Building Industry Efficiency Act of 2025.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 4
HOUSE BILL 661
Committee Substitute Favorable 4/10/25
Committee Substitute #2 Favorable 6/17/25
Fourth Edition Engrossed 6/18/25

Short Title: Building Industry Efficiency Act of 2025. (Public)
Sponsors:
Referred to:
April 2, 2025
*H661-v-4*
A BILL TO BE ENTITLED 1
AN ACT TO AMEND VARI OUS LAWS TO PROVIDE ADDITIONAL BUILDING 2
INDUSTRY EFFICIENCY. 3
The General Assembly of North Carolina enacts: 4
5
PART I. LOCAL DEVELOPMENT AND CONSTRUCTION REGULATION 6
7
PROHIBIT INSPECTION DEPARTMENTS FROM CHARGING FEES FOR CERTAIN 8
INSPECTION CANCELLATIONS 9
SECTION 1.1. G.S. 160D-1104 is amended by adding a new subsection to read: 10
"(d2) An inspection department shall not charge the permit holder a fee or fail an inspection 11
of a building or structure subject to the No rth Carolina Residential Code , if the permit holder 12
cancels a scheduled inspection more than one business day before the scheduled inspection." 13
14
LIMIT DESIGN METHODOLOGY AND CONSTRUCTION STANDARDS FOR 15
CERTAIN MUNICIPAL STREETS 16
SECTION 1.2.(a) Article 15 of Chapter 160D of the General Statutes is amended by 17
adding a new section to read: 18
"§ 160D-1502. Limit s treet design methodology and construction standards for certain 19
municipal streets. 20
Notwithstanding G.S. 136-66.4, municipalities shall not implement design methodology and 21
construction standards for new streets and highways to be accepted by a municipality, utilizing 22
funds that are not wholly municipal funds, that are more stringent than design methodology and 23
construction standards utilized by the North Carolina Department of Transportation. Nothing in 24
this section limits the authority of the North Carolina Department of Transportation to regulate 25
street connections to a public system as authorized by law." 26
SECTION 1.2.(b) This section becom es effective January 1, 2026, and applies to 27
projects initiated on or after that date. 28
29
LIMIT DESIGN METHODOLOGY AND CONSTRUCTION STANDARDS FOR 30
CERTAIN PRIVATE STREETS 31
SECTION 1.3.(a) Article 15 of Chapter 160D of the General Statutes is amended by 32
adding a new section to read: 33
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"§ 160D-1503. Limit street design methodology and construction standards for certain 1
private streets. 2
Municipalities shall not implement design methodology and construction standards for new 3
streets designated as private, and intended to remain privately owned after construction, that are 4
more stringent than design methodology and construction standards utilized by the North 5
Carolina Depar tment of Transportation . Notwithstanding any design methodology and 6
construction standards implemented by the municipality , the municipality must accept 7
engineered street design methodology and construction standards that do not meet minimum 8
standards utilized by the North Carolina Department of Transportation if the engineered street 9
design methodology and construction standards are signed and sealed by a duly licensed 10
professional engineer, under Chapter 89C of the General Statutes, and meet vehicular traffic and 11
fire apparatus access requirements. If engineered street design methodology and construction 12
standards do not meet minimum standards utilized by the North Carolina Department of 13
Transportation, the developer must include disclosures to prospec tive buyers as outlined in 14
G.S. 136-102.6(f) prior to entering into any agreement or any conveyance with any prospective 15
buyer. A local government is discharged and released from any liabilities, duties, and 16
responsibilities imposed by this Chapter, or in common law, from any claim arising out of, or 17
attributed to, the plan review or acceptance of signed and sealed engineered street design 18
methodology and construction standards submitted pursuant to this section. Nothing in this 19
section limits the authority of local governments or the North Carolina Department of 20
Transportation to regulate private road, driveway, or street connection to a public system, or to 21
regulate transportation and utilities as otherwise authorized by law." 22
SECTION 1.3.(b) This section becomes effective January 1, 2026, and applies to 23
projects initiated on or after that date. 24
25
LOCAL GOVERNMENT REQUIREMENTS FOR PEDESTRIAN FACILITIES AND 26
ROADWAY IMPROVEMENTS IN EXTRATERRITORIAL JURISDICTION 27
SECTION 1.4.(a) Article 15 of Chapter 160D of the General Statutes is amended by 28
adding a new section to read: 29
"§ 160D-1504. Local government requirements for p edestrian facilit ies and roadway 30
improvements within extraterritorial jurisdiction. 31
A local government that requires a developer to construct pedestrian facilities or roadway 32
improvements, which include improvements within public right -of-way located outside of a 33
construction project boundary, to standards or with attributes which would preclude a pedestrian 34
facility or roadway improvement from acceptance by the North Carolina Department of 35
Transportation, shall coordinate with the Department to enter into agreements for the local 36
government to assume maintenance and repair responsibilities for the portions of pedestrian 37
facilities or street improvement s precluded from acceptance by the Department . This section 38
applies to projects located within an extraterritorial jurisdiction established pursuant to Article 2 39
of this Chapter. 40
SECTION 1.4.(b) This section becomes effective January 1, 2026, and applies to 41
projects initiated on or after that date. 42
43
AMEND PUBLIC STREET DEDICATION ABANDONMENT PROCESS 44
SECTION 1.5. G.S. 136-96 reads as rewritten: 45
"§ 136-96. Road or street not used within 15 years after dedication deemed abandoned; 46
declaration of withdrawal recorded; joint tenants or tenants in common; defunct 47
corporations. 48
(a) Every strip, piece, or parcel of land that has been at any time dedicated to public use 49
as a road, highway, street, avenue, or f or any other purpose whatsoever, by a deed, grant, map, 50
plat, or other means, and that has not been actually opened and used by the public within 15 years 51
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House Bill 661-Fourth Edition Page 3
after its dedication is conclusively presumed to have been abandoned by the public for the 1
purposes f or which it was dedicated; and no person shall have any right or cause of action 2
thereafter to enforce any public or private easement in the land. 3
(b) Notwithstanding subsection (a) of this section, no abandonment of any public or 4
private right or easement shall be presumed until the dedicator or a person claiming under the 5
dedicator files or causes to be recorded in the register's office of the county where the land lies a 6
declaration withdrawing the strip, piece, or parcel of land from the public or private use to which 7
it was dedicated. 8
(c) When the fee simple title is vested in tenants in common or joint tenants of any land 9
embraced within the boundaries of a road, highway, street, avenue, or other land dedicated for 10
any public purpose whatsoever, as described in this section, any one or more of the cotenants, on 11
the cotenant's behalf and on behalf of the other cotenants, may execute and cause to be registered 12
in the office of the register of deeds of the county where the land is situated the declaration of 13
withdrawal provided for in this section. Under Chapter 46A (Partition) of the General Statutes 14
and Article 29A (Judicial Sales) of Chapter 1 of the General Statutes, and on petition of any one 15
or more of the cotenants, the land thereafter may be partitioned by sale only as between or among 16
the cotenants, irrespective of who may be in actual possession of the land. In the partition 17
proceeding, any cotenant may object to the withdrawal certificate and the court shall thereupon 18
order the certificate cancelled of record. 19
(d) When any corporation has dedicated any strip, piece, or parcel of land in the manner 20
set out in this section, and the dedicating corporation is no longer in existence, the corporation is 21
conclusively presumed to have no further right, tit le, or interest in the land, regardless of the 22
provisions of conveyances from the corporation, or those holding under the corporation, retaining 23
title and interest in the land. The right, title, and interest in the land is conclusively presumed to 24
be vested in those persons owning lots or parcels of land adjacent to it, subject to the provisions 25
of this section. 26
(e) This section does not apply in any of the following circumstances: 27
(1) When the continued use of any strip of land dedicated for street or high way 28
purposes is necessary to afford convenient ingress or egress to any lot or parcel 29
of land sold and conveyed by the dedicator of the street or highway. 30
(2) When the public dedication is part of a future street shown on the street plan 31
adopted pursuant t o G.S. 136-66.2. Upon request, a city shall adopt a 32
resolution indicating that the dedication described in the proposed declaration 33
