Committee on Capital to order. I'd like to introduce our Sergeant-of-Arms that we have with us today, we have Sergeant-at-Arms Marvin Lee and Reggie Steels. Thank you very much, we appreciate that. Being Thursday, we do not have our Pages, what's being handed out is the committee report and if you can bear with us, we're assembling a quorum. This is a unique committee in terms of what a quorum constitutes, and so we're working through that. So at this time, I'd like to recognize Mark Bondo with the staff to present the report. Good afternoon, Mark Bondo with Fiscal Research. We'll start with the Appropriations Committee Report or the Money Report, actually this document. Opening up on page M1, the first item that the Capital Budget funds is the Dorton Arena roof replacement for the Department of Agriculture and Consumer Services. This is at the State Fairgrounds in Raleigh, $2.3 million. To provide additional funds to the Department of Cultural Resources for the USS North Carolina hull repair in Cofferdam $3 million which will match additional funds raised by the Department of Cultural Resources. To provide the state match of about $5.1 million for water resources development projects. The projects are listed in a special provision, and this item is the same as in the governor's budget. To provide $15 million for State Crime Lab facilities to deal with potential increased need for DNA analysis. To provide the state match for a variety of armory and facility projects $600, 000 in the first year, about $5.1 million in the second year provides funding for the third floor roof replacement and expenses of basement of the general assembly building, for the legislative building, the next page provide $5 million in state of general funds to provide full planning for the [xx] building I didn't see state university, this plant will match $9 million of non state funds at the university and the total cost of the project is estimated to be about $190 million or up to that amount. Item eight provides four plant planning for the engineering building at NC State University, this will complete engineering level and NC state, the total estimated cost this project is $154 million half which the university will raise $77 million to be financed to the support debating bill. Item nine, what in school this provides advanced planning funds to create a new Western School of Science and Maths Campus in Morgantown, this will match non state funds of $800, 000 to provide a total amount of $2.4 million. There're two thirds bonds authorized within this bill should a general obligation bond package not has the General Assembly this will be highlighted in a special provision the first item is the high petrol train in academy phase one, this provides funds to construct and renovate the Highway Patrol Training Academy on Raleigh and road, the $30.1 million provides funds for the DHHS new medical examiner lab and foresight that Wake Forest University of about $13 million provides the state match for the NC state engineering building to complete the engineering noble this project also received planning funds earlier. Provides funding to complete the UNC Charlotte new scientist building of $90 million provides funds there authorizes in readiness operations states health sciences building about $70.8 million this project received planing in the current lineum, and that concludes the money report, I can't wait for questions to go through provisions. OK. Moving on to provisions which is your next document. Page one is a boiler plate provision that requires required to appropriate funds for capital. I apologize it's like we have a copying error, if the
water resources development projects were not copied, we may have to come back to that one. Sorry. Apologize, we're going to have to get some copying done to complete the package. Is this the only one? No, just like every other page like 9, [xx] 11, so 10 is not here 11 and 13.12 is not here Does it look alright? It's all that you can say that. Sorry everybody. Are there any questions on the [xx] Report? while we beg your pardon here just a moment while we get some more information is there any questions from the members regarding the money report? It's a comment I've failed to mention that Secretary Dorcas is with us today we appreciate you coming and enjoying us yoday while we're doing our thing here so very much if we can take a recess just for a moment five minutes we'll go on recess. Hey at this time I would like to read this committee meeting, we have more copies coming up as soon as possible but at this time we will distribute what copies we do have available so that we can continue forward that's correct and you do have and own our website. We have a website? I'm kidding. Okay Alright, we will start over the provision package page one again this is the standard to elaborate the power year, capital propriation page two is again follows the money and is well appropriating the various projects and procection to the anomity plant size the building this shows the $5million and general fund matching the $9 million of empty state non state funds page four are your water resources development projects this lists the projects that will be funded, page five lists projects will alo be funded by carry forward funds by the Department page seven are non general on project authorization, authorizes projects at the department of agriculture and consumer services, to department of environment and natural resources, to department of transportation worldwide resources commission. For a total of $19.6 million in the first year. Of the Bahingham and $12.4 million in the second year, so a lot of funds that standard provision to transfer funds to state treasure the department of agriculture and consumer services but the differences the amount of $75, 000 each year the Bahingham, page nine through the rations reserve allocation in the event of funding for repairs and renovation, 1/3 of the money will go to the Board of Governors at the University of North Carolina 2/3 will go to the office state budget and management for distribution to state agencies, on page 10 line 7 through 9 additional language, the board of governors shall consider that availability of non general fund resources and determining which projects funded with fund allocated for the board of governors from the reserve, prepare and innovations, page 11 is boiler plate this calls normal language in the capital process, page 12 is boiler plate just continue to report on capital projects that goes to the General Assembly. Page 14 is boilerplate but it's sort of new boilerplate. It was started in 13 with the appropriation of funds from national guard for armory and facility renovation and repair. Page 15 as a
