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.