North Carolina 2025-2026 Regular Session

North Carolina Senate Bill S700 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	S 1
4		-	SENATE BILL 700
	3	+	S D
	4	+	SENATE BILL DRS15300-BGxfa-5
	5	+
5	6
6	7
7	8		Short Title: Create the Office of Engineering and Codes. (Public)
8	9		Sponsors: Senators Jarvis, Lazzara, and Sawrey (Primary Sponsors).
9		-	Referred to: ~~Rules and Operations of the Senate~~
10		-	~~March 26, 2025~~
11		-	~~S700 -v-1~~
	10	+	Referred to:
	11	+
	12	+	DRS15300 -BGxfa -5
12	13		A BILL TO BE ENTITLED 1
13	14		AN ACT TO CREATE THE OFFICE OF ENGINEERING AND CODES WITHIN THE 2
14	15		DEPARTMENT OF LABOR AND TRANSFER VARIOUS COUNCILS AND BOARDS 3
15	16		TO THE OFFICE OF ENGINEERING AND CODES . 4
16	17		The General Assembly of North Carolina enacts: 5
17	18		6
18	19		PART I. CREATION OF THE OFFICE OF ENGINEERING AND CODES AND 7
19	20		CONFORMING CHANGES TO THE OFFICE OF THE STATE FIRE MARSHAL 8
20	21		SECTION 1.1.(a) Chapter 95 of the General Statutes is amended by adding a new 9
21	22		article to read: 10
22	23		"Article 24. 11
23	24		"Office of Engineering and Codes. 12
24	25		"§ 95-280. Office of Engineering and Codes. 13
25	26		(a) The Office of Engineering and Codes is created within the Department of Labor and 14
26	27		the Office shall exercise its powers and duties independently of the Department. The Department 15
27	28		of Labor shall provide clerical and professional services to the Office of Engineering and Codes 16
28	29		for the purpose of carrying out its powers and duties under this Article and the laws of this State. 17
29	30		For purposes of this section, the phrase "clerical and professional services" includes, but is not 18
30	31		limited to, budgetary, human resources, information technology, and legal. 19
31	32		(b) The Office of Engineering and Codes shall be responsible for all of the following: 20
32	33		(1) Building Code Council and Residential Code Council, Article 9 of Chapter 21
33	34		143 of the General Statutes. 22
34	35		(2) North Carolina Manufactured Housing Board – Manufactured Home 23
35	36		Warranties, Article 9A of Chapter 143 of the General Statutes. 24
36	37		(3) Uniform Standards Code for Manufactured Homes, Article 9B of Chapter 143 25
37	38		of the General Statutes. 26
38	39		(4) North Carolina Code Officials Qualification Board, Article 9C of Chapter 143 27
39	40		of the General Statutes. 28
40	41		(5) North Carolina Home Inspector Licensure Board, Article 9F of Chapter 143 29
41	42		of the General Statutes. 30
42	43		(6) Engineering and Building Codes Division. 31
43	44		(c) The "State Engineer," as that term is used in this Article and elsewhere in the General 32
44	45		Statutes, shall be the head of the Office of Engineering and Codes and shall be a person appointed 33
45	46		by the Commissioner of Labor subject to confirmation by the General Assembly by joint 34
46	47		resolution. The State Engineer shall be a person other than the Commissioner of Labor and shall 35
47		-	serve a three-year term. If a vacancy arises or exists pursuant to this subsection when the General 36 General Assembly Of North Carolina Session 2025
48		-	Page 2 Senate Bill 700-First Edition
	48	+	serve a three-year term. If a vacancy arises or exists pursuant to this subsection when the General 36
	49	+	FILED SENATE
	50	+	Mar 25, 2025
	51	+	S.B. 700
	52	+	PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	53	+	Page 2 DRS15300-BGxfa-5
49	54		Assembly is not in session, the Commissioner of Labor may appoint a State Engineer to serve on 1
50	55		an interim basis pending confirmation by the General Assembly. For the purposes of this 2
51	56		subsection, the General Assembly is not in session only (i) prior to convening of the Regular 3
52	57		Session, (ii) during any adjournment of the Regular Session for more than 10 days, and (iii) after 4
53	58		sine die adjournment of the Regular Session. 5
54	59		(d) The salary of the State Engineer shall be set by the General Assembly in the Current 6
55	60		Operations Appropriations Act. In addition to the salary set by the General Assembly in the 7
56	61		Current Operations Appropriations Act, the State Engineer shall receive as longevity pay in an 8
57	62		amount equal to four and eight-tenths percent (4.8%) of the annual salary set forth in the Current 9
58	63		Operations Appropriations Act payable monthly after five years of service, and nine and 10
59	64		six-tenths percent (9.6%) after 10 years of service. For purposes of this subsection, the term 11
60	65		"service" means service as the State Engineer. 12
61	66		"§ 95-281. Execution of laws; adopt rules to enforce laws. 13
62	67		The State Engineer shall see that all laws the State Engineer is responsible for administering 14
63	68		are faithfully executed and, to that end, the State Engineer is authorized to adopt rules in 15
64	69		accordance with Chapter 150B of the General Statutes in order to enforce, carry out, and make 16
65	70		effective the provisions of those laws. The State Engineer is also authorized to adopt such further 17
66	71		rules not contrary to those laws that will prevent persons subject to the State Engineer's regulatory 18
67	72		authority from engaging in practices injurious to the public. 19
68	73		"§ 95-282. Public office; inspection of records. 20
69	74		The Office of Engineering and Codes shall be a public office and the records, reports, books, 21
70	75		and papers thereof on file therein shall be accessible to the inspection of the public, except that 22
71	76		the records compiled as a part of an investigation for the crimes, shall not be considered as public 23
72	77		records and may be made available to the public only upon an order of a court of competent 24
73	78		jurisdiction. Provided that such records shall upon request be made available to the district 25
74	79		attorney of any district if the same concerns persons or investigations in the district attorney's 26
75	80		district. 27
76	81		"§ 95-283. Hearings and investigations. 28
77	82		All hearings and investigations undertaken by the Office of Engineering and Codes as 29
78	83		required by this Article may be conducted by the State Engineer personally or by one or more 30
79	84		employees in the Office of Engineering and Codes or, if requested by the State Engineer, one or 31
80	85		more employees in the Department of Labor. If the State Engineer or any investigator appointed 32
81	86		to conduct the investigations is of the opinion that there is evidence to charge any person or 33
82	87		persons with a criminal violation, the State Engineer may arrest with warrant or cause the person 34
83	88		or persons to be arrested. All hearings shall, unless otherwise specifically provided, be held in 35
84	89		accordance with this Article and Article 3A of Chapter 150B of the General Statutes and at a 36
85	90		time and place designated in a written notice given by the State Engineer to the person cited to 37
86	91		appear. The notice shall state the subject of inquiry and the specific charges, if any. 38
87	92		"§ 95-284. Designated hearing officers. 39
88	93		In any contested case involving the Office of Engineering and Codes, the State Engineer may 40
89	94		designate a member of the State Engineer's staff to serve as a hearing officer. When the State 41
90	95		Engineer is unable or elects not to hear a contested case and elects not to designate a hearing 42
91	96		officer to hear a contested case, the State Engineer shall apply to the Director of the Office of 43
92	97		Administrative Hearings for the designation of an administrative law judge to preside at the 44
93	98		hearing of a contested case. Upon receipt of the application, the Director shall, without undue 45
94	99		delay, assign an administrative law judge to hear the case. 46
95	100		"§ 95-285. Civil penalties or restitution for violations; administrative procedure. 47
96	101		(a) This section applies to any person who is subject to licensure by the Office of 48
97	102		Engineering and Codes. 49
98	103		(b) Whenever the State Engineer finds a violation of any of the provisions of this Article, 50
99	104		the State Engineer may, in addition to or instead of suspending or revoking the license issued by 51 General Assembly Of North Carolina Session 2025
100		-	~~Senate Bill 700-First Edition~~ Page 3
	105	+	DRS15300-BGxfa-5 Page 3
101	106		the State Engineer, order the payment of a monetary penalty as provided in subsection (c) of this 1
102	107		section or petition the Superior Court of Wake County for an order directing payment of 2
103	108		restitution as provided in subsection (d) of this section, or both. Each day during which a violation 3
104	109		occurs constitutes a separate violation. 4
105	110		(c) If the State Engineer orders the payment of a monetary penalty pursuant to subsection 5
106	111		(b) of this section, the penalty shall not be less than one hundred dollars ($100.00) nor more than 6
107	112		one thousand dollars ($1,000). In determining the amount of the penalty, the State Engineer shall 7
108	113		consider the degree and extent of harm caused by the violation, the amount of money that inured 8
109	114		to the benefit of the violator as a result of the violation, whether the violation was committed 9
110	115		willfully, and the prior record of the violator in complying or failing to comply with laws, rules, 10
111	116		or orders applicable to the violator. The clear proceeds of the penalty shall be remitted to the 11
112	117		Civil Penalty and Forfeiture Fund in accordance with G.S. 115C-457.2. Payment of the civil 12
113	118		penalty under this section shall be in addition to payment of any other penalty for a violation of 13
114	119		the criminal laws of this State. 14
115	120		(d) Upon petition of the State Engineer, the court may order the person who committed a 15
116	121		violation of this Article to make restitution in an amount that would make whole any person 16
117	122		harmed by the violation. The petition may be made at any time and also in any appeal of the State 17
118	123		Engineer's order. Restitution to any State agency for extraordinary administrative expenses 18
119	124		incurred in the investigation and hearing of the violation may also be ordered by the court in such 19
120	125		amount that would reimburse the agency for the expenses. 20
121	126		(e) Nothing in this section shall prevent the State Engineer from negotiating a mutually 21
122	127		acceptable agreement with any person as to the status of the person's license or as to any civil 22
123	128		penalty or restitution. 23
124	129		(f) Unless otherwise specifically provided for, all administrative proceedings under this 24
125	130		Article are governed by Chapter 150B of the General Statutes. Appeals of the State Engineer's 25
126	131		orders under this section shall be governed by G.S. 95-286. 26
127	132		"§ 95-286. Court review of orders and decisions. 27
128	133		(a) Any order or decision made, issued, or executed by the State Engineer is subject to 28
129	134		review in the Superior Court of Wake County on petition by any person aggrieved filed within 29
130	135		30 days from the date of the delivery of a copy of the order or decision made by the State Engineer 30
131	136		upon the person. A copy of the petition for review as filed with and certified by the clerk of the 31
132	137		Superior Court of Wake County shall be served upon the State Engineer within five days after 32
133	138		the filing thereof. If the petition for review is not filed within 30 days, the parties aggrieved shall 33
134	139		be deemed to have waived the right to have the merits of the order or decision reviewed and there 34
135	140		shall be no trial of the merits thereof by any court to which application may be made by petition 35
136	141		or otherwise, to enforce or restrain the enforcement of the same. 36
137	142		(b) The State Engineer shall within 30 days, unless the time is extended by order of court, 37
138	143		after the service of the copy of the petition for review as provided in subsection (a) of this section, 38
139	144		prepare and file with the clerk of the Superior Court of Wake County a complete transcript of the 39
140	145		record of the hearing, if any, and a true copy of the order or decision duly certified. The order or 40
141	146		decision of the State Engineer if supported by substantial evidence shall be presumed to be 41
142	147		correct and proper. The court may change the place of hearing (i) upon consent of the parties, (ii) 42
143	148		when the convenience of witnesses and the ends of justice would be promoted by the change, or 43
144	149		(iii) when the judge has at any time been interested as a party or counsel. The cause shall be heard 44
145	150		by the trial judge as a civil case upon transcript of the record for review of findings of fact and 45
146	151		errors of law only. It shall be the duty of the trial judge to hear and determine the petition with 46
147	152		all convenient speed and, to this end, the cause shall be placed on the calendar for the next 47
148	153		succeeding term for hearing ahead of all other cases except those already given priority by law. 48
149	154		If, on the hearing before the trial judge, it shall appear that the record filed by the State Engineer 49
150	155		is incomplete, the trial judge may, by appropriate order, direct the State Engineer to certify any 50 General Assembly Of North Carolina Session 2025
151		-	Page 4 ~~Senate Bill 700-First Edition~~
	156	+	Page 4 DRS15300-BGxfa-5
152	157		or all parts of the record omitted. The trial judge shall have jurisdiction to affirm or to set aside 1
153	158		the order or decision of the State Engineer and to restrain the enforcement thereof. 2
154	159		(c) Appeals from all final orders and judgments entered by the superior court in reviewing 3
155	160		the orders and decisions of the State Engineer may be taken to the appellate division of the 4
156	161		General Court of Justice by any party to the action as in other civil cases. 5
157	162		(d) The commencement of proceedings under this section shall not operate as a stay of 6
158	163		the State Engineer's order or decision, unless otherwise ordered by the court. 7
159	164		"§ 95-287. Original documents and certified copies as evidence. 8
160	165		Every document executed by the State Engineer, in pursuance of any authority conferred on 9
161	166		the State Engineer by law and sealed with the seal of office, may be used as evidence and may 10
162	167		be recorded in the proper recording offices, in the same manner and with like effect as a deed 11
163	168		regularly acknowledged or proved before an officer authorized by law to take the probate of 12
164	169		deeds, and all copies of papers in the Office of Engineering and Codes certified by the State 13
165	170		Engineer and authenticated by the official seal shall be evidence as the original. 14
166	171		"§ 95-288. Court appearances. 15
167	172		Whenever the State Engineer or any employee of the Office of Engineering and Codes is 16
168	173		requested or subpoenaed to testify as an expert witness in any civil or administrative action, the 17
169	174		party making the request or filing the subpoena and on whose behalf the testimony is given shall, 18
170	175		upon receiving a statement of the cost from the State Engineer, reimburse the Office of 19
171	176		Engineering and Codes for the actual time and expenses incurred by the State Engineer in 20
172	177		connection with the testimony. 21
173	178		"§ 95-289. Seal. 22
174	179		The State Engineer, with the approval of the Governor, shall devise a seal, with suitable 23
175	180		inscription, for the office, a description of which, with the certificate of approval by the Governor, 24
176	181		shall be filed in the Office of the Secretary of State, with an impression thereof, which seal shall 25
177	182		thereupon become the seal of the Office of Engineering and Codes. The seal may be renewed 26
178	183		whenever necessary. 27
179	184		"§ 95-290. Oaths. 28
