STUDY PUBLIC ENTERPRISE SYSTEMS/USE OF FUNDS (NEW).

View NCGA Bill Details2013-2014 Session
House Bill 708 (Public) Filed Wednesday, April 10, 2013
A JOINT RESOLUTION TO DIRECT THE LEGISLATIVE RESEARCH COMMISSION TO STUDY THE PROPER USE BY A LOCAL GOVERNMENT OWNING OR OPERATING A PUBLIC ENTERPRISE OF REVENUE DERIVED FROM SERVICES FURNISHED BY IT AND MAKE RECOMMENDATIONS TO THE GENERAL ASSEMBLY ON PROPER OVERSIGHT OF SUCH PUBLIC ENTERPRISE.
Intro. by Moffitt, Murry, Daughtry, Collins.

Status: Ref To Com On Rules and Operations of the Senate (Senate Action) (May 2 2013)

SOG comments (1):

Long title change.

House committee substitute changes the short and long titles. The original titles are as follows:

Public Enterprise Systems/Use of Funds.

A BILL TO BE ENTITLED AN ACT PROVIDING THAT A MUNICIPALITY OR COUNTY OWNING OR OPERATING A PUBLIC ENTERPRISE SHALL USE REVENUE DERIVED FROM RATES, FEES, CHARGES, AND PENALTIES FOR THE USE OF OR THE SERVICES FURNISHED BY THE PUBLIC ENTERPRISE TO PAY THE COSTS OF OPERATING THE PUBLIC ENTERPRISE AND TO MAKE DEBT SERVICE PAYMENTS AND SHALL USE EXCESS REVENUE FOR LOWERING RATES AND MAKING ADDITIONAL DEBT SERVICE PAYMENTS.

H 708

Bill Summaries:

  • Summary date: Apr 30 2013 - More information

    House committee substitute makes the following changes to the 1st edition.

    Changes short and long title.

    Deletes and replaces all of the sections and provisions of the previous edition.

    Establishes that the General Assembly finds that the ability of a city or county to efficiently and effectively provide public enterprise services is imperiled by the use by that local government of those revenues for purposes other than (1) the paying of costs of operating the public enterprise, (2) making debt service payments, (3) investing in improvements to the infrastructure of that public enterprise, and (4) reimbursing the unit of local government for actual direct services provided to the public enterprise.

    States that the General Assembly also finds that any excess net revenues should be used to lower rates, advance fund debt service, and fund infrastructure improvements of that public enterprise.

    Directs the Legislative Research Commission (Commission) to study the issues raised above as well as make recommendations in regards to the following:

    (1) Proper accounting controls to ensure transparency in budgeting and accounting for expenditures and interfund transfers of city and county public enterprise services.

    (2) Legislation which may be necessary to ensure proper funding of infrastructure maintenance and improvements for local government public enterprises.

    (3) Legislation which may be necessary to ensure that local governments monitor aging public enterprise infrastructure to ensure proper maintenance and repair.

    (4) Legislation to improve local government public enterprise management.

    Provides that the Commission will consult with the Local Government Commission and the School of Government during the course of the study. The Commission will make an interim report to the 2013 Regular Session of the General Assembly prior to its reconvening in 2014 and will make a final report to the 2015 Regular Session of the General Assembly


  • Summary date: Apr 10 2013 - More information

    Enacts new GS 160A-314.2 (concerning cities) and GS 153A-277.1 (concerning counties), as the tile indicates.


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