North Carolina SB 946: TAR HEEL JR HISTORIAL FUNDS

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 946

Short Title: Keep Our Schools Standing Act. (Public)
Sponsors: Senators Chitlik and Garrett (Primary Sponsors).
Referred to: Rules and Operations of the Senate
May 4, 2026
*S946-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO ENACT THE KEEP OUR SCHOOLS STANDING BOND ACT OF 2026. 2
The General Assembly of North Carolina enacts: 3
SECTION 1.(a) Short Title. – This act shall be known as the "Keep Our Schools 4
Standing Bond Act of 2026." 5
SECTION 1.(b) Purpose. – It is the intent of the General Assembly by this act to 6
provide, subject to a vote of the qualified voters of the State, for the issuance of fifty billion 7
dollars ($50,000,000,000) general obligation bonds of the State for the purpose of providing 8
funds, with any other available funds, for public school facilities through grants to counties for 9
public school capital outlay projects and repairs and renovations. 10
SECTION 1.(c) Definitions. – Unless the context otherwise requires, the following 11
definitions apply in this section: 12
(1) Bonds. – Bonds issued under this section. 13
(2) Cost. – Without intending thereby to limit or restrict any proper definition of 14
this term in financing the cost of public school capital outlay projects 15
authorized by this section, any of the following: 16
a. The cost of constructing, reconstructing, enlarging, acquiring, and 17
improving projects and acquiring equipment and land therefor. 18
b. The cost of engineering, architectural, and other consulting services as 19
may be required. 20
c. Administrative expenses and charges, including expenses related to 21
determining compliance with applicable requirements of federal law 22
and expenses relating to issuance. Nothing in this section shall permit 23
use of bond funds to pay salaries or fees for bond administration; such 24
salaries and fees shall come from funds appropriated by the General 25
Assembly. 26
d. Finance charges and interest prior to and during construction and, if 27
deemed advisable by the State Treasurer, for a period not exceeding 28
three years after the estimated date of completion of construction. 29
e. The cost of bond insurance, investment contracts, credit enhancement 30
and liquidity facilities, interest rate swap agreements or other 31
derivative products, financial and legal consultants, and related costs 32
of bond and note issuance, to the extent and as determined by the State 33
Treasurer. 34
f. The cost of reimbursing the State for any payments made for any cost 35
described in this subdivision. 36

General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 946-First Edition
g. Any other costs and expenses necessary or incidental to the purposes 1
of this section. 2
Allocations in this section of proceeds of bonds to the costs of a project or 3
undertaking in each case may include allocations to pay the costs set forth in 4
sub-subdivisions c. through g. of this subdivision in connection with the 5
issuance of bonds for the project or undertaking. 6
(3) Credit facility agreement. – An agreement entered into by the State Treasurer 7
on behalf of the State with a bank, savings and loan association, or other 8
banking institution; an insurance company, reinsurance company, surety 9
company, or other insurance institution; a corporation, investment banking 10
firm, or other investment institution; or any financial institution or other 11
similar provider of a credit facility agreement, which provider may be located 12
within or without the United States of America, such agreement providing for 13
prompt payment of all or any part of the principal or purchase price (whether 14
at maturity, presentment or tender for purchase, redemption, or acceleration), 15
redemption premium, if any, and interest on any bonds or notes payable on 16
demand or tender by the owner, in consideration of the State agreeing to repay 17
the provider of the credit facility agreement in accordance with the terms and 18
provisions of such agreement. 19
(4) Notes. – Notes issued under this section. 20
(5) Par formula. – Any provision or formula adopted by the State to provide for 21
the adjustment, from time to time, of the interest rate or rates borne by any 22
bonds or notes, including the following: 23
a. A provision providing for such adjustment so that the purchase price 24
of such bonds or notes in the open market would be as close to par as 25
possible; 26
b. A provision providing for such adjustment based upon a percentage or 27
percentages of a LIBOR rate, a prime rate, or base rate, which 28
percentage or percentages may vary or be applied for different periods 29
of time; or 30
c. Such other provision as the State Treasurer may determine to be 31
consistent with this section and will not materially and adversely affect 32
the financial position of the State and the marketing of bonds or notes 33
at a reasonable interest cost to the State. 34
(6) Public school capital outlay pro