Comm. Inspect. Efficiency Act.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 2
HOUSE BILL 831
Committee Substitute Favorable 6/12/25

Short Title: Comm. Inspect. Efficiency Act. (Public)
Sponsors:
Referred to:
April 10, 2025
*H831-v-2*
A BILL TO BE ENTITLED 1
AN ACT TO AUTHORIZE INSPECTIONS BY PRIVATE INSPECTORS OF COMMERCIAL 2
BUILDINGS AND STRUCT URES FOR COMPLIANCE WITH THE NORTH 3
CAROLINA STATE BUILD ING CODE, EXPEDITE L OCAL GOVERNMENT 4
APPROVAL OF SEALED C OMMERCIAL AND MULTIF AMILY BUILDING PLANS, 5
AND REPEAL THE MARKE TPLACE POOL OF CODE -ENFORCEMENT OFFICIALS 6
WITHIN THE OFFICE OF THE STATE FIRE MARSHAL. 7
The General Assembly of North Carolina enacts: 8
SECTION 1.(a) G.S. 143-151.8(a) reads as rewritten: 9
"§ 143-151.8. Definitions. 10
(a) As used in this Article, unless the context otherwise requires: 11
… 12
(4a) Private commercial inspect ion. – An inspection by a private commercial 13
inspector of the manner of construction, workmanship, and materials for the 14
construction of commercial building s and structures, including their 15
components and elements , for compliance with the N orth Carolina State 16
Building Code, except those sections of the Code which pertain to boilers and 17
elevators enforced by the North Carolina Department of Labor. 18
(4b) Private commercial inspection firm . – A corporation, partnership, limited 19
liability company, sole proprietorship, or other legal business entity registered 20
pursuant to this Article that employs or contracts with one or more licensed 21
private commercial inspectors to engage in the practice of private commercial 22
inspection. 23
(4c) Private commercial inspector. – An individual qualified through certification 24
and registration pursuant to this Article to engage in the practice of private 25
commercial inspections . A private commercial inspector may be 26
self-employed or employed by a registered private commercial inspect ion 27
firm. 28
…." 29
SECTION 1.(b) G.S. 143-151.12 reads as rewritten: 30
"§ 143-151.12. Powers. 31
In addition to powers conferred upon the Board elsewhere in this Articl e, the Board has the 32
power to do the following: 33
(1) Adopt rules necessary to administer this Article. 34
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(1a) Require State agencies, local inspection departments, and local governing 1
bodies to submit reports and information about the employment, education, 2
and training of Code-enforcement officials. 3
(2) Establish minimum standards for employment as a Code-enforcement official: 4
(i) in probationary or temporary status, and (ii) in permanent positions. 5
(3) Certify persons individuals as being qualified under the provisions of this 6
Article to be Code -enforcement officials, including persons individuals 7
employed by a federally recognized Indian Tribe to perform inspections on 8
tribal lands. 9
(3a) Certify persons individuals as being qualified under the provisions of this 10
Article to be North Carolina State Building Code Permit Technicians. 11
(3b) Certify individuals as being qualified under the provisions of this Article to 12
be private commercial inspectors for the purposes of conducting private 13
commercial inspections and register private commercial ins pectors and 14
private commercial inspection firms pursuant to this Article. 15
(4) Consult and cooperate with counties, municipalities, agencies of this State, 16
other governmental agencies, and with universities, colleges, junior colleges, 17
community colleges and other institutions concerning the development of 18
Code-enforcement training or private commercial inspector schools and 19
programs or courses of instruction. 20
(5) Establish minimum standards and levels of education or equivalent experience 21
for all Code-enforcement or private commercial inspector instructors, teachers 22
or professors. 23
(5a) Ensure that the minimum standards for and education of private commercial 24
inspectors include specific instruction on the duties and responsibili ties 25
imposed by law on a private commercial inspector. 26
(6) Conduct and encourage research by public and private agencies that shall be 27
designed to improve education and training in the administration of Code 28
enforcement.enforcement or private commercial inspection. 29
(7) Adopt and amend bylaws, consistent with law, for its internal management 30
and control; appoint advisory committees as necessary; and enter into 31
contracts and do other things as necessary and incidental to the exercise of its 32
authority pursuant to this Article. 33
(8) Make recommendations concerning any matters within its purview pursuant 34
to this Article. 35
(9) Establish within the Office of the State Fire Marshal a marketplace pool of 36
qualified Code-enforcement officials available for the following purposes: 37
a. When requested by the State Fire Marshal, to assist in the discharge of 38
the State Fire Marshal's duty under G.S. 143-139 to supervise, 39
administer, and enforce the North Carolina State Building Code. The 40
State Fire Marshal shall have the power and authority to fix and collect 41
reasonable fees for services performed by Code-enforcement officials 42
under this sub -subdivision. The State Fire Marshal may also collect 43
reimbursement, at the rate established under G.S. 138 -6, for mileage 44
costs incurred by Code-enforcement officials going to and from 45
inspections conducted under this sub -subdivision. The State Fire 46
Marshal shall have no power or authority to fix or collect fees incurred 47
by local inspection departments under sub -subdivision b. of this 48
subdivision. 49
b. When requested by local inspection departments, to assist in Code 50
enforcement. 51
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(10) Establish criteria to be used by the Office of the State Fire Marshal to verify 1
that private commercial inspe ctors meet the standards required for private 2
commercial inspections." 3
SECTION 1.(c) G.S. 143-151.14 reads as rewritten: 4
"§ 143-151.14. Comity. 5
… 6
(a1) The Board may, without requiring an examination, grant a standard private 7
commercial inspector certificate as a qualified private commercial inspector for a particular type 8
of position and level to any individual who, at the time of application, is certified as the equivalent 9
of a private commercial inspector, in good standing by a similar board of another state, district , 10
or territory where standards are acceptable to the Board and not lower than those required by this 11
Article for a similar type of position and level in this State. 12
… 13
(b1) The Board may, without requiring an examination, grant a standard private 14
commercial inspector certificate as a qualified private commercial inspector for a particular type 15
