North Carolina 2017-2018 Session Status: Passed House

HB 718 — Study Rates and Transfers/Public Enterprises.

Last action — Regular Message Sent To Senate

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2017-2018 Session. It reached “Passed House” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

142 added · 45 removed

Plain-language change summary

In the latest version of House Bill 718, specific provisions were added detailing how cities can use funds related to public enterprises. The bill now explicitly states that cities can repay any loans they received, allocate funds for shared personnel costs, and cover debt service related to these enterprises. This clarification is important because it ensures that cities have a clear understanding of how they can manage finances and responsibilities associated with public services, potentially making operations more efficient and transparent.

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GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2017 H 2 HOUSE BILL 718 Committee Substitute Favorable 4/25/17 Short Title:
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2017 H 1 HOUSE BILL 718 Short Title:
Study Rates and Transfers/Public Enterprises.
Rates and Transfers by Public Enterprises.
Representative McGrady.
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
April 11, 2017 A BILL TO BE ENTITLED AN ACT TO REQUIRE THE LEGISLATIVE RESEARCH COMMISSION TO STUDY THE PROVISION OF WATER AND SEWER SERVICES BY PUBLIC ENTERPRISES.
Energy and Public Utilities April 11, 2017 A BILL TO BE ENTITLED AN ACT TO PROHIBIT COUNTIES AND CITIES FROM ESTABLISHING DIFFERENTIAL RATES FOR PUBLIC ENTERPRISES BASED SOLELY ON WHETHER THE SERVICE IS PROVIDED INSIDE THE COUNTY OR CITY'S JURISDICTION WITHOUT APPROVAL OF THE LOCAL GOVERNMENT COMMISSION;
TO REQUIRE A PUBLIC ENTERPRISE TO BE ACCOUNTED FOR IN A SEPARATE, SEGREGATED FUND WITH LIMITED TRANSFERS OUT OF THAT FUND;
AND TO REQUIRE THE LEGISLATIVE RESEARCH COMMISSION TO STUDY THE PROVISION OF WATER AND SEWER SERVICES BY PUBLIC ENTERPRISES.
SECTION 1.(a) The General Assembly finds that the ability of a city or county to efficiently and effectively provide public enterprise services, particularly water and sewer services, is challenged by that local government opting to use revenues of the public enterprise for purposes other than:
SECTION 1.(a) G.S.
160A-312 reads as rewritten:
"§ 160A-312.
Authority to operate public enterprises.
(a) A city shall have authority to acquire, construct, establish, enlarge, improve, maintain, own, operate, and contract for the operation of any or all of the public enterprises as defined in this Article to furnish services to the city and its citizens.
Subject to Part 2 of this Article, a city may acquire, construct, establish, enlarge, improve, maintain, own, and operate any public enterprise outside its corporate limits, within reasonable limitations, but in no case shall a city be held liable for damages to those outside the corporate limits for failure to furnish any public enterprise service.
(b) A city shall have full authority to protect and regulate any public enterprise system belonging to or operated by it by adequate and reasonable rules.
The rules shall be adopted by ordinance, shall apply to the public enterprise system both within and outside the corporate limits of the city, and may be enforced with the remedies available under any provision of law.
(c) A city may operate that part of a gas system involving the purchase and/or lease of natural gas fields, natural gas reserves and natural gas supplies and the surveying, drilling or any other activities related to the exploration for natural gas, in a partnership or joint venture arrangement with natural gas utilities and private enterprise.
(d) A city shall account for a public enterprise in a separate fund and may not transfer any money from that separate fund to any other fund except as provided in this subsection or Article 3 of Chapter 159 of the General Statutes.
Obligations of the public enterprise may be paid out of the separate fund.
Permitted transfers out of the separate fund shall be as follows, if applicable:
(1) For a capital project fund established for the construction or replacement of assets for that public enterprise.
*H718-v-1* General Assembly Of North Carolina Session 2017 (2) To repay the city for any monies loaned to the public enterprise.
(3) To a fund within the city to cover the public enterprise's portion of any costs shared across city funds, including salaries and benefits of shared personnel.
(4) For debt service related to the public enterprise.
(e) For purposes of this section, "outside the corporate limits" shall include any area outside the principal municipal corporate limits without regard to the county." SECTION 1.(b) G.S.
160A-314(a) reads as rewritten:
"(a) A city may establish and revise from time to time schedules of rents, rates, fees, charges, and penalties for the use of or the services furnished by any public enterprise.
Schedules of rents, rates, fees, charges, and penalties may vary according to classes of service, and different service.
Different schedules may be adopted for services provided outside the corporate limits of the city.only if approved by the Local Government Commission after a public hearing.
A city shall use revenue derived from rates, fees, charges, and penalties for the purpose of paying the expenses of maintaining, operating, and expanding the public enterprise, including debt payments and capital reserves." SECTION 2.(a) G.S.
153A-275 reads as rewritten:
"§ 153A-275.
Authority to operate public enterprises.
(a) A county may acquire, lease as lessor or lessee, construct, establish, enlarge, improve, extend, maintain, own, operate, and contract for the operation of public enterprises in order to furnish services to the county and its citizens.
