Enacts new GS 153A-303.1 allowing a board of commissioners, by resolution after holding a public hearing, to remove territory from a service district, upon finding that (1) 100% of the owners of real property in the territory to be removed have petitioned for removal; (2) the territory to be removed no longer requires the services, facilities, or functions financed, provided, or maintained for the district; and (3) the service district was created only to provide sewage collection and disposal systems or water supply and distribution systems, or both. Requires the board to file a report concerning the proposed changes before holding the public hearing. Contains notice requirements for the public hearing. Provides that the resolution reducing the district boundaries takes effect at the beginning of the fiscal year commencing after its passage.