A BILL TO BE ENTITLED
AN ACT TO AUTHORIZE THE ISSUANCE OF GENERAL OBLIGATION BONDS OF THE STATE, SUBJECT TO A VOTE OF THE QUALIFIED VOTERS OF THE STATE, AND TO PROVIDE FUNDS FOR GRANTS TO COUNTIES FOR PUBLIC SCHOOL CAPITAL OUTLAY PROJECTS.
The General Assembly of North Carolina enacts:
SECTION 1.  This act is entitled "The Public School Building Bond Act of 2007."
SECTION 2.  Purpose. – It is the intent of the General Assembly by this act to provide for the issuance of two billion dollars ($2,000,000,000) general obligation bonds of the State to facilitate the provision of public school buildings by making grants to counties to provide funds for public school capital outlay projects.
SECTION 3.  Definitions. – As used in this act, unless the context otherwise requires:
(1)	"Bonds" means bonds issued under this act.
(2)	"Cost" means, without intending thereby to limit or restrict any proper definition of this term in financing the cost of public school capital outlay projects authorized by this act:
a.	The cost of constructing, reconstructing, enlarging, acquiring, and improving projects, and acquiring equipment and land therefor,
b.	The cost of engineering, architectural, and other consulting services as may be required,
c.	Administrative expenses and charges,
d.	Finance charges and interest prior to and during construction and, if deemed advisable by the State Treasurer, for a period not exceeding two years after the estimated date of completion of construction,
e.	The cost of bond insurance, investment contracts, credit enhancement and liquidity facilities, interest‑rate swap agreements or other derivative products, financial and legal consultants, and related costs of bond and note issuance, to the extent and as determined by the State Treasurer,
f.	The cost of reimbursing the State for any payments made for any cost described above, and
g.	Any other costs and expenses necessary or incidental to the purposes of this act.
Allocations in this act of proceeds of bonds to the costs of a project or undertaking in each case may include allocations to pay the costs set forth in items c., d., e., f., and g. in connection with the issuance of bonds for the project or undertaking.
(3)	"Credit facility" means an agreement entered into by the State Treasurer on behalf of the State with a bank, savings and loan association, or other banking institution, an insurance company, reinsurance company, surety company, or other insurance institution, a corporation, investment banking firm, or other investment institution, or any financial institution or other similar provider of a credit facility, which provider may be located within or without the United States of America, such agreement providing for prompt payment of all or any part of the principal or purchase price (whether at maturity, presentment or tender for purchase, redemption, or acceleration), redemption premium, if any, and interest on any bonds or notes payable on demand or tender by the owner, in consideration of the State agreeing to repay the provider of the credit facility in accordance with the terms and provisions of such agreement.
(4)	"Notes" means notes issued under this act.
(5)	"Par formula" means any provision or formula adopted by the State to provide for the adjustment, from time to time, of the interest rate or rates borne by any bonds or notes, including:
a.	A provision providing for such adjustment so that the purchase price of such bonds or notes in the open market would be as close to par as possible,
b.	A provision providing for such adjustment based upon a percentage or percentages of a prime rate or base rate, which percentage or percentages may vary or be applied for different periods of time, or
c.	Such other provision as the State Treasurer may determine to be consistent with this act and will not materially and adversely affect the financial position of the State and the marketing of bonds or notes at a reasonable interest cost to the State.
(6)	"Public School Capital Outlay Projects" means the construction of new public school buildings or the renovation of existing public school buildings, the purchase of equipment for a newly constructed public school building or equipment related to the improvement of an existing public school building including but not limited to technology equipment and infrastructure, the purchase of land necessary for immediate construction of school buildings, and other related capital outlay projects constituting facilities for individual schools that are used for instructional and related purposes, but not including centralized administration, maintenance, trailers, relocatable classrooms, or mobile classrooms.
(7)	"State" means the State of North Carolina.
