Enacts Part 7A, Annexation of Enclaves, to Article 4A of GS Chapter 160A, authorizing a municipal governing board to extend the municipal corporate limits to include any qualifying enclave as provided in new Part 7A.

Defines enclave to mean an unincorporated area of real property enclosed completely within and contiguously bounded on all sides by (1) the primary corporate boundaries of one or more incorporated municipalities or (2) the primary corporate boundaries of one or more incorporated municipalities and either (a) the boundary line of a State, county, or other unit of local government; (b) a military installation; (c) a State or national park or forest; (d) river, lake, pond, or other body of water; (e) a railroad or a public or private street, road, highway, or alley; or (f) a bona fide farm as defined under GS 153A‑340.

Sets qualifications for an enclave to be annexed under new Part 7A, providing that (1) the enclave cannot be a bona fide farm; (2) the enclave must be less than 60 acres in total land area, excluding acreage of any bona fide farm; and (3) the enclave must meet the qualifications of the statute for a period of at least three years from the effective date of annexation provided under new Part 7A.

Establishes that the statute does not prevent the owner(s) of a bona fide farm from consenting to voluntary annexation under Article 4A of GS Chapter 160A.

Directs a municipality exercising authority under new Part 7A to provide all municipal services, including water and sewer services, to the annexed enclave on substantially the same basis and in the same manner as those services are otherwise provided within the municipality. Directs these services to be provided by the municipality on the effective date of the annexation. Requires the municipality to prepare a report as described in GS 160A-58.53 (detailing five requirements for a report concerning the provisions of services to an area proposed to be annexed), setting forth how the municipality intends to make all of its services available on the effective date of annexation. Requires this report to be prepared prior to the public hearing that is required by GS 160A-58.68, set out below. 

Establishes that annexation under Part 7A must be by execution of an interlocal agreement as provided in Part 1 of Article 20 of GS Chapter 20. Directs that the interlocal agreement is to be between the governing boards of the annexing municipality and of the county or counties where the enclave lies. Details the declaration the municipality seeking to annex must adopt prior to entering into an interlocal agreement. Requires the declaration to describe the boundaries of the enclave proposed for annexation, the county or counties with whom the municipality intends to execute the agreement, and set the date for a public hearing. Requires the public hearing to be no less than 60 days and no more than 90 days following the passage of the declaration. Details the requirements of notice of the public hearing. Requires all property owners and residents of the enclave proposed to be annexed and all residents of the municipality to be given an opportunity to be heard. Authorizes the governing board to approve the report, or amend and approve the report, and enter into the interlocal agreement after ten days following the public hearing. Authorizes the board of commissioners of the county or counties where the enclave lies to approve the interlocal agreement after ten days following the public hearing, with or without an additional public hearing. Directs the interlocal agreement to be duly executed by the authorized official upon approval of all affected governing boards. 

Directs that the interlocal agreement is to be recorded as provided by GS 160A-58.61, and fixed with the effective date for annexation as June 30 next following the recording of the interlocal agreement. Provides that from and after the effective date, the territory and its citizens and property are subject to all debts and all laws, ordinances, and regulations in force in the municipality, and are entitled to the same privileges and benefits as other parts of the municipality. 

Allows a municipality considering the annexation of more than one enclave which are not adjacent to one another to untertake simultaneous proceedings for their annexations under authority of Part 7A.

Applies the appeal procedures of GS 160A-58.60 to annexations under Part 7A, with the entering into the interlocal agreement treated as adoption of the annexation ordinance. 

Directs the municipality to report to the Local Government Commission within 30 days after the effective date of annexation on whether all of the services required by GS 160A-57 were available on the effective date of the annexation. Directs the Local Government Commission to notify the municipality, if the Commission determines the services were not delivered in a timely manner, that it may not count any of the residents as part of the population of the municipality for the purpose of receiving State, federal, or county dollars distributed based on population until all of the services are provided.  Further, if the municipality failed to timely deliver either water or sewer services as provided in GS 160A-58.57, requires the municipality to stop any other annexations in progress and not begin any other annexation until the water and sewer services are provided.

Makes conforming changes to GS 160A-58.60 to provide for appeal to annexations under new Part 7A. Adds to the arguments, briefs, and evidence the court can receive to include those intending to show that the property does not qualify as an enclave under new GS 160A-58.66.

Makes conforming changes to GS 160A-58.61 to provide for the recordation of annexations under new Part 7A. 

Amends GS 160A-461 to add a new subsection authorizing an incorporated municipality in the State and any county to enter into an interlocal agreement extending the corporate limits of the municipality to include an enclave as provided in new Part 7A of Article 4A. Makes organizational changes.

Amends GS 160A-464 to add a new subsection detailing the requirements of an interlocal agreement extending the corporate limits of a municipality to include an enclave under new Part 7A of Article 4A. Requires the agreement to: (1) be executed by the officials authorized by the governing board; (2) contain six specifications concerning the enclave, the property owners, the provision of services, and the effective date of annexation; and (3) be recorded as provided by GS 160-58.69.