180	185		The State Engineer, or the State Engineer's designee, in the Office of Engineering and Codes 29
181	186		shall administer all oaths required in the discharge of the State Engineer's official duty. 30
182	187		"§ 95-291. Manufactured housing; restraining orders; criminal convictions; license 31
183	188		surrenders. 32
184	189		(a) Restraining Order. – Whenever it appears to the State Engineer that any person has 33
185	190		violated, is violating, or threatens to violate any provision of Article 9A of Chapter 143 of the 34
186	191		General Statutes, North Carolina Manufactured Housing Board – Manufactured Home 35
187	192		Warranties, the State Engineer may apply to the superior court of any county in which the 36
188	193		violation has occurred, is occurring, or may occur for a restraining order and injunction to restrain 37
189	194		violation. If upon application the court finds that any provision of Article 9A of Chapter 143 of 38
190	195		the General Statutes has been violated, is being violated, or a violation thereof is threatened, the 39
191	196		court shall issue an order restraining and enjoining such violations and relief may be granted 40
192	197		regardless of whether criminal prosecution is instituted under any provision of law. 41
193	198		(b) Criminal Conviction. – The conviction in any court of competent jurisdiction of any 42
194	199		licensee for any criminal violation of Article 9A of Chapter 143 of the General Statutes 43
195	200		automatically has the effect of suspending the license of that person until the license is reinstated 44
196	201		by the North Carolina Manufactured Housing Board. As used in this subsection, "conviction" 45
197	202		includes an adjudication of guilt, a plea of guilty, and a plea of nolo contendere. 46
198	203		(c) License Surrenders. – When a person or entity licensed under Article 9A of Chapter 47
199	204		143 of the General Statutes is accused of any act, omission, or misconduct that would subject the 48
200	205		licensee to suspension or revocation, the licensee, with the consent and approval of the State 49
201	206		Engineer, may surrender the license for a period of time established by the State Engineer. A 50 General Assembly Of North Carolina Session 2025
202		-	~~Senate Bill 700-First Edition~~ Page 5
	207	+	DRS15300-BGxfa-5 Page 5
203	208		person or entity who surrenders a license shall not thereafter be eligible for or submit any 1
204	209		application for licensure during the period of license surrender. 2
205	210		"§ 95-292. Notification of criminal convictions and changes of address; service of notice. 3
206	211		(a) Every applicant for a license issued by the State Engineer shall inform the State 4
207	212		Engineer of the applicant's residential address and provide the applicant's email address to which 5
208	213		the State Engineer can send electronic notifications and other messages. Every licensee shall give 6
209	214		written notification to the State Engineer of any change of the licensee's residential or email 7
210	215		address within 10 business days after the licensee moves into the licensee's new residence or 8
211	216		obtains a different email address. This requirement applies if the change of residential address is 9
212	217		by governmental action and there has been no actual change of residence location, in which case 10
213	218		the licensee shall notify the State Engineer within 10 business days after the effective date of the 11
214	219		change. A violation of this subsection is not a ground for revocation, suspension, or nonrenewal 12
215	220		of the license or for the imposition of any other penalty by the State Engineer, though a licensee 13
216	221		who violates this subsection shall pay an administrative fee of fifty dollars ($50.00) to the State 14
217	222		Engineer. Notification under this subsection may be accomplished by submitting written 15
218	223		notification directly to the State Engineer or by using any online services approved by the State 16
219	224		Engineer for this purpose. 17
220	225		(b) If a licensee is convicted in any court of competent jurisdiction for any crime or 18
221	226		offense other than a motor vehicle infraction, the licensee shall notify the State Engineer in 19
222	227		writing of the conviction within 10 days after the date of the conviction. As used in this 20
223	228		subsection, "conviction" includes an adjudication of guilt, a plea of guilty, or a plea of nolo 21
224	229		contendere. 22
225	230		(c) Notwithstanding any other provision of law, whenever the State Engineer is 23
226	231		authorized or required to give any notice under this Article, the notice may be given personally 24
227	232		or by sending the notice by first-class mail to the licensee at the address that the licensee has 25
228	233		provided to the State Engineer under subsection (a) of this section. The giving of notice by mail 26
229	234		under this subsection is complete upon the expiration of four days after the deposit of the notice 27
230	235		in the post office. Proof of the giving of notice by mail may be made by the certificate of any 28
231	236		employee of the Department of Labor. 29
232	237		"§ 95-293. Advisory committees. 30
233	238		The State Engineer may create and appoint committees, each of which shall consist of no 31
234	239		more than 13 members unless otherwise provided by law. The members of any committee shall 32
235	240		serve at the pleasure of the State Engineer and may be paid per diem and necessary travel and 33
236	241		subsistence expenses within the limits of appropriations made by the General Assembly and in 34
237	242		accordance with G.S. 138-5. Per diem, travel, and subsistence payments to members of 35
238	243		committees that are created in connection with federal programs shall be paid from federal funds 36
239	244		unless otherwise provided by law. For purposes of this section, the term "committee" means a 37
240	245		collective body that consults with and advises the State Engineer or the State Engineer's designee 38
241	246		in detailed technical areas or as representative of citizen advice in specific areas of interest. 39
242	247		"§ 95-294. State Engineer to supervise local inspectors. 40
243	248		The State Engineer shall exercise general supervision over local inspectors or local 41
244	249		investigators related to matters under the jurisdiction of the Office of Engineering and Codes, 42
245	250		except as otherwise provided by law. Whenever the State Engineer has reason to believe that the 43
246	251		local inspectors or local investigators are not doing their duty, the State Engineer, or the State 44
247	252		Engineer's designee, shall make special trips of inspection or investigation and take proper steps 45
248	253		to have all the provisions of the law relative to the inspection or investigation enforced." 46
249	254		SECTION 1.1.(b) G.S. 58-78A-1, as amended by Section 5.2(p) of S.L. 2024-49, 47
250	255		reads as rewritten: 48
251	256		"§ 58-78A-1. Office of the State Fire Marshal. 49
252	257		… 50
253	258		(b) The Office of the State Fire Marshal shall be responsible for all of the following: 51 General Assembly Of North Carolina Session 2025
254		-	Page 6 ~~Senate Bill 700-First Edition~~
	259	+	Page 6 DRS15300-BGxfa-5
255	260		(1) State Fire and Rescue Commission, Article 78 of this Chapter. 1
256	261		(2) Investigation of Fires and Inspection of Premises, Article 79 of this Chapter. 2
257	262		(3) State Volunteer Fire Department, Article 80 of this Chapter. 3
258	263		(4) Pyrotechnics Training and Permitting, Article 82A of this Chapter. 4
259	264		(5) Management of Aqueous Film-Forming Foams, Article 82B of this Chapter. 5
260	265		(6) Local Firefighters' Relief Funds, Article 84 of this Chapter. 6
261	266		(7) Statewide Firefighters' Relief Fund, Article 85 of this Chapter. 7
262	267		(8) State Fire Protection Grant Fund, Article 85A of this Chapter. 8
263	268		(9) North Carolina Firefighters' and Rescue Squad Workers' Pension Fund, 9
264	269		Article 86 of this Chapter. 10
265	270		(9a) Firefighters' Cancer Insurance Program, Article 86A of Chapter 58 of the 11
266	271		General Statutes. 12
267	272		(10) Volunteer Safety Workers Assistance, Article 87 of this Chapter. 13
268	273		(11) Rescue Squad Workers' Relief Fund, Article 88 of this Chapter. 14
269	274		(12) Building Code Council and Residential Code Council, Article 9 of Chapter 15
270	275		143 of the General Statutes. 16
271	276		(13) North Carolina Manufactured Housing Board-Manufactured Home 17
272	277		Warranties, [Article 9A of Chapter 143 of the General Statutes]. 18
273	278		(14) Uniform Standards Code for Manufactured Homes, Article 9B of this Chapter 19
274	279		[Article 9B of Chapter 143 of the General Statutes]. 20
275	280		(15) North Carolina Code Officials Qualification Board, Article 9C of this Chapter 21
276	281		[Article 9C of Chapter 143 of the General Statutes]. 22
277	282		(16) North Carolina Home Inspector Licensure Board, Article 9F of this Chapter 23
278	283		[Article 9F of Chapter 143 of the General Statutes]. 24
279	284		(17) Engineering and Building Codes Division in the Department of Insurance. 25
280	285		(18) Risk Management Division in the Department of Insurance. 26
281	286		(19) Community Risk Reduction Division in the Department of Insurance. 27
282	287		(20) Ratings and Inspections. 28
283	288		(21) Grants and Governmental Services. 29
284	289		…." 30
285	290		SECTION 1.2. G.S. 143A-78 is repealed. 31
286	291		SECTION 1.3. G.S. 58-78A-12 is repealed. 32
287	292		33
288	293		PART II. INSURANCE REGULATORY FUND CHANGES RELATED TO OFFICE OF 34
289	294		ENGINEERING AND CODES CREATION 35
290	295		SECTION 2.1. G.S. 58-6-25 reads as rewritten: 36
291	296		"§ 58-6-25. Insurance regulatory charge. 37
292	297		(a) Charge Levied. – There is levied on each insurance company, other than a captive 38
293	298		insurance company, an annual charge for the purposes stated in subsection (d) of this section. 39
294	299		The charge levied in this section is in addition to all other fees and taxes. The percentage rate of 40
295	300		the charge is established pursuant to subsection (b) of this section and is applied to the company's 41
296	301		premium tax liability for the taxable year. In determining an insurance company's premium tax 42
297	302		liability for a taxable year, the following shall be disregarded: 43
298	303		(1) Additional taxes imposed by G.S. 105-228.8. 44
299	304		(2) Repealed by Session Laws 2008-134, s. 67(a), as amended by Session Laws 45
300	305		2009-445, s. 44, effective for taxable years beginning on or after January 1, 46
301	306		2008. 47
302	307		(3) Any tax credits for guaranty or solvency fund assessments under 48
303	308		G.S. 105-228.5A or G.S. 97-133(a). 49
304	309		(4) Any tax credits allowed under Chapter 105 of the General Statutes other than 50
305	310		tax payments made by or on behalf of the taxpayer. 51 General Assembly Of North Carolina Session 2025
306		-	~~Senate Bill 700-First Edition~~ Page 7
	311	+	DRS15300-BGxfa-5 Page 7
307	312		(b) Rates. – The rate of the charge for each taxable year shall be six and one-half percent 1
308	313		(6.5%). When the Department prepares its budget request for each upcoming fiscal year, the 2
309	314		Department shall propose a percentage rate of the charge levied in this section. The Governor 3
310	315		shall submit that proposed rate to the General Assembly each fiscal year. It is the intent of the 4
311	316		General Assembly that the percentage rate not exceed the rate necessary to generate funds 5
312	317		sufficient to defray the estimated cost of the operations of the Department for each upcoming 6
313	318		fiscal year, including a reasonable margin for a reserve that shall be used to provide for 7
314	319		unanticipated expenditures requiring a budget adjustment as authorized by G.S. 143C-6-4. In 8
315	320		calculating the amount of the reserve, the General Assembly shall consider all relevant factors 9
316	321		that may affect the cost of operating the Department or a possible unanticipated increase or 10
317	322		decrease in North Carolina premiums or other charge revenue. 11
318	323		(c) Returns; When Payable. – The charge levied on each insurance company is payable 12
319	324		at the time the insurance company remits its premium tax. If the insurance company is required 13
320	325		to remit installment payments of premiums tax under G.S. 105-228.5 for a taxable year, it shall 14
321	326		also remit installment payments of the charge levied in this section for that taxable year at the 15
322	327		same time and on the same basis as the premium tax installment payments. Each installment 16
323	328		payment shall be equal to at least thirty-three and one-third percent (33.3%) of the insurance 17
324	329		company's regulatory charge liability incurred in the immediately preceding taxable year. 18
325	330		Every insurance company shall, on or before the date the charge levied in this section is due, 19
326	331		file a return on a form prescribed by the Secretary of Revenue. The return shall state the 20
327	332		company's total North Carolina premiums or presumed premiums for the taxable year and shall 21
328	333		be accompanied by any supporting documentation that the Secretary of Revenue may by rule 22
329	334		require. 23
330	335		(d) Use of Proceeds. – The Insurance Regulatory Fund is created as an interest-bearing 24
331	336		special fund to which the proceeds of the charge levied in this section and all fees collected under 25
332	337		Articles 69 through 71 of this Chapter and under Articles 9 and 9C of Chapter 143 of the General 26
333	338		Statutes shall be credited. Moneys in the Fund may be spent only pursuant to appropriation by 27
334	339		the General Assembly, and the Fund is subject to the provisions of the State Budget Act. All 28
335	340		money credited to the Fund shall be used to reimburse the General Fund for the following: 29
336	341		(1) Money appropriated to the Department of Insurance to pay its expenses 30
337	342		incurred in regulating the insurance industry, including the captive insurance 31
338	343		industry, and other industries in this State. 32
339	344		(2) Money appropriated to State agencies to pay the expenses incurred in 33
340	345		regulating the insurance industry, in certifying statewide data processors 34
341	346		under Article 11A of Chapter 131E of the General Statutes, and in purchasing 35
342	347		reports of patient data from statewide data processors certified under that 36
343	348		Article. 37
344	349		(3) Money appropriated to the Department of Revenue to pay the expenses 38
345	350		incurred in collecting and administering the taxes on insurance companies 39
346	351		levied in Article 8B of Chapter 105 of the General Statutes. 40
347	352		(4) Money appropriated for the office of Health Insurance Smart NC under 41
348	353		G.S. 143-730 to pay the actual costs of administering the program. 42
349	354		(5) Money appropriated to the Department of Insurance for the implementation 43
350	355		and administration of independent external review procedures required by Part 44
351	356		4 of Article 50 of this Chapter. 45
352	357		(6) Money appropriated to the Department of Justice to pay its expenses incurred 46
353	358		in representing the Department of Insurance in its regulation of the insurance 47
354	359		industry and other related programs and industries in this State that fall under 48
355	360		the jurisdiction of the Department of Insurance. 49
356	361		(6a) Money appropriated to the Department of Justice to pay its expenses incurred 50
357	362		in representing the Department of Labor in related programs and industries in 51 General Assembly Of North Carolina Session 2025
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359	364		this State that fall under the jurisdiction of the Office of Engineering and 1
360	365		Codes. 2
361	366		(7) Money appropriated to the Department of Insurance to pay its expenses 3
