A BILL TO BE ENTITLED
AN ACT to authorize the issuance of general obligation bonds for the purpose of accomplishing certain interrelated and united projects to further economic development in the state consistent with the connect nc plan.
The General Assembly of North Carolina enacts:
SECTION 1.(a)  Short Title. – This section shall be known as the "Connect NC Bond Act of 2015."
SECTION 1.(b)  Purpose. – It is the intent of the General Assembly by this act to provide, subject to a vote of the qualified voters of the State, for the issuance of two billion eight hundred fifty‑nine million seventy‑six thousand nine hundred fifty‑two dollars ($2,859,076,952) general obligation bonds of the State for the purpose of providing funds, with any other available funds, to update the State's public facilities for the twenty‑first century, including, without limitation, construction, repair, renovation, and furnishing of new facilities and construction and renovation of highways, roads, bridges, and related road infrastructure in order to (i) enhance other economic development efforts of the State and (ii) attract new and assist existing industry, business, technology, and tourism for the benefit of the State and its citizenry.
SECTION 1.(c)  Findings. – The General Assembly finds the following:
(1)	The University of North Carolina is in need of new and renovated facilities to conduct research and recruit, retain, and prepare researchers, faculty, and students for the twenty‑first century for the purpose of enhancing the economic attractiveness of the State.
(2)	The North Carolina Community College System is in need of new and renovated facilities to train and prepare students and workers for the twenty‑first century for the purpose of enhancing the economic attractiveness of the State.
(3)	The public schools of the State are in need of new and renovated facilities to train and prepare students and teachers for the twenty‑first century for the purpose of expanding opportunities for students by use of innovative educational programs that will attract new employers with workforces dependent on such programs.
(4)	New and renovated cultural resources and facilities and State Parks are vital to the attractiveness of the State for recruitment of new industry, business, technology, and tourists, thereby benefitting the State's economic development.
(5)	New facilities for agriculture will assist current agricultural endeavors in the State and will attract bioscience and other related industries, thereby benefitting the State's economic development.
(6)	Parks and public facilities that are accessible to children with disabilities and veterans with disabilities are essential for the twenty‑first century to attract new and assist existing industry, business, technology, and tourism for the benefit of the State and its citizenry.
(7)	Clean water and sewer systems are essential for the twenty‑first century to attract new and assist existing industry, business, technology, and tourism for the benefit of the State and its citizenry.
(8)	Adequate National Guard and military facilities attract new defense industry companies and suppliers.
(9)	Adequate public safety and court facilities are essential for the twenty‑first century to attract new and assist existing industry, business, technology, and tourism for the benefit of the State and its citizenry.
(10)	State and local facilities need routine repair and renovations in order for the facilities to be up‑to‑date for the twenty‑first century to attract new and assist existing industry, business, technology, and tourism for the benefit of the State and its citizenry.
(11)	Highways, roads, bridges, and related road infrastructure of the State is vital for all the components set forth above, as well as individually, to help retain and attract new and assist existing industry, business, technology, and tourism for the benefit of the State and its citizenry.
(12)	The components set forth above are all interrelated and united and comprise a single plan for updating the State's infrastructure for the twenty‑first century and for providing the State with necessary economic development tools to attract new and assist existing industry, business, technology, and tourism for the benefit of the State and its citizenry.
SECTION 1.(d)  Definitions. – Unless the context otherwise requires, the following definitions apply in this section:
(1)	Bonds. – Bonds issued under this section.
(2)	Cost. – Without intending thereby to limit or restrict any proper definition of this term in financing the cost of facilities or purposes authorized by this section, any of the following:
a.	The cost of constructing, reconstructing, enlarging, acquiring, and improving facilities 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. Nothing in this section shall permit use of bond funds to pay salaries or fees for bond administration; such salaries and fees shall come from funds appropriated by the General Assembly.
d.	Finance charges and interest prior to and during construction and, if deemed advisable by the State Treasurer, for a period not exceeding three 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 in this subdivision.
g.	Any other costs and expenses necessary or incidental to the purposes of this section.
Allocations in this section 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 sub‑subdivisions c. through g. of this subdivision in connection with the issuance of bonds for the project or undertaking.
(3)	Credit facility agreement. – 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 agreement, 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 agreement in accordance with the terms and provisions of such agreement.
(4)	Notes. – Notes issued under this section.
(5)	Par formula. – 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 the following:
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 LIBOR rate, 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 section 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)	State. – The State of North Carolina.
SECTION 1.(e)  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 public improvement bonds in the election called and held as provided in this section, the State Treasurer is hereby 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 Public Improvement 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 section, in an aggregate principal amount not exceeding two billion eight hundred fifty‑nine million seventy‑six thousand nine hundred fifty‑two dollars ($2,859,076,952) for the purpose of providing funds, with any other available funds, for the purposes authorized in this section. For public improvement bonds authorized by this section for transportation projects, although such bonds will constitute general obligation bonds, secured by the faith and credit and taxing power of the State, and although the funds deposited to the Highway Trust Fund are not specifically pledged to pay debt service on such bonds, it is the intent of the General Assembly that the debt service on such bonds will be provided from amounts deposited to the Highway Trust Fund.
SECTION 1.(f)  Use of Public Improvement Bond and Note Proceeds. –
(1)	Subject to the provisions of subdivision (2) of this subsection, the proceeds of public improvement bonds and notes, including premium thereon, if any, shall be used for the projects in the following general amounts set forth below:

