Regulatory Reform Act of 2026.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 4
SENATE BILL 1047
Regulatory Reform Committee Substitute Adopted 6/10/26
Judiciary Committee Substitute Adopted 6/17/26
Finance Committee Substitute Adopted 6/18/26

Short Title: Regulatory Reform Act of 2026. (Public)
Sponsors:
Referred to:
May 4, 2026
*S1047-v-4*
A BILL TO BE ENTITLED 1
AN ACT TO PROVIDE FURTHER REGULATORY RELIEF TO THE CITIZENS OF NORTH 2
CAROLINA. 3
The General Assembly of North Carolina enacts: 4
5
GUARANTEED ENERGY SAVINGS CONTRACTS – REFORM AND 6
RECODIFICATION 7
SECTION 1.(a) Article 3B of Chapter 143 of the General Statutes is amended by 8
adding a new Part 3 to be entitled "Guaranteed Energy Savings Contracts." 9
SECTION 1.(b) The following provisions are recodified in Part 3 of Article 3B of 10
Chapter 143 of the General Statute s, as created by subsection (a) of this section, as set forth in 11
the table below: 12
Former Citation Recodified Citation 13
G.S. 143-64.17B G.S. 143-64.18B 14
G.S. 143-64.17D G.S. 143-64.18D 15
G.S. 143-64.17E G.S. 143-64.18E 16
G.S. 143-64.17F G.S. 143-64.18F 17
G.S. 143-64.17G G.S. 143-64.18J 18
G.S. 143-64.17H G.S. 143-64.18K 19
SECTION 1.(c) Part 3 of Article 3B of Chapter 143 of the General Statutes, as 20
created by subsection (a) of this section, as amended by subsection (b) of this section, reads as 21
rewritten: 22
"Part 3. Guaranteed Energy Savings Contracts. 23
"§ 143-64.18A. Solicitation of guaranteed energy savings contracts. 24
(a) RFQ Issuance. – Before entering into a guaranteed energy savings contract, a 25
governmental unit shall issue a request for qualifications. Notice of the request shall be published 26
at least 15 days in advance of the closing date for receipt of qualifications on a State-maintained 27
electronic procurement portal accessible to the public and, in the case of a local government al 28
unit, in at least one newspaper of general circulation in the geographic area for which the local 29
governmental unit is responsible or on the unit's publicly accessible website. 30
(b) Minimum Content of RFQ. – The request for qual ifications shall include, at a 31
minimum, each of the following: 32
(1) The name and address of the governmental unit and a contact person. 33
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 1047-Fourth Edition
(2) A general description of the facilities and scope of energy conservation 1
measures being considered. 2
(3) The evaluation criteria and relative criteria weighting to be applied in the 3
selection process. 4
(4) The closing date and time for receipt of qualifications. 5
(5) A statement reserving the right of the governmental unit to reject any or all 6
responses. 7
(c) Criteria for Selection of Provider. – The governmental unit shall select the qualified 8
provider that it determines to best meet the needs of the governmental unit by evaluating all of 9
the following and following the procedures set forth in this section: 10
(1) Demonstrated competence of the qualified provider. 11
(2) The qualified provider's past performance on energy savings projects. 12
(3) For State governmental units, the inclusion of a provision in a guaranteed 13
energy savings contract that requires the annual measurement and verification 14
review to be conducted by an impartial third party whose compensation is 15
included in the total cost of the proposed contract. 16
(4) Any other criteria stated in the request for qualifications. 17
(d) Initial Evaluation; Shortlist. – The governmental unit shall evaluate responses to the 18
request for qualifications and develop a shortlist of the most highly qualified respondents based 19
on the criteria set forth in subsection ( c) of this section. If only one response is received from a 20
qualified provider, the governmental unit may proceed with the evaluation and selection of that 21
provider without resolici tation, provided that the government al unit makes a written 22
determination that resolicitation is unlikely to increase competition. The determination shall state 23
the basis for that conclusion and shall be included in the public award file. For State governmental 24
units, if only one response is received, the State Energy Office shall concur in the determination 25
before the governmental unit may select the qualified provider. 26
(e) Ranking; Selection. – A qualified reviewer shall review the shortlisted respondents ' 27
qualifications and provide the governmental unit with a written evaluation addressing, at a 28
minimum, any material concerns regarding the respondents' ability to perform. The governmental 29
unit shall then rank the shortlisted respondents, select the highest-ranked qualified provider, and 30
negotiate the terms of a guaranteed energy savings contract. If negotiations with the 31
highest-ranked provider are unsuccessful, the governmental unit may proceed to the next-ranked 32
provider. 33
(f) Investment Grade Audit. – Prior to entering into a guaranteed energy savings contract 34
under this section, the qualified provider selected by the governmental unit shall conduct an 35
investment grade audit that includes a life cycle cost analysis of each energy conservation 36
measure in the final proposal. 37
(g) Qualified Reviewer; Final Evaluation. – Prior to a State governmental unit's award of 38
a guaranteed energy savings contract under this section, the qualified reviewer shall review the 39
qualified provider's final proposal and the terms of the negotiated contract and shall provide the 40
governmental unit with a written evaluation addressing whether the negotiated sc ope is 41
materially consistent with the qualifications and approach presented in the RFQ response, 42
whether the savings methodology remains technically sound, and whether any changes 43
introduced during the negotiation materially affect the projected savings or risk profile. 44
(h) State Energy Office Review. – The State Energy Office shall review the qualified 45
provider's proposal, cost-benefit analysis, and other relevant documents prior to the governmental 46
unit entering a guaranteed energy savings contract. For State governmental units, the State 47
Energy Office shall complete its review within 10 business days of receiving the proposal. The 48
State Energy Office shall advise the governmental unit on the suitability of the proposed 49
guaranteed energy savings contract. However, if the State Energy Office identifies in the proposal 50
any instances of noncompliance with the requirements of this Article, the State Energy Office 51
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Senate Bill 1047-Fourth Edition Page 3
shall notify the governmental unit of such noncompliance. A governmental unit may not enter 1
into the proposed guaranteed energy savings contract until the State Energy Office has 2
determined the proposal to be in compliance with this Article. 3
(i) Governmental Unit Authority Preserved. – Nothing in this section shall limit the 4
authority of the governmental unit as set forth in Article 3D of this Chapter. 5
"§ 143-64.18B. Guaranteed energy savings contracts. 6
(a) A governmental unit may enter into a guaranteed energy savings contract with a 7
qualified provider if all of the following apply: 8
(1) The term of the contract does not exceed 20 years from the date of the 9
installation and acceptance by the governmental unit of the energy 10
conservation measures provided for under the contract. 11
(2) The governmen tal unit finds that the energy savings resulting from the 12
performance of the contract will equal or exceed the total cost of the contract. 13
(3) The energy conservation measures to be installed under the contract are for an 14
existing building or utility syste m, or utility consuming device or equipment 15
when the utility cost is paid by the governmental unit. 16
(b) Before entering into a guaranteed energy savings contract, the governmental unit shall 17
provide published notice of the time and place or of the meeting at which it proposes to award 18
the contract, the names of the parties to the proposed contract, and the contract's purpose. The 19
notice must be published at least 15 days before the date of the proposed award or meeting. 20
(c) A qualified provider entering int o a guaranteed energy savings contract under this 21
Part shall provide security to the governmental unit in the form acceptable to the Office of the 22
State Treasurer and in an amount equal to one hundred percent (100%) of the guaranteed savings 23
for the term o f the guaranteed energy savings contract to assure the provider's faithful 24
performance. Any bonds required by this subsection shall be subject to the provisions of Article 25
3 of Chapter 44A of the General Statutes. If the savings resulting from a guaranteed energy 26
savings contract are not as great as projected under the contract and all required shortfall 27
payments to the governmental unit have not been made, the governmental unit may terminate the 28
contract without incurring any additional obligation to the qualified provider. 29
(d) As used in this section, "total cost" shall include, but not be limited to, costs of 30
construction, costs of financing, and costs of maintenance and training during the term of the 31
contract less the application of the utility company, State, or federal incentives, grants, or rebates. 32
rebates, or capital funding. "Total cost" does not include any obligations on termination of the 33
contract before its expiration, provided that those obligations are disclosed when the contract is 34
executed. 35
(e) A guaranteed energy savings contract may not require the governmental unit to 36
purchase a maintenance contract or other maintenance agreement from the qualified provider 37
who installs energy conservation measures under the contract if the unit of govern ment takes 38
appropriate action to budget for its own forces or another provider to maintain new systems 39
installed and existing systems affected by the guaranteed energy savings contract. 40
(f) In the case of a State governmental unit, a qualified provider sha ll, when feasible, 41
after the acceptance of the proposal of the qualified provider by the State governmental unit, 42
conduct an investment grade audit. During this investment grade audit, the qualified provider 43
shall perform in accordance with Part 1 of this Article a life cycle cost analysis of each energy 44
conservation measure in the final proposal. If the results of the audit are not within ten percent 45
(10%) of both the guaranteed savings contained in the proposal and the total proposal amount, 46
either the St ate governmental unit or the qualified provider may terminate the project without 47
incurring any additional obligation to the other party. However, if the State governmental unit 48
terminates the project after the audit is conducted and the results of the aud it are within ten 49
percent (10%) of both the guaranteed savings contained in the proposal and the total proposal 50
amount, the State governmental unit shall reimburse the qualified provider the reasonable cost 51
General Assembly Of North Carolina Session 2025
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incurred in conducting the audit, and the results of the audit shall become the property of the 1
State governmental unit. 2
(g) A qualified provider shall provide an annual reconciliation statement based upon the 3
results of the measurement and verification review. The statement shall disclose any shortfalls or 4
surplus between guaranteed energy and operational savings specified in the guaranteed energy 5
savings contract and actual, not stipulated, energy and operational savings incurred during a 6
given guarantee year. Any guaranteed energy and operational savin gs shall be determined by 7
using one of the measurement and verification methodologies listed in the United States 8
Department of Energy's Measurement and Verification Guidelines for Energy Savings 9
Performance Contracting, the International Performance Measurement and Verification Protocol 10
(IPMVP) maintained by the Efficiency Valuation Organization, or Guideline 14 -2002 of the 11
American Society of Heating, Refrigerating, and Air-Conditioning Engineers. If due to existing 12
data limitations or the nonconformance of specific project characteristics, none of the three 13
methodologies listed in this subsection is sufficient for measuring guaranteed savings, the 14
qualified provider shall develop an alternate method that is compatible with one of the three 15
methodologies and mutually agreeable to the governmental unit. The guarantee year shall consist 16
of a 12-month term commencing from the time that the energy conservation measures become 17
fully operational. A qualified provider shall pay the governmental unit or its assigne e any 18
shortfall in the guaranteed energy and operational savings after the total year savings have been 19
determined. In the case of a governmental unit, a surplus in any one year shall not be carried 20
forward or applied to a shortfall in any other year. 21
…." 22
23
GUARANTEED ENERGY SAVINGS CONTRACTS – CONFORMING CHANGES 24
SECTION 2.(a) The following statutes are amended by deleting the language "Part 25
2 of Article 3B" wherever it appears and substituting "Part 3 of Article 3B": G.S. 115C-47, 26
115D-20, 133-4.1, 143-129.4, and 143-135.37. 27
SECTION 2.(b) G.S. 160A-20 is amended by deleting the language "Part 2 of 28
Article 3B" wherever it appears and substituting "Article 3B". 29
SECTION 2.(c) G.S. 143-64.12 is amended by deleting the language "Part 2 of this 30
Article" wherever it appears and substituting "Part 3 of this Article". 31
SECTION 2.(d) The following statutes are amended by deleting the language 32
"G.S. 143-64.17A" wherever it appears and substituting "G.S. 143-64.18A": G.S. 142-61 and 33
G.S. 142-63. 34
SECTION 2.(e) G.S. 159-151 is amended by deleting the language 35
"G.S. 143-64.17A(a1)" wherever it appears and substituting "G.S. 143-64.18A(a1)". 36
SECTION 2.(f) G.S. 143-64.17K is amended by deleting the language 37
"G.S. 143-64.17A(c1)" wherever it appears and substituting "G.S. 143-64.18A(c1)". 38
SECTION 2.(g) G.S. 142-63 is amended by deleting the language 39
"G.S. 143-64.17B" wherever it appears and substituting "G.S. 143-64.18B". 40
SECTION 2.(h) G.S. 143-64.17L is amended by deleting the language 41
"G.S. 143-64.17B(d)" wherever it appears and substituting "G.S. 143-64.18B(d)". 42
SECTION 3.(a) G.S. 143-64.17 reads as rewritten: 43
"Part 2. Energy Saving Measures for Governmental Units. 44
"§ 143-64.17. Definitions. 45
As used in this Part:Part and Part 3 of this Article: 46
… 47
(6) "Request for proposals" means a negotiated procurement initiated by a 48
governmental unit by way of a published notice that includes the following: 49
a. The name and address of the governmental unit. 50
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Senate Bill 1047-Fourth Edition Page 5
b. The name, address, title, and telephone number of a contact person in 1
the governmental unit. 2
c. Notice indicating that the governmental unit is requesting qualified 3
providers to propose energy conservation measures through a 4
guaranteed energy savings contract. 5
d. The date, time, and place where proposals must be received. 6
e. The evaluation criteria for assessing the proposals. 7
f. A statement reserving the right of the governmental unit to reject any 8
or all the proposals. 9
g. Any other stipulations and clarifications the governmental unit may 10
require. 11
(7) "State governmental un it" means the State or a department, an agency, a 12
board, or a commission of the State, including the Board of Governors of The 13
University of North Carolina and its constituent institutions." 14
SECTION 3.(b) G.S. 143-64.17A is repealed. 15
SECTION 3.(c) The following statutes are amended by deleting the word "Part" 16
wherever it appears and substituting the word "Article": G.S. 143-64.17I, 143 -64.17J, 17
143-64.17K, and 143-64.17L. 18
SECTION 4. The Department of Environmental Quality shall adopt temporary rules 19
to implement Sections 1 through 3 of this act and shall adopt permanent rules to replace the 20
temporary rules. Temporary rules adopted in accordance with this section shall remain in effect 21
until permanent rules that replace the temporary rules become effective. 22
23
LIMIT DEPARTMENT OF ENVIRONMENTAL QUALITY FEE INCREASE 24
AUTHORITY AND LOWER FEES FOR COMMERCIAL UNDERGROUND STORAGE 25
TANKS 26
SECTION 5.(a) G.S. 143B-279.19 reads as rewritten: 27
"§ 143B-279.19. Quadriennial adjustment of certain fees and rates. 28
(a) Adjustment for Legislatively Mandated Salaries and Benefits. – Beginning July 1, 29
2025, and every four years thereafter, the Department shall adjust the fees and rates imposed 30
pursuant to the statutes listed in this subsection in accordance with the Consume r Price Index 31
computed by the Bureau of Labor Statistics during the prior two bienniums. bienniums, subject 32
to approval by the Environmental Management Commission. The adjustment for per transaction 33
rates shall be the lesser of the Consumer Price Index increase and the actual incremental cost to 34
the Department to operate the relevant program rounded to the nearest dollar ($1.00): 35
(1) G.S. 74-54.1. 36
(2) G.S. 90A-42. 37
(3) G.S. 90A-47.4. 38
(4) G.S. 113A-54.2. 39
(5) G.S. 113A-119.1. 40
(6) G.S. 130A-291.1. 41
(7) G.S. 130A-294.1. 42
(8) G.S. 130A-295.8. 43
(9) G.S. 130A-310.9. 44
(10) G.S. 130A-310.39. 45
(11) G.S. 130A-310.76. 46
(12) G.S. 130A-328(b). 47
(13) G.S. 130A-328(c). 48
(14) G.S. 143-215.3D. 49
(15) G.S. 143-215.10G. 50
(16) G.S. 143-215.28A 51
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(17) G.S. 143-215.94C. 1
(18) G.S. 143-215.119. 2
(19) G.S. 143-215.125A. 3
(20) G.S. 143B-279.13. 4
(b) Rulemaking Exemption. – The fee adjustments required by this section are not subject 5
to the requirements of Article 2A of Chapter 150B of the General Statutes. 6
(c) Consultation Consultation, Approval, and Publication. – Notwithstanding any 7
provision of G.S. 12-3.1 to the contrary, prior to implementing an adjustment pursuant to 8
subsection (a) of this section the Department must, no later than 90 days prior to the end of the 9
fiscal biennium, (i) consult with the Joint Legislative Oversight Committee on Agriculture and 10
Natural and Economic Resources, (ii) report the proposed fee adjustments to the chairs of the 11
Senate Appropriations Committee on Agriculture, Natural, and Economic Resources, the chairs 12
of the H ouse of Representatives Appropriations Committee on Agriculture and Natural and 13
Economic Resources, and the Fiscal Research Division, and (iii) publish notice of the fees that 14
will be in effect in the offices of the Department and on the Department's website. website, 15
pending approval by the Environmental Management Commission, and (iv) submit the proposed 16
fee adjustments to the Environmental Management Commission for approval. The 17
Environmental Management Commission shall make a determination on the propos ed fee 18
adjustments at the next regularly scheduled meeting after receiving the Department 's proposal. 19
After making the adjustment, the Department shall notify the Revisor of Statutes, who shall adjust 20
the amounts in statute. 21
(d) Effective Date; Grandfathering. – Any adjustment to fees or rates under this section 22
applicable to an application or request for a permit, certification, or other Department approval 23
submitted to the Department is only applicable to an application or request for a permit, 24
certification, or other Department approval submitted to the Department on or after the effective 25
date of the fee or rate adjustment. No adjustment to fees or rates under this section applies to an 26
application or request for a permit, certification, or other Departm ent approval submitted to the 27
Department prior to the effective date of the fee or rate adjustment." 28
SECTION 5.(b) G.S. 143-215.94C reads as rewritten: 29
"§ 143-215.94C. Commercial leaking petroleum underground storage tank cleanup fees. 30
(a) For purposes o f this subsection, each compartment of a commercial underground 31
storage tank that is designed to independently contain a petroleum product is a separate petroleum 32
commercial underground storage tank. The owner or operator of a commercial petroleum 33
underground storage tank shall pay to the Secretary for deposit into the Commercial Fund an 34
annual operating fee of four hundred ninety -eight dollars ($498.00) one hundred dollars 35
($100.00) for each petroleum commercial underground storage tank. 36
… 37
(e) An owner or operator of a commercial underground storage tank who fails to pay an 38
annual operating fee due under this section within 30 days of the date that the fee is due shall 39
pay, in addition to the fee, a late penalty of six dollars ($6.00) five dollars ($5.00) per day per 40
commercial underground storage tank, up to a maximum equal to the annual operating fee due. 41
The Department may waive a late penalty in whole or in part if: 42
(1) The late penalty was incurred because of the late payment or nonpayment o f 43
an annual operating fee by a previous owner or operator. 44
(2) The late penalty was incurred because of a billing error for which the 45
Department is responsible. 46
(3) Where the late penalty was incurred because the annual operating fee was not 47
paid by the owner or operator due to inadvertence or accident. 48
(4) Where payment of the late penalty will prevent the owner or operator from 49
complying with any substantive law, rule, or regulation applicable to 50
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underground storage tanks and intended to prevent or mitiga te discharges or 1
releases or to facilitate the early detection of discharges or releases. 2
…." 3
SECTION 5.(c) This section is effective October 1, 2026, and applies to any fees 4
due on or after that date. 5
6
AUTHORIZE JOB ORDER CONTRACTING FOR CONSTRUCTION OR REPAIR 7
PUBLIC CONTRACTS 8
SECTION 6.(a) G.S. 143-49 reads as rewritten: 9
"§ 143-49. Powers and duties of Secretary. 10
The Secretary of Administration has the power and authority, and it is the Secretary's duty, 11
subject to the provisions of this Article: 12
… 13
(17) To establish procedures to permit State government, or any of its departments, 14
institutions, or agencies, to join with any federal, State, or local government 15
agency, entity, or subdivision, or any nonprofit organization in this State or 16
another state in cooperative purchasing plans, projects, arrangements, or 17
agreements agreements, including for construction or repair work through job 18
order contracting pursuant to G.S. 143-128.1D, if the interest of the State 19
would be served thereby. The procedures shall not require a governmental 20
entity to secure informal quotes or any additional competition for construction 21
or repair work through job order contracting if the initial contract was 22
competitively bid as provided by G.S. 143-128.1D." 23
SECTION 6.(b) G.S. 143-128 reads as rewritten: 24
"§ 143-128. Requirements for certain building contracts. 25
… 26
(a1) Construction methods. – The State, a county, municipality, or other public body shall 27
award contracts to erect, construct, alter, or repair bui ldings pursuant to any of the following 28
methods: 29
