N.C. Administrative Code (Rules)

Proposed Temporary Rules for Adoption

Notice is given that the Department of State Treasurer (DST) is proposing to adopt the following temporary rules pursuant to N.C. Gen. Stat. § 150B-21.1.  These proposed rules seek to establish cash management criteria related to DST’s authority under N.C. Gen. Stat. § 147-86.15 respecting the cash management of the Highway Fund and Highway Trust Fund:

PROPOSED     20 NCAC 01I .0101    DEFINITIONS

The following definitions apply to this Section:

     (1)    “Highway Fund” means the special revenue fund to which revenue designated for transportation-related operations, maintenance, and improvements is deposited.
     (2)    “Highway Trust Fund” means the fund created pursuant to G.S. 136-176.
     (3)    “Short-Term Loan” means an allocation of cash either from the Highway Fund to the Highway Trust Fund or from the Highway Trust Fund to the Highway Fund, by the State Treasurer, made pursuant to G.S. 147-86.15, which complies with the short-term loan process requirements of this Rule, consisting of a term of 12 months or less from the date of the allocation, at which time the allocation of cash must be fully repaid to the fund from where the allocation originated. 
     (4)    “Transfer” means any other movement of cash between the Highway Fund and Highway Trust Fund by the State Treasurer that the State Treasurer determines to be necessary to fulfill the obligations of G.S. Chapter 147, Article 6A, that is not a “Short-Term Loan.”

PROPOSED    20 NCAC 01I .0102    SHORT-TERM LOANS AND REQUESTS FOR SHORT-TERM LOANS

(a) The State Treasurer may initiate Short-Term Loans to effectuate the purposes of G.S. 147-86.15.
(b) The State Treasurer may receive a request from another state agency to make a Short-Term Loan. This request shall be made as follows: 

     (1)   The agency shall send a written request to the address in 20 NCAC 01A .0101 to the attention of the State Treasurer, with copies to the Director of the State and Local Government Finance Division, and the Chief Financial Officer of the Department of State Treasurer.
     (2)   The written request shall contain the following information: 
             (A)    The requested amount of the Short-Term Loan; 
             (B)    The specific purpose(s) of the Short-Term Loan;
             (C)    The anticipated disbursements and anticipated receipts to document the need for the Short-Term Loan, including the associated budget codes;
             (D)    The anticipated recipients of all the Short-Term Loan proceeds and the amount to be received by any contractors, vendors, suppliers, local, State or federal agencies, or other third parties that will receive Short-Term Loan proceeds in order to fulfill the purpose of the Short-Term Loan;    
             (E)     The anticipated repayment schedule, including date(s) of repayment, amounts to be repaid at each repayment date, method(s) of repayment (i.e. Cash Management Control System transfer);
             (F)     The current cash balances of the Highway Fund and the Highway Trust Fund;
             (G)    The projected cash balances remaining in the Highway Fund and Highway Trust Fund after the Short-Term Loan is made; and
             (H)    The projected balances of total outstanding Short-Term Loans made pursuant to G.S. 147-86.15 after the new Short-Term loan is made. 

PROPOSED    20 NCAC 01I .0103    REVIEW AND APPROVAL

(a)  Within 10 business days of receipt of all of the information required in Rule 20 NCAC 01I .0102, the State Treasurer, or designee, shall review and render a decision to approve or deny the requested Short-Term Loan. The State Treasurer, or designee, may approve the amount requested for a Short-Term Loan in whole or in part.
(b)  In reviewing a request for a Short-Term Loan, the State Treasurer, or designee:
     (1)    shall consider the amount of any bonds currently outstanding where the source of repayment of any portion of outstanding bonds is from the Highway Fund or Highway Trust Fund;    
     (2)    shall consider whether approval of the Short-Term Loan accomplishes the purposes of G.S. 147-86.15; and 
     (3)    may request additional information relevant to the uses or the repayment of the Short-Term Loan from the agency requesting the Short-Term Loan.
(c)  If the Short-Term Loan is denied, in whole or in part, the State Treasurer, or designee, shall inform the agency in writing. 
(d)  If the Short-Term Loan is approved, in whole or in part, the State Treasurer, or designee, shall inform the agency of the approval in writing and confirm that the Short-Term Loan may be made.    

