not impair the rights and remedies of the holder concerning the bond or note.
(j)	Investment Securities. – All bonds and notes and interest coupons, if any, issued under this Chapter are made investment securities within the meaning of and for all the purposes of Article 8 of the Uniform Commercial Code, as enacted in Chapter 25 of the General Statutes.
(k)	Details of Bonds or Notes. – In fixing the details of bonds or notes, the Authority may provide that the bonds or notes may:
(1)	Be payable from time to time on demand or tender for purchase by the owner of the bond or note if a credit facility supports the bond or note, unless the Local Government Commission specifically determines that a credit facility is not required because the absence of a credit facility will not materially and adversely affect the financial position of the Authority and the marketing of the bonds or notes at a reasonable interest cost to the Authority.
(2)	Be additionally supported by a credit facility.
(3)	Be made subject to redemption or a mandatory tender for purchase prior to maturity.
(4)	Be capital appreciation bonds.
(5)	Bear interest at a rate or rates that may vary, including variations permitted pursuant to a par formula.
(6)	Be made the subject of a remarketing agreement whereby an attempt is made to remarket the bonds or notes to new purchasers prior to their presentment for payment to the provider of the credit facility or to the Authority.
(l)	Basis of Investment. – In connection with or incidental to the acquisition or carrying of any investment relating to bonds, program of investment relating to bonds, or carrying of bonds, the Authority may, with the approval of the Local Government Commission, enter into a contract to place the investment or obligation of the Authority, as represented by the bonds, investment, or program of investment and the contract or contracts, in whole or in part, on an interest rate, currency, cash flow, or other basis, including the following:
(1)	Interest rate swap agreements, currency swap agreements, insurance agreements, forward payment conversion agreements, and futures.
(2)	Contracts providing for payments based on levels of, or changes in, interest rates, currency exchange rates, or stock or other indices.
(3)	Contracts to exchange cash flows or a series of payments.
(4)	Contracts to hedge payment, currency, rate, spread, or similar exposure, including interest rate floors or caps, options, puts, and calls.
The Authority may enter a contract of this type in connection with, or incidental to, entering into or maintaining any agreement that secures bonds.  A contract shall contain the payment, security, term, default, remedy, and other terms and conditions the Board considers appropriate.  The Authority may enter a contract of this type with any person after giving due consideration, where applicable, of the person's creditworthiness as determined by a rating by a nationally recognized rating agency or any other criteria the Board considers appropriate.  In connection with, or incidental to, the issuance or carrying of bonds, or the entering of any contract described in this subsection, the Authority may enter into credit enhancement or liquidity agreements, with payment, interest rate, termination date, currency, security, default, remedy, and other terms and conditions as the Authority determines.  Proceeds of bonds and any moneys set aside and pledged to secure payment of bonds or any of the contracts entered into under this subsection may be pledged to and used to service any of the contracts entered into under this section.
"§ 160A-480.9.  Trust agreement or resolution.
In the discretion of the Authority, any bonds or notes issued under this Part may be secured by a trust instrument between the Authority and a bank or trust company or individual within the State, or a bank or a trust company outside the State, as trustee.  The trust instrument or the resolution of the Authority authorizing the issuance of bonds or notes may pledge and assign all or any part of the revenues, funds, and other property provided for the security of the bonds, including proceeds from the sale of any project, or part thereof, insurance proceeds, and condemnation awards, and may convey or mortgage property to secure a bond issue as provided in this Part.
The revenues and other funds derived from the project, except any part thereof that may be necessary to provide reserves therefor, if any, shall be set aside at regular intervals as may be provided in the resolution or trust instrument in a sinking fund which may be thereby pledged to, and charged with, the payment of the principal of and the interest on the bonds or notes as they become due and of the redemption price or the purchase price of bonds retired by call or purchase as therein provided.  This pledge shall be valid and binding from the time the pledge is made.  The revenues so pledged and thereafter received by the Authority shall immediately be subject to the lien of the pledge without any physical delivery thereof or further act, and the lien of the pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the Authority, irrespective of whether the parties have notice of the pledge.  The use and disposition of money to the credit of such sinking fund shall be subject to the provisions of the resolution or trust instrument.  The resolution or trust instrument may contain provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law, including, without limitation, any one or more of the following:
(1)	Acceleration of all amounts payable under the resolution or trust instrument.