(1) Separate-prime bidding. 30
(2) Single-prime bidding. 31
(3) Dual bidding pursuant to subsection (d1) of this section. 32
(4) Construction management at risk contracts pursuant to G.S. 143-128.1. 33
(5) Alternative contracting methods authorized pursuant to G.S. 143-135.26(9). 34
(6) Design-build contracts pursuant to G.S. 143-128.1A. 35
(7) Design-build bridging contracts pursuant to G.S. 143-128.1B. 36
(8) Public-private partnership construction contracts pursuant to 37
G.S. 143-128.1C. 38
(9) Job order contracting contracts pursuant to G.S. 143-128.1D. 39
…." 40
SECTION 6.(c) Article 8 of Chapter 143 of the General Statutes is amended by 41
adding a new section to read as follows: 42
"§ 143-128.1D. Job order contracting contracts. 43
(a) Definitions. – For purposes of this section, the following definitions shall apply: 44
(1) Adjustment factor. – The job order contractor's competitively bid adjustment 45
to the governmental entity's prices as published in the unit price catalog. 46
(2) Governmental entity. – Every officer, board, department, commission, or 47
commissions charged with responsibility of preparation of specifications or 48
awarding or entering into contracts for construction or repair work for the 49
State or for any county, municipality, politi cal subdivision of the State, or 50
other public body. 51
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(3) Indefinite quantity. – One or more of the construction or repair tasks listed in 1
the unit price catalog. 2
(4) Job order. – A firm, fixed priced, lump sum order issued by a governmental 3
entity to a job order contractor for a definite project scope of construction or 4
repair work as compiled from the unit price catalog to be performed pursuant 5
to a job order contract. 6
(5) Job order contract. – A competitively bid, fixed priced, indefinite quantity 7
procurement contract, as compiled from a unit price catalog of construction or 8
repair tasks that is awarded to the most qualified job order contractor bidder, 9
as described in subsection (b) of this section, by or under the authority of a 10
governmental entity. In a job order contract, the contractor agrees to an 11
indefinite quantity contract that provides for the use of job orders for 12
construction or repair projects. A job order contract does not constitute a 13
construction contract for the purposes of Article 3 of Chap ter 44A of the 14
General Statutes. 15
(6) Job order contract technical specifications. – The technical specifications 16
detailing the quality of materials and workmanship to be used by the job order 17
contractor in accomplishing the tasks listed in the unit price catalog. 18
(7) Job order contractor. – A contractor awarded a job order contract. 19
(8) Project. – The specific requirements and work to be accomplished by the job 20
order contractor in connection with an individual job order. 21
(9) Project scope of work. – The documents and related drawings, specifications, 22
and writings referenced therein which together set forth the specific 23
requirements and work to be accomplished by the job order contractor in 24
connection with an individual job order. 25
(10) Proposal. – The job ord er contractor prepared documents quoting those 26
construction or repair tasks listed in the unit price catalog that the job order 27
contractor requires to complete the project scope of work and the appropriate 28
quantities of task s. The pricing of each task shall be accomplished by 29
multiplying the task unit price by the proposed quantity of tasks and the 30
contractor's competitively bid adjustment factor. The proposal shall also 31
contain a schedule for the completion of a specific proj ect scope of work as 32
requested by the governmental entity. The proposal may also contain 33
approved drawings, work schedule, permits, or other documentation as the 34
governmental entity may require for a specific job order. 35
(11) Subcontractor. – Any person, firm, or corporation, other than the employees 36
of the job order contractor, who contracts to furnish labor or labor and 37
materials at the work site or in connection with a job order, whether directly 38
or indirectly, on behalf of the job order contractor. 39
(12) Unit price catalog. – A compilation of specific construction or repair tasks and 40
the unit prices to undertake each construction or repair task. The listed tasks 41
shall be based on generally accepted industry standards and information, 42
where available, for v arious items of work to be performed by the job order 43
contractor. The prices shall include the cost of materials, labor, and equipment 44
for performing the items of work. The prices shall not include overhead and 45
profit. All unit prices shall be developed using local prevailing wages. 46
(b) Contracting Procedures. – A governmental entity shall award a job order contract 47
subject to the following requirements: 48
(1) The governmental entity shall prepare a set of solicitation documents for job 49
order contracts. The solicitation documents shall include a unit price catalog 50
and preestablished unit prices, job order contract technical specifications, and 51
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any other information deemed necessary to describe adequately the needs of 1
the governmental entity. Any architect, engineer, or consultant retained by the 2
governmental entity to assist in the development of the job order contract 3
solicitation documents shall not assist the job order contractor in preparing the 4
contractor's bid. 5
(2) The governmental entity shall provide a guaranteed minimum amount of 6
construction or repair work of not less than thirty thousand dollars ($30,000) 7
to be awarded under the job order contract. Once the guaranteed minimum 8
amount has been met, the governmental entity may , for any reason, elect to 9
not award any additional amount of construction or repair work under the job 10
order contract. 11
(3) In response to a request for bids, a job order contractor sh all bid one or more 12
adjustment factors to the unit prices listed in the unit price catalog based on 13
the job order contract technical specifications. The combined average lowest 14
adjustment factor shall constitute the lowest bid. 15
(4) The governmental entity shall award the job order contract to the lowest 16
responsive, responsible bidder when awarding a single job order contract. 17
(5) The governmental entity may award multiple job order contracts through a 18
single request for bid as follows: 19
a. Job order contracts shall be awarded to the bidders that bid the lowest 20
adjustment factors as described in this subsection. 21
b. The governmental entity shall not award more than five job order 22
contracts under a single solicitation , provided no more than one job 23
order contrac t under a single solicitation is awarded to a single 24
contractor. 25
c. The governmental entity may issue job orders on a rotating basis or 26
other method, as determined by the governmental entity, provided that 27
method is included in the solicitation documents, but in no 28
circumstance shall the government entity require additional 29
competition among the contractors who have been awarded job order 30
contracts. 31
(6) The governmental entity may prequalify job order contractors as provided in 32
subsection (c) of this sectio n and may award to bidders as provided in 33
subdivisions (4) and (5) of this subsection. 34
(c) Prequalification. – A governmental entity soliciting job order contracts p ursuant to 35
this section shall comply with the prequalification requirements set forth by G.S. 143-135.8 that 36
apply to construction or repair work contracts. 37
(d) Limitations. – The following limitations apply to contracts awarded pursuant to this 38
section: 39
(1) The maximum total dollar amount that may be awarded under a single job 40
order contract shall not exceed twenty million dollars ($2 0,000,000) in the 41
first term of the job order contract and, if extended or renewed pursuant to 42
subdivision (2) of this subsecti on, a maximum of forty million dollars 43
($40,000,000) over the subsequent two terms of the job order contract. The 44
maximum total dollar amount for any individual job order shall not exceed 45
two million dollars ($2,000,000). 46
(2) Job order contracts may be exe cuted for an initial contract term of no more 47
than 12 months, with the option of extending or renewing the job order 48
contract for two 12-month periods. The term of the job order contract shall be 49
for the contract term or whenever the maximum value of the c ontract is 50
achieved, whichever is less. All extensions or renewals shall be priced as 51
General Assembly Of North Carolina Session 2025
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provided in the request for bids. The extension or renewal shall be mutually 1
agreed to by the governmental entity and job order contractor. 2
(3) The governmental entity may issue job orders to the job order contractor that 3
has been awarded the job order contract. The job order shall be based on a 4
project scope of work prepared by the governmental entity as well as a 5
proposal from the job order contractor who is awarded the job order contract. 6
No single job order may exceed the available aggregate contract value. 7
(4) The governmental entity shall not use job order contracting for procuring or 8
receiving architectural, engineering, or survey services, but shall procure 9
those services pursuant to Article 3D of Chapter 143 of the General Statutes. 10
(5) The amounts specified in subdivisions (1) and (2) of this subsection shall be 11
adjusted on January 1, 20 27, and each January 1 thereafter, to reflect the 12
percentage change in the North Carolina Consumer Price Index, as determined 13
and published by the Department of Administration. 14
(e) Performance and Payment Bonds. – The job order contractor shall provide a payment 15
and performance bond to the governmental entity for job orders in accordance with the provisions 16
of Article 3 of Chapter 44A of the General Statutes when applicable. 17
(f) Historically Underutilized Businesses. – A governmental entity shall make a 18
good-faith effort to comply with the provisions of G.S. 143-128.2 and G.S. 143-128.4, if 19
applicable for job orders. Notwithstanding the provisions of G.S. 143-128.2 and G.S. 143-128.4, 20
the goal for participation by minority businesses shall be based on the entire job order contract." 21
SECTION 6.(d) G.S. 143-129 reads as rewritten: 22
"§ 143-129. Procedure for letting of public contracts. 23
… 24
(e) Exceptions. – The requirements of this Article do not apply to: 25
… 26
(3) Purchases Construction or repair work, including construction or repair work 27
through job order contracting pursuant to G.S. 143-128.1D, or purchases of 28
apparatus, supplies, materials, or equipment made through a competitive 29
bidding group purchasing program, which is a formally organized program 30
that offers competitively obtained purchasing services at discount prices to 31
two or more public agencies. 32
… 33
(9) Purchases Construction or repair work, including construction or repair work 34
through job order contracting pursuant to G.S. 143-128.1D, or purchases of 35
apparatus, supplies, materials, or equipment from contracts established by the 36
State or any agency of the State, if the contractor is willing to extend to a 37
political subdivision of the State the same or more favorable prices, terms, and 38
conditions as established in the State contract. 39
…." 40
41
AUTHORITY FOR MOBILE HOME PARK AND TINY HOME COMMUNITY 42
LANDLORDS TO BILL TENANTS FOR MASTER-METERED WATER SERVICE 43
SECTION 7. G.S. 62-110(g) reads as rewritten: 44
"(g) In addition to the authority to issue a certificate of public convenience and necessity 45
and establish rates otherwise granted in this Chapter, for the purpose of encouraging water 46
conservation, the Commission may, consistent with the public interest, adopt procedures that 47
allow (i) a lessor of any leased residential premises, as that term is defined under G.S. 42-59(3), 48
to charge fo r the costs of providing water or sewer service to persons who occupy the leased 49
premises, (ii) an owners' association, as that term is defined under G.S. 47F-1-103(3), to charge 50
for the costs of providing water or sewer service to persons who occupy townh omes within a 51
General Assembly Of North Carolina Session 2025
Senate Bill 1047-Fourth Edition Page 11
planned community, as that term is defined under G.S. 47F-1-103(23), and (iii) a unit owners' 1
association, as that term is defined under G.S. 47C-1-103(3), to charge for the costs of providing 2
water or sewer service to persons who occupy a co ndominium, as that term is defined under 3
G.S. 47C-1-103(7). For purposes of this subsection, the term "townhome" means a single-family 4
dwelling unit constructed in a group of three or more attached units. The following provisions 5
shall apply: 6
(1) Except as provided in subdivisions (1a), (1b), and (1c) (1c), and (1d) of this 7
subsection, all charges for water or sewer service shall be based on the user's 8
metered consumption of water, which shall be determined by metered 9
measurement of all water consumed. The rate charged by the lessor, owners' 10
association, or unit owners' association, as applicable, shall not exceed the unit 11
consumption rate charged by the supplier of the service. 12
(1a) If the leased premises are contiguous dwelling units built prior to 1989, a nd 13
the lessor determines that the measurement of the lessee's total water usage is 14
impractical or not economical, the lessor may allocate the cost for water and 15
sewer service to the lessee using equipment that measures the lessee's hot 16
water usage. In that case, each lessee shall be billed a percentage of the lessor's 17
water and sewer costs for water usage in the dwelling units based upon the hot 18
water used in the lessee's dwelling unit. The percentage of total water usage 19
allocated for each dwelling unit sh all be equal to that dwelling unit's 20
individually submetered hot water usage divided by all submetered hot water 21
usage in all dwelling units. The following conditions apply to billing for water 22
and sewer service under this subdivision: 23
a. A lessor shall not utilize a ratio utility billing system or other allocation 24
billing system that does not rely on individually submetered hot water 25
usage to determine the allocation of water and sewer costs. 26
b. The lessor shall not include in a lessee's bill the cost of water and sewer 27
service used in common areas or water loss due to leaks in the lessor's 28
water mains. A lessor shall not bill or attempt to collect for excess 29
water usage resulting from a plumbing malfunction or other condition 30
that is not known to the lessee or that has been reported to the lessor. 31
c. All equipment used to measure water usage shall comply with 32
guidelines promulgated by the American Water Works Association. 33
d. The lessor shall maintain records for a minimum of 12 months that 34
demonstrate how e ach lessee's allocated costs were calculated for 35
water and sewer service. Upon advanced written notice to the lessor, a 36
lessee may inspect the records during reasonable business hours. 37
e. Bills for water and sewer service sent by the lessor to the lessee s hall 38
contain all the following information: 39
1. The amount of water and sewer services allocated to the lessee 40
during the billing period. 41
2. The method used to determine the amount of water and sewer 42
services allocated to the lessee. 43
3. Beginning and ending dates for the billing period. 44
4. The past-due date, which shall not be less than 25 days after 45
the bill is mailed. 46
5. A local or toll -free telephone number and address that the 47
lessee can use to obtain more information about the bill. 48
(1b) Notwithstanding the provisions of subdivisions (1), (1a), and (1c) of this 49
subsection, if the Commission approves a flat rate to be charged by a water or 50
sewer utility for the provision of water or sewer services to contiguous 51
General Assembly Of North Carolina Session 2025
Page 12 Senate Bill 1047-Fourth Edition
dwelling units, the lessor, owners' association, or unit owners' association, as 1
applicable, may pass through and charge the tenants or occupants of the 2
contiguous dwelling units the same flat rate for water or sewer services, rather 3
than a rate based on metered consumption, and an administrative fe e as 4
authorized in subdivision (2) of this subsection. Bills for water and sewer 5
service sent by the lessor, owners' association, or unit owners' association, as 6
applicable, to the lessee or occupant shall contain all the information required 7
by sub -sub-subdivisions e.2. through e.5. of subdivision (1a) of this 8
subsection. 9
(1c) The lessor may equally divide the amount of the water and sewer bill for a 10
unit among all the lessees in the unit and may send one bill to each lessee. The 11
amount charged shall be prorated when a lessee has not leased the unit for the 12
same number of days as the other lessees in the unit during the billing period. 13
Each bill may include an administrative fee up to the amount of the 14
then-current administrative fee authorized by the Commi ssion in Rule 18 -6 15
for water service and, when applicable, a late fee in an amount determined by 16
the Commission. The lessor shall not charge the cost of water and sewer from 17
any other unit or common area in a lessee's bill sent pursuant to this 18
subdivision. 19
(1d) Notwithstanding the provisions of subdivisions (1), (1a), and (1c) of this 20
subsection, if the leased premises is a mobile home located within a mobile 21
home park, or a tiny home located within a tiny home community , and the 22
lessor determines that the measurement of the lessee 's total water usage is 23
impractical or not economical, the lessor may allocate the cost for water and 24
sewer service to the lessee using either of the following: 25
a. Equipment that measures the lessee 's hot water usage. In that case, 26
each lessee shall be billed a percentage of the lessor's water and sewer 27
costs for water usage in the mobile home park or tiny home 28
community, as applicable, based upon the hot water used in the lessee's 29
mobile home or tiny home . The percentage of to tal water usage 30
allocated for each mobile home or tiny home, as applicable, shall be 31
equal to that mobile home's or tiny home's individually submetered hot 32
water usage divided by all submetered hot water usage in all mobile 33
homes located within the mobile home park or tiny homes within the 34
tiny home community, as applicable. 35
b. A ratio utility billing system or other allocation billing system that 36
does not rely on individually submetered hot water usage to determine 37
the allocation of water and sewer costs. 38
The conditions set forth in sub-subdivisions b. through e. of subdivision (1a) 39
of this subsection shall apply to billing for water and sewer service under this 40
subdivision. For purposes of this subsection, the term "tiny home" means a 41
single-family detached dwelling unit that is 400 square feet or less in floor 42
area, specifically excluding lofts. 43
…." 44
45
MINING PERMIT MODIFICATIONS 46
SECTION 8.(a) G.S. 74-49 reads as rewritten: 47
"§ 74-49. Definitions. 48
Wherever used or referred to in this Article, unless a different meaning clearly appears from 49
the context: 50
… 51
General Assembly Of North Carolina Session 2025
Senate Bill 1047-Fourth Edition Page 13
(7) "Mining" means any of the following: (i) the breaking of the surface soil in 1
order to facilitate or accomplish the extraction or removal of minerals, ores, 2
or other solid matter; (ii) any activity o r process constituting all or part of a 3
process for the extraction or removal of minerals, ores, soils, and other solid 4
matter from their original location; or (iii) the preparation, washing, cleaning, 5
or other treatment of minerals, ores, or other solid m atter so as to make them 6
suitable for commercial, industrial, or construction use. 7
"Mining" does not include: 8
… 9
h. Activities undertaken at any time within the mine permit boundaries 10
for the production and harvesting of timber and timber products and 11
conducted in accordance with standards defined by the Forest Practice 12
Guidelines Related to Water Quality, as adopted by the Department of 13
Agriculture and Consumer Services. 14
…." 15
SECTION 8.(b) G.S. 74-50 reads as rewritten: 16
"§ 74-50. Permits – General. 17
… 18
(b2) The notice shall inform the owners of record and chief administrative officers of the 19
opportunity to submit written comments to the Department regarding the proposed new or 20
modified mining operation that adds land to the permitted area and the opportunity to request a 21
public hearing regarding the proposed new or modified mining operation. Requests for public 22
hearing shall be made within 30 days of issuance of the notice.notice or receipt of the application 23
by the Department, whichever is later. 24
… 25
(c) No permit shall become effective until the operator has deposited with the Department 26
an acceptable performance bond or other security pursuant to G.S. 74-54. 27
(1) If at any time the bond or other security, or any part thereof, shall lapse for 28
any reason other than a release by the Department, and the lapsed bond or 29
security is not replaced by the operator within 30 days after notice of the lapse, 30
the permit to which the lapsed bond or security pertains shall be automatically 31
revoked. 32
(2) If the Department is no ticed of pending cancellation of a bond by the surety 33
pursuant to G.S. 74-54(a) and the bond is not replaced within 45 days of the 34
Department's receipt of the notice, the permit to which the bond or security 35
pertains shall be automatically revoked. 36
… 37
(e) Public comment periods and time frames for conducting public hearings as 38
established by this Article shall not be extended nor altered by the Department. When the 39
Department holds a public hearing pursuant to G.S. 74-51(c), the 60-day technical review period 40
established in G.S. 74-51(b1) shall not conclude until either 30 days following the public hearing 41
or the original 60-day technical review period, whichever is later." 42
SECTION 8.(c) G.S. 74-51 reads as rewritten: 43
"§ 74-51. Permits – Application, granting, conditions. 44
… 45
(b) Before deciding whether to grant a new permit, the Department shall circulate copies 46
of a notice of application for review and comment as it deems advisable. The Department shall 47
grant or deny the permit requested as expeditiously as possible, but in no event later than 60 days 48
after the application form and any relevant and material supplemental information reasonably 49
required shall have been filed with the Department, or if a public hearing is held, within 30 days 50
following the hearing and the filing of any relevant and material supplemental information 51
General Assembly Of North Carolina Session 2025
Page 14 Senate Bill 1047-Fourth Edition
reasonably required by the Department. possible. Priority consideration shall be given to 1
applicants who submit evidence that the mining proposed will be for the purpose of suppl ying 2
