ANNEXATION REFORM.

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View NCGA Bill Details2011-2012 Session
Senate Bill 548 (Public) Filed Thursday, April 7, 2011
TO AMEND AND REFORM THE INVOLUNTARY ANNEXATION LAWS OF NORTH CAROLINA.
Intro. by Davis, Apodaca.

Status: Held As Filed (Senate Action) (Apr 12 2011)

Bill History:

S 548

Bill Summaries:

  • Summary date: Apr 7 2011 - View Summary

    Makes the same or similar changes to various provisions in Part 2 (Annexation by Cities of Less than 5,000) and Part 3 (Annexation by Cities of More than 5,000) of Article 4A in GS Chapter 160A. Amends GS 160A-35 and 160A-47 (prerequisites to annexation; ability to serve; report and plans) to require that the municipality prepare an annexation plan that provides, among other things, for the extension of water mains, waterlines, and sewage lines prior to annexation. Clarifies that in areas where installation of sewer is not fiscally (rather than economically) feasible or would be environmentally damaging due to unique topography or environmental qualities of the area, the municipality may agree to provide septic system maintenance and repair service until sewer service is provided to similarly situated properties. Adds that the plans must call for construction to be completed within two years of the annexation’s effective date. Amends GS 160A-36 and 160A-48 (character of area to be annexed) to prohibit any municipality from annexing any territory in a county other than the municipality’s primary county without approval by the board of commissioners in the county where annexation is proposed. Requires approval to be granted after a public hearing conducted at least 25 days following advertisement. Does not authorize any annexation prohibited by local act. Defines primary county. Amends 160A-36(c)(1) to clarify that an area developed for urban purposes uses at least 65% (rather than 60%) of the total number of lots and tracts for residential, commercial, industrial, institutional, or governmental purposes and is subdivided as specified. Amends GS 160A-48(c), clarifying that an area developed for urban purposes must meet any of the following standards: (1) the area has a total resident population equal to at least three persons (rather than two and three tenths persons) for each acre of land included in the area’s boundaries, (2) the area has a total resident population equal to at least one person per acre of land included in the area’s boundaries and is subdivided into lots and tracts with 60% consisting of lots and tracts two (rather than three) acres or less in size and 70% (rather than 65%) of the lots and tracts are one acre or less, (3) the area is developed so at least 65% (rather than 60%) of the total number of lots and tracts are used for residential, commercial, industrial, institutional, or governmental purposes, or the area meets another standard under existing law.
    Amends GS 160A-37 and 160A-49 (procedure for annexation) to require any municipal governing board to first pass a resolution identifying the proposed area as under consideration for annexation. States that the resolution may have a metes and bounds description or a map, remains effective for two years after adoption, and must be filed with the city clerk. Requires publication of the notice of adoption of the resolution of consideration once a week for two successive weeks, as specified. Allows the municipal governing body to adopt a resolution of intent to proceed with annexation of some or all of the area described in the resolution, at least one year after adoption of the resolution of consideration. Requires the resolution of intent to describe the boundaries of the areas considered for annexation. Requires that notice of public information meeting and public hearing be combined and include, among other items, information on becoming a customer and paying for water or sewer service, and a clear description of the distinction between the informational meeting and the hearing. Requires publication for the informational meeting once a week for at least two successive weeks prior to the meeting, with publication on the same day each week, as specified. Requires notice of the meeting to be mailed by certified mail (rather than first class mail) to certain property owners. Requires that a summary of the annexation and time lines, a summary of available statutory remedies, and the form for requesting extension of water and sewer lines by distributed at the public hearing. Requires the annexation ordinance to set the effective date for annexation on June 30 next following adoption of the ordinance (rather than current timelines). Makes conforming changes by deleting provisions concerning resolutions of intent. Makes other conforming and clarifying changes. Amends GS 160A-37(f) to delete the provision subjecting property in the newly annexed territory to municipal taxes, as described. Makes clarifying changes to GS 160A-49(e). Amends GS 160A-49(f2), adding that taxation of real and personal property is subject to GS 160A-58.10 (tax of newly annexed territory) upon the effective date of annexation. Amends GS 160A-49(k) to direct the city to report to the Local Government Commission (Commission) on whether the extension of water and sewer lines was completed within the specified two year time period. Amends GS 160A-49(l), directing the city to report to the Commission on whether police protection, fire protection, solid waste, or street maintenance services were provided, as specified. Also authorizes a property owner to petition the Commission for abatement of certain city taxes, if the petition is filed no more than 120 days (rather than 90 days) after the 60-day period allowed for service extension. Makes additional conforming and technical changes.
    Amends GS 160A-38(a) and GS 160A-50(a) (concerning appeals) to allow any person owning property in the annexed territory who believes the person will suffer material injury, as specified, to file a petition in the appropriate superior court within 90 days (rather than 60 days) following the passage of the annexation ordinance.
    Enacts new subsection (k) to GS 160A-360, exempting a bona fide farm, as defined, from a municipality’s extraterritorial jurisdiction under Article 19 of GS Chapter 160A. Makes a clarifying change to GS 153A-340(b)(2). Enacts new GS 160A-58.29, prohibiting annexation of land being used for bona fide farm purposes, as defined, without written consent of the property owner.
    Enacts new GS 160A-58.12, directing the Commission to oversee annexation occurring under Parts 2 and 3 of Article 4A in GS Chapter 160A, and to perform three listed functions. Directs a municipality to submit an approved annexation report to the Commission for review. Directs the Commission to determine the fiscal feasibility of the proposed annexation and to report findings within 60 days of receipt of the report. Details provisions for Commission delegation and fees. Directs the Commission to report to the regular session of the General Assembly every two years on seven pieces of information.
    Requires any municipality annexing property on or after July 1, 2012, to hold the county harmless from a reduction in sales tax distribution under Subchapter VIII of GS Chapter 105 (Local Government sales and use tax). Specifies that revenues initially allocated from the sales and use tax to a municipality that annexes property on or after July 1, 2012 must be redistributed to the county where the municipality is located. Further specifies that the amount that must be redistributed is the amount of revenue received less the amount the municipality would have received based on the municipality’s boundaries as of June 30, 2012.
    Enacts new Part 8, City-County Utility Service Plans, to Article 4A in GS Chapter 160A to authorize counties and cities to enter into binding agreements to provide utility services. Includes applicable definitions. Requires a city to enter into a utility services agreement with a county to be approved by ordinance by each government board, if the city wishes to annex any territory in which the county is providing county-owned utility services. Requires the agreement to be reviewed and updated at least every five years. Requires the agreement to contain at least five pieces of information. Requires a public hearing be held, as specified, before the boards adopt ordinances approving the agreement. Allows subsequent agreements, as detailed. Prohibits a municipality from annexing an area in which the county is providing county owned utility services unless the county waives its authority to negotiate a utility services agreement with one or more cities, or the utility services agreement has been adopted by the parties and has not been repealed. Specifies that participants in the agreement are limited to establishing utility services only in the described area.
    Applies to annexation ordinances adopted on or after July 1, 2012.