Create the Office of Engineering and Codes.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 700

Short Title: Create the Office of Engineering and Codes. (Public)
Sponsors: Senators Jarvis, Lazzara, and Sawrey (Primary Sponsors).
Referred to: Rules and Operations of the Senate
March 26, 2025
*S700-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO CREATE THE OFFICE OF ENGINEERI NG AND CODES WITHIN THE 2
DEPARTMENT OF LABOR AND TRANSFER VARIOUS COUNCILS AND BOARDS 3
TO THE OFFICE OF ENGINEERING AND CODES. 4
The General Assembly of North Carolina enacts: 5
6
PART I. CREATION OF THE OFFICE OF ENGINE ERING AND CODES AND 7
CONFORMING CHANGES TO THE OFFICE OF THE STATE FIRE MARSHAL 8
SECTION 1.1.(a) Chapter 95 of the General Statutes is amended by adding a new 9
article to read: 10
"Article 24. 11
"Office of Engineering and Codes. 12
"§ 95-280. Office of Engineering and Codes. 13
(a) The Office of Engineering and Codes is created within the Department of Labor and 14
the Office shall exercise its powers and duties independently of the Department. The Department 15
of Labor shall provide clerical and professional services to the Office of Engineering and Codes 16
for the purpose of carrying out its powers and duties under this Article and the laws of this State. 17
For purposes of this section, the phrase "clerical and professional services " includes, but is not 18
limited to, budgetary, human resources, information technology, and legal. 19
(b) The Office of Engineering and Codes shall be responsible for all of the following: 20
(1) Building Code Council and Residential Code Council, Article 9 of Chapter 21
143 of the General Statutes. 22
(2) North Carolina Manufactured Housing Board – Manufactured Home 23
Warranties, Article 9A of Chapter 143 of the General Statutes. 24
(3) Uniform Standards Code for Manufactured Homes, Article 9B of Chapter 143 25
of the General Statutes. 26
(4) North Carolina Code Officials Qualification Board, Article 9C of Chapter 143 27
of the General Statutes. 28
(5) North Carolina Home Inspector Licensure Board, Article 9F of Chapter 143 29
of the General Statutes. 30
(6) Engineering and Building Codes Division. 31
(c) The "State Engineer," as that term is used in this Article and elsewhere in the General 32
Statutes, shall be the head of the Office of Engineering and Codes and shall be a person appointed 33
by the Commissioner of Labor subject to confirmation by the General Assembly by joint 34
resolution. The State Engineer shall be a person other than the Commissioner of Labor and shall 35
serve a three-year term. If a vacancy arises or exists pursuant to this subsection when the General 36
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 700-First Edition
Assembly is not in session, the Commissioner of Labor may appoint a State Engineer to serve on 1
an interim basis pending confirmation by the General Assembly. For the purposes of this 2
subsection, the General Assembly is not in session only (i) prior to conven ing of the Regular 3
Session, (ii) during any adjournment of the Regular Session for more than 10 days, and (iii) after 4
sine die adjournment of the Regular Session. 5
(d) The salary of the State Engineer shall be set by the General Assembly in the Current 6
Operations Appropriations Act. In addition to the salary set by the General Assembly in the 7
Current Operations Appropriations Act, the State Engineer shall receive as longevity pay in an 8
amount equal to four and eight-tenths percent (4.8%) of the annual salary set forth in the Current 9
Operations Appropriations Act payable monthly after five years of service, and nine and 10
six-tenths percent (9.6%) after 10 years of service. For purposes of this subsection, the term 11
"service" means service as the State Engineer. 12
"§ 95-281. Execution of laws; adopt rules to enforce laws. 13
The State Engineer shall see that all laws the State Engineer is responsible for administering 14
are faithfully executed and, to that end, the State Engineer is authorized to adopt rules in 15
accordance with Chapter 150B of the General Statutes in order to enforce, carry out, and make 16
effective the provisions of those laws. The State Engineer is also authorized to adopt such further 17
rules not contrary to those laws that will prevent persons subject to the State Engineer's regulatory 18
authority from engaging in practices injurious to the public. 19
"§ 95-282. Public office; inspection of records. 20
The Office of Engineering and Codes shall be a public office and the records, reports, books, 21
and papers thereof on file therein shall be accessible to the inspection of the public, except that 22
the records compiled as a part of an investigation for the crimes, shall not be considered as public 23
