A BILL TO BE ENTITLED
AN ACT to enact the invest NC bond act of 2020.
The General Assembly of North Carolina enacts:
SECTION 1.(a)  Short Title. – This act may be cited as the "Invest NC Bond Act of 2020."
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 three billion nine hundred million dollars ($3,900,000,000) providing funds, with any other available funds, to invest in the State's public facilities, without limitation, construction, repair, renovation, and furnishing of new facilities in order to ensure that the citizens of North Carolina have access to high quality educational facilities, cultural facilities and attractions, and to ensure the viability of water and sewer infrastructure.
SECTION 1.(c)  Findings. – The General Assembly also finds:
(1)	There is a documented need of $8.1 billion in need in the construction and renovation of public school facilities.
(2)	There is a documented need of $16.7 billion in need in water and sewer infrastructure.
(3)	There is a documented need of $4.4 billion in deficiencies at The University of North Carolina System.
(4)	Community college facilities are necessary to educate and train the workforce of tomorrow.
(5)	Community college facilities are necessary to retrain those workers who have been adversely impacted by changing economic conditions.
(6)	Cultural facilities at the North Carolina Zoological Park and the North Carolina History Museum are key cultural and educational attractions for the citizens of the State.
(7)	The facilities constructed in this act will benefit all future North Carolinians for decades to come.
(8)	All facilities are necessary to support the economic vitality of North Carolina.
(9)	The State has prudently managed its finances.
(10)	The State has achieved the highest credit rating available by independent credit rating agencies.
(11)	The debt proposed by this act is affordable and preferable to address the needs of the citizens of the State.
SECTION 1.(d)  Definitions. – The following definitions apply in this act unless the context otherwise requires:
(1)	Bonds. – Bonds issued under this act.
(2)	Cost. – The term includes all of the following:
a.	The cost of constructing, reconstructing, renovating, repairing, enlarging, acquiring, and improving State capital facilities, including the acquisition of land, rights‑of‑way, easements, franchises, equipment, machinery, furnishings, and other interests in real or personal property acquired or used in connection with a State capital facility.
b.	The cost of engineering, architectural, and other consulting services as may be required.
c.	Administrative expenses and charges.
d.	The cost of providing personnel to ensure effective project management.
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.	Finance charges, reserves for debt service, and other types of reserves required pursuant to the terms of any bond or note or related documents, interest before and during construction or acquisition of a State capital facility and, if considered advisable by the State Treasurer, for a period not exceeding two years after the estimated date of completion of construction or acquisition.
g.	The cost of bond insurance, investment contracts, credit enhancement facilities and liquidity facilities, interest rate swap agreements or other derivative products, financial and legal consultants, and related costs of the incurrence or issuance of any bond or note.
h.	The cost of reimbursing the State for any payments made for any cost described in this subdivision.
i.	Any other costs and expenses necessary or incidental to the purposes of this act.
(3)	Credit facility. – 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, 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. – Notes issued under this act.
(5)	Par formula. – A 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 prime rate or base rate, which percentage or percentages may vary or be applied for different periods of time.
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)	State. – The State of North Carolina, including any State agency.
(7)	State agency. – Any agency, institution, board, commission, bureau, council, department, division, officer, or employee of the State. The term does not include counties, municipal corporations, political subdivisions, local boards of education, or other local public bodies.
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 act, 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 act, in an aggregate principal amount not exceeding three billion nine hundred million dollars ($3,900,000,000) for the purpose of providing funds, with any other available funds, for the purposes authorized in this act.
SECTION 1.(f)  Use of Public Improvement Bond and Note Proceeds. –
(1)	Subject to the provision 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:

Public Instruction

Public Schools	New Schools, Additions, Renovations	$2,000,000,000
Capital Assistance
Program

Total for Public Instruction	$2,000,000,000

Water and Sewer Infrastructure

Department of	Water/Sewer Loans and Grants	$800,000,000
Environmental
Quality

Total for Water and Sewer Infrastructure	$800,000,000

NC Community College
Prosperity Zone Projects	$200,000,000

Alamance Comm. College	New Construction, Repairs, Renovations	5,208,446

Asheville‑Buncombe	New Construction, Repairs, Renovations	7,674,446
Technical Comm. College

