GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2013

S                                                                                                                                                     1

SENATE BILL 42

Short Title:        Charter School/Govt. Unit.		(Public)
Sponsors:	Senators Daniel, Tillman, Tucker (Primary Sponsors);  Brock, Goolsby, Newton, and Sanderson.
Referred to:	State and Local Government.

February 4, 2013

A BILL TO BE ENTITLED

AN ACT to provide that a charter school is a governmental unit for the purpose of a lease or transfer of personal or real property between a charter school and another governmental unit.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 160A-274(a) reads as rewritten:

"(a)       For the purposes of this section, "governmental unit" means a city, county, school administrative unit, charter school, sanitary district, fire district, the State, or any other public district, authority, department, agency, board, commission, or institution."

SECTION 2.  G.S. 115C-238.29H(a1) reads as rewritten:

"(a1)     Funds allocated by the State Board of Education may be used to enter into operational and financing leases for real property or mobile classroom units for use as school facilities for charter schools and may be used for payments on loans made to charter schools for facilities or equipment. However, State funds shall not be used to obtain any other interest in real property or mobile classroom units. No indebtedness of any kind incurred or created by the charter school shall constitute an indebtedness of the State or its political subdivisions, and no indebtedness of the charter school shall involve or be secured by the faith, credit, or taxing power of the State or its political subdivisions. Every contract or lease into which a charter school enters shall include the previous sentence. The school also may own land and buildings it obtains through non-State sources.sources and as provided in G.S. 160A-274."

SECTION 3.  G.S. 160A-280(b) reads as rewritten:

"(b)      For the purposes of this section, the term "governmental unit" shall have the same meaning as defined by G.S. 160A-274(a) and shall include North Carolina charter schools.has the same meaning as set forth in G.S. 160A-274(a)."

SECTION 4.  This act is effective when it becomes law.