records and may be made available to the public only upon an order of a court of competent 24
jurisdiction. Provided that such records shall upon request be made available to the district 25
attorney of any district if the same concerns persons or investigat ions in the district attorney 's 26
district. 27
"§ 95-283. Hearings and investigations. 28
All hearings and investigations undertaken by the Office of Engineering and Codes as 29
required by this Article may be conducted by the State Engineer personally or by one or more 30
employees in the Office of Engineering and Codes or, if requested by the State Engineer, one or 31
more employees in the Department of Labor. If the State Engineer or any investigator appointed 32
to conduct the investigations is of the opinion that there is evidence to charge any person or 33
persons with a criminal violation, the State Engineer may arrest with warrant or cause the person 34
or persons to be arrested . All hearings shall, unless otherwise specifically provided, be held in 35
accordance with this Article and Article 3A of Chapter 150B of the General Statutes and at a 36
time and place designated in a written notice given by the State Engineer to the person cited to 37
appear. The notice shall state the subject of inquiry and the specific charges, if any. 38
"§ 95-284. Designated hearing officers. 39
In any contested case involving the Office of Engineering and Codes, the State Engineer may 40
designate a member of the State Engineer 's staff to serve as a hearing officer . When the State 41
Engineer is unable or elects not to hear a contested case and elects not to designate a hearing 42
officer to hear a contested case, the State Engineer shall apply to the Director of the Office of 43
Administrative Hearings for the designation o f an administrative law judge to preside at the 44
hearing of a contested case. Upon receipt of the application, the Director shall, without undue 45
delay, assign an administrative law judge to hear the case. 46
"§ 95-285. Civil penalties or restitution for violations; administrative procedure. 47
(a) This section applies to any person who is subject to licensure by the Office of 48
Engineering and Codes. 49
(b) Whenever the State Engineer finds a violation of any of the provisions of this Article, 50
the State Engineer may, in addition to or instead of suspending or revoking the license issued by 51
General Assembly Of North Carolina Session 2025
Senate Bill 700-First Edition Page 3
the State Engineer, order the payment of a monetary penalty as provided in subsection (c) of this 1
section or petition the Superior Court of Wake County for an order directing p ayment of 2
restitution as provided in subsection (d) of this section, or both. Each day during which a violation 3
occurs constitutes a separate violation. 4
(c) If the State Engineer orders the payment of a monetary penalty pursuant to subsection 5
(b) of this section, the penalty shall not be less than one hundred dollars ($100.00) nor more than 6
one thousand dollars ($1,000). In determining the amount of the penalty, the State Engineer shall 7
consider the degree and extent of harm caused by the violation, the amount of money that inured 8
to the benefit of the violator as a result of the violation, whether the violation was committed 9
willfully, and the prior record of the violator in complying or failing to comply with laws, rules, 10
or orders applicable to the violat or. The clear proceeds of the penalty shall be remitted to the 11
Civil Penalty and Forfeiture Fund in accordance with G.S. 115C-457.2. Payment of the civil 12
penalty under this section shall be in addition to payment of any other penalty for a violation of 13
the criminal laws of this State. 14
(d) Upon petition of the State Engineer, the court may order the person who committed a 15
violation of this Article to make restitution in an amount that would make whole any person 16
harmed by the violation. The petition may be made at any time and also in any appeal of the State 17
Engineer's order. Restitution to any State agency for extraordinary administrative expenses 18
incurred in the investigation and hearing of the violation may also be ordered by the court in such 19
amount that would reimburse the agency for the expenses. 20
(e) Nothing in this section shall prevent the State Engineer from negotiating a mutually 21
acceptable agreement with any person as to the status of the person 's license or as to any civil 22
penalty or restitution. 23
(f) Unless otherwise specifically provided for, all administrative proceedings under this 24
Article are governed by Chapter 150B of the General Statutes. Appeals of the State Engineer's 25
orders under this section shall be governed by G.S. 95-286. 26
"§ 95-286. Court review of orders and decisions. 27
