Senate committee substitute deletes the content of the 3rd edition and now provides the following.

Makes organizational changes to GS 162A-213, regarding system development fees. Modifies the provisions related to the timing of the collection of system development fees. The new timing provisions are as follows. For new development involving the subdivision of land, the fees must be collected at the later of either (1) the time of application for a building permit (was, at the time of plat recordation) or (2) when water or sewer service is committed by the local governmental unit. Adds new provisions to specify that if the system development fee is collected under subdivision (a)(1) and the local governmental unit that charges or assessed the system development fee is different from the local governmental unit issuing the building permit, the local governmental unit issuing the building permit must first require proof of collection of the system development fee. Provides that no system development fee may be assessed with respect to new development for which a system development fee has been collected at the time of plat recordation involving the subdivision of land and the amount of capacity associated with that payment of the system development fee has not increased at the time of the application for the building permit. Allows a system development fee to be charged if capacity has increased in the amount of the difference. Effective January 1, 2021, and applies to system development fees collected on or after that date.

Amends GS 162A-211 to add new subsection (a1), stating that revenue from system development fees calculated using the combined cost method may be expended for previously completed capital improvements for which capacity exists and for capital rehabilitation projects. Effective July 1, 2020, and applies to system development fees expended or encumbered on or after that date.

Adds new Sections 4(a) through 4(e), which direct the Department of Environmental Quality (DEQ) to adopt rules amending the Permitting by Regulation for Building Sewer Systems Rule to specify that if a building sewer serves a single building, the permit also includes a building sewer that serves an accessory building on the same lot that is connected to the building sewer for the main building, and also a sewer shared between a main building and an accessory building, as long as certain regulatory criteria are met. Defines Permitting by Regulation for Building Sewer Systems Rule to mean 15A NCAC 02T .0303. Defines accessory building, building sewer, and lot. Requires DEQ to implement these changes until the new rule is adopted. Effective when it becomes law and applies to common sewer lines in existence on, or constructed on or after, the effective date, which are shared by accessory dwelling units or accessory residential buildings and a primary residence. 

Changes both of the act's titles.