NORTH CAROLINA GENERAL ASSEMBLY
1971 SESSION
CHAPTER 722
SENATE BILL 35
AN ACT TO AUTHORIZE THE ISSUANCE OF BONDS OF THE STATE TO PROVIDE FOR CAPITAL IMPROVEMENTS FOR STATE INSTITUTIONS AND AGENCIES, SUCH BONDS TO BE ISSUED WITHOUT AN ELECTION DURING THE 1971-73 BIENNIUM IN AN AMOUNT NOT IN EXCESS OF TWO-THIRDS OF THE AMOUNT BY WHICH THE STATE'S OUTSTANDING INDEBTEDNESS SHALL HAVE BEEN REDUCED DURING THE 1969-71 BIENNIUM.
The General Assembly of North Carolina enacts:
Section 1. This act shall be known and may be cited as "The Capital Improvement Legislative Bond Act of 1971."
Sec. 2. The State Treasurer is hereby authorized by and with the consent of the Governor and Council of State to issue and sell at one time or from time to time in the biennium beginning July 1, 1971, bonds of the State to be designated "State of North Carolina Capital Improvement Bonds" in an aggregate principal amount not to exceed forty-five million nine hundred ninety-six thousand five hundred dollars ($45,996,500.00) said amount not being in excess of two-thirds of the amount by which the State's outstanding indebtedness shall have been reduced during the biennium beginning July 1, 1969, for the purpose of providing funds for the construction of buildings, the renovation of existing buildings, the construction of utilities, the renovation of existing utilities, acquiring sites therefor if necessary, acquiring and installing equipment at the institutions, departments, and agencies of the State hereinafter mentioned.
II. GENERAL GOVERNMENT
Department of Administration $ 3,055,000
1. Air Condition and Renovate
Old Revenue Building 1,650,000
2. Textbook, General
Warehouse, and Motor Pool
Facility 1,690,000
Fixed Equipment 50,000
Movable Equipment 80,000 1,820,000
Less Self-Liquidating 415,000
1,405,000
IV. CORRECTION
Department of Juvenile Correction 2,310,000
Stonewall Jackson School
One Cottage for 50 Students 442,500
Fixed Equipment 5,000
Movable Equipment 25,000 472,500
Samarkand Manor
Extension of Electrical
Distribution System
and Street Lights
Utilities 120,000
Cameron Morrison School
Cafeteria 388,000
Fixed Equipment 80,000
Movable Equipment 30,000 498,000
Juvenile Evaluation Center
Three Cottages to House 48 Students Each
Cottages 1,170,000
Movable Equipment 50,000 1,220,000
Department of Correction 2,875,000
1. 72-Bed Special Treatment
Facility, Central Prison 1,275,000
Fixed Equipment 160,000
Movable Equipment 60,000 1,495,000
2. 96-Man Close Custody
Facility, Caledonia Prison 1,080,000
Fixed Equipment 250,000
Movable Equipment 50,000 1,380,000
VI. EDUCATION
N. C. State University 4,255,000
Extension Education Center 6,220,000
Fixed Equipment 100,000
Movable Equipment 550,000 6,870,000
Less Self-Liquidating 2,615,000
4,255,000
UNC at Greensboro 5,965,000
1. Addition to Library 3,935,000
Fixed Equipment 190,000
Movable Equipment 115,000 4,240,000
2. Administration Building 1,650,000
Movable Equipment 75,000 1,725,000
UNC at Asheville 35,000
Air Condition Student
Center Auditorium 35,000
East Carolina University 4,410,000
1. Renovation of Wahl-Coates
School 1,040,000
Fixed Equipment 210,000
Movable Equipment 60,000 1,310,000
2. Addition to Library 2,925,000
Fixed Equipment 40,000
Movable Equipment 135,000 3,100,000
North Carolina Agricultural and
Technical State University 3,400,000
Physical and Health Education Building 3,125,000
Fixed Equipment 75,000
Movable Equipment 200,000 3,400,000
Western Carolina University 4,050,000
1. Natural Science Laboratory Building 2,635,000
Fixed Equipment 800,000
Movable Equipment 90,000 3,525,000
2. Air Condition Hunter Library 525,000
Pembroke State University 1,595,000
Auditorium 1,460,000
Fixed Equipment 100,000
Movable Equipment 35,000 1,595,000
Winston-Salem State University 1,600,000
Auditorium 1,465,000
Fixed Equipment 100,000
Movable Equipment 35,000 1,600,000
Elizabeth City State University 763,000
1. Renovate Butler Hall 250,000
Fixed Equipment 10,000
Movable Equipment 35,000 295,000
2. Renovate Lester Hall 195,000