Agriculture

NC State University	Wake	Plant Sciences Building	$85,000,000
	Ag/NCSU Partnership

Agriculture and	Wake	Veterinary/Food/Drug/Motor Fuels Lab	$110,000,000
Consumer Services

Total for Agriculture (2 projects)	$195,000,000

Attractions, Parks, and Historic Sites

Cultural Resources	New Hanover	USS NC Battleship – Visitor's Center	$10,800,000

State Parks	Cumberland	Carvers Creek	$7,601,000

State Parks	Durham/	Eno River	$3,774,000
	Orange

State Parks	Washington/	Goose Creek	$1,970,000
	Beaufort

State Parks	Onslow	Hammocks Beach	$1,500,000

State Parks	Dare	Jockeys Ridge	$1,002,000

State Parks	Vance/	Kerr Lake State Recreational Area	$5,000,000
	Warren

State Parks	Burke/	Lake James	$4,028,000
	McDowell

State Parks	Iredell	Lake Norman	$3,076,000

State Parks	Yancey	Mount Mitchell	$800,000

State Parks	Various	Mountain‑To‑Sea/Other State Trails	$6,000,000

State Parks	Surry/	Pilot Mountain	$5,975,800
	Yadkin

State Parks	Camden	Dismal Swamp	$1,321,000

State Parks	Watauga	Elk Knob	$1,200,000

State Parks	Durham/	Falls Lake	$1,053,000
	Wake

State Parks	New Hanover	Fort Fisher State Recreational Area	$1,500,000

State Parks	Transylvania	Gorges State	$3,341,000

State Parks	Stokes	Hanging Rock	$2,800,000

State Parks	Guilford/	Haw River	$2,000,000
	Rockingham

State Parks	Chatham/	Jordan Lake State Recreational Area	$4,000,000
	Wake

State Parks	Columbus	Lake Waccamaw	$2,008,000

State Parks	Scotland/	Lumber River	$3,505,000
	Hoke/
	Robeson/
	Columbus

State Parks	Rockingham	Mayo River	$1,000,000

State Parks	Tyrell/	Pettigrew	$3,774,000
	Washington

State Parks	Burke	South Mountain	$3,000,000

State Parks	Alleghany/	Stone Mountain	$1,784,000
	Wilkes

State Parks	Wake	William B. Umstead State Park	$2,300,000

State Parks	Avery	Yellow Mountain Natural Area	$3,000,000

State Parks	Watauga	Beech Creek Bog State Natural Area	$800,000

State Parks	New Hanover	Carolina Beach State Park	$1,140,000

State Parks	Rutherford	Chimney Rock	$2,000,000

State Parks	Wayne	Cliffs of the Neuse	$923,200

State Parks	Gaston	Crowders Mountain	$1,000,000

State Parks	Chatham	Deep River State Trail	$1,708,000

State Parks	Carteret	Fort Macon	$180,000

State Parks	Watauga	Grandfather Mountain	$2,002,000

State Parks	Bladen	Jones Lake	$869,000

State Parks	Chatham	Lower Haw River Natural Area	$271,000

State Parks	Halifax	Medoc Mountain	$1,845,000

State Parks	Gates	Merchants Millpond	$1,161,000

State Parks	Stanly	Morrow Mountain	$2,050,000

State Parks	Ashe	Mount Jefferson State Natural Area	$2,000,000

State Parks	Ashe	New River	$900,000

State Parks	Harnett	Raven Rock	$1,500,000

State Parks	Bladen	Singletary Lake	$767,000

State Parks	Moore	Weymouth Woods State Natural Area	$571,000

Zoo	Randolph	Australasia Exhibit Complex	$15,000,000

Zoo	Randolph	Australasia Exhibit Complex	$9,000,000
	Replace Africa Pavilion

Zoo	Randolph	Africa Plains Safari	$250,000

Total for Attractions, Parks, and Historic Sites (49 projects)	$135,050,000

Local Parks and Infrastructure

DENR	Statewide	Children With Disabilities and	$10,000,000
	Veterans With Disabilities Local
	Parks (Matching Grants)

DENR	Statewide	Water/Sewer Loans	$75,000,000

Total for Local Parks and Infrastructure	$85,000,000

National Guard and Military

Military	Durham/	Camp Butner Buffer Zones	$500,000
	Granville

National Guard	Wake	JFHQ Heli‑Pads	$746,000

National Guard	Davidson/	High Point Armory Major	$625,000
	Forsyth/	Renovations
	Guilford/
	Randolph

