GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2009
S 2
SENATE BILL 1378
Finance Committee Substitute Adopted 6/1/10
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Short Title: Build North Carolina's Future Act. |
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Referred to: |
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May 25, 2010
A BILL TO BE ENTITLED
AN ACT TO create jobs and make north carolina more competitive globally by financing the building of engineering education facilities, the enhancement and repair of state assets and community college assets, and investment in research and job training equipment at universities and community colleges.
Whereas, the State of North Carolina has always prioritized higher education, from the founding of the nation's first public university in 1793 until today, when both our public university system and community college system are regarded as among the best in America; and
Whereas, the North Carolina Community College System, one of the largest community college systems in the nation, plays a critical role in training our State's educated workforce and in helping nearly 900,000 North Carolinians enhance their job skills; and
Whereas, employers across the State and country understand the importance of higher education in supporting business workforce needs and in preparing tomorrow's workers, leaders, and innovators for success and achievement; and
Whereas, key achievements in North Carolina's history are based on innovation and science, including the Wright Brothers' historic flight at Kitty Hawk, the establishment of the Research Triangle Park, and the State's first Nobel Prize winner in medicine; and
Whereas, as the economy becomes more global in nature, North Carolina is increasingly competing with other countries for economic success - particularly in the fields of science, health and medicine, engineering, technology, and innovation; and
Whereas, the engineering profession has a notable economic impact on our State, with high-paying jobs that are critical to the growth and future success of North Carolina; and
Whereas, the Colleges of Engineering at North Carolina State University and North Carolina Agricultural and Technical State University both have received significant federal funding and recognition for their research, which has led to additional economic benefits in our State; and
Whereas, investing in new engineering facilities on these campuses will better position North Carolina for the future as the nation's economy moves toward recovery; and
Whereas, investing in new research and training equipment at our universities and community colleges will enhance educational opportunities for students in the fields of health and medicine, science, technology, engineering, and computer science; and
Whereas, North Carolina is able to make these investments while still remaining under the debt affordability guidelines set forth in the Debt Affordability Study due to the General Assembly's longtime practice of conservative and responsible borrowing, resulting in favorable comparisons to other AAA-rated states in terms of debt ratios and payback; and
Whereas, making these investments now would have short-term benefits by taking advantage of low costs in the current construction market and creating immediate economic activity in construction-related industries, and also would have long-term benefits in strengthening North Carolina's ability to educate, produce, and innovate; Now, therefore,
The General Assembly of North Carolina enacts:
SECTION 1. The State, with the prior approval of the State Treasurer and the Council of State, as provided in Article 9 of Chapter 142 of the General Statutes, is authorized to issue or incur special indebtedness in order to provide funds to the State to be used, together with other available funds, to pay the capital facility costs of the projects described in this section. In accordance with G.S. 142-83, this section authorizes the issuance or incurrence of special indebtedness:
(1) In the maximum aggregate principal amount of one hundred thirty million dollars ($130,000,000) to finance the capital facility costs of repairing and renovating State facilities and related infrastructure, to be allocated by the General Assembly.
(2) In the maximum aggregate principal amount of fifty-five million dollars ($55,000,000) to finance the capital facility costs of acquiring equipment and completing related capital improvements as provided in Section 3(b) of this act for use by The University of North Carolina System and the North Carolina Community College System.
(3) In the maximum aggregate principal amount of one hundred four million three hundred seventy-four thousand dollars ($104,374,000) to finance the capital facility costs of completing the College of Engineering building and related site work, land acquisition, and infrastructure at North Carolina Agricultural and Technical State University. No more than a maximum aggregate amount of twenty million dollars ($20,000,000) of special indebtedness may be issued or incurred under this subdivision prior to July 1, 2011.
(4) In the maximum aggregate principal amount of one hundred sixty-one million four hundred sixty-two thousand one hundred seventy-five dollars ($161,462,175) to finance the capital facility costs of completing an Engineering IV building and related site work and infrastructure on the Centennial Campus of North Carolina State University. No more than a maximum aggregate amount of twenty million dollars ($20,000,000) of special indebtedness may be issued or incurred under this subdivision prior to July 1, 2011.
SECTION 2. Unless the Current Operations and Capital Improvements Appropriations Act of 2010, in its allocation of funds in the Reserve for Repairs and Renovations for the 2010-2011 fiscal year, provides for a different allocation of proceeds of special indebtedness issued or incurred pursuant to subdivision (1) of Section 1 of this act, such proceeds shall be allocated fifty-four percent (54%) to the Board of Governors of The University of North Carolina for repairs and renovations pursuant to G.S. 143C-4-3, in accordance with guidelines developed in The University of North Carolina Funding Allocation Model for Reserve for Repairs and Renovations, as approved by the Board of Governors of The University of North Carolina, and forty-six percent (46%) shall be allocated to the Office of State Budget and Management for repairs and renovations pursuant to G.S. 143C-4-3. If the proceeds of special indebtedness are allocated to the Board of Governors and the Office of State Budget and Management for repairs and renovations pursuant to this act, this act constitutes the act of appropriation by the General Assembly for purposes of G.S. 143C-4-3(c). Notwithstanding G.S. 143C-4-3, the Board of Governors may allocate funds for the repair and renovation of facilities not supported from the General Fund if the Board determines that sufficient funds are not available from other sources and that conditions warrant General Fund assistance. Any such finding shall be included in the Board's submission to the Joint Legislative Commission on Governmental Operations on the proposed allocation of funds.
The Board of Governors and the Office of State Budget and Management shall consult with the Joint Legislative Commission on Governmental Operations prior to the allocation or reallocation of these funds.
SECTION 3.(a) Of the proceeds of special indebtedness issued or incurred pursuant to subdivision (2) of Section 1 of this act, forty percent (40%) shall be allocated to the Board of Governors of The University of North Carolina and sixty percent (60%) shall be allocated to the State Board of Community Colleges. These funds shall be used by those institutions to purchase equipment for constituent institutions of The University of North Carolina and individual community colleges to be used for teaching and research in the fields of health, science, engineering, and technical education.
SECTION 3.(b) Funds allocated to the State Board of Community Colleges pursuant to subsection (a) of this section may also be used to make capital improvements to existing facilities that are necessary in order to use the equipment purchased pursuant to that subsection. Notwithstanding any other provision of law, community colleges are not required to match allocations made pursuant to this section. For purposes of this subsection, it is not sufficient that a capital improvement would facilitate the use of purchased equipment. The only capital improvements authorized by this subsection are those without which purchased equipment could not be effectively utilized.
SECTION 3.(c) The Board of Governors and the State Board of Community Colleges shall report to the Joint Legislative Commission on Governmental Operations on the allocation or reallocation of funds expended pursuant to this section.
SECTION 4. In addition to any other funds in the Reserve for Repairs and Renovations for the 2010-2011 fiscal year, the proceeds of any bonds and notes issued pursuant to subdivision (1) of Section 1 of this act are transferred to that Reserve.
SECTION 5. The Secretary of Administration is directed to develop a price-matching preference for North Carolina bidders on contracts for projects financed by this act so that qualified North Carolina companies whose bid is within five percent (5%) of the lowest bid may be awarded the contract.
SECTION 6. This act is effective when it becomes law.