Part I.

Enacts new GS 160D-917 to require zoning regulations in areas zoned for commercial use to allow the siting of a school building primarily used for the instruction of students and is under the control of a public school unit.

Part II.

Amends GS 160D-108 by adding that a vested right obtained by permit or other local government approval must not preclude the use or extinguish the existence of any other vested right or use by right attached to the property.

Amends GS 160D-705 by adding that if a special use permit expires and does not vest, the current zoning classification or regulation for the property applies.

Amends GS 160D-203, which provides that when land is within the planning and development jurisdiction of more than one local government, the local governments may, with the landowners’ consent, assign exclusive planning and development regulation jurisdiction to any one of those local governments; specifies that this includes all development phases on the land (was the entire parcel). Adds that if such an agreement, or landowner consent, does not exist, then the landowner may elect the planning and development regulations of the local government where the majority of the total acreage of land is situated. Defines landowner as all titleholders of record owing an interest in the land. Makes additional conforming and clarifying changes.

Part III.

Section 3.1

Amends GS 160D-201 by limiting a city's exercise of powers granted by GS Chapter 160D to within the city's corporate limits, no longer including extraterritorial areas. Amends the following by removing provisions related to extraterritorial jurisdiction and areas: GS 160D-202 (municipal extraterritorial jurisdiction), GS 160D-602 (notice of hearing on proposed zoning map amendments), GS 160D-903 (agricultural uses), GS 160D-912 (outdoor advertising), GS 160D-925 (stormwater control), GS 160D-1125 (enforcement), and GS 113A-208 (regulation of mountain ridge construction by counties and cities). Makes conforming changes to GS 160D-1102 and GS 160A-58.4.

Repeals GS 160D-307, Extraterritorial representation on boards.

Amends GS 130A-317 by defining extraterritorial jurisdiction for purposes of defining the service area of a municipality that has established its own approval program instead of State approval for water system plans, as the boundaries of the area over which a municipality was exercising extraterritorial planning jurisdiction under Article 19 of GS Chapter 160A, or its successor GS Chapter 160D, before the municipality's relinquishment of jurisdiction over the area in accordance with the law.

Removes references to "extraterritorial jurisdiction" in GS 136-55.1 (notice of abandonment of roads), GS 136-63 (change or abandonment of roads), GS 136-66.3 (local government participation in improvements to the State transportation system), GS 143-138 (North Carolina State Building Code), GS 153A-317.14 (extension of economic development and training districts), GS 160A-176.1 and GS 160A-176.2 (ordinances effective in Atlantic Ocean), GS 160A-296 (establishment and control of streets), and GS 160A-299 (procedure for permanently closing streets and alleys).

Amends GS 143-215.1 (control of sources of water pollution; permits required) to define extraterritorial jurisdiction for the purpose of local permit programs for sewer extension and reclaimed water utilization, as the boundaries of the area over which a municipality was exercising extraterritorial planning jurisdiction under Article 19 of GS Chapter 160A, or its successor GS Chapter 160D, before the municipality's relinquishment of jurisdiction over the area in accordance with the law.

Repeals any provision in a local act granting a city the power to exercise extraterritorial planning jurisdiction under Article 19 (Planning and Regulation of Development) of GS Chapter 160A, or its successor, GS Chapter 160D.

Specifies that Section 3.1 applies only to extraterritorial jurisdiction territory of a city in a county as follows: (1) for counties with a population of 25,000 or less, effective October 1, 2026; (2) for counties with a population between 25,001 and 50,000, effective October 1, 2027.

Section 3.2

Prohibits cities from expanding their extraterritorial jurisdiction beyond the territory that the city was exercising extraterritorial jurisdiction authority upon as of June 1, 2025. Requires cities continuing to exercise extraterritorial jurisdiction authority to continue to appoint representation on boards according to GS 160D-307.

Section 3.3

Provides that the relinquishment of jurisdiction over an area that a city is regulating under the authority of extraterritorial planning jurisdiction will be determined by the county in which the area lies, not the city which has been exercising extraterritorial jurisdiction over the area, and becomes effective as follows: (1) for counties with a population of 25,000 or less, effective October 1, 2026, and (2) for counties with a population between 25,001 and 50,000, effective October 1, 2027. Specifies that Part does not prohibit a city from relinquishing jurisdiction over an area prior to these effective dates so long as the city complies with the provisions of Article 19 of GS Chapter 160A or its successor, GS Chapter 160D.

Requires that upon relinquishment of jurisdiction over an area a city is regulating under the authority of extraterritorial planning jurisdiction: (1) the city regulations and powers of enforcement remain in effect until the earlier of the effective date of the land use regulations adopted by the county with jurisdiction over the area or 60 days after the effective date set above for that county and allows the county to have hearings and take other measures required to adopt county regulations for the area prior to the relevant effective date and (2) any person who has acquired vested rights under a permit, certificate, or other evidence of compliance issued by the city may exercise those rights as if no change of jurisdiction had occurred, and allows the county acquiring jurisdiction to take any action regarding the permit, certificate, or other evidence of compliance that could have been taken by the city surrendering jurisdiction pursuant to the city ordinances and regulations. Specifies that except as provided in this section, any building, structure, or other land use in a territory over which a county has acquired jurisdiction is subject to the county’s ordinances and regulation. Requires the city to notify the county, at least 180 days before the relevant effective date of: (1) the boundaries of the city's extraterritorial jurisdiction in that county; (2) the existing land use regulations applying to that extraterritorial jurisdiction in that county, including zoning and overlay maps; (3) any pending requests for amendments or other changes to the existing land use regulations applying to that extraterritorial jurisdiction in that county; and (4) any vested rights with respect to properties in the county’s extraterritorial jurisdiction.

Section 3.4

Specifies that this Part has no effect on the extraterritorial jurisdiction of law enforcement officers.