362	367		incurred in connection with providing staff support for State boards and 4
363	368		commissions, including the North Carolina Manufactured Housing Board, 5
364	369		State Fire and Rescue Commission, North Carolina Building Code Council, 6
365	370		North Carolina Code Officials Qualification Board, Public Officers and 7
366	371		Employees Liability Insurance Commission, North Carolina Home Inspector 8
367	372		Licensure Board, and the Volunteer Safety Workers' Compensation Board. 9
368	373		(7a) Money appropriated to the Department of Labor to pay its expenses incurred 10
369	374		in connection with providing staff support for State boards, councils, and 11
370	375		divisions, that fall under the jurisdiction of the Office of Engineering and 12
371	376		Codes. 13
372	377		(8) Money appropriated to the Department of Insurance to pay its expenses 14
373	378		incurred in connection with continuing education programs under Article 33 15
374	379		of this Chapter and in connection with the purchase and sale of copies of the 16
375	380		North Carolina State Building Code.Chapter. 17
376	381		(8a) Money appropriated to the Department of Labor to pay its expenses incurred 18
377	382		in connection with continuing education programs and the purchase and sale 19
378	383		of copies of the North Carolina State Building Code. 20
379	384		(9) Money appropriated to the Department of Insurance for the regulation of the 21
380	385		professional employer organization industry pursuant to Article 89A of 22
381	386		Chapter 58 of the General Statutes.this Chapter. 23
382	387		(10) Money appropriated to the Department of Insurance to pay its expenses 24
383	388		incurred in promoting North Carolina's captive insurance industry. 25
384	389		(11) Money appropriated to the North Carolina Industrial Commission for support 26
385	390		of the Commission's duties excepted from its statutory fee authority as set 27
386	391		forth in G.S. 97-73(e). 28
387	392		(12) Money appropriated to the North Carolina Department of Labor to pay its 29
388	393		expenses incurred in carrying out its powers and duties pursuant to Article 24 30
389	394		of Chapter 95 of the General Statutes. 31
390	395		(e) Definitions. – The following definitions apply in this section: 32
391	396		(1) Repealed by Session Laws 2003-284, s. 43.2, effective for taxable years 33
392	397		beginning on or after January 1, 2004. 34
393	398		(1a) Captive insurance company. – Defined in G.S. 105-228.3. 35
394	399		(2) Insurance company. – A company or prepaid health plan, as defined in 36
395	400		G.S. 58-93-5, that pays the gross premiums tax levied in G.S. 105-228.5 and 37
396	401		G.S. 105-228.8. 38
397	402		(3) Insurer. – Defined in G.S. 105-228.3." 39
398	403		40
399	404		PART III. BUILDING CODE COUNCIL AND RESIDENTIAL CODE COUNCIL 41
400	405		CONFORMING CHANGES 42
401	406		SECTION 3.1. G.S. 143-137, as amended by Section 5.1(c) of S.L. 2024-49, reads 43
402	407		as rewritten: 44
403	408		"§ 143-137. Organization of Building Code Council; rules; meetings; staff; fiscal affairs. 45
404	409		(a) First Meeting; Organization; Rules. – Within 30 days after its appointment, the 46
405	410		Building Code Council shall meet on call of the State Fire Marshal. State Engineer, of the Office 47
406	411		of Engineering and Codes. The Council shall adopt rules as it may deem necessary for the proper 48
407	412		discharge of its duties. The chair may establish and appoint members to committees as the work 49
408	413		of the Council may require. In addition, the chair may establish and appoint ad hoc code revision 50
409	414		committees to consider and prepare revisions and amendments to the Code volumes, as specified 51 General Assembly Of North Carolina Session 2025
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411	416		in G.S. 143-138(a). Each ad hoc committee shall consist of members of the Council, licensed 1
412	417		contractors, and design professionals most affected by the Code volume for which the ad hoc 2
413	418		committee is responsible, and members of the public. Ad hoc committees shall meet upon the 3
414	419		call of their respective chairs and shall report their recommendations to the Council. 4
415	420		… 5
416	421		(c) Staff. – Personnel of the Division of Engineering of the Department of Insurance 6
417	422		Engineering and Building Codes Division of the Office of Engineering and Codes, shall serve as 7
418	423		staff for the Council, and have the following duties: 8
419	424		(1) Keeping an accurate and complete record of all meetings, hearings, 9
420	425		correspondence, laboratory studies, and technical work performed by or for 10
421	426		the Council, and making these records available for public inspection at all 11
422	427		reasonable times. 12
423	428		(2) Handling correspondence for the Council. 13
424	429		(d) Fiscal Affairs of the Council. – All funds for the operations of the Council and its 14
425	430		staff shall be appropriated to the Department of Insurance Department of Labor for the use of the 15
426	431		Council. All such funds shall be held in a separate or special account on the books of the 16
427	432		Department of Insurance, Department of Labor, with a separate financial designation or code 17
428	433		number to be assigned by the Department of Insurance Department of Labor or its agent. 18
429	434		Expenditures for staff salaries and operating expenses shall be made in the same manner as the 19
430	435		expenditure of any other Department of Insurance Department of Labor funds. The Office of the 20
431	436		State Fire Marshal Office of Engineering and Codes may hire such additional personnel as may 21
432	437		be necessary to handle the work of the Building Code Council, within the limits of funds 22
433	438		appropriated to the Department of Insurance Department of Labor for the Council and with the 23
434	439		approval of the Council. 24
435	440		…." 25
436	441		SECTION 3.2. G.S. 143-137.1, as amended by Section 5.2(b) of S.L. 2024-49, reads 26
437	442		as rewritten: 27
438	443		"§ 143-137.1. Organization of Residential Code Council; rules; meetings; staff; fiscal 28
439	444		affairs; quorum. 29
440	445		(a) First Meeting; Organization; Rules. – Within 30 days after its appointment, the 30
441	446		Residential Code Council shall meet on call of the State Fire Marshal.State Engineer, of the 31
442	447		Office of Engineering and Codes. The Council shall adopt rules it may deem necessary for the 32
443	448		proper discharge of its duties. The chair may establish and appoint members to any committees 33
444	449		the work of the Council may require. In addition, the chair may establish and appoint ad hoc code 34
445	450		revision committees to consider and prepare revisions and amendments to the North Carolina 35
446	451		Residential Code. Each ad hoc committee shall consist of members of the Council, licensed 36
447	452		contractors, and design professionals most affected by the North Carolina Residential Code, and 37
448	453		members of the public. Committees shall meet upon the call of their respective chairs and shall 38
449	454		report their recommendations to the Council. 39
450	455		… 40
451	456		(c) Staff. – Personnel of the Division of Engineering of the Department of Insurance 41
452	457		Engineering and Building Codes Division of the Office of Engineering and Codes, shall serve as 42
453	458		staff for the Residential Code Council, and have the following duties: 43
454	459		(1) Keeping an accurate and complete record of all meetings, hearings, 44
455	460		correspondence, laboratory studies, and technical work performed by or for 45
456	461		the Council, and making these records available for public inspection at all 46
457	462		reasonable times. 47
458	463		(2) Handling correspondence for the Council. 48
459	464		(d) Fiscal Affairs of the Council. – All funds for the operations of the Residential Code 49
460	465		Council and its staff shall be appropriated to the Department of Insurance Department of Labor 50
461	466		for the use of the Council. These funds shall be held in a separate or special account on the books 51 General Assembly Of North Carolina Session 2025
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463	468		of the Department of Insurance, Department of Labor with a separate financial designation or 1
464	469		code number to be assigned by the Department of Insurance Department of Labor or its agent. 2
465	470		Expenditures for staff salaries and operating expenses shall be made in the same manner as the 3
466	471		expenditure of any other Department of Insurance Department of Labor funds. The Department 4
467	472		of Insurance Department of Labor may hire any additional personnel necessary to handle the 5
468	473		work of the Council, within the limits of funds appropriated for the Council and with the approval 6
469	474		of the Council. 7
470	475		…." 8
471	476		SECTION 3.3.(a) G.S. 143-138, as amended by Section 2.1 and 5.2(c) of S.L. 9
472	477		2024-49, reads as rewritten: 10
473	478		"§ 143-138. North Carolina State Building Code. 11
474	479		... 12
475	480		(a1) Additional Adoption Requirements. – 13
476	481		(1) The Building Code Council or Residential Code Council shall request the 14
477	482		Office of State Budget and Management to prepare a fiscal note for a proposed 15
478	483		Code change that has a substantial economic impact, as defined in 16
479	484		G.S. 150B-21.4(b1), or that increases the cost of residential housing by eighty 17
480	485		dollars ($80.00) or more per housing unit. The change can become effective 18
481	486		only in accordance with G.S. 143-138(d). Neither the Office of the State Fire 19
482	487		Marshal Office of Engineering and Codes, nor the Councils shall be required 20
483	488		to expend any monies to pay for the preparation of any fiscal note under this 21
484	489		section by any person outside of the Office of the State Fire Marshal Office of 22
485	490		Engineering and Codes, or Councils unless the Office or Councils contract 23
486	491		with a third-party vendor to prepare the fiscal note. 24
487	492		(2) The responsible Council shall conduct a cost-benefit analysis for all proposed 25
488	493		changes considered after January 1, 2018, to the North Carolina Energy 26
489	494		Conservation Code. 27
490	495		… 28
491	496		(d) Amendments of the Code. – The Building Code Council and Residential Code 29
492	497		Council may periodically revise and amend those parts of the North Carolina State Building Code 30
493	498		for which those Councils are responsible, either on their own motion or upon application from 31
494	499		any citizen, State agency, or political subdivision of the State. In addition to the periodic revisions 32
495	500		or amendments made by the responsible Council, the Residential Code Council shall perform a 33
496	501		comprehensive review and revise or amend the North Carolina Residential Code only every six 34
497	502		years, to become effective the first day of January of the following year, with at least six months 35
498	503		between adoption and effective date. The first six-year revision by the Residential Council under 36
499	504		this subsection shall be adopted to become effective January 1, 2031, and every six years 37
500	505		thereafter. After its appointment pursuant to G.S. 143-136.1, the Residential Code Council shall 38
501	506		review the North Carolina Energy Conservation Code, the North Carolina Fuel Gas Code, and 39
502	507		the North Carolina Mechanical Code as applicable to residential construction and may amend 40
503	508		those codes and any relevant chapters of the North Carolina Residential Code, affected by that 41
504	509		review, by January 1, 2026. Following the adoption of amendments to the North Carolina 42
505	510		Residential Code affected by that review, the North Carolina Residential Code shall also be 43
506	511		subject to the first six-year revision under this subsection. In adopting any amendment, the 44
507	512		Building Code Council and Residential Code Council shall comply with the same procedural 45
508	513		requirements and the same standards for adoption of the Code. The Building Code Council and 46
509	514		Residential Code Council, through the Office of the State Fire Marshal, Office of Engineering 47
510	515		and Codes, shall publish in the North Carolina Register all appeal decisions made by the 48
511	516		responsible Code Council and all formal opinions at least semiannually. The Building Code 49
512	517		Council and Residential Code Council, through the Office of the State Fire Marshal, Office of 50
513	518		Engineering and Codes, shall also publish at least semiannually in the North Carolina Register a 51 General Assembly Of North Carolina Session 2025
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515	520		statement providing the accurate website address and information on how to find additional 1
516	521		commentary and interpretation of the Code. 2
517	522		… 3
518	523		(e) Effect upon Local Codes. – Except as otherwise provided in this section, the North 4
519	524		Carolina State Building Code shall apply throughout the State, from the time of its adoption. 5
520	525		Approved rules shall become effective in accordance with G.S. 150B-21.3. However, any 6
521	526		political subdivision of the State may adopt a fire prevention code and floodplain management 7
522	527		regulations within its jurisdiction. Provided a political subdivision shall not adopt local fire 8
523	528		prevention code provisions which apply to dwellings subject to the North Carolina Residential 9
524	529		Code which are not prescriptively required by the North Carolina Residential Code. The 10
525	530		territorial jurisdiction of any municipality or county for this purpose, unless otherwise specified 11
526	531		by the General Assembly, shall be as follows: Municipal jurisdiction shall include all areas within 12
527	532		the corporate limits of the municipality and extraterritorial jurisdiction areas established as 13
528	533		provided in G.S. 160D-202 or a local act; county jurisdiction shall include all other areas of the 14
529	534		county. No such code or regulations, other than floodplain management regulations and those 15
530	535		permitted by G.S. 160D-1128, shall be effective until they have been officially approved by the 16
531	536		Building Code Council as providing adequate minimum standards to preserve and protect health 17
532	537		and safety, in accordance with the provisions of subsection (c) above. Local floodplain 18
533	538		regulations may regulate all types and uses of buildings or structures located in flood hazard areas 19
534	539		identified by local, State, and federal agencies, and include provisions governing substantial 20
535	540		improvements, substantial damage, cumulative substantial improvements, lowest floor elevation, 21
536	541		protection of mechanical and electrical systems, foundation construction, anchorage, acceptable 22
537	542		flood resistant materials, and other measures the political subdivision deems necessary 23
538	543		considering the characteristics of its flood hazards and vulnerability. In the absence of approval 24
539	544		by the Building Code Council, or in the event that approval is withdrawn, local fire prevention 25
540	545		codes and regulations shall have no force and effect. Provided any local regulations approved by 26
541	546		the local governing body which are found by the Council to be more stringent than the adopted 27
542	547		statewide fire prevention code and which are found to regulate only activities and conditions in 28
543	548		buildings, structures, and premises that pose dangers of fire, explosion or related hazards, and 29
544	549		are not matters in conflict with the State Building Code, may be approved. Local governments 30
545	550		may enforce the fire prevention code of the State Building Code using civil remedies authorized 31
546	551		under G.S. 143-139, 153A-123, and 160A-175. If the State Fire Marshal State Engineer or other 32
