Amends GS 162A-201. Incorporates the definition of existing development into the definition of capital rehabilitation project, except now refers to those land subdivisions, structures, and land uses in existence at the start of the system development fee analysis (was, start of the written analysis process of GS 162A-205). Amends new development (subsection (6)), further separating its subdivisions to now include: (a) the subdivision of land; (b) initial construction on undeveloped property that increases the number of service units; (c) any use or extension of the use of land which increases the number of service units; and (d) reconstruction, redevelopment, conversion, structural alteration, relocation, or enlargement of any structure on developed property which required expansion of capacity (previously subdivision (b) conflated subdivisions (b) and (d), and included construction, reconstruction, redevelopment, conversion, structural alteration, relocation, or enlargement of any structure that increases the number of service units, with no distinction as to undeveloped or developed property). Makes technical change to system development fee.

Amends GS 162A-213 regarding time for collection of system development fees based on the category of new development. Establishes a default time, providing that if a resolution or ordinance establishing the system development fee is silent, the system development fee is to be collected at the time water or sewer service is committed by the local governmental unit. Additionally, specifies that the amount of the system development fee to be imposed is the system development fee in effect on the date the new development action occurs.

Modifies the specified collection times for new development to reflect distinctions between the subdivisions of the term's definition, as amended in GS 162A-201(6). For new development included under subdivision (6)a., requires the local government entity to specify in the resolution or ordinance adopting the system development fee which event, either the time of plat recordation or when water or sewer service is committed to the local governmental unit,  the system development fee is to be collected (previously, collection at the later of the events). For new development included under subdivisions (6)b. and c., requires the local government to specify in the resolution or ordinance establishing the system development fee which event, either the time of application for connection of the individual unit of development to the services or facilities or when the water or sewer service is committed by the local governmental unit, the system development fee is to be collected (previously, collection at the earlier of the events). For new development included under subdivision (6)d., requires the local governmental unit to collect the system development fee at the time of issuance of building inspection permits, and requires notification of permit issuance if the entity issuing the permit is not the unit collecting the fee.

Amends GS 162A-203 to specify that a local governmental unit cannot adopt or impose a system development fee for water or sewer service on new development except consistent with Article 8 (previously did not specifically prohibit imposing the fee, and did not limit the provision to new development).

Amends GS 162A-205 to establish that new development only includes the new development occurring after the date a local government begins the written analysis process required by GS 162A-205, no more than one year prior to the adoption of a system development fee (language previously set out in the term's definition in GS 162A-201; now applying only to this statute).

Amends GS 162A-209 to require the governing body of a local government unit to conduct a public hearing prior to adoption of the system development fee, only upon expiration of the period for posting the proposed analysis (previously required the hearing prior to consideration of adoption of the system development fee analysis with any modifications or revisions). Now requires 10 days' published notice, but no more than 25 days' published notice, and allows publication to the website in addition to newspaper publication.

Applies to fees imposed on or after July 1, 2019.