A BILL TO BE ENTITLED
AN ACT regarding the operation of public enterprises by the city of kinston.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 160A‑312 reads as rewritten:
"§ 160A‑312.  Authority to operate public enterprises.
(a)	A city shall have authority to acquire, construct, establish, enlarge, improve, maintain, own, operate, and contract for the operation of any or all of the public enterprises as defined in this Article to furnish services to the city and its citizens and other areas and their citizens located outside the corporate limits of the city. Subject to Part 2 of this Article, a city may acquire, construct, establish, enlarge, improve, maintain, own, and operate any public enterprise outside its corporate limits, within reasonable limitations.
(b)	A city shall have full authority to protect and regulate any public enterprise system belonging to or operated by it by adequate and reasonable rules. The rules shall be adopted by ordinance, and shall comply with all of the following:
(1)	The rules shall apply equally to the public enterprise system both within and outside the corporate limits of the city.
(2)	The rules may not apply differing treatment within and outside the corporate limits of the city.
(3)	The rules shall make access to public enterprise services available to the city and its citizens and other areas and their citizens located outside the corporate limits of the city equally.
(4)	The rules may prioritize the continuation of the provision of services based on availability of excess capacity to provide the service.
(5)	The rules may be enforced with the remedies available under any provision of law.
(c)	A city may operate that part of a gas system involving the purchase and/or lease of natural gas fields, natural gas reserves and natural gas supplies and the surveying, drilling or any other activities related to the exploration for natural gas, in a partnership or joint venture arrangement with natural gas utilities and private enterprise.
(d)	A city shall account for a public enterprise in a separate fund and may not transfer any money from that fund to another except for a capital project fund established for the construction or replacement of assets for that public enterprise. Obligations of the public enterprise may be paid out of the separate fund. Obligations shall not include any other fund or line item in the city's budget."
SECTION 2. This act applies only to the City of Kinston. Section 1 of this act shall not apply to the operation of electric power generation, transmission, and distribution systems; public transportation systems; or off‑street parking facilities and systems as public enterprises.
SECTION 3.  This act becomes effective June 30, 2013.  Section 1 of this act applies to the fiscal year 2013‑2014 and thereafter, but the city may implement any rate changes required by that section over a two-year period from the effective date.  Any assets, liabilities, or equity of a public enterprise operated or held by the city during the fiscal year 2011‑2012 shall be transferred to a separate fund in accordance with G.S. 160A‑312, as amended by Section 1 of this act, when this act becomes law.