North Carolina 2025-2026 Regular Session

North Carolina House Bill H532 Compare Versions

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11 GENERAL ASSEMBLY OF NORTH CAROLINA
22 SESSION 2025
3-H 1
4-HOUSE BILL 532
3+H D
4+HOUSE BILL DRH50021-LMx-61A
5+
56
67
78 Short Title: County Service Districts/Research & URSD. (Public)
89 Sponsors: Representative Reives.
9-For a complete list of sponsors, refer to the North Carolina General Assembly web site.
10-Referred to: State and Local Government, if favorable, Finance, if favorable, Rules, Calendar,
11-and Operations of the House
12-March 27, 2025
13-*H532 -v-1*
10+Referred to:
11+
12+*DRH50021 -LMx-61A*
1413 A BILL TO BE ENTITLED 1
1514 AN ACT MAKING CHANGES TO THE LAWS RELATED TO RESEARCH AND 2
1615 PRODUCTION SERVICE DISTRICTS AND URBAN RESEARCH SERVICE 3
1716 DISTRICTS. 4
1817 The General Assembly of North Carolina enacts: 5
1918 6
2019 PART I. RESEARCH AND PRODUCTION SERVICE DISTRICT 7
2120 SECTION 1.1. G.S. 153A-311 reads as rewritten: 8
2221 "§ 153A-311. Purposes for which districts may be established. 9
2322 The board of commissioners of any county may define a county research and production 10
2423 service district in order to finance, provide, and maintain for the district any service, facility, or 11
2524 function that a county or a city is authorized by general law to provide, finance, or maintain. 12
2625 maintain in its territorial jurisdiction. Such a service, facility, or function shall be financed, 13
2726 provided, or maintained in the district either in addition to or to a greater extent than services, 14
2827 facilities, or functions are financed, provided, or maintained for the entire county." 15
2928 SECTION 1.2. G.S. 153A-313 reads as rewritten: 16
3029 "§ 153A-313. Research and production service district advisory committee. 17
3130 (a) The board or boards of commissioners, in the resolution establishing a research and 18
3231 production service district, shall also provide for an advisory committee for the district. Such a 19
3332 committee shall have at least 10 members, serving terms as set forth in the resolution; one 20
3433 member shall be the representative of the developer of the research and production park 21
3534 established as a research and production service district. The resolution shall provide for the 22
3635 appointment or designation of a chair. The board of commissioners or, in the case of a 23
3736 multi-county district, the boards of commissioners shall appoint the members of the advisory 24
3837 committee. If a multi-county district is established, the concurrent resolutions establishing the 25
3938 district shall provide the number of members of the advisory committee, which shall be at least 26
4039 10, and how many members of the advisory committee are to be appointed by each board of 27
4140 commissioners. commissioners. The concurrent resolutions may allow for the appointments to 28
4241 be divided among the counties proportionate to the respective size of the research and production 29
4342 service district. Before making the appointments, the appropriate board shall request the 30
4443 association of owners and tenants, required by G.S. 153A-312(a), to submit a list of persons to 31
4544 be considered for appointment to the committee; the association shall submit at least two names 32
4645 for each appointment to be made. Except as provided in the next two sentences, the board of 33
47-commissioners shall make the appointments to the committee from the list of persons submitted. 34 General Assembly Of North Carolina Session 2025
48-Page 2 House Bill 532-First Edition
49-In addition, the developer of the research and production park shall appoint one person to the 1
50-advisory committee as the developer's representative on the committee. In addition, in a single 2
51-county district, the board of commissioners may make two additional appointments of such other 3
52-persons as the board of commissioners deems appropriate, and in a multi-county district, each 4
53-board of county commissioners may make one additional appointment of such other person as 5
54-that board of commissioners deems appropriate. Whenever a vacancy occurs on the committee 6
55-in a position filled by appointment by the board of commissioners, the appropriate board, before 7
56-filling the vacancy, shall request the association to submit the names of at least two persons to 8
57-be considered for the vacancy; and the board shall fill the vacancy by appointing one of the 9
58-persons so submitted, except that if the vacancy is in a position appointed by the board of 10
59-commissioners under the preceding sentence of this section, the board of commissioners making 11
60-that appointment shall fill the vacancy with such person as that board of commissioners deems 12