Beaufort Co. Comm. College	New Construction, Repairs, Renovations	3,506,272

Bladen Comm. College	New Construction, Repairs, Renovations	3,274,654

Blue Ridge Comm. College	New Construction, Repairs, Renovations	3,102,116

Brunswick Comm. College	New Construction, Repairs, Renovations	2,835,793

Caldwell Comm. College	New Construction, Repairs, Renovations	5,000,623
Technical Institute

Cape Fear Comm. College	New Construction, Repairs, Renovations	7,928,709

Carteret Comm. College	New Construction, Repairs, Renovations	2,216,231

Catawba Valley Comm.	New Construction, Repairs, Renovations	5,937,352
College

Central Carolina Comm.	New Construction, Repairs, Renovations	5,923,335
College 

Central Piedmont Comm.	New Construction, Repairs, Renovations	15,764,095
College

Cleveland Comm. College	New Construction, Repairs, Renovations	4,277,918

College of the Albemarle	New Construction, Repairs, Renovations	6,059,511

Coastal Carolina Comm.	New Construction, Repairs, Renovations	4,351,331
College

Craven Comm. College	New Construction, Repairs, Renovations	4,069,140

Davidson County Comm.	New Construction, Repairs, Renovations	5,186,257
College

Durham Tech. Comm.	New Construction, Repairs, Renovations	5,418,808
College

Edgecombe Comm. College	New Construction, Repairs, Renovations	4,522,865

Fayetteville Tech. Comm.	New Construction, Repairs, Renovations	13,136,041
College

