GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2001
H	3
HOUSE BILL 522
 Committee Substitute Favorable 4/23/01
 Committee Substitute #2 Favorable 8/8/01 

Short Title:	Cumberland Transportation Authority.	()	
Sponsors:	     	
Referred to:	     	
March 8, 2001

A BILL TO BE ENTITLED
AN ACT TO AUTHORIZE A REGIONAL TRANSPORTATION AUTHORITY FOR CUMBERLAND COUNTY, THE CITY OF FAYETTEVILLE, THE TOWN OF HOPE MILLS, THE TOWN OF STEDMAN, AND THE TOWN OF SPRING LAKE, TO AUTHORIZE THE CREATION OF COUNTY ECONOMIC DEVELOPMENT AUTHORITIES, AND TO INCREASE THE ANNUAL PER DIEM FOR WATER AND SEWER AUTHORITY MEMBERS.

The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 160A‑602 reads as rewritten:
"§ 160A‑602.  Definition of territorial jurisdiction of Authority.
(a)	An authority may be created for any area of the State that, at the time of creation of the authority, meets the following criteria:
(1)	The area consists of three counties:
(2)	At least one of those counties contains at least part of a County Research and Production Service District established pursuant to Part 2 of Article 16 of Chapter 153A of the General Statutes; and
(3)	The other two counties each:
a.	Contain at least one unit of local government that is designated by the Governor of the State of North Carolina as a recipient pursuant to Section 9 of the Urban Mass Transportation Act of 1964, as amended; and
b.	Are adjacent to at least one county that contains at least part of a County Research and Production Service District established pursuant to Part 2 of Article 16 of Chapter 153A of the General Statutes.
(b)	An authority may be created for any county that, at the time of creation of the authority, meets the following criteria:
(1)	Has a population of at least 275,000 according to the most recent decennial federal census;
(2)	Has at least eight incorporated municipalities;
(3)	Has one or more federal military enclaves; and
(4)	Is a Mass Transportation Act recipient."
SECTION 2.  G.S. 160A‑632 reads as rewritten:
"§ 160A‑632.  Definition of territorial jurisdiction of Authority.
(a)	An authority may be created for the area of any Metropolitan Planning Organization of the State that, at the time of creation of the authority, meets the following criteria, such area being the initial territorial jurisdiction of the Authority:
(1)	The area consists of all or part of five counties, all five counties of which form a contiguous territory;
(2)	At least two of those counties are contiguous to each other and each have a population of 250,000 or over; and
(3)	The other three counties each have a population of 100,000 or over.
(b)	An authority may be created for any county that, at the time of creation of the authority, meets the following criteria, such area being the initial territorial jurisdiction of the Authority:
(1)	Has a population of at least 275,000 according to the most recent decennial federal census;
(2)	Has at least eight incorporated municipalities;
(3)	Has one or more federal military enclaves; and
(4)	Is a Mass Transportation Act recipient."
SECTION 3.  G.S. 160A‑605 is amended by adding a new subsection to read:
"(g)	An authority created under G.S. 160A-602(b) in Cumberland County would be governed by a nine-member board of trustees, to be appointed as follows:
(1)	Two by the Fayetteville City Council;
(2)	Two by the Cumberland County Board of Commissioners;
(3)	One by the Town of Spring Lake;
(4)	One by the Hope Mills Board of Commissioners;
(5)	One by the Stedman Board of Commissioners;
(6)	One at-large representative by Fort Bragg, North Carolina; and 
(7)	One ex officio member by the North Carolina Secretary of Transportation.
All of the above members shall be voting members and residents of the appointing jurisdiction except for the at-large member and the ex officio member, who shall reside within the territorial jurisdiction of the authority."
