2005 North Carolina Code - General Statutes Article 1 - General Provisions.

Chapter 124.

Internal Improvements.

Article 1.

General Provisions.

§ 124‑1.  Control of internal improvements.

The Governor and Council of State shall have charge of all the State's interest in all railroads, canals and other works of internal improvements. The Board of Directors of a State‑owned railroad company shall be responsible for managing its affairs and for reporting as set forth in G.S. 124‑3. (1925, c. 157, s. 1; 2000‑146, s. 2.)

 

§ 124‑2.  State deemed shareholder in corporation accepting appropriation.

When an appropriation is made by the State to any work of internal improvement conducted by a corporation, the State shall be considered, if so directed in the act making the appropriation, a stockholder in such corporation, and shall have as many shares as may correspond with the amount of money appropriated; and the acceptance of such money shall be deemed to be a consent of the corporation to the terms herein expressed. (1925, c. 157, s. 2; 1985, c. 792, s. 13.21.)

 

§ 124‑3.  Report of railroad, canal, etc.; contents.

(a)       The president or other chief officer of every railroad, canal, or other public work of internal improvement in which the State owns an interest, shall, report annually to the Joint Legislative Commission on Governmental Operations. This report shall include:

(1)       Number of shares owned by the State.

(2)       Number of shares owned otherwise.

(3)       Par value of the shares.

(4)       Repealed by Session Laws 2000, c. 146, s. 3.

(5)       Amount of bonded debt, and for what purpose contracted.

(6)       Amount of other debt, and how incurred.

(7)       If interest on bonded debt has been punctually paid as agreed; if not, how much in arrears.

(8)       Amount of gross receipts for past year, and from what sources derived.

(9)       An itemized account of expenditures for past year.

(10)     A summary of all leases, sales, or acquisitions of real property to which the company has been a party since the last report.

(11)     Suits at law pending against his company concerning its bonded debt, or in which title to all or any part of such road or canal is concerned.

(12)     Any sales of stock owned by the State, by whose order made, and disposition of the proceeds.

(13)     Annual financial statements, including notes, audited by an independent certified public accounting firm.

(b)       Upon the request of the Governor or any committee of the General Assembly, a State‑owned railroad company shall provide all additional information and data within its possession or ascertainable from its records. The State‑owned railroad company shall not be deemed to have waived any attorney‑client privilege when complying with this subsection. At the time a State‑owned railroad company provides information under this section, it shall indicate whether the information is confidential. Confidential information shall be subject to subsection (c) of this section.

(c)       Confidential information includes (i) information related to a proposed specific business transaction where inspection, examination, or copying of the records would frustrate the purpose for which the records were created, or (ii) information that is subject to confidentiality obligations of a railroad company. Confidential information shall not be subject to a request under G.S. 132‑6(a). (1925, c. 157, s. 3; 1993, c. 539, s. 928; 1994, Ex. Sess., c. 24, s. 14(c); 2000‑67, s. 7.2(b); 2000‑146, s. 3.)

 

§ 124‑4:  Repealed by Session Laws 2000‑146, s.  4.

 

§ 124‑5.  Approval of encumbrance on State's interest in corporations.

(a)       No corporation or company in which the State owns the majority of any class of voting stock shall sell, lease, mortgage, or otherwise encumber its franchise, right‑of‑way, or other property, except by and with the approval and consent of the Governor and Council of State.

(b)       No State‑owned railroad company shall sell, lease, mortgage, or otherwise encumber its franchise, right‑of‑way, or other property, except by and with the approval and consent of the Board of Directors of that corporation. The president or other chief officer of the State‑owned railroad company shall report any acquisitions and dispositions in accordance with G.S. 124‑3(10). (1925, c. 157, s. 5; 1981 (Reg. Sess., 1982), c. 1372, s. 5; 1983, c. 905, ss. 10, 11; 1985, c. 792, ss. 13.25, 13.26; 2000‑146, s. 5.)

 

§ 124‑5.1.  State use of North Carolina Railroad dividends.

(a)       Notwithstanding the provisions of G.S. 136‑16.6, in order to increase the capital of the North Carolina Railroad Company, any dividends of the North Carolina Railroad Company received by the State shall be applied to reduce the obligations described in subsection (c) of Section 32.30 of S.L. 1997‑443, as amended by subsection (d) of Section 27.11 of S.L. 1999‑237. Any dividends of the North Carolina Railroad Company received by the State shall be used by the Department of Transportation for the improvement of the property of the North Carolina Railroad Company as recommended and approved by the Board of Directors of the North Carolina Railroad Company. The improvements may include the following project types:

(1)       Railroad and industrial track rehabilitation.

