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North Carolina House Bill H909

North Carolina 2025-2026 Regular Session

North Carolina House Bill H909 Compare Versions

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11 GENERAL ASSEMBLY OF NORTH CAROLINA
22 SESSION 2025
3-H 1
4-HOUSE BILL 909
3+H D
4+HOUSE BILL DRH10418-MU-46
5+
56
67
78 Short Title: State Infrastructure Bank Board. (Public)
8-Sponsors: Representatives Reives, Bell, Howard, and Ross (Primary Sponsors).
9-For a complete list of sponsors, refer to the North Carolina General Assembly web site.
10-Referred to: Commerce and Economic Development, if favorable, Rules, Calendar, and
11-Operations of the House
12-April 14, 2025
13-*H909 -v-1*
9+Sponsors: Representative Reives.
10+Referred to:
11+
12+*DRH10418 -MU-46*
1413 A BILL TO BE ENTITLED 1
1514 AN ACT TO ESTABLISH A STATE INFRASTRUCTURE BANK BOARD . 2
1615 The General Assembly of North Carolina enacts: 3
1716 SECTION 1. Article 10 of Chapter 143B of the General Statutes is amended by 4
1817 adding a new Part to read: 5
1918 "Part 23. State Infrastructure Bank Board. 6
2019 "§ 143B-472.130. Establishment of State Infrastructure Bank Board. 7
2120 (a) Establishment. – There is established a State Infrastructure Bank Board. The Board 8
2221 shall be located in the Department of Commerce for administrative purposes only and shall 9
2322 function independently of the Department. The Board shall establish, administer, and receive 10
2423 federal funds for a State infrastructure bank authorized by the Intermodal Surface Transportation 11
2524 Efficiency Act of 1991, Public Law 102-240, as amended, the National Highway System 12
2625 Designation Act of 1995, Public Law 104-59, as amended, and any other federal law authorizing 13
2726 and governing the use of federal funds for a transportation infrastructure banking program. 14
2827 Through the State infrastructure bank, the Board may also administer and receive State funds and 15
2928 private funds for transportation projects, water and sewer projects, and other infrastructure 16
3029 projects. 17
3130 (b) Federal Financial Assistance. – The Board may apply for, receive, and administer 18
3231 federal financial assistance necessary to fund the State infrastructure bank. The Board shall 19
3332 comply with all conditions and requirements related to the federal financial assistance. 20
3433 (c) Use of Funds. – Except as otherwise prohibited under federal law, the Board may 21
3534 utilize the following funds for the purpose of providing loans or other financial assistance to 22
3635 governmental units, including toll authorities: 23
3736 (1) Federal funds, State funds, and private funds to finance the costs of 24
3837 transportation projects, including aviation projects. 25
3938 (2) State funds and private funds to finance the costs of water and sewer projects 26
4039 and other infrastructure projects. 27
4140 (d) Conditions and Repayment. – Loans or other financial assistance provided under this 28
4241 section are subject to repayment and conditioned upon the establishment of any security and the 29
4342 payment of any fees and interest rates deemed necessary by the Board. Governmental units may 30
4443 apply for loans and execute debt instruments payable to the State in order to obtain loans or other 31
4544 financial assistance provided for in this section. The Board shall require that applicants pledge 32
4645 as security for the obligations revenues derived from operation of the benefited facilities or 33
47-systems, other sources of revenue, or their faith and credit, or any combination thereof. The faith 34 General Assembly Of North Carolina Session 2025
48-Page 2 House Bill 909-First Edition
49-and credit of the governmental units shall not be pledged or be deemed to have been pledged 1
50-unless the requirements of Article 4 of Chapter 159 of the General Statutes have been met. The 2
51-Board may apply a municipality's share of funds allocated under G.S. 136-41.1 or G.S. 136-44.20 3
52-as necessary to ensure repayment of funds advanced under this section. 4
53-(e) Account; Nonreversion of Funds. – The Board shall establish jointly with the State 5
54-Treasurer one or more separate infrastructure banking accounts with necessary fiscal controls 6
55-and accounting procedures. Federal funds for funds credited to this account shall not revert, and 7
56-interest and other investment income shall accrue to the account and may be used to provide 8
57-loans and other financial assistance as provided under this section. 9
58-(f) Rules. – The Board may establish rules necessary to establish and administer the State 10
59-infrastructure bank. 11
60-(g) Effect on Transportation Investment Strategy Formula. – The Board shall not modify 12
61-the formula for the distribution of funds established by G.S. 136-189.11. 13
62-(h) Cooperation on Water and Sewer Projects. – With respect to water and sewer projects, 14
