GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

H	1 

HOUSE BILL 2213*

Short Title:  Clarify Power To Collect Stormwater Charge.      	(Public)
─────────────────────────────────────── 
Sponsors: Representatives Hurley, Bowie, Grimmer, Hasty, Ligon; Warner, Beard, Edwards, and Gibson.
─────────────────────────────────────── 
Referred to:  Finance.
─────────────────────────────────────── 

May 31, 1990

A BILL TO BE ENTITLED
AN ACT CLARIFYING THE POWER OF CITIES AND COUNTIES TO COLLECT CHARGES FOR THE USE OF STORMWATER UTILITIES.
The General Assembly of North Carolina enacts:
Section 1. Article 16 of Chapter 160A of the General Statutes is amended by adding a new section to read:
"§ 160A-314.1.  Authority to fix and enforce rates for stormwater and drainage systems.
(a)	A city may establish and revise from time to time schedules of rates, fees, charges, and penalties for the acquisition, construction, operation, and maintenance of stormwater and drainage systems to serve real property. The incidence of stormwater run-off from property is considered use by the owner of the property of a stormwater and drainage system.  Schedules of rates, fees, charges, and penalties may vary according to whether the property served is residential, commercial, or industrial property, the property's use, the size of the property, the area of impervious surfaces on the property, the quantity and quality of run-off from the property, the characteristics of the watershed into which stormwater from the property drains, and other factors that affect the stormwater and drainage system.  Rates, fees, and charges imposed under this section may not exceed the city's cost of providing a stormwater and drainage system.
(b)	Rates, fees, charges, and penalties for stormwater and drainage systems are joint and several legal obligations of the owner and any tenant of the property served.  The amount imposed may be billed on the property tax bill, on the bill for water, sewer, or other enterprisory services, or separately.  If the amount imposed is included on a bill with other enterprisory services, the council may, by ordinance, specify the order in which partial payments are to be applied among the various services, to the extent allowed by bond covenants.
Amounts imposed under this section may be collected by the methods allowed under Article 10 of this Chapter for collection of special assessments, other than by installments, and shall bear interest at the same rate as a special assessment.  The amounts imposed become a lien against the property served when the city files a notice of lien in the office of the clerk of superior court.  A notice of lien may not be filed unless the city, by ordinance, has established notice and hearing procedures and the owner of the property has been given notice and an opportunity to be heard in accordance with the procedures.  A lien under this section is next in priority after a special assessment lien.
(c)	G.S. 160A-314 does not apply to stormwater and drainage systems.  This section does not repeal any part of a local act that is inconsistent with the section."
Sec. 2.  Article 15 of Chapter 153A of the General Statutes is amended by adding a new section to read:
"§ 153A-277.1.  Authority to fix and enforce rates for stormwater and drainage systems.
(a)	A county may establish and revise from time to time schedules of rates, fees, charges, and penalties for the acquisition, construction, operation, and maintenance of stormwater and drainage systems to serve real property. The incidence of stormwater run-off from property is considered use by the owner of the property of a stormwater and drainage system.  Schedules of rates, fees, charges, and penalties may vary according to whether the property served is residential, commercial, or industrial property, the property's use, the size of the property, the area of impervious surfaces on the property, the quantity and quality of run-off from the property, the characteristics of the watershed into which stormwater from the property drains, and other factors that affect the stormwater and drainage system.  Rates, fees, and charges imposed under this section may not exceed the county's cost of providing a stormwater and drainage system.
(b)	Rates, fees, charges, and penalties for stormwater and drainage systems are joint and several legal obligations of the owner and any tenant of the property served.  The amount imposed may be billed on the property tax bill, on the bill for water, sewer, or other enterprisory services, or separately.  If the amount imposed is included on a bill with other enterprisory services, the board of commissioners may, by ordinance, specify the order in which partial payments are to be applied among the various services, to the extent allowed by bond covenants.
Amounts imposed under this section may be collected by the methods allowed under Article 9 of this Chapter for collection of special assessments, other than by installments, and shall bear interest at the same rate as a special assessment.  The amounts imposed become a lien against the property served when the county files a notice of lien in the office of the clerk of superior court.  A notice of lien may not be filed unless the county, by ordinance, has established notice and hearing procedures and the owner of the property has been given notice and an opportunity to be heard in accordance with the procedures.  A lien under this section is next in priority after a special assessment lien.
(c)	G.S. 153A-277 does not apply to stormwater and drainage systems.  This section does not repeal any part of a local act that is inconsistent with the section."
Sec. 3.  This act is effective upon ratification.