House Bill 163: Treasury Administrative Changes — House Pensions and Retirement (March 8, 2021)

Summary

Bill analysis of House Bill 163, Treasury Administrative Changes, 2021-2022 General Assembly of North Carolina, dated March 8, 2021 (2 pages). It analyzes the Proposed Committee Substitute H163-CSSH-6 for the House Pensions and Retirement committee and was prepared by legislative analyst Theresa Matula; the bill was introduced by Reps. C. Smith, McNeill, Riddell and Cleveland. The analysis says the bill would let the State Treasurer invest in Sudan and South Sudan under stated conditions, repeal the Sudan (Darfur) Divestment Act, and require Local Government Commission approval of financing in certain public-private partnership contracts. It also covers charter suspensions for the Town of Eureka and the Town of Spencer Mountain and removes a Council of State reporting requirement for the University of North Carolina Health Care System.

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“House Bill 163: Treasury Administrative Changes — House Pensions and Retirement (March 8, 2021).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2009-09-03-h163-smsh-5-cssh-6-v2-b804443da7/, SHA-256 2aa1fa6a0a5fde61e5d4e1225149bd3810873725703febaa00c618965b1ccce6.

Full text

HOUSE BILL 163:
Treasury Administrative Changes.
2021-2022 General Assembly
Committee: House Pensions and Retirement. If favorable, Date: March 8, 2021
re-refer to Local Government. If favorable, re-
refer to Rules, Calendar, and Operations of the
House
Introduced by: Reps. C. Smith, McNeill, Riddell, Cleveland Prepared by: Theresa Matula
Analysis of: PCS to First Edition Legislative Analyst
H163-CSSH-6

OVERVIEW: The Proposed Committee Substitute (PCS) for House Bill 163 would make clarifying
and administrative changes to statutes pertaining to the State Treasurer's Investment Programs, to the
Local Government Commission, and to reports submitted to the Council of State. The bill would
become effective when it becomes law.
BILL ANALYSIS:
Part I. State Treasurer's Investment Programs.
Section 1(a) amends the statutes pertaining to administration of the State Treasurer's investment programs
to provide that the Treasurer may invest in the countries of Sudan and South Sudan to the extent that the
investments are not prohibited by the US Government, or to the extent that the investment is part of an
index or index replication strategy, commingled fund, limited partnership, or similar investment vehicle
or derivative instrument. Section 1(c) repeals Article 6D of Chapter 147 which contains the Sudan
(Darfur) Divestment Act that was enacted by S.L. 2007-486.
Section 1(b) amends the definition of "investment" in Article 6E of Chapter 147 which pertains to the
Iran Divestment Act. The amendment to the definition of "investment" provides that is does not include
index, or index replication strategies, commingled funds, limited partnerships, or similar investment
vehicles, or derivative instruments.
Part II. Local Government Commission.
Section 2 amends the statutes on public-private partnership construction contracts to require a unit of local
government to get approval from the Local Government Commission for the amount financed by a unit
of local government when a development contract is entered into by a unit of local government and the
unit finances all or part of its portion of the cost of the project. This approval must be secured prior to the
execution of the development contract.
Section 3 enacts local government budgetary accounting language pertaining to the use of an automated
system for preaudit and the annual certification of that automated preaudit system.
Section 4(a) amends statutes pertaining to the enforcement of the local government finance chapter as it
relates to the General Assembly suspending the charter of a municipality. It further provides that if a unit
of local government or public authority fails to submit annual audit reports, the Local Government
Commission is authorized to waive the audit requirements based on specified criteria. If the Commission
waives the annual audit requirement, they must consider making a recommendation to the General
Legislative Analysis
Jeffrey Hudson
Division
Director H163-SMSH-5(CSSH-6)-v-2 919-733-2578
This bill analysis was prepared by the nonpartisan legislative staff for the use of legislators in their deliberations and does not constitute an official statement of legislative intent.
House PCS 163
Page 2

Assembly or other organizing body for revocation of the charter or dissolution of the unit of local
government or public authority. Section 4(b) authorizes the Local Government Commission to impound
the books and records and take other action authorized under the changes in 4(a) for the Town of Eureka
and the Town of Spencer Mountain. The Town of Spencer Mountain is in Gaston County. S.L. 2016-45
suspended the Charter of the Town of Spencer Mountain from July 1, 2016 until June 30, 2019. Section
1 of S.L. 2019-29, extended the June 30, 2019 date to June 30, 2023. The Town of Eureka is in Wayne
County. Section 1.5 of S.L. 2019-29 suspended the Charter for the Town of Eureka from July 1, 2019 to
June 30, 2024.
Section 5 amends education statutes to provide that the charter school audit requirements do not include
submission to, review of, or approval by the Local Government Commission.
Part III. Council of State
Section 6 removes the requirement for the University of North Carolina Health Care System to file a
report with the Council of State concerning acquisition or disposition of real property.
EFFECTIVE DATE: This bill would become effective when it becomes law.

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