63-the Board shall cooperate with the Division of Water Infrastructure of the Department of 15
64-Environmental Quality and the State Water Infrastructure Authority established under Article 5 16
65-of Chapter 159G of the General Statutes. 17
66-(i) Debt Instruments. – The State Treasurer, with the assistance of the Local Government 18
67-Commission, shall develop and adopt appropriate debt instruments for use under this section. 19
68-The Local Government Commission shall develop and adopt appropriate procedures for the 20
69-delivery of debt instruments to the State without any public bidding. 21
70-(j) Review and Approval of Loans. – The Board shall review and approve all proposed 22
71-loans and other financial assistance to applicants under this section. In addition, the Local 23
72-Government Commission shall review and approve proposed loans to applicants under this 24
73-section pursuant to Articles 4 and 5 of Chapter 159 of the General Statutes, as if the issuance of 25
74-bonds was proposed, so far as those provisions are applicable. 26
75-(k) Outstanding Debt. – Loans authorized by this section are outstanding debt for the 27
76-purpose of Article 10 of Chapter 159 of the General Statutes. 28
77-"§ 143B-472.131. Membership of State Infrastructure Bank Board; meetings. 29
78-(a) Members. – The State Infrastructure Bank Board shall consist of the following voting 30
79-members: 31
80-(1) The Secretary of Commerce. 32
81-(2) The Secretary of Transportation. 33
82-(3) The Secretary of Environmental Quality. 34
83-(4) The State Treasurer. 35
84-(5) The State Auditor. 36
85-(6) The State Budget Officer. 37
86-(b) Terms. – The Board members shall serve terms coinciding with their respective 38
87-offices. 39
88-(c) Officers. – The Board shall elect from its members a chair and vice-chair of the Board. 40
89-(d) Meetings. – The Board shall meet on the call of the chair or any two members but 41
90-shall meet at least once every six months. Each member may be represented by a designee, who 42
91-shall have the same voting powers as the member. The Board shall meet in offices provided by 43
92-the Department of Commerce. In addition, the Department of Commerce shall provide the 44
93-necessary staff and supplies to help the Board accomplish its objectives. The Department of 45
94-Transportation, Department of Environmental Quality, and the Department of the State Treasurer 46
95-may also provide staff assistance. 47
96-(e) Rules. – The Board shall adopt rules, consistent with the requirements of this Part, for 48
97-reviewing and approving loans or other financial assistance provided under this Part. The Board 49
98-shall publish the rules on the Board's website or, if the Board does not have its own website, on 50
99-the Department of Commerce's website. 51 General Assembly Of North Carolina Session 2025
100-House Bill 909-First Edition Page 3
101-(f) Quorum. – A quorum of the Board consists of a majority of the Board's total 1
102-membership. 2
103-(g) Reports. – The Board shall report on its activities quarterly to the Joint Legislative 3
104-Commission on Governmental Operations. 4
105-(h) Compensation. – Members shall serve without compensation but may receive travel 5
106-and subsistence in accordance with G.S. 138-6." 6
107-SECTION 2. G.S. 136-18(12a) is repealed. 7
108-SECTION 3. G.S. 147-69.2 reads as rewritten: 8
109-"§ 147-69.2. Investments authorized for special funds held by State Treasurer. 9
110-(a) This section applies to funds held by the State Treasurer to the credit of each of the 10
111-following: 11
112-… 12
113-(25) Funds held by the State infrastructure bank established under 13
114-G.S. 143B-472.130. 14
115-…." 15
116-SECTION 4. The State infrastructure bank, established in G.S. 136-18(12a), 16
117-including all funds held by it, are transferred to the State Infrastructure Bank Board, established 17
118-in G.S. 143B-472.130, as enacted by Section 1 of this act. 18
119-SECTION 5. Section 1 of this act becomes effective July 1, 2025, and applies to 19
120-loans and other financial assistance applied for on or after that date. The remainder of this act 20
121-becomes effective July 1, 2025. 21
46+systems, other sources of revenue, or their faith and credit, or any combination thereof. The faith 34
47+and credit of the governmental units shall not be pledged or be deemed to have been pledged 35
48+unless the requirements of Article 4 of Chapter 159 of the General Statutes have been met. The 36
49+H.B. 909
50+Apr 10, 2025
51+HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
52+Page 2 DRH10418-MU-46
53+Board may apply a municipality's share of funds allocated under G.S. 136-41.1 or G.S. 136-44.20 1
54+as necessary to ensure repayment of funds advanced under this section. 2
55+(e) Account; Nonreversion of Funds. – The Board shall establish jointly with the State 3