(2)	Appointment of a receiver to manage the project and any other property mortgaged or assigned as security for the bonds.
(3)	Foreclosure and sale of the project and any other property mortgaged or assigned as security for the bonds.
(4)	Rights to bring and maintain other actions at law or in equity as may appear necessary or desirable to collect the amounts payable under, or to enforce the covenants made in, the security document.
It shall be lawful for any bank or trust company incorporated under the laws of this State which may act as depository of the proceeds of bonds, revenues, or other funds provided under this Part to furnish such indemnifying bonds or to pledge such securities as may be required by the Authority.  All expenses incurred in carrying out the provisions of the resolution or trust instrument may be treated as a part of the cost of the project in connection with which bonds or notes are issued or as an expense of administration of the project.
The Authority may subordinate bonds or notes to any prior, contemporaneous, or future securities or obligations or lien, mortgage, or other security interest securing bonds or notes.
Any owner of bonds or notes issued under the provisions of this Part or any coupons appertaining thereto, and the trustee under any trust agreement securing or resolution authorizing the issuance of such bonds or notes, except to the extent the rights given may be restricted by the trust agreement or resolution, may either at law or in equity, by suit, action, mandamus, or other proceeding, protect and enforce any and all rights under the laws of the State or granted hereunder or under the trust agreement or resolution, or under any other contract executed by the Authority pursuant to this Chapter; and may enforce and compel the performance of all duties required by this Part or by the trust agreement or resolution by the Authority or by any officer of the Authority.
"§ 160A-480.10.  Trust funds.
Notwithstanding any other provision of law to the contrary, all money received pursuant to the authority of this Part, whether as proceeds from the sale of bonds or notes or as revenues, shall be deemed to be trust funds to be held and applied solely as provided in this Part.  The resolution authorizing the issuance of, or the trust agreement securing, any bonds or notes may provide that any of these moneys may be temporarily invested and reinvested pending their disbursement and shall provide that any officer with whom, or any bank or trust company with which, the moneys shall be deposited shall act as trustee of the moneys and shall hold and apply the moneys for the purpose hereof, subject to any regulations this Part and the resolution or trust agreement may provide.  Any of these moneys may be invested as provided in G.S. 159-30, as it may be amended from time to time.
"§ 160A-480.11.  Faith and credit of State and units of local government not pledged.
Bonds or notes issued under this Part shall not constitute a debt secured by a pledge of the faith and credit of the State or a political subdivision of the State and shall be payable solely from the revenues, property, and other funds pledged for their payment.  The bonds or notes issued by an Authority shall contain a statement that the Authority is obligated to pay the bond or note or the interest on the bond or note only from the revenues, property, or other funds pledged for their payment and that neither the faith and credit nor the taxing power of the State or any political subdivision of the State is pledged as security for the payment of the principal of or the interest or premium on the bonds or notes.
"§ 160A-480.12.  Revenue refunding bonds.
The Authority may issue refunding bonds or notes for one or more of the following purposes:
(1)	Refunding any outstanding bonds or notes issued under this Part, including any redemption premium on the bonds or notes and any interest accrued or to accrue to the date of redemption.
(2)	Constructing improvements, additions, extensions or enlargements of the project, or projects in connection with which the bonds or notes to be refunded have been issued.
(3)	Paying all or any part of the cost of any additional project or projects.
Refunding bonds or notes shall be issued in accordance with the same procedures and requirements as bonds or notes.  Refunding bonds issued under this section may be sold or exchanged for outstanding bonds or notes issued under this Part and, if sold, the proceeds of the refunding bonds may be applied, in addition to any authorized purposes, to the purchase, redemption, or payment of outstanding bonds or notes.