(a) Any order or decision made, issued, or executed by the State Engineer is subject to 28
review in the Superior Court of Wake County on petition by any person aggrieved filed within 29
30 days from the date of the delivery of a copy of the order or decision made by the State Engineer 30
upon the person. A copy of the petition for review as filed with and certified by the clerk of the 31
Superior Court of Wake County shall be served upon the State Engineer within five days after 32
the filing thereof. If the petition for review is not filed within 30 days, the parties aggrieved shall 33
be deemed to have waived the right to have the merits of the order or decision reviewed and there 34
shall be no trial of the merits thereof by any court to which application may be made by petition 35
or otherwise, to enforce or restrain the enforcement of the same. 36
(b) The State Engineer shall within 30 days, unless the time is extended by order of court, 37
after the service of the copy of the petition for review as provided in subsection (a) of this section, 38
prepare and file with the clerk of the Superior Court of Wake County a complete transcript of the 39
record of the hearing, if any, and a true copy of the order or decision duly certified. The order or 40
decision of the State Engineer if supported by substantial evidence shall be presumed to be 41
correct and proper. The court may change the place of hearing (i) upon consent of the parties, (ii) 42
when the convenience of witnesses and the ends of justice would be promoted by the change, or 43
(iii) when the judge has at any time been interested as a party or counsel. The cause shall be heard 44
by the trial judge as a civil case upon transcript of the record for review of findings of fact and 45
errors of law only. It shall be t he duty of the trial judge to hear and determine the petition with 46
all convenient speed and, to this end, the cause shall be placed on the calendar for the next 47
succeeding term for hearing ahead of all other cases except those already given priority by law . 48
If, on the hearing before the trial judge, it shall appear that the record filed by the State Engineer 49
is incomplete, the trial judge may, by appropriate order, direct the State Engineer to certify any 50
General Assembly Of North Carolina Session 2025
Page 4 Senate Bill 700-First Edition
or all parts of the record omitted. The trial judge shall have jurisdiction to affirm or to set aside 1
the order or decision of the State Engineer and to restrain the enforcement thereof. 2
(c) Appeals from all final orders and judgments entered by the superior court in reviewing 3
the orders and decisions of th e State Engineer may be taken to the appellate division of the 4
General Court of Justice by any party to the action as in other civil cases. 5
(d) The commencement of proceedings under this section shall not operate as a stay of 6
the State Engineer's order or decision, unless otherwise ordered by the court. 7
"§ 95-287. Original documents and certified copies as evidence. 8
Every document executed by the State Engineer, in pursuance of any authority conferred on 9
the State Engineer by law and sealed with the seal of office, may be used as evidence and may 10
be recorded in the proper recording offices, in the same manner and with like effect as a deed 11
regularly acknowledged or proved before an officer authorized by law to take the probate of 12
deeds, and all copie s of papers in the Office of Engineering and Codes certified by the State 13
Engineer and authenticated by the official seal shall be evidence as the original. 14
"§ 95-288. Court appearances. 15
Whenever the State Engineer or any employee of the Office of Engine ering and Codes is 16
requested or subpoenaed to testify as an expert witness in any civil or administrative action, the 17
party making the request or filing the subpoena and on whose behalf the testimony is given shall, 18
upon receiving a statement of the cost f rom the State Engineer , reimburse the Office of 19
Engineering and Codes for the actual time and expenses incurred by the State Engineer in 20
connection with the testimony. 21
"§ 95-289. Seal. 22
The State Engineer, with the approval of the Governor, shall devise a seal, with suitable 23
inscription, for the office, a description of which, with the certificate of approval by the Governor, 24
shall be filed in the Office of the Secretary of State, with an impression thereof, which seal shall 25
thereupon become the seal of the Office of Engineering and Codes . The seal may be renewed 26
whenever necessary. 27
"§ 95-290. Oaths. 28
The State Engineer, or the State Engineer's designee, in the Office of Engineering and Codes 29
shall administer all oaths required in the discharge of the State Engineer's official duty. 30