materials to the Board of Transportation. In accordance with G.S. 143B-279.18, except to the 3
extent required by federal or State law, the Department shall not refuse to accept an application 4
for, nor refuse to issue, a new, modified, or transferred mining permit based solely on the failure 5
of an applicant to obtain another permit, authorization, or certification required for the same 6
project. For purposes of this section, failure to obtain a permit, authorization, or certification shall 7
not include denial of the permit, authorization, or certification by the Department based on the 8
standards for approval of the permit, authorization, or certification provided by law. 9
(b1) The Department shall act on a permit application as quickly as possible. The 10
Department may conduct any inquiry or investigation it considers necessary before acting on an 11
application and may require an applicant to submit plans, specifications, and other information 12
the Department considers necessary to evaluate the application. If the Department fails to act on 13
an application for a new, modified , or transferred mining permit as specified in this subsection 14
after the applicant submits all information required by the Department, the application shall be 15
deemed approved without modification. The following provisions apply: 16
(1) The Department shall perform an administrative review of an application and 17
of a resubmittal of an application determined to be incomplete under 18
subdivision (3) of this subsection within 10 working days of recei pt to 19
determine if the information is administratively complete. If complete, the 20
Department shall issue a receipt letter or electronic response stating that the 21
application is complete and that a 60-calendar day technical review period has 22
started as of t he original date the application was received. If required items 23
or information is not included, the application shall be deemed incomplete, 24
and the Department shall issue an application receipt letter or electronic 25
response identifying the information req uired to complete the application 26
package before the technical review begins. When the required information is 27
received, the Department shall then issue a receipt letter or electronic response 28
specifying that it is complete and that the 60 -calendar day technical review 29
period has started as of the date of receipt of all required information. The 30
Department shall develop an application package checklist identifying the 31
items and information required for an application to be considered 32
administratively complete. 33
(2) If, during the 60 -calendar day technical review period, the Department 34
determines that the application meets the standards for issuance of a new, 35
modified, or transferred mining permit, it shall approve the application. 36
(3) If, during the 60 -calendar day technical review period, the Department 37
determines that additional information is required to continue processing the 38
application, the Department and the applicant shall comply with the following: 39
a. The Department shall issue a letter or electronic response with a list of 40
the additional information required to issue the permit. 41
b. The applicant shall have up to 180 calendar days from the date the 42
letter or electronic response is sent to submit the additional 43
information to the Department. 44
c. If the applicant is unable to provide the required information within 45
the time frame specified in sub-subdivision b. of this subdivision, the 46
applicant may request, with good cause, that a one -year extension be 47
granted by the Department; if the one -year extension granted by the 48
Department is insufficient, the applicant may then request another 49
one-year extension granted by the Mining Commission. 50
General Assembly Of North Carolina Session 2025
Senate Bill 1047-Fourth Edition Page 15
d. If the applicant fails to provide the required information within 180 1
calendar days or within any extensions granted by the Department and 2
Commission pursuant to sub -subdivision c. of this subdivision , the 3
Department shall return the application to the applicant, the 4
application is deemed denied, and the applicant must resubmit a 5
complete application with a new application fee before the project may 6
be reviewed. 7
e. Upon receipt of the required information from the applicant, the 8
Department shall have 45 calendar days to complete the subsequent 9
technical review and issue the permit, issue the permit with 10
modifications, deny the permit, or issue a letter or electronic response 11
with a list of additional information required to continue processing 12
the application, and the review process will proceed in accordance 13
with sub-subdivision b. or c. of this subdivision, as applicable. 14
f. After issuing a letter or electronic response requesting additional 15
information under this subdivision, the Department shall not 16
subsequently request additional information that was not previously 17
identified as missing or required in that additional inform ation letter 18
or electronic response. The Department may, however, request 19
additional information if required for the technical review based on 20
any new information, changed circumstances, or changed designs 21
provided by the applicant in a response provided p ursuant to 22
sub-subdivision b. or c. of this subdivision, as applicable. 23
g. Where the Department identifies information that should have been 24
requested, the Department may address this information by including 25
conditions in or modifications to the permit upon issuance but shall 26
not deny the permit because of the missing information. This 27
prohibition on permit denial shall not apply where an application was 28
deemed denied under sub-subdivision d. of this subdivision. 29
… 30
(d) The Department may deny the permit upon finding: 31
… 32
(7) That the applicant or any parent, subsidiary, or other affiliate of the applicant 33
or parent has not been in substantial compliance with this Article, rules 34
adopted under this Article, or other laws or rules of this State for the protection 35
of the environment or has not corrected all violations that the applicant or any 36
parent, subsidiary, or other affiliate of the applicant or parent may have 37
committed under this Article or rules adopted under this Article and that 38
resulted in: 39
a. Revocation of a permit, 40
b. Forfeiture of part or all of a bond or other security, 41
c. Conviction of a misdemeanor under G.S. 74-64, 42
d. Any other court order issued under G.S. 74-64, or 43
e. Final assessment of a civil penalty under G.S. 74-64, [or] 44
f. Failure to pay the application processing fee required under 45
G.S. 74-54.1. 46
(8) That the applicant failed to pay the application processing fee required by 47
G.S. 74-54.1 within 30 days of receipt of the application by the Department. 48
… 49
(h) Upon approval of an application, the Department shall set the amount of the 50
performance bond or other security that is to be required pursuant to G.S. 74-54. The operator 51
General Assembly Of North Carolina Session 2025
Page 16 Senate Bill 1047-Fourth Edition
shall have 60 days after the Department mails a notice of the required bond to the operator in 1
which to deposit the re quired bond or security with the Department. Department or the permit 2
application will be automatically denied. The operating permit shall not be issued until receipt of 3
this deposit. 4
…." 5
SECTION 8.(d) This section becomes effective October 1, 2026, and a pplies to 6
permit applications filed on or after that date. 7
8
EXEMPT CERTAIN COMPOST FACILITIES FROM FINANCIAL ASSURANCE 9
REQUIREMENTS 10
SECTION 8.5. G.S. 130A-295.2 is amended by adding a new subsection to read: 11
"(k) An owner or operator of a permitted Small or Large Type 1, Type 2, or Type 3 12
compost facility shall be exempt from financial assurance requirements under this section." 13
14
ALIGN NORTH CAROLINA LEAD -DUST HAZARD STANDARDS WITH FEDERAL 15
STANDARDS ADOPTED BY THE U.S. ENVIRONMENTAL PROTECTION AGENCY 16
SECTION 9.(a) G.S. 130A-131.7 reads as rewritten: 17
"§ 130A-131.7. Definitions. 18
The following definitions apply in this Part: 19
… 20
(7) "Lead poisoning hazard" means any of the following: 21
… 22
c. Any concentration of lead dust that is equal to or greater than 10 23
micrograms 5 micrograms per square foot on floors, 100 micrograms 24
40 micrograms per square foot on interior windowsills, or 250 25
micrograms per square foot on vinyl miniblinds, bathtubs, kitchen 26
sinks, or lavatories. 27
d. Any lead-based paint or other substance that contains lead on a friction 28
or impact surface that is subject to abrasion, rubbing, binding, or 29
damage by repeated contact and where the lead dust concentrations on 30
the nearest horizontal surface underneath the friction or impact surface 31
are equal to or greater than 40 micrograms 5 micrograms per square 32
foot on floors or 250 micrograms 40 micrograms per square foot on 33
interior windowsills. 34
…." 35
SECTION 9.(b) G.S. 130A-131.9C(i) reads as rewritten: 36
"(i) All remediation plans shall require that the lead poisoning hazards be reduced to the 37
following levels: 38
(1) Less than 10 micrograms 5 micrograms per square foot for lead dust on floors. 39
(2) Less than 100 micrograms 40 micrograms per square foot for lead dust on 40
interior windowsills. 41
(2a) Less than 250 micrograms per square foot for lead dust on vinyl miniblinds, 42
bathtubs, kitchen sinks, and lavatories. 43
(3) Less than 400 micrograms 100 micrograms per square foot for lead dust on 44
window troughs. 45
(4) Less than 400 parts per million for lead in bare soil in play areas, gardens, pet 46
sleeping areas, and areas within three feet of the residential housing unit or 47
child-occupied facility. Lead in bare soil in other locations of the yard shall 48
be reduced to less than 1,200 parts per million. 49
(5) Less than 10 parts per billion for lead in drinking water." 50
SECTION 9.(c) This section becomes effective January 1, 2027. 51
General Assembly Of North Carolina Session 2025
Senate Bill 1047-Fourth Edition Page 17
1
ALIGN STATUTORY REFERENCE WITH PRESIDENTIAL EXECUTIVE ORDER 2
14172 3
SECTION 9.1. G.S. 143-215.94BB(7) reads as rewritten: 4
"(7) "Offshore waters" shall i nclude both the territorial sea extending seaward 5
from the coastline of North Carolina or any other coastal state bordering the 6
Atlantic Ocean, including the Gulf of Mexico, Gulf of America, and the 7
exclusive economic zone extending seaward from the territorial sea of each 8
such state." 9
10
CONFORM DEFINITION OF "MANUFACTURED HOME" WITH FEDERAL 11
DEFINITION 12
SECTION 9.2.(a) G.S. 25-9-102(53) reads as rewritten: 13
"(53) Manufactured home. – A structure, transportable in one or more sections that 14
satisfies all of the following requirements: 15
a. In the traveling mode, is eight body feet or more in width or 40 body 16
feet or more in length, or, when erected on site, is 320 or more square 17
feet. 18
b. Is built on a permanent chassis and designed to be used as a dwelling 19
with or without a permanent foundation when connected to the 20
required utilities. 21
c. Includes plumbing, heating, air-conditioning, and electrical systems. 22
The term includes any structure that meets all of the requirements of this subdivision 23
except the size requirements and with respect to which the manufacturer 24
voluntarily files a certification required by the United States Secretary of 25
Housing and Urban Development and complies with the standards established 26
under Title 42 of the United States Code. As defined in 42 U.S.C. § 5402(6), 27
as amended." 28
SECTION 9.2.(b) G.S. 143-143.9(6) reads as rewritten: 29
"(6) Manufactured home. – A structure, transportable in one or more sections, 30
which, in the traveling mode, is eight feet or more in width or is 40 feet or 31
more in length, or when erected on site, is 320 or more square feet, and which 32
is built on a permanent chassis and designed to be used as a dwelling with or 33
without a permanent foundation when connected to the required utilities, and 34
includes the plumbing, heat ing, air conditioning and electrical systems 35
contained therein.As defined in 42 U.S.C. § 5402(6), as amended." 36
SECTION 9.2.(c) G.S. 143-145(7) reads as rewritten: 37
"(7) Manufactured home. – A structure, transportable in one or more sections, 38
which in the t raveling mode is eight body feet or more in width, or 40 body 39
feet or more in length, or, when erected on site, is 320 or more square feet; 40
and which is built on a permanent chassis and designed to be used as a 41
dwelling, with or without permanent foundatio n when connected to the 42
required utilities, including the plumbing, heating, air conditioning and 43
electrical systems contained therein. "Manufactured home" includes any 44
structure that meets all of the requirements of this subsection except the size 45
requirements and with respect to which the manufacturer voluntarily files a 46
certification required by the Secretary of HUD and complies with the 47
standards established under the Act. For manufactured homes built on or after 48
June 15, 1976, as defined in 42 U.S.C. § 5402(6), as amended. For 49
manufactured homes built before June 15, 1976, "manufactured home" means 50
a portable manufactured housing unit designed for transportation on its own 51
General Assembly Of North Carolina Session 2025
Page 18 Senate Bill 1047-Fourth Edition
chassis and placement on a temporary or semipermanent foundation having a 1
measurement of over 32 feet in length and over eight feet in width. 2
"Manufactured home" also means a double -wide manufactured home, which 3
is two or more portable manufactured housing units designed for 4
transportation on their own chassis that connect on site for placement on a 5
temporary or semipermanent foundation having a measurement of over 32 feet 6
in length and over eight feet in width." 7
SECTION 9.2.(d) G.S. 20-58.4A(e) reads as rewritten: 8
"(e) Notwithstanding any requirement in this Chapter that a lien on a m otor vehicle shall 9
be noted on the face of the certificate of title, if there are one or more liens or encumbrances on 10
the motor vehicle or mobile manufactured home, the Division may electronically transmit the 11
lien to the first lienholder and notify the first lienholder of any additional liens. Subsequent lien 12
satisfactions may be electronically transmitted to the Division and shall include the name and 13
address of the person satisfying the lien." 14
SECTION 9.2.(e) G.S. 24-1.1E(a)(4) reads as rewritten: 15
"(4) A "high -cost home loan" means a loan other than a reverse mortgage 16
transaction in which: 17
a. The principal amount of the loan (or, in the case of an open-end credit 18
plan, the borrower's initial maximum credit limit) does not exceed the 19
lesser of (i) the conforming loan size limit for a single-family dwelling 20
as established from time to time by Fannie Mae, or (ii) three hundred 21
thousand dollars ($300,000); 22
b. The borrower is a natural person; 23
c. The debt is incurred by the borrower primarily for personal, family, or 24
household purposes; 25
d. The loan is secured by either (i) a security interest in a manufactured 26
home (as defined in G.S. 143-147(7) ) G.S. 143-145(7)) which is or 27
will be occupied by the borrower as the borrower's principal dwelling, 28
or (ii) a mortgage or deed of trust on real estate upon which there is 29
located or there is to be located a structure or structures designed 30
principally for occupancy of from one to four families which is or will 31
be occupied by the borrower as the borrower's principal dwelling; and 32
e. The terms of the loan exceed one or more of the thresholds as defined 33
in subdivision (6) of this section." 34
SECTION 9.2.(f) G.S. 47-20.6 is amended by adding a new subsection to read: 35
"(e) For purposes of this section, the term "manufactured home" is as defined in 42 U.S.C. 36
§ 5402(6), as amended." 37
SECTION 9.2.(g) G.S. 41-56(d) reads as rewritten: 38
"(d) When spouses become co -owners of a mobile home, in the absence of a contrary 39
intention appearing in the instrument of title, the spouses become tenants by the entirety with all 40
the incidents of an estate by the entirety in real property, including the right of survivorship in 41
the case of death of either spouse. For the purposes of this subsection, it is immaterial whether 42
the property at any particular time is classified for any purpose as either real or personal. Nothing 43
in this subsection is deemed to limit or prohibit any other type of ownership otherwise authorized 44
by law. For the purposes of this subsection, the term "mobile home" means a any of the following: 45
(1) A portable manufactured housing unit designed for transportation on its own 46
chassis and placement on a temporary or semipermanent foundation having a 47
measurement of over 32 feet in length and over eight feet in width. 48
(2) As used in this subsection, the term "mobile home" also means a A 49
double-wide mobile home consisting of two or more portable manufactured 50
housing units that are designed for transportation on their own chassis and are 51
General Assembly Of North Carolina Session 2025
Senate Bill 1047-Fourth Edition Page 19
connected on site for placement on a temporary or semipermanent foundation 1
having a measurement of over 32 feet in length and over eight feet in width. 2
(3) A "manufactured home" as defined in 42 U.S.C. § 5402(6), as amended." 3
SECTION 9.2.(h) G.S. 47H-1(5) reads as rewritten: 4
"(5) Property. – Either (i) real estate located in this State, upon which there is 5
located or there is to be located a structure or structures designed principally 6
for occupancy of from one to four families that is or will be occupied by the 7
purchaser as the purchaser's principal dwelling, or (ii) a manufactured home, 8
as that term is defined in G.S. 143-149.9, G.S. 143-143.9(6), that is located in 9
this State and is or will be occupied by a purchaser as the purchaser's principal 10
dwelling, if the purchase price is five thousand dollars ($5,000) or more." 11
SECTION 9.2.(i) G.S. 58-36-90(a)(6) reads as rewritten: 12
"(6) "Residential property" means real property with not more than four housing 13
units located in this State, the contents thereof and valuable interest therein, 14
and insurance coverage written in connection with the sale of that property. It 15
also includes mobile homes, manufactured homes as defined in 16
G.S. 143-143.9(6), modular homes, townhomes, condominiums, and 17
insurance on contents of apartments and rental property used fo r residential 18
purposes." 19
SECTION 9.2.(j) This section becomes effective July 1, 2026. 20
21
ON-SITE WASTEWATER PRODUCTS FOR STORMWATER 22
SECTION 10. The Department of Environmental Quality shall approve for use as a 23
new stormwater technology any prefabricated permeable block panel system approved for use in 24
the State, as defined in G.S. 130A-343(a)(6a). In developing Minimum Design Criteria for this 25
technology, the Department shall ensure that the MDC follows the manufacturer's installation 26
and service requirements as closely as possible while still complying with federal requirements. 27
When utilized in traffic -rated areas, a person licensed as a professional engineer pursuant to 28
Chapter 89C of the General Statutes may use the approved prefabricated permeable block panel 29
system upon a showing that the system meets H -20 structural loading requirements. For the 30
purposes of this section, "traffic-rated areas" does not include Department of Transportation rated 31
areas but does include driveways and private parking areas with impervious or pervious 32
pavement areas. 33
34
TEMPORARY EVENT EXEMPTION FOR ELECTRIC WORK 35
SECTION 11.(a) G.S. 87-43.1 is amended by adding a new subdivision to read: 36
"(12) To any person when that person is temporarily attaching listed single 3-prong 37
(NEMA 5-15R or 5 -20R) receptacle s or power tap s to existing temporary 38
luminaires or lighting fixtures and plugging those luminaires or fixtures into 39
existing permanent receptacles, only when all of the following apply: 40
a. The work is performed solely for a permitted international wholesale 41
trade show in an exhibition hall, mercantile, or assembly occupancy 42
space in this State. 43
b. A valid electrical permit is obtained from the local authority having 44
jurisdiction prior to the work. 45
c. The work is inspected and approved by the local electrical inspector 46
before the international wholesale trade show opens." 47
SECTION 11.(b) This section is effective when it becomes law and applies to 48
permitted events occurring on or after that date. 49
50
General Assembly Of North Carolina Session 2025
Page 20 Senate Bill 1047-Fourth Edition
PLUMBING LICENSE EXEMPTION FOR CERTAIN SEWER LINE CONNECTIONS 1
SERVING MOBILE HOMES 2
SECTION 11.5.(a) G.S. 87-21 is amended by adding a new subsection to read: 3
"(c3) Exemption. – The provisions of this Article shall not apply to a person who installs 4
or connects a sanitary sewer line serving a manufactured home, as defined in G.S. 143-143.9(6), 5
if all of the following conditions are met: 6
(1) The sewer line is 3 or 4 inches in diameter and does not exceed 10 linear feet 7
in length. 8
(2) The sewer line connects the manufactured home to an existing septic tank, an 9
existing building sewer, or another existing wastewater system connection 10
point that has been approved by the local health department or other authority 11
having jurisdiction. 12
(3) The work does not include the design, installation, repair, relocation, 13
expansion, replacement, or alteration of the septic tank, drainfield, distribution 14
box, pump tank, or any other component of the wastewater system. 15
(4) The work is performed using materials and installation method s that comply 16
with the North Carolina State Building Code, the North Carolina Regulations 17
for Manufactured Homes adopted by the State Fire Marshal, and Article 11 of 18
Chapter 130A of the General Statutes and rules adopted under the authority of 19
that Article. 20
(5) The work remains subject to all required permits and inspections, and the 21
sewer line is not covered, backfilled, or otherwise concealed until it has been 22
inspected and approved by the authority having jurisdiction." 23
SECTION 11.5.(b) This section is effective when it becomes law and applies to 24
work occurring on or after that date. 25
26
IMPLEMENTATION OF CODE CHANGES FOR USE OF CERTAIN INSULATION IN 27
WALLS 28
SECTION 12.(a) Definitions. – As used in this section, "Code" means the current 29
North Carolina State Building Code collection, and amendments to the Code, as adopted by the 30
Council. For purposes of this section and its implementation, "R402 Rules" means provisions 31
and tables within Section 402, Building Thermal Envelope, North Carolina – Residential 32
Provisions, of the North Carolina Energy Conservation Code. As used in this section, "Council" 33
means the Building Code Council and the Residential Code Council. 34
SECTION 12.(b) R402 Rules Amendment. – Until the effective date of the rules to 35
amend the Code that the Council is required to adopt pursuant to subsection (d) of this section, 36