547	552		State official with responsibility for enforcement of the Code institutes a civil action pursuant to 33
548	553		G.S. 143-139, a local government may not institute a civil action under G.S. 143-139, 153A-123, 34
549	554		or 160A-175 based upon the same violation. Appeals from the assessment or imposition of such 35
550	555		civil remedies shall be as provided in G.S. 160D-1127. 36
551	556		A local government may not adopt any ordinance in conflict with the exemption provided by 37
552	557		subsection (c1) of this section. No local ordinance or regulation shall be construed to limit the 38
553	558		exemption provided by subsection (c1) of this section. 39
554	559		… 40
555	560		(g) Publication and Distribution of Code. – The Building Code Council and Residential 41
556	561		Code Council shall cause to be printed, after adoption by each responsible Code Council, the 42
557	562		North Carolina State Building Code, or any part of the Code, and each amendment thereto. It 43
558	563		shall, at the State's expense, distribute copies of the Code and each amendment to State and local 44
559	564		governmental officials, departments, agencies, and educational institutions, as is set out in the 45
560	565		table below. (Those marked by an asterisk will receive copies only on written request to the 46
561	566		Council.) 47
562	567		OFFICIAL OR AGENCY NUMBER OF COPIES 48
563	568		State Departments and Officials 49
564	569		Governor ............................................................................................................. 1 50
565	570		Lieutenant Governor ........................................................................................... 1 51 General Assembly Of North Carolina Session 2025
566		-	Page 12 ~~Senate Bill 700-First Edition~~
	571	+	Page 12 DRS15300-BGxfa-5
567	572		Auditor ................................................................................................................ 1 1
568	573		Treasurer ............................................................................................................. 1 2
569	574		Secretary of State ................................................................................................ 1 3
570	575		Superintendent of Public Instruction ................................................................... 1 4
571	576		Attorney General (Library) ................................................................................. 1 5
572	577		Commissioner of Agriculture .............................................................................. 1 6
573	578		Commissioner of Labor....................................................................................... 1 7
574	579		State Engineer ..................................................................................................... 1 8
575	580		State Fire Marshal ............................................................................................... 1 9
576	581		Department of Environmental 10
577	582		Quality ........................................................................................................ 1 11
578	583		Department of Health and Human Service ......................................................... 1 12
579	584		Division of Adult Correction and Juvenile Justice of the 13
580	585		Department of Public Safety ...................................................................... 1 14
581	586		Board of Transportation ...................................................................................... 1 15
582	587		Utilities Commission ........................................................................................... 1 16
583	588		Department of Administration ............................................................................ 1 17
584	589		Clerk of the Supreme Court ................................................................................ 1 18
585	590		Clerk of the Court of Appeals ............................................................................. 1 19
586	591		Department of Natural and Cultural Resources [State 20
587	592		Library] ...................................................................................................... 1 21
588	593		Supreme Court Library ....................................................................................... 1 22
589	594		Legislative Library .............................................................................................. 1 23
590	595		Office of Administrative Hearings ...................................................................... 1 24
591	596		Rules Review Commission ................................................................................. 1 25
592	597		Schools 26
593	598		All state-supported colleges and universities 27
594	599		in the State of North Carolina ................................................................... *1 each 28
595	600		Local Officials 29
596	601		Clerks of the Superior Courts .............................................................................. 1 each 30
597	602		Chief Building Inspector of each incorporated 31
598	603		municipality or county ............................................................................... 1 32
599	604		In addition, the Building Code Council and Residential Code Council shall make additional 33
600	605		copies available at such price as it shall deem reasonable to members of the general public. The 34
601	606		proceeds from sales of the Code, or any part of the Code, shall be credited to the Insurance 35
602	607		Regulatory Fund under G.S. 58-6-25. 36
603	608		… 37
604	609		(i) Section 1008 of Chapter X of Volume 1 of the North Carolina State Building Code, 38
605	610		Title "Special Safety to Life Requirements Applicable to Existing High-Rise Buildings" as 39
606	611		adopted by the North Carolina State Building Code Council on March 9, 1976, as ratified and 40
607	612		adopted as follows: 41
608	613		SECTION 1008-SPECIAL SAFETY TO LIFE REQUIREMENTS APPLICABLE TO 42
609	614		EXISTING HIGH-RISE BUILDINGS 43
610	615		1008 – GENERAL. 44
611	616		(a) Applicability. – Within a reasonable time, as fixed by "written order" of the building 45
612	617		official, and except as otherwise provided in subsection (j) of this section every building the 46
613	618		[then] existing, that qualifies for classification under Table 1008.1 shall be considered to be a 47
614	619		high-rise building and shall be provided with safety to life facilities as hereinafter specified. All 48
615	620		other buildings shall be considered as low-rise. NOTE: The requirements of Section 1008 shall 49
616	621		be considered as minimum requirements to provide for reasonable safety to life requirements for 50 General Assembly Of North Carolina Session 2025
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618	623		existing buildings and where possible, the owner and designer should consider the provisions of 1
619	624		Section 506 applicable to new high-rise buildings. 2
620	625		(b) Notification of Building Owner. – The Office of the State Fire Marshal Engineering 3
621	626		and Building Codes Division will send copies of amendments adopted to all local building 4
622	627		officials with the suggestion that all local building officials transmit to applicable building 5
623	628		owners in their jurisdiction copies of adopted amendments, within six months from the date the 6
624	629		amendments are adopted, with the request that each building owner respond to the local building 7
625	630		official how he plans to comply with these requirements within a reasonable time. 8
626	631		NOTE: Suggested reasonable time and procedures for owners to respond to the building 9
627	632		official's request is as follows: 10
628	633		(1) The building owner shall, upon receipt of written request from the building 11
629	634		official on compliance procedures within a reasonable time, submit an overall 12
630	635		plan required by 1008(c) below within one year and within the time period 13
631	636		specified in the approved overall plan, but not to exceed five years after the 14
632	637		overall plan is approved, accomplish compliance with this section, as 15
633	638		evidenced by completion of the work in accordance with approved working 16
634	639		drawings and specifications and by issuance of a new Certificate of 17
635	640		Compliance by the building official covering the work. Upon approval of 18
636	641		building owner's overall plan, the building official shall issue a "written 19
637	642		order", as per 1008(a) above, to comply with Section 1008 in accordance with 20
638	643		the approved overall plan. 21
639	644		(2) The building official may permit time extensions beyond five years to 22
640	645		accomplish compliance in accordance with the overall plan when the owner 23
641	646		can show just cause for such extension of time at the time the overall plan is 24
642	647		approved. 25
643	648		(3) The local building official shall send second request notices as per 1008(b) to 26
644	649		building owners who have made no response to the request at the end of six 27
645	650		months and a third request notice to no response building owners at the end of 28
646	651		nine months. 29
647	652		(4) If the building owner makes no response to any of the three requests for 30
648	653		information on how the owner plans to comply with Section 1008 within 12 31
649	654		months from the first request, the building official shall issue a "written order" 32
650	655		to the building owner to provide his building with the safety to life facilities 33
651	656		as required by this section and to submit an overall plan specified by (1) above 34
652	657		within six months with the five-year time period starting on the date of the 35
653	658		"written order". 36
654	659		(5) For purposes of this section, the Construction Section of the Division of 37
655	660		Health Service Regulation, Department of Health and Human Services, will 38
656	661		notify all non-State owned I-Institutional buildings requiring licensure by the 39
657	662		Division of Health Service Regulation and coordinate compliance 40
658	663		requirements with the Office of the State Fire Marshal Engineering and 41
659	664		Building Codes Division and the local building official. 42
660	665		(c) Submission of Plans and Time Schedule for Completing Work. – Plans and 43
661	666		specifications, but not necessarily working drawings covering the work necessary to bring the 44
662	667		building into compliance with this section shall be submitted to the building official within a 45
663	668		reasonable time. (See suggested time in NOTE of Section 1008(b) above). A time schedule for 46
664	669		accomplishing the work, including the preparation of working drawings and specifications shall 47
665	670		be included. Some of the work may require longer periods of time to accomplish than others, and 48
666	671		this shall be reflected in the plan and schedule. 49
667	672		NOTE: Suggested Time Period For Compliance: 50
668	673		SUGGESTED TIME PERIOD FOR COMPLIANCE 51 General Assembly Of North Carolina Session 2025
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670	675		1
671	676		CLASS I CLASS II CLASS III TIME FOR 2
672	677		ITEM (SECTION) (SECTION) (SECTION) COMPLETION 3
673	678		4
674	679		Signs in Elevator Lobbies 5
675	680		and Elevator Cabs 1008.2(h) 1008.3(h) 1008.4(h) 180 days 6
676	681		Emergency Evacuation 7
677	682		Plan 1008(b) NOTE: 180 days 8
678	683		Corridor Smoke Detectors 9
679	684		(Includes alternative 10
680	685		door closers) 1008.2(c) 1008.3(c) 1008.4(c) 1 year 11
681	686		Manual Fire Alarm 1008.2(a) 1008.3(a) 1008.4(a) 1 year 12
682	687		Voice Communication 13
683	688		System Required 1008.2(b) 1008.3(b) 1008.4(b) 2 years 14
684	689		Smoke Detectors 15
685	690		Required 1008.2(c) 1008.3(c) 1008.4(c) 1 year 16
686	691		Protection and Fire 17
687	692		Stopping for Vertical 18
688	693		Shafts 1008.2(f) 1008.3(f) 1008.4(f) 3 years 19
689	694		Special Exit 20
690	695		Requirements-Number, 21
691	696		Location and Illumination 22
692	697		to be in accordance with 23
693	698		Section 1007 1008.2(e) 1008.3(e) 1008.4(e) 3 years 24
694	699		Emergency Electrical 25
695	700		Power Supply 1008.2(d) 1008.3(d) 1008.4(d) 4 years 26
696	701		Special Exit Facilities 27
697	702		Required 1008.2(e) 1008.3(e) 1008.4(e) 5 years 28
698	703		Compartmentation for 29
699	704		Institutional 30
700	705		Buildings 1008.2(f) 1008.3(f) 1008.4(f) 5 years 31
701	706		Emergency Elevator 32
702	707		Requirements 1008.2(h) 1008.3(h) 1008.4(h) 5 years 33
703	708		Central Alarm Facility 34
704	709		Required 1008.3(i) 1008.4(i) 5 years 35
705	710		Areas of Refuge Required 36
706	711		on Every Eighth Floor 1008.4(j) 5 years 37
707	712		Smoke Venting 1008.4(k) 5 years 38
708	713		Fire Protection of 39
709	714		Electrical Conductors 1008.4(l) 5 years 40
710	715		Sprinkler System Required 1008.4(m) 5 years 41
711	716		(d) Building Official Notification of Office of State Fire Marshal. Office of Engineering 42
712	717		and Codes. – The building official shall send copies of written notices he sends to building 43
713	718		owners to the Engineering and Building Codes Division of the Office of Engineering and Codes 44
714	719		for their files and also shall file an annual report by August 15th of each year covering the past 45
715	720		fiscal year setting forth the work accomplished under the provisions of this section. 46
716	721		(e) Construction Changes and Design of Life Safety Equipment. – Plans and 47
717	722		specifications which contain construction changes and design of life safety equipment 48
718	723		requirements to comply with provisions of this section shall be prepared by a registered architect 49
719	724		in accordance with provisions of Chapter 83A of the General Statutes or by a registered engineer 50
720	725		in accordance with provisions of Chapter 89C of the General Statutes or by both an architect and 51 General Assembly Of North Carolina Session 2025
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722	727		engineer particularly qualified by training and experience for the type of work involved. Such 1
723	728		plans and specifications shall be submitted to the Engineering and Building Codes Division of 2
724	729		the Department of Insurance Office of Engineering and Codes for approval. Plans and 3
725	730		specifications for I-Institutional buildings licensed by the Division of Health Service Regulation 4
726	731		as noted in (b) above shall be submitted to the Construction Section of that Division for review 5
727	732		and approval. 6
728	733		(f) Filing of Test Reports and Maintenance on Life Safety Equipment. – The engineer 7
729	734		performing the design for the electrical and mechanical equipment, including sprinkler systems, 8
730	735		must file the test results with the Engineering and Building Codes Division of the Department of 9
731	736		Insurance, Office of Engineering and Codes, or to the agency designated by the Office of the 10
732	737		State Fire Marshal, Office of Engineering and Codes, that such systems have been tested to 11
733	738		indicate that they function in accordance with the standards specified in this section and 12
734	739		according to design criteria. These test results shall be a prerequisite for the Certificate of 13
735	740		Compliance required by (b) above. Test results for I-Institutional shall be filed with the 14
736	741		Construction Section, Division of Health Service Regulation. It shall be the duty and 15
737	742		responsibility of the owners of Class I, II and III buildings to maintain smoke detection, fire 16
738	743		detection, fire control, smoke removal and venting as required by this section and similar 17
739	744		emergency systems in proper operating condition at all times. Certification of full tests and 18
740	745		inspections of all emergency systems shall be provided by the owner annually to the fire 19
741	746		department. 20
