North Carolina House Bill H661 Latest Draft

                            GENERAL ASSEMBLY OF NORTH CAROLINA 
SESSION 2025 
H 	2 
HOUSE BILL 661 
Committee Substitute Favorable 4/10/25 
 
Short Title: Building Industry Efficiency Act of 2025. 	(Public) 
Sponsors:  
Referred to:  
April 2, 2025 
*H661 -v-2* 
A BILL TO BE ENTITLED 1 
AN ACT TO AMEND VARI OUS LAWS TO PROVIDE ADDITIONAL BUILDING 2 
INDUSTRY EFFICIENCY. 3 
The General Assembly of North Carolina enacts: 4 
 5 
PART I. LOCAL DEVELOPMENT AND CONSTRUCTI ON REGULATION 6 
 7 
PROHIBIT INSPECTION DEPARTMENTS FROM CHARGING FEES FOR CERTAIN 8 
INSPECTION CANCELLATIONS 9 
SECTION 1.1. G.S. 160D-1104 is amended by adding a new subsection to read: 10 
"(d2) An inspection department shall not charge the permit holder a fee or fail an inspection 11 
of a building or structure subject to the North Carolina Residential Code, if the permit holder 12 
cancels a scheduled inspection more than one business day before the scheduled inspection." 13 
 14 
LIMIT DESIGN METHODOLOGY AND CONSTRUCTION STANDARDS FOR 15 
CERTAIN MUNICIPAL STREETS 16 
SECTION 1.2.(a) Article 15 of Chapter 160D of the General Statutes is amended by 17 
adding a new section to read: 18 
"§ 160D-1502.  Limit street design methodology and construction standards for certain 19 
municipal streets. 20 
Notwithstanding G.S. 136-66.4, municipalities shall not implement design methodology and 21 
construction standards for new streets and highways to be accepted by a municipality, utilizing 22 
funds that are not wholly municipal funds, that are more stringent than design methodology and 23 
construction standards utilized by the North Carolina Department of Transportation. Nothing in 24 
this section limits the authority of the North Carolina Department of Transportation to regulate 25 
street connections to a public system as authorized by law." 26 
SECTION 1.2.(b) This section becomes effective July 1, 2025, and applies to 27 
projects initiated on or after that date. 28 
 29 
LIMIT DESIGN METHODOLOGY AND CONSTRUCTION STANDARDS FOR 30 
CERTAIN PRIVATE STREETS 31 
SECTION 1.3.(a) Article 15 of Chapter 160D of the General Statutes is amended by 32 
adding a new section to read: 33 
"§ 160D-1503. Limit street design methodology and construction standards for certain 34 
private streets. 35  General Assembly Of North Carolina 	Session 2025 
Page 2  House Bill 661-Second Edition 
Municipalities shall not implement design methodology and construction standards for new 1 
streets designated as private, and intended to remain privately owned after construction, that are 2 
more stringent than design methodology and construction standards utilized by the North 3 
Carolina Department of Transportation. Notwithstanding any design methodology and 4 
construction standards implemented by the municipality, the municipality must accept 5 
engineered street design methodology and construction standards that do not meet minimum 6 
standards utilized by the North Carolina Department of Transportation if the engineered street 7 
design methodology and construction standards are signed and sealed by a duly licensed 8 
professional engineer, under Chapter 89C of the General Statutes, and meet vehicular traffic and 9 
fire apparatus access requirements. If engineered street design methodology and construction 10 
standards do not meet minimum standards utilized by the North Carolina Department of 11 
Transportation, the developer must include disclosures to prospective buyers as outlined in 12 
G.S. 136-102.6(f) prior to entering into any agreement or any conveyance with any prospective 13 
buyer. A local government is discharged and released from any liabilities, duties, and 14 
responsibilities imposed by this Chapter, or in common law, from any claim arising out of, or 15 
attributed to, the plan review or acceptance of signed and sealed engineered street design 16 
methodology and construction standards submitted pursuant to this section. Nothing in this 17 
section limits the authority of local governments or the North Carolina Department of 18 
Transportation to regulate private road, driveway, or street connection to a public system, or to 19 
regulate transportation and utilities as otherwise authorized by law." 20 
SECTION 1.3.(b) This section becomes effective July 1, 2025, and applies to 21 
projects initiated on or after that date. 22 
 23 
MUNICIPALITIES REQUIRING DEVELOPERS TO CONSTRUCT CERTAIN 24 
PEDESTRIAN FACILITIES AND STREET IMPROVEMENTS TO ACCEPT THOSE 25 
IMPROVEMENTS 26 
SECTION 1.4.(a) Article 15 of Chapter 160D of the General Statutes is amended by 27 
adding a new section to read: 28 
"§ 160D-1504.  Municipal requirements for pedestrian facilities and street improvements 29 
within extraterritorial jurisdiction. 30 
A municipality that requires a developer to construct a pedestrian facility or street 31 
improvement within public right-of-way located outside of a construction project boundary shall 32 
accept that pedestrian facility and street improvement into its municipal public road system for 33 
maintenance and repair upon project completion. This section applies to projects located within 34 
an extraterritorial jurisdiction of a municipality, established pursuant to Article 2 of Chapter 35 
160D of the General Statutes. This section does not apply to public right-of-way that is under the 36 
control of the North Carolina Department of Transportation." 37 
SECTION 1.4.(b) This section becomes effective July 1, 2025, and applies to 38 
projects initiated on or after that date. 39 
 40 
COUNTIES REQUIRING DEVELOPERS TO CONSTRUCT CERTAIN PEDESTRIAN 41 
AND STREET IMPROVEMENTS MUST SEEK AGREEMENTS TO ACCEPT THOSE 42 
IMPROVEMENTS INTO A PUBLIC R OAD SYSTEM 43 
SECTION 1.5.(a) Article 15 of Chapter 160D of the General Statutes is amended by 44 
adding a new section to read: 45 
"§ 160D-1505.  County requirements for pedestrian facilities and public road 46 
improvements. 47 
A county shall not require a developer to construct a pedestrian facility or public road 48 
improvement within public right-of-way located outside of a construction project boundary 49 
unless the county obtains an agreement with either the North Carolina Department of 50 
Transportation or the municipality, as applicable, that the pedestrian facility or public road 51  General Assembly Of North Carolina 	Session 2025 
House Bill 661-Second Edition 	Page 3 
improvement will be accepted into a public road system for maintenance and repair. This section 1 
applies to projects located within a planning and development regulation jurisdiction of a county, 2 
established pursuant to Article 2 of Chapter 160D of the General Statutes. This section does not 3 
apply to public right-of-way that is under the control of the North Carolina Department of 4 
Transportation." 5 
SECTION 1.5.(b) This section becomes effective July 1, 2025, and applies to 6 
projects initiated on or after that date. 7 
 8 
AMEND PUBLIC STREET DEDICATION ABANDONMENT PROCESS 9 
SECTION 1.6. G.S. 136-96 reads as rewritten: 10 
"§ 136-96.  Road or street not used within 15 years after dedication deemed abandoned; 11 
declaration of withdrawal recorded; joint tenants or tenants in common; defunct 12 
corporations. 13 
(a) Every strip, piece, or parcel of land that has been at any time dedicated to public use 14 
as a road, highway, street, avenue, or for any other purpose whatsoever, by a deed, grant, map, 15 
plat, or other means, and that has not been actually opened and used by the public within 15 years 16 
after its dedication is conclusively presumed to have been abandoned by the public for the 17 
purposes for which it was dedicated; and no person shall have any right or cause of action 18 
thereafter to enforce any public or private easement in the land. 19 
(b) Notwithstanding subsection (a) of this section, no abandonment of any public or 20 
private right or easement shall be presumed until the dedicator or a person claiming under the 21 
dedicator files or causes to be recorded in the register's office of the county where the land lies a 22 
declaration withdrawing the strip, piece, or parcel of land from the public or private use to which 23 
it was dedicated. 24 
(c) When the fee simple title is vested in tenants in common or joint tenants of any land 25 
embraced within the boundaries of a road, highway, street, avenue, or other land dedicated for 26 
any public purpose whatsoever, as described in this section, any one or more of the cotenants, on 27 
the cotenant's behalf and on behalf of the other cotenants, may execute and cause to be registered 28 
in the office of the register of deeds of the county where the land is situated the declaration of 29 
withdrawal provided for in this section. Under Chapter 46A (Partition) of the General Statutes 30 
and Article 29A (Judicial Sales) of Chapter 1 of the General Statutes, and on petition of any one 31 
or more of the cotenants, the land thereafter may be partitioned by sale only as between or among 32 
the cotenants, irrespective of who may be in actual possession of the land. In the partition 33 
proceeding, any cotenant may object to the withdrawal certificate and the court shall thereupon 34 
order the certificate cancelled of record. 35 
(d) When any corporation has dedicated any strip, piece, or parcel of land in the manner 36 
set out in this section, and the dedicating corporation is no longer in existence, the corporation is 37 
conclusively presumed to have no further right, title, or interest in the land, regardless of the 38 
provisions of conveyances from the corporation, or those holding under the corporation, retaining 39 
title and interest in the land. The right, title, and interest in the land is conclusively presumed to 40 
be vested in those persons owning lots or parcels of land adjacent to it, subject to the provisions 41 
of this section. 42 
(e) This section does not apply in any of the following circumstances: 43 
(1) When the continued use of any strip of land dedicated for street or highway 44 
purposes is necessary to afford convenient ingress or egress to any lot or parcel 45 
of land sold and conveyed by the dedicator of the street or highway. 46 
(2) When the public dedication is part of a future street shown on the street plan 47 
adopted pursuant to G.S. 136-66.2. Upon request, a city shall adopt a 48 
resolution indicating that the dedication described in the proposed declaration 49 
of withdrawal is or is not part of the street plan adopted under G.S. 136-66.2. 50 
This resolution shall be attached to the declaration of withdrawal and shall be 51  General Assembly Of North Carolina 	Session 2025 
Page 4  House Bill 661-Second Edition 
registered in the office of the register of deeds of the county where the land is 1 
situated. 2 
(f) Any strip, piece, or parcel of land that was dedicated to public use as a local road, 3 
highway, street, or avenue by plat on December 22, 1978, but that has not been maintained as a 4 
local public road, highway, street, or avenue by a local governmental entity by January 1, 2025, 5 
is hereby deemed withdrawn for public use, any rights of the public therein are deemed 6 
abandoned, and no person or governmental entity shall have any right or cause of action to 7 
enforce any public interest or easement in such land pursuant to this section." 8 
 9 
PART II. NORTH CAROLINA STATE BUILDING CODE 10 
 11 
EXEMPT MODEL HOMES FROM FIRE PROTECTION WATER SUPPL	Y 12 
REQUIREMENT DURING CONSTRUCTION 13 
SECTION 2.1.(a) Definitions. – For the purposes of this section, the following 14 
definitions apply: 15 
(1) Code. – The North Carolina State Building Code, and amendments to the 16 
Code, as adopted by the Councils. 17 
(2) Councils. – The Building Code Council and Residential Code Council. 18 
(3) Model home. – As defined in G.S. 160D-1501(a). 19 
(4) Water Supply Rules. – Section 3312.1, when required, of the North Carolina 20 
Fire Code, and Section 3313.1, where required, of the North Carolina Building 21 
Code. 22 
SECTION 2.1.(b) Water Supply Rules. – Until the effective date of the rules to 23 
amend Water Supply Rules, the Office of the State Fire Marshal, the Councils, and State and 24 
local governments enforcing the Code shall implement Water Supply Rules as provided in 25 
subsection (c) of this section. 26 
SECTION 2.1.(c) Implementation. – Notwithstanding Water Supply Rules, the fire 27 
code official is authorized to reduce the fire-flow requirements for an isolated model home at a 28 
subdivision project site where development of full-fire flow requirements is impractical or 29 
pending. 30 
SECTION 2.1.(d) Additional Rulemaking Authority. – The Council shall adopt rules 31 
to amend Water Supply Rules to be consistent with subsection (c) of this section. 32 
Notwithstanding G.S. 150B-19(4), the rule adopted by the Council pursuant to this section shall 33 
be substantively identical to the provisions of subsection (c) of this section. Rules adopted 34 
pursuant to this section are not subject to Part 3 of Article 2A of Chapter 150B of the General 35 
Statutes. Rules adopted pursuant to this section shall become effective as provided in 36 
G.S. 150B-21.3(b1) as though 10 or more written objections had been received as provided in 37 
G.S. 150B-21.3(b2). 38 
SECTION 2.1.(e) Additional Residential Code Council Rulemaking Authority. – 39 
The Residential Code Council shall adopt rules to amend the 2024 North Carolina State Building 40 
Code volumes specified within G.S. 143-138(a)(1) through (10) to make conforming changes to 41 
codes applicable to residential construction consistent with rules adopted by the Building Code 42 
Council as required by subsection (d) of this section. Rules adopted pursuant to this subsection 43 
are not subject to Part 3 of Article 2A of Chapter 150B of the General Statutes. Rules adopted 44 
pursuant to this subsection shall become effective as provided in G.S. 150B-21.3(b1) as though 45 
10 or more written objections had been received as provided in G.S. 150B-21.3(b2). 46 
SECTION 2.1.(f) Sunset. – This section expires when permanent rules adopted as 47 
required by subsections (d) and (e) of this section become effective. 48 
 49 
NORTH CAROLINA STATE BUILDING CODE VOLUME REFERENCE TECHNICAL 50 
CORRECTIONS 51  General Assembly Of North Carolina 	Session 2025 
House Bill 661-Second Edition 	Page 5 
SECTION 2.2.(a) G.S. 44A-11.1(a) reads as rewritten: 1 
"(a) With regard to any improvements to real property to which this Article is applicable 2 
for which the costs of the undertaking are forty thousand dollars ($40,000) or more, either at the 3 
time that the original building permit is issued or, in cases in which no building permit is required, 4 
at the time the contract for the improvements is entered into with the owner, the owner shall 5 
designate a lien agent no later than the time the owner first contracts with any person to improve 6 
the real property. Provided, however, that the owner is not required to designate a lien agent for 7 
improvements to an existing single-family residential dwelling unit as defined in G.S. 87-15.5(7) 8 
that is occupied by the owner as a residence, or for the addition of an accessory building or 9 
accessory structure as defined in the North Carolina Uniform Residential Building Code, the use 10 
of which is incidental to that residence. The owner shall deliver written notice of designation to 11 
its designated lien agent by any method authorized in G.S. 44A-11.2(f), and shall include in its 12 
notice the street address, tax map lot and block number, reference to recorded instrument, or any 13 
other description that reasonably identifies the real property for the improvements to which the 14 
