Construction Inspection Efficiency Act.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 1039

Short Title: Construction Inspection Efficiency Act. (Public)
Sponsors: Senators Chaudhuri and Lee (Primary Sponsors).
Referred to: Rules and Operations of the Senate
May 4, 2026
*S1039-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO AUTHORIZE OWNERS, PERMIT HOLDERS, CONTRACTORS LISTED ON 2
A PERMIT, AND AUTHOR IZED AGENTS TO USE C ERTIFIED AND REGISTE RED 3
PRIVATE CONSTRUCTION INSPECTORS OR REGIS TERED PRIVATE 4
CONSTRUCTION INSPECT ION FIRMS FOR RESIDE NTIAL AND COMMERCIAL 5
BUILDINGS AND STRUCT URES WHEN A LOCAL IN SPECTION DEPARTMENT 6
FAILS TO CONDUCT A REQUESTED INSPECTION WITHIN TEN BUSINESS DAYS 7
OR BY AN AGREED -UPON DATE, AND TO ESTABL ISH REQUIREMENTS FOR 8
QUALIFICATION, REGISTRATION, REPORTING, CONFLICTS OF INTEREST, FEES, 9
FORMS, FEE RECONCILI ATION, AND PRIVATE C ERTIFICATES OF STATE 10
BUILDING CODE COMPLI ANCE RELATED TO PRIV ATE CONSTRUCTION 11
INSPECTIONS. 12
The General Assembly of North Carolina enacts: 13
14
PART I. PRIVATE CONS TRUCTION INSPECTOR C ERTIFICATION AND 15
REGISTRATION 16
SECTION 1.1. G.S. 143-151.8 reads as rewritten: 17
"§ 143-151.8. Definitions. 18
(a) The following definitions apply in this Article: 19
… 20
(3) Code enforcement. – The examination and approval of plans and 21
specifications, the inspection of the manner of construction, workmanship, 22
and materials for construction of buildings and structures and their 23
components, or the enforcement of fire code regulations by any of the 24
following, to assure compliance with the North Carolina State Building Code 25
and related local building rules: 26
… 27
(3a) Commercial building or structure. – A building or structure, including a 28
multifamily development project, that is subject to regulation under the North 29
Carolina Building Code and is not subject to regulation under the North 30
Carolina Residential Code. 31
(4) Local inspection department. – The agency or agencies of local government, 32
or any government agency of a federally recognized Indian Tribe, with 33
authority to make inspections of buildings and to enforce the Code and other 34
laws, o rdinances, and rules enacted by the State, a local government, or a 35
federally recognized Indian Tribe. 36
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(4a) Private construction inspection. – An inspection by a private construction 1
inspector, for compliance with the North Carolina State Building Code, of the 2
manner of construction, workmanship, and materials for the construction, 3
reconstruction, alteration, repair, movement, installation, or extension of a 4
residential building or structure or commercial building or structure, including 5
the building 's or s tructure's components and elements. The term does not 6
include inspection or enforcement of Code provisions pertaining to boilers or 7
elevators the administration and enforcement of which is allocated to the State 8
Department of Labor under G.S. 143-139(c) or (d), and does not include 9
inspection for compliance with zoning, subdivision, stormwater, erosion and 10
sedimentation control, driveway, utility, fire prevention system acceptance 11
testing or approval, or other local or State law that is not part of the Nort h 12
Carolina State Building Code. 13
(4b) Private construction inspection firm. – A firm, partnership, corporation, 14
limited liability company, association, or other legal entity registered under 15
this Article to offer or provide private construction inspections through one or 16
more private construction inspectors. 17
(4c) Private construction inspector. – An individual who is certified and registered 18
under this Article to engage in private construction inspections. 19
(5) Qualified Code-enforcement official. – A person qualified under this Article 20
to engage in the practice of Code enforcement. 21
(6) Residential building or structure. – A building or structure subject to 22
regulation under the North Carolina Residential Code. 23
(b) For purposes of this Article, the population of a city or county is determined according 24
to the most current federal census, unless otherwise specified. 25
(c) For purposes of this Article, "willful misconduct, gross negligence, or gross 26
incompetence" in addition to the meaning of those terms under other provisions of the General 27
Statutes or at common law, includes any of the following: 28
… 29
(7) Enforcing a Code official's preference in the method or manner of installation 30
of heating ventilation and air -conditioning units, appliances, or equipment if 31
it is not required by the State Building Code and is in contradiction of a 32
manufacturer's installation instructions or specifications. 33
(8) Refusing, without authority under Article 11 of Chapter 160D of the General 34
Statutes, to accept a private construction inspection report or private certificate 35
of State Building Code compliance that is required to be accepted under that 36
Article." 37
SECTION 1.2. G.S. 143-151.12 reads as rewritten: 38
"§ 143-151.12. Powers. 39
In addition to powers conferred upon the Board elsewhere in this Article, the Board has the 40
power to do the following: 41
(1) Adopt rules necessary to administer this Article. 42
(1a) Require State agencies, local inspection departments, and local governing 43
bodies to submit reports and information about the employment , education, 44
and training of Code-enforcement officials. 45
(2) Establish minimum standards for employment as a Code-enforcement official: 46
(i) in probationary or temporary status, and (ii) in permanent positions. 47
(3) Certify persons as being qualified under t he provisions of this Article to be 48
Code-enforcement officials, including persons employed by a federally 49
recognized Indian Tribe to perform inspections on tribal lands. 50
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(3a) Certify persons as being qualified under the provisions of this Article to be 1
North Carolina State Building Code Permit Technicians. 2
(3b) Certify and register individuals as being qualified under the provisions of this 3
Article to be private construction inspectors for the purpose of conducting 4
private construction inspections. 5
(3c) Register private construction inspection firms for the purpose of offering or 6
providing private construction inspections through private construction 7
inspectors certified and registered under this Article. 8
(4) Consult and cooperate with counties, municipalit ies, agencies of this State, 9
other governmental agencies, and with universities, colleges, junior colleges, 10
community colleges and other institutions concerning the development of 11
Code-enforcement training schools and programs or courses of instruction. 12
(5) Establish minimum standards and levels of education or equivalent experience 13
for all Code-enforcement instructors, teachers or professors. 14
(5a) Ensure that the minimum standards for and education of private construction 15
inspectors include specific instru ction on the duties and responsibilities 16
imposed by law on a private construction inspector, including reporting 17
obligations, conflict-of-interest limitations, inspection scope, and the limits of 18
a private construction inspector's authority. 19
… 20
(9) Establish within the Office of the State Fire Marshal a marketplace pool of 21
qualified Code-enforcement officials available for the following purposes: 22
a. When requested by the State Fire Marshal, to assist in the discharge of 23
the State Fire Marshal's duty under G .S. 143-139 to supervise, 24
administer, and enforce the North Carolina State Building Code. The 25
State Fire Marshal shall have the power and authority to fix and collect 26
reasonable fees for services performed by Code-enforcement officials 27
under this sub -subdivision. The State Fire Marshal may also collect 28
reimbursement, at the rate established under G.S. 138-6, for mileage 29
costs incurred by Code -enforcement officials going to and from 30
inspections conducted under this sub -subdivision. The State Fire 31
Marshal shall have no power or authority to fix or collect fees incurred 32
by local inspection departments under sub -subdivision b. of this 33
subdivision. 34
b. When requested by local inspection departments, to assist in Code 35
enforcement. 36
(10) Establish criteria to be used by the Office of the State Fire Marshal to verify 37
that private construction inspectors and private construction inspection firms 38
meet the standards required for private construction inspections." 39
SECTION 1.3. Article 9C of Chapter 143 of the General Statutes is amended by 40
adding new sections to read: 41
"§ 143-151.14A. Required standards and certificates for private construction inspectors. 42
(a) Certificate Required. – No individual shall conduct a private construction inspection 43
under this Article unles s the individual possesses a standard private construction inspector 44
certificate, currently valid, issued by the Board attesting to that individual 's qualifications to 45
engage in private construction inspection and the individual is registered under 46
G.S. 143-151.19A. 47
(b) Examination. – To obtain a standard private construction inspector certificate, an 48
individual shall pass an examination, as prescribed by the Board or by a contracting party under 49
G.S. 143-151.16(d), that is based on the North Carolina State Building Code and administrative 50
procedures required for Code enforcement and private construction inspection. The Board may 51
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issue a standard private construction inspector certificate of qualification to each individual who 1
successfully completes the examination. 2
(c) Effect of Certificate. – A private construction inspector certificate authorizes an 3
individual, upon registration as provided in G.S. 143-151.19A, to engage in private construction 4