PROPOSED    20 NCAC 01I .0104    TRACKING SHORT-TERM LOAN PROCEEDS

(a) Agencies requesting Short-Term Loans made under this Section shall be responsible for tracking all Short-Term Loan amounts and providing the State Treasurer with information on the use of Short-Term Loan proceeds.  
(b) The agency requesting the Short-Term Loan shall provide to the State Treasurer on a monthly basis, for the duration of the Short-Term Loan, the following information:
     (1)    The name, physical address and phone number of recipients of Short-Term Loan proceeds in the preceding 30-day period; 
     (2)     The amount of Short-Term Loan proceeds received by recipients in the preceding 30-day period; 
     (3)     The reason that Short-Term Loan proceeds were paid to the recipients identified in subparagraph (b)(1) of this Rule; 
     (4)     An explanation of the account codes or budget codes used by the agency who requested the Short-Term Loan in order to track the payment of Short-Term Loan proceeds.

PROPOSED    20 NCAC 01I .0105    RECORDS INSPECTION AND RETENTION

(a)  Any agency requesting the State Treasurer make a Short-Term Loan under this section, shall allow the State Treasurer to inspect that agency’s ledgers, books or other records (both paper and electronic) for purposes of verifying the appropriate use of Short-Term Loan proceeds during the duration of the Short-Term Loan and for a period of seven years thereafter. 
(b)  The State Treasurer shall submit a written request to the agency head requesting to inspect the agency’s ledgers, books or other records (both paper and electronic) under this Rule. 
(c)  The agency requesting the Short-Term Loan shall be responsible for maintaining all records associated with the Short-Term Loan request, tracking of Short-Term Loan proceeds and repayment records pursuant to Chapter 132 of the North Carolina General Statutes. 

Written comments to the above proposed temporary rules will be taken until April 9, 2020 and can be submitted to the following:

Department of State Treasurer 
ATTN:  Rulemaking Coordinator
3200 Atlantic Avenue
Raleigh, NC 27604
dst.ncac@nctreasurer.com
919-814-3851

The Department of State Treasurer is providing notice of the rescheduling of the public hearing on proposed temporary rules: 20 NCAC 01I .0101-.0105.  The new date and time of the public hearing is:

Tuesday March 24, 2020
2 pm – 3 pm 
Dogwood Conference Room
3200 Atlantic Avenue, Raleigh, NC 27604

IN ADDITION, members of the public may also participate in the public hearing and provide comments during the hearing by calling conference line number 1-877-402-9757 and entering access code 4354283#.

Information about the temporary rules is also available on the Office of Administrative Hearings, Rules Division website.

 

Department of State Treasurer Decennial Review of Existing Rules

N.C. General Statute §150B-21.3A adopted in 2013, requires state agencies to review existing rules every 10 years. The Department of State Treasurer rules are encompassed in the subchapters of Title 20 of the North Carolina Administrative Code.  Agency rules that do not complete the required decennial review expire, unless an exemption applies.  The Department's rules are reviewed on a schedule established by the Rules Review Commission. The rules currently due for review are provided below.

N.C. General Statutes §150B-21.3A(c) requires the Department to review each rule and make an initial determination from one of these three classifications:

  • Necessary with substantive public interest – the agency has received public comment on the rule within the past two years or the rule affects the property interest of the regulated public, and the agency knows or suspects that any person may object to the rule. 
  • Necessary without substantive public interest – the agency determines that the rule is needed, and the rule has not had public comment in the last two years. This category includes rules that identify information that is readily available to the public, such as an address or telephone number.
  • Unnecessary – the agency determines that the rule is obsolete, redundant or otherwise not needed.

The initial classifications of existing rules by an agency are subject to public review and comment for a period of sixty days.  N.C. General Statutes § 150B-21.3A(5) defines a “public comment” as “written comments objecting to the rule, in whole or in part, received by an agency from any member of the public, including an association or other organization representing the regulated community or other members of the public.”  Additionally, pursuant to G.S. 150B-21.3A(c)(2), in order for the Rules Review Commission to determine whether the public comment has merit, the public comment must address the specific substance of the rule and address any of the standards of Commission review, as set forth in G.S. 150B-21.9(a).   

Comments regarding the Department's initial determinations will be accepted by e-mail to dst.ncac@nctreasurer.com or by mail to:

DST NCAC Decennial Review
ATTN:  Rulemaking Coordinator
3200 Atlantic Avenue
Raleigh, NC 27604

Department of State Treasurer Proposed Rules

This website includes the following information: 

  • The text of the proposed rule 

  • An explanation and reason for the proposed rule

  • Any required federal certification 

  • Instructions on how and where to submit oral or written comments on the rule 

  • Any fiscal note that has been prepared for the proposed rule