GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 3
SENATE BILL 69
Corrected Copy 2/19/25
State and Local Government Committee Substitute Adopted 5/6/25
Short Title: Henderson County Local Omnibus. (Local)
Sponsors:
Referred to:
February 11, 2025
*S69-v-3*
A BILL TO BE ENTITLED 1
AN ACT REGARDING THE OPERATION OF PUBLIC ENTERPRISES BY THE CITY OF 2
HENDERSONVILLE; TO AUTHORIZE THE TOWN OF MILLS RIVER TO ADOPT A 3
UNIFIED DEVELOPMENT ORDINANCE UNDER CERT AIN CIRCUMSTANCES; TO 4
ALLOW HENDERSON COUN TY TO AMEND ITS ZONING REGULATIONS U NDER 5
CERTAIN CIRCUMSTANCE S; TO ELIMINATE THE EXTRATERRITORIAL 6
JURISDICTION AUTHORITY OF MUNICIPALITIES IN HENDERSON COUNTY ; 7
AND TO REQUIRE HENDE RSON COUNTY TO APPRO VE ANY REZONING OF 8
AREAS WITHIN THE COU NTY THAT ARE VOLUNTA RILY ANNEXED BY A 9
MUNICIPALITY. 10
The General Assembly of North Carolina enacts: 11
12
PART I. HENDERSONVILLE PUBLIC ENTERPRISE CHANGES 13
SECTION 1.1. G.S. 160A-312 reads as rewritten: 14
"§ 160A-312. Authority to operate public enterprises. 15
(a) A city shall have authority to acquire, construct, establish, enlarge, improve, maintain, 16
own, operate, and contract for the operation of any or all of the public enterprises as defined in 17
this Article to furnish services to the city and its citizens. citizens and other areas and their citizens 18
located outside the corporate limits of the city. Subject to Part 2 of this Article, a city may acquire, 19
construct, establish, enlarge, improve, maintain, own, and operate any public enterprise outside 20
its corporate limits, within reasonable limitations, but in no case shall a city be held liable for 21
damages to those outside the corporate limits for failure to furnish any public enterprise 22
service.limitations. 23
(b) A city shall have full authority to protect and regulate any public enterprise system 24
belonging to or operated by it by adequate and reasonable rules. The rules shall be adopted by 25
ordinance, and shall comply with all of the following: 26
(1) The rules shall apply equally to the public enterprise system both within and 27
outside the corporate limits of the city, and city. 28
(2) The rules may not apply differing treatment within and outside the corporate 29
limits of the city. 30
(3) The rules shall make access to public enterprise services available to the city 31
and its citizens and other areas and their citizens located outside the corporate 32
limits of the city equally. 33
(4) The rules may prioritize the continuation of the provision of services based on 34
availability of excess capacity to provide the service. 35 General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 69-Third Edition
(5) The rules may be enforced with the remedies available under any provision of 1
law. 2
… 3
(d) A city shall account for a public enterprise in a separate fund and may not transfer 4
any money from that fund to another except for a capital project fund established for the 5
construction or replacement of assets for that public enterprise. Obligations of the public 6
enterprise may be paid out of the separate fund. Obligations shall not include any other fund or 7
line item in the city's budget." 8
SECTION 1.2. G.S. 160A-31 reads as rewritten: 9
"§ 160A-31. Annexation by petition. 10
(a) The governing board of any municipality may annex by ordinance any area 11
contiguous to its boundaries upon presentation to the governing board of a petition signed by the 12
owners of all the real property located within such area. The petition shall be signed by each 13
owner of real property in the area and shall contain the address of each such owner.owner and a 14
statement that the owner's petition for annexation is not based upon any representation by the 15
municipality that a public enterprise service available outside the corporate limits of that 16
municipality would be withheld from the owner's property without the petition for annexation. 17
…." 18
SECTION 1.3. G.S. 160A-58.1 reads as rewritten: 19
"§ 160A-58.1. Petition for annexation; standards. 20
… 21
(c) The petition shall contain the names, addresses, and signatures of all owners of real 22
property within the proposed satellite corporate limits (except owners not required to sign by 23
subsection (a)), shall describe the area proposed for annexation by metes and bounds, and shall 24
have attached thereto a map showing the area proposed for annexation with relation to the 25
primary corporate limits of the annexing city. The petition shall also contain a statement from 26
the owner that the owner's petition for annexation is not based upon any representation by the 27
municipality that a public enterprise service available outside the corporate limits of that 28
municipality would be withheld from the owner's property without the petition for annexation. 29
When there is any substantial question as to whether the area may be closer to another city than 30
to the annexing city, the map shall also show the area proposed for annexation with relation to 31