of withdrawal is or is not part of the street plan adopted under G.S. 136-66.2. 34
This resolution shall be attached to the declaration of withdrawal and shall be 35
registered in the office of the register of deeds of the county where the land is 36
situated. 37
(f) Any strip, piece, or parcel of land that was dedicated to public use as a local road, 38
highway, street, or avenue by plat on December 22, 1978, but that has not been maintained as a 39
local public road, highway, street, or avenue by a local governmental entity by January 1, 2025, 40
is hereby deemed withdrawn for public use, any rights of the public therein are deemed 41
abandoned, and no person or governmental entity shall have any right or cause of action to 42
enforce any public interest or easement in such land pursuant to this section." 43
44
PART II. NORTH CAROLINA STATE BUILDING CODE 45
46
EXEMPT MODEL HOMES FROM FIRE PROTECTION WATER SUPPLY 47
REQUIREMENT DURING CONSTRUCTION 48
SECTION 2.1.(a) Definitions. – For the purposes of this section, the following 49
definitions apply: 50
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(1) Code. – The North Carolina State Building Code, and amendments to the 1
Code, as adopted by the Councils. 2
(2) Councils. – The Building Code Council and Residential Code Council. 3
(3) Model home. – As defined in G.S. 160D-1501(a). 4
(4) Water Supply Rules. – Section 3312.1, when required, of the North Carolina 5
Fire Code, and Section 3313.1, where required, of the North Carolina Building 6
Code. 7
SECTION 2.1.(b) Water Supply Rules. – Until the effective date of the rules to 8
amend Water Supply Rules, the Office of the State Fire Marsh al, the Councils, and State and 9
local governments enforcing the Code shall implement Water Supply Rules as provided in 10
subsection (c) of this section. 11
SECTION 2.1.(c) Implementation. – Notwithstanding Water Supply Rules, the fire 12
code official is authorized to reduce the fire-flow requirements for an isolated model home at a 13
subdivision project site where development of full -fire flow requirements is impractical or 14
pending. 15
SECTION 2.1.(d) Additional Rulemaking Authority. – The Council shall adopt rules 16
to amend Water Supply Rules to be consistent with subsection (c) of this section. 17
Notwithstanding G.S. 150B-19(4), the rule adopted by the Council pursuant to this section shall 18
be substantively identical to the provisions of subsection (c) of this section . Rules adopted 19
pursuant to this section are not subject to Part 3 of Article 2A of Chapter 150B of the General 20
Statutes. Rules adopted pursuant to this section shall become effective as provided in 21
G.S. 150B-21.3(b1) as though 10 or more written objection s had been received as provided in 22
G.S. 150B-21.3(b2). 23
SECTION 2.1.(e) Additional Residential Code Council Rulemaking Authority. – 24
The Residential Code Council shall adopt rules to amend the 2024 North Carolina State Building 25
Code volumes specified within G.S. 143-138(a)(1) through (10) to make conforming changes to 26
codes applicable to residential construction consistent with rules adopted by the Building Code 27
Council as required by subsection (d) of this section. Rules adopted pursuant to this subsection 28
are not subject to Part 3 of Article 2A of Chapter 150B of the General Statutes. Rules adopted 29
pursuant to this subsection shall become effective as provided in G.S. 150B-21.3(b1) as though 30
10 or more written objections had been received as provided in G.S. 150B-21.3(b2). 31
SECTION 2.1.(f) Sunset. – This section expires when permanent rules adopted as 32
required by subsections (d) and (e) of this section become effective. 33
34
NORTH CAROLINA STATE BUILDING CODE VOLUME REFERENCE TECHNICAL 35
CORRECTIONS 36
SECTION 2.2.(a) G.S. 44A-11.1(a) reads as rewritten: 37
"(a) With regard to any improvements to real property to which this Article is applicable 38
for which the costs of the undertaking are forty thousand dollars ($40,000) or more, either at the 39
time that the original building permit is issued or, in cases in which no building permit is required, 40
at the time the contract for the improvements is entered into with the owner, the owner shall 41
designate a lien agent no later than the time the owner first contracts with any person to improve 42
the real property. Provided, however, that the owner is not required to designate a lien agent for 43
improvements to an existing single-family residential dwelling unit as defined in G.S. 87-15.5(7) 44
that is occupied by the owner as a residence, or for the addition of an accessory building or 45
accessory structure as defined in the North Carolina Uniform Residential Building Code, the use 46
of which is incidental to that residence. The owner shall deliver written notice of designation to 47
its designated lien agent by any method authorized in G.S. 44A-11.2(f), and shall include in its 48
notice the street address, tax map lot and block number, reference to recorded instrument, or any 49
other description that reasonably identifies the real property fo r the improvements to which the 50
lien agent has been designated, and the owner's contact information. Designation of a lien agent 51
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House Bill 661-Fourth Edition Page 5
pursuant to this section does not make the lien agent an agent of the owner for purposes of 1
receiving a Claim of Lien on Real P roperty, a Notice of Claim of Lien upon Funds, a Notice of 2
Subcontract, or for any purpose other than the receipt of notices to the lien agent required under 3
G.S. 44A-11.2." 4
SECTION 2.2.(b) G.S. 58-45-5(5) reads as rewritten: 5
"(5) Insurable property. – Real property at fixed locations in the beach and coastal 6
area, including travel trailers when tied down at a fixed location, or the 7
tangible personal property located therein, but shall not include insurance on 8
motor vehicles; which property is determined b y the Association, after 9
inspection and under the criteria specified in the plan of operation, to be in an 10
insurable condition. However, any one and two family dwellings built in 11
substantial accordance with the Federal Manufactured Home Construction 12
and Sa fety Standards, any predecessor or successor federal or State 13
construction or safety standards, and any further construction or safety 14
standards promulgated by the association and approved by the Commissioner, 15
or the North Carolina Uniform Residential Building Code and any structure 16
or building built in substantial compliance with the North Carolina State 17
Building Code, including the design -wind requirements, which is not 18
otherwise rendered uninsurable by reason of use or occupancy, shall be an 19
insurable ri sk within the meaning of this Article. However, none of the 20
following factors shall be considered in determining insurable condition: 21
neighborhood, area, location, environmental hazards beyond the control of the 22
applicant or owner of the property. Also, an y structure begun on or after 23
January 1, 1970, not built in substantial compliance with the Federal 24
Manufactured Home Construction and Safety Standards, any predecessor or 25
successor federal or State construction or safety standards, and any further 26
construction or safety standards promulgated by the association and approved 27
by the Commissioner, or the North Carolina Uniform Residential Building 28
Code or the North Carolina State Building Code, including the design -wind 29
requirements therein, shall not be an in surable risk. The owner or applicant 30
shall furnish with the application proof in the form of a certificate from a local 31
building inspector, contractor, engineer or architect that the structure is built 32
in substantial accordance with the Federal Manufactured Home Construction 33
and Safety Standards, any predecessor or successor federal or State 34
construction or safety standards, and any further construction or safety 35
standards promulgated by the association and approved by the Commissioner, 36
or the North Carolin a Uniform Residential Building Code or the North 37
Carolina State Building Code; however, an individual certificate shall not be 38
necessary where the structure is located within a political subdivision which 39
has certified to the Association on an annual basis that it is enforcing the North 40
Carolina Uniform Residential Building Code or the North Carolina State 41
Building Code and has no plans to discontinue enforcing these codes during 42
that year." 43
SECTION 2.2.(c) G.S. 87-10(b1) reads as rewritten: 44
"(b1) Public utilities contractors constructing house and building sewer lines as provided in 45
sub-subdivision a. of subdivision (3) of subsection (b) of this section shall, at the junction of the 46
public sewer line and the house or building sewer line, install as an extension of the public sewer 47
line a cleanout at or near the property line that terminates at or above the finished grade. Public 48
utilities contractors constructing water service lines as provided in sub -subdivision a. of 49
subdivision (3) of subsection (b) of this section shall terminate the water service lines at a valve, 50