(2)       Railroad signal and grade crossing protection.

(3)       Bridge improvements.

(4)       Corridor protection.

(5)       Industrial site acquisition.

(b)       Effective January 1, 2000, interest shall not be accrued or otherwise charged on the remaining balance of the obligations described in subsection (c) of Section 32.30 of S.L. 1997‑443, as amended by subsection (d) of Section 27.11 of S.L. 1999‑237. Interest accrued on those obligations relating to periods prior to January 1, 2000, shall be deemed paid and contributed by the State to the capital of the North Carolina Railroad Company. (2000‑67, s. 7.2(a); 2005‑276, s. 28.7.)

 

§ 124‑6.  (For effective date, see editor's note) Appointment of proxies, director of railroad companies, etc.

(a)       The Governor shall appoint on behalf of the State all such officers or agents as, by any act, incorporating a company for the purpose of internal improvement, are allowed to represent the stock or other interests which the State may have in such company; and such person or persons shall cast the vote to which the State may be entitled in all the meetings of the stockholders of such company under the direction of said Governor; and the said Governor may, if in his opinion the public interest so requires, remove or suspend such persons, officers, agents, proxies, or directors in his discretion.

(b)       Notwithstanding subsection (a) of this section, for any railroad company organized as a corporation in which the State is the owner of all the voting stock and which has trackage in more than two counties, five of the members of the Board of Directors shall be appointed by the Governor, two of the members of the Board of Directors shall be appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives in accordance with G.S. 120‑121, and two of the members of the Board of Directors shall be appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate in accordance with G.S. 120‑121. Of the Governor's five appointments, three shall be either an investment banker, a person with railroad management experience, a person on an economic development commission whose region contains track of the company, or an attorney with corporate experience. The remaining two shall be at‑large members. The Speaker of the House of Representatives shall recommend two at‑large members. The President Pro Tempore of the Senate shall recommend two at‑large members. The Board of Directors shall consist of nine members. Of the initial members appointed by the Governor, three shall be appointed for terms of four years and two shall be appointed for terms of two years. Of the initial members recommended to the General Assembly by the Speaker of the House of Representatives, one shall be appointed for a term of four years and one shall be appointed for a term of two years. Of the initial members recommended to the General Assembly by the President Pro Tempore of the Senate, one shall be appointed for a term of four years and one shall be appointed for a term of two years. Thereafter all Board members shall serve four‑year terms. The Board shall elect the chairman from among its membership. (1925, c. 157, s. 6; 1997‑443, s. 32.30(k).)

 

§ 124‑6.  (For effective date, see editor's note) Appointment of proxies, director of railroad companies, etc.

(a)       The Governor shall appoint on behalf of the State all such officers or agents as, by any act, incorporating a company for the purpose of internal improvement, are allowed to represent the stock or other interests which the State may have in such company; and such person or persons shall cast the vote to which the State may be entitled in all the meetings of the stockholders of such company under the direction of said Governor; and the said Governor may, if in his opinion the public interest so requires, remove or suspend such persons, officers, agents, proxies, or directors in his discretion.

(b)       Notwithstanding subsection (a) of this section, for any railroad company organized as a corporation in which the State is the owner of all the voting stock and which has trackage in more than two counties, seven of the members of the Board of Directors shall be appointed by the Governor, three of the members of the Board of Directors shall be appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives in accordance with G.S. 120‑121, and three of the members of the Board of Directors shall be appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate in accordance with G.S. 120‑121. The Board of Directors shall consist of 13 members. Of the initial members appointed by the Governor, three shall be appointed for terms of four years and four shall be appointed for terms of two years. Of the initial members recommended to the General Assembly by the Speaker of the House of Representatives, two shall be appointed for terms of four years and one shall be appointed for a term of two years. Of the initial members recommended to the General Assembly by the President Pro Tempore of the Senate, two shall be appointed for terms of four years and one shall be appointed for a term of two years. Thereafter all Board members shall serve four‑year terms. The Board shall elect the chairman from among its membership. (1925, c. 157, s. 6; 1997‑443, s. 32.30(k); 1999‑431, s. 3.3(a).)

 

§ 124‑7.  Power of investigation of corporations.

The Governor and Council of State shall have the power to investigate the affairs of any corporation or association described in G.S. 124‑3 and may require the Attorney General or the Utilities Commission to assist in making such investigation under the rules and regulations prescribed in Chapter 62. (1925, c. 157, s. 7; 1933, c. 134, s. 8; 1941, c. 97, s. 1.)

 

§ 124‑8.  Reserved for future codification purposes.

 

§ 124‑9.  Reserved for future codification purposes.

 

§ 124‑10.  Reserved for future codification purposes.