NC S207

Amends G.S. 159-181 to grant the Local Government Commission authority to impound books and records of water and/or sewer systems when financial stability is threatened for three consecutive fiscal years.

Triggers Commission intervention when audited financial statements show: negative working capital, quick ratio below 1.0, or net loss of revenue from operations using modified accrual budgetary accounting.

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

Grants the Commission powers of the governing board when intervention occurs, including authority to set rates, negotiate contracts, collect payments, suspend service to non-payers, and transfer enterprise system ownership.

Effective July 1, 2013.