SECTION 4.  G.S. 160A‑635 is amended by adding a new subsection to read:
"(g)	An authority created under G.S. 160A-632(b) in Cumberland County would be governed by a nine-member board of trustees, to be appointed as follows:
(1)	Two by the Fayetteville City Council;
(2)	Two by the Cumberland County Board of Commissioners;
(3)	One by the Town of Spring Lake;
(4)	One by the Hope Mills Board of Commissioners;
(5)	One by the Stedman Board of Commissioners;
(6)	One at-large representative by Fort Bragg, North Carolina; and
(7)	One ex officio member by the North Carolina Secretary of Transportation.
All of the above members shall be voting members and residents of the appointing jurisdiction except for the at-large member and the ex officio member, who shall reside within the territorial jurisdiction of the authority."
SECTION 5.  G.S. 160A‑606(a) reads as rewritten:
"(a)	Six members of the Board of Trustee shall constitute a quorum for the transaction of  business, except for an authority created under G.S. 160A-602(b), a majority of the members of the Board of Trustees shall constitute a quorum for the transaction of business. Except as provided by G.S. 160A‑605(a)(4), each member shall have one vote."
SECTION 6.  The powers, duties, functions, and authority of a Regional Transportation Authority created under this act shall be generally consistent with the powers, duties, functions, and authority of a Regional Transportation Authority created under the Regional Public Transportation Authority Act, Article 26 of Chapter 160A of the General Statutes and the Regional Transportation Authority Act, Article 27 of Chapter 160A of the General Statutes except as may be amended herein, and any decision on funding of the activities of the Regional Transportation Authority created herein shall require a majority vote of all the voting members of the Regional Transportation Authority.
SECTION 7.  G.S. 162A‑5(c) reads as rewritten:
"(c)	Each member of the authority before entering upon his duties shall take and subscribe an oath or affirmation to support the Constitution of the United States and of this State and to discharge faithfully the duties of his office, and a record of each such oath shall be filed with the secretary of the authority.
The authority shall select one of its members as chairman and another as vice‑chairman and shall also select a secretary and a treasurer who may but need not be members of the authority. The offices of secretary and treasurer may be combined. The terms of office of the chairman, vice‑chairman, secretary and treasurer shall be as provided in the bylaws of the authority.
A majority of the members of the authority shall constitute a quorum and the affirmative vote of a majority of all of the members of the authority shall be necessary for any action taken by the authority. No vacancy in the membership of the authority shall impair the right of a quorum to exercise all the rights and perform all of the duties of the authority. The members of the authority may be paid a per diem compensation set by the authority which per diem may not exceed the total amount of four thousand dollars ($4,000) annually, and shall be reimbursed for the amount of actual expenses incurred by them in the performance of their duties."
SECTION 8.  Chapter 158 of the General Statutes is amended by adding a new Article to read:
"Article 5.
"County Economic Development Authorities Act.
"§ 158-50. Findings and purpose.
(a)	Findings. – The General Assembly finds that:
(1)	There exists in parts of the State a critical condition of unemployment and a scarcity of employment opportunities.
(2)	The economic insecurity that results from this unemployment and scarcity of employment opportunities constitutes a serious menace to the safety and general welfare of the entire State.
(3)	This unemployment and scarcity of employment opportunities has caused many workers and their families, including young adults upon whom future economic prosperity is dependent, to migrate elsewhere to find employment and establish homes.
(4)	This emigration has resulted in a reduced rate of growth in the tax base of the counties and other local governments of the State, which impairs the financial ability of these counties and other local governments to support education and other local government services.
(5)	This unemployment results in obligations to grant public assistance and to pay unemployment compensation.
(6)	These conditions can best be remedied by the attraction, stimulation, expansion, and rehabilitation of industrial and manufacturing facilities for industry in the State and other similar economic development efforts.
(b)	Purpose. – The purpose of a county economic development authority created under this Article is to provide for the attraction, stimulation, expansion, and rehabilitation of industrial and manufacturing facilities for industry in the State and to carry out other similar economic development efforts.
"§ 158-51.  Definitions.
The following definitions apply in this Article:
(1)	Authority. – A  county economic development authority created under this Article.