A county may acquire, construct, establish, enlarge, improve, maintain, own, and operate outside its borders any public enterprise.
(b) A county may adopt adequate and reasonable rules to protect and regulate a public enterprise belonging to or operated by it.
The rules shall be adopted by ordinance, shall apply to the public enterprise system both within and outside the county, and may be enforced with the remedies available under any provision of law.
(c) A county shall account for a public enterprise in a separate fund and may not transfer any money from that separate fund to any other fund except as provided in this subsection or Article 3 of Chapter 159 of the General Statutes.
Obligations of the public enterprise may be paid out of the separate fund.
Permitted transfers out of the separate fund shall be as follows, if applicable:
(1) For a capital project fund established for the construction or replacement of assets for that public enterprise.
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(2) To repay the county for any monies loaned to the public enterprise.
(3) To a fund within the county to cover the public enterprise's portion of any costs shared across county funds, including salaries and benefits of shared personnel.
(4) For debt service related to the public enterprise." SECTION 2.(b) G.S.
153A-277(a) reads as rewritten:
"(a) A county may establish and revise from time to time schedules of rents, rates, fees, charges, and penalties for the use of or the services furnished by a public enterprise.
Schedules of rents, rates, fees, charges, and penalties may vary for the same class of service in different areas of the county and may vary according to classes of service, and different service.
Different schedules may be adopted for services provided outside of the county.
county, only if approved by the Local Government Commission after a public hearing.
A county may include a fee relating to subsurface discharge wastewater management systems and services on the property tax bill for the real property where the system for which the fee is imposed is located.
A county shall use revenue derived from rates, fees, charges, and penalties for the purpose of paying the expenses of maintaining, operating, and expanding the public enterprise, including debt payments and capital reserves." SECTION 3.
G.S.
159-13(b)(14) reads as rewritten:
Page 2 House Bill 718-First Edition General Assembly Of North Carolina Session 2017 "(14) No Except as provided in G.S.
153A-277, G.S.
160A-312, or this subdivision, no appropriation may be made from a utility or public service enterprise fund to any other fund than the appropriate debt service fund unless the total of all other appropriations in the fund equal or exceed the amount that will be required during the fiscal year, as shown by the budget ordinance, to meet operating expenses, capital outlay, and debt service on outstanding utility or enterprise bonds or notes.
fund.
A county may, upon a finding that a fund balance in a utility or public service enterprise fund used for operation of a landfill exceeds the requirements for funding the operation of that fund, including closure and post-closure expenditures, transfer excess funds accruing due to imposition of a surcharge imposed on another local government located within the State for use of the disposal facility, as authorized by G.S.
153A-292(b), to support the other services supported by the county's general fund." SECTION 4.(a) The General Assembly finds that the ability of a city or county to efficiently and effectively provide public enterprise services, particularly water and sewer services, is challenged by that local government opting to use revenues of the public enterprise for purposes other than:
SECTION 1.(b) The General Assembly further finds that any excess net revenues should be used to lower rates, advance fund debt service, and fund infrastructure improvements of that public enterprise.
SECTION 4.(b) The General Assembly further finds that any excess net revenues should be used to lower rates, advance fund debt service, and fund infrastructure improvements of that public enterprise.
SECTION 1.(c) The Legislative Research Commission shall study the issues raised in this section and make recommendations to the General Assembly on:
SECTION 4.(c) The Legislative Research Commission shall study the issues raised in this section and make recommendations to the General Assembly on:
SECTION 1.(d) In making the study provided by this section, the Legislative Research Commission shall consult with the Local Government Commission, the School of Government, the Department of Environmental Quality, the North Carolina League of Municipalities, the North Carolina County Commissioners Association, and others.
SECTION 4.(d) In making the study provided by this section, the Legislative Research Commission shall consult with the Local Government Commission, the School of Government, the Department of Environmental Quality, the North Carolina League of Municipalities, the North Carolina County Commissioners Association, and others.
*H718-v-2* General Assembly Of North Carolina Session 2017 SECTION 1.(e) The Legislative Research Commission shall make an interim report to the 2017 Regular Session of the General Assembly prior to its reconvening in 2018 and shall make a final report to the 2019 Regular Session of the General Assembly.
SECTION 4.(e) The Legislative Research Commission shall make an interim report to the 2017 Regular Session of the General Assembly prior to its reconvening in 2018 and shall make a final report to the 2019 Regular Session of the General Assembly.
SECTION 2.
SECTION 5.
This act is effective when it becomes law.
This act becomes effective July 1, 2017.
Page 2 House Bill 718-Second Edition
House Bill 718-First Edition Page 3
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Action History