56+Treasurer one or more separate infrastructure banking accounts with necessary fiscal controls 4
57+and accounting procedures. Federal funds for funds credited to this account shall not revert, and 5
58+interest and other investment income shall accrue to the account and may be used to provide 6
59+loans and other financial assistance as provided under this section. 7
60+(f) Rules. – The Board may establish rules necessary to establish and administer the State 8
61+infrastructure bank. 9
62+(g) Effect on Transportation Investment Strategy Formula. – The Board shall not modify 10
63+the formula for the distribution of funds established by G.S. 136-189.11. 11
64+(h) Cooperation on Water and Sewer Projects. – With respect to water and sewer projects, 12
65+the Board shall cooperate with the Division of Water Infrastructure of the Department of 13
66+Environmental Quality and the State Water Infrastructure Authority established under Article 5 14
67+of Chapter 159G of the General Statutes. 15
68+(i) Debt Instruments. – The State Treasurer, with the assistance of the Local Government 16
69+Commission, shall develop and adopt appropriate debt instruments for use under this section. 17
70+The Local Government Commission shall develop and adopt appropriate procedures for the 18
71+delivery of debt instruments to the State without any public bidding. 19
72+(j) Review and Approval of Loans. – The Board shall review and approve all proposed 20
73+loans and other financial assistance to applicants under this section. In addition, the Local 21
74+Government Commission shall review and approve proposed loans to applicants under this 22
75+section pursuant to Articles 4 and 5 of Chapter 159 of the General Statutes, as if the issuance of 23
76+bonds was proposed, so far as those provisions are applicable. 24
77+(k) Outstanding Debt. – Loans authorized by this section are outstanding debt for the 25
78+purpose of Article 10 of Chapter 159 of the General Statutes. 26
79+"§ 143B-472.131. Membership of State Infrastructure Bank Board; meetings. 27
80+(a) Members. – The State Infrastructure Bank Board shall consist of the following voting 28
81+members: 29
82+(1) The Secretary of Commerce. 30
83+(2) The Secretary of Transportation. 31
84+(3) The Secretary of Environmental Quality. 32
85+(4) The State Treasurer. 33
86+(5) The State Auditor. 34
87+(6) The State Budget Officer. 35
88+(b) Terms. – The Board members shall serve terms coinciding with their respective 36
89+offices. 37
90+(c) Officers. – The Board shall elect from its members a chair and vice-chair of the Board. 38
91+(d) Meetings. – The Board shall meet on the call of the chair or any two members but 39
92+shall meet at least once every six months. Each member may be represented by a designee, who 40
93+shall have the same voting powers as the member. The Board shall meet in offices provided by 41
94+the Department of Commerce. In addition, the Department of Commerce shall provide the 42
95+necessary staff and supplies to help the Board accomplish its objectives. The Department of 43
96+Transportation, Department of Environmental Quality, and the Department of the State Treasurer 44
97+may also provide staff assistance. 45
98+(e) Rules. – The Board shall adopt rules, consistent with the requirements of this Part, for 46
99+reviewing and approving loans or other financial assistance provided under this Part. The Board 47
100+shall publish the rules on the Board's website or, if the Board does not have its own website, on 48
101+the Department of Commerce's website. 49
102+(f) Quorum. – A quorum of the Board consists of a majority of the Board's total 50
103+membership. 51 General Assembly Of North Carolina Session 2025
104+DRH10418-MU-46 Page 3
105+(g) Reports. – The Board shall report on its activities quarterly to the Joint Legislative 1
106+Commission on Governmental Operations. 2
107+(h) Compensation. – Members shall serve without compensation but may receive travel 3
108+and subsistence in accordance with G.S. 138-6." 4
109+SECTION 2. G.S. 136-18(12a) is repealed. 5
110+SECTION 3. G.S. 147-69.2 reads as rewritten: 6
111+"§ 147-69.2. Investments authorized for special funds held by State Treasurer. 7
112+(a) This section applies to funds held by the State Treasurer to the credit of each of the 8
113+following: 9
114+… 10
115+(25) Funds held by the State infrastructure bank established under 11
116+G.S. 143B-472.130. 12
117+…." 13
118+SECTION 4. The State infrastructure bank, established in G.S. 136-18(12a), 14
119+including all funds held by it, are transferred to the State Infrastructure Bank Board, established 15
120+in G.S. 143B-472.130, as enacted by Section 1 of this act. 16
121+SECTION 5. Section 1 of this act becomes effective July 1, 2025, and applies to 17
122+loans and other financial assistance applied for on or after that date. The remainder of this act 18
123+becomes effective July 1, 2025. 19