lien agent has been designated, and the owner's contact information. Designation of a lien agent 15 
pursuant to this section does not make the lien agent an agent of the owner for purposes of 16 
receiving a Claim of Lien on Real Property, a Notice of Claim of Lien upon Funds, a Notice of 17 
Subcontract, or for any purpose other than the receipt of notices to the lien agent required under 18 
G.S. 44A-11.2." 19 
SECTION 2.2.(b) G.S. 58-45-5(5) reads as rewritten: 20 
"(5) Insurable property. – Real property at fixed locations in the beach and coastal 21 
area, including travel trailers when tied down at a fixed location, or the 22 
tangible personal property located therein, but shall not include insurance on 23 
motor vehicles; which property is determined by the Association, after 24 
inspection and under the criteria specified in the plan of operation, to be in an 25 
insurable condition. However, any one and two family dwellings built in 26 
substantial accordance with the Federal Manufactured Home Construction 27 
and Safety Standards, any predecessor or successor federal or State 28 
construction or safety standards, and any further construction or safety 29 
standards promulgated by the association and approved by the Commissioner, 30 
or the North Carolina Uniform Residential Building Code and any structure 31 
or building built in substantial compliance with the North Carolina State 32 
Building Code, including the design-wind requirements, which is not 33 
otherwise rendered uninsurable by reason of use or occupancy, shall be an 34 
insurable risk within the meaning of this Article. However, none of the 35 
following factors shall be considered in determining insurable condition: 36 
neighborhood, area, location, environmental hazards beyond the control of the 37 
applicant or owner of the property. Also, any structure begun on or after 38 
January 1, 1970, not built in substantial compliance with the Federal 39 
Manufactured Home Construction and Safety Standards, any predecessor or 40 
successor federal or State construction or safety standards, and any further 41 
construction or safety standards promulgated by the association and approved 42 
by the Commissioner, or the North Carolina Uniform Residential Building 43 
Code or the North Carolina State Building Code, including the design-wind 44 
requirements therein, shall not be an insurable risk. The owner or applicant 45 
shall furnish with the application proof in the form of a certificate from a local 46 
building inspector, contractor, engineer or architect that the structure is built 47 
in substantial accordance with the Federal Manufactured Home Construction 48 
and Safety Standards, any predecessor or successor federal or State 49 
construction or safety standards, and any further construction or safety 50 
standards promulgated by the association and approved by the Commissioner, 51  General Assembly Of North Carolina 	Session 2025 
Page 6  House Bill 661-Second Edition 
or the North Carolina Uniform Residential Building Code or the North 1 
Carolina State Building Code; however, an individual certificate shall not be 2 
necessary where the structure is located within a political subdivision which 3 
has certified to the Association on an annual basis that it is enforcing the North 4 
Carolina Uniform Residential Building Code or the North Carolina State 5 
Building Code and has no plans to discontinue enforcing these codes during 6 
that year." 7 
SECTION 2.2.(c) G.S. 87-10(b1) reads as rewritten: 8 
"(b1) Public utilities contractors constructing house and building sewer lines as provided in 9 
sub-subdivision a. of subdivision (3) of subsection (b) of this section shall, at the junction of the 10 
public sewer line and the house or building sewer line, install as an extension of the public sewer 11 
line a cleanout at or near the property line that terminates at or above the finished grade. Public 12 
utilities contractors constructing water service lines as provided in sub-subdivision a. of 13 
subdivision (3) of subsection (b) of this section shall terminate the water service lines at a valve, 14 
box, or meter at which the facilities from the building may be connected. Public utilities 15 
contractors constructing fire service mains for connection to fire sprinkler systems shall terminate 16 
those lines at a flange, cap, plug, or valve inside the building one foot above the finished floor. 17 
All fire service mains shall comply with the NFPA standards for fire service mains as 18 
incorporated into and made applicable by Volume V of the North Carolina State Building Code." 19 
SECTION 2.2.(d) G.S. 87-14(a1) reads as rewritten: 20 
"(a1) Any person, firm, or corporation, upon making application to the building inspector 21 
or other authority of any incorporated city, town, or county in North Carolina charged with the 22 
duty of issuing building permits pursuant to G.S. 160D-1110 for any improvements for which 23 
the combined cost is to be forty thousand dollars ($40,000) or more, other than for improvements 24 
to an existing single-family residential dwelling unit as defined in G.S. 87-15.5(7) that the owner 25 
occupies as a residence, or for the addition of an accessory building or accessory structure as 26 
defined in the North Carolina Uniform Residential Building Code, the use of which is incidental 27 
to that residential dwelling unit, shall be required to provide to the building inspector or other 28 
authority the name, physical and mailing address, telephone number, facsimile number, and 29 
email address of the lien agent designated by the owner pursuant to G.S. 44A-11.1(a)." 30 
SECTION 2.2.(e) G.S. 87-21(c1) reads as rewritten: 31 
"(c1) Exemption. – The provisions of this Article shall not apply to a person who performs 32 
the on-site assembly of a factory designed drain line system for a manufactured home, as defined 33 
in G.S. 143-143.9(6), if the person (i) is a licensed manufactured home retailer, a licensed 34 
manufactured home set-up contractor, or a full-time employee of either, (ii) obtains an inspection 35 
by the local inspections department and (iii) performs the assembly according to the State North 36 
Carolina Plumbing Code." 37 
SECTION 2.2.(f) G.S. 143-150 reads as rewritten: 38 
"§ 143-150.  No electricity to be furnished units not in compliance. 39 
It is unlawful for any person to furnish electricity for use in any manufactured home without 40 
first ascertaining that the manufactured home and its electrical supply has been inspected 41 
pursuant to G.S. 143-139 by the inspection authority having jurisdiction and found to comply 42 
with the requirements of the State North Carolina Electrical Code. The certificate of compliance 43 
issued by the inspection jurisdiction shall be accepted as evidence of compliance." 44 
SECTION 2.2.(g) G.S. 160D-702(c) reads as rewritten: 45 
"(c) A zoning or other development regulation shall not do any of the following: 46 
(1) Set a minimum square footage of any structures subject to regulation under 47 
the North Carolina Residential Code. 48 
(2) Require a parking space to be larger than 9 feet wide by 20 feet long unless 49 
the parking space is designated for handicap, parallel, or diagonal parking. 50  General Assembly Of North Carolina 	Session 2025 
House Bill 661-Second Edition 	Page 7 
(3) Require additional fire apparatus access roads into developments of one- or 1 
two-family dwellings that are not in compliance with the required number of 2 
fire apparatus access roads into developments of one- or two-family dwellings 3 
set forth in the Fire Code of the North Carolina Residential Code for One- and 4 
Two-Family Dwellings.North Carolina Fire Code." 5 
SECTION 2.2.(h) G.S. 160D-1117 reads as rewritten: 6 
"§ 160D-1117.  Periodic inspections. 7 
The inspection department may make periodic inspections, subject to the governing board's 8 
directions, for unsafe, unsanitary, or otherwise hazardous and unlawful conditions in buildings 9 
or structures within its planning and development regulation jurisdiction. In exercising this 10 
power, members of the department shall have a right to enter on any premises within the 11 
jurisdiction of the department at all reasonable hours for the purposes of inspection or other 12 
enforcement action, upon presentation of proper credentials. Inspections of dwellings shall 13 
follow the provisions of G.S. 160D-1207. Nothing in this section shall be construed to prohibit 14 
periodic inspections in accordance with State fire prevention code the North Carolina Fire Code 15 
or as otherwise required by State law." 16 
SECTION 2.2.(i) G.S. 160D-1207(a) reads as rewritten: 17 
"(a) Except as provided in subsection (b) of this section, the inspection department may 18 
make periodic inspections only when there is reasonable cause to believe that unsafe, unsanitary, 19 
or otherwise hazardous or unlawful conditions may exist in a residential building or structure. 20 
However, when the inspection department determines that a safety hazard exists in one of the 21 
dwelling units within a multifamily building, which in the opinion of the inspector poses an 22 
immediate threat to the occupant, the inspection department may inspect, in the absence of a 23 
specific complaint and actual knowledge of the unsafe condition, additional dwelling units in the 24 
multifamily building to determine if that same safety hazard exists. For purposes of this section, 25 
the term "reasonable cause" means any of the following: (i) the landlord or owner has a history 26 
of more than two verified violations of the housing ordinances or codes within a 12-month period, 27 
(ii) there has been a complaint that substandard conditions exist within the building or there has 28 
been a request that the building be inspected, (iii) the inspection department has actual knowledge 29 
of an unsafe condition within the building, or (iv) violations of the local ordinances or codes are 30 
visible from the outside of the property. In conducting inspections authorized under this section, 31 
the inspection department shall not discriminate between single-family and multifamily buildings 32 
or between owner-occupied and tenant-occupied buildings. In exercising this power, members 33 
of the department shall have a right to enter on any premises within the jurisdiction of the 34 
department at all reasonable hours for the purposes of inspection or other enforcement action, 35 
upon presentation of proper credentials. Nothing in this section shall be construed to prohibit 36 
periodic inspections in accordance with State fire prevention code the North Carolina Fire Code 37 
or as otherwise required by State law." 38 
SECTION 2.2.(j) G.S. 162A-900(c) reads as rewritten: 39 
"(c) A local government unit, as defined in G.S. 162A-201, shall not implement a scoring 40 
or preference system to allocate water or sewer service among applicants for water or sewer 41 
service for residential development that does any of the following: 42 
(1) Includes consideration of building design elements, as defined in 43 
G.S. 160D-702(b). 44 
(2) Sets a minimum square footage of any structures subject to regulation under 45 
the North Carolina Residential Code. 46 
(3) Requires a parking space to be larger than 9 feet wide by 20 feet long unless 47 
the parking space is designated for handicap, parallel, or diagonal parking. 48 
(4) Requires additional fire apparatus access roads into developments of one- or 49 
two-family dwellings that are not in compliance with the required number of 50 
fire apparatus access roads into developments of one- or two-family dwellings 51  General Assembly Of North Carolina 	Session 2025 
Page 8  House Bill 661-Second Edition 
set forth in the Fire Code of the North Carolina Residential Code.North 1 
Carolina Fire Code." 2 
 3 
PART III. VARIOUS CONTRACTOR BOARDS 4 
 5 
INCREASE CERTAIN PLUM BING AND HEATING CONTRACTOR BOARD 6 
EXAMINATION AND LICENSE FEES 7 
SECTION 3.1.(a) G.S. 87-22 reads as rewritten: 8 
"§ 87-22.  License fee; expiration and renewal; reinstatement. 9 
All persons, firms, or corporations engaged in the business of either plumbing or heating 10 
contracting, or both, shall pay an annual license fee not to exceed one hundred fifty dollars 11 
($150.00). three hundred dollars ($300.00). The annual fee for a piping or restricted classification 12 
license shall not exceed that for a plumbing or heating license. All persons, firms, or corporations 13 
engaged in the business of fire sprinkler contracting shall pay an initial application fee not to 14 
exceed seventy-five dollars ($75.00) and an annual license fee not to exceed three hundred dollars 15 
($300.00). In the event the Board refuses to license an applicant, the license fee deposited shall 16 
be returned by the Board to the applicant. All licenses shall expire on the last day of December 17 
in each year following their issuance or renewal. Persons who obtain a license by passing an 18 
examination on or after October 1 of any year may receive a license for the remainder of the year 19 
by paying one-half of the usual license fee for that classification of license. It shall be the duty 20 
of the secretary and treasurer to send by United States mail or e-mail to every licensee registered 21 
with the Board, notice to the licensee's last known address reflected on the records of the Board 22 
of the amount of fee required for renewal of license, the notice to be mailed at least one month 23 
in advance of the expiration of the license. The Board may require payment of all unpaid annual 24 
fees before reissuing a license. In the event of failure on the part of any person, firm or 25 
corporation to renew the license certificate annually and pay the required fee during the month 26 
of January in each year, the Board shall increase the license fee by twenty-five dollars ($25.00) 27 
an amount not to exceed fifty dollars ($50.00) to cover any additional expense associated with 28 
late renewal. The Board shall require reexamination upon failure of a licensee to renew license 29 
within three years after expiration. The Board may adopt regulations requiring attendance at 30 
programs of continuing education as a condition of license renewal. A licensee employed full 31 
time as a local government plumbing, heating, or mechanical inspector and holding qualifications 32 
from the Code Officials Qualifications Board may renew the license at a fee not to exceed 33 
twenty-five dollars ($25.00)." 34 
SECTION 3.1.(b) G.S. 87-22.1 reads as rewritten: 35 
"§ 87-22.1. Examination fees; funds disbursed upon warrant of chairman and 36 
secretary-treasurer. 37 
The Board shall charge a nonrefundable application and examination fee not to exceed one 38 
hundred fifty dollars ($150.00) two hundred dollars ($200.00) for each examination or any part 39 
of an examination, and the funds collected shall be disbursed upon warrant of the chairman and 40 
secretary-treasurer, to partially defray general expenses of the Board. The application and 41 
examination fee shall be retained by the Board whether or not the applicant is granted a license. 42 
Until changed by the Board pursuant to rules adopted by the Board, the fee for each examination 43 
or any part taken on a particular day shall be one hundred dollars ($100.00)." 44 
SECTION 3.1.(c) This section becomes effective July 1, 2025, and applies to 45 
applications for examination and licensure received by the Board on or after that date. 46 
 47 
LIMITED EXEMPTION FOR PLUMBING AND HEATING CONTRACTOR BOARD 48 
INVESTIGATIVE RECORDS FROM PUBLIC RECORDS 49 
SECTION 3.2. Article 2 of Chapter 87 of the General Statutes is amended by adding 50 
