S.L. 1975-854

NORTH CAROLINA GENERAL ASSEMBLY

1975 SESSION

CHAPTER 854

HOUSE BILL 1135

AN ACT TO AUTHORIZE THE ISSUANCE OF FORTY-THREE MILLION TWO HUNDRED SIXTY-SEVEN THOUSAND DOLLARS ($43,267,000) OF BONDS OF THE STATE TO PROVIDE FOR CAPITAL IMPROVEMENTS FOR STATE INSTITUTIONS OF HIGHER EDUCATION SUBJECT TO A VOTE OF THE QUALIFIED VOTERS OF THE STATE.

The General Assembly of North Carolina enacts:

Section 1. This act shall be known and may be cited as the "State Institutions of Higher Education Capital Improvement Voted Bond Act of 1975".

Sec. 2. Subject to a favorable vote of a majority of the qualified voters of the State who shall vote in an election called and held as hereinafter provided, 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, bonds of the State, to be designated "State Institutions of Higher Education Capital Improvement Bonds" in an aggregate principal amount not exceeding forty-three million two hundred sixty-seven thousand dollars ($43,267,000), for the purpose of providing funds, with any other funds available therefor, to the University of North Carolina Board of Governors, for needed capital improvements at the State's institutions of higher education, as follows:

1. Western Carolina University $3,423,000

Building for Administrative

Offices and Museum $3,423,000

2. Appalachian State University $3,328,000

Library Book Tower $3,328,000

3. Elizabeth City State University $1,204,000

Addition to Library $1,204,000

4. Fayetteville State University $4,380,000

Science Building $4,380,000

5. North Carolina Agricultural

and Technical State University $2,127,000

Social Science Building $2,127,000

6. North Carolina State University $2,705,000

Gardner Hall Addition $2,705,000

7. Pembroke State University $2,335,000

Fine Arts-Home Economics

Building $1,535,000

Construction — restoration of

Old Main $1,600,000

Less: Federal funds $800,000 $800,000

8. University of North Carolina

at Asheville $1,900,000

Classroom Building $1,900,000

9. University of North Carolina at Chapel Hill $5,372,000

Physical Education and

Intramural Facility $5,372,000

10. University of North Carolina

at Charlotte $6,000,000

Classroom — Office Building $6,000,000

11. University of North Carolina

at Greensboro $5,153,000

Business and Economics Building $5,153,000

12. University of North Carolina

at Wilmington $1,665,000

General Classroom Building $1,665,000

13. Winston-Salem State University $2,175,000

Communications Building $2,175,000

14. The University of North Carolina

Board of Governors $1,500,000

University-wide Architectural

Barrier Removal and Occupational

Safety and Health Act Projects $1,000,000

University-wide Land Acquisition $500,000

Sec. 3. Funds received and disbursed under the provisions of this act shall be expended and disbursed under the direction and supervision of the Director of the Budget.

Each project shall be planned on the basis of an estimated cost that will allow the purchase of all needed fixed equipment and provide drives, walks, grading, and connections to all needed utilities and provide a completed facility that may be fully utilized.

Sec. 4. The funds appropriated by this act shall be disbursed for the purposes provided upon warrants drawn by the State Disbursing Officer, which warrants shall not be drawn until an allotment has been approved by the Director of the Budget, and which allotment shall be approved only after full compliance with the Executive Budget Act, Article I, Chapter 143 of the General Statutes.

Sec. 5. When each project for which an appropriation is made by this act is placed under construction contract, the appropriations therefor shall be encumbered in an amount to cover all costs for construction, design, investigation, administration, movable equipment, and a reasonable contingency. Surplus amounts remaining in the appropriations for each project after encumbering funds for the items described above shall be placed in a project reserve fund credited to the Board of Governors of the University of North Carolina. The use of this project reserve fund shall be at the discretion of the Director of the Budget, with Advisory Budget Commission approval, and upon the request of the Board of Governors of the University of North Carolina, but solely to allow for award of contracts on other projects for which appropriations are made herein where bids exceed the amount of such appropriations, on condition that such projects supplemented shall have been designed within the physical scope intended by the applicable appropriation or any authorized change therein, and all means to award contracts within the appropriation shall have been reasonably attempted in the opinion of the Director of the Budget.

