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North Carolina House Bill H661

North Carolina 2025-2026 Regular Session

North Carolina House Bill H661 Compare Versions

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11 GENERAL ASSEMBLY OF NORTH CAROLINA
22 SESSION 2025
3-H 2
3+H 1
44 HOUSE BILL 661
5-Committee Substitute Favorable 4/10/25
5+
66
77 Short Title: Building Industry Efficiency Act of 2025. (Public)
8-Sponsors:
9-Referred to:
8+Sponsors: Representatives Brody, Bell, Cunningham, and Zenger (Primary Sponsors).
9+For a complete list of sponsors, refer to the North Carolina General Assembly web site.
10+Referred to: Housing and Development, if favorable, Finance, if favorable, Rules, Calendar,
11+and Operations of the House
1012 April 2, 2025
11-*H661 -v-2*
13+*H661 -v-1*
1214 A BILL TO BE ENTITLED 1
1315 AN ACT TO AMEND VARI OUS LAWS TO PROVIDE ADDITIONAL BUILDING 2
1416 INDUSTRY EFFICIENCY. 3
1517 The General Assembly of North Carolina enacts: 4
1618 5
1719 PART I. LOCAL DEVELOPMENT AND CONSTRUCTI ON REGULATION 6
1820 7
1921 PROHIBIT INSPECTION DEPARTMENTS FROM CHARGING FEES FOR CERTAIN 8
2022 INSPECTION CANCELLATIONS 9
2123 SECTION 1.1. G.S. 160D-1104 is amended by adding a new subsection to read: 10
2224 "(d2) An inspection department shall not charge the permit holder a fee or fail an inspection 11
2325 of a building or structure subject to the North Carolina Residential Code, if the permit holder 12
2426 cancels a scheduled inspection more than one business day before the scheduled inspection." 13
2527 14
2628 LIMIT DESIGN METHODOLOGY AND CONSTRUCTION STANDARDS FOR 15
2729 CERTAIN MUNICIPAL STREETS 16
2830 SECTION 1.2.(a) Article 15 of Chapter 160D of the General Statutes is amended by 17
2931 adding a new section to read: 18
3032 "§ 160D-1502. Limit street design methodology and construction standards for certain 19
3133 municipal streets. 20
3234 Notwithstanding G.S. 136-66.4, municipalities shall not implement design methodology and 21
3335 construction standards for new streets and highways to be accepted by a municipality, utilizing 22
3436 funds that are not wholly municipal funds, that are more stringent than design methodology and 23
3537 construction standards utilized by the North Carolina Department of Transportation. Nothing in 24
3638 this section limits the authority of the North Carolina Department of Transportation to regulate 25
3739 street connections to a public system as authorized by law." 26
3840 SECTION 1.2.(b) This section becomes effective July 1, 2025, and applies to 27
3941 projects initiated on or after that date. 28
4042 29
4143 LIMIT DESIGN METHODOLOGY AND CONSTRUCTION STANDARDS FOR 30
4244 CERTAIN PRIVATE STREETS 31
4345 SECTION 1.3.(a) Article 15 of Chapter 160D of the General Statutes is amended by 32
44-adding a new section to read: 33
45-"§ 160D-1503. Limit street design methodology and construction standards for certain 34
46-private streets. 35 General Assembly Of North Carolina Session 2025
47-Page 2 House Bill 661-Second Edition
48-Municipalities shall not implement design methodology and construction standards for new 1
49-streets designated as private, and intended to remain privately owned after construction, that are 2
50-more stringent than design methodology and construction standards utilized by the North 3
51-Carolina Department of Transportation. Notwithstanding any design methodology and 4
52-construction standards implemented by the municipality, the municipality must accept 5
53-engineered street design methodology and construction standards that do not meet minimum 6
54-standards utilized by the North Carolina Department of Transportation if the engineered street 7
55-design methodology and construction standards are signed and sealed by a duly licensed 8
56-professional engineer, under Chapter 89C of the General Statutes, and meet vehicular traffic and 9
57-fire apparatus access requirements. If engineered street design methodology and construction 10
58-standards do not meet minimum standards utilized by the North Carolina Department of 11
59-Transportation, the developer must include disclosures to prospective buyers as outlined in 12
60-G.S. 136-102.6(f) prior to entering into any agreement or any conveyance with any prospective 13
61-buyer. A local government is discharged and released from any liabilities, duties, and 14
62-responsibilities imposed by this Chapter, or in common law, from any claim arising out of, or 15
63-attributed to, the plan review or acceptance of signed and sealed engineered street design 16
64-methodology and construction standards submitted pursuant to this section. Nothing in this 17
65-section limits the authority of local governments or the North Carolina Department of 18
66-Transportation to regulate private road, driveway, or street connection to a public system, or to 19
67-regulate transportation and utilities as otherwise authorized by law." 20
68-SECTION 1.3.(b) This section becomes effective July 1, 2025, and applies to 21
69-projects initiated on or after that date. 22
70- 23
71-MUNICIPALITIES REQUIRING DEVELOPERS TO CONSTRUCT CERTAIN 24
72-PEDESTRIAN FACILITIES AND STREET IMPROVEMENTS TO ACCEPT THOSE 25
73-IMPROVEMENTS 26
74-SECTION 1.4.(a) Article 15 of Chapter 160D of the General Statutes is amended by 27
75-adding a new section to read: 28
76-"§ 160D-1504. Municipal requirements for pedestrian facilities and street improvements 29
77-within extraterritorial jurisdiction. 30
78-A municipality that requires a developer to construct a pedestrian facility or street 31
79-improvement within public right-of-way located outside of a construction project boundary shall 32
80-accept that pedestrian facility and street improvement into its municipal public road system for 33
81-maintenance and repair upon project completion. This section applies to projects located within 34
82-an extraterritorial jurisdiction of a municipality, established pursuant to Article 2 of Chapter 35
83-160D of the General Statutes. This section does not apply to public right-of-way that is under the 36
84-control of the North Carolina Department of Transportation." 37
85-SECTION 1.4.(b) This section becomes effective July 1, 2025, and applies to 38
86-projects initiated on or after that date. 39
87- 40
88-COUNTIES REQUIRING DEVELOPERS TO CONSTRUCT CERTAIN PEDESTRIAN 41
89-AND STREET IMPROVEMENTS MUST SEEK AGREEMENTS TO ACCEPT THOSE 42
90-IMPROVEMENTS INTO A PUBLIC R OAD SYSTEM 43
91-SECTION 1.5.(a) Article 15 of Chapter 160D of the General Statutes is amended by 44
92-adding a new section to read: 45
93-"§ 160D-1505. County requirements for pedestrian facilities and public road 46
94-improvements. 47
95-A county shall not require a developer to construct a pedestrian facility or public road 48
96-improvement within public right-of-way located outside of a construction project boundary 49
97-unless the county obtains an agreement with either the North Carolina Department of 50
98-Transportation or the municipality, as applicable, that the pedestrian facility or public road 51 General Assembly Of North Carolina Session 2025
99-House Bill 661-Second Edition Page 3
100-improvement will be accepted into a public road system for maintenance and repair. This section 1
101-applies to projects located within a planning and development regulation jurisdiction of a county, 2
102-established pursuant to Article 2 of Chapter 160D of the General Statutes. This section does not 3
103-apply to public right-of-way that is under the control of the North Carolina Department of 4
104-Transportation." 5
105-SECTION 1.5.(b) This section becomes effective July 1, 2025, and applies to 6
106-projects initiated on or after that date. 7
107- 8
108-AMEND PUBLIC STREET DEDICATION ABANDONMENT PROCESS 9
109-SECTION 1.6. G.S. 136-96 reads as rewritten: 10
110-"§ 136-96. Road or street not used within 15 years after dedication deemed abandoned; 11
111-declaration of withdrawal recorded; joint tenants or tenants in common; defunct 12
112-corporations. 13
113-(a) Every strip, piece, or parcel of land that has been at any time dedicated to public use 14
114-as a road, highway, street, avenue, or for any other purpose whatsoever, by a deed, grant, map, 15
115-plat, or other means, and that has not been actually opened and used by the public within 15 years 16
116-after its dedication is conclusively presumed to have been abandoned by the public for the 17
117-purposes for which it was dedicated; and no person shall have any right or cause of action 18
118-thereafter to enforce any public or private easement in the land. 19
119-(b) Notwithstanding subsection (a) of this section, no abandonment of any public or 20
120-private right or easement shall be presumed until the dedicator or a person claiming under the 21
121-dedicator files or causes to be recorded in the register's office of the county where the land lies a 22
122-declaration withdrawing the strip, piece, or parcel of land from the public or private use to which 23
123-it was dedicated. 24
124-(c) When the fee simple title is vested in tenants in common or joint tenants of any land 25
125-embraced within the boundaries of a road, highway, street, avenue, or other land dedicated for 26
126-any public purpose whatsoever, as described in this section, any one or more of the cotenants, on 27
127-the cotenant's behalf and on behalf of the other cotenants, may execute and cause to be registered 28
128-in the office of the register of deeds of the county where the land is situated the declaration of 29
129-withdrawal provided for in this section. Under Chapter 46A (Partition) of the General Statutes 30
130-and Article 29A (Judicial Sales) of Chapter 1 of the General Statutes, and on petition of any one 31
131-or more of the cotenants, the land thereafter may be partitioned by sale only as between or among 32
132-the cotenants, irrespective of who may be in actual possession of the land. In the partition 33
133-proceeding, any cotenant may object to the withdrawal certificate and the court shall thereupon 34
134-order the certificate cancelled of record. 35
135-(d) When any corporation has dedicated any strip, piece, or parcel of land in the manner 36
136-set out in this section, and the dedicating corporation is no longer in existence, the corporation is 37
137-conclusively presumed to have no further right, title, or interest in the land, regardless of the 38
138-provisions of conveyances from the corporation, or those holding under the corporation, retaining 39
139-title and interest in the land. The right, title, and interest in the land is conclusively presumed to 40
140-be vested in those persons owning lots or parcels of land adjacent to it, subject to the provisions 41
141-of this section. 42
142-(e) This section does not apply in any of the following circumstances: 43
143-(1) When the continued use of any strip of land dedicated for street or highway 44
144-purposes is necessary to afford convenient ingress or egress to any lot or parcel 45
145-of land sold and conveyed by the dedicator of the street or highway. 46
146-(2) When the public dedication is part of a future street shown on the street plan 47
147-adopted pursuant to G.S. 136-66.2. Upon request, a city shall adopt a 48
148-resolution indicating that the dedication described in the proposed declaration 49
149-of withdrawal is or is not part of the street plan adopted under G.S. 136-66.2. 50
150-This resolution shall be attached to the declaration of withdrawal and shall be 51 General Assembly Of North Carolina Session 2025
151-Page 4 House Bill 661-Second Edition
152-registered in the office of the register of deeds of the county where the land is 1
153-situated. 2
154-(f) Any strip, piece, or parcel of land that was dedicated to public use as a local road, 3
155-highway, street, or avenue by plat on December 22, 1978, but that has not been maintained as a 4
156-local public road, highway, street, or avenue by a local governmental entity by January 1, 2025, 5
157-is hereby deemed withdrawn for public use, any rights of the public therein are deemed 6
158-abandoned, and no person or governmental entity shall have any right or cause of action to 7
159-enforce any public interest or easement in such land pursuant to this section." 8
160- 9
161-PART II. NORTH CAROLINA STATE BUILDING CODE 10
46+adding a new section to read: 33 General Assembly Of North Carolina Session 2025
47+Page 2 House Bill 661-First Edition
48+"§ 160D-1503. Limit street design methodology and construction standards for certain 1
49+private streets. 2
50+Municipalities shall not implement design methodology and construction standards for new 3
51+streets designated as private, and intended to remain privately owned after construction, that are 4
52+more stringent than design methodology and construction standards utilized by the North 5
53+Carolina Department of Transportation. Notwithstanding any design methodology and 6
54+construction standards implemented by the municipality, the municipality must accept 7
55+engineered street design methodology and construction standards that do not meet minimum 8
56+standards utilized by the North Carolina Department of Transportation if the engineered street 9
57+design methodology and construction standards are signed and sealed by a duly licensed 10
58+professional engineer, under Chapter 89C of the General Statutes, and meet vehicular traffic and 11
59+fire apparatus access requirements. If engineered street design methodology and construction 12
60+standards do not meet minimum standards utilized by the North Carolina Department of 13
61+Transportation, the developer must include disclosures to prospective buyers as outlined in 14
62+G.S. 136-102.6(f) prior to entering into any agreement or any conveyance with any prospective 15
63+buyer. A local government is discharged and released from any liabilities, duties, and 16
64+responsibilities imposed by this Chapter, or in common law, from any claim arising out of, or 17
65+attributed to, the plan review or acceptance of signed and sealed engineered street design 18
66+methodology and construction standards submitted pursuant to this section. Nothing in this 19
67+section limits the authority of local governments or the North Carolina Department of 20
68+Transportation to regulate private road, driveway, or street connection to a public system, or to 21
69+regulate transportation and utilities as otherwise authorized by law." 22
70+SECTION 1.3.(b) This section becomes effective July 1, 2025, and applies to 23
71+projects initiated on or after that date. 24
72+ 25
73+MUNICIPALITIES REQUIRING DEVELOPERS TO CONSTRUCT CERTAIN 26
74+PEDESTRIAN FACILITIES AND STREET IMPROVEMENTS TO ACCEPT THOSE 27
75+IMPROVEMENTS 28
76+SECTION 1.4.(a) Article 15 of Chapter 160D of the General Statutes is amended by 29
77+adding a new section to read: 30
78+"§ 160D-1504. Municipal requirements for pedestrian facilities and street improvements 31
79+within extraterritorial jurisdiction. 32
80+A municipality that requires a developer to construct a pedestrian facility or street 33
81+improvement within public right-of-way located outside of a construction project boundary shall 34
82+accept that pedestrian facility and street improvement into its municipal public road system for 35
83+maintenance and repair upon project completion. This section applies to projects located within 36
84+an extraterritorial jurisdiction of a municipality, established pursuant to Article 2 of Chapter 37
85+160D of the General Statutes. This section does not apply to public right-of-way that is under the 38
86+control of the North Carolina Department of Transportation." 39
87+SECTION 1.4.(b) This section becomes effective July 1, 2025, and applies to 40
88+projects initiated on or after that date. 41
89+ 42
90+COUNTIES REQUIRING DEVELOPERS TO CONSTRUCT CERTAIN PEDESTRIAN 43
91+AND STREET IMPROVEMENTS MUST SEEK AGREEMENTS TO ACCEPT THOSE 44
92+IMPROVEMENTS INTO A PUBLIC R OAD SYSTEM 45
93+SECTION 1.5.(a) Article 15 of Chapter 160D of the General Statutes is amended by 46
94+adding a new section to read: 47
95+"§ 160D-1505. County requirements for pedestrian facilities and public road 48
96+improvements. 49
97+A county shall not require a developer to construct a pedestrian facility or public road 50
98+improvement within public right-of-way located outside of a construction project boundary 51 General Assembly Of North Carolina Session 2025
99+House Bill 661-First Edition Page 3
100+unless the county obtains an agreement with either the North Carolina Department of 1
101+Transportation or the municipality, as applicable, that the pedestrian facility or public road 2
102+improvement will be accepted into a public road system for maintenance and repair. This section 3
103+applies to projects located within a planning and development regulation jurisdiction of a county, 4
104+established pursuant to Article 2 of Chapter 160D of the General Statutes. This section does not 5
105+apply to public right-of-way that is under the control of the North Carolina Department of 6
106+Transportation." 7
107+SECTION 1.5.(b) This section becomes effective July 1, 2025, and applies to 8
108+projects initiated on or after that date. 9
109+ 10
110+AMEND PUBLIC STREET DEDICATION ABANDONMENT PROCESS 11
111+SECTION 1.6. G.S. 136-96 reads as rewritten: 12
112+"§ 136-96. Road or street not used within 15 years after dedication deemed abandoned; 13
113+declaration of withdrawal recorded; joint tenants or tenants in common; defunct 14
114+corporations. 15
115+(a) Every strip, piece, or parcel of land that has been at any time dedicated to public use 16
116+as a road, highway, street, avenue, or for any other purpose whatsoever, by a deed, grant, map, 17
117+plat, or other means, and that has not been actually opened and used by the public within 15 years 18
118+after its dedication is conclusively presumed to have been abandoned by the public for the 19
119+purposes for which it was dedicated; and no person shall have any right or cause of action 20
120+thereafter to enforce any public or private easement in the land. 21
121+(b) Notwithstanding subsection (a) of this section, no abandonment of any public or 22
122+private right or easement shall be presumed until the dedicator or a person claiming under the 23
123+dedicator files or causes to be recorded in the register's office of the county where the land lies a 24
124+declaration withdrawing the strip, piece, or parcel of land from the public or private use to which 25
125+it was dedicated. 26
126+(c) When the fee simple title is vested in tenants in common or joint tenants of any land 27
127+embraced within the boundaries of a road, highway, street, avenue, or other land dedicated for 28
128+any public purpose whatsoever, as described in this section, any one or more of the cotenants, on 29
129+the cotenant's behalf and on behalf of the other cotenants, may execute and cause to be registered 30
130+in the office of the register of deeds of the county where the land is situated the declaration of 31
131+withdrawal provided for in this section. Under Chapter 46A (Partition) of the General Statutes 32
132+and Article 29A (Judicial Sales) of Chapter 1 of the General Statutes, and on petition of any one 33
133+or more of the cotenants, the land thereafter may be partitioned by sale only as between or among 34
134+the cotenants, irrespective of who may be in actual possession of the land. In the partition 35
135+proceeding, any cotenant may object to the withdrawal certificate and the court shall thereupon 36
136+order the certificate cancelled of record. 37
137+(d) When any corporation has dedicated any strip, piece, or parcel of land in the manner 38
138+set out in this section, and the dedicating corporation is no longer in existence, the corporation is 39
139+conclusively presumed to have no further right, title, or interest in the land, regardless of the 40
140+provisions of conveyances from the corporation, or those holding under the corporation, retaining 41
141+title and interest in the land. The right, title, and interest in the land is conclusively presumed to 42
142+be vested in those persons owning lots or parcels of land adjacent to it, subject to the provisions 43
143+of this section. 44
144+(e) This section does not apply in any of the following circumstances: 45
145+(1) When the continued use of any strip of land dedicated for street or highway 46
146+purposes is necessary to afford convenient ingress or egress to any lot or parcel 47
147+of land sold and conveyed by the dedicator of the street or highway. 48
148+(2) When the public dedication is part of a future street shown on the street plan 49
149+adopted pursuant to G.S. 136-66.2. Upon request, a city shall adopt a 50
150+resolution indicating that the dedication described in the proposed declaration 51 General Assembly Of North Carolina Session 2025
151+Page 4 House Bill 661-First Edition
152+of withdrawal is or is not part of the street plan adopted under G.S. 136-66.2. 1
153+This resolution shall be attached to the declaration of withdrawal and shall be 2
154+registered in the office of the register of deeds of the county where the land is 3
155+situated. 4
156+(f) Any strip, piece, or parcel of land that was dedicated to public use as a local road, 5
157+highway, street, or avenue by plat on December 22, 1978, but that has not been maintained as a 6
158+local public road, highway, street, or avenue by a local governmental entity by January 1, 2025, 7
159+is hereby deemed withdrawn for public use, any rights of the public therein are deemed 8
160+abandoned, and no person or governmental entity shall have any right or cause of action to 9
161+enforce any public interest or easement in such land pursuant to this section." 10
162162 11
163-EXEMPT MODEL HOMES FROM FIRE PROTECTION WATER SUPPL Y 12
164-REQUIREMENT DURING CONSTRUCTION 13
165-SECTION 2.1.(a) Definitions. – For the purposes of this section, the following 14
166-definitions apply: 15
167-(1) Code. – The North Carolina State Building Code, and amendments to the 16
168-Code, as adopted by the Councils. 17
169-(2) Councils. – The Building Code Council and Residential Code Council. 18
170-(3) Model home. – As defined in G.S. 160D-1501(a). 19
171-(4) Water Supply Rules. – Section 3312.1, when required, of the North Carolina 20
172-Fire Code, and Section 3313.1, where required, of the North Carolina Building 21
173-Code. 22
174-SECTION 2.1.(b) Water Supply Rules. – Until the effective date of the rules to 23
175-amend Water Supply Rules, the Office of the State Fire Marshal, the Councils, and State and 24
176-local governments enforcing the Code shall implement Water Supply Rules as provided in 25
177-subsection (c) of this section. 26
178-SECTION 2.1.(c) Implementation. – Notwithstanding Water Supply Rules, the fire 27
179-code official is authorized to reduce the fire-flow requirements for an isolated model home at a 28
180-subdivision project site where development of full-fire flow requirements is impractical or 29
181-pending. 30
182-SECTION 2.1.(d) Additional Rulemaking Authority. – The Council shall adopt rules 31
183-to amend Water Supply Rules to be consistent with subsection (c) of this section. 32
184-Notwithstanding G.S. 150B-19(4), the rule adopted by the Council pursuant to this section shall 33
185-be substantively identical to the provisions of subsection (c) of this section. Rules adopted 34
186-pursuant to this section are not subject to Part 3 of Article 2A of Chapter 150B of the General 35
187-Statutes. Rules adopted pursuant to this section shall become effective as provided in 36
188-G.S. 150B-21.3(b1) as though 10 or more written objections had been received as provided in 37
189-G.S. 150B-21.3(b2). 38
190-SECTION 2.1.(e) Additional Residential Code Council Rulemaking Authority. – 39
191-The Residential Code Council shall adopt rules to amend the 2024 North Carolina State Building 40
192-Code volumes specified within G.S. 143-138(a)(1) through (10) to make conforming changes to 41
193-codes applicable to residential construction consistent with rules adopted by the Building Code 42
194-Council as required by subsection (d) of this section. Rules adopted pursuant to this subsection 43
195-are not subject to Part 3 of Article 2A of Chapter 150B of the General Statutes. Rules adopted 44
196-pursuant to this subsection shall become effective as provided in G.S. 150B-21.3(b1) as though 45
197-10 or more written objections had been received as provided in G.S. 150B-21.3(b2). 46
198-SECTION 2.1.(f) Sunset. – This section expires when permanent rules adopted as 47
199-required by subsections (d) and (e) of this section become effective. 48
200- 49
201-NORTH CAROLINA STATE BUILDING CODE VOLUME REFERENCE TECHNICAL 50
202-CORRECTIONS 51 General Assembly Of North Carolina Session 2025
203-House Bill 661-Second Edition Page 5
204-SECTION 2.2.(a) G.S. 44A-11.1(a) reads as rewritten: 1
205-"(a) With regard to any improvements to real property to which this Article is applicable 2
206-for which the costs of the undertaking are forty thousand dollars ($40,000) or more, either at the 3
207-time that the original building permit is issued or, in cases in which no building permit is required, 4
208-at the time the contract for the improvements is entered into with the owner, the owner shall 5
209-designate a lien agent no later than the time the owner first contracts with any person to improve 6
210-the real property. Provided, however, that the owner is not required to designate a lien agent for 7
211-improvements to an existing single-family residential dwelling unit as defined in G.S. 87-15.5(7) 8
212-that is occupied by the owner as a residence, or for the addition of an accessory building or 9
213-accessory structure as defined in the North Carolina Uniform Residential Building Code, the use 10
214-of which is incidental to that residence. The owner shall deliver written notice of designation to 11
215-its designated lien agent by any method authorized in G.S. 44A-11.2(f), and shall include in its 12
216-notice the street address, tax map lot and block number, reference to recorded instrument, or any 13
217-other description that reasonably identifies the real property for the improvements to which the 14
218-lien agent has been designated, and the owner's contact information. Designation of a lien agent 15
219-pursuant to this section does not make the lien agent an agent of the owner for purposes of 16
220-receiving a Claim of Lien on Real Property, a Notice of Claim of Lien upon Funds, a Notice of 17
221-Subcontract, or for any purpose other than the receipt of notices to the lien agent required under 18
222-G.S. 44A-11.2." 19
223-SECTION 2.2.(b) G.S. 58-45-5(5) reads as rewritten: 20
224-"(5) Insurable property. – Real property at fixed locations in the beach and coastal 21
225-area, including travel trailers when tied down at a fixed location, or the 22
226-tangible personal property located therein, but shall not include insurance on 23
227-motor vehicles; which property is determined by the Association, after 24
228-inspection and under the criteria specified in the plan of operation, to be in an 25
229-insurable condition. However, any one and two family dwellings built in 26
230-substantial accordance with the Federal Manufactured Home Construction 27
231-and Safety Standards, any predecessor or successor federal or State 28
232-construction or safety standards, and any further construction or safety 29
233-standards promulgated by the association and approved by the Commissioner, 30
234-or the North Carolina Uniform Residential Building Code and any structure 31
235-or building built in substantial compliance with the North Carolina State 32
236-Building Code, including the design-wind requirements, which is not 33
237-otherwise rendered uninsurable by reason of use or occupancy, shall be an 34
238-insurable risk within the meaning of this Article. However, none of the 35
239-following factors shall be considered in determining insurable condition: 36
240-neighborhood, area, location, environmental hazards beyond the control of the 37
241-applicant or owner of the property. Also, any structure begun on or after 38
242-January 1, 1970, not built in substantial compliance with the Federal 39
243-Manufactured Home Construction and Safety Standards, any predecessor or 40
244-successor federal or State construction or safety standards, and any further 41
245-construction or safety standards promulgated by the association and approved 42
246-by the Commissioner, or the North Carolina Uniform Residential Building 43
247-Code or the North Carolina State Building Code, including the design-wind 44
248-requirements therein, shall not be an insurable risk. The owner or applicant 45
249-shall furnish with the application proof in the form of a certificate from a local 46
250-building inspector, contractor, engineer or architect that the structure is built 47
251-in substantial accordance with the Federal Manufactured Home Construction 48
252-and Safety Standards, any predecessor or successor federal or State 49
253-construction or safety standards, and any further construction or safety 50
254-standards promulgated by the association and approved by the Commissioner, 51 General Assembly Of North Carolina Session 2025
255-Page 6 House Bill 661-Second Edition
256-or the North Carolina Uniform Residential Building Code or the North 1
257-Carolina State Building Code; however, an individual certificate shall not be 2
258-necessary where the structure is located within a political subdivision which 3
259-has certified to the Association on an annual basis that it is enforcing the North 4
260-Carolina Uniform Residential Building Code or the North Carolina State 5
261-Building Code and has no plans to discontinue enforcing these codes during 6
262-that year." 7
263-SECTION 2.2.(c) G.S. 87-10(b1) reads as rewritten: 8
264-"(b1) Public utilities contractors constructing house and building sewer lines as provided in 9
265-sub-subdivision a. of subdivision (3) of subsection (b) of this section shall, at the junction of the 10
266-public sewer line and the house or building sewer line, install as an extension of the public sewer 11
267-line a cleanout at or near the property line that terminates at or above the finished grade. Public 12
268-utilities contractors constructing water service lines as provided in sub-subdivision a. of 13
269-subdivision (3) of subsection (b) of this section shall terminate the water service lines at a valve, 14
270-box, or meter at which the facilities from the building may be connected. Public utilities 15
271-contractors constructing fire service mains for connection to fire sprinkler systems shall terminate 16
272-those lines at a flange, cap, plug, or valve inside the building one foot above the finished floor. 17
273-All fire service mains shall comply with the NFPA standards for fire service mains as 18
274-incorporated into and made applicable by Volume V of the North Carolina State Building Code." 19
275-SECTION 2.2.(d) G.S. 87-14(a1) reads as rewritten: 20
276-"(a1) Any person, firm, or corporation, upon making application to the building inspector 21
277-or other authority of any incorporated city, town, or county in North Carolina charged with the 22
278-duty of issuing building permits pursuant to G.S. 160D-1110 for any improvements for which 23
279-the combined cost is to be forty thousand dollars ($40,000) or more, other than for improvements 24
280-to an existing single-family residential dwelling unit as defined in G.S. 87-15.5(7) that the owner 25
281-occupies as a residence, or for the addition of an accessory building or accessory structure as 26
282-defined in the North Carolina Uniform Residential Building Code, the use of which is incidental 27
283-to that residential dwelling unit, shall be required to provide to the building inspector or other 28
284-authority the name, physical and mailing address, telephone number, facsimile number, and 29
285-email address of the lien agent designated by the owner pursuant to G.S. 44A-11.1(a)." 30
286-SECTION 2.2.(e) G.S. 87-21(c1) reads as rewritten: 31
287-"(c1) Exemption. – The provisions of this Article shall not apply to a person who performs 32
288-the on-site assembly of a factory designed drain line system for a manufactured home, as defined 33
