Build NC Bond Act of 2018 Summary

• Establishes Build NC Bonds as a new special indebtedness mechanism for financing highway and transportation projects, with proceeds allocated 50% to Division Need Projects and 50% to Regional Impact Projects (within 2% variance).

• Caps total Build NC Bonds outstanding at $3 billion and limits individual annual issuances to $300 million, with restrictions not applying to refunding bonds.

• Requires State Treasurer approval based on three conditions: Department of Transportation average cash balance ≤ $1 billion, compliance with debt targets, and at least six months prior consultation with legislature.

• Funds Highway Trust Fund as repayment source subject to General Assembly appropriation; bonds mature within 15 years maximum.

• Act becomes effective January 1, 2019 and expires December 31, 2028; State Treasurer must submit debt management plan report to Joint Legislative Transportation Oversight Committee by July 1, 2019.