SECTION 4.  Authorization of Bonds and Notes. – Subject to a favorable vote of a majority of the qualified voters of the State who vote on the question of issuing 2007 Public School Building Bonds in the election held as provided in this act, the State Treasurer is authorized, by and with the consent of the Council of State, to issue and sell, at one time or from time to time, general obligation bonds of the State to be designated "State of North Carolina 2007 Public School Building Bonds", with any additional designations as may be determined to indicate the issuance of bonds from time to time, or notes of the State as provided in this act, in the aggregate principal amount not exceeding two billion dollars ($2,000,000,000) for the purposes authorized in this act.  The principal amounts of bonds or notes issued in any 12‑month period shall not exceed five hundred million dollars ($500,000,000).  In determining whether this limit has been reached, the issuance of a note or bond to pay an outstanding note is not considered an issuance.
SECTION 5.  Uses of Bond and Note Proceeds. – The proceeds of 2007 Public School Building Bonds and notes shall be used for the purpose of making grants to counties for paying the cost of public school capital outlay projects.
Any additional moneys that may be received by means of a grant or grants from the United States of America or any agency or department thereof or from any other source to aid in financing the cost of any public school capital outlay projects authorized by this act may be placed by the State Treasurer in the 2007 Public School Building Bonds Fund or in a separate account or fund and shall be disbursed, to the extent permitted by the terms of the grant or grants, without regard to any limitations imposed by this act.
Moneys in the 2007 Public School Building Bonds Fund or in any separate fund or account may be invested from time to time by the State Treasurer in the same manner permitted for investment of moneys belonging to the State or held in the State treasury except with respect to grant money to the extent otherwise directed by the terms of the grant, and any investment earnings shall be credited to the 2007 Public School Building Bonds Fund or the particular fund or account from which the investment was made.
All moneys deposited in, or accruing to the credit of, the 2007 Public School Building Bonds Fund, other than moneys set aside for administrative expenses, including expenses related to determining compliance with applicable requirements of the federal tax law and cost of issuance, shall be used to pay the cost of public school capital outlay projects in the manner authorized by this act.
The proceeds of 2007 Public School Building Bonds and notes may be used with any other moneys made available by the General Assembly for public school capital outlay projects, including the proceeds of any other State bond issues, whether heretofore made available or that may be made available at the session of the General Assembly at which this act is ratified or any subsequent sessions.  The proceeds of 2007 Public School Building Bonds and notes shall be expended and disbursed under the direction and supervision of the Director of the Budget.  The funds provided by this act for public school capital outlay projects shall be disbursed for the purposes provided in this act upon warrants drawn on the State Treasurer by the State Controller, which warrants shall not be drawn until requisition has been approved by the Director of the Budget and which requisition shall be approved only after full compliance with the State Budget Act, Chapter 143C of the General Statutes.
The Director of the Budget shall provide quarterly reports to the State Board of Education, the Superintendent of Public Instruction, and the General Assembly on the expenditure of moneys from the 2007 Public School Building Bonds Fund.  Reports to the General Assembly shall be filed with the Legislative Library, the Speaker of the House of Representatives, the President Pro Tempore of the Senate, and the Fiscal Research Division.
SECTION 6.(a)  Allocation of Proceeds. – The proceeds of 2007 Public School Building Bonds and notes, including premium thereon, if any, except the proceeds of bonds the issuance of which has been anticipated by bond anticipation notes or the proceeds of refunding bonds or notes, shall be placed by the State Treasurer in a special fund to be designated "2007 Public School Building Bonds Fund".  Moneys in the 2007 Public School Building Bonds Fund shall be used for the purposes set forth in this act.  The proceeds of 2007 Public School Building Bonds and notes shall be allocated to counties and expended for paying the cost of public school capital outlay projects, to the extent and as provided in this act and subject to change as provided in this act.
SECTION 6.(b)  Allocation. – The proceeds of two billion dollars ($2,000,000,000) 2007 Public School Building Bonds and notes shall be allocated to each county on the basis of the distribution amounts provided in the following table for the local school administrative units in the State.  No county shall receive less than one million dollars ($1,000,000).  In the case of a local school administrative unit located entirely in one county, the unit's total distribution amount shall be allocated to that county.  In the case of a county with more than one local school administrative unit, the county's distribution amount shall be allocated among the local school administration units in the county in proportion to average daily membership of each unit in the county.  A county's distribution amount allocated to a unit may be used only with respect to public school capital outlay projects of that unit.
