Senate committee substitute to the 6th edition makes the following changes.

Removes the following provisions:

• New GS 160D-1504 (governing local government requirements for pedestrian facilities and roadway improvements in extraterritorial jurisdiction).
• The changes to the mining permit process in GS 74-49 through GS 74-51.

Modifies Section 18 as follows.

Adds Orange County as one of the locations of UNC construction projects that are exempted from the provisions of GS Chapter 160D (zoning).

Adds the following new content:

Section 2.5.

Expands the actions in which the court may impose reasonable attorneys’ fees under GS 6-21 to include trespass upon real property and claims for physical damages or economic or monetary loss due the negligence or deficiency in surveying or platting against a professional land surveyor or any person acting under the surveyor's supervision and control.

Section 5.

Expands the places a culinary ABC permit may be issued under GS 18B-1001(11) to include food businesses and eating establishments. Makes technical change.

Section 12.

Removes new GS 160A-205.8, which would have prevented a city from adopting or enforcing an ordinance that prohibits or restricts, or has the effect of prohibiting or restricting, a property owner from displaying a flag of the United States of America or the State of North Carolina, including prohibiting or restricting the size of the flag or the height of any associated flagpole, on the property owner's property. Instead, codifies GS 160A-205.8’s requirements of written findings of fact for any restrictions on those flags into GS 144-7, which generally prevents a local government from banning an official governmental flag from being flown. Makes conforming change.

Section 22.

Permits contracts pertaining to sale or purchase of capacity, output, power or energy from a project under GS 159B-5 (joint ownership of a project) or GS 159B-12(a) (sale of capacity and output by a joint agency) to be renewed or extended by the joint agency and the member municipality for additional periods not to exceed 50 years from the date of expiration of the preceding term. Makes conforming and clarifying changes. Makes conforming change to GS 159B-11 (general powers of joint agencies). Extends the term of a support contract under GS 159B-12(b) and those energy and aid contracts described in GS 159B-12(c) from 30 years to 50 years. Allows renewal or extension of such contracts for additional periods not exceeding 50 years.

Applies to contracts executed before, on or after Section 22 becomes law.

Section 23.

Modifies Section 5.1 of SL 2024-44 (modernizing wastewater permitting to support environmentally sound economic development) as follows. Now specifies that role of the EPA in reviewing the rules required under the section is to provide input on those rules (currently, rules are submitted to EPA for approval). Sets the time for the Environmental Management Commission (EMC) to initiate the process for temporary and permanent rules as within 60 days after EPA informs the State that rules must be formally adopted prior to submittal as a program revision for EPA approval (currently, that process must be initiated within 20 days after EPA approval). Authorizes the Department of Environmental Quality (DEQ) to require an applicant to use different modeling upon issuing findings of fact that demonstrate that the model initially used by the applicant is unsuitable for the particular discharge and receiving water. Specifies that all requirements of a National Pollutant Discharge Elimination System (NPDES) permit must be met for discharges to low flow or zero flow receiving waters. Requires an applicant to submit simple modeling to support that the eight listed limits are being met and that a diminishment (Sag) of dissolved oxygen of more than 0.1mg/l is not projected to occur in the waters receiving the effluent. Allows DEQ to require an applicant to use different modeling upon issuing findings of fact that demonstrate that the model initially used by the applicant is unsuitable for the particular discharge and receiving water. Further allows DEQ to require an applicant to use different modeling upon issuing findings of fact that demonstrate that the model initially used by the applicant is unsuitable for the particular discharge and receiving water in those instances when an applicant requests less stringent effluent limits than those described. Makes technical changes. Makes conforming changes to the deadlines set forth for the Wastewater Permit Working Group (Working Group). Specifies that the temporary and permanent rules adopted under Section 23 are not subject to the financial limitations on rules in GS 150B-21.3(b1),(b2), and (b3) and GS 150B-19.4, as enacted by SL 2025-82. Effective retroactive to July 8, 2024.