a new section to read: 51  General Assembly Of North Carolina 	Session 2025 
House Bill 661-Second Edition 	Page 9 
"§ 87-22.3.  Investigation records of the Board. 1 
All records, papers, investigative files, investigative notes, reports, other investigative 2 
information, and other documents containing information in the possession of or received, 3 
gathered, or completed by the Board, its members, staff, employees, attorneys, or consultants as 4 
a result of investigations, inquiries, assessments, or interviews conducted in connection with a 5 
license application or disciplinary action initiated by the Board, shall not be considered public 6 
records within the meaning of Chapter 132 of the General Statutes. Documents described in this 7 
section are privileged, confidential, and not subject to discovery, subpoena, or other means of 8 
legal compulsion for release to any person other than the Board or its employees or consultants. 9 
If any record, paper, or other document containing information collected and compiled by or on 10 
behalf of the Board is received and admitted in evidence in any hearing before the Board, the 11 
documents shall be a public record within the meaning of Chapter 132 of the General Statutes." 12 
 13 
INCREASE CERTAIN ELECTRICAL CONTRACTOR BOARD EXAMINATION AND 14 
LICENSE FEES 15 
SECTION 3.3.(a) G.S. 87-44 reads as rewritten: 16 
"§ 87-44.  Fees; license term. 17 
The Board shall collect a fee from each applicant before granting or renewing a license under 18 
the provisions of this Article; the annual license fee for the limited classification shall not exceed 19 
one hundred dollars ($100.00) one hundred fifty dollars ($150.00) for each principal and each 20 
branch place of business; the annual license fee for the intermediate classification shall not 21 
exceed one hundred fifty dollars ($150.00) two hundred dollars ($200.00) for each principal and 22 
each branch place of business; the annual license fee for the unlimited classification shall not 23 
exceed two hundred dollars ($200.00) two hundred fifty dollars ($250.00) for each principal and 24 
each branch place of business; and the annual license fee for the special restricted classifications 25 
and for the single-family detached residential dwelling license shall not exceed one hundred 26 
dollars ($100.00) one hundred fifty dollars ($150.00) for each principal and each branch place of 27 
business. 28 
The Board shall establish a system for the renewal of licenses with varying expiration dates. 29 
However, all licenses issued by the Board shall expire one year after the date of issuance. 30 
Licenses shall be renewed by the Board, subject to G.S. 87-44.1 and G.S. 87-47, after receipt and 31 
evaluation of a renewal application from a licensee and the payment of the required fee. The 32 
application shall be upon a form provided by the Board and shall require such information as the 33 
Board may prescribe. Renewal applications and fees shall be due 30 days prior to the license 34 
expiration date. 35 
Upon failure to renew by the expiration date established by the Board, the license shall be 36 
automatically revoked. This license may be reinstated by the Board, subject to G.S. 87-44.1 and 37 
G.S. 87-47, upon payment of the license fee, an administrative fee of twenty-five dollars 38 
($25.00), and all fees for the lapsed period during which the person, partnership, firm or 39 
corporation engaged in electrical contracting, and, further, upon the satisfaction of such 40 
experience requirements during the lapse as the Board may prescribe by rule. 41 
The Board may collect fees from applicants for examinations in an amount not to exceed one 42 
hundred twenty-five dollars ($125.00), two hundred dollars ($200.00), except the fee for a 43 
specially arranged examination shall not exceed two hundred dollars ($200.00). In addition, the 44 
Board may collect an examination review fee, not to exceed twenty-five dollars ($25.00), from 45 
failed examinees who apply for a supervised review of their failed examinations." 46 
SECTION 3.3.(b) This section becomes effective July 1, 2025, and applies to 47 
applications for examination and licensure received by the Board on or after that date. 48 
 49 
LIMITED EXEMPTION FOR ELECTRICAL CONTRACTOR BOARD 50 
INVESTIGATIVE RECORDS FROM PUBLIC RECORDS 51  General Assembly Of North Carolina 	Session 2025 
Page 10  House Bill 661-Second Edition 
SECTION 3.4. Article 4 of Chapter 87 of the General Statutes is amended by adding 1 
a new section to read: 2 
"§ 87-47.1.  Investigation records of the Board. 3 
All records, papers, investigative files, investigative notes, reports, other investigative 4 
information, and other documents containing information in the possession of or received, 5 
gathered, or completed by the Board, its members, staff, employees, attorneys, or consultants as 6 
a result of investigations, inquiries, assessments, or interviews conducted in connection with a 7 
license application or disciplinary action initiated by the Board shall not be considered public 8 
records within the meaning of Chapter 132 of the General Statutes. Documents described in this 9 
section are privileged, confidential, and not subject to discovery, subpoena, or other means of 10 
legal compulsion for release to any person other than the Board or its employees or consultants. 11 
If any record, paper, or other document containing information collected and compiled by or on 12 
behalf of the Board is received and admitted in evidence in any hearing before the Board, the 13 
documents shall be a public record within the meaning of Chapter 132 of the General Statutes." 14 
 15 
EXEMPT CERTAIN CONSTRUCTION TRADES FROM GENERAL CONTRACTOR 16 
LICENSURE REQUIREMENTS AND RELATED BUILDING PERMIT EXEMPTIONS 17 
SECTION 3.5.(a) G.S. 87-1 reads as rewritten: 18 
"§ 87-1.  "General contractor" defined; exceptions. 19 
(a) For the purpose of this Article any person or firm or corporation who for a fixed price, 20 
commission, fee, or wage, undertakes to bid upon or to construct or who undertakes to 21 
superintend or manage, on his the person's own behalf or for any person, firm, or corporation that 22 
is not licensed as a general contractor pursuant to this Article, the construction of any building, 23 
highway, public utilities, grading or any improvement or structure where the cost of the 24 
undertaking is forty thousand dollars ($40,000) or more, or undertakes to erect a North Carolina 25 
labeled manufactured modular building meeting the North Carolina State Building Code, shall 26 
be deemed to be a "general contractor" engaged in the business of general contracting in the State 27 
of North Carolina. 28 
(b) This section shall not apply to the following: 29 
(1) Persons, firms, or corporations furnishing or erecting industrial equipment, 30 
power plan equipment, radial brick chimneys, and monuments. 31 
(2) Any person, firm, or corporation who constructs or alters a building on land 32 
owned by that person, firm, or corporation provided (i) the building is 33 
intended solely for occupancy by that person and his family, firm, or 34 
corporation after completion; and (ii) the person, firm, or corporation 35 
complies with G.S. 87-14. If the building is not occupied solely by the person 36 
and his that person's family, firm, or corporation for at least 12 months 37 
following completion, it shall be presumed that the person, firm, or 38 
corporation did not intend the building solely for occupancy by that person 39 
and his that person's family, firm, or corporation. 40 
(3) Any person engaged in the business of farming who constructs or alters a 41 
building on land owned by that person and used in the business of farming, 42 
when the building is intended for use by that person after completion. 43 
(4) Any person engaged in the business of providing the following installation, 44 
maintenance, or replacement services related to the construction or 45 
improvement of a building or structure: 46 
a. Floor covering services. 47 
b. Painting services." 48 
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 
House Bill 661-Second Edition 	Page 11 
"(c1) A building permit is not required for installation, maintenance, or replacement 1 
services described in G.S. 87-1(b)(4) in the construction or improvement of a building or 2 
structure subject to the North Carolina Residential Code." 3 
SECTION 3.5.(c) G.S. 143-138 is amended by adding a new subsection to read: 4 
"(b25) Permit Exclusion for Certain Services. – No permit shall be required under the Code 5 
for installation, maintenance, or replacement services described in G.S. 87-1(b)(4) in the 6 
construction or improvement of a building or structure subject to the North Carolina Residential 7 
Code." 8 
SECTION 3.5.(d) This section becomes effective July 1, 2025. 9 
 10 
REMOVE BOARD FOR GENERAL CONTRACTORS REQUIREMENT TO CREDIT 11 
THE NORTH CAROLINA ENGINEERING FOUNDATION 12 
SECTION 3.6.(a) G.S. 87-7 reads as rewritten: 13 
"§ 87-7.  Records of Board; disposition of funds. 14 
The secretary-treasurer shall keep a record of the proceedings of the said Board and shall 15 
receive and account for all moneys derived from the operation of this Article. Any funds 16 
remaining in the hands of the secretary-treasurer to the credit of the Board after the expenses of 17 
the Board for the current year have been paid shall be paid over to the Greater University of 18 
North Carolina for the use of the School of Engineering through the North Carolina Engineering 19 
Foundation. The Board has the right, however, to retain at least ten percent (10%) of the total 20 
expense it incurs for a year's operation to meet any emergency that may arise. As an expense of 21 
the Board, said the Board is authorized to expend such funds as it deems necessary to provide 22 
retirement and disability compensation for its employees." 23 
SECTION 3.6.(b) This section becomes effective July 1, 2025. 24 
 25 
AMEND NORTH CAROLINA LICENSING BOARD FOR GENERAL CONTRACTORS 26 
DISCIPLINARY ACTION AUTHORITY 27 
SECTION 3.7.(a) G.S. 87-11 reads as rewritten: 28 
"§ 87-11.  Revocation of license; charges of fraud, negligence, incompetency, etc.; 29 
Disciplinary action; hearing thereon; reissuance of certificate.procedures. 30 
(a) The Board shall have the power to refuse to issue or renew or renew, revoke, suspend, 31 
or restrict a certificate of license or to issue a reprimand or take other disciplinary action if a 32 
general contractor licensed under this Article is found guilty of any licensee, qualifier, or 33 
applicant: 34 
(1) Employs the use of fraud or deceit misrepresentation in obtaining or 35 
attempting to obtain or renew a license, or license. 36 
(2) Commits an act of gross negligence, incompetency, or misconduct in the 37 
practice of his or her profession, or willful violation of general contracting. 38 
(3) Willfully violates any provision of this Article.Article, or any rules adopted 39 
by the Board. 40 
(4) Willfully violates any order of the Board. 41 
(a1) The Board shall also have the power to revoke, suspend, or otherwise restrict the 42 
ability of any person to act as a qualifying party for a license to practice general contracting, as 43 
provided in G.S. 87-10(c), for any copartnership, corporation or any other organization or 44 
combination, if that person committed any act in violation of the provisions of this section and 45 
the Board may also take disciplinary action against the individual license held by that person. 46 
(a1)(a2) Any person may prefer charges of fraud, deceit, negligence, or misconduct person, 47 
including the Board on its own initiative, may submit a complaint against any general contractor 48 
licensed licensee, qualifier, or applicant under this Article. The charges All complaints shall be 49 
in writing and sworn affirmed to by the complainant and submitted to the Board. The Board shall 50 
not accept complaints from an anonymous complainant. The Board is authorized to investigate 51  General Assembly Of North Carolina 	Session 2025 
Page 12  House Bill 661-Second Edition 
complaints alleging violations of this Article or any rule promulgated by the Board. The charges, 1 
complaint, unless dismissed without hearing by the Board as unfounded or trivial, Board, shall 2 
be heard and determined by the Board in accordance with the provisions of Chapter 150B of the 3 
General Statutes. 4 
(b) The Board shall adopt and publish guidelines, rules consistent with the provisions of 5 
this Article, governing the suspension and revocation of licenses.Article. 6 
(c) The Board shall establish and maintain a system whereby detailed records are kept 7 
regarding complaints against each licensee. This record shall include, for each licensee, the date 8 
and nature of each complaint, investigatory action taken by the Board, any findings by the Board, 9 
and the disposition of the matter. 10 
(d) The Board may reissue a license to any person, firm or corporation whose license has 11 
been revoked: Provided, five or more members of the Board vote in favor of such reissuance for 12 
reasons the Board may deem sufficient. 13 
The Board shall immediately notify the Secretary of State of its findings in the case of the 14 
revocation of a license or of the reissuance of a revoked license. 15 
A certificate of license to replace any certificate lost, destroyed or mutilated may be issued 16 
subject to the rules and regulations of the Board. 17 
(e) The Board shall be entitled to recover its reasonable administrative costs associated 18 
with the investigation and prosecution of a complaint alleging a violation of this Article or rules 19 
or regulations of the Board up to a maximum of five thousand dollars ($5,000) per violation for 20 
any licensee or qualifying party licensee, qualifier, or applicant found to have committed any of 21 
the following:violations enumerated in subdivisions (1) through (4) of subsection (a) of this 22 
section. 23 
(1) Fraud or deceit in obtaining a license. 24 
(2) Gross negligence, incompetency, or misconduct in the practice of general 25 
contracting. 26 
(3) Willful violation of any provision of this Article." 27 
SECTION 3.7.(b) G.S. 87-15.3 reads as rewritten: 28 
"§ 87-15.3.  Identity of complaining party confidential. 29 
Once a complaint has been filed with the Board against a licensee licensee, qualifier, or 30 
applicant or an unlicensed general contractor, the Board may, in its discretion, keep the identity 31 
of a complaining party confidential and not a public record within the meaning of Chapter 132 32 
of the General Statutes until a time no later than the receipt of the complaint by the full Board 33 
for a disciplinary hearing or injunctive action." 34 
SECTION 3.7.(c) This section is effective when it becomes law and applies to 35 
actions filed or commenced on or after that date. 36 
 37 
PROHIBIT GENERAL CONTRACTOR REEXAMINATION WHILE COURT 38 
AWARDS REMAIN UNPAID 39 
SECTION 3.8.(a) G.S. 87-13.1 reads as rewritten: 40 
"§ 87-13.1.  Board may seek injunctive relief; attorney's fee. 41 
(a) Whenever the Board determines that any person, firm or corporation has violated or 42 
is violating any of the provisions of this Article or rules and regulations of the Board promulgated 43 
under this Article, the Board may apply to the superior court for a restraining order and injunction 44 
to restrain the violation; and the superior courts have jurisdiction to grant the requested relief, 45 
irrespective of whether or not criminal prosecution has been instituted or administrative sanctions 46 
imposed by reason of the violation. 47 
(b) When the Board prevails in actions brought under this section, the court shall award 48 