742	747		(g) Applicability of Chapter X and Conflicts with Other Sections. – The requirements of 21
743	748		this section shall be in addition to those of Sections 1001 through 1007; and in case of conflict, 22
744	749		the requirements affording the higher degree of safety to life shall apply, as determined by the 23
745	750		building official. 24
746	751		(h) Classes of Buildings and Occupancy Classifications. – Buildings shall be classified 25
747	752		as Class I, II or III according to Table 1008.1. In the case of mixed occupancies, for this purpose, 26
748	753		the classification shall be the most restrictive one resulting from the application of the most 27
749	754		prevalent occupancies to Table 1008.1. 28
750	755		FOOTNOTE: Emergency Plan. – Owners, operators, tenants, administrators or managers of 29
751	756		high-rise buildings should consult with the fire authority having jurisdiction and establish 30
752	757		procedures which shall include but not necessarily be limited to the following: 31
753	758		(1) Assignment of a responsible person to work with the fire authority in the 32
754	759		establishment, implementation and maintenance of the emergency pre-fire 33
755	760		plan. 34
756	761		(2) Emergency plan procedures shall be supplied to all tenants and shall be posted 35
757	762		conspicuously in each hotel guest room, each office area, and each 36
758	763		schoolroom. 37
759	764		(3) Submission to the local fire authority of an annual renewal or amended 38
760	765		emergency plan. 39
761	766		(4) Plan should be completed as soon as possible. 40
762	767		… 41
763	768		…." 42
764	769		SECTION 3.3.(b) The North Carolina State Building Code, as described in 43
765	770		G.S. 143-138(a), and amendments to the North Carolina State Building Code adopted by the 44
766	771		Building Code Council or Residential Code Council, or any enactment of the General Assembly 45
767	772		directing changes to the North Carolina State Building Code, in effect on July 1, 2026, shall not 46
768	773		be affected by this act, unless amended or repealed by the Building Code Council or Residential 47
769	774		Code Council, as applicable. 48
770	775		SECTION 3.3.(c) The current members of the Building Code Council and 49
771	776		Residential Code Council, appointed pursuant to G.S. 143-136 and G.S. 143-136.1, respectively, 50
772	777		affected by this act, may continue to serve until the expiration of their terms. Upon the expiration 51 General Assembly Of North Carolina Session 2025
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774	779		of the term of each current member affected by the transfer of jurisdiction enacted by subsection 1
775	780		(a) of this section, a successor shall be appointed in accordance with the provisions of 2
776	781		G.S. 143-136 and G.S. 143-136.1, as applicable. 3
777	782		SECTION 3.4. G.S. 143-138.1 reads as rewritten: 4
778	783		"§ 143 138.1. Introduction and instruction of the North Carolina State Building Code; 5
779	784		posting of written commentaries and interpretations on Office of State Fire 6
780	785		Marshal Office of Engineering and Codes' website. 7
781	786		(a) Prior to the effective date of Code changes pursuant to G.S. 143-138, the responsible 8
782	787		Code Council and the Office of the State Fire Marshal Office of Engineering and Codes shall 9
783	788		provide for instructional classes for the various trades affected by the changes. The Office of the 10
784	789		State Fire Marshal Office of Engineering and Codes shall develop the curriculum for each class 11
785	790		but shall consult the affected licensing boards and trade organizations. The curriculum shall 12
786	791		include explanations of the rationale and need for each Code amendment or revision. Classes 13
787	792		may also be conducted by, on behalf of, or in cooperation with licensing boards, trade 14
788	793		associations, and professional societies. The Office of the State Fire Marshal Office of 15
789	794		Engineering and Codes may charge fees sufficient to recover the costs it incurs under this section. 16
790	795		The responsible Code Council shall ensure that courses are accessible to persons throughout the 17
791	796		State. 18
792	797		(b) The Office of the State Fire Marshal Office of Engineering and Codes shall post and 19
793	798		maintain on that portion of its website devoted to the Building Code Council and Residential 20
794	799		Code Council written commentaries and written interpretations made and given by staff to each 21
795	800		responsible Code Council and the Office for each section of the North Carolina State Building 22
796	801		Code within 10 business days of issuance." 23
797	802		SECTION 3.5. G.S. 143-139, as amended by Section 5.2(e) of S.L. 2024-49, reads 24
798	803		as rewritten: 25
799	804		"§ 143-139. Enforcement of Building Code. 26
800	805		… 27
801	806		(b) General Building Regulations. – The State Fire Marshal State Engineer shall have 28
802	807		general authority, through the Division of Engineering of the Department of Insurance, 29
803	808		Engineering and Building Codes Division of the Department of Labor, to supervise, administer, 30
804	809		and enforce all sections of the North Carolina State Building Code pertaining to plumbing, 31
805	810		electrical systems, general building restrictions and regulations, heating and air conditioning, fire 32
806	811		protection, and the construction of buildings generally, except those sections of the Code, the 33
807	812		enforcement of which is specifically allocated to other agencies by subsections (c) through (e) 34
808	813		below. In the exercise of the duty to supervise, administer, and enforce the North Carolina State 35
809	814		Building Code (including local building codes which have superseded the State Building Code 36
810	815		in a particular political subdivision pursuant to G.S. 143-138(e)), the State Fire Marshal, through 37
811	816		the Division of Engineering, State Engineer shall: 38
812	817		… 39
813	818		(b1) Remedies. – In case any building or structure is maintained, erected, constructed, or 40
814	819		reconstructed or its purpose altered, so that it becomes in violation of this Article or of the North 41
815	820		Carolina State Building Code, either the local enforcement officer or the State Fire Marshal State 42
816	821		Engineer or other State official with responsibility under this section may, in addition to other 43
817	822		remedies, institute any appropriate action or proceeding to: (i) prevent the unlawful maintenance, 44
818	823		erection, construction, or reconstruction or alteration of purpose, or overcrowding, (ii) restrain, 45
819	824		correct, or abate the violation, or (iii) prevent the occupancy or use of the building, structure, or 46
820	825		land until the violation is corrected. In addition to the civil remedies set out in G.S. 160A-175 47
821	826		and G.S. 153A-123, a county, city, or other political subdivision authorized to enforce the North 48
822	827		Carolina State Building Code within its jurisdiction may, for the purposes stated in (i) through 49
823	828		(iii) of this subsection, levy a civil penalty for violation of the North Carolina Fire Code of the 50
824	829		North Carolina State Building Code, which penalty may be recovered in a civil action in the 51 General Assembly Of North Carolina Session 2025
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826	831		nature of debt if the offender does not pay the penalty within a prescribed period of time after the 1
827	832		offender has been cited for the violation. If the State Fire Marshal State Engineer or other State 2
828	833		official institutes an action or proceeding under this section, a county, city, or other political 3
829	834		subdivision may not institute a civil action under this section based upon the same violation. 4
830	835		Appeals from the imposition of any remedy set forth herein, including the imposition of a civil 5
831	836		penalty by a county, city, or other political subdivision, shall be as provided in G.S. 160D-1127. 6
832	837		…." 7
833	838		SECTION 3.6. G.S. 143-139.4 reads as rewritten: 8
834	839		"§ 143-139.4. Certain building inspections by State. 9
835	840		(a) When a permit holder has been informed by a local inspection department that any 10
836	841		inspection has not been, or will not be, conducted within two business days after first requested, 11
837	842		the permit holder may request in writing that the State Fire Marshal State Engineer assign 12
838	843		personnel to conduct the inspection. 13
839	844		(b) Any written request by a permit holder to the State Fire Marshal State Engineer to 14
840	845		assign personnel to conduct an inspection shall be submitted to the State Fire Marshal, State 15
841	846		Engineer, and such submission may be made electronically or by facsimile. The submission shall 16
842	847		be on a form adopted by the State Fire Marshal, State Engineer, which shall at a minimum contain 17
843	848		all of the following: 18
844	849		… 19
845	850		(e) Prior to making any assignment of Code-enforcement officials from the marketplace 20
846	851		pool established under G.S. 143-151.12(9)a., the State Fire Marshal State Engineer shall verify 21
847	852		all of the following to the State Fire Marshal's State Engineer's satisfaction: 22
848	853		… 23
849	854		(4) Any other information the State Fire Marshal State Engineer deems relevant 24
850	855		to determining whether to assign personnel to conduct the requested 25
851	856		inspection. 26
852	857		(f) If the State Fire Marshal State Engineer assigns a Code-enforcement official from the 27
853	858		marketplace pool established under G.S. 143-151.12(9)a. to conduct the requested inspection, 28
854	859		the State Fire Marshal State Engineer shall notify the local inspection department and the local 29
855	860		inspection department shall, prior to the inspection, provide the State Fire Marshal State Engineer 30
856	861		with information regarding any outstanding building permits and previously conducted 31
857	862		inspections on those outstanding building permits for that property. The local inspection 32
858	863		department may also provide the State Fire Marshal State Engineer with information regarding 33
859	864		other properties with outstanding building permits and inspections by the same permit holder or 34
860	865		requestor. 35
861	866		(f1) Personnel assigned by the State Fire Marshal State Engineer to conduct inspections 36
862	867		under this section must begin conducting an inspection within two business days after assignment 37
863	868		by the State Fire Marshal. State Engineer. 38
864	869		(g) Not later than one business day after the receipt of the report, the State Fire Marshal 39
865	870		State Engineer shall provide an electronic copy of the report of any inspection conducted by a 40
866	871		marketplace pool Code-enforcement official under G.S. 143-151.12(9)a. to all of the following: 41
867	872		… 42
868	873		(h) For the requested services performed by a Code-enforcement official under this 43
869	874		section, the State Fire Marshal State Engineer shall charge the permit holder a fee as set by the 44
870	875		State Fire Marshal State Engineer under G.S. 143-151.12(9)a. The fee shall be paid to the State 45
871	876		Fire Marshal State Engineer no later than 30 days after completion of the requested inspection. 46
872	877		… 47
873	878		(l) The State Fire Marshal State Engineer shall contract with any individual, corporation, 48
874	879		or other business entity that holds one of the applicable certificates as provided in 49
875	880		G.S. 143-151.13 to conduct inspections under this section." 50
876	881		SECTION 3.7. G.S. 143-140.1 reads as rewritten: 51 General Assembly Of North Carolina Session 2025
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878	883		"§ 143-140.1. Alternative design construction and methods; appeals. 1
879	884		The Building Code Council shall, by January 1, 2023, shall promulgate rules, procedures, 2
880	885		and policies for the approval of alternative designs and construction that follow the North 3
881	886		Carolina State Building Code. The Residential Code Council shall, by January 1, 2026, 4
882	887		promulgate rules, procedures, and policies for the approval of alternative designs and 5
883	888		construction that follow the North Carolina State Building Code. In the event of a dispute 6
884	889		between a local authority having jurisdiction and the designer or owner-representative regarding 7
885	890		alternative designs and construction, and notwithstanding any other section within this Article, 8
886	891		appeals by the designer or owner-representative on matters pertaining to alternative design 9
887	892		construction or methods shall be heard by the Engineering and Building Codes Division of the 10
888	893		Department of Insurance. Office of Engineering and Codes. The Engineering and Building Codes 11
889	894		Division shall issue its decision regarding an appeal filed under this section within 10 business 12
890	895		days. The State Fire Marshal State Engineer shall adopt rules in furtherance of this section." 13
891	896		SECTION 3.8. G.S. 143-141 reads as rewritten: 14
892	897		"§ 143-141. Appeals to Building Code Council and Residential Code Council. 15
893	898		(a) Method of Appeal. – Whenever any person desires to take an appeal to the responsible 16
894	899		Code Council from the decision of a State enforcement agency relating to any matter under this 17
895	900		Article or under the North Carolina State Building Code, the appellant shall within 30 days after 18
896	901		the decision give written notice of appeal to the responsible Code Council through the Division 19
897	902		of Engineering and Building Codes Division of the Department of Insurance. Office of 20
898	903		Engineering and Codes. A copy of the notice of appeal shall be filed at the same time with the 21
899	904		enforcement agency from which the appeal is taken. The chairman of the responsible Code 22
900	905		Council shall fix a reasonable time and place for a hearing, giving reasonable notice to the 23
901	906		appellant and to the enforcement agency. Such hearing shall be not later than the next regular 24
902	907		meeting of the responsible Code Council. The responsible Code Council shall thereupon conduct 25
903	908		a full and complete hearing as to the matters in controversy, after which it shall within a 26
904	909		reasonable time give a written decision setting forth its findings of fact and its conclusions. 27
905	910		… 28
906	911		(c1) Posting on State Fire Marshal Office of Engineering and Codes Website – The Office 29
907	912		of the State Fire Marshal Office of Engineering and Codes shall post and maintain on that portion 30
908	913		of its website devoted to the responsible Code Council all appeal decisions, interpretations, and 31
909	914		variations of the Code issued by the responsible Code Council within 10 business days of 32
910	915		issuance. 33
911	916		…." 34
912	917		SECTION 3.9. G.S. 143-143.4 reads as rewritten: 35
913	918		"§ 143-143.4. Door lock exemption for certain businesses. 36
914	919		(a) Notwithstanding this Article or any other law to the contrary, any business entity 37
915	920		licensed to sell automatic weapons as a federal firearms dealer that is in the business of selling 38
916	921		firearms or ammunition and that operates a firing range which rents firearms and sells 39
917	922		ammunition shall be exempt from the door lock requirements of Chapter 10 of Volume 1 of the 40
918	923		North Carolina State Building Code when issued a permit to that effect by the Office of the State 41
919	924		Fire Marshal Office of Engineering and Codes in accordance with this section. 42
920	925		(b) The Office of the State Fire Marshal Office of Engineering and Codes shall issue a 43
921	926		permit to a business entity specified in subsection (a) of this section for an exemption from the 44
922	927		door lock requirements of Chapter 10 of Volume 1 of the North Carolina State Building Code if 45
