Code Enforcement Pathways & Procedures Act.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 963

Short Title: Code Enforcement Pathways & Procedures Act. (Public)
Sponsors: Representative Adams.
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Appropriations, if favorable, Rules, Calendar, and Operations of the House
April 14, 2025
*H963-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO AMEND THE GENERAL STATUTES RELATED TO BUILDING CODE 2
ENFORCEMENT; TO ESTA BLISH A BUILDING INS PECTOR APPRENTICESHI P 3
PROGRAM AND A PROGRA M FOR GENERAL CONTRA CTORS TO BECOME 4
CODE-ENFORCEMENT OFF ICIALS; TO REQUIRE J UST CAUSE AND DUE 5
PROCESS PROTECTIONS FOR DISCIPLINARY ACTIONS AGAINST COUNTY AND 6
MUNICIPAL BUILDING I NSPECTORS; TO PROVID E FINALITY FOR APPRO VED 7
STAGES OF BUILDING I NSPECTIONS UNDER SPE CIFIED CONDITIONS; T O 8
ESTABLISH THE DISAST ER BUILDING INSPECTI ON RELIEF FUND; AND TO 9
PRESERVE CERTAIN COD E OFFICIALS' AUTHORI TY TO INSPECT CERTAI N 10
NONRESIDENTIAL BUILDINGS. 11
The General Assembly of North Carolina enacts: 12
13
ESTABLISH BUILDING INSPECTOR APPRENTICESHIP PROGRAM 14
SECTION 1.(a) Article 9C of Chapter 143 of the General Statutes i s amended by 15
adding a new section to read: 16
"§ 143-151.22. Building Inspector Apprenticeship and Certification Advancement. 17
(a) The Board, in consultation with the Office of State Fire Marshal, shall develop and 18
implement a Building Inspector Apprenticeship Program. This program is intended to provide a 19
structured pathway into the Code -enforcement profession and shall align with the types and 20
levels of certification established by the Board under G.S. 143-151.12. The program shall allow 21
local government inspection departments to employ apprentice Code-enforcement officials who 22
do not yet meet the requirements of G.S. 143-151.13 for standard certification. An apprentice 23
Code-enforcement official may perform inspections only under the direct supervision, as defined 24
by Board rule, of a fully certified Code-enforcement official holding a standard certificate of the 25
appropriate type and level. The Board shall adopt rules establishing the terms of the 26
apprenticeship, including, but not limited to, minimum training curriculum, precise requirements 27
for direct supervision and supervision ratios, and a maximum duration of one year, which may 28
be extended by the Board for up to one additional year in accordance with Board rules, for an 29
individual to serve as an apprentice. 30
(b) The Board may issue an apprenticeship certificate to an individual employed as an 31
apprentice Code -enforcement official, upon application by the employing jurisdiction. The 32
apprenticeship certificate shall be valid only for the apprentice 's specific s cope of assignments 33
and jurisdiction, as determined by the Board, and shall be conditioned on the individual 's active 34
participation in required training and satisfactory progress in the program. Notwithstanding 35
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G.S. 143-151.13(d), an apprenticeship certificate may be renewed or reissued in accordance with 1
Board rules if the individual remains employed in an active training capacity under the program, 2
subject to the maximum duration established under subsection (a) of this section. 3
(c) The Building Inspector Apprenticeship Program shall include a structured 4
combination of on -the-job training and related classroom or online education. The Board, in 5
consultation with the Office of State Fire Marshal, shall approve a curriculum of core Code 6
classes necessary for competency at the relevant certification level. The Board and the Office of 7
State Fire Marshal shall coordinate and facilitate access to such classes, including leveraging 8
resources and course offerings of the North Carolina Community College System, with the goal 9
of providing required core curriculum classes at no cost or reduced cost to apprentices or their 10
employing jurisdictions, subject to the availability of funds. An apprentice who successfully 11
completes the approved curriculum and meets any experience requirements set by the Board shall 12
be eligible to sit for the appropriate State examination for standard certification required by 13
G.S. 143-151.13(a) or qualify for certification under G.S. 143-151.13(c1). The Board may also 14
authorize partial credit t oward experience requirements for higher level certifications based on 15
hours successfully completed in the apprenticeship program. 16
(d) The Office of State Fire Marshal is authorized to provide financial assistance to 17
encourage participation in the apprenti ceship program. Subject to the availability of funds 18
appropriated for this purpose, the Office of State Fire Marshal may award grants to local 19
governments to support a portion of salary and training expenses for apprentice 20