inspection and to practice as a qualified private construct ion inspector in North Carolina. The 5
private construction inspector certificate of qualification shall bear the signatures of the chair and 6
secretary of the Board. 7
(d) Types of Certificates. – The Board shall issue one or more standard private 8
construction inspector certificates to each applicant demonstrating the qualifications set forth in 9
this section. Standard private construction inspector certificates are available for each of the 10
following types of qualified private construction inspectors: 11
(1) Building inspector. 12
(2) Electrical inspector. 13
(3) Mechanical inspector. 14
(4) Plumbing inspector. 15
(5) Fire inspector. 16
(6) Residential changeout inspector. 17
(e) Scope and Level. – The holder of a standard private construction inspector certificate 18
may conduct private construction inspections only within the inspection area and level described 19
upon the certificate issued by the Board. A private construction inspect or may qualify and hold 20
one or more private construction inspector certificates. These private construction inspector 21
certificates may be for different levels in different types of positions as defined in this section 22
and in rules adopted by the Board. 23
(f) Statewide Authority. – A private construction inspector holding a certificate 24
indicating a specified level of proficiency in a particular type of position may conduct a private 25
construction inspection calling for that type of qualification anywhere in this State. With respect 26
to all types of private construction inspectors, those with Level I, Level II, or Level III certificates 27
shall be qualified to inspect and approve only those types and sizes of residential or commercial 28
buildings and structures as specified in rules adopted by the Board. 29
(g) Existing Code -Enforcement Officials. – Notwithstanding subsection (b) of this 30
section, the Board shall, without requiring an examination, issue a private construction inspector 31
certificate to an individual curren tly certified as a Code -enforcement official under this Article 32
for the same type of position and level for which the individual holds a valid Code-enforcement 33
certificate. 34
(h) Architects and Engineers. – Notwithstanding subsection (b) of this section, the Board 35
may issue a private construction inspector certificate, without examination, to an architect 36
licensed under Chapter 83A of the General Statutes or an engineer licensed under Chapter 89C 37
of the General Statutes, in a type of position and at a level determined by the Board to be 38
consistent with the licensee 's education, training, and professional discipline. The Board may 39
require completion of a short course relating to the North Carolina State Building Code 40
regulations and private construction inspection administration before issuing a certificate under 41
this subsection. 42
(i) Rules. – The Board shall adopt rules establishing the qualifications, certificate levels, 43
experience requirements, examinations, short courses, and other standards necessary to 44
implement this section. 45
"§ 143-151.14B. Professional development program for private construction inspectors. 46
(a) Continuing Education. – The Board may establish professional development 47
requirements for private construction inspectors as a condition of the renewal or reactivation of 48
their certificates. The purposes of these professional development requirements are to assist 49
private construction inspectors in maintaining professional competence in their inspections and 50
to assure the health, safety, and welfare of the citizens of North Carolina. 51
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(b) Annual Requirement. – A private construction inspector subject to this section shall 1
present evidence to the Board at each certificate renewal after initial certification that, during the 2
12 months before the certificate expiration date, the private construction inspector has completed 3
the required number of credit hours in courses approved by the Board. Annual continuing 4
education hour requirements shall be determined by the Board but shall not be more than six 5
credit hours. 6
(c) Initial Professional Development. – The Board may require an individual who earns 7
a certificate under G.S. 143-151.14A to complete professional development courses, not to 8
exceed six hours in each technical area of certification, within one year after that individual is 9
first employed as a private construction inspector or engages in private construction inspection. 10
(d) Reactivation. – As a condition of reactivating a standard certificate, the Board may 11
require completion of professional development courses within one year after reemployment or 12
reengagement as a private construction inspector. 13
(e) Rules. – The Boa rd may adopt rules to implement this section, including rules 14
governing course content, course sponsors, course instructors, methods of instruction, 15
computation of course credit, carry -forward credit, hardship waivers, compliance procedures, 16
and sanctions for noncompliance." 17
SECTION 1.4.(a) G.S. 143-151.15 reads as rewritten: 18
"§ 143-151.15. Return of certificate to Board; reissuance by Board. 19
(a) A certificate issued by the Board under this Article is valid as long as the person 20
certified is employed by t he State of North Carolina or any political subdivision thereof as a 21
Code-enforcement official, or is employed by a federally recognized Indian Tribe to perform 22
inspections on tribal lands as a Code-enforcement official. any of the following: 23
(1) Employed by the State of North Carolina or any political subdivision thereof 24
as a Code-enforcement official. 25
(2) Employed by a federally recognized Indian Tribe to perform inspections on 26
tribal lands as a Code-enforcement official. 27
(3) Employed by, or under contract with, a private construction inspection firm. 28
(4) Self-employed as a private construction inspector. 29
(b) When the person certified leaves that employment the empl oyment, contractual 30
relationship, or self-employment described under subsection (a) of this section for any reason, he 31
that person shall return the certificate to the Board. Board unless the person remains otherwise 32
eligible under another subdivision of subsection (a) of this section. 33
(c) If the person subsequently obtains employment as a Code-enforcement official in any 34
governmental jurisdiction described above, becomes eligible under any subdivision of subsection 35
(a) of this section, the Board may reissue the certificate to him. certificate. 36
(d) The provisions of G.S. 143-151.16(b) relating to renewal fees and late renewals shall 37
apply, if appropriate. The provisions of G.S. 143-151.16(c) shall not apply. This section does not 38
affect the Board's powers under G.S. 143-151.17." 39
SECTION 1.4.(b) G.S. 143-151.16 reads as rewritten: 40
"§ 143-151.16. Certification fees; renewal of certificates; examination fees. 41
(a) The Board shall establish a schedule of fees to be paid by each applicant for 42
certification as a qualified Code -enforcement official. Such fee shall not exceed twenty dollars 43
($20.00) for each applicant.official or private construction inspector. The fee for certification as 44
a qualified Code -enforcement official shall not exceed twenty dollars ($20.00). The fee for 45
certification as a private construction inspector shall not exceed two hundred dollars ($200.00). 46
(b) A certificate, other than a probationary certificate, as a qualified Code -enforcement 47
official or private construction inspector issued pursuant to the provisions of this Article must be 48
renewed annually on or before the first day of July. Each application for renewal must be 49
accompanied by a renewal fee to be determined by the Board, but not to exceed ten dollars 50
($10.00). but the renewal fee for a certificate as a qualified Code -enforcement official shall not 51
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exceed ten dollars ($10.00), and the renewal fee for a certificate as a private construction 1
inspector shall not exceed fifty dollars ($50.00). The Board is authorized to charge an extra four 2
dollar ($4.00) late renewal fee for renewals made after the first day of July each year. 3
(c) Any person who fails to renew his certificate for a period of two consecutive years 4
may be required by the Board to take and pass the same examina tion as unlicensed applicants 5
before allowing such person to renew his certificate. 6
(d) The Board may contract with persons for the development and administration of the 7
examinations required by G.S. 143 -151.13(a), G.S. 143-151.13(a) and G.S. 143-151.14A, for 8
course development related to the examinations, for review of a particular applicant's 9
examination, and for other related services. The person with whom the Board contracts may 10
charge applicants a reasonable fee for the costs associated with the develo pment and 11
administration of the examinations, for course development related to the examinations, for 12
review of the applicant's examinations, and for other related services. The fee shall be agreed to 13
by the Board and the other contracting party. The amoun t of the fee under this subsection shall 14
not exceed one hundred seventy -five dollars ($175.00). Contracts for the development and 15
administration of the examinations, for course development related to the examinations, and for 16
review of examinations shall not be subject to Article 3, 3C, or 8 of Chapter 143 of the General 17
Statutes or to Article 15 of Chapter 143B of the General Statutes. However, the Board shall: (i) 18
submit all proposed contracts for supplies, materials, printing, equipment, and contractual 19
services that exceed one million dollars ($1,000,000) authorized by this subsection to the 20