923	928		all of the following conditions are met: 46
924	929		… 47
925	930		(2) The building or facility in which business is conducted is equipped with an 48
926	931		approved smoke, fire, and break-in alarm system installed and operated in 49
927	932		accordance with rules adopted by the Office of the State Fire Marshal. Office 50
928	933		of Engineering and Codes. An approved smoke, fire, or break-in alarm system 51 General Assembly Of North Carolina Session 2025
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	934	+	DRS15300-BGxfa-5 Page 19
930	935		does not have to include an automatic door unlocking mechanism triggered 1
931	936		when the smoke, fire, or break-in alarm system is triggered. 2
932	937		… 3
933	938		(5) Payment of a permit fee of five hundred dollars ($500.00) to the Office of the 4
934	939		State Fire Marshal. Office of Engineering and Codes. 5
935	940		(c) The Office of the State Fire Marshal Office of Engineering and Codes shall file a copy 6
936	941		of the permit issued in accordance with subsection (b) of this section with all local law 7
937	942		enforcement and fire protection agencies that provide protection for the business entity. 8
938	943		(d) The Office of the State Fire Marshal Office of Engineering and Codes shall be 9
939	944		responsible for any inspections necessary for the issuance of permits under this section and, in 10
940	945		conjunction with local inspection departments, shall be responsible for periodic inspections to 11
941	946		ensure compliance with the requirements of this section. The Office of the State Fire Marshal 12
942	947		Office of Engineering and Codes may contract with local inspection departments to conduct 13
943	948		inspections under this subsection. 14
944	949		(e) The Office of the State Fire Marshal Office of Engineering and Codes shall revoke a 15
945	950		permit issued under this section upon a finding that the requirements for the original issuance of 16
946	951		the permit are not being complied with. 17
947	952		(f) Appeals of decisions of the Office of the State Fire Marshal Office of Engineering 18
948	953		and Codes regarding the issuance or revocation of permits under this section shall be in 19
949	954		accordance with Chapter 150B of the General Statutes. 20
950	955		… 21
951	956		(i) The Office of the State Fire Marshal Office of Engineering and Codes shall adopt 22
952	957		rules to implement this section." 23
953	958		SECTION 3.10. G.S. 143-143.7 reads as rewritten: 24
954	959		"§ 143-143.7. Elevator safety requirements for certain residential rental accommodations. 25
955	960		… 26
956	961		(c) Upon installation of a door baffle, door space guard, door, or gate meeting the 27
957	962		requirements of subdivision (1) or (2) of subsection (b) of this section, the landlord shall provide 28
958	963		the State Fire Marshal State Engineer with one of the following: 29
959	964		(1) A statement signed by a professional elevator installer certifying installation 30
960	965		of the door baffle, door space guard, door, or gate meeting the requirements 31
961	966		of subsection (b) of this section. 32
962	967		(2) A receipt for purchase of the door baffle, door space guard, door, or gate 33
963	968		meeting the requirements of subsection (b) of this section, a signed statement 34
964	969		by the landlord stating the date of installation, and photographs depicting the 35
965	970		door baffle, door space guard, door, or gate as installed. 36
966	971		…." 37
967	972		38
968	973		PART IV. NORTH CAROLINA MANUFACTURED HOUSING BOARD AND 39
969	974		UNIFORM STANDARDS CODE FOR MANUFACTURED HOMES CONFORMING 40
970	975		CHANGES 41
971	976		SECTION 4.1. G.S. 143-143.8 reads as rewritten: 42
972	977		"§ 143-143.8. Purpose. 43
973	978		The General Assembly finds that manufactured homes have become a primary housing 44
974	979		resource for many of the citizens of North Carolina. The General Assembly finds further that it 45
975	980		is the responsibility of the manufactured home industry to provide homes which are of reasonable 46
976	981		quality and safety and to offer warranties to buyers that provide a means of remedying quality 47
977	982		and safety defects in manufactured homes. The General Assembly also finds that it is in the public 48
978	983		interest to provide a means for enforcing such warranties. 49
979	984		Consistent with these findings and with the legislative intent to promote the general welfare 50
980	985		and safety of manufactured home residents in North Carolina, the General Assembly finds that 51 General Assembly Of North Carolina Session 2025
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	986	+	Page 20 DRS15300-BGxfa-5
982	987		the most efficient and economical way to assure safety, quality and responsibility is to require 1
983	988		the licensing and bonding of all segments of the manufactured home industry. The General 2
984	989		Assembly also finds that it is reasonable and proper for the manufactured home industry to 3
985	990		cooperate with the Office of the State Fire Marshal, Office of Engineering and Codes, through 4
986	991		the establishment of the North Carolina Manufactured Housing Board, to provide for a 5
987	992		comprehensive framework for industry regulations." 6
988	993		SECTION 4.2. G.S. 143-143.9 reads as rewritten: 7
989	994		"§ 143-143.9. Definitions. 8
990	995		The following definitions apply in this Part: 9
991	996		… 10
992	997		(3) Code. – Engineering standards entitled State of North Carolina Regulations 11
993	998		for Manufactured Homes adopted by the State Fire Marshal.State Engineer. 12
994	999		…." 13
995	1000		SECTION 4.3.(a) G.S. 143-143.10 reads as rewritten: 14
996	1001		"§ 143-143.10. Manufactured Housing Board created; membership; terms; meetings. 15
997	1002		(a) There is created the North Carolina Manufactured Housing Board within the 16
998	1003		Department. The Board shall be composed of 11 members as follows: 17
999	1004		(1) The State Fire Marshal State Engineer or the State Fire Marshal's State 18
1000	1005		Engineer's designee. 19
1001	1006		… 20
1002	1007		The State Fire Marshal State Engineer or the State Fire Marshal's State Engineer's designee 21
1003	1008		shall chair the Board. The Governor shall appoint to the Board the manufactured home 22
1004	1009		manufacturer and the manufactured home dealer. The General Assembly upon the 23
1005	1010		recommendation of the Speaker of the House of Representatives in accordance with 24
1006	1011		G.S. 120-121 shall appoint to the Board the representative of the banking and finance industry, 25
1007	1012		the employee of a HUD-approved housing counseling agency, and the representative of the 26
1008	1013		insurance industry. The General Assembly upon the recommendation of the President Pro 27
1009	1014		Tempore of the Senate in accordance with G.S. 120-121 shall appoint to the Board the 28
1010	1015		manufactured home supplier, the accountant, and the set-up contractor. The State Fire Marshal 29
1011	1016		State Engineer shall appoint two representatives of the general public. Except for the 30
1012	1017		representatives from the general public and the persons appointed by the General Assembly, each 31
1013	1018		member of the Board shall be appointed by the appropriate appointing authority from a list of 32
1014	1019		nominees submitted to the appropriate appointing authority by the Board of Directors of the 33
1015	1020		North Carolina Manufactured and Modular Homebuilders Association. At least three 34
1016	1021		nominations shall be submitted for each position on the Board. The members of the Board shall 35
1017	1022		be residents of the State. 36
1018	1023		The members of the Board shall serve for terms of three years. In the event of any vacancy 37
1019	1024		of a position appointed by the Governor or State Fire Marshal, State Engineer, the appropriate 38
1020	1025		appointing authority shall appoint a replacement in the same manner as provided for the original 39
1021	1026		appointment to serve the remainder of the unexpired term. Vacancies in appointments made by 40
1022	1027		the General Assembly shall be filled in accordance with G.S. 120-122. In the event of any 41
1023	1028		vacancy, the appropriate appointing authority shall appoint a replacement to serve the remainder 42
1024	1029		of the unexpired term. Such The appointment shall be made in the same manner as provided for 43
1025	1030		the original appointment. No member of the Board shall serve more than two consecutive, 44
1026	1031		three-year terms. 45
1027	1032		The members of the Board designated in subdivisions (8), (9), and (10) of this subsection 46
1028	1033		shall have no current or previous financial interest connected with the manufactured housing 47
1029	1034		industry. No member of the Board shall participate in any proceeding before the Board involving 48
1030	1035		that member's own business. 49
1031	1036		Each member of the Board, except the State Fire Marshal State Engineer and any other State 50
1032	1037		employee, shall receive per diem and allowances as provided with respect to occupational 51 General Assembly Of North Carolina Session 2025
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1034	1039		licensing boards by G.S. 93B-5. Fees collected by the Board under this Article shall be credited 1
1035	1040		to the Insurance Regulatory Fund created under G.S. 58-6-25. 2
1036	1041		…." 3
1037	1042		SECTION 4.3.(b) The current members of the Manufactured Housing Board 4
1038	1043		appointed pursuant to G.S. 143-143.10 affected by this act, may continue to serve until the 5
1039	1044		expiration of their terms. Upon the expiration of the term of each current member affected by 6
1040	1045		this act, the State Engineer shall appoint a successor in accordance with the provisions of 7
1041	1046		G.S. 143-143.10, as amended by subsection (a) of this section. 8
1042	1047		SECTION 4.4. G.S. 143-143.15 reads as rewritten: 9
1043	1048		"§ 143-143.15. Set-up requirements. 10
1044	1049		(a) Manufactured homes shall be set up in accordance with the standards entitled State 11
1045	1050		of North Carolina Regulations for Manufactured Homes adopted by the State Fire Marshal.State 12
1046	1051		Engineer. 13
1047	1052		…." 14
1048	1053		SECTION 4.5. G.S. 143-143.54 reads as rewritten: 15
1049	1054		"§ 143-143.54. Audits and record inspection. 16
1050	1055		All financial records required by this Part shall be subject to audit for cause and to random 17
1051	1056		audit at the discretion of and by the Board, the State Fire Marshal, State Engineer, or the Attorney 18
1052	1057		General. The Board may inspect these records periodically, without prior notice and may also 19
1053	1058		inspect these records whenever the Board determines that the records are pertinent to an 20
1054	1059		investigation of any complaint against a licensee. The dealer shall provide written authorization 21
1055	1060		to the bank that holds the escrow or trust account to release any and all requested information 22
1056	1061		relative to the account to the parties authorized under this section to inspect those records." 23
1057	1062		SECTION 4.6. G.S. 143-146 reads as rewritten: 24
1058	1063		"§ 143-146. Statement of policy; rule-making power. 25
1059	1064		(a) Manufactured homes, because of the manner of their construction, assembly and use 26
1060	1065		and that of their systems, components and appliances (including heating, plumbing and electrical 27
1061	1066		systems) like other finished products having concealed vital parts may present hazards to the 28
1062	1067		health, life and safety of persons and to the safety of property unless properly manufactured. In 29
1063	1068		the sale of manufactured homes, there is also the possibility of defects not readily ascertainable 30
1064	1069		when inspected by purchasers. It is the policy and purpose of this State to provide protection to 31
1065	1070		the public against those possible hazards, and for that purpose to forbid the manufacture and sale 32
1066	1071		of new manufactured homes, which are not so constructed as to provide reasonable safety and 33
1067	1072		protection to their owners and users. This Article provides to the State Fire Marshal State 34
1068	1073		Engineer all necessary authority to enable the State to obtain approval as a State Administrative 35
1069	1074		Agency under the provisions of the Act. 36
1070	1075		… 37
1071	1076		(e) The State Fire Marshal State Engineer may adopt rules to carry out the provisions of 38
1072	1077		the Act and this Article, including rules for consumer complaint procedures and rules for the 39
1073	1078		enforcement of the standards and regulations established and adopted by HUD under the Act." 40
1074	1079		SECTION 4.7. G.S. 143-148 reads as rewritten: 41
1075	1080		"§ 143-148. Certain structures excluded from coverage. 42
1076	1081		The State Fire Marshal State Engineer may by rule provide for the exclusion of certain 43
1077	1082		structures by certification in accordance with the Act." 44
1078	1083		SECTION 4.8. G.S. 143-151 reads as rewritten: 45
1079	1084		"§ 143-151. Penalties. 46
1080	1085		(a) Any person who is found by the State Fire Marshal State Engineer to have violated 47
1081	1086		the provisions of the Act, this Article, or any rules adopted under this Article, shall be liable for 48
1082	1087		a civil penalty not to exceed the amount set by 24 C.F.R. § 3282.10 for each violation. Each 49
1083	1088		violation shall constitute a separate violation for each manufactured home or for each failure or 50
1084	1089		refusal to allow or perform an act required by the Act, this Article, or any rules adopted under 51 General Assembly Of North Carolina Session 2025
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1086	1091		this Article. The maximum civil penalty may not exceed the amount set by 24 C.F.R. § 3282.10 1
1087	1092		for any related series of violations occurring within one year after the date of the first violation. 2
1088	1093		In determining the amount of the penalty, the State Fire Marshal State Engineer shall consider 3
1089	1094		the degree and extent of harm caused by the violation, the amount of money that inured to the 4
1090	1095		benefit of the violator as a result of the violation, whether the violation was willful, and the prior 5
1091	1096		record of the violator in complying or failing to comply with laws, rules, or orders applicable to 6
1092	1097		the violator. The clear proceeds of civil penalties provided for in this section shall be remitted to 7
1093	1098		the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C-457.2. 8
1094	1099		…." 9
1095	1100		SECTION 4.9. G.S. 143-151.1 reads as rewritten: 10
1096	1101		"§ 143-151.1. Enforcement. 11
1097	1102		The State Fire Marshal State Engineer may initiate any appropriate action or proceeding to 12
1098	1103		prevent, restrain, or correct any violation of the Act, this Article, or any rules adopted under this 13
1099	1104		Article. The State Fire Marshal, State Engineer, or any of his deputies or employees, upon 14
1100	1105		showing proper credentials and in the discharge of their duties under this Article, or the Act, is 15
1101	1106		authorized at reasonable hours and without advance notice to enter and inspect all factories, 16
1102	1107		warehouses, or establishments in this State in which manufactured homes are manufactured, 17
1103	1108		stored or held for sale." 18
1104	1109		SECTION 4.10.(a) G.S. 143-151.2 reads as rewritten: 19
1105	1110		"§ 143-151.2. Fees. 20
1106	1111		(a) The State Fire Marshal State Engineer shall establish a monitoring inspection fee in 21
1107	1112		an amount required by the Secretary of HUD. This monitoring inspection fee shall be an amount 22
1108	1113		paid by each manufactured home manufacturer in this State for each manufactured home 23
1109	1114		produced by the manufacturer in this State. 24
1110	1115		…." 25
1111	1116		SECTION 4.10.(b) The monitoring inspection fee established pursuant to 26
