A BILL TO BE ENTITLED
AN ACT to allow the north carolina national guard to authorize certain capital expenditures for projects that will be entirely funded with federal fundS and to provide the national guard with greater flexibility to respond to federal changes with respect to armory project funding priorities.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 143C‑8‑12 reads as rewritten:
"§ 143C‑8‑12.  Capital improvement projects from sources other than the General Fund.
(a)	University Projects. – Notwithstanding any other provision of this Chapter, the Board of Governors of The University of North Carolina may approve any of the following:
(1)	Expenditures to plan a capital improvement project of The University of North Carolina, the planning for which is to be funded entirely with non‑General Fund money.
(2)	Expenditures for a capital improvement project of The University of North Carolina that is to be funded and operated entirely with non‑General Fund money. 
(3)	A change in the scope of any previously approved capital improvement project of The University of North Carolina provided that both the project and change in scope are funded entirely with non‑General Fund money.
(b)	National Guard Projects. – Notwithstanding any other provision of this Chapter, the North Carolina National Guard may approve expenditures for a capital project of the North Carolina National Guard but only if (i) the project will be funded entirely with federal funds and (ii) any operating costs associated with the project will be paid entirely with federal funds.
(c)	Reporting. – The Board of Governors and the National Guard shall report any expenditure made pursuant to this section to the Office of State Budget and Management and to the Joint Legislative Commission on Governmental Operations."
SECTION 2.  Section 36.11(c) of S.L. 2013‑360 reads as rewritten:
"SECTION 36.11.(c)  Where the actual costs are different from the estimated costs under subsection (a) of this section, the Adjutant General of the National Guard may adjust the allocations among projects as needed. However, State funds shall not be allocated to a project in excess of the maximum amount of State funds authorized to be allocated to the project under subsection (a) of this section. If any projects funded under subsection (a) of this section are delayed or cancelled and the budgeted State funds cannot be used during the 2013‑2015 fiscal biennium, or if the projects funded under subsection (a) of this section are accomplished at a lower cost, the Department may use the resulting fund availability to fund any of the following:
(1)	Future project feasibility studies.
(2)	Survey, testing, and permitting.
(3)	Planning and execution for reversion of facilities no longer in use.
(4)	Armory and facilities projects approved by the Congress of the United States that are not listed in subsection (a) of this section and that require State matching funds."
SECTION 3.  Article 8 of Chapter 143 of the General Statutes is amended by adding a new section to read:
"§ 143‑129.6.  Exemption for certain training projects of the North Carolina National Guard.
Expenditures for a capital project (i) that is for training purposes and for a single exercise or undertaking at a National Guard facility; (ii) that has a total cost that does not exceed one hundred thousand dollars ($100,000); and (iii) that will be funded entirely with federal funds shall not be subject to this Article."
SECTION 4.  This act is effective when it becomes law.