Code-enforcement officials. Train ing expenses eligible for grant funding may include, but are 21
not limited to, tuition or fees for required courses not otherwise provided at no cost pursuant to 22
subsection (c) of this section, costs for course materials, and travel expenses related to requi red 23
training. The Office of State Fire Marshal shall establish guidelines for grant applications, with 24
priority given to jurisdictions demonstrating significant inspector staffing needs. 25
(e) The Board shall review its rules and criteria for issuance of sta ndard certificates at 26
levels II and III and shall, where feasible, eliminate or modify any requirements that 27
unnecessarily impede progression of Code -enforcement officials to higher levels. In its review, 28
the Board shall consider all of the following: 29
(1) Reducing minimum years of experience required between levels. 30
(2) Accepting alternate forms of relevant experience, including successful 31
completion of the apprenticeship program established under this section, 32
documented military service experience in cons truction trades or inspection, 33
or verified private-sector inspection experience acceptable to the Board. 34
(3) Recognition of nationally recognized certifications or credentials from other 35
states that meet or exceed North Carolina standards. 36
No later than July 1, 2026, the Board shall report to the Joint Legislative Oversight 37
Committee on General Government and the Fiscal Research Division regarding its findings and 38
any recommended changes to statutes or rules needed to further facilitate the career development 39
of Code-enforcement officials. 40
(f) Nothing in this section shall compromise the integrity of State Building Code 41
enforcement. Apprentice Code-enforcement officials shall not independently approve or sign off 42
on Code compliance. All inspections performed by an apprentice must be reviewed and approved 43
by the supervising certified inspector holding a standard certificate, who shall bear ultimate 44
responsibility for the Code-enforcement decision." 45
SECTION 1.(b) G.S. 143-151.13 reads as rewritten: 46
"§ 143-151.13. Required standards and certificates for Code-enforcement officials. 47
(a) No person shall engage in Code enforcement under this Article unless that person 48
possesses one of the following types of certificates, currently valid, issued by the Board attesting 49
to that person's qualifications to engage in Code enforcement: (i) a standard certificate; (ii) a 50
limited certificate provided for in subsection (c) of this section; or (iii) a probationary certificate 51
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provided for in subsection (d) of this section. section; or (iv) an apprenticeship certificate issued 1
pursuant to G.S. 143-151.22, authorizing inspections only under direct supervision as defined by 2
Board rule and the provisions of that section. To obtain a standard certificate, a person must pass 3
an examination, as prescribed by the Board or by a contracting party under G.S. 143-151.16(d), 4
that is based on the North Carolina State Building Code and administrative procedures required 5
for Code enforcement. The Board may issue a standard certificate of qualification to each person 6
who successfully completes the examination. The certificate authorizes that person to engage in 7
Code enforcement and to practice as a qualified Code -enforcement official in North Carolina. 8
The certificate of qualification shall bear the signatures of the chairman and secretary of the 9
Board. 10
… 11
(c1) Notwithstanding subsection (a) of this section, the Board may grant a standard 12
certificate to an individual who successfully completes the Building Inspector Apprenticeship 13
Program esta blished pursuant to G.S. 143-151.22, in lieu of the standard examination 14
requirement of subsection (a). Issuance of a certificate under this subsection is permissible only 15
if the individual successfully completes a Board -approved competency evaluation desi gned to 16
verify practical and theoretical knowledge equivalent to that assessed by the standard 17
examination for the relevant certificate level, as defined by Board rule. The Board shall establish 18
rules governing the development, administration, and standard s for passing such competency 19
evaluation. 20
…." 21
SECTION 1.(c) Appropriation. – There is appropriated from the General Fund to 22
the Office of State Fire Marshal in the Department of Insurance the sum of seven hundred fifty 23
thousand dollars ($750,000) nonrecur ring for the 2025 -2026 fiscal year to establish and 24
administer the Building Inspector Apprenticeship Program created by subsection (a) of this 25
section. These funds shall be used for program administration, coordination and provision of 26
