A BILL TO BE ENTITLED
AN ACT to clarify the intent of the general assembly regarding the amount of debt the state may issue to a percentage of general fund revenue.
The General Assembly of North Carolina enacts:
SECTION 1.  Chapter 142 of the General Statutes is amended by adding a new Article to read:
"Article 1A.
"Net Tax‑Supported Debt.
"§ 142‑15.15.  Net tax‑supported debt.
It is the intent of the General Assembly, in considering the recommendations of the Debt Affordability Advisory Committee established in G.S. 142‑101, not to authorize the issuance of debt if the amount of debt service for the debt when added to the annual amount of debt service for net tax‑supported debt authorized by the State exceeds four percent (4%) of the total amount of revenue to the General Fund for the previous year.
"§ 142‑15.16.  Report.
The Department of State Treasurer shall report to the General Assembly, on a semiannual basis, the amount of debt service for net tax‑supported debt, the amount set forth in G.S. 142‑15.15, and whether the General Assembly is in compliance with the goal set forth in G.S. 142‑15.15 of this Article.
"§ 142‑15.17.  Hold harmless.
If a change in amount of revenue to the General Fund results in amount of debt service for net tax‑supported debt authorized by the State exceeding the amount set forth in G.S. 142‑15.15, it does not impair the obligation of authorized debt service."
SECTION 2.  This act is effective when it becomes law.