A BILL TO BE ENTITLED
AN ACT to allow the siting of schools via special use permit for areas zoned for commercial use, to clarify that use rights on property are not extinguished by the approval of additional use rights, and to eliminate municipal extraterritorial jurisdiction.
The General Assembly of North Carolina enacts:

part i. schools A permitted use in commercial zones
SECTION 1.1.  Part 1 of Article 9 of Chapter 160D of the General Statutes is amended by adding a new section to read:
"§ 160D‑917.  School sites in commercial zones.
A local government zoning regulation shall permit by right or by special use the siting of a school building that is primarily used for the instruction of students and is under the control of a public school unit in areas zoned for commercial use."
SECTION 1.2.  This Part is effective when it becomes law.

part ii. clarify existing use rights on property
SECTION 2.1.  G.S. 160D‑108 reads as rewritten:
"§ 160D‑108.  Permit choice and vested rights.
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(c)	Vested Rights. – Amendments in land development regulations are not applicable or enforceable without the written consent of the owner with regard to any of the following:
(1)	Buildings or uses of buildings or land for which a development permit application has been submitted and subsequently issued in accordance with G.S. 143‑755.
(2)	Subdivisions of land for which a development permit application authorizing the subdivision has been submitted and subsequently issued in accordance with G.S. 143‑755.
(3)	A site‑specific vesting plan pursuant to G.S. 160D‑108.1.
(4)	A multi‑phased development pursuant to subsection (f) of this section.
(5)	A vested right established by the terms of a development agreement authorized by Article 10 of this Chapter.
The establishment of a vested right under any subdivision of this subsection does not preclude vesting under one or more other subdivisions of this subsection or vesting by application of common law principles. A vested right, once established as provided for in this section or by common law, precludes any action by a local government that would change, alter, impair, prevent, diminish, or otherwise delay the development or use of the property allowed by the applicable land development regulation or regulations, except where a change in State or federal law mandating local government enforcement occurs after the development application is submitted that has a fundamental and retroactive effect on the development or use. A vested right obtained by permit or other local government approval shall not preclude the use or extinguish the existence of any other vested right or use by right attached to the property.
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SECTION 2.2.  G.S. 160D‑705 reads as rewritten:
"§ 160D‑705.  Quasi‑judicial zoning decisions.
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(c)	Special Use Permits. – The regulations may provide that the board of adjustment, planning board, or governing board hear and decide special use permits in accordance with principles, conditions, safeguards, and procedures specified in the regulations. Reasonable and appropriate conditions and safeguards may be imposed upon these permits. Where appropriate, such conditions may include requirements that street and utility rights‑of‑way be dedicated to the public and that provision be made for recreational space and facilities. Conditions and safeguards imposed under this subsection shall not include requirements for which the local government does not have authority under statute to regulate nor requirements for which the courts have held to be unenforceable if imposed directly by the local government, including, without limitation, taxes, impact fees, building design elements within the scope of G.S. 160D‑702(b), driveway‑related improvements in excess of those allowed in G.S. 136‑18(29) and G.S. 160A‑307, or other unauthorized limitations on the development or use of land.
The regulations may provide that defined minor modifications to special use permits that do not involve a change in uses permitted or the density of overall development permitted may be reviewed and approved administratively. Any other modification or revocation of a special use permit shall follow the same process for approval as is applicable to the approval of a special use permit. If multiple parcels of land are subject to a special use permit, the owners of individual parcels may apply for permit modification so long as the modification would not result in other properties failing to meet the terms of the special use permit or regulations. Any modifications approved apply only to those properties whose owners apply for the modification. The regulation may require that special use permits be recorded with the register of deeds. If a special use permit expires and does not vest, the current zoning classification or regulation for the property applies.
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SECTION 2.3.  This Part is effective when it becomes law.

part iii. remove extraterritorial jurisdiction authority
SECTION 3.1.  G.S. 160D‑201 reads as rewritten:
"§ 160D‑201.  Planning and development regulation jurisdiction.
(a)	Cities. – All of the powers granted by this Chapter may be exercised by any city within its corporate limits.
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SECTION 3.2.  G.S. 160D‑202 reads as rewritten:
"§ 160D‑202.  Transfer or relinquishment of jurisdiction.

