HB 18 — Local School Administrative Unit Cash Management.

115C-218.105 is amended byadding a new subsection to read:

"(g) With respect to the receipt, deposit, and disbursement of moneys (i) required by law to be deposited with the State Treasurer or (ii) made available for expenditure bywarrants drawn on the State Treasurer, charter schools are subject to Article 6A of Chapter 147 of the General Statutes." SECTION 2.(c) G.S.

115C-238.70 is amended by adding a new subsection to read:

"(e) With respect to the receipt, deposit, and disbursement of moneys (i) required by law to be deposited with the State Treasurer or (ii) made available for expenditure bywarrants drawn on the State Treasurer, regional schools are subject to Article 6A of Chapter 147 of the General Statutes." SECTION 2.(d) G.S.

Upon notification bythe Board of Trustees of the Teachers' and State Employees' Retirement System to the State Treasurer and the Office of State Budget and Management as to the default of the local school administrative unit, the State Board of Education shall withhold from any State appropriation due to the local school administrative unit an amount equal to the sum of all delinquent contributionsand payments dueto theRetirementSystemstheRetirement Systems Division andshalland shall transmit that amount to the Retirement Systems Division.

115C-240(d), if the State Board finds that a local school *H18-v-1* General Assembly Of North Carolina Session 2021 administrative unit is not progressing in good faith and is not using its best efforts to implement the Transportation Information Management System.

(b) Notwithstanding any provision of this Article to the contrary, with respect to the receipt, deposit, and disbursement of moneys (i) required by law to be deposited with the State Page 2 House Bill 18-Second Edition General Assembly Of North Carolina Session 2021 Treasurer or (ii) made available for expenditure by warrants drawn on the State Treasurer, local school administrative units are subject to Article 6A of Chapter 147 of the General Statutes.

(c) Money in the State Public School Fund and State bond moneys shall be released only on warrants drawn on the State Treasurer, signed by such local official as may be required bythe State Board of Education." SECTION 2.(e)2. G.S.

147-86.10G.S. reads as rewritten:

"§ 147-86.10.

Statement of policy.

It is the policy of the State of North Carolina that all agencies, institutions, departments, bureaus, boards, commissions, and officers of the State, whether or not subject to the State Budget Act, Chapter 143C of the General Statutes, shall devise techniques and procedures for the receipt, deposit, and disbursement of moneys coming into their control and custody which are designed to maximize interest-bearing investment of cash, and to minimize idle and nonproductive cash balances.

This policy shall apply to the General Court of Justice as defined in Article IV of the North Carolina Constitution, the public school administrative units, units as defined in G.S.

147-86.12, and the community colleges with respect to the receipt, deposit, and disbursementofmoneysrequiredbylawtobedepositedwiththeStateTreasurerandwith respect to moneys made availableto them for expenditure bywarrants drawnon the StateTreasurer.

This policy shall include the acceptance of electronic payments in accordance with G.S.

147-86.22 to the maximum extent possible consistent with sound business practices." SECTION 2.(f) G.S.

147-86.12." PARTSECTION III.3.

EFFECTIVEG.S. DATE SECTION 3.

147-86.12 reads as rewritten:

"(a) All local school administrative units and their officers and employees are subject to the provision of G.S.

147-86.11with respect to moneys required by law to be deposited with the State Treasurer and with respect to moneys made available to the local school administrative unit for expenditure by warrants drawn on the State Treasurer.

(b) With respect to disbursements made by local school administrative units and their officers and employees, moneys deposited with the State Treasurer may be drawn on no earlier than four business days prior to final disbursement to the ultimate payee.

For purposes of this subsection, "business day" means every day except Saturday, Sunday, or a federal banking holiday.

(c) Notwithstanding G.S.

147-80, and subject to the provisions of Articles 30 and 31 of Chapter 115C of the General Statutes, a local school administrative unit or school finance officer may deposit moneys drawn on the State Treasurer pursuant to subsection (b) of this section in an official depository designated by a local board of education pursuant to G.S.

115C-444(a)." SECTION 4.

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