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North Carolina Senate Bill S69

North Carolina 2025-2026 Regular Session

North Carolina Senate Bill S69 Compare Versions

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11 GENERAL ASSEMBLY OF NORTH CAROLINA
22 SESSION 2025
3-S 3
3+S 2
44 SENATE BILL 69
55 Corrected Copy 2/19/25
6-State and Local Government Committee Substitute Adopted 5/6/25
76
8-Short Title: Henderson County Local Omnibus. (Local)
9-Sponsors:
10-Referred to:
7+Short Title: Hendersonville Public Enterprises Operation. (Local)
8+Sponsors: Senator Moffitt (Primary Sponsor).
9+Referred to: Rules and Operations of the Senate
1110 February 11, 2025
12-*S69-v-3*
11+*S69-v-2*
1312 A BILL TO BE ENTITLED 1
1413 AN ACT REGARDING THE OPERATION OF PUBLIC ENTERPRISES BY THE CITY OF 2
15-HENDERSONVILLE; TO AUTHORIZE THE TOWN OF MILLS RIVER TO ADOPT A 3
16-UNIFIED DEVELOPMENT ORDINANCE UNDER CERT AIN CIRCUMSTANCES; TO 4
17-ALLOW HENDERSON COUN TY TO AMEND ITS ZONING REGULATIONS U NDER 5
18-CERTAIN CIRCUMSTANCE S; TO ELIMINATE THE EXTRATERRITORIAL 6
19-JURISDICTION AUTHORITY OF MUNICIPALITIES IN HENDERSON COUNTY ; 7
20-AND TO REQUIRE HENDE RSON COUNTY TO APPRO VE ANY REZONING OF 8
21-AREAS WITHIN THE COU NTY THAT ARE VOLUNTA RILY ANNEXED BY A 9
22-MUNICIPALITY. 10
23-The General Assembly of North Carolina enacts: 11
24- 12
25-PART I. HENDERSONVILLE PUBLIC ENTERPRISE CHANGES 13
26-SECTION 1.1. G.S. 160A-312 reads as rewritten: 14
27-"§ 160A-312. Authority to operate public enterprises. 15
28-(a) A city shall have authority to acquire, construct, establish, enlarge, improve, maintain, 16
29-own, operate, and contract for the operation of any or all of the public enterprises as defined in 17
30-this Article to furnish services to the city and its citizens. citizens and other areas and their citizens 18
31-located outside the corporate limits of the city. Subject to Part 2 of this Article, a city may acquire, 19
32-construct, establish, enlarge, improve, maintain, own, and operate any public enterprise outside 20
33-its corporate limits, within reasonable limitations, but in no case shall a city be held liable for 21
34-damages to those outside the corporate limits for failure to furnish any public enterprise 22
35-service.limitations. 23
36-(b) A city shall have full authority to protect and regulate any public enterprise system 24
37-belonging to or operated by it by adequate and reasonable rules. The rules shall be adopted by 25
38-ordinance, and shall comply with all of the following: 26
39-(1) The rules shall apply equally to the public enterprise system both within and 27
40-outside the corporate limits of the city, and city. 28
41-(2) The rules may not apply differing treatment within and outside the corporate 29
42-limits of the city. 30
43-(3) The rules shall make access to public enterprise services available to the city 31
44-and its citizens and other areas and their citizens located outside the corporate 32
45-limits of the city equally. 33
46-(4) The rules may prioritize the continuation of the provision of services based on 34
47-availability of excess capacity to provide the service. 35 General Assembly Of North Carolina Session 2025
48-Page 2 Senate Bill 69-Third Edition
49-(5) The rules may be enforced with the remedies available under any provision of 1
50-law. 2
51-… 3
52-(d) A city shall account for a public enterprise in a separate fund and may not transfer 4
53-any money from that fund to another except for a capital project fund established for the 5
54-construction or replacement of assets for that public enterprise. Obligations of the public 6
55-enterprise may be paid out of the separate fund. Obligations shall not include any other fund or 7
56-line item in the city's budget." 8
57-SECTION 1.2. G.S. 160A-31 reads as rewritten: 9
58-"§ 160A-31. Annexation by petition. 10
59-(a) The governing board of any municipality may annex by ordinance any area 11
60-contiguous to its boundaries upon presentation to the governing board of a petition signed by the 12