box, or meter at which the facilities from the building may be connected. Public utilities 51
General Assembly Of North Carolina Session 2025
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contractors constructing fire service mains for connection to fire sprinkler systems shall terminate 1
those lines at a flange, cap, plug, or valve inside the building one foot above the finished floor. 2
All fire service mains shall comply with the NFPA standards for fire service mains as 3
incorporated into and made applicable by Volume V of the North Carolina State Building Code." 4
SECTION 2.2.(d) G.S. 87-14(a1) reads as rewritten: 5
"(a1) Any person, firm, or corporation, upon making application to the building inspector 6
or other authority of any incorporated city, town, or county in North Carolina charged wi th the 7
duty of issuing building permits pursuant to G.S. 160D-1110 for any improvements for which 8
the combined cost is to be forty thousand dollars ($40,000) or more, other than for improvements 9
to an existing single-family residential dwelling unit as defined in G.S. 87-15.5(7) that the owner 10
occupies as a residence, or for the addition of an accessory building or accessory structure as 11
defined in the North Carolina Uniform Residential Building Code, the use of which is incidental 12
to that residential dwell ing unit, shall be required to provide to the building inspector or other 13
authority the name, physical and mailing address, telephone number, facsimile number, and 14
email address of the lien agent designated by the owner pursuant to G.S. 44A-11.1(a)." 15
SECTION 2.2.(e) G.S. 87-21(c1) reads as rewritten: 16
"(c1) Exemption. – The provisions of this Article shall not apply to a person who performs 17
the on-site assembly of a factory designed drain line system for a manufactured home, as defined 18
in G.S. 143-143.9(6), if the person (i) is a licensed manufactured home retailer, a licensed 19
manufactured home set-up contractor, or a full-time employee of either, (ii) obtains an inspection 20
by the local inspections department and (iii) performs the assembly according to the State North 21
Carolina Plumbing Code." 22
SECTION 2.2.(f) G.S. 143-150 reads as rewritten: 23
"§ 143-150. No electricity to be furnished units not in compliance. 24
It is unlawful for any person to furnish electricity for use in any manufactured home without 25
first ascertaining that the manufactured home and its electrical supply has been inspected 26
pursuant to G.S. 143-139 by the inspection authority having jurisdiction and found to comply 27
with the requirements of the State North Carolina Electrical Code. The certificate of compliance 28
issued by the inspection jurisdiction shall be accepted as evidence of compliance." 29
SECTION 2.2.(g) G.S. 160D-702(c) reads as rewritten: 30
"(c) A zoning or other development regulation shall not do any of the following: 31
(1) Set a minimum square footage of any structures subject to regulation under 32
the North Carolina Residential Code. 33
(2) Require a parking space to be larger than 9 feet wide by 20 feet long unless 34
the parking space is designated for handicap, parallel, or diagonal parking. 35
(3) Require additional fire apparatus access roads into developments of one - or 36
two-family dwellings that are not in compliance with the required number of 37
fire apparatus access roads into developments of one- or two-family dwellings 38
set forth in the Fire Code of the North Carolina Residential Code for One- and 39
Two-Family Dwellings.North Carolina Fire Code." 40
SECTION 2.2.(h) G.S. 160D-1117 reads as rewritten: 41
"§ 160D-1117. Periodic inspections. 42
The inspection department may make periodic inspections, subje ct to the governing board's 43
directions, for unsafe, unsanitary, or otherwise hazardous and unlawful conditions in buildings 44
or structures within its planning and development regulation jurisdiction. In exercising this 45
power, members of the department shall have a right to enter on any premises within the 46
jurisdiction of the department at all reasonable hours for the purposes of inspection or other 47
enforcement action, upon presentation of proper credentials. Inspections of dwellings shall 48
follow the provisions of G.S. 160D-1207. Nothing in this section shall be construed to prohibit 49
periodic inspections in accordance with State fire prevention code the North Carolina Fire Code 50
or as otherwise required by State law." 51
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SECTION 2.2.(i) G.S. 160D-1207(a) reads as rewritten: 1
"(a) Except as provided in subsection (b) of this section, the inspection department may 2
make periodic inspections only when there is reasonable cause to believe that unsafe, unsanitary, 3
or otherwise hazardous or unlawful conditions may exist i n a residential building or structure. 4
However, when the inspection department determines that a safety hazard exists in one of the 5
dwelling units within a multifamily building, which in the opinion of the inspector poses an 6
immediate threat to the occupan t, the inspection department may inspect, in the absence of a 7
specific complaint and actual knowledge of the unsafe condition, additional dwelling units in the 8
multifamily building to determine if that same safety hazard exists. For purposes of this section, 9
the term "reasonable cause" means any of the following: (i) the landlord or owner has a history 10
of more than two verified violations of the housing ordinances or codes within a 12-month period, 11
(ii) there has been a complaint that substandard conditions exist within the building or there has 12
been a request that the building be inspected, (iii) the inspection department has actual knowledge 13
of an unsafe condition within the building, or (iv) violations of the local ordinances or codes are 14
visible from the outside of the property. In conducting inspections authorized under this section, 15
the inspection department shall not discriminate between single-family and multifamily buildings 16
or between owner -occupied and tenant -occupied buildings. In exercising this power, members 17
of the department shall have a right to enter on any premises within the jurisdiction of the 18
department at all reasonable hours for the purposes of inspection or other enforcement action, 19
upon presentation of proper credentials. Nothing in t his section shall be construed to prohibit 20
periodic inspections in accordance with State fire prevention code the North Carolina Fire Code 21
or as otherwise required by State law." 22
SECTION 2.2.(j) G.S. 162A-900(c) reads as rewritten: 23
"(c) A local government unit, as defined in G.S. 162A-201, shall not implement a scoring 24
or preference system to allocate water or sewer service among applicants for water or sewer 25
service for residential development that does any of the following: 26
(1) Includes consideration of building design elements, as defined in 27
G.S. 160D-702(b). 28
(2) Sets a minimum square footage of any structures subject to regulation under 29
the North Carolina Residential Code. 30
(3) Requires a parking space to be larger than 9 feet wide by 20 feet long unless 31
the parking space is designated for handicap, parallel, or diagonal parking. 32
(4) Requires additional fire apparatus access roads into developments of one - or 33
two-family dwellings that are not in compliance with the required number of 34
fire apparatus access roads into developments of one- or two-family dwellings 35
set forth in the Fire Code of the North Carolina Residential Code. North 36
Carolina Fire Code." 37
SECTION 2.2.(k) G.S. 143-151.8 reads as rewritten: 38
"§ 143-151.8. Definitions. 39
(a) The following definitions apply in this Article: 40
… 41
(3) Code enforcement. – The examination and approval of plans and 42
specifications, the inspection of the manner of construction, workmanship, 43
and materials for construction of buildings and structures and their 44
components, or th e enforcement of fire code regulations by any of the 45
following, to assure compliance with the North Carolina State Building Code 46
and related local building rules:Code: 47
… 48
(c) For purposes of this Article, "willful misconduct, gross negligence, or gross 49
incompetence" in addition to the meaning of those terms under other provisions of the General 50
Statutes or at common law, includes any of the following: 51
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… 1
(3) Refusing to allow an alternative construction method currently included in the 2
Building Code under the conditions or circumstances set forth in the Code for 3
that alternative method. 4
… 5
(7) Enforcing a Code official's preference in the method or manner of installation 6
of heating ventilation and air -conditioning units, appliances, or equipment if 7
it is not re quired by the State Building Code and is in contradiction of a 8
manufacturer's installation instructions or specifications." 9
10
DIRECT THE NORTH CAROLINA BUILDING CODE COUNCIL TO ADOPT RULES 11
TO AMEND THE STATE BUILDING CODE AND STATE FIRE CODE TO CLARIFY 12
EXEMPTIONS FROM IN -BUILDING EMERGENCY RESPONDER 13
COMMUNICATION COVERAGE REQUIREMENTS 14