289-in G.S. 143-143.9(6), if the person (i) is a licensed manufactured home retailer, a licensed 34
290-manufactured home set-up contractor, or a full-time employee of either, (ii) obtains an inspection 35
291-by the local inspections department and (iii) performs the assembly according to the State North 36
292-Carolina Plumbing Code." 37
293-SECTION 2.2.(f) G.S. 143-150 reads as rewritten: 38
294-"§ 143-150. No electricity to be furnished units not in compliance. 39
295-It is unlawful for any person to furnish electricity for use in any manufactured home without 40
296-first ascertaining that the manufactured home and its electrical supply has been inspected 41
297-pursuant to G.S. 143-139 by the inspection authority having jurisdiction and found to comply 42
298-with the requirements of the State North Carolina Electrical Code. The certificate of compliance 43
299-issued by the inspection jurisdiction shall be accepted as evidence of compliance." 44
300-SECTION 2.2.(g) G.S. 160D-702(c) reads as rewritten: 45
301-"(c) A zoning or other development regulation shall not do any of the following: 46
302-(1) Set a minimum square footage of any structures subject to regulation under 47
163+PART II. NORTH CAROLINA STATE BUILDING CODE 12
164+ 13
165+EXEMPT MODEL HOMES FROM FIRE PROTECTION WATER SUPPL Y 14
166+REQUIREMENT DURING CONSTRUCTION 15
167+SECTION 2.1.(a) Definitions. – For the purposes of this section, the following 16
168+definitions apply: 17
169+(1) Code. – The North Carolina State Building Code, and amendments to the 18
170+Code, as adopted by the Councils. 19
171+(2) Councils. – The Building Code Council and Residential Code Council. 20
172+(3) Model home. – As defined in G.S. 160D-1501(a). 21
173+(4) Water Supply Rules. – Section 3312.1, when required, of the North Carolina 22
174+Fire Code, and Section 3313.1, where required, of the North Carolina Building 23
175+Code. 24
176+SECTION 2.1.(b) Water Supply Rules. – Until the effective date of the rules to 25
177+amend Water Supply Rules, the Office of the State Fire Marshal, the Councils, and State and 26
178+local governments enforcing the Code shall implement Water Supply Rules as provided in 27
179+subsection (c) of this section. 28
180+SECTION 2.1.(c) Implementation. – Notwithstanding Water Supply Rules, the fire 29
181+code official is authorized to reduce the fire-flow requirements for an isolated model home at a 30
182+subdivision project site where development of full-fire flow requirements is impractical or 31
183+pending. 32
184+SECTION 2.1.(d) Additional Rulemaking Authority. – The Council shall adopt rules 33
185+to amend Water Supply Rules to be consistent with subsection (c) of this section. 34
186+Notwithstanding G.S. 150B-19(4), the rule adopted by the Council pursuant to this section shall 35
187+be substantively identical to the provisions of subsection (c) of this section. Rules adopted 36
188+pursuant to this section are not subject to Part 3 of Article 2A of Chapter 150B of the General 37
189+Statutes. Rules adopted pursuant to this section shall become effective as provided in 38
190+G.S. 150B-21.3(b1) as though 10 or more written objections had been received as provided in 39
191+G.S. 150B-21.3(b2). 40
192+SECTION 2.1.(e) Additional Residential Code Council Rulemaking Authority. – 41
193+The Residential Code Council shall adopt rules to amend the 2024 North Carolina State Building 42
194+Code volumes specified within G.S. 143-138(a)(1) through (10) to make conforming changes to 43
195+codes applicable to residential construction consistent with rules adopted by the Building Code 44
196+Council as required by subsection (d) of this section. Rules adopted pursuant to this subsection 45
197+are not subject to Part 3 of Article 2A of Chapter 150B of the General Statutes. Rules adopted 46
198+pursuant to this subsection shall become effective as provided in G.S. 150B-21.3(b1) as though 47
199+10 or more written objections had been received as provided in G.S. 150B-21.3(b2). 48
200+SECTION 2.1.(f) Sunset. – This section expires when permanent rules adopted as 49
201+required by subsections (d) and (e) of this section become effective. 50
202+ 51 General Assembly Of North Carolina Session 2025
203+House Bill 661-First Edition Page 5
204+NORTH CAROLINA STATE BUILDING CODE VOLUME REFERENCE TECHNICAL 1
205+CORRECTIONS 2
206+SECTION 2.2.(a) G.S. 44A-11.1(a) reads as rewritten: 3
207+"(a) With regard to any improvements to real property to which this Article is applicable 4
208+for which the costs of the undertaking are forty thousand dollars ($40,000) or more, either at the 5
209+time that the original building permit is issued or, in cases in which no building permit is required, 6
210+at the time the contract for the improvements is entered into with the owner, the owner shall 7
211+designate a lien agent no later than the time the owner first contracts with any person to improve 8
212+the real property. Provided, however, that the owner is not required to designate a lien agent for 9
213+improvements to an existing single-family residential dwelling unit as defined in G.S. 87-15.5(7) 10
214+that is occupied by the owner as a residence, or for the addition of an accessory building or 11
215+accessory structure as defined in the North Carolina Uniform Residential Building Code, the use 12
216+of which is incidental to that residence. The owner shall deliver written notice of designation to 13
217+its designated lien agent by any method authorized in G.S. 44A-11.2(f), and shall include in its 14
218+notice the street address, tax map lot and block number, reference to recorded instrument, or any 15
219+other description that reasonably identifies the real property for the improvements to which the 16
220+lien agent has been designated, and the owner's contact information. Designation of a lien agent 17
221+pursuant to this section does not make the lien agent an agent of the owner for purposes of 18
222+receiving a Claim of Lien on Real Property, a Notice of Claim of Lien upon Funds, a Notice of 19
223+Subcontract, or for any purpose other than the receipt of notices to the lien agent required under 20
224+G.S. 44A-11.2." 21
225+SECTION 2.2.(b) G.S. 58-45-5(5) reads as rewritten: 22
226+"(5) Insurable property. – Real property at fixed locations in the beach and coastal 23
227+area, including travel trailers when tied down at a fixed location, or the 24
228+tangible personal property located therein, but shall not include insurance on 25
229+motor vehicles; which property is determined by the Association, after 26
230+inspection and under the criteria specified in the plan of operation, to be in an 27
231+insurable condition. However, any one and two family dwellings built in 28
232+substantial accordance with the Federal Manufactured Home Construction 29
233+and Safety Standards, any predecessor or successor federal or State 30
234+construction or safety standards, and any further construction or safety 31
235+standards promulgated by the association and approved by the Commissioner, 32
236+or the North Carolina Uniform Residential Building Code and any structure 33
237+or building built in substantial compliance with the North Carolina State 34
238+Building Code, including the design-wind requirements, which is not 35
239+otherwise rendered uninsurable by reason of use or occupancy, shall be an 36
240+insurable risk within the meaning of this Article. However, none of the 37
241+following factors shall be considered in determining insurable condition: 38
242+neighborhood, area, location, environmental hazards beyond the control of the 39
243+applicant or owner of the property. Also, any structure begun on or after 40
244+January 1, 1970, not built in substantial compliance with the Federal 41
245+Manufactured Home Construction and Safety Standards, any predecessor or 42
246+successor federal or State construction or safety standards, and any further 43
247+construction or safety standards promulgated by the association and approved 44
248+by the Commissioner, or the North Carolina Uniform Residential Building 45
249+Code or the North Carolina State Building Code, including the design-wind 46
250+requirements therein, shall not be an insurable risk. The owner or applicant 47
251+shall furnish with the application proof in the form of a certificate from a local 48
252+building inspector, contractor, engineer or architect that the structure is built 49
253+in substantial accordance with the Federal Manufactured Home Construction 50
254+and Safety Standards, any predecessor or successor federal or State 51 General Assembly Of North Carolina Session 2025
255+Page 6 House Bill 661-First Edition
256+construction or safety standards, and any further construction or safety 1
257+standards promulgated by the association and approved by the Commissioner, 2
258+or the North Carolina Uniform Residential Building Code or the North 3
259+Carolina State Building Code; however, an individual certificate shall not be 4
260+necessary where the structure is located within a political subdivision which 5
261+has certified to the Association on an annual basis that it is enforcing the North 6
262+Carolina Uniform Residential Building Code or the North Carolina State 7
263+Building Code and has no plans to discontinue enforcing these codes during 8
264+that year." 9
265+SECTION 2.2.(c) G.S. 87-10(b1) reads as rewritten: 10
266+"(b1) Public utilities contractors constructing house and building sewer lines as provided in 11
267+sub-subdivision a. of subdivision (3) of subsection (b) of this section shall, at the junction of the 12
268+public sewer line and the house or building sewer line, install as an extension of the public sewer 13
269+line a cleanout at or near the property line that terminates at or above the finished grade. Public 14
270+utilities contractors constructing water service lines as provided in sub-subdivision a. of 15
271+subdivision (3) of subsection (b) of this section shall terminate the water service lines at a valve, 16
272+box, or meter at which the facilities from the building may be connected. Public utilities 17
273+contractors constructing fire service mains for connection to fire sprinkler systems shall terminate 18
274+those lines at a flange, cap, plug, or valve inside the building one foot above the finished floor. 19
275+All fire service mains shall comply with the NFPA standards for fire service mains as 20
276+incorporated into and made applicable by Volume V of the North Carolina State Building Code." 21
277+SECTION 2.2.(d) G.S. 87-14(a1) reads as rewritten: 22
278+"(a1) Any person, firm, or corporation, upon making application to the building inspector 23
279+or other authority of any incorporated city, town, or county in North Carolina charged with the 24
280+duty of issuing building permits pursuant to G.S. 160D-1110 for any improvements for which 25
281+the combined cost is to be forty thousand dollars ($40,000) or more, other than for improvements 26
282+to an existing single-family residential dwelling unit as defined in G.S. 87-15.5(7) that the owner 27
283+occupies as a residence, or for the addition of an accessory building or accessory structure as 28
284+defined in the North Carolina Uniform Residential Building Code, the use of which is incidental 29
285+to that residential dwelling unit, shall be required to provide to the building inspector or other 30
286+authority the name, physical and mailing address, telephone number, facsimile number, and 31
287+email address of the lien agent designated by the owner pursuant to G.S. 44A-11.1(a)." 32
288+SECTION 2.2.(e) G.S. 87-21(c1) reads as rewritten: 33
289+"(c1) Exemption. – The provisions of this Article shall not apply to a person who performs 34
290+the on-site assembly of a factory designed drain line system for a manufactured home, as defined 35
291+in G.S. 143-143.9(6), if the person (i) is a licensed manufactured home retailer, a licensed 36
292+manufactured home set-up contractor, or a full-time employee of either, (ii) obtains an inspection 37
293+by the local inspections department and (iii) performs the assembly according to the State North 38
294+Carolina Plumbing Code." 39
295+SECTION 2.2.(f) G.S. 143-150 reads as rewritten: 40
296+"§ 143-150. No electricity to be furnished units not in compliance. 41
297+It is unlawful for any person to furnish electricity for use in any manufactured home without 42
298+first ascertaining that the manufactured home and its electrical supply has been inspected 43
299+pursuant to G.S. 143-139 by the inspection authority having jurisdiction and found to comply 44
300+with the requirements of the State North Carolina Electrical Code. The certificate of compliance 45
301+issued by the inspection jurisdiction shall be accepted as evidence of compliance." 46
302+SECTION 2.2.(g) G.S. 160D-702(c) reads as rewritten: 47
303+"(c) A zoning or other development regulation shall not do any of the following: 48
304+(1) Set a minimum square footage of any structures subject to regulation under 49
305+the North Carolina Residential Code. 50 General Assembly Of North Carolina Session 2025
306+House Bill 661-First Edition Page 7
307+(2) Require a parking space to be larger than 9 feet wide by 20 feet long unless 1
308+the parking space is designated for handicap, parallel, or diagonal parking. 2
309+(3) Require additional fire apparatus access roads into developments of one- or 3
310+two-family dwellings that are not in compliance with the required number of 4
311+fire apparatus access roads into developments of one- or two-family dwellings 5
312+set forth in the Fire Code of the North Carolina Residential Code for One- and 6
313+Two-Family Dwellings.North Carolina Fire Code." 7
314+SECTION 2.2.(h) G.S. 160D-1117 reads as rewritten: 8
315+"§ 160D-1117. Periodic inspections. 9
316+The inspection department may make periodic inspections, subject to the governing board's 10
317+directions, for unsafe, unsanitary, or otherwise hazardous and unlawful conditions in buildings 11
318+or structures within its planning and development regulation jurisdiction. In exercising this 12
319+power, members of the department shall have a right to enter on any premises within the 13
320+jurisdiction of the department at all reasonable hours for the purposes of inspection or other 14
321+enforcement action, upon presentation of proper credentials. Inspections of dwellings shall 15
322+follow the provisions of G.S. 160D-1207. Nothing in this section shall be construed to prohibit 16
323+periodic inspections in accordance with State fire prevention code the North Carolina Fire Code 17
324+or as otherwise required by State law." 18
325+SECTION 2.2.(i) G.S. 160D-1207(a) reads as rewritten: 19
326+"(a) Except as provided in subsection (b) of this section, the inspection department may 20
327+make periodic inspections only when there is reasonable cause to believe that unsafe, unsanitary, 21
328+or otherwise hazardous or unlawful conditions may exist in a residential building or structure. 22
329+However, when the inspection department determines that a safety hazard exists in one of the 23
330+dwelling units within a multifamily building, which in the opinion of the inspector poses an 24
331+immediate threat to the occupant, the inspection department may inspect, in the absence of a 25
332+specific complaint and actual knowledge of the unsafe condition, additional dwelling units in the 26
333+multifamily building to determine if that same safety hazard exists. For purposes of this section, 27
334+the term "reasonable cause" means any of the following: (i) the landlord or owner has a history 28
335+of more than two verified violations of the housing ordinances or codes within a 12-month period, 29
336+(ii) there has been a complaint that substandard conditions exist within the building or there has 30
337+been a request that the building be inspected, (iii) the inspection department has actual knowledge 31
338+of an unsafe condition within the building, or (iv) violations of the local ordinances or codes are 32
339+visible from the outside of the property. In conducting inspections authorized under this section, 33
340+the inspection department shall not discriminate between single-family and multifamily buildings 34
341+or between owner-occupied and tenant-occupied buildings. In exercising this power, members 35
342+of the department shall have a right to enter on any premises within the jurisdiction of the 36
343+department at all reasonable hours for the purposes of inspection or other enforcement action, 37
344+upon presentation of proper credentials. Nothing in this section shall be construed to prohibit 38
345+periodic inspections in accordance with State fire prevention code the North Carolina Fire Code 39
346+or as otherwise required by State law." 40
347+SECTION 2.2.(j) G.S. 162A-900(c) reads as rewritten: 41
348+"(c) A local government unit, as defined in G.S. 162A-201, shall not implement a scoring 42
349+or preference system to allocate water or sewer service among applicants for water or sewer 43
350+service for residential development that does any of the following: 44
351+(1) Includes consideration of building design elements, as defined in 45
352+G.S. 160D-702(b). 46
353+(2) Sets a minimum square footage of any structures subject to regulation under 47
303354 the North Carolina Residential Code. 48
304-(2) Require a parking space to be larger than 9 feet wide by 20 feet long unless 49
355+(3) Requires a parking space to be larger than 9 feet wide by 20 feet long unless 49
305356 the parking space is designated for handicap, parallel, or diagonal parking. 50 General Assembly Of North Carolina Session 2025
306-House Bill 661-Second Edition Page 7
307-(3) Require additional fire apparatus access roads into developments of one- or 1
357+Page 8 House Bill 661-First Edition
358+(4) Requires additional fire apparatus access roads into developments of one- or 1
308359 two-family dwellings that are not in compliance with the required number of 2
309360 fire apparatus access roads into developments of one- or two-family dwellings 3
310-set forth in the Fire Code of the North Carolina Residential Code for One- and 4
311-Two-Family Dwellings.North Carolina Fire Code." 5
312-SECTION 2.2.(h) G.S. 160D-1117 reads as rewritten: 6
313-"§ 160D-1117. Periodic inspections. 7
314-The inspection department may make periodic inspections, subject to the governing board's 8
315-directions, for unsafe, unsanitary, or otherwise hazardous and unlawful conditions in buildings 9
316-or structures within its planning and development regulation jurisdiction. In exercising this 10
317-power, members of the department shall have a right to enter on any premises within the 11
318-jurisdiction of the department at all reasonable hours for the purposes of inspection or other 12
319-enforcement action, upon presentation of proper credentials. Inspections of dwellings shall 13
320-follow the provisions of G.S. 160D-1207. Nothing in this section shall be construed to prohibit 14
321-periodic inspections in accordance with State fire prevention code the North Carolina Fire Code 15
322-or as otherwise required by State law." 16
323-SECTION 2.2.(i) G.S. 160D-1207(a) reads as rewritten: 17
324-"(a) Except as provided in subsection (b) of this section, the inspection department may 18
325-make periodic inspections only when there is reasonable cause to believe that unsafe, unsanitary, 19
326-or otherwise hazardous or unlawful conditions may exist in a residential building or structure. 20
327-However, when the inspection department determines that a safety hazard exists in one of the 21
328-dwelling units within a multifamily building, which in the opinion of the inspector poses an 22
329-immediate threat to the occupant, the inspection department may inspect, in the absence of a 23
330-specific complaint and actual knowledge of the unsafe condition, additional dwelling units in the 24
331-multifamily building to determine if that same safety hazard exists. For purposes of this section, 25
332-the term "reasonable cause" means any of the following: (i) the landlord or owner has a history 26
333-of more than two verified violations of the housing ordinances or codes within a 12-month period, 27
334-(ii) there has been a complaint that substandard conditions exist within the building or there has 28
335-been a request that the building be inspected, (iii) the inspection department has actual knowledge 29
336-of an unsafe condition within the building, or (iv) violations of the local ordinances or codes are 30
337-visible from the outside of the property. In conducting inspections authorized under this section, 31
338-the inspection department shall not discriminate between single-family and multifamily buildings 32
339-or between owner-occupied and tenant-occupied buildings. In exercising this power, members 33
340-of the department shall have a right to enter on any premises within the jurisdiction of the 34
341-department at all reasonable hours for the purposes of inspection or other enforcement action, 35
342-upon presentation of proper credentials. Nothing in this section shall be construed to prohibit 36
343-periodic inspections in accordance with State fire prevention code the North Carolina Fire Code 37
344-or as otherwise required by State law." 38
345-SECTION 2.2.(j) G.S. 162A-900(c) reads as rewritten: 39
346-"(c) A local government unit, as defined in G.S. 162A-201, shall not implement a scoring 40
347-or preference system to allocate water or sewer service among applicants for water or sewer 41
348-service for residential development that does any of the following: 42
349-(1) Includes consideration of building design elements, as defined in 43
350-G.S. 160D-702(b). 44
351-(2) Sets a minimum square footage of any structures subject to regulation under 45
352-the North Carolina Residential Code. 46
353-(3) Requires a parking space to be larger than 9 feet wide by 20 feet long unless 47
354-the parking space is designated for handicap, parallel, or diagonal parking. 48
355-(4) Requires additional fire apparatus access roads into developments of one- or 49
356-two-family dwellings that are not in compliance with the required number of 50
357-fire apparatus access roads into developments of one- or two-family dwellings 51 General Assembly Of North Carolina Session 2025
358-Page 8 House Bill 661-Second Edition
359-set forth in the Fire Code of the North Carolina Residential Code.North 1
360-Carolina Fire Code." 2
361+set forth in the Fire Code of the North Carolina Residential Code.North 4
362+Carolina Fire Code." 5
363+ 6
364+PART III. VARIOUS CONTRACTOR BOARDS 7
365+ 8
366+INCREASE CERTAIN PLUMBING AND HEATING BOARD CONTRACTOR BOARD 9
367+EXAMINATION AND LICENSE FEES 10
368+SECTION 3.1.(a) G.S. 87-22 reads as rewritten: 11
369+"§ 87-22. License fee; expiration and renewal; reinstatement. 12
370+All persons, firms, or corporations engaged in the business of either plumbing or heating 13
371+contracting, or both, shall pay an annual license fee not to exceed one hundred fifty dollars 14
372+($150.00). three hundred dollars ($300.00). The annual fee for a piping or restricted classification 15
373+license shall not exceed that for a plumbing or heating license. All persons, firms, or corporations 16
374+engaged in the business of fire sprinkler contracting shall pay an initial application fee not to 17
375+exceed seventy-five dollars ($75.00) and an annual license fee not to exceed three hundred dollars 18
376+($300.00). In the event the Board refuses to license an applicant, the license fee deposited shall 19
377+be returned by the Board to the applicant. All licenses shall expire on the last day of December 20
378+in each year following their issuance or renewal. Persons who obtain a license by passing an 21
379+examination on or after October 1 of any year may receive a license for the remainder of the year 22
380+by paying one-half of the usual license fee for that classification of license. It shall be the duty 23
381+of the secretary and treasurer to send by United States mail or e-mail to every licensee registered 24
382+with the Board, notice to the licensee's last known address reflected on the records of the Board 25
383+of the amount of fee required for renewal of license, the notice to be mailed at least one month 26
384+in advance of the expiration of the license. The Board may require payment of all unpaid annual 27
385+fees before reissuing a license. In the event of failure on the part of any person, firm or 28
386+corporation to renew the license certificate annually and pay the required fee during the month 29
387+of January in each year, the Board shall increase the license fee by twenty-five dollars ($25.00) 30
388+an amount not to exceed fifty dollars ($50.00) to cover any additional expense associated with 31
389+late renewal. The Board shall require reexamination upon failure of a licensee to renew license 32
390+within three years after expiration. The Board may adopt regulations requiring attendance at 33
391+programs of continuing education as a condition of license renewal. A licensee employed full 34
392+time as a local government plumbing, heating, or mechanical inspector and holding qualifications 35
393+from the Code Officials Qualifications Board may renew the license at a fee not to exceed 36
394+twenty-five dollars ($25.00)." 37
395+SECTION 3.1.(b) G.S. 87-22.1 reads as rewritten: 38
396+"§ 87-22.1. Examination fees; funds disbursed upon warrant of chairman and 39
397+secretary-treasurer. 40
398+The Board shall charge a nonrefundable application and examination fee not to exceed one 41
399+hundred fifty dollars ($150.00) two hundred dollars ($200.00) for each examination or any part 42
400+of an examination, and the funds collected shall be disbursed upon warrant of the chairman and 43
401+secretary-treasurer, to partially defray general expenses of the Board. The application and 44
402+examination fee shall be retained by the Board whether or not the applicant is granted a license. 45
403+Until changed by the Board pursuant to rules adopted by the Board, the fee for each examination 46
404+or any part taken on a particular day shall be one hundred dollars ($100.00)." 47
405+SECTION 3.1.(c) This section becomes effective July 1, 2025, and applies to 48
406+applications for examination and licensure received by the Board on or after that date. 49
407+ 50 General Assembly Of North Carolina Session 2025
408+House Bill 661-First Edition Page 9
409+LIMITED EXEMPTION FOR PLUMBING AND HEATING CONTRACTOR BOARD 1
410+INVESTIGATIVE RECORDS FROM PUBLIC RECORDS 2
411+SECTION 3.2. Article 2 of Chapter 87 of the General Statutes is amended by adding 3
412+a new section to read: 4
413+"§ 87-22.3. Investigation records of the Board. 5
414+All records, papers, investigative files, investigative notes, reports, other investigative 6
415+information, and other documents containing information in the possession of or received, 7
416+gathered, or completed by the Board, its members, staff, employees, attorneys, or consultants as 8
417+a result of investigations, inquiries, assessments, or interviews conducted in connection with a 9
418+license application or disciplinary action initiated by the Board, shall not be considered public 10
419+records within the meaning of Chapter 132 of the General Statutes. Documents described in this 11
420+section are privileged, confidential, and not subject to discovery, subpoena, or other means of 12
421+legal compulsion for release to any person other than the Board or its employees or consultants. 13
422+If any record, paper, or other document containing information collected and compiled by or on 14
423+behalf of the Board is received and admitted in evidence in any hearing before the Board, the 15
424+documents shall be a public record within the meaning of Chapter 132 of the General Statutes." 16
425+ 17
426+INCREASE CERTAIN ELECTRICAL CONTRACTOR BOARD EXAMINATION AND 18
427+LICENSE FEES 19
428+SECTION 3.3.(a) G.S. 87-44 reads as rewritten: 20
429+"§ 87-44. Fees; license term. 21
430+The Board shall collect a fee from each applicant before granting or renewing a license under 22
431+the provisions of this Article; the annual license fee for the limited classification shall not exceed 23
432+one hundred dollars ($100.00) one hundred fifty dollars ($150.00) for each principal and each 24
433+branch place of business; the annual license fee for the intermediate classification shall not 25
434+exceed one hundred fifty dollars ($150.00) two hundred dollars ($200.00) for each principal and 26
435+each branch place of business; the annual license fee for the unlimited classification shall not 27
436+exceed two hundred dollars ($200.00) two hundred fifty dollars ($250.00) for each principal and 28
437+each branch place of business; and the annual license fee for the special restricted classifications 29
438+and for the single-family detached residential dwelling license shall not exceed one hundred 30
439+dollars ($100.00) one hundred fifty dollars ($150.00) for each principal and each branch place of 31
440+business. 32
441+The Board shall establish a system for the renewal of licenses with varying expiration dates. 33
442+However, all licenses issued by the Board shall expire one year after the date of issuance. 34
443+Licenses shall be renewed by the Board, subject to G.S. 87-44.1 and G.S. 87-47, after receipt and 35
444+evaluation of a renewal application from a licensee and the payment of the required fee. The 36
445+application shall be upon a form provided by the Board and shall require such information as the 37
446+Board may prescribe. Renewal applications and fees shall be due 30 days prior to the license 38
447+expiration date. 39
448+Upon failure to renew by the expiration date established by the Board, the license shall be 40
449+automatically revoked. This license may be reinstated by the Board, subject to G.S. 87-44.1 and 41
450+G.S. 87-47, upon payment of the license fee, an administrative fee of twenty-five dollars 42
451+($25.00), and all fees for the lapsed period during which the person, partnership, firm or 43
452+corporation engaged in electrical contracting, and, further, upon the satisfaction of such 44
453+experience requirements during the lapse as the Board may prescribe by rule. 45
454+The Board may collect fees from applicants for examinations in an amount not to exceed one 46
455+hundred twenty-five dollars ($125.00), two hundred dollars ($200.00), except the fee for a 47
456+specially arranged examination shall not exceed two hundred dollars ($200.00). In addition, the 48
457+Board may collect an examination review fee, not to exceed twenty-five dollars ($25.00), from 49
458+failed examinees who apply for a supervised review of their failed examinations." 50 General Assembly Of North Carolina Session 2025
459+Page 10 House Bill 661-First Edition
460+SECTION 3.3.(b) This section becomes effective July 1, 2025, and applies to 1
461+applications for examination and licensure received by the Board on or after that date. 2
361462 3
362-PART III. VARIOUS CONTRACTOR BOARDS 4
363- 5
364-INCREASE CERTAIN PLUM BING AND HEATING CONTRACTOR BOARD 6
365-EXAMINATION AND LICENSE FEES 7
366-SECTION 3.1.(a) G.S. 87-22 reads as rewritten: 8
367-"§ 87-22. License fee; expiration and renewal; reinstatement. 9
368-All persons, firms, or corporations engaged in the business of either plumbing or heating 10
369-contracting, or both, shall pay an annual license fee not to exceed one hundred fifty dollars 11
370-($150.00). three hundred dollars ($300.00). The annual fee for a piping or restricted classification 12
371-license shall not exceed that for a plumbing or heating license. All persons, firms, or corporations 13
372-engaged in the business of fire sprinkler contracting shall pay an initial application fee not to 14
373-exceed seventy-five dollars ($75.00) and an annual license fee not to exceed three hundred dollars 15
374-($300.00). In the event the Board refuses to license an applicant, the license fee deposited shall 16
375-be returned by the Board to the applicant. All licenses shall expire on the last day of December 17
376-in each year following their issuance or renewal. Persons who obtain a license by passing an 18