Section 24.

Requires the EMC to implement the Permitting by Regulation Rule (15A NCAC 02T .0113) so that provided no ponding or runoff of discharge water occurs, discharges to the land surface of less than 5,000 gallons per day of water from fractional vapor-compression distillation of potable water, will be deemed to be permitted, and it will not be necessary for DEQ to issue individual permits or coverage under a general permit for construction or operation of these disposal systems provided the system does not result in any violations of surface water or groundwater standards, there is no direct discharge to surface waters, and all criteria required for the specific system are met. Sunsets the rule when permanent rules are effective. Requires the EMC to adopt rules consistent with these provisions. Applies the APA’s effective date provisions triggered when 10 or more written objections are received to the rule and exempts those rules from the financial requirements of GS 150B-21.3(b3) and GS 150B-19.4, as enacted by SL 2025-82.

Section 25.

Requires the Commission for Public Health (Commission) to implement the Facility Oversight Rule (15A NCAC 18C .1303) as follows. Allows the Department to grant written approval to reduce the standard frequency of operator oversight visits required under the North Carolina Administrative Code to not less than once per calendar month for supplemental treatment facilities if the supplemental treatment facility meets all of four listed conditions. Sunsets the rule when permanent rules are effective. Requires the Commission to adopt rules consistent with these provisions. Applies the APA’s effective date provisions triggered when 10 or more written objections are received to the rule and exempts those rules from the financial requirements of GS 150B-21.3(b3) and GS 150B-19.4, as enacted by SL 2025-82.

Section 26.

Adds new Article 10, “Racing Facility and Racetrack Nuisance Immunity” to GS Chapter 99E, which specifies that a racing facility (defined) is not subject to any action brought by a surrounding property owner under any nuisance or taking cause of action if the developer of the racing facility obtained all permits required for construction of the racing facility and established a vested right in the development of the property or contiguous group of properties where the racing facility is located before the surrounding property owner either purchased the real property or constructed any building in the area of the racing facility (defined). Applies to actions commenced on or after Section 26 becomes law.

Section 27.

Requires occupancy licensing boards to verify each applicant for licensure’s social security number under GS 93B-14. Authorizes release of applicant information to the Social Security Administration for verification.

Section 28.

Expands local agency as defined in GS 105A-2(6) of the Setoff Debt Collection Act to include a public works authority or public utilities commission created by a local act of the NCGA.

Section 29.

Specifies, in GS 160D-108, that a vested right obtained by permit or other local government approval does not preclude the use or extinguish the existence of any other vested right or use attached to the property.

Amends GS 160D-705 by adding that if a special use permit expires and does not vest, the current zoning classification or regulation for the property applies.

Amends GS 160D-203, which provides that when land is within the planning and development jurisdiction of more than one local government, the local governments may, with the landowners’ consent, assign exclusive planning and development regulation jurisdiction to any one of those local governments; specifies that this includes all development phases on the land (was, the entire parcel). Adds that if such an agreement, or landowner consent, does not exist, then the landowner may elect the planning and development regulations of the local government where the majority of the total acreage of land is situated. Defines landowner or owner as all titleholders of record owing an interest in the land. Makes additional conforming and clarifying changes.

Section 30.

Amends GS 130A-343 (approval of on-site subsurface wastewater systems), which authorizes certain wastewater subsurface dispersal products for use in traffic-related areas if a licensed professional engineer certifies that the product has been designed with a compatible load rating and the product manufacturer has approved the product for use in traffic-rated areas. Requires wastewater permits issued under this provision to be issued by a licensed professional engineer or by an authorized on-site wastewater evaluator. Excludes Department of Transportation rated areas from “traffic related areas” but does include driveways and private parking areas with impervious or pervious pavement areas.

Section 31.

Contains a severability clause.

Effective when the act becomes law, except as otherwise provided.