Attorney General or the Attorney General's designee for review as provided in G.S. 114-8.3; and 21
(ii) include in all proposed contracts to be awarded by the Board under this subsection a standard 22
clause which provides that the State Auditor and internal auditors of the Board may audit the 23
records of the contractor during and after the term of the contract to verify accounts and data 24
affecting fees and performance. The Board shall not award a cost plus percentage of cost 25
agreement or contract for any purpose." 26
SECTION 1.4.(c) G.S. 143-151.17 reads as rewritten: 27
"§ 143-151.17. Grounds for disciplinary actions; investigation; administrative procedures. 28
(a) The Board ha s the power to suspend, revoke, demote to a lower level, or refuse to 29
grant a certificate issued under this Article to any person and to suspend, revoke, or refuse to 30
grant a registration issued under this Article to any person or private construction inspection firm 31
to whom or to which any of the following applies: 32
(1) Has been convicted of a felony against this State or the United States, or 33
convicted of a felony in another state that would also be a felony if it had been 34
committed in this State. 35
(2) Has obtained certification or registration through fraud, deceit, or perjury. 36
(3) Has knowingly aided or abetted any person practicing contrary to the 37
provisions of this Article or the North Carolina State Building Code or any 38
building codes adopted by a federally recognized Indian Tribe. 39
(4) Has defrauded the public or attempted to do so. 40
(5) Has affixed his or her the person's signature to a report of inspection or other 41
instrument of service if no inspection has been made by him or her the person 42
or under his or her the person's immediate and responsible direction. 43
(6) Has been guilty of willful misconduct, gross negligence, or gross 44
incompetence. 45
(7) Has violated subsection (a1) of this section. 46
(a1) A private construction inspector shall not inspect any p roperty under this Article in 47
which the inspector, the private construction inspection firm with which the inspector is 48
employed or affiliated, or a person with whom the inspector has a close familial, business, 49
employment, contractual, or other associational relationship has an ownership or direct financial 50
interest. A private construction inspector shall not inspect a project if the inspector or the private 51
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construction inspection firm has furnished labor, materials, appliances, plans, specifications, or 1
design services for the construction, alteration, repair, or maintenance of the project, other than 2
private construction inspection services authorized under this Article. For purposes of this 3
subsection, a "close familial relationship " means a spouse, par ent, child, brother, sister, 4
grandparent, or grandchild, including step, half, and in -law relationships. Compensation paid to 5
a private construction inspector or private construction inspection firm for inspection services 6
authorized under this Article does not, by itself, create a prohibited financial interest. 7
(b) The Board may investigate the actions of any qualified Code -enforcement official 8
official, private construction inspector, private construction inspection firm, registrant, or 9
applicant upon the verified complaint in writing of any person alleging a violation of subsection 10
(a) of this section. The Board may suspend, revoke, or demote to a lower level any certificate of 11
any qualified Code-enforcement official or private construction inspector, may suspend or revoke 12
any registration of any private construction inspector or private construction inspection firm, and 13
may refuse to grant a certificate or registration to any applicant, whom it finds to have been guilty 14
of one or more of the actions set o ut in subsection (a) of this section as grounds for disciplinary 15
action. 16
(c) A denial, suspension, revocation, or demotion to a lower level of a certificate 17
certificate, or a denial, suspension, or revocation of a registration, issued under this Article shall 18
be made in accordance with Chapter 150B of the General Statutes. 19
(d) The Board may deny an application for a certificate or registration for any of the 20
grounds that are described in subsection (a) of this section. Within 30 days after receipt of a 21
notification that an application for a certificate or registration has been denied, the applicant may 22
make a written request for a review by a committee designated by the chairman of the Board to 23
determine the reasonableness of the Board's action. The review shall be completed without undue 24
delay, and the applicant shall be notified promptly in writing as to the outcome of the review. 25
Within 30 days after service of the notification as to the outcome, the applicant may make a 26
written request for a hearing und er Article 3A of Chapter 150B of the General Statutes if the 27
applicant disagrees with the outcome. 28
(e) This section applies to Code-enforcement officials and applicants who are employed 29
or seek to be employed by a federally recognized Indian Tribe to perfo rm inspections on tribal 30
lands." 31
SECTION 1.4.(d) G.S. 143-151.18 reads as rewritten: 32
"§ 143-151.18. Violations; penalty; injunction. 33
On and after July 1, 1979, it shall be unlawful for any person to represent himself as a 34
qualified Code -enforcement offic ial who does not hold a currently valid certificate of 35
qualification issued by the Board. Further, it shall be unlawful for any person to practice Code 36
enforcement except as allowed by any currently valid certificate issued to that person by the 37
Board. A p erson shall not represent that the person is a qualified Code -enforcement official 38
unless the person holds a currently valid certificate of qualification issued by the Board. A person 39
shall not represent that the person is a private construction inspector unless the person holds a 40
currently valid certificate of qualification issued by the Board and a current registration under 41
G.S. 143-151.19A. A person shall not practice Code enforcement ex cept as allowed by a 42
currently valid certificate issued to that person by the Board. A person shall not conduct private 43
construction inspections except as authorized by a currently valid certificate issued to that person 44
by the Board and a current registration under G.S. 143-151.19A. A firm, partnership, corporation, 45
limited liability company, association, or other legal entity shall not represent itself as a private 46
construction inspection firm unless registered under G.S. 143-151.19A. Any person violating any 47
of the provisions of this Article shall be guilty of a Class 1 misdemeanor. The Board is authorized 48
to may apply to any judge of the superior court for an injunction in order to prevent any violation 49
or threatened violation of the provisions of this Article." 50
SECTION 1.4.(e) G.S. 143-151.19 reads as rewritten: 51
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"§ 143-151.19. Administration. 1
… 2
(c) The Board shall keep current a record of the names and addresses of all qualified 3
Code-enforcement officials and additional personal data officials, all currently certified and 4
registered private construction inspectors, and all currently registered private construction 5
inspection firms, and any other identifying information as the Board deems necessary. The Board 6
annually shall publish a list of all curre ntly certified Code -enforcement officials.officials, all 7
currently certified and registered private construction inspectors, and all currently registered 8
private construction inspection firms. 9
(d) Each certificate issued by the Board shall contain such identifying information as the 10
Board requires. 11
(e) The Board shall issue a duplicate certificate to practice as a qualified 12
Code-enforcement official or as a private construction inspector in place of one which that has 13
been lost, destroyed, or mutilated upon proper application and payment of a fee to be determined 14
by the Board." 15
SECTION 1.5. Article 9C of Chapter 143 of the General Statutes is amended by 16
adding a new section to read: 17
"§ 143-151.19A. Registration of private construction inspectors and private construction 18
inspection firms; inspection procedure plan. 19
(a) Individual registration required. – No individual shall engage in private construction 20
inspection unless that individual is first registered with the Board. 21
(b) Application by individual. – To be registered as a private construction inspector, an 22
individual shall submit an application for registration on a form provided by the Board that 23
includes all of the following: 24
(1) Proof of certification pursuant to this Article. 25
(2) An inspection procedure plan that includes all of the following: 26
a. A statement as to whether the individual intends to conduct private 27
construction inspections in all areas in which the individual holds a 28
certificate issued under G.S. 143-151.14A. 29
b. For any areas in which the individual is not certified under 30
G.S. 143-151.14A, a statement as to how the individual intends to 31
fulfill contractual obligations to conduct private construction 32
inspections in those areas. 33
c. A statement as to the individual 's experience level in each area in 34
which the individual holds a certificate issued under 35
G.S. 143-151.14A. 36
(3) Proof of errors and omissions insurance or other insurance coverage in an 37
amount and form established by the Board by rule. 38
(4) Any other information required by the Board. 39
(c) Firm registration required. – No firm, partnership, corporation, limited liab ility 40
company, association, or other legal entity shall offer or provide private construction inspection 41
services unless registered with the Board as a private construction inspection firm. 42