National Guard	Franklin	Louisburg Armory	$2,377,288

National Guard	Rockingham	Reidsville Armory	$2,377,288

National Guard	Richmond	Hamlet Armory	$2,108,334

National Guard	Union	Monroe Armory	$2,658,334

National Guard	Wayne	Goldsboro Armory	$1,558,334

National Guard	Cumberland	Fayetteville Armory	$2,658,334

National Guard	Lee	Sanford Armory	$2,108,334

National Guard	Surry/Wilkes	Elkin Armory	$1,558,334

National Guard	Macon	Franklin Armory	$1,558,334

National Guard	Halifax	Scotland Neck Armory	$1,558,334

National Guard	Guilford	McLeansville Regional Readiness Ctr.	$43,959,375

National Guard	Burke	Western Youth Institution Renovation	$26,400,000

Total for National Guard and Military (15 projects)	$92,751,623

NC Community Colleges

Alamance Comm. College	New Construction, Repairs, Renovations	$4,316,608

Asheville‑Buncombe	New Construction, Repairs, Renovations	$8,056,622
Technical Comm. College

Beaufort Co. Comm. College	New Construction, Repairs, Renovations	$3,746,460

Bladen Comm. College	New Construction, Repairs, Renovations	$3,560,367

Blue Ridge Comm. College	New Construction, Repairs, Renovations	$2,605,366

Brunswick Comm. College	New Construction, Repairs, Renovations	$2,418,939

Caldwell Comm. College	New Construction, Repairs, Renovations	$4,303,524
and Technical Institute

Cape Fear Comm. College	New Construction, Repairs, Renovations	$5,650,810

Carteret Comm. College	New Construction, Repairs, Renovations	$1,961,128

Catawba Valley Comm. College	New Construction, Repairs, Renovations	$4,901,484

Central Carolina Comm. College	New Construction, Repairs, Renovations	$4,846,230

Central Piedmont Comm. College	New Construction, Repairs, Renovations	$11,269,441

Cleveland Comm. College	New Construction, Repairs, Renovations	$3,751,987

College of the Albermarle	New Construction, Repairs, Renovations	$4,863,383

Coastal Carolina Comm. College	New Construction, Repairs, Renovations	$4,313,926

Craven Comm. College	New Construction, Repairs, Renovations	$3,607,717

Davidson County Comm. College	New Construction, Repairs, Renovations	$4,393,838

Durham Tech. Comm. College	New Construction, Repairs, Renovations	$4,072,442

Edgecombe Comm. College	New Construction, Repairs, Renovations	$4,353,522

Fayetteville Tech. Comm. College	New Construction, Repairs, Renovations	$10,264,710

