AN ACT TO DIRECT THE LEGISLATIVE RESEARCH COMMISSION TO STUDY THE ISSUE OF RESPONSIBILITY FOR MAINTENANCE OF INTRASTRUCTURE ON FORECLOSED OR ABANDONED PROPERTIES.
Amends GS Chapter 143, adding a new section GS 143-139.4 (Financial assurance for certain retaining systems), providing that any person who is constructing a retaining system greater than five feet in vertical cumulative relief, as part of the development of specified lots, will obtain and file a surety bond with the clerk of superior court in the county the retaining system is located. Sets out the financial requirements and terms of the bond. Provides that no local government can issue a permit for such a system without proof of having obtained and filed the surety bond.
Amends GS Chapter 113A, adding a new section GS 113A-54.3, (Financial assurance for establishment of permanent ground cover), providing that no person can begin a land-disturbing activity in the development of specified lots, unless the person establishes financial assurances that sufficient funds are available to comply with the provisions of this article until permanent ground cover has been established and the site has been closed by the North Carolina Department of Environment and Natural Resources (DENR), or a local government administrating a local erosion and sedimentation control program. Sets out the forms that the financial assurance can take, including, but not limited to, a surety performance bond made by a surety bonding company licensed and authorized in North Carolina or a cash deposit by way of an official bank check drawn in favor of the permitting entity and deposited with the same. Assets used to meet the financial assurance requirements must be in a form that will permit DENR or a delegated program to readily access funds for the purposes of this section.
Provides that such financial assurances will be continuous in nature and will remain in force until canceled or released by DENR or a delegated local program. The required amount of financial assurance is calculated on a per disturbed acre rate, as determined by the Director of the Division of Energy, Mineral, and Land Resources (Director) or the Director's designee, and must be sufficient to comply with the provisions of this section. Provides that an applicant can submit an estimate of costs for installing and maintaining erosion and sedimentation control measures if there is a disagreement about the amount of the financial assurance the Director has determined is necessary. Sets out the time requirements and review process for the submittal of the estimate.
Provides that the required amount of financial assurance can be reduced as permanent ground cover is established and approved on the areas of the land disturbance.
Provides that the financial assurance is subject to seizure by DENR or local government when uncorrected violations of GS 113A-57 continue for over 60 days. Sets out the requirements and conditions of the proceedings for the seizure of the financial assurance. Provides that funds collected as a result of the proceedings will be used to bring the land-disturbing activity into compliance with GS 113-57. Provides that State and local governmental agencies, including water or sewer authorities or districts, will not be subjected to the provisions of this section.
Amends GS 136-102.6(f), making technical and organizational changes. Establishes that the developer and seller, when developing a subdivision with designated private streets, must obtain and file a surety bond with the clerk of superior court in the county of the subdivision. The bond must be in the favor of the property owners to be served by the private street and secured by two or more sureties and the limited duration of the surety bond most be disclosed in the disclosure statement. Requires the amount of the bond to be at least equal to projected costs for the first 10 years of the private street's use, as determined by the Division of Highways. The bond must remain in force for 10 years after construction and if any action by the developer or seller reduces the liability of the surety, then a replacement surety bond must be obtained by the same and is required to remain in force for 10 years after the date it is obtained.
Effective October 1, 2013.
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