Bill
SB 108
Johnston County gains authority to plan, finance, and construct Johnston Community College facilities, may use college property as security, and lease the buildings back to JCC.
Status: Introduced Jan 23, 2025. According to the provided bill record, status is "Withdrawn From Committee."
Purpose
- Authorize Johnston County to plan, finance, and construct buildings on the campuses of Johnston Community College (JCC) for community college use, and set rules governing financing, property transfers used as security, and the post‑construction lease arrangements.
Key provisions
- Construction authority: Explicitly authorizes Johnston County to construct community college buildings on JCC campuses. “Construct” is defined broadly to include additions, improvements, renovations, and repairs.
- Financing options: Allows the County to finance construction under:
- Article 8 of Chapter 159 of the North Carolina General Statutes (local government financing),
- G.S. 160A‑20 (general municipal borrowing/financing authority),
and by other funding sources (including possible State appropriations).
- Use of college property as security: If the County finances construction, the JCC Board of Trustees may transfer college property to the County to secure the financing; the County must transfer the property back to the Board when the financing is satisfied.
- Leaseback on completion: Upon project completion the County will lease the constructed buildings to JCC under terms the County and the College agree on.
- Procurement and statute compliance:
- The County is exempted from certain provisions otherwise applicable to community college construction — specifically G.S. 115D‑9, G.S. 115D‑15.1, and Part 1 of Article 36 of Chapter 143 — for projects under this act.
- The County must comply with Articles 3D and 8 of Chapter 143 (state contracting/selection provisions that remain applicable).
- Local coordination and oversight:
- The County must consult with the JCC Board of Trustees about programming requirements and keep the Board informed about construction progress.
- Before construction begins, the County and the JCC Board of Trustees must execute a memorandum of understanding (MOU) that allocates roles and responsibilities and addresses timing and cost‑efficiency.
- Scope and effective date: The act applies only to construction projects (including additions/renovations/repairs) coordinated by the County for JCC uses; becomes effective when enacted.
Who would be affected
- Johnston County government: gains authority to design, finance, build, secure financing with college property, and lease buildings to JCC.
- Johnston Community College and its Board of Trustees: will occupy and program the new facilities, participate in MOUs, and may temporarily transfer property as loan security.
- Local taxpayers and bondholders: potential county debt service obligations if the County issues debt to finance projects.
- Contractors and vendors: subject to the procurement rules the County must follow (Articles 3D and 8 of Chapter 143), but certain community‑college‑specific procurement statutes would not apply to these projects.
- State oversight: limited (some state procurement statutes still apply), but the bill creates a local pathway for college facility delivery.
Procedural / timeline notes
- An MOU must be executed before construction starts to define responsibilities and timelines.
- If the County issues debt, property pledged as security must be returned to the College upon satisfaction of the financing.
- Although the bill relaxes some statutory procurement constraints specific to community college projects, it requires compliance with other state procurement articles and ongoing consultation with JCC trustees.
Potential impacts and considerations
- Could accelerate or simplify development of campus facilities by enabling county-led financing and delivery.
- Shifts primary construction and financing responsibility to the county, which could increase local borrowing and long‑term obligations tied to the projects unless other funding sources are used.
- Provides flexibility in project delivery but narrows certain statutory procurement requirements; transparency and competitive procurement practice depend on how Articles 3D and 8 are applied.
- Requires careful drafting of the MOU to allocate risks, operations, maintenance responsibilities, and lease terms.
For further review
- Relevant statutes cited in the bill: G.S. 115D‑9; G.S. 115D‑15.1; G.S. 143‑341(3); G.S. 143‑336; Article 8, Chapter 159; G.S. 160A‑20; Articles 3D and 8, Chapter 143.
Compiled from official sources — confirm details with the bill’s official record.
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