County Service Districts/Research & URSD.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 731

Short Title: County Service Districts/Research & URSD. (Public)
Sponsors: Senator Murdock (Primary Sponsor).
Referred to: Rules and Operations of the Senate
March 26, 2025
*S731-v-1*
A BILL TO BE ENTITLED 1
AN ACT MAKING CHANGE S TO THE LAWS RELATE D TO RESEARCH AND 2
PRODUCTION SERVICE D ISTRICTS AND URBAN R ESEARCH SERVICE 3
DISTRICTS. 4
The General Assembly of North Carolina enacts: 5
6
PART I. RESEARCH AND PRODUCTION SERVICE DISTRICT 7
SECTION 1.1. G.S. 153A-311 reads as rewritten: 8
"§ 153A-311. Purposes for which districts may be established. 9
The board of commissioners of any county may define a county research and production 10
service district in order to finance, provide, and maintain for the district any service, facility, or 11
function that a county or a city is authorized by general law to provide, finance, or maintain. 12
maintain in its territorial jurisdiction. Such a service, facility, or function shall be financed, 13
provided, or maintained in the district either in addition to or to a greater extent than services, 14
facilities, or functions are financed, provided, or maintained for the entire county." 15
SECTION 1.2. G.S. 153A-313 reads as rewritten: 16
"§ 153A-313. Research and production service district advisory committee. 17
(a) The board or boards of commissioners, in the resolution establishing a research and 18
production service district, shall also provide for an advisory committee for the district. Such a 19
committee shall have at least 10 members, serving terms as set forth in the resolution; one 20
member shall be the representative of the developer of the research and production park 21
established as a research and production service district. The resolution shall provide for the 22
appointment or design ation of a chair. The board of commissioners or, in the case of a 23
multi-county district, the boards of commissioners shall appoint the members of the advisory 24
committee. If a multi -county district is established, the concurrent resolutions establishing the 25
district shall provide the number of members of the adv isory committee, which shall be at least 26
10, and how many members of the advisory committee are to be appointed by each board of 27
commissioners. commissioners. The concurrent resolutions may allow for the appointments to 28
be divided among the counties proportionate to the respective size of the research and production 29
service district. Before making the appointments, the appropriate board shall request the 30
association of owners and tenants, required by G.S. 153A-312(a), to submit a list of persons to 31
be considered for appointment to the committee; the association shall submit at least two names 32
for each appointment to be made. Except as provided in the next two s entences, the board of 33
commissioners shall make the appointments to the committee from the list of persons submitted. 34
In addition, the developer of the research and production park shall appoint one person to the 35
advisory committee as the developer's repre sentative on the committee. In addition, in a single 36
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 731-First Edition
county district, the board of commissioners may make two additional appointments of such other 1
persons as the board of commissioners deems appropriate, and in a multi -county district, each 2
board of count y commissioners may make one additional appointment of such other person as 3
that board of commissioners deems appropriate. Whenever a vacancy occurs on the committee 4
in a position filled by appointment by the board of commissioners, the appropriate board, before 5
filling the vacancy, shall request the association to submit the names of at least two persons to 6
be considered for the vacancy; and the board shall fill the vacancy by appointing one of the 7
persons so submitted, except that if the vacancy is in a p osition appointed by the board of 8
commissioners under the preceding sentence of this section, the board of commissioners making 9
that appointment shall fill the vacancy with such person as that board of commissioners deems 10
appropriate. 11
…." 12
SECTION 1.3. G.S. 153A-314 reads as rewritten: 13
"§ 153A-314. Extension of service districts. 14
… 15
(a1) Multi-County Districts. – If territory that lies wholly in one county is to be annexed 16
to a multi-county district, only the board of commissioners of that county is required to adopt a 17
resolution annexing the territory . In annexing territory under this subsection , t he board of 18
commissioners shall comply with the provisions of this section. 19
…." 20
SECTION 1.4. G.S. 153A-315 reads as rewritten: 21
"§ 153A-315. Required provision or maintenance of services. 22
(a) New District. – When a county or counties define a research and production service 23