SECTION 2.3.(a) Definitions. – For purposes of this section, the following are 15
defined: 16
(1) Code. – The North Carolina State Building Code collection, including the 17
North Carolina Fire Code, and amendments thereto, as adopted by the 18
Council. 19
(2) Council. – The North Carolina Building Code Council. 20
(3) Emergency responder communication coverage requirements. – The 21
requirements for in-building emergency responder communications coverage 22
systems specified under Section 510 of the North Carolina Fire Code. 23
SECTION 2.3.(b) Exemptions Established. – Notwithstanding the emergency 24
responder communication coverage requirements of the Code, the following buildings and 25
structures, whether existing, newly constructed, or altered after the effective date of this act, are 26
exempt from those requirements: 27
(1) R-2 apartment occupancies of Type V construction that meet the egress 28
requirements of the North Carolina State Building Code. 29
(2) Apartment buildings and transient public lodging establishments, including 30
hotels and motels, not exceeding two stories above grade plane and that 31
provide direct exterior egress from each dwelling unit or guest room. 32
SECTION 2.3.(c) Treatment of Existing Systems in Exempted Buildings. – 33
Notwithstanding Section 901.6 of the North Carolina Fire Code or any other provision of the 34
Code that might require the removal of nonrequired, obsolete, or abandoned systems, an 35
emergency responder communication coverage system installed prior to the effective date of this 36
section in a building or structure that meets the exemption criteria established in subsection (b) 37
of this section shall only be required to have only active components of the enhancement system 38
to render them inoperative removed. Systems that are monitored by a fire alarm system shall be 39
properly disconnected to eliminate unnecessary supervisory signals. 40
SECTION 2.3.(d) Rulemaking Required. – The Council shall adopt rules to amend 41
the Code, specifically Section 510 of the North Carolina Fire Code and any related sections 42
addressing emergency responder communication coverage, to incorporate the exemptions listed 43
in subsection (b) of this section and the provisions regarding existing systems in subsection ( c) 44
of this section. Notwithstanding G.S. 150B-19(4), the rules adopted by the Council pursuant to 45
this section shall be substantively identical to the provisions of subsections (b) and (c) of this 46
section. Rules adopted pursuant to this section are not subject to Part 3 of Article 2A of Chapter 47
150B of the General Statutes. Rules adopted pursuant to this section shall become effective as 48
provided in G.S. 150B-21.3(b1), as though 10 or more written objections had been received as 49
provided in G.S. 150B-21.3(b2). 50
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SECTION 2.3.(e) Interim Application of Exemptions. – Until the effective date of 1
the permanent rules that the Council is required to adopt pursuant to subsection (d) of this section, 2
the Council and local governments enforcing the Code shall not enforce the emergency responder 3
communication coverage requirements against buildings and structures that meet the exemption 4
criteria established in subsection (b) of this section and shall apply the provisions regarding 5
existing systems established in subsection (c) of this section. 6
SECTION 2.3.(f) Sunset. – This section expires when permanent rules adopted as 7
required by subsection (d) of this section become effective. 8
9
PART III. VARIOUS CONTRACTOR BOARDS 10
11
LIMITED EXEMPTION FOR PLUMBING AND HEATING CONTRACTOR BOARD 12
INVESTIGATIVE RECORDS FROM PUBLIC RECORDS 13
SECTION 3.1. Article 2 of Chapter 87 of the General Statutes is amended by adding 14
a new section to read: 15
"§ 87-22.3. Investigation records of the Board. 16
All records, papers, investigative files, investigative notes, reports, other investigative 17
information, and other documents containing information in the possession of or received, 18
gathered, or completed by the Board, its members, staff, employees, attorneys, or consultants as 19
a result of investi gations, inquiries, assessments, or interviews conducted in connection with a 20
license application or disciplinary action initiated by the Board , shall not be considered public 21
records within the meaning of Chapter 132 of the General Statutes. Documents described in this 22
section are privileged, confidential, and not subject to discovery, subpoena, or other means of 23
legal compulsion for release to any person other than the Board or its employees or consultants. 24
If any record, paper, or other document containing information collected and compiled by or on 25
behalf of the Board is received and admitted in evidence in any hearing before the Board, the 26
documents shall be a public record within the meaning of Chapter 132 of the General Statutes." 27
28
LIMITED EXEMPTION F OR ELECTRICAL CONTRACTOR BOARD 29
INVESTIGATIVE RECORDS FROM PUBLIC RECORDS 30
SECTION 3.2. Article 4 of Chapter 87 of the General Statutes is amended by adding 31
a new section to read: 32
"§ 87-47.1. Investigation records of the Board. 33
All records, papers, investigative files, investigative notes, reports, other investigative 34
information, and other documents containing information in the possession of or received, 35
gathered, or completed by the Board, its members, staff, employees, attorneys, or consultants as 36
a result of investigations, inquiries, assessments, or interviews conducted in connection with a 37
license application or disciplinary action initiated by the Board shall not be considered public 38
records within the meaning of Chapter 132 of the General Statutes. Documents described in this 39
section are privileged, confidential, and not subject to discovery, subpoena, or other means of 40
legal compulsion for release to any person other than the Board or its employees or consultants. 41
If any record, paper, or other document containing information collected and compiled by or on 42
behalf of the Board is received and admitted in evidence in any hearing before the Board, the 43
documents shall be a public record within the meaning of Chapter 132 of the General Statutes." 44
45
EXEMPT CERTAIN CONSTRUCTION TRADES FROM GENERAL CONTRACTOR 46
LICENSURE REQUIREMENTS AND RELATED BUILDING PERMIT EXEMPTIONS 47
SECTION 3.3.(a) G.S. 87-1 reads as rewritten: 48
"§ 87-1. "General contractor" defined; exceptions. 49
(a) For the purpose of this Article any person or firm or corporation who for a fixed price, 50
commission, fee, or wage, undertakes to bid upon or to construct or who undertakes to 51
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superintend or manage, on his the person's own behalf or for any person, firm, or corporation that 1
is not licensed as a general contractor pursuant to this Article, the construction of any building, 2
highway, public utilities, grading or any improvement or structure where the cost of the 3
undertaking is forty thousand dollars ($40,000) or more, or undertakes to erect a North Carolina 4
labeled manufactured modular building meeting the North Carolina State Building Code, shall 5
be deemed to be a "general contractor" engaged in the business of general contracting in the State 6
of North Carolina. 7
(b) This section shall not apply to the following: 8
(1) Persons, firms, or corporations furnishing or erecting industrial equipment, 9
power plan equipment, radial brick chimneys, and monuments. 10
(2) Any person, firm, or corporation who constructs or alters a building on land 11
owned by that person, firm, or corporation provided (i) the building is 12
intended solely for occupancy by that person and his family, firm, or 13
corporation after completion; and (ii) the person, firm, or corporation 14
complies with G.S. 87-14. If the building is not occupied solely by the person 15
and his that person 's family, firm, or corporation for at least 12 months 16
following completion, it shall be presumed that the person, firm, or 17
corporation did not intend the building solely for occupa ncy by that person 18
and his that person's family, firm, or corporation. 19
(3) Any person engaged in the business of farming who constructs or alters a 20
building on land owned by that person and used in the business of farming, 21
when the building is intended for use by that person after completion. 22
(4) Any person engaged in the business of providing the following installation, 23
maintenance, or replacement services related to the construction or 24
improvement of a building or structure: 25
a. Floor covering services. 26
b. Painting services." 27
SECTION 3.3.(b) G.S. 160D-1110 is amended by adding a new subsection to read: 28
"(c1) A building permit is not required for installation, maintenance, or replacement 29
services described in G.S. 87-1(b)(4) in the construction or improvement of a building or 30
structure subject to the North Carolina Residential Code." 31
SECTION 3.3.(c) G.S. 143-138 is amended by adding a new subsection to read: 32
"(b25) Permit Exclusion for Certain Services. – No permit shall be required under the Code 33