		Distribution	Distribution	Distribution
County	Based on	Based on	Based on
		ADM	High‑Growth	Low Wealth	Total
Alamance	$15,962,976	$9,085,752	$15,757,078 	$40,805,805
Alexander	$4,054,395	$2,307,667	$4,002,099	$10,364,160
Alleghany	$1,113,265	$633,644	–	$1,746,909
Anson		$2,979,641	–	$2,941,209	$5,920,850
Ashe		$2,356,327	$1,341,166	–	$3,697,493
Avery		$1,650,285	–	–	$1,650,285
Beaufort	$5,069,955	–	$5,004,560	$10,074,515
Bertie		$2,232,235	–	$2,203,443	$4,435,677
Bladen	$3,936,721	–	$3,885,943	$7,822,664
Brunswick	$8,304,199	$4,726,556	–	$13,030,755
Buncombe	$21,000,837	$11,953,185	–	$32,954,022
Burke		$10,122,080	–	$9,991,521	$20,113,600
Cabarrus	$21,698,322	$12,350,177	–	$34,048,498
Caldwell	$9,334,736	$5,313,113	$9,214,332	$23,862,181
Camden	$1,333,636	$759,074	$1,316,434	$3,409,143
Carteret	$5,877,268	$3,345,203	–	$9,222,471
Caswell	$2,339,211	–	$2,309,039	$4,648,250
Catawba	$17,774,438	$10,116,794	–	$27,891,232
Chatham	$5,440,092	$3,096,373	–	$8,536,465
Cherokee	$2,613,783	$1,487,704	$2,580,069	$6,681,556
Chowan	$1,799,338	$1,024,141	$1,776,130	$4,599,609
Clay		$969,204	$551,648	–	$1,520,852
Cleveland	$12,086,161	–	$11,930,268	$24,016,430
Columbus	$6,817,231	–	$6,729,299	$13,546,530
Craven	$10,500,775	$5,976,795	$10,365,331	$26,842,902
Cumberland	$37,741,886	$21,481,798	$37,255,074	$96,478,757
Currituck	$2,904,045	$1,652,914	–	$4,556,959
Dare		$3,481,003	$1,981,305	–	$5,462,308
Davidson	$18,729,378	$10,660,323	$18,487,798	$47,877,499
Davie		$4,677,709	$2,662,442	$4,617,374	$11,957,525
Duplin	$6,402,877	$3,644,368	$6,320,290	$16,367,534
Durham	$22,514,193	$12,814,551	–	$35,328,744
Edgecombe	$5,335,969	–	$5,267,143	$10,603,111
Forsyth	$36,095,880	$20,544,930	–	$56,640,810
Franklin	$5,892,957	$3,354,133	$5,816,947	$15,064,038
Gaston	$23,058,345	$13,124,270	–	$36,182,614
Gates		$1,474,844	$839,447	$1,455,821	$3,770,111
Graham	$865,793	$492,789	$854,626	$2,213,209
Granville	$6,347,963	$3,613,112	$6,266,084	$16,227,158
Greene	$2,323,521	$1,322,494	$2,293,551	$5,939,566
Guilford	$50,104,759	$28,518,455	–	$78,623,214
Halifax	$6,258,816	–	$6,178,087	$12,436,903
Harnett	$12,893,474	$7,338,664	$12,727,168	$32,959,306
Haywood	$5,621,951	$3,199,883	–	$8,821,834
Henderson	$9,278,395	$5,281,045	–	$14,559,440
Hertford	$2,446,187	–	$2,414,635	$4,860,822
Hoke		$5,167,659	$2,941,311	$5,101,005	$13,209,975
Hyde		N/A	N/A	N/A	$1,000,000
Iredell		$18,675,177	$10,629,473	–	$29,304,650
Jackson	$2,613,070	$1,487,298	–	$4,100,368
Johnston	$20,766,203	$11,819,637	$20,498,351	$53,084,191
Jones		$910,723	–	$898,976	$1,809,700
Lee		$6,674,596	$3,799,024	$6,588,504	$17,062,124
Lenoir		$6,964,145	–	$6,874,318	$13,838,463
Lincoln	$8,589,469	$4,888,924	$8,478,678	$21,957,071
Macon	$3,071,641	$1,748,306	–	$4,819,947
Madison	$1,881,353	$1,070,822	$1,857,087	$4,809,262
