NORTH CAROLINA GENERAL ASSEMBLY
1963 SESSION
CHAPTER 1079
SENATE BILL 262
AN ACT TO AUTHORIZE THE ISSUANCE OF $100,000,000 IN BONDS OF THE STATE TO PROVIDE FUNDS FOR PUBLIC SCHOOL FACILITIES IN THE COUNTIES OF THE STATE SUBJECT TO A VOTE OF THE PEOPLE OF THE STATE.
WHEREAS, pursuant to the provisions of Chapter 1020, as amended by Chapter 1249, of the Session Laws of 1949, the State of North Carolina made available to the several counties of the State fifty million dollars ($50,000,000.00) for the purpose of providing funds for the constructions, improvement and repair of school plant facilities, of which twenty-five million dollars ($25,000,000.00) was made available from the then existing Post-War Reserve Fund and twenty-five million dollars ($25,000,000.00) from a bond issue approved by a vote of the people of the State; and
WHEREAS, recognizing the acute and continuing need for substantial improvement in school facilities, the State of North Carolina, pursuant to the provisions of Chapter 1046 of the Session Laws of 1953, made available to the several counties another fifty million dollars ($50,000,000.00) provided from a bond issue approved by a vote of the people of the State; and
WHEREAS, said State grants gave encouragement and impetus to local effort in providing capital funds for school improvement; and
WHEREAS, by utilizing local capital outlay funds and local bond issues, substantial progress has been made in the several counties in the addition and improvement of school plant facilities particularly during the past decade; and
WHEREAS, in spite of continuing financial efforts at the local level, there remains in the various counties of the State a serious shortage of school plant facilities; and
WHEREAS, increasing enrollments, needed consolidation of schools and rapidly approaching obsolescence of some existing school plants continue to intensify the need for additional school plant facilities; and
WHEREAS, the financing of capital school improvement at the local school level has become difficult and in some instances beyond the resources of the counties, nearly half of which have already reached or are approaching the legal limits of borrowing capacity; and
WHEREAS, the local financing is complicated further by rising interest rates; and
WHEREAS, the State of North Carolina with its superior resources can come to the aid of the several counties in financing in part badly needed school improvements; and
WHEREAS, the State desires to aid the counties in this emergency without establishing a policy of State construction and improvement of school plant facilities and without acknowledging any constitutional or statutory duty or liability on the part of the State with respect to the construction and improvement of school plant facilities: Now, therefore,
The General Assembly of North Carolina do enact:
Section 1. Subject to a favorable vote of a majority of the qualified voters of the State who shall vote in the election called and held as hereinafter provided, 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, bonds of the State to be designated "State of North Carolina Public School Facilities Bonds of 1963", in an aggregate principal amount not exceeding one hundred million dollars ($100,000,000.00) for the purpose of providing grants-in-aid to the various counties of the State for the construction, reconstruction, enlargement, improvement and renovation of public school facilities, and for the purchase of such equipment as shall be essential to the efficient operation of the facilities. Provided: In the event the State Board of Education determines and finds as a fact that any funds hereinafter allocated to the respective administrative units are not needed for the construction, reconstruction, enlargement, improvement or renovation of public school facilities or purchase of equipment for school facilities by any of the administrative units, such unneeded funds allocated to any of the administrative units may be used for the retirement of school bonds heretofore issued by the county or municipality in which such administrative unit is located. The proceeds of said bonds are hereby appropriated for said purpose, which appropriation shall be in addition to all other appropriations heretofore made or which may be made at the present Session of the General Assembly.