the Council and local governments enforcing the Code shall follow the provisions of subsection 37
(c) of this section as it relates to the R402 Rules within the North Carolina Energy Conservation 38
Code. 39
SECTION 12.(c) Implementation. – Where Table R402.1.2, Insulation and 40
Fenestration Requirements by Component, within the R402 Rules, require wood frame wall 41
R-values, installing air -impermeable spray foam insulation as cavity insulation, which meets 42
R-13 in climate zones 3 and 4, and R -15 insulation in climate zone 5, without installation of 43
additional continuous insulation, shall be deemed to satisfy the R -value requirements for the 44
wood frame wall in the appropriate climate zone, provided that the building envelope obtains an 45
ACH50 blower door test result of less than or equal to 3.0. 46
SECTION 12.(d) Additional Rulemaking Authority. – The Council shall adopt rules 47
to amend the R402 Rules to be consistent with subsect ion (c) of this section. Notwithstanding 48
G.S. 150B-19(4), the rule adopted by the Council pursuant to this section shall be substantively 49
identical to the provisions of subsection (c) of this section. Rules adopted pursuant to this section 50
are not subject to Part 3 of Article 2A of Chapter 150B of the General Statutes. Rules adopted 51
General Assembly Of North Carolina Session 2025
Senate Bill 1047-Fourth Edition Page 21
pursuant to this section shall become effective as provided in G.S. 150B-21.3(b1), as though 10 1
or more written objections had been received as provided in G.S. 150B-21.3(b2). 2
SECTION 12.(e) Sunset. – This section expires when permanent rules adopted as 3
required by subsection (d) of this section become effective. 4
5
AMEND ENERGY RATING INDEX COMPLIANCE ALTERNATIVE 6
SECTION 12.5.(a) Definitions. – As used in this section, "Code" means the current 7
North Carolina State Building Code collection, and amendments to the Code, as adopted by the 8
Council. For purposes of this section and its implementation, "R406 Rules" means provisions 9
and tables within Section 406, Energy Rating Index Comp liance Alternative, North Carolina – 10
Residential Provisions, of the North Carolina Energy Conservation Code. As used in this section, 11
"Council" means the Building Code Council and the Residential Code Council. 12
SECTION 12.5.(b) R406 Rules Amendment. – Until the effective date of the rules 13
to amend the Code that the Council is required to adopt pursuant to subsection (d) of this section, 14
the Council and local governments enforcing the Code shall follow the provisions of subsection 15
(c) of this section as it relates to the R406 Rules within the North Carolina Energy Conservation 16
Code. 17
SECTION 12.5.(c) Implementation. – There shall be no requirement that the 18
building thermal envelope meets or exceeds the levels of efficiency and Solar Heat Gain 19
Coefficients in Tables R406.2.1 and R406.2.2, which shall be deleted from the R406 Rules. The 20
minimum standards associated with compliance shall be the ANSI RESNET ICC Standard 21
301-2022 "Standard for the Calculation and Labeling of the Energy Performance Index of 22
Dwelling and Sleeping Units using an Energy Rating Index." 23
SECTION 12.5.(d) Additional Rulemaking Authority. – The Council shall adopt 24
rules to amend the R406 Rules to be consistent with subsection (c) of this section. 25
Notwithstanding G.S. 150B-19(4), the rule adopted by the Council pursuant to this section shall 26
be substantively identical to the provisions of subsection (c) of this section. Rules adopted 27
pursuant to this section are not subject to Part 3 of Article 2A of Chapter 150B of the General 28
Statutes. Rule s adopted pursuant to this section shall become effective as provided in 29
G.S. 150B-21.3(b1), as though 10 or more written objections had been received as provided in 30
G.S. 150B-21.3(b2). 31
SECTION 12.5.(e) Sunset. – This section expires when permanent rules adopted as 32
required by subsection (d) of this section become effective. 33
34
PERMIT CHOICE MODIFICATIONS 35
SECTION 13. G.S. 143-755 reads as rewritten: 36
"§ 143-755. Permit choice. 37
(a) If a development permit applicant submits a permit application for any type o f 38
development and a rule or ordinance is amended, including an amendment to any applicable land 39
development regulation, between the time the development permit application was submitted and 40
a development permit decision is made, the development permit appl icant may choose which 41
adopted version of the rule or ordinance will apply to the permit and use of the building, structure, 42
or land indicated on the permit application. application, except as provided in subsection (a1) of 43
this section. If the development permit applicant chooses the version of the rule or ordinance 44
applicable at the time of the permit application, the development permit applicant shall not be 45
required to await the outcome of the amendment to the rule, map, or ordinance prior to acting on 46
the development permit. If an applicable rule or ordinance is amended after the development 47
permit is wrongfully denied or after an illegal condition is imposed, as determined in a proceeding 48
challenging the permit denial or the condition imposed, the deve lopment permit applicant may 49
choose which adopted version of the rule or ordinance will apply to the permit and use of the 50
building, structure, or land indicated on the permit application. Provided, however, any provision 51
General Assembly Of North Carolina Session 2025
Page 22 Senate Bill 1047-Fourth Edition
of the development permit applicant's chosen version of the rule or ordinance that is determined 1
to be illegal for any reason shall not be enforced upon the applicant without the written consent 2
of the applicant. 3
(a1) A development permit applicant may not select a version of an erosion and sediment 4
control permit or a stormwater permit that does not comply with federal law. 5
(b) This section applies to all development permits issued by the State and by local 6
governments. 7
(b1) If a permit application is placed on hold at the request of the applicant for a period of 8
six consecutive months or more, or the applicant fails to respond to comments or provide 9
additional information reasonably requested by the local or State government for a period of six 10
consecutive months or more, the application r eview is discontinued and the development 11
regulations in effect at the time permit processing is resumed apply to the application. 12
(c) Repealed by Session Laws 2015-246, s. 5(a), effective September 23, 2015. 13
(d) Any person aggrieved by the failure of a State agency or local government to comply 14
with this section or G.S. 160D-108(b) may apply to the appropriate division of the General Court 15
of Justice for an order compelling compliance by the offending agency or local government, and 16
the court may issue tha t order. Actions brought pursuant to any of these sections shall be set 17
down for immediate hearing, and subsequent proceedings in those actions shall be accorded 18
priority by the trial and appellate courts. 19
(e) For purposes of this section, the following definitions apply: 20
(1) Development. – Without altering the scope of any regulatory authority granted 21
by statute or local act, any of the following: 22
a. The construction, erection, alteration, enlargement, renovation, 23
substantial repair, movement to another site, or demolition of any 24
structure. 25
b. Excavation, grading, filling, clearing, or alteration of land. 26
c. The subdivision of land as defined in G.S. 160D-802. 27
d. The initiation of substantial change in the use of land or the intensity 28
of the use of land. 29
(2) Development permit. – An administrative administrative, legislative, or 30
quasi-judicial approval that is written and that is required prior to commencing 31
development or undertaking a specific activity, project, or development 32
proposal, including any of the following: 33
a. Zoning permits. 34
b. Site plan approvals. 35
c. Special use permits. 36
d. Variances. 37
e. Certificates of appropriateness. 38
f. Plat approvals. 39
g. Development agreements. 40
h. Building permits. 41
i. Subdivision of land. 42
j. State agency permits for development. 43
k. Driveway permits. 44
l. Erosion and sedimentation control permits. 45
m. Sign permit. 46
n. Conditional zoning. 47
o. Rezoning. 48
p. Stormwater permits. 49
General Assembly Of North Carolina Session 2025
Senate Bill 1047-Fourth Edition Page 23
(3) Land development regulation. – Any State statute, rule, or regulation, or local 1
ordinance affecting the development or use of real property, including any of 2
the following: 3
a. Unified development ordinance. 4
b. Zoning regulation, including zoning maps. 5
c. Subdivision regulation. 6
d. Erosion and sedimentation control regulation. 7
e. Floodplain or flood damage prevention regulation. 8
f. Mountain ridge protection regulation. 9
g. Stormwater control regulation. 10
h. Wireless telecommunication facility regulation. 11
i. Historic preservation or landmark regulation. 12
j. Housing code. 13
k. Conditional zoning. 14
l. Rezoning. 15
m. Stormwater permits." 16
17
ESTABLISH REVIEW PERIODS FOR LOCAL GOVERNMENT APPROVALS AND 18
DECISIONS 19
SECTION 14.(a) G.S. 160D-403 reads as rewritten: 20
"§ 160D-403. Administrative development approvals and determinations. 21
(a) Development Approvals. – To the ex tent consistent with the scope of regulatory 22
development regulation authority granted by this Chapter, no person shall commence or proceed 23
with development without first securing any required development approval from the local 24
government with jurisdiction over the site of the development. A development approval shall be 25
in writing and may contain a provision requiring the development to comply with all applicable 26
State and local laws. A local government may issue development approvals in print or electronic 27
form. Any development approval issued exclusively in electronic fo rm shall be protected from 28
further editing once issued. Applications for development approvals may be made by the 29
landowner, a lessee or person holding an option or contract to purchase or lease land, or an 30
authorized agent of the landowner. An easement holder may also apply for development approval 31
for such the development as is authorized by the easement. 32
(a1) Time Period for Approval. – Within seven calendar days of the filing of an application 33
for a development approval, a local government or its design ated administrative staff, as 34
described under G.S. 160D-402, shall (i) determine whether the application is complete and 35
notify the applicant of the application 's completeness and , (ii) if the local government or its 36
designated administrative staff determines the application is incomplete, specify all of the 37
deficiencies in the notice to the applicant. The applicant may file an amended application or 38
supplemental information to cure the deficiencies identified by the local government or its 39
designated administrative staff for a completeness review, which shall be completed within seven 40
calendar days after receiving an amended application or supplemental application from the 41
applicant. Upon the date the application is deemed complete, the local government or its 42
designated administrative staff shall issue a receipt letter or electronic response stating that the 43
application is complete. From the date an application has been determined t o be complete, the 44
local government or its designated administrative staff shall have 20 days to perform an initial 45
review of the completed application and notify the applicant of any required changes, to which 46
an applicant shall have 15 days to respond. I f the applicant makes changes in response to 47
comments arising from the initial review, the local government or its designated administrative 48
staff shall have 10 calendar days to review any changes submitted by the applicant. Upon 49
expiration of that 10 -day secondary review period, a final 90-calendar day review period shall 50
begin. The local government shall approve or deny the application within 90 calendar days of the 51
General Assembly Of North Carolina Session 2025
Page 24 Senate Bill 1047-Fourth Edition
date the 10-day secondary review period ex pires, except that if the applicant requests a 1
continuance of the application, the review period shall be tolled for the duration of any 2
continuance. The time period for review may be extended only by agreement with the applicant 3
if the application cannot be reviewed within the specified time limitatio n due to circumstances 4
beyond the control of the local government. The extension shall not exceed six months. Failure 5
of the local government or its designated administrative staff to act before the expiration of the 6
time period allowed for review shall co nstitute an approval of the application, and the local 7
government shall issue a written approval upon demand by the applicant. 8
…." 9
SECTION 14.(b) Article 7 of Chapter 160D of the General Statutes is amended by 10
adding a new section to read: 11
"§ 160D-707. Review period for rezoning decisions. 12
Within seven calendar days of the filing of an application for amendment of a zoning map or 13
zoning regulations, a local government or its designated administrative staff, as described under 14
G.S. 160D-402, shall (i) determine whether the application is complete and notify the applicant 15
of the application's completeness and, (ii) if the local government or its designated administrative 16
staff determines the application is incomplete, specify all of the deficiencies in the notice to the 17
applicant. The applicant may file an amended application or supplemental information to cure 18
the deficiencies identified by the local government or its designated administrative staff for a 19
completeness review, which shal l be completed within seven calendar days after receiving an 20
amended application or supplemental application from the applicant . Upon the date the 21
application is deemed complete, the local government or its designated administrative staff shall 22
issue a receipt letter or electronic response stating that the application is complete. From the date 23
an application has been determ ined to be complete, t he local government or its designated 24
administrative staff shall have 20 days to perform an initial review of the completed application 25
and notify the applicant of any required changes, to which an applicant shall have 15 days to 26
respond. If the applicant makes changes in response to comments arising from the initial review, 27
the local government or its designated administrative staff shall have 10 calendar days to review 28
any changes submitted by the applicant. Upon expiration of that 10-day secondary review period, 29
a final 90-calendar day review period shall begin. The local government shall approve or deny 30
the application within 90 calendar days of the date the 10 -day secondary review period expires, 31
except that if the applicant requests a continuance of the application, the review period shall be 32
tolled for the duration of any continuance. The time period for review may be extended only by 33
agreement with the applicant if the application cannot be re viewed within the specified time 34
limitation due to circumstances beyond the control of the local government. The extension shall 35
not exceed six months. Failure of the local government or its designated administrative staff to 36
act before the expiration of the time period allowed for review shall constitute an approval of the 37
application, and the local gov ernment shall issue a written a pproval upon demand by the 38
applicant." 39
SECTION 14.(c) This section applies only to local governments with a population 40
of 20,000 people or more. 41
SECTION 14.(d) This section becomes effective August 1, 2026, and applies to 42
applications, approvals, and actions filed on or after that date. 43
44
NUISANCE IMMUNITY FOR RURAL RECREATIONAL AND HERITAGE EVENTS 45
SECTION 15.(a) Chapter 99E of the General Statutes is amended by adding a new 46
Article to read: 47
"Article 11. 48
"Rural Recreational and Heritage Event Nuisance Immunity. 49
"§ 99E-95. Nuisance immunity for rural recreational and heritage events. 50
(a) For purposes of this Article, the following definitions apply: 51
General Assembly Of North Carolina Session 2025
Senate Bill 1047-Fourth Edition Page 25
(1) Area of the facility. – The area within a 3-mile radius of the perimeter of the 1
property or a contiguous group of properties where a facility is located. 2
(2) Facility. – A designated and established area that is regularly used to host or 3
conduct one or more rural recreational and heritage events. A facility includes 4
the track, course, arena, ring, field, stable, kennel, pen, staging, spectator, and 5
parking areas, and any associated grounds, buildings, structures, or 6
appurtenances used to conduct or support rural recreational and heritage 7
events. A facility does not include real property to the extent it is used only 8
for the personal or private use of the property by the property owner or the 9
owner's family, guests, or invitees, where that use is not part of a rural 10
recreational and heritage event that is conducted on a recurring basis or that is 11
open to participants, spectators, or the members of a club, association, or other 12
organization that owns, operates, or conducts rural recreational and heritage 13
events at the facility. 14
(3) Rural recreational and heritage event. – Any of the following when conducted 15
at a facility: 16
a. Motorized and off-road vehicle events, including motocross, dirt-bike 17
events, all-terrain vehicle (ATV) and utility task vehicle (UTV) events, 18
go-kart racing, drag racing, autocross and rallycross, monster tru ck 19
events, truck pulls, tractor pulls, mud bogging, mud pulls, 20
four-wheel-drive and other off -road events, demolition derbies, lawn 21
mower racing, and similar motorized or off -road competitions or 22
events. 23
b. Horse and farm animal events, including horse sho ws, rodeos, barrel 24
racing, roping and team roping, horse pulls, mounted shooting, 25
equestrian competitions, livestock shows, farm animal exhibitions, 26
agricultural fair events, and similar animal -based competitions or 27
exhibitions. 28
c. Sporting dog and outdoor heritage events, including field trials, hunt 29
tests, retriever trials, beagle trials, foxhound events, coonhound 30
events, sporting dog training, hunting-preserve dog events, and similar 31
working or sporting dog events. 32
(b) A facility shall not be subject to any action brought by a surrounding property owner 33
under any nuisance or taking cause of action arising from the conduct of a rural recreational and 34
heritage event at the facility if both of the following conditions were met as of the date the 35
surrounding property owner purchased real property located within the area of the facility or, if 36
the surrounding property owner owned that real property before rural recreational and heritage 37
events were first conducted at the facility, as of the date the surroundin g property owner first 38
constructed a building on that real property: 39
(1) The facility was lawfully est ablished and in compliance with all laws, 40
ordinances, and permitting requirements applicable to the facility at the time 41
of its establishment. 42
(2) One or more rural recreational and heritage events have been conducted at the 43
facility within the 24 months preceding the date on which the surrounding 44
property owner purchased the real property or constructed the building." 45
SECTION 15.(b) This section is effect ive when it becomes law and applies to 46
actions commenced on or after that date. 47
48
AT-RISK BUILDING CHANGES 49
SECTION 16. G.S. 160D-1110.1 reads as rewritten: 50
General Assembly Of North Carolina Session 2025
Page 26 Senate Bill 1047-Fourth Edition
"§ 160D-1110.1. Commercial and multifamily building permits for applications with sealed 1
plans; third-party plan review alternatives; at-risk building foundation permits; 2
at-risk building structure permits. 3
(a) Applicability. – This section applies to commercial and multifamily development 4
project building permit applications that have plans and spec ifications that are complete and 5
sealed for construction, as applicable, by a professional engineer licensed under Chapter 89C of 6
the General Statutes or an architect licensed under Chapter 83A of the General Statutes. 7
… 8
(h) At-Risk Building Permit Options . – At-risk building permit options are available to 9
an eligible building permit applicant that requested and attended a pre -submittal meeting in 10
accordance with subsection (b) of this section to discuss a building project prior to permit 11
application. An e ligible permit applicant proceeding with an at -risk permit issued by a local 12
government pursuant to this subsection assumes all risks of liability, and the local government is 13
discharged and released from any liabilities, duties, and responsibilities attributable to the review, 14
approval, or construction pursuant to that at -risk permit. In accordance with G.S. 160D-108(e), 15
where multiple local development permits are required to complete a development project, a 16
permit issued by a local government pursuant t o this subsection is not an initial development 17
permit for purposes of the vesting protections of G.S. 160D-108(e). The following at -risk 18
building permit options are available: 19
(1) At-risk building foundation permit. – At the time of permit application, an 20
eligible building permit applicant may request an at -risk building foundation 21
permit authorizing a permit applicant to proceed with building foundation 22
construction. construction and any associated trade permit necessary to 23
support the authorized foundati on construction. A local government must 24
issue an at -risk building foundation permit and any associated trade permit 25
necessary for the authorized scope of work if a local government determines 26
a permit applicant has submitted all necessary plans and suffic ient 27
information, as discussed at a pre -submittal meeting pursuant to subsection 28
(b) of this section, and received all approvals necessary, for building 29
foundation construction and associated trade permit work, notwithstanding 30
that other development approvals from the local government, or other State or 31
federal agencies, for the project have not yet been obtained. For the purposes 32
of this subdivision, a permit applicant must have received an approved erosion 33
and sedimentation control plan in accordance with Article 4 of Chapter 113A 34
of the General Statutes for land -disturbing activity at a building foundation 35
construction site. 36
…." 37
38
LIMIT RESTRICTIVE COVENANTS ON SCHOOL PROPERTY 39
SECTION 16.5.(a) G.S. 115C-518 is amended by adding a new subsection to read: 40
"(a1) For real property disposed in accordance with this section, local boards of education 41
shall not impose or enforce a restriction on the future use of the property that prohibits use by a 42
public school unit or nonpublic school. Restrictions include deed restrictions, covenants, or other 43
interests that run with the land. A restriction on the use of disposed property that violates this 44
