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• <br /> GENERAL ASSEMBLY OF NORTH CAROLINA <br /> 1987 SESSION <br /> RATIFIED BILL <br /> CHAPTER 490 <br /> HOUSE BILL 747 <br /> AN ACT TO REQUIRE A WATER OR SEWER UTILITY COMPANY TO POST <br /> A BOND. <br /> The General Assembly of North Carolina enacts: <br /> Section 1. G.S. 62-18(b) reads as rewritten:. <br /> ':(b) *H- Except as provided in G.S. 62-110.3. all license fees and seal taxes. all <br /> money received from fines and penalties, and all other fees paid into the office of the <br /> Utilities Commission shall be turned in to the State treasury." <br /> Sec. 2. A new section is added to Chapter 62 of the General Statutes to <br /> read: <br /> "§ 62-110.3. Bond required for water and sewer companies.--(a) No franchise may' <br /> be granted to any water or sewer utility company until the applicant furnishes a bond, <br /> secured with sufficient surety as approved by the Commission, in an amount not less <br /> than ten thousand dollars ($10,000) nor more than two hundred thousand dollars <br /> ($200,000). The bond shall be conditioned upon providing adequate and sufficient <br /> service within all the applicant's service areas, including those for which franchises <br /> have previously been granted, shall be payable to the Commission, and shall be in a <br /> form acceptable to the Commission. In setting the amount of a bond, the <br /> Commission shall consider: <br /> (1) whether the applicant holds other water or sewer franchises in this <br /> State, and if so its record of operation, <br /> (2) the number of customers the applicant now serves and proposes to <br /> serve, <br /> (3) the likelihood of future expansion needs of the service, <br /> (4) if the applicant is acquiring an existing company, the age of•the <br /> equipment, and <br /> (5) any other relevant factors. <br /> Any interest earned on a bond. shall be payable to the water or sewer company that <br /> posted the bond. - <br /> (b) The Commission shall not require. an applicant to post the bond required by <br /> subsection (a) if: <br /> - (1) the applicant has posted a bond for the water or sewer system with <br /> another State government agency and the Commission finds that <br /> that bond satisfies the purposes of this section; or <br /> (2) the applicant has posted bonds for other water or sewer systems <br /> with the Commission totalling two hundred thousand dollars <br /> • ($200,000). <br /> (c) The utility, the Public'Staff, the Attorney General, and any other party may, at <br /> anytime after the amount of a bond is set, apply to the Commission to raise or lower <br /> the amount based on changed circumstances. <br /> • <br /> • <br /> • <br />