of position and level to any individual who, at the time of application, is certified as the equivalent 16
of a private commercial inspector, in good standing by the International Code Council where 17
standards and examination are acceptable to the Board and not lower than those required by this 18
Article for a type of position and level in this State. 19
(c) The certificates granted under subsections (a) and (b) (a), (a1), (b), and (b1) of this 20
section shall expire after three years unless within that time period the holder completes a short 21
course, as prescribed by the Board, relating to the North Carolina State Building Code regulations 22
and Code-enforcement administration. 23
…." 24
SECTION 1.(d) Article 9C of Chapter 143 of the General Statutes is amended by 25
adding a new section to read: 26
"§ 143-151.14A. Required standards and certificates for private commercial inspectors. 27
(a) No individual shall engage in private commercial inspection under this Article unless 28
that individual possesses a s tandard private commercial inspector certificate , currently valid, 29
issued by the Board attesting to that individual's qualifications to engage in private commercial 30
inspection. To obtain a standard private commercial inspector certificate, an individual must pass 31
an examination, as prescribed by the Board or by a contracting party under G.S. 143-151.16(d), 32
that is based on the North Carolina State Building Code and administrative procedures required 33
for Code enforcement or private commercial inspection. The Board may issue a standard private 34
commercial inspector certificate of qualification to each individual who successfully completes 35
the examination. 36
(b) The private commercial inspector certificate authorizes that individual, upon 37
registration as provided in G.S. 143-151.19A, to engage in private commercial inspection and to 38
practice as a qualified private commercial inspector in North Carolina. The private commercial 39
inspector certificate of qualification shall bear the signatures of the chairman and secretary of the 40
Board. 41
(c) The Board shall issue one or more standard private commercial inspector certificates 42
to each private commercial inspector demonstrating the qualifications set forth in subsection (a) 43
of this section. Standard private commercial inspector certificates are available for each of the 44
following types of qualified private commercial inspectors: 45
(1) Building inspector. 46
(2) Electrical inspector. 47
(3) Mechanical inspector. 48
(4) Plumbing inspector. 49
(5) Fire inspector. 50
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(d) The holder of a standard private commercial inspector certificate may only conduct 1
private commercial inspections within the inspection area and level described upon the certificate 2
issued by the B oard; however, for any area in which the private commercial inspector is not 3
certified, that private commercial inspector may contract with a private commercial inspector 4
who is certified in that area to conduct the necessary inspection. A private commercial inspector 5
may qualify and hold one or more private commercial inspector certificates. These private 6
commercial inspector certificates may be for different levels in different types of positions as 7
defined in this section and in rules adopted by the Board. 8
(e) A private commercial inspector holding a certificate indicating a specified level of 9
proficiency in a particular type of position may conduct a private commercial inspection calling 10
for that type of qualification anywhere in the State. With respect to all types of private 11
commercial inspectors, those with Level II or Level III certificates shall be qualified to inspect 12
and approve only those types and sizes of commercial buildings and structures as specified in 13
rules adopted by the Board. 14
(f) Notwithstanding subsection (a) of this section, t he Board shall, without requiring an 15
examination, issue a standard Level II private commercial inspector certificate to all of the 16
following but may only issue a standard Level III private commercial inspector certificate to 17
those of the following who pass the examination: 18
(1) Any individual who is currently certified as a Code-enforcement official under 19
this Article. 20
(2) An architect licensed under Chapter 83A of the General Statutes. 21
(g) Architects sitting for the Level III private commercial inspector examination are 22
exempt from any required prerequisite exam classes. 23
(h) Notwithstanding subsection (a) of this section, the Board shall, without requiring an 24
examination, issue a standard Level II or Level III private commercial inspector certificate to any 25
engineer licensed under Chapter 89C of the General Statutes." 26
SECTION 1.(e) Article 9C of Chapter 143 of the General Statutes is amended by 27
adding a new section to read: 28
"§ 143-151.14B. Professional development program for private commercial inspectors. 29
(a) The Board may establish professional development requirements for private 30
commercial inspectors as a condition of the renewal or reactivation of their certificates. The 31
purposes of these professional development requirements are to assist private commercial 32
inspectors in maintaining professional competence in their inspe ctions and to assure the health, 33
safety, and welfare of the citizens of North Carolina. A private commercial inspector subject to 34
this section shall present evidence to the Board at each certificate renewal after initial certification 35
that during the 12 months before the certificate expiration date, the private commercial inspector 36
has completed the required number of credit hours in courses approved by the Board. Annual 37
continuing education hour requirements shall be determined by the Board but shall not b e more 38
than six credit hours. For licensed architects and engineers issued a standard private commercial 39
inspector certificate under G.S. 143-151.14A, the Board shall develop a continuing education 40
program. The Board shall include in these requirements a t wo-hour update course on laws, 41
regulations, or other issues that have changed over the previous year, including Code 42
amendments, revised standards of practice, or changes in professional guidelines. 43
(b) The Board may require an individual who earns a certi ficate under programs 44
established in G.S. 143-151.14A to complete professional development courses. 45
(c) As a condition of reactivating a standard certificate, the Board may require the 46
completion of professional development courses within one year after reemployment as a private 47
commercial inspector as follows: 48
(1) An individual who has been on inactive status for more than two years and 49