61-appropriate. 13
62-…." 14
63-SECTION 1.3. G.S. 153A-314 reads as rewritten: 15
64-"§ 153A-314. Extension of service districts. 16
65-… 17
66-(a1) Multi-County Districts. – If territory that lies wholly in one county is to be annexed 18
67-to a multi-county district, only the board of commissioners of that county is required to adopt a 19
68-resolution annexing the territory. In annexing territory under this subsection, the board of 20
69-commissioners shall comply with the provisions of this section. 21
70-…." 22
71-SECTION 1.4. G.S. 153A-315 reads as rewritten: 23
72-"§ 153A-315. Required provision or maintenance of services. 24
73-(a) New District. – When a county or counties define a research and production service 25
74-district, it or they shall provide, maintain, or let contracts for the services for which the district is 26
75-being taxed within a reasonable time, not to exceed one year, after the effective date of the 27
76-definition of the district. The county may designate the developer of the research and 28
77-development park established as a research and production service district as an agent that may 29
78-contract, with the approval of the county in which the research and production service district is 30
79-located, for the provision of services, construction, and procurement within the research and 31
80-production service district. The developer-agent may own property necessary to provide the 32
81-services, including, but not limited to, streets, sidewalks, parks, schools, utilities, and public 33
82-transportation systems, and proceeds of taxes levied within the research and production service 34
83-district used to pay for or maintain the property providing the service is presumptively expended 35
84-for a public purpose. 36
85-…." 37
86- 38
87-PART II. URBAN RESEARCH SERVICE DISTRICT 39
88-SECTION 2.1. G.S. 153A-316.1 reads as rewritten: 40
89-"§ 153A-316.1. Urban research service district (URSD). 41
90-… 42
91-(a1) Multi-County Districts. – If an area that meets the standards for creation of a research 43
92-and production service district lies in more than one county, the boards of commissioners of those 44
93-counties may adopt concurrent resolutions establishing a district, even if that portion of the 45
94-district lying in any one of the counties does not by itself meet the standards. Each of the county 46
95-boards of commissioners shall follow the procedure set out in this section for creation of a district. 47
96-…." 48
97-SECTION 2.2. G.S. 153A-316.2 reads as rewritten: 49
98-"§ 153A-316.2. URSD advisory committee. 50 General Assembly Of North Carolina Session 2025
99-House Bill 532-First Edition Page 3
100-(a) Members. – The board of commissioners, in the resolution establishing a URSD, shall 1
101-also provide for an advisory committee for the URSD. The committee shall have at least 10 2
102-members, serving whose appointments and terms as shall be set forth in the resolution. The 3
103-resolution shall provide for the appointment or designation of a chairperson. The board of 4
104-commissioners shall appoint the members of the USRD [URSD] advisory committee. In the case 5
105-of a multi-county URSD, the resolution may allow for the appointments to be divided among the 6
106-counties proportionate to the respective size of the research and production service district. 7
107-Before making the appointments, the board shall request the association of owners and tenants, 8
108-required by G.S. 153A-312(a), to submit a list of persons to be considered for appointment to the 9
109-committee. The association shall submit at least two names for each appointment to be made. 10
110-Except as provided in subsection (b) of this section, the board of commissioners shall make the 11
111-appointments to the committee from the list of persons submitted. 12
112-(b) Additional Members. – In addition to the members provided in subsection (a) of this 13
113-section, the developer of the research and production park established as a research and 14
114-production service district shall appoint one person to the URSD advisory committee as the 15
115-developer's representative on the committee. The board of commissioners may make two 16
116-additional appointments of such other persons as the board of commissioners deems 17
117-appropriate.appropriate; provided, however, in the case of a multi-county URSD, established as 18
118-provided in G.S. 153A-316.1(a1), the board of commissioners of each county may make one 19
119-additional appointment. 20
120-…." 21
121-SECTION 2.3. G.S. 153A-316.3 reads as rewritten: 22
122-"§ 153A-316.3. Extension of URSD. 23
123-… 24
124-(a1) Multi-County Districts. – If territory that lies wholly in one county is to be annexed 25