for installation, maintenance, or replacement services described in G.S. 87-1(b)(4) in the 34
construction or improvement of a building or structure subject to the North Carolina Residential 35
Code." 36
SECTION 3.3.(d) This section becomes effective January 1, 2026. 37
38
REMOVE BOARD FOR GENERAL CONTRACTORS REQUIREMENT TO CREDIT 39
THE NORTH CAROLINA ENGINEERING FOUNDATION 40
SECTION 3.4.(a) G.S. 87-7 reads as rewritten: 41
"§ 87-7. Records of Board; disposition of funds. 42
The secretary-treasurer shall keep a record of the proceedings of the said Board and shall 43
receive and account for all moneys derived from the operation of this Article. Any funds 44
remaining in the hands of the secretary-treasurer to the credit of the Board after the expenses of 45
the Board for the current year have been paid shall be paid over to the Greater University of 46
North Carolina for the use of the School of Engineering through the North Carolina Engineering 47
Foundation. The Board has the right, however, to retain at least ten perc ent (10%) of the total 48
expense it incurs for a year's operation to meet any emergency that may arise. As an expense of 49
the Board, said the Board is authorized to expend such funds as it deems necessary to provide 50
retirement and disability compensation for its employees." 51
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SECTION 3.4.(b) This section becomes effective July 1, 2025. 1
2
AMEND NORTH CAROLINA LICENSING BOARD FOR GENERAL CONTRACTORS 3
DISCIPLINARY ACTION AUTHORITY 4
SECTION 3.5.(a) G.S. 87-11 reads as rewritten: 5
"§ 87 -11. Revocation of license; char ges of fraud, negligence, incompetency, etc.; 6
Disciplinary action; hearing thereon; reissuance of certificate.procedures. 7
(a) The Board shall have the power to refuse to issue or renew or renew, revoke, suspend, 8
or restrict a certificate of license or to issue a reprimand or take other disciplinary action if a 9
general contractor licensed under this Article is found guilty of any licensee, qua lifier, or 10
applicant: 11
(1) Employs the use of fraud or deceit misrepresentation in obtaining or 12
attempting to obtain or renew a license, or license. 13
(2) Commits an act of gross negligence, incompetency, or misconduct in the 14
practice of his or her profession, or willful violation of general contracting. 15
(3) Willfully violates any provision of this Article.Article, or any rules adopted 16
by the Board. 17
(4) Willfully violates any order of the Board. 18
(a1) The Board shall also have the power to revoke, suspend, or otherwise restrict the 19
ability of any person to act as a qualifying party for a license to practice general contracting, as 20
provided in G.S. 87-10(c), for any copartnership, corporation or any other organization or 21
combination, if that person committed any act in violation of the provisions of this section and 22
the Board may also take disciplinary action against the individual license held by that person. 23
(a1)(a2) Any person may prefer charges of fraud, deceit, negligence, or misconduct person, 24
including the Board on its own initiative, may submit a complaint against any general contractor 25
licensed licensee, qualifier, or applicant under this Article. The charges All complaints shall be 26
in writing and sworn affirmed to by the complainant and submitted to the Board. The Board shall 27
not accept complaints from an anonymous complainant. The Board is authorized to inves tigate 28
complaints alleging violations of this Article or any rule promulgated by the Board. The charges, 29
complaint, unless dismissed without hearing by the Board as unfounded or trivial, Board, shall 30
be heard and determined by the Board in accordance with the provisions of Chapter 150B of the 31
General Statutes. 32
(b) The Board shall adopt and publish guidelines, rules consistent with the provisions of 33
this Article, governing the suspension and revocation of licenses.Article. 34
(c) The Board shall establish and maintain a system whereby detailed records are kept 35
regarding complaints against each licensee. This record shall include, for each licensee, the date 36
and nature of each complaint, investigatory action taken by the Board, any findings by the Board, 37
and the disposition of the matter. 38
(d) The Board may reissue a license to any person, firm or corporation whose license has 39
been revoked: Provided, five or more members of the Board vote in favor of such reissuance for 40
reasons the Board may deem sufficient. 41
The Board shall immediately notify the Secretary of State of its findings in the case of the 42
revocation of a license or of the reissuance of a revoked license. 43
A certificate of license to replace any certif icate lost, destroyed or mutilated may be issued 44
subject to the rules and regulations of the Board. 45
(e) The Board shall be entitled to recover its reasonable administrative costs associated 46
with the investigation and prosecution of a complaint alleging a violation of this Article or rules 47
or regulations of the Board up to a maximum of five thousand dollars ($5,000) for any licensee 48
or qualifying party licensee, qualifier, or applicant found to have committed any of the 49
following:violations enumerated in subdivisions (1) through (4) of subsection (a) of this section. 50
(1) Fraud or deceit in obtaining a license. 51
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(2) Gross negligence, incompetency, or misconduct in the practice of general 1
contracting. 2
(3) Willful violation of any provision of this Article." 3
SECTION 3.5.(b) G.S. 87-15.3 reads as rewritten: 4
"§ 87-15.3. Identity of complaining party confidential. 5
Once a complaint has been filed with the Board against a licensee licensee, qualifier, or 6
applicant or an unlicensed general contractor, the Board may, in its discretion, keep the identity 7
of a complaining party confidential and not a public record within the meaning of Chapter 132 8
of the General Statutes until a time no later than the receipt of the complaint by the full Board 9
for a disciplinary hearing or injunctive action." 10
SECTION 3.5.(c) This section is effective when it becomes law and applies to 11
actions filed or commenced on or after that date. 12
13
PROHIBIT GENERAL CONTRACTOR REEXAMINATION WHILE COURT 14
AWARDS REMAIN UNPAID 15
SECTION 3.6.(a) G.S. 87-13.1 reads as rewritten: 16
"§ 87-13.1. Board may seek injunctive relief; attorney's fee. 17
(a) Whenever the Board determines that any person, firm or corporation has violated or 18
is violating any of the provisions of this Article or rules and regulations of the Board promulgated 19
under this Article, the Board may apply to the superior court for a restraining order and injunction 20
to restrain the violation; and the superior courts have jurisdiction to grant the requested relief, 21
irrespective of whether or not criminal prosecution has been instituted or administrative sanctions 22
imposed by reason of the violation. 23
(b) When the Board prevails in actions brought under this section, the court shall award 24
the Board its reasonable attorney's fee not to exceed five thousand dollars ($5,000) plus the costs 25
associated with obtaining the relief and the investigation and prosecution of the violation. 26
(c) Examination applicants who have failed to pay a court award pursuant to subsection 27
(b) of this section shall not be allowed t o take any examination offered by the Board until the 28
award has been satisfied." 29
SECTION 3.6.(b) This section is effective when it becomes law and applies to 30
actions filed or commenced on or after that date. 31
32
MODERNIZE GENERAL CONTRACTOR LAWS 33
SECTION 3.7. Article 1 of Chapter 87 of the General Statutes reads as rewritten: 34
"Chapter 87. 35
"Contractors. 36
"Article 1. 37
"General Contractors. 38
… 39
"§ 87-2. Licensing Board; organization. 40
There is created the State Licensing Board for General Contractors consisting of nine 41
members appointed by the Governor for staggered five-year terms. Five of the members shall be 42
general contractors, one member shall be a registered engineer who practices structural 43
engineering, and three shall be public members. Of the general contra ctor members, one shall 44
have as the larger part of his the contractor's business the construction of highways; one shall 45
have as the larger part of his the contractor's business the construction of public utilities; one 46
shall have as the larger part of his the contractor's business the construction of buildings; and two 47
shall have as a larger part of their the contractor's businesses the construction of residences, one 48
of whom shall be the holder of an unlimited general contractor's license. The public m embers 49
shall have no ties with the construction industry and shall represent the interests of the public at 50
large. Members shall serve until the expiration of their respective terms and until their successors 51
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are appointed and qualified. Vacancies occurring during a term shall be filled by appointment of 1
the Governor for the remainder of the unexpired term. The Governor may remove any member 2
