§ 159-96. Limitation on extraterritorial operation of enterprises financed by revenue bonds.
§ 159‑96. Limitation on extraterritorialoperation of enterprises financed by revenue bonds.
(a) Each utility or public service enterprise listed in G.S. 159‑81(3),if financed wholly or partially by revenue bonds issued under this Article,shall be owned or operated by the municipality for its own use and for the useof public and private consumers residing within its corporate limits or, in thecase of a joint agency or undertaking established pursuant to Part 1 of Article20 of Chapter 160A of the General Statutes, for the use of the municipalitiesthat established the joint agency or undertaking and for the use of the publicand private consumers residing within their corporate limits. A utility orpublic service enterprise financed wholly or partially by revenue bonds, whenoperated primarily for the municipality's own use and for users within itscorporate limits or, in the case of two or more municipalities participating ina joint agency or undertaking, when operated primarily for the use of the municipalitiesthat established the joint agency or undertaking, may be operated incidentallyfor users outside the corporate limits of either the issuing unit or aparticipating municipality. Provided, however, that revenue bonds may be issuedfor the purpose of financing in whole or in part mass transit systems,aeronautical facilities, marine facilities and systems, systems or facilitiesfor the generation, production, transmission, or distribution of gas (natural,artificial, or mixed), facilities and equipment for the collection, treatmentor disposal of solid waste, notwithstanding that such systems, facilities orequipment may be operated for users outside the corporate limits of amunicipality that is an issuing unit where the municipality finds that thesystems, facilities, or equipment so financed would benefit the municipalityor, in the case of two or more municipalities participating in a joint agencyor undertaking, where the municipalities that are the issuing units find thatthe systems, facilities, or equipment so financed would benefit themunicipalities that established the joint agency or undertaking.
Revenue bonds may not be issued for the purpose of financing in wholeor in part systems or facilities for the transmission or distribution of gas(natural, artificial, or mixed) to users outside the corporate limits of amunicipality to whom service is available or will be available within areasonable time from a local distribution natural gas utility pursuant to acertificate of public convenience and necessity issued by the North CarolinaUtilities Commission. A finding by the governing body of a municipality that isan issuing unit that the systems or facilities to be provided by the financingwill not provide service to users to whom such service is available or will beavailable within a reasonable time from a local distribution natural gasutility shall be conclusive upon (i) the expiration of a 45 day periodfollowing the making of such finding, (ii) the mailing by the municipality of acopy of such notice within five days after the making of such finding to anylocal distribution company certificated to provide service to the area in whichthe facilities are to be located, and (iii) the absence of a written objectionto such finding being mailed by any such certificated local distributioncompany to the municipality by not later than five days prior to the end ofsuch 45 day period, all such mailings to be properly given or made if sent byUnited States registered mail, return receipt requested, postage prepaid. Timeshall be computed pursuant to G.S. 1A‑1, Rule 6(a).
(b) A revenue bond project financed wholly or partially byrevenue bonds of the State may be located either within or without the Stateand, when operated primarily for the State's own use and for users within theState, may be operated incidentally for users outside the State.
(c) Repealed by Session Laws 2001‑474, s. 39, effectiveNovember 29, 2001.
(d) Notwithstanding the provisions of subsections (a) and (b) ofthis section and G.S. 160A‑312, municipalities may acquire sewagecollection and disposal systems and water supply and distribution systemslocated within and without the corporate limits of such municipalities andfinance such acquisition with revenue bonds. Further, municipalities may own,maintain and operate such acquired systems, enlarge and improve such acquiredsystems and finance the enlargement and improvement of such acquired systemswith revenue bonds. This subsection applies only to acquisitions by municipalitiesfinanced by revenue bonds during the calendar year ending December 31, 1989.
(e) In the case of a Turnpike Project of the North CarolinaTurnpike Authority, the Turnpike Project may be located anywhere in the Statethe Authority is authorized to maintain a Turnpike Project. (1971, c. 780, s. 1; 1973, c. 1325; 1983, c. 554, s. 16; c. 795, s. 5;1989, c. 168, s. 44; c. 263; 1991, c. 511, s. 1; 2001‑414, s. 50; 2001‑474,s. 39; 2002‑133, s. 8.)