"§ 95-291. Manufactured housing; restraining orders; criminal convictions; license 31
surrenders. 32
(a) Restraining Order. – Whenever it appears to the State Engineer that any person has 33
violated, is violating, or threatens to violate any provision of Article 9A of Chapter 143 of the 34
General Statutes , North Carolina Manufactured Housing Board – Manufactured Home 35
Warranties, the State Engineer may apply to the superior court of any county in which the 36
violation has occurred, is occurring, or may occur for a restraining order and injunction to restrain 37
violation. If upon application the court finds that any provision of Article 9A of Chapter 143 of 38
the General Statutes has been violated, is being violated, or a violation thereof is threatened, the 39
court shall issue an order restraining and enjoining such violations and relief may be granted 40
regardless of whether criminal prosecution is instituted under any provision of law. 41
(b) Criminal Conviction. – The conviction in any court of competent jurisdiction of any 42
licensee for any criminal violation of Article 9A of Chapter 143 of the General Statutes 43
automatically has the effect of suspending the license of that person until the license is reinstated 44
by the North Carolina Manufactured Housing Board. As used in this subsection, "conviction" 45
includes an adjudication of guilt, a plea of guilty, and a plea of nolo contendere. 46
(c) License Surrenders. – When a person or entity licensed under Article 9A of Chapter 47
143 of the General Statutes is accused of any act, omission, or misconduct that would subject the 48
licensee to suspension or revocation, the licensee, with the consent and approval of the State 49
Engineer, may surrender the license for a period of time established by the State Engineer. A 50
General Assembly Of North Carolina Session 2025
Senate Bill 700-First Edition Page 5
person or entity who surrenders a license shall not thereafter be eligible for or submit any 1
application for licensure during the period of license surrender. 2
"§ 95-292. Notification of criminal convictions and changes of address; service of notice. 3
(a) Every applicant for a license issued by the State Engineer shall inform the State 4
Engineer of the applicant's residential address and provide the applicant's email address to which 5
the State Engineer can send electronic notifications and other messages. Every licensee shall give 6
written notification to the State Engineer of any change of the licensee 's residential or email 7
address within 10 business days after the lice nsee moves into the licensee 's new residence or 8
obtains a different email address. This requirement applies if the change of residential address is 9
by governmental action and there has been no actual change of residence location, in which case 10
the licensee shall notify the State Engineer within 10 business days after the effective date of the 11
change. A violation of this subsection is not a ground for revocation, suspension, or nonrenewal 12
of the license or for the imposition of any other penalty by the State Engineer, though a licensee 13
who violates this subsection shall pay an administrative fee of fifty dollars ($50.00) to the State 14
Engineer. Notification under this subsection may be accomplished by submitting written 15
notification directly to the State Engineer or by using any online services approved by the State 16
Engineer for this purpose. 17
(b) If a licensee is convicted in any court of competent jurisdiction for any crime or 18
offense other than a motor vehicle infraction, the licensee shall notify the State Engineer in 19
writing of the conviction within 10 days after the date of the conviction. As used in this 20
subsection, "conviction" includes an adjudication of guilt, a plea of guilty, or a plea of nolo 21
contendere. 22
(c) Notwithstanding any other provision of la w, whenever the State Engineer is 23
authorized or required to give any notice under this Article, the notice may be given personally 24
or by sending the notice by first -class mail to the licensee at the address that the licensee has 25
provided to the State Engineer under subsection (a) of this section. The giving of notice by mail 26
under this subsection is complete upon the expiration of four days after the deposit of the notice 27
in the post office. Proof of the giving of notice by mail may be made by the certifica te of any 28
employee of the Department of Labor. 29
"§ 95-293. Advisory committees. 30
The State Engineer may create and appoint committees, each of which shall consist of no 31
more than 13 members unless otherwise provided by law. The members of any committee shal l 32
serve at the pleasure of the State Engineer and may be paid per diem and necessary travel and 33