the Board its reasonable attorney's fee not to exceed five thousand dollars ($5,000) fees plus the 49 
costs associated with obtaining the relief and the investigation and prosecution of the violation. 50  General Assembly Of North Carolina 	Session 2025 
House Bill 661-Second Edition 	Page 13 
(c) Examination applicants who have failed to pay a court award pursuant to subsection 1 
(b) of this section shall not be allowed to take any examination offered by the Board until the 2 
award has been satisfied." 3 
SECTION 3.8.(b) This section is effective when it becomes law and applies to 4 
actions filed or commenced on or after that date. 5 
 6 
MODERNIZE GENERAL CONTRACTOR LAWS 7 
SECTION 3.9. Article 1 of Chapter 87 of the General Statutes reads as rewritten: 8 
"Chapter 87. 9 
"Contractors. 10 
"Article 1. 11 
"General Contractors. 12 
… 13 
"§ 87-2.  Licensing Board; organization. 14 
There is created the State Licensing Board for General Contractors consisting of nine 15 
members appointed by the Governor for staggered five-year terms. Five of the members shall be 16 
general contractors, one member shall be a registered engineer who practices structural 17 
engineering, and three shall be public members. Of the general contractor members, one shall 18 
have as the larger part of his the contractor's business the construction of highways; one shall 19 
have as the larger part of his the contractor's business the construction of public utilities; one 20 
shall have as the larger part of his the contractor's business the construction of buildings; and two 21 
shall have as a larger part of their the contractor's businesses the construction of residences, one 22 
of whom shall be the holder of an unlimited general contractor's license. The public members 23 
shall have no ties with the construction industry and shall represent the interests of the public at 24 
large. Members shall serve until the expiration of their respective terms and until their successors 25 
are appointed and qualified. Vacancies occurring during a term shall be filled by appointment of 26 
the Governor for the remainder of the unexpired term. The Governor may remove any member 27 
of the Board for misconduct, incompetency, or neglect of duty. No Board member shall serve 28 
more than two complete consecutive terms. 29 
"§ 87-3.  Members of Board to take oath. 30 
Each member of the Board shall, before entering upon the discharge of the duties of his the 31 
member's office, take and file with the Secretary of State an oath in writing to properly perform 32 
the duties of his the member's office as a member of said the Board and to uphold the Constitution 33 
of North Carolina and the Constitution of the United States. 34 
"§ 87-4.  First meeting of Board; officers; secretary-treasurer and assistants. 35 
The said Board shall, within 30 days after its appointment by the Governor, meet in the City 36 
of Raleigh, at a time and place to be designated by the Governor, and organize by electing a 37 
chairman, a vice-chairman, chair, a vice-chair, and a secretary-treasurer, each to serve for one 38 
year. Said The Board shall have power to make such bylaws, rules and regulations as it shall 39 
deem best, provided the same are not in conflict with the laws of North Carolina. The 40 
secretary-treasurer shall give bond in such sum as the Board shall determine, with such security 41 
as shall be approved by the Board, said bond to be conditioned for the faithful performance of 42 
the duties of his the secretary-treasurer's office and for the faithful accounting of all moneys and 43 
other property as shall come into his hands. property of the Board. The secretary-treasurer need 44 
not be a member of the Board, and the Board. The Board is hereby authorized to employ a 45 
full-time secretary-treasurer, secretary-treasurer and such other assistants and make such other 46 
expenditures as may be necessary to the proper carrying out of the provisions of this Article. 47 
Payment of compensation and reimbursement of expenses of board members shall be governed 48 
by G.S. 93B-5. 49 
… 50 
"§ 87-8.  Records; roster of licensed contractors; report to Governor. 51  General Assembly Of North Carolina 	Session 2025 
Page 14  House Bill 661-Second Edition 
The secretary-treasurer shall keep a record of the proceedings of the Board and a register of 1 
all applicants for license showing for each the date of application, name, qualifications, place of 2 
business, place of residence, and whether license was granted or refused. The books and register 3 
of this the Board shall be prima facie evidence of all matters recorded therein. A roster showing 4 
the names and places of business and of residence of all licensed general contractors shall be 5 
prepared by the secretary of the Board during the month of March of each year; the roster shall 6 
be printed by the Board out of funds of the Board as provided in G.S. 87-7, with copies being 7 
made available to contractors and members of the public, at cost, upon request, or furnished 8 
without cost, as directed by the Board. On or before the last day of March of each year the Board 9 
shall submit to the Governor a report of its transactions for the preceding year, and shall file with 10 
the Secretary of State a copy of the report, together with a complete statement of the receipts and 11 
expenditures of the Board, attested by the affidavits of the chairman and the secretary, and a copy 12 
of the roster of licensed general contractors. 13 
"§ 87-9.  Compliance with Federal Highway Act, etc.; contracts financed by federal road 14 
funds; contracts concerning water or waste water systems. 15 
Nothing in this Article shall operate to prevent the Department of Transportation from 16 
complying with any act of Congress and any rules and regulations promulgated pursuant thereto 17 
for carrying out the provisions of the Federal Highway Act, or shall apply to any person, firm or 18 
corporation proposing to submit a bid or enter into contract for any work to be financed in whole 19 
or in part with federal aid road funds in such a manner as that will conflict with any act of 20 
Congress or any such rules and regulations promulgated pursuant thereto. 21 
Neither shall anything in this Article prevent the State of North Carolina or any of its political 22 
subdivisions or their contractors from complying with any act of Congress and any rules and 23 
regulations promulgated pursuant thereto for carrying out the provisions of any federal program 24 
to assist in the planning, financing, or construction of drinking water or waste water processing, 25 
collection, and disposal systems and facilities. 26 
… 27 
"§ 87-10.  Application for license; examination; certificate; renewal. 28 
… 29 
(c) If an applicant is an individual, examination may be taken by his the applicant's 30 
personal appearance for examination, or by the appearance for examination of one or more of his 31 
the applicant's responsible managing employees. If an applicant is a copartnership, a corporation, 32 
or any other combination or organization, the examination may be taken by one or more of the 33 
responsible managing officers or members of the personnel of the applicant. 34 
… 35 
"§ 87-10.1.  Licensing of nonresidents. 36 
… 37 
(d) Delinquents. – If the Secretary of Revenue determines that any nonresident individual 38 
or foreign corporation licensed by the board, Board, a member of any foreign limited liability 39 
company licensed by the Board, or a partner in any foreign partnership licensed by the Board, 40 
owes a delinquent income tax debt, the Secretary of Revenue may notify the Board of these 41 
nonresident individuals and foreign entities and instruct the Board not to renew their certificates 42 
of license. The Board shall not renew the certificate of license of such a nonresident individual 43 
or foreign entity identified by the Secretary of Revenue unless the Board receives a written 44 
statement from the Secretary that the debt either has been paid or is being paid pursuant to an 45 
installment agreement. 46 
"§ 87-10.2.  Continuing education. 47 
… 48 
(g) Continuing education requirements shall begin on January 1 of any calendar year and 49 
shall be completed by November 30 of that calendar year. The Board shall establish a 90-day 50 
grace period following November 30 of each calendar year for any qualifier or qualifying party 51  General Assembly Of North Carolina 	Session 2025 
House Bill 661-Second Edition 	Page 15 
who has failed to complete the continuing education requirement. Failure of the qualifier or 1 
qualifying party of the entity holding a building contractor, residential contractor, or unclassified 2 
contractor license classification to satisfy the annual continuing education requirement by the 3 
expiration of the grace period shall result in the license of the entity being invalidated until such 4 
the time that continuing education and all other licensing requirements have been met. 5 
… 6 
"§ 87-12.  Certificate evidence of license. 7 
The issuance of a certificate of license or limited license by this Board shall be evidence that 8 
the person, firm, or corporation named therein is entitled to all the rights and privileges of a 9 
licensed or limited licensed general contractor while said license remains unrevoked or 10 
unexpired. A licensed general contractor holding a license which qualifies him the contractor for 11 
work as described in G.S. 87-10 shall be authorized to perform the said work without any 12 
additional occupational license, notwithstanding the provisions of any other occupational 13 
licensing statute. A license issued by any other occupational licensing board having jurisdiction 14 
over any work described in G.S. 87-10 shall qualify such the licensee to perform the work for 15 
which the license qualifies him without obtaining the license from the General Contractors 16 
Licensing Board. Nothing contained herein shall operate to relieve any general contractor from 17 
the necessity of compliance with other provisions of the law requiring building permits and 18 
construction in accordance with appropriate provisions of the North Carolina State Building 19 
Code. 20 
"§ 87-13.  Unauthorized practice of contracting; impersonating contractor; false certificate; 21 
giving false evidence to Board; penalties. 22 
Any person, firm, or corporation not being duly authorized who shall contract for or bid upon 23 
the construction of any of the projects or works enumerated in G.S. 87-1, without having first 24 
complied with the provisions hereof, or who shall attempt to practice general contracting in the 25 
State, except as provided for in this Article, and any person, firm, or corporation presenting or 26 
attempting to file as his their own the licensed certificate of another or who shall give false or 27 
forged evidence of any kind to the Board or to any member thereof in maintaining a certificate 28 
of license or who falsely shall impersonate another or who shall use an expired or revoked 29 
certificate of license, or who falsely claims or suggests in connection with any business activities 30 
regulated by the Board that a person, firm, or corporation is licensed under this Chapter, and any 31 
architect or engineer who recommends to any project owner the award of a contract to anyone 32 
not properly licensed under this Article, shall be deemed guilty of a Class 2 misdemeanor. And 33 
the Board may, in its discretion, use its funds to defray the expense, legal or otherwise, in the 34 
prosecution of any violations of this Article. No architect or engineer shall be guilty of a violation 35 
of this section if his recommendation either of their recommendations to award a contract is made 36 
in reliance upon current written information received by him the architect or engineer from the 37 
appropriate Contractor Licensing Board of this the State which information erroneously indicates 38 
that the contractor being recommended for contract award is properly licensed. 39 
… 40 
"§ 87-15.  Copy of Article included in specifications; bid not considered unless contractor 41 
licensed. 42 
All architects and engineers preparing plans and specifications for work to be contracted in 43 
the State of North Carolina shall include in their invitations to bidders and in their specifications 44 
a copy of this Article or such portions thereof as are deemed necessary to convey to the invited 45 
bidder, whether he the bidder be a resident or nonresident of this State and whether a license has 46 
been issued to him the bidder or not, the information that it will be necessary for him the bidder 47 
to show evidence of a license before his the bidder's bid is considered. 48 
"§ 87-15.1.  Reciprocity of licensing. 49 
To the extent that other states which provide for the licensing of general contractors provide 50 
for similar action, the Board in its discretion may grant licenses of the same or equivalent 51  General Assembly Of North Carolina 	Session 2025 
Page 16  House Bill 661-Second Edition 
classification to general contractors licensed by other states, without written examination upon 1 
satisfactory proof furnished to the Board that the qualifications of such applicants are equal to 2 
the qualifications of holders of similar licenses in North Carolina and upon payment of the 3 
required fee. 4 
…." 5 
 6 
PART IV. AUTHORIZE C ODE ENFORCEMENT QUAL IFICATION BOARD TO 7 
CERTIFY RESIDENTIAL CHANGEOUT SPECIAL IN SPECTORS AND CREATE A 8 
RESIDENTIAL CHANGEOU T ALTERNATE INSPECTION MET HOD 9 
SECTION 4.1.(a) Article 9C of Chapter 143 of the General Statutes, as amended by 10 
S.L. 2024-49 and S.L. 2024-53, reads as rewritten: 11 
"Article 9C. 12 
"North Carolina Code Officials Enforcement Qualification Board. 13 
"§ 143-151.8.  Definitions. 14 
(a) The following definitions apply in this Article: 15 
(1) Board. – The North Carolina Code Officials Enforcement Qualification 16 
Board. 17 
(2) Code. – Consists of all of the following: 18 
a. The North Carolina State Building Code adopted by the Building Code 19 
Council and Residential Code Council under G.S. 143-138. 20 
b. Local building rules approved by the Building Code Council and 21 
Residential Code Council. 22 
c. Any resolution adopted by a federally recognized Indian Tribe in 23 
which the Tribe adopts the North Carolina State Building Code and 24 
related local building rules. 25 
d. The standards adopted by the State Fire Marshal under 26 
G.S. 143-143.15(a). 27 
(3) Code enforcement. – The examination and approval of plans and 28 
specifications, the inspection of the manner of construction, workmanship, 29 
and materials for construction of buildings and structures and their 30 
components, or the enforcement of fire code regulations by any of the 31 
following, to assure compliance with the North Carolina State Building Code 32 
and related local building rules:Code: 33 
a. An employee of the State or local government, except an employee of 34 
the State Department of Labor engaged in the administration and 35 
enforcement of sections of the Code that pertain to boilers and 36 
elevators. 37 
b. An employee of a federally recognized Indian Tribe employed to 38 
perform inspections on tribal lands. 39 
c. An individual contracting with the State, a local government, or a 40 
federally recognized Indian Tribe to perform inspections on tribal 41 
lands. 42 
d. An individual who is employed by a company contracting with a 43 
county or a city to conduct inspections. 44 
e. A person who is contracting with a local government to perform 45 
third-party plan review under G.S. 160D-1110.1(d). 46 
f. A person who is contracting with a permit applicant to perform 47 
