What does it mean to be an “authority”?

The term “authority” is used to refer to many different kinds of entities that are created by government to perform specific functions or services. In North Carolina, the law allows local governments to establish transportation authorities, water and sewer authorities, public hospital authorities, housing authorities, and others. Each type of authority has its own set of laws that explain how it is created, what powers it holds, and where it may exercise those powers.

The laws that allow these different types of authorities have some similarities and some differences. One important similarity across the different types of authorities is their relative independence from the government entity that created them. For example:

• An authority is typically not required to submit its budget to the city or county for approval. Instead, it develops its own budget and complies with the applicable state financial management laws.[1]
• An authority typically can be sued as an independent legal entity. By comparison, if someone wants to sue a city or county department or program, the suit would need to name the political subdivision as a defendant (i.e., county, city). An authority can also sue others directly without involving any other local government entity.
• An authority can often enter into contracts without seeking approval from any other government entity.

Some key differences relate to how the different types of authorities are created and the powers that they hold. For example:

• A water and sewer authority may be created by a combination of cities and counties whereas a public health authority may be created only by a county or a group of counties.[2]
• Many authorities, including regional transportation authorities, water and sewer authorities, and parking authorities, may issue bonds to generate revenue, while public health authorities may not.[3]
• A public hospital authority may exercise the power of eminent domain to condemn private property but a public health authority may not.[4]

Because there are so many important differences between the applicable laws, it is impossible to identify a universal definition of the term “authority” in North Carolina. 

[1]See G.S. Chapter 159, Article 3.

[2]See G.S. 162A-3; 162A-3.1.

[3]See G.S. 160A-617 (regional transportation authorities); G.S. 162A-6 (water and sewer authorities); G.S. 160A-556 (parking authorities).

[4]See G.S. 131E-24; G.S. 40A-3(c)(3).