subsection is against the public policy of this State and is void and unenforceable." 45
SECTION 16.5.(b) Any restriction in existence on the effective date of this section 46
that prohibits the use of property disposed in accordance with G.S. 115C-518 by a public school 47
unit or nonpublic school is void. 48
SECTION 16.5.(c) This section is effective when it becomes law. Subsection (a) of 49
this section applies to the disposition of property owned by a local board of education on or after 50
that date. 51
General Assembly Of North Carolina Session 2025
Senate Bill 1047-Fourth Edition Page 27
1
PROMOTE FEE TRANSPARENCY AND PREDICTABILITY FOR APPLICANTS 2
PRIOR TO LOCAL GOVERNMENT DEVELOPMENT PERMIT APPROVAL OR 3
ISSUANCE 4
SECTION 17.(a) G.S. 160D-102 is amended by adding three new subdivisions to 5
read: 6
"(16a) Fee estimate. – A statement projecting all fees that may reasonably be assessed 7
in the fee statement for the applicant's project, including assumptions applied 8
to the category or purpose of the fees to be charged. 9
(16b) Fee schedule. – A statement of all current fees that may be collected by a local 10
government for the administration and enforcement of provisions set forth in 11
this Chapter and Article 8 of Chapter 162A of the General Statutes and impact 12
fees, facility fees, and other fees authorized by local act, applicable to each 13
project category and purpose, including the data and methodologies used to 14
calculate the fee rates. 15
(16c) Fee statement. – An itemized statement of any fees applicable to the 16
applicant's particular project pursuant to this Chapter." 17
SECTION 17.(b) Article 4 of Chapter 160D of the General Statutes is amended by 18
adding a new section to read: 19
"§ 160D-402.1. Development fee transparency. 20
(a) Fee Schedule Publication. – Each local government shall prominently display on the 21
local government 's official website the local government 's current fee schedule s. The local 22
government shall update the website to reflect any changes to fees, rates, or methodologies used 23
to develop fees and rates within 30 days of the adoption of any ordinance amending the fees, 24
rates, or methodologies. Each local government shall submit an annual report of its fee schedule, 25
fee collections, and compliance with this section to the Local Government Commission. 26
(b) Local Government Commission Report. – The Local Government Commission shall 27
publish and prominently display on the Com mission's website a statewide report of local 28
governments' current fee schedules. 29
(c) Required Disclosure. – Each local government shall provide to the applicant prior to 30
a development approval the current fee schedule and a fee estimate. The local government shall 31
deliver information required under this subsection to the applicant within 10 business days after 32
submission of a completed application . If the project materially changes after the local 33
government has delivered the fee estimate, the local government shall provide a revised estimate 34
within 10 business days of receiving the updated project information. The local government shall 35
not require payment of any fees specified in subsection (a) of this section before the local 36
government provides the estimate. 37
(d) Final Fee Statement. – Each local government shall provide to the applicant , in 38
writing, a final, binding fee statement of exact fees due when a development approval is issued 39
on the application. The final fee amount may not exceed the most recent estimate provided under 40
subsection ( c) of this section, unless the local government adopts a new fee schedule by 41
ordinance. 42
(e) Enforcement. – An applicant may commence a civil action in superior court of the 43
county in which the applicant's project is located to compel the local government to comply with 44
the requirements of this section. The court shall allow the prevailing party to recover reasonable 45
attorneys' fees and costs. Nothing in this section shall limit any remedy otherwise available under 46
Article 14 of this Chapter." 47
SECTION 17.(c) Nothing in this section shall be construed to limit or otherwise 48
affect the power or authority of a local government to impose fees consistent with its statutory 49
authority or constitutional requirements. This section shall not be construed to require the 50
disclosure of confidential information under G.S. 132-1.2. 51
General Assembly Of North Carolina Session 2025
Page 28 Senate Bill 1047-Fourth Edition
1
TOLL DISCONTINUANCE PERIOD FOR VESTED RIGHTS DURING EMERGENCY 2
DECLARATIONS 3
SECTION 18. G.S. 160D-108 reads as rewritten: 4
"§ 160D-108. Permit choice and vested rights. 5
… 6
(d) Duration of Vesting. – Upon issuance of a development permit, the statutory vesting 7
granted by subsection (c) of this section for a development project is effective upon filing of the 8
application in accordance with G.S. 143-755, for so long as the permit remains valid pursuant to 9
law. Unless otherwise specified by this section or other statute, local development permits expire 10
one year after issuance unless work authorized by the permit has substantially commenced. A 11
local land deve lopment regulation may provide for a longer permit expiration period. For the 12
purposes of this section, a permit is issued either in the ordinary course of business of the 13
applicable governmental agency or by the applicable governmental agency as a court directive. 14
Except where a longer vesting period is provided by statute or land development regulation, 15
the statutory vesting granted by this section, once established, expires for an uncompleted 16
development project if development work is intentionally and v oluntarily discontinued for a 17
period of not less than 24 consecutive months, and the statutory vesting period granted by this 18
section for a nonconforming use of property expires if the use is intentionally and voluntarily 19
discontinued for a period of not less than 24 consecutive months. The 24-month discontinuance 20
period is automatically tolled during the any of the following: 21
(1) The pendency of any board of adjustment proceeding or civil action in a State 22
or federal trial or appellate court regarding the validity of a development 23
permit, the use of the property, or the existence of the statutory vesting period 24
granted by this section. 25
(2) The 24-month discontinuance period is also tolled during the The pendency 26
of any litigation involving the development p roject or property that is the 27
subject of the vesting. 28
(3) The duration of any emergency declaration issued under G.S. 166A-19.20 or 29
G.S. 166A-19.22 for which the defined emergency area includes the property, 30
in whole or in part. 31
…." 32
33
MODIFY EXTENSIONS OF CERTAIN GOVERNMENT APPROVALS AFFECTING 34
THE DEVELOPMENT OF REAL PROPERTY IN THE AREA AFFECTED BY 35
HELENE 36
SECTION 19. Section 1D.3.(b) of S.L. 2024 -57, as amended by Section 1.5(a) of 37
S.L. 2025-97, reads as rewritten: 38
"SECTION 1D.3.(b) For any development approval: 39
(1) That is current and valid at any point during the period beginning January 1, 40
2024, and ending December 31, 2027, the running of the period of the 41
development approval and any associated vested right under G.S. 160D-108 42
or G.S. 160D-108.1 is suspended within the affected area during the period 43
beginning January 1, 2024, and ending December 31, 2027.2030. 44
(2) That was current and valid on September 25, 2024, the expiration date shall 45
be automatically extended for a period of 12 months beyond the date on which 46
the approval would otherwise expire pursuant to the suspension of the running 47
of time under subdivision (1) of this subsection. 48
Notwithstanding the extensions granted by this section, a local government may revoke or 49
modify a development approval automatically extended under this section if, due to changed site 50
conditions resulting from Hurricane Helene or subsequent related natural disasters, the local 51
General Assembly Of North Carolina Session 2025
Senate Bill 1047-Fourth Edition Page 29
government determines that it would not issue the permit under current site conditions ba sed on 1
a determination that the site no longer meets applicable State or federal safety, environmental, or 2
engineering standards, or that the extension of the approval would present a material risk to life, 3
health, or property. A local government exercising authority to revoke or modify a development 4
approval automatically extended under this subsection shall provide written notice to the holder 5
of the development approval of the revocation or modification, including findings of fact to 6
support a determinat ion that the site no longer meets applicable State or federal safety, 7
environmental, or engineering standards, or that the extension of the approval would present a 8
material risk to life, health, or property. The extensions granted by this subsection shall run 9
concurrently with, and not in addition to, any other extension of the same development approval 10
provided by State law or local ordinance." 11
12
STATUTORY SAFEGUARDS FOR HOA GOVERNANCE 13
SECTION 20.(a) G.S. 47C-3-102(a) reads as rewritten: 14
"§ 47C-3-102. Powers of unit owners' association. 15
(a) Unless the declaration expressly provides to the contrary, the association, even if 16
unincorporated, may do all of the following: 17
… 18
(12b) Impose a reasonable charge for providing copies of records requested by a 19
member, not to exceed the actual cost of photocopying the records, including 20
the cost of materials used in responding to the request and the cost of shipping 21
if shipping is required. 22
… 23
(14a) Exercise any authority granted to it under the declarat ion to approve or 24
disapprove any proposed changes to a unit or limited common element . In 25
exercising such authority, the association shall provide a fair, reasonable, and 26
expeditious procedure for making its decision , which procedure shall be set 27
forth in the association's governing documents. The procedures shall state the 28
maximum time for issuance of a ny decision on a proposal or a request for 29
reconsideration. An association may adopt formal submission requirements 30
for any prop osed change, which shall be communicated to the members. A 31
decision shall be made within 90 days after the init ial submission of the 32
proposal or submission of any additional information or changes to the 33
proposal requested by the association in response to the initial submission. A 34
decision shall be in writing , shall be made in good faith, and may not be 35
unreasonable, arbitrary, or capricious. If the proposal is disapproved, the 36
decision shall include an explanation of why the proposal is disapproved and, 37
if the determination was not issued by the executive board, a description of 38
the procedure for reconsideration of the decision by the executive board. 39
…." 40
SECTION 20.(b) G.S. 47F-3-102 reads as rewritten: 41
"§ 47F-3-102. Powers of owners' association. 42
Unless the articles of incorporation or the declaration expressly provides to the contrary, the 43
association may do all of the following: 44
… 45
(13b) Impose a reasonable charge for providing copies of records requested by a 46
member, not to exceed the actual cost of photocopying the records, including 47
the cost of materials used in responding to the request and the cost of shipping 48
if shipping is required. 49
… 50
General Assembly Of North Carolina Session 2025
Page 30 Senate Bill 1047-Fourth Edition
(15a) Exercise any authority granted to it under the declarat ion to approve or 1
disapprove any proposed changes o n a lot or l imited common element. In 2
exercising such authority, the association shall provide a fair, reasonable, and 3
expeditious procedure for making its decision , which procedure shall be set 4
forth in the association's governing documents. The procedures shall state the 5
maximum time for issuance of a ny decision on a proposal or a request for 6
reconsideration. An association may adopt formal submission requirements 7
for any proposed change, which shall be communicated to the members. A 8
decision shall be made within 90 days after the init ial submission of the 9
proposal or submission of any additional information or changes to the 10
proposal requested by the association in response to the initial submission. A 11
decision shall be in writing , sh all be made in good faith, and may not be 12
unreasonable, arbitrary, or capricious. If the proposal is disapproved, the 13
decision shall include an explanation of why the proposal is disapproved and, 14
if the determination was not issued by the executive board, a description of 15
the procedure for reconsideration of the decision by the executive board. 16
…." 17
SECTION 20.1.(a) G.S. 47C-3-107.1 reads as rewritten: 18
"§ 47C-3-107.1. Procedures for fines and suspension of condominium privileges or services. 19
Unless a specific procedure for the imposition of fines or suspension of condominium 20
privileges or services is provided for in the declaration, a hearing shall be held before the 21
executive board or an adjudicatory panel appointed by the executive board to determine if any 22
unit owner should be fined or if condominium privileges or services should be suspended 23
pursuant to the powers granted to the association in G.S. 47C-3-102(11). Any adjudicatory panel 24
appointed by the executive board shall be composed of members of the association who are not 25
officers of the association or members of the executive board. The unit owner charged shall be 26
given notice of the charge, opportunity to be heard and to present evidence, and notice of the 27
decision. A written notice of hearing shall be sent to the unit owner in the manner provided in 28
G.S. 47C-3-116(e) not less than 10 days prior to the scheduled hearing date. The notice of hearing 29
shall specify the date, time , and place of the hearing and shall include a general description of 30
each alleged violation and the action, if any, required to cure each alleged violation. Not less than 31
two days prior to the schedule d hearing date, the executive board or adjudicatory pan el shall 32
provide the unit owner with the names of any persons whose testimony it intends to offer in 33
support of the charge and a copy of any documents, photographs, or other exhibits that it intends 34
to submit in support of the charge. The unit owner shall be given an opportunity to be heard and 35
to present evidence at the hearing. A written notice of the decision specifying each violation 36
verified by the evidence and the action, if any, required to cure each verified violation shall be 37
sent to the unit owner in the manner provided in G.S. 47C-3-116(e). If it is decided that a fine 38
should be imposed, a fine not to exceed one hundred dollars ($100.00) may be imposed for the 39
violation and without further hearing, for each day more than five days after the decision that the 40
violation occurs. occurs, up to a maximum fine of two thousand five hundred dollars ( $2,500). 41
Such fines shall be assessments secured by liens under G.S. 47C-3-116. If it is decided that a 42
suspension of condominium privileges or services should be imposed, the suspension may be 43
continued without further hearing until the violation or delinquency is cured. A unit owner may 44
appeal a decision of an adjudicatory panel to the full executive board by delivering written notice 45
of appeal to the executive board within 15 days after the date of the decision. The executive board 46
may affirm, vacate, or modify the prior decision of the adjudicatory body." 47
SECTION 20.1.(b) G.S. 47F-3-107.1 reads as rewritten: 48
"§ 47F-3-107.1. Procedures for fines and suspension of planned community privileges or 49
services. 50
General Assembly Of North Carolina Session 2025
Senate Bill 1047-Fourth Edition Page 31
Unless a specific procedure for the imposition of fines or suspension of planned community 1
privileges or services is provided for in the declaration, a hearing shall be held before the 2
executive board or an adjudicatory panel appointed by the exe cutive board to determine if any 3
lot owner should be fined or if planned community privileges or services should be suspended 4
pursuant to the powers granted to the association in G.S. 47F-3-102(11) and (12). Any 5
adjudicatory panel appointed by the executiv e board shall be composed of members of the 6
association who are not officers of the association or members of the executive board. The lot 7
owner charged shall be given notice of the charge, opportunity to be heard and to present 8
evidence, and notice of the decision. A written notice of hearing shall be sent to the lot owner in 9
the manner provided in G.S. 47F-3-116(e) not less than 10 days prior to the scheduled hearing 10
date. The notice of hearing shall specify the date, time, and place of the hearing and shall include 11
a general description of each alleged violation and the action, if any, required to cure each alleged 12
violation. Not less than two days prior to the scheduled hearing date , the executive board or 13
adjudicatory panel shall provide the lot owner with the names of any persons whose testimony it 14
intends to offer in support of the charge and a copy of any documents, photographs, or other 15
exhibits that it intends to submit in support of the charge. The lot owner shall be given an 16
opportunity to be heard and to present evidence at the hearing. A written notice of the decision 17
specifying each violation verified by the evidence and the action, if any, required to cure each 18
verified violation shall be sent to the lot owner in the manner provided in G.S. 47F-3-116(e). If 19
it is decided that a fine should be imposed, a fine not to exceed one hundred dollars ($100.00) 20
may be imposed for the violation and without further hearing, for each day more than five days 21
after the decision that the violation occurs. occurs, up to a maximum fine of two t housand five 22
hundred dollars ($2,500). Such fines shall be assessments secured by liens under G.S. 47F-3-116. 23
If it is decided that a suspension of planned community privileges or services should be imposed, 24
the suspension may be continued without further hearing until the violation or delinquency is 25
cured. The lot owner may appeal the decision of an adjudicatory panel to the full executive board 26
by delivering written notice of appeal to the executive board within 15 days after the date of the 27
decision. The executive board may affirm, vacate, or modify the prior decision of the 28
adjudicatory body." 29
SECTION 20.2.(a) G.S. 47C-3-116 reads as rewritten: 30
"§ 47C-3-116. Lien for sums due the association; enforcement. 31
(a) Any assessment attributable to a unit which remains unpaid for a period of 30 days 32
or longer shall constitute a lien on that unit when a claim of lien is filed of record in the office of 33
the clerk of superior court of the county in which the unit is loca ted in the manner provided in 34
this section. A claim of lien securing a debt consisting of fines or fine-related charges shall be 35
filed separately from a claim of lien securing other sums owed to the association and shall be 36
filed within 90 days after the date the fine was imposed . As used in this section, "fines or 37
fine-related charges " means fines imposed by the association, interest on unpaid fines , or 38
attorneys' fees incurred by the association related to fines imposed by the association. Once filed, 39
a claim of lien secures all sums due the association through the date filed and any sums due to 40
the association thereafter. Unless the declaration provides otherwise, fees, charges, late charges 41
and other charges imposed pursuant to G.S. 47C-3-102, 47C-3-107, 47C-3-107.1, and 47C-3-115 42
are subject to the claim claims of lien provided for under this section as well as any other sums 43
due and payable to the association under the declaration, the provisions of this Chapter, or as the 44
result of an arbitration, mediation, or judicial decision. 45
(b) The association must provide proper notice of delinquent assessments to the unit 46
owner before filing a claim of lien. The association must make reasonable and diligent efforts 47
ensure that its records contain the unit owner 's current physical mailing address. address and 48
current electronic mailing address. No fewer than 15 days prior to filing the lien, the association 49
shall mail do all of the following: 50
General Assembly Of North Carolina Session 2025
Page 32 Senate Bill 1047-Fourth Edition
(1) Mail a statement of the assessment amount due by first class mail to the 1
physical address of the unit and the unit owner's address of record with the 2
association and, if different, to the address for the unit owner shown on the 3
county tax records for the unit. If the unit owner is a corporation or limited 4
liability company, the statement shall also be sent by first class mail to the 5
mailing address of the registered agent for the corporation or limited liability 6
company. Notwithstanding anything to the contrary in this Chapter, the 7
association is not required to mail a st atement to an address known to be a 8
vacant unit or to a unit for which there is no United States postal address. 9
(2) Send a statement of the assessment amount due via electronic mail if the 10
owner has designated an email address as provided in G.S. 55A-1-70(b). 11
(c) A claim of lien shall set forth the name and address of the association, the name of 12
the record owner of the unit at the time the claim of lien is filed, a description of the unit, and the 13
amount of the lien claimed. A claim of lien may also app oint a trustee to conduct a foreclosure 14
as provided in subsection (f) of this section. The first page of the claim of lien shall contain the 15
following statement in print that is in boldface, capital letters, and no smaller than the largest 16
print used elsewhere in the document: 17
"THIS DOCUMENT CONSTITUTES A LIEN AGAINST YOUR PROPERTY, AND IF THE 18
LIEN IS NOT PAID, THE HOMEOWNERS ASSOCIATION MAY PROCEED WITH 19
FORECLOSURE ENFORCEMENT AGAINST YOU AND YOUR PROPERTY IN LIKE 20
MANNER AS A MORTGAGE AS PERMITTED UNDER NORTH CAROLINA LAW." 21
The person signing the claim of lien on behalf of the association shall attach to and file with 22
the claim of lien a certificate of service attesting to the attempt of service on the record owner, 23
which service shall be attempted in accor dance with G.S. 1A-1, Rule 4(j), for service of a copy 24
of a summons and a complaint. If the actual service is not achieved, the person signing the claim 25
of lien on behalf of the association shall be deemed to have met the requirements of this 26
subsection if service has been attempted pursuant to both of the following: (i) G.S. 1A-1, Rule 27
4(j)(1)c, d, or e and (ii) by mailing a copy of the lien by regular, first class mail, postage prepaid 28
to the physical address of the unit and the unit owner's address of re cord with the association, 29
and, if different, to the address for the unit owner shown on the county tax records and the county 30
real property records for the unit. The association shall also send the owner a copy of the claim 31