new provision it requires non general fund resources to be used for advanced planning of the university capital projects prior to surmision for a request for a full planning University of North Carolina shall use non-state funds not including carry forward funds to find advance planning of a state project. Page 16 is a study, the study of the transfer of the Department of Human services off the [xx] campus. This requires the Department of Administration and Consultation with the Department of Health and Human Services and any other relevant state agency to develop a plan regarding the transfer of the Department of Health and Human Service off the recently sold [xx] campus. In addition it requires the consultation to be made with the State Treasure and State Controller about the means of finance and requires approval of the general assembly for any lease that the department is to enter regarding the movement off of the [xx] campus. Page 17 modified by 22013 law, on public private partnerships, equipped to provide to provide additional qualifications that private funds do not equal any funds by a state or public entity under a lease payment or any financing where the source of repayment are public funds. It also provides some additional clarification on the next page, page 18 lines two through five. There were two bills that passed around the same time in 2013 one public private partnership for local governments and state agencies and then one public the product patnership bill for the department of transportation, what this does is it says for the public patnership contained within the DOT sections after the bill, this law is not applied. For buildings in such and DOT, this far would apply . Page 19 of the Two-Thirds Bond Act of 2015 which details the project that were listed on the money report in the event that a general obligation bond package that will be voted on by the people, does not pass within the 201517 by anum in the authorization of two thirds on. So registrators bonds which will form a general obligation that are authorised the projects that are to be funded. The state has $345 million of tutor response capacity and it uses $262 mi8llion I believe of that capacity. Page 26 is a debt affordability study to be done by the University of North Carolina. Each constituent institution is required to submit a debt affordability study sort of the high estate then affordability study for the transportation funds and the general funds to be submitted to office of state project management, to the purpose of the state treasure and the general assembly to look at that encumpases and their appearance institution and a consistence forum of the board of governors page 28 this authorizes state agencies and universities to use funds available for under $300, 000 for small repair and renovation projects on a trust for the biennium with the reporting requirements to the general of assembly currently the office state budget management the budget policy manual authorizes however there is no state authorizes project over a few $200, 000, page 29 provide the base planning for the school of science and Mathematics said he show the money report, it follows the money this is simply a primary recording requirement and then shows the $1.6 million in state funds to be converted with the $800, 000 and non state funds and the consultation with a variety of other agencies. The School of Science and Math will be looking at school of the deaf brought in hospital, or any other state property in that are page 30 creates a new joint legislature of oversight committee on capital improvement or reinstates committee and I can include the special provisions we are sufficient that we need
to collect one more member in order to proceed with voting so if you'll continue to bear with us What if he wants you to give him one minute. They are about to vote on an amendment over there. Gentlemen, our amendment's more important I will let him know that. we always got time for you, representative Bowles. You can wait on others to work out representative Brown is a very the important person working we appreciate you. Thank you. We now go ahead and go to the amendment we got one amendment that we have to present to Mr. Stanley if you'll present that. Sure this is a tactical amendments most of the features bonds will replace the borders say, what borders are. There is a consistency language that says that The projects are to be funded by Two-Thirds Bond unless they're not funded with other general [xx] and by introducing that the contingencies like with those another [xx] in the two thirds [xx] let's just make that an [xx] and so members we have before us the amendment by representative Ark that get on me. Any question Is there an amendment? Rep. Hardister. Is there a motion to accept the amendment? Mr. Chair, I move that document it. Alright his amendment. All those in favor say aye. Aye. All opposed? The ayes appear to have it. The ayes do have it, and the amendment is adopted is there a motion for the motion as amended? Mr. Chair I'd like to make a motion. I move that the House Appropriations Committee on Capital adopt the Appropriations Subcommittee report as amended further amendment staff be authorized to make technical corrections and informing changes and that the appropriate tools be adjusted accordingly committee members you heard the amendment and the discussion on the motion. Now in hearing, all those in favor please signify by saying aye. Aye. all opposed. The motion carries. The motion to adjourn. We're adjourned.