district, it or they shall provide, maintain, or let contracts for the services for which the district is 24
being taxed within a reas onable time, not to exceed one year, after the effective date of the 25
definition of the district. The county may designate the developer of the research and 26
development park established as a research and production service district as an agent that may 27
contract, with the approval of the county in which the research and production service district is 28
located, for the provision of services, construction, and procurement within the research and 29
production service district. The developer -agent may own property necessary to provide the 30
services, including, but not limited to, streets, sidewalks, parks, schools, utilities, and public 31
transportation systems, and proceeds of taxes levied within the research and production service 32
district used to pay for or maintain the property providing the service is presumptively expended 33
for a public purpose. 34
…." 35
36
PART II. URBAN RESEARCH SERVICE DISTRICT 37
SECTION 2.1. G.S. 153A-316.1 reads as rewritten: 38
"§ 153A-316.1. Urban research service district (URSD). 39
… 40
(a1) Multi-County Districts. – If an area that meets the standards for creation of a research 41
and production service district lies in more than one county, the boards of commissioners of those 42
counties may adopt concurrent resolutions establishing a district, even if that portion of the 43
district lying in any one of the counties does not by itself meet the standards. Each of the county 44
boards of commissioners shall follow the procedure set out in this section for creation of a district. 45
…." 46
SECTION 2.2. G.S. 153A-316.2 reads as rewritten: 47
"§ 153A-316.2. URSD advisory committee. 48
(a) Members. – The board of commissioners, in the resolution establishing a URSD, shall 49
also provide for an advisory committee for the URSD. The committee shall have at least 1 0 50
members, serving whose appointments and terms as shall be set forth in the resolution. The 51
General Assembly Of North Carolina Session 2025
Senate Bill 731-First Edition Page 3
resolution shall provide for the appointment or designation of a chairperson. The board of 1
commissioners shall appoint the members of the USRD [URSD] advisory committee. In the case 2
of a multi-county URSD, the resolution may allow for the appointments to be divided among the 3
counties proportionate to the respective size of the research and production service district. 4
Before making the appointments, the board shall request the association of owners and tenants, 5
required by G.S. 153A-312(a), to submit a list of persons to be considered for appointment to the 6
committee. The association shall submit at least two names for each appointment to be made. 7
Except as provided in subsection (b) of this section, the board of commissioners shall make the 8
appointments to the committee from the list of persons submitted. 9
(b) Additional Members. – In addition to the members provided in subsection (a) of this 10
section, the developer of the research and production park established as a research and 11
production service district shall appoint one person to the URSD advisory committee as the 12
developer's representative on the committee. The board of commissioners may make two 13
additional appoi ntments of such other persons as the board of commissioners deems 14
appropriate.appropriate; provided, however, in the case of a multi-county URSD, established as 15
provided in G.S. 153A-316.1(a1), the board of commissioners of each county may make one 16
additional appointment. 17
…." 18
SECTION 2.3. G.S. 153A-316.3 reads as rewritten: 19
"§ 153A-316.3. Extension of URSD. 20
… 21
(a1) Multi-County Districts. – If territory that lies wholly in one county is to be annexed 22
to a multi -county URSD, only the board of commissioners of that county shall be required to 23
adopt a resolution annexing the territory. In annexing territory under this subsection, the board 24
of commissioners shall comply with the provisions of this section. 25
…." 26
SECTION 2.4. G.S. 153A-316.5 reads as rewritten: 27
"§ 153A-316.5. Required provision or maintenance of services in URSD. 28
(a) New URSD. – When a county or counties defines a URSD, it shall provide, maintain, 29
or let contracts for the services for which the URSD is being taxed within a reasonable time, not 30
to exceed one year, after the effective date of the definition of the URSD. When a county defines 31
a URSD, it may designate the developer of the research and development park established as a 32
research and production service d istrict in which the URSD is located as an agent that may 33
contract with any local government for the provision of services within the URSD.contract, with 34
the approval of the county or counties in which the URSD is located, for the provision of services, 35
construction, and procurement within the URSD. The developer -agent may own property 36