Pending the application of the proceeds of refunding bonds, with any other available funds, to the payment of the principal of and accrued interest and any redemption premium on the bonds or notes being refunded, and, if so provided or permitted in securing the same, to the payment of any interest on such refunding bonds and any expenses in connection with such refunding, such proceeds may be invested in direct obligations of, or obligations the principal of and the interest on which are unconditionally guaranteed by, the United States of America which shall mature or which shall be subject to redemption by the holder thereof, at the option of such holder, not later than the respective dates when the proceeds, together with the interest accruing thereon, will be required for the purposes intended.
"§ 160A-480.13.  Bonds eligible for investment.
Bonds and notes issued under this Part are hereby made securities in which all public officers, agencies, and public bodies of the State and its political subdivisions, all insurance companies, trust companies, investment companies, banks, savings banks, building and loan associations, credit unions, pension or retirement funds, other financial institutions engaged in business in the State, executors, administrators, trustees, and other fiduciaries may properly and legally invest funds, including capital in their control or belonging to them.  These bonds or notes are hereby made securities that may properly and legally be deposited with and received by any officer or agency of the State or political subdivision of the State for any purpose for which the deposit of bonds, notes, or obligations of the State or any political subdivision of the State is authorized by law.  This section does not apply to any State pension or retirement fund or a pension or retirement fund of a political subdivision of the State.
"§ 160A-480.14.  Taxation of revenue bonds.
Any bonds or notes issued by an Authority under the provisions of this Part, and the interest thereon, are exempt from State income taxes to the same extent that federal bonds or notes, and the interest thereon, are exempt from State income taxes.
"§ 160A-480.15.  Members and officers not liable.
No member or officer of an Authority shall be subject to any personal liability or accountability by reason of the execution of any bonds or notes or the issuance of any bonds or notes."
Sec. 2.  G.S. 40A-3(c) is amended by adding a new subdivision to read:
"(9a)	A facility authority established under Part 4 of Article 20 of Chapter 160A of the General Statutes for purposes authorized by that Part."
Sec. 3.  G.S. 120-123 is amended by adding a new subdivision to read:
"(63)	A facility authority established under Part 4 of Article 20 of Chapter 160A of the General Statutes."
Sec. 4.  There is hereby established the Centennial Authority, which is a facility authority under Part 4 of Article 20 of Chapter 160A of the General Statutes.  The territorial jurisdiction of the Centennial Authority, as provided by G.S. 160A-480.3(a), is Wake County.
Sec. 5.  Chapter 594 of the 1991 Session Laws reads as rewritten:
"AN ACT TO AUTHORIZE WAKE COUNTY TO LEVY A ROOM OCCUPANCY TAX AND A PREPARED FOOD AND BEVERAGE TAX.
"Section 1.  Intent. – This act authorizes Wake County to levy a room occupancy tax and a prepared food and beverage tax.
"Sec. 2.  Definitions. – The definitions in G.S. 105-164.3 apply to this act to the extent they are not inconsistent with the provisions of this act.  The following definitions also apply in this act:
(1)	Financing.  Debt service, lease payments, or any other obligations or means of supporting capital costs, together with any related reserve requirements.
(2)	Net proceeds.  The gross proceeds of the taxes levied pursuant to this act less any refunds and the cost to the county of administering and collecting the taxes.
(3)	Prepared food and beverage.  Any food or beverage to which a retailer has added value or has altered its state (other than by cooling alone) by preparing, combining, dividing, heating, or serving, in order to make the food or beverage available for immediate human consumption.
(4)	Retailer.  A caterer or a retailer as defined in G.S. 105-164.3 as in effect on the effective date of this act.
(5)	Taxable establishment.  A hotel, motel, inn, tourist camp, or similar place that is subject to a room occupancy tax levied pursuant to this act and a retailer that sells prepared food or beverages and is subject to the prepared food and beverage tax levied pursuant to this act.
"Sec. 3.  Sales and Use Tax Statutes. – The provisions of Article 5 and Article 9 of Chapter 105 of the General Statutes apply to this act to the extent they are not inconsistent with the provisions of this act.