377-examination on or after October 1 of any year may receive a license for the remainder of the year 19
378-by paying one-half of the usual license fee for that classification of license. It shall be the duty 20
379-of the secretary and treasurer to send by United States mail or e-mail to every licensee registered 21
380-with the Board, notice to the licensee's last known address reflected on the records of the Board 22
381-of the amount of fee required for renewal of license, the notice to be mailed at least one month 23
382-in advance of the expiration of the license. The Board may require payment of all unpaid annual 24
383-fees before reissuing a license. In the event of failure on the part of any person, firm or 25
384-corporation to renew the license certificate annually and pay the required fee during the month 26
385-of January in each year, the Board shall increase the license fee by twenty-five dollars ($25.00) 27
386-an amount not to exceed fifty dollars ($50.00) to cover any additional expense associated with 28
387-late renewal. The Board shall require reexamination upon failure of a licensee to renew license 29
388-within three years after expiration. The Board may adopt regulations requiring attendance at 30
389-programs of continuing education as a condition of license renewal. A licensee employed full 31
390-time as a local government plumbing, heating, or mechanical inspector and holding qualifications 32
391-from the Code Officials Qualifications Board may renew the license at a fee not to exceed 33
392-twenty-five dollars ($25.00)." 34
393-SECTION 3.1.(b) G.S. 87-22.1 reads as rewritten: 35
394-"§ 87-22.1. Examination fees; funds disbursed upon warrant of chairman and 36
395-secretary-treasurer. 37
396-The Board shall charge a nonrefundable application and examination fee not to exceed one 38
397-hundred fifty dollars ($150.00) two hundred dollars ($200.00) for each examination or any part 39
398-of an examination, and the funds collected shall be disbursed upon warrant of the chairman and 40
399-secretary-treasurer, to partially defray general expenses of the Board. The application and 41
400-examination fee shall be retained by the Board whether or not the applicant is granted a license. 42
401-Until changed by the Board pursuant to rules adopted by the Board, the fee for each examination 43
402-or any part taken on a particular day shall be one hundred dollars ($100.00)." 44
403-SECTION 3.1.(c) This section becomes effective July 1, 2025, and applies to 45
404-applications for examination and licensure received by the Board on or after that date. 46
405- 47
406-LIMITED EXEMPTION FOR PLUMBING AND HEATING CONTRACTOR BOARD 48
407-INVESTIGATIVE RECORDS FROM PUBLIC RECORDS 49
408-SECTION 3.2. Article 2 of Chapter 87 of the General Statutes is amended by adding 50
409-a new section to read: 51 General Assembly Of North Carolina Session 2025
410-House Bill 661-Second Edition Page 9
411-"§ 87-22.3. Investigation records of the Board. 1
412-All records, papers, investigative files, investigative notes, reports, other investigative 2
413-information, and other documents containing information in the possession of or received, 3
414-gathered, or completed by the Board, its members, staff, employees, attorneys, or consultants as 4
415-a result of investigations, inquiries, assessments, or interviews conducted in connection with a 5
416-license application or disciplinary action initiated by the Board, shall not be considered public 6
417-records within the meaning of Chapter 132 of the General Statutes. Documents described in this 7
418-section are privileged, confidential, and not subject to discovery, subpoena, or other means of 8
419-legal compulsion for release to any person other than the Board or its employees or consultants. 9
420-If any record, paper, or other document containing information collected and compiled by or on 10
421-behalf of the Board is received and admitted in evidence in any hearing before the Board, the 11
422-documents shall be a public record within the meaning of Chapter 132 of the General Statutes." 12
423- 13
424-INCREASE CERTAIN ELECTRICAL CONTRACTOR BOARD EXAMINATION AND 14
425-LICENSE FEES 15
426-SECTION 3.3.(a) G.S. 87-44 reads as rewritten: 16
427-"§ 87-44. Fees; license term. 17
428-The Board shall collect a fee from each applicant before granting or renewing a license under 18
429-the provisions of this Article; the annual license fee for the limited classification shall not exceed 19
430-one hundred dollars ($100.00) one hundred fifty dollars ($150.00) for each principal and each 20
431-branch place of business; the annual license fee for the intermediate classification shall not 21
432-exceed one hundred fifty dollars ($150.00) two hundred dollars ($200.00) for each principal and 22
433-each branch place of business; the annual license fee for the unlimited classification shall not 23
434-exceed two hundred dollars ($200.00) two hundred fifty dollars ($250.00) for each principal and 24
435-each branch place of business; and the annual license fee for the special restricted classifications 25
436-and for the single-family detached residential dwelling license shall not exceed one hundred 26
437-dollars ($100.00) one hundred fifty dollars ($150.00) for each principal and each branch place of 27
438-business. 28
439-The Board shall establish a system for the renewal of licenses with varying expiration dates. 29
440-However, all licenses issued by the Board shall expire one year after the date of issuance. 30
441-Licenses shall be renewed by the Board, subject to G.S. 87-44.1 and G.S. 87-47, after receipt and 31
442-evaluation of a renewal application from a licensee and the payment of the required fee. The 32
443-application shall be upon a form provided by the Board and shall require such information as the 33
444-Board may prescribe. Renewal applications and fees shall be due 30 days prior to the license 34
445-expiration date. 35
446-Upon failure to renew by the expiration date established by the Board, the license shall be 36
447-automatically revoked. This license may be reinstated by the Board, subject to G.S. 87-44.1 and 37
448-G.S. 87-47, upon payment of the license fee, an administrative fee of twenty-five dollars 38
449-($25.00), and all fees for the lapsed period during which the person, partnership, firm or 39
450-corporation engaged in electrical contracting, and, further, upon the satisfaction of such 40
451-experience requirements during the lapse as the Board may prescribe by rule. 41
452-The Board may collect fees from applicants for examinations in an amount not to exceed one 42
453-hundred twenty-five dollars ($125.00), two hundred dollars ($200.00), except the fee for a 43
454-specially arranged examination shall not exceed two hundred dollars ($200.00). In addition, the 44
455-Board may collect an examination review fee, not to exceed twenty-five dollars ($25.00), from 45
456-failed examinees who apply for a supervised review of their failed examinations." 46
457-SECTION 3.3.(b) This section becomes effective July 1, 2025, and applies to 47
458-applications for examination and licensure received by the Board on or after that date. 48
459- 49
460-LIMITED EXEMPTION FOR ELECTRICAL CONTRACTOR BOARD 50
461-INVESTIGATIVE RECORDS FROM PUBLIC RECORDS 51 General Assembly Of North Carolina Session 2025
462-Page 10 House Bill 661-Second Edition
463-SECTION 3.4. Article 4 of Chapter 87 of the General Statutes is amended by adding 1
464-a new section to read: 2
465-"§ 87-47.1. Investigation records of the Board. 3
466-All records, papers, investigative files, investigative notes, reports, other investigative 4
467-information, and other documents containing information in the possession of or received, 5
468-gathered, or completed by the Board, its members, staff, employees, attorneys, or consultants as 6
469-a result of investigations, inquiries, assessments, or interviews conducted in connection with a 7
470-license application or disciplinary action initiated by the Board shall not be considered public 8
471-records within the meaning of Chapter 132 of the General Statutes. Documents described in this 9
472-section are privileged, confidential, and not subject to discovery, subpoena, or other means of 10
473-legal compulsion for release to any person other than the Board or its employees or consultants. 11
474-If any record, paper, or other document containing information collected and compiled by or on 12
475-behalf of the Board is received and admitted in evidence in any hearing before the Board, the 13
476-documents shall be a public record within the meaning of Chapter 132 of the General Statutes." 14
477- 15
478-EXEMPT CERTAIN CONSTRUCTION TRADES FROM GENERAL CONTRACTOR 16
479-LICENSURE REQUIREMENTS AND RELATED BUILDING PERMIT EXEMPTIONS 17
480-SECTION 3.5.(a) G.S. 87-1 reads as rewritten: 18
481-"§ 87-1. "General contractor" defined; exceptions. 19
482-(a) For the purpose of this Article any person or firm or corporation who for a fixed price, 20
483-commission, fee, or wage, undertakes to bid upon or to construct or who undertakes to 21
484-superintend or manage, on his the person's own behalf or for any person, firm, or corporation that 22
485-is not licensed as a general contractor pursuant to this Article, the construction of any building, 23
486-highway, public utilities, grading or any improvement or structure where the cost of the 24
487-undertaking is forty thousand dollars ($40,000) or more, or undertakes to erect a North Carolina 25
488-labeled manufactured modular building meeting the North Carolina State Building Code, shall 26
489-be deemed to be a "general contractor" engaged in the business of general contracting in the State 27
490-of North Carolina. 28
491-(b) This section shall not apply to the following: 29
492-(1) Persons, firms, or corporations furnishing or erecting industrial equipment, 30
493-power plan equipment, radial brick chimneys, and monuments. 31
494-(2) Any person, firm, or corporation who constructs or alters a building on land 32
495-owned by that person, firm, or corporation provided (i) the building is 33
496-intended solely for occupancy by that person and his family, firm, or 34
497-corporation after completion; and (ii) the person, firm, or corporation 35
498-complies with G.S. 87-14. If the building is not occupied solely by the person 36
499-and his that person's family, firm, or corporation for at least 12 months 37
500-following completion, it shall be presumed that the person, firm, or 38
501-corporation did not intend the building solely for occupancy by that person 39
502-and his that person's family, firm, or corporation. 40
503-(3) Any person engaged in the business of farming who constructs or alters a 41
504-building on land owned by that person and used in the business of farming, 42
505-when the building is intended for use by that person after completion. 43
506-(4) Any person engaged in the business of providing the following installation, 44
507-maintenance, or replacement services related to the construction or 45
508-improvement of a building or structure: 46
509-a. Floor covering services. 47
510-b. Painting services." 48
511-SECTION 3.5.(b) G.S. 160D-1110 is amended by adding a new subsection to read: 49 General Assembly Of North Carolina Session 2025
512-House Bill 661-Second Edition Page 11
513-"(c1) A building permit is not required for installation, maintenance, or replacement 1
514-services described in G.S. 87-1(b)(4) in the construction or improvement of a building or 2
515-structure subject to the North Carolina Residential Code." 3
516-SECTION 3.5.(c) G.S. 143-138 is amended by adding a new subsection to read: 4
517-"(b25) Permit Exclusion for Certain Services. – No permit shall be required under the Code 5
518-for installation, maintenance, or replacement services described in G.S. 87-1(b)(4) in the 6
519-construction or improvement of a building or structure subject to the North Carolina Residential 7
520-Code." 8
521-SECTION 3.5.(d) This section becomes effective July 1, 2025. 9
522- 10
523-REMOVE BOARD FOR GENERAL CONTRACTORS REQUIREMENT TO CREDIT 11
524-THE NORTH CAROLINA ENGINEERING FOUNDATION 12
525-SECTION 3.6.(a) G.S. 87-7 reads as rewritten: 13
526-"§ 87-7. Records of Board; disposition of funds. 14
527-The secretary-treasurer shall keep a record of the proceedings of the said Board and shall 15
528-receive and account for all moneys derived from the operation of this Article. Any funds 16
529-remaining in the hands of the secretary-treasurer to the credit of the Board after the expenses of 17
530-the Board for the current year have been paid shall be paid over to the Greater University of 18
531-North Carolina for the use of the School of Engineering through the North Carolina Engineering 19
532-Foundation. The Board has the right, however, to retain at least ten percent (10%) of the total 20
533-expense it incurs for a year's operation to meet any emergency that may arise. As an expense of 21
534-the Board, said the Board is authorized to expend such funds as it deems necessary to provide 22
535-retirement and disability compensation for its employees." 23
536-SECTION 3.6.(b) This section becomes effective July 1, 2025. 24
537- 25
538-AMEND NORTH CAROLINA LICENSING BOARD FOR GENERAL CONTRACTORS 26
539-DISCIPLINARY ACTION AUTHORITY 27
540-SECTION 3.7.(a) G.S. 87-11 reads as rewritten: 28
541-"§ 87-11. Revocation of license; charges of fraud, negligence, incompetency, etc.; 29
542-Disciplinary action; hearing thereon; reissuance of certificate.procedures. 30
543-(a) The Board shall have the power to refuse to issue or renew or renew, revoke, suspend, 31
544-or restrict a certificate of license or to issue a reprimand or take other disciplinary action if a 32
545-general contractor licensed under this Article is found guilty of any licensee, qualifier, or 33
546-applicant: 34
547-(1) Employs the use of fraud or deceit misrepresentation in obtaining or 35
548-attempting to obtain or renew a license, or license. 36
549-(2) Commits an act of gross negligence, incompetency, or misconduct in the 37
550-practice of his or her profession, or willful violation of general contracting. 38
551-(3) Willfully violates any provision of this Article.Article, or any rules adopted 39
552-by the Board. 40
553-(4) Willfully violates any order of the Board. 41
554-(a1) The Board shall also have the power to revoke, suspend, or otherwise restrict the 42
555-ability of any person to act as a qualifying party for a license to practice general contracting, as 43
556-provided in G.S. 87-10(c), for any copartnership, corporation or any other organization or 44
557-combination, if that person committed any act in violation of the provisions of this section and 45
558-the Board may also take disciplinary action against the individual license held by that person. 46
559-(a1)(a2) Any person may prefer charges of fraud, deceit, negligence, or misconduct person, 47
560-including the Board on its own initiative, may submit a complaint against any general contractor 48
561-licensed licensee, qualifier, or applicant under this Article. The charges All complaints shall be 49
562-in writing and sworn affirmed to by the complainant and submitted to the Board. The Board shall 50
563-not accept complaints from an anonymous complainant. The Board is authorized to investigate 51 General Assembly Of North Carolina Session 2025
564-Page 12 House Bill 661-Second Edition
565-complaints alleging violations of this Article or any rule promulgated by the Board. The charges, 1
566-complaint, unless dismissed without hearing by the Board as unfounded or trivial, Board, shall 2
567-be heard and determined by the Board in accordance with the provisions of Chapter 150B of the 3
568-General Statutes. 4
569-(b) The Board shall adopt and publish guidelines, rules consistent with the provisions of 5
570-this Article, governing the suspension and revocation of licenses.Article. 6
571-(c) The Board shall establish and maintain a system whereby detailed records are kept 7
572-regarding complaints against each licensee. This record shall include, for each licensee, the date 8
573-and nature of each complaint, investigatory action taken by the Board, any findings by the Board, 9
574-and the disposition of the matter. 10
575-(d) The Board may reissue a license to any person, firm or corporation whose license has 11
576-been revoked: Provided, five or more members of the Board vote in favor of such reissuance for 12
577-reasons the Board may deem sufficient. 13
578-The Board shall immediately notify the Secretary of State of its findings in the case of the 14
579-revocation of a license or of the reissuance of a revoked license. 15
580-A certificate of license to replace any certificate lost, destroyed or mutilated may be issued 16
581-subject to the rules and regulations of the Board. 17
582-(e) The Board shall be entitled to recover its reasonable administrative costs associated 18
583-with the investigation and prosecution of a complaint alleging a violation of this Article or rules 19
584-or regulations of the Board up to a maximum of five thousand dollars ($5,000) per violation for 20
585-any licensee or qualifying party licensee, qualifier, or applicant found to have committed any of 21
586-the following:violations enumerated in subdivisions (1) through (4) of subsection (a) of this 22
587-section. 23
588-(1) Fraud or deceit in obtaining a license. 24
589-(2) Gross negligence, incompetency, or misconduct in the practice of general 25
590-contracting. 26
591-(3) Willful violation of any provision of this Article." 27
592-SECTION 3.7.(b) G.S. 87-15.3 reads as rewritten: 28
593-"§ 87-15.3. Identity of complaining party confidential. 29
594-Once a complaint has been filed with the Board against a licensee licensee, qualifier, or 30
595-applicant or an unlicensed general contractor, the Board may, in its discretion, keep the identity 31
596-of a complaining party confidential and not a public record within the meaning of Chapter 132 32
597-of the General Statutes until a time no later than the receipt of the complaint by the full Board 33
598-for a disciplinary hearing or injunctive action." 34
599-SECTION 3.7.(c) This section is effective when it becomes law and applies to 35
600-actions filed or commenced on or after that date. 36
601- 37
602-PROHIBIT GENERAL CONTRACTOR REEXAMINATION WHILE COURT 38
603-AWARDS REMAIN UNPAID 39
604-SECTION 3.8.(a) G.S. 87-13.1 reads as rewritten: 40
605-"§ 87-13.1. Board may seek injunctive relief; attorney's fee. 41
606-(a) Whenever the Board determines that any person, firm or corporation has violated or 42
607-is violating any of the provisions of this Article or rules and regulations of the Board promulgated 43
608-under this Article, the Board may apply to the superior court for a restraining order and injunction 44
609-to restrain the violation; and the superior courts have jurisdiction to grant the requested relief, 45
610-irrespective of whether or not criminal prosecution has been instituted or administrative sanctions 46
611-imposed by reason of the violation. 47
612-(b) When the Board prevails in actions brought under this section, the court shall award 48
613-the Board its reasonable attorney's fee not to exceed five thousand dollars ($5,000) fees plus the 49
614-costs associated with obtaining the relief and the investigation and prosecution of the violation. 50 General Assembly Of North Carolina Session 2025
615-House Bill 661-Second Edition Page 13
616-(c) Examination applicants who have failed to pay a court award pursuant to subsection 1
617-(b) of this section shall not be allowed to take any examination offered by the Board until the 2
618-award has been satisfied." 3
619-SECTION 3.8.(b) This section is effective when it becomes law and applies to 4
620-actions filed or commenced on or after that date. 5
621- 6
622-MODERNIZE GENERAL CONTRACTOR LAWS 7
623-SECTION 3.9. Article 1 of Chapter 87 of the General Statutes reads as rewritten: 8
624-"Chapter 87. 9
625-"Contractors. 10
626-"Article 1. 11
627-"General Contractors. 12
628-… 13
629-"§ 87-2. Licensing Board; organization. 14
630-There is created the State Licensing Board for General Contractors consisting of nine 15
631-members appointed by the Governor for staggered five-year terms. Five of the members shall be 16
632-general contractors, one member shall be a registered engineer who practices structural 17
633-engineering, and three shall be public members. Of the general contractor members, one shall 18
634-have as the larger part of his the contractor's business the construction of highways; one shall 19
635-have as the larger part of his the contractor's business the construction of public utilities; one 20
636-shall have as the larger part of his the contractor's business the construction of buildings; and two 21
637-shall have as a larger part of their the contractor's businesses the construction of residences, one 22
638-of whom shall be the holder of an unlimited general contractor's license. The public members 23
639-shall have no ties with the construction industry and shall represent the interests of the public at 24
640-large. Members shall serve until the expiration of their respective terms and until their successors 25
641-are appointed and qualified. Vacancies occurring during a term shall be filled by appointment of 26
642-the Governor for the remainder of the unexpired term. The Governor may remove any member 27
643-of the Board for misconduct, incompetency, or neglect of duty. No Board member shall serve 28
644-more than two complete consecutive terms. 29
645-"§ 87-3. Members of Board to take oath. 30
646-Each member of the Board shall, before entering upon the discharge of the duties of his the 31
647-member's office, take and file with the Secretary of State an oath in writing to properly perform 32
648-the duties of his the member's office as a member of said the Board and to uphold the Constitution 33
649-of North Carolina and the Constitution of the United States. 34
650-"§ 87-4. First meeting of Board; officers; secretary-treasurer and assistants. 35
651-The said Board shall, within 30 days after its appointment by the Governor, meet in the City 36
652-of Raleigh, at a time and place to be designated by the Governor, and organize by electing a 37
653-chairman, a vice-chairman, chair, a vice-chair, and a secretary-treasurer, each to serve for one 38
654-year. Said The Board shall have power to make such bylaws, rules and regulations as it shall 39
655-deem best, provided the same are not in conflict with the laws of North Carolina. The 40
656-secretary-treasurer shall give bond in such sum as the Board shall determine, with such security 41
657-as shall be approved by the Board, said bond to be conditioned for the faithful performance of 42
658-the duties of his the secretary-treasurer's office and for the faithful accounting of all moneys and 43
659-other property as shall come into his hands. property of the Board. The secretary-treasurer need 44
660-not be a member of the Board, and the Board. The Board is hereby authorized to employ a 45
661-full-time secretary-treasurer, secretary-treasurer and such other assistants and make such other 46
662-expenditures as may be necessary to the proper carrying out of the provisions of this Article. 47
663-Payment of compensation and reimbursement of expenses of board members shall be governed 48
664-by G.S. 93B-5. 49
463+LIMITED EXEMPTION FOR ELECTRICAL CONTRACTOR BOARD 4
464+INVESTIGATIVE RECORDS FROM PUBLIC RECORDS 5
465+SECTION 3.4. Article 4 of Chapter 87 of the General Statutes is amended by adding 6
466+a new section to read: 7
467+"§ 87-47.1. Investigation records of the Board. 8
468+All records, papers, investigative files, investigative notes, reports, other investigative 9
469+information, and other documents containing information in the possession of or received, 10
470+gathered, or completed by the Board, its members, staff, employees, attorneys, or consultants as 11
471+a result of investigations, inquiries, assessments, or interviews conducted in connection with a 12
472+license application or disciplinary action initiated by the Board shall not be considered public 13
473+records within the meaning of Chapter 132 of the General Statutes. Documents described in this 14
474+section are privileged, confidential, and not subject to discovery, subpoena, or other means of 15
475+legal compulsion for release to any person other than the Board or its employees or consultants. 16
476+If any record, paper, or other document containing information collected and compiled by or on 17
477+behalf of the Board is received and admitted in evidence in any hearing before the Board, the 18
478+documents shall be a public record within the meaning of Chapter 132 of the General Statutes." 19
479+ 20
480+EXEMPT CERTAIN CONSTRUCTION TRADES FROM GENERAL CONTRACTOR 21
481+LICENSURE REQUIREMENTS 22
482+SECTION 3.5.(a) G.S. 87-1 reads as rewritten: 23
483+"§ 87-1. "General contractor" defined; exceptions. 24
484+(a) For the purpose of this Article any person or firm or corporation who for a fixed price, 25
485+commission, fee, or wage, undertakes to bid upon or to construct or who undertakes to 26
486+superintend or manage, on his the person's own behalf or for any person, firm, or corporation that 27
487+is not licensed as a general contractor pursuant to this Article, the construction of any building, 28
488+highway, public utilities, grading or any improvement or structure where the cost of the 29
489+undertaking is forty thousand dollars ($40,000) or more, or undertakes to erect a North Carolina 30
490+labeled manufactured modular building meeting the North Carolina State Building Code, shall 31
491+be deemed to be a "general contractor" engaged in the business of general contracting in the State 32
492+of North Carolina. 33
493+(b) This section shall not apply to the following: 34
494+(1) Persons, firms, or corporations furnishing or erecting industrial equipment, 35
495+power plan equipment, radial brick chimneys, and monuments. 36
496+(2) Any person, firm, or corporation who constructs or alters a building on land 37
497+owned by that person, firm, or corporation provided (i) the building is 38
498+intended solely for occupancy by that person and his family, firm, or 39
499+corporation after completion; and (ii) the person, firm, or corporation 40
500+complies with G.S. 87-14. If the building is not occupied solely by the person 41
501+and his that person's family, firm, or corporation for at least 12 months 42
502+following completion, it shall be presumed that the person, firm, or 43
503+corporation did not intend the building solely for occupancy by that person 44
504+and his that person's family, firm, or corporation. 45
505+(3) Any person engaged in the business of farming who constructs or alters a 46
506+building on land owned by that person and used in the business of farming, 47
507+when the building is intended for use by that person after completion. 48
508+(4) Any person engaged in the business of providing the following services 49
509+related to the construction or improvement of a building or structure: 50
510+a. Floor coverings. 51 General Assembly Of North Carolina Session 2025
511+House Bill 661-First Edition Page 11
512+b. Painting." 1
513+SECTION 3.5.(b) This section becomes effective July 1, 2025. 2
514+ 3
515+REMOVE BOARD FOR GENERAL CONTRACTORS REQUIREMENT TO CREDIT 4
516+THE NORTH CAROLINA ENGINEERI NG FOUNDATION 5
517+SECTION 3.6.(a) G.S. 87-7 reads as rewritten: 6
518+"§ 87-7. Records of Board; disposition of funds. 7
519+The secretary-treasurer shall keep a record of the proceedings of the said Board and shall 8
520+receive and account for all moneys derived from the operation of this Article. Any funds 9
521+remaining in the hands of the secretary-treasurer to the credit of the Board after the expenses of 10
522+the Board for the current year have been paid shall be paid over to the Greater University of 11
523+North Carolina for the use of the School of Engineering through the North Carolina Engineering 12
524+Foundation. The Board has the right, however, to retain at least ten percent (10%) of the total 13
525+expense it incurs for a year's operation to meet any emergency that may arise. As an expense of 14
526+the Board, said the Board is authorized to expend such funds as it deems necessary to provide 15
527+retirement and disability compensation for its employees." 16
528+SECTION 3.6.(b) This section becomes effective July 1, 2025. 17
529+ 18
530+AMEND NORTH CAROLINA LICENSING BOARD FOR GENERAL CONTRACTORS 19
531+DISCIPLINARY ACTION AUTHORITY 20
532+SECTION 3.7.(a) G.S. 87-11 reads as rewritten: 21
533+"§ 87-11. Revocation of license; charges of fraud, negligence, incompetency, etc.; 22
534+Disciplinary action; hearing thereon; reissuance of certificate.procedures. 23
535+(a) The Board shall have the power to refuse to issue or renew or renew, revoke, suspend, 24
536+or restrict a certificate of license or to issue a reprimand or take other disciplinary action if a 25
537+general contractor licensed under this Article is found guilty of any licensee, qualifier, or 26
538+applicant: 27
539+(1) Employs the use of fraud or deceit misrepresentation in obtaining or 28
540+attempting to obtain or renew a license, or license. 29
541+(2) Commits an act of gross negligence, incompetency, or misconduct in the 30
542+practice of his or her profession, or willful violation of general contracting. 31
543+(3) Willfully violates any provision of this Article.Article, or any rules adopted 32
544+by the Board. 33
545+(4) Willfully violates any order of the Board. 34
546+(a1) The Board shall also have the power to revoke, suspend, or otherwise restrict the 35
547+ability of any person to act as a qualifying party for a license to practice general contracting, as 36
548+provided in G.S. 87-10(c), for any copartnership, corporation or any other organization or 37
549+combination, if that person committed any act in violation of the provisions of this section and 38
550+the Board may also take disciplinary action against the individual license held by that person. 39
551+(a1)(a2) Any person may prefer charges of fraud, deceit, negligence, or misconduct person, 40
552+including the Board on its own initiative, may submit a complaint against any general contractor 41
553+licensed licensee, qualifier, or applicant under this Article. The charges All complaints shall be 42
554+in writing and sworn affirmed to by the complainant and submitted to the Board. The Board shall 43
555+not accept complaints from an anonymous complainant. The Board is authorized to investigate 44
556+complaints alleging violations of this Article or any rule promulgated by the Board. The charges, 45
557+complaint, unless dismissed without hearing by the Board as unfounded or trivial, Board, shall 46
558+be heard and determined by the Board in accordance with the provisions of Chapter 150B of the 47
559+General Statutes. 48
560+(b) The Board shall adopt and publish guidelines, rules consistent with the provisions of 49
561+this Article, governing the suspension and revocation of licenses.Article. 50 General Assembly Of North Carolina Session 2025
562+Page 12 House Bill 661-First Edition
563+(c) The Board shall establish and maintain a system whereby detailed records are kept 1
564+regarding complaints against each licensee. This record shall include, for each licensee, the date 2
565+and nature of each complaint, investigatory action taken by the Board, any findings by the Board, 3
566+and the disposition of the matter. 4
567+(d) The Board may reissue a license to any person, firm or corporation whose license has 5
568+been revoked: Provided, five or more members of the Board vote in favor of such reissuance for 6
569+reasons the Board may deem sufficient. 7
570+The Board shall immediately notify the Secretary of State of its findings in the case of the 8
571+revocation of a license or of the reissuance of a revoked license. 9
572+A certificate of license to replace any certificate lost, destroyed or mutilated may be issued 10
573+subject to the rules and regulations of the Board. 11
574+(e) The Board shall be entitled to recover its reasonable administrative costs associated 12
575+with the investigation and prosecution of a complaint alleging a violation of this Article or rules 13