training resources as described in G.S. 143-151.22(c), and the provision of local grant funds as 27
described in G.S. 143-151.22(d). The Department of Insurance shall include an evaluation of the 28
program's effectiveness, participation rates, impact on inspector availability, and 29
recommendations regarding future funding needs in its annual budget request submitted to the 30
Office of State Budget and Management and in any relevant reports to the Joint Legislative 31
Oversight Committee on General Government and the Fiscal Research Division. 32
SECTION 1.(d) Rulemaking. – The Code Officials Qualification Board, the Office 33
of State Fire Marshal, and the Department of Insurance may adopt rules necessary to implement 34
the provisions of this section. 35
SECTION 1.(e) Subsection (c) of this section becomes effective July 1, 2025. The 36
remainder of this section becomes effective October 1, 2025. 37
38
FACILITATE TRANSITION OF GENERAL CONTRACTORS TO BECOME 39
CODE-ENFORCEMENT OFFICIALS 40
SECTION 2.(a) Article 9C of Chapter 143 of the General Statutes is amended by 41
adding a new section to read: 42
"§ 143-151.23. General Contractor to Inspector Transition Incentive Program. 43
(a) Program Established. – The Board, in consultation with the North Carolina Licensing 44
Board for General Contractors and the Office of State Fire Marshal, shall develop and implement 45
a General Contractor to Inspector Transition Program (Program). The purpose of this Program is 46
to encourage experienced and qualified individuals holding licenses as general contractors under 47
Chapter 87 of the General Statutes to pursue careers as Code-enforcement officials. The Program 48
shall seek to leverage the construction knowledge and practical experience of general contractors 49
to expedite their qualification, entry, and progression within the Code-enforcement profession. 50
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(b) Eligibility. – Participation in the Program requires that an individual must, at a 1
minimum: 2
(1) Hold a current, valid license in good standing issued by the North Carolina 3
Licensing Board for General Cont ractors. The Board may establish rules 4
defining specific license classifications or experience levels suitable for 5
transition. 6
(2) Satisfy al l general eligibility requirements for employment as a 7
Code-enforcement official established by the employing juris diction and the 8
Board, not otherwise addressed by this section. 9
(3) Meet all prerequisites for obtaining certification as required by the Board, 10
except as specifically modified for Program participants by this section. 11
(c) Program Components; Expedited Qua lification. – The Program shall incorporate 12
incentives designed to facilitate the transition of eligible general contractors, which may include, 13
but are not limited to: 14
(1) Recognition of experience. – The Board may utilize its existing policies and 15
procedures, such as the Policy for Evaluation of Education and Experience, to 16
assess the relevant experience gained by a licensed general contractor 17
participating in the Program, potentially allowing the Boar d to grant credit 18
towards meeting the requirements for specific technical courses where 19
applicable and consistent with the limitations of said policies. This evaluation 20
does not waive the requirement to successfully complete the Law and 21
Administrative course or any State examination required for certification. 22
(2) Tailored training and assessment. – The Board may approve or create 23
specialized training modules or competency evaluations tailored for Program 24
participants, focusing on the State Building Code, e nforcement procedures, 25
and ethical requirements, while potentially crediting prior knowledge 26
demonstrated through licensure and practical experience. 27
(3) Direct eligibility for level II certification. – Notwithstanding any rule 28
requiring sequential progression through certification levels or completion of 29
level I prerequisites, a Program participant who holds a current license as a 30
general contractor and who successfully completes the Law and 31
Administration course required by the Board shall be immediately eligible to 32
do both of the following: 33
a. Enroll in and complete the required technical course for level II 34
certification as a Code-enforcement official. 35
b. Sit for the State examination for level II certification as a 36
Code-enforcement official . Upon passing the level II State 37
examination, the participant shall be granted a standard level II 38
certificate. This provision specifically waives the requirements 39
associated with obtaining a standard level I certificate, including the 40
level I technical course, the level I state examination, and any 41
minimum time requirement for holding a level I certificate, for 42
