GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2025 H 2 HOUSE BILL 559 Committee Substitute Favorable 4/15/25 Short Title: Make Elevators Great Again.-AB (Public) Sponsors: Referred to: March 31, 2025 *H559 -v-2* A BILL TO BE ENTITLED 1 AN ACT TO MAKE VARIO US FEE MODIFICATIONS TO THE STATE LABOR 2 REGULATIONS. 3 Whereas, the North Carolina Department of Labor's Elevator and Amusement Device 4 Bureau is a fully receipt-supported operation that receives no State appropriations and is currently 5 facing a backlog of over 3,000 overdue inspections and critical staffing shortages, particularly in 6 North Carolina's fast-growing urban regions; and 7 Whereas, outdated statutory fee caps have constrained the Department's ability to 8 modernize operations, attract qualified inspectors, and deliver timely inspections; and 9 Whereas, authorizing modest, common-sense fee adjustments will empower the 10 Department to eliminate the inspection backlog, raise inspector pay to market rates, and launch 11 an in-house apprenticeship program to train the next generation of safety professionals; and 12 Whereas, this Act ensures that all fee increases remain capped, transparent, and tied 13 to inflation, while keeping the Elevator and Amusement Device Bureau fully receipt-supported, 14 free from new taxpayer burdens, and operated with the accountability and efficiency of a small 15 business; and 16 Whereas, it is in North Carolina's best interest to modernize the Department in a way 17 that is accountable, fiscally responsible, and tailored to the needs of our fast-growing State; Now, 18 therefore, 19 The General Assembly of North Carolina enacts: 20 21 PART I. FEE MODIFICATIONS 22 SECTION 1.(a) G.S. 95-107 reads as rewritten: 23 "§ 95-107. Assessment and collection of fees; certificates of safe operation. 24 The assessment of the fees adopted by the Commissioner pursuant to G.S. 95-69.11, 25 95-110.5, 95-111.4 95-110.5A, 95-111.4A, and 95-120 95-120A shall be made against the owner 26 or operator of the equipment and may be collected at the time of inspection. If the fees are not 27 collected at the time of inspection, the Department must bill the owner or operator of the 28 equipment for the amount of the fee assessed for the inspection of the equipment and the amount 29 assessed is payable by the owner or operator of the equipment upon receipt of the bill. Certificates 30 of safe operation may be withheld by the Department of Labor until such time as the assessed 31 fees are collected." 32 SECTION 1.(b) G.S. 95-108 reads as rewritten: 33 "§ 95-108. Disposition of fees. 34 All fees collected by the Department of Labor pursuant to G.S. 95-69.11, 95-110.5, 95-111.4 35 95-110.5A, 95-111.4A, and 95-120 95-120A shall be deposited with the State Treasurer and shall 36 General Assembly Of North Carolina Session 2025 Page 2 House Bill 559-Second Edition be used exclusively for inspection inspection, permitting, and certification purposes. Fees 1 deposited pursuant to this section that have not been expended or encumbered at the end of the 2 fiscal year shall not revert but shall remain available for uses consistent with this section." 3 SECTION 1.(c) G.S. 95-110.5(20) is repealed. 4 SECTION 1.(d) Article 14A of Chapter 95 of the General Statutes is amended by 5 adding a new section to read: 6 "§ 95-110.5A. Fees. 7 (a) Beginning July 1, 2025, the Department shall charge fees not to exceed the following: 8 Special Inspection Fee – Expedited $1,000 9 Temporary Limited Certificate for Construction Use Only; Less than 10 Floors $200.00 10 Temporary Limited Certificate for Construction Use Only; 10 or More Floors $300.00 11 Reinspection Fee of Failed New and Repair/Alteration Inspections $1,000 12 Routine/Annual Elevator Inspections; Less than 10 Floors $200.00 13 Routine/Annual Elevator Inspections; 10 or More Floors $300.00 14 Routine/Annual Wheelchair Lift and Dumbwaiter Inspections $100.00 15 Routine/Annual Escalator and Moving Walk Inspections $500.00 16 (b) Upon application to the Department for a new or alteration construction permit for a 17 device subject to this section, an applicant shall submit a permit application fee. The amount of 18 the permit application fee shall be the greater of (i) two hundred dollars ($200.00) or (ii) one 19 percent (1%) of the contract price for the alteration or installation of the device being permitted. 20 (c) Notwithstanding any provision of law to the contrary, for fiscal years beginning on or 21 after July 1, 2026, the Department shall adjust the fee amounts listed in subsection (a) of this 22 section in accordance with the percent change in the annual Consumer Price Index computed by 23 the Bureau of Labor Statistics using the most recent 12-month period for which data is available. 