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.