who has not been continuously employed by a city or county inspection 50
department, a private commercial inspection firm, or engaged in the business 51
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House Bill 831-Second Edition Page 5
of private commercial inspections during the period of inactive status shall 1
complete professional development courses for each technical area in which 2
the individual is certified. 3
(2) An individual who has been on inactive stat us for more than two years and 4
who has been continuously employed by a city or county inspection 5
department, and actively engaged in Level II or Level III inspections shall not 6
be required to complete any professional development courses. 7
(3) An individual who has been on inactive status for two years or less shall 8
complete professional development courses per the Board's requirements. 9
(d) The Board may, for good cause shown, grant extensions of time to private commercial 10
inspectors to comply w ith these requirements. A private commercial inspector who, after 11
obtaining an extension under this subsection, offers evidence satisfactory to the Board that the 12
private commercial inspector has satisfactorily completed the required professional development 13
courses is in compliance with this section. 14
(e) The Board may adopt rules to implement this section, including rules that govern: 15
(1) The content and subject matter of professional development courses. 16
(2) The criteria, standards, and procedures for the approval of courses, course 17
sponsors, and course instructors. 18
(3) The methods of instruction. 19
(4) The computation of course credit. 20
(5) The ability to carry forward course credit from one year to another. 21
(6) The waiver of or variance from the professional development required for 22
hardship or other reasons. 23
(7) The procedures for compliance and sanctions for noncompliance." 24
SECTION 1.(f) G.S. 143-151.15 reads as rewritten: 25
"§ 143-151.15. Return of certificate to Board; reissuance by Board. 26
(a) A certificate issued by the Board under this Article is valid as long as the person 27
individual certified is employed by any of the following: 28
(1) Employed by the State of North Carolina or any political subdivision thereof 29
as a Code-enforcement official, or is employed official at the required level. 30
(2) Employed by a federally recognized Indian Tribe to perform inspections on 31
tribal lands as a Code-enforcement official. 32
(3) Employed by a registered private commercial inspection firm. 33
(4) Self-employed as a private commercial inspector. 34
(b) When the person individual certified leaves that employment described under 35
subsection (a) of this section for any reason, he that individual shall return the certificate to the 36
Board. If the person individual subsequently obtains employment as a Code-enforcement official 37
in any governmental jurisdiction described above, described under subsection (a) of this section, 38
the Board may reissue the certificate to him. that individual. 39
(c) The provisions of G.S. 143-151.16(b) relating to renewal fees and late renewals shall 40
apply, if appropriate. The provisions of G.S. 143-151.16(c) shall not apply. This section does not 41
affect the Board's powers under G.S. 143-151.17." 42
SECTION 1.(g) G.S. 143-151.16 reads as rewritten: 43
"§ 143-151.16. Certification fees; renewal of certificates; examination fees. 44
(a) The Board shall establish a schedule of fees to be paid by each applicant for 45
certification as a qualified Code-enforcement official. Such fee official or as a private commercial 46
inspector. The fees shall not exceed twenty dollars ($20.00) for each applicant.the following: 47
(1) For certification as a qualified Code -enforcement official, twenty dollars 48
($20.00). 49
(2) For certification as a private commercial inspector, two hundred dollars 50
($200.00). 51
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(b) A certificate, other than a probationary certificate, as a qualified Code -enforcement 1
official or as a private commercial inspector issued pursuant to the provisions of this Article must 2
be renewed annually on or before the f irst day of July. Each application for renewal must be 3
accompanied by a renewal fee to be determined by the Board, but not to exceed ten dollars 4
($10.00). the amounts set out below. The Board is authorized to charge an extra four dollar 5
($4.00) per day late renewal fee for renewals made after the first day of July each year. The 6
maximum renewal application fees are: 7
(1) For a qualified Code-enforcement official, ten dollars ($10.00). 8
(2) For a private commercial inspector, fifty dollars ($50.00). 9
(c) Any person individual who fails to renew his their certificate for a period of two 10
consecutive years may be required by the Board to take and pass the same examination as 11
unlicensed applicants before allowing such person that individual to renew his their certificate. 12
(d) The Board may contract with persons for the development and administration of the 13
examinations required by G.S. 143 -151.13(a), G.S. 143-151.13(a) and G.S. 143-151.14A for 14
course development related to the examinations, for review of a particular applicant's 15
examination, and for other related services. The person with whom the Board contracts may 16
charge applicants a reasonable fee for the costs associated with the development and 17
administration of the examinations, for course development related to the examinations, for 18
review of the applicant's examinations, and for other related services. The fee shall be agreed to 19
by the Board and the other contracting party. The amount of the fee under this subsection shall 20
not exceed one hundred seve nty-five dollars ($175.00). Contracts for the development and 21
administration of the examinations, for course development related to the examinations, and for 22
review of examinations shall not be subject to Article 3, 3C, or 8 of Chapter 143 of the General 23
Statutes or to Article 15 of Chapter 143B of the General Statutes. However, the Board shall: (i) 24
submit all proposed contracts for supplies, materials, printing, equipment, and contractual 25
services that exceed one million dollars ($1,000,000) authorized by this subsection to the 26
Attorney General or the Attorney General's designee for review as provided in G.S. 114-8.3; and 27
(ii) include in all proposed contracts to be awarded by the Board under this subsection a standard 28
clause which provides that the State A uditor and internal auditors of the Board may audit the 29
records of the contractor during and after the term of the contract to verify accounts and data 30
affecting fees and performance. The Board shall not award a cost plus percentage of cost 31