Sec. 2. There shall be allocated and distributed to the county and city administrative units of the State from the proceeds of said bonds the following amounts, respectively, such allocation being on the basis of the per capita average daily membership within each such administrative unit for the school year 1961-62 as herein set forth and certified by the State Superintendent of Public Instruction:
County and City 1961-62 Average Share of
Administrative Units Daily Membership Administrative Unit
Alamance 11,707 $ 1,055,597.06
Burlington 8,976 809,348.19
Alexander 3,829 345,253.37
Alleghany 1,772 159,777.74
Anson 3,710 334,523.37
Morven 1,098 99,004.49
Wadesboro 2,222 200,353.35
Ashe 5,035 453,996.00
Avery 3,316 298,997.17
Beaufort 5,271 475,275.66
Washington 4,329 390,337.38
Bertie 6,974 628,831.80
Bladen 8,678 782,478.12
Brunswick 5,617 506,473.79
Buncombe 18,380 1,657,288.29
Asheville 9,793 883,015.46
Burke 7,703 694,564.29
Glen Alpine 1,410 127,136.91
Morganton 2,697 243,183.16
Cabarrus 7,469 673,464.97
Concord 4,188 377,623.69
Kannapolis 5,544 499,891.53
Caldwell 10,213 920,886.03
Lenoir 2,562 231,010.48
Camden 1,403 126,505.74
Carteret 6,578 593,125.26
Caswell 5,579 503,047.41
Catawba 8,534 769,493.92
Hickory 6,641 598,805.85
Newton 2,779 250,576.94
Chatham 7,108 640,914.32
Cherokee 1,579 142,375.31
Andrews 1,158 104,414.57
Murphy 1,450 130,743.64
Chowan 899 81,061.05
Edenton 2,231 201,164.86
Clay 1,335 120,374.31
Cleveland 8,138 733,787.38
Kings Mountain 4,154 374,557.97
Shelby 4,688 422,707.70
Columbus 11,214 $1,011,144.23
Whiteville 3,104 279,881.55
Craven 8,005 721,795.04
New Bern 5,099 459,766.76
Cumberland 18,313 1,651,247.03
Fayetteville 10,502 946,944.59
Currituck 1,499 135,161.87
Dare 1,247 112,439.53
Davidson 10,568 952,895.68
Lexington 5,134 462,922.64
Thomasville 3,770 339,933.45
Davie 3,904 352,015.97
Duplin 10,959 988,151.38
Durham 9,580 863,809.67
Durham 14,777 1,332,412.90
Edgecombe 7,955 717,286.63
Tarboro 3,560 320,998.17
Forsyth 18,993 1,712,561.29
Winston-Salem 22,709 2,047,625.67
Franklin 6,189 558,049.90
Franklinton 1,463 131,915.82
Gaston 20,999 1,893,438.34
Cherryville 1,878 169,335.55
Gastonia 8,080 728,557.64
Gates 2,466 222,354.35
Graham 1,655 149,228.08
Granville 4,808 433,527.86
Oxford 3,511 316,579.93
Greene 4,892 441,101.98
Guilford 20,955 1,889,470.95
Greensboro 23,227 2,094,332.70
High Point 11,715 1,056,318.41
Halifax 10,665 961,641.98
Roanoke Rapids 3,728 336,146.40
Weldon 2,394 215,862.25
Harnett 12,428 1,120,608.21
Haywood 6,691 603,314.25
Canton 2,694 242,912.66
Henderson 5,981 539,294.95
Hendersonville 2,224 200,533.69
Hertford 6,299 567,968.39
Hoke 4,602 414,953.25
Hyde 1,458 131,464.98
Iredell 8,340 752,001.32
Mooresville 2,427 218,837.80
Statesville 4,405 397,190.15
Jackson 3,653 329,383.79
Johnston 17,173 1,548,455.48
Jones 3,111 $ 280,512.72
Lee 3,734 336,687.40
Sanford 3,360 302,964.56
Lenoir 8,427 759,845.94
Kinston 6,120 551,828.31
Lincoln 4,662 420,363.33
Lincolnton 2,448 220,731.32
Macon 3,597 324,334.38
Madison 3,928 354,180.00
Martin 7,938 715,753.78
McDowell 3,853 347,417.40
Marion 3,004 270,864.75
Mecklenburg
Charlotte 62,960 5,676,978.81
Mitchell 3,439 310,087.84
Montgomery 4,983 449,307.27
Moore 6,806 613,683.57
Pinehurst 813 74,929.63
Southern Pines 1,608 144,990.18
Nash 13,060 1,177,594.40
Rocky Mount 6,993 630,544.99
New Hanover 16,756 1,510,855.42
Northampton 7,812 704,392.61
Onslow 11,508 1,037,653.62
Orange 4,469 402,960.90
Chapel Hill 3,829 345,253.37
Pamlico 2,655 239,396.10
Pasquotank 2,257 203,509.23
Elizabeth City 3,665 330,465.81
Pender 5,176 466,709.69
Perquimans 2,377 214,329.39
Person 6,815 614,495.09
Pitt 13,517 1,218,801.19
Greenville 5,374 484,562.96
Polk 1,950 175,827.65
Tryon 908 81,872.57
Randolph 9,709 875,441.35
Asheboro 4,631 417,568.12
Richmond 4,638 418,199.30
Hamlet 3,198 288,357.34
Rockingham 2,835 255,626.35
Robeson 14,723 1,327,543.80
Fairmont 2,133 192,328.40
Lumberton 4,324 389,886.54
Maxton 1,321 119,111.96
Red Springs 1,690 152,383.96
Saint Pauls 2,011 181,327.90
Rockingham 5,347 $ 482,128.43
Leaksville 4,592 414,051.57
Madison 2,416 217,845.95
Reidsville 4,362 393,312.92
Rowan 13,179 1,188,324.39