(d) Application by firm. – To be registered as a private construc tion inspection firm, an 43
applicant shall submit an application for registration on a form provided by the Board that 44
includes all of the following: 45
(1) The name, physical address, mailing address, email address, and telephone 46
number of the firm. 47
(2) The name, contact information, certificate type and level, and registration 48
number of at least one private construction inspector employed by or under 49
contract with the firm who is designated by the firm as responsible for the 50
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firm's compliance with this Artic le, rules adopted by the Board, and the 1
inspection procedure plan required by this section. 2
(3) A list of all private construction inspectors employed by or under contract with 3
the firm. 4
(4) An inspection procedure plan describing how the firm will ensure that each 5
inspection is performed by a private construction inspector certified at the 6
proper type and level. 7
(5) Proof of errors and omissions insurance or other insurance coverage in an 8
amount and form established by the Board by rule. 9
(6) Any other information required by the Board. 10
(e) Review and registration number. – The Board shall review each application and 11
inspection procedure plan required by this section and shall register and assign a registration 12
number to the applicant if the Board determ ines that the plan is adequate and the applicant 13
otherwise meets the requirements of this Article. If the Board denies an application for 14
registration or determines that the application is deficient, the Board shall notify the applicant in 15
writing with an explanation for the denial or deficiency and give the applicant a reasonable 16
opportunity to correct any deficiencies and resubmit the application. If the Board denies the 17
resubmitted application, the applicant shall be notified in writing and may seek revi ew as 18
provided in G.S. 143-151.17(d). 19
(f) Firm employees. – A private construction inspector employed by or under contract 20
with a registered private construction inspection firm may register under this section without 21
submitting an individual inspection p rocedure plan if the firm 's inspection procedure plan 22
includes that inspector. 23
(g) Public registry. – The Board shall keep current a record of the names, addresses, 24
certificate types and levels, and registration numbers of all registered private construction 25
inspectors and private construction inspection firms and shall maintain this record on the website 26
of the Office of the State Fire Marshal. The Board may combine the records maintained and 27
published under this subsection with those required in G.S. 143-151.19. 28
(h) Amended registration. – A private construction inspector or private constructi on 29
inspection firm may submit an amended registration or inspection procedure plan to the Board at 30
any time and shall submit an amended registration within 30 days after any material change in 31
the information required by this section, including any change in the private construction 32
inspector designated under subdivision (d)(2) of this section. 33
(i) Fees. – The Board shall establish a schedule of fees to be paid by each applicant for 34
registration under this section. The registration fee shall not exceed fifty dollars ($50.00) for each 35
individual applicant and two hundred dollars ($200.00) for each firm applicant." 36
37
PART II. PRIVATE CON STRUCTION INSPECTION S UNDER ARTICLE 11 O F 38
CHAPTER 160D 39
SECTION 2.1.(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
(1) Building or buildings. – Includes other structures. 44
(2) Governing board or board of commissioners. – Includes the Tribal Council of 45
a federally recognized Indian tribe. 46
(3) Local government. – Includes a federally recognized Indian tribe, and, as to 47
such tribe, includes lands held in trust for the tribe. 48
(3a) Private construction inspection. – As defined in G.S. 143-151.8(a). 49
(3b) Private construction inspection firm. – As defined in G.S. 143-151.8(a). 50
(3c) Private construction inspector. – As defined in G.S. 143-151.8(a). 51
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(4) Public officer. – Includes the officer or officers who are authorized by 1
regulations adopted hereunder to exercise the powers prescribed by the 2
regulations and by this Article." 3
SECTION 2.1.(b) G.S. 160D-1102 reads as rewritten: 4
"§ 160D-1102. Building code administration. 5
… 6
(b) In the event that any local government fails to provide ins pection services or ceases 7
to provide inspection services, the State Fire Marshal shall arrange for the provision of inspection 8
services, either through personnel employed by the Office of the State Fire Marshal or another 9
division of the Department of Ins urance or through an arrangement with other units of 10
government. In either event, the State Fire Marshal has and may exercise within the local 11
government's planning and development regulation jurisdiction all powers made available to the 12
governing board with respect to building inspection under this Article and Part 1 of Article 20 of 13
Chapter 160A of the General Statutes. Whenever the State Fire Marshal has intervened in this 14
manner, the local government may assume provision of inspection services only after giving the 15
State Fire Marshal two years' written notice of its intention to do so; however, the State Fire 16
Marshal may waive this requirement or permit assumption at an earlier date upon finding that an 17
earlier assumption will not unduly interfere with a rrangements made for the provision of those 18
services. 19
(b1) No local government shall adopt or enforce any ordinance, regulation, policy, or 20
practice that prohibits an owner, permit holder, contractor listed on a permit, or authorized agent 21
from using a private construction inspector or private construction inspection firm to conduct a 22
private construction inspection when authorized under this Article. When the State Fire Marshal 23
has intervened under subsection (b) of this section, the State Fire Marshal sha ll not prohibit an 24
owner, permit holder, contractor listed on a permit, or authorized agent from using a private 25
construction inspector or private construction inspection firm to conduct a private construction 26
inspection when authorized under this Article. 27
…." 28
SECTION 2.1.(c) Article 11 of Chapter 160D of the General Statutes is amended by 29
adding a new section to read: 30
"§ 160D-1103.1. Qualifications of private construction inspectors. 31
No private construction inspection shall be conducted except by a private construction 32
inspector certified and registered under Article 9C of Chapter 143 of the General Statutes and 33
qualified to conduct the type and level of inspection required for the building, structure, trade, 34
system, or work being inspected." 35
SECTION 2.1.(d) G.S. 160D-1104 reads as rewritten: 36
"§ 160D-1104. Duties and responsibilities 37
… 38
(b) The duties and responsibilities set forth in subsection (a) of this section include the 39
receipt of applications for permits and the issuance or denial of permits, the making of any 40
necessary inspections in a timely manner, except for inspections conducted by a private 41
construction inspector in accordance with this Article, the issuance or denial of certificates of 42
compliance, issuance, denial, or acceptance of cert ificates of compliance as provided in this 43
Article, the issuance of orders to correct violations, the bringing of judicial actions against actual 44
or threatened violations, the keeping of adequate records, and any other actions that may be 45
required in order adequately to enforce those laws. The governing board has the authority to enact 46
reasonable and appropriate provisions governing the enforcement of those laws. 47
…." 48
SECTION 2.1.(e) G.S. 160D-1105 reads as rewritten: 49
"§ 160D-1105. Other arrangements for inspections. 50
General Assembly Of North Carolina Session 2025
Senate Bill 1039-First Edition Page 11
(a) A local government may contract with an individual who is not a local government 1
employee but who holds one of the applicable certificates as provided in G.S. 160D-1103 or with 2
the employer of an individual who holds one of the applicable certificates as provided in 3
G.S. 160D-1103. 4
(b) Notwithstanding any other provision of this Article, a local government may contract 5
with a certified and registered private construction inspector or with a registered private 6
construction inspection firm to conduct inspections under this Article. 7
(c) An owner, permit holder, contractor listed on the permit, or authorized agent may 8
contract with a private construction inspector or private construction inspection firm to conduct 9
private construction inspectio ns of residential or commercial buildings and structures for 10
compliance with the North Carolina State Building Code as provided in G.S. 160D-1105.1. 11
(d) A Code -enforcement official certified and registered as a private construction 12
inspector under Article 9C of Chapter 143 of the General Statutes and employed by a local 13
government may not be prohibited, by employment contract or otherwise, from engaging in 14
private construction inspection outside the jurisdiction of the local government by which the 15
official is employed, provided that the official complies with the conflict-of-interest requirements 16
of this Article and Article 9C of Chapter 143 of the General Statutes. A Code -enforcement 17
official employed by a local government shall not conduct a private const ruction inspection 18
within the jurisdiction of the local government by which the official is employed." 19
SECTION 2.2. Article 11 of Chapter 160D of the General Statutes is amended by 20
adding new sections to read: 21
"§ 160D-1105.1. Private construction inspection authorized after delayed local inspection; 22