576+or regulations of the Board up to a maximum of five thousand dollars ($5,000) per violation for 14
577+any licensee or qualifying party licensee, qualifier, or applicant found to have committed any of 15
578+the following:violations enumerated in subdivisions (1) through (4) of subsection (a) of this 16
579+section. 17
580+(1) Fraud or deceit in obtaining a license. 18
581+(2) Gross negligence, incompetency, or misconduct in the practice of general 19
582+contracting. 20
583+(3) Willful violation of any provision of this Article." 21
584+SECTION 3.7.(b) G.S. 87-15.3 reads as rewritten: 22
585+"§ 87-15.3. Identity of complaining party confidential. 23
586+Once a complaint has been filed with the Board against a licensee licensee, qualifier, or 24
587+applicant or an unlicensed general contractor, the Board may, in its discretion, keep the identity 25
588+of a complaining party confidential and not a public record within the meaning of Chapter 132 26
589+of the General Statutes until a time no later than the receipt of the complaint by the full Board 27
590+for a disciplinary hearing or injunctive action." 28
591+SECTION 3.7.(c) This section is effective when it becomes law and applies to 29
592+actions filed or commenced on or after that date. 30
593+ 31
594+PROHIBIT GENERAL CONTRACTOR REEXAMINATION WHILE COURT 32
595+AWARDS REMAIN UNPAID 33
596+SECTION 3.8.(a) G.S. 87-13.1 reads as rewritten: 34
597+"§ 87-13.1. Board may seek injunctive relief; attorney's fee. 35
598+(a) Whenever the Board determines that any person, firm or corporation has violated or 36
599+is violating any of the provisions of this Article or rules and regulations of the Board promulgated 37
600+under this Article, the Board may apply to the superior court for a restraining order and injunction 38
601+to restrain the violation; and the superior courts have jurisdiction to grant the requested relief, 39
602+irrespective of whether or not criminal prosecution has been instituted or administrative sanctions 40
603+imposed by reason of the violation. 41
604+(b) When the Board prevails in actions brought under this section, the court shall award 42
605+the Board its reasonable attorney's fee not to exceed five thousand dollars ($5,000) fees plus the 43
606+costs associated with obtaining the relief and the investigation and prosecution of the violation. 44
607+(c) Examination applicants who have failed to pay a court award pursuant to subsection 45
608+(b) of this section shall not be allowed to take any examination offered by the Board until the 46
609+award has been satisfied." 47
610+SECTION 3.8.(b) This section is effective when it becomes law and applies to 48
611+actions filed or commenced on or after that date. 49
612+ 50
613+MODERNIZE GENERAL CONTRACTOR LAWS 51 General Assembly Of North Carolina Session 2025
614+House Bill 661-First Edition Page 13
615+SECTION 3.9. Article 1 of Chapter 87 of the General Statutes reads as rewritten: 1
616+"Chapter 87. 2
617+"Contractors. 3
618+"Article 1. 4
619+"General Contractors. 5
620+… 6
621+"§ 87-2. Licensing Board; organization. 7
622+There is created the State Licensing Board for General Contractors consisting of nine 8
623+members appointed by the Governor for staggered five-year terms. Five of the members shall be 9
624+general contractors, one member shall be a registered engineer who practices structural 10
625+engineering, and three shall be public members. Of the general contractor members, one shall 11
626+have as the larger part of his the contractor's business the construction of highways; one shall 12
627+have as the larger part of his the contractor's business the construction of public utilities; one 13
628+shall have as the larger part of his the contractor's business the construction of buildings; and two 14
629+shall have as a larger part of their the contractor's businesses the construction of residences, one 15
630+of whom shall be the holder of an unlimited general contractor's license. The public members 16
631+shall have no ties with the construction industry and shall represent the interests of the public at 17
632+large. Members shall serve until the expiration of their respective terms and until their successors 18
633+are appointed and qualified. Vacancies occurring during a term shall be filled by appointment of 19
634+the Governor for the remainder of the unexpired term. The Governor may remove any member 20
635+of the Board for misconduct, incompetency, or neglect of duty. No Board member shall serve 21
636+more than two complete consecutive terms. 22
637+"§ 87-3. Members of Board to take oath. 23
638+Each member of the Board shall, before entering upon the discharge of the duties of his the 24
639+member's office, take and file with the Secretary of State an oath in writing to properly perform 25
640+the duties of his the member's office as a member of said the Board and to uphold the Constitution 26
641+of North Carolina and the Constitution of the United States. 27
642+"§ 87-4. First meeting of Board; officers; secretary-treasurer and assistants. 28
643+The said Board shall, within 30 days after its appointment by the Governor, meet in the City 29
644+of Raleigh, at a time and place to be designated by the Governor, and organize by electing a 30
645+chairman, a vice-chairman, chair, a vice-chair, and a secretary-treasurer, each to serve for one 31
646+year. Said The Board shall have power to make such bylaws, rules and regulations as it shall 32
647+deem best, provided the same are not in conflict with the laws of North Carolina. The 33
648+secretary-treasurer shall give bond in such sum as the Board shall determine, with such security 34
649+as shall be approved by the Board, said bond to be conditioned for the faithful performance of 35
650+the duties of his the secretary-treasurer's office and for the faithful accounting of all moneys and 36
651+other property as shall come into his hands. property of the Board. The secretary-treasurer need 37
652+not be a member of the Board, and the Board. The Board is hereby authorized to employ a 38
653+full-time secretary-treasurer, secretary-treasurer and such other assistants and make such other 39
654+expenditures as may be necessary to the proper carrying out of the provisions of this Article. 40
655+Payment of compensation and reimbursement of expenses of board members shall be governed 41
656+by G.S. 93B-5. 42
657+… 43
658+"§ 87-8. Records; roster of licensed contractors; report to Governor. 44
659+The secretary-treasurer shall keep a record of the proceedings of the Board and a register of 45
660+all applicants for license showing for each the date of application, name, qualifications, place of 46
661+business, place of residence, and whether license was granted or refused. The books and register 47
662+of this the Board shall be prima facie evidence of all matters recorded therein. A roster showing 48
663+the names and places of business and of residence of all licensed general contractors shall be 49
664+prepared by the secretary of the Board during the month of March of each year; the roster shall 50
665+be printed by the Board out of funds of the Board as provided in G.S. 87-7, with copies being 51 General Assembly Of North Carolina Session 2025
666+Page 14 House Bill 661-First Edition
667+made available to contractors and members of the public, at cost, upon request, or furnished 1
668+without cost, as directed by the Board. On or before the last day of March of each year the Board 2
669+shall submit to the Governor a report of its transactions for the preceding year, and shall file with 3
670+the Secretary of State a copy of the report, together with a complete statement of the receipts and 4
671+expenditures of the Board, attested by the affidavits of the chairman and the secretary, and a copy 5
672+of the roster of licensed general contractors. 6
673+"§ 87-9. Compliance with Federal Highway Act, etc.; contracts financed by federal road 7
674+funds; contracts concerning water or waste water systems. 8
675+Nothing in this Article shall operate to prevent the Department of Transportation from 9
676+complying with any act of Congress and any rules and regulations promulgated pursuant thereto 10
677+for carrying out the provisions of the Federal Highway Act, or shall apply to any person, firm or 11
678+corporation proposing to submit a bid or enter into contract for any work to be financed in whole 12
679+or in part with federal aid road funds in such a manner as that will conflict with any act of 13
680+Congress or any such rules and regulations promulgated pursuant thereto. 14
681+Neither shall anything in this Article prevent the State of North Carolina or any of its political 15
682+subdivisions or their contractors from complying with any act of Congress and any rules and 16
683+regulations promulgated pursuant thereto for carrying out the provisions of any federal program 17
684+to assist in the planning, financing, or construction of drinking water or waste water processing, 18
685+collection, and disposal systems and facilities. 19
686+… 20
687+"§ 87-10. Application for license; examination; certificate; renewal. 21
688+… 22
689+(c) If an applicant is an individual, examination may be taken by his the applicant's 23
690+personal appearance for examination, or by the appearance for examination of one or more of his 24
691+the applicant's responsible managing employees. If an applicant is a copartnership, a corporation, 25
692+or any other combination or organization, the examination may be taken by one or more of the 26
693+responsible managing officers or members of the personnel of the applicant. 27
694+… 28
695+"§ 87-10.1. Licensing of nonresidents. 29
696+… 30
697+(d) Delinquents. – If the Secretary of Revenue determines that any nonresident individual 31
698+or foreign corporation licensed by the board, Board, a member of any foreign limited liability 32
699+company licensed by the Board, or a partner in any foreign partnership licensed by the Board, 33
700+owes a delinquent income tax debt, the Secretary of Revenue may notify the Board of these 34
701+nonresident individuals and foreign entities and instruct the Board not to renew their certificates 35
702+of license. The Board shall not renew the certificate of license of such a nonresident individual 36
703+or foreign entity identified by the Secretary of Revenue unless the Board receives a written 37
704+statement from the Secretary that the debt either has been paid or is being paid pursuant to an 38
705+installment agreement. 39
706+"§ 87-10.2. Continuing education. 40
707+… 41
708+(g) Continuing education requirements shall begin on January 1 of any calendar year and 42
709+shall be completed by November 30 of that calendar year. The Board shall establish a 90-day 43
710+grace period following November 30 of each calendar year for any qualifier or qualifying party 44
711+who has failed to complete the continuing education requirement. Failure of the qualifier or 45
712+qualifying party of the entity holding a building contractor, residential contractor, or unclassified 46
713+contractor license classification to satisfy the annual continuing education requirement by the 47
714+expiration of the grace period shall result in the license of the entity being invalidated until such 48
715+the time that continuing education and all other licensing requirements have been met. 49
665716 … 50
666-"§ 87-8. Records; roster of licensed contractors; report to Governor. 51 General Assembly Of North Carolina Session 2025
667-Page 14 House Bill 661-Second Edition
668-The secretary-treasurer shall keep a record of the proceedings of the Board and a register of 1
669-all applicants for license showing for each the date of application, name, qualifications, place of 2
670-business, place of residence, and whether license was granted or refused. The books and register 3
671-of this the Board shall be prima facie evidence of all matters recorded therein. A roster showing 4
672-the names and places of business and of residence of all licensed general contractors shall be 5
673-prepared by the secretary of the Board during the month of March of each year; the roster shall 6
674-be printed by the Board out of funds of the Board as provided in G.S. 87-7, with copies being 7
675-made available to contractors and members of the public, at cost, upon request, or furnished 8
676-without cost, as directed by the Board. On or before the last day of March of each year the Board 9
677-shall submit to the Governor a report of its transactions for the preceding year, and shall file with 10
678-the Secretary of State a copy of the report, together with a complete statement of the receipts and 11
679-expenditures of the Board, attested by the affidavits of the chairman and the secretary, and a copy 12
680-of the roster of licensed general contractors. 13
681-"§ 87-9. Compliance with Federal Highway Act, etc.; contracts financed by federal road 14
682-funds; contracts concerning water or waste water systems. 15
683-Nothing in this Article shall operate to prevent the Department of Transportation from 16
684-complying with any act of Congress and any rules and regulations promulgated pursuant thereto 17
685-for carrying out the provisions of the Federal Highway Act, or shall apply to any person, firm or 18
686-corporation proposing to submit a bid or enter into contract for any work to be financed in whole 19
687-or in part with federal aid road funds in such a manner as that will conflict with any act of 20
688-Congress or any such rules and regulations promulgated pursuant thereto. 21
689-Neither shall anything in this Article prevent the State of North Carolina or any of its political 22
690-subdivisions or their contractors from complying with any act of Congress and any rules and 23
691-regulations promulgated pursuant thereto for carrying out the provisions of any federal program 24
692-to assist in the planning, financing, or construction of drinking water or waste water processing, 25
693-collection, and disposal systems and facilities. 26
694-… 27
695-"§ 87-10. Application for license; examination; certificate; renewal. 28
696-… 29
697-(c) If an applicant is an individual, examination may be taken by his the applicant's 30
698-personal appearance for examination, or by the appearance for examination of one or more of his 31
699-the applicant's responsible managing employees. If an applicant is a copartnership, a corporation, 32
700-or any other combination or organization, the examination may be taken by one or more of the 33
701-responsible managing officers or members of the personnel of the applicant. 34
702-… 35
703-"§ 87-10.1. Licensing of nonresidents. 36
704-… 37
705-(d) Delinquents. – If the Secretary of Revenue determines that any nonresident individual 38
706-or foreign corporation licensed by the board, Board, a member of any foreign limited liability 39
707-company licensed by the Board, or a partner in any foreign partnership licensed by the Board, 40
708-owes a delinquent income tax debt, the Secretary of Revenue may notify the Board of these 41
709-nonresident individuals and foreign entities and instruct the Board not to renew their certificates 42
710-of license. The Board shall not renew the certificate of license of such a nonresident individual 43
711-or foreign entity identified by the Secretary of Revenue unless the Board receives a written 44
712-statement from the Secretary that the debt either has been paid or is being paid pursuant to an 45
713-installment agreement. 46
714-"§ 87-10.2. Continuing education. 47
715-… 48
716-(g) Continuing education requirements shall begin on January 1 of any calendar year and 49
717-shall be completed by November 30 of that calendar year. The Board shall establish a 90-day 50
718-grace period following November 30 of each calendar year for any qualifier or qualifying party 51 General Assembly Of North Carolina Session 2025
719-House Bill 661-Second Edition Page 15
720-who has failed to complete the continuing education requirement. Failure of the qualifier or 1
721-qualifying party of the entity holding a building contractor, residential contractor, or unclassified 2
722-contractor license classification to satisfy the annual continuing education requirement by the 3
723-expiration of the grace period shall result in the license of the entity being invalidated until such 4
724-the time that continuing education and all other licensing requirements have been met. 5
725-… 6
726-"§ 87-12. Certificate evidence of license. 7
727-The issuance of a certificate of license or limited license by this Board shall be evidence that 8
728-the person, firm, or corporation named therein is entitled to all the rights and privileges of a 9
729-licensed or limited licensed general contractor while said license remains unrevoked or 10
730-unexpired. A licensed general contractor holding a license which qualifies him the contractor for 11
731-work as described in G.S. 87-10 shall be authorized to perform the said work without any 12
732-additional occupational license, notwithstanding the provisions of any other occupational 13
733-licensing statute. A license issued by any other occupational licensing board having jurisdiction 14
734-over any work described in G.S. 87-10 shall qualify such the licensee to perform the work for 15
735-which the license qualifies him without obtaining the license from the General Contractors 16
736-Licensing Board. Nothing contained herein shall operate to relieve any general contractor from 17
737-the necessity of compliance with other provisions of the law requiring building permits and 18
738-construction in accordance with appropriate provisions of the North Carolina State Building 19
739-Code. 20
740-"§ 87-13. Unauthorized practice of contracting; impersonating contractor; false certificate; 21
741-giving false evidence to Board; penalties. 22
742-Any person, firm, or corporation not being duly authorized who shall contract for or bid upon 23
743-the construction of any of the projects or works enumerated in G.S. 87-1, without having first 24
744-complied with the provisions hereof, or who shall attempt to practice general contracting in the 25
745-State, except as provided for in this Article, and any person, firm, or corporation presenting or 26
746-attempting to file as his their own the licensed certificate of another or who shall give false or 27
747-forged evidence of any kind to the Board or to any member thereof in maintaining a certificate 28
748-of license or who falsely shall impersonate another or who shall use an expired or revoked 29
749-certificate of license, or who falsely claims or suggests in connection with any business activities 30
750-regulated by the Board that a person, firm, or corporation is licensed under this Chapter, and any 31
751-architect or engineer who recommends to any project owner the award of a contract to anyone 32
752-not properly licensed under this Article, shall be deemed guilty of a Class 2 misdemeanor. And 33
753-the Board may, in its discretion, use its funds to defray the expense, legal or otherwise, in the 34
754-prosecution of any violations of this Article. No architect or engineer shall be guilty of a violation 35
755-of this section if his recommendation either of their recommendations to award a contract is made 36
756-in reliance upon current written information received by him the architect or engineer from the 37
757-appropriate Contractor Licensing Board of this the State which information erroneously indicates 38
758-that the contractor being recommended for contract award is properly licensed. 39
759-… 40
760-"§ 87-15. Copy of Article included in specifications; bid not considered unless contractor 41
761-licensed. 42
762-All architects and engineers preparing plans and specifications for work to be contracted in 43
763-the State of North Carolina shall include in their invitations to bidders and in their specifications 44
764-a copy of this Article or such portions thereof as are deemed necessary to convey to the invited 45
765-bidder, whether he the bidder be a resident or nonresident of this State and whether a license has 46
766-been issued to him the bidder or not, the information that it will be necessary for him the bidder 47
767-to show evidence of a license before his the bidder's bid is considered. 48
768-"§ 87-15.1. Reciprocity of licensing. 49
769-To the extent that other states which provide for the licensing of general contractors provide 50
770-for similar action, the Board in its discretion may grant licenses of the same or equivalent 51 General Assembly Of North Carolina Session 2025
771-Page 16 House Bill 661-Second Edition
772-classification to general contractors licensed by other states, without written examination upon 1
773-satisfactory proof furnished to the Board that the qualifications of such applicants are equal to 2
774-the qualifications of holders of similar licenses in North Carolina and upon payment of the 3
775-required fee. 4
776-…." 5
777- 6
778-PART IV. AUTHORIZE C ODE ENFORCEMENT QUAL IFICATION BOARD TO 7
779-CERTIFY RESIDENTIAL CHANGEOUT SPECIAL IN SPECTORS AND CREATE A 8
780-RESIDENTIAL CHANGEOU T ALTERNATE INSPECTION MET HOD 9
781-SECTION 4.1.(a) Article 9C of Chapter 143 of the General Statutes, as amended by 10
782-S.L. 2024-49 and S.L. 2024-53, reads as rewritten: 11
783-"Article 9C. 12
784-"North Carolina Code Officials Enforcement Qualification Board. 13
785-"§ 143-151.8. Definitions. 14
786-(a) The following definitions apply in this Article: 15
787-(1) Board. – The North Carolina Code Officials Enforcement Qualification 16
788-Board. 17
789-(2) Code. – Consists of all of the following: 18
790-a. The North Carolina State Building Code adopted by the Building Code 19
791-Council and Residential Code Council under G.S. 143-138. 20
792-b. Local building rules approved by the Building Code Council and 21
793-Residential Code Council. 22
794-c. Any resolution adopted by a federally recognized Indian Tribe in 23
795-which the Tribe adopts the North Carolina State Building Code and 24
796-related local building rules. 25
797-d. The standards adopted by the State Fire Marshal under 26
798-G.S. 143-143.15(a). 27
799-(3) Code enforcement. – The examination and approval of plans and 28
800-specifications, the inspection of the manner of construction, workmanship, 29
801-and materials for construction of buildings and structures and their 30
802-components, or the enforcement of fire code regulations by any of the 31
803-following, to assure compliance with the North Carolina State Building Code 32
804-and related local building rules:Code: 33
805-a. An employee of the State or local government, except an employee of 34
806-the State Department of Labor engaged in the administration and 35
807-enforcement of sections of the Code that pertain to boilers and 36
808-elevators. 37
809-b. An employee of a federally recognized Indian Tribe employed to 38
810-perform inspections on tribal lands. 39
811-c. An individual contracting with the State, a local government, or a 40
812-federally recognized Indian Tribe to perform inspections on tribal 41
813-lands. 42
814-d. An individual who is employed by a company contracting with a 43
815-county or a city to conduct inspections. 44
816-e. A person who is contracting with a local government to perform 45
817-third-party plan review under G.S. 160D-1110.1(d). 46
818-f. A person who is contracting with a permit applicant to perform 47
819-third-party plan review under G.S. 160D-1110.1(e). 48
820-g. A person who is conducting residential changeout special inspections 49
821-under G.S. 160D-1106.1. 50 General Assembly Of North Carolina Session 2025
822-House Bill 661-Second Edition Page 17
823-(4) Local inspection department. – The agency or agencies of local government, 1
824-or any government agency of a federally recognized Indian Tribe, with 2
825-authority to make inspections of buildings and to enforce the Code and other 3
826-laws, ordinances, and rules enacted by the State, a local government, or a 4
827-federally recognized Indian Tribe. 5
828-(5) Qualified Code-enforcement official. – A person qualified certified under this 6
829-Article to engage in the practice of Code enforcement.enforcement who is also 7
830-employed by a local inspection department. 8
831-(b) For purposes of this Article, the population of a city or county is determined according 9
832-to the most current federal census, unless otherwise specified. 10
833-(c) For purposes of this Article, "willful misconduct, gross negligence, or gross 11
834-incompetence" in addition to the meaning of those terms under other provisions of the General 12
835-Statutes or at common law, includes any of the following: 13
836-(1) Enforcing a Code requirement in areas or circumstances not specified in the 14
837-requirement. 15
838-(2) Refusing to accept an alternative design or construction method that has been 16
839-appealed under G.S. 143-140.1 and found by the Office of the State Fire 17
840-Marshal to comply with the Code under the conditions or circumstances set 18
841-forth in the Office of the State Fire Marshal's decision for that appeal. 19
842-(3) Refusing to allow an alternative construction method currently included in the 20
843-Building Code under the conditions or circumstances set forth in the Code for 21
844-that alternative method. 22
845-(4) Enforcing a requirement that is more stringent than or otherwise exceeds the 23
846-Code requirement. 24
847-(5) Refusing to implement or adhere to an interpretation of the North Carolina 25
848-State Building Code issued by the Building Code Council, Residential Code 26
849-Council, or the Office of the State Fire Marshal. 27
850-(6) Habitually failing to provide requested inspections in a timely manner. 28
851-(7) Enforcing a Code official's preference in the method or manner of installation 29
852-of heating ventilation and air-conditioning units, appliances, or equipment if 30
853-it is not required by the State Building Code and is in contradiction of a 31
854-manufacturer's installation instructions or specifications. 32
855-"§ 143-151.9. North Carolina Code Officials Enforcement Qualification Board established; 33
856-members; terms; vacancies. 34
857-(a) There is hereby established the North Carolina Code Officials Enforcement 35
858-Qualification Board in the Department of Insurance. The Board shall be composed of 20 36
859-members appointed as follows: 37
860-(1) One member who is a city or county manager;manager. 38
861-(2) Two members, one of whom is an elected official representing a city over 39
862-5,000 population and one of whom is an elected official representing a city 40
863-under 5,000 population;population. 41
864-(3) Two members, one of whom is an elected official representing a county over 42
865-40,000 population and one of whom is an elected official representing a 43
866-county under 40,000 population;population. 44
867-(4) Two members serving as building officials Code-enforcement officials with 45
868-the responsibility for administering building, plumbing, electrical and heating 46
869-codes, one of whom serves a county and one of whom serves a city;city. 47
870-(5) One member who is a registered architect;architect. 48
871-(6) One member who is a registered engineer;engineer. 49
872-(7) Two members who are licensed general contractors, at least one of whom 50
873-specializes in residential construction;construction. 51 General Assembly Of North Carolina Session 2025
874-Page 18 House Bill 661-Second Edition
875-(8) One member who is a licensed electrical contractor;contractor. 1
876-(9) One member who is a licensed plumbing or heating contractor;contractor. 2
877-(10) One member selected from the faculty of the North Carolina State University 3
878-School of Engineering and one member selected from the faculty of the 4
879-School of Engineering of the North Carolina Agricultural and Technical State 5
880-University;University. 6
881-(11) One member selected from the faculty of the School of Government at the 7
882-University of North Carolina at Chapel Hill;Hill. 8
883-(12) One member selected from the Community Colleges System Office;Office. 9
884-(13) One member selected from the Division of Engineering and Building Codes 10
885-in the Department of Insurance; and,Insurance. 11
886-(14) One member who is a local government fire prevention inspector and one 12
887-member who is a citizen of the State. 13
888-The various categories shall be appointed as follows: (1), (2), (3), and (14) by the Governor; 14
889-(4), (5), and (6) by the General Assembly upon the recommendation of the President Pro Tempore 15
890-in accordance with G.S. 120-121; (7), (8), and (9) by the General Assembly upon the 16
891-recommendation of the Speaker of the House of Representatives in accordance with 17
892-G.S. 120-121; (10) by the deans of the respective schools of engineering of the named 18
893-universities; (11) by the Dean of the School of Government at the University of North Carolina 19
894-at Chapel Hill; (12) by the President of the Community Colleges System; and (13) by the State 20
895-Fire Marshal. 21
896-(b) The members shall be appointed for staggered terms and the initial appointments shall 22
897-be made prior to September 1, 1977, and the appointees shall hold office until July 1 of the year 23
898-in which their respective terms expire and until their successors are appointed and qualified as 24
899-provided hereafter: 25
900-For the terms of one year: the members from subdivisions (1), (6) and (10) of subsection (a), 26
901-and one member from subdivision (3). 27
902-For the terms of two years: the member from subdivision (11) of subsection (a), one member 28
903-from subdivision (2), one member from subdivision (4), one member from subdivision (7), and 29
904-one member from subdivision (14). 30
905-For the terms of three years: the members from subdivisions (8) and (12) of subsection (a), 31
906-one member from subdivision (2), one member from subdivision (4), and one member from 32
907-subdivision (14). 33
908-For the terms of four years: the members from subdivision (5), (9) and (13) of subsection (a), 34
909-one member from subdivision (3), and one member from subdivision (7). 35
910-Thereafter, as the term of each member expires, his the member's successor shall be appointed 36
911-for a term of four years. Notwithstanding the appointments for a term of years, each member 37
912-shall serve at the will of the Governor. 38
913-Members of the Board who are public officers shall serve ex officio and shall perform their 39
914-duties on the Board in addition to the duties of their office. 40
915-(c) Vacancies in the Board occurring for any reason shall be filled for the unexpired term 41
916-by the person making the appointment. 42
917-"§ 143-151.10. Compensation. 43
918-Members of the Board who are State officers or employees shall receive no salary for serving 44
919-on the Board, but shall be reimbursed for their expenses in accordance with G.S. 138-6. Members 45
920-of the Board who are full-time salaried public officers or employees other than State officers or 46
921-employees shall receive no salary for serving on the Board, but shall be reimbursed for 47
922-subsistence and travel expenses in accordance with G.S. 138-5(a)(2) and (3). All other members 48
923-of the Board shall receive compensation and reimbursement for expenses in accordance with 49
924-G.S. 138-5(a). 50 General Assembly Of North Carolina Session 2025
925-House Bill 661-Second Edition Page 19
926-"§ 143-151.11. Chairman; vice-chairman; Chair; vice-chair; other officers; meetings; 1
927-reports. 2
928-(a) The members of the Board shall select one of their members as chairman chair upon 3
929-its creation, and shall select the chairman chair each July 1 thereafter. 4
930-(b) The Board shall select a vice-chairman vice-chair and such other officers and 5
931-committee chairmen chair from among its members, as it deems desirable, at the first regular 6
932-meeting of the Board after its creation and at the first regular meeting after July 1 of each year 7
933-thereafter. Provided, nothing in this subsection shall prevent the creation or abolition of 8
934-committees or offices of the Board, other than the office of vice-chairman, vice-chair, as the need 9