125-to a multi-county URSD, only the board of commissioners of that county shall be required to 26
126-adopt a resolution annexing the territory. In annexing territory under this subsection, the board 27
127-of commissioners shall comply with the provisions of this section. 28
128-…." 29
129-SECTION 2.4. G.S. 153A-316.5 reads as rewritten: 30
130-"§ 153A-316.5. Required provision or maintenance of services in URSD. 31
131-(a) New URSD. – When a county or counties defines a URSD, it shall provide, maintain, 32
132-or let contracts for the services for which the URSD is being taxed within a reasonable time, not 33
133-to exceed one year, after the effective date of the definition of the URSD. When a county defines 34
134-a URSD, it may designate the developer of the research and development park established as a 35
135-research and production service district in which the URSD is located as an agent that may 36
136-contract with any local government for the provision of services within the URSD.contract, with 37
137-the approval of the county or counties in which the URSD is located, for the provision of services, 38
138-construction, and procurement within the URSD. The developer-agent may own property 39
139-necessary to provide the services, including, but not limited to, streets, sidewalks, parks, schools, 40
140-utilities, and public transportation systems, and proceeds of taxes levied within the research and 41
141-production service district used to pay for or maintain the property providing the service is 42
142-presumptively expended for a public purpose. 43
143-…." 44
144-SECTION 2.5. G.S. 153A-317 reads as rewritten: 45
145-"§ 153A-317. Research and production service district taxes authorized; rate limitation. 46
146-(a) Tax Authorized. – A county, upon recommendation of the advisory committee 47
147-established pursuant to G.S. 153A-313, may levy property taxes within a research and production 48
148-service district in addition to those levied throughout the county, in order to finance, provide, or 49
149-maintain for the district services provided therein in addition to or to a greater extent than those 50
150-financed, provided, or maintained for the entire county. In addition, a county may allocate to a 51 General Assembly Of North Carolina Session 2025
151-Page 4 House Bill 532-First Edition
152-district any other revenues whose use is not otherwise restricted by law. The proceeds of taxes 1
153-only within a district may be expended only for services provided for the district. Only those 2
154-services that counties and cities are authorized by law to provide may be provided. 3
155-Property subject to taxation in a newly established district or in an area annexed to an existing 4
156-district is that subject to taxation by the county as of the preceding January 1. 5
157-(b) Limit. – Such additional property taxes may not be levied within any district 6
158-established pursuant to this Article in excess of a rate of ten cents (10¢) twenty cents (20¢) on 7
159-each one hundred dollars ($100.00) value of property subject to taxation or, in the event that the 8
160-research and production service district satisfies the criteria of G.S. 143B-437.08(h), such 9
161-additional property taxes may not be levied within said district in excess of a rate of twenty cents 10
162-(20¢) on each one hundred dollars ($100.00) value of property subject to taxation.taxation. 11
46+commissioners shall make the appointments to the committee from the list of persons submitted. 34
47+In addition, the developer of the research and production park shall appoint one person to the 35
48+advisory committee as the developer's representative on the committee. In addition, in a single 36
49+H.B. 532
50+Mar 26, 2025
51+HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
52+Page 2 DRH50021-LMx-61A
53+county district, the board of commissioners may make two additional appointments of such other 1
54+persons as the board of commissioners deems appropriate, and in a multi-county district, each 2
55+board of county commissioners may make one additional appointment of such other person as 3
56+that board of commissioners deems appropriate. Whenever a vacancy occurs on the committee 4
57+in a position filled by appointment by the board of commissioners, the appropriate board, before 5
58+filling the vacancy, shall request the association to submit the names of at least two persons to 6
59+be considered for the vacancy; and the board shall fill the vacancy by appointing one of the 7
60+persons so submitted, except that if the vacancy is in a position appointed by the board of 8
61+commissioners under the preceding sentence of this section, the board of commissioners making 9
62+that appointment shall fill the vacancy with such person as that board of commissioners deems 10