agreement or contract for any purpose. 32
(e) A private commercial inspection firm intending to hire or contract with an individual 33
for the purpose of performing private commercial inspections may pay any certification or 34
recertification fee on behalf of that individual, regardless of whether that individual is already 35
certified as a private commercial inspector or is seeking initial certification." 36
SECTION 1.(h) G.S. 143-151.17 reads as rewritten: 37
"§ 143-151.17. Grounds for disciplinary actions; investigation; administrative procedures. 38
… 39
(a1) A private commercial inspector shall not inspect any property under this Article in 40
which the inspector, or a person with whom the inspector has a close familial, business, or other 41
associational relationship, has an ownership or direct financial interest. For purposes of this 42
section, a "close familial relationship" means a spouse, parent, child, brother, sister, grandparent, 43
or grandchild. The term includes the step, half, and in-law relationships. 44
(b) The Board may investigate t he actions of any qualified Code -enforcement official 45
official, private commercial inspector, or any applicant therefor, upon the verified complaint in 46
writing of any person alleging a violation of subsection (a) of this section. The Board may 47
suspend, revoke, or demote to a lower level any certificate of any qualified Code -enforcement 48
official and refuse to grant a certificate to any applicant, whom it finds to have been guilty of one 49
or more of the actions set out in subsection (a) of this section as grounds for disciplinary action. 50
… 51
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House Bill 831-Second Edition Page 7
(e) This section applies to Code -enforcement officials officials, private commercial 1
inspectors, and applicants who are employed or seek to be employed by a federally recognized 2
Indian Tribe to perform inspections on tribal lands." 3
SECTION 1.(i) G.S. 143-151.18 reads as rewritten: 4
"§ 143-151.18. Violations; penalty; injunction. 5
On and after July 1, 1979, it shall be unlawful for any person to represent himself themselves 6
as a qualified Code -enforcement official or private commercial inspector who does not hold a 7
currently valid certificate of qualification issued by the Board. Further, it shall be unlawful for 8
any person to practice Code enforcement or conduct private commercial inspections except as 9
allowed by any currently valid certificate issued to that person by the Board. Any person violating 10
any of the provisions of this Article shall be guilty of a Class 1 misdemeanor. The Board is 11
authorized to apply to any judge of the superior court for an injunction in order to prevent any 12
violation or threatened violation of the provisions of this Article." 13
SECTION 1.(j) G.S. 143-151.19 reads as rewritten: 14
"§ 143-151.19. Administration. 15
… 16
(c) The Board shall keep current a record of the names and addresses of all qualified 17
Code-enforcement officials and private commercial inspectors and any additional personal data 18
as the Board deems necessary. The Board annually shall publish a list of all currently certified 19
Code-enforcement officials.officials and private commercial inspectors. The Board shall post the 20
list on its official website and make it publicly accessible. 21
… 22
(e) The Board shall issue a duplicate certificate to practice as a qualified 23
Code-enforcement official or private commercial inspector in place of one which has been lost, 24
destroyed, or mutilated upon proper application and payment of a fee to be determined by the 25
Board." 26
SECTION 1.(k) Article 9C of Chapter 143 of the General Statutes is amended by 27
adding a new section to read: 28
"§ 143 -151.19A. Registration of private commercial inspectors and private commercial 29
inspection firms. 30
(a) A private commercial inspector shall not engage in private commerci al inspection 31
unless that person is certified pursuant to G.S. 143-151.14A and registered under this section. A 32
private commercial inspection firm shall not engage in the business of private commercial 33
inspection unless that firm is registered under this section and employs or contracts with one or 34
more private commercial inspectors certified pursuant to G.S. 143-151.14A. 35
(b) To be registered, an applicant, whether an individual or a firm, must submit an 36
application for registration on a form provided by the Board that includes: 37
(1) The applicant's name and address. 38
(2) For an individual applicant, proof o f the applicant's certification pursuant to 39
this Article. 40
(3) For a private commercial inspection firm applicant, identification of the 41
certified private commercial inspectors employed by or contracted with the 42
firm and the individual designated by the fir m as the manager or supervisor 43
responsible for its private commercial inspection personnel and operations. 44
(4) A statement as to the applicant's experience level in each of the areas in which 45
the applicant plans to conduct or offer inspections. 46
(5) Any other information required by the Board. 47
(c) The Board shall review the application for registration required by this section and 48
shall register and assign the applicant a registration number if it determines the application is 49
adequate and the person otherwise meets the requirements of this Article. If the Board denies an 50
application for registration or the application is deficient, the Board shall notify the applicant in 51
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writing with an explanation for the denial and give the applicant a reasonable opportunity to 1
correct any deficiencies and re submit the application. If the Board denies the resubmitted 2
application, the applicant shall be notified in writing and may seek review as provided in 3
G.S. 143-151.17(d). 4
(d) The Board shall keep current a record of the names and addresses of all registered 5
private commercial inspectors and private commercial inspection firms and maintain this record 6
on the Office of the State Fire Marshal's website. The Board may combine the records maintained 7
and published under this subsection with those required in G.S. 143-151.19. The Board may 8
request updates from registered private commercial inspectors or firms registered under this 9
section. 10
(e) A private commercial inspector or private commercial inspection firm may submit an 11
amended registration to the Board at any time. 12
(f) The Board shall establish a schedule of fees to be paid by each applicant for 13
registration under this section. Such fee shall not exceed twenty dollars ($20.00) for each 14
applicant." 15
SECTION 2. G.S. 160D-403 reads as rewritten: 16