935-may arise at any time during the year. 10
936-(c) The Board shall hold at least four regular meetings per year upon the call of the 11
937-chairman. chair. Special meetings shall be held upon the call of the chairman chair or the 12
938-vice-chairman, vice-chair, or upon the written request of four members of the Board. 13
939-(d) The activities and recommendations of the Board with respect to standards for Code 14
940-officials the training and certification of persons engaged in the practice of Code enforcement 15
941-shall be set forth in regular and special reports made by the Board. Additionally, the Board shall 16
942-present special reports and recommendations to the Governor or the General Assembly, or both, 17
943-as the need may arise or as the Governor or the General Assembly may request. 18
944-"§ 143-151.12. Powers. 19
945-In addition to powers conferred upon the Board elsewhere in this Article, the Board has the 20
946-power to do the following: 21
947-(1) Adopt rules necessary to administer this Article. 22
948-(1a) Require State agencies, local inspection departments, and local governing 23
949-bodies to submit reports and information about the employment, education, 24
950-and training of Code-enforcement officials. 25
951-(2) Establish minimum standards for employment as a Code-enforcement official: 26
952-(i) in probationary or temporary status, and (ii) in permanent positions. 27
953-(3) Certify persons as being qualified under the provisions of this Article to be 28
954-Code-enforcement officials, including persons employed by a federally 29
955-recognized Indian Tribe to perform inspections on tribal lands. 30
956-(3a) Certify persons as being qualified under the provisions of this Article to be 31
957-North Carolina State Building Code Permit Technicians. 32
958-(3b) Certify persons as being qualified under the provisions of this Article to be 33
959-residential changeout special inspectors. 34
960-(4) Consult and cooperate with counties, municipalities, agencies of this State, 35
961-other governmental agencies, and with universities, colleges, junior colleges, 36
962-community colleges and other institutions concerning the development of 37
963-Code-enforcement training schools and programs or courses of instruction. 38
964-(5) Establish minimum standards and levels of education or equivalent experience 39
965-for all Code-enforcement instructors, teachers or professors. 40
966-(6) Conduct and encourage research by public and private agencies that shall be 41
967-designed to improve education and training in the administration of Code 42
968-enforcement. 43
969-(7) Adopt and amend bylaws, consistent with law, for its internal management 44
970-and control; appoint advisory committees as necessary; and enter into 45
971-contracts and do other things as necessary and incidental to the exercise of its 46
972-authority pursuant to this Article. 47
973-(8) Make recommendations concerning any matters within its purview pursuant 48
974-to this Article. 49 General Assembly Of North Carolina Session 2025
975-Page 20 House Bill 661-Second Edition
976-(9) Establish within the Office of the State Fire Marshal a marketplace pool of 1
977-qualified certified Code-enforcement officials available for the following 2
978-purposes: 3
979-a. When requested by the State Fire Marshal, to assist in the discharge of 4
980-the State Fire Marshal's duty under G.S. 143-139 to supervise, 5
981-administer, and enforce the North Carolina State Building Code. The 6
982-State Fire Marshal shall have the power and authority to fix and collect 7
983-reasonable fees for services performed by Code-enforcement officials 8
984-under this sub-subdivision. The State Fire Marshal may also collect 9
985-reimbursement, at the rate established under G.S. 138-6, for mileage 10
986-costs incurred by Code-enforcement officials going to and from 11
987-inspections conducted under this sub-subdivision. The State Fire 12
988-Marshal shall have no power or authority to fix or collect fees incurred 13
989-by local inspection departments under sub-subdivision b. of this 14
990-subdivision. 15
991-b. When requested by local inspection departments, to assist in Code 16
992-enforcement. 17
993-"§ 143-151.13. Required standards and certificates for Code-enforcement 18
994-officials.certificates. 19
995-(a) No person shall engage in Code enforcement under this Article unless that person 20
996-possesses one of the following types of certificates, currently valid, issued by the Board attesting 21
997-to that person's qualifications to engage in Code enforcement: (i) a standard certificate; (ii) a 22
998-limited certificate provided for in subsection (c) of this section; or (iii) a probationary certificate 23
999-provided for in subsection (d) of this section. To obtain a standard certificate, a person must pass 24
1000-an examination, as prescribed by the Board or by a contracting party under G.S. 143-151.16(d), 25
1001-that is based on the North Carolina State Building Code and administrative procedures required 26
1002-for Code enforcement. The Board may issue a standard certificate of qualification to each person 27
1003-who successfully completes the examination. The certificate authorizes that person to engage in 28
1004-the practice of Code enforcement and to practice as a qualified Code-enforcement official in 29
1005-North Carolina. The certificate of qualification shall bear the signatures of the chairman chair 30
1006-and secretary of the Board. 31
1007-(b) The Board shall issue one or more standard certificates to each person seeking to 32
1008-practice Code enforcement as a certified Code-enforcement official by demonstrating the 33
1009-qualifications set forth in subsection (b1) (b2) of this section. Standard certificates are available 34
1010-for each of the following types of qualified for Code-enforcement officials: 35
1011-(1) Building inspector. 36
1012-(2) Electrical inspector. 37
1013-(3) Mechanical inspector. 38
1014-(4) Plumbing inspector. 39
1015-(5) Fire inspector. 40
1016-(6) Residential changeout inspector. 41
1017-(b1) The Board shall issue a standard certificate to each person seeking to practice Code 42
1018-enforcement as a residential changeout special inspector by demonstrating the qualifications set 43
1019-forth in subsection (b2) of this section. 44
1020-(b1)(b2) The holder of a standard certificate may practice Code enforcement only within 45
1021-the inspection area and level described upon the certificate issued by the Board. A 46
1022-Code-enforcement official holder of a standard certificate may qualify and hold one or more 47
1023-certificates. These certificates may be for different levels in different types of positions as defined 48
1024-in this section and in rules adopted by the Board. 49
1025-(b2)(b3) A Code-enforcement official holding a certificate indicating a specified level of 50
1026-proficiency in a particular type of position may hold a position calling for that type of 51 General Assembly Of North Carolina Session 2025
1027-House Bill 661-Second Edition Page 21
1028-qualification anywhere in the State. With respect to all types of Code-enforcement officials, those 1
1029-with Level I, Level II, or Level III certificates shall be qualified to inspect and approve only those 2
1030-types and sizes of buildings as specified in rules adopted by the Board. 3
1031-(c) A Code-enforcement official holding office as of the date specified in this subsection 4
1032-for the county or municipality by which he is employed, shall not be required to possess a 5
1033-standard certificate as a condition of tenure or continued employment but shall be required to 6
1034-complete such in-service training as may be prescribed by the Board. At the earliest practicable 7
1035-date, such official shall receive from the Board a limited certificate qualifying him to engage in 8
1036-Code enforcement at the level, in the particular type of position, and within the governmental 9
1037-jurisdiction in which he the Code-enforcement official is employed. The limited certificate shall 10
1038-be valid only as an authorization for the Code-enforcement official to continue in the position he 11
1039-held on the applicable date and shall become invalid if he the Code-enforcement official does not 12
1040-complete in-service training within two years following the applicable date in the schedule below, 13
1041-according to the governmental jurisdiction's population as published in the 1970 U.S. Census: 14
1042-Counties and Municipalities over 75,000 population – July 1, 1979 15
1043-Counties and Municipalities between 50,001 and 75,000 – July 1, 1981 16
1044-Counties and Municipalities between 25,001 and 50,000 – July 1, 1983 17
1045-Counties and Municipalities 25,000 and under – July 1, 1985 18
1046-All fire prevention inspectors holding office – July 1, 1989. Fire prevention inspectors have 19
1047-until July 1, 1993, to complete in-service training. 20
1048-An A Code-enforcement official holding a limited certificate can be promoted to a position 21
1049-requiring a higher level certificate only upon issuance by the Board of a standard certificate or 22
1050-probationary certificate appropriate for such new position. 23
1051-(d) The Board may provide for the issuance of probationary or temporary certificates 24
1052-valid for such period (not less than one year nor more than three years) as specified by the Board's 25
1053-rules, or until June 30, 1983, whichever is later, to any Code-enforcement official newly 26
1054-employed or newly promoted person seeking to practice Code enforcement who lacks the 27
1055-qualifications prescribed by the Board as prerequisite to applying for a standard certificate under 28
1056-subsection (a). No Code-enforcement official may have a probationary or temporary certificate 29
1057-extended beyond the specified period by renewal or otherwise. 30
1058-(d1) The Board may provide for appropriate levels of probationary or temporary 31
1059-certificates and may issue these certificates with such special conditions or requirements relating 32
1060-to the place of employment of the person holding the certificate, his supervision on a consulting 33
1061-or advisory basis, or other matters as the Board may deem necessary to protect the public safety 34
1062-and health. 35
1063-(e) The Board shall, without requiring an examination, issue a standard certificate to any 36
1064-person who is currently certified as a county electrical inspector pursuant to G.S. 160D-1102. 37
1065-The certificate issued by the Board shall authorize the person to serve at the electrical inspector 38
1066-level approved by the State Fire Marshal in G.S. 160D-1102. 39
1067-(f) The Board shall issue a standard certificate to any person who is currently licensed to 40
1068-practice as a(n):any of the following: 41
1069-(1) Architect, registered pursuant to Chapter 83A;83A. 42
1070-(2) General contractor, licensed pursuant to Article 1 of Chapter 87;87. 43
1071-(3) Plumbing or heating contractor, licensed pursuant to Article 2 of Chapter 44
1072-87;87. 45
1073-(4) Electrical contractor, licensed pursuant to Article 4 of Chapter 87; or,87. 46
1074-(5) Professional engineer, registered pursuant to Chapter 89C;89C. 47
1075-provided the person successfully completes a short course, as prescribed by the Board, 48
1076-relating to the North Carolina State Building Code regulations and Code enforcement 49
1077-administration. The standard certificate shall authorize the person to practice as a qualified Code 50 General Assembly Of North Carolina Session 2025
1078-Page 22 House Bill 661-Second Edition
1079-enforcement official in a particular type of position at the level determined by the Board, based 1
1080-on the type of license or registration held in any profession specified above. 2
1081-(g) A licensed architect or licensed professional engineer who possesses a valid 3
1082-certificate under subsection (f) of this section, but is not employed by the State or a local 4
1083-government, may utilize that certificate for the limited purpose of performing independent 5
1084-third-party plan review under subsections (d) and (e) of G.S. 160D-1110.1. 6
1085-"§ 143-151.13A. Professional development program for officials.program. 7
1086-(a) As used in this section, "official" means a qualified Code-enforcement official as that 8
1087-term is defined in G.S. 143-151.8. 9
1088-(b) The Board may establish professional development requirements for officials 10
1089-certificate holders as a condition of the renewal or reactivation of their certificates. The purposes 11
1090-of these professional development requirements are to assist officials certificate holders in 12
1091-maintaining professional competence in their enforcement of the Code and to assure the health, 13
1092-safety, and welfare of the citizens of North Carolina. An official A certificate holder subject to 14
1093-this section shall present evidence to the Board at each certificate renewal after initial 15
1094-certification, that during the 12 months before the certificate expiration date, the official 16
1095-certificate holder has completed the required number of credit hours in courses approved by the 17
1096-Board. Annual continuing education hour requirements shall be determined by the Board but 18
1097-shall not be more than six credit hours. 19
1098-(c) The Board may require an individual who earns a certificate under programs 20
1099-established in G.S. 143-151.13 to complete professional development courses, not to exceed six 21
1100-hours in each technical area of certification, within one year after that individual is first employed 22
1101-by a city or county inspection department.local inspection department as a Code-enforcement 23
1102-official. 24
1103-(d) As a condition of reactivating a standard or limited certificate, the Board may require 25
1104-the completion of professional development courses within one year after reemployment as an a 26
1105-Code-enforcement official as follows: 27
1106-(1) An individual who has been on inactive status for more than two years and 28
1107-who has not been continuously employed by a city or county inspection 29
1108-department during the period of inactive status shall complete professional 30
1109-development courses not to exceed six hours for each technical area in which 31
1110-the individual is certified. 32
1111-(2) An individual who has been on inactive status for more than two years and 33
1112-who has been continuously employed by a city or county inspection 34
1113-department during the period of inactive status shall complete professional 35
1114-development courses not to exceed three hours for each technical area in 36
1115-which the individual is certified. 37
1116-(3) An individual who has been on inactive status for two years or less shall 38
1117-complete professional development courses not to exceed two hours for each 39
1118-technical area in which the individual is certified. 40
1119-(e) The Board may, for good cause shown, grant extensions of time to officials certificate 41
1120-holders to comply with these requirements. An official A certificate holder who, after obtaining 42
1121-an extension under this subsection, offers evidence satisfactory to the Board that the official 43
1122-certificate holder has satisfactorily completed the required professional development courses, is 44
1123-in compliance with this section. 45
1124-(f) The Board may adopt rules to implement this section, including rules that govern: 46
1125-(1) The content and subject matter of professional development courses. 47
1126-(2) The criteria, standards, and procedures for the approval of courses, course 48
1127-sponsors, and course instructors. 49
1128-(3) The methods of instruction. 50
1129-(4) The computation of course credit. 51 General Assembly Of North Carolina Session 2025
1130-House Bill 661-Second Edition Page 23
1131-(5) The ability to carry-forward course credit from one year to another. 1
1132-(6) The waiver of or variance from the professional development required for 2
1133-hardship or other reasons. 3
1134-(7) The procedures for compliance and sanctions for noncompliance. 4
1135-"§ 143-151.14. Comity. 5
1136-(a) The Board may, without requiring an examination, grant a standard certificate as a 6
1137-qualified Code-enforcement official to a person seeking to engage in the practice of Code 7
1138-enforcement for a particular type of position and level to any person who, at the time of 8
1139-application, is certified as a qualified Code-enforcement official holds a certificate in good 9
1140-standing issued by a similar board of another state, district or territory where standards are 10
1141-acceptable to the Board and not lower than those required by this Article for a similar type of 11
1142-position and level in this State. 12
1143-(b) The Board may, without requiring an examination, grant a standard certificate as a 13
1144-qualified Code-enforcement official for a particular type of position and level to any person who, 14
1145-at the time of application, is certified as a qualified Code-enforcement official in good standing 15
1146-by by, and in good standing with, the International Code Council where standards and 16
1147-examination are acceptable to the Board and not lower than those required by this Article for a 17
1148-type of position and level in this State. 18
1149-(c) The certificates granted under subsections (a) and (b) of this section shall expire after 19
1150-three years unless within that time period the holder completes a short course, as prescribed by 20
1151-the Board, relating to the North Carolina State Building Code regulations and Code-enforcement 21
1152-Code enforcement administration. 22
1153-(d) A fee of not more than twenty dollars ($20.00), as determined by the Board, must be 23
1154-paid by any applicant to the Board for the issuance of a certificate under this section. The 24
1155-provisions of G.S. 143-151.16(b) relating to renewal fees and late renewals shall apply to every 25
1156-person granted a standard certificate in accordance with this section. 26
1157-"§ 143-151.15. Return of certificate to Board; reissuance by Board. 27
1158-(a) A certificate issued by the Board under this Article to a Code-enforcement official is 28
1159-valid as long as the person certified is employed by the State of North Carolina or any political 29
1160-subdivision thereof as a Code-enforcement official, or is employed by a federally recognized 30
1161-Indian Tribe to perform inspections on tribal lands as a Code-enforcement official. When the 31
1162-person certified leaves that employment for any reason, he that person shall return the certificate 32
1163-to the Board. If the person subsequently obtains employment as a Code-enforcement official in 33
1164-any governmental jurisdiction described above, the Board may reissue the certificate to him. 34
1165-certificate. The provisions of G.S. 143-151.16(b) relating to renewal fees and late renewals shall 35
1166-apply, if appropriate. The provisions of G.S. 143-151.16(c) shall not apply. This section does not 36
1167-affect the Board's powers under G.S. 143-151.17. 37
1168-(b) A certificate issued by the Board under this Article for residential changeout special 38
1169-inspectors is valid for one year and subject to renewal pursuant to G.S. 143-151.23. 39
1170-"§ 143-151.16. Certification fees; renewal of certificates; examination fees. 40
1171-(a) The Board shall establish a schedule of fees to be paid by each applicant for 41
1172-certification as a qualified Code-enforcement official. Such fee shall not exceed twenty dollars 42
1173-($20.00) for each applicant. 43
1174-(b) A certificate, other than a probationary certificate, as a qualified Code-enforcement 44
1175-official issued pursuant to the provisions of this Article must be renewed annually on or before 45
1176-the first day of July. Each application for renewal must be accompanied by a renewal fee to be 46
1177-determined by the Board, but not to exceed ten dollars ($10.00). The Board is authorized to 47
1178-charge an extra four dollar ($4.00) late renewal fee for renewals made after the first day of July 48
1179-each year. 49 General Assembly Of North Carolina Session 2025
1180-Page 24 House Bill 661-Second Edition
1181-(c) Any person who fails to renew his the certificate for a period of two consecutive years 1
1182-may be required by the Board to take and pass the same examination as unlicensed applicants 2
1183-before allowing such person to renew his the certificate. 3
1184-(d) The Board may contract with persons for the development and administration of the 4
1185-examinations required by G.S. 143-151.13(a), for course development related to the 5
1186-examinations, for review of a particular applicant's examination, and for other related services. 6
1187-The person with whom the Board contracts may charge applicants a reasonable fee for the costs 7
1188-associated with the development and administration of the examinations, for course development 8
1189-related to the examinations, for review of the applicant's examinations, and for other related 9
1190-services. The fee shall be agreed to by the Board and the other contracting party. The amount of 10
1191-the fee under this subsection shall not exceed one hundred seventy-five dollars ($175.00). 11
1192-Contracts for the development and administration of the examinations, for course development 12
1193-related to the examinations, and for review of examinations shall not be subject to Article 3, 3C, 13
1194-or 8 of Chapter 143 of the General Statutes or to Article 15 of Chapter 143B of the General 14
1195-Statutes. However, the Board shall: (i) submit all proposed contracts for supplies, materials, 15
1196-printing, equipment, and contractual services that exceed one million dollars ($1,000,000) 16
1197-authorized by this subsection to the Attorney General or the Attorney General's designee for 17
1198-review as provided in G.S. 114-8.3; and (ii) include in all proposed contracts to be awarded by 18
1199-the Board under this subsection a standard clause which provides that the State Auditor and 19
1200-internal auditors of the Board may audit the records of the contractor during and after the term 20
1201-of the contract to verify accounts and data affecting fees and performance. The Board shall not 21
1202-award a cost plus percentage of cost agreement or contract for any purpose. 22
1203-"§ 143-151.17. Grounds for disciplinary actions; investigation; administrative procedures. 23
1204-(a) The Board has the power to suspend, revoke, demote to a lower level, or refuse to 24
1205-grant a certificate issued under this Article to any person to whom any of the following applies: 25
1206-(1) Has been convicted of a felony against this State or the United States, or 26
1207-convicted of a felony in another state that would also be a felony if it had been 27
1208-committed in this State. 28
1209-(2) Has obtained certification through fraud, deceit, or perjury. 29
1210-(3) Has knowingly aided or abetted any person practicing contrary to the 30
1211-provisions of this Article or the North Carolina State Building Code or any 31
1212-building codes adopted by a federally recognized Indian Tribe. 32
1213-(4) Has defrauded the public or attempted to do so. 33
1214-(5) Has affixed his or her a signature to a report of inspection or other instrument 34
1215-of service if no inspection has been made by him or her or under his or her 35
1216-immediate and responsible direction.made. 36
1217-(6) Has been guilty of willful misconduct, gross negligence, or gross 37
1218-incompetence. 38
1219-(b) The Board may investigate the actions of any qualified Code-enforcement official 39
1220-certificate holder or applicant upon the verified complaint in writing of any person alleging a 40
1221-violation of subsection (a) of this section. The Board may suspend, revoke, or demote to a lower 41
1222-level any certificate of any qualified Code-enforcement official certificate holder and refuse to 42
1223-grant a certificate to any applicant, whom it finds to have been guilty of one or more of the actions 43
1224-set out in subsection (a) of this section as grounds for disciplinary action. 44
1225-(c) A denial, suspension, revocation, or demotion to a lower level of a certificate issued 45
1226-under this Article shall be made in accordance with Chapter 150B of the General Statutes. 46
1227-(d) The Board may deny an application for a certificate for any of the grounds that are 47
1228-described in subsection (a) of this section. Within 30 days after receipt of a notification that an 48
1229-application for a certificate has been denied, the applicant may make a written request for a 49
1230-review by a committee designated by the chairman chair of the Board to determine the 50
1231-reasonableness of the Board's action. The review shall be completed without undue delay, and 51 General Assembly Of North Carolina Session 2025
1232-House Bill 661-Second Edition Page 25
1233-the applicant shall be notified promptly in writing as to the outcome of the review. Within 30 1
1234-days after service of the notification as to the outcome, the applicant may make a written request 2
1235-for a hearing under Article 3A of Chapter 150B of the General Statutes if the applicant disagrees 3
1236-with the outcome. 4
1237-(e) This section applies to Code-enforcement officials and applicants who are employed 5
1238-or seek to be employed by a federally recognized Indian Tribe to perform inspections on tribal 6
1239-lands. 7
1240-"§ 143-151.18. Violations; penalty; injunction. 8
1241-On and after July 1, 1979, it It shall be unlawful for any person to represent himself 9
1242-misrepresent themselves as a qualified Code-enforcement official who does not hold holder of a 10
1243-currently valid certificate of qualification issued by the Board. Further, it shall be unlawful for 11
1244-any person to practice Code enforcement except as allowed by any currently valid certificate 12
1245-issued to that person by the Board. Any person violating any of the provisions of this Article 13
1246-shall be guilty of a Class 1 misdemeanor. The Board is authorized to apply to any judge of the 14
1247-superior court for an injunction in order to prevent any violation or threatened violation of the 15
1248-provisions of this Article. 16
1249-"§ 143-151.19. Administration. 17
1250-(a) The Division of Engineering and Building Codes in the Department of Insurance shall 18
1251-provide clerical and other staff services required by the Board, and shall administer and enforce 19
1252-all provisions of this Article and all rules promulgated pursuant to this Article, subject to the 20
1253-direction of the Board, except as delegated by this Article to local units of government, other 21
1254-State agencies, corporations, or individuals. 22
1255-(b) The Board shall make copies of this Article and the rules adopted under this Article 23
1256-available to the public at a price determined by the Board. 24
1257-(c) The Board shall keep current a record of the names and addresses of all qualified 25
1258-Code-enforcement officials certificate holders and additional personal data as the Board deems 26
1259-necessary. The Board annually shall publish a list of all currently certified Code-enforcement 27
1260-officials.certificate holders. 28
1261-(d) Each certificate issued by the Board shall contain such identifying information as the 29
1262-Board requires. 30
1263-(e) The Board shall issue a duplicate certificate to practice as a qualified 31
1264-Code-enforcement official a certificate holder in place of one which has been lost, destroyed, or 32
1265-mutilated upon proper application and payment of a fee to be determined by the Board. 33
1266-"§ 143-151.20. Donations and appropriations. 34
1267-(a) In addition to appropriations made by the General Assembly, the Board may accept 35
1268-for any of its purposes and functions under this Article any and all donations, both real and 36
1269-personal, and grants of money from any governmental unit or public agency, or from any 37
1270-institution, person, firm or corporation, and may receive, utilize, disburse and transfer the same, 38
1271-subject to the approval of the Council of State. Any arrangements pursuant to this section shall 39
1272-be detailed in the next regular report of the Board. Such report shall include the identity of the 40
1273-donor, the nature of the transaction, and the conditions, if any. Any moneys received by the Board 41
1274-pursuant to this section shall be deposited in the State treasury to the account of the Board. 42
1275-(b) The Board may provide grants as a reimbursement for actual expenses incurred by 43
1276-the State or political subdivision thereof for the provisions of training programs of officials from 44
1277-other jurisdictions within the State. The Board, by rules, shall provide for the administration of 45
1278-the grant program authorized herein. In promulgating such rules, the Board shall promote the 46
1279-most efficient and economical program of Code-enforcement training, including the maximum 47
1280-utilization of existing facilities and programs for the purpose of avoiding duplication. 48
1281-"§ 143-151.21. Disposition of fees. 49
1282-Fees collected by the State Fire Marshal under this Article shall be credited to the Insurance 50
1283-Regulatory Fund created under G.S. 58-6-25. 51 General Assembly Of North Carolina Session 2025
1284-Page 26 House Bill 661-Second Edition
1285-"§ 143-151.22. North Carolina State Building Code Permit Technician; certification 1
1286-program; professional development requirements; renewal of certificates; fees; 2
1287-exam waivers. 3
1288-(a) State Building Code Permit Technician Certification Program. – The Board shall 4
1289-develop a North Carolina State Building Code Permit Technician certification program and North 5
1290-Carolina State Building Code Permit Technician Certificate. To obtain a certificate, a person 6
1291-must pass an examination, as prescribed by the Board, that is based on the North Carolina State 7
1292-Building Code, administrative procedures applicable to permit administration, and relevant 8
1293-topics in support of Code-enforcement officials and local inspection departments. The Board may 9
1294-issue a certificate to each person who successfully completes the examination. The certificate 10
1295-shall bear the signatures of the chairman chair and secretary of the Board. 11
1296-(b) Professional Development Standards for Renewal. – The Board may establish 12
1297-professional development requirements for North Carolina State Building Code Permit 13
1298-Technicians as a condition of the renewal of their certificates. The purpose of these professional 14
1299-development requirements is to assist in maintaining professional competence. A certificate 15
1300-holder subject to this section shall present evidence to the Board at each certificate renewal after 16
1301-initial certification that during the 12 months before the certificate expiration date, the certificate 17
1302-holder has completed the required number of credit hours in courses approved by the Board. 18
1303-Annual continuing education hour requirements shall be determined by the Board. The Board 19
1304-may, for good cause shown, grant extensions of time to certificate holders to comply with these 20
1305-requirements. 21
1306-(c) Renewal Application. – A North Carolina State Building Code Permit Technician 22
1307-Certificate must be renewed annually on or before the first day of July. 23
1308-(d) Fee Authorization. – The Board shall establish a schedule of fees to be paid by each 24
1309-applicant for initial certification and renewal certification as a North Carolina State Building 25
1310-Code Permit Technician. A fee of not more than twenty dollars ($20.00), as determined by the 26
1311-Board, must be paid by any applicant to the Board for the issuance of an initial certification. A 27
1312-fee of not more than ten dollars ($10.00), as determined by the Board, must be paid by any 28
1313-applicant to the Board for the issuance of a renewal certification. The Board is authorized to 29
1314-charge an extra four dollar ($4.00) late renewal fee for renewal applications made after the first 30