"Sec. 4.  Occupancy Tax. – The Wake County Board of Commissioners may, by resolution, levy a room occupancy tax of up to six percent (6%) of the gross receipts derived from the rental of any room, lodging, or accommodation furnished by a hotel, motel, inn, tourist camp, or similar place within the county that is subject to the State sales tax imposed under G.S. 105-164.4(a)(3).  This tax does not apply to accommodations furnished by nonprofit charitable, educational, benevolent, or religious organizations when furnished in furtherance of their nonprofit purpose or to accommodations furnished to the same person for at least 90 consecutive days.  Before levying the tax authorized in this section, the board of commissioners must hold a public hearing on the tax.  Notice of the public hearing shall be advertised at least 10 days, but not more than 25 days, before the scheduled date of the hearing.  The revision of this act by AN ACT TO PROVIDE FOR THE CREATION OF FACILITY AUTHORITIES AND TO ESTABLISH THE CENTENNIAL AUTHORITY does not affect the previous levying of the tax under this section, and no new hearings or resolutions are required.
"Sec. 5.  Prepared Food and Beverage Tax. – The Wake County Board of Commissioners may, by resolution, levy a prepared food and beverage tax of up to one percent (1%) of the sales price of prepared food and beverages sold at retail for consumption on or off the premises by any retailer within the county that is subject to sales tax imposed by the State under G.S. 105-164.4(a)(1).  Before levying the tax authorized in this section, the board of commissioners must hold a public hearing on the tax.  Notice of the public hearing shall be advertised at least 10 days, but not more than 25 days, before the scheduled date of the hearing.  The revision of this act by AN ACT TO PROVIDE FOR THE CREATION OF FACILITY AUTHORITIES AND TO ESTABLISH THE CENTENNIAL AUTHORITY does not affect the previous levying of the tax under this section, and no new hearings or resolutions are required.
"Sec. 6.  Exemptions and Refunds – (a)	Exemptions. – The prepared food and beverage tax does not apply to the following sales of prepared food and beverages:
(1)	Prepared food and beverages served to residents in boarding houses and sold together on a periodic basis with rental of any sleeping room or lodging.
(2)	Retail sales exempt from taxation under G.S. 105-614.13 on the effective date of this act.
(3)	Retail sales through or by means of vending machines.
(4)	Prepared food and beverages served by any taxable establishment subject to the occupancy tax levied pursuant to this act if the charge for the prepared food or beverages is included in a single, nonitemized sales price together with the charge for rental of a room, lodging, or accommodation furnished by the taxable establishment.
(5)	Prepared food and beverages furnished without charge by an employer to any employee.
(6)	Retail sales by grocers or by grocery sections of supermarkets or other diversified retail establishments other than sales of prepared food and beverages in the delicatessen or similar department of the grocer or grocery section.
(b)	Refunds. – The county shall refund to a nonprofit or governmental entity the prepared food and beverage tax paid by the entity on eligible purchases of prepared food and beverages.  A nonprofit or governmental entity's purchase of prepared food and beverages is eligible for a refund under this subsection if the entity is entitled to a refund under G.S. 105-164.14 of local sales and use tax paid on the purchase.  The time limitations, application requirements, penalties, and restrictions provided in G.S. 105-164.14(b) and (d) shall apply to refunds to nonprofit entities; the time limitations, application requirements, penalties, and restrictions provided in G.S. 105-164.14(c), (d), and (e) shall apply to refunds to governmental entities.  When an entity applies for a refund of the prepared food and beverage tax paid by it on purchases, it shall attach to its application a copy of the application submitted to the Department of Revenue under G.S. 105-164.14 for a refund of the sales and use tax on the same purchases.  An applicant for a refund under this subsection shall provide any information required by the county to substantiate the claim.
"Sec. 7.  Date of Levy. – A tax levied under this act shall become effective on the date specified in the resolution or ordinance levying the tax.  The levy of the prepared food and beverage tax may not become effective before January 1, 1993.
"Sec. 8.  Collection. – Every operator of a taxable establishment shall, on and after the effective date of the levy of a tax under this act, collect the tax.  The tax shall be stated and charged separately from the rental charge or sales price, shall be shown separately on the taxable establishment's sales records, and shall be paid by the purchaser to the taxable establishment as trustee for and on account of the county.  The tax shall be added to the rental charge or sales price and shall be passed on to and collected from the purchaser instead of being borne by the taxable establishment.
