GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2011

H                                                                                                                                                    1

HOUSE BILL 315

Short Title:        Taxpayer Information Act.		(Public)
Sponsors:	Representatives Pridgen, Folwell, Collins, and Stone (Primary Sponsors). For a complete list of Sponsors, see Bill Information on the NCGA Web Site.
Referred to:	Finance.

March 14, 2011

A BILL TO BE ENTITLED

AN ACT to require disclosure on the ballot of the estimated amount of interest that would be incurred on indebtedness.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 159-52(b) reads as rewritten:

"(b)      The Commission shall approve the application if, upon the information and evidence it receives, it finds and determines:

(1)        That the proposed bond issue is necessary or expedient.

(2)        That the amount proposed is adequate and not excessive for the proposed purpose of the issue.

(3)        That the unit's debt management procedures and policies are good, or that reasonable assurances have been given that its debt will henceforth be managed in strict compliance with law.

(4)        That the increase in taxes, if any, necessary to service the proposed debt will not be excessive.

(5)        That the proposed bonds can be marketed at reasonable rates of interest.

If the Commission approves the application, the Commission shall use the current interest rates to estimate the total amount of interest resulting from the proposed bond and shall include that estimation in the order approving the application. If the Commission tentatively decides to deny the application because it is of the opinion that any one or more of these conclusions cannot be supported from the information presented to it, it shall so notify the unit filing the application. If the unit so requests, the Commission shall hold a public hearing on the application at which time any interested persons shall be heard. The Commission may appoint a hearing officer to conduct the hearing, and to present a summary of the testimony and his recommendations for the Commission's consideration."

SECTION 2.  G.S. 159-61(d) reads as rewritten:

"(d)      The form of the question as stated on the ballot shall be in substantially the following words:the words set forth in this subsection. The question shall include the estimated total amount of principal and interest resulting from the proposed bond, as calculated by the Commission and included in the order approving the application pursuant to G.S. 159-52.

"Shall the order authorizing authorizing, but not requiring, $ _______ bonds and resulting in an estimated total amount of interest of $ ___________and an estimated total cost of debt of $___________for (briefly stating the purpose) be approved?

            [   ] YES

            [   ] NO""

SECTION 3.  Article 1 of Chapter 142 of the General Statutes is amended by adding a new section to read:

"§ 142-15.4.  General obligation ballot question.

In any general obligation bond issued by the General Assembly, the State Treasurer shall use the current interest rates to estimate the total amount of interest resulting from the proposed bond, and the form of the question as stated on the ballot shall include (i) the amount of principal and the estimated total amount of interest and cost of debt resulting from the proposed bond, as calculated by the State Treasurer, and (ii) a statement indicating that approval of the general obligation bond does not require the issuance of the general obligation bond."

SECTION 4.  This act is effective when it becomes law and applies to bonds proposed on or after that date.