A BILL TO BE ENTITLED
AN ACT requiring the dissolution of certain metropolitan sewerage districts and transferring the dissolving districts' assets and liabilities to an adjacent district in the same county.
The General Assembly of North Carolina enacts:
SECTION 1.  Article 5 of Chapter 162A of the General Statutes is amended by adding a new section to read:
"§ 162A‑82. Mandatory merger of certain districts.
(a)	The Environmental Management Commission shall adopt a resolution dissolving a district and transferring the assets, liabilities, and other obligations of the district to another district located in the same county when the procedures set forth in subsection (b) have been completed and when all of the following describe the two districts:
(1)	The districts are located in a county with a population of less than 15,000, according to the latest federal decennial census, and with nine or more incorporated municipalities within its jurisdiction.
(2)	The districts collectively provide services to no less than six of the municipalities.
(3)	The areas served by each district are contiguous.
(4)	The district to be dissolved does not directly provide sewerage services to any customers and leases its assets to the district to which its assets and liabilities are proposed to be transferred.
(b)	Before the dissolution and merger of districts as provided in subsection (a) of this section, the following must occur:
(1)	The boards of directors of each district shall adopt a resolution requesting the merger.
(2)	The chair of each board of directors shall submit the resolution to the Environmental Management Commission and, at the same time, shall request that a representative of the Environmental Management Commission hold a public hearing in the proposed merged district to discuss the proposed merger and to receive public comment. The time and place of the public hearing shall be mutually agreed to by the chair of the Environmental Management Commission and the chairs of the board of directors.
(3)	Each board of directors shall (i) cause notice of the public hearing to be posted, at least 30 days prior to the hearing, at the courthouse in the county within which the merged district will lie and (ii) publish the notice at least once a week for four successive weeks in a newspaper having general circulation in the proposed merged district, the first publication to be at least 30 days prior to the public hearing.
(c)	The merger of districts under this section shall become effective on the following July 1 after the resolution described in subsection (a) of this section has been adopted by the Environmental Management Commission.
(d)	Upon the adoption of a resolution by the Environmental Management Commission as provided in subsection (a) of this section, all of the following shall apply on the effective date set forth in subsection (c) of this section:
(1)	All property, real, personal, and mixed, including accounts receivable, belonging to the dissolving district shall vest in, belong to, and be the property of the merged district. All district boards are authorized to take the actions and to execute the documents necessary to effectuate the provisions and intent of this section.
(2)	All judgments, liens, rights of liens, and causes of action of any nature in favor of the dissolving district shall vest in and remain and inure to the benefit of the merged district.
(3)	All taxes, assessments, sewer charges, and any other debts, charges, or fees owing to the dissolving district shall be owed to and collected by the merged district.
(4)	All actions, suits, and proceedings pending against, or having been instituted by, the dissolving district shall not be abated by the merger, but all such actions, suits, and proceedings shall be continued and completed in the same manner as if merger had not occurred, and the merged district shall be a party to all such actions, suits, and proceedings in the place and stead of the dissolving district and shall pay or cause to be paid any judgments rendered against the dissolving district in any such actions, suits, or proceedings. No new process is required to be served in any such action, suit, or proceeding.
(5)	All obligations of the dissolving district, including outstanding indebtedness, shall be assumed by the merged district, and all such obligations and outstanding indebtedness shall constitute obligations and indebtedness of the merged district.
(6)	All ordinances, rules, regulations, and policies of the dissolved district shall continue in full force and effect until repealed or amended by the governing body of the merged district.
(7)	The dissolving district shall be abolished, and shall no longer be constituted a public body or a body politic and corporate, except for purposes of carrying into effect the provisions and intent of this section."
SECTION 2.  This act becomes effective October 1, 2019.