"§ 160D-403. Administrative development approvals and determinations. 17
… 18
(e) Inspections. – Administrative staff may inspect work undertak en pursuant to a 19
development approval to assure that the work is being done in accordance with applicable State 20
and local laws and the terms of the approval. In exercising this power, staff may enter any 21
premises within the jurisdiction of the local government at all reasonable hours for the purposes 22
of inspection or other enforcement action, upon presentation of proper credentials, so long as the 23
appropriate consent has been given for inspection of areas not open to the public or an appropriate 24
inspection warrant has been secured. This subsection shall not apply to work for which a holder 25
has elected to utilize private commercial inspections for inspection of commercial buildings and 26
structures for compliance with the North Carolina State Building Code pursuant to Article 11 of 27
this Chapter. 28
… 29
(g) Certificate of Occupancy. – A local government may, upon completion of work or 30
activity undertaken pursuant to a development approval, make final inspections and issue a 31
certificate of compliance or occupancy if st aff finds that the completed work complies with all 32
applicable State and local laws and with the terms of the approval. Except as provided in 33
G.S. 160D-1105.2, a local government shall not conduct final inspections of work or activity on 34
commercial buildings or structures for projects subject to G.S. 160D-1105.1. No building, 35
structure, or use of land that is subject to a building permit required by Article 11 of this Chapter 36
shall be occupied or used until a certificate of occupancy or temporary certificate pursuant to 37
G.S. 160D-1116 has been issued. 38
…." 39
SECTION 3.(a) G.S. 160D-1101 reads as rewritten: 40
"§ 160D-1101. Definitions. 41
As used in this Article, the following terms shall have their ordinary meaning and shall also 42
be read to include the following: 43
… 44
(3a) Private commercial inspect ion. – Shall have the same meaning as in 45
G.S. 143-151.8(a)(4a). 46
(3b) Private commercial inspection firm. – Shall have the same meaning as in 47
G.S. 143-151.8(a)(4b). 48
(3c) Private commercial inspector . – Shall have the same meaning as in 49
G.S. 143-151.8(a)(4c). 50
…." 51
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SECTION 3.(b) G.S. 160D-1102 is amended by adding a new subsection to read: 1
"(c1) No local government shall adopt or enforce any ordi nance prohibiting private 2
commercial inspections by private commercial inspectors or private commercial inspection firms 3
nor shall the Office of the State Fire Marshal prohibit private commercial inspections by private 4
commercial inspectors when the Office of the State Fire Marshal has intervened pursuant to 5
subsection (b) of this section." 6
SECTION 3.(c) Article 11 of Chapter 160D of the General Statutes is amended by 7
adding a new section to read: 8
"§ 160D-1103.1. Qualifications of private commercial inspectors. 9
No private commercial inspections shall be conducted except by private commercial 10
inspectors qualified under Article 9C of Chapter 143 of the General Statutes." 11
SECTION 3.(d) G.S. 160D-1104(b) reads as rewritten: 12
"(b) The duties and responsibilities set forth in subsection (a) of this section include the 13
receipt of applications for permits and the issuance or denial of permits, the making of any 14
necessary inspections in a timely manner, manner except those inspections made by a private 15
commercial inspector, the issuance or denial of certificates of compliance, compliance other than 16
those certificates of compliance with the North Carolina State Building Code issued or denied by 17
a private commercial inspector, the issuance of orders to correct violations, the bringing of 18
judicial actions against actual or threatened violations, the keeping of adequate records, and any 19
other actions that may be required in order adequately to enforce those laws. The governing board 20
has the authority to enact reasonable and appropriate provisions governing the enforcement of 21
those laws." 22
SECTION 3.(e) G.S. 160D-1105 reads as rewritten: 23
"§ 160D-1105. Other arrangements for inspections. 24
(a) A local government may contract with an individual who is not a local government 25
employee but who holds one of the applicable certificates as provided in G.S. 160D-1103 or with 26
the employer of an individual who holds one of the applicable certificates as provided in 27
G.S. 160D-1103. 28
(b) Notwithstanding any other provision of this Article, a local government may contract 29
with a certified and registered private commercial inspector or with a registered private 30
commercial inspection firm , as defined and regulated under Article 9C of Chapter 143 of the 31
General Statutes, to conduct inspections under this Article. 32
(c) A permit holder may contract with a private commercial inspector or private 33
commercial inspection firm to conduct private commercial inspections, as provided in 34
G.S. 160D-1105.1, of commercial buildings and structures for compliance with the North 35
Carolina State Building Code. 36
(d) A Code-enforcement official certified as a private commercial inspector under Article 37
9C of Chapter 143 of the General Statutes and employed by a local government may not be 38
prohibited, by employment contract or otherwise, from engaging in private commercial 39
inspection outside the local government's jurisdiction." 40
SECTION 3.(f) Article 11 of Chapter 160D of the General Statutes is amended by 41
adding a new section to read: 42
"§ 160D-1105.1. Private commercial inspection authorized; exceptions. 43
(a) Notwithstanding the requirements of this Article and except as provided in subsection 44
(d) of this section, a local government and the State Fire Marshal, when the Office of the State 45
Fire Marshal has intervened pursuant to G.S. 160D-1102(b), shall accept and approve, without 46
further responsibility to inspect, a signed inspection report evidencing the inspection of a 47
commercial building or structure by a private commercial inspector provided all of the following 48
apply: 49
(1) The private commercial inspection is limited to inspection for compliance 50
with the North Carolina State Building Code. 51
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(2) The private commercial inspector submitting the signed inspection report is 1
the individual designated on the permit application or permit amendment 2
under G.S. 160D-1110(c1), or is an individual inspector employed by or 3
contracted with the private commercial inspection firm designated on the 4
permit application or amendment, and the inspection report contains the 5
registration number assigned to that inspector under G.S. 143-151.19A(b). If 6