Salisbury 4,221 380,599.23
Rutherford 10,849 978,232.90
Sampson 9,958 897,893.19
Clinton 3,293 296,923.30
Scotland 3,874 349,310.93
Laurinburg 3,863 348,319.08
Stanly 6,681 602,412.57
Albemarle 3,075 277,266.67
Stokes 5,225 471,127.93
Surry 7,342 662,013.63
Elkin 1,292 116,497.09
Mount Airy 3,189 287,545.83
Swain 2,074 187,008.48
Transylvania 3,956 356,704.70
Tyrrell 1,168 105,316.25
Union 8,114 731,623.35
Monroe 2,961 266,987.52
Vance 3,718 335,244.71
Henderson 4,864 438,577.27
Wake 21,850 1,970,171.33
Raleigh 15,666 1,412,572.27
Warren 6,237 562,377.97
Washington 3,898 351,474.96
Watauga 3,814 343,900.85
Wayne 11,646 1,050,096.81
Fremont 575 51,846.61
Goldsboro 7,956 717,376.80
Wilkes 9,378 845,595.73
North Wilkesboro 1,801 162,392.61
Wilson 5,502 496,104.47
Elm City 1,727 155,720.18
Wilson 7,721 696,187.32
Yadkin 5,350 482,398.93
Yancey 3,752 338,310.43
_________ _____________
TOTAL 1,106,268 $99,750,000.00
In the event any city administrative unit shall be consolidated into a county administrative unit, the amount allocated above to such city administrative unit shall thereupon be added to the amount allocated to such county administrative unit.
Of the amount allocated above to each administrative unit funds shall be made available at one time or from time to time for the construction, reconsti-uction, enlargement, improvement or renovation of public school facilities, and for the purchase of such equipment as shall be essential to the efficient operation of the facilities, upon approval by the State Board of Education of a plan or plans of expenditure and of school organization submitted by such unit, and said plan or plans may include joint expenditures by two or more administrative units for school facilities and equipment. In approving local plans of expenditure, the State Board of Education shall give priority to basic facilities and equipment essential to an adequate school program, including a diversified industrial education program. Funds received and disbursed under the provisions of this Act shall be administered by the State Board of Education and shall be used only for the purposes specified in this Act.
Sec. 3. The proceeds of said bonds may be used with any Federal funds which might be made available for the construction, reconstruction, enlargement, improvement or renovation of public school facilities, and the State Board of Education and the county and city administrative units are authorized to apply for and accept any Federal funds and agree to the terms and conditions under which such funds shall be made available.
Sec. 4. There is hereby allocated to the State Board of Education for educational surveys and technical assistance necessary to the construction and improvement of school plant facilities, for evaluating the program of school construction made possible through this Act, and for conducting such research in school house planning as would be productive in the future design and construction of school facilities, the sum of two hundred and fifty thousand dollars ($250,000.00) plus any premiums received on the sale of said bonds and any bond anticipation notes herein authorized after deducting such amount as the State Treasurer shall determine is or will be necessary for the payment of all expenses necessarily incurred in the preparation and sale of said bonds and notes pursuant to the provisions of Section 7 hereof. The Division of School Planning in the Department of Public Instruction shall make available to the county and city administrative units the results of any such surveys, evaluations and research and provide any such technical assistance.
Sec. 5. The bonds herein authorized shall bear such date or dates, shall be serial bonds and shall mature at such times and in such amounts, not exceeding twenty (20) years from their date or dates, shall bear interest, at such rate or rates, not exceeding four per centum (4 %) per annum, and may be made redeemable before maturity, at the option of the State, at such price or prices and under such terms and conditions, as may be fixed by the State Treasurer with the approval of the Governor and Council of State.