of lien and certificate of service by email if the owner has designated an email address as provided 32
in G.S. 55A-1-70(b). In the event that the owner of record is not a natural person, and actual 33
service is not achieved, the person signing the claim of lien on behalf of the association shall be 34
deemed to have met the requirements of this subsection if service has been attempted once 35
pursuant to the applicable provisions of G.S. 1A-1, Rule 4(j)(3) through G.S. 1A-1, Rule 4(j)(9). 36
Notwithstanding anything to the contrary in this Chapter, the association is not required to mail 37
a claim of lien to an address which is known to be a vacant unit or to a unit for which there is no 38
United States postal address. A lien for unpaid assessments is extinguished unless proceedings 39
to enforce the lien are instituted within three years after the filing of the claim of lien in the office 40
of the clerk of superior court. A lien securing a debt consisting of fines or fine-related charges is 41
extinguished unless proceedings to enforce the lien are instituted within one year after the filing 42
of the claim of lien in the office of the clerk of superior court. 43
(d) A claim of lien filed under this section is prior to all liens and encumbrances on a unit 44
except (i) liens and encumbrances, specifically including, but not limited to, a mortgage or deed 45
of trust on the unit, recorded before the filing of the claim of lien in the office of the clerk of 46
superior court and (ii) liens for real estate taxes and other governmental assessments and charges 47
against the unit. This subsection does not affect the priority of mechanics' or materialmen's liens. 48
(e) The association shall be entitled to recover the court may, in the court 's discretion, 49
allow the association to recover the reasonable attorneys' fees and costs it the association incurs 50
in connection with the collection of any sums due. A unit owner may not be required to pay 51
General Assembly Of North Carolina Session 2025
Senate Bill 1047-Fourth Edition Page 33
attorneys' fees and court costs until the unit owner is notified in writing of the association's intent 1
to seek payment of attorneys' fees, costs, and expenses. The notice must be sent by first -class 2
mail to the physical address of the unit and the unit owner's address of record with the association 3
and, if different, to the address for the unit owner shown on the county tax records for the unit. 4
The association must make reasonable and diligent efforts to ensure that its records contain the 5
unit owner's current mailing address. Notwithstanding anything to the contrary in this Chapter, 6
there shall be no requirement that notice under this subsection be mailed to an address which is 7
known to be a vacant unit or a unit for which there is no United States postal address. The notice 8
shall set out the outstanding balance due as of the date of the notice and state that the unit owner 9
has 15 days from the mailing of the notice by first -class mail to pay the outstanding balance 10
without the attorneys' fees and court costs. If the unit owner pays the outstanding balance within 11
this period, then the unit owner shall have no obligation to pay attorneys' fees, costs, or expenses. 12
The notice shall also inform the unit owner of the opportunity to contact a representative of the 13
association to discuss a payment schedule for the outstanding balance as provided in subsection 14
(i) of this section and shall provide the name and telephone number of the representative. 15
(f) Except as provided in subsection (h) of this section, the association, acting through 16
the executive board, may fo reclose a claim of lien securing a debt consisting of sums due the 17
association other than fines or fine-related charges in like manner as a mortgage or deed of trust 18
on real estate under power of sale, as provided in Article 2A of Chapter 45 of the General Statutes, 19
if the assessment remains unpaid delinquency has continued for 90 180 days or more. The 20
association shall not foreclose the claim of lien unless the executive board votes to commence 21
the proceeding against the specific unit. The following provisions and procedures shall be 22
applicable to and complied with in every nonjudicial power of sale foreclosure of a claim of lien, 23
and these provisions and procedures shall control to the extent they are inconsistent or in conflict 24
with the provisions of Article 2A of Chapter 45 of the General Statutes: 25
… 26
(5) After the association has filed a claim of lien and prior to the commencement 27
of a nonjudicial foreclosure, the association shall give to the unit owner notice 28
of the association's intention to commence a nonjudicial foreclosure to enforce 29
its claim of lien. The notice shall contain the information required in 30
G.S. 45-21.16(c)(5a).G.S. 45-21.16(c)(5) and G.S. 45-21.16(c)(5a) and shall 31
specifically reference the unit owner 's right of redemption provided under 32
subdivision (8) of this subsection. The notice shall be sent by first-class mail 33
to the physical address of the unit and the unit owner's address of record with 34
the association and, if different, to the address for the unit owner shown on 35
the county tax records for the unit. 36
(5a) The notice of hearing required pursuant to G.S. 45-21.16(a) shall be 37
accompanied by the association's certification of the actions it has taken to 38
give the owner notice of delinquent assessments in compliance with 39
subsection (b) of this section. 40
(5b) At the commencement of the hearing, the clerk shall inquire as to whether the 41
owner occupies the unit as his or her principal residence. If it appears that the 42
owner does currently occupy the unit as a principal residence, the clerk shall 43
further inquire as to the efforts the association has made to communicate with 44
the owner and to attempt to resolve the matter voluntarily before the 45
foreclosure proceeding. The clerk 's inquiry shall not be required if the 46
association has submitted, at or before the hearing, an affidavit briefly 47
describing any efforts that have been made to resolve the default with the 48
owner and the results of any such efforts. 49
(5c) The clerk shall order the hearing continued if the clerk finds that there is good 50
cause to believe that additional time or additional efforts have a reasonable 51
General Assembly Of North Carolina Session 2025
Page 34 Senate Bill 1047-Fourth Edition
likelihood of resolving the delinquency without foreclosure. In determining 1
whether to continue the hearing, the clerk may consider (i) whether the 2
association has offered the debtor an opportunity to resolve the foreclosure 3
under a payment schedule pursuant to subsection (i) of this section , (ii) 4
whether the association has engaged in actual responsive communication with 5
the owner, including telephone conferences or in -person meetings with the 6
owner or other actual two-party communications, (iii) whether the owner has 7
indicated that he or she has the intent and ability to resolve the delinquency 8
by making future payments under a payment plan, and (iv) whether the 9
initiation or continuance of good -faith voluntary resolution efforts between 10
the parties may resolve the matter without a foreclosure sale. Where good 11
cause exists to continue the hearing, the clerk shall order the hearing continued 12
to a date and time certain no t more than 90 days from the date scheduled for 13
the original hearing. Nothing in this subsection shall limit the authority of the 14
clerk to continue a hearing for other good cause shown. 15
… 16
(g) The provisions of subsection (f) of this section do not prohibit or prevent an 17
association from pursuing judicial foreclosure of a claim of lien, lien securing a debt consisting 18
of sums due the association other than fines and fine -related charges, from taking other actions 19
to recover the sums due the association, or from accepting a deed in lieu of foreclosure. Any 20
judgment, decree, or order in any judicial foreclosure or civil action relating to the collection of 21
assessments shall include an award of cost s and reasonable attorneys' fees for the prevailing 22
party, which shall not be subject to the limitation provided in subdivision (f)(12) of this section. 23
(h) A claim of lien securing a debt consisting solely of fines imposed by the association, 24
interest on unpaid fines, or attorneys' fees incurred by the association solely associated with fines 25
imposed by the association or fine-related charges may only be enforced by judicial foreclosure, 26
as provided in Article 29A of Chapter 1 of the General Statutes. the filing of a civil action seeking 27
a judgment. In addition, an association shall not levy, charge, or attempt to collect a service, 28
collection, consulting, or administration fee from any unit owner unless the fee is ex pressly 29
allowed in the declaration, and any claim of lien securing a debt consisting solely of these fees 30
may only be enforced by judicial foreclosure, as provided in Article 29A of Chapter 1 of the 31
General Statutes.the filing of a civil action see king a judgment. Liens arising as a result of the 32
entry of a judgment in favor of the association in any such civil action shall relate back and be 33
effective as of the date the claim of lien was filed. 34
…." 35
SECTION 20.2.(b) G.S. 47F-3-116 reads as rewritten: 36
"§ 47F-3-116. Lien for sums due the association; enforcement. 37
(a) Any assessment attributable to a lot which remains unpaid for a period of 30 days or 38
longer shall constitute a lien on that lot when a claim of lien is filed of record in the office of the 39
clerk of superior court of the county in which the lot is located in the manner provided in this 40
section. A claim of lien securing a debt consisting of fines or fine-related charges shall be filed 41
separately from a claim of lien securing other sums due the association and shall be filed within 42
90 days after the date the fine was imposed. As used in this section, "fines or fine-related charges" 43
means fines imposed by the association, interest on unpaid fines , or attorneys' fees incurred by 44
the association related to fines imposed by the association. Once filed, a claim of lien secures all 45
sums due the association through the date filed and any sums due to the association thereafter. 46
Unless the declaration provides otherwise, fees, charges, late charges, and other charges imposed 47
pursuant to G.S. 47F-3-102, 47F-3-107, 47F -3-107.1, and 47F -3-115 are subject to the claim 48
claims of lien provided for under this section as well as any other sums due and payable to the 49
association under the declaration, the provisions of this Chapter, or as the result of an arbitration, 50
mediation, or judicial decision. 51
General Assembly Of North Carolina Session 2025
Senate Bill 1047-Fourth Edition Page 35
(b) The association must provide proper notice of delinquent assessments to the lot owner 1
before filing a claim of lien. The association must make reasonable and diligent efforts to ensure 2
that its records contain the lot owner's current physical mailing address. address and current 3
electronic mailing address. No fewer than 15 days prior to filing the lien, the association shall 4
mail do all of the following: 5
(1) Mail a statement of the assessment amount due by first -class mail to the 6
physical address of the lot and the lot owner's address of record with the 7
association and, if different, to the address for the lot owner shown on the 8
county tax records for the lot. If the lot owner is a corporation or limited 9
liability company, the statement shall also be sent by first -class mail to the 10
mailing address of the registered agent for the corporation or limited liability 11
company. Notwithstand ing anything to the contrary in this Chapter, the 12
association is not required to mail a statement to an address known to be a 13
vacant lot on which no dwelling has been constructed or to a lot for which 14
there is no United States postal address. 15
(2) Send a st atement of the assessment amount due via electronic mail if the 16
owner has designated an email address as provided in G.S. 55A-1-70(b). 17
(c) A claim of lien shall set forth the name and address of the association, the name of 18
the record owner of the lot at the time the claim of lien is filed, a description of the lot, and the 19
amount of the lien claimed. A claim of lien may also appoint a trustee to conduct a foreclosure, 20
as provided in subsection (f) of this section. The first page of the claim of lien shall contain the 21
following statement in print that is in boldface, capital letters, and no smaller than the largest 22
print used elsewhere in the document: 23
"THIS DOCUMENT CONSTITUTES A LIEN AGAINST YOUR PROPERTY, AND IF THE 24
LIEN IS NOT PAID, THE HOMEOWNERS ASSOC IATION MAY PROCEED WITH 25
FORECLOSURE ENFORCEMENT AGAINST YOU AND YOUR PROPERTY IN LIKE 26
MANNER AS A MORTGAGE AS PERMITTED UNDER NORTH CAROLINA LAW." 27
The person signing the claim of lien on behalf of the association shall attach to and file with 28
the claim of lien a certificate of service attesting to the attempt of service on the record owner, 29
which service shall be attempted in accordance with G.S. 1A-1, Rule 4(j), for service of a copy 30
of a summons and a complaint. If the actual service is not achieved, the person signing the claim 31
of lien on behalf of the association shall be deemed to have met the requirements of this 32
subsection if service has been attempted pursuant to both of the following: (i) G.S. 1A-1, Rule 33
4(j)(1)c, d, or e and (ii) by mailing a copy of the lien by regular, first-class mail, postage prepaid 34
to the physical address of the lot and the lot owner's address of record with the association, and, 35
if different, to the address for the lot owner shown on the county tax records and the county real 36
property records for the lot. The association shall also send the owner a copy of the claim of lien 37
and certificate of service by email if the owner has designated an email address as provided in 38
G.S. 55A-1-70(b). In the event that the owner of record is not a natural person, and actual service 39
is not achieved, the person signing the claim of lien on behalf of the association shall be deemed 40
to have met the requirements of this subsection if service has been attempted once pursuant to 41
the applicable provis ions of G.S. 1A-1, Rule 4(j)(3) through G.S. 1A-1, Rule 4(j)(9). 42
Notwithstanding anything to the contrary in this Chapter, the association is not required to mail 43
a claim of lien to an address which is known to be a vacant lot on which no dwelling has been 44
constructed or to a lot for which there is no United States postal address. A lien for unpaid 45
assessments is extinguished unless proceedings to enforce the lien are instituted within three 46
years after the filing of the claim of lien in the office of the clerk of superior court. A lien securing 47
a debt consisting of fines or fine-related charges is extinguished unless proceedings to enforce 48
the lien are instituted within one year after the filing of the claim of lien in the office of the clerk 49
of superior court. 50
General Assembly Of North Carolina Session 2025
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(d) A claim of lien filed under this section is prior to all liens and encumbrances on a lot 1
except (i) liens and encumbrances, specifically including, but not limited to, a mortgage or deed 2
of trust on the lot, recorded before the filing of the cla im of lien in the office of the clerk of 3
superior court and (ii) liens for real estate taxes and other governmental assessments and charges 4
against the lot. This subsection does not affect the priority of mechanics' or materialmen's liens. 5
(e) The association shall be entitled to recover the court may, in the court 's discretion, 6
allow the association to recover the reasonable attorneys' fees and costs it the association incurs 7
in connection with the collection of any sums due. A lot owner may not be required to pay 8
attorneys' fees and court costs until the lot owner is notified in writing of the association's intent 9
to seek payment of attorneys' fees, costs, and expenses. The notice must be sent by first -class 10
mail to the physical address of the lot a nd the lot owner's address of record with the association 11
and, if different, to the address for the lot owner shown on the county tax records for the lot. The 12
association must make reasonable and diligent efforts to ensure that its records contain the lot 13
owner's current mailing address. Notwithstanding anything to the contrary in this Chapter, there 14
shall be no requirement that notice under this subsection be mailed to an address which is known 15
to be a vacant lot on which no dwelling has been constructed or a lot for which there is no United 16
States postal address. The notice shall set out the outstanding balance due as of the date of the 17
notice and state that the lot owner has 15 days from the mailing of the notice by first -class mail 18
to pay the outstanding balance without the attorneys' fees and court costs. If the lot owner pays 19
the outstanding balance within this period, then the lot owner shall have no obligation to pay 20
attorneys' fees, costs, or expenses. The notice shall also inform the lot owner of th e opportunity 21
to contact a representative of the association to discuss a payment schedule for the outstanding 22
balance, as provided in subsection (i) of this section, and shall provide the name and telephone 23
number of the representative. 24
(f) Except as provided in subsection (h) of this section, the association, acting through 25
the executive board, may foreclose a claim of lien securing a debt consisting of sums due the 26
association other than fines or fine-related charges in like manner as a mortgage or deed of trust 27
on real estate under power of sale, as provided in Article 2A of Chapter 45 of the General Statutes, 28
if the assessment remains unpaid delinquency has continued for 90 180 days or more. The 29
association shall not foreclose the claim of lien unless the executive board votes to commence 30
the proceeding against the specific lot. 31
The following provisions and procedures shall be applicable to and complied with in every 32
nonjudicial power of sale foreclosure of a claim of lien, and these provisions and procedures shall 33
control to the extent they are inconsistent or in conflict with the provisions of Article 2A of 34
Chapter 45 of the General Statutes: 35
… 36
(5) After the association has filed a claim of lien and prior to the commencement 37
of a nonjudicial foreclosure, the association shall give to the lot owner notice 38
of the association's intention to commence a nonjudicial foreclosure to enforce 39
its claim of lien. The notice shall contain the information required in 40
G.S. 45-21.16(c)(5a).G.S. 45-21.16(c)(5) and G.S. 45-21.16(c)(5a) and shall 41
specifically reference the lot owner's right of redemption provided under 42
subdivision (8) of this subsection. The notice shall be sent by first -class mail 43
to the physical address of the lot and the lot owner's address of record with the 44
association and, if different, to the address for the lot owner shown on the 45
county tax records for the lot. 46
(5a) The notice of hearing required pursuant to G.S. 45-21.16(a) shall be 47
accompanied by the association 's certification of the actions it has taken to 48
give the owner notice of delinquent assessments in compliance with 49
subsection (b) of this section. 50
General Assembly Of North Carolina Session 2025
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(5b) At the commencement of the hearing, the clerk shall inquire as to whether the 1
owner occupies the lot as his or her pri ncipal residence. If it appears that the 2
owner does currently occupy the lot as a principal residence, the clerk shall 3
further inquire as to the efforts the association has made to communicate with 4
the owner and to attempt to resolve the matter voluntarily before the 5
foreclosure proceeding. The clerk 's inquiry shall not be required if the 6
association has submitted, at or before the hearing, an affidavit briefly 7
describing any efforts that have been made to resolve the default with the 8
owner and the results of any such efforts. 9
(5c) The clerk shall order the hearing continued if the clerk finds that there is good 10
cause to believe that additional time or additional efforts have a reasonable 11
likelihood of resolving the delinquency without foreclosure. In determining 12
whether to continue the hearing, the clerk may consider (i) whether the 13
association has offered the owner an opportunity to resolve the foreclosure 14
under a payme nt schedule pursuant to subsection (i) of this section , (ii) 15
whether the association has engaged in actual responsive communication with 16
the owner, including telephone conferences or in -person meetings with the 17
owner or other actual two-party communications, (iii) whether the owner has 18
indicated that he or she has the intent and ability to resolve the delinquency 19
by making future payments under a payment plan, and (iv) whether the 20
initiation or continuance of good -faith voluntary resolution efforts between 21
the parties may resolve the matter without a foreclosure sale. Where good 22
cause exists to continue the hearing, the clerk shall order the hearing continued 23
to a date and time certain not more than 90 days from the date scheduled for 24
the original hearing. Nothing in this subsection shall limit the authority of the 25
clerk to continue a hearing for other good cause shown. 26
… 27
(g) The provisions of subsection (f) of this section do not prohibit or prevent an 28
association from pursuing judicial foreclosure of a clai m of lien, lien securing a debt consisting 29
of sums due the association other than fines and fine -related charges, from taking other actions 30
to recover the sums due the association, or from accepting a deed in lieu of foreclosure. Any 31
judgment, decree, or order in any judicial foreclosure or civil action relating to the collection of 32
assessments shall include an award of costs and reasonable attorneys' fees for the prevailing 33
party, which shall not be subject to the limitation provided in subdivision (f)(12) of this section. 34
(h) A claim of lien securing a debt consisting solely of fines imposed by the association, 35
interest on unpaid fines, or attorneys' fees incurred by the association solely associated with fines 36
imposed by the association or fine-related charges may only be enforced by judicial foreclosure, 37
as provided in Article 29A of Chapter 1 of the General Statutes. the filing of a civil action seeking 38
a judgment. In addition, an association shall not levy, charge, or attempt to collect a service, 39
collection, consulting, or administration fee from any lot owner unless the fee is expressly 40
allowed in the declaration, and any claim of lien securing a debt consisting solely of these fees 41
may only be enforced by judicial foreclosure, as provided in Article 29A of Chapter 1 of the 42
General Statutes.the filing of a civil action seeking a judgment. Liens arising as a result of the 43
