SYSTEM DEVELOPMENT FEE/CLARIFY TIME OF CHARGE.

View NCGA Bill Details2019-2020 Session
House Bill 873 (Public) Filed Tuesday, April 16, 2019
AN ACT TO CLARIFY THE TIMING OF COLLECTION OF SYSTEM DEVELOPMENT FEES FOR EACH CATEGORY OF NEW DEVELOPMENT.
Intro. by Arp, Boles, McNeill.

Status: Re-ref to Agriculture/Environment/Natural Resources. If fav, re-ref to Finance. If fav, re-ref to Rules and Operations of the Senate (Senate action) (Jun 6 2019)
H 873

Bill Summaries:

  • Summary date: May 1 2019 - More information

    House committee substitute makes the following changes to the 2nd edition.

    Modifies the proposed changes to the definition of new development set forth in GS 162A-201(6). Now defines the term to mean any of the following three actions with respect to real property that increases the availability of service (was, capacity) necessary to serve that development: (a) the subdivision of land; (b) initial construction on undeveloped property; and (c) any use or extension of use of land, including reconstruction, redevelopment, renovation, conversion, structural alteration, relocation, or enlargement of any structure on developed property that increases the number of service units (consolidating subdivision (c) and previously proposed subdivision (d)).

    Makes further modifications to the proposed changes to GS 162A-213 regarding time for collection of system development fees based on the category of new development. Now requires the fee to be collected at the time of plat recordation for new development as defined in GS 162A-201(6)a., as amended (subdivision of land), no longer requiring collection at the later of plat recordation or when water or sewer service is committed by the respective local government unit. Now makes the proposed time of collection provisions previously specified for new development as defined in GS 162A-201(6)d. (now incorporated into GS 162A-201(6)c.) now applicable to all other new development as defined in GS 162A-201(6)b. and c, as amended (previously, provided for collection for new development as previously defined by GS 162A-201(6)b. and c. at the earlier of application for connection of the individual development unit to service or facilities or when water or sewer service is committed by the respective local government unit). Adds to the exceptions to prohibit charging or assessing a fee on new development as defined by GS 162A-201(6)b. or c. if a fee was paid upon recordation of the plat of subdivision in accordance with the act. Maintains the previously provided exceptions, making them applicable to the described new developments, as now defined by GS 162A-201(6)b. or c.

    Specifies that the act applies to system development fees collected on or after July 1, 2019.


  • Summary date: Apr 29 2019 - More information

    House committee substitute makes the following changes to the 1st edition.

    Modifies and adds to the proposed changes to GS 162A-213 regarding time for collection of system development fees based on the category of new development. Maintains existing language regarding the time for collection of system development fees for new development involving land subdivision and new construction development as defined by GS 163A-201(6)a., b. or c., as amended (previously required the resolution or ordinance establishing the fee to specify the time for collection for these types of new development). No longer establishes a default time for collection. Now sets the amount of the system development fee to be imposed to be the system development fee in effect on the date the system development fee is paid (was, on the date the new development action occurs).

    Establishes a new exception from system development fees for new construction development as defined by GS 162A-201(6)b. or c. (as amended includes either initial construction on undeveloped property or any use or extension of use which increases the number of service units) if two criteria are met: (1) the water or sewer lines were installed to the individual unit of development prior to October 1, 2017, or tap fees were paid for the individual unit of development prior to October 1, 2017; and (2) the local governmental unit did not impose a fee for capacity prior to October 1, 2017, or the facility was operated as a county or city public enterprise under Article 15 of GS Chapter 153A or Article 16 of GS Chapter 160A as of October 1, 2017.

    Makes technical changes to the effective date provision.


  • Summary date: Apr 18 2019 - More information

    Amends GS 162A-201. Incorporates the definition of existing development into the definition of capital rehabilitation project, except now refers to those land subdivisions, structures, and land uses in existence at the start of the system development fee analysis (was, start of the written analysis process of GS 162A-205). Amends new development (subsection (6)), further separating its subdivisions to now include: (a) the subdivision of land; (b) initial construction on undeveloped property that increases the number of service units; (c) any use or extension of the use of land which increases the number of service units; and (d) reconstruction, redevelopment, conversion, structural alteration, relocation, or enlargement of any structure on developed property which required expansion of capacity (previously subdivision (b) conflated subdivisions (b) and (d), and included construction, reconstruction, redevelopment, conversion, structural alteration, relocation, or enlargement of any structure that increases the number of service units, with no distinction as to undeveloped or developed property). Makes technical change to system development fee.

    Amends GS 162A-213 regarding time for collection of system development fees based on the category of new development. Establishes a default time, providing that if a resolution or ordinance establishing the system development fee is silent, the system development fee is to be collected at the time water or sewer service is committed by the local governmental unit. Additionally, specifies that the amount of the system development fee to be imposed is the system development fee in effect on the date the new development action occurs.

    Modifies the specified collection times for new development to reflect distinctions between the subdivisions of the term's definition, as amended in GS 162A-201(6). For new development included under subdivision (6)a., requires the local government entity to specify in the resolution or ordinance adopting the system development fee which event, either the time of plat recordation or when water or sewer service is committed to the local governmental unit,  the system development fee is to be collected (previously, collection at the later of the events). For new development included under subdivisions (6)b. and c., requires the local government to specify in the resolution or ordinance establishing the system development fee which event, either the time of application for connection of the individual unit of development to the services or facilities or when the water or sewer service is committed by the local governmental unit, the system development fee is to be collected (previously, collection at the earlier of the events). For new development included under subdivision (6)d., requires the local governmental unit to collect the system development fee at the time of issuance of building inspection permits, and requires notification of permit issuance if the entity issuing the permit is not the unit collecting the fee.

    Amends GS 162A-203 to specify that a local governmental unit cannot adopt or impose a system development fee for water or sewer service on new development except consistent with Article 8 (previously did not specifically prohibit imposing the fee, and did not limit the provision to new development).

    Amends GS 162A-205 to establish that new development only includes the new development occurring after the date a local government begins the written analysis process required by GS 162A-205, no more than one year prior to the adoption of a system development fee (language previously set out in the term's definition in GS 162A-201; now applying only to this statute).

    Amends GS 162A-209 to require the governing body of a local government unit to conduct a public hearing prior to adoption of the system development fee, only upon expiration of the period for posting the proposed analysis (previously required the hearing prior to consideration of adoption of the system development fee analysis with any modifications or revisions). Now requires 10 days' published notice, but no more than 25 days' published notice, and allows publication to the website in addition to newspaper publication.

    Applies to fees imposed on or after July 1, 2019. 


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