third-party plan review under G.S. 160D-1110.1(e). 48 
g. A person who is conducting residential changeout special inspections 49 
under G.S. 160D-1106.1. 50  General Assembly Of North Carolina 	Session 2025 
House Bill 661-Second Edition 	Page 17 
(4) Local inspection department. – The agency or agencies of local government, 1 
or any government agency of a federally recognized Indian Tribe, with 2 
authority to make inspections of buildings and to enforce the Code and other 3 
laws, ordinances, and rules enacted by the State, a local government, or a 4 
federally recognized Indian Tribe. 5 
(5) Qualified Code-enforcement official. – A person qualified certified under this 6 
Article to engage in the practice of Code enforcement.enforcement who is also 7 
employed by a local inspection department. 8 
(b) For purposes of this Article, the population of a city or county is determined according 9 
to the most current federal census, unless otherwise specified. 10 
(c) For purposes of this Article, "willful misconduct, gross negligence, or gross 11 
incompetence" in addition to the meaning of those terms under other provisions of the General 12 
Statutes or at common law, includes any of the following: 13 
(1) Enforcing a Code requirement in areas or circumstances not specified in the 14 
requirement. 15 
(2) Refusing to accept an alternative design or construction method that has been 16 
appealed under G.S. 143-140.1 and found by the Office of the State Fire 17 
Marshal to comply with the Code under the conditions or circumstances set 18 
forth in the Office of the State Fire Marshal's decision for that appeal. 19 
(3) Refusing to allow an alternative construction method currently included in the 20 
Building Code under the conditions or circumstances set forth in the Code for 21 
that alternative method. 22 
(4) Enforcing a requirement that is more stringent than or otherwise exceeds the 23 
Code requirement. 24 
(5) Refusing to implement or adhere to an interpretation of the North Carolina 25 
State Building Code issued by the Building Code Council, Residential Code 26 
Council, or the Office of the State Fire Marshal. 27 
(6) Habitually failing to provide requested inspections in a timely manner. 28 
(7) Enforcing a Code official's preference in the method or manner of installation 29 
of heating ventilation and air-conditioning units, appliances, or equipment if 30 
it is not required by the State Building Code and is in contradiction of a 31 
manufacturer's installation instructions or specifications. 32 
"§ 143-151.9.  North Carolina Code Officials Enforcement Qualification Board established; 33 
members; terms; vacancies. 34 
(a) There is hereby established the North Carolina Code Officials Enforcement 35 
Qualification Board in the Department of Insurance. The Board shall be composed of 20 36 
members appointed as follows: 37 
(1) One member who is a city or county manager;manager. 38 
(2) Two members, one of whom is an elected official representing a city over 39 
5,000 population and one of whom is an elected official representing a city 40 
under 5,000 population;population. 41 
(3) Two members, one of whom is an elected official representing a county over 42 
40,000 population and one of whom is an elected official representing a 43 
county under 40,000 population;population. 44 
(4) Two members serving as building officials Code-enforcement officials with 45 
the responsibility for administering building, plumbing, electrical and heating 46 
codes, one of whom serves a county and one of whom serves a city;city. 47 
(5) One member who is a registered architect;architect. 48 
(6) One member who is a registered engineer;engineer. 49 
(7) Two members who are licensed general contractors, at least one of whom 50 
specializes in residential construction;construction. 51  General Assembly Of North Carolina 	Session 2025 
Page 18  House Bill 661-Second Edition 
(8) One member who is a licensed electrical contractor;contractor. 1 
(9) One member who is a licensed plumbing or heating contractor;contractor. 2 
(10) One member selected from the faculty of the North Carolina State University 3 
School of Engineering and one member selected from the faculty of the 4 
School of Engineering of the North Carolina Agricultural and Technical State 5 
University;University. 6 
(11) One member selected from the faculty of the School of Government at the 7 
University of North Carolina at Chapel Hill;Hill. 8 
(12) One member selected from the Community Colleges System Office;Office. 9 
(13) One member selected from the Division of Engineering and Building Codes 10 
in the Department of Insurance; and,Insurance. 11 
(14) One member who is a local government fire prevention inspector and one 12 
member who is a citizen of the State. 13 
The various categories shall be appointed as follows: (1), (2), (3), and (14) by the Governor; 14 
(4), (5), and (6) by the General Assembly upon the recommendation of the President Pro Tempore 15 
in accordance with G.S. 120-121; (7), (8), and (9) by the General Assembly upon the 16 
recommendation of the Speaker of the House of Representatives in accordance with 17 
G.S. 120-121; (10) by the deans of the respective schools of engineering of the named 18 
universities; (11) by the Dean of the School of Government at the University of North Carolina 19 
at Chapel Hill; (12) by the President of the Community Colleges System; and (13) by the State 20 
Fire Marshal. 21 
(b) The members shall be appointed for staggered terms and the initial appointments shall 22 
be made prior to September 1, 1977, and the appointees shall hold office until July 1 of the year 23 
in which their respective terms expire and until their successors are appointed and qualified as 24 
provided hereafter: 25 
For the terms of one year: the members from subdivisions (1), (6) and (10) of subsection (a), 26 
and one member from subdivision (3). 27 
For the terms of two years: the member from subdivision (11) of subsection (a), one member 28 
from subdivision (2), one member from subdivision (4), one member from subdivision (7), and 29 
one member from subdivision (14). 30 
For the terms of three years: the members from subdivisions (8) and (12) of subsection (a), 31 
one member from subdivision (2), one member from subdivision (4), and one member from 32 
subdivision (14). 33 
For the terms of four years: the members from subdivision (5), (9) and (13) of subsection (a), 34 
one member from subdivision (3), and one member from subdivision (7). 35 
Thereafter, as the term of each member expires, his the member's successor shall be appointed 36 
for a term of four years. Notwithstanding the appointments for a term of years, each member 37 
shall serve at the will of the Governor. 38 
Members of the Board who are public officers shall serve ex officio and shall perform their 39 
duties on the Board in addition to the duties of their office. 40 
(c) Vacancies in the Board occurring for any reason shall be filled for the unexpired term 41 
by the person making the appointment. 42 
"§ 143-151.10.  Compensation. 43 
Members of the Board who are State officers or employees shall receive no salary for serving 44 
on the Board, but shall be reimbursed for their expenses in accordance with G.S. 138-6. Members 45 
of the Board who are full-time salaried public officers or employees other than State officers or 46 
employees shall receive no salary for serving on the Board, but shall be reimbursed for 47 
subsistence and travel expenses in accordance with G.S. 138-5(a)(2) and (3). All other members 48 
of the Board shall receive compensation and reimbursement for expenses in accordance with 49 
G.S. 138-5(a). 50  General Assembly Of North Carolina 	Session 2025 
House Bill 661-Second Edition 	Page 19 
"§ 143-151.11.  Chairman; vice-chairman; Chair; vice-chair; other officers; meetings; 1 
reports. 2 
(a) The members of the Board shall select one of their members as chairman chair upon 3 
its creation, and shall select the chairman chair each July 1 thereafter. 4 
(b) The Board shall select a vice-chairman vice-chair and such other officers and 5 
committee chairmen chair from among its members, as it deems desirable, at the first regular 6 
meeting of the Board after its creation and at the first regular meeting after July 1 of each year 7 
thereafter. Provided, nothing in this subsection shall prevent the creation or abolition of 8 
committees or offices of the Board, other than the office of vice-chairman, vice-chair, as the need 9 
may arise at any time during the year. 10 
(c) The Board shall hold at least four regular meetings per year upon the call of the 11 
chairman. chair. Special meetings shall be held upon the call of the chairman chair or the 12 
vice-chairman, vice-chair, or upon the written request of four members of the Board. 13 
(d) The activities and recommendations of the Board with respect to standards for Code 14 
officials the training and certification of persons engaged in the practice of Code enforcement 15 
shall be set forth in regular and special reports made by the Board. Additionally, the Board shall 16 
present special reports and recommendations to the Governor or the General Assembly, or both, 17 
as the need may arise or as the Governor or the General Assembly may request. 18 
"§ 143-151.12.  Powers. 19 
In addition to powers conferred upon the Board elsewhere in this Article, the Board has the 20 
power to do the following: 21 
(1) Adopt rules necessary to administer this Article. 22 
(1a) Require State agencies, local inspection departments, and local governing 23 
bodies to submit reports and information about the employment, education, 24 
and training of Code-enforcement officials. 25 
(2) Establish minimum standards for employment as a Code-enforcement official: 26 
(i) in probationary or temporary status, and (ii) in permanent positions. 27 
(3) Certify persons as being qualified under the provisions of this Article to be 28 
Code-enforcement officials, including persons employed by a federally 29 
recognized Indian Tribe to perform inspections on tribal lands. 30 
(3a) Certify persons as being qualified under the provisions of this Article to be 31 
North Carolina State Building Code Permit Technicians. 32 
(3b) Certify persons as being qualified under the provisions of this Article to be 33 
residential changeout special inspectors. 34 
(4) Consult and cooperate with counties, municipalities, agencies of this State, 35 
other governmental agencies, and with universities, colleges, junior colleges, 36 
community colleges and other institutions concerning the development of 37 
Code-enforcement training schools and programs or courses of instruction. 38 
(5) Establish minimum standards and levels of education or equivalent experience 39 
for all Code-enforcement instructors, teachers or professors. 40 
(6) Conduct and encourage research by public and private agencies that shall be 41 
designed to improve education and training in the administration of Code 42 
enforcement. 43 
(7) Adopt and amend bylaws, consistent with law, for its internal management 44 
and control; appoint advisory committees as necessary; and enter into 45 
contracts and do other things as necessary and incidental to the exercise of its 46 
authority pursuant to this Article. 47 
(8) Make recommendations concerning any matters within its purview pursuant 48 
to this Article. 49  General Assembly Of North Carolina 	Session 2025 
Page 20  House Bill 661-Second Edition 
(9) Establish within the Office of the State Fire Marshal a marketplace pool of 1 
qualified certified Code-enforcement officials available for the following 2 
purposes: 3 
a. When requested by the State Fire Marshal, to assist in the discharge of 4 
the State Fire Marshal's duty under G.S. 143-139 to supervise, 5 
administer, and enforce the North Carolina State Building Code. The 6 
State Fire Marshal shall have the power and authority to fix and collect 7 
reasonable fees for services performed by Code-enforcement officials 8 
under this sub-subdivision. The State Fire Marshal may also collect 9 
reimbursement, at the rate established under G.S. 138-6, for mileage 10 
costs incurred by Code-enforcement officials going to and from 11 
inspections conducted under this sub-subdivision. The State Fire 12 
Marshal shall have no power or authority to fix or collect fees incurred 13 
by local inspection departments under sub-subdivision b. of this 14 
subdivision. 15 
b. When requested by local inspection departments, to assist in Code 16 
enforcement. 17 
"§ 143-151.13. Required standards and certificates for Code-enforcement 18 
officials.certificates. 19 
(a) No person shall engage in Code enforcement under this Article unless that person 20 
possesses one of the following types of certificates, currently valid, issued by the Board attesting 21 
to that person's qualifications to engage in Code enforcement: (i) a standard certificate; (ii) a 22 
limited certificate provided for in subsection (c) of this section; or (iii) a probationary certificate 23 
provided for in subsection (d) of this section. To obtain a standard certificate, a person must pass 24 
an examination, as prescribed by the Board or by a contracting party under G.S. 143-151.16(d), 25 
that is based on the North Carolina State Building Code and administrative procedures required 26 
for Code enforcement. The Board may issue a standard certificate of qualification to each person 27 
who successfully completes the examination. The certificate authorizes that person to engage in 28 
the practice of Code enforcement and to practice as a qualified Code-enforcement official in 29 
North Carolina. The certificate of qualification shall bear the signatures of the chairman chair 30 
and secretary of the Board. 31 
(b) The Board shall issue one or more standard certificates to each person seeking to 32 
practice Code enforcement as a certified Code-enforcement official by demonstrating the 33 
qualifications set forth in subsection (b1) (b2) of this section. Standard certificates are available 34 
for each of the following types of qualified for Code-enforcement officials: 35 
(1) Building inspector. 36 
(2) Electrical inspector. 37 
(3) Mechanical inspector. 38 
(4) Plumbing inspector. 39 
(5) Fire inspector. 40 
(6) Residential changeout inspector. 41 
(b1) The Board shall issue a standard certificate to each person seeking to practice Code 42 
enforcement as a residential changeout special inspector by demonstrating the qualifications set 43 
forth in subsection (b2) of this section. 44 
(b1)(b2) The holder of a standard certificate may practice Code enforcement only within 45 
the inspection area and level described upon the certificate issued by the Board. A 46 
Code-enforcement official holder of a standard certificate may qualify and hold one or more 47 
certificates. These certificates may be for different levels in different types of positions as defined 48 
in this section and in rules adopted by the Board. 49 
(b2)(b3) A Code-enforcement official holding a certificate indicating a specified level of 50 
proficiency in a particular type of position may hold a position calling for that type of 51  General Assembly Of North Carolina 	Session 2025 
House Bill 661-Second Edition 	Page 21 
qualification anywhere in the State. With respect to all types of Code-enforcement officials, those 1 
with Level I, Level II, or Level III certificates shall be qualified to inspect and approve only those 2 
types and sizes of buildings as specified in rules adopted by the Board. 3 
(c) A Code-enforcement official holding office as of the date specified in this subsection 4 
for the county or municipality by which he is employed, shall not be required to possess a 5 