1315-day of July each year. 31
1316-(e) Qualified Code-Enforcement Official Exam Waiver. – The Board shall, without 32
1317-requiring an examination, grant a certificate pursuant to this section to any person who, at the 33
1318-time of application, possesses a Building Inspector standard certificate issued by the Board and 34
1319-who is in good standing. The Board may assess a fee for a certificate issued pursuant to this 35
1320-subsection, to the extent authorized by subsection (d) of this section for an initial certification. 36
1321-(f) Comity. – The Board may, without requiring an examination, grant a certificate 37
1322-pursuant to this section to any person who, at the time of application, is similarly certified as a 38
1323-permit technician in good standing by a similar board of another jurisdiction or certified as a 39
1324-permit technician in good standing by the International Code Council, where standards are 40
1325-acceptable to the Board. The certificate granted under this subsection shall expire after one year 41
1326-unless, within that time period, the holder completes a short course, as prescribed by the Board, 42
1327-based on the North Carolina State Building Code and administrative procedures described in 43
1328-subsection (a) of this section. The Board may assess a fee for a certificate issued pursuant to this 44
1329-subsection, to the extent authorized by subsection (d) of this section for an initial certification. 45
1330-"§ 143-151.23. Disasters and emergencies; temporary certificates. 46
1331-(a) When a state of emergency, as defined in G.S. 166A-19.3, has been declared by the 47
1332-Governor due to a natural disaster such as a hurricane, tornado, or flood, or due to a pending 48
1333-disaster, the Board may issue temporary standard or limited certificates to retired qualified 49
1334-Code-enforcement officials to conduct Code enforcement in the emergency area, as defined in 50
1335-G.S. 166A-19.3, for the duration of the state of emergency. 51 General Assembly Of North Carolina Session 2025
1336-House Bill 661-Second Edition Page 27
1337-(b) A temporary standard or limited certificate issued under this section shall expire at 1
1338-the termination of the state of emergency or 12 months, whichever is earlier. If after 12 months 2
1339-the state of emergency has not expired, the Board may renew the temporary standard or limited 3
1340-certificate. 4
1341-(c) A qualified Code-enforcement official who has been on inactive status and is issued 5
1342-a temporary standard or limited certificate under this section shall not be subject to the continuing 6
1343-education requirements established pursuant to G.S. 143-151.13A, unless the individual has been 7
1344-inactive or retired for over two years and not continuously employed by a city or county 8
1345-inspection department. 9
1346-"§ 143-151.24. Residential changeout special inspectors; certification program; 10
1347-professional development requirements; renewal of certificates; fees; exam 11
1348-waivers. 12
1349-(a) Residential Changeout Special Inspector Certification Program. – The Board shall 13
1350-develop a Residential Changeout Special Inspector Certification Program and residential 14
1351-changeout special inspector certificate. To obtain a certificate, a person must pass an 15
1352-examination, as prescribed by the Board, that is based on the North Carolina State Building Code, 16
1353-administrative procedures applicable to permit administration, and relevant topics related to the 17
1354-inspection of residential changeout work as described in G.S. 160D-1106.1. The Board may issue 18
1355-a certificate to each person who successfully applies and completes the examination. The 19
1356-certificate shall bear the signatures of the chair and secretary of the Board. 20
1357-(b) Professional Development Standards for Renewal. – The Board may establish 21
1358-professional development requirements for residential changeout special inspector certificate as 22
1359-a condition of the renewal of their certificates. The purpose of these professional development 23
1360-requirements is to assist in maintaining professional competence. A certificate holder subject to 24
1361-this section shall present evidence to the Board at each certificate renewal after initial certification 25
1362-that during the 12 months before the certificate expiration date, the certificate holder has 26
1363-completed the required number of credit hours in courses approved by the Board. Annual 27
1364-continuing education hour requirements shall be determined by the Board. The Board may, for 28
1365-good cause shown, grant extensions of time to certificate holders to comply with these 29
1366-requirements. 30
1367-(c) Renewal Application. – A residential changeout special inspector certificate must be 31
1368-renewed annually on or before the first day of July. 32
1369-(d) Fee Authorization. – The Board shall establish a schedule of fees to be paid by each 33
1370-applicant for initial certification and renewal certification as a residential changeout special 34
1371-inspector. A fee of not more than twenty dollars ($20.00), as determined by the Board, must be 35
1372-paid by any applicant to the Board for the issuance of an initial certification. A fee of not more 36
1373-than ten dollars ($10.00), as determined by the Board, must be paid by any applicant to the Board 37
1374-for the issuance of a renewal certification. The Board is authorized to charge an extra four dollar 38
1375-($4.00) late renewal fee for renewal applications made after the first day of July each year. 39
1376-(e) Code-Enforcement Official Exam Waiver. – The Board shall, without requiring an 40
1377-examination, grant a certificate pursuant to this section to any person who, at the time of 41
1378-application, possesses a Building Inspector standard certificate issued by the Board and who is 42
1379-in good standing. The Board may assess a fee for a certificate issued pursuant to this subsection 43
1380-to the extent authorized by subsection (d) of this section for an initial certification. 44
1381-(f) Certification of Licensed Contractors. – The Board shall issue a standard certificate 45
1382-to any person who is currently licensed to practice as a plumbing or heating contractor, licensed 46
1383-pursuant to Article 2 of Chapter 87 of the General Statutes, provided the person successfully 47
1384-completes a short course, as prescribed by the Board, relating to the North Carolina State 48
1385-Building Code and Code enforcement administration. 49
1386-(g) Comity. – The Board may, without requiring an examination, grant a certificate 50
1387-pursuant to this section to any person who, at the time of application, is a similarly certified 51 General Assembly Of North Carolina Session 2025
1388-Page 28 House Bill 661-Second Edition
1389-Building Inspector in good standing by a similar board of another jurisdiction where standards 1
1390-are acceptable to the Board. The certificate granted under this subsection shall expire after one 2
1391-year unless, within that time period, the holder completes a short course, as prescribed by the 3
1392-Board, based on the North Carolina State Building Code and administrative procedures described 4
1393-in subsection (a) of this section. The Board may assess a fee for a certificate issued pursuant to 5
1394-this subsection, to the extent authorized by subsection (d) of this section for an initial 6
1395-certification." 7
1396-SECTION 4.1.(b) Article 11 of Chapter 160D of the General Statutes is amended 8
1397-by adding a new section to read: 9
1398-"§ 160D-1106.1. Alternate inspection method by residential changeout special inspectors. 10
1399-(a) Notwithstanding the building inspection requirements of this Article, a local 11
1400-government shall accept and approve, without further responsibility to inspect, a residential 12
1401-changeout inspected by a residential changeout special inspector if all of the following conditions 13
1402-are met: 14
1403-(1) The residential changeout is completed by a contractor licensed pursuant to 15
1404-Article 2 of Chapter 87 of the General Statutes, who is different than the 16
1405-residential changeout special inspector charged with inspection of that 17
1406-residential changeout. 18
1407-(2) The new appliance, and related connections, subject to the residential 19
1408-changeout meets all of the following conditions: 20
1409-a. The new appliance requires no alterations to the existing ducting, fuel 21
1410-type, or piping systems other than what is required for transitioning to 22
1411-the new appliance. 23
1412-b. Any venting associated with the new appliance shall be allowed to be 24
1413-installed, replaced, and repaired where such venting does not pass 25
1414-through a rated assembly. 26
1415-c. Any new gas appliance shall be of the same category as the appliance 27
1416-being replaced, if applicable. 28
1417-d. The new appliance does not require relocation, excluding minor 29
1418-adjustments in the same general vicinity. 30
1419-e. The installation of the new appliance does not require the relocation 31
1420-or addition to the existing electrical system, except the replacement of 32
1421-the appliance's branch circuit overcurrent device, or the replacement 33
1422-of the appliance's branch circuit where such circuit does not pass 34
1423-through a rated assembly shall be allowed. 35
1424-f. The electrical branch circuit serving the appliance is single phase. 36
1425-(3) Field inspection of the installation is performed by a residential changeout 37
1426-special inspector, certified pursuant to Article 9C of Chapter 143 of the 38
1427-General Statutes. 39
1428-(4) The residential changeout special inspector provides the local government 40
1429-with a signed written certification that work outlined within subdivisions (1) 41
1430-and (2) of this subsection have been met and is compliant with the North 42
1431-Carolina State Building Code. The certification required under this 43
1432-subdivision shall be provided by electronic or physical delivery, and its receipt 44
1433-shall be promptly acknowledged by the local government through reciprocal 45
1434-means. The certification shall be made on forms created by the Office of the 46
1435-State Fire Marshal, in consultation with the North Carolina Residential Code 47
1436-Council, which shall include the following information: 48
1437-a. Permit number. 49
1438-b. Date of inspection. 50
1439-c. Type of inspection. 51 General Assembly Of North Carolina Session 2025
1440-House Bill 661-Second Edition Page 29
1441-d. Contractor's name and license number. 1
1442-e. Street address of the job location. 2
1443-f. Name, address, telephone number, and certificate number of the 3
1444-person responsible for the residential changeout special inspection. 4
1445-(b) In accepting certifications of inspections under subsection (a) of this section, a local 5
1446-government shall not require information other than what is required within the certification 6
1447-required under subsection (a) of this section. 7
1448-(c) Upon the acceptance and approval of a signed certification by the local government 8
1449-as required under subsection (a) of this section, notwithstanding the issuance of a certificate of 9
1450-compliance, the local government, its inspection department, and its inspectors are discharged 10
1451-and released from any liabilities, duties, and responsibilities imposed by this Article with respect 11
1452-to or in common law from any claim arising out of or attributed to the residential changeout 12
1453-inspection for which the signed written certification was submitted. 13
1454-(d) For the purposes of this section, the phrase "residential changeout" means work 14
1455-requiring a building permit for the purpose of heating and air conditioning appliance and water 15
1456-heater replacement in dwellings subject to the North Carolina Residential Code, and individual 16
1457-residential units of condominiums and apartments provided the individual appliance serves only 17
1458-that residential dwelling unit." 18
1459-SECTION 4.1.(c) By July 1, 2025, the Office of the State Fire Marshal shall develop 19
1460-an internet-based examination and short course as described in G.S. 143-151.24, as enacted by 20
1461-subsection (a) of this section, and make it available on the Office's website for the purpose of 21
1462-certifying residential changeout special inspectors. 22
1463-SECTION 4.1.(d) By July 1, 2025, the Office of the State Fire Marshal shall develop 23
1464-the form required under G.S. 160D-1106.1, as enacted by subsection (b) of this section, and make 24
1465-it available on the Office's website. 25
1466- 26
1467-PART V. ESTABLISH RIGHT TO REPAIR CONSTR UCTION DEFECTS WITHI N 27
1468-DWELLINGS SUBJECT TO THE NORTH CAROLINA RESIDENTIAL CODE 28
1469-SECTION 5.1.(a) Chapter 87 of the General Statutes is amended by adding a new 29
1470-Article to read: 30
1471-"Article 9. 31
1472-"Right to Repair Construction Defects Act. 32
1473-"§ 87-150. Short title. 33
1474-This Article shall be known and may be cited as the "Right to Repair Construction Defects 34
1475-Act." 35
1476-"§ 87-151. Definitions. 36
1477-The following definitions apply in this Article: 37
1478-(1) Action. – Any civil lawsuit, judicial action, or alternative dispute resolution 38
1479-proceeding for damages or other relief asserting a claim for injury or loss to a 39
1480-dwelling caused by an alleged construction defect arising out of or related to 40
1481-the construction, repairing, or remodeling of the dwelling. 41
1482-(2) Claimant. – An owner who asserts a claim against a general contractor 42
1483-concerning a construction defect in the construction, repairing, or remodeling 43
1484-of a dwelling. 44
1485-(3) Construction defect. – A defect in or a deficiency arising out of the design or 45
1486-construction of improvements, including the use of defective material, 46
1487-products, or components. 47
1488-(4) Dwelling. – A single-family dwelling or other dwelling type subject to the 48
1489-North Carolina Residential Code, including the systems, components, and 49
1490-improvements serving that dwelling. 50
1491-(5) General contractor. – As defined in G.S. 87-1. 51 General Assembly Of North Carolina Session 2025
1492-Page 30 House Bill 661-Second Edition
1493-(6) Serve or service. – Personal service or delivery by certified mail to the last 1
1494-known address of the addressee. 2
1495-"§ 87-152. Notice and opportunity to repair. 3
1496-(a) Notice of Claim. – Before commencing an action against a general contractor 4
1497-regarding a construction defect, the claimant must, no less than 90 days before filing the action, 5
1498-serve a written notice of claim on the general contractor. The notice of claim must contain the 6
1499-following, at a minimum: 7
1500-(1) A statement that the claimant asserts a construction defect. 8
1501-(2) A description of the claim or claims in reasonable detail sufficient to 9
1502-determine the general nature of the construction defect. 10
1503-(3) A description of any effects of the construction defect, if known. 11
1504-(b) Request for Clarification. – If a notice of claim is not sufficiently stated, the general 12
1505-contractor may advise the claimant within 15 days of service of the notice of claim and request 13
1506-clarification. 14
1507-(c) General Contractor's Response to Notice of Claim. – The general contractor has 30 15
1508-days from service of the notice of claim to inspect, offer to remedy, offer to settle with the 16
1509-claimant, or deny a claim, in whole or in part, regarding the construction defect in writing. The 17
1510-claimant shall receive written notice of the general contractor's election under this section within 18
1511-30 days. Failure to respond within 30 days is deemed a denial of the claim. 19
1512-(d) Response to General Contractor's Offer. – The claimant shall accept a general 20
1513-contractor's offer, if any, in writing within 10 days of receipt of the offer pursuant to subsection 21
1514-(c) of this section. Failure to respond within 10 days is deemed a denial of the general contractor's 22
1515-offer. 23
1516-(e) Reasonable Access to Dwelling. – If requested, the claimant shall give the general 24
1517-contractor reasonable access to the dwelling at a mutually agreeable time to inspect a construction 25
1518-defect and, if agreed to by the parties, repair a construction defect. 26
1519-(f) Civil Remedy. – Nothing in this Article shall prevent a claimant from proceeding with 27
1520-a civil action or other remedy provided by law if the parties cannot reach a resolution pursuant 28
1521-to this Article. 29
1522-(g) Claimant Repairs. – Nothing in this Article shall be construed to prohibit a claimant 30
1523-from making immediate repairs to an alleged construction defect subject to this Article to protect 31
1524-the health and safety of a dwelling's occupants or to mitigate further damage to the dwelling. 32
1525-(h) Admissibility. – Evidence of offers to settle, repair, or remedy pursuant to this Article 33
1526-is not admissible to prove liability for or invalidity of the claim or its amount. 34
1527-"§ 87-153. Filing a complaint with the Board not prohibited. 35
1528-Nothing in this Article shall prevent a claimant from filing a complaint with the Board in 36
1529-accordance with G.S. 87-11(a1). 37
1530-"§ 87-154. Stay of action. 38
1531-If a claimant files an action in court before first complying with the requirements of this 39
1532-Article, on motion of a party to the action, the court shall stay the action for 120 days and such 40
1533-additional time that is necessary for compliance with the requirements of this Article. 41
1534-"§ 87-155. Statute of limitations and tolling. 42
1535-Any statute of limitations applicable to a right of action of the claimant under this Article is 43
1536-tolled until the latter of the following events occur: (i) the claimant denies a general contractor's 44
1537-offer, in writing, pursuant to G.S. 87-152(d), (ii) the general contractor denies the claimant's 45
1538-claim, (iii) the repair of the defect is completed, or (iv) either party determines that the general 46
1539-contractor cannot or will not repair the defect and provides written notice to the other party of 47
1540-the same." 48
1541-SECTION 5.1.(b) This section becomes effective October 1, 2025, and applies to 49
1542-actions commenced on or after that date. 50
1543- 51 General Assembly Of North Carolina Session 2025
1544-House Bill 661-Second Edition Page 31
1545-PART VI. MISCELLANEO US 1
1546- 2
1547-MODIFY PUBLIC POOL LAWS TO CLARIFY PRIVATE POOL EXCLUSION AND 3
1548-TO EXEMPT PUBLIC COLD BATHS AND FLOTATION/SENSORY DEPRIVATION 4
1549-SYSTEMS 5
1550-SECTION 6.1.(a) G.S. 130A-280, as amended by Section 4.51(a) of S.L. 2024-49, 6
1551-reads as rewritten: 7
1552-"§ 130A-280. Scope.Scope and definitions. 8
1553-(a) This Article Part provides for the regulation of public swimming pools in the State as 9
1554-they may affect the public health and safety. As used in this Article, the term "public swimming 10
1555-pool" means any structure, chamber, or tank containing an artificial body of water used by the 11
1556-public for swimming, diving, wading, recreation, or therapy, together with buildings, 12
1557-appurtenances, and equipment used in connection with the body of water, regardless of whether 13
1558-a fee is charged for its use. The term includes municipal, school, hotel, motel, apartment, 14
1559-boarding house, athletic club, or other membership facility pools and spas, spas operating for 15
1560-display at temporary events, and artificial swimming lagoons. As used in this Article, an 16
1561-"artificial swimming lagoon" means any body of water used for recreational purposes with more 17
1562-than 20,000 square feet of surface area, an artificial liner, and a method of disinfectant that results 18
1563-in a disinfectant residual in the swimming zone that is protective of the public health. This Article 19
1564-Part does not apply to any of the following: 20
1565-(1) A private pool serving a single family dwelling and used only by the residents 21
1566-of the dwelling and their guests.guests regardless of whether their guests gain 22
1567-use of the private pool through a sharing economy platform or pay a fee for 23
1568-its use. In all cases in which a fee is exchanged for access to a private pool 24
1569-serving a single-family dwelling that is used only by the residents of the 25
1570-dwelling and their guests, the private pool shall be maintained in good and 26
1571-safe working order. 27
1572-(2) A private pool serving a single family dwelling meeting the minimum 28
1573-requirements of this subdivision which is offered to, and used by, individuals 29
1574-on a temporary basis utilizing a sharing economy platform. For the purposes 30
1575-of this subdivision, a sharing economy platform means an online platform 31
1576-used to facilitate peer-to-peer transactions to acquire, provide, or share access 32
1577-to goods and services. For the purposes of this subdivision, a pool must meet 33
1578-all of the following minimum requirements: 34
1579-a. Pools must have proper fencing and barriers to prevent unsupervised 35
1580-access, especially by children. The fence should be at least 4 feet high 36
1581-with a self-latching gate. 37
1582-b. Pools must have clear and conspicuous signage posted around the pool 38
1583-area specifying pool rules, depth markers, and any potential hazards. 39
1584-c. Pools must be equipped with basic lifesaving equipment, including life 40
1585-rings and reaching poles. 41
1586-d. Pool decks and surrounding areas must have non-slip surfaces. 42
1587-e. Pools must have properly fitted covers for all submerged suction 43
1588-outlets. 44
1589-f. Pools must be well-maintained with proper chemical balance and 45
1590-cleanliness to ensure safe and healthy swimming conditions. 46
1591-(2a) A public cold bath that meets all of the following requirements: 47
1592-a. Is a tub or tank that is used by the general public, one bather at a time, 48
1593-regardless of whether a fee is charged for its use. 49
1594-b. Contains chilled water that is (i) maintained at a temperature lower 50
1595-than 60 degrees Fahrenheit, (ii) no more than 180 gallons in volume, 51 General Assembly Of North Carolina Session 2025
1596-Page 32 House Bill 661-Second Edition
1597-and (iii) at a depth that allows the bather to maintain the bather's head 1
1598-above the water while in a seated position. 2
1599-c. Continuously filters and sanitizes the chilled water. 3
1600-(3) Therapeutic pools used in physical therapy programs operated by medical 4
1601-facilities licensed by the Department or operated by a licensed physical 5
1602-therapist, nor to therapeutic chambers drained, cleaned, and refilled after each 6
1603-individual use. 7
1604-(4) Floatation or sensory deprivation systems certified by the National Sanitation 8
1605-Foundation to meet the most current version of Standard 50 of the National 9
1606-Sanitation Foundation/American National Standards Institute. 10
1607-(b) The following definitions apply in this Part: 11
1608-(1) Artificial swimming lagoon. – Any body of water used for recreational 12
1609-purposes with more than 20,000 square feet of surface area, an artificial liner, 13
1610-and a method of disinfectant that results in a disinfectant residual in the 14
1611-swimming zone that is protective of the public health. 15
1612-(2) Public swimming pool. – Any structure, chamber, or tank containing an 16
1613-artificial body of water used by the public for swimming, diving, wading, 17
1614-recreation, or therapy, together with buildings, appurtenances, and equipment 18
1615-used in connection with the body of water, regardless of whether a fee is 19
1616-charged for its use. The term includes municipal, school, hotel, motel, 20
1617-apartment, boarding house, athletic club, or other membership facility pools 21
1618-and spas, spas operating for display at temporary events, and artificial 22
1619-swimming lagoons. 23
1620-(3) Sharing economy platform. – An online platform used to facilitate 24
1621-peer-to-peer transactions to acquire, provide, or share access to goods and 25
1622-services." 26
1623-SECTION 6.1.(b) This section becomes effective July 1, 2025. 27
1624- 28
1625-PART VII. SEVERABILITY CLAUSE AND EFFECT IVE DATE 29
1626- 30
1627-SEVERABILITY CLAUSE 31
1628-SECTION 7.1. If any section or provision of this act is declared unconstitutional or 32
1629-invalid by the courts, it does not affect the validity of this act as a whole or any part other than 33
1630-the part declared to be unconstitutional or invalid. 34
1631- 35
1632-EFFECTIVE DATE 36
1633-SECTION 7.2. Except as otherwise provided, this act is effective when it becomes 37
1634-law. 38
717+"§ 87-12. Certificate evidence of license. 51 General Assembly Of North Carolina Session 2025
718+House Bill 661-First Edition Page 15
719+The issuance of a certificate of license or limited license by this Board shall be evidence that 1
720+the person, firm, or corporation named therein is entitled to all the rights and privileges of a 2
721+licensed or limited licensed general contractor while said license remains unrevoked or 3
722+unexpired. A licensed general contractor holding a license which qualifies him the contractor for 4
723+work as described in G.S. 87-10 shall be authorized to perform the said work without any 5
724+additional occupational license, notwithstanding the provisions of any other occupational 6
725+licensing statute. A license issued by any other occupational licensing board having jurisdiction 7
726+over any work described in G.S. 87-10 shall qualify such the licensee to perform the work for 8
727+which the license qualifies him without obtaining the license from the General Contractors 9
728+Licensing Board. Nothing contained herein shall operate to relieve any general contractor from 10
729+the necessity of compliance with other provisions of the law requiring building permits and 11
730+construction in accordance with appropriate provisions of the North Carolina State Building 12
731+Code. 13
732+"§ 87-13. Unauthorized practice of contracting; impersonating contractor; false certificate; 14
733+giving false evidence to Board; penalties. 15
734+Any person, firm, or corporation not being duly authorized who shall contract for or bid upon 16
735+the construction of any of the projects or works enumerated in G.S. 87-1, without having first 17
736+complied with the provisions hereof, or who shall attempt to practice general contracting in the 18
737+State, except as provided for in this Article, and any person, firm, or corporation presenting or 19
738+attempting to file as his their own the licensed certificate of another or who shall give false or 20
739+forged evidence of any kind to the Board or to any member thereof in maintaining a certificate 21
740+of license or who falsely shall impersonate another or who shall use an expired or revoked 22
741+certificate of license, or who falsely claims or suggests in connection with any business activities 23
742+regulated by the Board that a person, firm, or corporation is licensed under this Chapter, and any 24
743+architect or engineer who recommends to any project owner the award of a contract to anyone 25
744+not properly licensed under this Article, shall be deemed guilty of a Class 2 misdemeanor. And 26
745+the Board may, in its discretion, use its funds to defray the expense, legal or otherwise, in the 27
746+prosecution of any violations of this Article. No architect or engineer shall be guilty of a violation 28
747+of this section if his recommendation either of their recommendations to award a contract is made 29
748+in reliance upon current written information received by him the architect or engineer from the 30
749+appropriate Contractor Licensing Board of this the State which information erroneously indicates 31
750+that the contractor being recommended for contract award is properly licensed. 32
751+… 33
752+"§ 87-15. Copy of Article included in specifications; bid not considered unless contractor 34
753+licensed. 35
754+All architects and engineers preparing plans and specifications for work to be contracted in 36
755+the State of North Carolina shall include in their invitations to bidders and in their specifications 37
756+a copy of this Article or such portions thereof as are deemed necessary to convey to the invited 38
757+bidder, whether he the bidder be a resident or nonresident of this State and whether a license has 39
758+been issued to him the bidder or not, the information that it will be necessary for him the bidder 40
759+to show evidence of a license before his the bidder's bid is considered. 41
760+"§ 87-15.1. Reciprocity of licensing. 42
761+To the extent that other states which provide for the licensing of general contractors provide 43
762+for similar action, the Board in its discretion may grant licenses of the same or equivalent 44
763+classification to general contractors licensed by other states, without written examination upon 45
764+satisfactory proof furnished to the Board that the qualifications of such applicants are equal to 46
765+the qualifications of holders of similar licenses in North Carolina and upon payment of the 47
766+required fee. 48
767+…." 49
768+ 50 General Assembly Of North Carolina Session 2025
769+Page 16 House Bill 661-First Edition
770+PART IV. AUTHORIZE C ODE ENFORCEMENT QUAL IFICATION BOARD TO 1
771+CERTIFY RESIDENTIAL CHANGEOUT SPECIAL IN SPECTORS AND CREATE A 2
772+RESIDENTIAL CHANGEOU T ALTERNATE INSPECTION MET HOD 3
773+SECTION 4.1.(a) Article 9C of Chapter 143 of the General Statutes, as amended by 4
774+S.L. 2024-49 and S.L. 2024-53, reads as rewritten: 5
775+"Article 9C. 6
776+"North Carolina Code Officials Enforcement Qualification Board. 7
777+"§ 143-151.8. Definitions. 8
778+(a) The following definitions apply in this Article: 9
779+(1) Board. – The North Carolina Code Officials Enforcement Qualification 10
780+Board. 11
781+(2) Code. – Consists of all of the following: 12
782+a. The North Carolina State Building Code adopted by the Building Code 13
783+Council and Residential Code Council under G.S. 143-138. 14
784+b. Local building rules approved by the Building Code Council and 15
785+Residential Code Council. 16
786+c. Any resolution adopted by a federally recognized Indian Tribe in 17
787+which the Tribe adopts the North Carolina State Building Code and 18
788+related local building rules. 19
789+d. The standards adopted by the State Fire Marshal under 20
790+G.S. 143-143.15(a). 21
791+(3) Code enforcement. – The examination and approval of plans and 22
792+specifications, the inspection of the manner of construction, workmanship, 23
793+and materials for construction of buildings and structures and their 24
794+components, or the enforcement of fire code regulations by any of the 25
795+following, to assure compliance with the North Carolina State Building Code 26
796+and related local building rules:Code: 27
797+a. An employee of the State or local government, except an employee of 28
798+the State Department of Labor engaged in the administration and 29
799+enforcement of sections of the Code that pertain to boilers and 30
800+elevators. 31
801+b. An employee of a federally recognized Indian Tribe employed to 32
802+perform inspections on tribal lands. 33
803+c. An individual contracting with the State, a local government, or a 34
804+federally recognized Indian Tribe to perform inspections on tribal 35
805+lands. 36
806+d. An individual who is employed by a company contracting with a 37
807+county or a city to conduct inspections. 38
808+e. A person who is contracting with a local government to perform 39
809+third-party plan review under G.S. 160D-1110.1(d). 40
810+f. A person who is contracting with a permit applicant to perform 41
811+third-party plan review under G.S. 160D-1110.1(e). 42
812+g. A person who is conducting residential changeout special inspections 43
813+under G.S. 160D-1106.1. 44
814+(4) Local inspection department. – The agency or agencies of local government, 45
815+or any government agency of a federally recognized Indian Tribe, with 46
816+authority to make inspections of buildings and to enforce the Code and other 47
