SB 643 — Invest NC Bond Act of 2021.
Last action — Passed 1st Reading
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✓Introduced
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2In Committee
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3Passed Senate
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4Passed House
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5To Executive
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6Enacted
This bill died with 2021-2022 Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.
Bill Text
What changed in the latest version
53 added · 54 removedPlain-language change summary
In the latest version of Senate Bill 643, there were several changes made primarily to clarify the definitions and provisions concerning the issuance of bonds. For instance, the new version specifies the parameters for the debt proposed by the act and its affordability, aiming to make it clearer how it will positively impact funding for essential community college facilities. These adjustments are important because they help ensure greater transparency and understanding of how the bond funding will support workforce development in North Carolina.
FILED SENATE GENERAL ASSEMBLY OF NORTH CAROLINA AprSESSION 6, 2021 S.B.S 1 SENATE BILL 643 Short Title:
643 SESSION 2021 PRINCIPAL CLERK S D SENATE BILL DRS15258-NExf-68A Short Title:
Rules and Operations of the Senate April 7, 2021 A BILL TO BE ENTITLED AN ACT TO ENACT THE INVEST NC BOND ACT OF 2021.
– This section maymaybe be cited as the "Invest NC Bond Act of 2021." SECTION 1.(b) Purpose.
(3) CommunityCommunitycollege college facilities are necessarynecessaryto to educate and train the workforce of tomorrow.
(11) The debt proposed bybythis this act is affordable and preferable to address the needs of the citizens of the State.
– The following definitions applyapplyin in this section unless the context otherwise requires:
*DRS15258-NExf-68A**S643-v-1* General Assembly Of North Carolina Session 2021 (2) Cost.
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 bybythe the State Treasurer.
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,foraperiodnot exceedingexceedingtwo twoyearsaftertheestimateddateyearsaftertheestimateddate of completion of construction or acquisition.
The cost of bond insurance, investment contracts, credit enhancement facilities and liquidityliquidityfacilities, 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.
Page 2 DRS15258-NExf-68ASenate Bill 643-First Edition General Assembly Of North Carolina Session 2021 b.
Such other provision as the State Treasurer may determine to be consistent with this act and will not materiallymateriallyand andadverselyaffect adversely affect the financial position of the State and the marketing of bonds or notes at a reasonable interest cost to the State.
– (1) Subject to the provisions of subdivision (2) of this subsection, the proceeds of publicimprovementbonds andnotes, includingincludingpremium premium thereon, ifany, shall be used for the projects in the following general amounts set forth below.
(1a) Subject to the provision of subdivision (2) of this subsection, the proceeds of publicimprovementbonds andnotes, includingincludingpremium premium thereon, ifany, shall be used for the projects in the following general amounts set forth below:
Iverson Riddle Developmental Center $60,275,700 Black Mountain Neuro-medical Center $20,808,000 Murdoch Developmental Center $50,904,000 O'Berry Neuro-medical Center $23,833,800 Total for Department of Health and Human Services $155,821,500 DRS15258-NExf-68ASenate Bill 643-First Edition Page 3 General Assembly Of North Carolina Session 2021 2 Department of Environmental Quality 4 Reedy Creek Lab $45,000,000 Total for Department of Environmental Quality $45,000,000 7 NC Community Colleges 9 Alamance Comm.
New Construction, Repairs, Renovations $8,910,697 College Page 4 DRS15258-NExf-68ASenate Bill 643-First Edition General Assembly Of North Carolina Session 2021 2 Edgecombe Comm.
New Construction, Repairs, Renovations $4,651,840 College DRS15258-NExf-68ASenate Bill 643-First Edition Page 5 General Assembly Of North Carolina Session 2021 2 Robeson Comm.
College New Construction, Repairs, Renovations $6,344,049 Total for NC Community Colleges $500,000,000 University of North Carolina Appalachian State University Duncan Hall Renovations $20,000,000 East Carolina University Howell Science Building South $30,000,000 East Carolina University Brody School of Medicine $187,000,000 Elizabeth City State University Infrastructure Upgrades $27,000,000 Water and Electrical, Phase II Page 6 DRS15258-NExf-68ASenate Bill 643-First Edition General Assembly Of North Carolina Session 2021 2 North Carolina State University Renovation – Lampe Drive Building $42,000,000 4 North Carolina State University STEM Building $73,000,000 6 UNC-Chapel Hill Business School $68,000,000 8 UNC-Chapel Hill Carrington Hall Comprehensive Renovations $40,500,000 UNC-Charlotte Cameron Second Floor Renovations $19,100,000 UNC-Charlotte Burson Building Renovations $25,900,000 UNC-Greensboro Jackson Library Renovation and Addition $81,000,000 UNC-Pembroke New School of Health Sciences $67,500,000 UNC-School of the Arts Stevens Center Renovation – Phase I$25,00,000I $25,00,000 UNC-Wilmington Randall Library Renovation and Expansion $56,000,000 NC Center for the Advancement Residence Hall and Professional$21,000,000Professional $21,000,000 of Teaching (NCCAT) Development Center Total for University of North Carolina $783,000,000 Department of Natural and Cultural Resources Museum of History Phase I Renovations and Expansion $54,000,000 NC Zoo – Asia Exhibit $45,000,000 NC Zoo – Australia Expansion Design Funds $25,000,000 NC Museum of Art Museum Park $20,000,000 Historic Sites Funding for Colonial and Revolutionary Era Sites $45,000,000 State Parks $250,000,000 Total for Natural and Cultural Resources $439,000,000 Unforeseen Costs Reserve $48,178,500 Grand Total $4,700,000,000 (1b) Process for allocating funds from the Unforeseen Costs Reserve.
