House committee substitute to the 4th edition makes the following changes.

Adds new Part V with the following content. 

Creates new GS 159-154 (Non-governmental control of public enterprises), which:

(1) Adopts definitions relevant for the section.

(2) Prohibits a unit of local government from conceding or transferring control of any public enterprise to a non-governmental entity unless the concession/transfer and the agreement controlling the concession/transfer are approved by the Local Government Commission (LGC) under the terms of the section. Requires any agreement for concession/transfer to bear the LGC Secretary’s certificate to be valid. 

(3) Requires the governing board of a unit of local government to submit an application to the LGC prior to entering into an agreement subject to this section. Allows the LGC to require a preliminary conference with the governing board or representatives of the board prior to approving the application. 

(4) Requires the governing body of a unit of local government to hold a public hearing to determine if an agreement subject to this section is in the public interest prior to the LGC’s consideration of the agreement. Establishes requirements for the public hearing. Outlines 11 criteria for consideration by the governing body when determining whether the agreement is in the public interest. 

(5) Allows the LGC to approve an agreement if it finds that the agreement will reduce short and long term costs to customers without the imposition of material costs or charges to the local government unit or the customers upon termination of the agreement. Permits the LGC to inquire into and consider matters that it believes have bearing on whether the agreement should be approved, including any of 12 listed criteria. 

(6) Permits the LGC to require any projection or analysis provided along with an agreement to be prepared by an independent expert approved by the LGC. 

(7) Allows the LGC to inform the unit of local government if it tentatively decides to deny an agreement because it cannot be supported by the information submitted to the LGC. Requires the LGC to enter an order denying or approving an application. Clarifies that LGC approval of an agreement does not represent approval of the legality of the agreement. 

(8) Requires a unit of local government to seek approval from the LGC before terminating an agreement approved under this section prior to the expiration of its stated term. Specifies that the approval must follow a procedure similar to the initial approval of the agreement. Clarifies that this requirement does not apply to termination of the agreement as an exercise of legal remedies following a breach of the agreement’s terms. 

(9) Imposes a similar LGC approval requirement prior to adoption of an amendment to an agreement initially approved under this section. 

Amends the title of Article 8, GS Chapter 159, to include “Arrangements for Non-Governmental Control of Public Enterprises.”

Prohibits political subdivisions of the State from entering into non-disclosure agreements to restrict access to public records by creating new subsection (c) in GS 132-1. Makes a public record any contract where a political subdivision agrees not to disclose information confidential under state law, unless the existence of the contract is also confidential under state law. Requires that a non-disclosure agreement associated with a closed session meeting under GS Chapter 143, Article 33C, be included in the minutes of each closed session meeting. Effective and applicable to any non-disclosure agreements entered into on or after October 1, 2023. 

Makes conforming changes to the act's long title.