	

(a)	County Authority Within City Jurisdiction. – The county may, on request of the city council, exercise any or all of the powers granted in this Chapter in any or all areas lying within the city's corporate limits.
(b)	Transfer of Jurisdiction. – When a city annexes or a new city is incorporated in an area that is currently being regulated by the county, the county development regulations and powers of enforcement shall remain in effect until (i) the city has adopted such development regulations or (ii) a period of 60 days has elapsed following the annexation or incorporation, whichever is sooner. Prior to the transfer of jurisdiction, the city may hold hearings and take any other measures consistent with G.S. 160D‑204 that may be required in order to adopt and apply its development regulations for the area at the same time it assumes jurisdiction.
(c)	Relinquishment of Jurisdiction. – When a city relinquishes jurisdiction over an area that it is regulating under this Chapter to a county, the city development regulations and powers of enforcement shall remain in effect until (i) the county has adopted such development regulation or (ii) a period of 60 days has elapsed following the action by which the city relinquished jurisdiction, whichever is sooner. Prior to the transfer of jurisdiction, the county may hold hearings and take other measures consistent with G.S. 160D‑204 that may be required in order to adopt and apply its development regulations for the area at the same time it assumes jurisdiction.
(d)	Process for Local Government Approval. – When a local government is granted powers by this section subject to the request, approval, or agreement of another local government, the request, approval, or agreement shall be evidenced by a formally adopted resolution of the governing board of the local government. Any such request, approval, or agreement can be rescinded upon two years' written notice to the other governing boards concerned by repealing the resolution. The resolution may be modified at any time by mutual agreement of the governing boards concerned.
	
(e)	Effect on Vested Rights. – Whenever a city or county, pursuant to this section, acquires jurisdiction over a territory that theretofore has been subject to the jurisdiction of another local government, any person who has acquired vested rights in the surrendering jurisdiction may exercise those rights as if no change of jurisdiction had occurred. The city or county acquiring jurisdiction may take any action regarding such a development approval, certificate, or other evidence of compliance that could have been taken by the local government surrendering jurisdiction pursuant to its development regulations. Except as provided in this subsection, any building, structure, or other land use in a territory over which a city or county has acquired jurisdiction is subject to the development regulations of the city or county."
SECTION 3.3.  G.S. 160D‑307 is repealed.
SECTION 3.4.  G.S. 160D‑602 reads as rewritten:
"§ 160D‑602.  Notice of hearing on proposed zoning map amendments.
(a)	Mailed Notice. – Subject to the limitations of this Chapter, an ordinance shall provide for the manner in which zoning regulations and the boundaries of zoning districts are to be determined, established, and enforced, and from time to time amended, supplemented, or changed, in accordance with the provisions of this Chapter. The owners of affected parcels of land and the owners of all parcels of land abutting that parcel of land shall be mailed a notice of the hearing on a proposed zoning map amendment by first‑class mail at the last addresses listed for such owners on the county tax abstracts. For the purpose of this section, properties are "abutting" even if separated by a street, railroad, or other transportation corridor. This notice must be deposited in the mail at least 10 but not more than 25 days prior to the date of the hearing.
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SECTION 3.5.  G.S. 160D‑903 reads as rewritten:
"§ 160D‑903.  Agricultural uses.
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SECTION 3.6.  G.S. 160D‑912 reads as rewritten:
"§ 160D‑912.  Outdoor advertising.
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(m)	This section does not apply to any ordinance in effect on July 1, 2004. A local government may amend an ordinance in effect on July 1, 2004, to extend application of the ordinance to off‑premises outdoor advertising located in territory acquired by annexation. A local government may repeal or amend an ordinance in effect on July 1, 2004, so long as the amendment to the existing ordinance does not reduce the period of amortization in effect on June 19, 2020.
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SECTION 3.7.  G.S. 160D‑925 reads as rewritten:
"§ 160D‑925.  Stormwater control.
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SECTION 3.8.  G.S. 160D‑1125 reads as rewritten:
"§ 160D‑1125.  Enforcement.