of the Board for misconduct, incompetency, or neglect of duty. No Board member shall serve 3
more than two complete consecutive terms. 4
"§ 87-3. Members of Board to take oath. 5
Each member of the Board shall, before entering upon the discharge of the duties of his the 6
member's office, take and file with the Secretary of State an oath in writing to properly perform 7
the duties of his the member's office as a member of said the Board and to uphold the Constitution 8
of North Carolina and the Constitution of the United States. 9
"§ 87-4. First meeting of Board; officers; secretary-treasurer and assistants. 10
The said Board shall, within 30 days after its appointment by the Governor, meet in the City 11
of Raleigh, at a time and place to be designated by the Governor, and organize by electing a 12
chairman, a vice -chairman, chair, a vice -chair, and a secretary -treasurer, each to serve for one 13
year. Said The Board shall have power to make such bylaws, rules and regulations as it shall 14
deem best, provided the same are not in conflict with the laws of North Carolina. The 15
secretary-treasurer shall give bond in such sum as the Board shall determine, with such security 16
as shall be approved by the Board, said bond to be conditioned for the faithful performance of 17
the duties of his the secretary-treasurer's office and for the faithful accounting of all moneys and 18
other property as shall come into his hands. property of the Board. The secretary-treasurer need 19
not be a member of the Board, and the Board. The Board is hereby authorized to employ a 20
full-time secretary-treasurer, secretary-treasurer and such other assistants and make such other 21
expenditures as may be necessary to the proper carrying out of the provisions of this Article. 22
Payment of compensation and reimbursement of expenses of board members shall be governed 23
by G.S. 93B-5. 24
… 25
"§ 87-8. Records; roster of licensed contractors; report to Governor. 26
The secretary-treasurer shall keep a record of the proceedings of the Board and a register of 27
all applicants for license showing for each the date of application, name, qualifications, place of 28
business, place of residence, and whether license was granted or refused. The books and register 29
of this the Board shall be prima facie evidence of all matters recorded therein. A roster showing 30
the names and places of business and of residence o f all licensed general contractors shall be 31
prepared by the secretary of the Board during the month of March of each year; the roster shall 32
be printed by the Board out of funds of the Board as provided in G.S. 87-7, with copies being 33
made available to cont ractors and members of the public, at cost, upon request, or furnished 34
without cost, as directed by the Board. On or before the last day of March of each year the Board 35
shall submit to the Governor a report of its transactions for the preceding year, and shall file with 36
the Secretary of State a copy of the report, together with a complete statement of the receipts and 37
expenditures of the Board, attested by the affidavits of the chairman and the secretary, and a copy 38
of the roster of licensed general contractors. 39
"§ 87-9. Compliance with Federal Highway Act, etc.; contracts financed by federal road 40
funds; contracts concerning water or waste water systems. 41
Nothing in this Article shall operate to prevent the Department of Transportation from 42
complying with any act of Congress and any rules and regulations promulgated pursuant thereto 43
for carrying out the provisions of the Federal Highway Act, or shall apply to any person, firm or 44
corporation proposing to submit a bid or enter into contract for any work to be financed in whole 45
or in part with federal aid road funds in such a manner as that will conflict with any act of 46
Congress or any such rules and regulations promulgated pursuant thereto. 47
Neither shall anything in this Article prevent the State of North Carolina or any of its political 48
subdivisions or their contractors from complying with any act of Congress and any rules and 49
regulations promulgated pursuant thereto for carrying out the provisions of any federal program 50
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to assist in the planning, financing, or construction of drinking water or waste water processing, 1
collection, and disposal systems and facilities. 2
… 3
"§ 87-10. Application for license; examination; certificate; renewal. 4
… 5
(c) If an applicant is an individual, examination may be taken by his the applicant's 6
personal appearance for examination, or by the appearance for examination of one or more of his 7
the applicant's responsible managing employees. If an applicant is a copartnership, a corporation, 8
or any other combination or organization, the exa mination may be taken by one or more of the 9
responsible managing officers or members of the personnel of the applicant. 10
… 11
"§ 87-10.1. Licensing of nonresidents. 12
… 13
(d) Delinquents. – If the Secretary of Revenue determines that any nonresident individual 14
or foreign corporation licensed by the board, Board, a member of any foreign limited liability 15
company licensed by the Board, or a partner in any foreign partnership licensed by the Board, 16
owes a delinquent income tax debt, the Secretary of Revenue may notif y the Board of these 17
nonresident individuals and foreign entities and instruct the Board not to renew their certificates 18
of license. The Board shall not renew the certificate of license of such a nonresident individual 19
or foreign entity identified by the S ecretary of Revenue unless the Board receives a written 20
statement from the Secretary that the debt either has been paid or is being paid pursuant to an 21
installment agreement. 22
"§ 87-10.2. Continuing education. 23
… 24
(g) Continuing education requirements shall begin on January 1 of any calendar year and 25
shall be completed by November 30 of that calendar year. The Board shall establish a 90 -day 26
grace period following November 30 of each calendar year for any qualifier or qualifying party 27
who has failed to complet e the continuing education requirement. Failure of the qualifier or 28
qualifying party of the entity holding a building contractor, residential contractor, or unclassified 29
contractor license classification to satisfy the annual continuing education requireme nt by the 30
expiration of the grace period shall result in the license of the entity being invalidated until such 31
the time that continuing education and all other licensing requirements have been met. 32
… 33
"§ 87-12. Certificate evidence of license. 34
The issuance of a certificate of license or limited license by this Board shall be evidence that 35
the person, firm, or corporation named therein is entitled to all the rights and privileges of a 36
licensed or limited licensed general contractor while said lic ense remains unrevoked or 37
unexpired. A licensed general contractor holding a license which qualifies him the contractor for 38
work as described in G.S. 87-10 shall be authorized to perform the said work without any 39
additional occupational license, notwithsta nding the provisions of any other occupational 40
licensing statute. A license issued by any other occupational licensing board having jurisdiction 41
over any work described in G.S. 87-10 shall qualify such the licensee to perform the work for 42
which the license qualifies him without obtaining the license from the General Contractors 43
Licensing Board. Nothing contained herein shall operate to relieve any general contractor from 44
the necessity of compliance with other provisions of the law requiring building permits and 45
construction in accordance with appropriate provisions of the North Carolina State Building 46
Code. 47
"§ 87-13. Unauthorized practice of contracting; impersonating contractor; false certificate; 48
giving false evidence to Board; penalties. 49
Any person, firm, or corporation not being duly authorized who shall contract for or bid upon 50
the construction of any of the projects or works enumerated in G.S. 87-1, without having first 51
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complied with the provisions hereof, or who shall attempt to practice general contr acting in the 1
State, except as provided for in this Article, and any person, firm, or corporation presenting or 2
attempting to file as his their own the licensed certificate of another or who shall give false or 3
forged evidence of any kind to the Board or t o any member thereof in maintaining a certificate 4
of license or who falsely shall impersonate another or who shall use an expired or revoked 5
certificate of license, or who falsely claims or suggests in connection with any business activities 6
regulated by the Board that a person, firm, or corporation is licensed under this Chapter, and any 7
architect or engineer who recommends to any project owner the award of a contract to anyone 8
not properly licensed under this Article, shall be deemed guilty of a Class 2 m isdemeanor. And 9
the Board may, in its discretion, use its funds to defray the expense, legal or otherwise, in the 10