qualified Program participants. 43
(4) Expedited Progression from level II to level III. – Notwithstanding any rule 44
establishing a minimum time period for which a standard level II certificate 45
must be held, a Program participant who holds a current license as a general 46
contractor and who successfully obtains a standard level II certificate pursuant 47
to subdivision (3) of this subsection shall be immediately eligible for both of 48
of the following: 49
a. Enroll in and complete the required technical course for level III 50
certification. 51
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b. Sit for the State examination for level III certification. 1
This provision specifically waives the minimum time requirement otherwise 2
applicable between obtaining a standard level II certificate and eligibility for 3
the level III examination for qualified Program participants in the building 4
trade. It does not waive the requirement to successfully pass the level III 5
technical course and the level III State examination, nor does it waive any 6
other prerequisite for level III certification not explicitly addressed herein. 7
(5) Competency standards maintained. – Except for the specific waiver of the 8
requirements associated with obtaining a standard level I certificate as 9
provided in subdivision (3) of this subsection and the waiver of the minimum 10
time requirement for holding a standard level II certificate as provided in 11
subdivision (4) of this subsection for eligible Program participants, all other 12
applicable qualification requirements and competency standards for 13
certification, including coursework completion and passing required State 14
examinations for each level obtained, shall remain in effect. The Board shall 15
continue to define the minimum training standards and administer 16
examinations to ensure competency. 17
(d) Outreach and Collaboration. – The Board and the Office of State Fire Marshal shall 18
collaborate with the North Carolina Licensing Board for General Contractors and relevant 19
construction industry associations . Their collaborative efforts sha ll promote awareness of the 20
Program and opportunities in Code enforcement among licensed general contractors. 21
(e) Rulemaking Authority. – The Board shall adopt rules necessary to implement the 22
provisions of this section . Such rules may cover specific eligibi lity criteria, application 23
procedures, standards for experience recognition, and requirements for successful program 24
completion. 25
(f) Integrity of Code Enforcement. – Nothing in this section shall be interpreted as 26
lowering the standards of competency requi red for Code-enforcement officials. Every Program 27
participant must meet the qualification standards set forth by the Board for the applicable level 28
of certification prior to independently performing Code enforcement duties requiring such 29
certification." 30
SECTION 2.(b) This section becomes effective October 1, 2025. 31
32
REQUIRE JUST CAUSE AND DUE PROCESS PROTECTIONS FOR THE DISMISSAL, 33
DEMOTION, OR SUSPENSION OF COUNTY AND MUNICIPAL BUILDING 34
INSPECTORS 35
SECTION 3.(a) Part 4 of Article 5 of Chapter 153A of the General Statutes is 36
amended by adding a new section to read: 37
"§ 153A-100. Building inspector disciplinary procedures. 38
(a) Definitions. – As used in this section, the term "building inspector " means any 39
individual employed or contracted by the county w ho holds a valid certification issued by the 40
North Carolina Code Officials Qualification Board and who is authorized by the county to 41
enforce one or more provisions of the State Building Code pursuant to G.S. 160D-1102 and 42
G.S. 143-151.8, et seq. 43
(b) Just Cause Required; Local Definition. – A building inspector employed by a county 44
pursuant to G.S. 153A-351 shall only be discharged, suspended, or demoted for disciplinary 45
reasons upon a finding of just cause. The county shall adopt rules or personnel policies defining 46
"just cause" for the purposes of this section. This definition shall include, but not be limited to, 47
grounds related to the building inspector's job performance and personal conduct a ffecting the 48
inspector's ability to perform assigned duties. 49
(c) Emergency Suspension Exception. – This section does not preclude the immediate 50
suspension of a building inspector, without prior written notice, in situations where the building 51
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inspector's conduct or performance presents an imminent threat to public safety or property, or 1
results in significant disruption to county operations, provided such grounds align with the 2
county's definition of just cause. Under these circumstances, the building inspector shall receive 3
written justification detailing the sp ecific conduct prompting the suspension as soon as 4
