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H 0624 - Uniform System Development Fees for Water

Tracking Level: Critical
Sponsor: Charles McGrady (R)
Last Action: 4/10/2017 - Ref to the Com on Energy and Public Utilities, if favorable, Finance
House Committee: EPU
Assigned To:
LiabilityNext Bill
NCLM GoalNext Bill
Planning & Land UseNext Bill
Taxation & FinanceNext Bill
UtilitiesNext Bill

Staff Analysis of the Legislation

In response to the 2016 N.C. Supreme Court decision in Quality-Built Homes v. Carthage, authorizes all publicly-owned water and sewer systems to charge a “system development fee.” This fee, charged to developers of new developments, includes costs associated with infrastructure existing at the time the development takes place, as well as costs related to future system infrastructure needs resulting from the development. Details a formula under which a system may calculate this fee, and restricts the use of fee proceeds to repairs, maintenance, expansion, or other construction needs of the system. Repeals all local acts granting authority to charge similar fees, in favor of a single statewide system, and conforms the authority of non-city or non-county water/sewer entities to this process. Establishes a three-year period under which claimants may seek repayment of fees improperly imposed prior to the effective date of the bill, addressing another issue from the Carthage case. Allows the prevailing party in any lawsuit related to whether these fees were properly charged to collect six percent interest (annually) plus costs. Creates a process by which a person may request a refund or release of a fee, and the basis upon which a governing board may grant that request. (version 1)

Short Note: Companion bill SB 641

Bill Summary from the State Site - Click for the State Summary Page / Click for Current Full Text