Sec. 6. The bonds shall be signed on behalf of the State of North Carolina by the Governor or shall bear his facsimile signature and shall be signed by the State Treasurer, 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 case any officer whose signature or a facsimile of whose signature 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. 7. 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 said bonds at one time or from time to time at the best price obtainable, but in no case for less than par and accrued interest, and when the conditions are equal he shall give the preference of puchase to the citizens of North Carolina. All expenses necessarily incurred in the preparation and sale of the bonds and any bond anticipation notes herein authorized shall be paid from the proceeds of any such sale.
Sec. 8. The proceeds of said bonds and of the bond anticipation notes herein authorized (except the proceeds of bonds the issuance of which has been anticipated by such bond anticipation notes) shall be placed by the State Treasurer in a special fund known as the "Public School Facilities Fund of 1963", and shall be disbursed, under the direction and supervision of the State Board of Education as herein provided, only for the purposes provided in this Act.
Sec. 9. 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 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. 10. 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 such bonds and any renewals of such notes; and funds provided by the General Assembly for the payment of interest on or principal of bonds herein authorized shall be used in paying the interest on 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 payable upon said notes may be evidenced by interest coupons in the State Treasurer's discretion.
Sec. 11. The full faith, credit and taxing power of the State are hereby pledged for the payment of the principal of and the interest on the bonds and notes herein authorized.
Sec. 12. 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 whatsoever.
Sec. 13. 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 for 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. 14. It shall be lawful for all executors, administrators, guardians and fiduciaries generally, and all sinking fund commissions, to invest any moneys in their hands in said bonds and notes.
Sec. 15. The question of the issuance of said one hundred million dollars($100,000,00.00) State of North Carolina Public School Facilities Bonds of 1963 shall be submitted to the qualified voters of the State of North Carolina at an election to be held on a date in 1963 or 1964 to be fixed by the Governor by a proclamation issued by him; provided, that the election herein provided for may be held on the same day as any other State, county, municipal or district election, and any other State, county, municipal or district election may be validly held on the same day as the bond election provided for in this Act. Notice of said election shall be given by publication at least twice in a newspaper published in each county in the State or having a general circulation therein, and said election shall be held under and in accordance with the general laws of the State of North Carolina, except that no abstentee ballots shall be allowed in said election unless said election is held at the same time as the 1964 State general election on Tuesday next after the first Monday in November. The provisions of G.S. 163-31, 163-31.1 and 163-31.2 shall govern as to the registration of voters for said election. The State of North Carolina shall reimburse the counties of the State for all necessary expenses incurred in holding said election and registration therefor, the same to be paid out of the Contingency and Emergency Fund unless said election is held at the same time as the 1964 State primary election or 1964 State general election, in which case the State shall furnish to the counties all of the bond ballots and return forms, and the counties shall pay all other regular election expenses. The State Board of Elections shall cause to be printed and distributed the ballots which are to be used in said election, which said ballots shall bear a facsimile of the signature of the Chairman of the State Board of Elections and shall be substantially in the following form:
official ballot
one hundred million dollars state of north Carolina
public school facilities bonds of 1963.
□ For the issuance of one hundred million dollars ($100,000,000.00) State of North Carolina Public School Facilities Bonds of 1963.
□ Against the issuance of one hundred million dollars ($100,000,000.00) State of North Carolina Public School Facilities Bonds of 1963.
(Facsimile signature)
Chairman, State Board of Elections
Those voting in said election who are in favor of the issuance of said bonds shall vote by making an X or check mark in the square opposite the words "For the issuance of one hundred million dollars ($100,000,000.00) State of North Carolina Public School Facilities Bonds of 1963."
Those opposed to the issuance of said bonds shall vote by making an X or check mark in the square opposite the words "Against the issuance of one hundred million dollars ($100,000,00.00) State of North Carolina Public School Facilities Bonds of 1963."
Notwithstanding the foregoing provisions of this Section, voting machines may be used in accordance with rules and regulations prescribed by the State Board of Elections.
If a majority of those voting in said election shall vote in favor of the issuance of said bonds, the said bonds shall be issued as hereinbefore provided. In the event a majority of those voting in said election shall vote against the issuance of said bonds, said bonds shall not be issued.
The result of said election shall be canvassed and declared as provided by law for the holding of elections for State officers and the result thereof certified by the State Board of Elections to the Secretary of State of North Carolina, in the manner and at the time provided by the general election laws of the State.
Sec. 16. All laws and clauses of laws in conflict with this Act are hereby repealed.
Sec. 17. This Act shall become effective upon ratification.
In the General Assembly read three times and ratified, this the 21st day of June, 1963.