the primary corporate limits of the other city. The city council may prescribe the form of the 32
petition. 33
…." 34
SECTION 1.4. This Part applies only to the City of Hendersonville. Section 1.1 of 35
this Part shall not apply to the operation of public transportation systems or off-street parking 36
facilities and systems as public enterprises. 37
SECTION 1.5. This Part becomes effective June 30, 2025. Section 1.1 of this Part 38
applies to the 2025-2026 fiscal year and to each fiscal year thereafter. Any assets, liabilities, or 39
equity of a public enterprise operated or held by the City of Hendersonville in the 2025-2026 40
fiscal year shall be transferred to a separate fund in accordance with G.S. 160A-312, as amended 41
by Section 1.1 of this Part, when this Part becomes law. Sections 1.2 and 1.3 of this Part apply 42
to petitions for annexation received by the City of Hendersonville on or after June 30, 2025. 43
44
PART II. MILLS RIVER UNIFIED DEVELOPMENT ORDINANCE 45
SECTION 2.1.(a) Notwithstanding G.S. 160D-601, as amended by Section 3K.1(a) 46
of S.L. 2024-57, the Town of Mills River may adopt the unified development ordinance as 47
presented to the Town Council in October 2024. 48
SECTION 2.1.(b) This Part is effective when it becomes law, and any adoption of 49
the unified development ordinance shall occur on or before October 1, 2025. 50
51 General Assembly Of North Carolina Session 2025
Senate Bill 69-Third Edition Page 3
PART III. HENDERSON COUNTY UDO DEFINITIO NS 1
SECTION 3.1.(a) Notwithstanding G.S. 160D-601, as amended by Section 3K.1(a) 2
of S.L. 2024-57, Henderson County may amend definitions in its unified development ordinance, 3
not inconsistent with Chapter 160D of the General Statutes, to eliminate or modify uses allowed 4
by right in all zoning districts. 5
SECTION 3.1.(b) This Part is effective when it becomes law, and any amendment 6
of the unified development ordinance shall occur on or before October 1, 2025. 7
8
PART IV. ELIMINATE ETJ IN HENDERSON COUN TY 9
SECTION 4.1.(a) Notwithstanding the provisions of G.S. 160D-202, no 10
municipality in Henderson County shall exercise any of the powers granted to cities under 11
Chapter 160D of the General Statutes or its predecessor, Article 19 of Chapter 160A of the 12
General Statutes, beyond its contiguous corporate limits. 13
SECTION 4.1.(b) The relinquishment of jurisdiction over an area that a municipality 14
in Henderson County is regulating under the authority of Chapter 160D of the General Statutes 15
or its predecessor, Article 19 of Chapter 160A of the General Statutes, shall become effective 16
July 1, 2025. 17
SECTION 4.1.(c) Upon relinquishment of jurisdiction over an area that a 18
municipality in Henderson County is regulating under the authority of Chapter 160D of the 19
General Statutes or its predecessor, Article 19 of Chapter 160A of the General Statutes, the 20
following shall apply: 21
(1) The municipality's regulations and powers of enforcement shall remain in 22
effect until (i) Henderson County has adopted the regulation or (ii) a period of 23
60 days has elapsed following July 1, 2025, the date the relinquishment 24
becomes effective, whichever is sooner. Prior to the transfer of jurisdiction, 25
Henderson County may hold hearings and take other measures consistent with 26
G.S. 160D-204 that may be required in order to adopt and apply its 27
development regulations for the area at the same time it assumes jurisdiction. 28
(2) Any person who has acquired vested rights in a municipality in Henderson 29
County may exercise those rights as if no change of jurisdiction had occurred. 30
Henderson County, in acquiring jurisdiction over the area, may take any action 31
regarding the development approval, certificate, or other evidence of 32
compliance that could have been taken by the municipality pursuant to its 33
development regulations. Except as provided in this subdivision, any building, 34
structure, or other land use in an area over which Henderson County has 35
acquired jurisdiction is subject to the development regulations of Henderson 36
County. 37
38
PART V. HENDERSON CO UNTY REZONING APPROV AL 39
SECTION 5.1.(a) If a municipality in Henderson County annexes property under 40
Part 1 or Part 4 of Article 4A of Chapter 160A of the General Statutes, no rezoning under Chapter 41
160D of the General Statutes of any area that includes the annexed property, or any part thereof, 42
may occur without the approval of both the governing body of the municipality and the 43
Henderson County Board of Commissioners. 44
SECTION 5.1.(b) This Part applies only to Henderson County and any municipality 45
located wholly or partly in Henderson County seeking to annex an area located wholly within 46
Henderson County. 47
SECTION 5.1.(c) This Part becomes effective July 1, 2025, and applies to 48
annexations initiated on or after that date. 49
50
PART VI. EFFECTIVE DATE 51 General Assembly Of North Carolina Session 2025
Page 4 Senate Bill 69-Third Edition
SECTION 6. Except as otherwise provided, this act is effective when it becomes 1
law. 2