practicable thereafter. The building inspector shall be provided the right to appeal the suspension 5
as provided in subsection (e) of this section. 6
(d) Procedural Safeguards. – Excluding emergency suspensions under subsection (c) of 7
this section, any disciplinary dismissal, demotion, or suspension of a building inspector covered 8
by this section shall adhere to a personnel policy or procedure adopted by the county that ensures 9
the building inspector receives minimum procedural safeguards. Counties shall develop and 10
adopt such a policy or procedure, which shall include, at a minimum, all of the following: 11
(1) Prior written notice. – Before imposing any suspension, demotion, or 12
dismissal for disciplinary reasons, the county shall furnish the inspector with 13
a written statement of the specific acts or omissions that form the basis for the 14
action. This notice shall inform the inspector of the right to appeal the decision 15
according to the county's personnel procedures. 16
(2) Opportunity for hearing. – A hearing before a designated county official or 17
board where the building inspector has a reasonable opportunity to respond to 18
the reasons for the proposed action and present evidence. 19
(3) Right to counsel. – The building inspector possesses the right to be represented 20
by counsel, at the building inspector 's expense, during the hearing and any 21
subsequent appeal stages provided by the county's policy or procedure. 22
(4) Written decision. – A formal written decision detailing findings of fact and 23
the rationale for the disciplinary measure taken. 24
(e) Right to Appeal. – The building inspector shall have the right to appeal the 25
disciplinary action through the employing county's grievance or personnel appeal procedure. The 26
inspector shall be afforded a reasonable time of not less than 15 days to file an appeal for a final 27
decision under the county 's process. The time for filing an appeal shall commence upon the 28
inspector's receipt of the written decision required by subdivision ( d)(4) of this section, or upon 29
receipt of the written justification following an emergency suspension under subsection ( c) of 30
this section, as applicable. 31
(f) Local Flexibility Preserved. – Each county may adopt supplementary personnel 32
policies and procedures governing the discipline and removal of building inspectors, provided 33
they are consistent with the minimum requirements of this section. Nothing in this se ction shall 34
be interpreted to prevent a county from establishing more detailed procedures or higher standards 35
of conduct than those required by this section." 36
SECTION 3.(b) Part 4 of Article 7 of Chapter 160A of the General Statutes is 37
amended by adding a new section to read: 38
"§ 160A-170. Building inspector disciplinary procedures. 39
(a) Definitions. – As used in this section, the term "building inspector " means any 40
individual employed or contracted by the city who holds a valid certification issued by the North 41
Carolina Code Officials Qualification Board and who is authorized by the city to enforce one or 42
more provisions of the State Building Code pursuant to G.S. 160D-1102 and G.S. 143-151.8, et 43
seq. 44
(b) Just Cause Required; Local Definition. – A building inspector employed by a city 45
pursuant to G.S. 160A-311 and charged with enforcing the State Building Code shall only be 46
discharged, suspended, or demoted for disciplinary reasons upon a finding of just cause. The city 47
shall adopt rules or personnel policies defining "just cause" for the purposes of this section. This 48
definition shall include, but not be limited to, grounds related to the building inspector's job 49
performance and personal conduct affecting the inspector's ability to perform assigned duties. 50
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(c) Emergency Suspension Exception. – This section does not preclude the immediate 1
suspension of a building inspector, without prior written notice, in situations where the building 2
inspector's conduct or pe rformance presents an imminent threat to public safety or property, or 3
results in significant disruption to c ity operations, provided such grounds align with the c ity's 4
definition of just cause. Under these circumstances, the building inspector shall recei ve written 5
justification detailing the specific conduct prompting the suspension as soon as practicable 6
thereafter. The building inspector shall be provided the right to appeal the suspension as provided 7
in subsection (e) of this section. 8
(d) Procedural Safeguards. – Excluding emergency suspensions under subsection ( c) of 9
this section, any disciplinary dismissal, demotion, or suspension of a building inspector covered 10
by this section shall adhere to a personnel policy or procedure adopted by the c ity that ensures 11
