§ 115C-489.6. Administration; consultation; issuance of bonds. - North Carolina Statutes

§ 115C‑489.6. Administration; consultation; issuance of bonds.

(a)        QZAB Program. – TheState Board of Education is designated the State education agency responsiblefor administering the qualified zone academy bond program in North Carolina forthe purposes of 26 U.S.C. § 54E. The State Board of Education shall perform allactivities required to implement and carry out the qualified zone activity bondprogram in North Carolina. Those activities include:

(1)        Defining those areasand schools that are eligible under federal law to participate in the qualifiedzone academy bond program in North Carolina.

(2)        Designing anapplication process under which proposals may be solicited from qualified zoneacademies.

(3)        Determining theeligibility of an applicant to be a participating qualified zone academy.

(4)        Awarding the State'sallocation of total funds among selected applicants and establishing conditionsupon the usage of the allocation. These conditions must include:

a.         Requiring that thebond proceeds be used only for rehabilitating or repairing the public schoolfacility in which the qualified zone academy is located, which may include (i)wiring and other infrastructure improvements related to providing technologyand (ii) equipment related to the rehabilitation or repair, but not personalcomputers or similar technology equipment.

b.         Conditions designedto assure that the allocation is used in a timely manner.

(5)        Confirming that theterms of any qualified zone academy bonds issued in accordance with this programare consistent with the terms of the federal program.

(a1)      Qualified SchoolConstruction Bond Program. – The State Board of Education is designated theState education agency responsible for administering the statewide allocationof authority to issue qualified school construction bonds under 26 U.S.C. §54F. The State Board of Education shall perform all activities required toimplement and carry out the statewide allocation for the qualified schoolconstruction bond program in North Carolina. Those activities include:

(1)        Designing anapplication process under which proposals may be solicited from issuers wishingto issue qualified school construction bonds pursuant to the statewideallocation.

(2)        Awarding the State'sallocation of total funds among selected applicants and establishing conditionsupon the usage of the allocation. These conditions may include:

a.         Requiring that thebond proceeds be used for purposes permitted under 26 U.S.C. § 54F.

b.         Conditions designedto assure that the allocation is used in a timely manner and that theallocations are made in accordance with the requirements of federal statutes,regulations, and rulings.

(3)        Confirming that theterms of any qualified school construction bonds issued in accordance with thisprogram are consistent with the terms of the federal program.

(4)        Acting as the Stateentity designated to receive notice from any local school district that it willnot utilize its local allocation so that the unused resource will become partof the statewide allocation. Local school districts receiving a localallocation are hereby directed to coordinate the use of such allocation withthe State Board of Education so that any local allocation that will not be usedby the local school district becomes eligible for use as part of the statewideallocation.

(b)        Assistance. – TheDepartment of Public Instruction shall provide the State Board of Education anysupport it requires in carrying out this section.

(c)        Consultation. – Inreviewing applications and awarding allocations, the State Board of Educationshall consult with the Local Government Commission to determine whether aprospective issuer of qualified zone academy bonds or qualified schoolconstruction bonds is able to issue or incur marketable obligations.

(d)        Issuance of Bonds.– Any qualified zone academy bonds or qualified school construction bonds maybe issued pursuant to the applicable provisions of and in compliance with theLocal Government Bond Act, Article 4 of Chapter 159 of the General Statutes, orpursuant to the applicable provisions of and in compliance with G.S. 160A‑20,to the extent authorized by G.S. 153A‑158.1. As provided in G.S. 159‑123(b),qualified zone academy bonds or qualified school construction bonds to beissued pursuant to the Local Government Bond Act may be sold by the LocalGovernment Commission at private sale.  (2000‑69, s. 1; 2009‑140, s. 1.)