NC S259

Grants the Local Government Commission authority to impound books and records of water or sewer systems operated by local governments or public authorities when financial performance meets specific criteria for three consecutive fiscal years.

Triggers Commission oversight when a system demonstrates: negative working capital, a quick ratio below 1.0, or net loss of revenue using modified accrual budgetary accounting for three consecutive years.

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

Authorizes the Commission to assume full control or take lesser actions, including setting rates, negotiating contracts, collecting payments, suspending service to non-paying customers, and transferring ownership of the enterprise system.

Becomes effective upon enactment.