standard certificate as a condition of tenure or continued employment but shall be required to 6 
complete such in-service training as may be prescribed by the Board. At the earliest practicable 7 
date, such official shall receive from the Board a limited certificate qualifying him to engage in 8 
Code enforcement at the level, in the particular type of position, and within the governmental 9 
jurisdiction in which he the Code-enforcement official is employed. The limited certificate shall 10 
be valid only as an authorization for the Code-enforcement official to continue in the position he 11 
held on the applicable date and shall become invalid if he the Code-enforcement official does not 12 
complete in-service training within two years following the applicable date in the schedule below, 13 
according to the governmental jurisdiction's population as published in the 1970 U.S. Census: 14 
Counties and Municipalities over 75,000 population – July 1, 1979 15 
Counties and Municipalities between 50,001 and 75,000 – July 1, 1981 16 
Counties and Municipalities between 25,001 and 50,000 – July 1, 1983 17 
Counties and Municipalities 25,000 and under – July 1, 1985 18 
All fire prevention inspectors holding office – July 1, 1989. Fire prevention inspectors have 19 
until July 1, 1993, to complete in-service training. 20 
An A Code-enforcement official holding a limited certificate can be promoted to a position 21 
requiring a higher level certificate only upon issuance by the Board of a standard certificate or 22 
probationary certificate appropriate for such new position. 23 
(d) The Board may provide for the issuance of probationary or temporary certificates 24 
valid for such period (not less than one year nor more than three years) as specified by the Board's 25 
rules, or until June 30, 1983, whichever is later, to any Code-enforcement official newly 26 
employed or newly promoted person seeking to practice Code enforcement who lacks the 27 
qualifications prescribed by the Board as prerequisite to applying for a standard certificate under 28 
subsection (a). No Code-enforcement official may have a probationary or temporary certificate 29 
extended beyond the specified period by renewal or otherwise. 30 
(d1) The Board may provide for appropriate levels of probationary or temporary 31 
certificates and may issue these certificates with such special conditions or requirements relating 32 
to the place of employment of the person holding the certificate, his supervision on a consulting 33 
or advisory basis, or other matters as the Board may deem necessary to protect the public safety 34 
and health. 35 
(e) The Board shall, without requiring an examination, issue a standard certificate to any 36 
person who is currently certified as a county electrical inspector pursuant to G.S. 160D-1102. 37 
The certificate issued by the Board shall authorize the person to serve at the electrical inspector 38 
level approved by the State Fire Marshal in G.S. 160D-1102. 39 
(f) The Board shall issue a standard certificate to any person who is currently licensed to 40 
practice as a(n):any of the following: 41 
(1) Architect, registered pursuant to Chapter 83A;83A. 42 
(2) General contractor, licensed pursuant to Article 1 of Chapter 87;87. 43 
(3) Plumbing or heating contractor, licensed pursuant to Article 2 of Chapter 44 
87;87. 45 
(4) Electrical contractor, licensed pursuant to Article 4 of Chapter 87; or,87. 46 
(5) Professional engineer, registered pursuant to Chapter 89C;89C. 47 
provided the person successfully completes a short course, as prescribed by the Board, 48 
relating to the North Carolina State Building Code regulations and Code enforcement 49 
administration. The standard certificate shall authorize the person to practice as a qualified Code 50  General Assembly Of North Carolina 	Session 2025 
Page 22  House Bill 661-Second Edition 
enforcement official in a particular type of position at the level determined by the Board, based 1 
on the type of license or registration held in any profession specified above. 2 
(g) A licensed architect or licensed professional engineer who possesses a valid 3 
certificate under subsection (f) of this section, but is not employed by the State or a local 4 
government, may utilize that certificate for the limited purpose of performing independent 5 
third-party plan review under subsections (d) and (e) of G.S. 160D-1110.1. 6 
"§ 143-151.13A.  Professional development program for officials.program. 7 
(a) As used in this section, "official" means a qualified Code-enforcement official as that 8 
term is defined in G.S. 143-151.8. 9 
(b) The Board may establish professional development requirements for officials 10 
certificate holders as a condition of the renewal or reactivation of their certificates. The purposes 11 
of these professional development requirements are to assist officials certificate holders in 12 
maintaining professional competence in their enforcement of the Code and to assure the health, 13 
safety, and welfare of the citizens of North Carolina. An official A certificate holder subject to 14 
this section shall present evidence to the Board at each certificate renewal after initial 15 
certification, that during the 12 months before the certificate expiration date, the official 16 
certificate holder has completed the required number of credit hours in courses approved by the 17 
Board. Annual continuing education hour requirements shall be determined by the Board but 18 
shall not be more than six credit hours. 19 
(c) The Board may require an individual who earns a certificate under programs 20 
established in G.S. 143-151.13 to complete professional development courses, not to exceed six 21 
hours in each technical area of certification, within one year after that individual is first employed 22 
by a city or county inspection department.local inspection department as a Code-enforcement 23 
official. 24 
(d) As a condition of reactivating a standard or limited certificate, the Board may require 25 
the completion of professional development courses within one year after reemployment as an a 26 
Code-enforcement official as follows: 27 
(1) An individual who has been on inactive status for more than two years and 28 
who has not been continuously employed by a city or county inspection 29 
department during the period of inactive status shall complete professional 30 
development courses not to exceed six hours for each technical area in which 31 
the individual is certified. 32 
(2) An individual who has been on inactive status for more than two years and 33 
who has been continuously employed by a city or county inspection 34 
department during the period of inactive status shall complete professional 35 
development courses not to exceed three hours for each technical area in 36 
which the individual is certified. 37 
(3) An individual who has been on inactive status for two years or less shall 38 
complete professional development courses not to exceed two hours for each 39 
technical area in which the individual is certified. 40 
(e) The Board may, for good cause shown, grant extensions of time to officials certificate 41 
holders to comply with these requirements. An official A certificate holder who, after obtaining 42 
an extension under this subsection, offers evidence satisfactory to the Board that the official 43 
certificate holder has satisfactorily completed the required professional development courses, is 44 
in compliance with this section. 45 
(f) The Board may adopt rules to implement this section, including rules that govern: 46 
(1) The content and subject matter of professional development courses. 47 
(2) The criteria, standards, and procedures for the approval of courses, course 48 
sponsors, and course instructors. 49 
(3) The methods of instruction. 50 
(4) The computation of course credit. 51  General Assembly Of North Carolina 	Session 2025 
House Bill 661-Second Edition 	Page 23 
(5) The ability to carry-forward course credit from one year to another. 1 
(6) The waiver of or variance from the professional development required for 2 
hardship or other reasons. 3 
(7) The procedures for compliance and sanctions for noncompliance. 4 
"§ 143-151.14.  Comity. 5 
(a) The Board may, without requiring an examination, grant a standard certificate as a 6 
qualified Code-enforcement official to a person seeking to engage in the practice of Code 7 
enforcement for a particular type of position and level to any person who, at the time of 8 
application, is certified as a qualified Code-enforcement official holds a certificate in good 9 
standing issued by a similar board of another state, district or territory where standards are 10 
acceptable to the Board and not lower than those required by this Article for a similar type of 11 
position and level in this State. 12 
(b) The Board may, without requiring an examination, grant a standard certificate as a 13 
qualified Code-enforcement official for a particular type of position and level to any person who, 14 
at the time of application, is certified as a qualified Code-enforcement official in good standing 15 
by by, and in good standing with, the International Code Council where standards and 16 
examination are acceptable to the Board and not lower than those required by this Article for a 17 
type of position and level in this State. 18 
(c) The certificates granted under subsections (a) and (b) of this section shall expire after 19 
three years unless within that time period the holder completes a short course, as prescribed by 20 
the Board, relating to the North Carolina State Building Code regulations and Code-enforcement 21 
Code enforcement administration. 22 
(d) A fee of not more than twenty dollars ($20.00), as determined by the Board, must be 23 
paid by any applicant to the Board for the issuance of a certificate under this section. The 24 
provisions of G.S. 143-151.16(b) relating to renewal fees and late renewals shall apply to every 25 
person granted a standard certificate in accordance with this section. 26 
"§ 143-151.15.  Return of certificate to Board; reissuance by Board. 27 
(a) A certificate issued by the Board under this Article to a Code-enforcement official is 28 
valid as long as the person certified is employed by the State of North Carolina or any political 29 
subdivision thereof as a Code-enforcement official, or is employed by a federally recognized 30 
Indian Tribe to perform inspections on tribal lands as a Code-enforcement official. When the 31 
person certified leaves that employment for any reason, he that person shall return the certificate 32 
to the Board. If the person subsequently obtains employment as a Code-enforcement official in 33 
any governmental jurisdiction described above, the Board may reissue the certificate to him. 34 
certificate. The provisions of G.S. 143-151.16(b) relating to renewal fees and late renewals shall 35 
apply, if appropriate. The provisions of G.S. 143-151.16(c) shall not apply. This section does not 36 
affect the Board's powers under G.S. 143-151.17. 37 
(b) A certificate issued by the Board under this Article for residential changeout special 38 
inspectors is valid for one year and subject to renewal pursuant to G.S. 143-151.23. 39 
"§ 143-151.16.  Certification fees; renewal of certificates; examination fees. 40 
(a) The Board shall establish a schedule of fees to be paid by each applicant for 41 
certification as a qualified Code-enforcement official. Such fee shall not exceed twenty dollars 42 
($20.00) for each applicant. 43 
(b) A certificate, other than a probationary certificate, as a qualified Code-enforcement 44 
official issued pursuant to the provisions of this Article must be renewed annually on or before 45 
the first day of July. Each application for renewal must be accompanied by a renewal fee to be 46 
determined by the Board, but not to exceed ten dollars ($10.00). The Board is authorized to 47 
charge an extra four dollar ($4.00) late renewal fee for renewals made after the first day of July 48 
each year. 49  General Assembly Of North Carolina 	Session 2025 
Page 24  House Bill 661-Second Edition 
(c) Any person who fails to renew his the certificate for a period of two consecutive years 1 
may be required by the Board to take and pass the same examination as unlicensed applicants 2 
before allowing such person to renew his the certificate. 3 
(d) The Board may contract with persons for the development and administration of the 4 
examinations required by G.S. 143-151.13(a), for course development related to the 5 
examinations, for review of a particular applicant's examination, and for other related services. 6 
The person with whom the Board contracts may charge applicants a reasonable fee for the costs 7 
associated with the development and administration of the examinations, for course development 8 
related to the examinations, for review of the applicant's examinations, and for other related 9 
services. The fee shall be agreed to by the Board and the other contracting party. The amount of 10 
the fee under this subsection shall not exceed one hundred seventy-five dollars ($175.00). 11 
Contracts for the development and administration of the examinations, for course development 12 
related to the examinations, and for review of examinations shall not be subject to Article 3, 3C, 13 
or 8 of Chapter 143 of the General Statutes or to Article 15 of Chapter 143B of the General 14 
Statutes. However, the Board shall: (i) submit all proposed contracts for supplies, materials, 15 
printing, equipment, and contractual services that exceed one million dollars ($1,000,000) 16 
authorized by this subsection to the Attorney General or the Attorney General's designee for 17 
review as provided in G.S. 114-8.3; and (ii) include in all proposed contracts to be awarded by 18 
the Board under this subsection a standard clause which provides that the State Auditor and 19 
internal auditors of the Board may audit the records of the contractor during and after the term 20 
of the contract to verify accounts and data affecting fees and performance. The Board shall not 21 
award a cost plus percentage of cost agreement or contract for any purpose. 22 
"§ 143-151.17.  Grounds for disciplinary actions; investigation; administrative procedures. 23 
(a) The Board has the power to suspend, revoke, demote to a lower level, or refuse to 24 
grant a certificate issued under this Article to any person to whom any of the following applies: 25 
(1) Has been convicted of a felony against this State or the United States, or 26 
convicted of a felony in another state that would also be a felony if it had been 27 
committed in this State. 28 
(2) Has obtained certification through fraud, deceit, or perjury. 29 
(3) Has knowingly aided or abetted any person practicing contrary to the 30 
provisions of this Article or the North Carolina State Building Code or any 31 
building codes adopted by a federally recognized Indian Tribe. 32 
(4) Has defrauded the public or attempted to do so. 33 
(5) Has affixed his or her a signature to a report of inspection or other instrument 34 
of service if no inspection has been made by him or her or under his or her 35 
immediate and responsible direction.made. 36 
(6) Has been guilty of willful misconduct, gross negligence, or gross 37 
incompetence. 38 
(b) The Board may investigate the actions of any qualified Code-enforcement official 39 
certificate holder or applicant upon the verified complaint in writing of any person alleging a 40 
violation of subsection (a) of this section. The Board may suspend, revoke, or demote to a lower 41 
level any certificate of any qualified Code-enforcement official certificate holder and refuse to 42 