subsistence expenses within the limits of appropriations made by the General Assembly and in 34
accordance with G.S. 138-5. Per diem, travel, and subsistence payme nts to members of 35
committees that are created in connection with federal programs shall be paid from federal funds 36
unless otherwise provided by law. For purposes of this section, the term "committee" means a 37
collective body that consults with and advises the State Engineer or the State Engineer's designee 38
in detailed technical areas or as representative of citizen advice in specific areas of interest. 39
"§ 95-294. State Engineer to supervise local inspectors. 40
The State Engineer shall exercise general supervision over local inspectors or local 41
investigators related to matter s under the jurisdiction of the Office of Engineering and Codes , 42
except as otherwise provided by law. Whenever the State Engineer has reason to believe that the 43
local inspectors or local investigators are not doing their duty, the State Engineer, or the State 44
Engineer's designee, shall make special trips of inspection or investigation and take proper steps 45
to have all the provisions of the law relative to the inspection or investigation enforced." 46
SECTION 1.1.(b) G.S. 58-78A-1, as amended by Section 5.2(p) of S.L. 2024 -49, 47
reads as rewritten: 48
"§ 58-78A-1. Office of the State Fire Marshal. 49
… 50
(b) The Office of the State Fire Marshal shall be responsible for all of the following: 51
General Assembly Of North Carolina Session 2025
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(1) State Fire and Rescue Commission, Article 78 of this Chapter. 1
(2) Investigation of Fires and Inspection of Premises, Article 79 of this Chapter. 2
(3) State Volunteer Fire Department, Article 80 of this Chapter. 3
(4) Pyrotechnics Training and Permitting, Article 82A of this Chapter. 4
(5) Management of Aqueous Film-Forming Foams, Article 82B of this Chapter. 5
(6) Local Firefighters' Relief Funds, Article 84 of this Chapter. 6
(7) Statewide Firefighters' Relief Fund, Article 85 of this Chapter. 7
(8) State Fire Protection Grant Fund, Article 85A of this Chapter. 8
(9) North Carolina Firefighters' and Rescue Squad Workers' Pension Fund, 9
Article 86 of this Chapter. 10
(9a) Firefighters' Cancer Insurance Program, Article 86A o f Chapter 58 of the 11
General Statutes. 12
(10) Volunteer Safety Workers Assistance, Article 87 of this Chapter. 13
(11) Rescue Squad Workers' Relief Fund, Article 88 of this Chapter. 14
(12) Building Code Council and Residential Code Council, Article 9 of Chapter 15
143 of the General Statutes. 16
(13) North Carolina Manufactured Housing Board -Manufactured Home 17
Warranties, [Article 9A of Chapter 143 of the General Statutes]. 18
(14) Uniform Standards Code for Manufactured Homes, Article 9B of this Chapter 19
[Article 9B of Chapter 143 of the General Statutes]. 20
(15) North Carolina Code Officials Qualification Board, Article 9C of this Chapter 21
[Article 9C of Chapter 143 of the General Statutes]. 22
(16) North Carolina Home Inspector Licensure Board, Article 9F of this Chapter 23
[Article 9F of Chapter 143 of the General Statutes]. 24
(17) Engineering and Building Codes Division in the Department of Insurance. 25
(18) Risk Management Division in the Department of Insurance. 26
(19) Community Risk Reduction Division in the Department of Insurance. 27
(20) Ratings and Inspections. 28
(21) Grants and Governmental Services. 29
…." 30
SECTION 1.2. G.S. 143A-78 is repealed. 31
SECTION 1.3. G.S. 58-78A-12 is repealed. 32
33
PART II. INSURANCE REGULATORY FUND CHANGES RELATED TO OFFICE OF 34
ENGINEERING AND CODES CREATION 35
SECTION 2.1. G.S. 58-6-25 reads as rewritten: 36
"§ 58-6-25. Insurance regulatory charge. 37
(a) Charge Levied. – There is levied on each insurance company, other than a captive 38
insurance company, an annual charge for the purposes stated in subsection (d) of this se ction. 39
The charge levied in this section is in addition to all other fees and taxes. The percentage rate of 40
the charge is established pursuant to subsection (b) of this section and is applied to the company's 41
premium tax liability for the taxable year. In determining an insurance company's premium tax 42
liability for a taxable year, the following shall be disregarded: 43
(1) Additional taxes imposed by G.S. 105-228.8. 44
(2) Repealed by Session Laws 2008 -134, s. 67(a), as amended by Session Laws 45
2009-445, s. 44, ef fective for taxable years beginning on or after January 1, 46
2008. 47
(3) Any tax credits for guaranty or solvency fund assessments under 48
G.S. 105-228.5A or G.S. 97-133(a). 49
(4) Any tax credits allowed under Chapter 105 of the General Statutes other than 50
tax payments made by or on behalf of the taxpayer. 51