817+laws, ordinances, and rules enacted by the State, a local government, or a 48
818+federally recognized Indian Tribe. 49 General Assembly Of North Carolina Session 2025
819+House Bill 661-First Edition Page 17
820+(5) Qualified Code-enforcement official. – A person qualified certified under this 1
821+Article to engage in the practice of Code enforcement.enforcement who is also 2
822+employed by a local inspection department. 3
823+(b) For purposes of this Article, the population of a city or county is determined according 4
824+to the most current federal census, unless otherwise specified. 5
825+(c) For purposes of this Article, "willful misconduct, gross negligence, or gross 6
826+incompetence" in addition to the meaning of those terms under other provisions of the General 7
827+Statutes or at common law, includes any of the following: 8
828+(1) Enforcing a Code requirement in areas or circumstances not specified in the 9
829+requirement. 10
830+(2) Refusing to accept an alternative design or construction method that has been 11
831+appealed under G.S. 143-140.1 and found by the Office of the State Fire 12
832+Marshal to comply with the Code under the conditions or circumstances set 13
833+forth in the Office of the State Fire Marshal's decision for that appeal. 14
834+(3) Refusing to allow an alternative construction method currently included in the 15
835+Building Code under the conditions or circumstances set forth in the Code for 16
836+that alternative method. 17
837+(4) Enforcing a requirement that is more stringent than or otherwise exceeds the 18
838+Code requirement. 19
839+(5) Refusing to implement or adhere to an interpretation of the North Carolina 20
840+State Building Code issued by the Building Code Council, Residential Code 21
841+Council, or the Office of the State Fire Marshal. 22
842+(6) Habitually failing to provide requested inspections in a timely manner. 23
843+(7) Enforcing a Code official's preference in the method or manner of installation 24
844+of heating ventilation and air-conditioning units, appliances, or equipment if 25
845+it is not required by the State Building Code and is in contradiction of a 26
846+manufacturer's installation instructions or specifications. 27
847+"§ 143-151.9. North Carolina Code Officials Enforcement Qualification Board established; 28
848+members; terms; vacancies. 29
849+(a) There is hereby established the North Carolina Code Officials Enforcement 30
850+Qualification Board in the Department of Insurance. The Board shall be composed of 20 31
851+members appointed as follows: 32
852+(1) One member who is a city or county manager;manager. 33
853+(2) Two members, one of whom is an elected official representing a city over 34
854+5,000 population and one of whom is an elected official representing a city 35
855+under 5,000 population;population. 36
856+(3) Two members, one of whom is an elected official representing a county over 37
857+40,000 population and one of whom is an elected official representing a 38
858+county under 40,000 population;population. 39
859+(4) Two members serving as building officials Code-enforcement officials with 40
860+the responsibility for administering building, plumbing, electrical and heating 41
861+codes, one of whom serves a county and one of whom serves a city;city. 42
862+(5) One member who is a registered architect;architect. 43
863+(6) One member who is a registered engineer;engineer. 44
864+(7) Two members who are licensed general contractors, at least one of whom 45
865+specializes in residential construction;construction. 46
866+(8) One member who is a licensed electrical contractor;contractor. 47
867+(9) One member who is a licensed plumbing or heating contractor;contractor. 48
868+(10) One member selected from the faculty of the North Carolina State University 49
869+School of Engineering and one member selected from the faculty of the 50 General Assembly Of North Carolina Session 2025
870+Page 18 House Bill 661-First Edition
871+School of Engineering of the North Carolina Agricultural and Technical State 1
872+University;University. 2
873+(11) One member selected from the faculty of the School of Government at the 3
874+University of North Carolina at Chapel Hill;Hill. 4
875+(12) One member selected from the Community Colleges System Office;Office. 5
876+(13) One member selected from the Division of Engineering and Building Codes 6
877+in the Department of Insurance; and,Insurance. 7
878+(14) One member who is a local government fire prevention inspector and one 8
879+member who is a citizen of the State. 9
880+The various categories shall be appointed as follows: (1), (2), (3), and (14) by the Governor; 10
881+(4), (5), and (6) by the General Assembly upon the recommendation of the President Pro Tempore 11
882+in accordance with G.S. 120-121; (7), (8), and (9) by the General Assembly upon the 12
883+recommendation of the Speaker of the House of Representatives in accordance with 13
884+G.S. 120-121; (10) by the deans of the respective schools of engineering of the named 14
885+universities; (11) by the Dean of the School of Government at the University of North Carolina 15
886+at Chapel Hill; (12) by the President of the Community Colleges System; and (13) by the State 16
887+Fire Marshal. 17
888+(b) The members shall be appointed for staggered terms and the initial appointments shall 18
889+be made prior to September 1, 1977, and the appointees shall hold office until July 1 of the year 19
890+in which their respective terms expire and until their successors are appointed and qualified as 20
891+provided hereafter: 21
892+For the terms of one year: the members from subdivisions (1), (6) and (10) of subsection (a), 22
893+and one member from subdivision (3). 23
894+For the terms of two years: the member from subdivision (11) of subsection (a), one member 24
895+from subdivision (2), one member from subdivision (4), one member from subdivision (7), and 25
896+one member from subdivision (14). 26
897+For the terms of three years: the members from subdivisions (8) and (12) of subsection (a), 27
898+one member from subdivision (2), one member from subdivision (4), and one member from 28
899+subdivision (14). 29
900+For the terms of four years: the members from subdivision (5), (9) and (13) of subsection (a), 30
901+one member from subdivision (3), and one member from subdivision (7). 31
902+Thereafter, as the term of each member expires, his the member's successor shall be appointed 32
903+for a term of four years. Notwithstanding the appointments for a term of years, each member 33
904+shall serve at the will of the Governor. 34
905+Members of the Board who are public officers shall serve ex officio and shall perform their 35
906+duties on the Board in addition to the duties of their office. 36
907+(c) Vacancies in the Board occurring for any reason shall be filled for the unexpired term 37
908+by the person making the appointment. 38
909+"§ 143-151.10. Compensation. 39
910+Members of the Board who are State officers or employees shall receive no salary for serving 40
911+on the Board, but shall be reimbursed for their expenses in accordance with G.S. 138-6. Members 41
912+of the Board who are full-time salaried public officers or employees other than State officers or 42
913+employees shall receive no salary for serving on the Board, but shall be reimbursed for 43
914+subsistence and travel expenses in accordance with G.S. 138-5(a)(2) and (3). All other members 44
915+of the Board shall receive compensation and reimbursement for expenses in accordance with 45
916+G.S. 138-5(a). 46
917+"§ 143-151.11. Chairman; vice-chairman; Chair; vice-chair; other officers; meetings; 47
918+reports. 48
919+(a) The members of the Board shall select one of their members as chairman chair upon 49
920+its creation, and shall select the chairman chair each July 1 thereafter. 50 General Assembly Of North Carolina Session 2025
921+House Bill 661-First Edition Page 19
922+(b) The Board shall select a vice-chairman vice-chair and such other officers and 1
923+committee chairmen chair from among its members, as it deems desirable, at the first regular 2
924+meeting of the Board after its creation and at the first regular meeting after July 1 of each year 3
925+thereafter. Provided, nothing in this subsection shall prevent the creation or abolition of 4
926+committees or offices of the Board, other than the office of vice-chairman, vice-chair, as the need 5
927+may arise at any time during the year. 6
928+(c) The Board shall hold at least four regular meetings per year upon the call of the 7
929+chairman. chair. Special meetings shall be held upon the call of the chairman chair or the 8
930+vice-chairman, vice-chair, or upon the written request of four members of the Board. 9
931+(d) The activities and recommendations of the Board with respect to standards for Code 10
932+officials the training and certification of persons engaged in the practice of Code enforcement 11
933+shall be set forth in regular and special reports made by the Board. Additionally, the Board shall 12
934+present special reports and recommendations to the Governor or the General Assembly, or both, 13
935+as the need may arise or as the Governor or the General Assembly may request. 14
936+"§ 143-151.12. Powers. 15
937+In addition to powers conferred upon the Board elsewhere in this Article, the Board has the 16
938+power to do the following: 17
939+(1) Adopt rules necessary to administer this Article. 18
940+(1a) Require State agencies, local inspection departments, and local governing 19
941+bodies to submit reports and information about the employment, education, 20
942+and training of Code-enforcement officials. 21
943+(2) Establish minimum standards for employment as a Code-enforcement official: 22
944+(i) in probationary or temporary status, and (ii) in permanent positions. 23
945+(3) Certify persons as being qualified under the provisions of this Article to be 24
946+Code-enforcement officials, including persons employed by a federally 25
947+recognized Indian Tribe to perform inspections on tribal lands. 26
948+(3a) Certify persons as being qualified under the provisions of this Article to be 27
949+North Carolina State Building Code Permit Technicians. 28
950+(3b) Certify persons as being qualified under the provisions of this Article to be 29
951+residential changeout special inspectors. 30
952+(4) Consult and cooperate with counties, municipalities, agencies of this State, 31
953+other governmental agencies, and with universities, colleges, junior colleges, 32
954+community colleges and other institutions concerning the development of 33
955+Code-enforcement training schools and programs or courses of instruction. 34
956+(5) Establish minimum standards and levels of education or equivalent experience 35
957+for all Code-enforcement instructors, teachers or professors. 36
958+(6) Conduct and encourage research by public and private agencies that shall be 37
959+designed to improve education and training in the administration of Code 38
960+enforcement. 39
961+(7) Adopt and amend bylaws, consistent with law, for its internal management 40
962+and control; appoint advisory committees as necessary; and enter into 41
963+contracts and do other things as necessary and incidental to the exercise of its 42
964+authority pursuant to this Article. 43
965+(8) Make recommendations concerning any matters within its purview pursuant 44
966+to this Article. 45
967+(9) Establish within the Office of the State Fire Marshal a marketplace pool of 46
968+qualified certified Code-enforcement officials available for the following 47
969+purposes: 48
970+a. When requested by the State Fire Marshal, to assist in the discharge of 49
971+the State Fire Marshal's duty under G.S. 143-139 to supervise, 50
972+administer, and enforce the North Carolina State Building Code. The 51 General Assembly Of North Carolina Session 2025
973+Page 20 House Bill 661-First Edition
974+State Fire Marshal shall have the power and authority to fix and collect 1
975+reasonable fees for services performed by Code-enforcement officials 2
976+under this sub-subdivision. The State Fire Marshal may also collect 3
977+reimbursement, at the rate established under G.S. 138-6, for mileage 4
978+costs incurred by Code-enforcement officials going to and from 5
979+inspections conducted under this sub-subdivision. The State Fire 6
980+Marshal shall have no power or authority to fix or collect fees incurred 7
981+by local inspection departments under sub-subdivision b. of this 8
982+subdivision. 9
983+b. When requested by local inspection departments, to assist in Code 10
984+enforcement. 11
985+"§ 143-151.13. Required standards and certificates for Code-enforcement 12
986+officials.certificates. 13
987+(a) No person shall engage in Code enforcement under this Article unless that person 14
988+possesses one of the following types of certificates, currently valid, issued by the Board attesting 15
989+to that person's qualifications to engage in Code enforcement: (i) a standard certificate; (ii) a 16
990+limited certificate provided for in subsection (c) of this section; or (iii) a probationary certificate 17
991+provided for in subsection (d) of this section. To obtain a standard certificate, a person must pass 18
992+an examination, as prescribed by the Board or by a contracting party under G.S. 143-151.16(d), 19
993+that is based on the North Carolina State Building Code and administrative procedures required 20
994+for Code enforcement. The Board may issue a standard certificate of qualification to each person 21
995+who successfully completes the examination. The certificate authorizes that person to engage in 22
996+the practice of Code enforcement and to practice as a qualified Code-enforcement official in 23
997+North Carolina. The certificate of qualification shall bear the signatures of the chairman chair 24
998+and secretary of the Board. 25
999+(b) The Board shall issue one or more standard certificates to each person seeking to 26
1000+practice Code enforcement as a certified Code-enforcement official by demonstrating the 27
1001+qualifications set forth in subsection (b1) (b2) of this section. Standard certificates are available 28
1002+for each of the following types of qualified for Code-enforcement officials: 29
1003+(1) Building inspector. 30
1004+(2) Electrical inspector. 31
1005+(3) Mechanical inspector. 32
1006+(4) Plumbing inspector. 33
1007+(5) Fire inspector. 34
1008+(6) Residential changeout inspector. 35
1009+(b1) The Board shall issue a standard certificate to each person seeking to practice Code 36
1010+enforcement as a residential changeout special inspector by demonstrating the qualifications set 37
1011+forth in subsection (b2) of this section. 38
1012+(b1)(b2) The holder of a standard certificate may practice Code enforcement only within 39
1013+the inspection area and level described upon the certificate issued by the Board. A 40
1014+Code-enforcement official holder of a standard certificate may qualify and hold one or more 41
1015+certificates. These certificates may be for different levels in different types of positions as defined 42
1016+in this section and in rules adopted by the Board. 43
1017+(b2)(b3) A Code-enforcement official holding a certificate indicating a specified level of 44
1018+proficiency in a particular type of position may hold a position calling for that type of 45
1019+qualification anywhere in the State. With respect to all types of Code-enforcement officials, those 46
1020+with Level I, Level II, or Level III certificates shall be qualified to inspect and approve only those 47
1021+types and sizes of buildings as specified in rules adopted by the Board. 48
1022+(c) A Code-enforcement official holding office as of the date specified in this subsection 49
1023+for the county or municipality by which he is employed, shall not be required to possess a 50
1024+standard certificate as a condition of tenure or continued employment but shall be required to 51 General Assembly Of North Carolina Session 2025
1025+House Bill 661-First Edition Page 21
1026+complete such in-service training as may be prescribed by the Board. At the earliest practicable 1
1027+date, such official shall receive from the Board a limited certificate qualifying him to engage in 2
1028+Code enforcement at the level, in the particular type of position, and within the governmental 3
1029+jurisdiction in which he the Code-enforcement official is employed. The limited certificate shall 4
1030+be valid only as an authorization for the Code-enforcement official to continue in the position he 5
1031+held on the applicable date and shall become invalid if he the Code-enforcement official does not 6
1032+complete in-service training within two years following the applicable date in the schedule below, 7
1033+according to the governmental jurisdiction's population as published in the 1970 U.S. Census: 8
1034+Counties and Municipalities over 75,000 population – July 1, 1979 9
1035+Counties and Municipalities between 50,001 and 75,000 – July 1, 1981 10
1036+Counties and Municipalities between 25,001 and 50,000 – July 1, 1983 11
1037+Counties and Municipalities 25,000 and under – July 1, 1985 12
1038+All fire prevention inspectors holding office – July 1, 1989. Fire prevention inspectors have 13
1039+until July 1, 1993, to complete in-service training. 14
1040+An A Code-enforcement official holding a limited certificate can be promoted to a position 15
1041+requiring a higher level certificate only upon issuance by the Board of a standard certificate or 16
1042+probationary certificate appropriate for such new position. 17
1043+(d) The Board may provide for the issuance of probationary or temporary certificates 18
1044+valid for such period (not less than one year nor more than three years) as specified by the Board's 19
1045+rules, or until June 30, 1983, whichever is later, to any Code-enforcement official newly 20
1046+employed or newly promoted person seeking to practice Code enforcement who lacks the 21
1047+qualifications prescribed by the Board as prerequisite to applying for a standard certificate under 22
1048+subsection (a). No Code-enforcement official may have a probationary or temporary certificate 23
1049+extended beyond the specified period by renewal or otherwise. 24
1050+(d1) The Board may provide for appropriate levels of probationary or temporary 25
1051+certificates and may issue these certificates with such special conditions or requirements relating 26
1052+to the place of employment of the person holding the certificate, his supervision on a consulting 27
1053+or advisory basis, or other matters as the Board may deem necessary to protect the public safety 28
1054+and health. 29
1055+(e) The Board shall, without requiring an examination, issue a standard certificate to any 30
1056+person who is currently certified as a county electrical inspector pursuant to G.S. 160D-1102. 31
1057+The certificate issued by the Board shall authorize the person to serve at the electrical inspector 32
1058+level approved by the State Fire Marshal in G.S. 160D-1102. 33
1059+(f) The Board shall issue a standard certificate to any person who is currently licensed to 34
1060+practice as a(n):any of the following: 35
1061+(1) Architect, registered pursuant to Chapter 83A;83A. 36
1062+(2) General contractor, licensed pursuant to Article 1 of Chapter 87;87. 37
1063+(3) Plumbing or heating contractor, licensed pursuant to Article 2 of Chapter 38
1064+87;87. 39
1065+(4) Electrical contractor, licensed pursuant to Article 4 of Chapter 87; or,87. 40
1066+(5) Professional engineer, registered pursuant to Chapter 89C;89C. 41
1067+provided the person successfully completes a short course, as prescribed by the Board, 42
1068+relating to the North Carolina State Building Code regulations and Code enforcement 43
1069+administration. The standard certificate shall authorize the person to practice as a qualified Code 44
1070+enforcement official in a particular type of position at the level determined by the Board, based 45
1071+on the type of license or registration held in any profession specified above. 46
1072+(g) A licensed architect or licensed professional engineer who possesses a valid 47
1073+certificate under subsection (f) of this section, but is not employed by the State or a local 48
1074+government, may utilize that certificate for the limited purpose of performing independent 49
1075+third-party plan review under subsections (d) and (e) of G.S. 160D-1110.1. 50
1076+"§ 143-151.13A. Professional development program for officials.program. 51 General Assembly Of North Carolina Session 2025
1077+Page 22 House Bill 661-First Edition
1078+(a) As used in this section, "official" means a qualified Code-enforcement official as that 1
1079+term is defined in G.S. 143-151.8. 2
1080+(b) The Board may establish professional development requirements for officials 3
1081+certificate holders as a condition of the renewal or reactivation of their certificates. The purposes 4
1082+of these professional development requirements are to assist officials certificate holders in 5
1083+maintaining professional competence in their enforcement of the Code and to assure the health, 6
1084+safety, and welfare of the citizens of North Carolina. An official A certificate holder subject to 7
1085+this section shall present evidence to the Board at each certificate renewal after initial 8
1086+certification, that during the 12 months before the certificate expiration date, the official 9
1087+certificate holder has completed the required number of credit hours in courses approved by the 10
1088+Board. Annual continuing education hour requirements shall be determined by the Board but 11
1089+shall not be more than six credit hours. 12
1090+(c) The Board may require an individual who earns a certificate under programs 13
1091+established in G.S. 143-151.13 to complete professional development courses, not to exceed six 14
1092+hours in each technical area of certification, within one year after that individual is first employed 15
1093+by a city or county inspection department.local inspection department as a Code-enforcement 16
1094+official. 17
1095+(d) As a condition of reactivating a standard or limited certificate, the Board may require 18
1096+the completion of professional development courses within one year after reemployment as an a 19
1097+Code-enforcement official as follows: 20
1098+(1) An individual who has been on inactive status for more than two years and 21
1099+who has not been continuously employed by a city or county inspection 22
1100+department during the period of inactive status shall complete professional 23
1101+development courses not to exceed six hours for each technical area in which 24
1102+the individual is certified. 25
1103+(2) An individual who has been on inactive status for more than two years and 26
1104+who has been continuously employed by a city or county inspection 27
1105+department during the period of inactive status shall complete professional 28
1106+development courses not to exceed three hours for each technical area in 29
1107+which the individual is certified. 30
1108+(3) An individual who has been on inactive status for two years or less shall 31
1109+complete professional development courses not to exceed two hours for each 32
1110+technical area in which the individual is certified. 33
1111+(e) The Board may, for good cause shown, grant extensions of time to officials certificate 34
1112+holders to comply with these requirements. An official A certificate holder who, after obtaining 35
1113+an extension under this subsection, offers evidence satisfactory to the Board that the official 36
1114+certificate holder has satisfactorily completed the required professional development courses, is 37
1115+in compliance with this section. 38
1116+(f) The Board may adopt rules to implement this section, including rules that govern: 39
1117+(1) The content and subject matter of professional development courses. 40
1118+(2) The criteria, standards, and procedures for the approval of courses, course 41
1119+sponsors, and course instructors. 42
1120+(3) The methods of instruction. 43
1121+(4) The computation of course credit. 44
1122+(5) The ability to carry-forward course credit from one year to another. 45
1123+(6) The waiver of or variance from the professional development required for 46
1124+hardship or other reasons. 47
1125+(7) The procedures for compliance and sanctions for noncompliance. 48
1126+"§ 143-151.14. Comity. 49
1127+(a) The Board may, without requiring an examination, grant a standard certificate as a 50
1128+qualified Code-enforcement official to a person seeking to engage in the practice of Code 51 General Assembly Of North Carolina Session 2025
1129+House Bill 661-First Edition Page 23
1130+enforcement for a particular type of position and level to any person who, at the time of 1
1131+application, is certified as a qualified Code-enforcement official holds a certificate in good 2
1132+standing issued by a similar board of another state, district or territory where standards are 3
1133+acceptable to the Board and not lower than those required by this Article for a similar type of 4
1134+position and level in this State. 5
1135+(b) The Board may, without requiring an examination, grant a standard certificate as a 6
1136+qualified Code-enforcement official for a particular type of position and level to any person who, 7
1137+at the time of application, is certified as a qualified Code-enforcement official in good standing 8
1138+by by, and in good standing with, the International Code Council where standards and 9
1139+examination are acceptable to the Board and not lower than those required by this Article for a 10
1140+type of position and level in this State. 11
1141+(c) The certificates granted under subsections (a) and (b) of this section shall expire after 12
1142+three years unless within that time period the holder completes a short course, as prescribed by 13
1143+the Board, relating to the North Carolina State Building Code regulations and Code-enforcement 14
1144+Code enforcement administration. 15
1145+(d) A fee of not more than twenty dollars ($20.00), as determined by the Board, must be 16
1146+paid by any applicant to the Board for the issuance of a certificate under this section. The 17
1147+provisions of G.S. 143-151.16(b) relating to renewal fees and late renewals shall apply to every 18
1148+person granted a standard certificate in accordance with this section. 19
1149+"§ 143-151.15. Return of certificate to Board; reissuance by Board. 20
1150+(a) A certificate issued by the Board under this Article to a Code-enforcement official is 21
1151+valid as long as the person certified is employed by the State of North Carolina or any political 22
1152+subdivision thereof as a Code-enforcement official, or is employed by a federally recognized 23
1153+Indian Tribe to perform inspections on tribal lands as a Code-enforcement official. When the 24
1154+person certified leaves that employment for any reason, he that person shall return the certificate 25
1155+to the Board. If the person subsequently obtains employment as a Code-enforcement official in 26
1156+any governmental jurisdiction described above, the Board may reissue the certificate to him. 27
1157+certificate. The provisions of G.S. 143-151.16(b) relating to renewal fees and late renewals shall 28
1158+apply, if appropriate. The provisions of G.S. 143-151.16(c) shall not apply. This section does not 29
1159+affect the Board's powers under G.S. 143-151.17. 30
1160+(b) A certificate issued by the Board under this Article for residential changeout special 31
1161+inspectors is valid for one year and subject to renewal pursuant to G.S. 143-151.23. 32
1162+"§ 143-151.16. Certification fees; renewal of certificates; examination fees. 33
1163+(a) The Board shall establish a schedule of fees to be paid by each applicant for 34
1164+certification as a qualified Code-enforcement official. Such fee shall not exceed twenty dollars 35
1165+($20.00) for each applicant. 36
1166+(b) A certificate, other than a probationary certificate, as a qualified Code-enforcement 37
1167+official issued pursuant to the provisions of this Article must be renewed annually on or before 38
1168+the first day of July. Each application for renewal must be accompanied by a renewal fee to be 39
1169+determined by the Board, but not to exceed ten dollars ($10.00). The Board is authorized to 40
1170+charge an extra four dollar ($4.00) late renewal fee for renewals made after the first day of July 41
1171+each year. 42
1172+(c) Any person who fails to renew his the certificate for a period of two consecutive years 43
1173+may be required by the Board to take and pass the same examination as unlicensed applicants 44
1174+before allowing such person to renew his the certificate. 45
1175+(d) The Board may contract with persons for the development and administration of the 46
1176+examinations required by G.S. 143-151.13(a), for course development related to the 47
1177+examinations, for review of a particular applicant's examination, and for other related services. 48
1178+The person with whom the Board contracts may charge applicants a reasonable fee for the costs 49
1179+associated with the development and administration of the examinations, for course development 50
1180+related to the examinations, for review of the applicant's examinations, and for other related 51 General Assembly Of North Carolina Session 2025
1181+Page 24 House Bill 661-First Edition
1182+services. The fee shall be agreed to by the Board and the other contracting party. The amount of 1
1183+the fee under this subsection shall not exceed one hundred seventy-five dollars ($175.00). 2
1184+Contracts for the development and administration of the examinations, for course development 3
1185+related to the examinations, and for review of examinations shall not be subject to Article 3, 3C, 4
1186+or 8 of Chapter 143 of the General Statutes or to Article 15 of Chapter 143B of the General 5
1187+Statutes. However, the Board shall: (i) submit all proposed contracts for supplies, materials, 6
1188+printing, equipment, and contractual services that exceed one million dollars ($1,000,000) 7
1189+authorized by this subsection to the Attorney General or the Attorney General's designee for 8
1190+review as provided in G.S. 114-8.3; and (ii) include in all proposed contracts to be awarded by 9
1191+the Board under this subsection a standard clause which provides that the State Auditor and 10
1192+internal auditors of the Board may audit the records of the contractor during and after the term 11
1193+of the contract to verify accounts and data affecting fees and performance. The Board shall not 12
1194+award a cost plus percentage of cost agreement or contract for any purpose. 13
1195+"§ 143-151.17. Grounds for disciplinary actions; investigation; administrative procedures. 14
1196+(a) The Board has the power to suspend, revoke, demote to a lower level, or refuse to 15
1197+grant a certificate issued under this Article to any person to whom any of the following applies: 16
1198+(1) Has been convicted of a felony against this State or the United States, or 17
1199+convicted of a felony in another state that would also be a felony if it had been 18
1200+committed in this State. 19
1201+(2) Has obtained certification through fraud, deceit, or perjury. 20
1202+(3) Has knowingly aided or abetted any person practicing contrary to the 21
1203+provisions of this Article or the North Carolina State Building Code or any 22
1204+building codes adopted by a federally recognized Indian Tribe. 23
1205+(4) Has defrauded the public or attempted to do so. 24
1206+(5) Has affixed his or her a signature to a report of inspection or other instrument 25
1207+of service if no inspection has been made by him or her or under his or her 26
1208+immediate and responsible direction.made. 27
1209+(6) Has been guilty of willful misconduct, gross negligence, or gross 28
1210+incompetence. 29
1211+(b) The Board may investigate the actions of any qualified Code-enforcement official 30
1212+certificate holder or applicant upon the verified complaint in writing of any person alleging a 31
1213+violation of subsection (a) of this section. The Board may suspend, revoke, or demote to a lower 32
