Bill Summary – FastDemocracy

FILED SENATE
                                                                                         Mar 6, 2023
                          GENERAL ASSEMBLY OF NORTH CAROLINA
                                                                 S.B. 211
                                      SESSION 2023           PRINCIPAL CLERK
     S                                                                    D
                               SENATE BILL DRS15088-MH-62
     Short Title:   Permit Multistate Water/Sewer Authority.                                   (Public)
     Sponsors:      Senator Moffitt (Primary Sponsor).
     Referred to:
                                      A BILL TO BE ENTITLED
 AN ACT TO ALLOW POLITICAL SUBDIVISIONS FROM ADJOINING STATES TO BE
     MEMBERS OF A NORTH CAROLINA WATER AND SEWER AUTHORITY.
 The General Assembly of North Carolina enacts:
             SECTION 1. G.S. 162A-3 reads as rewritten:
 "§ 162A-3. Procedure for creation; certificate of incorporation; certification of principal
             office and officers.
     (a)     The governing body of a single county or the governing bodies of any two or more
 political subdivisions may by resolution signify their determination to organize an authority
 under the provisions of this Article. Each of such resolutions shall be adopted after a public
 hearing thereon, notice of which hearing shall be given by publication at least once, not less than
 10 days prior to the date fixed for such hearing, in a newspaper having a general circulation in
 the political subdivision. Such notice shall contain a brief statement of the substance of the
 proposed resolution, shall set forth the proposed articles of incorporation of the authority and
 shall state the time and place of the public hearing to be held thereof. No such political
 subdivision shall be required to make any other publication of such resolution under the
 provisions of any other law.
     (a1) If an authority is organized by three or more political subdivisions, it may include in
 its organization nonprofit water corporations. The board of directors of a nonprofit water
 corporation must signify the corporation's determination to participate in the organization of the
 authority by adopting a resolution that meets the requirements of subsection (b) of this section.
 The nonprofit water corporation is not subject to the notice and public hearing requirements of
 subsection (a) of this section. For all other purposes of this Article, the nonprofit water
 corporation shall be considered to be a political subdivision.
     (a2) If an authority is organized by three or more political subdivisions, it may include in
 its organization the State of North Carolina. The State of North Carolina is not subject to the
 notice and public hearing requirements of subsection (a) of this section. For purposes of this
 Article, the State of North Carolina shall be a political subdivision and its governing body shall
 be the Council of State.
     (a3) An authority may include one or more units of local government in a state adjoining
 any county that is or contains one or more political subdivisions organizing that authority under
 this section, if that inclusion is permitted by the laws of the adjoining state. The governing body
 of the political subdivision in the adjoining state must adopt a resolution that meets the
 requirement of subsection (b) of this section and must also file the resolution with the Secretary
 of State of North Carolina and provide proof of publication as required by subsection (c) of this
 section. For all other purposes of this Article and notwithstanding the requirement of
                                    *DRS15088-MH-62*
     General Assembly Of North Carolina                                                     Session 2023
 G.S. 162A-2(7) that a political subdivision be located in this State, the unit of local government
 in the adjoining state is considered a political subdivision.
      (b)    Each such resolution shall include articles of incorporation which shall set forth:
             (1)      The name of the authority;
             (2)      A statement that such authority is organized under this Article;
             (3)      The names of the organizing political subdivisions; and
             (4)      The names and addresses of the first members of the authority appointed by
                      the organizing political subdivisions.
      (c)    A certified copy of each of such resolutions signifying the determination to organize
 an authority under the provisions of this Article shall be filed with the Secretary of State of North
 Carolina, together with proof of publication of the notice of hearing on each of such resolutions.
 If the Secretary of State finds that the resolutions, including the articles of incorporation, conform
 to the provisions of this Article and that the notices of hearing were properly published, he shall
 file such resolutions and proofs of publication in his office and shall issue a certificate of
 incorporation under the seal of the State and shall record the same in an appropriate book of
 record in his office. The issuance of such certificate of incorporation by the Secretary of State
 shall constitute the authority a public body and body politic and corporate of the State of North
 Carolina. Said certificate of incorporation shall be conclusive evidence of the fact that such
 authority has been duly created and established under the provisions of this Article.
      (d)    When the authority has been duly organized and its officers elected as herein provided
 the secretary of the authority shall certify to the Secretary of State the names and addresses of
 such officers as well as the address of the principal office of the authority."