(2)	Eligible county. – A county that meets both of the following conditions as of the date it adopts a resolution to create an economic development authority under this Article:
a.	It has a population of less than 70,000 according to the most recent federal decennial census.
b.	It is an enterprise tier one area as defined in G.S. 105‑129.3.
"§ 158-52. Creation of economic development authority.
(a)	Resolution to Create Authority. – An eligible county may create an economic development authority by adopting a resolution finding that it is in the interest of the safety and welfare of the county to create an economic development authority and appointing the members of the authority in accordance with this Article. The resolution must include articles of incorporation for the authority which set forth the following:
(1)	The name of the authority.
(2)	A statement that the authority is organized under this Article.
(3)	The names and addresses of the first members of the authority appointed by the county.
(b)	Public Hearing. – The resolution may be adopted only after a public hearing on the question, notice of which hearing has been given by publication at least once not less than 10 days before the date set for the hearing, in a newspaper having a general circulation in the county. The notice must contain a brief statement of the substance of the proposed resolution, specify a public location where members of the public may review or obtain a copy of the proposed articles of incorporation of the authority, and state the time and place of the public hearing to be held on the resolution. No other publication or notice of the resolution is required.
(c)	Incorporation of Authority. – A county that adopts a resolution as provided in this section must file a certified copy of the resolution with the Secretary of State, together with proof of publication of notice of the hearing on the resolution. The resolution must contain the county clerk's attestation that it was adopted by the board of commissioners. If the Secretary of State finds that the resolution, including the articles of incorporation, conforms to the provisions of this Article and that notice of the hearing was properly published, the Secretary of State must file the resolution and proof of publication and must issue a certificate of incorporation for the authority under the seal of the State. The Secretary of State must record the certificate of incorporation in an appropriate book of record in the Secretary of State's office.
(d)	Effect of Incorporation. – The issuance of the certificate of incorporation by the Secretary of State constitutes the authority a public body and body politic and corporate of the State. The authority is a public authority subject to the provisions of Chapter 159 of the General Statutes. The certificate of incorporation is conclusive evidence that the authority has been duly created and established under this Article.
(e)	Amendment; Termination. – A county that has created an economic development authority under this Article may adopt a resolution to amend the authority's articles of incorporation. The requirements of this section for creating an authority apply equally to amending the authority's articles of incorporation.
A county that creates an economic development authority under this Article may terminate the authority by resolution at any time that all obligations incurred by the authority have been fully satisfied. Upon termination, any assets of the authority become the property of the county.
"§ 158-53. Members; organization; quorum.
(a)	Members. – An authority organized under this Article consists of the number of members designated by the county in the resolution creating the authority. A proportionate number of initial members of the authority must be appointed to serve terms of four, five, and six years respectively. Successors serve six‑year terms, with no limit on reappointment. A person appointed to fill a vacancy serves for the remainder of the unexpired term. The board of county commissioners may remove a member of the authority for cause.
(b)	Organization. – The authority must select a chair from among its members who shall serve a three‑year term. The authority meets at the call of the chair and must adopt rules of procedure to govern its meetings. A majority of the members of the authority constitutes a quorum, and the authority may act by majority vote of members present and voting. The board of county commissioners must determine the compensation, if any, to be paid to members of the authority.
(c)	Dual Office Holding. – Service on the authority may be in addition to any other office a person is entitled to hold.
"§ 158-54. Powers.
(a)	The general powers of an authority created under this Article include the following:
(1)	The powers of a corporate body, including the power to sue and be sued and to adopt and use a common seal.
(2)	To adopt bylaws and resolutions in accordance with this Article for its organization and internal management.
(3)	To employ persons as necessary and to fix their compensation within the limit of available funds.
(4)	With the approval of the county manager, to use officers, employees, agents, and facilities of the county for purposes and upon terms agreed upon with the county.
(5)	To acquire by purchase, lease, gift, lease with option to purchase, installment sale, or otherwise, but not by eminent domain, or to obtain options for the acquisition of, any property, real or personal, improved or unimproved, and interests in land less than the fee interest.