61-owners of all the real property located within such area. The petition shall be signed by each 13
62-owner of real property in the area and shall contain the address of each such owner.owner and a 14
63-statement that the owner's petition for annexation is not based upon any representation by the 15
64-municipality that a public enterprise service available outside the corporate limits of that 16
65-municipality would be withheld from the owner's property without the petition for annexation. 17
66-…." 18
67-SECTION 1.3. G.S. 160A-58.1 reads as rewritten: 19
68-"§ 160A-58.1. Petition for annexation; standards. 20
69-… 21
70-(c) The petition shall contain the names, addresses, and signatures of all owners of real 22
71-property within the proposed satellite corporate limits (except owners not required to sign by 23
72-subsection (a)), shall describe the area proposed for annexation by metes and bounds, and shall 24
73-have attached thereto a map showing the area proposed for annexation with relation to the 25
74-primary corporate limits of the annexing city. The petition shall also contain a statement from 26
75-the owner that the owner's petition for annexation is not based upon any representation by the 27
76-municipality that a public enterprise service available outside the corporate limits of that 28
77-municipality would be withheld from the owner's property without the petition for annexation. 29
78-When there is any substantial question as to whether the area may be closer to another city than 30
79-to the annexing city, the map shall also show the area proposed for annexation with relation to 31
80-the primary corporate limits of the other city. The city council may prescribe the form of the 32
81-petition. 33
82-…." 34
83-SECTION 1.4. This Part applies only to the City of Hendersonville. Section 1.1 of 35
84-this Part shall not apply to the operation of public transportation systems or off-street parking 36
85-facilities and systems as public enterprises. 37
86-SECTION 1.5. This Part becomes effective June 30, 2025. Section 1.1 of this Part 38
87-applies to the 2025-2026 fiscal year and to each fiscal year thereafter. Any assets, liabilities, or 39
88-equity of a public enterprise operated or held by the City of Hendersonville in the 2025-2026 40
89-fiscal year shall be transferred to a separate fund in accordance with G.S. 160A-312, as amended 41
90-by Section 1.1 of this Part, when this Part becomes law. Sections 1.2 and 1.3 of this Part apply 42
91-to petitions for annexation received by the City of Hendersonville on or after June 30, 2025. 43
92- 44
93-PART II. MILLS RIVER UNIFIED DEVELOPMENT ORDINANCE 45
94-SECTION 2.1.(a) Notwithstanding G.S. 160D-601, as amended by Section 3K.1(a) 46
95-of S.L. 2024-57, the Town of Mills River may adopt the unified development ordinance as 47
96-presented to the Town Council in October 2024. 48
97-SECTION 2.1.(b) This Part is effective when it becomes law, and any adoption of 49
98-the unified development ordinance shall occur on or before October 1, 2025. 50
99- 51 General Assembly Of North Carolina Session 2025
100-Senate Bill 69-Third Edition Page 3
101-PART III. HENDERSON COUNTY UDO DEFINITIO NS 1
102-SECTION 3.1.(a) Notwithstanding G.S. 160D-601, as amended by Section 3K.1(a) 2
103-of S.L. 2024-57, Henderson County may amend definitions in its unified development ordinance, 3
104-not inconsistent with Chapter 160D of the General Statutes, to eliminate or modify uses allowed 4
105-by right in all zoning districts. 5
106-SECTION 3.1.(b) This Part is effective when it becomes law, and any amendment 6
107-of the unified development ordinance shall occur on or before October 1, 2025. 7
108- 8
109-PART IV. ELIMINATE ETJ IN HENDERSON COUN TY 9
110-SECTION 4.1.(a) Notwithstanding the provisions of G.S. 160D-202, no 10
111-municipality in Henderson County shall exercise any of the powers granted to cities under 11
112-Chapter 160D of the General Statutes or its predecessor, Article 19 of Chapter 160A of the 12
113-General Statutes, beyond its contiguous corporate limits. 13