the building inspector receives minimum procedural safeguards. C ities shall develop and adopt 12
such a policy or procedure, which shall include, at a minimum, all of the following: 13
(1) Prior Written Notice. – Before imposing any suspension, demotion , or 14
dismissal for disciplinary reasons, the c ity shall furnish the inspector with a 15
written statement of the specific acts or omissions that form the basis for the 16
action. This notice shall inform the inspector of the right to appeal the decision 17
according to the city's personnel procedures. 18
(2) Opportunity for Hearing. – A hearing before a designated city official or board 19
where the building inspector has a reasonable opportunity to respond to the 20
reasons for the proposed action and present evidence. 21
(3) Right to Counsel. – The building inspector possesses the right to be 22
represented by counsel, at the building inspector's expense, during the hearing 23
and any subsequent appeal stages provided by the city's policy or procedure. 24
(4) Written Decision. – A formal written decision detailing findings of fact and 25
the rationale for the disciplinary measure taken. 26
(e) Right to Appeal. – The building inspector shall have the right to appeal the 27
disciplinary action through the employing c ity's grievance or person nel appeal procedure. The 28
inspector shall be afforded a reasonable time of not less than 15 days to file an appeal for a final 29
decision under the c ity's process. The time for filing an appeal shall commence upon the 30
inspector's receipt of the written decision required by subdivision (d)(4) of this section, or upon 31
receipt of the written justification following an emergency suspension under subsection ( c) of 32
this section, as applicable. 33
(f) Local Flexibility Preserved. – Each city may adopt supplementary personnel policies 34
and procedures governing the discipline and removal of building inspectors, provided they are 35
consistent with the minimum requirements of this section. Nothing in this section shall be 36
interpreted to prevent a c ity from establishing more d etailed procedures or higher standards of 37
conduct than those required by this section." 38
SECTION 3.(c) This section becomes effective July 1, 2026, and applies to 39
disciplinary actions initiated on or after that date. 40
41
PROVIDE FINALITY TO BUILDING INSPECTIONS 42
SECTION 4.(a) G.S. 160D-1113 reads as rewritten: 43
"§ 160D-1113. Inspections of work in progress. 44
(a) Inspection Authority and Access. – Subject to the limitation imposed by 45
G.S. 160D-1104(d), as the work pursuant to a building permit progresse s, local inspectors shall 46
make as many inspections thereof as may be necessary to satisfy them that the work is being 47
done according to the provisions of any applicable State and local laws and of the terms of the 48
permit. In exercising this power, members of the inspection department have a right to enter on 49
any premises within the jurisdiction of the department at all reasonable hours for the purposes of 50
inspection or other enforcement action, upon presentation of proper credentials. If a building 51
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permit h as been obtained by an owner exempt from licensure under G.S. 87-1(b)(2), no 1
inspection shall be conducted without the owner being present, unless the plans for the building 2
were drawn and sealed by an architect licensed pursuant to Chapter 83A of the General Statutes. 3
(b) Finality of Approved Inspections. – If any component or element of construction has 4
passed a required inspection and been approved by a local inspector (or by the inspection 5
department) as compliant with the State Building Code and appli cable law, that approval shall 6
be binding and final as to the Code requirements for that stage of construction. No subsequent 7
inspection shall require the uncovered re -inspection, alteration, dismantling, or removal of the 8
approved component or element, nor shall any inspector or inspection department rescind or 9
withhold approval for such component or element, except upon the occurrence of one of the 10
following conditions: 11
(1) Change in Code Requirements – A material change in the applicable State 12
Building Code or other governing law takes effect after the date of the 13
inspection approval, and retroactive compliance with the new provision is 14
expressly required or is necessary for life-safety reasons. 15
(2) Fraud or Misrepresentation – The inspection approval was issued on the basis 16
of false or misleading information, misrepresentation, or fraud which, if 17
known at the time, would have caused the inspector to withhold approval. This 18
includes situations where the work as actually performed deviated from what 19