Sec. 6. The institutions of higher education are authorized and empowered to make application to any agency of the United States of America for grants-in-aid for the construction of the several projects in this act, within the scope and intent of the projects as enumerated. The Advisory Budget Commission and the Department of Administration shall be furnished current information on all such requests. Receipt of moneys from such grants or from trusts and gifts shall be deposited with the State Treasurer and expended in accordance with the terms of such gifts or grants which are not contrary to the laws of this State.

Sec. 7. The bonds herein authorized shall bear such date or dates, shall be serial bonds and shall mature at such times and in such amounts, not exceeding 25 years from their date or dates, shall bear interest at such rate or rates, and may be made redeemable, before maturity, at the option of the State, at such price or prices and under such terms and conditions, as may be fixed by the State Treasurer with the approval of the Council of State.

Sec. 8. The bonds issued pursuant to this act shall be signed on behalf of the State of North Carolina by the Governor or shall bear his facsimile signature; shall bear the Great Seal of the State or a facsimile thereof impressed or imprinted thereon; and shall carry interest coupons which shall bear a facsimile of the signature of the State Treasurer. In the event that the bonds shall bear the facsimile signature of the State Treasurer, the bonds shall also be signed by an assistant treasurer, or a deputy treasurer, as the State Treasurer shall determine. Should any officer whose signature or facsimile appears on any bonds or coupons cease to be such officer before the delivery of the bonds, such signature or facsimile shall nevertheless have the same validity for all purposes as if the officer had remained in office until delivery. The form and denomination of the bonds shall be as the State Treasurer may determine in conformity with this act, and the bonds shall be subject to registration as is now or hereafter may be provided by law for State bonds, and provision may also be made for the reconversion into coupon bonds of any bonds registered as to both principal and interest.

Sec. 9. Subject to determination by the Council of State of the manner in which the bonds shall be offered for sale, whether by publishing notices in certain newspapers and financial journals or by mailing notices or by inviting bids by correspondence or otherwise, the State Treasurer is authorized to sell the bonds at one time or from time to time at the best price obtainable, but in no case for less than par and accrued interest. All expense necessarily incurred in the preparation and sale of the bonds and any bond anticipation notes herein authorized shall be paid from the Contingency and Emergency Fund.

Sec. 10. The proceeds of sale of the bonds and of the bond anticipation notes herein authorized, except the proceeds of bonds the issuance of which has been anticipated by such bond anticipation notes, shall be placed by the State Treasurer in a special fund known as the "State Institutions of Higher Education Capital Improvement Voted Bond Act of 1975 Bond Fund", and shall be disbursed as herein provided.

Sec. 11. By and with consent of the Council of State, who shall determine the rate or rates or maximum rate of interest and the date or approximate date of payment, the State Treasurer is hereby authorized to borrow money at the lowest rate of interest obtainable, and to execute and issue notes of the State for the same, but only in the following circumstances and under the following conditions:

(a) For anticipating the sale of any of said 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 such bonds;

(b) For the payment of interest upon or any installment of principal of any said bonds then outstanding, if there shall not be sufficient funds in the State Treasury with which to pay such interest or installment of principal as they respectively fall due;

Sec. 12. Funds derived from the sale of bonds herein authorized shall be used in the payment of any bond anticipation notes that may have been issued in anticipation of the sale of such bonds and any renewals of such notes; and funds provided by the General Assembly for the payment of interest on or principal of bonds herein authorized 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 such bonds. Interest payable upon said notes may be evidenced by interest coupons in the State Treasurer's discretion.

Sec. 13. The full faith, credit and taxing power of the State are hereby pledged for the payment of the principal of and the interest on the bonds and notes herein authorized.