114-SECTION 4.1.(b) The relinquishment of jurisdiction over an area that a municipality 14
115-in Henderson County is regulating under the authority of Chapter 160D of the General Statutes 15
116-or its predecessor, Article 19 of Chapter 160A of the General Statutes, shall become effective 16
117-July 1, 2025. 17
118-SECTION 4.1.(c) Upon relinquishment of jurisdiction over an area that a 18
119-municipality in Henderson County is regulating under the authority of Chapter 160D of the 19
120-General Statutes or its predecessor, Article 19 of Chapter 160A of the General Statutes, the 20
121-following shall apply: 21
122-(1) The municipality's regulations and powers of enforcement shall remain in 22
123-effect until (i) Henderson County has adopted the regulation or (ii) a period of 23
124-60 days has elapsed following July 1, 2025, the date the relinquishment 24
125-becomes effective, whichever is sooner. Prior to the transfer of jurisdiction, 25
126-Henderson County may hold hearings and take other measures consistent with 26
127-G.S. 160D-204 that may be required in order to adopt and apply its 27
128-development regulations for the area at the same time it assumes jurisdiction. 28
129-(2) Any person who has acquired vested rights in a municipality in Henderson 29
130-County may exercise those rights as if no change of jurisdiction had occurred. 30
131-Henderson County, in acquiring jurisdiction over the area, may take any action 31
132-regarding the development approval, certificate, or other evidence of 32
133-compliance that could have been taken by the municipality pursuant to its 33
134-development regulations. Except as provided in this subdivision, any building, 34
135-structure, or other land use in an area over which Henderson County has 35
136-acquired jurisdiction is subject to the development regulations of Henderson 36
137-County. 37
138- 38
139-PART V. HENDERSON CO UNTY REZONING APPROV AL 39
140-SECTION 5.1.(a) If a municipality in Henderson County annexes property under 40
141-Part 1 or Part 4 of Article 4A of Chapter 160A of the General Statutes, no rezoning under Chapter 41
142-160D of the General Statutes of any area that includes the annexed property, or any part thereof, 42
143-may occur without the approval of both the governing body of the municipality and the 43
144-Henderson County Board of Commissioners. 44
145-SECTION 5.1.(b) This Part applies only to Henderson County and any municipality 45
146-located wholly or partly in Henderson County seeking to annex an area located wholly within 46
147-Henderson County. 47
148-SECTION 5.1.(c) This Part becomes effective July 1, 2025, and applies to 48
149-annexations initiated on or after that date. 49
150- 50
151-PART VI. EFFECTIVE DATE 51 General Assembly Of North Carolina Session 2025
152-Page 4 Senate Bill 69-Third Edition
153-SECTION 6. Except as otherwise provided, this act is effective when it becomes 1
154-law. 2
14+HENDERSONVILLE. 3
15+The General Assembly of North Carolina enacts: 4
16+SECTION 1. G.S. 160A-312 reads as rewritten: 5
17+"§ 160A-312. Authority to operate public enterprises. 6
18+(a) A city shall have authority to acquire, construct, establish, enlarge, improve, maintain, 7
19+own, operate, and contract for the operation of any or all of the public enterprises as defined in 8
20+this Article to furnish services to the city and its citizens. citizens and other areas and their citizens 9
21+located outside the corporate limits of the city. Subject to Part 2 of this Article, a city may acquire, 10
22+construct, establish, enlarge, improve, maintain, own, and operate any public enterprise outside 11
23+its corporate limits, within reasonable limitations, but in no case shall a city be held liable for 12
24+damages to those outside the corporate limits for failure to furnish any public enterprise 13
25+service.limitations. 14
26+(b) A city shall have full authority to protect and regulate any public enterprise system 15
27+belonging to or operated by it by adequate and reasonable rules. The rules shall be adopted by 16
28+ordinance, and shall comply with all of the following: 17