Fixed Equipment 25,000
Movable Equipment 15,000 235,000
3. Renovate Bias Hall 200,000
Fixed Equipment 15,000
Movable Equipment 18,000 233,000
Fayetteville State University 2,405,000
Academic Building 2,155,000
Fixed Equipment 150,000
Movable Equipment 100,000 2,405,000
North Carolina Central University 4,445,000
1. Communications Building 1,980,000
Fixed Equipment 170,000
Movable Equipment 70,000 2,220,000
Less 1969 Appropriations 200,000
2,020,000
2. Renovations and
Addition to Library 2,220,000
Fixed Equipment 85,000
Movable Equipment 120,000 2,425,000
Department of Archives and History 230,000
Visitor Center - Historic Halifax 190,000
Fixed Equipment 35,000
Movable Equipment 5,000 230,000
VIII. HEALTH AND HOSPITALS
Dorothea Dix Hospital 2,000,000
Central Neuro-Medical
Surgical Facility 2,000,000
Cherry Hospital
Renovate one U-Shaped Dormitory 1,455,000
Fixed Equipment 28,000
Movable Equipment 50,000 1,533,000
John Umstead Hospital 1,070,000
Administration Building 1,025,000
Fixed Equipment 15,000
Movable Equipment 30,000 1,070,000
$45,996,500
The proceeds of said bonds are hereby appropriated for the purposes stated above, respectively, which appropriations shall be in addition to all other appropriations heretofore made, or which may be made at the present session of the General Assembly, and shall be expended and disbursed under the direction and supervision of the Director of the Budget.
If the forty-five million nine hundred ninety-six thousand five hundred dollars ($45,996,500.00) maximum principal amount of bonds herein authorized shall be in excess of two-thirds of the amount by which the State's outstanding indebtedness shall have been reduced during the biennium beginning July 1, 1969, and the amount of bonds issued hereunder shall on that account be less than forty-five million nine hundred ninety-six thousand five hundred dollars ($45,996,500.00), the difference between the proceeds of said bonds and the forty-five million nine hundred ninety-six thousand five hundred dollars ($45,996,500.00) aggregate appropriation set forth above shall be made up from the Contingency and Emergency Fund of the State, and the amount of such difference is hereby appropriated out of the Contingency and Emergency Fund for such purpose.
Each project must be so planned that its estimated cost will be within such limits that will allow for installation of all walks, drives, and grading, all connections to necessary utilities and installation of all fixed and movable equipment so that when completed the project may be fully utilized without requiring additional State funds.
Sec. 3. The funds appropriated by Section 2 of this act to provide for CAPITAL IMPROVEMENTS shall be disbursed for the purposes provided in this act upon warrants drawn by the State Disbursing Officer, which warrants shall not be drawn for any State institution, department or agency until a requisition has been approved by the Director of the Budget and which requisition shall be approved only after full compliance with the Executive Budget Act, Article 1 of Chapter 143 of the General Statutes. Any officer of the State or executive head of any institution, or any director, trustee or commissioner of any State institution, department or agency to which an appropriation is made under provisions of this act who votes for or aids in spending more money for any improvement for his institution, department or agency than is appropriated therefor, except as hereinafter provided may be removed from office by the Governor. Any additional monies which may be received by means of a grant or grants from the United States of America or any agency or department thereof or from any other source to aid in financing the cost of improvements herein referred to may be placed by the State Treasurer in the same fund or in a separate fund and, to the extent permitted by the terms of such grant or grants, shall be disbursed in the same manner and for the purposes mentioned in this act.
