North Carolina Administrative Code Title 20 - STATE TREASURER

28 Jun 2025 --
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📘 Overview: Title 20 – STATE TREASURER

Title 20 of the North Carolina Administrative Code (NCAC) sets out the rules for the State Treasurer and related financial bodies. The Treasurer is responsible for managing the state’s funds, overseeing public deposits, handling state debt, supervising retirement systems, and ensuring proper financial practices in local government.

The code is divided into chapters covering areas like:

Departmental Rules – Organization and procedures of the Treasurer’s office.

Retirement Systems – Rules for state employee retirement programs.

Local Government Commission – Oversight of local government finances, including bond issuance.

Collateralization of Deposits – Ensuring public funds in banks are secured.

Escheats and Unclaimed Property – Handling property or funds abandoned by owners.

Capital Facilities and Trust Funds – Managing state bonds, loans, and special funds.

Title 20 is administrative law, meaning it governs how public agencies and officials act, and disputes are resolved through administrative processes, not criminal courts.

📚 Cases / Situations under Title 20

Case 1 – Duties of the State Treasurer

The Treasurer oversees the receipt, custody, and disbursement of all state funds.

Responsible for investing idle state funds to earn returns for the state.

Acts as fiscal advisor to state agencies on budgeting, borrowing, and financial planning.

Sits on boards like the State Retirement Board and the Local Government Commission.

Example: A state agency wants to borrow money for a new project. The Treasurer must review the request, advise on financial risks, and ensure funds are available.

Case 2 – Collateralization of Public Deposits

Public funds deposited in banks must be secured with collateral exceeding the federal insurance limit.

Banks can pledge securities specifically for a single depositor or pool collateral for multiple depositors.

The Treasurer monitors compliance and may require additional securities if collateral is insufficient.

Example: A county deposits $10 million in a local bank. An audit shows only $8 million is collateralized. The Treasurer requires the bank to pledge an additional $2 million in securities to protect public funds.

Case 3 – Local Government Bond Approval

Local governments must submit applications to the Local Government Commission before issuing bonds.

The Commission examines financial records, debt capacity, and legal compliance.

Only after approval can bonds be sold.

Example: A city wants to issue $50 million in bonds for a new school. The Commission reviews their finances and delays approval until the city demonstrates it can cover debt payments.

Case 4 – Contested Administrative Cases

If a public entity disagrees with the Treasurer’s decision (e.g., bond approval or collateral requirements), they can request a contested case hearing.

Hearings are similar to court proceedings but handled by an administrative law judge.

The judge issues a decision that can be appealed to the relevant state authority.

Example: A public authority applies for financing, and the Treasurer denies it. The authority challenges the decision through a contested case hearing to try to get approval.

Case 5 – Retirement System Administration

The Treasurer administers state employee retirement systems.

Rules specify contribution rates, eligibility, and benefits.

The Treasurer ensures proper fund management to meet obligations to retirees.

Example: An employee retires after 20 years. The Treasurer’s office calculates pension benefits according to Title 20 rules and issues monthly payments.

Case 6 – Escheats and Abandoned Property

Title 20 sets rules for unclaimed or abandoned property, such as bank accounts or uncashed checks.

The Treasurer takes custody of these assets and may attempt to locate owners.

Funds are held in trust and may be claimed later by rightful owners.

Example: A person forgets a bank account for 10 years. The bank reports it as unclaimed, and the Treasurer takes custody of the funds until the owner claims them.

Case 7 – Compliance and Rule Review

All rules under Title 20 are periodically reviewed to ensure they are still necessary and consistent with state law.

Agencies may propose changes, and stakeholders can comment or object.

Rules may be updated or repealed to reflect new financial practices or legislation.

Example: A rule on bond reporting is outdated due to a new law. The Treasurer updates the rule to match current statutory requirements after public review.