63+appropriate. 11
16364 …." 12
164-SECTION 2.6. G.S. 153A-317.1 reads as rewritten: 13
165-"§ 153A-317.1. Urban research service district taxes authorized; rate. 14
166-(a) Tax Authorized. – A county, upon recommendation of the advisory committee 15
167-established pursuant to G.S. 153A-316.2, may levy property taxes within a URSD in addition to 16
168-those levied throughout the county, and in addition to those levied throughout the county research 17
169-and production service district, in order to finance, provide, or maintain for the URSD services 18
170-provided therein in addition to or to a greater extent than those financed, provided, or maintained 19
171-both for the entire county and for the county research and production service district. Only those 20
172-services that counties and cities are authorized by law to provide may be provided. In addition, a 21
173-county may allocate to a URSD any other revenue not otherwise restricted by law. 22
174-… 23
175-(c) Use. – The proceeds of taxes levied within a URSD may be expended only for the 24
176-benefit of the URSD. The taxes levied for the URSD may be used for debt service on any debt 25
177-issued by the county that is used wholly or partly for capital projects located within the URSD, 26
178-but not in greater proportion than expense of projects located within the URSD or for the benefit 27
179-of the URSD bear to the entire expense of capital projects financed by that borrowing of the 28
180-county. A capital project does not have to be located wholly within the URSD to be considered 29
181-a project that benefits the URSD. For the purpose of this subsection, "debt" includes (i) general 30
182-obligation bonds and notes issued under Chapter 159 of the General Statutes, (ii) revenue bonds 31
183-issued under Chapter 159 of the General Statutes, (iii) financing agreements under Article 8 of 32
184-Chapter 159 of the General Statutes, and (iv) special obligation bonds issued by the county." 33
185- 34
186-PART III. MISCELLANEOUS 35
187-SECTION 3.1. G.S. 153A-149 reads as rewritten: 36
188-"§ 153A-149. Property taxes; authorized purposes; rate limitation. 37
189-… 38
190-(c) Each county may levy property taxes for one or more of the purposes listed in this 39
191-subsection up to a combined rate of one dollar and fifty cents ($1.50) on the one hundred dollars 40
192-($100.00) appraised value of property subject to taxation. Authorized purposes subject to the rate 41
193-limitation are: 42
194-… 43
195-(27) Public Transportation. – To provide public transportation by rail, motor 44
196-vehicle, or another means of conveyance other than a ferry, including any 45
197-facility or equipment needed to provide the public transportation. 46
198-transportation, such as a greenway to the extent it supports a means of public 47
199-conveyance. This subdivision does not authorize a county to provide public 48
200-roads in the county in violation of G.S. 136-51. 49
201-…." 50
202- 51 General Assembly Of North Carolina Session 2025
203-House Bill 532-First Edition Page 5
204-PART IV. EFFECTIVE DATE 1
205-SECTION 4.1. This act is effective when it becomes law. 2
65+SECTION 1.3. G.S. 153A-314 reads as rewritten: 13
66+"§ 153A-314. Extension of service districts. 14
67+… 15
68+(a1) Multi-County Districts. – If territory that lies wholly in one county is to be annexed 16
69+to a multi-county district, only the board of commissioners of that county is required to adopt a 17
70+resolution annexing the territory. In annexing territory under this subsection, the board of 18
71+commissioners shall comply with the provisions of this section. 19
72+…." 20
73+SECTION 1.4. G.S. 153A-315 reads as rewritten: 21
74+"§ 153A-315. Required provision or maintenance of services. 22
75+(a) New District. – When a county or counties define a research and production service 23
76+district, it or they shall provide, maintain, or let contracts for the services for which the district is 24
77+being taxed within a reasonable time, not to exceed one year, after the effective date of the 25
78+definition of the district. The county may designate the developer of the research and 26
79+development park established as a research and production service district as an agent that may 27
80+contract, with the approval of the county in which the research and production service district is 28
81+located, for the provision of services, construction, and procurement within the research and 29
82+production service district. The developer-agent may own property necessary to provide the 30
83+services, including, but not limited to, streets, sidewalks, parks, schools, utilities, and public 31
84+transportation systems, and proceeds of taxes levied within the research and production service 32
