A BILL TO BE ENTITLED
AN ACT to clarify the timing of collection of system development fees and to require the Department of environmental Quality to amend a rule that currently allows a sewer that serves a single building to be deemed permitted, to allow a sewer shared with an accessory building on the same property to be deemed permitted as welL.
The General Assembly of North Carolina enacts:
SECTION 1.(a)  G.S. 162A‑213(a)a. is recodified as G.S. 162A‑213(a)(1).
SECTION 1.(b)  G.S. 162A‑213(a)b. is recodified as G.S. 162A‑213(a)(2).
SECTION 1.(c)  G.S. 162A‑213(b)a. is recodified as G.S. 162A‑213(b)(1).
SECTION 1.(d)  G.S. 162A‑213(b)b. is recodified as G.S. 162A‑213(b)(2).
SECTION 2.(a)  G.S. 162A‑213, as amended by Section 1 of this act, reads as rewritten:
"§ 162A‑213.  Time for collection of system development fees.
(a)	Land Subdivision. – For new development involving the subdivision of land, the system development fee shall be collected by a local governmental unit at the later of either of the following:
(1)	The time of application for a building permit.
(2)	When water or sewer service is committed by the local governmental unit.
(b)	Other New Development. – For all other new development, the local governmental unit shall collect the system development fee at the earlier of either of the following:
(1)	The time of application for connection of the individual unit of development to the service or facilities.
(2)	When water or sewer service is committed by the local governmental unit.
(c)	If the system development fee is collected under subdivision (a)(1) of this section and the local governmental unit that charges or assesses the system development fee is different from the local governmental unit that issues the building permit, the local governmental unit issuing the building permit shall require proof of collection of the system development fee prior to issuance of the building permit.
(d)	No system development fee shall be charged or assessed with respect to any new development for which a system development fee under this Article has been collected at the time of plat recordation involving the subdivision of land and the amount of capacity associated with that payment of the system development fee has not increased at the time the application for the building permit. If the amount of capacity is increased at the time of application for a building permit, then a system development fee may be charged for the difference in the amount of the increased capacity minus the system development fee previously paid under this Article."
SECTION 2.(b)  This section becomes effective January 1, 2021, and applies to system development fees collected on or after that date.
SECTION 3.(a)  G.S. 162A‑211 is amended by adding a new subsection to read:
"(a1)	Revenue from system development fees calculated using the combined cost method may be expended for previously completed capital improvements for which capacity exists and for capital rehabilitation projects."
SECTION 3.(b)  This section becomes effective July 1, 2020, and applies to system development fees expended or encumbered on or after that date.
SECTION 4.(a)  Definitions. – For purposes of this section and its implementation, the following definitions apply:
(1)	"Permitting by Regulation for Building Sewer Systems Rule " means 15A NCAC 02T .0303 (Permitting by Regulation).
(2)	"Accessory building" means in one‑ and two‑family dwellings not more than three stories above grade plane in height with a separate means of egress, a building, the use of which is incidental to that of the main building and which is detached and located on the same lot. An accessory building is a building that is roofed over and more than fifty percent (50%) of its exterior walls are enclosed. Examples of accessory buildings are garages, storage buildings, workshops, boat houses, treehouses, and dwelling units, etc. For purposes of this section, "main building" shall only include one‑ and two‑family dwellings.
(3)	"Building sewer" means that part of the drainage system that extends from the end of the building drain and conveys the discharge by gravity or under pressure to a public sewer, private sewer, individual sewage disposal system, or other point of disposal.
(4)	"Lot" means a portion or parcel of land considered as a unit.
SECTION 4.(b)  Permitting by Regulation for Building Sewer Systems Rule. – Until the effective date of the revised permanent rule that the Environmental Management Commission is required to adopt pursuant to subsection (d) of this section, the Commission shall implement the Permitting by Regulation for Building Sewer Systems Rule as provided in subsection (c) of this section.
SECTION 4.(c)  Implementation. – Notwithstanding the requirements of General Permit No. WQG100000 and the limitation on applicability of 15A NCAC 02T .0303(a)(1), (a)(2), and (a)(3) to a building sewer that serves a single building, if a building sewer that serves a main building is deemed permitted pursuant to 15A NCAC 02T .0113, then a building sewer that serves an accessory building on the same lot that is connected to the building sewer for the main building, and a sewer shared between a main building and an accessory building, shall also be deemed permitted if the building sewer that serves the accessory building, and the sewer shared between the main building and the accessory building, meet the criteria in 15A NCAC 02T .0113 and all criteria required for that system in 15A NCAC 02T .0303, and no additional permit shall be required. This section shall only apply to sewers that serve one main building and one accessory building on the same lot.
SECTION 4.(d)  Additional Rule‑Making Authority. – The Commission shall adopt a rule to amend the Permitting by Regulation for Building Sewer Systems Rule consistent with subsection (c) of this section. Notwithstanding G.S. 150B‑19(4), the rule adopted by the Commission pursuant to this section shall be substantively identical to the provisions of subsection (c) of this section. Rules adopted pursuant to this section are not subject to Part 3 of Article 2A of Chapter 150B of the General Statutes. Rules adopted pursuant to this section shall become effective as provided in G.S. 150B‑21.3(b1), as though 10 or more written objections had been received as provided in G.S. 150B‑21.3(b2).
SECTION 4.(e)  Applicability and Sunset. – This section and rules adopted pursuant to this section shall apply to common sewer lines in existence on, or constructed on or after, the effective date of this act, which are shared by accessory dwelling units or accessory residential buildings and a primary residence. This section expires when permanent rules adopted as required by subsection (d) of this section become effective.
SECTION 5.  Except as otherwise provided, this act is effective when it becomes law.