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SB 473

Limiting medical monitoring damages

2025 Regular Session Introduced by Eric Tarr and 1 co-sponsor

Creates the Capital for Communities Special Fund to finance affordable housing, child care, schools, health, jobs, and research via 3.5% quarterly transfers when prior quarter retu

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Bill Summary · SB 473

SB 473 — Capital for Communities Act (NC) — Summary

Status: Introduced (First Edition filed Mar 24, 2025); creates new statutory sections in Chapters 143C and 147 of the General Statutes.

Main purpose / intent

Establish a dedicated, ongoing funding source — the Capital for Communities Special Fund — to finance capital projects that advance community needs (affordable housing, child care and schools, certain health facilities, nonprofit education facilities, workforce development, living‑wage job creation, and medical research). The bill channels a portion of State investments into this special fund when investment returns meet a performance threshold.

Key provisions

  • Creates the Capital for Communities Special Fund (a nonreverting special fund in the General Fund) administered by the Office of State Budget and Management (OSBM). Interest and investment earnings credited to the Fund.
  • Authorized uses (eligible project types include, but are not limited to):
    • Affordable housing
    • Child care centers or schools
    • Specialized ambulatory care facilities addressing health disparities (e.g., birth centers)
    • Groundbreaking medical research
    • Workforce development
    • Creation of living‑wage jobs (defined as no less than the State teacher median salary)
    • Construction of nonprofit education facilities
  • Funding mechanism (new G.S. 147‑69.4A):
    • Quarterly transfers to the Capital for Communities Special Fund from State funds/investments are authorized, but only when the prior quarter’s fund or investment account had a return profile of 7% or higher.
    • When that condition is met, 3.5% of the total of each eligible fund/investment identified is transferred each quarter to the Capital for Communities Special Fund.
    • Transfers are subject to federal law and are to be made by the State Treasurer.
  • OSBM may allow other State agencies to administer appropriations from the Fund.
  • Applies transfers and reporting consistent with the new statutory scheme; effective on enactment and applies to the next State fiscal quarter after becoming law.

Who is affected

  • State Treasurer and State investment accounts (because portion of investment returns may be diverted to the new fund under specified conditions).
  • Office of State Budget and Management (administration and oversight).
  • State agencies that may receive and administer grants from the Fund.
  • Local governments, nonprofit organizations, developers, health care providers, educational institutions, child care operators, and workforce programs that may apply for or receive grants/financing for eligible capital projects.
  • Indirectly, taxpayers and beneficiaries of funded projects (e.g., residents gaining affordable housing or services).

Procedural / timing notes

  • Transfers occur quarterly, contingent on the prior quarter meeting the 7% return profile threshold.
  • The Fund is nonreverting; interest earnings remain in the Fund.
  • The bill adds new sections to Article 9 of Chapter 143C (creates the Fund) and Article 6 of Chapter 147 (establishes transfer mechanics).
  • Effectiveness: the Act takes effect when enacted and applies beginning the next State fiscal quarter.

Potential impacts / considerations

  • Positive: Provides a new capital source for community infrastructure and social‑benefit projects without a recurring General Fund appropriation, when investment performance is strong.
  • Conditional: Funding relies on investment performance (7% prior‑quarter threshold) and on diverting a percentage (3.5%) of eligible funds — which may reduce balances of original funds or limit reinvestment capacity in those funds when transfers occur.
  • Administrative: Requires coordination among Treasurer, OSBM, and recipient agencies to implement transfers and project awards.

This summary highlights the bill’s structure and mechanics; readers seeking the precise statutory text, definitions, or implementation rules should consult the bill language and any implementing OSBM guidance if enacted.

Compiled from official sources — confirm details with the bill’s official record.

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