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; to eliminate municipal extraterritorial jurisdiction; and to prohibit minimum lot sizes.
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.  Public school sites in commercial zones.
In areas zoned for commercial use, zoning regulations 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 as defined in G.S. 115C‑5."
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.
…
(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.
…."
SECTION 2.2.  G.S. 160D‑705 reads as rewritten:
"§ 160D‑705.  Quasi‑judicial zoning decisions.
…
(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.
…."
SECTION 2.3.  This Part is effective when it becomes law.

part iii. remove extraterritorial jurisdiction authority
SECTION 3.1.(a)  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.
…."
SECTION 3.1.(b)  G.S. 160D‑202 reads as rewritten:
"§ 160D‑202.  Transfer or relinquishment of jurisdiction.

	

(f)	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.
(g)	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.
(h)	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.
(i)	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.
	
(k)	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 3.1.(c)  G.S. 160D‑307 is repealed.
SECTION 3.1.(d)  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.
…."
SECTION 3.1.(e)  G.S. 160D‑903(c) is repealed.
SECTION 3.1.(f)  G.S. 160D‑912 reads as rewritten:
"§ 160D‑912.  Outdoor advertising.
…
(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.
…."
SECTION 3.1.(g)  G.S. 160D‑925(e) is repealed.
SECTION 3.1.(h)  G.S. 160D‑1102(a) reads as rewritten:
"(a)	A local government may create an inspection department and may appoint inspectors who may be given appropriate titles, such as building inspector, electrical inspector, plumbing inspector, housing inspector, zoning inspector, heating and air‑conditioning inspector, fire prevention inspector, or deputy or assistant inspector, or another title generally descriptive of the duties assigned. Every local government shall perform the duties and responsibilities set forth in G.S. 160D‑1104 either by (i) creating its own inspection department, (ii) creating a joint inspection department in cooperation with one or more other units of local government, pursuant to Part 1 of Article 20 of Chapter 160A of the General Statutes, (iii) contracting with another unit of local government for the provision of inspection services pursuant to Part 1 of Article 20 of Chapter 160A of the General Statutes, or (iv) arranging for the county in which a city is located to perform inspection services within the city's jurisdiction as authorized by G.S. 160D‑1104. Every local government shall designate a person responsible for the daily oversight of the local government's duties and responsibilities under G.S. 160D‑1104."
SECTION 3.1.(i)  G.S. 160D‑1125(c) reads as rewritten:
"(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."
SECTION 3.1.(j)  G.S. 113A‑208(d) reads as rewritten:
"(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."
SECTION 3.1.(k)  G.S. 130A‑317(d) reads as rewritten:
"(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:
…."
SECTION 3.1.(l)  G.S. 136‑55.1(b) reads as rewritten:
"(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 3.1.(m)  G.S. 136‑63(b) reads as rewritten:
"(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 3.1.(n)  G.S. 136‑66.3(a) reads as rewritten:
"(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."
SECTION 3.1.(o)  G.S. 143‑138(e) reads as rewritten:
"(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."
SECTION 3.1.(p)  G.S. 143‑215.1(f) reads as rewritten:
"(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:
…."
SECTION 3.1.(q)  G.S. 153A‑317.14(a)(6) is repealed.
SECTION 3.1.(r)  G.S. 160A‑58.4 reads as rewritten:
"§ 160A‑58.4.  Extraterritorial powers.
Satellite corporate limits shall not be considered a part of the city's corporate limits for the purposes of abatement of public health nuisances pursuant to G.S. 160A‑193. However, a city's power to regulate land use pursuant to Chapter 160D of the General Statutes or to abate public health nuisances pursuant to G.S. 160A‑193, shall be the same within satellite corporate limits as within its primary corporate limits."
SECTION 3.1.(s)  G.S. 160A‑176.1(a) reads as rewritten:
"(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."
SECTION 3.1.(t)  G.S. 160A‑176.2(a) reads as rewritten:
"(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."
SECTION 3.1.(u)  G.S. 160A‑296(a1) is repealed.
SECTION 3.1.(v)  G.S. 160A‑299(d) reads as rewritten:
"(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."
SECTION 3.1.(w)  This section is effective as follows:
(1)	For counties with a population of 25,000 or less according to the last federal decennial census, October 1, 2024.
(2)	For counties with a population between 25,001 and 50,000 according to the last federal decennial census, October 1, 2025.
SECTION 3.2.(a)  No city may expand its extraterritorial jurisdiction beyond the territory that the city was exercising extraterritorial jurisdiction authority upon as of June 1, 2023.
SECTION 3.2.(b)  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 3.3.(a)  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 be determined by the county in which the area lies, not the city which has been exercising extraterritorial jurisdiction over the area, and becomes effective as follows:
(1)	For counties with a population of 25,000 or less according to the last federal decennial census, October 1, 2024.
(2)	For counties with a population between 25,001 and 50,000 according to the last federal decennial census, October 1, 2025.
SECTION 3.3.(b)  Nothing in this Part shall be construed as prohibiting a city from relinquishing jurisdiction over an area prior to the effective date set forth in Section 3.3(a) of this act 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 3.3.(c)  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 the earlier of the effective date of the land use regulations adopted by the county with jurisdiction over the area or 60 days after the effective date set forth in Section 3.3(a) of this act for that county. If the sixtieth day falls on a holiday or weekend, the next business day shall be treated as the sixtieth day. The county may hold hearings and take other measures that may be required in order to adopt county regulations for the area prior to the effective date set forth in Section 3.3(a) of this act for that county.
(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 the city 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. At least 180 days prior to the effective date set forth in Section 3.3(a) of this act for the county in which any portion of a city lies, the city shall notify the county of the following:
a.	The boundaries of the city's extraterritorial jurisdiction in that county.
b.	The existing land use regulations applying to that extraterritorial jurisdiction in that county, including zoning and overlay maps.
c.	Any pending requests for amendments or other changes to the existing land use regulations applying to that extraterritorial jurisdiction in that county.
d.	Any vested rights with respect to properties in the extraterritorial jurisdiction in that county.
SECTION 3.3.(d)  This section is effective when it becomes law.
SECTION 3.4.(a)  This Part shall have no effect on the extraterritorial jurisdiction of law enforcement officers as authorized in any of the following:
(1)	Chapter 77 of the General Statutes.
(2)	G.S. 15A‑402.
(3)	G.S. 20‑38.2.
(4)	G.S. 160A‑286.
(5)	Any local act or provision of general law.
SECTION 3.4.(b)  This section is effective when it becomes law.
SECTION 3.5.  Except as otherwise provided, this Part is effective when it becomes law.