was presented to the inspector in order to obtain approval. 20
(3) Concealed Defect Discovered – A defect or code violation is discovered in the 21
approved work that could not reasonably have been observed at the time of 22
the original inspection (for example, a condition that was hidden within a wall, 23
underground, or otherwise concealed), and the defect results in 24
non-compliance with applicable code requirements or presents a safety 25
hazard. 26
(4) Subsequent Damage or Alteration – The approved component or element has 27
been damaged, removed, or altered after the date of the approved inspection 28
in a manner that brings it out of compliance with the Code or the approved 29
plans. 30
If any of the above conditions is met, an inspector may reinspect and require corrective action 31
regarding the previously approved work. In the absence of such conditions, however, the initial 32
approval shall remain valid and the project shall not be deemed in violation of the State Building 33
Code with respect to the aspects of work so approved." 34
SECTION 4. (b) This section becomes effective October 1, 2025, and applies to 35
building permits applied for on or after that date. 36
37
CREATION OF DISASTER BUILDING INSPECTION RELIEF FUND 38
SECTION 5.(a) Purpose. – The purpose of this section is to create a dedicated fund 39
to support Tier 1 and Tier 2 counties in increasing their building code inspection capacity after a 40
disaster. Such capacity enhancements are critical to ensuring public safety and exped iting the 41
recovery of impacted communities. 42
SECTION 5.(b) Definitions. – For purposes of this section, the following definitions 43
apply: 44
(1) County tier system. – The system for designating the economic well-being of 45
counties in the State as established by the North Carolina Department of 46
Commerce pursuant to G.S. 143B-437.08. 47
(2) Disaster. – An event for which the Governor has declared a state of emergency 48
or disaster pursuant to Chapter 166A of the General Statutes. 49
(3) Eligible county. – A county designated as a tier 1 or tier 2 county under the 50
county tier system at the time of the disaster declaration. 51
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(4) Eligible costs. – Expenditures directly related to the hiring, contracting, or 1
procurement of additional building code inspectors and other personnel 2
necessary to conduct post -disaster inspections, including associated 3
reasonable costs for salaries, contract fees, travel, lodging, overtime, and 4
training expenses incurred after the date of the disaster. 5
(5) OSFM. – The Office of State Fire Marshal. 6
(6) Tier 1 county. – A county designated as tier 1 under the county tier system. 7
(7) Tier 2 county. – A county designated as tier 2 under the county tier system. 8
SECTION 5.(c) Establishment of Fund. – There is established in the Department of 9
Insurance a spec ial fund to be known as the Disaster Building Inspection Relief Fund (Relief 10
Fund). The Relief Fund shall be administered by OSFM. The purpose of the Relief Fund is to 11
provide financial assistance grants to eligible counties for the purpose of hiring addit ional 12
building code inspectors to support disaster recovery efforts. 13
SECTION 5.(d) Fund Availability and Triggering Event. – Funds within the Relief 14
Fund shall become available for application by eligible counties only upon the Governor's 15
declaration of a state of emergency or disaster pursuant to Chapter 166A of the General Statutes 16
impacting one or more eligible counties. 17
SECTION 5.(e) Eligible Use of Funds. – Funds disbursed from the Relief Fund 18
under this section shall be used by eligible counties solely for eligible costs incurred for the 19
purpose of augmenting building code inspection capacity in response to the declared disaster. 20
Funds may not be used to supplant existing local funding for Code enforcement activities that 21
were budgeted prior to the disaster. 22
SECTION 5.(f) Matching Requirements and Local Contributions. – Funds disbursed 23
from the Relief Fund are subject to the following: 24
(1) Match required. – No eligible county shall receive funds under this section 25
unless, as a condition precedent to the disbursement of funds, the county has 26
documented its commitment to provide a local match from non-State sources. 27
(2) Match percent ages. – The required local match shall be calculated as a 28
percentage of the total eligible costs for which the county requests assistance 29
from the Relief Fund, determined as follows: 30
a. Tier 1 counties shall provide a local match equivalent to ten percent 31
(10%) of the requested eligible costs. 32
b. Tier 2 counties shall provide a local match equivalent to twenty -five 33
percent (25%) of the requested eligible costs. 34
SECTION 5.(g) Application and Award Process. – Funds disbursed from the Relief 35