29+(1) The rules shall apply equally to the public enterprise system both within and 18
30+outside the corporate limits of the city, and city. 19
31+(2) The rules may not apply differing treatment within and outside the corporate 20
32+limits of the city. 21
33+(3) The rules shall make access to public enterprise services available to the city 22
34+and its citizens and other areas and their citizens located outside the corporate 23
35+limits of the city equally. 24
36+(4) The rules may prioritize the continuation of the provision of services based on 25
37+availability of excess capacity to provide the service. 26
38+(5) The rules may be enforced with the remedies available under any provision of 27
39+law. 28
40+… 29
41+(d) A city shall account for a public enterprise in a separate fund and may not transfer 30
42+any money from that fund to another except for a capital project fund established for the 31
43+construction or replacement of assets for that public enterprise. Obligations of the public 32
44+enterprise may be paid out of the separate fund. Obligations shall not include any other fund or 33
45+line item in the city's budget." 34
46+SECTION 2. G.S. 160A-31 reads as rewritten: 35
47+"§ 160A-31. Annexation by petition. 36 General Assembly Of North Carolina Session 2025
48+Page 2 Senate Bill 69-Second Edition
49+(a) The governing board of any municipality may annex by ordinance any area 1
50+contiguous to its boundaries upon presentation to the governing board of a petition signed by the 2
51+owners of all the real property located within such area. The petition shall be signed by each 3
52+owner of real property in the area and shall contain the address of each such owner.owner and a 4
53+statement that the owner's petition for annexation is not based upon any representation by the 5
54+municipality that a public enterprise service available outside the corporate limits of that 6
55+municipality would be withheld from the owner's property without the petition for annexation. 7
56+…." 8
57+SECTION 3. G.S. 160A-58.1 reads as rewritten: 9
58+"§ 160A-58.1. Petition for annexation; standards. 10
59+… 11
60+(c) The petition shall contain the names, addresses, and signatures of all owners of real 12
61+property within the proposed satellite corporate limits (except owners not required to sign by 13
62+subsection (a)), shall describe the area proposed for annexation by metes and bounds, and shall 14
63+have attached thereto a map showing the area proposed for annexation with relation to the 15
64+primary corporate limits of the annexing city. The petition shall also contain a statement from 16
65+the owner that the owner's petition for annexation is not based upon any representation by the 17
66+municipality that a public enterprise service available outside the corporate limits of that 18
67+municipality would be withheld from the owner's property without the petition for annexation. 19
68+When there is any substantial question as to whether the area may be closer to another city than 20
69+to the annexing city, the map shall also show the area proposed for annexation with relation to 21
70+the primary corporate limits of the other city. The city council may prescribe the form of the 22
71+petition. 23
72+…." 24
73+SECTION 4. This act applies only to the City of Hendersonville. Section 1 of this 25
74+act shall not apply to the operation of public transportation systems or off-street parking facilities 26
75+and systems as public enterprises. 27
76+SECTION 5. This act becomes effective June 30, 2025. Section 1 of this act applies 28
77+to the 2025-2026 fiscal year and to each fiscal year thereafter. Any assets, liabilities, or equity of 29
78+a public enterprise operated or held by the City of Hendersonville in the 2025-2026 fiscal year 30
79+shall be transferred to a separate fund in accordance with G.S. 160A-312, as amended by Section 31
80+1 of this act, when this act becomes law. Sections 2 and 3 of this act apply to petitions for 32
81+annexation received by the City of Hendersonville on or after June 30, 2025. 33