Forsyth Tech. Comm. College	New Construction, Repairs, Renovations	$6,288,257

Gaston College	New Construction, Repairs, Renovations	$4,935,995

Guilford Tech. Comm. College	New Construction, Repairs, Renovations	$9,071,603

Halifax Comm. College	New Construction, Repairs, Renovations	$3,737,553

Haywood Comm. College	New Construction, Repairs, Renovations	$2,374,457

Isothermal Comm. College	New Construction, Repairs, Renovations	$4,225,417

James Sprunt Comm. College	New Construction, Repairs, Renovations	$2,661,578

Johnston Comm. College	New Construction, Repairs, Renovations	$3,356,734

Lenoir Comm. College	New Construction, Repairs, Renovations	$6,851,267

Martin Comm. College	New Construction, Repairs, Renovations	$3,819,225

Mayland Comm. College	New Construction, Repairs, Renovations	$2,752,960

McDowell Tech. Comm. College	New Construction, Repairs, Renovations	$2,727,637

Mitchell Comm. College	New Construction, Repairs, Renovations	$2,824,345

Montgomery Comm. College	New Construction, Repairs, Renovations	$3,327,420

Nash Comm. College	New Construction, Repairs, Renovations	$10,142,192

Pamlico Comm. College	New Construction, Repairs, Renovations	$8,496,536

Piedmont Comm. College	New Construction, Repairs, Renovations	$3,031,602

Pitt Comm. College	New Construction, Repairs, Renovations	$12,692,701

Randolph Comm. College	New Construction, Repairs, Renovations	$3,632,718

Richmond Comm. College	New Construction, Repairs, Renovations	$12,938,769

Roanoke‑Chowan Comm. College	New Construction, Repairs, Renovations	$3,407,445

Robeson Comm. College	New Construction, Repairs, Renovations	$4,492,942

Rockingham Comm. College	New Construction, Repairs, Renovations	$4,302,087

Rowan‑Cabarrus Comm. College	New Construction, Repairs, Renovations	$5,588,267

Sampson Comm. College	New Construction, Repairs, Renovations	$2,936,298

Sandhills Comm. College	New Construction, Repairs, Renovations	$3,423,123

South Piedmont Comm. College	New Construction, Repairs, Renovations	$2,987,899

Southeastern Comm. College	New Construction, Repairs, Renovations	$4,060,783

Southwestern Comm. College	New Construction, Repairs, Renovations	$4,381,169

Stanly Comm. College	New Construction, Repairs, Renovations	$3,600,740

Surry Comm. College	New Construction, Repairs, Renovations	$4,750,239

Tri‑County Comm. College	New Construction, Repairs, Renovations	$3,322,734

Vance‑Granville Comm. College	New Construction, Repairs, Renovations	$4,988,371

Wake Tech. Comm. College	New Construction, Repairs, Renovations	$24,286,276

Wayne Comm. College	New Construction, Repairs, Renovations	$4,591,238

Western Piedmont Comm. College	New Construction, Repairs, Renovations	$3,783,579

Wilkes Comm. College	New Construction, Repairs, Renovations	$3,898,805

Wilson Comm. College	New Construction, Repairs, Renovations	$4,050,535

Total for NC Community Colleges	$300,000,000

Public Instruction

Public Schools	Statewide	New Schools, Additions, Renovations 	$500,000,000
Capital Assistance
Program

Total for Public Instruction	$500,000,000

Public Safety

DPS	Wake	Highway Patrol Training Academy	$38,225,000

DPS	Moore	Samarcand Training Academy	$8,500,000
	
Total for Public Safety (2 projects)	$46,725,000

State Government Agencies

Various	Statewide	Capital Repairs and Renovations	$200,000,000

AOC	Statewide	Courthouse Grants	$15,000,000

Total for State Agencies	$215,000,000

Transportation

Transportation	Statewide	Supplemental Highway Funding	$400,000,000

Total for Transportation	$400,000,000

University of North Carolina

Appalachian State	Watauga	New Health Sciences Building	$70,781,681
University

East Carolina	Pitt	Life Sciences & Biotech. Building	$124,522,662
University

Elizabeth City State	Pasquotank	School of Aviation	$15,794,660
University

Fayetteville State	Cumberland	Lyons Science Bldg. Renovation	$10,616,373
University

NC Central	Durham	Taylor Building Renovation	$7,500,000
University

NC State University	Wake	Engineering Building	$65,100,000

North Carolina	Guilford	Engineering Building	$96,676,418
A & T State
University

North Carolina	Durham	Discovery Center Residence Hall	$7,410,000
School of Science
and Math

North Carolina	Burke	Western North Carolina School of	$58,792,500
School of Science	Science and Math
and Math

UNC – Asheville	Buncombe	Owens Hall Renovation/Addition	$15,150,000

UNC – Chapel Hill	Orange	Medical Education Bldg. Replacement	$68,835,000

UNC – Charlotte	Mecklenburg	New Sciences Building	$90,000,000

UNC – Greensboro	Guilford	Jackson Library Renovation	$20,000,000

UNC – Pembroke	Robeson	West Hall Comprehensive Renovation	$10,000,000

UNC – School of	Forsyth	Old Library Renovation	$7,350,000
the Arts

UNC – Wilmington	New Hanover	Allied Health and Human Services/	$65,655,041
	Nursing Building