grant a certificate to any applicant, whom it finds to have been guilty of one or more of the actions 43 
set out in subsection (a) of this section as grounds for disciplinary action. 44 
(c) A denial, suspension, revocation, or demotion to a lower level of a certificate issued 45 
under this Article shall be made in accordance with Chapter 150B of the General Statutes. 46 
(d) The Board may deny an application for a certificate for any of the grounds that are 47 
described in subsection (a) of this section. Within 30 days after receipt of a notification that an 48 
application for a certificate has been denied, the applicant may make a written request for a 49 
review by a committee designated by the chairman chair of the Board to determine the 50 
reasonableness of the Board's action. The review shall be completed without undue delay, and 51  General Assembly Of North Carolina 	Session 2025 
House Bill 661-Second Edition 	Page 25 
the applicant shall be notified promptly in writing as to the outcome of the review. Within 30 1 
days after service of the notification as to the outcome, the applicant may make a written request 2 
for a hearing under Article 3A of Chapter 150B of the General Statutes if the applicant disagrees 3 
with the outcome. 4 
(e) This section applies to Code-enforcement officials and applicants who are employed 5 
or seek to be employed by a federally recognized Indian Tribe to perform inspections on tribal 6 
lands. 7 
"§ 143-151.18.  Violations; penalty; injunction. 8 
On and after July 1, 1979, it It shall be unlawful for any person to represent himself 9 
misrepresent themselves as a qualified Code-enforcement official who does not hold holder of a 10 
currently valid certificate of qualification issued by the Board. Further, it shall be unlawful for 11 
any person to practice Code enforcement except as allowed by any currently valid certificate 12 
issued to that person by the Board. Any person violating any of the provisions of this Article 13 
shall be guilty of a Class 1 misdemeanor. The Board is authorized to apply to any judge of the 14 
superior court for an injunction in order to prevent any violation or threatened violation of the 15 
provisions of this Article. 16 
"§ 143-151.19.  Administration. 17 
(a) The Division of Engineering and Building Codes in the Department of Insurance shall 18 
provide clerical and other staff services required by the Board, and shall administer and enforce 19 
all provisions of this Article and all rules promulgated pursuant to this Article, subject to the 20 
direction of the Board, except as delegated by this Article to local units of government, other 21 
State agencies, corporations, or individuals. 22 
(b) The Board shall make copies of this Article and the rules adopted under this Article 23 
available to the public at a price determined by the Board. 24 
(c) The Board shall keep current a record of the names and addresses of all qualified 25 
Code-enforcement officials certificate holders and additional personal data as the Board deems 26 
necessary. The Board annually shall publish a list of all currently certified Code-enforcement 27 
officials.certificate holders. 28 
(d) Each certificate issued by the Board shall contain such identifying information as the 29 
Board requires. 30 
(e) The Board shall issue a duplicate certificate to practice as a qualified 31 
Code-enforcement official a certificate holder in place of one which has been lost, destroyed, or 32 
mutilated upon proper application and payment of a fee to be determined by the Board. 33 
"§ 143-151.20.  Donations and appropriations. 34 
(a) In addition to appropriations made by the General Assembly, the Board may accept 35 
for any of its purposes and functions under this Article any and all donations, both real and 36 
personal, and grants of money from any governmental unit or public agency, or from any 37 
institution, person, firm or corporation, and may receive, utilize, disburse and transfer the same, 38 
subject to the approval of the Council of State. Any arrangements pursuant to this section shall  39 
be detailed in the next regular report of the Board. Such report shall include the identity of the 40 
donor, the nature of the transaction, and the conditions, if any. Any moneys received by the Board 41 
pursuant to this section shall be deposited in the State treasury to the account of the Board. 42 
(b) The Board may provide grants as a reimbursement for actual expenses incurred by 43 
the State or political subdivision thereof for the provisions of training programs of officials from 44 
other jurisdictions within the State. The Board, by rules, shall provide for the administration of 45 
the grant program authorized herein. In promulgating such rules, the Board shall promote the 46 
most efficient and economical program of Code-enforcement training, including the maximum 47 
utilization of existing facilities and programs for the purpose of avoiding duplication. 48 
"§ 143-151.21.  Disposition of fees. 49 
Fees collected by the State Fire Marshal under this Article shall be credited to the Insurance 50 
Regulatory Fund created under G.S. 58-6-25. 51  General Assembly Of North Carolina 	Session 2025 
Page 26  House Bill 661-Second Edition 
"§ 143-151.22. North Carolina State Building Code Permit Technician; certification 1 
program; professional development requirements; renewal of certificates; fees; 2 
exam waivers. 3 
(a) State Building Code Permit Technician Certification Program. – The Board shall 4 
develop a North Carolina State Building Code Permit Technician certification program and North 5 
Carolina State Building Code Permit Technician Certificate. To obtain a certificate, a person 6 
must pass an examination, as prescribed by the Board, that is based on the North Carolina State 7 
Building Code, administrative procedures applicable to permit administration, and relevant 8 
topics in support of Code-enforcement officials and local inspection departments. The Board may 9 
issue a certificate to each person who successfully completes the examination. The certificate 10 
shall bear the signatures of the chairman chair and secretary of the Board. 11 
(b) Professional Development Standards for Renewal. – The Board may establish 12 
professional development requirements for North Carolina State Building Code Permit 13 
Technicians as a condition of the renewal of their certificates. The purpose of these professional 14 
development requirements is to assist in maintaining professional competence. A certificate 15 
holder subject to this section shall present evidence to the Board at each certificate renewal after 16 
initial certification that during the 12 months before the certificate expiration date, the certificate 17 
holder has completed the required number of credit hours in courses approved by the Board. 18 
Annual continuing education hour requirements shall be determined by the Board. The Board 19 
may, for good cause shown, grant extensions of time to certificate holders to comply with these 20 
requirements. 21 
(c) Renewal Application. – A North Carolina State Building Code Permit Technician 22 
Certificate must be renewed annually on or before the first day of July. 23 
(d) Fee Authorization. – The Board shall establish a schedule of fees to be paid by each 24 
applicant for initial certification and renewal certification as a North Carolina State Building 25 
Code Permit Technician. A fee of not more than twenty dollars ($20.00), as determined by the 26 
Board, must be paid by any applicant to the Board for the issuance of an initial certification. A 27 
fee of not more than ten dollars ($10.00), as determined by the Board, must be paid by any 28 
applicant to the Board for the issuance of a renewal certification. The Board is authorized to 29 
charge an extra four dollar ($4.00) late renewal fee for renewal applications made after the first 30 
day of July each year. 31 
(e) Qualified Code-Enforcement Official Exam Waiver. – The Board shall, without 32 
requiring an examination, grant a certificate pursuant to this section to any person who, at the 33 
time of application, possesses a Building Inspector standard certificate issued by the Board and 34 
who is in good standing. The Board may assess a fee for a certificate issued pursuant to this 35 
subsection, to the extent authorized by subsection (d) of this section for an initial certification. 36 
(f) Comity. – The Board may, without requiring an examination, grant a certificate 37 
pursuant to this section to any person who, at the time of application, is similarly certified as a 38 
permit technician in good standing by a similar board of another jurisdiction or certified as a 39 
permit technician in good standing by the International Code Council, where standards are 40 
acceptable to the Board. The certificate granted under this subsection shall expire after one year 41 
unless, within that time period, the holder completes a short course, as prescribed by the Board, 42 
based on the North Carolina State Building Code and administrative procedures described in 43 
subsection (a) of this section. The Board may assess a fee for a certificate issued pursuant to this 44 
subsection, to the extent authorized by subsection (d) of this section for an initial certification. 45 
"§ 143-151.23.  Disasters and emergencies; temporary certificates. 46 
(a) When a state of emergency, as defined in G.S. 166A-19.3, has been declared by the 47 
Governor due to a natural disaster such as a hurricane, tornado, or flood, or due to a pending 48 
disaster, the Board may issue temporary standard or limited certificates to retired qualified 49 
Code-enforcement officials to conduct Code enforcement in the emergency area, as defined in 50 
G.S. 166A-19.3, for the duration of the state of emergency. 51  General Assembly Of North Carolina 	Session 2025 
House Bill 661-Second Edition 	Page 27 
(b) A temporary standard or limited certificate issued under this section shall expire at 1 
the termination of the state of emergency or 12 months, whichever is earlier. If after 12 months 2 
the state of emergency has not expired, the Board may renew the temporary standard or limited 3 
certificate. 4 
(c) A qualified Code-enforcement official who has been on inactive status and is issued 5 
a temporary standard or limited certificate under this section shall not be subject to the continuing 6 
education requirements established pursuant to G.S. 143-151.13A, unless the individual has been 7 
inactive or retired for over two years and not continuously employed by a city or county 8 
inspection department. 9 
"§ 143-151.24.  Residential changeout special inspectors; certification program; 10 
professional development requirements; renewal of certificates; fees; exam 11 
waivers. 12 
(a) Residential Changeout Special Inspector Certification Program. – The Board shall 13 
develop a Residential Changeout Special Inspector Certification Program and residential 14 
changeout special inspector certificate. To obtain a certificate, a person must pass an 15 
examination, as prescribed by the Board, that is based on the North Carolina State Building Code, 16 
administrative procedures applicable to permit administration, and relevant topics related to the 17 
inspection of residential changeout work as described in G.S. 160D-1106.1. The Board may issue 18 
a certificate to each person who successfully applies and completes the examination. The 19 
certificate shall bear the signatures of the chair and secretary of the Board. 20 
(b) Professional Development Standards for Renewal. – The Board may establish 21 
professional development requirements for residential changeout special inspector certificate as 22 
a condition of the renewal of their certificates. The purpose of these professional development 23 
requirements is to assist in maintaining professional competence. A certificate holder subject to 24 
this section shall present evidence to the Board at each certificate renewal after initial certification 25 
that during the 12 months before the certificate expiration date, the certificate holder has 26 
completed the required number of credit hours in courses approved by the Board. Annual 27 
continuing education hour requirements shall be determined by the Board. The Board may, for 28 
good cause shown, grant extensions of time to certificate holders to comply with these 29 
requirements. 30 
(c) Renewal Application. – A residential changeout special inspector certificate must be 31 
renewed annually on or before the first day of July. 32 
(d) Fee Authorization. – The Board shall establish a schedule of fees to be paid by each 33 
applicant for initial certification and renewal certification as a residential changeout special 34 
inspector. A fee of not more than twenty dollars ($20.00), as determined by the Board, must be 35 
paid by any applicant to the Board for the issuance of an initial certification. A fee of not more 36 
than ten dollars ($10.00), as determined by the Board, must be paid by any applicant to the Board 37 
for the issuance of a renewal certification. The Board is authorized to charge an extra four dollar 38 
($4.00) late renewal fee for renewal applications made after the first day of July each year. 39 
(e) Code-Enforcement Official Exam Waiver. – The Board shall, without requiring an 40 
examination, grant a certificate pursuant to this section to any person who, at the time of 41 
application, possesses a Building Inspector standard certificate issued by the Board and who is 42 
in good standing. The Board may assess a fee for a certificate issued pursuant to this subsection 43 
to the extent authorized by subsection (d) of this section for an initial certification. 44 
(f) Certification of Licensed Contractors. – The Board shall issue a standard certificate 45 
to any person who is currently licensed to practice as a plumbing or heating contractor, licensed 46 
pursuant to Article 2 of Chapter 87 of the General Statutes, provided the person successfully 47 
completes a short course, as prescribed by the Board, relating to the North Carolina State 48 
Building Code and Code enforcement administration. 49 
(g) Comity. – The Board may, without requiring an examination, grant a certificate 50 
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 
Page 28  House Bill 661-Second Edition 
Building Inspector in good standing by a similar board of another jurisdiction where standards 1 
are acceptable to the Board. The certificate granted under this subsection shall expire after one 2 
year unless, within that time period, the holder completes a short course, as prescribed by the 3 
Board, based on the North Carolina State Building Code and administrative procedures described 4 
in subsection (a) of this section. The Board may assess a fee for a certificate issued pursuant to 5 
this subsection, to the extent authorized by subsection (d) of this section for an initial 6 
certification." 7 
SECTION 4.1.(b) Article 11 of Chapter 160D of the General Statutes is amended 8 
by adding a new section to read: 9 
"§ 160D-1106.1. Alternate inspection method by residential changeout special inspectors. 10 
(a) Notwithstanding the building inspection requirements of this Article, a local 11 
government shall accept and approve, without further responsibility to inspect, a residential 12 
changeout inspected by a residential changeout special inspector if all of the following conditions 13 
are met: 14 
(1) The residential changeout is completed by a contractor licensed pursuant to 15 
Article 2 of Chapter 87 of the General Statutes, who is different than the 16 
residential changeout special inspector charged with inspection of that 17 