Forsyth Tech. Comm. College	New Construction, Repairs, Renovations	8,272,056

Gaston College	New Construction, Repairs, Renovations	5,884,411

Guilford Tech. Comm.	New Construction, Repairs, Renovations	12,264,749
College

Halifax Comm. College	New Construction, Repairs, Renovations	3,479,856

Haywood Comm. College	New Construction, Repairs, Renovations	2,772,246

Isothermal Comm. College	New Construction, Repairs, Renovations	4,176,804

James Sprunt Comm.	New Construction, Repairs, Renovations	2,586,064
College

Johnston Comm. College	New Construction, Repairs, Renovations	4,296,762

Lenoir Comm. College	New Construction, Repairs, Renovations	6,238,158

Martin Comm. College	New Construction, Repairs, Renovations	3,596,531

Mayland Comm. College	New Construction, Repairs, Renovations	2,762,350

McDowell Tech. Comm.	New Construction, Repairs, Renovations	2,704,014
College

Mitchell Comm. College	New Construction, Repairs, Renovations	3,465,636

Montgomery Comm. College	New Construction, Repairs, Renovations	2,916,279

Nash Comm. College	New Construction, Repairs, Renovations	5,295,128

Pamlico Comm. College	New Construction, Repairs, Renovations	1,852,568

Piedmont Comm. College	New Construction, Repairs, Renovations	3,168,468

Pitt Comm. College	New Construction, Repairs, Renovations	8,555,417

Randolph Comm. College	New Construction, Repairs, Renovations	3,980,619

Richmond Comm. College	New Construction, Repairs, Renovations	4,491,480

Roanoke‑Chowan Comm.	New Construction, Repairs, Renovations 	3,008,273
College

Robeson Comm. College	New Construction, Repairs, Renovations	4,696,470

Rockingham Comm. College	New Construction, Repairs, Renovations	4,286,334

Rowan‑Cabarrus Comm.	New Construction, Repairs, Renovations	7,175,882
College

Sampson Comm. College	New Construction, Repairs, Renovations	3,024,075

Sandhills Comm. College	New Construction, Repairs, Renovations	4,422,653

South Piedmont Comm.	New Construction, Repairs, Renovations	3,648,592
College

Southeastern Comm.	New Construction, Repairs, Renovations	4,004,465
College

Southwestern Comm.	New Construction, Repairs, Renovations	4,511,990
College

Stanly Comm. College	New Construction, Repairs, Renovations	4,115,667

Surry Comm. College	New Construction, Repairs, Renovations	4,972,416

Tri‑County Comm. College	New Construction, Repairs, Renovations	2,628,483

Vance‑Granville Comm.	New Construction, Repairs, Renovations	5,414,978
College

Wake Tech. Comm. College	New Construction, Repairs, Renovations	18,378,704

Wayne Comm. College	New Construction, Repairs, Renovations	5,007,050

Western Piedmont Comm.	New Construction, Repairs, Renovations	4,165,443
College

Wilkes Comm. College	New Construction, Repairs, Renovations	4,361,402

Wilson Comm. College	New Construction, Repairs, Renovations	4,023,584

Total for NC Community Colleges		$500,000,000

The University of North Carolina

Appalachian State University	Wey Hall Renovations	$25,200,000

East Carolina University	Howell Science Complex Renovations	38,580,000

Elizabeth City State 	Library Replacement	28,800,000
University

Fayetteville State	Rosenthal and Chick Building Renovations	13,700,000
University

North Carolina Agricultural	Carver Hall Renovations	18,500,000
And Technical State University

North Carolina Central	Lee Biology Building Renovations	8,100,000
University

North Carolina State	Daniels Hall Renovations	37,800,000
University

UNC‑Asheville	Justice Center Renovations	26,800,000

UNC‑Chapel Hill	Carrington Hall Renovations	40,500,000

UNC‑Charlotte	Cameron and Brunson Building Renovations	27,000,000

UNC‑Greensboro	Jackson Library Renovation and Addition	75,600,000

UNC‑Pembroke	Givens Performing Arts Center Renovation	28,080,000

UNC‑School of the Arts	Stevens Center Renovation	37,980,000

UNC‑Wilmington	Randall Library Renovation and Expansion	56,400,000

Western Carolina University	Moore Building Renovation	10,900,000

Winston‑Salem State 	Hauser Building Renovation and Expansion	15,100,000
University