prosecution of any violations of this Article. No architect or engineer shall be guilty of a violation 11
of this section if his recommendation either of their recommendations to award a contract is made 12
in reliance upon current written information received by him the architect or engineer from the 13
appropriate Contractor Licensing Board of this the State which information erroneously indicates 14
that the contractor being recommended for contract award is properly licensed. 15
… 16
"§ 87-15. Copy of Article included in specifications; bid not considered unless contractor 17
licensed. 18
All architects and engineers preparing plans and specifications for work to b e contracted in 19
the State of North Carolina shall include in their invitations to bidders and in their specifications 20
a copy of this Article or such portions thereof as are deemed necessary to convey to the invited 21
bidder, whether he the bidder be a resident or nonresident of this State and whether a license has 22
been issued to him the bidder or not, the information that it will be necessary for him the bidder 23
to show evidence of a license before his the bidder's bid is considered. 24
"§ 87-15.1. Reciprocity of licensing. 25
To the extent that other states which provide for the licensing of general contractors provide 26
for similar action, the Board in its discretion may grant licenses of the same or equivalent 27
classification to general contractors licensed by othe r states, without written examination upon 28
satisfactory proof furnished to the Board that the qualifications of such applicants are equal to 29
the qualifications of holders of similar licenses in North Carolina and upon payment of the 30
required fee. 31
…." 32
33
AUTHORIZE STATE LICENSING BOARD FOR GENERAL CONTRACTORS TO 34
REFER VIOLATIONS FOR CRIMINAL PROSECUTION 35
SECTION 3.8.(a) Article 1 of Chapter 87 of the General Statutes is amended by 36
adding a new section to read: 37
"§ 87-13.2. Board may refer violations for criminal prosecution. 38
(a) Whenever the Board has reasonable grounds to believe that a person or entity has 39
committed a violation of this Article that is subject to criminal penalty, the Board may refer the 40
matter to the appropriate law enforcement agency or district attorney for investigation and 41
possible criminal prosecution. 42
(b) Notwithstanding any confidentiality of investigative records that the Board holds, the 43
Board may disclose such records to law enforcement agencies or prosecutors to facilitate 44
investigation or prosecution of violations under this Article. 45
(c) Nothing in this Article shall be construed to limit the Board 's ability to assist in 46
criminal prosecutions, including sharing information or using Board funds as authorized by this 47
Article to support such prosecutions. 48
(d) Nothing in this Article limits the power of the State to punish any person for any 49
conduct that constitutes a crime under any other statute." 50
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SECTION 3.8.(b) The State Licensing Board for General Contractors may adopt 1
rules to implement the provisions of this section. 2
SECTION 3.8.(c) This section is effective October 1, 2025, and applies to violations 3
committed on or after that date. 4
5
PART IV. EXEMPT RESI DENTIAL CHANGEOUTS P ERFORMED BY LICENSED 6
CONTRACTORS FROM INSPECTION REQUIREMENT 7
SECTION 4.1.(a) Article 78A of Chapter 58 of the General Statutes is amended by 8
adding a new section to read: 9
"§ 58-78A-18. Residential changeout work certification development. 10
(a) The Office of the State Fire Marshal shall develop a Residential Changeout Work 11
Certification form for a local government to utilize in its building permit application process for 12
residential changeout work pursuant to G.S. 160D-1106.1. The Office of the State Fire Marshal 13
shall publish this form on its website. 14
(b) The Office of the State Fire Marshal shall develop this certification form in 15
consultation with the North Carolina Building Code Council and the North Carolina Residential 16
Code Council, as applicable, and shall require the following information, at a minimum: 17
(1) Permit number. 18
(2) Date of inspection. 19
(3) Name, address, telephone number, and license number of the contractor 20
responsible for the residential changeout work. 21
(4) Street address of the location where the residential change out work was 22
performed. 23
(5) A detailed description of the residential changeout work covered by the 24
certification. 25
(6) A certification that the contractor performed all residential changeout work in 26
compliance with the North Carolina State Building Code." 27
SECTION 4.1.(b) Article 11 of Chapter 160D of the General Statutes is amended 28
by adding a new section to read: 29
"§ 160D-1106.1. Residential changeout work inspection exemption. 30
(a) For the purposes of this section, the phrase "residential changeout work" means work 31
that requires a building permit for heating and air conditioning appliance replacement in (i) a 32
dwelling subject to the North Carolina Residential Code or (ii) an individual residential unit of a 33
multifamily building, including a condominium or apartment, provided the individual appliance 34
serves only that residential dwelling unit. 35
(b) Notwithstanding G.S. 160D-1104 or any provision of the North Carolina State 36
Building Code requiring speci fic inspections , a local government shall accept and approve, 37
without further responsibility to inspect, residential changeout work if all of the following 38
conditions are met: 39
(1) The residential changeout work is completed by a contractor, licensed in 40
accordance with Article 2 of Chapter 87 of the General Statutes, in good 41
standing. 42
(2) The new appliance and related connections , subject to the residential 43
changeout, meet all of the following conditions, as applicable: 44
a. The new appliance requires no alterations to the existing ducting, fuel 45
type, piping systems, or venting other than minor alterations required 46
for transitioning to the new appliance. 47
b. Any new gas appliance shall be of the same category as the appliance 48
being replaced. 49
c. The new app liance does not require relocation, excluding minor 50
adjustments in the same general vicinity. 51
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d. The installation of the new appliance does not require modification to 1
the existing electrical system, or replacement of the appliance's branch 2
circuit overcurrent device , branch circuit , and all related electrical 3
connections are installed by a contractor appropriately licensed under 4
Article 4 of Chapter 87 of the General Statutes. 5
e. The electrical branch circuit serving the appliance is single phase. 6
(3) The licensed contractor submits a signed written residential changeout work 7
certification, developed by the Office of the State Fire Marshal pursuant to 8
G.S. 58-78A-18, that certifies the residential changeout work has been 9
completed in compliance with the North Carolina State Building Code to the 10
local government with a permit application. 11
(c) A local government shall not require information that relates to the residential 12
changeout work other than the information required by its building permit application process 13
and by the certification described in subsection ( b) of this section . The certification may be 14
provided by electronic or physical delivery, and its receipt shall be promptly acknowledged by 15
the local government through reciprocal means. 16
(d) Upon the acceptance of a signed certification by the local government as authorized 17
under this section, the local government, its inspection department, and its inspectors are 18
discharged and released from any liabilities, duties, and responsibilities imposed by this Article 19
with respect to or in common law from any claim arising out of or attributed to the residential 20
changeout work for which the signed certification was submitted." 21
SECTION 4.1.(c) G.S. 160D-402(d) reads as rewritten: 22
"(d) Financial Support. – The local government may appropriate for the support of the 23
staff any funds that it deems necessary. It shall have power to fix reasonable fees for support , 24
administration, and implementation of programs authorized by this Chapter. All fees collected 25
by a building inspection department for the administration and enforcement of provisions set 26
forth in Article 11 of this Chapter shall be used to support the ad ministration and operations of 27
the building inspection department and for no other purposes. When an inspection, for which the 28
permit holder has paid a fee to the local government, is performed by a marketplace pool 29
Code-enforcement official upon request o f the State Fire Marshal under G.S. 143-151.12(9)a., 30
the local government shall promptly return to the permit holder the fee collected by the local 31
government for such inspection. A local government may charge a fee to cover costs incurred in 32
processing fo rms related to residential changeout work certifications , submitted pursuan t to 33
