A BILL TO BE ENTITLED
AN ACT to require an additional petition be submitted to the municipal incorporations subcommittee, to set a time limit on the life of the petitions submitted to that subcommittee, and to make technical corrections.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 120‑163 reads as rewritten:
"§ 120‑163.  Petitions.
(a)	The process of seeking the recommendation of the Municipal Incorporations Subcommittee is commenced by filing with the Municipal Incorporations Subcommittee the following:
(1)	A petition signed by fifteen percent (15%) of the registered voters of the area proposed to be incorporated, but by not less than 25 registered voters of that area, asking for incorporation. The voter shall sign the petition and also clearly print that voter's name adjacent to the signature. The petition must also contain the voter's residence address and date of birth.
(2)	A petition signed by each owner of fifteen percent (15%) of the parcels of real property in the area proposed to be incorporated, but by not less than 25 persons, asking for incorporation. The owner shall sign the petition and also clearly print that owner's name adjacent to the signature. The petition must also contain the address of the real property owned by that owner.
(b)	The petition in subdivision (a)(1) of this section must be verified by the county board of elections of the county where the voter is alleged to be registered. The board of elections shall cause to be examined the signature, shall place a check mark beside the name of each signer who is qualified and registered to vote in that county in the area proposed to be incorporated, and shall attach to the petition a certificate stating the number of voters registered in that county in the area proposed to be incorporated, and the total number of registered voters who have been verified. The county board of elections shall return the petition to the person who presented it within 30 working days of receipt.
(b1)	The petition in subdivision (a)(2) of this section must be verified by the county tax assessor of the county where the parcel of real property is located. The county tax assessor shall cause to be examined the signature and shall place a check mark beside the name of each signer who owns a parcel of real property in the area proposed to be incorporated. The county tax assessor shall also prepare and shall attach to the petition a certificate stating the total number of parcels of real property in the area proposed to be incorporated and the total number of parcels for which the signatures of all owners of that parcel have been verified. For purposes of this subsection, if deed title to a parcel of real property is held by more than one person, all persons holding title to that parcel must be checked off by the county tax assessor in order for that parcel to be counted in the total number of parcels of real property in the area proposed to be incorporated that have been verified. The county tax assessor shall return the petition to the person who presented it within 30 working days of receipt.
(c)	Both petitions under subsection (a) of this section must include the same information regarding the following:
(1)	A proposed name for the city, a map of the city, a list of proposed services to be provided by the proposed municipality, the names of three persons to serve as interim governing board, a proposed charter, a statement of the estimated population, assessed valuation, degree of development, population density, and recommendations as to the form of government and manner of election. The proposed municipality may not contain any noncontiguous areas.
(2)	The same statement that the proposed municipality will have a budget ordinance with an ad valorem tax levy of at least five cents (5¢) on the one hundred dollar ($100.00) valuation upon all taxable property within its corporate limits.
(3)	The same statement that the proposed municipality will offer four of the following services no later than the first day of the third fiscal year following the effective date of the incorporation: (i) police protection; (ii) fire protection; (iii) solid waste collection or disposal; (iv) water distribution; (v) street maintenance; (vi) street construction or right‑of‑way acquisition; (vii) street lighting; and (viii) zoning. In order to qualify for providing police protection, the proposed municipality must propose either to provide police service or to have services provided by contract with a county or another municipality that proposes that the other government be compensated for providing supplemental protection.
(d)	The petitioners must present to the Municipal Incorporations Subcommittee both verified petitions from the county board of elections and the county tax assessor.
(e)	Both petitions under subsection (a) of this section must be submitted together to the Municipal Incorporations Subcommittee at least 60 days prior to convening of the next regular session of the General Assembly in order for the Municipal Incorporations Subcommittee to make a recommendation to that session."
SECTION 2.  G.S. 120‑164 reads as rewritten:
"§ 120‑164.  Notification.
(a)	Not later than five days before submitting the petitions to the Municipal Incorporations Subcommittee, the petitioners shall notify all of the following:
(1)	The board or boards of county commissioners of the county or counties where the proposed municipality is located.
(2)	All cities within that county or counties.
(3)	All cities in any other county that are within five miles of the proposed municipality of the intent to present the petition to the Municipal Incorporations Subcommittee.
(b)	The petitioners shall also publish, one per week for two consecutive weeks, with the second publication no later than seven days before submitting the petitions to the Municipal Incorporations Subcommittee notice in a newspaper of general circulation in the area proposed to be incorporated of the intent to present the petitions to the Municipal Incorporations Subcommittee."
SECTION 3.  G.S. 120‑165 reads as rewritten:
"§ 120‑165.  Initial inquiry.
(a)	The Municipal Incorporations Subcommittee shall, upon receipt of the petitions, determine if the requirements of G.S. 120‑163 and G.S. 120‑164 have been met. If it determines that those requirements have not been met, it shall return the petitions to the petitioners. The Municipal Incorporations Subcommittee shall also publish in the North Carolina Register notice that it has received the petitions.