For the convenience of each retailer and to facilitate the administration of this act, the county shall determine the amount to be added to the sales price of all sales subject to the prepared food and beverage tax.  The amounts shall be set forth in a bracket system and distributed to each retailer responsible for collecting the prepared food and beverage tax.  The use of the bracket system does not relieve the retailer from the duty and liability of collecting and remitting to the local administrative authority an amount equal to the prepared food and beverage tax levied by the county.
"Sec. 9.  Administration. – The county shall administer and collect the taxes levied pursuant to this act.  
The taxes levied pursuant to this act are due and payable to the county in monthly installments on or before the fifteenth day of the month following the month in which the tax accrues.  Every taxable establishment liable for the tax shall, on or before the fifteenth day of each month, prepare and render a return to the county.  The county shall design, print, and furnish on request to all taxable establishments the necessary forms for filing returns and instructions to ensure the full collection of the tax.
Returns filed with the county pursuant to this act are not public records as defined by G.S. 132-1 and may not be disclosed except as required by law.
"Sec. 10.  Distribution and Use of Tax Proceeds. – (a)	Initial Deductions. –The county may deduct from the gross proceeds of the taxes collected pursuant to this act an amount equal to the direct cost of administering and collecting the taxes, as determined by the county.  
(b)	Monthly Distributions; Use. – The county shall distribute the net proceeds of the taxes levied under this act on a monthly basis to the Centennial Authority created by the General Assembly under Part 4 of Article 20 of Chapter 160A of the General Statutes.  The county shall make the distribution provided in this subsection by the twentieth day of the month following the month in which the tax is collected.
		The Centennial Authority shall use the amounts distributed to it under this act only to fund all or part of the acquisition, construction, financing, debt servicing, maintenance, operation, or promotion of regional facilities or special facilities (or both) as defined by G.S. 160A-480.2, to provide off-street parking facilities for use in conjunction with these facilities, and to promote visitor-related activities. 
																											"							"Sec. 16.  Penalties. – A person, firm, corporation, or association who fails or refuses to file a return and pay the tax due under this act is subject to the civil and criminal penalties set by G.S. 105-236 for failure to pay or file a return for State sales and use taxes.  The Wake County Board of Commissioners has the same authority to waive the penalties for a tax levied under this act that the Secretary of Revenue has to waive the penalties for State sales and use taxes.
"Sec. 17.  Authority to Contract. –The Centennial Authority may contract with any person, agency, association, or nonprofit corporation to undertake or carry out the activities and programs for which the proceeds may be expended.  All contracts entered into pursuant to this section shall require an annual financial audit of any funds expended and a performance audit of contractual obligations.
"Sec. 18.  Effect on existing taxes. – The levy of a tax pursuant to this act repeals the authority of the county or a unit of local government in Wake County to enact an occupancy tax under any other local act.
"Sec. 19.  Repeal. – The taxes levied pursuant to this authority may be repealed by the county by enacting an ordinance of repeal.  No such repeal shall be effective until at least 180 days after the passage of the repeal ordinance.  Repeal of a tax levied under this act does not affect a liability for a tax that was attached before the effective date of the repeal, nor does it affect a right to a refund of a tax that accrued before the effective date of the repeal.
"Sec. 20.  This act is effective upon ratification."
Sec. 6.  The provisions of this act are severable.  If any provision of this act is declared invalid by a court, the invalidity does not affect other provisions or applications of this act that can be given effect without the invalid provision or application.
Sec. 6.1.  G.S. 105-164.14(c) is amended by adding a new subdivision to read:
"(21)	A facility authority created in Part 4 of Article 20 of Chapter 160A of the General Statutes."
Sec. 7.  Section 5 of this act becomes effective July 1, 1995, and applies to taxes that accrue on or after that date.  Funds received under Chapter 594 of the 1991 Session Laws for taxes accruing before July 1, 1995, which are not already encumbered by units of local government shall be transferred to the Centennial Authority to be used for purposes authorized by Chapter 594 of the 1991 Session Laws at the time the tax accrued.  The remainder of this act is effective upon ratification.