Western Carolina	Jackson	Science/STEM Building	$102,858,929
University

Winston‑Salem	Forsyth	Sciences Building	$52,507,065
State University

Total for UNC System (18 projects)	$889,550,329

Grand Total	$2,859,076,952

(2)	Special Allocation Provisions. – In determining the use of the proceeds of public improvement bonds and notes, including premium thereon, if any, set forth in subdivision (1) of this subsection, the following special allocation provisions apply:
a.	The proceeds of public improvement bonds and notes, including premium thereon, if any, for State Parks, as provided in subdivision (1) of this subsection, shall be used for capital improvements, as defined in G.S. 143C‑1‑1(d)(5). Any items purchased with such proceeds and installed or replaced as part of a renovation or rehabilitation must have a useful life of at least 20 years or must extend the life of the facility by at least 20 years once renovated or rehabilitated.
b.	The proceeds of public improvement bonds and notes, including premium thereon, if any, for the Department of Environment and Natural Resources for Statewide Children With Disabilities and Veterans With Disabilities Local Parks (Matching Grants), as provided in subdivision (1) of this subsection, shall be allocated to the Parks and Recreation Trust Fund established in G.S. 113‑44.15 and shall be used exclusively for grants to local government units or public authorities, as defined in G.S. 159‑7, for construction of special facilities or adaptation of existing facilities that meet the unique needs of children with physical and developmental disabilities and veterans with physical and developmental disabilities and enable them to participate in recreational and sporting activities, regardless of their abilities. In order to receive such proceeds under this sub‑subdivision, a local government unit or public authority shall provide matching funds in the amount of one dollar ($1.00) of local funds for every four dollars ($4.00) of such proceeds. Grants made using such proceeds under this sub‑subdivision shall not exceed five hundred thousand dollars ($500,000) per project.
c.	The proceeds of public improvement bonds and notes, including premium thereon, if any, for the Department of Environment and Natural Resources for Statewide Water/Sewer Loans, as provided in subdivision (1) of this subsection, shall be allocated to the Water Infrastructure Fund established in G.S. 159G‑22 and shall be used exclusively and in equal proportion for low‑interest loans from the Clean Water State Revolving Fund and the Drinking Water State Revolving Fund.
d.	The proceeds of public improvement bonds and notes, including premium thereon, if any, for NC Community Colleges, as provided in subdivision (1) of this subsection, shall be used for new construction or rehabilitation of existing facilities and repairs and renovations. In order to receive the proceeds under this sub‑subdivision, the community college receiving the proceeds shall provide one dollar ($1.00) of matching local funds from county funds, other non-State funds, or a combination of these sources for every one dollar ($1.00) of such proceeds. Any items purchased with such proceeds and installed or replaced as part of a renovation or rehabilitation must have a useful life of at least 20 years or must extend the life of the facility by at least 20 years once renovated or rehabilitated.
e.	The proceeds of public improvement bonds and notes, including premium thereon, if any, for public instruction for public schools capital assistance, as provided in subdivision (1) of this subsection, shall be allocated as follows:
1.	One hundred fifty million dollars ($150,000,000) of such proceeds shall be allocated equally to each county. Each county's allocation shall be distributed to the local school administrative units located in whole or in part in the county based on the average daily membership of the county's students in the school units.
2.	Two hundred eighty million dollars ($280,000,000) of such proceeds shall be allocated among local school administrative units located in counties whose wealth is less than the State average wealth, as computed pursuant to Section 8.3 of House Bill 97 of the 2015 Regular Session of the General Assembly. The portion of such proceeds allocated pursuant to this sub‑sub‑subdivision shall be initially proportionally allocated to each county according to average daily membership. Each county's allocation shall be distributed to the local school administrative units located in whole or in part in the county based on the average daily membership of the county's students in the school units.
3.	Seventy million dollars ($70,000,000) of such proceeds shall be allocated among local school administrative units that have increased average daily membership when comparing the average daily membership for fiscal year 2005‑2006 with the average daily membership for fiscal year 2015‑2016. The portion of the proceeds allocated pursuant to this sub‑sub‑subdivision to each unit is calculated by multiplying seventy million dollars ($70,000,000) by a fraction, the numerator of which is the increased average daily membership of the local school administrative unit for the time period specified in this sub‑subdivision and the denominator of which is the collective increased average daily membership of all local school administrative units with increased average daily membership in the State for the time period specified in this sub‑sub‑subdivision.
4.	In order to receive proceeds under this sub‑subdivision, a county shall provide matching funds. The amount of matching funds for a local school administrative unit otherwise eligible to receive such proceeds under sub‑sub‑subdivision 2. of this sub‑subdivision shall be one dollar ($1.00) of local funds for every four dollars ($4.00) of such proceeds. The amount of matching funds for all other local school administrative units shall be one dollar ($1.00) of local funds for every one dollar ($1.00) of such proceeds. The match requirement may be satisfied by non‑State expenditures for public school facilities made on or after July 1, 2014. A non‑State expenditure has been made for the purpose of the match if funds, including funds expended for debt service, have been budgeted, earmarked, or committed for the general purpose of public school facilities. If a debt has been authorized or incurred since July 1, 2014, for the general purpose of public school facilities, then the face amount of the debt shall be considered as a non‑State expenditure for public school facilities for the purpose of the match.
5.	A local school administrative unit that receives proceeds under this section shall ensure that such proceeds are used (i) for acquisition of real property and construction, acquisition, reconstruction, enlargement, renovation, or replacement of buildings and other structures and (ii) to supplement local funds for public school capital outlay projects and shall not decrease local funds for those projects from one fiscal year to the next fiscal year, as measured by the most recent five‑year annual average capital outlay expenditure. Any items purchased with such proceeds and installed or replaced as part of a renovation or rehabilitation must have a useful life of at least 20 years or must extend the life of the facility by at least 20 years once renovated or rehabilitated.