acceptance of inspection reports; exceptions. 23
(a) Definitions. – The following definitions apply in this section: 24
(1) Associated inspection. – A subsequent inspection relating to the same trade, 25
phase, unit, building, structure, system, or portion of a project affected by a 26
delayed inspection, including a reinspection necessary to verify correction of 27
Code noncompliance identified in the delayed inspection. 28
(2) Delayed inspection. – A requested inspection required by the North Carolina 29
State Building Code to which any of the following applies: 30
a. The local inspection department has not conducted the inspection 31
within 10 business days after the inspection was first requested and the 32
local inspection department and requestor have not agreed in writing 33
to a different inspection date and time. 34
b. The local inspection department has informed the requestor in writing 35
that it is unable to conduct the inspection within 10 business days after 36
the inspection was first requested and the local inspection department 37
and requestor have not agreed in writing to a different inspection date 38
and time. 39
c. The local inspection department and requestor have agreed in writing 40
to a different inspection date and time and the local insp ection 41
department has not conducted the inspection by that agreed-upon date 42
and time. 43
(3) Requestor. – An owner, permit holder, contractor listed on the permit, or 44
authorized agent who requests an inspection from a local inspection 45
department. 46
(b) Inspection Request. – A requestor may request an inspection from the local inspection 47
department when work is ready for any required inspection under the North Carolina State 48
Building Code. The request shall be made in writing, electronically, or through any permi t or 49
inspection scheduling system used by the local inspection department. The local inspection 50
department shall maintain a record of each inspection request. The record shall include the date 51
General Assembly Of North Carolina Session 2025
Page 12 Senate Bill 1039-First Edition
and time the request is received, the type of inspection reques ted, the address of the property to 1
be inspected, the permit number, the person or system to whom the request was directed, and the 2
name of the requestor if the requestor is someone other than the permit holder. Inspection requests 3
received after 12:00 noon shall be deemed to have been received on the next business day. 4
(c) Ten-Business-Day Local Inspection Period. – A local inspection department shall 5
conduct a requested inspection within 10 business days after the inspection is first requested. If 6
the local inspection department is unable to conduct the requested inspection within 10 business 7
days after the inspection is first requested, the local inspection department shall inform the 8
requestor in writing as soon as practicable and may agree with the requ estor in writing to a 9
different date and time for the inspection. The local inspection department shall commit any 10
agreed-upon inspection date and time to writing and provide a copy to the requestor. 11
(d) Election to Use Private Construction Inspector. – When a requested inspection is a 12
delayed inspection, the owner, permit holder, contractor listed on the permit, or authorized agent 13
may elect to contract with a private construction inspector or private construction inspection firm 14
to conduct the inspection. 15
(e) Scope of Election. – An election under subsection (d) of this section applies to the 16
delayed inspection and may also apply only to one or more of the following: 17
(1) An associated inspection related to the delayed inspection. 18
(2) Any subsequent delayed inspection for the same project. 19
(3) An associated inspection related to a subsequent delayed inspection. 20
(4) For a project with multiple units in one building, the inspections described in 21
subdivisions (1) through (3) of this subsection for the specifi c unit or units 22
affected by the delayed inspection or subsequent delayed inspection. 23
(f) Notice of Election. – Before a private construction inspector conducts an inspection 24
under this section, the owner, permit holder, contractor listed on the permit, or authorized agent 25
shall notify the local inspection department in writing of the election to use a private construction 26
inspector or private construction inspection firm. The notice shall be submitted on the form 27
developed pursuant to G.S. 160D-1105.4 and shall include all of the following: 28
(1) The name, address, telephone number, and email address of the owner, permit 29
holder, contractor listed on the permit, or authorized agent making the 30
election. 31
(2) The permit number and street address of the building or structure. 32
(3) The type of inspection requested. 33
(4) Documentation of the date and time of the initial inspection request to the 34
local inspection department. 35
(5) Documentation showing that the requested inspection is a delayed inspection 36
under subsection (a) of this section, including evidence that (i) the local 37
inspection department failed to conduct the inspection within 10 business days 38
after the inspection was first requested and no different inspection date and 39
time was agreed to in writing, (ii) the local inspection department stated in 40
writing that it was unable to conduct the inspection within 10 business days 41
after the inspection was first requested and the parties did not agree in writing 42
to a different inspection date and time, or (iii) the local inspection department 43
and requestor agreed in writing to a different inspection date and time and the 44
local inspection department failed to conduct the inspection by that 45
agreed-upon date and time. 46
(6) If an individual private construction inspector is us ed and no private 47
construction inspection firm is used, the name, contact information, certificate 48
type and level, and registration number of the private construction inspector. 49
(7) If a private construction inspection firm is used, the name, contact 50
information, and registration number of the firm and the name, contact 51
General Assembly Of North Carolina Session 2025
Senate Bill 1039-First Edition Page 13
information, certificate type and level, and registration number of at least one 1
private construction inspector employed by or under contract with the firm 2
who is designated by the firm as responsible for the firm's private construction 3
inspections assigned to the project. 4
(8) A statement identifying whether the election applies only to the delayed 5
inspection or also applies to any inspection described in subsection (e) of this 6
section. 7
(g) Amended Notice. – The following requirements apply to amended notices under this 8
section: 9
(1) If an election under this section identifies an individual private construction 10
inspector and no private construction inspection firm, an inspection under this 11
section shall not be conducted by a different private construction inspector 12
unless, before the inspection, an amended notice identifying the different 13
private construction inspector is submitted to the local inspection department. 14
The amended notice shall in clude the information required by subdivision 15
(f)(6) of this section. 16
(2) If an election under this section identifies a private construction inspection 17
firm, an inspection under this section may be conducted by a private 18
construction inspector employed by or under contract with that firm without 19
submission of an amended notice, provided that the inspector is qualified 20
under Article 9C of Chapter 143 of the General Statutes to conduct the type 21
and level of inspection required. 22
(3) If an election under this section identifies a private construction inspection 23
firm, an inspection under this section shall not be conducted by a different 24
private construction inspection firm unless, before the inspection, an amended 25
notice identifying the different private constr uction inspection firm is 26
submitted to the local inspection department. The amended notice shall 27
include the information required by subdivision (f)(7) of this section. 28
(4) If the private construction inspector designated under subdivision (f)(7) of this 29
section changes, an amended notice identifying the new designated private 30
construction inspector shall be submitted to the local inspection department 31
before the next inspection conducted by the private construction inspection 32
firm under this section. The amended notice shall include the information 33
required by subdivision (f)(7) of this section. 34
(5) If an election under this section applies to a subsequent delayed inspection 35
under subdivision (e)(2) of this section or to an associated inspection under 36
subdivision (e)(3) of this section, an amended notice shall be submitted to the 37
local inspection department before the inspection. The amended notice shall 38
document the date and time of the subsequent inspection request and the facts 39
showing that the subsequen t requested inspection is a delayed inspection 40
under subdivision (a)(2) of this section. The amended notice shall identify 41
whether the election applies to the subsequent delayed inspection, to an 42
associated inspection related to that subsequent delayed inspection, or to both, 43
and, if applicable, shall identify the specific unit or units to which the election 44
applies as authorized under subdivision (e)(4) of this section. 45
(6) The local inspection department shall maintain each amended notice 46
submitted under this subsection in the permit record. 47
(h) Acceptance of Private Inspection Report. – Notwithstanding any other provision of 48
this Article and except as provided in subsection ( l) of this section, a local government and the 49