Martin		$2,976,789	–	$2,938,393	$5,915,181
McDowell	$4,605,678	$2,621,444	$4,546,272	$11,773,395
Mecklenburg	$91,749,847	$52,221,864	–	$143,971,711
Mitchell	$1,569,696	–	$1,549,450	$3,119,146
Montgomery	$3,226,400	$1,836,391	$3,184,784	$8,247,575
Moore		$8,736,383	$4,972,544	–	$13,708,927
Nash		$12,924,854	$7,356,524	$12,758,143	$33,039,522
New Hanover	$17,141,852	$9,756,741	–	$26,898,593
Northampton	$2,125,972	–	$2,098,550	$4,224,522
Onslow	$16,437,236	$9,355,690	$16,225,221	$42,018,148
Orange	$12,783,646	$7,276,152	–	$20,059,797
Pamlico	$1,090,443	–	$1,076,378	$2,166,821
Pasquotank	$4,435,230	$2,524,429	$4,378,022	$11,337,681
Pender	$5,488,588	$3,123,976	$5,417,793	$14,030,357
Perquimans	$1,231,652	$701,027	$1,215,765	$3,148,444
Person		$4,040,131	–	$3,988,020	$8,028,151
Pitt		$16,041,425	$9,130,403	$15,834,515	$41,006,343
Polk		$1,727,308	$983,143	–	$2,710,451
Randolph	$16,643,344	$9,473,002	$16,428,670	$42,545,015
Richmond	$5,816,648	–	$5,741,622	$11,558,270
Robeson	$17,158,255	$9,766,077	$16,936,940	$43,861,273
Rockingham	$10,250,451	–	$10,118,236	$20,368,687
Rowan	$14,919,602	$8,491,888	$14,727,162	$38,138,652
Rutherford	$7,149,570	$4,069,368	$7,057,352	$18,276,290
Sampson	$8,050,309	$4,582,047	$7,946,473	$20,578,829
Scotland	$4,879,537	$2,777,318	$4,816,599	$12,473,454
Stanly		$6,879,277	–	$6,790,545	$13,669,822
Stokes		$5,206,171	–	$5,139,019	$10,345,190
Surry		$8,323,455	$4,737,516	$8,216,095	$21,277,065
Swain		$1,305,822	$743,243	$1,288,979	$3,338,044
Transylvania	$2,707,209	$1,540,880	–	$4,248,089
Tyrrell	N/A	N/A	N/A	$1,000,000
Union		$24,442,616	$13,912,164	$24,127,343	$62,482,123
Vance		$5,609,114	–	$5,536,765	$11,145,879
Wake		$91,295,555	$51,963,292	–	$143,258,847
Warren	$2,002,593	–	$1,976,762	$3,979,355
Washington	$1,471,278	–	$1,452,301	$2,923,579
Watauga	$3,228,539	–	–	$3,228,539
Wayne	$13,824,167	$7,868,392	$13,645,856	$35,338,414
Wilkes	$7,189,508	$4,092,100	$7,096,774	$18,378,382
Wilson	$8,941,777	$5,089,450	$8,826,442	$22,857,668
Yadkin	$4,407,416	$2,508,598	$4,350,567	$11,266,581
Yancey	$1,833,571	$1,043,625	$1,809,920	$4,687,116
			
TOTAL	$999,000,000.00	$499,500,000.00	$499,500,000.00	$2,000,000,000.00
SECTION 6.(c)  Administration. – Funds disbursed under this act shall be administered and supervised by the State Board of Education and shall be used only for the purposes provided in this act.  Each school administrative unit shall submit to the State Board of Education its plans for the expenditure of funds allocated under this act.  After the State Board of Education determines that a school administrative unit's planned expenditure of part or all of the funds allocated to it is within the purposes provided in this act, the State Board of Education shall make the funds to which the plans apply available to the applicable county.