necessary to provide the services, including, but not limited to, streets, sidewalks, parks, schools, 37
utilities, and public transportation systems, and proceeds of taxes levied within the research and 38
production service district used to pay for or maintain the property providing the service is 39
presumptively expended for a public purpose. 40
…." 41
SECTION 2.5. G.S. 153A-317 reads as rewritten: 42
"§ 153A-317. Research and production service district taxes authorized; rate limitation. 43
(a) Tax Authorized. – A county, upon recommendation of the advisory committee 44
established pursuant to G.S. 153A-313, may levy property taxes within a research and production 45
service district in addition to those levied throughout the county, in order to finance, provide, or 46
maintain for the district services provided therein in addition to or to a greater extent than those 47
financed, provided, or maintained for the entire county. In addition, a county may allocate to a 48
district any other revenues whose use is not otherwise restricted by law. The proceeds of taxes 49
only within a district may be expended only for services provided for the district. Only those 50
services that counties and cities are authorized by law to provide may be provided. 51
General Assembly Of North Carolina Session 2025
Page 4 Senate Bill 731-First Edition
Property subject to taxation in a newly established district or in an area annexed to an existing 1
district is that subject to taxation by the county as of the preceding January 1. 2
(b) Limit. – Such additional property taxes may not be levied within any district 3
established pursuant to this Article in excess of a rate of ten cents (10¢) twenty cents (20¢) on 4
each one hundred dollars ($100.00) value of property subject to taxation or, in the event that the 5
research and production service district satisfies the criteria of G.S. 143B -437.08(h), such 6
additional property taxes may not be levied within said district in excess of a rate of twenty cents 7
(20¢) on each one hundred dollars ($100.00) value of property subject to taxation.taxation. 8
…." 9
SECTION 2.6. G.S. 153A-317.1 reads as rewritten: 10
"§ 153A-317.1. Urban research service district taxes authorized; rate. 11
(a) Tax Authorized. – A county, upon recommendation of the advisory committee 12
established pursuant to G.S. 153A-316.2, may levy property taxes within a URSD in addition to 13
those levied throughout the county, and in addition to those levied throughout the county research 14
and production service district, in order to finance, provide, or maintain for the URSD services 15
provided therein in addition to or to a greater extent than those financed, provided, or maintained 16
both for the entire county and for the county research and production service district. Only those 17
services that counties and cities are authorized by law to provide may be provided. In addition, a 18
county may allocate to a URSD any other revenue not otherwise restricted by law. 19
… 20
(c) Use. – The proceeds of taxes levied within a URSD may be expended only for the 21
benefit of the URSD. The taxes levied for the URSD may be used for debt service on any debt 22
issued by the county that is used wholly or partly for capital projects located within the URSD, 23
but not in greater proportion than expense of projects located within the URSD or for the benefit 24
of the URSD bear to the entire expense of capital projects financed by that borrowing of the 25
county. A capital project does not have to be located wholly withi n the URSD to be considered 26
a project that benefits the URSD. For the purpose of this subsection, "debt" includes (i) general 27
obligation bonds and notes issued under Chapter 159 of the General Statutes, (ii) revenue bonds 28
issued under Chapter 159 of the Ge neral Statutes, (iii) financing agreements under Article 8 of 29
Chapter 159 of the General Statutes, and (iv) special obligation bonds issued by the county." 30
31
PART III. MISCELLANEOUS 32
SECTION 3.1. G.S. 153A-149 reads as rewritten: 33
"§ 153A-149. Property taxes; authorized purposes; rate limitation. 34
… 35
(c) Each county may levy property taxes for one or more of the purposes listed in this 36
subsection up to a combined rate of one dollar and fifty cents ($1.50) on the one hundred dollars 37
($100.00) appraised value of property subject to taxation. Authorized purposes subject to the rate 38
limitation are: 39
… 40
(27) Public Transportation. – To provide public transportation by rail, motor 41
vehicle, or another means of conveyance other than a ferry, including any 42
facility or equipment needed to provide the public transportation. 43
transportation, such as a greenway to the extent it supports a means of public 44
conveyance. This subdivision does not authorize a county to provide public 45
roads in the county in violation of G.S. 136-51. 46
…." 47
48
PART IV. EFFECTIVE DATE 49
SECTION 4.1. This act is effective when it becomes law. 50