  1. Regular Message Sent To Senate

  2. Regular Message Received From House

  3. Passed 1st Reading

  4. Ref To Com On Rules and Operations of the Senate

  5. Passed 2nd Reading

  6. Passed 3rd Reading

  7. Reptd Fav Com Substitute

  8. Cal Pursuant Rule 36(b)

  9. Placed On Cal For 04/26/2017

  10. Passed 1st Reading

  11. Ref To Com On Energy and Public Utilities

  12. Filed

Sponsors

  • McGrady · Cosponsor

Sponsorship breakdown

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0 sponsors · 1 co-sponsors · 178 not signed on

Sponsors (0)

None.

Co-sponsors (1)

  • McGrady

Not signed on (178)

178 members have not signed on to this bill.

Show all 178 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Second Reading

Passed 119 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 76000
Democratic 15000
Republican 27001
U 1000
Total 119001
% of votes cast 99%0%0%1%
How each member voted (120)
Member Party Vote
McElraft — Yea
Michaux — Yea
Millis — Yea
Steinburg — Yea
Szoka — Yea
Yarborough — Yea
Zachary — Yea
Boles — Yea
Boswell — Yea
Burr — Yea
Conrad — Yea
Dobson — Yea
Dulin — Yea
Faircloth — Yea
Farmer-Butterfield — Yea
Fisher — Yea
Floyd — Yea
Fraley — Yea
Garrison — Yea
Gill — Yea
Hurley — Yea
G.Adcock — Yea
L.Bell — Yea
DuaneHall — Yea
C.Graham — Yea
G.Graham — Yea
Jackson — Yea
Autry — Yea
Beasley — Yea
Black — Yea
Earle — Yea
Goodman — Yea
Hanes — Yea
Holley — Yea
Hunter — Yea
Insko — Yea
G.Martin — Yea
R.Moore — Yea
B.Richardson — Yea
W.Richardson — Yea
B.Turner — Yea
J.Bell — Yea
BertJones — Yea
Brawley — Yea
BrendenJones — Yea
DestinHall — Yea
K.Hall — Yea
Johnson — Yea
Malone — Yea
S.Martin — Yea
T.Moore(Speaker) — Yea
Bradford — Yea
Bumgardner — Yea
Cleveland — Yea
Collins — Yea
Dollar — Yea
Elmore — Yea
Grange — Yea
Hardister — Yea
Henson — Yea
Horn — Yea
Jordan — Yea
Lewis — Yea
Lucas — Yea
McGrady — Yea
McNeill — Yea
Murphy — Yea
Presnell — Yea
Rogers — Yea
Saine — Yea
Speciale — Yea
Terry — Yea
Wray — Yea
Stone — Yea
R.Turner — Yea
Williams — Yea
Amos L. Quick, III Democratic Yea
Becky Carney Democratic Yea
Cecil Brockman Democratic Yea
Cynthia Ball Democratic Yea
Dante Pittman Democratic Yea
Deb Butler Democratic Yea
Eric Ager Democratic Yea
Garland E. Pierce Democratic Yea
Graig Meyer Democratic Yea
Joe John Democratic Yea
Marcia Morey Democratic Yea
Mary Belk Democratic Yea
Pricey Harrison Democratic Yea
Robert T. Reives, II Democratic Yea
Shelly Willingham Democratic Yea
Carl Ford Republican Yea
Dean Arp Republican Yea
Dennis Riddell Republican Yea
Donna McDowell White Republican Yea
Donny Lambeth Republican Yea
Frank Iler Republican Yea
Harry Warren Republican Yea
Hugh Blackwell Republican Yea
Jay Adams Republican Yea
Jimmy Dixon Republican Yea
John A. Torbett Republican Yea
John M. Blust Republican Yea
John Sauls Republican Not Voting
Julia C. Howard Republican Yea
Kelly E. Hastings Republican Yea
Kevin Corbin Republican Yea
Larry C. Strickland Republican Yea
Larry W. Potts Republican Yea
Mark Brody Republican Yea
Mike Clampitt Republican Yea
Mitchell S. Setzer Republican Yea
Phil Shepard Republican Yea
Sam Watford Republican Yea
Sarah Stevens Republican Yea
Stephen M. Ross Republican Yea
Ted Davis, Jr. Republican Yea
W. Ted Alexander Republican Yea
William D. Brisson Republican Yea
Carla D. Cunningham U Yea

Official roll call →

Subjects

public-safety labor transportation
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors HB 718?
HB 718 is sponsored by McGrady.
What is the current status of HB 718?
This bill died with 2017-2018 Session. It reached “Passed House” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track HB 718?
Track HB 718 free on One Click Politics — get push/email alerts when it moves.

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