GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

H	2 

HOUSE BILL 501*
Second Edition Engrossed 6/17/91

Short Title:  Stormwater Utilities.	(Public)
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Sponsors: Representatives Hurley; Bowie, Grimmer, Jeralds, McAllister, and Warner.
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Referred to:  Judiciary I.
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April 1, 1991

A BILL TO BE ENTITLED
AN ACT TO CLARIFY THE PUBLIC ENTERPRISE LAW WITH RESPECT TO STORMWATER UTILITIES ESTABLISHED BY CITIES AND COUNTIES AND TO GIVE WATER AND SEWER AUTHORITIES THE ABILITY TO OPERATE AND FINANCE STORMWATER UTILITIES.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 160A-314 reads as rewritten:
"§ 160A-314. Authority to fix and enforce rates.
(a)	A city may establish and revise from time to time schedules of rents, rates, fees, charges, and penalties for the use of or the services furnished by any public enterprise. Schedules of rents, rates, fees, charges, and penalties may vary according to classes of service, and different schedules may be adopted for services provided outside the corporate limits of the city.
(a1)	Before it establishes or revises a schedule of rates, fees, charges, or penalties for structural and natural stormwater and drainage systems under this section, the city council shall hold a public hearing on the matter.  A notice of the hearing shall be given at least once in a newspaper having general circulation in the area, not less than seven days before the public hearing.  The hearing may be held concurrently with the public hearing on the proposed budget ordinance.
Schedules of rates, fees, charges, and penalties for providing structural and natural stormwater and drainage system service 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 the runoff from the property, the characteristics of the watershed into which stormwater from the property drains, and other factors that affect the stormwater drainage system.  Rates, fees, and charges imposed under this section may not exceed the city's cost of providing a stormwater and drainage system.  A city may not impose a fee for structural and natural stormwater and drainage system service if the county in which the city is located or a water and sewer authority of which the city is a member provides separate structural and natural stormwater and drainage system service in the city.
  	(b) A city shall have power to collect delinquent accounts by any remedy provided by law for collecting and enforcing private debts, and may specify by ordinance the order in which partial payments are to be applied among the various enterprise services covered by a bill for the services.  A city may also discontinue service to any customer whose account remains delinquent for more than 10 days. When service is discontinued for delinquency, it shall be unlawful for any person other than a duly authorized agent or employee of the city to do any act that results in a resumption of services. If a delinquent customer is not the owner of the premises to which the services are delivered, the payment of the delinquent account may not be required before providing services at the request of a new and different tenant or occupant of the premises, but this restriction shall not apply when the premises are occupied by two or more tenants whose services are measured by the same meter.
(c)	Except as provided in subsection (d), rents, rates, fees, charges, and penalties for enterprisory services shall be legal obligations of the person contracting for them, and shall in no case be a lien upon the property or premises served, provided that no contract shall be necessary in the case of structural and natural stormwater and drainage systems.
(d)	Rents, rates, fees, charges, and penalties for enterprisory services shall be legal obligations of the owner of the premises served when:
(1)	The property or premises is leased or rented to more than one tenant and services rendered to more than one tenant are measured by the same meter.
(2)	Charges made for use of a sewage system are billed separately from charges made for the use of a water distribution system.
(e)	Nothing in this section shall repeal any portion of any city charter inconsistent herewith."
Sec. 2. G.S. 153A-277 reads as rewritten:
"§ 153A-277. Authority to fix and enforce rates.
(a)	A county may establish and revise from time to time schedules of rents, rates, fees, charges, and penalties for the use of or the services furnished by a public enterprise. Schedules of rents, rates, fees, charges, and penalties may vary for the same class of service in different areas of the county and may vary according to classes of service, and different schedules may be adopted for services provided outside of the county.
(a1)	Before it establishes or revises a schedule of rates, fees, charges, or penalties for structural and natural stormwater and drainage systems under this section, the board of commissioners shall hold a public hearing on the matter.  A notice of the hearing shall be given at least once in a newspaper having general circulation in the area, not less than seven days before the public hearing.  The hearing may be held concurrently with the public hearing on the proposed budget ordinance.
Schedules of rates, fees, charges, and penalties for providing structural and natural stormwater and drainage system service 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 the runoff from the property, the characteristics of the watershed into which stormwater from the property drains, and other factors that affect the stormwater drainage system.  Rates, fees, and charges imposed under this section may not exceed the county's cost of providing a stormwater and drainage system.  A county may not impose a fee for structural and natural stormwater and drainage system service if the county is a member of a water and sewer authority that provides separate structural and natural stormwater and drainage system service in the county.
	(b) A county may collect delinquent accounts by any remedy provided by law for collecting and enforcing private debts, and may specify by ordinance the order in which partial payments are to be applied among the various enterprise services covered by a bill for the services.  A county may also discontinue service to a customer whose account remains delinquent for more than 10 days. If a delinquent customer is not the owner of the premises to which the services are delivered, the payment of the delinquent account may not be required before providing services at the request of a new and different tenant or occupant of the premises. If water or sewer services are discontinued for delinquency, it is unlawful for a person other than a duly authorized agent or employee of the county to reconnect the premises to the water or sewer system.
(c)	Rents, rates, fees, charges, and penalties for enterprisory services are in no case a lien upon the property or premises served and, except as provided in subsection (d) of this section, are legal obligations of the person contracting for them, provided that no contract shall be necessary in the case of structural and natural stormwater and drainage systems.
(d)	Rents, rates, fees, charges, and penalties for enterprisory services are legal obligations of the owner of the property or premises served when:
(1)	The property or premises is leased or rented to more than one tenant and services rendered to more than one tenant are measured by the same meter; or
(2)	Charges made for use of a sewerage system are billed separately from charges made for the use of a water distribution system."
Sec. 3.  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. 4.  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.
Before an authority sets or revises rates, fees, or other charges for structural or natural stormwater and drainage system service, the authority shall hold a public hearing on the matter.  At least seven days before the hearing, the authority shall publish notice of the public hearing in a newspaper having general circulation in the area.  An authority may impose rates, fees, or other charges for stormwater and drainage system service on a person even though the person has not entered into a contract to receive the service.
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.
Schedules of rates, fees, charges, and penalties for providing structural and natural stormwater and drainage system service 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 the runoff from the property, the characteristics of the watershed into which stormwater from the property drains, and other factors that affect the stormwater drainage system.  Rates, fees, and charges imposed under this section may not exceed the authority's cost of providing a stormwater and drainage system.
(b)	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.
(c)	In order to insure the payment of such rates, fees and charges as the same shall become due and payable, the authority may do the following in addition to exercising 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.
(2)	At the expiration of 30 days after any rates, fees and charges become delinquent, discontinue supplying water or the services and facilities of any water system or sewer system of the authority.
(3)	Specify the order in which partial payments are to be applied when a bill covers more than one service."
Sec. 5.  This act is effective upon ratification.