Allocations to the costs of a capital improvement or undertaking in each case may include allocations to pay the costs set forth in Section 3(2)c., d., e., f., and g. of this act in connection with the issuance of bonds for that capital improvement or undertaking.
SECTION 7.  Election. – The question of the issuance of the bonds authorized by this act shall be submitted to the qualified voters of the State at an election to be held on the first Tuesday after the first Monday of November 2007.  Any other primary, election, or referendum validly called or scheduled by law at the time the election on the bond question provided for in this section is held may be held as called or scheduled.  Notice of the election shall be given in the manner and at the times required by G.S. 163‑33(8).  The election and the registration of voters therefor shall be held under and in accordance with the general laws of the State.  Absentee ballots shall be authorized in the election.
The State Board of Elections shall reimburse the counties of the State for all necessary expenses incurred in holding the election that are in addition to those that would have otherwise been incurred, the same to be paid out of the Contingency and Emergency Fund or other funds available to the State Board of Elections.
Ballots, voting systems authorized by Article 14 of Chapter 163 of the General Statutes, or both, may be used in accordance with rules prescribed by the State Board of Elections. The bond questions to be used in the ballots or voting systems shall be in substantially the following form:
"[ ] FOR	[  ] AGAINST
The issuance of two billion dollars ($2,000,000,000)  State of North Carolina 2007 Public School Building Bonds constituting general obligation bonds of the State secured by a pledge of the faith and credit and taxing power of the State for the purpose of providing funds to counties, with any other available funds, to pay the cost of public school building capital improvements."
If a majority of those voting on the bond question in the election vote in favor of the issuance of the bonds, those bonds may be issued as provided in this act. If a majority of those voting on the bond question in the election vote against the issuance of the bonds, those bonds shall not be issued.
The results of the election shall be canvassed and declared as provided by law for elections for State officers; the results of the election shall be certified by the State Board of Elections to the Secretary of State, in the manner and at the time provided by the general election laws of the State.
SECTION 8.  Issuance of bonds and notes.  (a) Terms and Conditions. – Bonds or notes may bear such date or dates, may be serial or term bonds or notes, or any combination thereof, may mature in such amounts and at such time or times, not exceeding 40 years from their date or dates, may be payable at such place or places, either within or without the United States of America, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts, may bear interest at such rate or rates, which may vary from time to time, and may be made redeemable before maturity, at the option of the State or otherwise as may be provided by the State, at such price or prices, including a price less than or greater than the face amount of the bonds or notes, and under such terms and conditions, all as may be determined by the State Treasurer, by and with the consent of the Council of State.
SECTION 8.(b)  Signatures; Form and Denomination; Registration. – Bonds or notes may be issued in certificated or uncertificated form.  If issued in certificated form, bonds or notes shall be signed on behalf of the State by the Governor or shall bear the Governor's facsimile signature, shall be signed by the State Treasurer or shall bear the State Treasurer's facsimile signature, and shall bear the Great Seal of the State, or a facsimile of the Seal shall be impressed or imprinted thereon.  If bonds or notes bear the facsimile signatures of the Governor and the State Treasurer, the bonds or notes shall also bear a manual signature which may be that of a bond registrar, trustee, paying agent, or designated assistant of the State Treasurer.  Should any officer whose signature or facsimile signature appears on bonds or notes cease to be such officer before the delivery of the bonds or notes, the signature or facsimile signature shall nevertheless have the same validity for all purposes as if the officer had remained in office until delivery.  Bonds or notes may bear the facsimile signatures of persons who at the actual time of the execution of the bonds or notes shall be the proper officers to sign any bond or note although at the date of the bond or note such persons may not have been such officers.  The form and denomination of bonds or notes, including the provisions with respect to registration of the bonds or notes and any system for their registration, shall be as the State Treasurer may determine in conformity with this act.
