H.B. 455
GENERAL ASSEMBLY OF NORTH CAROLINA
Mar 22, 2023
SESSION 2023 HOUSE PRINCIPAL CLERK
H D
HOUSE BILL DRH30199-RI-2B
Short Title: Expedite Water/Wastewater Franchise Transfer. (Public)
Sponsors: Representative Arp.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO EXPEDITE TRANSFER OF WATER OR WASTEWATER PUBLIC UTILITIES.
3 The General Assembly of North Carolina enacts:
4 SECTION 1.(a) G.S. 62-111 is amended by adding a new subsection to read:
5 "(f) The following provisions apply to an application for the grant or transfer of a
6 certificate of public convenience and necessity for a water or wastewater system:
7 (1) Within 30 days of the filing of such application, the Commission shall (i)
8 determine whether or not the application is complete and notify the applicant
9 accordingly and (ii) if the Commission determines an application is
10 incomplete, specify all such deficiencies in the notice to the applicant. The
11 applicant may file an amended application or supplemental information to
12 cure the deficiencies identified by the Commission for the Commission's
13 review. If the Commission fails to issue a notice as to whether or not the
14 application is complete within the requisite 30-day period, the application
15 shall be deemed complete. Within 300 days of the filing of a completed
16 application, the Commission shall issue an order approving the application
17 upon finding that the proposed grant or transfer, including adoption of existing
18 or proposed rates for the transferring utility, is in the public interest, will not
19 adversely affect service to the public under any existing franchise, and the
20 person acquiring said franchise or certificate of public convenience and
21 necessity has the technical, managerial, and financial capabilities necessary to
22 provide public utility service to the public. The requirements of this
23 subdivision shall apply (i) to any applications for grants or transfers of water
24 or wastewater systems, except with respect to those governed by subdivision
25 (2) of this subsection and (ii) only to grants or transfers sought as a result of a
26 proposed sale of a privately owned water or wastewater system to a public or
27 private entity.
28 (2) Within 30 days of the filing of such application, the Commission shall (i)
29 determine whether or not the application is complete and notify the applicant
30 accordingly and (ii) if the Commission determines an application is
31 incomplete, specify all such deficiencies in the notice to the applicant. The
32 applicant may file an amended application or supplemental information to
33 cure the deficiencies identified by the Commission for the Commission's
34 review. If the Commission fails to issue a notice as to whether or not the
35 application is complete within the requisite 30-day period, the application
36 shall be deemed complete. Within 210 days of the filing of a completed
*DRH30199-RI-2B*
 General Assembly Of North Carolina Session 2023
1 application, the Commission shall issue an order approving the application
2 upon finding that the proposed grant or transfer, including adoption of existing
3 or proposed rates for the transferring utility, is in the public interest, will not
4 adversely affect service to the public under any existing franchise, and the
5 person acquiring said franchise or certificate of public convenience and
6 necessity has the technical, managerial, and financial capabilities necessary to
7 provide public utility service to the public. The requirements of this
8 subdivision shall only apply to (i) water or wastewater systems with an
9 unresolved notice of violation issued by the Department of Environmental
10 Quality within the 24-month period immediately preceding the date of
11 application and (ii) grants or transfers sought as a result of a proposed sale of
12 a privately owned water or wastewater system to a public or private entity.
13 (3) Prior to submittal of an application, and within 90 days of entering into an
14 offer to purchase agreement for a water or wastewater system, a proposed
15 purchaser shall have a pre-application conference with the Commission and
16 Public Staff to clarify application requirements, information on assets that
17 must be provided, and associated matters.
18 (4) An applicant for the grant or transfer of a certificate of public convenience
19 and necessity for a water or wastewater system may waive any deadline for
20 determination of an application's completeness, or issuance of an order
21 approving an application, set forth in subdivision (1) or (2) of this subsection."
22 SECTION 1.(b) The following provisions apply to applications for the grant or
23 transfer of a certificate of public convenience and necessity for a water or wastewater system
24 pending on the date this act becomes law:
25 (1) Notwithstanding the requirements of G.S. 62-111(f), as enacted by Section
26 1(a) of this act, the Commission shall:
27 a. Within 30 days of that date, determine whether the application is
28 complete and specify any deficiencies in a notice to the applicant. The
29 applicant may file an amended application or supplemental
30 information to cure any deficiencies identified by the Commission for
31 the Commission's review. If the Commission fails to issue a notice as
32 to whether or not the application is complete within the requisite
33 30-day period, the application shall be deemed complete.
34 b. Issue an order approving the application no later than 180 days after
35 the date this act becomes law, or the filing of a completed application,
36 whichever is later, if the Commission finds that the proposed grant or
37 transfer, including adoption of existing or proposed rates for the
38 transferring utility, is in the public interest, will not adversely affect
39 service to the public under any existing franchise, and the person
40 acquiring said franchise or certificate of public convenience and
41 necessity has the technical, managerial, and financial capabilities
42 necessary to provide public utility service to the public.
43 (2) An applicant for the grant or transfer of a certificate of public convenience
44 and necessity for a water or wastewater system may waive any deadline for
45 determination of an application's completeness, or issuance of an order
46 approving an application, set forth in subdivision (1) or (2) of this subsection.
47 (3) The requirements of this section shall only apply to grants or transfers sought
48 as a result of a proposed sale of a privately owned water or wastewater system
49 to a public or private entity.
Page 2 DRH30199-RI-2B
 General Assembly Of North Carolina Session 2023
1 SECTION 2. This act is effective when it becomes law. G.S. 62-111(f), as enacted
2 by Section 1(a) of this act, applies to applications for grant or transfer of certificates of public
3 convenience and necessity filed on or after that date.
DRH30199-RI-2B Page 3


Statutes affected:
Filed: 62-111
Edition 1: 62-111
Edition 2: 62-111
Ratified: 62-111
SL 2023-67: 62-111