f.	The proceeds of public improvement bonds and notes, including premium thereon, if any, for statewide capital repairs and renovations for State government agencies, as provided in subdivision (1) of this subsection, shall be issued only if all of the following conditions are satisfied:
1.	The facility being renovated or rehabilitated is owned by or allocated to a State agency other than The University of North Carolina or the Department of Agriculture and Consumer Services.
2.	The project is one that is eligible under G.S. 143C‑4‑3(b) to receive funds from the Repairs and Renovations Reserve.
3.	Any items purchased with such proceeds and installed or replaced as part of a renovation or rehabilitation will have a useful life of at least 20 years or the life of the facility will be extended by at least 20 years once renovated or rehabilitated.
g.	The proceeds of public improvement bonds and notes, including premium thereon, if any, for AOC Statewide Courthouse Grants, as provided in subdivision (1) of this subsection, shall be allocated by the Director of the Administrative Office of the Courts for grants for courthouses in the State. In making grants, the Director shall comply with all of the following requirements:
1.	Priority for grants shall be, in descending priority, for (i) repair and renovation, (ii) security, and (iii) new construction.
2.	Grants for projects for courthouses in development tier one areas shall not exceed one million dollars ($1,000,000). Grants for projects for courthouses in development tier two areas shall not exceed seven hundred fifty thousand dollars ($750,000). Grants for projects for courthouses in development tier three areas shall not exceed two hundred fifty thousand dollars ($250,000). For purposes of this sub‑subdivision, development tier area is defined in G.S. 143B‑437.08.
3.	Projects for courthouses in development tier one areas shall be eligible for a grant if the county in which the project is located provides matching funds in the amount of one dollar ($1.00) for every four grant dollars ($4.00). Projects for courthouses in development tier two areas shall be eligible for a grant if the county in which the project is located provides matching funds in the amount of one dollar ($1.00) for every two grant dollars ($2.00). All other projects for courthouses are eligible for a grant if the county in which the project is located provides matching funds in the amount equal to the grant.
4.	Grants for projects may be awarded only upon submission of a completed application received by the Director no later than July 1, 2016. The application shall be in the form prescribed and made available by the Director.
5.	Any items purchased with the proceeds of public improvement bonds and notes, including premium thereon, if any, and installed or replaced as part of a renovation or rehabilitation must have a useful life of at least 20 years or must extend the life of the facility by at least 20 years once renovated or rehabilitated.
h.	The proceeds of public improvement bonds and notes, including premium thereon, if any, for statewide supplemental highway funding for transportation, as provided in subdivision (1) of this subsection, shall be issued only for highway projects satisfying all of the following conditions:
1.	An environmental impact statement, if required by law, was completed prior to January 1, 2015.
2.	Construction on the project is projected by the Department of Transportation to commence by January 1, 2017.
3.	The project meets the requirements set forth in Article 14B of Chapter 136 of the General Statutes.
(3)	Reallocation. – For public improvement bonds authorized by this section for projects other than transportation projects, the General Assembly may at this session or at any subsequent session increase or decrease the allocations of the proceeds of public improvement bonds and notes, including premium thereon, if any, for such projects set forth in subdivision (1) of this subsection or reallocate any amounts among agencies or nontransportation projects, including nontransportation projects not listed in this subsection but listed in the six‑year capital improvement plan developed pursuant to G.S. 143C‑8‑5, so long as the aggregate amount of the allocations does not exceed two billion four hundred fifty‑nine million seventy‑six thousand nine hundred fifty‑two dollars ($2,459,076,952). For public improvement bonds authorized by this section for transportation projects, the General Assembly may at this session or at any subsequent session increase or decrease the allocations of the proceeds of public improvement bonds and notes, including premium thereon, if any, for such projects set forth in subdivision (1) of this subsection or reallocate any amounts among transportation projects, including transportation projects not listed in this subsection but listed as the next‑highest‑scoring Strategic Mobility‑funded category project under G.S. 136‑189.11 that is shovel‑ready, so long as the aggregate amount of the allocations does not exceed four hundred million dollars ($400,000,000).
SECTION 1.(g)  Allocation and Tracking of Proceeds. –
(1)	Public improvement bonds. – The proceeds of public improvement 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 "Public Improvement Bonds Fund," which may include such appropriate special accounts therein as may be determined by the State Treasurer and shall be disbursed as provided in this section. Monies in the Public Improvement Bonds Fund shall be allocated and expended as provided in this section.
Any additional monies 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 for deposit to the Public Improvement Bonds Fund may be placed in the Public Improvement 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 section.
Monies in the Public Improvement Bonds Fund or any separate account established under this section may be invested from time to time by the State Treasurer in the same manner permitted for investment of monies 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. Investment earnings, except investment earnings with respect to grant monies to the extent otherwise directed or restricted by the terms of the grant, may be (i) credited to the Public Improvement Bonds Fund, (ii) used to pay debt service on the bonds authorized by this section, (iii) used to satisfy compliance with applicable requirements of the federal tax law, or (iv) transferred to the General Fund of the State.