SECTION 8.(c)  Manner of Sale; Expenses. – Subject to the approval by the Council of State as to the manner in which bonds or notes shall be offered for sale, whether at public or private sale, whether within or without the United States, and whether by publishing notices in certain newspapers and financial journals, mailing notices, inviting bids by correspondence, negotiating contracts of purchase or otherwise, the State Treasurer is authorized to sell bonds or notes at one time or from time to time at any rate or rates of interest, which may vary from time to time, and at any price or prices, including a price less than or greater than the face amount of the bonds or the notes, as the State Treasurer may determine.  All expenses incurred in the preparation, sale, and issuance of bonds or notes shall be paid by the State Treasurer from the proceeds of bonds or notes or other available moneys.
SECTION 8.(d)  Notes; Repayment.
(1)	By and with the consent of the Council of State, the State Treasurer is hereby authorized to borrow money and to execute and issue notes of the State for the same, but only in the following circumstances and under the following conditions:
a.	For anticipating the sale of bonds the issuance of which the Council of State has approved, if the State Treasurer considers it advisable to postpone the issuance of the bonds;
b.	For the payment of interest on or any installment of principal of any bonds then outstanding, if there are not sufficient funds in the State treasury with which to pay the interest or installment of principal as they respectively become due;
c.	For the renewal of any loan evidenced by notes herein authorized;
d.	For the purposes authorized in this act; and
e.	For refunding bonds or notes as herein authorized.
(2)	Funds derived from the sale of bonds or notes may be used in the payment of any bond anticipation notes issued under this act. Funds provided by the General Assembly for the payment of interest on or principal of bonds shall be used in paying the interest on or principal of any notes and any renewals thereof, the proceeds of which shall have been used in paying interest on or principal of the bonds.
SECTION 8.(e)  Refunding Bonds and Notes. – By and with the consent of the Council of State, the State Treasurer is authorized to issue and sell refunding bonds and notes for the purpose of refunding bonds or notes issued pursuant to this act and to pay the cost of issuance of the refunding bonds or notes. The refunding bonds and notes may be combined with any other issues of State bonds and notes similarly secured. Refunding bonds or notes may be issued at any time prior to the final maturity of the debt or obligation to be refunded. The proceeds from the sale of any refunding bonds or notes shall be applied to the immediate payment and retirement of the bonds or notes being refunded or, if not required for the immediate payment of the bonds or notes being refunded, the proceeds shall be deposited in trust to provide for the payment and retirement of the bonds or notes being refunded and to pay any expenses incurred in connection with the refunding. Money in a trust fund may be invested in (i) direct obligations of the United States government, (ii) obligations the principal of and interest on which are guaranteed by the United States government, (iii) obligations of any agency or instrumentality of the United States government if the timely payment of principal and interest on the obligations is unconditionally guaranteed by the United States government, or (iv) certificates of deposit issued by a bank or trust company located in the State if the certificates are secured by a pledge of any of the obligations described in (i), (ii), or (iii) above having an aggregate market value, exclusive of accrued interest, equal at least to the principal amount of the certificates so secured. This section does not limit the duration of any deposit in trust for the retirement of bonds or notes being refunded but that have not matured and are not presently redeemable, or if presently redeemable, have not been called for redemption.
SECTION 8.(f)  Tax Exemption. – Bonds and notes shall at all times be free from taxation by the State or any political subdivision or any of their agencies, excepting estate, inheritance, or gift taxes, income taxes on the gain from the transfer of the securities, and franchise taxes. The interest on the bonds and notes is not subject to taxation as income.
SECTION 8.(g)  Investment Eligibility. – Bonds and notes are securities in which all of the following may invest, including capital in their control or belonging to them:  public officers, agencies, and public bodies of the State and its political subdivisions, all insurance companies, trust companies, investment companies, banks, savings banks, savings and loan associations, credit unions, pension or retirement funds, other financial institutions engaged in business in the State, executors, administrators, trustees, and other fiduciaries.  Bonds and notes are hereby made securities which 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 is now or may hereafter be authorized by law.