1112	1117		G.S. 143-151.2 shall not be affected by this act, and shall remain in effect until amended by the 27
1113	1118		State Engineer in an amount required by the Secretary of HUD. 28
1114	1119		SECTION 4.11. G.S. 143-151.3 reads as rewritten: 29
1115	1120		"§ 143-151.3. Reports. 30
1116	1121		Each manufacturer, distributor, and dealer of manufactured homes shall establish and 31
1117	1122		maintain such records, make such reports, and provide such information as the State Fire Marshal 32
1118	1123		State Engineer or the Secretary of HUD may reasonably require to be able to determine whether 33
1119	1124		the manufacturer, distributor, or dealer has acted or is acting in compliance with this Article, or 34
1120	1125		the Act and shall, upon request of a person designated by the State Fire Marshal State Engineer 35
1121	1126		or the Secretary of HUD, permit the person to inspect appropriate books, papers, records and 36
1122	1127		documents relevant to determining whether the manufacturer, distributor, or dealer has acted or 37
1123	1128		is acting in compliance with this Article or the Act, and any rules adopted by the State Fire 38
1124	1129		Marshal State Engineer under this Article." 39
1125	1130		SECTION 4.12. G.S. 143-151.4 reads as rewritten: 40
1126	1131		"§ 143-151.4. Notification of defects and correction procedures. 41
1127	1132		Every manufacturer of manufactured homes shall provide for notification and correction 42
1128	1133		procedures in any manufactured home produced by the manufacturer in accordance with the Act, 43
1129	1134		this Article, and any rules adopted by the State Fire Marshal.State Engineer." 44
1130	1135		SECTION 4.13. G.S. 143-151.5 reads as rewritten: 45
1131	1136		"§ 143-151.5. Prohibited acts. 46
1132	1137		(a) No person shall: 47
1133	1138		… 48
1134	1139		(5) Fail to comply with a rule adopted or an order issued by the State Fire Marshal 49
1135	1140		State Engineer under this Article. 50
1136	1141		…." 51 General Assembly Of North Carolina Session 2025
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1138	1143		1
1139	1144		PART V. NORTH CAROLINA CODE OFFICIALS QUALIFICATION BOARD 2
1140	1145		CONFORMING CHANGES 3
1141	1146		SECTION 5.1. G.S. 143-151.8, as amended by Section 5.2(i) of S.L. 2024-49, reads 4
1142	1147		as rewritten: 5
1143	1148		"§ 143-151.8. Definitions. 6
1144	1149		(a) The following definitions apply in this Article: 7
1145	1150		… 8
1146	1151		(2) Code. – Consists of all of the following: 9
1147	1152		… 10
1148	1153		d. The standards adopted by the State Fire Marshal State Engineer under 11
1149	1154		G.S. 143-143.15(a). 12
1150	1155		… 13
1151	1156		(c) For purposes of this Article, "willful misconduct, gross negligence, or gross 14
1152	1157		incompetence" in addition to the meaning of those terms under other provisions of the General 15
1153	1158		Statutes or at common law, includes any of the following: 16
1154	1159		… 17
1155	1160		(2) Refusing to accept an alternative design or construction method that has been 18
1156	1161		appealed under G.S. 143-140.1 and found by the Office of the State Fire 19
1157	1162		Marshal Office of Engineering and Codes to comply with the Code under the 20
1158	1163		conditions or circumstances set forth in the Office of the State Fire Marshal's 21
1159	1164		Office of Engineering and Codes' decision for that appeal. 22
1160	1165		… 23
1161	1166		(5) Refusing to implement or adhere to an interpretation of the Building Code 24
1162	1167		issued by the Building Code Council or the Office of the State Fire 25
1163	1168		Marshal.Office of Engineering and Codes. 26
1164	1169		…." 27
1165	1170		SECTION 5.2.(a) G.S. 143-151.9 reads as rewritten: 28
1166	1171		"§ 143-151.9. North Carolina Code Officials Qualification Board established; members; 29
1167	1172		terms; vacancies. 30
1168	1173		(a) There is hereby established the North Carolina Code Officials Qualification Board in 31
1169	1174		the Department of Insurance. Office of Engineering and Codes of the Department of Labor. The 32
1170	1175		Board shall be composed of 20 members appointed as follows: 33
1171	1176		(1) One member who is a city or county manager;manager. 34
1172	1177		(2) Two members, one of whom is an elected official representing a city over 35
1173	1178		5,000 population and one of whom is an elected official representing a city 36
1174	1179		under 5,000 population; population. 37
1175	1180		(3) Two members, one of whom is an elected official representing a county over 38
1176	1181		40,000 population and one of whom is an elected official representing a 39
1177	1182		county under 40,000 population; population. 40
1178	1183		(4) Two members serving as building officials with the responsibility for 41
1179	1184		administering building, plumbing, electrical and heating codes, one of whom 42
1180	1185		serves a county and one of whom serves a city; city. 43
1181	1186		(5) One member who is a registered architect; architect. 44
1182	1187		(6) One member who is a registered engineer; engineer. 45
1183	1188		(7) Two members who are licensed general contractors, at least one of whom 46
1184	1189		specializes in residential construction; construction. 47
1185	1190		(8) One member who is a licensed electrical contractor;contractor. 48
1186	1191		(9) One member who is a licensed plumbing or heating contractor; contractor. 49
1187	1192		(10) One member selected from the faculty of the North Carolina State University 50
1188	1193		School of Engineering and one member selected from the faculty of the 51 General Assembly Of North Carolina Session 2025
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1190	1195		School of Engineering of the North Carolina Agricultural and Technical State 1
1191	1196		University; University. 2
1192	1197		(11) One member selected from the faculty of the School of Government at the 3
1193	1198		University of North Carolina at Chapel Hill; Hill. 4
1194	1199		(12) One member selected from the Community Colleges System Office; Office. 5
1195	1200		(13) One member selected from the Engineering and Building Codes Division 6
1196	1201		Division of Engineering and Building Codes in of the Department of 7
1197	1202		Insurance; and, Office of Engineering and Code. 8
1198	1203		(14) One member who is a local government fire prevention inspector and one 9
1199	1204		member who is a citizen of the State. 10
1200	1205		The various categories shall be appointed as follows: (1), (2), (3), and (14) by the Governor; 11
1201	1206		(4), (5), and (6) by the General Assembly upon the recommendation of the President Pro Tempore 12
1202	1207		in accordance with G.S. 120-121; (7), (8), and (9) by the General Assembly upon the 13
1203	1208		recommendation of the Speaker of the House of Representatives in accordance with 14
1204	1209		G.S. 120-121; (10) by the deans of the respective schools of engineering of the named 15
1205	1210		universities; (11) by the Dean of the School of Government at the University of North Carolina 16
1206	1211		at Chapel Hill; (12) by the President of the Community Colleges System; and (13) by the State 17
1207	1212		Fire Marshal.State Engineer. 18
1208	1213		…." 19
1209	1214		SECTION 5.2.(b) The current members of the North Carolina Code Officials 20
1210	1215		Qualification Board appointed pursuant to G.S. 143-151.9 affected by this act, may continue to 21
1211	1216		serve until the expiration of the member's term. Upon the expiration of the current member's 22
1212	1217		term, the State Engineer shall appoint a successor as provided in G.S. 143-151.9, as amended by 23
1213	1218		subsection (a) of this section. 24
1214	1219		SECTION 5.3.(a) G.S. 143-151.12, as amended by Section 3.4(a) of S.L. 2024-49, 25
1215	1220		reads as rewritten: 26
1216	1221		"§ 143-151.12. Powers. 27
1217	1222		In addition to powers conferred upon the Board elsewhere in this Article, the Board has the 28
1218	1223		power to do the following: 29
1219	1224		… 30
1220	1225		(9) Establish within the Office of the State Fire Marshal Office of Engineering 31
1221	1226		and Codes a marketplace pool of qualified Code-enforcement officials 32
1222	1227		available for the following purposes: 33
1223	1228		a. When requested by the State Fire Marshal, State Engineer, to assist in 34
1224	1229		the discharge of the State Fire Marshal's State Engineer's duty under 35
1225	1230		G.S. 143-139 to supervise, administer, and enforce the North Carolina 36
1226	1231		State Building Code. The State Fire Marshal State Engineer shall have 37
1227	1232		the power and authority to fix and collect reasonable fees for services 38
1228	1233		performed by Code-enforcement officials under this sub-subdivision. 39
1229	1234		The State Fire Marshal State Engineer may also collect 40
1230	1235		reimbursement, at the rate established under G.S. 138-6, for mileage 41
1231	1236		costs incurred by Code-enforcement officials going to and from 42
1232	1237		inspections conducted under this sub-subdivision. The State Fire 43
1233	1238		Marshal State Engineer shall have no power or authority to fix or 44
1234	1239		collect fees incurred by local inspection departments under 45
1235	1240		sub-subdivision b. of this subdivision. 46
1236	1241		…." 47
1237	1242		SECTION 5.3.(b) Fees fixed for services performed by Code-enforcement officials 48
1238	1243		under G.S. 143-151.12(9)a. affected by this act, shall not be affected by this act until amended 49
1239	1244		by the State Engineer pursuant to G.S. 143-151.12(9)a., as amended by subsection (a) of this 50
1240	1245		section, in accordance with Chapter 150B of the General Statutes. 51 General Assembly Of North Carolina Session 2025
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1242	1247		SECTION 5.4. G.S. 143-151.13, and amended by Section 5.2(j) of S.L. 2024-49, 1
1243	1248		reads as rewritten: 2
1244	1249		"§ 143-151.13. Required standards and certificates for Code-enforcement officials. 3
1245	1250		… 4
1246	1251		(e) The Board shall, without requiring an examination, issue a standard certificate to any 5
1247	1252		person who is currently certified as a county electrical inspector pursuant to G.S. 160D-1102. 6
1248	1253		The certificate issued by the Board shall authorize the person to serve at the electrical inspector 7
1249	1254		level approved by the State Fire Marshal State Engineer in G.S. 160D-1102. 8
1250	1255		SECTION 5.5. G.S. 143-151.19 reads as rewritten: 9
1251	1256		"§ 143-151.19. Administration. 10
1252	1257		(a) The Engineering and Building Codes Division Division of Engineering and Building 11
1253	1258		Codes in of the Department of Insurance Office of Engineering and Codes shall provide clerical 12
1254	1259		and other staff services required by the Board, and shall administer and enforce all provisions of 13
1255	1260		this Article and all rules promulgated pursuant to this Article, subject to the direction of the 14
1256	1261		Board, except as delegated by this Article to local units of government, other State agencies, 15
1257	1262		corporations, or individuals. 16
1258	1263		(b) The Board shall make copies of this Article and the rules adopted under this Article 17
1259	1264		available to the public at a price determined by the Board. 18
1260	1265		(c) The Board shall keep current a record of the names and addresses of all qualified 19
1261	1266		Code-enforcement officials and additional personal data as the Board deems necessary. The 20
1262	1267		Board annually shall publish a list of all currently certified Code-enforcement officials. 21
1263	1268		(d) Each certificate issued by the Board shall contain such identifying information as the 22
1264	1269		Board requires. 23
1265	1270		(e) The Board shall issue a duplicate certificate to practice as a qualified 24
1266	1271		Code-enforcement official in place of one which has been lost, destroyed, or mutilated upon 25
1267	1272		proper application and payment of a fee to be determined by the Board." 26
1268	1273		SECTION 5.6. G.S. 143-151.21 reads as rewritten: 27
1269	1274		"§ 143-151.21. Disposition of fees. 28
1270	1275		Fees collected by the State Fire Marshal State Engineer under this Article shall be credited to 29
1271	1276		the Insurance Regulatory Fund created under G.S. 58-6-25." 30
1272	1277		31
1273	1278		PART VI. NORTH CAROLINA HOME INSPECTOR LICENSURE BOARD 32
1274	1279		CONFORMING CHANGES 33
1275	1280		SECTION 6.1. G.S. 143-151.46 reads as rewritten: 34
1276	1281		"§ 143-151.46. North Carolina Home Inspector Licensure Board established; members; 35
1277	1282		terms; vacancies. 36
1278	1283		(a) Membership. — The North Carolina Home Inspector Licensure Board is established 37
1279	1284		in the Department of Insurance. Office of Engineering and Codes The Board shall be composed 38
1280	1285		of the State Fire Marshal State Engineer or the State Fire Marshal's State Engineer's designee and 39
1281	1286		seven additional members appointed as follows: 40
1282	1287		…." 41
1283	1288		SECTION 6.2. G.S. 143-151.63 reads as rewritten: 42
1284	1289		"§ 143-151.63. Administration. 43
1285	1290		(a) The Engineering and Building Codes Division of Division of Engineering and 44
1286	1291		Building Code in the Department of Insurance Office of Engineering and Codes shall provide 45
1287	1292		clerical and other staff services required by the Board, and shall administer and enforce all 46
1288	1293		provisions of this Article and all rules adopted under this Article, subject to the direction of the 47
1289	1294		Board. The Board shall reimburse the Division for its services to the Board. 48
1290	1295		(b) Any monies received by the Board pursuant to this Article shall be deposited in the 49
1291	1296		State treasury to the account of the Board and shall be used to administer this Article. 50 General Assembly Of North Carolina Session 2025
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1293	1298		(c) The books and records of the Board are subject to the oversight of the State Auditor, 1
1294	1299		as provided in G.S. 93B-4." 2
1295	1300		3
1296	1301		PART VII. LOCAL GOVERNMENT LAND DEVELOPMENT AND CODE 4
1297	1302		ENFORCEMENT CONFORMING CHANGES 5
1298	1303		SECTION 7.1. G.S. 160D-402, as amended by Section 1.3(a) of S.L. 2024-49, reads 6
1299	1304		as rewritten: 7
1300	1305		"§ 160D-402. Administrative staff. 8
1301	1306		… 9
1302	1307		(d) Financial Support. – The local government may appropriate for the support of the 10
1303	1308		staff any funds that it deems necessary. It shall have power to fix reasonable fees for support, 11
1304	1309		administration, and implementation of programs authorized by this Chapter, and all such fees 12
1305	1310		shall be used for no other purposes. When an inspection, for which the permit holder has paid a 13
1306	1311		fee to the local government, is performed by a marketplace pool Code-enforcement official upon 14
1307	1312		request of the State Fire MarshalState Engineer under G.S. 143-151.12(9)a., the local 15
1308	1313		government shall promptly return to the permit holder the fee collected by the local government 16
1309	1314		for such inspection. This subsection applies to the following types of inspection: plumbing, 17
1310	1315		electrical systems, general building restrictions and regulations, heating and air-conditioning, and 18
1311	1316		the general construction of buildings." 19
1312	1317		SECTION 7.2. G.S. 160D-910 reads as rewritten: 20
1313	1318		"§ 160D-910. Manufactured homes. 21
1314	1319		… 22
1315	1320		(g) A local government may require by ordinance that manufactured homes be installed 23
1316	1321		in accordance with the Set-Up and Installation Standards adopted by the State Fire Marshal; State 24
1317	1322		Engineer; provided, however, a local government shall not require a masonry curtain wall or 25
1318	1323		masonry skirting for manufactured homes located on land leased to the homeowner." 26
1319	1324		SECTION 7.3. G.S. 160D-1102 reads as rewritten: 27
1320	1325		"§ 160D-1102. Building code administration. 28
1321	1326		… 29