NC School of Science and	Life Safety Renovations	10,960,000
Mathematics

Total for The University of North Carolina	$500,000,000

Department of Natural and Cultural Resources

Museum of History 	Renovation	$60,000,000

NC Zoo	AustrailAsia Complex	$40,000,000

(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 public instruction for public schools capital assistance, as provided in subdivision (1) of this subsection, shall be allocated as follows:
1.	One billion ($1,000,000,000) 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 fifty million ($250,000,000) of such proceeds shall be allocated among local school administrative units located in counties whose wealth is less than the State average wealth. The allocation shall have a numerator of the 2018‑2019 low wealth allotment specific to that local school administrative unit with a denominator of the total 2018‑2019 low wealth allotment, and then multiplied by the total allocation in this sub‑sub‑subdivision.
3.	Seven hundred fifty million ($750,000,000) of such proceeds shall be allocated among local school administrative units on the basis of average daily membership for fiscal year 2018‑2019 where the numerator is average daily membership for the local administrative unit and the denominator is the total average daily membership for the State for fiscal year 2018‑2019.
4.	Bond proceeds for a county for any designation require no local match if any portion of the proceeds results from low‑wealth county receiving funds in sub-sub-subdivision 2 of this sub‑subdivision. Any other county receiving bond proceeds allocated shall provide local matching funds from county funds, other non‑State funds, or a combination of these sources for such proceeds. The amount of matching funds shall be (i) one dollar ($1.00) of local matching funds for every three dollars ($3.00) of such proceeds for a local school administrative unit located in a county that is a development tier one area, as defined in G.S. 143B‑437.08, (ii) one dollar ($1.00) of local matching funds for every two dollars ($2.00) of such proceeds for a local school administrative unit located in a county that is a development tier two area, as defined in G.S. 143B‑437.08, and (iii) one dollar ($1.00) of local matching funds for every one dollar ($1.00) of such proceeds for a local school administrative unit located in a county that is a development tier three area, as defined in G.S. 143B‑437.08. The match requirement may be satisfied by non‑State expenditures for public school facilities made on or after January 1, 2015. If a debt has been incurred since January 1, 2015, 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. No other expenditures made or debts incurred before January 1, 2015, may be used to satisfy the match requirement. As counties satisfy the match requirements of this subsection, they shall document the extent to which they have done so in periodic reports to the State Board of Education. These reports shall include any information and documentation required by the State Board of Education. The State Board of Education shall certify to the State Treasurer from time to time the extent to which the match requirements of this subsection have been met with respect to each county. Bond proceeds shall be distributed for expenditure only as, and to the extent, the matching requirement of this section is satisfied, as certified by the State Board of Education. The State Board of Education shall also require counties to report annually on the impact of funds provided under this act on the property tax rate for that year. These reports shall be public documents and shall be furnished to any citizen upon request. If the State Board of Education determines that a county has not met the matching requirement set forth in this sub‑subdivision by January 1, 2026, the State Board of Education shall certify that fact to the State Treasurer by March 1, 2026. The State Board of Education shall reallocate unmatched funds in the following manner:
I.	Proceeds allocated under sub‑sub‑subdivision 1. shall be reallocated to local administrative units receiving funds under sub‑sub‑subdivision 1. for which the State Board of Education has certified matching funds.
II.	Proceeds allocated under sub‑sub‑subdivision 2. shall be reallocated to local administrative units receiving funds under sub‑sub‑subdivision 2. for which the State Board of Education has certified matching funds.
III.	Proceeds allocated under sub‑sub‑subdivision 3. shall be reallocated to local administrative units receiving funds under sub‑sub‑subdivision 3. for which the State Board of Education has certified matching funds.
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.
b.	The proceeds of public improvement bonds and notes, including premium thereon, if any, for water and sewer infrastructure, as provided in subdivision (1) of this subsection, shall be allocated as follows:
1.	The Department of Environmental Quality shall create a grant and loan program within the Wastewater Reserve and the Drinking Water Reserve established within G.S. 159G‑22. The grant and loan program shall prioritize the following, in order:
I.	Requests used to substantially increase a water and/or sewer infrastructure system's financial system viability, as determined by the Department of Environmental Quality in coordination with the Local Government Commission and State Water Infrastructure Authority.
II.	Requests used to promote increased resiliency of systems at risk of catastrophic damages from flooding or storm events.
III.	Requests allowed under G.S. 159G‑34.
2.	The Department of Environmental Quality may allocate funds to grants and loans to the amount necessary to fulfill the priorities outlined in subdivision (1) of this subsection.
3.	Notwithstanding G.S. 159G‑36 the Department of Environmental Quality may set limits on loans and grants allocated to local governments to an amount necessary to fulfill the priorities outlined in sub‑sub‑sub‑subdivisions I. and II. of sub‑sub‑subdivision 1. of this sub‑subdivision. Projects requested under sub-sub-sub-subdivision III. of sub‑sub‑subdivision 1. of this sub-subdivision are subject to limits required in G.S. 159G‑36.
4.	If the availability of the loan funds exceeds project demand, the limits contained in G.S. 159G‑36 applicable to a loan may be exceeded for the purpose of ensuring that all available loan funds are utilized for projects prioritized pursuant to G.S. 159G‑23.
5.	In addition to the requirements of G.S. 159G‑40, the Department of Environmental Quality, in consultation with the Local Government Division and State Water Infrastructure Authority, shall develop requirements for grant and loan recipients of system viability grants and loans provided in subdivision (1) of this subsection, prior to requesting applications for the use of funds. Grant and loan requirements shall include financial and system performance measures necessary to make recipients indecently viable. Failure of grant recipients to adhere to the requirements of subdivision (4) of this subsection shall result in a default pursuant to Article 10 of Chapter 159 of the General Statutes, and the Local Government Commission shall be required to enforce the provisions of the recipient requirements.