submitted on behalf of a private commercial inspection firm, the report shall 7
also include the firm's registration number. 8
(3) The private commercial inspector conducting the inspection is qualified under 9
the provisions of Article 9C of Chapter 143 of the General Statutes to conduct 10
that private commercial inspection at the time of the inspection. 11
(4) If the inspection is conducted on behalf of a private commercial inspection 12
firm, the private commercial inspector who conducted the inspection shall be 13
employed by or under contract with that private commercial inspection firm, 14
and the inspection report may be submitted by the private commercial 15
inspector or by the private commercial inspection firm on the inspector 's 16
behalf. 17
(5) The private commercial inspector or the private commercial inspection firm 18
provides the local government or the State Fire Marshal, as applicable, with a 19
copy of each signed inspection report. The signed inspection report shall be 20
provided by electronic or physical delivery , and its receipt shall be promptly 21
acknowledged by the local government or the State Fire Marshal , as 22
applicable, through reciprocal means. 23
(6) The permit holder has complied with the p ayment guarantee requirements of 24
G.S. 160D-1105.3. 25
(7) The permit holder and the designated private commercial inspector or private 26
commercial inspection firm execute a written contract that shall include, at a 27
minimum, all of the following: 28
a. A requirement that the designated private commercial inspector or 29
firm will be responsible for all required inspections on the commercial 30
building or structure for compliance with the North Carol ina State 31
Building Code. 32
b. The specific types of inspections to be conducted by the designated 33
private commercial inspector or by other private commercial 34
inspectors employed by or contracted with the designated private 35
commercial inspection firm, as applicable. 36
c. The specific types of inspections , if any, to be conducted by those 37
under contract with the private commercial inspection firm. 38
d. The reinspection process, including inspector compensation, when an 39
inspection demonstrates noncompliance with the North Carolina State 40
Building Code. 41
e. The process, including private commercial inspector compensation, to 42
deliver additional inspections required due to unforeseen 43
circumstances, changes to orders, changes to the North Carolina State 44
Building Code , or any other event or occurrence necessitating 45
additional inspections. 46
f. The contact information for the manager or supervisor responsible for 47
its private commercial inspection personnel and operations assigned to 48
the project. 49
(b) Upon issuing an inspection report receipt as required under subdivision (a)(5) of this 50
section, the local government or State Fire Marshal, its inspection departments, and its inspectors 51
General Assembly Of North Carolina Session 2025
House Bill 831-Second Edition Page 11
shall be immune from and discharged and released from any liabilities, duties, and 1
responsibilities imposed by this Article with respect to or in common law from any claim arising 2
out of or attributed to the inspection for which the inspection report was submitted pursuant to 3
this section. 4
(c) The inspection report required by this section shall be on the form developed by the 5
North Carolina Code Officials Qualification Board in the Office of the State Fire Marshal under 6
G.S. 160D-1105.5 and shall include the following: 7
(1) The printed name, title, signature, and date of the private commercial 8
inspector who conducted the inspection. 9
(2) The registration number of the private commercial inspector issued pursuant 10
to G.S. 143-151.19A. If the inspection was conducted on behalf of a private 11
commercial inspection firm, the name and registration number of the firm 12
shall also be included. 13
(3) The street address of the building or structure inspected. 14
(4) The permit number. 15
(5) The type of inspections conducted." 16
SECTION 3.(g) Article 11 of Chapter 160D of the General Statutes is amended by 17
adding a new section to read: 18
"§ 160D-1105.2. Fire prevention systems acceptance testing. 19
Nothing in this Article shall be construed to prevent a local government, prior to issuing a 20
certificate of occupancy, from conducting acceptance testing or approving any fire prevention 21
systems for which a private commercial inspector has issued a certificate of compliance." 22
SECTION 3.(h) Article 11 of Chapter 160D of the General Statutes is amended by 23
adding a new section to read: 24
"§ 160D-1105.3. Private commercial inspection payment guarantee. 25
(a) Prior to issuing or amending a building permit in which the applicant indicates an 26
intent to use a private commercial inspector or private commercial insp ection firm, the local 27
government shall require the applicant to provide a payment guarantee in the amount of one 28
hundred twenty-five percent (125%) of the local government's estimated cost to inspect the entire 29
project itself. The purpose of the payment guarantee is to provide a means of compensating the 30
local government for the costs of any inspections it must conduct under subsection ( c) of this 31
section and shall be in one of the following forms: 32
(1) A payment bond or surety bond issued by one or more surety companies 33
legally authorized to do business in this State. 34
(2) A letter of credit issued by a financial institution licensed to do business in 35
this State. 36
(3) An insurance policy approved by the Commissioner of Insurance providing a 37
payment guarantee. 38
(b) The payment guarantee in subsection (a) of this section shall be executed in favor of 39
the local government and shall become effective upon the issuance of the building permit. A 40
permit applicant must supply information to a local government demonstrating compliance with 41
subsection (a) of this section upon request. 42
(c) If for any reason a private commercial inspector or private commercial inspection 43
firm ceases inspecting or otherwise abandons a project, the local government issuing the permit 44
shall, at the written request of the permit holder, be responsible for inspecting the project from 45
the point in time of the last private commercial inspection. 46
(d) Local governments required t o begin inspecting commercial projects under 47
subsection (b) of this section may claim against the payment bond for the costs of inspecting the 48
project or may seek payment from the permit holder for whom the local government cond ucted 49
the inspections." 50
General Assembly Of North Carolina Session 2025