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Senate Bill 700-First Edition Page 7
(b) Rates. – The rate of the charge for each taxable year shall be six and one-half percent 1
(6.5%). When the Department prepares its budget request for each upcoming fiscal year, the 2
Department shall propose a pe rcentage rate of the charge levied in this section. The Governor 3
shall submit that proposed rate to the General Assembly each fiscal year. It is the intent of the 4
General Assembly that the percentage rate not exceed the rate necessary to generate funds 5
sufficient to defray the estimated cost of the operations of the Department for each upcoming 6
fiscal year, including a reasonable margin for a reserve that shall be used to provide for 7
unanticipated expenditures requiring a budget adjustment as authorized by G.S. 143C-6-4. In 8
calculating the amount of the reserve, the General Assembly shall consider all relevant factors 9
that may affect the cost of operating the Department or a possible unanticipated increase or 10
decrease in North Carolina premiums or other charge revenue. 11
(c) Returns; When Payable. – The charge levied on each insurance company is payable 12
at the time the insurance company remits its premium tax. If the insurance company is required 13
to remit installment payments of premiums tax under G.S. 105-228.5 for a taxable year, it shall 14
also remit installment payments of the charge levied in this section for that taxable year at the 15
same time and on the same basis as the premium tax installment payments. Each installment 16
payment shall be equal to at least th irty-three and one -third percent (33.3%) of the insurance 17
company's regulatory charge liability incurred in the immediately preceding taxable year. 18
Every insurance company shall, on or before the date the charge levied in this section is due, 19
file a return on a form prescribed by the Secretary of Revenue. The return shall state the 20
company's total North Carolina premiums or presumed premiums for the taxable year and shall 21
be accompanied by any supporting documentation that the Secretary of Revenue may by ru le 22
require. 23
(d) Use of Proceeds. – The Insurance Regulatory Fund is created as an interest -bearing 24
special fund to which the proceeds of the charge levied in this section and all fees collected under 25
Articles 69 through 71 of this Chapter and under Articles 9 and 9C of Chapter 143 of the General 26
Statutes shall be credited. Moneys in the Fund may be spent only pursuant to appropriation by 27
the General Assembly, and the Fund is subject to the provisions of the State Budget Act. All 28
money credited to the Fund shall be used to reimburse the General Fund for the following: 29
(1) Money appropriated to the Department of Insurance to pay its expenses 30
incurred in regulating the insurance industry, including the captive insurance 31
industry, and other industries in this State. 32
(2) Money appropriated to State agencies to pay the expenses incurred in 33
regulating the insurance industry, in certifying statewide data processors 34
under Article 11A of Chapter 131E of the General Statutes, and in purchasing 35
reports of patient data fr om statewide data processors certified under that 36
Article. 37
(3) Money appropriated to the Department of Revenue to pay the expenses 38
incurred in collecting and administering the taxes on insurance companies 39
levied in Article 8B of Chapter 105 of the General Statutes. 40
(4) Money appropriated for the office of Health Insurance Smart NC under 41
G.S. 143-730 to pay the actual costs of administering the program. 42
(5) Money appropriated to the Department of Insurance for the implementation 43
and administration of independent external review procedures required by Part 44
4 of Article 50 of this Chapter. 45
(6) Money appropriated to the Department of Justice to pay its expenses incurred 46
in representing the Department of Insurance in its regulation of the insurance 47
industry and other related programs and industries in this State that fall under 48
the jurisdiction of the Department of Insurance. 49
(6a) Money appropriated to the Department of Justice to pay its expenses incurred 50
in representing the Department of Labor in related programs and industries in 51
General Assembly Of North Carolina Session 2025
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this State that fall under the jurisdiction of the Office of Engineering and 1
Codes. 2
(7) Money appropriated to the Department of Insurance to pay its expenses 3
incurred in connection with providing staff support for State boards and 4
commissions, including the North Carolina Manufactured Housing Board, 5
State Fire and Rescue Commission, North Carolina Building Code Council, 6
