NC H238

Grants the Local Government Commission authority to impound records and assume control of a unit's water and/or sewer system when audited financial statements show negative working capital, quick ratio below 1.0, or net revenue loss for three consecutive fiscal years.

Requires the Commission to find that financial problems threaten the unit's stability and that the unit failed to make corrective changes after receiving notice and warning before assuming full control.

Vests the Commission with all powers of the governing board over the enterprise system, including setting rates, negotiating contracts, collecting payments, suspending service to nonpaying customers, and transferring ownership.

Defines "working capital" as current assets minus current liabilities under generally accepted accounting principles, and "quick ratio" as the ratio of liquid assets to current liabilities.

Takes effect July 1, 2013.