Senate committee substitute makes the following changes to the 3rd edition.

Enacts new GS 162A-85.4 to authorize a district board to expand to include other political subdivisions provided that the district board and the political subdivisions adopt identical resolutions indicating that the political subdivision will become a participant in the district board. Requires the district board and the political subdivision to hold a minimum of two public hearingsat least 30 days apart before adopting the mutual resolutions. Requires publication ofthe notices of the public hearings in a newspaper of general circulation at least 10 days before the date of each public hearing. Directs the political subdivision to appoint a district member under new GS 162A-85.3(a), upon the adoption of the resolution, if the political subdivision is entitled to an appointment under that section.

Amends new GS 162A-85.13, providing that rates, fees, rents, and charges pledged to the payment of the district's revenue bonds be fixed and revised to provide sufficient revenues to pay for the maintenance, repair, and operating costsof the water or sewerage system (was, just sewerage system).

Amends GS 162A-85.19 to clarify that the governing body of any political subdivision is authorized and empowered to transfer jurisdiction overto a district and lease, lend, sale, grant, or convey in whole or part any existing water or sewerage system, real property, or personal property subject to the approval of the Local Government Commission regarding the disposition of any outstanding debt related to the water system, the sewer system, or both.

Amends GS 162A-85.21 to require that the district board present preliminary plans for any improvement before the final plans are made for the extension (was, location and construction) of any water or sewerage system. Directs the district board to make every effort to cooperate with a county or municipality in the location and construction of any new proposed facility (was, any proposed facility authorized) under proposed Article 5A. Declares that this section does not apply to renovations, repairs, or regular maintenance of water or sewer systems.

Deletes proposed GS 162A-85.9 regarding the determination of the tax rate by the district board.