NORTH CAROLINA GENERAL ASSEMBLY
1961 SESSION

CHAPTER 1001
HOUSE BILL 745

AN ACT ADDING A NEW ARTICLE TO CHAPTER 153 OF THE GENERAL STATUTES TO AUTHORIZE COUNTIES (SINGLY OR JOINTLY WITH MUNICIPALITIES OR OTHER COUNTIES) AND MUNICIPALITIES (JOINTLY WITH COUNTIES OR OTHER MUNICIPALITIES) TO ACQUIRE, LEASE, CONSTRUCT, RECONSTRUCT, EXTEND, IMPROVE, MAINTAIN AND OPERATE ANY WATER SYSTEM OR SANITARY SEWERAGE SYSTEM, WITHIN OR WITHOUT THE BOUNDARIES OF ANY SUCH COUNTIES OR MUNICIPALITIES, AND TO ESTABLISH BY MUTUAL AGREEMENT JOINT AGENCIES TO EXERCISE THE POWERS CONFERRED BY SUCH ARTICLE, AND AMENDING THE COUNTY FINANCE ACT TO AUTHORIZE THE ISSUANCE OF BONDS BY COUNTIES FOR THE ACQUISITION, CONSTRUCTION, RECONSTRUCTION, EXTENSION AND IMPROVEMENT OF WATER SYSTEMS AND SANITARY SEWERAGE SYSTEMS EITHER SINGLY OR JOINTLY WITH OTHER COUNTIES OR MUNICIPALITIES.

WHEREAS, the increasing density of population and industrial growth outside of municipal boundaries in North Carolina is creating greater needs for central water supplies and systems for the collection and disposal of sewage; and
WHEREAS, the counties of North Carolina are being called upon to meet these needs for water and sewerage services; and
WHEREAS, county governments should have authority to establish and operate water and sewerage systems, fix charges and rates for the use thereof, and to contract with municipalities to provide service; and
WHEREAS, the concentrations of populations across county boundaries and the crossing of county boundaries by a single drainage basin frequently result in needs which can be more economically met by joint action by one or more counties or municipalities: Now, therefore,

The General Assembly of North Carolina do enact:

Section 1.  Chapter 153 of the General Statutes of North Carolina is hereby amended by adding at the end thereof a new Article to be entitled "Water and Sewerage Facilities" and to read as follows: 
"Section 1.  The board of commissioners of any county is hereby authorized to:
(a)	Acquire, lease as lessor or lessee, construct, reconstruct, improve, extend, enlarge, equip, repair, maintain and operate any water system and any sanitary sewerage system or parts thereof, either within or without the boundaries of the county, and to acquire in the name of the county by gift, purchase or the exercise of the right of eminent domain, which right shall be exercised in accordance with the provisions of Chapter 40, any improved or unimproved lands or rights in land, and to acquire such personal property or water rights as it may deem necessary in connection with the foregoing, and to hold and dispose of all real and personal property under its control; and
(b)	to make and enter into all contracts and agreements necessary or incidental to the execution of the powers herein provided, including the contracting or otherwise providing for the leasing, repairing, maintaining and operating of any such system or systems or parts thereof.
"Section 2.  The board of commissioners of any county is hereby further authorized to provide water and sewerage services to any and all persons including individuals, firms, partnerships, associations, public or private institutions, municipalities, political subdivisions, governmental agencies, and private or public corporations organized and existing under the laws of this State or any other state or county, either within or without the boundaries of the county, but in no case shall the county be liable for damages for failure to furnish any such services.
"Section 3.  The board of commissioners of any county may fix, and may revise from time to time, rents, rates, fees and charges for the use of and for the services furnished or to be furnished by any such system or systems. Such rents, rates, fees and charges may vary, if determined by the governing body of the county to be reasonable, for the same class of service in one area of the county from those imposed in another area of the county. The rents, rates, fees and charges imposed for services provided outside the boundaries of the county may vary from those imposed for services provided within the boundaries of the county and may vary for the same class of service provided in one area outside the county from those imposed for services provided in another area outside the county.
"Section 4.  Any county or municipality and any other county or counties or municipality or municipalities (which municipality or municipalities need not be within such county or counties) are hereby authorized, jointly to acquire, lease as lessor or lessee, construct, reconstruct, improve, extend, enlarge, equip, repair, maintain and operate any water system and any sanitary sewerage system or parts thereof, either within or without the boundaries of any such counties or municipalities, and to acquire by gift, purchase or the exercise of the right of eminent domain in accordance with the provisions of this Article or of other provisions of the General Statutes of North Carolina as are applicable to the exercise of such powers, any improved or unimproved lands or rights in land, and to acquire such personal property or water rights as may be deemed necessary in connection with the foregoing, and to hold and dispose of all real and personal property.
"Any such counties or municipalities may enter into such contracts or agreements with each other or with any and all persons including individuals, firms, partnerships, associations, public or private institutions, municipalities, political subdivisions, governmental agencies, and private or public corporations organized and existing under the laws of this State or any other state or county, either within or without the boundaries of any such counties or municipalities, which the governing bodies of any such counties or municipalities shall deem necessary or incidental to the execution jointly of the powers herein provided and which may contain, as to contracts between any such counties or municipalities, provisions as to the apportionment of the cost of any such system or systems and the distribution of the revenues thereof.
"Joint action with respect to any of the foregoing shall be taken pursuant to resolutions adopted by the governing bodies of each such county or municipality. Joint action taken and the contract or contracts herein authorized may provide for and may be of such duration as the participating counties and municipalities may determine to be reasonable.
"Section 5.  Any such counties or municipalities are hereby authorized to establish, by mutual agreement, a joint agency (which may be termed a board, commission, council or such other name as may be agreed upon which shall be subject to the control of the governing bodies of such counties or municipalities) to be charged with the responsibility, in whole or in part, of exercising the powers provided in the foregoing Section. The joint agency may continue in operation for such period of time as the participating counties and municipalities may agree upon. Funds may be appropriated by the governing bodies of such counties or municipalities to any such joint agency to be used to carry out its responsibilities, and any such appropriations shall be on the basis of an annual budget recommended by such joint agency and submitted to such governing bodies for approval. The accounting for all funds of such a joint agency and the disbursement of all funds thereof shall be in accordance with the terms of the agreement establishing such joint agency.
"Section 6.  Expenditures by counties to provide water and sewerage services under the authority granted by this Article are hereby declared to be a special purpose and a necessary expense, and all counties of the State shall have authority and are hereby given special approval to levy special taxes and to appropriate money for all such services.
"Section 7.  The powers granted to counties and municipalities by this Article shall be deemed supplementary to any powers heretofore or hereafter granted by any general or local act for the same or similar purposes, and in any case where the provisions of this Article conflict with or are different from the provisions of any other Act, the board of commissioners of the county or the municipal governing beard may in its discretion proceed in accordance with the provisions of this Article or, as an alternative method, in accordance with the provisions of such Act.
"Section 8.  The word 'authority' as contained in G.S. 162A‑7 shall be deemed to include counties and municipalities acting collectively or jointly under this Article and joint agencies as referred to in this Article. No diversion of water by those acting collectively or jointly under this Article from one stream or river to another shall be permitted nor shall proceedings in the nature of eminent domain be instituted by those acting collectively or jointly under this Article to acquire water, water rights, or lands having water rights attached thereto unless such diversion or acquisition is first authorized by a certificate from the Board therein referred to. The provisions of G.S. 162A‑7(b) - (f), inclusive, shall be applicable thereto.
"Section 9.  Nothing contained in this Article shall change or modify existing common or Statute law with respect to the relative rights of riparian owners or others concerning the use of or disposal of water in the streams of this State.
"Section 10.  Diversion of water from any major river basin, the main stem of which is not located entirely within North Carolina downstream from the point of such diversion is prohibited, except where such diversion is now permitted by law.
"Section 11.  Any riparian owner alleging injury as a result of any Act taken by any county, municipality or joint agency pursuant to this Article may maintain an action for relief against such Act or Acts either in the county where the lands of such riparian owner lie or in any county taking such action or in which any such municipality or joint agency is located or operates."
Sec. 2.  Subdivisions (o) and (p) of Section 153‑77 of Article 9 of Chapter 153 of the General Statutes of North Carolina, the same being a part of the County Finance Act, as amended, are hereby rewritten and amended to read as follows:
"(o)	Acquisition, construction, reconstruction, extension and improvement of water systems, either singly or jointly with other counties or municipalities.
"(p)	Acquisition, construction, reconstruction, extension and improvement of sanitary sewerage systems, either singly or jointly with other counties or municipalities."
Sec. 3.  The provisions of this Act are severable, and if any of its provisions shall be held unconstitutional by any court of competent jurisdiction, the decision of such court shall not affect or impair any of the remaining provisions.
Sec. 4.  This Act shall be in full force and effect from and after its ratification.
In the General Assembly read three times and ratified, this the 17th day of June, 1961.