residential changeout. 18 
(2) The new appliance, and related connections, subject to the residential 19 
changeout meets all of the following conditions: 20 
a. The new appliance requires no alterations to the existing ducting, fuel 21 
type, or piping systems other than what is required for transitioning to 22 
the new appliance. 23 
b. Any venting associated with the new appliance shall be allowed to be 24 
installed, replaced, and repaired where such venting does not pass 25 
through a rated assembly. 26 
c. Any new gas appliance shall be of the same category as the appliance 27 
being replaced, if applicable. 28 
d. The new appliance does not require relocation, excluding minor 29 
adjustments in the same general vicinity. 30 
e. The installation of the new appliance does not require the relocation 31 
or addition to the existing electrical system, except the replacement of 32 
the appliance's branch circuit overcurrent device, or the replacement 33 
of the appliance's branch circuit where such circuit does not pass 34 
through a rated assembly shall be allowed. 35 
f. The electrical branch circuit serving the appliance is single phase. 36 
(3) Field inspection of the installation is performed by a residential changeout 37 
special inspector, certified pursuant to Article 9C of Chapter 143 of the 38 
General Statutes. 39 
(4) The residential changeout special inspector provides the local government 40 
with a signed written certification that work outlined within subdivisions (1) 41 
and (2) of this subsection have been met and is compliant with the North 42 
Carolina State Building Code. The certification required under this 43 
subdivision shall be provided by electronic or physical delivery, and its receipt 44 
shall be promptly acknowledged by the local government through reciprocal 45 
means. The certification shall be made on forms created by the Office of the 46 
State Fire Marshal, in consultation with the North Carolina Residential Code 47 
Council, which shall include the following information: 48 
a. Permit number. 49 
b. Date of inspection. 50 
c. Type of inspection. 51  General Assembly Of North Carolina 	Session 2025 
House Bill 661-Second Edition 	Page 29 
d. Contractor's name and license number. 1 
e. Street address of the job location. 2 
f. Name, address, telephone number, and certificate number of the 3 
person responsible for the residential changeout special inspection. 4 
(b) In accepting certifications of inspections under subsection (a) of this section, a local 5 
government shall not require information other than what is required within the certification 6 
required under subsection (a) of this section. 7 
(c) Upon the acceptance and approval of a signed certification by the local government 8 
as required under subsection (a) of this section, notwithstanding the issuance of a certificate of 9 
compliance, the local government, its inspection department, and its inspectors are discharged 10 
and released from any liabilities, duties, and responsibilities imposed by this Article with respect 11 
to or in common law from any claim arising out of or attributed to the residential changeout 12 
inspection for which the signed written certification was submitted. 13 
(d) For the purposes of this section, the phrase "residential changeout" means work 14 
requiring a building permit for the purpose of heating and air conditioning appliance and water 15 
heater replacement in dwellings subject to the North Carolina Residential Code, and individual 16 
residential units of condominiums and apartments provided the individual appliance serves only 17 
that residential dwelling unit." 18 
SECTION 4.1.(c) By July 1, 2025, the Office of the State Fire Marshal shall develop 19 
an internet-based examination and short course as described in G.S. 143-151.24, as enacted by 20 
subsection (a) of this section, and make it available on the Office's website for the purpose of 21 
certifying residential changeout special inspectors. 22 
SECTION 4.1.(d) By July 1, 2025, the Office of the State Fire Marshal shall develop 23 
the form required under G.S. 160D-1106.1, as enacted by subsection (b) of this section, and make 24 
it available on the Office's website. 25 
 26 
PART V. ESTABLISH RIGHT TO REPAIR CONSTR UCTION DEFECTS WITHI N 27 
DWELLINGS SUBJECT TO THE NORTH CAROLINA RESIDENTIAL CODE 28 
SECTION 5.1.(a) Chapter 87 of the General Statutes is amended by adding a new 29 
Article to read: 30 
"Article 9. 31 
"Right to Repair Construction Defects Act. 32 
"§ 87-150.  Short title. 33 
This Article shall be known and may be cited as the "Right to Repair Construction Defects 34 
Act." 35 
"§ 87-151.  Definitions. 36 
The following definitions apply in this Article: 37 
(1) Action. – Any civil lawsuit, judicial action, or alternative dispute resolution 38 
proceeding for damages or other relief asserting a claim for injury or loss to a 39 
dwelling caused by an alleged construction defect arising out of or related to 40 
the construction, repairing, or remodeling of the dwelling. 41 
(2) Claimant. – An owner who asserts a claim against a general contractor 42 
concerning a construction defect in the construction, repairing, or remodeling 43 
of a dwelling. 44 
(3) Construction defect. – A defect in or a deficiency arising out of the design or 45 
construction of improvements, including the use of defective material, 46 
products, or components. 47 
(4) Dwelling. – A single-family dwelling or other dwelling type subject to the 48 
North Carolina Residential Code, including the systems, components, and 49 
improvements serving that dwelling. 50 
(5) General contractor. – As defined in G.S. 87-1. 51  General Assembly Of North Carolina 	Session 2025 
Page 30  House Bill 661-Second Edition 
(6) Serve or service. – Personal service or delivery by certified mail to the last 1 
known address of the addressee. 2 
"§ 87-152.  Notice and opportunity to repair. 3 
(a) Notice of Claim. – Before commencing an action against a general contractor 4 
regarding a construction defect, the claimant must, no less than 90 days before filing the action, 5 
serve a written notice of claim on the general contractor. The notice of claim must contain the 6 
following, at a minimum: 7 
(1) A statement that the claimant asserts a construction defect. 8 
(2) A description of the claim or claims in reasonable detail sufficient to 9 
determine the general nature of the construction defect. 10 
(3) A description of any effects of the construction defect, if known. 11 
(b) Request for Clarification. – If a notice of claim is not sufficiently stated, the general 12 
contractor may advise the claimant within 15 days of service of the notice of claim and request 13 
clarification. 14 
(c) General Contractor's Response to Notice of Claim. – The general contractor has 30 15 
days from service of the notice of claim to inspect, offer to remedy, offer to settle with the 16 
claimant, or deny a claim, in whole or in part, regarding the construction defect in writing. The 17 
claimant shall receive written notice of the general contractor's election under this section within 18 
30 days. Failure to respond within 30 days is deemed a denial of the claim. 19 
(d) Response to General Contractor's Offer. – The claimant shall accept a general 20 
contractor's offer, if any, in writing within 10 days of receipt of the offer pursuant to subsection 21 
(c) of this section. Failure to respond within 10 days is deemed a denial of the general contractor's 22 
offer. 23 
(e) Reasonable Access to Dwelling. – If requested, the claimant shall give the general 24 
contractor reasonable access to the dwelling at a mutually agreeable time to inspect a construction 25 
defect and, if agreed to by the parties, repair a construction defect. 26 
(f) Civil Remedy. – Nothing in this Article shall prevent a claimant from proceeding with 27 
a civil action or other remedy provided by law if the parties cannot reach a resolution pursuant 28 
to this Article. 29 
(g) Claimant Repairs. – Nothing in this Article shall be construed to prohibit a claimant 30 
from making immediate repairs to an alleged construction defect subject to this Article to protect 31 
the health and safety of a dwelling's occupants or to mitigate further damage to the dwelling. 32 
(h) Admissibility. – Evidence of offers to settle, repair, or remedy pursuant to this Article 33 
is not admissible to prove liability for or invalidity of the claim or its amount. 34 
"§ 87-153.  Filing a complaint with the Board not prohibited. 35 
Nothing in this Article shall prevent a claimant from filing a complaint with the Board in 36 
accordance with G.S. 87-11(a1). 37 
"§ 87-154.  Stay of action. 38 
If a claimant files an action in court before first complying with the requirements of this 39 
Article, on motion of a party to the action, the court shall stay the action for 120 days and such 40 
additional time that is necessary for compliance with the requirements of this Article. 41 
"§ 87-155.  Statute of limitations and tolling. 42 
Any statute of limitations applicable to a right of action of the claimant under this Article is 43 
tolled until the latter of the following events occur: (i) the claimant denies a general contractor's 44 
offer, in writing, pursuant to G.S. 87-152(d), (ii) the general contractor denies the claimant's 45 
claim, (iii) the repair of the defect is completed, or (iv) either party determines that the general 46 
contractor cannot or will not repair the defect and provides written notice to the other party of 47 
the same." 48 
SECTION 5.1.(b) This section becomes effective October 1, 2025, and applies to 49 
actions commenced on or after that date. 50 
 51  General Assembly Of North Carolina 	Session 2025 
House Bill 661-Second Edition 	Page 31 
PART VI. MISCELLANEO US 1 
 2 
MODIFY PUBLIC POOL LAWS TO CLARIFY PRIVATE POOL EXCLUSION AND 3 
TO EXEMPT PUBLIC COLD BATHS AND FLOTATION/SENSORY DEPRIVATION 4 
SYSTEMS 5 
SECTION 6.1.(a) G.S. 130A-280, as amended by Section 4.51(a) of S.L. 2024-49, 6 
reads as rewritten: 7 
"§ 130A-280.  Scope.Scope and definitions. 8 
(a) This Article Part provides for the regulation of public swimming pools in the State as 9 
they may affect the public health and safety. As used in this Article, the term "public swimming 10 
pool" means any structure, chamber, or tank containing an artificial body of water used by the 11 
public for swimming, diving, wading, recreation, or therapy, together with buildings, 12 
appurtenances, and equipment used in connection with the body of water, regardless of whether 13 
a fee is charged for its use. The term includes municipal, school, hotel, motel, apartment, 14 
boarding house, athletic club, or other membership facility pools and spas, spas operating for 15 
display at temporary events, and artificial swimming lagoons. As used in this Article, an 16 
"artificial swimming lagoon" means any body of water used for recreational purposes with more 17 
than 20,000 square feet of surface area, an artificial liner, and a method of disinfectant that results 18 
in a disinfectant residual in the swimming zone that is protective of the public health. This Article 19 
Part does not apply to any of the following: 20 
(1) A private pool serving a single family dwelling and used only by the residents 21 
of the dwelling and their guests.guests regardless of whether their guests gain 22 
use of the private pool through a sharing economy platform or pay a fee for 23 
its use. In all cases in which a fee is exchanged for access to a private pool 24 
serving a single-family dwelling that is used only by the residents of the 25 
dwelling and their guests, the private pool shall be maintained in good and 26 
safe working order. 27 
(2) A private pool serving a single family dwelling meeting the minimum 28 
requirements of this subdivision which is offered to, and used by, individuals 29 
on a temporary basis utilizing a sharing economy platform. For the purposes 30 
of this subdivision, a sharing economy platform means an online platform 31 
used to facilitate peer-to-peer transactions to acquire, provide, or share access 32 
to goods and services. For the purposes of this subdivision, a pool must meet 33 
all of the following minimum requirements: 34 
a. Pools must have proper fencing and barriers to prevent unsupervised 35 
access, especially by children. The fence should be at least 4 feet high 36 
with a self-latching gate. 37 
b. Pools must have clear and conspicuous signage posted around the pool 38 
area specifying pool rules, depth markers, and any potential hazards. 39 
c. Pools must be equipped with basic lifesaving equipment, including life 40 
rings and reaching poles. 41 
d. Pool decks and surrounding areas must have non-slip surfaces. 42 
e. Pools must have properly fitted covers for all submerged suction 43 
outlets. 44 
f. Pools must be well-maintained with proper chemical balance and 45 
cleanliness to ensure safe and healthy swimming conditions. 46 
(2a) A public cold bath that meets all of the following requirements: 47 
a. Is a tub or tank that is used by the general public, one bather at a time, 48 
regardless of whether a fee is charged for its use. 49 
b. Contains chilled water that is (i) maintained at a temperature lower 50 
than 60 degrees Fahrenheit, (ii) no more than 180 gallons in volume, 51  General Assembly Of North Carolina 	Session 2025 
Page 32  House Bill 661-Second Edition 
and (iii) at a depth that allows the bather to maintain the bather's head 1 
above the water while in a seated position. 2 
c. Continuously filters and sanitizes the chilled water. 3 
(3) Therapeutic pools used in physical therapy programs operated by medical 4 
facilities licensed by the Department or operated by a licensed physical 5 
therapist, nor to therapeutic chambers drained, cleaned, and refilled after each 6 
individual use. 7 
(4) Floatation or sensory deprivation systems certified by the National Sanitation 8 
Foundation to meet the most current version of Standard 50 of the National 9 
Sanitation Foundation/American National Standards Institute. 10 
(b) The following definitions apply in this Part: 11 
(1) Artificial swimming lagoon. – Any body of water used for recreational 12 
purposes with more than 20,000 square feet of surface area, an artificial liner, 13 
and a method of disinfectant that results in a disinfectant residual in the 14 
swimming zone that is protective of the public health. 15 
(2) Public swimming pool. – Any structure, chamber, or tank containing an 16 
artificial body of water used by the public for swimming, diving, wading, 17 
recreation, or therapy, together with buildings, appurtenances, and equipment 18 
used in connection with the body of water, regardless of whether a fee is 19 
charged for its use. The term includes municipal, school, hotel, motel, 20 
apartment, boarding house, athletic club, or other membership facility pools 21 
and spas, spas operating for display at temporary events, and artificial 22 
swimming lagoons. 23 
(3) Sharing economy platform. – An online platform used to facilitate 24 
peer-to-peer transactions to acquire, provide, or share access to goods and 25 
services." 26 
SECTION 6.1.(b) This section becomes effective July 1, 2025. 27 
 28 
PART VII. SEVERABILITY CLAUSE AND EFFECT IVE DATE 29 
 30 
SEVERABILITY CLAUSE 31 
SECTION 7.1. If any section or provision of this act is declared unconstitutional or 32 
invalid by the courts, it does not affect the validity of this act as a whole or any part other than 33 
the part declared to be unconstitutional or invalid. 34 
 35 
EFFECTIVE DATE 36 
SECTION 7.2. Except as otherwise provided, this act is effective when it becomes 37 
law. 38