G.S. 160D-1106.1, not to exceed twenty dollars ($ 20.00). This subsection applies to the 34
following types of inspection: plumbing, electrical systems, general building restrictions and 35
regulations, heating and air-conditioning, and the general construction of buildings." 36
SECTION 4.1.(d) This section becomes effective January 1, 2026. 37
SECTION 4.2. By October 1, 2025, the Office of the State Fire Marshal shall 38
develop th e residential changeout work form as required by G.S. 58-78A-18, as enacted by 39
Section 4.1 of this act, and make it available on the Office's website. 40
41
PART V. MISCELLANEOUS 42
43
MODIFY PUBLIC POOL LAWS TO CLARIFY PRIVATE POOL EXCLUSION AND 44
TO EXEMPT PUBLIC COLD BATHS AND FLOTATION/SENSORY DEPRIVATION 45
SYSTEMS 46
SECTION 5.1.(a) G.S. 130A-280, as amended by Section 4.51(a) of S.L. 2024 -49, 47
reads as rewritten: 48
"§ 130A-280. Scope.Scope and definitions. 49
(a) This Article Part provides for the regulation of public swimming pools in the State as 50
they may affect the public health and safety. As used in this Article, the term "public swimming 51
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pool" means any structure, chamber, or tank containing an artificial body of water used by the 1
public for swimming, diving, wading, recreation, or therapy, together with buildings, 2
appurtenances, and equipment used in connection with the body of water, regardless of whether 3
a fee is charged for its use. The term includes municipal, school, hote l, motel, apartment, 4
boarding house, athletic club, or other membership facility pools and spas, spas operating for 5
display at temporary events, and artificial swimming lagoons. As used in this Article, an 6
"artificial swimming lagoon" means any body of water used for recreational purposes with more 7
than 20,000 square feet of surface area, an artificial liner, and a method of disinfectant that results 8
in a disinfectant residual in the swimming zone that is protective of the public health. This Article 9
Part does not apply to any of the following: 10
(1) A private pool serving a single family dwelling and used only by the residents 11
of the dwelling and their guests.guests regardless of whether their guests gain 12
use of the private pool through a sharing economy platform or pay a fee for 13
its use. In all cases in which a fee is exchanged for access to a private pool 14
serving a single -family dwelling that is used only by the residents of the 15
dwelling and their guests, the private pool shall be maintained in good and 16
safe working order. 17
(2) A private pool serving a single family dwelling meeting the minimum 18
requirements of this subdivision which is offered to, and used by, individuals 19
on a temporary basis utilizing a sharing economy platform. For the purposes 20
of this subdivision, a sharing economy platform means an online platform 21
used to facilitate peer-to-peer transactions to acquire, provide, or share access 22
to goods and services. For the purposes of this subdivision, a pool must meet 23
all of the following minimum requirements: 24
a. Pools must have proper fencing and barriers to prevent unsupervised 25
access, especially by children. The fence should be at least 4 feet high 26
with a self-latching gate. 27
b. Pools must have clear and conspicuous signage posted around the pool 28
area specifying pool rules, depth markers, and any potential hazards. 29
c. Pools must be equipped with basic lifesaving equipment, including life 30
rings and reaching poles. 31
d. Pool decks and surrounding areas must have non-slip surfaces. 32
e. Pools must have properly fitted covers for all submerged suction 33
outlets. 34
f. Pools must be well -maintained with proper chemical balance and 35
cleanliness to ensure safe and healthy swimming conditions. 36
(2a) A public cold bath that meets all of the following requirements: 37
a. Is a tub or tank that is used by the general public, one bather at a time, 38
regardless of whether a fee is charged for its use. The tub or tank must 39
be (i) designed exclusively to provide chilled water, (ii) 40
factory-manufactured and certified in conformance with ANSI/UL 41
1563, and (iii) operated and maintained in accordance with the 42
manufacturer's instructions. 43
b. Contains chilled water that is (i) maintained at a temperature lower 44
than 60 degrees Fahrenheit, (ii) no more than 180 gall ons in volume, 45
and (iii) at a depth that allows the bather to maintain the bather's head 46
above the water while in a seated position. 47
c. Continuously filters and sanitizes the chilled water. 48
(3) Therapeutic pools used in physical therapy programs operated b y medical 49
facilities licensed by the Department or operated by a licensed physical 50
General Assembly Of North Carolina Session 2025
House Bill 661-Fourth Edition Page 19
therapist, nor to therapeutic chambers drained, cleaned, and refilled after each 1
individual use. 2
(4) Flotation or sensory deprivation systems certified by the National Sanit ation 3
Foundation to meet the most current version of Standard 50 of the National 4
Sanitation Foundation/American National Standards Institute. 5
(b) The following definitions apply in this Part: 6
(1) Artificial swimming lagoon. – Any body of water used for rec reational 7
purposes with more than 20,000 square feet of surface area, an artificial liner, 8
and a method of disinfectant that results in a disinfectant residual in the 9
swimming zone that is protective of the public health. 10
(2) Public swimming pool. – Any structure, chamber, or tank containing an 11
artificial body of water used by the public for swimming, diving, wading, 12
recreation, or therapy, together with buildings, appurtenances, and equipment 13
used in connection with the body of water, regardless of wheth er a fee is 14
charged for its use. The term includes municipal, school, hotel, motel, 15
apartment, boarding house, athletic club, or other membership facility pools 16
and spas, spas operating for display at temporary events, and artificial 17
swimming lagoons. 18
(3) Sharing economy platform. – An online platform used to facilitate 19
peer-to-peer transactions to acquire, provide, or share access to goods and 20
services." 21
SECTION 5.1.(b) This section becomes effective July 1, 2025. 22
23
INCREASE FORMAL BIDDING THRESHOLD FOR PUBLIC CONTRACTS 24
SECTION 5.2.(a) G.S. 143-129 reads as rewritten: 25
"§ 143-129. Procedure for letting of public contracts. 26
(a) Bidding Required. – No construction or repair work requiring the estimated 27
expenditure of public money in an amount equal to or more than one million five hundred 28
thousand dollars ($500,000) ($1,500,000) or purchase of apparatus, supplies, materials, or 29
equipment requiring an estimated expenditure of public money in an amount equal to or more 30
than ninety one hundred ei ghty thousand dollars ($90,000) ($180,000) may be performed, nor 31
may any contract be awarded therefor, by any board or governing body of the State, or of any 32
institution of the State government, or of any political subdivision of the State, unless the 33
provisions of this section are complied with; provided that The University of North Carolina and 34
its constituent institutions may award contracts for construction or repair work that requires an 35
estimated expenditure of less than five hundred thousand dollars ($500,000) without complying 36
with the provisions of this section. 37
For purchases of apparatus, supplies, materials, or equipment, the governin g body of any 38
political subdivision of the State may, subject to any restriction as to dollar amount, or other 39
conditions that the governing body elects to impose, delegate to the manager, school 40
superintendent, chief purchasing official, or other employee the authority to award contracts, 41
reject bids, or readvertise to receive bids on behalf of the unit. Any person to whom authority is 42
delegated under this subsection shall comply with the requirements of this Article that would 43
otherwise apply to the governing body. 44
…." 45
SECTION 5.2.(b) This section becomes effective July 1, 2026. 46
47
ABC WAREHOUSE 48
SECTION 5.3. For project code DPS24-1 the funded agency may enter into a public 49
private partnership to facilitate, through purchase or lease, the construction of the new North 50
Carolina Alcoholic Beverage Control Warehouse facility provided that the public private 51
General Assembly Of North Carolina Session 2025
Page 20 House Bill 661-Fourth Edition
partnership will result in expedited completion of the project . In planning and developing the 1
project, the funded agency shall also consider and utilize infrastructure for the facility that 2
automates functions and processes to the greatest extent possible. 3
4
PART VI. SEVERABILITY CLAUSE AND EFFECTIVE DATE 5
6
SEVERABILITY CLAUSE 7
SECTION 6.1. If any section or provision of this act is declared unconstitutional or 8
invalid by the courts, it does not affect the validity of this act as a whole or any part other than 9
the part declared to be unconstitutional or invalid. 10
11
EFFECTIVE DATE 12
SECTION 6.2. Except as otherwise provided, this act is effective when it becomes 13
law. 14