State Fire Marshal, when the Offic e of the State Fire Marshal has intervened pursuant to 50
G.S. 160D-1102(b), shall accept a signed inspection report submitted in accordance with this 51
General Assembly Of North Carolina Session 2025
Page 14 Senate Bill 1039-First Edition
section. If the signed inspection report states that the inspected work complies with the North 1
Carolina State Building Code, the local government or State Fire Marshal, as applicable, shall 2
accept the report as satisfying the inspection requirement for the same Code item, without further 3
responsibility to inspect that Code item, provided all of the following apply: 4
(1) The private construction inspection is limited to inspection for compliance 5
with the North Carolina State Building Code. 6
(2) The private construction inspector conducting the inspection is qualified 7
under Article 9C of Chapter 143 of the General S tatutes to conduct that type 8
and level of private construction inspection at the time of the inspection. 9
(3) The private construction inspector who conducted the inspection is either (i) 10
identified in the notice submitted under subsection (f) of this secti on or an 11
amended notice submitted under subsection (g) of this section or (ii) employed 12
by or under contract with the private construction inspection firm identified in 13
the notice submitted under subsection (f) of this section or an amended notice 14
submitted under subsection (g) of this section. 15
(4) If the inspection is conducted on behalf of a private construction inspection 16
firm, the private construction inspector who conducted the inspection is 17
employed by or under contract with the firm identified in the notice submitted 18
under subsection (f) of this section or an amended notice submitted under 19
subsection (g) of this section, and the inspection report may be submitted by 20
the private construction inspector or by the private construction inspection 21
firm on the inspector's behalf. 22
(5) The private construction inspector and private construction inspection firm, if 23
applicable, have complied with the conflict -of-interest requirements of 24
G.S. 143-151.17(a1) and subsection (k) of this section. 25
(6) The owner, permit holder, contractor listed on the permit, or authorized agent 26
has provided the notice required by subsection (f) of this section and, if 27
applicable, any amended notice required by subsection (g) of this section. 28
(7) The owner, permit holder, contractor listed on the permit, or authorized agent 29
and the private construction inspector or private construction inspection firm 30
have executed the written contract required by subsection (i) of this section. 31
(8) The private construction inspector or private c onstruction inspection firm 32
provides the local government or the State Fire Marshal, as applicable, with a 33
copy of each signed inspection report. The signed inspection report shall be 34
provided by electronic or physical delivery, and its receipt shall be pr omptly 35
acknowledged by the local government or the State Fire Marshal, as 36
applicable, through reciprocal means. 37
(i) Written Contract. – An owner, permit holder, contractor listed on the permit, or 38
authorized agent that elects to use a private construction inspector or private construction 39
inspection firm under this section shall execute a written contract with the private construction 40
inspector or private construction inspection firm. The contract shall include, at a minimum, all 41
of the following: 42
(1) The specific delayed inspection, any subsequent delayed inspection to which 43
the election applies, any associated inspection, unit or units, building, 44
structure, system, trade, phase, or portion of the project to be inspected. 45
(2) The specific types of inspections to be conducted by the designated private 46
construction inspector or by other private construction inspectors employed 47
by or under contract with the designated private construction inspection firm. 48
(3) The specific types of inspections, if any, to be conducted by any other private 49
construction inspector, including an inspector employed by or under contract 50
with a private construction inspection firm identified in the notice submitted 51
General Assembly Of North Carolina Session 2025
Senate Bill 1039-First Edition Page 15
under subsection (f) of this section or an amended notice submi tted under 1
subsection (g) of this section. 2
(4) The reinspection process, including inspector compensation, when an 3
inspection demonstrates noncompliance with the North Carolina State 4
Building Code. 5
(5) The process, including inspector compensation, for add itional inspections 6
required due to unforeseen circumstances, changes to orders, changes to the 7
North Carolina State Building Code, or any other event or occurrence 8
necessitating additional inspections. 9
(6) The contact information for the private construct ion inspector or, if a private 10
construction inspection firm is used, the private construction inspector 11
designated under subdivision (f)(7) of this section. 12
(7) A statement that the private construction inspector or private construction 13
inspection firm will submit all required inspection reports to the local 14
inspection department and to the permit holder. 15
(8) A statement that the private construction inspector or private construction 16
inspection firm is responsible only for inspection of compliance with t he 17
North Carolina State Building Code within the scope of the contract and is not 18
responsible for inspection or approval of any local law or State law outside 19
that scope. 20
(j) Inspection Report. – The inspection report required by this section shall be on t he 21
form developed by the North Carolina Code Officials Qualification Board in the Office of the 22
State Fire Marshal under G.S. 160D-1105.4 and shall include all of the following: 23
(1) The printed name, title, signature, and date of the private construction 24
inspector who conducted the inspection. 25
(2) The certificate type and level and registration number of the private 26
construction inspector. 27
(3) If the inspection was conducted on behalf of a private construction inspection 28
firm, the name and registration number of the firm. 29
(4) The street address of the building or structure inspected. 30
(5) The permit number. 31
(6) The type and scope of inspection conducted. 32
(7) The date and time of the inspection. 33
(8) A statement whether the work inspected complies with the North Carolina 34
State Building Code. 35
(9) If the work inspected does not comply with the North Carolina State Building 36
Code, a description of each item of noncompliance identified by the private 37
construction inspector. 38
(k) Additional Conflict -of-Interest Lim its. – In addition to the requirements of 39
G.S. 143-151.17(a1), a private construction inspector or private construction inspection firm 40
shall not conduct an inspection under this section if the private construction inspector, the firm, 41
or a person affiliated with the inspector or firm is currently employed by, affiliated with, or under 42
common ownership or control with the owner, permit holder, contractor listed on the permit, or 43
authorized agent, other than through the contract for private construction insp ection services 44
authorized by this section. The Board may establish by rule a look -back period for prior 45
employment, affiliation, ownership, or control that disqualifies a private construction inspector 46
or private construction inspection firm from inspecting a project. 47
(l) Exceptions; Local Authority Preserved. – Nothing in this section shall be construed 48
to do any of the following: 49
(1) Limit the authority of a local government to conduct inspections necessary to 50
determine compliance with any local law appl icable to the construction of 51
General Assembly Of North Carolina Session 2025
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residential or commercial buildings or structures if that local law is not part of 1
the North Carolina State Building Code. 2
(2) Limit the authority of a local government under G.S. 160D-1105.2 to conduct 3
acceptance testing of, or to approve, a fire prevention system before issuing a 4
certificate of compliance or temporary certificate of occupancy. 5
(3) Limit the authority of a local government or the State Fire Marshal to issue a 6
stop work order, notice of violation, or other enforcement action when the 7
local government or State Fire Marshal has reasonable cause to believe that 8
construction is being performed in violation of the North Carolina State 9
Building Code or that an immediate danger to life, limb, or property exists. 10
(4) Authorize a private construction inspector to inspect or enforce Code 11
provisions pertaining to boilers or elevators the administration and 12
enforcement of which is allocated to the Department of Labor under 13
G.S. 143-139(c) or (d). 14
(5) Require a local government to accept an inspection report that is incomplete, 15
that is submitted by an inspector not qualified for the type and level of 16
inspection performed, that is outside the scope of the notice required by 17
subsection (f ) of this section, or that is submitted in violation of the 18
conflict-of-interest requirements of this section or Article 9C of Chapter 143 19
of the General Statutes. 20
(m) Liability of Local Government. – Upon acknowledging receipt of an inspection report 21
as required under subdivision (h)(8) of this section, the local government or State Fire Marshal, 22
its inspection departments, and its inspectors are not liable for a claim arising from or attributable 23
to the inspection for which the inspection report was submitted pursuant to this section. 24
(n) Existing State Remedy Preserved. – This section does not limit the ability of a permit 25
holder to request that the State Fire Marshal assign personnel to conduct an inspection under 26