North Carolina Code Officials Qualification Board, Public Officers and 7
Employees Liability Insurance Commission, North Carolina Home Inspector 8
Licensure Board, and the Volunteer Safety Workers' Compensation Board. 9
(7a) Money appropriated to the Department of Labor to pay its expenses incurred 10
in connection with providing staff support for State boar ds, councils, and 11
divisions, that fall under the jurisdiction of the Office of Engineering and 12
Codes. 13
(8) Money appropriated to the Department of Insurance to pay its expenses 14
incurred in connection with continuing education programs under Article 33 15
of this Chapter and in connection with the purchase and sale of copies of the 16
North Carolina State Building Code.Chapter. 17
(8a) Money appropriated to the Department of Labor to pay its expenses incurred 18
in connection with continuing education programs and the purchase and sale 19
of copies of the North Carolina State Building Code. 20
(9) Money appropriated to the Department of Insurance for the regulation of the 21
professional employer organization industry pursuant to Article 89A of 22
Chapter 58 of the General Statutes.this Chapter. 23
(10) Money appropriated to the Department of Insurance to pay its expenses 24
incurred in promoting North Carolina's captive insurance industry. 25
(11) Money appropriated to the North Carolina Industrial Commission for support 26
of the Commission's duties excepted from its statutory fee authority as set 27
forth in G.S. 97-73(e). 28
(12) Money appropriated to the North Caroli na Department of Labor to pay its 29
expenses incurred in carrying out its powers and duties pursuant to Article 24 30
of Chapter 95 of the General Statutes. 31
(e) Definitions. – The following definitions apply in this section: 32
(1) Repealed by Session Laws 2003 -284, s. 43.2, effective for taxable years 33
beginning on or after January 1, 2004. 34
(1a) Captive insurance company. – Defined in G.S. 105-228.3. 35
(2) Insurance company. – A company or prepaid health plan, as defined in 36
G.S. 58-93-5, that pays the gross premiums tax levied in G.S. 105-228.5 and 37
G.S. 105-228.8. 38
(3) Insurer. – Defined in G.S. 105-228.3." 39
40
PART III. BUILDING C ODE COUNCIL AND RESI DENTIAL CODE COUNCIL 41
CONFORMING CHANGES 42
SECTION 3.1. G.S. 143-137, as amended by Section 5.1(c) of S.L. 2024 -49, reads 43
as rewritten: 44
"§ 143-137. Organization of Building Code Council; rules; meetings; staff; fiscal affairs. 45
(a) First Meeting; Organization; Rules. – Within 30 days after its appointment, the 46
Building Code Council shall meet on call of the State Fire Marshal. State Engineer, of the Office 47
of Engineering and Codes. The Council shall adopt rules as it may deem necessary for the proper 48
discharge of its duties. The chair may establish and appoint members to committees as the work 49
of the Council may require. In addition, the chair may establish and appoint ad hoc code revision 50
committees to consider and prepare revisions and amendments to the Code volumes, as specified 51
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in G.S. 143-138(a). Each ad hoc committee shall consist of members of the Council, licensed 1
contractors, and design professionals most affected by the Code volume for which the ad hoc 2
committee is responsible, and members of the public. Ad hoc committees shall meet upon the 3
call of their respective chairs and shall report their recommendations to the Council. 4
… 5
(c) Staff. – Personnel of the Division of Engineering of the Department of Insurance 6
Engineering and Building Codes Division of the Office of Engineering and Codes, shall serve as 7
staff for the Council, and have the following duties: 8
(1) Keeping a n accurate and complete record of all meetings, hearings, 9
correspondence, laboratory studies, and technical work performed by or for 10
the Council, and making these records available for public inspection at all 11
reasonable times. 12
(2) Handling correspondence for the Council. 13
(d) Fiscal Affairs of the Council. – All funds for the operations of the Council and its 14
staff shall be appropriated to the Department of Insurance Department of Labor for the use of the 15
Council. All such funds shall be held in a separate or special account on the books of the 16
Department of Insurance , Department of Labor, with a separate financial designation or code 17
number to be assigned by the Department of Insurance Department of Labor or its agent. 18
Expenditures for staff salaries and operating expenses shall be made in the same manner as the 19
expenditure of any other Department of Insurance Department of Labor funds. The Office of the 20
State Fire Marshal Office of Engineering and Codes may hire such additional personnel as may 21
