GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

H	2 

HOUSE BILL 2213*
Committee Substitute Favorable 7/10/90

Short Title:  Stormwater Changes/Dispute Resoln.      	(Public)
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Sponsors:
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Referred to:  
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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, TO GIVE WATER AND SEWER AUTHORITIES THE POWER TO OPERATE AND FINANCE STORM DRAINAGE SYSTEMS, TO DIRECT THE INFRASTRUCTURE STUDY COMMISSION TO STUDY WHETHER EACH COUNTY NEEDS MULTIPLE STORMWATER DRAINAGE SYSTEMS, AND TO FUND DISPUTE RESOLUTION PROGRAMS.
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 improved real property. The incidence of stormwater runoff from property is considered use by the owner of the property of a stormwater and drainage system.  Before a city establishes or revises a schedule of rates, fees, charges, or penalties under this section, the city council must hold a public hearing on the issue.
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 runoff 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.  Rates, fees, and charges payable for service provided to residential property may not exceed one dollar ($1.00) a month.
(b)	The amount imposed for stormwater and drainage service may be billed to the property owner on the property tax bill, to the occupant of the property on the bill for water, sewer, or other enterprisory services, or to the property owner or occupant 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.  An amount imposed under this section is not a lien on the property served.
(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 improved real property. The incidence of stormwater runoff from property is considered use by the owner of the property of a stormwater and drainage system.  Before a county establishes or revises a schedule of rates, fees, charges, or penalties under this section, the board of county commissioners must hold a public hearing on the issue.
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 runoff 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.  Rates, fees, and charges payable for service provided to residential property may not exceed one dollar ($1.00) a month.
(b)	The amount imposed for stormwater and drainage service may be billed to the property owner on the property tax bill, to the occupant of the property on the bill for water, sewer, or other enterprisory services, or to the property owner or occupant 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.  An amount imposed under this section is not a lien on the property served.
(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.  G.S. 160A-492 reads as rewritten:
"§ 160A-492. Human relations, community action and manpower development programs.
The governing body of any city, town, or county is hereby authorized to undertake, and to expend tax or nontax funds for, human relations, community action and manpower development programs.  In undertaking and engaging in such programs, the governing body may enter into contracts with and accept loans and grants from the State or federal governments.  The governing body may appoint such human relations, community action and manpower development committees or boards and citizens' committees, as it may deem necessary in carrying out such programs and activities, and may authorize the employment of personnel by such committees or boards, and may establish their duties, responsibilities, and powers.  The cities and counties may jointly undertake any program or activity which they are authorized to undertake by this section.  The expenses of undertaking and engaging in the human relations, community action and manpower development programs and activities authorized by this section are necessary expenses for which funds derived from taxation may be expended without the necessity of prior approval of the voters.
For the purposes of this section, a ‘human relations program' is one devoted to (i)	the study of problems in the area of human relations, (ii) the promotion of equality of opportunity for all citizens, (iii) the promotion of understanding, respect and goodwill among all citizens, (iv) the provision of channels of communication among the races, (v) dispute resolution, (vi) encouraging the employment of qualified people without regard to race, or (vii) encouraging youth to become better trained and qualified for employment."
Sec. 4.  G.S. 162A-2(12) reads as rewritten:
"(12)	The term ‘water system' shall mean and include all plants, systems, facilities or properties used or useful or having the present capacity for future use in connection with the supply or distribution of water or the control and drainage of stormwater runoff and any integral part thereof, including but not limited to water supply systems, water distribution systems, structural and natural stormwater and drainage systems of all types, sources of water supply including lakes, reservoirs and wells, intakes, mains, laterals, aqueducts, pumping stations, standpipes, filtration plants, purification plants, hydrants, meters, valves, and all necessary appurtenances and equipment and all properties, rights, easements and franchises relating thereto and deemed necessary or convenient by the authority for the operation thereof."
Sec. 5.  G.S. 162A-9 reads as rewritten:
"§ 162A-9. Rates and charges; contracts for water or services; deposits; delinquent charges.
(a)	Each authority shall fix, and may revise from time to time, reasonable rates, fees and other charges for the use of and for the services furnished or to be furnished by any water system or sewer system or parts thereof owned or operated by such authority. Such rates, fees and charges shall not be subject to supervision or regulation by any bureau, board, commission or other agency of the State or of any political subdivision. Such rates, fees and charges shall be fixed and revised so that the revenues of the authority, together with any other available funds, will be sufficient at all times
(1)	To pay the cost of maintaining, repairing and operating the systems or parts thereof owned or operated by the authority, including reserves for such purposes, and including provision for the payment of principal of and interest on indebtedness of a political subdivision or of political subdivisions which payment shall have been assumed by the authority, and
(2)	To pay the principal of and the interest on all bonds issued  by the authority under the provisions of this Article as the same shall become due and payable and to provide reserves therefor.
Notwithstanding any of the foregoing provisions of this section, the authority may enter into contracts relating to the collection, treatment or disposal of sewage or the purchase or sale of water which shall not be subject to revision except in accordance with their terms.
(b)	In order to insure the payment of such rates, fees and charges as the same shall become due and payable, the authority may, in addition to any other remedies which it may have
(1)	Require reasonable advance deposits to be made with it to be subject to application to the payment of delinquent rates, fees and charges, and
(2)	At the expiration of 30 days after any such rates, fees and charges become delinquent, discontinue supplying water or the services and facilities of any water system or sewer system of the authority.
(c)	The incidence of stormwater runoff from improved real property is considered use by the owner of the property of a stormwater and drainage system.  An authority may establish schedules of rates, fees, charges, and penalties for a stormwater and drainage system that 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 runoff 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.  Before an authority establishes or revises a schedule of rates, fees, charges, or penalties for stormwater and drainage service, it must hold a public hearing on the issue.
Rates, fees, and charges payable for service provided to residential property may not exceed one dollar ($1.00) a month.  An amount imposed under this subsection is not a lien on the property served."
Sec. 6.  The State Infrastructure Needs and Local Government Financing Study Commission shall undertake a review and analysis of the need for the establishment of multiple stormwater and drainage public enterprises in each county.  Its findings and recommendations on this issue shall be included in its final report to the General Assembly on or before January 15, 1991.
Sec. 7. Sections 1 through 5 of this act shall become effective June 30, 1991.  The remaining sections of this act are effective upon ratification.