24 The adjustment for fees under this subsection shall be rounded to the nearest dollar ($1.00), and 25 the Commissioner shall publish any increase in fees under this subsection in the North Carolina 26 Register and on the Department's website at least 60 days prior to any increase." 27 SECTION 1.(e) G.S. 95-111.4(19) is repealed. 28 SECTION 1.(f) Article 14B of Chapter 95 of the General Statutes is amended by 29 adding a new section to read: 30 "§ 95-111.4A. Fees. 31 (a) Beginning July 1, 2025, the Department shall charge fees not to exceed the following: 32 Advance Location Notice (ALN) Application Fee $25.00 33 Special Inspection Fee – Expedited $1,000 34 Amusement Major Ride Inspections $250.00 35 Amusement Return Trip Inspections $500.00 36 Holiday/Weekend Inspections $500.00 37 Kiddie Ride Inspections $100.00 38 Go Kart Inspections (per cart) $50.00 39 Go Kart Track Inspections $200.00 40 Amusement Rock Wall Inspections $100.00 41 Roller Coaster (permanent and portable) Inspections $500.00 42 Simulators $100.00 43 Bungee Trampoline Inspections $100.00 44 Water Slide Inspections $300.00 45 Train Inspections $250.00 46 (b) Notwithstanding any provision of law to the contrary, for fiscal years beginning on or 47 after July 1, 2026, the Department shall adjust the fee amounts listed in subsection (a) of this 48 section in accordance with the percent change in the annual Consumer Price Index computed by 49 the Bureau of Labor Statistics using the most recent 12-month period for which data is available. 50 The adjustment for fees under this subsection shall be rounded to the nearest dollar ($1.00), and 51 General Assembly Of North Carolina Session 2025 House Bill 559-Second Edition Page 3 the Commissioner shall publish any increase in fees under this subsection in the North Carolina 1 Register and on the Department's website at least 60 days prior to any increase." 2 SECTION 1.(g) G.S. 95-120(9) is repealed. 3 SECTION 1.(h) Article 15 of Chapter 95 of the General Statutes is amended by 4 adding a new section to read: 5 "§ 95-120A. Fees. 6 (a) Beginning July 1, 2025, the Department shall charge fees not to exceed the following: 7 Gondolas, Chairlifts, Inclined Railroad Inspections $500.00 8 J or T Bars and Conveyors Inspections $300.00 9 Rope Tow Inspections $200.00 10 (b) Notwithstanding any provision of law to the contrary, for fiscal years beginning on or 11 after July 1, 2026, the Department shall adjust the fee amounts listed in subsection (a) of this 12 section in accordance with the percent change in the annual Consumer Price Index computed by 13 the Bureau of Labor Statistics using the most recent 12-month period for which data is available. 14 The adjustment for fees under this subsection shall be rounded to the nearest dollar ($1.00), and 15 the Commissioner shall publish any increase in fees under this subsection in the North Carolina 16 Register and on the Department's website at least 60 days prior to any increase." 17 SECTION 1.(i) The Commissioner shall publish notice of the changes in fees created 18 by this section in the North Carolina Register and on the Department's website no later than 30 19 days after the effective date of this act. 20 21 PART II. REGULATORY FLEXIBILITY MODIFICA TIONS 22 SECTION 2.(a) G.S. 95-110.5(13) reads as rewritten: 23 "(13) To adopt, modify or revoke rules and regulations governing the qualifications 24 of inspectors;inspectors. The Commissioner may waive or amend the 25 American National Safety Standards from the American National Standards 26 Institute as those standards relate to the qualifications of inspectors in this 27 State if the Commissioner sets alternative standards that are reasonably 28 equivalent, as determined by the Commissioner;" 29 SECTION 2.(b) G.S. 95-111.4(13) reads as rewritten: 30 "(13) To adopt, modify or revoke rules and regulations governing the qualifications 31 of inspectors. The Commissioner may waive or amend the American National 32 Safety Standards from the American National Standards Institute as those 33 standards relate to the qualifications of inspectors in this State if the 34 Commissioner sets alternative standards that are reasonably equivalent, as 35 determined by the Commissioner." 36 37 PART III. MISCELLANEOUS 38 SECTION 3. The Department of Labor (Department) shall consult with the North 39 Carolina Community College System to develop an in-house training and apprenticeship 40 program (Program) for elevator inspectors. The Department shall utilize the Program to fill 41 vacancies in receipt-supported inspector positions within the Elevator and Amusement Device 42 Division of the Department. 43 44 PART IV. EFFECTIVE DATE 45 SECTION 4. This act is effective when it becomes law. 46