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  • More Questions About the New Builders’ Inventory Exclusion

    Authored by: on Thursday, October 8th, 2015

    The General Assembly finally closed up shop for 2015 but conversations about the new laws produced this session continue to percolate.

    A prime topic of these discussions is the new exclusion for improvements to residential and commercial real property (S.L. 2015-223).  I’ve already blogged and published a bulletin about the law, now nicknamed the “builders’ inventory exclusion.”  After hearing many interesting questions about the exclusion at Department of Revenue seminars over the past few weeks, I thought a follow-up blog would be helpful. Read more »

  • IT’S BACK . . . New E-Verify Contracting Requirements

    Authored by: on Monday, October 5th, 2015


    In the waning days of the 2015 legislative session, the General Assembly enacted legislation that once again changes the E-Verify contracting prohibition for state and local government contracts. In some respects HB318 (Protect North Carolina Workers Act) limits the prohibition; in many other respects, however, the prohibition has been expanded. Local governments, school units, and public authorities should be aware of these changes and take steps to comply with them, especially since the new law will go into effect as soon as the bill is signed by Governor McCrory and will apply to all contracts entered into on or after that date.[1] Read more »

  • Legislature Limits Government Water Utilities’ Authority to Mandate Connections

    Authored by: on Monday, October 5th, 2015

    The governing boards of several government-owned or operated water and sewer utilities currently have the authority to mandate connection of certain properties to their water systems. The authority extends to municipalities, counties, sanitary districts, and water and sewer authorities (hereinafter referred to as “government utilities”).

    Specifically, each local unit may require “the owner of developed property on which there are situated one or more residential dwelling units or commercial establishments” located within the territorial jurisdiction of the government utility and within a reasonable distance of the water line . . . owned, leased as lessee, or operated by, or on behalf of, the government utility “to connect the owner’s premises with the water [ ] line and may fix charges for these connections.” See G.S. 160A-317 (municipalities); G.S. 153A-284 (counties); G.S. 130A-55(16) (sanitary districts); G.S. 162A-6(a)(14d) (water and sewer authorities); see also G.S. 162A-14(2) (interlocal agreement between the political subdivision and a water and sewer authority). (A sanitary district and water and sewer authority may only exercise this authority if the water service is not being provided to the property by another government utility or by a private utility that is regulated by the North Carolina Utilities Commission.)

    As of August 1, 2016, counties, municipalities, sanitary districts, and water and sewer authorities will be prohibited from mandating connection to their water systems under certain circumstances. This post summarizes the new law and provides a guide for government utilities as to when it applies and what it prohibits.  Read more »

  • “Good Cause” and Late Property Tax Exemption Applications

    Authored by: on Monday, September 28th, 2015

    The Machinery Act rarely gives local governments much discretion. Most often our property tax statutes proscribe exactly what should happen in a given situation.

    There are a few tax collection situations in which local governments have flexibility, however.  Consider the unfettered authority of tax collectors to waive the 10% penalty for bad checks (G.S. 105-358) or the option for local government boards to waive discovery bills.  G.S. 105-312(k).

    Another of these discretionary situations is the topic of today’s blog post: decisions by governing boards to allow late exemption applications for “good cause.”  G.S. 105-282.1(a1).  That statute does not define “good cause”, leaving it up to local governments to decide for themselves what facts justify late applications.  Read more »

  • Leasing Government Property Legislative Changes: Notice Requirements and Communications Towers

    Authored by: on Friday, September 25th, 2015

    What do the time frame for providing public notice of a lease of government property and leasing government property for communications towers have in common? Changes to the statutory requirements for both are included in legislation that became law earlier this week. Section 9 of S.L. 2015-246 (H44) amends G.S. 160A-272, the statute that generally governs leasing government-owned property, in two ways: (1) increases the public notice period for certain types of leases from 10 days to 30 days; and (2) allows leases for communications towers to have a term of up to 25 years without being treated as a sale of government property. Both of these legislative changes are now law, so if you’re interested, keep reading.

    Read more »

  • New Public Records Exceptions for Security and Law Enforcement Officers (LEO) Information

    Authored by: on Friday, September 25th, 2015

    Concern about the safety of law enforcement officers (LEOs) and their families has led the North Carolina General Assembly to consider, over the past several years, various proposals to protect from public disclosure personal information of LEOs and other officials who are involved in the criminal justice system. A proposal from last year (mentioned in my blog post here) would have authorized law enforcement personnel to request that their personal information be removed from city and county websites. That bill did not pass, but the legislature revived the issue this session, eventually settling on a provision that protects certain specific information about sworn law enforcement officers. It also creates a new exception to the public records law for the government-issued mobile phone numbers for law enforcement and certain other employees. The state appropriations act (the state budget) also creates new exceptions in the public records law for certain security information. Read on to learn more about these new exceptions. Read more »

  • New Law Modernizes Preaudit and Disbursement Processes–Part II

    Authored by: on Thursday, September 24th, 2015

    Effective October 1, 2015, local governments, public authorities, and school units are subject to new preaudit and disbursement processes. In S.L. 2015-246, the legislature modified G.S. 159-28 (applicable to local governments and public authorities) and G.S. 115C-441 (applicable to school units) to address common issues faced by local units in implementing the preaudit and disbursement requirements, particularly with respect to electronic transactions. (The changes do not apply to ABC Boards, which will continue to be subject to the existing preaudit and disbursement requirements under G.S. 18B-702.)

    This post summarizes the changes to the disbursement process. Click here for a discussion of the new preaudit provisions. Read more »