(6)	To sell, lease, exchange, transfer by lease with option to purchase or installment sale, or otherwise dispose of, or to grant options for any of these purposes with respect to, any real or personal property or interest in real or personal property.
(7)	To make contracts, deeds, leases with or without option to purchase, conveyances, and other instruments, including contracts with the United States, the State of North Carolina, and units of local government within or outside the State.
(8)	To borrow money on its bonds, notes, and other obligations, and to secure all of these obligations by any combination of the following:
a.	Mortgages on or security interests in any real or personal property of the authority.
b.	A pledge of any revenues or receivables of the authority.
(9)	To apply for, accept, and administer loans, grants, and appropriations of money from any federal agency, from the State or its political subdivisions, or from any other public or private sources available, to expend the money in accordance with the requirements imposed by the lender or donor, and to give any evidences of indebtedness that are required. No indebtedness of any kind incurred or created by the authority constitutes an indebtedness of the State or its political subdivisions, and no indebtedness of the authority involves or is secured by the faith, credit, or taxing power of the State or its political subdivisions.
(10)	To adopt, alter, or repeal its own bylaws or rules implementing the provisions of this Article.
(11)	To execute financing agreements, security documents, and other instruments appropriate in carrying out its purposes.
(12)	To fix, charge, collect, pledge, or assign revenues of the authority.
(13)	To employ consulting engineers, architects, attorneys, real estate counselors, appraisers, and other consultants and employees as may be required in the judgment of the authority and to fix and pay their compensation from funds available to the authority, and, when approved by the Local Government Commission under G.S. 159‑123(e) and (f) as if the authority were an issuing unit, to select and retain financial consultants, underwriters, and bond attorneys in connection with the issuance of any indebtedness and to pay for their services from funds available to the authority or out of the proceeds of any borrowing for which their services were performed.
(14)	To procure and maintain adequate insurance or otherwise provide for adequate protection to indemnify the authority and its officers, directors, agents, employees, adjoining property owners, or the general public against loss or liability resulting from any act or omission by or on behalf of the authority.
(15)	To purchase or finance real or personal property in the manner provided for cities and counties under G.S. 160A‑20.
(16)	To issue revenue bonds under the Local Government Revenue Bond Act, Article 5 of Chapter 159 of the General Statutes, or the bond and revenue anticipation provisions of Article 9 of Chapter 159 of the General Statutes, to carry out its purposes.
(17)	To issue obligations to finance the purchase or acquisition of land or options on land, or the construction of buildings or facilities. An obligation may be secured by the land purchased or acquired, or by the buildings or facilities constructed, may be unsecured, or may be made payable from revenues, the proceeds of notes, bonds, or the sale of any lands, the proceeds of any bonds of the State or moneys appropriated by the State, or any other available moneys of the authority. 
(18)	To surrender to the county any property no longer required by the authority.
(b)	The economic development powers of an authority created under this Article include the following:
(1)	To acquire, construct, improve, maintain, repair, operate, or administer any component part of a public infrastructure system or facility within the county, directly or by contract with a third party.
(2)	Except as otherwise provided in this Article, to exercise the powers granted to a local government for development by G.S. 158-7.1, except the power to levy a property tax.
(3)	To make grants and loans to support economic development projects authorized by this Chapter within the county.
(4)	To exercise the powers of a regional planning commission as provided in G.S. 153A‑395 and the powers of a regional economic development commission as provided in Article 2 of this Chapter, but the authority does not have the authority to establish land‑use zoning in the county.
(5)	To do all other things necessary or appropriate to carry out its purposes as provided in this Article.
"§ 158-55. Tax exemption.
Property owned by an authority created under this Article is exempt from taxation in accordance with Section 2 of Article V of the North Carolina Constitution."
SECTION 9.  G.S. 160A‑20(h) is amended by adding a new subdivision to read:
"(13)	A county economic development authority created under Article 5 of Chapter 158 of the General Statutes."
SECTION 10. This act is effective when it becomes law.