6.	Projects funded under sub‑sub‑sub‑subdivisions I. and II. of sub‑sub‑subdivision 1. of this sub‑subdivision are not subject to G.S. 159G‑41 if the Department of Environmental Quality determines that the delay to entering a construction contract is reasonable due to the nature of the project funded under subdivision (1).
c.	The proceeds of public improvement bonds and notes, including premium thereon, if any, for Community College Prosperity Zone Projects, as provided in subdivision (1) of this subsection, shall be allocated as follows:
1.	The North Carolina State Board of Community Colleges shall create a grant program for the allocation of funds labeled Community College Prosperity Zone Projects. The grant program is for the purpose of funding:
I.	One or more large construction projects or substantial renovation of an existing facility in one or more of the eight prosperity zones. Prosperity zones are identified in G.S. 143B‑28.1.
II.	The projects funded are limited to the following training and education areas for the majority of the facility use: advanced manufacturing, health sciences, information technology, public safety, and transportation.
III.	The State Board of Community Colleges will require that at least two colleges in the prosperity zone collaborate on the use of the requested facility. The submitted application shall require that participating colleges document a plan for the operations of the physical plant of the facility.
IV.	Projects funded under the Community College Prosperity Zones Projects shall not require a local match for construction.
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 for new construction, repairs, and renovations, shall be used for new construction or rehabilitation of existing facilities and repairs and renovations. 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 10 years or must extend the life of the facility by at least 10 years once renovated or rehabilitated. In order to receive the proceeds under this sub‑subdivision for projects for new construction, the community college receiving the proceeds shall provide local matching funds from county funds, other non‑State funds, or a combination of these sources for such proceeds. The amount of matching funds shall be (i) one dollar ($1.00) of local matching funds for every three dollars ($3.00) of such proceeds for a community college project located in a development tier one area, as defined in G.S. 143B‑437.08, (ii) one dollar ($1.00) of local matching funds for every two dollars ($2.00) of such proceeds for a community college project located in a development tier two area, as defined in G.S. 143B‑437.08, and (iii) one dollar ($1.00) of local matching funds for every one dollar ($1.00) of such proceeds for a community college project located in a development tier three area, as defined in G.S. 143B‑437.08. Community colleges are not required to match bond proceeds allocated in this section for rehabilitation of existing facilities and repairs and renovations.
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 act. Monies in the Public Improvement Bonds Fund shall be allocated and expended as provided in this act.
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 act.
Monies in the Public Improvement Bonds Fund or any separate account established under this act 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 act, (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 act, 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 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 act 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.
(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.(h)  Election. – The question of the issuance of the bonds authorized by this act shall be submitted to the qualified voters of the State at a statewide election to be held November 3, 2020. 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 and shall be available 50 days prior to the date on which the election is to be held.
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 three billion nine hundred million dollars ($3,900,000,000) 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 and the renovation and rehabilitation of existing facilities for, without limitation, the public schools of the State, water and sewer systems, the Department of Natural and Cultural Resources, the North Carolina Community College System, and the University of North Carolina System."
If a majority of those voting on the 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 act. 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.(i)  Issuance of Bonds and Notes. –
(1)	Terms and conditions. – Bonds or notes may bear a 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.
(2)	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.
(3)	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 rates of interest, which may vary from time to time, and at any prices, including a price less than or greater than the face amount of the bonds or 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 monies.
(4)	Notes; repayment. –
a.	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:
1.	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;
2.	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;
3.	For the renewal of any loan evidenced by notes authorized in this act;
4.	For the purposes authorized in this act; and
5.	For refunding bonds or notes as authorized in this act.
b.	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.
(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 act. 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 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 act 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.
(6)	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 bonds or notes, and franchise taxes. The interest on bonds or notes is not subject to taxation as income.
(7)	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.
(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. The State expressly reserves the right to amend any provision of this act to the extent it does not impair any contractual right of a bond owner.
(9)	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 issuance, incurrence, carrying, or securing 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 or note issue under this act as the State Treasurer considers necessary.
SECTION 1.(j)  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 and 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 1.(k)  Interpretation of Section. –
(1)	Additional method. – The foregoing subsections of this act shall be deemed to provide an additional and alternative method for the doing of the things authorized under it 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 act to specific sections or Chapters of the General Statutes or to specific acts are intended to be references to such sections, Chapters, or acts as they may be amended from time to time by the General Assembly.
(3)	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.
(4)	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.
(5)	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 2.  This act is effective when it becomes law.