Bill > S172

This bill allows local governments in North Carolina to borrow money specifically for accelerating transportation projects identified in the State Transportation Improvement Program (STIP), with several important provisions and safeguards. Under the new law, local governments can issue grant anticipation notes for STIP regional impact or division need projects, with the notes maturing no later than 12 months after the project's scheduled completion year and no renewals permitted. Before borrowing, the local government must enter into an expedited project agreement with the Department of Transportation that includes detailed requirements such as Local Government Commission approval, project identification, cost, project plan details, funding sources, revenue forecasts, repayment plans, and contingency provisions. The notes can only be issued for an amount not exceeding the identified project funding, and they are considered special obligations that do not pledge the local government's credit or taxing power. The bill also requires the Department of Transportation to develop procedures ensuring that any amendments to the STIP will not delay note repayment and to adopt rules governing these new grant anticipation notes. The legislation aims to provide local governments with more flexible financing options for transportation infrastructure projects while maintaining fiscal responsibility and transparency.

https://www.ncleg.gov/BillLookUp/2025/S172