House committee substitute makes the following changes to 1st edition. Changes the long title by deleting AS RECOMMENDED BY THE HOUSE SELECT COMMITTEE ON STRATEGIC TRANSPORTATION PLANNING AND LONG TERM FUNDING SOLUTIONS.
Sets out legislative intent of the statute, which is to maintain the integrity of the Strategic Transportation Investments Act (STI). Adds the following provisions. Prohibits the bond proceeds from being treated as revenue. Makes debt service subject to the distribution formula in GS 136-189.11. Requires that funds to be used for the Regional Impact Projects tier be allocated within 2% by population of Distribution Regions and used for Regional Impact Projects. Requires funds to be used for the Division Need Projects tier be allocated within 2% of an equal share to each of the Department divisions and used for Division Need Projects. Provides that the formula variance in GS 136-189.11(e) only applies to the debt service. Provides that nothing in the Build NC Bond Act of 2018 prevents the issuance of other bonds or special indebtedness for highway or transportation purposes.
Amends GS 142-82(2a), changing the definition of Build NC Bonds to remove the requirement to measure compliance with the two requirements of the provision in successive periods of 10 fiscal years each. No specific time frame is provided. Amends GS 142-97(2)(a) to forbid the State Treasurer from issuing Build NC Bonds if the Department of Transportation's average month-end cash balance for the first three months of the prior year is $1 billion or less. Previously, issuance was not allowed if the Department's average combined month-end cash balance was 20% or less of the total expenditures from the Highway Fund and the Highway Trust Fund for the previous fiscal year. Amends GS 142-97(8), exempting Build NC Bonds from the entirety of GS 142-83, which allows the State to incur special indebtedness for funding capital projects only if (a) the General Assembly enacts legislation setting a cap on the maximum amount of special indebtedness and (b) the sum of all special indebtedness authorized by the legislation after January 1, 2013, does not exceed 25% of the bond indebtedness of the State supported by the General Fund that was authorized after January, 1, 2013. Previously the statute only exempted Build NC Bonds from subsection (b) of GS 142-83.
Makes other clarifying changes.
Act is now effective January 1, 2019, and expires December 31, 2028.
Bill Summaries: H1010 (2017-2018 Session)
-
Bill H 1010 (2017-2018)Summary date: Jun 5 2018 - View summary
-
Bill H 1010 (2017-2018)Summary date: May 29 2018 - View summary
Correction:
Under new GS 142-97 each individual issuance of Build NC bonds is limited to no more than $300 million in each fiscal year, not $3 million each fiscal year.
-
Bill H 1010 (2017-2018)Summary date: May 24 2018 - View summary
Amends GS 142-82 to add new subsections (2a), (2b), and (2c), defining terms related to the issuance of Build NC Bonds (bonds), a special indebtedness issued to finance Build NC Projects. Defines a Build NC Project as a capital facility selected for financing using Build NC Bonds. Directs that 2% to 50% of the proceeds from the bonds will be used for Division Need Projects in accordance with GS Chapter 136, Article 14B (defining Division Needs Projects). The remainder of the proceeds are to be used for Regional Impact Projects as defined by GS Chapter 136, Article 14B.
Amends GS Chapter 142, Article 9, State Capital Facilities Finance Act, to enact new GS 142-97. Designates the Highway Trust Fund as the source of repayment for Build NC Bonds. Directs that the State Treasurer may not issue Build NC Bonds unless the State Treasurer recommends issuing them, and the State Treasurer determines that the following requirements have been met: (1) the Department of Transportation’s average combined month-end cash balance for the first three months of the calendar year prior to the date of termination is equal to or less than 20% of the total expenditures from the Highway Fund and Highway Trust Fund for the most recent complete fiscal year; (2) the total amount of Build NC Bonds outstanding after issuance will not cause the recommended transportation debt target to be exceeded; and (3) at least six months prior to the expected date of the issuance, the Department of Transportation consulted with the State Treasurer, the Joint Legislative Transportation Oversight Committee, and the Joint Legislative Commission on Governmental Operations.
Directs that the total amount of special indebtedness resulting from the sale of the bonds does not exceed $3 billion. Limits each individual issuance of the bonds to $300 million (NOTE: summary has been corrected from $3 million) each fiscal year. Forbids the Department of Transportation from using proceeds from the bonds for a non-highway project or a project using tolling.
Amends GS 142-89(a) (defining limits of bonds and notes) to require that the maturity date for Build NC Bonds may not exceed 15 years.
Directs the State Treasurer, in consultation with the Department of Transportation, to implement a debt management policy for Build NC Bonds. Requires the Treasurer to report, by July 1, 2019, to the Joint Legislative Transportation Oversight Committee on the plan.