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SECTION 3.(i) Article 11 of Chapter 160D of the General Statutes is amended by 1
adding a new section to read: 2
"§ 160D-1105.5. Uniform forms for private commercial inspection. 3
(a) The North Carolina Code Officials Qualification Board in the Office of the State Fire 4
Marshal shall develop the following uniform forms used for private commercial inspections: 5
(1) Inspection reports required under G.S. 160D-1105.1(a) that are specific to the 6
type of inspection being conducted. 7
(2) Notice of intent to use a private commercial inspector that contains the 8
information required under G.S. 160D-1110(c1). 9
(3) Certificate of compliance with the North Carolina State Building Code under 10
G.S. 160D-1116. 11
(b) No local government may require information on the forms developed u nder this 12
section other than that contained on the form." 13
SECTION 3.(j) G.S. 160D-1109 is amended by adding a new subsection to read: 14
"(c) A member of the inspection department shall not be in violation of this section when 15
the local government, its inspection department, or one of the inspectors issues an inspection 16
report receipt for or receives an inspection report evidencing compliance with the applicable 17
North Carolina State Building Code from a private commercial inspector in accordance with this 18
Article." 19
SECTION 3.(k) G.S. 160D-1110 reads as rewritten: 20
"§ 160D-1110. Building permits. 21
… 22
(c1) Applicants for a building permit or permit amendment under this section who opt to 23
use a private commercial inspector or private commercial inspection firm to conduct all 24
inspections to determine compliance with the North Carolina State Building Code shall attach as 25
an addendum to their permit application or amendment a notice of intent to use a private 26
commercial inspector or private commercial inspection firm on the entire project. The notice of 27
intent must contain the contact information for the designated private commercial inspector or 28
private commercial inspection firm. If a private commercial inspection firm is designated, the 29
notice must also include the contact information for the manager or supervisor responsible for its 30
private commercial inspection personnel and operations assigned to the project. Notwithstanding 31
a notice of intent to use a private commercial inspector or firm for a commercial development 32
project, that project is subject to the same local government permit fee schedule that would apply 33
without the notice of intent. 34
(c2) Building permit holders utilizing the local inspect ion department for project 35
inspections may in lieu of its use on a given inspection , and upon three day s' notice to the 36
inspection department, utilize a private commercial inspector to conduct the inspection due on 37
the project and to issue an inspection report as provided in G.S. 160D-1105.1. Each use of a 38
private commercial inspector under this subsection requires a separate notice to the inspection 39
department. The notice may be given on the form utilized under subsection (c1) of this section. 40
G.S. 160D-1105.1(b) applies to inspection reports issued under this subsection. 41
(c3) Except as provided in G.S. 160D-1105.2 and G.S. 160D-1105.3(c), a local 42
government issuing a building permit for projects to be inspected by private commercial 43
inspectors shall not conduct inspections on the project for compliance with the North Carolina 44
State Building Code or otherwise inter fere, directly or indirectly, with the private commercial 45
inspection process. The local government issuing the permit shall conduct the inspections on the 46
project necessary to determine compliance with any local law applicable to the construction of 47
commercial buildings or structures. 48
…." 49
SECTION 3.(l) G.S. 160D-1112 reads as rewritten: 50
"§ 160D-1112. Changes in work.work or permit. 51
General Assembly Of North Carolina Session 2025
House Bill 831-Second Edition Page 13
After a building permit has been issued, no changes or deviations from the terms of the 1
application, plans and specifications, or the permit, except where changes or deviations are 2
clearly permissible under the North Carolina State Building Code, shall be made until specific 3
written approval of proposed changes or deviations has been obtained from the inspection 4
department. A building permit shall be amended to designate the use of or changes in the 5
designated private commercial inspector or private commercial inspection firm." 6
SECTION 3.(m) G.S. 160D-1116 reads as rewritten: 7
"§ 160D-1116. Certificates of compliance; 30-days' or less notice; temporary certificates of 8
occupancy. 9
(a) At the conclusion of all work done under a building permit, the appropriate inspector 10
inspector, including a private commercial inspector, if applicable, shall make a final inspection, 11
and, if the completed work complies with all applicable State and local laws and with the terms 12
of the permit, the insp ector shall issue a certificate of compliance. compliance provided that 13
private commercial inspectors may only issue certificates of compliance with the North Carolina 14
State Building Code . Except as provided by subsection (b) of this section, no new building or 15
part thereof may be occupied, no addition or enlargement of an existing building may be 16
occupied, and no existing building that has been altered or moved may be occupied, until the 17
inspection department or the private commercial inspector, if applicable, has issued a certificate 18
of compliance. Certificates of compliance issued by private commercial inspectors shall be on 19
the form developed by the North Carolina Code Officials Qualification Board in the Office of 20
the State Fire Marshal under G.S. 160D-1105.5. 21
(a1) Within 30 days from the date a private commercial inspector anticipates issuing a 22
certificate of compliance pursuant to subsection (a) of this section, the private commercial 23
inspector shall notify the applicable local government in writing by electronic mail , first-class 24
mail, or physical delivery of the date the inspector anticipates issuing a certificate of compliance 25
with the North Carolina State Building Code. 26
(a2) Private commercial inspectors issuing a certificate of compliance with the North 27
Carolina State Building Code shall provide the local government with a copy of th at certificate 28
by electronic mail , first -class mail, or physical delivery , and its receipt shall be promptly 29
acknowledged by the local government through reciprocal means. 30
(b) A temporary certificate of occupancy may be issued by the local government 31
permitting occupancy for a stated period of time of either the entire building or of specified 32