85+district used to pay for or maintain the property providing the service is presumptively expended 33
86+for a public purpose. 34
87+…." 35
88+ 36
89+PART II. URBAN RESEARCH SERVICE DISTRICT 37
90+SECTION 2.1. G.S. 153A-316.1 reads as rewritten: 38
91+"§ 153A-316.1. Urban research service district (URSD). 39
92+… 40
93+(a1) Multi-County Districts. – If an area that meets the standards for creation of a research 41
94+and production service district lies in more than one county, the boards of commissioners of those 42
95+counties may adopt concurrent resolutions establishing a district, even if that portion of the 43
96+district lying in any one of the counties does not by itself meet the standards. Each of the county 44
97+boards of commissioners shall follow the procedure set out in this section for creation of a district. 45
98+…." 46
99+SECTION 2.2. G.S. 153A-316.2 reads as rewritten: 47
100+"§ 153A-316.2. URSD advisory committee. 48
101+(a) Members. – The board of commissioners, in the resolution establishing a URSD, shall 49
102+also provide for an advisory committee for the URSD. The committee shall have at least 10 50
103+members, serving whose appointments and terms as shall be set forth in the resolution. The 51 General Assembly Of North Carolina Session 2025
104+DRH50021-LMx-61A Page 3
105+resolution shall provide for the appointment or designation of a chairperson. The board of 1
106+commissioners shall appoint the members of the USRD [URSD] advisory committee. In the case 2
107+of a multi-county URSD, the resolution may allow for the appointments to be divided among the 3
108+counties proportionate to the respective size of the research and production service district. 4
109+Before making the appointments, the board shall request the association of owners and tenants, 5
110+required by G.S. 153A-312(a), to submit a list of persons to be considered for appointment to the 6
111+committee. The association shall submit at least two names for each appointment to be made. 7
112+Except as provided in subsection (b) of this section, the board of commissioners shall make the 8
113+appointments to the committee from the list of persons submitted. 9
114+(b) Additional Members. – In addition to the members provided in subsection (a) of this 10
115+section, the developer of the research and production park established as a research and 11
116+production service district shall appoint one person to the URSD advisory committee as the 12
117+developer's representative on the committee. The board of commissioners may make two 13
118+additional appointments of such other persons as the board of commissioners deems 14
119+appropriate.appropriate; provided, however, in the case of a multi-county URSD, established as 15
120+provided in G.S. 153A-316.1(a1), the board of commissioners of each county may make one 16
121+additional appointment. 17
122+…." 18
123+SECTION 2.3. G.S. 153A-316.3 reads as rewritten: 19
124+"§ 153A-316.3. Extension of URSD. 20
125+… 21
126+(a1) Multi-County Districts. – If territory that lies wholly in one county is to be annexed 22
127+to a multi-county URSD, only the board of commissioners of that county shall be required to 23
128+adopt a resolution annexing the territory. In annexing territory under this subsection, the board 24
129+of commissioners shall comply with the provisions of this section. 25
130+…." 26
131+SECTION 2.4. G.S. 153A-316.5 reads as rewritten: 27
132+"§ 153A-316.5. Required provision or maintenance of services in URSD. 28
133+(a) New URSD. – When a county or counties defines a URSD, it shall provide, maintain, 29
134+or let contracts for the services for which the URSD is being taxed within a reasonable time, not 30
135+to exceed one year, after the effective date of the definition of the URSD. When a county defines 31
136+a URSD, it may designate the developer of the research and development park established as a 32
137+research and production service district in which the URSD is located as an agent that may 33
138+contract with any local government for the provision of services within the URSD.contract, with 34
139+the approval of the county or counties in which the URSD is located, for the provision of services, 35
140+construction, and procurement within the URSD. The developer-agent may own property 36
141+necessary to provide the services, including, but not limited to, streets, sidewalks, parks, schools, 37
142+utilities, and public transportation systems, and proceeds of taxes levied within the research and 38
143+production service district used to pay for or maintain the property providing the service is 39
144+presumptively expended for a public purpose. 40
145+…." 41
146+SECTION 2.5. G.S. 153A-317 reads as rewritten: 42