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(c)	Additional Lien. – The amounts incurred by a local government in connection with the removal or demolition are also a lien against any other real property owned by the owner of the building or structure and located within the local government's planning and development regulation jurisdiction, except for the owner's primary residence. The provisions of subsection (b) of this section apply to this additional lien, except that this additional lien is inferior to all prior liens and shall be collected as a money judgment.
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SECTION 3.9.  Any provision in a local act that grants a city the power to exercise extraterritorial planning jurisdiction under Article 19 of Chapter 160A of the General Statutes, or its successor Chapter 160D of the General Statutes, is hereby repealed.
SECTION 3.10.  The relinquishment of jurisdiction over an area that a city is regulating under the authority of extraterritorial planning jurisdiction under Article 19 of Chapter 160A of the General Statutes, or its successor Chapter 160D of the General Statutes, shall become effective January 1, 2025. However, nothing in this Part shall be construed as prohibiting a city from relinquishing jurisdiction over an area prior to January 1, 2025, so long as the city complies with the provisions of Article 19 of Chapter 160A of the General Statutes, or its successor Chapter 160D of the General Statutes.
SECTION 3.11.  Upon relinquishment of jurisdiction over an area that a city is regulating under the authority of extraterritorial planning jurisdiction under Article 19 of Chapter 160A of the General Statutes, or its successor Chapter 160D of the General Statutes:
(1)	The city regulations and powers of enforcement shall remain in effect until (i) the county has adopted the regulation or (ii) a period of 60 days has elapsed following the effective date of this Part, whichever is sooner. During this period, the county may hold hearings and take other measures that may be required in order to adopt its regulations for the area.
(2)	Any person who has acquired vested rights under a permit, certificate, or other evidence of compliance issued by the city may exercise those rights as if no change of jurisdiction had occurred. The county acquiring jurisdiction may take any action regarding the permit, certificate, or other evidence of compliance that could have been taken by the city surrendering jurisdiction pursuant to its ordinances and regulations. Except as provided in this section, any building, structure, or other land use in a territory over which a county has acquired jurisdiction is subject to the ordinances and regulations of the county.
SECTION 3.12.  G.S. 113A‑208 reads as rewritten:
"§ 113A‑208.  Regulation of mountain ridge construction by counties and cities.
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(d)	An ordinance adopted under the authority of this section applies to all protected mountain ridges as defined in G.S. 113A‑206. A county or city may apply the ordinance to other mountain ridges within its jurisdiction if it finds that this application is reasonably necessary to protect against some or all of the hazards or problems set forth in G.S. 113A‑207.
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SECTION 3.13.  G.S. 122C‑3 reads as rewritten:
"§ 122C‑3.  Definitions.
The following definitions apply in this Chapter:
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(13e)	Extraterritorial jurisdiction. – The boundaries of the area over which the Town of Butner was exercising extraterritorial planning jurisdiction under Article 19 of Chapter 160A of the General Statutes, or its successor Chapter 160D of the General Statutes, prior to the Town's relinquishment of jurisdiction over the area on or before January 1, 2025.
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SECTION 3.14.  G.S. 122C‑403 reads as rewritten:
"§ 122C‑403.  Secretary's authority over Camp Butner reservation.
The Secretary shall administer the Camp Butner reservation except (i) those areas within the municipal boundaries of the Town of Butner and (ii) that portion of the Town of Butner's extraterritorial jurisdiction, as defined in G.S. 122C‑3(13e), consisting of lands not owned by the State of North Carolina. In performing this duty, the Secretary has the powers listed below. In exercising these powers the Secretary has the same authority and is subject to the same restrictions that the governing body of a city would have and would be subject to if the reservation was a city, unless this section provides to the contrary. The Secretary may do the following:
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SECTION 3.15.  G.S. 122C‑405 reads as rewritten:
"§ 122C‑405.  Procedure applicable to rules.
Rules adopted by the Secretary under this Article shall be adopted in accordance with the procedures for adopting a city ordinance on the same subject, shall be subject to review in the manner provided for a city ordinance adopted on the same subject, and shall be enforceable in accordance with the procedures for enforcing a city ordinance on the same subject. Violation of a rule adopted under this Article is punishable as provided in G.S. 122C‑406.
