Senate committee substitute to the 2nd edition makes the following changes.

Removes Section 15, which amended GS 160D-944 by adding new criteria for the designation of a historic district. 

Removes Section 16, which amended GS 160D-102 by amending the definition of dwelling unit and amended GS 160D-703, adding a new requirement for local governments to classify residential zoning districts based only on the number of dwelling units allowed per acre and prohibits classification based on the minimum lot size allowed. 

Section 8.5

Amends proposed GS 130A-295.2 by exempting an owner or operation of a permitted Small or Large Type 1, 2, or 3 compost facility from financial assurance requirements; removes the conditions that had to be met for the exemption, no longer specifies that the Department has authority to require financial assurance for specified facilities, removes provision about Type 4 facilities, and removes the provision allowing the Department to release or authorize cancellation of a financial assurance instrument due to closure of the facility.  

Section 14

Makes the Section concerning review periods for local government approvals and decisions only applicable to local governments with a population of 20,000 or more people.

Adds the following.

Section 9.1

Amends the definition of offshore waters in GS 143-215.94BB by replacing Gulf of Mexico with Gulf of America.

Section 9.2

Amends GS 25-9-102, GS 143-143.9, and GS 143-145 by removing the current definition of manufactured home and now defining it as it is defined in the specified federal law. Amends GS 20-58.4A and GS 41-56 by replacing the term mobile home with manufactured home. Makes a technical change in GS 24-1.1E. Amends GS 47-20.6 and GS 41-56 by adding that manufactured home is defined as it is defined in the specified federal law. Amends GS 47H-1 by making a clarifying change. Amends GS 58-38-90 by adding a cross-reference to the definition of manufactured home. Effective July 1, 2026.

Section 15

Adds new Article 11, Rural Recreational and Heritage Event Nuisance Immunity, in GS Chapter 99E, providing as follows. Specifies that a facility is not subject to any action brought by a surrounding property owner under any nuisance or taking cause of action arising from a rural recreational and heritage event at the facility if the following were true as of the date that the surrounding property owner purchased property in the area of the facility, or if the surrounding property owner owned that property before events were first conducted at the facility, as of the date that the surrounding property owner first constructed a building on that property: (1) the facility was lawfully established and complying with laws, ordinances, and permitting requirements applicable when the facility was established, and (2) one or more rural recreational and heritage events have been conducted at the facility within 24 months preceding the date on which the surrounding property owner purchased the property or constructed the building. Defines area of the facility as the area within a 3-mile radius of the perimeter of the property or a contiguous group of properties where a facility is located. Also defines facility, rural recreational, and heritage event.

Section 16

Amends GS 160D-1110.1 as follows. Amends the at-risk building foundation permit so that it also authorizes an applicant to proceed with any associated trade permit necessary to support the authorized foundation construction. Makes conforming changes.

Section 16.5

Amends GS 115C-518, concerning local board of education disposal of any building site or other real property or personal property owned or held by the board that is unnecessary or undesirable for public school purposes, as follows. Adds that for property disposed of under this statute, local boards of education cannot impose or enforce a restriction on the future use of the property that prohibits use by a public school unit or nonpublic school. Restrictions in violation of this are void and unenforceable.

Voids a restriction existing on the effective date of this section that prohibits the use of property disposed in accordance with GS 115C-518 by a public school unit or nonpublic school.

Section 29.4

Amends GS 47C-3-121 (applicable to condominiums) and GS 47F-3-121 (applicable to planned communities) by removing the exception to the prohibition on regulating or prohibiting the display of an American or North Carolina Flag no greater than 4x6 feet displayed in the appropriate manner, for restrictions that were written on the first page of the instrument or conveyance in the specified format and messaging.