G.S. 143-139.4. If a request for an inspection under G.S. 143-139.4 has been made and the 27
inspection has not been conducted when an election is made under this section for the same item 28
of work under the North Carolina State Building Code, the election under this s ection is not 29
effective until the permit holder or requestor under G.S. 143-139.4 withdraws the request under 30
G.S. 143-139.4 in writing or the State Fire Marshal declines to assign personnel to conduct the 31
inspection. A person shall not use both a report of an inspection performed under G.S. 143-139.4 32
and an inspection report submitted under this section to establish compliance of the same item of 33
work with the North Carolina State Building Code. 34
"§ 160D-1105.2. Fire prevention systems acceptance testing. 35
This Article does not limit the authority of a local government, before issuing a certificate of 36
compliance or temporary certificate of occupancy, to conduct acceptance testing of, or to 37
approve, a fire prevention system for which a private construction ins pector has issued an 38
inspection report or private certificate of State Building Code compliance under this Article. 39
"§ 160D-1105.3. Fee credit or refund; continuation of inspections. 40
(a) Fee Credit or Refund. – When an inspection for which a permit holder has paid a fee 41
to a local government is performed by a private construction inspector pursuant to 42
G.S. 160D-1105.1 because the inspection is authorized under that section, the local government 43
shall credit o r refund to the permit holder the fee collected by the local government for the 44
inspection, as provided in this section. The credit or refund shall be made at the conclusion of the 45
project. 46
(b) Amount. – The credit or refund required by subsection (a) of t his section shall be 47
based on the inspection fees already paid to the local government for inspections performed by a 48
private construction inspector under G.S. 160D-1105.1. A local government may retain an 49
administrative processing fee only if the fee is i dentified in the local government 's adopted fee 50
schedule and is attributable to receiving, reviewing for completeness, recording, and 51
General Assembly Of North Carolina Session 2025
Senate Bill 1039-First Edition Page 17
acknowledging a private construction inspection report. The credit or refund shall not exceed the 1
amount already paid to t he local government for the project, nor shall it exceed the amount the 2
local government collected for the inspection performed by the private construction inspector. 3
(c) Itemized Fees. – If the local government 's fee schedule separately identifies the fe e 4
for the inspection performed by the private construction inspector, the credit or refund shall be 5
based on that fee. If the fee schedule does not separately identify the fee for that inspection, the 6
local government shall calculate the portion of the per mit or inspection fee attributable to the 7
inspection performed by the private construction inspector based on the type and number of 8
inspections performed by the private construction inspector compared with the inspections 9
required for the project. 10
(d) Ceasing or Abandoning Private Inspection. – If the private construction inspector or 11
private construction inspection firm identified in a notice submitted under G.S. 160D-1105.1(f) 12
or an amended notice submitted under G.S. 160D-1105.1(g) ceases conducting, o r otherwise 13
abandons, the inspection work identified in that notice or amended notice, and no substitute 14
private construction inspector or private construction inspection firm has been identified in an 15
amended notice submitted under G.S. 160D-1105.1(g), the local government issuing the permit 16
shall, at the written request of the owner, permit holder, contractor listed on the permit, or 17
authorized agent, resume responsibility for inspections required under this Article prospectively 18
after the last private construction inspection report accepted under G.S. 160D-1105.1. The local 19
government may require submission of all accepted private construction inspection reports before 20
resuming inspections. 21
(e) Fees for Resumed Inspections. – A local government that resumes inspections under 22
subsection (d) of this section may charge the permit holder fees authorized by the local 23
government's adopted fee schedule for inspections performed by the local government after 24
resumption. 25
"§ 160D-1105.4. Uniform forms for private construction inspection. 26
(a) Definition. – For purposes of this section, "Board" means the North Carolina Code 27
Officials Qualification Board. 28
(b) Uniform Forms. – The Board shall develop uniform forms for private construction 29
inspections. The forms shall include all of the following: 30
(1) The notice of election to use a private construction inspector or private 31
construction inspection firm required under G.S. 160D-1105.1(f) and the 32
amended notice required under G.S. 160D-1105.1(g). 33
(2) Inspection reports required under G.S. 160D-1105.1(j), which may be specific 34
to each type of inspection being conducted. 35
(3) Private certificates of State Building Code compliance authorized under 36
G.S. 160D-1116. 37
(4) Any other form the Board determines necessary to implement private 38
construction inspections under this Article. 39
(c) Local Government Use of Forms. – A local government shall not require a different 40
form, modify a form developed under this section, or requ ire information to be included on a 41
form developed under this section other than the information required by the Board, except that 42
a local government may require a permit number, project number, parcel number, or other local 43
identifier necessary to match the form to the local government's permit record. 44
(d) Public Availability. – The Office of the State Fire Marshal shall make the forms 45
developed under this section publicly available on its website." 46
47
PART III. PERMIT REC ORDS, CERTIFICATES, FEES, AND RELA TED 48
CONFORMING CHANGES 49
SECTION 3.1. G.S. 160D-1109 reads as rewritten: 50
"§ 160D-1109. Failure to perform duties. 51
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(a) If any member of an inspection department shall willfully fail to perform the duties 1
required by law, or willfully shall improperly issue a building permit, or shall give a certificate 2
of compliance without first making the inspections required by law, or willfully shall improperly 3
give a certificate of compliance, the member shall be guilty of a Class 1 misdemeanor. 4
(b) A member of the inspection department shall not be in violation of this section when 5
the local government, its inspection department, or one of the inspectors accepted accepts a 6
signed written document of compliance with the North Carolina State Building Code from a 7
licensed architect or licensed engineer in accordance with G.S. 160D-1104(d). G.S. 160D-1106. 8
(c) A member of the inspection department shall not be in violation of this section when 9
the local government, its inspection department, or one of its inspectors acknowledges receipt of 10
or accepts either (i) an inspection report submitted under G.S. 160D-1105.1 by a private 11
construction inspector or private construction inspection firm or (ii) a private certificate of State 12
Building Code compliance submitted under G.S. 160D-1116(a1)." 13
SECTION 3.2. G.S. 160D-1110 is amended by adding new subsections to read: 14
"(c1) Notice of Private Construction Inspection After Delayed Local Inspection. – When 15
an owner, permit holder, contractor listed on the permit, or authorized agent elects to use a private 16
construction inspector or private construction inspection firm under G.S. 160D-1105.1, the notice 17
required by G.S. 160D-1105.1(f) and any amended notice required by G.S. 160D-1105.1(g) shall 18
be maintained by the inspection department in the permit record. 19
(c2) Permit Amendment Not Required for Private Inspection Election. – An election to 20
use a private construction inspector or private construction inspection firm under 21
G.S. 160D-1105.1 does not, by itself, require issuance of a new building permit or approval of a 22
permit amendment. The inspection department shall update th e permit record to identify the 23
private construction inspector or private construction inspection firm and the inspection or 24
inspections to which the election applies, as shown in the notice required by G.S. 160D-1105.1(f) 25
or any amended notice required by G.S. 160D-1105.1(g). 26
(c3) Local Inspections and Reviews Preserved. – A local government issuing a building 27
permit for a project for which one or more private construction inspections are conducted under 28
G.S. 160D-1105.1 shall continue to perform any inspection or review that the local government 29
is otherwise authorized or required by law to perform and that is not within the scope of the 30
private construction inspection." 31
SECTION 3.3. G.S. 160D-1112 reads as rewritten: 32
"§ 160D-1112. Changes in work. 33
After a building permit has been issued, no changes or deviations from the terms of the 34
application, plans and specifications, or the permit, except where changes or deviations are 35
clearly permissible under the North C arolina State Building Code, shall be made until specific 36
written approval of proposed changes or deviations has been obtained from the inspection 37
department. An election to use a private construction inspector or private construction inspection 38
firm under G.S. 160D-1105.1 is not, by itself, a change or deviation from the terms of the 39
application, plans and specifications, or permit under this section." 40
SECTION 3.4. G.S. 160D-1116 reads as rewritten: 41
"§ 160D -1116. Certificates of compliance; private certificates of State Bu ilding Code 42
compliance; temporary certificates of occupancy. 43