Sec. 4. When each project appropriated for in this act is placed under construction contract, funds appropriated therefor shall be encumbered to include all costs for construction, design, investigation, administration, movable equipment and a reasonable contingency. Surplus appropriated funds remaining in the project budget after encumbering the costs described above shall be transferred to a Legislative Bond Project Reserve Fund and credited to the Department of Administration, and any such funds shall be applied only to projects appropriated for in this act. Use of the Legislative Bond Project Reserve Fund shall be at the discretion of the Advisory Budget Commission, and solely to allow for award of contracts where bids exceed appropriated funds, on condition that such projects supplemented shall have been designed within the physical scope intended by the 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 Advisory Budget Commission. Upon completion of all projects enumerated in this act, all remaining funds shall revert to the General Fund.
Sec. 5. Subject to any transfers between appropriations for specific projects as permitted by this act, the appropriations for CAPITAL IMPROVEMENTS made in this act shall be expended only for the specific projects set out in this act and any unexpended balances shall revert to the General Fund of the State on June 30, 1975, or such later date, if any, as the Advisory Budget Commission may in its discretion determine, or upon completion of all projects within the act if prior to June 30, 1975, or such later date.
Sec. 6. Bonds authorized by this act shall bear such date or dates, shall be serial bonds, and shall mature at such times and in such amounts, not exceeding twenty years from their date or respective dates, and shall bear interest payable semi- annually or may be fixed by the State Treasurer with the approval of the Governor and Council of State.
Sec. 7. Said bonds shall be signed on behalf of the State of North Carolina by the Governor, or shall bear his facsimile signature, and by the State Treasurer, or shall bear his facsimile signature, shall bear the Great Seal of the State, or a facsimile thereof shall be impressed or imprinted thereon, and said bonds shall carry interest coupons which shall bear a facsimile of the signature of the State Treasurer. In the event that said bonds shall bear the facsimile signature of the State Treasurer, said bonds shall also be signed by the Chief Clerk of the State Treasury or an assistant treasurer, or a deputy treasurer as the State Treasurer shall determine. In case any officer whose signature or a facsimile thereof shall appear on any bonds or coupons shall cease to be such officer before the delivery of such bonds, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes the same as if he had remained in office until such delivery. The form and denomination of the bonds shall be such as the State Treasurer may determine in conformity with this act, and said bonds shall be subject to registration as is now or may hereafter 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. 8. Subject to determination by the Governor and Council of State as to the manner in which said 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 bonds at one time or from time to time at the best prices obtainable, but in no case for less than par and accrued interest. All expenses incurred in the sale and issuance of the bonds and any bond anticipation notes shall be paid from any premiums received on the sale of bonds or bond anticipation notes or from the Contingency and Emergency appropriation.
Sec. 9. The proceeds of said bonds and the bond anticipation notes herein authorized (except the proceeds of bonds the issuance of which has been anticipated by such bond anticipation notes and except any premium applied to the payment of expenses of the sale and issuance of bonds and bond anticipation notes as provided in Section 8 above) shall be placed by the State Treasurer in a special fund known as the "Capital Improvement Legislative Bond Fund of 1971" and shall be disbursed only for the purposes provided in this act.
Sec. 10. By and with the consent of the Governor and 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 Governor and 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 of 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.
(c) For the renewal of any loan evidenced by notes herein authorized.
Sec. 11. 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 said bonds and any renewals of such notes; and funds provided by the General Assembly for payment of the interest on or principal of bonds herein authorized shall be used in paying the interest 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 payments upon said notes shall be evidenced by interest coupons in the State Treasurer's discretion.
Sec. 12. The full faith, credit and taxing power of the State are hereby pledged for the payment of the principal of and interest on the bonds and notes herein authorized.
Sec. 13. The coupons appertaining to said bonds and notes after maturity shall be receivable in payment of all taxes, debts, dues, licenses, fines, and demands due the State of any kind whatever.
Sec. 14. All of said bonds and notes and coupons 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 to 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. 15. It shall be lawful for all executors, administrators, guardians and fiduciaries generally, and all sinking fund commissions, to invest any monies in their hands in said bonds and notes.
Sec. 16. The provisions of this act are severable, and if any of its provisions shall be held unconstitutional by any court of competent jurisdiction, the decision of such court shall not affect or impair any of the remaining provisions.
Sec. 17. This act shall be in full force and in effect July 1, 1971.
In the General Assembly read three times and ratified, this the 1st day of July, 1971.