Sec. 14. The coupons appertaining to the bonds and notes after maturity shall be receivable in payment of all taxes, debts, dues, licenses, fines and demands of any kind whatsoever due the State.

Sec. 15. All of the bonds and notes and coupons authorized by this act 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, and the interest on said bonds and notes shall not be subject to taxation as for income, nor shall said bonds or notes or coupons be subject to taxation when constituting a part of the surplus of any bank, trust company or other corporation.

Sec. 16. It shall be lawful for all executors, administrators, guardians and fiduciaries generally, and all sinking fund commissions, to invest any moneys in their hands in said bonds and notes.

Sec. 17. The question of the issuance of the forty-three million two hundred sixty‑seven thousand dollar ($43,267,000) State Institutions of Higher Education Capital Improvement Bonds authorized by this act shall be submitted to the qualified voters of the State of North Carolina at the next statewide election, primary or otherwise, but in any event not later than November 2, 1976; provided, that the election herein provided for may be held on the same day as any other State, county, municipal or district election, and any other State, county, municipal or district election may be validly held on the same day as the bond election provided for in this act. Notice of the bond election shall be given by publication at least twice in a newspaper published in each county in the State or having a general circulation therein, and 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 this election. The State Board of Elections shall reimburse the counties of the State for all necessary expenses incurred in holding said election and registration therefor, the same to be paid out of the Contingency and Emergency Fund, unless the payment of such expenses is otherwise expressly provided for. The State Board of Elections shall cause to be printed and distributed the ballots which are to be used in said election, which said ballots shall be substantially in the following form:

"OFFICIAL BALLOT

FORTY-THREE MILLION TWO HUNDRED SIXTY-SEVEN THOUSAND DOLLAR

STATE INSTITUTIONS OF HIGHER EDUCATION

CAPITAL IMPROVEMENT BONDS

Instructions for Marking Ballot

(a) To vote in favor of the issuance of the bonds, make a cross (x) mark in the square opposite the words 'For the issuance of forty-three million two hundred sixty-seven thousand dollar ($43,267,000) State Institutions of Higher Education Capital Improvement Bonds.'

(b) To vote against the issuance of bonds, make a cross (x) mark in the square opposite the words 'Against the issuance of forty-three million two hundred sixty-seven thousand dollar ($43,267,000) State Institutions of Higher Education Capital Improvement Bonds.'

□ For the issuance of forty-three million two hundred sixty-seven thousand dollar ($43,267,000) State Institutions of Higher Education Capital Improvement Bonds.

□ Against the issuance of forty-three million two hundred sixty-seven thousand dollar ($43,267,000) State Institutions of Higher Education Capital Improvement Bonds.

(Facsimile Signature)

Chairman, State Board of Elections"

Those voting in said election who are in favor of the issuance of said bonds shall vote by making an "x" or check mark in the square opposite the words "For the issuance of forty-three million two hundred sixty-seven thousand dollar ($43,267,000) State Institutions of Higher Education Capital Improvement Bonds."

Those opposed to the issuance of said bonds shall vote by making an "x" or check mark in the square opposite the words "Against the issuance of forty-three million two hundred sixty-seven thousand dollar ($43,267,000) State Institutions of Higher Education Capital Improvement Bonds."

Notwithstanding the foregoing provisions of this section, voting machines may be used in accordance with rules and regulations prescribed by the State Board of Elections.

If a majority of those voting in said election shall vote in favor of the issuance of the bonds, the bonds shall be issued as hereinbefore provided. In the event a majority of those voting in said election shall vote against the issuance of the bonds, the bonds shall not be issued.

The result of the election shall be canvassed and declared as provided by law for the holding of elections for State officers and the result thereof certified by the State Board of Elections to the Secretary of State of North Carolina, in the manner and at the time provided by the general election laws of the State.

Sec. 18. All laws and clauses of laws in conflict with this act are hereby repealed.

Sec. 19. This act shall become effective upon ratification.

In the General Assembly read three times and ratified, this the 25th day of June, 1975.