147+"§ 153A-317. Research and production service district taxes authorized; rate limitation. 43
148+(a) Tax Authorized. – A county, upon recommendation of the advisory committee 44
149+established pursuant to G.S. 153A-313, may levy property taxes within a research and production 45
150+service district in addition to those levied throughout the county, in order to finance, provide, or 46
151+maintain for the district services provided therein in addition to or to a greater extent than those 47
152+financed, provided, or maintained for the entire county. In addition, a county may allocate to a 48
153+district any other revenues whose use is not otherwise restricted by law. The proceeds of taxes 49
154+only within a district may be expended only for services provided for the district. Only those 50
155+services that counties and cities are authorized by law to provide may be provided. 51 General Assembly Of North Carolina Session 2025
156+Page 4 DRH50021-LMx-61A
157+Property subject to taxation in a newly established district or in an area annexed to an existing 1
158+district is that subject to taxation by the county as of the preceding January 1. 2
159+(b) Limit. – Such additional property taxes may not be levied within any district 3
160+established pursuant to this Article in excess of a rate of ten cents (10¢) twenty cents (20¢) on 4
161+each one hundred dollars ($100.00) value of property subject to taxation or, in the event that the 5
162+research and production service district satisfies the criteria of G.S. 143B-437.08(h), such 6
163+additional property taxes may not be levied within said district in excess of a rate of twenty cents 7
164+(20¢) on each one hundred dollars ($100.00) value of property subject to taxation.taxation. 8
165+…." 9
166+SECTION 2.6. G.S. 153A-317.1 reads as rewritten: 10
167+"§ 153A-317.1. Urban research service district taxes authorized; rate. 11
168+(a) Tax Authorized. – A county, upon recommendation of the advisory committee 12
169+established pursuant to G.S. 153A-316.2, may levy property taxes within a URSD in addition to 13
170+those levied throughout the county, and in addition to those levied throughout the county research 14
171+and production service district, in order to finance, provide, or maintain for the URSD services 15
172+provided therein in addition to or to a greater extent than those financed, provided, or maintained 16
173+both for the entire county and for the county research and production service district. Only those 17
174+services that counties and cities are authorized by law to provide may be provided. In addition, a 18
175+county may allocate to a URSD any other revenue not otherwise restricted by law. 19
176+… 20
177+(c) Use. – The proceeds of taxes levied within a URSD may be expended only for the 21
178+benefit of the URSD. The taxes levied for the URSD may be used for debt service on any debt 22
179+issued by the county that is used wholly or partly for capital projects located within the URSD, 23
180+but not in greater proportion than expense of projects located within the URSD or for the benefit 24
181+of the URSD bear to the entire expense of capital projects financed by that borrowing of the 25
182+county. A capital project does not have to be located wholly within the URSD to be considered 26
183+a project that benefits the URSD. For the purpose of this subsection, "debt" includes (i) general 27
184+obligation bonds and notes issued under Chapter 159 of the General Statutes, (ii) revenue bonds 28
185+issued under Chapter 159 of the General Statutes, (iii) financing agreements under Article 8 of 29
186+Chapter 159 of the General Statutes, and (iv) special obligation bonds issued by the county." 30
187+ 31
188+PART III. MISCELLANEOUS 32
189+SECTION 3.1. G.S. 153A-149 reads as rewritten: 33
190+"§ 153A-149. Property taxes; authorized purposes; rate limitation. 34
191+… 35
192+(c) Each county may levy property taxes for one or more of the purposes listed in this 36
193+subsection up to a combined rate of one dollar and fifty cents ($1.50) on the one hundred dollars 37
194+($100.00) appraised value of property subject to taxation. Authorized purposes subject to the rate 38
195+limitation are: 39
196+… 40
197+(27) Public Transportation. – To provide public transportation by rail, motor 41
198+vehicle, or another means of conveyance other than a ferry, including any 42
199+facility or equipment needed to provide the public transportation. 43
200+transportation, such as a greenway to the extent it supports a means of public 44
201+conveyance. This subdivision does not authorize a county to provide public 45
202+roads in the county in violation of G.S. 136-51. 46
203+…." 47
204+ 48
205+PART IV. EFFECTIVE DATE 49
206+SECTION 4.1. This act is effective when it becomes law. 50