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HB 823

County Service Districts/Research and Urban Research Service Districts.

2025-2026 Session Introduced by Vernetta Alston and 8 co-sponsors

HB 823 broadens formation and governance of county research districts, enabling multi-county setups, developer involvement, and advisory-committee roles to speed service delivery.

Passed 1st Reading
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Bill Summary · HB 823

Summary — HB 823 (2025)

Short title: County Service Districts / Research & Urban Research Service Districts

Purpose and intent

HB 823 makes targeted changes to North Carolina statutes governing county research and production service districts and urban research service districts (URSDs). The bill is intended to clarify and expand procedures for creating and governing these special service districts, streamline multi‑county district formation and annexation, specify advisory‑committee composition and appointment processes, and allow counties to delegate certain implementation responsibilities to developers.

Key provisions and changes

  • Statutes amended: G.S. 153A‑311, 153A‑313, 153A‑314, 153A‑315, 153A‑316.1, and 153A‑316.2.
  • Purposes (G.S. 153A‑311): Confirms that counties may create research and production service districts to finance, provide, or maintain any service, facility, or function a county or city can lawfully provide — either in addition to or to a greater extent than countywide services.
  • Advisory committee (G.S. 153A‑313 & 153A‑316.2):
    • Requires an advisory committee of at least 10 members for districts and URSDs.
    • The developer of the research/production park must appoint one committee member as the developer’s representative.
    • Before appointments, the county must request a list of candidates from the association of owners and tenants; the association must submit at least two names per appointment.
    • In single‑county districts a county board may make two additional appointments; in multi‑county districts each county board may make one additional appointment (as clarified).
    • Vacancy procedures require requesting names from the association and appointing from that list, except for the additional appointments the board is allowed to make.
  • Multi‑county formation and annexation (G.S. 153A‑314 & 153A‑316.1):
    • Boards of commissioners of multiple counties may adopt concurrent resolutions to establish a multi‑county district even if the portion lying in a single county would not meet standards on its own.
    • If territory lying wholly in one county is annexed to an existing multi‑county district, only that county’s board need adopt the annexation resolution (subject to compliance with other statutory procedures).
  • Provision of services and developer role (G.S. 153A‑315):
    • New districts must provide, maintain, or contract for required services within a reasonable time, not to exceed one year from the district’s effective date.
    • A county may designate the park developer as an agent to contract for services, construction, and procurement (with county approval).
    • Developer‑agents may own property necessary for service provision (streets, utilities, parks, etc.), and proceeds of taxes levied within the district used to pay for or maintain such property are presumptively for a public purpose.

Who is affected

  • County boards of commissioners (new procedural flexibilities and responsibilities).
  • Developers of research and production parks (formal appointment rights, potential contract/agent role, ability to own infrastructure paid by district revenues).
  • Associations of owners and tenants (formal role in nominating advisory‑committee candidates).
  • Property owners and residents within established districts (subject to district taxes and the services/facilities provided).
  • Neighboring counties in multi‑county district situations (shared governance and appointment allocations).

Procedural status (as of provided records)

  • Filed and introduced in 2025 session. Primary sponsors (per the North Carolina edition): Representatives Hawkins, Longest, Alston, and Ball.
  • Referred to Rules, Calendar, and Operations of the House; passed First Reading (April 9, 2025). Further action pending in House rules/calendar.

Potential impacts and considerations

  • The bill increases flexibility for forming multi‑county research districts and gives developers a formal role in governance and implementation; proponents may argue this speeds development and aligns incentives.
  • The developer’s potential ownership of infrastructure financed by district taxes and their appointment on advisory committees may raise oversight and public‑interest questions that counties will need to manage through contract terms and approval processes.
  • The one‑year requirement to deliver services after district creation sets a clear timeline but may impose operational pressures on counties and developer agents.

If you want, I can produce a side‑by‑side comparison of the current statutory text and the bill’s changes, or draft talking points for county officials or developers.

Compiled from official sources — confirm details with the bill’s official record.

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