(a) Certificate of Compliance. – At the conclusion of all work done under a building 44
permit, the appropriate inspector shall make a final inspection, and, if the completed work 45
complies with all applicable State and local laws and with the terms of the permit, the inspector 46
shall issue a certificate of compliance. Except as provided by subsection (b) of this section, no 47
new building or part thereof may be occupied, no addition or enlargement of an existing building 48
may be occupied, and no existing building that has been altered or moved may be occupied, until 49
the inspection department has issued a certificate of compliance. For a project for which one or 50
more private constru ction inspections are conducted under G.S. 160D-1105.1, the inspection 51
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Senate Bill 1039-First Edition Page 19
department may rely on an inspection report submitted under G.S. 160D-1105.1 or a private 1
certificate of State Building Code compliance submitted under subsection (a1) of this section i n 2
determining whether to issue a certificate of compliance. 3
(a1) Private Certificate of State Building Code Compliance. – A private construction 4
inspector may issue a private certificate of compliance with the North Carolina State Building 5
Code only for the building, structure, unit, trade, system, phase, or portion of the project within 6
the scope of the private construction inspector 's certificate, registration, notice, and written 7
contract under G.S. 160D-1105.1. A private certificate issued under this su bsection is not a 8
certificate of compliance issued by the inspection department under subsection (a) of this section 9
and does not, by itself, authorize occupancy. A private certificate issued under this subsection 10
shall be on the form developed by the North Carolina Code Officials Qualification Board in the 11
Office of the State Fire Marshal under G.S. 160D-1105.4. 12
(a2) Submission and Acknowledgment. – A private construction inspector issuing a 13
private certificate of State Building Code compliance under subsection (a1) of this section shall 14
provide the inspection department with a copy of the private certificate by electronic mail, 15
first-class mail, physical delivery, or the local government 's permitting system. The inspection 16
department shall promptly acknowl edge receipt of the private certificate through the same 17
method, if practicable. 18
(b) Temporary Certificate of Occupancy. – A temporary certificate of occupancy may be 19
issued permitting occupancy for a stated period of time of either the entire building or of specified 20
portions of the building if the inspector finds that the building may safely be occupied prior to 21
before its final completion. A permit holder may request and be issued a temporary certificate of 22
occupancy if the conditions and requirements of the North Carolina State Building Code are met. 23
For a project for which one or more private construction inspections are c onducted under 24
G.S. 160D-1105.1, the inspection department may rely on an inspection report submitted under 25
G.S. 160D-1105.1 or a private certificate of State Building Code compliance submitted under 26
subsection (a1) of this section in determining whether t o issue a temporary certificate of 27
occupancy. 28
(b1) Private Inspection Not Sole Basis to Withhold Occupancy Authorization. – An 29
inspection department shall not withhold a certificate of compliance or temporary certificate of 30
occupancy solely because an insp ection report or private certificate of State Building Code 31
compliance has been submitted by a private construction inspector under this Article. 32
(b2) Local Reliance and Liability. – When an inspection department issues a certificate of 33
compliance or temporary certificate of occupancy for a project for which a private construction 34
inspector has submitted an inspection report under G.S. 160D-1105.1 or a private certificate of 35
State Building Code compliance under subsection (a1) of this section, the local government, the 36
inspection department, and the local government 's inspectors may rely on the inspection report 37
or private certificate as evidence that the inspected work complies with the North Carolina State 38
Building Code. The local government, the inspectio n department, and the local government 's 39
inspectors are not liable for a claim arising from or attributable to the private construction 40
inspector's inspection report or private certificate of State Building Code compliance. 41
(b3) Limits of Private Certifica te. – A private certificate of State Building Code 42
compliance issued by a private construction inspector does not constitute approval of compliance 43
with zoning, subdivision, stormwater, erosion and sedimentation control, driveway, utility, fire 44
prevention system acceptance testing, or any other local or State law that is not part of the North 45
Carolina State Building Code. 46
(c) Occupancy Without Certificate. – Any person who owns, leases, or controls a 47
building and occupies or allows the occupancy of the building or a part of the building before a 48
certificate of compliance or temporary certificate of occupancy has been issued pursuant to 49
subsection (a) or (b) of this section is guilty of a Class 1 misdemeanor." 50
SECTION 3.5. G.S. 160D-402 reads as rewritten: 51
General Assembly Of North Carolina Session 2025
Page 20 Senate Bill 1039-First Edition
"§ 160D-402. Administrative staff. 1
… 2
(d) Financial Support. – The local government may appropriate for the support of the 3
staff any funds that it deems necessary. It shall have power to fix reasonable fees for support, 4
administration, and implementatio n of programs authorized by this Chapter. All fees collected 5
by a building inspection department for the administration and enforcement of provisions set 6
forth in Article 11 of this Chapter shall be used to support the administration and operations of 7
the building inspection department and for no other purposes. When an inspection, for which the 8
permit holder has paid a fee to the local government, is performed by a marketplace pool 9
Code-enforcement official upon request of the State Fire Marshal under G.S. 143-151.12(9)a., 10
the local government shall promptly return to the permit holder the fee collected by the local 11
government for such inspection. When an inspection for which the permit holder has paid a fee 12
to the local government is performed by a private construction inspector pursuant to 13
G.S. 160D-1105.1, the local government shall provide the credit or refund required by 14
G.S. 160D-1105.3. This subsection applies to the following types of inspection: plumbing, 15
electrical systems, general building restrictions and regulations, heating and air-conditioning, and 16
the general construction of buildings." 17
SECTION 3.6. G.S. 143-139.4 reads as rewritten: 18
"§ 143-139.4. Certain building inspections by State. 19
… 20
(m) Relationship to Private Construction Inspections. – This section does not limit the 21
authority of an owner, permit holder, contractor listed on a permit, or authorized agent to elect to 22
use a private construction inspector or private construction inspection firm under 23
G.S. 160D-1105.1. If a request for an inspection under this section has been made and the 24
inspection has not been conducted when an election is made under G.S. 160D-1105.1 for the 25
same item of work under the North Carolina State Building Code, the election under 26
G.S. 160D-1105.1 is not effecti ve until the permit holder or requestor under this section 27
withdraws the request under this section in writing or the State Fire Marshal declines to assign 28
personnel to conduct the inspection. A person shall not use both a report of an inspection 29
performed under this section and an inspection report submitted under G.S. 160D-1105.1 to 30
establish compliance of the same item of work with the North Carolina State Building Code." 31
32
PART IV. IMPLEMENTATION AND EFFECTIVE DATE 33
SECTION 4.1.(a) Rulemaking. – To implement Parts I through III of this act, the 34
North Carolina Code Officials Qualification Board (Board) in the Office of the State Fire Marshal 35
may adopt temporary rules and shall begin rulemaking no later than 90 days after this act becomes 36
law. A rule adopted pursuant to this subsection may become effective before July 1, 2027, but 37
shall not authorize a private construction inspection under Article 11 of Chapter 160D of the 38
General Statutes before July 1, 2027. 39
SECTION 4.1.(b) Forms, Registration, and Registry. – Notwithstanding the delayed 40
effective date of Parts I through III of this act, the Board may, before July 1, 2027, develop the 41
forms required by G.S. 160D-1105.4, as enacted by this act, establish the registration process 42
required by G.S. 143-151.19A, as enacted by this act, establish and publish the registry required 43
by G.S. 143-151.19A, as enacted by this act, accept applications for certification and registration 44
as a private construction inspector or private construction in spection firm, and issue certificates 45
and registrations under Article 9C of Chapter 143 of the General Statutes. 46
SECTION 4.1.(c) Limitation on Pre-Effective Date Certificates and Registrations. – 47
A certificate or registration issued before July 1, 2027, pursuant to subsection (b) of this section 48
does not authorize a person or firm to conduct a private construction inspection under Article 11 49
of Chapter 160D of the General Statutes before July 1, 2027. 50
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SECTION 4.2. Effective Date. – Parts I through III of this act become effective July 1
1, 2027, and apply to inspection requests made on or after that date. The criminal penalties in 2
G.S. 143-151.18, as amended by this act, apply to offenses committed on or after that date. The 3
remainder of this act is effective when it becomes law. 4