portions of the building if the local government inspector finds that the building may safely be 33
occupied prior to its final completion. A permit holder may requ est and be issued a temporary 34
certificate of occupancy if the conditions and requirements of the North Carolina State Building 35
Code are met. Only a local government may issue a certificate of occupancy or a temporary 36
certificate of occupancy. 37
(b1) A certif icate of occupancy shall not be withheld on any project solely because a 38
certificate of compliance has been issued by a private commercial inspector under this Article. 39
(b2) Upon issuing a certificate of occupancy or temporary certificate of occupancy unde r 40
this section for any commercial project in which a private commercial inspector has issued a 41
certificate of compliance, the local government or State Fire Marshal may rely on the private 42
commercial inspector's certificate of compliance that the completed work is in compliance with 43
the North Carolina State Building Code , and the local government or State Fire Marshal , its 44
inspection departments, and its inspectors shall be immune from and discharged and released 45
from any liabilities, duties, and responsibilities imposed by this Article with respect to or in 46
common law from any claim arising out of or attributed to the certificate of compliance. 47
(c) Any person who owns, leases, or controls a building and occupies or allows the 48
occupancy of the building or a part of the building before a certificate of compliance or temporary 49
certificate of occupancy has been issued pursuant to subsection (a) or (b) of this section is guilty 50
of a Class 1 misdemeanor." 51
General Assembly Of North Carolina Session 2025
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SECTION 4. G.S. 160D-1110.1 reads as rewritten: 1
"§ 160D-1110.1. Commercial and multifamily building permits for applications with sealed 2
plans; third-party plan review alternatives; at-risk building foundation permits; 3
at-risk building structure permits 4
… 5
(d) Independent Third‑Party Review to Assist Local Government. – A Provided that the 6
review does not exceed the time prescribed by subsection (c) of this section, a local government 7
may utilize and contract with a any of the following to perform independent third -party plan 8
reviews under this section: 9
(1) A licensed professional engineer or licensed architect certified under 10
G.S. 143‑151.13(f) to perform independent third‑party plan review under this 11
section, provided that the review time does not exceed the time frame 12
prescribed by subsection (c) of this section.G.S. 143-151.13(f). 13
(2) A private commercial inspector certified under G.S. 143-151.14A and 14
registered under G.S. 143-151.19A. 15
(e) Independent Third‑Party Review Election by Permit Applicant. – If a local 16
government initially undertakes plan review of the submitted plans and does not issue a building 17
permit decision or determines it is unable to complete plan review within the time frame 18
prescribed by subsection (c) of this section, a permit applicant may subsequently elect to utilize 19
and cont ract with a licensed professional engineer or licensed architect certified under 20
G.S. 143‑151.13(f) to perform an independent third‑party plan review. Upon the local 21
government's receipt of a completed plan review with certification required by subsection (f) of 22
this section, the local government shall issue applicable building permits for the project within 23
three business days and will refund or waive all applicable plan review and permit fees for the 24
project upon issuance of the applicable building permits. 25
…." 26
SECTION 5. G.S. 160D-403 reads as rewritten: 27
"§ 160D-403. Administrative development approvals and determinations. 28
(a) Development Approvals. – To the extent consistent with the scope of regulatory 29
authority granted by this Chapter, no person shal l commence or proceed with development 30
without first securing any required development approval from the local government with 31
jurisdiction over the site of the development. A development approval shall be in writing and 32
may contain a provision requiring the development to comply with all applicable State and local 33
laws. A local government may issue development approvals in print or electronic form. Any 34
development approval issued exclusively in electronic form shall be protected from further 35
editing once issued. Applications for development approvals may be made by the landowner, a 36
lessee or person holding an option or contract to purchase or lease land, or an authorized agent 37
of the landowner. An easement holder may also apply for development approval for such 38
development as is authorized by the easement. 39
(a1) Concurrent Review for Development Approvals. – To the extent consistent with the 40
scope of regulatory authority granted by this Chapter, to lessen the time required to obtain all 41
necessary approvals from a local government with jurisdiction over the site of the development, 42
the local government shall ensure development approval processes run concurrently with other 43
applications or processes for approvals notwithstanding that related development approvals for 44
the project have not yet been obtained. 45
…." 46
SECTION 6.(a) G.S. 143-139.4 is repealed. 47
SECTION 6.(b) G.S. 160D-402(d) reads as rewritten: 48
"(d) Financial Support. – The local government may appropriate for the support of the 49
staff any funds that it deems necessary. It shall have power to fix reasonable fees for support, 50
administration, and implementation of programs authorized by this Chapter, and all such fees 51
General Assembly Of North Carolina Session 2025
House Bill 831-Second Edition Page 15
shall be used for no other purposes. When an inspection, for which the permit holder has paid a 1
fee to the local government, is performed by a marketplace pool Code-enforcement official upon 2
request of the State Fire Marshal under G.S. 143-151.12(9)a., the local government shall 3
promptly return to the permit holder the fee collected by the local government for such inspection. 4
This subsection applies to the following types of inspection: plumbing, electrical systems, 5
general building restrictions and regulations, heating and air -conditioning, and the general 6
construction of buildings." 7
SECTION 7. To implement the provisions of this act on the effective date of Sections 8
1, 2, 3, 4, and 6 of this act, the Office of the State Fire Marshal may begin rulemaking no later 9
than 90 days after this act becomes law, but no rules shall become effective prior to July 1, 2026. 10
SECTION 8. Sections 1, 2, 3, 4, and 6 of this act become effective July 1, 2026. The 11
remainder of this act is effective when it becomes law. 12