(b)	If it determines that those requirements have been met, it shall conduct further inquiry as provided by this Part."
SECTION 4.  G.S. 120‑166(b) reads as rewritten:
"(b)	Subsection (a) of this section does not apply in the case of proximity to a specific municipality if any of the following apply:
(1)	The proposed municipality is entirely on an island that the nearby city is not on.
(2)	The proposed municipality is separated by a major river or other natural barrier from the nearby city, such that provision of municipal services by the nearby city to the proposed municipality is infeasible or the cost is prohibitive, and the Municipal Incorporations Subcommittee shall adopt policies to implement this subdivision.
(3)	The municipalities within the distances described in subsection (a) of this section by resolution express their approval of the incorporation.
(4)	An area of at least fifty percent (50%) of the proposed municipality has petitioned for annexation to the nearby city under G.S. 160A‑31 within the previous 12 months before the incorporation petitions are submitted to the Municipal Incorporations Subcommittee but the annexation petition was not approved."
SECTION 5.  G.S. 120‑169.1(b) reads as rewritten:
"(b)	Services. – The Municipal Incorporations Subcommittee may not make a positive recommendation unless the area to be incorporated submits a plan for providing a reasonable level of municipal services. This plan shall be based on the proposed services stated in the petitions under G.S. 120‑163(c)."
SECTION 6.  G.S. 120‑170 reads as rewritten:
"§ 120‑170.  Findings as to services.
The Municipal Incorporations Subcommittee may not make a positive recommendation unless it finds that the proposed municipality can provide at a reasonable tax rate the services requested by the petitions, and finds that the proposed municipality can provide at a reasonable tax rate the types of services usually provided by similar municipalities. In making findings under this section, the Municipal Incorporations Subcommittee shall take into account municipal services already being provided."
SECTION 7.  G.S. 120‑171 reads as rewritten:
"§ 120‑171.  Procedures if findings made.
(a)	If the Municipal Incorporations Subcommittee finds that it may not make a positive recommendation because of the provisions of G.S. 120‑166 through G.S. 120‑170, it shall make a negative recommendation to the General Assembly. The report to the General Assembly shall list the grounds on which a negative recommendation is made, along with specific findings. If a negative recommendation is made, the Municipal Incorporations Subcommittee shall notify the petitioners of the need for a legally sufficient description of the proposed municipality if the proposal is to be considered by the General Assembly. At the request of a majority of the members of the interim board named in the petitions, the Municipal Incorporations Subcommittee may conduct a public hearing and forward any comments or findings made as a result of that hearing along with the negative recommendation.
(b)	If the Municipal Incorporations Subcommittee determines that it will not be barred from making a positive recommendation by G.S. 120‑166 through G.S. 120‑170, it shall require that petitioners have a legally sufficient description of the proposed municipality prepared at their expense as a condition of a positive recommendation.
(c)	If the Municipal Incorporations Subcommittee determines that it is not barred from making a positive recommendation, it shall make a positive recommendation to the General Assembly for incorporation.
(d)	The report of the Municipal Incorporations Subcommittee on a petition shall be in a form determined by the Commission to be useful to the General Assembly and shall be valid for two years from the date issued.
(e)	The Municipal Incorporations Subcommittee shall notify the Commission of all reports issued under this Part."
SECTION 8.  G.S. 120‑172 reads as rewritten:
"§ 120‑172.  Referendum.
Based on information received at the public hearing, the Municipal Incorporations Subcommittee may recommend that any incorporation act passed by the General Assembly shall be submitted to a referendum, except if the petition contained the signatures of fifty percent (50%) of registered voters the Municipal Incorporations Subcommittee shall not recommend a referendum."
SECTION 9.  G.S. 120‑173 reads as rewritten:
"§ 120‑173.  Modification and life of petition.
(a)	With the agreement of the majority of the persons designated by the petitions as an interim governing board, the Municipal Incorporations Subcommittee may submit to the General Assembly recommendations based on deletion of areas from the petitions as long as there are no noncontiguous areas.
(b)	The petitions submitted under G.S. 120‑163 shall be valid and modifiable for three years from the date of submission. After three years from the date of submission, the petition may not be modified under this section or considered by the Municipal Incorporations Subcommittee."
SECTION 10.  G.S. 120‑174 reads as rewritten:
"§ 120‑174.  Deadline for recommendations.
If the petition is timely received under G.S. 120‑163(e), the Municipal Incorporations Subcommittee shall make its recommendation to the General Assembly no later than 60 days after convening of the next regular session after submission of the petitions pursuant to G.S. 120‑163."
SECTION 11.  This act is effective when it becomes law and applies to petitions submitted to the Municipal Incorporations Subcommittee on or after September 1, 2013.