Rules adopted under this Article may apply to part or all of the Camp Butner Reservation, except those areas within the municipal boundaries of the Town of Butner and that portion of the Town of Butner's extraterritorial jurisdiction, as defined in G.S. 122C‑3(13e), consisting of lands not owned by the State of North Carolina. If a public hearing is required before the adoption of a rule, Advisory the Secretary shall designate one or more employees of the Department to conduct the hearing. The Butner Town Council shall receive at least 14 days' advance written notice of any public hearing with all correspondence concerning such public hearings to be directed to the mayor of the Town of Butner and sent by certified mail, return receipt requested, or equivalent delivery service to Butner Town Hall."
SECTION 3.16.  G.S. 122C‑410 reads as rewritten:
"§ 122C‑410.  Authority of county or city over Camp Butner Reservation; zoning jurisdiction by Town of Butner over State lands.
(a)	A municipality other than the Town of Butner may not annex territory extending into the Camp Butner reservation without written approval from the Secretary and the Butner Town Council of each proposed annexation. The Town of Butner may not annex territory extending into those portions of the Camp Butner Reservation owned by the State of North Carolina without written approval from the Secretary of each proposed annexation. The procedures, if any, for withdrawing approval granted by the Secretary to an annexation shall be stated in the notice of approval.
(b)	A county ordinance may apply in part or all of the Camp Butner reservation (other than areas within the Town of Butner) if the Secretary gives written approval of the ordinance. The Secretary may withdraw approval of a county ordinance by giving written notification, by certified mail, return receipt requested, to the county. A county ordinance ceases to be effective in the Camp Butner reservation 30 days after the county receives the written notice of the withdrawal of approval. This section does not enhance or diminish the authority of a county to enact ordinances applicable to the Town of Butner.
(c)	Notwithstanding any other provision of this Article, no portion of the lands owned by the State as of September 1, 2007, which are located in the incorporated limits of the Town of Butner shall be subject to any of the powers granted to the Town of Butner pursuant to Chapter 160D of the General Statutes except as to property no longer owned by the State. If any portion of such property owned by the State of North Carolina as of September 1, 2007, is no longer owned by the State, the Town of Butner may exercise all legal authority granted to the Town pursuant to the terms of its charter or by Chapter 160D of the General Statutes and may do so by ordinances adopted prior to the actual date of transfer. Before the State shall dispose of any property inside the incorporated limits of the Town of Butner or any of that property currently under the control of the North Carolina Department of Health and Human Services or the North Carolina Department of Agriculture and Consumer Services within the extraterritorial jurisdiction, as defined in G.S. 122C‑3(13e), of the Town of Butner, southeast of Old Highway 75, northeast of Central Avenue, southwest of 33rd Street, and northwest of "G" Street, by sale or lease for any use not directly associated with a State function, the Town of Butner shall first be given the right of first refusal to purchase said property at fair market value as determined by the average of the value of said property as determined by a qualified appraiser selected by the Secretary and a qualified appraiser selected by the Town of Butner."
SECTION 3.17.  G.S. 130A‑317 reads as rewritten:
"§ 130A‑317.  Department to provide advice; submission and approval of public water system plans.
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(d)	Municipalities, counties, local boards or commissions, water and sewer authorities, or groups of municipalities and counties may establish and administer within their utility service areas their own approval program in lieu of State approval of water system plans required in subsection (c) of this section for construction or alteration of the distribution system of a proposed or existing public water system, subject to the prior certification of the Department. For purposes of this subsection, the service area of a municipality shall include only that area within the corporate limits of the municipality and that area outside a municipality in its extraterritorial jurisdiction where water service is already being provided to the permit applicant by the municipality or connection to the municipal water system is immediately available to the applicant; the service areas of counties and the other entities or groups shall include only those areas where water service is already being provided to the applicant by the permitting authority or connection to the permitting authority's system is immediately available. For purposes of this subsection, the term "extraterritorial jurisdiction" means the boundaries of the area over which a municipality was exercising extraterritorial planning jurisdiction under Article 19 of Chapter 160A of the General Statutes, or its successor Chapter 160D of the General Statutes, prior to the municipality's relinquishment of jurisdiction over the area on or before January 1, 2025. No later than the 180th day after the receipt of an approval program and statement submitted by any local government, commission, authority, or board, the Department shall certify any local program that meets all of the following conditions:
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SECTION 3.18.  G.S. 136‑55.1 reads as rewritten:
"§ 136‑55.1.  Notice of abandonment.