             SECTION 2. G.S. 162A-3.1 reads as rewritten:
 "§ 162A-3.1. Alternative procedure for creation.
      (a)    As an alternative to the procedure set forth in G.S. 162A-3, the governing body of a
 single county or the governing bodies of any two or more political subdivisions may by resolution
 signify their determination to organize an authority under the provisions of this section of this
 Article. Each of such resolutions shall be adopted after a public hearing thereon, notice of which
 hearing shall be given by publication at least once, not less than 10 days prior to the date fixed
 for such hearing, in a newspaper having a general circulation in the political subdivision. Such
 notice shall contain a brief statement of the substance of the proposed resolution, shall set forth
 the proposed articles of incorporation of the authority and shall state the time and place of the
 public hearing. No such political subdivision shall be required to make any other publication of
 such resolution under the provisions of any other law.
      (a1) If an authority is organized by three or more political subdivisions, it may include in
 its organization nonprofit water corporations. The board of directors of a nonprofit water
 corporation must signify the corporation's determination to participate in the organization of the
 authority by adopting a resolution that meets the requirements of subsection (b) of this section.
 The nonprofit water corporation is not subject to the notice and public hearing requirements of
 subsection (a) of this section. For all other purposes of this Article, the nonprofit water
 corporation shall be considered to be a political subdivision.
      (a2) If an authority is organized by three or more political subdivisions, it may include in
 its organization the State of North Carolina. The State of North Carolina is not subject to the
 notice and public hearing requirements of subsection (a) of this section. For purposes of this
 Article, the State of North Carolina shall be a political subdivision and its governing body shall
 be the Council of State.
      (a3) An authority may include one or more units of local government in a state adjoining
 any county that is or contains one or more political subdivisions organizing that authority under
 this section, if that inclusion is permitted by the laws of the adjoining state. The governing body
 of the political subdivision in the adjoining state must adopt a resolution that meets the
 requirement of subsection (b) of this section and must also file the resolution with the Secretary
     Page 2                                                                           DRS15088-MH-62
     General Assembly Of North Carolina                                                     Session 2023
 of State of North Carolina and provide proof of publication as required by subsection (c) of this
 section. For all other purposes of this Article and notwithstanding the requirement of
 G.S. 162A-2(7) that a political subdivision be located in this State, the unit of local government
 in the adjoining state is considered a political subdivision.
     (b)     Each such resolution shall include articles of incorporation which shall set forth:
             (1)     The name of the authority;
             (2)     A statement that such authority is organized under this section of this Article;
             (3)     The names of the organizing political subdivisions;
             (4)     The names and addresses of the members of the authority appointed by the
                     organizing political subdivisions; and
             (5)     A statement that members of the authority will be limited to such members as
                     may be appointed from time to time by the organizing political subdivisions.
     (c)     A certified copy of each of such resolutions signifying the determination to organize
 an authority under the provisions of this section of this Article shall be filed with the Secretary
 of State of North Carolina, together with proof of publication of the notice of hearing on each of
 such resolutions. If the Secretary of State finds that the resolutions, including the articles of
 incorporation, conform to the provisions of this section of this Article and that the notices of
 hearing were properly published, he shall file such resolutions and proofs of publication in his
 office and shall issue a certificate of incorporation under the seal of the State and shall record the
 same in an appropriate book of record in his office. The issuance of such certificate of
 incorporation by the Secretary of State shall constitute the authority a public body and body
 politic and corporate of the State of North Carolina. Said certificate of incorporation shall be
 conclusive evidence of the fact that such authority has been duly created and established under
 the provisions of this section of this Article.
     (d)     When the authority has been duly organized and its officers elected as herein provided
 the secretary of the authority shall certify to the Secretary of State the names and addresses of
 such officers as well as the address of the principal office of the authority."
             SECTION 3. This act is effective when it becomes law and applies to any water and
 sewer authority created under Article 1 of Chapter 162A of the General Statutes on or after that
 date.
     DRS15088-MH-62                                                                                Page 3
Statutes affected: 
Filed: 162A-3, 162A-3.1
Edition 1: 162A-3, 162A-3.1
Edition 2: 162A-3, 162A-3.1
Ratified: 162A-3, 162A-3.1
SL 2023-126: 162A-3, 162A-3.1