1214+level any certificate of any qualified Code-enforcement official certificate holder and refuse to 33
1215+grant a certificate to any applicant, whom it finds to have been guilty of one or more of the actions 34
1216+set out in subsection (a) of this section as grounds for disciplinary action. 35
1217+(c) A denial, suspension, revocation, or demotion to a lower level of a certificate issued 36
1218+under this Article shall be made in accordance with Chapter 150B of the General Statutes. 37
1219+(d) The Board may deny an application for a certificate for any of the grounds that are 38
1220+described in subsection (a) of this section. Within 30 days after receipt of a notification that an 39
1221+application for a certificate has been denied, the applicant may make a written request for a 40
1222+review by a committee designated by the chairman chair of the Board to determine the 41
1223+reasonableness of the Board's action. The review shall be completed without undue delay, and 42
1224+the applicant shall be notified promptly in writing as to the outcome of the review. Within 30 43
1225+days after service of the notification as to the outcome, the applicant may make a written request 44
1226+for a hearing under Article 3A of Chapter 150B of the General Statutes if the applicant disagrees 45
1227+with the outcome. 46
1228+(e) This section applies to Code-enforcement officials and applicants who are employed 47
1229+or seek to be employed by a federally recognized Indian Tribe to perform inspections on tribal 48
1230+lands. 49
1231+"§ 143-151.18. Violations; penalty; injunction. 50 General Assembly Of North Carolina Session 2025
1232+House Bill 661-First Edition Page 25
1233+On and after July 1, 1979, it It shall be unlawful for any person to represent himself 1
1234+misrepresent themselves as a qualified Code-enforcement official who does not hold holder of a 2
1235+currently valid certificate of qualification issued by the Board. Further, it shall be unlawful for 3
1236+any person to practice Code enforcement except as allowed by any currently valid certificate 4
1237+issued to that person by the Board. Any person violating any of the provisions of this Article 5
1238+shall be guilty of a Class 1 misdemeanor. The Board is authorized to apply to any judge of the 6
1239+superior court for an injunction in order to prevent any violation or threatened violation of the 7
1240+provisions of this Article. 8
1241+"§ 143-151.19. Administration. 9
1242+(a) The Division of Engineering and Building Codes in the Department of Insurance shall 10
1243+provide clerical and other staff services required by the Board, and shall administer and enforce 11
1244+all provisions of this Article and all rules promulgated pursuant to this Article, subject to the 12
1245+direction of the Board, except as delegated by this Article to local units of government, other 13
1246+State agencies, corporations, or individuals. 14
1247+(b) The Board shall make copies of this Article and the rules adopted under this Article 15
1248+available to the public at a price determined by the Board. 16
1249+(c) The Board shall keep current a record of the names and addresses of all qualified 17
1250+Code-enforcement officials certificate holders and additional personal data as the Board deems 18
1251+necessary. The Board annually shall publish a list of all currently certified Code-enforcement 19
1252+officials.certificate holders. 20
1253+(d) Each certificate issued by the Board shall contain such identifying information as the 21
1254+Board requires. 22
1255+(e) The Board shall issue a duplicate certificate to practice as a qualified 23
1256+Code-enforcement official a certificate holder in place of one which has been lost, destroyed, or 24
1257+mutilated upon proper application and payment of a fee to be determined by the Board. 25
1258+"§ 143-151.20. Donations and appropriations. 26
1259+(a) In addition to appropriations made by the General Assembly, the Board may accept 27
1260+for any of its purposes and functions under this Article any and all donations, both real and 28
1261+personal, and grants of money from any governmental unit or public agency, or from any 29
1262+institution, person, firm or corporation, and may receive, utilize, disburse and transfer the same, 30
1263+subject to the approval of the Council of State. Any arrangements pursuant to this section shall 31
1264+be detailed in the next regular report of the Board. Such report shall include the identity of the 32
1265+donor, the nature of the transaction, and the conditions, if any. Any moneys received by the Board 33
1266+pursuant to this section shall be deposited in the State treasury to the account of the Board. 34
1267+(b) The Board may provide grants as a reimbursement for actual expenses incurred by 35
1268+the State or political subdivision thereof for the provisions of training programs of officials from 36
1269+other jurisdictions within the State. The Board, by rules, shall provide for the administration of 37
1270+the grant program authorized herein. In promulgating such rules, the Board shall promote the 38
1271+most efficient and economical program of Code-enforcement training, including the maximum 39
1272+utilization of existing facilities and programs for the purpose of avoiding duplication. 40
1273+"§ 143-151.21. Disposition of fees. 41
1274+Fees collected by the State Fire Marshal under this Article shall be credited to the Insurance 42
1275+Regulatory Fund created under G.S. 58-6-25. 43
1276+"§ 143-151.22. North Carolina State Building Code Permit Technician; certification 44
1277+program; professional development requirements; renewal of certificates; fees; 45
1278+exam waivers. 46
1279+(a) State Building Code Permit Technician Certification Program. – The Board shall 47
1280+develop a North Carolina State Building Code Permit Technician certification program and North 48
1281+Carolina State Building Code Permit Technician Certificate. To obtain a certificate, a person 49
1282+must pass an examination, as prescribed by the Board, that is based on the North Carolina State 50
1283+Building Code, administrative procedures applicable to permit administration, and relevant 51 General Assembly Of North Carolina Session 2025
1284+Page 26 House Bill 661-First Edition
1285+topics in support of Code-enforcement officials and local inspection departments. The Board may 1
1286+issue a certificate to each person who successfully completes the examination. The certificate 2
1287+shall bear the signatures of the chairman chair and secretary of the Board. 3
1288+(b) Professional Development Standards for Renewal. – The Board may establish 4
1289+professional development requirements for North Carolina State Building Code Permit 5
1290+Technicians as a condition of the renewal of their certificates. The purpose of these professional 6
1291+development requirements is to assist in maintaining professional competence. A certificate 7
1292+holder subject to this section shall present evidence to the Board at each certificate renewal after 8
1293+initial certification that during the 12 months before the certificate expiration date, the certificate 9
1294+holder has completed the required number of credit hours in courses approved by the Board. 10
1295+Annual continuing education hour requirements shall be determined by the Board. The Board 11
1296+may, for good cause shown, grant extensions of time to certificate holders to comply with these 12
1297+requirements. 13
1298+(c) Renewal Application. – A North Carolina State Building Code Permit Technician 14
1299+Certificate must be renewed annually on or before the first day of July. 15
1300+(d) Fee Authorization. – The Board shall establish a schedule of fees to be paid by each 16
1301+applicant for initial certification and renewal certification as a North Carolina State Building 17
1302+Code Permit Technician. A fee of not more than twenty dollars ($20.00), as determined by the 18
1303+Board, must be paid by any applicant to the Board for the issuance of an initial certification. A 19
1304+fee of not more than ten dollars ($10.00), as determined by the Board, must be paid by any 20
1305+applicant to the Board for the issuance of a renewal certification. The Board is authorized to 21
1306+charge an extra four dollar ($4.00) late renewal fee for renewal applications made after the first 22
1307+day of July each year. 23
1308+(e) Qualified Code-Enforcement Official Exam Waiver. – The Board shall, without 24
1309+requiring an examination, grant a certificate pursuant to this section to any person who, at the 25
1310+time of application, possesses a Building Inspector standard certificate issued by the Board and 26
1311+who is in good standing. The Board may assess a fee for a certificate issued pursuant to this 27
1312+subsection, to the extent authorized by subsection (d) of this section for an initial certification. 28
1313+(f) Comity. – The Board may, without requiring an examination, grant a certificate 29
1314+pursuant to this section to any person who, at the time of application, is similarly certified as a 30
1315+permit technician in good standing by a similar board of another jurisdiction or certified as a 31
1316+permit technician in good standing by the International Code Council, where standards are 32
1317+acceptable to the Board. The certificate granted under this subsection shall expire after one year 33
1318+unless, within that time period, the holder completes a short course, as prescribed by the Board, 34
1319+based on the North Carolina State Building Code and administrative procedures described in 35
1320+subsection (a) of this section. The Board may assess a fee for a certificate issued pursuant to this 36
1321+subsection, to the extent authorized by subsection (d) of this section for an initial certification. 37
1322+"§ 143-151.23. Disasters and emergencies; temporary certificates. 38
1323+(a) When a state of emergency, as defined in G.S. 166A-19.3, has been declared by the 39
1324+Governor due to a natural disaster such as a hurricane, tornado, or flood, or due to a pending 40
1325+disaster, the Board may issue temporary standard or limited certificates to retired qualified 41
1326+Code-enforcement officials to conduct Code enforcement in the emergency area, as defined in 42
1327+G.S. 166A-19.3, for the duration of the state of emergency. 43
1328+(b) A temporary standard or limited certificate issued under this section shall expire at 44
1329+the termination of the state of emergency or 12 months, whichever is earlier. If after 12 months 45
1330+the state of emergency has not expired, the Board may renew the temporary standard or limited 46
1331+certificate. 47
1332+(c) A qualified Code-enforcement official who has been on inactive status and is issued 48
1333+a temporary standard or limited certificate under this section shall not be subject to the continuing 49
1334+education requirements established pursuant to G.S. 143-151.13A, unless the individual has been 50 General Assembly Of North Carolina Session 2025
1335+House Bill 661-First Edition Page 27
1336+inactive or retired for over two years and not continuously employed by a city or county 1
1337+inspection department. 2
1338+"§ 143-151.24. Residential changeout special inspectors; certification program; 3
1339+professional development requirements; renewal of certificates; fees; exam 4
1340+waivers. 5
1341+(a) Residential Changeout Special Inspector Certification Program. – The Board shall 6
1342+develop a Residential Changeout Special Inspector Certification Program and residential 7
1343+changeout special inspector certificate. To obtain a certificate, a person must pass an 8
1344+examination, as prescribed by the Board, that is based on the North Carolina State Building Code, 9
1345+administrative procedures applicable to permit administration, and relevant topics related to the 10
1346+inspection of residential changeout work as described in G.S. 160D-1106.1. The Board may issue 11
1347+a certificate to each person who successfully applies and completes the examination. The 12
1348+certificate shall bear the signatures of the chair and secretary of the Board. 13
1349+(b) Professional Development Standards for Renewal. – The Board may establish 14
1350+professional development requirements for residential changeout special inspector certificate as 15
1351+a condition of the renewal of their certificates. The purpose of these professional development 16
1352+requirements is to assist in maintaining professional competence. A certificate holder subject to 17
1353+this section shall present evidence to the Board at each certificate renewal after initial certification 18
1354+that during the 12 months before the certificate expiration date, the certificate holder has 19
1355+completed the required number of credit hours in courses approved by the Board. Annual 20
1356+continuing education hour requirements shall be determined by the Board. The Board may, for 21
1357+good cause shown, grant extensions of time to certificate holders to comply with these 22
1358+requirements. 23
1359+(c) Renewal Application. – A residential changeout special inspector certificate must be 24
1360+renewed annually on or before the first day of July. 25
1361+(d) Fee Authorization. – The Board shall establish a schedule of fees to be paid by each 26
1362+applicant for initial certification and renewal certification as a residential changeout special 27
1363+inspector. A fee of not more than twenty dollars ($20.00), as determined by the Board, must be 28
1364+paid by any applicant to the Board for the issuance of an initial certification. A fee of not more 29
1365+than ten dollars ($10.00), as determined by the Board, must be paid by any applicant to the Board 30
1366+for the issuance of a renewal certification. The Board is authorized to charge an extra four dollar 31
1367+($4.00) late renewal fee for renewal applications made after the first day of July each year. 32
1368+(e) Code-Enforcement Official Exam Waiver. – The Board shall, without requiring an 33
1369+examination, grant a certificate pursuant to this section to any person who, at the time of 34
1370+application, possesses a Building Inspector standard certificate issued by the Board and who is 35
1371+in good standing. The Board may assess a fee for a certificate issued pursuant to this subsection 36
1372+to the extent authorized by subsection (d) of this section for an initial certification. 37
1373+(f) Certification of Licensed Contractors. – The Board shall issue a standard certificate 38
1374+to any person who is currently licensed to practice as a plumbing or heating contractor, licensed 39
1375+pursuant to Article 2 of Chapter 87 of the General Statutes, provided the person successfully 40
1376+completes a short course, as prescribed by the Board, relating to the North Carolina State 41
1377+Building Code and Code enforcement administration. 42
1378+(g) Comity. – The Board may, without requiring an examination, grant a certificate 43
1379+pursuant to this section to any person who, at the time of application, is a similarly certified 44
1380+Building Inspector in good standing by a similar board of another jurisdiction where standards 45
1381+are acceptable to the Board. The certificate granted under this subsection shall expire after one 46
1382+year unless, within that time period, the holder completes a short course, as prescribed by the 47
1383+Board, based on the North Carolina State Building Code and administrative procedures described 48
1384+in subsection (a) of this section. The Board may assess a fee for a certificate issued pursuant to 49
1385+this subsection, to the extent authorized by subsection (d) of this section for an initial 50
1386+certification." 51 General Assembly Of North Carolina Session 2025
1387+Page 28 House Bill 661-First Edition
1388+SECTION 4.1.(b) Article 11 of Chapter 160D of the General Statutes is amended 1
1389+by adding a new section to read: 2
1390+"§ 160D-1106.1. Alternate inspection method by residential changeout special inspectors. 3
1391+(a) Notwithstanding the building inspection requirements of this Article, a local 4
1392+government shall accept and approve, without further responsibility to inspect, a residential 5
1393+changeout inspected by a residential changeout special inspector if all of the following conditions 6
1394+are met: 7
1395+(1) The residential changeout is completed by a contractor licensed pursuant to 8
1396+Article 2 of Chapter 87 of the General Statutes, who is different than the 9
1397+residential changeout special inspector charged with inspection of that 10
1398+residential changeout. 11
1399+(2) The new appliance, and related connections, subject to the residential 12
1400+changeout meets all of the following conditions: 13
1401+a. The new appliance requires no alterations to the existing ducting, fuel 14
1402+type, or piping systems other than what is required for transitioning to 15
1403+the new appliance. 16
1404+b. Any venting associated with the new appliance shall be allowed to be 17
1405+installed, replaced, and repaired where such venting does not pass 18
1406+through a rated assembly. 19
1407+c. Any new gas appliance shall be of the same category as the appliance 20
1408+being replaced, if applicable. 21
1409+d. The new appliance does not require relocation, excluding minor 22
1410+adjustments in the same general vicinity. 23
1411+e. The installation of the new appliance does not require the relocation 24
1412+or addition to the existing electrical system, except the replacement of 25
1413+the appliance's branch circuit overcurrent device, or the replacement 26
1414+of the appliance's branch circuit where such circuit does not pass 27
1415+through a rated assembly shall be allowed. 28
1416+f. The electrical branch circuit serving the appliance is single phase. 29
1417+(3) Field inspection of the installation is performed by a residential changeout 30
1418+special inspector, certified pursuant to Article 9C of Chapter 143 of the 31
1419+General Statutes. 32
1420+(4) The residential changeout special inspector provides the local government 33
1421+with a signed written certification that work outlined within subdivisions (1) 34
1422+and (2) of this subsection have been met and is compliant with the North 35
1423+Carolina State Building Code. The certification required under this 36
1424+subdivision shall be provided by electronic or physical delivery, and its receipt 37
1425+shall be promptly acknowledged by the local government through reciprocal 38
1426+means. The certification shall be made on forms created by the Office of the 39
1427+State Fire Marshal, in consultation with the North Carolina Residential Code 40
1428+Council, which shall include the following information: 41
1429+a. Permit number. 42
1430+b. Date of inspection. 43
1431+c. Type of inspection. 44
1432+d. Contractor's name and license number. 45
1433+e. Street address of the job location. 46
1434+f. Name, address, telephone number, and certificate number of the 47
1435+person responsible for the residential changeout special inspection. 48
1436+(b) In accepting certifications of inspections under subsection (a) of this section, a local 49
1437+government shall not require information other than what is required within the certification 50
1438+required under subsection (a) of this section. 51 General Assembly Of North Carolina Session 2025
1439+House Bill 661-First Edition Page 29
1440+(c) Upon the acceptance and approval of a signed certification by the local government 1
1441+as required under subsection (a) of this section, notwithstanding the issuance of a certificate of 2
1442+compliance, the local government, its inspection department, and its inspectors are discharged 3
1443+and released from any liabilities, duties, and responsibilities imposed by this Article with respect 4
1444+to or in common law from any claim arising out of or attributed to the residential changeout 5
1445+inspection for which the signed written certification was submitted. 6
1446+(d) For the purposes of this section, the phrase "residential changeout" means work 7
1447+requiring a building permit for the purpose of heating and air conditioning appliance and water 8
1448+heater replacement in dwellings subject to the North Carolina Residential Code, and individual 9
1449+residential units of condominiums and apartments provided the individual appliance serves only 10
1450+that residential dwelling unit." 11
1451+SECTION 4.1.(c) By July 1, 2025, the Office of the State Fire Marshal shall develop 12
1452+an internet-based examination and short course as described in G.S. 143-151.24, as enacted by 13
1453+subsection (a) of this section, and make it available on the Office's website for the purpose of 14
1454+certifying residential changeout special inspectors. 15
1455+SECTION 4.1.(d) By July 1, 2025, the Office of the State Fire Marshal shall develop 16
1456+the form required under G.S. 160D-1106.1, as enacted by subsection (b) of this section, and make 17
1457+it available on the Office's website. 18
1458+ 19
1459+PART V. ESTABLISH RIGHT TO REPAIR CONSTR UCTION DEFECTS WITHI N 20
1460+DWELLINGS SUBJECT TO THE NORTH CAROLINA RESIDENTIAL CODE 21
1461+SECTION 5.1.(a) Chapter 87 of the General Statutes is amended by adding a new 22
1462+Article to read: 23
1463+"Article 9. 24
1464+"Right to Repair Construction Defects Act. 25
1465+"§ 87-150. Short title. 26
1466+This Article shall be known and may be cited as the "Right to Repair Construction Defects 27
1467+Act." 28
1468+"§ 87-151. Definitions. 29
1469+The following definitions apply in this Article: 30
1470+(1) Action. – Any civil lawsuit, judicial action, or alternative dispute resolution 31
1471+proceeding for damages or other relief asserting a claim for injury or loss to a 32
1472+dwelling caused by an alleged construction defect arising out of or related to 33
1473+the construction, repairing, or remodeling of the dwelling. 34
1474+(2) Claimant. – An owner who asserts a claim against a general contractor 35
1475+concerning a construction defect in the construction, repairing, or remodeling 36
1476+of a dwelling. 37
1477+(3) Construction defect. – A defect in or a deficiency arising out of the design or 38
1478+construction of improvements, including the use of defective material, 39
1479+products, or components. 40
1480+(4) Dwelling. – A single-family dwelling or other dwelling type subject to the 41
1481+North Carolina Residential Code, including the systems, components, and 42
1482+improvements serving that dwelling. 43
1483+(5) General contractor. – As defined in G.S. 87-1. 44
1484+(6) Serve or service. – Personal service or delivery by certified mail to the last 45
1485+known address of the addressee. 46
1486+"§ 87-152. Notice and opportunity to repair. 47
1487+(a) Notice of Claim. – Before commencing an action against a general contractor 48
1488+regarding a construction defect, the claimant must, no less than 90 days before filing the action, 49
1489+serve a written notice of claim on the general contractor. The notice of claim must contain the 50
1490+following, at a minimum: 51 General Assembly Of North Carolina Session 2025
1491+Page 30 House Bill 661-First Edition
1492+(1) A statement that the claimant asserts a construction defect. 1
1493+(2) A description of the claim or claims in reasonable detail sufficient to 2
1494+determine the general nature of the construction defect. 3
1495+(3) A description of any effects of the construction defect, if known. 4
1496+(b) Request for Clarification. – If a notice of claim is not sufficiently stated, the general 5
1497+contractor may advise the claimant within 15 days of service of the notice of claim and request 6
1498+clarification. 7
1499+(c) General Contractor's Response to Notice of Claim. – The general contractor has 30 8
1500+days from service of the notice of claim to inspect, offer to remedy, offer to settle with the 9
1501+claimant, or deny a claim, in whole or in part, regarding the construction defect. The claimant 10
1502+shall receive written notice of the general contractor's election under this section within 30 days. 11
1503+Failure to respond within 30 days is deemed a denial of the claim. 12
1504+(d) Response to General Contractor's Offer. – The claimant shall accept a general 13
1505+contractor's offer, if any, within 10 days of receipt of the offer pursuant to subsection (c) of this 14
1506+section. Failure to respond within 10 days is deemed a denial of the general contractor's offer. 15
1507+(e) Reasonable Access to Dwelling. – If requested, the claimant shall give the general 16
1508+contractor reasonable access to the dwelling at a mutually agreeable time to inspect a construction 17
1509+defect and, if agreed to by the parties, repair a construction defect. 18
1510+(f) Civil Remedy. – Nothing in this Article shall prevent a claimant from proceeding with 19
1511+a civil action or other remedy provided by law if the parties cannot reach a resolution pursuant 20
1512+to this Article. 21
1513+(g) Claimant Repairs. – Nothing in this Article shall be construed to prohibit a claimant 22
1514+from making immediate repairs to an alleged construction defect subject to this Article to protect 23
1515+the health and safety of a dwelling's occupants or to mitigate further damage to the dwelling. 24
1516+(h) Admissibility. – Evidence of offers to settle, repair, or remedy pursuant to this Article 25
1517+is not admissible to prove liability for or invalidity of the claim or its amount. 26
1518+"§ 87-153. Filing a complaint with the Board not prohibited. 27
1519+Nothing in this Article shall prevent a claimant from filing a complaint with the Board in 28
1520+accordance with G.S. 87-11(a1). 29
1521+"§ 87-154. Stay of action. 30
1522+If a claimant files an action in court before first complying with the requirements of this 31
1523+Article, on motion of a party to the action, the court shall stay the action for 120 days and such 32
1524+additional time that is necessary for compliance with the requirements of this Article." 33
1525+SECTION 5.1.(b) This section becomes effective October 1, 2025, and applies to 34
1526+actions commenced on or after that date. 35
1527+ 36
1528+PART VI. MISCELLANEO US 37
1529+ 38
1530+MODIFY PUBLIC POOL LAWS TO CLARIFY PRIVATE POOL EXCLUSION AND 39
1531+TO EXEMPT PUBLIC COLD BATHS 40
1532+SECTION 6.1.(a) G.S. 130A-280, as amended by Section 4.51(a) of S.L. 2024-49, 41
1533+reads as rewritten: 42
1534+"§ 130A-280. Scope.Scope and definitions. 43
1535+(a) This Article Part provides for the regulation of public swimming pools in the State as 44
1536+they may affect the public health and safety. As used in this Article, the term "public swimming 45
1537+pool" means any structure, chamber, or tank containing an artificial body of water used by the 46
1538+public for swimming, diving, wading, recreation, or therapy, together with buildings, 47
1539+appurtenances, and equipment used in connection with the body of water, regardless of whether 48
1540+a fee is charged for its use. The term includes municipal, school, hotel, motel, apartment, 49
1541+boarding house, athletic club, or other membership facility pools and spas, spas operating for 50
1542+display at temporary events, and artificial swimming lagoons. As used in this Article, an 51 General Assembly Of North Carolina Session 2025
1543+House Bill 661-First Edition Page 31
1544+"artificial swimming lagoon" means any body of water used for recreational purposes with more 1
1545+than 20,000 square feet of surface area, an artificial liner, and a method of disinfectant that results 2
1546+in a disinfectant residual in the swimming zone that is protective of the public health. This Article 3
1547+Part does not apply to any of the following: 4
1548+(1) A private pool serving a single family dwelling and used only by the residents 5
1549+of the dwelling and their guests.guests regardless of whether their guests gain 6
1550+use of the private pool through a sharing economy platform or pay a fee for 7
1551+its use. In all cases in which a fee is exchanged for access to a private pool 8
1552+serving a single-family dwelling that is used only by the residents of the 9
1553+dwelling and their guests, the private pool shall be maintained in good and 10
1554+safe working order. 11
1555+(2) A private pool serving a single family dwelling meeting the minimum 12
1556+requirements of this subdivision which is offered to, and used by, individuals 13
1557+on a temporary basis utilizing a sharing economy platform. For the purposes 14
1558+of this subdivision, a sharing economy platform means an online platform 15
1559+used to facilitate peer-to-peer transactions to acquire, provide, or share access 16
1560+to goods and services. For the purposes of this subdivision, a pool must meet 17
1561+all of the following minimum requirements: 18
1562+a. Pools must have proper fencing and barriers to prevent unsupervised 19
1563+access, especially by children. The fence should be at least 4 feet high 20
1564+with a self-latching gate. 21
1565+b. Pools must have clear and conspicuous signage posted around the pool 22
1566+area specifying pool rules, depth markers, and any potential hazards. 23
1567+c. Pools must be equipped with basic lifesaving equipment, including life 24
1568+rings and reaching poles. 25
1569+d. Pool decks and surrounding areas must have non-slip surfaces. 26
1570+e. Pools must have properly fitted covers for all submerged suction 27
1571+outlets. 28
1572+f. Pools must be well-maintained with proper chemical balance and 29
1573+cleanliness to ensure safe and healthy swimming conditions. 30
1574+(2a) A public cold bath that meets all of the following requirements: 31
1575+a. Is a tub or tank that is used by the general public, one bather at a time, 32
1576+regardless of whether a fee is charged for its use. 33
1577+b. Contains chilled water that is (i) maintained at a temperature lower 34
1578+than 60 degrees Fahrenheit, (ii) no more than 180 gallons in volume, 35
1579+and (iii) at a depth that allows the bather to maintain the bather's head 36
1580+above the water while in a seated position. 37
1581+c. Continuously filters and sanitizes the chilled water. 38
1582+(3) Therapeutic pools used in physical therapy programs operated by medical 39
1583+facilities licensed by the Department or operated by a licensed physical 40
1584+therapist, nor to therapeutic chambers drained, cleaned, and refilled after each 41
1585+individual use. 42
1586+(b) The following definitions apply in this Part: 43
1587+(1) Artificial swimming lagoon. – Any body of water used for recreational 44
1588+purposes with more than 20,000 square feet of surface area, an artificial liner, 45
1589+and a method of disinfectant that results in a disinfectant residual in the 46
1590+swimming zone that is protective of the public health. 47
1591+(2) Public swimming pool. – Any structure, chamber, or tank containing an 48
1592+artificial body of water used by the public for swimming, diving, wading, 49
1593+recreation, or therapy, together with buildings, appurtenances, and equipment 50
1594+used in connection with the body of water, regardless of whether a fee is 51 General Assembly Of North Carolina Session 2025
1595+Page 32 House Bill 661-First Edition
1596+charged for its use. The term includes municipal, school, hotel, motel, 1
1597+apartment, boarding house, athletic club, or other membership facility pools 2
1598+and spas, spas operating for display at temporary events, and artificial 3
1599+swimming lagoons. 4
1600+(3) Sharing economy platform. – An online platform used to facilitate 5
1601+peer-to-peer transactions to acquire, provide, or share access to goods and 6
1602+services." 7
1603+SECTION 6.1.(b) This section becomes effective July 1, 2025. 8
1604+ 9
1605+PART VII. SEVERABILITY CLAUSE AND EFFECT IVE DATE 10
1606+ 11
1607+SEVERABILITY CLAUSE 12
1608+SECTION 7.1. If any section or provision of this act is declared unconstitutional or 13
1609+invalid by the courts, it does not affect the validity of this act as a whole or any part other than 14
1610+the part declared to be unconstitutional or invalid. 15
1611+ 16
1612+EFFECTIVE DATE 17
1613+SECTION 7.2. Except as otherwise provided, this act is effective when it becomes 18
1614+law. 19