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(b)	A municipality may keep open and assume responsibility for maintenance of a road within one mile of its corporate limits once it is abandoned from the State highway system."
SECTION 3.19.  G.S. 136‑63 reads as rewritten:
"§ 136‑63.  Change or abandonment of roads.
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(b)	A municipality may keep open and assume responsibility for maintenance of a road within one mile of its corporate limits once it is abandoned from the State highway system."
SECTION 3.20.  G.S. 136‑66.3 reads as rewritten:
"§ 136‑66.3.  Local government participation in improvements to the State transportation system.
(a)	Municipal Participation Authorized. – A municipality may, but is not required to, participate in the right‑of‑way and construction cost of a State transportation improvement approved by the Board of Transportation under G.S. 143B‑350(f)(4) that is located in the municipality.
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SECTION 3.21.  G.S. 143‑138 reads as rewritten:
"§ 143‑138.  North Carolina State Building Code.
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(e)	Effect upon Local Codes. – Except as otherwise provided in this section, the North Carolina State Building Code shall apply throughout the State, from the time of its adoption. Approved rules shall become effective in accordance with G.S. 150B‑21.3. However, any political subdivision of the State may adopt a fire prevention code and floodplain management regulations within its jurisdiction. The territorial jurisdiction of any municipality or county for this purpose, unless otherwise specified by the General Assembly, shall be as follows: Municipal jurisdiction shall include all areas within the corporate limits of the municipality; county jurisdiction shall include all other areas of the county. No such code or regulations, other than floodplain management regulations and those permitted by G.S. 160D‑1128, shall be effective until they have been officially approved by the Building Code Council as providing adequate minimum standards to preserve and protect health and safety, in accordance with the provisions of subsection (c) above. Local floodplain regulations may regulate all types and uses of buildings or structures located in flood hazard areas identified by local, State, and federal agencies, and include provisions governing substantial improvements, substantial damage, cumulative substantial improvements, lowest floor elevation, protection of mechanical and electrical systems, foundation construction, anchorage, acceptable flood resistant materials, and other measures the political subdivision deems necessary considering the characteristics of its flood hazards and vulnerability. In the absence of approval by the Building Code Council, or in the event that approval is withdrawn, local fire prevention codes and regulations shall have no force and effect. Provided any local regulations approved by the local governing body which are found by the Council to be more stringent than the adopted statewide fire prevention code and which are found to regulate only activities and conditions in buildings, structures, and premises that pose dangers of fire, explosion or related hazards, and are not matters in conflict with the State Building Code, may be approved. Local governments may enforce the fire prevention code of the State Building Code using civil remedies authorized under G.S. 143‑139, 153A‑123, and 160A‑175. If the Commissioner of Insurance or other State official with responsibility for enforcement of the Code institutes a civil action pursuant to G.S. 143‑139, a local government may not institute a civil action under G.S. 143‑139, 153A‑123, or 160A‑175 based upon the same violation. Appeals from the assessment or imposition of such civil remedies shall be as provided in G.S. 160D‑1127.
A local government may not adopt any ordinance in conflict with the exemption provided by subsection (c1) of this section. No local ordinance or regulation shall be construed to limit the exemption provided by subsection (c1) of this section.
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SECTION 3.22.  G.S. 143‑215.1 reads as rewritten:
"§ 143‑215.1.  Control of sources of water pollution; permits required.
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(f)	Local Permit Programs for Sewer Extension and Reclaimed Water Utilization. – Municipalities, counties, local boards or commissions, water and sewer authorities, or groups of municipalities and counties may establish and administer within their utility service areas their own general permit programs in lieu of State permit required in G.S. 143‑215.1(a)(2), (3), and (8) above, for construction, operation, alteration, extension, change of proposed or existing sewer system, subject to the prior certification of the Commission. For purposes of this subsection, the service area of a municipality shall include only that area within the corporate limits of the municipality and that area outside a municipality in its extraterritorial jurisdiction where sewer service or a reclaimed water utilization system is already being provided by the municipality to the permit applicant or connection to the municipal sewer system or a reclaimed water utilization system is immediately available to the applicant; the service areas of counties and the other entities or groups shall include only those areas where sewer service or a reclaimed water utilization system is already being provided to the applicant by the permitting authority or connection to the permitting authority's system is immediately available. For purposes of this subsection, the term "extraterritorial jurisdiction" means the boundaries of the area over which a municipality was exercising extraterritorial planning jurisdiction under Article 19 of Chapter 160A of the General Statutes, or its successor Chapter 160D of the General Statutes, prior to the municipality's relinquishment of jurisdiction over the area on or before January 1, 2025. No later than the 180th day after the receipt of a program and statement submitted by any local government, commission, authority, or board the Commission shall certify any local program that does all of the following:
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SECTION 3.23.  G.S. 153A‑317.14 reads as rewritten:
"§ 153A‑317.14.  Extension of economic development and training districts.