OSBM may allocate funds from the Unforeseen Costs Reserve only when it is satisfied DRS15258-NExf-68ASenate Bill 643-First Edition Page 7 General Assembly Of North Carolina Session 2021 that the conditions set out under these criteria have been met.
$1,000,000,000 of such proceeds shall be allocated equally to eachcounty.eachcounty.Eachcounty's allocationshall bedistributedtothe 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.
Eachcounty's allocationshall bedistributedtothe 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.
143B-437.08, (ii) one dollar ($1.00) of local matching funds for everyeverytwo 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.
The match Page 8 DRS15258-NExf-68ASenate Bill 643-First Edition General Assembly Of North Carolina Session 2021 requirement may be satisfied by non-State expenditures for public school facilities made on or after January 1, 2017.
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, 2028, the State Board of Education shall certifycertifythat that fact to the State Treasurer by March 1, 2028.
DRS15258-NExf-68ASenate Bill 643-First Edition Page 9 General Assembly Of North Carolina Session 2021 I.
Any items purchased with such proceeds and installed or replaced as part of a renovation or rehabilitationmust haveausefullifeofat least 10yearsormust10 yearsormust 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 collegereceivingtheproceedsshallprovidelocalmatchingfundsfrom countycountyfunds, funds, other non-State funds, or a combination of these sources for such proceeds.
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 anyanyother 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 Page 10 DRS15258-NExf-68ASenate Bill 643-First Edition General Assembly Of North Carolina Session 2021 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 bybythe the terms of thegrant.
– The State Treasurer or the State Treasurer's designee is hereby authorized and directed to set up a comprehensive system oftrackingoftrackingtheproceeds theproceeds ofthepublicimprovementbonds 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.
Ballots, voting systems authorized by Article 14A of Chapter 163 of the General Statutes,orboth maybe used in accordance with rulesprescribedbytheStateBoardofElections.rulesprescribed bytheStateBoardofElections.
DRS15258-NExf-68ASenate Bill 643-First Edition Page 11 General Assembly Of North Carolina Session 2021 The bond question to be used in the ballots or voting systems shall be in substantially the following form:
The results of the election shall be canvassed and declared as provided bybylaw law for elections for State officers;
– Bonds ornotesmaybearadateordates,maybeserialornotesmaybear adateordates,maybeserial 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.
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 anyanybond 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 Page 12 DRS15258-NExf-68ASenate Bill 643-First Edition General Assembly Of North Carolina Session 2021 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.
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 anyanynotes notes and any renewals thereof, the proceeds of which shall have been used in paying interest on or principal of the bonds.
– ByByand 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 proceeds from the sale of any refunding bonds or notes shall be applied to the immediate paymentandretirementofthebondsornotesbeingrefundedor,ifnotrequired 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 paypayanyexpenses any expenses incurred in connection with the refunding.
Show all 47 changed lines (7 more)
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) DRS15258-NExf-68ASenate Bill 643-First Edition Page 13 General Assembly Of North Carolina Session 2021 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.
– Bonds and notes shall at all times be free from taxation by the State or anyanypolitical political subdivision or anyanyof oftheiragencies,their exceptingagencies, estate,exceptingestate, inheritance, or gift taxes, income taxes on the gain from the transfer of bonds or notes, and franchise taxes.
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 anyanypurpose purpose for which the deposit of bonds, notes, or obligations of the State or any political subdivision is now or maymayhereafter hereafter be authorized by law.
The State Treasurer is authorized to employ and designate any financial consultants, underwriters, and bond attorneys to be associatedwith anybondornoteissueunderthis sectionsectionas as theStateTreasurer considers necessary.
Page 14 DRS15258-NExf-68ASenate Bill 643-First Edition General Assembly Of North Carolina Session 2021 (3) Be made subject to redemption or a mandatory tender for purchase prior to maturity;
– If anyanyprovision 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 which can be given effect without the invalid provision or application, and to this end, the provisions of this section are declared to be severable.
DRS15258-NExf-68ASenate Bill 643-First Edition Page 15
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Action History
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Passed 1st Reading
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Ref To Com On Rules and Operations of the Senate
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Filed
Sponsors
- Jay J. Chaudhuri · Cosponsor
- deViere · Cosponsor
- Nickel · Cosponsor
- Michael Garrett · Primary
- Sydney Batch · Primary
- Crawford · Cosponsor
- Marcus · Cosponsor
- Mujtaba A. Mohammed · Cosponsor
- Natalie S. Murdock · Cosponsor
Sponsorship breakdown
Export CSV (upgrade) →2 sponsors · 7 co-sponsors · 170 not signed on
Sponsors (2)
- Michael Garrett Democratic
- Sydney Batch Democratic
Co-sponsors (7)
- Jay J. Chaudhuri Democratic
- deViere
- Nickel
- Crawford
- Marcus
- Mujtaba A. Mohammed Democratic
- Natalie S. Murdock Democratic
Not signed on (170)
170 members have not signed on to this bill.
Show all 170 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Subjects
Frequently asked questions
- Who sponsors SB 643?
- SB 643 is sponsored by Jay J. Chaudhuri (Democratic), deViere, Nickel, Michael Garrett (Democratic), Sydney Batch (Democratic), Crawford, Marcus, Mujtaba A. Mohammed (Democratic), and Natalie S. Murdock (Democratic).
- What is the current status of SB 643?
- This bill died with 2021-2022 Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
- Where can I track SB 643?
- Track SB 643 free on One Click Politics — get push/email alerts when it moves.
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