AN ACT to remove the cap on satellite annexations for various municipalities, and to allow an advisory referendum in the town of Clayton.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 160A‑58.1(b)(5) reads as rewritten:
"(b)	A noncontiguous area proposed for annexation must meet all of the following standards:
…
(5)	The area within the proposed satellite corporate limits, when added to the area within all other satellite corporate limits, may not exceed ten percent (10%) of the area within the primary corporate limits of the annexing city.
This subdivision does not apply to the Cities of Claremont, Concord, Conover, Elizabeth City, Gastonia, Greenville, Hickory, Kannapolis, Locust, Marion, Mount Airy, Mount Holly, New Bern, Newton, Oxford, Randleman, Rockingham, Sanford, Salisbury, Southport, Statesville, and Washington and the Towns of Angier, Ayden, Benson, Bladenboro, Burgaw, Calabash, Catawba, Clayton, Columbia, Creswell, Dallas, Dobson, Fuquay‑Varina, Garner, Godwin, Holly Ridge, Holly Springs, Kenly, Knightdale, Landis, Leland, Louisburg, Maggie Valley, Maiden, Mayodan, Midland, Mocksville, Morrisville, Pembroke, Pine Level, Ranlo, Rolesville, Rutherfordton, Shallotte, Spencer, Surf City, Swansboro, Taylorsville, Troy, Wallace, Warsaw, Waynesville, Wendell, Windsor, Yadkinville, and Zebulon."
SECTION 2.  The Clayton Town Council may, by resolution, direct the Johnston County Board of Elections to conduct prior to January 1, 2008, an advisory referendum on whether the Town should consider amending the manner by which voters elect Council members. The referendum shall be conducted in accordance with Chapter 163 of the General Statutes. The form of the question to be presented on a ballot for such a referendum shall be:
"Should the Clayton Town Council consider amending the manner by which voters elect Council members by designating that some members are elected from voting districts to be drawn by the Town Council and other members are elected at large?
[  ]  YES 	[  ]  NO"
SECTION 3.  This act is effective when it becomes law.
In the General Assembly read three times and ratified this the 18th day of July, 2006.

	_____________________________________
		 Beverly E. Perdue
	 President of the Senate

	_____________________________________
		 James B. Black
	 Speaker of the House of Representatives