(a)	Standards. – A board of commissioners may by resolution annex territory to an economic development and training district upon finding that:
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SECTION 3.24.  G.S. 160A‑176.1 reads as rewritten:
"§ 160A‑176.1.  Ordinances effective in Atlantic Ocean.
(a)	A city may adopt ordinances to regulate and control swimming, surfing and littering in the Atlantic Ocean adjacent to that portion of the city within its boundaries; provided, however, nothing contained herein shall be construed to permit any city to prohibit altogether swimming and surfing or to make these activities unlawful.
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SECTION 3.25.  G.S. 160A‑176.2 reads as rewritten:
"§ 160A‑176.2.  Ordinances effective in Atlantic Ocean.
(a)	A city may adopt ordinances to regulate and control swimming, personal watercraft operation, surfing and littering in the Atlantic Ocean and other waterways adjacent to that portion of the city within its boundaries; provided, however, nothing contained herein shall be construed to permit any city to prohibit altogether swimming or surfing or to make these activities unlawful.
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SECTION 3.26.  G.S. 160A‑296 reads as rewritten:
"§ 160A‑296.  Establishment and control of streets; center and edge lines.
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SECTION 3.27.  G.S. 160A‑299 reads as rewritten:
"§ 160A‑299.  Procedure for permanently closing streets and alleys.
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(d)	This section shall apply to any street or public alley within a city that has been irrevocably dedicated to the public, without regard to whether it has actually been opened. This section also applies to unopened streets or public alleys that are shown on plats but that have not been accepted or maintained by the city, provided that this section shall not abrogate the rights of a dedicator, or those claiming under a dedicator, pursuant to G.S. 136‑96.
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SECTION 3.28.  G.S. 160A‑340.2 reads as rewritten:
"§ 160A‑340.2.  Exemptions.
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(c)	The provisions of G.S. 160A‑340.1, 160A‑340.3, 160A‑340.4, 160A‑340.5, and 160A‑340.6 do not apply to a city or joint agency providing communications service as of January 1, 2011, provided the city or joint agency limits the provision of communications service to any one or more of the following:
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(3)	The following service areas:
a.	For the joint agency operated by the cities of Davidson and Mooresville, the service area is the combined areas of the city of Cornelius; the town of Troutman; the town of Huntersville; the unincorporated areas of Mecklenburg County north of a line beginning at Highway 16 along the west boundary of the county, extending eastward along Highway 16, continuing east along Interstate 485, and continuing eastward to the eastern boundary of the county along Eastfield Road; and the unincorporated areas of Iredell County south of Interstate 40, excluding the City of Statesville and the extraterritorial jurisdiction of the City of Statesville. For purposes of this sub‑subdivision, the term "extraterritorial jurisdiction" means the boundaries of the area over which the City of Statesville was exercising extraterritorial planning jurisdiction under Article 19 of Chapter 160A of the General Statutes, or its successor Chapter 160D of the General Statutes, prior to the City's relinquishment of jurisdiction over the area on or before January 1, 2025.
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SECTION 3.29.  This Part shall have no effect on the extraterritorial jurisdiction of law enforcement officers as authorized in Chapter 77 of the General Statutes, G.S. 15A‑402, 20‑38.2, 160A‑286, or any local act or provision of general law.
SECTION 3.30.  This Part becomes effective January 1, 2025.

PART iV. eFFECTIVE DATE
SECTION 4.1.  Except as otherwise provided, this act is effective when it becomes law.