Fund are subject to the following application and award processes: 36
(1) Application. – Following a disaster triggering Relief Fund availability, an 37
eligible county seeking assistance shall submit an application to OSFM. 38
OSFM shall prescribe the application form. The applic ation shall, at a 39
minimum: 40
a. Describe the impact of the disaster on the county's building stock and 41
existing Code-enforcement capacity. 42
b. Provide documentation substantiating the need for additional 43
Code-enforcement personnel resulting from the disaster. 44
c. Outline a plan for utilizing the requested funds, including the number 45
and type of personnel to be hired or contracted and estimated eligible 46
costs. 47
d. Certify the county's commitment to provide the required local match 48
as specified in subsection (f) of this section. 49
(2) Award process. – OSFM shall review applications based on demonstrated 50
need, the severity of the disaster's impact on the county, the feasibility of the 51
General Assembly Of North Carolina Session 2025
Page 10 House Bill 963-First Edition
county's plan, and compliance with this section. OSFM may award grants to 1
eligible c ounties on an expedited basis following a disaster declaration to 2
ensure timely inspection services are available to support safe rebuilding 3
efforts. In the event that available funds are insufficient to meet the needs of 4
all qualified applicants, OSFM shall prioritize awards as follows: 5
a. First, to eligible counties designated as a tier 1 county. 6
b. Second, among remaining eligible counties, preference shall be given 7
to those with a total population of less than 200,000 according to the 8
most recent decennial census data. 9
SECTION 5.(h) Reporting. – OSFM shall report on the administration and use of 10
the Relief Fund to the Joint Legislative Commission on Governmental Operations and the Fiscal 11
Research Division. An initial report shall be submitted no later t han 90 days after the first grant 12
is awarded from the Relief Fund following a disaster declaration. Subsequent reports shall be 13
submitted annually by November 1. Each report shall include, for the reporting period, 14
information on all grants awarded, the re cipient counties, the amount of State funds disbursed 15
and local matching funds provided for each grant, and a summary of the outcomes achieved 16
through the additional inspection support, including any effects on the timeliness of disaster 17
recovery efforts. 18
SECTION 5.(i) Administration. – OSFM is authorized to develop guidelines, 19
procedures, and application forms necessary to implement the provisions of this section. 20
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PRESERVE LEVEL I CODE -ENFORCEMENT OFFICIALS' AUTHORITY TO 22
INSPECT CERTAIN NONRESIDENTIAL BUILDINGS 23
SECTION 6.(a) Level I Inspections. – Notwithstanding any provision of law to the 24
contrary, an individual who holds a standard certificate as a Code -enforcement official with a 25
level I Building qualification is authorized to conduct inspections on the following types of 26
structures: 27
(1) Small residential buildings. – Residential building up to three stories in height 28
and containing no more than four dwelling units, in accordance with the North 29
Carolina Residential Code. 30
(2) Small nonresidential build ings. – Nonresidential buildings that are no more 31
than one story in height and do not exceed 20,000 square feet in gross floor 32
area, provided such buildings are classified under the North Carolina State 33
Building Code as Business, Mercantile, Factory -Industrial, Storage, or 34
Utility/Miscellaneous occupancies. 35
Level I Code -enforcement officials may perform any inspection within the scope 36
defined in this subsection. 37
SECTION 6.(b) Rulemaking. – The Code Officials Qualification Board shall adopt 38
rules substanti vely identical to subsection (a) of this section. Rules adopted pursuant to this 39
section are not subject to Part 3 of Article 2A of Chapter 150B of the General Statutes, and such 40
rules shall become effective as provided in G.S. 150B-21.3(b1) as though 10 o r more written 41
objections had been received under G.S. 150B-21.3(b2). Until the effective date of the rules the 42
Code Officials Qualification Board is required to adopt pursuant to this section, the Board and 43
local governments shall follow the provisions of subsection (a) of this section as they relate to 44
the buildings level I Code-enforcement officials may inspect. 45
SECTION 6.(c) Sunset. – Subsection (a) of this section expires when the permanent 46
rules adopted as required by subsection (b) of this section become effective. 47
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EFFECTIVE DATE 49
SECTION 7. Except as otherwise provided, this act is effective when it becomes 50
law. 51