entry of a judgment in favor of the association in any such civil action shall relate back and be 44
effective as of the date the claim of lien was filed. If, prior to any hearing held pursuant to a civil 45
action filed under this subsection, the lot owner satisfies the debt giving rise to the civil action , 46
the association shall dismiss the civil action and cancel the claim of lien . The lot owner shall 47
have all rights granted under Article 4 of Chapter 45 of the General Statutes to ensure the 48
association's satisfaction of the claim of lien , and the association shall not be entitled to the 49
collection or award of any attorneys ' fees or court costs related to the dismissed civil action or 50
cancelled claim of lien. 51
General Assembly Of North Carolina Session 2025
Page 38 Senate Bill 1047-Fourth Edition
…." 1
SECTION 20.2.(c) This section becomes effective December 1, 2026, and applies 2
to claims of lien filed and instruments presented for registration on or after that date. 3
SECTION 20.3.(a) G.S. 47C-3-118 reads as rewritten: 4
"§ 47C-3-118. Association records.records and contracts. 5
… 6
(a1) A unit owner or the unit owner's authorized agent is entitled to inspect and copy, at a 7
reasonable time and location specified by the association, any contract entered into by the 8
association if the unit owner gives the association written notice of the demand at least five 9
business days before the date on which the unit owner wishes to inspect and copy and the request 10
satisfies the conditions for inspection set forth in G.S. 55A-16-02(c). A demand to inspect made 11
pursuant to this subsection shall be presumed to have been made in good faith and for a proper 12
purpose. In any action to compel the inspection and copying of documents, the court may award 13
reasonable attorneys' fees to the prevailing party. If the association does not allow a unit owner 14
who complies with this subsection to inspect and copy the requested contract, and if a court of 15
competent jurisdiction thereafter enters an order compelling the association to do so, the court 16
shall also order the association to pay the unit owner's costs, including reasonable attorneys' fees, 17
incurred to obtain the order. 18
(b) The association, upon written request, shall furnish a unit owner or the unit owner's 19
authorized agents a statement setting forth the amount of unpaid assessments and other charges 20
against a unit. The statement shall be furnished within 10 business days after receipt of the request 21
and is binding on the association, the executive board, and every unit owner. The association, its 22
managers, or its agents may charge a reasonable fee for providing statements of unpaid 23
assessments and other charges, not to excee d two hundred dollars ($200.00) per statement or 24
request, and an additional expedite expedited fee in an amount not to exceed one hundred dollars 25
($100.00) if the request is made within 48 hours of closing.item is requested to be furnished less 26
than 10 days after receipt of the request. 27
…." 28
SECTION 20.3.(b) G.S. 47F-3-118 reads as rewritten: 29
"§ 47F-3-118. Association records.records and contracts. 30
… 31
(a1) A lot owner or the lot owner's authorized agent is entitled to inspect and copy, at a 32
reasonable time and location specified by the association, any contract entered into by the 33
association if the lot owner gives the association written notice of the demand at least five 34
business days before the date on which the lot owner wishes to inspect and copy and the request 35
satisfies the conditions for inspection set forth in G.S. 55A-16-02(c). A demand to inspect made 36
pursuant to this subsection shall be presumed to have been made in good fait h and for a proper 37
purpose. In any action to compel the inspection and copying of documents, the court may award 38
reasonable attorneys' fees to the prevailing party. If the association does not allow a lot owner 39
who complies with this subsection to inspect and copy the requested contract, and if a court of 40
competent jurisdiction thereafter enters an order compelling the association to do so, the court 41
shall also order the association to pay the lot owner's costs, including reasonable attorneys' fees, 42
incurred to obtain the order. 43
(b) The association, upon written request, shall furnish to a lot owner or the lot owner's 44
authorized agents a statement setting forth the amount of unpaid assessments and other cha rges 45
against a lot. The statement shall be furnished within 10 business days after receipt of the request 46
and is binding on the association, the executive board, and every lot owner. The association, its 47
managers, or its agents may charge a reasonable fee for providing statements of unpaid 48
assessments, not to exceed two hundred dollars ($200.00) per statement or request, and an 49
additional expedite expedited fee in an amount not exceeding one hundred dollars ($100.00) if 50
General Assembly Of North Carolina Session 2025
Senate Bill 1047-Fourth Edition Page 39
the request for a statement is made w ithin 48 hours of closing.item is requested to be furnished 1
less than 10 days after receipt of the request. 2
…." 3
4
EXEMPT CERTAIN INDIVIDUALS FROM BARBER AND COSMETIC ARTS 5
LICENSING 6
SECTION 20.5.(a) G.S. 86B-32 reads as rewritten: 7
"§ 86B-32. Persons exempt from the provisions of this Article. 8
The following persons are exempt from the provisions of this Article while engaged in the 9
proper discharge of their duties: 10
(1) Persons authorized under the laws of the State to practice medicine and 11
surgery, and those working under their supervision. 12
(2) Commissioned medical or surgical officers of the United States Army or other 13
components of the Armed Forces of the United States, and those working 14
under their supervision. 15
(3) Registered nurses and licensed practical nurses and those working under their 16
supervision. 17
(4) Licensed embalmers and funeral directors and those working under their 18
supervision. 19
(5) Persons who are working in licensed cosmetic shops or beauty schools and 20
are licensed by the State Board of Cosmet ic Art Examiners pursuant to 21
Chapter 88B of the General Statutes. 22
(6) Persons who are working in barbershops and are licensed by the State Board 23
of Cosmetic Art Examiners pursuant to Chapter 88B of the General Statutes, 24
provided that those persons shall comply with G.S. 86B-31. 25
(7) Inmates under the jurisdiction of the North Carolina Department of Adult 26
Correction. 27
(8) Persons who are employed by barbershops and whose duties are expressly 28
confined to the shampooing or blow drying of hair, provided that the person 29
shall comply with G.S. 86B-31." 30
SECTION 20.5.(b) G.S. 88B-25 reads as rewritten: 31
"§ 88B-25. Exemptions. 32
The following persons are exempt from the provisions of this Chapter while engaged in the 33
proper discharge of their professional duties: 34
(1) Undertakers and funeral establishments licensed under G.S. 90-210.25. 35
(2) Persons authorized to practice medicine or surgery under Chapter 90 of the 36
General Statutes. 37
(3) Nurses licensed under Chapter 90 of the General Statutes. 38
(4) Commissioned medical or surgical officers of the United States Army, Air 39
Force, Navy, Marine Corps, Space Force, or Coast Guard. 40
(5) A person employed in a cosmetic art shop whose duties are expressly confined 41
to the shampooing or blow drying of hair, provided that the person sh all 42
comply with rules adopted by the Board relating to sanitary management of 43
cosmetic art shops.G.S. 86B-31." 44
45
ALLOW PRIVATE SWIM LESSONS IN PRIVATE POOLS 46
SECTION 21.(a) G.S. 130A-280 reads as rewritten: 47
"§ 130A-280. Scope and definitions. 48
(a) This Part provides for the regulation of public swimming pools in the State as they 49
may affect the public health and safety. This Part does not apply to any of the following: 50
General Assembly Of North Carolina Session 2025
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(1) A private pool serving a single family dwelling and used only by the residents 1
of the dwelling and their guests, dwelling, their guests, or a person providing 2
swim instruction, regardless of whether their guests or the swim instructor 3
gain use of the private pool through a sharing economy platform or pay a fee 4
for its use. In all cases in which a fee is exchanged for access to a private pool 5
serving a single family dwelling that is used only by the residents of the 6
dwelling and their guests, dwelling, their guests, or a person providing swim 7
instruction, the private pool shall be maintained in good and safe working 8
order. 9
(2) Repealed by Session Laws 2025-94, s. 17, effective October 6, 2025. 10
(3) Therapeutic pools used in physical therap y programs operated by medical 11
facilities licensed by the Department or operated by a licensed physical 12
therapist, nor to therapeutic chambers drained, cleaned, and refilled after each 13
individual use. 14
…." 15
SECTION 21.(b) G.S. 130A-39(b) reads as rewritten: 16
"(b) A local board of health may adopt a more stringent rule in an area regulated by the 17
Commission for Public Health or the Environmental Management Commission where, in the 18
opinion of the local board of health, a more stringent rule is required to protect the public health; 19
otherwise, the rules of the Commission for Public Health or the rules of the Environmental 20
Management Commission shall prevail over local board of health rules. However, a local board 21
of health may not adopt a rule concerning a privat e pool serving a single family dwelling 22
otherwise exempt from regulation pursuant to G.S. 130A-280 or a G.S. 130A-280, including 23
rules concerning the recreational or instructional use of the exempt private pool. A local board 24
of health may not adopt a rule concerning the grading, operating, and permitting of food and 25
lodging facilities as listed in Part 6 of Article 8 of this Chapter and as defined in 26
G.S. 130A-247(1), and a G.S. 130A-247(1). A local board of health may adopt rules concerning 27
wastewater collection, treatment and disposal systems which are not designed to discharge 28
effluent to the land surface or surface waters only in accordance with G.S. 130A-335(c)." 29
30
ATV RIDER RESTRICTION MODIFICATION 31
SECTION 22.(a) G.S. 20-171.15 reads as rewritten: 32
"§ 20-171.15. Age or size restrictions. 33
(a) It is unlawful for any parent or legal guardian of a person less than eight years of age 34
to knowingly permit that person to operate an all-terrain vehicle. 35
(b) Repealed by Session Laws 2015-286, s. 3.13(a), effective October 22, 2015. 36
(c) It Except as provided in subsection (c1) of this section, it is unlawful for any parent 37
or legal guardian of a person less than 16 years of age to knowingly permit that person to operate 38
an all -terrain vehicle in violation of t he Age Restriction Warning Label affixed by the 39
manufacturer as required by the applicable American National Standards Institute/Specialty 40
Vehicle Institute of America (ANSI/SVIA) design standard. 41
(c1) Safety Course Rider-Fit Exception. – Subsection (c) of this section does not apply to 42
a person less than 16 years of age operating an all -terrain vehicle if all of the following 43
requirements are met: 44
(1) The person is at least 8 years of age. 45
(2) The person is participating in, or has successfully completed, an all-terrain 46
vehicle safety course sponsored or approved by the All-Terrain Vehicle Safety 47
Institute or another all -terrain vehicle safety course approved by the 48
Commissioner of Insurance pursuant to G.S. 20-171.20. 49
(3) A course instructor certified or approved to teach a course described in 50
subdivision (2) of this subsection determines in writing that, because of the 51
General Assembly Of North Carolina Session 2025
Senate Bill 1047-Fourth Edition Page 41
person's height, weight, or physical size, the person cannot safely operate an 1
all-terrain vehicle that complies with the Age Restriction Warning Label and 2
that the all-terrain vehicle to be operated is appropriate for the person. 3
(4) The person satisfies all of the following rider-fit requirements with respect to 4
the all-terrain vehicle being operated: 5
a. Brake reach. – With hands placed in the normal operating position and 6
fingers straight out, the first joint from the tip of the middle finger 7
extends beyond the brake lever and clutch. 8
b. Leg length. – While sitting and with their feet on the pegs, the rider's 9
knee is bent at least 45 degrees. 10
c. Grip reach . – While sitting upright on the ATV with hands on the 11
handlebars and not leaning forward, the rider 's upper arm and the 12
forearm form a distinct angle. 13
d. Handlebar control. – The rider must be able to turn the handlebars from 14
lock to lock while maintaining grip on the handlebars and maintaining 15
the throttle and brake control. 16
(5) The person operates the all-terrain vehicle under the direct supervision of the 17
safety course instructor while participating in the co urse or, after successful 18
completion of the course, under the continuous visual supervision of a person 19
18 years or older, pursuant to subsection (d) of this section. 20
(6) The person complies with all other requirements of this Part, including helmet 21
and eye-protection requirements. 22
…." 23
SECTION 22.(b) G.S. 20-171.20 reads as rewritten: 24
"§ 20-171.20. Safety training and certificate. 25
Effective October 1, 2006, every all-terrain vehicle operator born on or after January 1, 1990, 26
shall possess a safety certificate indicating successful completion of an all-terrain vehicle safety 27
course sponsored or approved by the All-Terrain Vehicle Safety Institute or by another all-terrain 28
vehicle safety course approved by the Commissioner of Insurance. The North Carolina 29
Community College System is authorized to provide all-terrain vehicle safety training, approved 30
by the Commissioner, to persons less than 18 years of age. An all-terrain vehicle safety certificate 31
issued to a person less than 16 years of age may include a wr itten rider-fit determination by the 32
course instructor identifying the type or size of an all-terrain vehicle the instructor has determined 33
is appropriate for the person pursuant to G.S. 20-171.15(c1)." 34
35
PLUMBING BOARD FEE CAP CLARIFICATION 36
SECTION 23. G.S. 87-22 reads as rewritten: 37
"§ 87-22. License fee; expiration and renewal; reinstatement. 38
All persons, firms, or corporations engaged in the business of either plumbing or heating 39
contracting, or both, shall pay an annual license fee not to exceed on e hundred fifty dollars 40
($150.00). The annual fee for a piping or restricted classification license shall not exceed that for 41
a plumbing or heating license. All persons, firms, or corporations engaged in the business of fire 42
sprinkler contracting shall pay an initial application fee not to exceed seventy -five dollars 43
($75.00) and an annual license fee not to exceed three hundred dollars ($300.00). In the event the 44
Board refuses to license an applicant, the license fee deposited shall be returned by the Board to 45
the applicant. All licenses shall expire on the last day of December in each year following their 46
issuance or renewal. Persons who obtain a license by passing an examination on or after October 47
1 of any year may receive a license for the remainder of the year by paying one-half of the usual 48
license fee for that classification of license. It shall be the duty of the secretary and treasurer to 49
send by United States mail or email to every licensee registered with the Board, notice to the 50
licensee's last known address reflected on the records of the Board of the amount of fee required 51
General Assembly Of North Carolina Session 2025
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for renewal of license, the notice to be mailed at least one month in advance of the expiration of 1
the license. The Board may require payment of all unpaid annual fees before reissuing a license. 2
In the event of failure on the part of any person, firm or corporation to renew the license certificate 3
annually and pay the required fee during the month of January in each year, the Board shall 4
increase the license fee by twenty -five dollars ($25.00) to cover any additional expense 5
associated with late renewal. The Board shall require reexamination upon failure of a licensee to 6
renew license within three years after expiration. The Board may adopt regulations requiring 7
attendance at p rograms of continuing education as a condition of license renewal. A licensee 8
employed full time as a local government plumbing, heating, or mechanical inspector and holding 9
qualifications from the Code Officials Qualifications Board may renew the license at a fee not to 10
exceed twenty-five dollars ($25.00). The Board shall not charge any fee or payment associated 11
with licensing except those expressly authorized by this section." 12
13
EXTEND ANNUAL REPORTING REQUIREMENTS FOR BUSINESS ENTITIES 14
OWNED BY DEPLOYED MEMBERS OF THE ARMED FORCES 15
SECTION 24.(a) G.S. 55-16-22(a) reads as rewritten: 16
"§ 55-16-22. Annual report. 17
(a) Requirement. – Except as provided in G.S. 55-16-22.3 and in subsections (a1) and 18
(a2) of this section, each domestic corporation and each foreign corporation authorized to transact 19
business in this State shall deliver an annual report directly to the Secretary of State in electronic 20
form or in paper form as prescribed by the Secretary of State under this section." 21
SECTION 24.(b) Article 16 of Chapter 55 of the General Statutes is amended by 22
adding a new section to read: 23
"§ 55-16-22.3. Exemptions for corporations owned by deployed members of the Armed 24
Forces. 25
(a) Definitions. – As used in this section, the following terms have the following 26
meanings: 27
(1) Armed Forces. – The United States Air Force, Army, Coast Guard, Marine 28
Corps, Navy, or Space Force, or any reserve component of the foregoing. 29
(2) Deployed member. – A member of the Armed Forces who is removed from 30
his or her county of residence pursuant to an official order for a deployment 31
period that ends on or after the ninetieth day preceding the due date of the 32
annual report required by G.S. 55-16-22. 33
(b) Notwithstanding G.S. 55-16-22, an annual report is deemed timely filed if it is filed 34
by a domestic or foreign corporation (i) in which more than fifty percent (50%) of the ownership 35
interest is owned by one or more deployed members and (ii) within 90 days of the end of the 36
deployment period. The following provisions apply: 37
(1) Prior to the start of the deployment, the corporation shall file electronically 38
with the Secretary of State a sworn affidavit of deployment executed by the 39
deployed member that includes the following information: 40
a. The full name of the deployed member. 41
b. The name of the corporation and the state under whose law it is 42
incorporated. 43
c. The percentage ownership interest in the corporation currently held by 44
the deployed member. 45
d. The expected start and end dates of the deployment. 46
e. A statement either certifying that the information contained in the most 47
recently filed annual report has not changed or setting forth the 48
updated information required by G.S. 55-16-22(a3)(2) through (5). 49
(2) In the event the deployment is extended beyond the date stated in the affidavit 50
of deployment, the corporation shall file electronically with the Secretary of 51
General Assembly Of North Carolina Session 2025
Senate Bill 1047-Fourth Edition Page 43
State, within 180 days of the end date stated in the affidavit of deployment 1
filed with the Secretary of State pursuant to subdivision (1) of this subsection, 2
a sworn affidavit of extended deployment by an authorized representative of 3
the corporation that includes the following information: 4
a. The title or position in the corporation held by the affiant. 5
b. The full name of the deployed member. 6
c. The name of the corporation and the state under whose law it is 7
incorporated. 8
d. The percentage ownership interest in the corporation currently held by 9
the deployed member. 10
e. The expected end date of the extended deployment. 11
f. A statement either certifying that the information contained in the most 12
recently filed annual report has not changed or setting forth the 13
updated information required by G.S. 55-16-22(a3)(2) through (5). 14
(3) The due date of the corporation 's next annual report is th e ninetieth day 15
following the end date stated in the affidavit of deployment filed pursuant to 16
subdivision (1) of this subsection; provided, however, that if the deployment 17
is extended, the due date of the corporation's annual report is the ninetieth day 18
following the end date stated in the affidavit of extended deployment filed 19
pursuant to subdivision (2) of this subsection. 20
(4) The grounds for dissolution under G.S. 55-14-20 apply to corporations that 21
are subject to this section only if the period of delinquency for the applicable 22
ground is 180 days or more past the end date stated in the affidavit of 23
deployment filed with the Secretary of State pursuant to subdivision (1) of this 24
subsection. 25
(c) Any fees required by G.S. 55-1-22 for documents filed pursuant to subsection (b) of 26
this section are waived." 27
SECTION 25.(a) G.S. 57D-2-24 reads as rewritten: 28
"§ 57D-2-24. Annual report for Secretary of State. 29
(a) Excluding professional limited liability companies governed by G.S. 57D-2-02, 30
G.S. 57D-2-02 and except as provid ed in G.S. 57D-2-26, each LLC and each foreign LLC 31
authorized to transact business in this State must deliver to the Secretary of State for filing annual 32
reports on a form prescribed by, and in the manner required by, the Secretary of State and as 33
otherwise provided in subsection (b) of this section. Each annual report must specify the year for 34
which the report applies and provide the information required by this subsection. The information 35
must be current as of the date the limited liability company completes the report. If the 36
information in the limited liability company's most recent annual report has not changed, the 37
limited liability company may certify in its annual report that the information has not changed in 38
lieu of restating the information. 39
The following information must be included in each annual report: 40
(1) The name of the limited liability company and, in the case of a foreign LLC , 41
any different name that the foreign LLC is authorized under Article 3 of 42
Chapter 55D of the General Statutes to use to transact business in this State, 43
as provided in the foreign LLC's certificate of authority. 44
(2) In the case of a foreign LLC, the name of the jurisdiction under whose law the 45
foreign LLC is organized. 46
(3) The street address, and the mailing address if different from the street address, 47
of the limited liability company's registered office in the State, the county in 48
which the registered office is located, the name of its registered agent at that 49
office, and a statement of any change of the registered office or registered 50
agent. 51
General Assembly Of North Carolina Session 2025