1322	1327		(b) In the event that any local government fails to provide inspection services or ceases 30
1323	1328		to provide inspection services, the State Fire Marshal State Engineer shall arrange for the 31
1324	1329		provision of inspection services, either through personnel employed by the Office of the State 32
1325	1330		Fire Marshal Office of Engineering and Codes or another division of the Department of Insurance 33
1326	1331		Department of Labor or through an arrangement with other units of government. In either event, 34
1327	1332		the State Fire Marshal State Engineer has and may exercise within the local government's 35
1328	1333		planning and development regulation jurisdiction all powers made available to the governing 36
1329	1334		board with respect to building inspection under this Article and Part 1 of Article 20 of Chapter 37
1330	1335		160A of the General Statutes. Whenever the State Fire Marshal State Engineer has intervened in 38
1331	1336		this manner, the local government may assume provision of inspection services only after giving 39
1332	1337		the State Fire Marshal State Engineer two years' written notice of its intention to do so; however, 40
1333	1338		the State Fire Marshal State Engineer may waive this requirement or permit assumption at an 41
1334	1339		earlier date upon finding that an earlier assumption will not unduly interfere with arrangements 42
1335	1340		made for the provision of those services. 43
1336	1341		…." 44
1337	1342		SECTION 7.4. G.S. 160D-1114 reads as rewritten: 45
1338	1343		"§ 160D-1114. Appeals of stop orders. 46
1339	1344		(a) The owner or builder may appeal from a stop order involving alleged violation of the 47
1340	1345		North Carolina State Building Code or any approved local modification thereof to the State Fire 48
1341	1346		Marshal State Engineer or his or her designee within a period of five days after the order is issued. 49
1342	1347		Notice of appeal shall be given in writing to the State Fire Marshal State Engineer or his or her 50
1343	1348		designee, with a copy to the local inspector. The State Fire Marshal State Engineer or his or her 51 General Assembly Of North Carolina Session 2025
1344		-	~~Senate Bill 700-First Edition~~ Page 27
	1349	+	DRS15300-BGxfa-5 Page 27
1345	1350		designee shall promptly conduct an investigation, and the appellant and the inspector shall be 1
1346	1351		permitted to submit relevant evidence. The State Fire Marshal State Engineer or his or her 2
1347	1352		designee shall as expeditiously as possible provide a written statement of the decision setting 3
1348	1353		forth the facts found, the decision reached, and the reasons for the decision. Pending the ruling 4
1349	1354		by the State Fire Marshal State Engineer or his or her designee on an appeal, no further work 5
1350	1355		shall take place in violation of a stop order. In the event of dissatisfaction with the decision, the 6
1351	1356		person affected shall have the following options: 7
1352	1357		(1) Appealing to the Building Code Council or Residential Code Council. 8
1353	1358		(2) Appealing to the superior court as provided in G.S. 143-141. 9
1354	1359		(b) The owner or builder may appeal from a stop order involving alleged violation of a 10
1355	1360		local development regulation as provided in G.S. 160D-405." 11
1356	1361		SECTION 7.5. G.S. 160D-1126 reads as rewritten: 12
1357	1362		"§ 160D-1126. Records and reports. 13
1358	1363		The inspection department shall keep complete and accurate records in convenient form of 14
1359	1364		all applications received, permits issued, inspections and reinspections made, defects found, 15
1360	1365		certificates of compliance or occupancy granted, and all other work and activities of the 16
1361	1366		department. These records shall be kept in the manner and for the periods prescribed by the 17
1362	1367		Department of Natural and Cultural Resources. Periodic reports shall be submitted to the 18
1363	1368		governing board and to the State Fire Marshal State Engineer as they shall by ordinance, rule, or 19
1364	1369		regulation require." 20
1365	1370		SECTION 7.6. G.S. 160D-1127 reads as rewritten: 21
1366	1371		"§ 160D-1127. Appeals. 22
1367	1372		Unless otherwise provided by law, appeals from any order, decision, or determination by a 23
1368	1373		member of a local inspection department pertaining to the North Carolina State Building Code 24
1369	1374		or other State building laws shall be taken to the State Fire Marshal State Engineer or the State 25
1370	1375		Fire Marshal's State Engineers's designee or other official specified in G.S. 143-139 by filing a 26
1371	1376		written notice with the State Fire Marshal State Engineer and with the inspection department 27
1372	1377		within a period of 10 days after the order, decision, or determination. Further appeals may be 28
1373	1378		taken to the Building Code Council or Residential Code Council or to the courts as provided by 29
1374	1379		law." 30
1375	1380		31
1376	1381		PART VIII. MISCELLANEOUS CONFORMING CHANGES 32
1377	1382		SECTION 8.1. G.S. 66-25 reads as rewritten: 33
1378	1383		"§ 66-25. Acceptable listings as to safety of goods. 34
1379	1384		(a) All electrical materials, devices, appliances, and equipment shall be evaluated for 35
1380	1385		safety and suitability for intended use. Except as provided in subsections (b) and (c) of this 36
1381	1386		section, this evaluation shall be conducted in accordance with nationally recognized standards 37
1382	1387		and shall be conducted by a qualified testing laboratory. The State Fire Marshal, State Engineer, 38
1383	1388		through the Engineering and Building Codes Division Engineering Division of the Department 39
1384	1389		of Insurance, Office of Engineering and Codes, shall implement the procedures necessary to 40
1385	1390		approve suitable national standards and to approve suitable qualified testing laboratories. The 41
1386	1391		State Fire Marshal State Engineer may assign his authority to implement the procedures for 42
1387	1392		specific materials, devices, appliances, or equipment to other agencies or bodies when they would 43
1388	1393		be uniquely qualified to implement those procedures. 44
1389	1394		In the event that the State Fire Marshal State Engineer determines that electrical materials, 45
1390	1395		devices, appliances, or equipment in question cannot be adequately evaluated through the use of 46
1391	1396		approved national standards or by approved qualified testing laboratories, the Engineering and 47
1392	1397		Building Codes Division Engineering Division of the Department of Insurance Office of 48
1393	1398		Engineering and Codes shall specify any alternative evaluations which safety requires. 49 General Assembly Of North Carolina Session 2025
1394		-	Page 28 ~~Senate Bill 700-First Edition~~
	1399	+	Page 28 DRS15300-BGxfa-5
1395	1400		The Engineering and Building Codes Division Engineering Division of the Department of 1
1396	1401		Insurance Office of Engineering and Codes shall keep in file, where practical, copies of all 2
1397	1402		approved national standards and resumes of approved qualified testing laboratories. 3
1398	1403		…." 4
1399	1404		SECTION 8.2. G.S. 115C-525 reads as rewritten: 5
1400	1405		"§ 115C-525. Fire prevention. 6
1401	1406		(a) Duty of Principal Regarding Fire Hazards. – The principal of every public school in 7
1402	1407		the State shall have the following duties regarding fire hazards during periods when he is in 8
1403	1408		control of a school: 9
1404	1409		… 10
1405	1410		(2) Every principal shall make certain that no electrical wiring shall be installed 11
1406	1411		within any school building or structure or upon the premises and that no 12
1407	1412		alteration or addition shall be made in any existing wiring, except with the 13
1408	1413		authorization of the superintendent. Any such work shall be performed by a 14
1409	1414		licensed electrical contractor, or by a maintenance electrician regularly 15
1410	1415		employed by the board of education and approved by the State Fire 16
1411	1416		Marshal.State Engineer. 17
1412	1417		… 18
1413	1418		(b) Inspection of Schools for Fire Hazards; Removal of Hazards. – Every public school 19
1414	1419		building in the State shall be inspected a minimum of two times during the year in accordance 20
1415	1420		with the following plan: Provided, that the periodic inspections herein required shall be at least 21
1416	1421		120 days apart: 22
1417	1422		(1) Each school building shall be inspected to make certain that none of the fire 23
1418	1423		hazards enumerated in G.S. 115C-525(a)(1) through (5) exist, and to ensure 24
1419	1424		that the building and all heating, mechanical, electrical, gas, and other 25
1420	1425		equipment and appliances are properly installed and maintained in a safe and 26
1421	1426		serviceable manner as prescribed by the North Carolina Building Code. 27
1422	1427		Following each inspection, the persons making the inspection shall furnish to 28
1423	1428		the principal of the school a written report of conditions found during 29
1424	1429		inspection, upon forms furnished by the State Fire Marshal, State Engineer, 30
1425	1430		and the persons making the inspection shall also furnish a copy of the report 31
1426	1431		to the superintendent of schools; the superintendent shall keep such copy on 32
1427	1432		file for a period of three years. In addition to the periodic inspections herein 33
1428	1433		required, any alterations or additions to existing school buildings or to school 34
1429	1434		building utilities or appliances shall be inspected immediately following 35
1430	1435		completion. 36
1431	1436		… 37
1432	1437		(3) It shall be the duty of the State Fire Marshal, State Engineer, the 38
1433	1438		Superintendent of Public Instruction, and the State Board of Education to 39
1434	1439		prescribe any additional rules and regulations which they may deem necessary 40
1435	1440		in connection with such inspections and reports for the reduction of fire 41
1436	1441		hazards and protection of life and property in public schools. 42
1437	1442		…." 43
1438	1443		44
1439	1444		PART IX. MISCELLANEOUS PROVISIONS RELATED TO THE TRANSITION OF 45
1440	1445		VARIOUS DUTIES, BOARDS, COUNCILS, AND DIVISIONS TO THE OFFICE OF 46
1441	1446		ENGINEERING AND CODES 47
1442	1447		SECTION 9.1. Notwithstanding G.S. 95-280, as enacted by Section 1.1 of this act, 48
1443	1448		until the General Assembly confirms an independent State Engineer as provided in G.S. 95-280, 49
1444	1449		as enacted by Section 1.1 of this act, the State Fire Marshal shall continue to have the same 50
1445	1450		powers under Article 78A of Chapter 58 of the General Statutes prior to the effective date of this 51 General Assembly Of North Carolina Session 2025
1446		-	~~Senate Bill 700-First Edition~~ Page 29
	1451	+	DRS15300-BGxfa-5 Page 29
1447	1452		act for the purpose of executing the laws of this State that are being assigned to the State Engineer 1
1448	1453		and the Office of Engineering and Codes by the General Assembly by this act. 2
1449	1454		SECTION 9.2 All employees of the Office of the State Fire Marshal affected by the 3
1450	1455		transfer of a Board, Council, or Division enumerated within G.S. 95-280(b), as enacted by 4
1451	1456		Section 1.1 of this act, shall continue as employees of the Office of the State Fire Marshal at their 5
1452	1457		option or until further action is taken by the Department of Labor to transfer employees from the 6
1453	1458		Office of the State Fire Marshal and in accordance with law. All programs and functions 7
1454	1459		conducted by the Office of the State Fire Marshal shall continue without any reduction in funds, 8
1455	1460		responsibilities, or administrative support, including, but not limited to, budgetary, human 9
1456	1461		resources, information technology, and legal, until further action is taken by the Department of 10
1457	1462		Labor to transfer programs and functions from the Office of the State Fire Marshal and in 11
1458	1463		accordance with law. 12
1459	1464		SECTION 9.3. No pending action or proceeding, brought by or against the Office 13
1460	1465		of the State Fire Marshal, or any Board, Council, or Division enumerated in G.S. 95-280(b), as 14
1461	1466		enacted by Section 1.1 of this act, shall be affected by any provision of this act. Any business or 15
1462	1467		other matter undertaken or commanded by any program or contract by the Office of the State 16
1463	1468		Fire Marshal, or any Board, Council, or Division transferred by this act and pertaining to or 17
1464	1469		connected with the functions, powers, obligations, and duties set forth herein, which are pending 18
1465	1470		on July 1, 2026, may be conducted and completed in the same manner and under the same terms 19
1466	1471		and conditions and with the same effect as if conducted and completed by the original program, 20
1467	1472		the Office of the State Fire Marshal, or any Board, Council, or Division transferred by this act. 21
1468	1473		SECTION 9.4. The transfer provided for under this act shall not affect any ongoing 22
1469	1474		investigation in effect on July 1, 2026, conducted by the Office of the State Fire Marshal, or any 23
1470	1475		Board, Council, or Division enumerated in G.S. 95-280(b), as enacted by Section 1.1 of this act. 24
1471	1476		Prosecutions for offenses or violations committed before July 1, 2026, are not abated or affected 25
1472	1477		by this act. 26
1473	1478		SECTION 9.5. The transfer provided for under this act shall not affect any ongoing 27
1474	1479		order in effect on July 1, 2026, issued by the Office of the State Fire Marshal, or any Board, 28
1475	1480		Council, or Division enumerated in G.S. 95-280(b), as enacted by Section 1.1 of this act. 29
1476	1481		SECTION 9.6. Rules and forms adopted by the Office of the State Fire Marshal, or 30
1477	1482		any Board, Council, or Division enumerated in G.S. 95-280(b), as enacted by Section 1.1. of this 31
1478	1483		act., in effect on July 1, 2026, shall remain in effect until amended or repealed, by the responsible 32
1479	1484		Board, Council, or Division enumerated in G.S. 95-280(b), as enacted by Section 1.1. of this act, 33
1480	1485		as necessary. 34
1481	1486		SECTION 9.7. Within the Department of Labor General Fund (Budget Code 13800), 35
1482	1487		the Office of State Budget and Management shall establish a new budget fund. OSBM shall 36
1483	1488		transfer both of the following from the Office of the State Fire Marshal (Budget Fund 101612) 37
1484	1489		to the new fund: 38
1485	1490		(1) All funds supporting the Office of Engineering and Codes, established by 39
1486	1491		Section 1.1. of this act. 40
1487	1492		(2) All positions and associated costs in the Office of Engineering and Codes, 41
1488	1493		established by Section 1.1. of this act. 42
1489	1494		SECTION 9.8. The Office of State Budget and Management shall, in conjunction 43
1490	1495		with the Office of Engineering and Codes (OEC), adjust OEC's base budget for each fiscal year 44
1491	1496		of the 2025-2027 fiscal biennium to use proceeds from the insurance regulatory charge 45
1492	1497		established under G.S. 58-6-25, as amended by Section 2.1. of this act., to reimburse the General 46
1493	1498		Fund as authorized by G.S. 58-6-25(d)(12), as enacted by Section 2.1 of this act. 47
1494	1499		48
1495	1500		PART X. SEVERABILITY CLAUSE AND EFFECTIVE DATE 49
1496	1501		50
1497	1502		SEVERABILITY CLAUSE 51 General Assembly Of North Carolina Session 2025
1498		-	Page 30 ~~Senate Bill 700-First Edition~~
	1503	+	Page 30 DRS15300-BGxfa-5
1499	1504		SECTION 10.1. If any section or provision of this act is declared unconstitutional 1
1500	1505		or invalid by the courts, it does not affect the validity of this act as a whole or any part other than 2
1501	1506		the part declared to be unconstitutional or invalid. 3
1502	1507		4
1503	1508		EFFECTIVE DATE 5
1504	1509		SECTION 10.2. This act becomes effective July 1, 2026. 6