AN ACT to provide a procedure to remove an area from a county service district.

The General Assembly of North Carolina enacts:

SECTION 1.  Part 1 of Article 16 of Chapter 153A of the General Statutes is amended by adding a new section to read:
"§ 153A‑303.1.  Removal of territory from service districts.
(a)	Standards. – A board of commissioners may by resolution remove territory from a service district upon finding that:
(1)	One hundred percent (100%) of the owners of real property in the territory to be removed have petitioned for removal.
(2)	The territory to be removed no longer requires the services, facilities, or functions financed, provided, or maintained for the district.
(3)	The service district was created only to provide the services listed in G.S. 153A‑301(a)(4) or G.S. 153A‑301(a)(6) or both.
(4)	The service district does not have any obligation or expense related to the issuance of bonds.
(b)	Report. – Before the public hearing required by subsection (c) of this section, the board shall cause to be prepared a report containing:
(1)	A map of the district highlighting the territory proposed to be removed, showing the present and proposed boundaries of the district; and
(2)	A statement showing that the territory to be removed meets the standards and requirements of subsection (a) of this section.
The report shall be available for public inspection in the office of the clerk to the board for at least 10 days before the date of the public hearing.
(c)	Hearing and Notice. – The board shall hold a public hearing before adopting any resolution reducing the boundaries of a district. Notice of the hearing shall state the date, hour, and place of the hearing and its subject and shall include a statement that the report required by subsection (b) of this section is available for inspection in the office of the clerk to the board. The notice shall be published at least once not less than seven days before the hearing. In addition, the notice shall be mailed at least two weeks before the date of the hearing by any class of U.S. mail which is fully prepaid to the owners as shown by the county tax records as of the preceding January 1 (and at the address shown thereon) of all property located within the territory to be removed. The person designated by the board to mail the notice shall certify to the board that the mailing has been completed, and the certificate shall be conclusive in the absence of fraud.
(d)	Effective Date. – The resolution reducing the boundaries of the district shall take effect at the beginning of a fiscal year commencing after its passage, as determined by the board."
SECTION 2.  This act is effective when it becomes law.
In the General Assembly read three times and ratified this the 26th day of July, 2013.

	s/	 Tom Apodaca
	 Presiding Officer of the Senate

	s/	 Thom Tillis
	 Speaker of the House of Representatives

	_____________________________________
		 Pat McCrory
	 Governor

Approved __________.m. this ______________ day of ___________________, 2013