Bill Summary for H 538 (2015-2016)
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| View NCGA Bill Details | 2015-2016 Session |
AN ACT TO AMEND AND CLARIFY THE POWERS OF WATER AND SEWER AUTHORITIES, TO AUTHORIZE COUNTIES AND CITIES TO PLEDGE A SECURITY INTEREST IN AN ESCROW ACCOUNT UNDER CERTAIN CONDITIONS, TO ALLOW THE LOCAL GOVERNMENT COMMISSION TO AUTHORIZE A THIRTY‑YEAR MATURITY DATE FOR THE FINANCING OF CERTAIN WATER SYSTEM PROJECTS, TO AUTHORIZE METROPOLITAN WATER DISTRICTS AND METROPOLITAN WATER AND SEWERAGE DISTRICTS TO ENTER INTO INSTALLMENT CONTRACT FINANCING AGREEMENTS, AND TO REQUIRE PUBLIC OR COMMUNITY WASTEWATER SYSTEMS TO ACCEPT LIQUID CONDENSATE GENERATED BY RESIDENTIAL HEATING AND COOLING SYSTEMS.Intro. by Millis.
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Bill summary
Senate committee substitute makes the following changes to the 2nd edition.
Amends the act's short and long titles.
Amends GS 162A-6(a), concerning the powers and duties of water and sewer authorities, making a clarifying change concerning reimbursement agreements with private developers or property owners.
Enacts GS 158-7.5, Security interests in rural economic development loans, allowing counties or municipalities that enter into an interest free loan agreement whereby they borrow money in connection with an economic development incentive arrangement to pledge a security interest in an escrow account to secure repayment or a certificate of deposit of the interest free loan. Provides that interest free loan arrangements are subject to the approval of the Local Government Commission. Prohibits deficiency judgments against counties or municipalities in actions for breach of a contractural obligation authorized under this statute, as well as pledging the taxing power to secure any moneys due under a duly authorized contract.
Amends GS 159G-40(b) concerning interest rates and maturity for water infrastructure loans, to allow the Local Government Commission to extend the maximum maturity date from 20 years to 30 years for targeted interest rate loans for certain projects if (1) the project serves a system that is ranked as Tier I on the 2007-08 Tier Drought Vulnerability List and (2) the loan amount is at least eight times the amount of the operating revenue of the unit's system for which the loan is being granted.