SECTION 8.(h)  Faith and Credit. – The faith and credit and taxing power of the State are hereby pledged for the payment of the principal of and the interest on bonds and notes.  In addition to the State's right to amend any provision of this act to the extent it does not impair any contractual right of a bond owner, the State expressly reserves the right to amend any provision of this act with respect to the making and repayment of loans, the disposition of any repayments of loans, and any intercept provisions relating to the failure of a local government unit to repay a loan, the bonds not being secured in any respect by loans, any repayments thereof, or any intercept provisions with respect thereto.
SECTION 8.(i)  Minority Business Participation. – The State Treasurer shall provide contracting opportunities for historically underutilized businesses in providing professional services in connection with the issuance of bonds and notes authorized by this act.  As used in this subsection, the term "historically underutilized business" means a business described in G.S. 143‑48.  The State Treasurer shall strive to increase the amount of legal, financial, and other professional services acquired by it from historically underutilized businesses.  With the assistance of the Office for Historically Underutilized Businesses in the Department of Administration, the State Treasurer shall set objectives for contracting with these businesses, identify and eliminate barriers or constraints that may restrict these businesses from contracting with the State Treasurer, and develop a plan for meeting its objectives.  The State Treasurer shall report quarterly to the Office for Historically Underutilized Businesses on its progress in carrying out the requirements of this subsection.
SECTION 8.(j)  Other Agreements. – The State Treasurer may authorize, execute, obtain, or otherwise provide for bond insurance, investment contracts, credit and liquidity facilities, interest rate swap agreements and other derivative products, and any other related instruments and matters the State Treasurer determines are desirable in connection with the issuance of bonds or notes. The State Treasurer is authorized to employ and designate any financial consultants, underwriters, and bond attorneys to be associated with any bond issue under this act as the State Treasurer considers necessary.
SECTION 9.  Variable rate demand bonds and notes. –  In fixing the details of bonds and notes, the State Treasurer may provide that any of the bonds or notes may:
(1)	Be made payable from time to time on demand or tender for purchase by the owner if a credit facility supports the bonds or notes, unless the State Treasurer specifically determines that a credit facility is not required upon a finding and determination by the State Treasurer that the absence of a credit facility will not materially or adversely affect the financial position of the State and the marketing of the bonds or notes at a reasonable interest cost to the State;
(2)	Be additionally supported by a credit facility;
(3)	Be made subject to redemption or a mandatory tender for purchase prior to maturity;
(4)	Bear interest at a rate or rates that may vary for any period of time, as may be provided in the proceedings providing for the issuance of the bonds or notes, including, without limitation, such variations as may be permitted pursuant to a par formula; and
(5)	Be made the subject of a remarketing agreement whereby an attempt is made to remarket bonds or notes to new purchasers prior to their presentment for payment to the provider of the credit facility or to the State.
If the aggregate principal amount payable by the State under a credit facility is in excess of the aggregate principal amount of bonds or notes secured by the credit facility, whether as a result of the inclusion in the credit facility of a provision for the payment of interest for a limited period of time or the payment of a redemption premium or for any other reason, then the amount of authorized but unissued bonds or notes during the term of such credit facility shall not be less than the amount of such excess, unless the payment of such excess is otherwise provided for by agreement of the State executed by the State Treasurer.
SECTION 10.  Interpretation of act. – (a) Additional Method. – The foregoing sections of this act shall be deemed to provide an additional and alternative method for the doing of the things authorized thereby and shall be regarded as supplemental and additional to powers conferred by other laws, and shall not be regarded as in derogation of any powers now existing.
SECTION 10.(b)  Statutory References. – References in this act to specific sections or Chapters of the General Statutes or to specific acts are intended to be references to these sections, Chapters, or acts as they may be amended from time to time by the General Assembly.
SECTION 10.(c)  Broad Construction. – This act, being necessary for the health and welfare of the people of the State, shall be broadly construed to effect the purposes thereof.
SECTION 10.(d)  Inconsistent Provisions. – Insofar as the provisions of this act are inconsistent with the provisions of any general, special, or local laws, or parts thereof, the provisions of this act shall be controlling.
SECTION 10.(e)  Severability. – If any provision of this act or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the act which can be given effect without the invalid provision or application, and to this end the provisions of this act are declared to be severable.
SECTION 11.  This act is effective when it becomes law.