The proceeds of public improvement bonds and notes, including premium thereon, if any, may be used with any other monies made available by the General Assembly for funding the projects authorized by this section, 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 section is ratified or any subsequent sessions. The proceeds of public improvement bonds and notes, including premium thereon, if any, shall be expended and disbursed under the direction and supervision of the Director of the Budget. The funds provided by this section shall be disbursed for the purposes provided in this section 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.
(2)	Tracking of bond proceeds. – The State Treasurer or the State Treasurer's designee is hereby authorized and directed to set up a comprehensive system of tracking the proceeds of the public improvement bonds and notes, including premium thereon, if any, to the extent necessary to enable the State Treasurer or the State Treasurer's designee to properly account for the use of such proceeds for compliance with applicable requirements of the federal tax law or otherwise. All recipients of such proceeds shall comply with any tracking system implemented by the State Treasurer or the State Treasurer's designee for this purpose. The State Treasurer may withhold such proceeds from any State agency or department not complying with this subdivision.
(3)	Costs. – Allocations to the costs of a capital improvement or undertaking in each case may include allocations to pay the costs set forth in sub‑subdivisions c. through g. of subdivision (2) of subsection (d) of this section in connection with the issuance of bonds for that capital improvement or undertaking.
SECTION 1.(i)  Election. – The question of the issuance of the bonds authorized by this section shall be submitted to the qualified voters of the State at an election to be held in November of 2015. 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 subsection 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 14A 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 question to be used in the ballots or voting systems shall be in substantially the following form:
"[ ] FOR	[ ] AGAINST
The issuance of two billion eight hundred fifty‑nine million seventy‑six thousand nine hundred fifty‑two dollars ($2,859,076,952) State of North Carolina Public Improvement 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, with any other available funds, to fund capital improvements and new facilities for the State, including, without limitation, the construction and furnishing of new facilities; renovation and rehabilitation of existing facilities; the construction and renovation of highways, roads, bridges, and related road infrastructure for, without limitation, the University of North Carolina System, the North Carolina Community College System, the public schools in the State, cultural resources and State Parks, water and sewer systems, the State's National Guard, the Department of Public Safety, the Administrative Office of the Courts, the Department of Agriculture and Consumer Services, and the Department of Transportation."
If a majority of those voting on a bond question in the election vote in favor of the issuance of the bonds described in the question, those bonds may be issued as provided in this section. If a majority of those voting on a bond question in the election do not vote in favor of the issuance of the bonds described in the question, 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 1.(j)  Issuance of Bonds and Notes. –
(1)	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 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.
(2)	Signatures; form and denomination; registration. – Bonds or notes may be issued as certificated or uncertificated obligations. If issued as certificated obligations, 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 of North Carolina or a facsimile thereof 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, and 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 section; provided, however, that nothing in this section shall prohibit the State Treasurer from proceeding, with respect to the issuance and form of the bonds or notes, under the provisions of Chapter 159E of the General Statutes, the Registered Public Obligations Act, as well as under this section.
(3)	Manner of sale; expenses. – Subject to the consent of the Council of State, the State Treasurer shall determine 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 of America, and whether by publishing notices in certain newspapers and financial journals, mailing notices, inviting bids by correspondence, negotiating contracts of purchase, or otherwise, and the State Treasurer is authorized to sell bonds or notes at one time or from time to time at such rate or rates of interest, which may vary from time to time, and at such price or prices, including a price less than the face amount of the bonds or the notes, as the State Treasurer may determine. All expenses incurred in 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 monies.
(4)	Notes; repayment. –
a.	Subject to 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:
1.	For anticipating the sale of bonds to the issuance of which the Council of State shall have given consent, if the State Treasurer shall deem it advisable to postpone the issuance of the bonds.
2.	For the payment of interest on or any installment of principal of any bonds then outstanding, if there shall not be sufficient funds in the State treasury with which to pay the interest or installment of principal as they respectively become due.
3.	For the renewal of any loan evidenced by notes herein authorized.
4.	For the purposes authorized in this section.
5.	For refunding bonds or notes as herein authorized.
b.	Funds derived from the sale of bonds or notes may be used in the payment of any bond anticipation notes issued under this section. 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.
(5)	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 pursuant to the provisions of the State Refunding Bond Act for the purpose of refunding bonds or notes issued pursuant to this section. The refunding bonds and notes may be combined with any other issues of State bonds and notes similarly secured.
(6)	Tax exemption. – Bonds and notes shall be exempt from all State, county, and municipal taxation or assessment, direct or indirect, general or special, whether imposed for the purpose of general revenue or otherwise, excluding inheritance and gift taxes, income taxes on the gain from the transfer of bonds and notes, and franchise taxes. The interest on bonds and notes shall not be subject to taxation as to income.
(7)	Investment eligibility. – Bonds and notes 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, 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 may properly and legally invest funds, including capital in their control or belonging to them. Bonds and 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 now or may hereafter be authorized by law.
