House committee substitute makes the following changes to the 1st edition. Deletes the content of the previous edition and replaces it with the following.

Sets out General Assembly findings related to local government provision of public enterprise services.

Directs the Legislative Research Commission (Commission) to study issues raised in the stated findings and to make recommendations on the following: (1) fee and charge setting by local governments in the operation of a water or sewer system, (2) proper accounting controls to ensure transparency in budgeting and accounting for expenditures and interfund transfers of public enterprise services by local governments, (3) legislation that may be needed to ensure proper funding of infrastructure maintenance and improvements or the provision of water and sewer services, and (4) legislation that may be necessary to ensure that local governments monitor aging water and sewer infrastructure to ensure proper maintenance and repair. Requires the Commission consult with the Local Government Commission, School of Government, Department of Environmental Quality, NC League of Municipalities, the NC County Commissioners Association, and others. Requires an interim report to the 2017 Regular Session of the General Assembly before it reconvenes in 2018 and requires a final report to the 2019 Regular Session of the General Assembly.

Makes conforming changes to the act's titles.