PART iV. minimum lot sizes
SECTION 4.1.  G.S. 160D‑702 reads as rewritten:
"§ 160D‑702.  Grant of power.
(a)	A local government may adopt zoning regulations. Except as provided in subsections (b) and (c) of this section, a zoning regulation may regulate and restrict the height, number of stories, and size of buildings and other structures; the percentage of lots that may be occupied; the size of yards, courts, and other open spaces; the density of population; the location and use of buildings, structures, and land. Any calculation of required open space shall include wetlands, stream buffers, and stormwater facilities as open space. A local government may regulate development, including floating homes, over estuarine waters and over lands covered by navigable waters owned by the State pursuant to G.S. 146‑12. A zoning regulation shall provide density credits or severable development rights for dedicated rights‑of‑way pursuant to G.S. 136‑66.10 or G.S. 136‑66.11. Where appropriate, a zoning regulation may include requirements that street and utility rights‑of‑way be dedicated to the public, that provision be made of recreational space and facilities, and that performance guarantees be provided, all to the same extent and with the same limitations as provided for in G.S. 160D‑804 and G.S. 160D‑804.1.
…
(c)	A zoning or other development regulation shall not do any of the following:
(1)	Set a minimum square footage of any structures subject to regulation under the North Carolina Residential Code for One‑ and Two‑Family Dwellings.
(2)	Set a maximum parking space size larger than 9 feet wide by 20 feet long unless the parking space is designated for handicap, parallel, or diagonal parking.
(3)	Set a minimum lot size greater than 8,700 square feet for structures subject to the North Carolina Residential Code for One‑ and Two‑Family Dwellings. A local government may enforce regulations that affect the size and configuration of such lots, including regulations for building setbacks, regulations for on‑site wastewater systems, regulations authorized by Part 2 of Article 9 of this Chapter, and regulations related to the requirements of applicable safety codes adopted under G.S. 143‑138.
(4)	Limit density in any district that allows for structures subject to the North Carolina Residential Code for One‑ and Two‑Family Dwellings below five structures per acre.
(d)	Subdivisions (3) and (4) of subsection (c) of this section shall not apply to a bona fide farm purpose as described in G.S. 160D‑903 or an open space land purpose as described in Article 9 of this Chapter."
SECTION 4.2.  G.S. 160D‑804 is amended by adding a new subsection to read:
"(j)	Minimum Lot Size. – The regulation shall comply with G.S. 160D‑702(c) and (d)."
SECTION 4.3.  This Part becomes effective October 1, 2024.

EFFECTIVE DATE
SECTION 5.  Except as otherwise provided, this act is effective when it becomes law.