(8)	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 section 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 section 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 1.(k)  Variable Interest Rates. – 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 thereof, provided a credit facility agreement supports the bonds or notes, unless the State Treasurer specifically determines that a credit facility agreement is not required, upon a finding and determination by the State Treasurer, that the absence of a credit facility agreement 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 agreement;
(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 such period or periods of time, all 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 agreement or to the State.
If the aggregate principal amount repayable by the State under a credit facility agreement is in excess of the aggregate principal amount of bonds or notes secured by the credit facility agreement, whether as a result of the inclusion in the credit facility agreement 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 agreement 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 1.(l)  Interpretation of Section. –
(1)	Additional method. – The foregoing subsections of this section 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.
(2)	Statutory references. – References in this section 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.
(3)	Broad construction. – The General Assembly specifically has chosen to combine what otherwise might be considered differing projects to be financed into one bond bill and bond question because the General Assembly finds that such differing projects, when taken together, constitute an interrelated, united, and single plan for the State's infrastructure as stated aforesaid. Accordingly, this section, being necessary for the health, welfare, and advancement of the people of the State, shall be broadly construed to affect the purposes thereof.
(4)	Inconsistent provisions. – Insofar as the provisions of this section are inconsistent with the provisions of any general laws, or parts thereof, the provisions of this section shall be controlling.
(5)	Severability. – If any provision of this section or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the section that can be given effect without the invalid provision or application, and to this end the provisions of this section are declared to be severable.
SECTION 2.  Other than community colleges and local school administrative units, each entity receiving the proceeds of public improvement bonds and notes, including premium thereon, if any, issued pursuant to and for projects listed in Section 1 of this act shall report by January 1, 2017, and quarterly thereafter, to the Joint Legislative Capital Oversight Committee, the House of Representatives Appropriations Committee, and the Senate Committee on Appropriations/Base Budget on the projects funded from public improvement general obligation bonds authorized by Section 1 of this act. Each local school administrative unit receiving the proceeds of public improvement bonds and notes, including premium thereon, if any, issued pursuant to and for projects listed in Section 1 of this act shall report by January 1, 2017, and quarterly thereafter, to the Department of Public Instruction on the projects funded from public improvement general obligation bonds authorized by Section 1 of this act, and the Department of Public Instruction shall combine the reports and submit them to the Joint Legislative Capital Oversight Committee, the House of Representatives Appropriations Committee, and the Senate Committee on Appropriations/Base Budget. Community colleges receiving the proceeds of public improvement bonds and notes, including premium thereon, if any, issued pursuant to and for projects listed in Section 1 of this act shall report by January 1, 2017, and quarterly thereafter, to the North Carolina Community Colleges System Office on the projects funded from public improvement general obligation bonds authorized by Section 1 of this act, and the System Office shall combine the reports and submit them to the Joint Legislative Capital Oversight Committee, the House of Representatives Appropriations Committee, and the Senate Committee on Appropriations/Base Budget. Each report shall include the total project costs, the amount to be funded from the bonds, the expenditures to date from the bonds and other sources, and the percentage of each project completed.
SECTION 3.  The State Treasurer shall not issue bonds or notes otherwise authorized by Section 1 of this act in an amount or year where the issuance of the bonds or notes would violate the Debt Affordability Advisory Committee's recommendations on debt capacities required under G.S. 142‑101.
SECTION 4.(a)  Other than for projects for DENR Statewide Children With Disabilities and Veterans With Disabilities Local Parks (Matching Grants), NC Community Colleges, projects for Public Instruction, DENR Statewide Water/Sewer Loans, and AOC Statewide Courthouse Grants, projects funded in whole or in part with the proceeds of public improvement bonds and notes, including premium thereon, if any, issued pursuant to Section 1 of this act, that portion of funds estimated to be needed for escalation of costs shall remain with the Office of State Budget and Management and shall be disbursed only for the following purposes:
(1)	To address unforeseen contingencies related to the specific project for which the funds were made available.
(2)	To address inflation costs related to that specific project.
SECTION 4.(b)  Any funds retained by the Office of State Budget and Management pursuant to subsection (a) of this section at the time a project is completed shall be retained by the Office of State Budget and Management until reallocated for other purposes by the General Assembly. The Office of State Budget and Management shall report on any funds retained pursuant to this subsection within 90 days of a project's completion.
SECTION 5.  Notwithstanding the period of time provided in G.S. 163‑128(a) for which transfers are effective, transfers of voters from a given precinct, for the purpose of voting, to an adjacent precinct for the election held in November of 2015 shall be for that election only and shall not apply to any subsequent election.
SECTION 6.  The Department of Public Safety shall take appropriate measures, including maximizing the use of the Inmate Construction Program, to reduce costs related to construction of correctional projects authorized in S.L. 2007‑323, as amended by S.L. 2009‑209 and S.L. 2009‑451, and S.L. 2008‑107, as amended by S.L. 2009‑209 and S.L. 2009‑451. The Department, with the approval of the Office of State Budget and Management, may use the funds from any savings generated, together with available funds, to finance the capital facility costs of renovating existing space at Central Prison for bed space for long‑term palliative care. No additional special indebtedness may be issued or incurred to finance the construction of bed space for such care. The use of funds authorized by this section shall not require further approval by the Council of State pursuant to Chapter 142 of the General Statutes.
SECTION 7.  This act is effective when it becomes law.