HB 557 — Municipal Omnibus Bill.

GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2019 H 21 HOUSE BILL 557 Committee Substitute Favorable 5/22/19 Short Title:

Representatives Ross and Adcock (Primary Sponsors).

For a complete list of sponsors, refer to the North Carolina General Assembly web site.

State and Local Government, if favorable, Finance, if favorable, Rules, Calendar, and Operations of the House April 3, 2019 A BILL TO BE ENTITLED AN ACT TO MAKE VARIOUS CHANGES TO THE LAWS AFFECTING MUNICIPALITIES.

SECTION 1.1.(a) G.S.

G.S.

– The governing body of any taxing unit may, in its discretion, relieve the tax collector of the charge of taxes owed that are ten or more years past due when it appears to the governing body that such taxes are uncollectible."uncollectable." SECTION 2.(a)1.(b) G.S.This section becomes effective for taxable years beginning on or after January 1, 2019.

SECTION 2.(a) G.S.

(2) AdValoremMethod.–Thenetproceedsofthetaxcollectedinataxingcounty shall be distributed to that county and the municipalities in the county in proportion to the total amount of ad valorem taxes levied by each on property having a tax situs in the taxing county during the fiscal year next preceding *H557-v-1* General Assembly Of North Carolina Session 2019 the distribution.

In addition, the amount of taxes levied by a county *H557-v-2* General Assembly Of North Carolina Session 2019 includes ad valorem taxes levied by a merged school administrative unit described in G.S.

purposes, to local governmental units Page 2 House Bill 557-First Edition General Assembly Of North Carolina Session 2019 identified as a tier one area as defined in G.S.

The appraised value of land that is donated to a local government unit or public authority may be applied to the matching Page 2 House Bill 557-Second Edition General Assembly Of North Carolina Session 2019 requirement of this subdivision.

House Bill 557-First Edition Page 3 General Assembly Of North Carolina Session 2019 (b) Anycitycouncil or county maycontract with anyother governmental agency, or with any public or private association, corporation or organization in undertaking senior citizens programs, and may appropriate funds to any such governmental agency, or to any such public or private association, corporation or organization for the purpose of carrying out such programs.

In the event funds appropriated for the purposes of this section are turned over to any agency or House Bill 557-Second Edition Page 3 General Assembly Of North Carolina Session 2019 organization other than the city or county for expenditure, no such expenditure shall be made until the city or county has approved it, and all such expenditures shall be accounted for by the agency or organization at the end of the fiscal year for which they were appropriated.

For the purpose of this subsection, a municipality has no legal interest in a State-maintained street unless it owns the underlying fee and not just an easement.easement.The city council may include in the ordinance of annexation a description of the area to be annexed any State-maintained street, street rights-of-way, or easement." SECTION 6.(b) G.S.

Notwithstanding160A-58.1(a)(2) thisreads subsection,as arewritten: municipality may include in the description of the area to be annexed any adjacent public streets or public street rights-of-way in an annexation ordinance adopted pursuant to this section." SECTION 6.(b) G.S.

160A-58.2"(2) readsIt asis rewritten:signed by the city for the annexation of property the city does not own or have a legal interest in.

"§For 160A-58.2.the purpose of this subdivision, a city has no legal interest in a State-maintained street unless it owns the underlying fee and not just an easement.

PublicThe hearing.city council mayinclude in the ordinance of annexation a description of the area to be annexed any State-maintained street, street rights-of-way, or easement." SECTION 6.(c) G.S.

(a) Upon receipt of a petition for annexation under this Part, the city council shall cause the city clerk to investigate the petition, and to certify the results of his investigation.

If the clerk certifies that upon investigation the petition appears to be valid, the council shall fix a date for a public hearing on the annexation.

Notice of the hearing shall be published once at least 10 days before the date of hearing.

(b) At the hearing, any person residing in or owning property in the area proposed for annexation and any resident of the annexing city may appear and be heard on the questions of the sufficiency of the petition and the desirability of the annexation.

If the council then finds and determines that (i) the area described in the petition meets all of the standards set out in G.S.

160A-58.1(b), (ii) the petition bears the signatures of all of the owners of real property within theareaproposed forannexation(except thosenot required to sign byG.S.

160A-58.1(a)), (iii) thepetition is otherwisevalid, and (iv)thepublichealth,safetyand welfareoftheinhabitants of the city and of the area proposed for annexation will be best served by the annexation, the council may adopt an ordinance annexing the area described in the petition.

The ordinance may be made effective immediately or on any specified date within six months from the date of passage.

(c) Notwithstanding G.S.

160A-58.1(a)(2), a municipalitymay include in the description of the area to be annexed any adjacent public streets or public street rights-of-way in an annexation ordinance adopted pursuant to this section." SECTION 6.(c) G.S.

For the purpose of this subsection, a city has no legal interest in a State-maintained street unless it owns the underlying fee and not just an easement.easement.The city council may include in the ordinance of annexation a description of the area to be annexed any State-maintained street, street rights-of-way, or easement." SECTION 7.

Notwithstanding this subsection, a municipality may include in the description of the area to be annexed any adjacent public streets or public street rights-of-way in an annexation ordinance adopted pursuant to this section." SECTION 7.

The city shall determine criteria for Page 4 House Bill 557-Second Edition General Assembly Of North Carolina Session 2019 selection of the private agency person or entity other than its own forces or another governmental agency and shall select a private agency in accordance with those criteria.

Page 4 House Bill 557-First Edition General Assembly Of North Carolina Session 2019 (4) The city shall require the private agency person or entity other than its own forces or another governmental agency with which the city contracted to report annually to the city, by presentation in a city council meeting and in written report, regarding the needs of the service district, completed projects, and pending projects.

House Bill 557-Second557-First Edition Page 5