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(4) The address and telephone number of its principal office. 1
(5) The names, titles, and business addresses of the limited liability company's 2
principal company officials. 3
(6) A brief description of the nature of its business. 4
…." 5
SECTION 25.(b) Article 2 of Chapter 57D of the General Statutes is amended by 6
adding a new section to read: 7
"§ 57D-2-26. Exemptions for LLCs owned by deployed members of the Armed Forces. 8
(a) Definitions. – As used in this section, the following terms have the following 9
meanings: 10
(1) Armed Forces. – The United States Air Force, Army, Coast Guard, Marine 11
Corps, Navy, or Space Force, or any reserve component of the foregoing. 12
(2) Deployed member. – A member of the Armed Forces who is removed from 13
his or her county of residence pursuant to an official order for a deployment 14
period that ends on or after the ninetieth day preceding the due date of the 15
annual report required by G.S. 57D-2-24. 16
(b) Notwithstanding G.S. 57D-2-24, an annual report is deemed timely filed if it is filed 17
by an LLC or foreign LLC (i) in which more than fifty percent (50%) of the ownership interest 18
is owned by one or more deployed members and (ii) by April 15 of the year immediately 19
following the end of the deployment period. The following provisions apply: 20
(1) Prior to the star t of the deployment, the LLC or foreign LLC shall file 21
electronically with the Secretary of State a sworn affidavit of deployment 22
executed by the deployed member that includes the following information: 23
a. The full name of the deployed member. 24
b. The name of the LLC or foreign LLC and, for a foreign LLC, any 25
different name under which the foreign LLC is authorized to transact 26
business in this State and the name of the jurisdiction under whose law 27
the foreign LLC is organized. 28
c. The percentage owne rship interest in the LLC or foreign LLC 29
currently held by the deployed member. 30
d. The expected start and end dates of the deployment. 31
e. A statement either certifying that the information contained in the most 32
recently filed annual report has not changed or setting forth the 33
updated information required by G.S. 57D-2-24. 34
(2) In the event the deployment is extended beyond the date stated in the affidavit 35
of deployment, the LLC or foreign LLC shall file electronically with the 36
Secretary of State, within 180 days of the end date stated in the affidavit of 37
deployment filed with the Secretary of State pursuant to subdivision (1) of this 38
subsection, a sworn affidavit of extended deployment by an authorized 39
representative of the corporation that includes the following information: 40
a. The title or position in the LLC or foreign LLC held by the affiant. 41
b. The full name of the deployed member. 42
c. The name of the LLC or foreign LLC and, for a foreign LLC, any 43
different name under which the foreign LLC is authorized to transact 44
business in this State and the name of the jurisdiction under whose law 45
the foreign LLC is organized. 46
d. The percentage ownership interest in the LLC or foreign LLC 47
currently held by the deployed member. 48
e. The expected end date of the extended deployment. 49
General Assembly Of North Carolina Session 2025
Senate Bill 1047-Fourth Edition Page 45
f. A statement either certifying that the information contained in the most 1
recently filed annual report has not changed or setting forth the 2
updated information required by G.S. 57D-2-24. 3
(3) The due date of the LLC's or foreign LLC's next annual report is the ninetieth 4
day following the end date stated in the affidavit of deployment filed pursuant 5
to subdivision (1) of this subsection; provided, however, that if the 6
deployment is extended, the due date of the LLC's or foreign LLC 's annual 7
report is the ninetieth day following the end date stated in the affidavit of 8
extended deployment filed pursuant to subdivision (2) of this subsection. 9
(4) The grounds for dissolution under G.S. 57D-6-06 apply to LLCs and foreign 10
LLCs that are subject to this section only if the period of delinquency for the 11
applicable ground is 180 days or more past the end date stated in the affidavit 12
of deployment filed with the Secretary of State pursuant to subdivision (1) of 13
this subsection. 14
(c) Any fees required by G.S. 57D-1-22 for documents filed pursuant to subsection (b) 15
of this section are waived." 16
SECTION 26.(a) G.S. 59-84.4 reads as rewritten: 17
"§ 59-84.4. Annual report for Secretary of State. 18
(a) Each Except as provided in G.S. 59-84.6, each registered limited liability partnership 19
and each foreign limited liability partnership authorized to transact business in this State shall 20
deliver to the Secretary of State for filing an annual report, in a form prescribed by the Secretary 21
of State, that sets forth all of the following: 22
(1) The name of the registered limited liability partnership or foreign limited 23
liability partnership and the state or country under whose law it is formed. 24
(2) The street address, and the mailing address if different from the street address, 25
of the registered office, the county in which the registered office is located, 26
and the name of its registered agent at that office in this State, and a statement 27
of any change of the registered office or registered agent, or both. 28
(3) The street address and telephone number of its principal office. 29
(4) A brief description of the nature of its business. 30
(5) The fiscal year end of the partnership. 31
If the information contained in the most recently f iled annual report has not changed, a 32
certification to that effect may be made instead of setting forth the information required by 33
subdivisions (2) through (4) of this subsection. The Secretary of State shall make available the 34
form required to file an annual report. 35
…." 36
SECTION 26.(b) Article 3B of Chapter 59 of the General Statutes is amended by 37
adding a new section to read: 38
"§ 59-84.6. Exemptions for limited liability partnerships owned by deployed members of 39
the Armed Forces. 40
(a) Definitions. – As used in this section, the following terms have the following 41
meanings: 42
(1) Armed Forces. – The United States Air Force, Army, Coast Guard, Marine 43
Corps, Navy, or Space Force, or any reserve component of the foregoing. 44
(2) Deployed member. – A member of the Armed Forces who is removed from 45
his or her county of residence pursuant to an official order for a deployment 46
period that ends on or after the ninetieth day preceding the due date of the 47
annual report required by G.S. 59-84.4. 48
(b) Notwithstanding G.S. 59-84.4, an annual report is deemed timely filed if it is filed by 49
a registered or foreign limited liability partnership (i) in which more than fifty percent (50%) of 50
General Assembly Of North Carolina Session 2025
Page 46 Senate Bill 1047-Fourth Edition
the ownership interest is owned by one or more deployed members and (ii) within 90 days of the 1
end of the deployment period. The following provisions apply: 2
(1) Prior to the start of the deployment, the registered or foreign limited liability 3
partnership shall file electronically with the Secretary of State a sworn 4
affidavit of deployment executed by the deployed member that includes the 5
following information: 6
a. The full name of the deployed member. 7
b. The name of the registered or foreign limited liability partnership and 8
the state or country under whose law it is formed. 9
c. The percentage ownership interest in the registered or foreign limited 10
liability partnership currently held by the deployed member. 11
d. The expected start and end dates of the deployment. 12
e. A statement either certifying that the information contained in the most 13
recently filed annual report has not changed or setting forth the 14
updated information required by G.S. 59-84.4(a)(2) through (5). 15
(2) In the event the deployment is extended beyond the date stated in the affidavit 16
of deployment, the registered or foreign limited liability partnership shall file 17
electronically with the Secretary of State, within 180 days of the end date 18
stated in the affidavit of deployment filed with the Secretary of State pursuant 19
to subdivision (1) of this subsection, a sworn affidavit of extended deployment 20
by an authorized representative of the registered or foreign limited liability 21
partnership that includes the following information: 22
a. The title or position in the registered or f oreign limited liability 23
partnership held by the affiant. 24
b. The full name of the deployed member. 25
c. The name of the registered or foreign limited liability partnership and 26
the state or country under whose law it is formed. 27
d. The percentage ownership interest in the registered or foreign limited 28
liability partnership currently held by the deployed member. 29
e. The expected end date of the extended deployment. 30
f. A statement either certifying that the information contained in the most 31
recently filed annual report has not changed or setting forth the 32
updated information required by G.S. 59-84.4(a)(2) through (5). 33
(3) The due date of the registered or foreign limited liability partnership's next 34
annual report is the ninetieth business day following the end date stated in the 35
affidavit of deployment filed pursuant to subdivision (1) of this subsection; 36
provided, however, that if the deployment is extended, the due date of the 37
registered or foreign limited liability partnership 's annual report is the 38
ninetieth day following the end date stated in the affidavit of extended 39
deployment filed pursuant to subdivision (2) of this subsection. 40
(4) The grounds for revocation of registration under G.S. 59-84.4(f) apply to 41
registered and foreign limited liability partnerships that are subject to this 42
section only if the period of delinquency for the applicable ground is 180 days 43
or more past the end date stated in the affidavit of deployment filed with the 44
Secretary of State pursuant to subdivision (1) of this subsection. 45
(c) Any fees required by G.S. 59-35.2 for documents filed pursuant to subsection (b) of 46
this section are waived." 47
SECTION 27. G.S. 132-1.2 reads as rewritten: 48
"§ 132-1.2. Confidential information. 49
Nothing in this Chapter shall be construed to require or authorize a public agency or its 50
subdivision to disclose any information that: 51
General Assembly Of North Carolina Session 2025
Senate Bill 1047-Fourth Edition Page 47
… 1
(12) Reveals information contained in an affidavit of deployment or an affidavit of 2
extended deployment f iled with the Secretary of State pursuant to 3
G.S. 55-16-22.3, 57D-2-26, or 59-84.6." 4
SECTION 28. The Secretary of State shall make available the form or forms needed 5
for the affidavit of deployment and affidavit of extended deployment required by this act and 6
shall take any other action necessary to allow business entities to begin filing pursuant to this act 7
on October 1, 2026. 8
SECTION 29. Sections 24 through 27 of this act become effective October 1, 2026. 9
10
CLARIFY EXEMPTION FOR STRETCHING SERVICES AT M ASSAGE AND 11
BODYWORK THERAPY ESTABLISHMENTS 12
SECTION 29.2.(a) G.S. 90-622 reads as rewritten: 13
"§ 90-622. Definitions. 14
The following definitions apply in this Article: 15
… 16
(1a) Active stretching. – The provision by a practitioner of resistance or guidance 17
while a client engages the client's own muscles to move a p art of the client's 18
body through a range of motion. 19
(1b) Active-assisted stretching. – A combination of passive stretching and active 20
stretching. 21
(1a)(1c) Board. – The North Carolina Board of Massage and Bodywork Therapy. 22
… 23
(4b) Passive stretching. – The movement by a practitioner of a part of a client 's 24
body through a range of motion without muscular effort by the client. 25
… 26
(7) Stretching services. – The provision to a client of passive stretching, ac tive 27
stretching, or active-assisted stretching. Stretching services do not include any 28
of the following: 29
a. Effleurage, petrissage, or tapotement. 30
b. Deep tissue manipulation. 31
c. Myofascial release. 32
d. Any other system of activity applied to the soft tissues of the human 33
body within the meaning of subdivision (3) of this section." 34
SECTION 29.2.(b) G.S. 90-624 is amended by adding a new subdivision to read: 35
"(9) The provision of stretching services by a person who provides only stretching 36
services, as provided in G.S. 90-624.1." 37
SECTION 29.2.(c) Article 36 of Chapter 90 of the General Statutes is amended by 38
adding a new section to read: 39
"§ 90-624.1. Stretching services. 40
(a) Notwithstanding G.S. 90-622(3)a., a person who provides only stretching services is 41
not required to be licensed under this Article with respect to the provision of those stretching 42
services. 43
(b) A massage and bodywork therapy establishment may employ or contract with one or 44
more persons to provide stretching services. This subsection applies regardless of whether a 45
person provides stretching services as an employee of the establishment or as an independent 46
contractor. 47
(c) The license of a massage and bodywork therapy establishment does not extend any 48
authorization to practice massage and bodywork therapy to a person who provides only stretching 49
services at the establishment, and the person is not authorized to practice massage and bodywork 50
therapy pursuant to the establishment's license. 51
General Assembly Of North Carolina Session 2025
Page 48 Senate Bill 1047-Fourth Edition
(d) Nothing in this section shall be construed to do any of the following: 1
(1) Authorize a person who is not licensed under this Article to practice massage 2
and bodywork therapy. 3
(2) Alter, limit, or expand the definition of massage and bodywork therapy in 4
G.S. 90-622(3) or the practice of massage and bodywork therapy under this 5
Article. 6
(3) Alter or limit the ability of a person not licensed under this Article to provide 7
stretching se rvices outside of a licensed massage and bodywork therapy 8
establishment. 9
(4) Affect, limit, or impair any civil remedy otherwise available to a client under 10
any other provision of law." 11
SECTION 29.2.(d) G.S. 90-632.16 reads as rewritten: 12
"§ 90 -632.16. Un licensed massage and bodywork therapy prohibited at massage and 13
bodywork therapy establishments. 14
A massage and bodywork therapy establishment shall not employ or contract with any person 15
in this State to provide massage and bodywork therapy unless that person holds a current license 16
to practice massage and bodywork therapy issued pursuant to this Article. This section does not 17
prohibit a massage and bodywork therapy establishment from employing or contracting with a 18
person to provide only stretching services as provided in G.S. 90-624.1, and for purposes of this 19
section, a person who provides only stretching services is not a person employed or contracted 20
to provide massage and bodywork therapy." 21
22
LIMIT LOCAL GLAZING AND TRANSPARENCY REQUIREMENTS 23
SECTION 29.3.(a) Article 7 of Chapter 160D of the General Statutes is amended by 24
adding a new section to read: 25
"§ 160D-702.1. Glazing and transparency limitations. 26
(a) Definitions. – The following definitions apply in this section: 27
(1) Glazing requirement. – Any zoning regulation, development regulation, 28
design standard, or permitting requirement for windows, doors, storefront 29
glass, glass block, transparent or translucent panels, faux windows, or similar 30
facade treatments intended to satisfy a transparency or fa cade-opening 31
requirement. 32
(2) Ground-floor facade area. – The exterior wall area of a building measured 33
from grade to 10 feet above grade, excluding loading docks, service bays, 34
mechanical areas, emergency exits, vehicular doors, and other functional areas 35
that are not reasonably treated as storefront facade. 36
(b) General Limitation. – No local government may adopt or enforce a glazing 37
requirement that requires glazing, transparency, windows, doors, storefront glass, faux windows, 38
or other transparent or translucent facade materials to exceed thirty -five percent (35%) of the 39
ground-floor facade area of a commercial or mixed-use building. 40
(c) Limitation for Non -Storefront Uses. – For portions of a commercial o r m ixed-use 41
building used primarily for non-storefront purposes, no local government may adopt or enforce 42
a glazing requirement that requires glazing or transparency to exceed twenty percent (20%) of 43
the ground-floor facade area. Non-storefront uses include all of the following: 44
(1) Religious assembly or sanctuary space. 45
(2) Medical or dental examination, treatment, or healthcare services. 46
(3) Educational instruction or counseling. 47
(4) Civic or nonprofit services. 48
(5) Funeral services. 49
(6) Lodge or meeting hall use. 50
(7) Storage or back-of-house operations. 51
General Assembly Of North Carolina Session 2025
Senate Bill 1047-Fourth Edition Page 49
(8) Other institutional, assembly, or service uses not primarily operated as walk-in 1
retail, restaurant, bar, entertainment, or commercial storefront uses. 2
(d) Voluntary Glazing. – The limitations in subsections (b) and (c) of this section apply 3
only to glazing or transparency required by a local government. Nothing in this section limits 4
glazing voluntarily provided by an owner, developer, architect, or tenant, except that a local 5
government may not condition the approval of a development permit, special use permit, 6
conditional use permit, variance, or other development approval upon the voluntary provision of 7
glazing in excess of the limits in this section. 8
(e) Exceptions. – This section does not apply to or affect any of the following: 9
(1) The North Carolina Building Code, including emergency egress, accessibility, 10
or energy efficiency requirements. 11
(2) The North Carolina Fire Code. 12
(3) Floodplain or floodproofing requirements. 13
(4) Requirements imposed by State or federal law. 14
(5) Property located within a local historic district established under 15
G.S. 160D-944 or an individually designated local historic landmark 16
established under Article 9 of this Chapter. 17
(6) Property subject to review by a local historic preservation commission for a 18
certificate of appropriateness. 19
(7) Property subject to a federal or State historic preservation review requirement, 20
including a requirement related to the use of federal or State historic tax 21
credits, grants, or funding. 22
(8) State or federal requirements for airport safety, military installation safety, or 23
other public safety requirements." 24
SECTION 29.3.(b) This section becomes ef fective July 1, 2026, and any 25
development regulation that is inconsistent with G.S. 160D-702.1, as enacted by this section, on 26
or after that date is void and unenforceable to the extent of the inconsistency. This section does 27
not affect the validity of a d evelopment approval issued, or an application for a development 28
approval submitted, before the effective date of this section. 29
30
FURTHER PROHIBIT PROPERTY RESTRICTIONS ON FLYING THE AMERICAN 31
AND NORTH CAROLINA FLAG 32
SECTION 29.4.(a) G.S. 47C-3-121 reads as rewritten: 33
"§ 47C-3-121. American and State flags and political sign displays. 34
Notwithstanding any provision in any declaration of covenants, no restriction on the use of 35
land shall be construed to: 36
(1) Regulate or prohibit the display of the flag of the United States or North 37
Carolina, of a size no greater than four feet by six feet, which is displayed in 38
accordance with or in a manner consistent with the patriotic customs set forth 39
in 4 U.S.C. §§ 5-10, as amended, governing the display and use of the flag of 40
the United States unless:States. 41
a. For restrictions registered prior to October 1, 2005, the restriction 42
specifically uses the following terms: 43
1. Flag of the United States of America; 44
2. American flag; 45
3. United States flag; or 46
4. North Carolina flag. 47
b. For restrictions registered on or after October 1, 2005, the restriction 48
shall be written on the first page of the instrument or conveyance in 49
print that is in boldface type, capital letters, and no smaller than the 50
largest print used elsewhere in the instrument or conveyance. The 51
General Assembly Of North Carolina Session 2025
Page 50 Senate Bill 1047-Fourth Edition
restriction shall be construed to regulate or prohibit the display of the 1
United States or North Carolina flag only if the restriction specifically 2
states: "THIS DOCUMENT REGULATES OR PROHIBITS THE 3
DISPLAY OF THE FLAG OF THE UNITED STATES OF 4
AMERICA OR STATE OF NORTH CAROLINA". 5
This subdivision shall apply to owners of property who display the flag of the 6
United States or North Carolina on property owned exclusively by them and 7
does not apply to common areas, easements, ri ghts-of-way, or other areas 8
owned by others. 9
…." 10
SECTION 29.4.(b) G.S. 47F-3-121 reads as rewritten: 11
"§ 47F-3-121. American and State flags and political sign displays. 12
Notwithstanding any provision in any declaration of covenants, no restriction on the use of 13
land shall be construed to: 14
(1) Regulate or prohibit the display of the flag of the United States or North 15
Carolina, of a size no greater than four feet by six feet, which is displayed in 16
accordance with or in a manner consistent with the patriotic customs set forth 17
in 4 U.S.C. §§ 5-10, as amended, governing the display and use of the flag of 18
the United States unless:States. 19
a. For restrictions registered prior to October 1, 2005, the restriction 20
specifically uses the following terms: 21
1. Flag of the United States of America; 22
2. American flag; 23
3. United States flag; or 24
4. North Carolina flag. 25
b. For restrictions registered on or after October 1, 2005, the restriction 26
shall be written on the first page of the instrument or conveyance in 27
print that is in boldface type, capital letters, and no smaller than the 28
largest print used elsewhere in the inst rument or conveyance. The 29
restriction shall be construed to regulate or prohibit the display of the 30
United States or North Carolina flag only if the restriction specifically 31
states: "THIS DOCUMENT REGULATES OR PROHIBITS THE 32
DISPLAY OF THE FLAG OF THE UNITE D STATES OF 33
AMERICA OR STATE OF NORTH CAROLINA". 34
This subdivision shall apply to owners of property who display the flag of the 35
United States or North Carolina on property owned exclusively by them and 36
does not apply to common areas, easements, rights -of-way, or other areas 37
owned by others. 38
…." 39
SECTION 29.4.(c) This section is effective when it becomes law. 40
41
SEVERABILITY AND EFFECTIVE DATE 42
SECTION 30.(a) If any provision of this act or its application is held invalid, the 43
invalidity does not affect other provisions or applications of this act that can be given effect 44
without the invalid provisions or application and, to this end, the provisions of this a ct are 45
severable. 46
SECTION 30.(b) Sections 1 through 4 of this act become effective July 1, 2026. 47
Except as otherwise provided, the remainder of this act is effective when it becomes law. 48