be necessary to handle the work of the Building Code Council, within the limits of funds 22
appropriated to the Department of Insurance Department of Labor for the Council and with the 23
approval of the Council. 24
…." 25
SECTION 3.2. G.S. 143-137.1, as amended by Section 5.2(b) of S.L. 2024-49, reads 26
as rewritten: 27
"§ 143 -137.1. Organization of Residential Code Council; rules; meetings; staff; fiscal 28
affairs; quorum. 29
(a) First Meeting; Organization; Rules. – Within 30 days after its appointment, the 30
Residential Code Council shall meet on call of the State Fire Marshal .State Engineer, of the 31
Office of Engineering and Codes. The Council shall adopt rules it may deem necessar y for the 32
proper discharge of its duties. The chair may establish and appoint members to any committees 33
the work of the Council may require. In addition, the chair may establish and appoint ad hoc code 34
revision committees to consider and prepare revisions and amendments to the North Carolina 35
Residential Code. Each ad hoc committee shall consist of members of the Council, licensed 36
contractors, and design professionals most affected by the North Carolina Residential Code, and 37
members of the public. Committees shall meet upon the call of their respective chairs and shall 38
report their recommendations to the Council. 39
… 40
(c) Staff. – Personnel of the Division of Engineering of the Department of Insurance 41
Engineering and Building Codes Division of the Office of Engineering and Codes, shall serve as 42
staff for the Residential Code Council, and have the following duties: 43
(1) Keeping an accurate and complete record of all meetings, hearings, 44
correspondence, laboratory studies, and technical work performed by or for 45
the Council, and making these records available for public inspection at all 46
reasonable times. 47
(2) Handling correspondence for the Council. 48
(d) Fiscal Affairs of the Council. – All funds for the operations of the Residential Code 49
Council and its staff shall be appropriated to the Department of Insurance Department of Labor 50
for the use of the Council. These funds shall be held in a separate or special account on the books 51
General Assembly Of North Carolina Session 2025
Page 10 Senate Bill 700-First Edition
of the Department of Insurance , Department of Labor with a separate financial designation or 1
code number to be assigned by the Department of Insurance Department of Labor or its agent. 2
Expenditures for staff salaries and operating expenses shall be made in the same manner as the 3
expenditure of any other Department of Insurance Department of Labor funds. The Department 4
of Insurance Department of Labor may hire any additional personnel necessary to handle the 5
work of the Council, within the limits of funds appropriated for the Council and with the approval 6
of the Council. 7
…." 8
SECTION 3.3.(a) G.S. 143-138, as amended by Section 2.1 and 5.2(c) of S.L. 9
2024-49, reads as rewritten: 10
"§ 143-138. North Carolina State Building Code. 11
... 12
(a1) Additional Adoption Requirements. – 13
(1) The Building Code Council or Residen tial Code Council shall request the 14
Office of State Budget and Management to prepare a fiscal note for a proposed 15
Code change that has a substantial economic impact, as defined in 16
G.S. 150B-21.4(b1), or that increases the cost of residential housing by eighty 17
dollars ($80.00) or more per housing unit. The change can become effective 18
only in accordance with G.S. 143-138(d). Neither the Office of the State Fire 19
Marshal Office of Engineering and Codes, nor the Councils shall be required 20
to expend any monies to pay for the preparation of any fiscal note under this 21
section by any person outside of the Office of the State Fire Marshal Office of 22
Engineering and Codes, or Councils unless the Office or Council s contract 23
with a third-party vendor to prepare the fiscal note. 24
(2) The responsible Council shall conduct a cost-benefit analysis for all proposed 25
changes considered after January 1, 2018, to the North Carolina Energy 26
Conservation Code. 27
… 28
(d) Amendments o f the Code. – The Building Code Council and Residential Code 29
Council may periodically revise and amend those parts of the North Carolina State Building Code 30
for which those Councils are responsible, either on their own motion or upon application from 31
any citizen, State agency, or political subdivision of the State. In addition to the periodic revisions 32
or amendments made by the responsible Council, the Residential Code Council shall perform a 33
comprehensive review and revise or amend the North Carolina Resid ential Code only every six 34
years, to become effective the first day of January of the following year, with at least six months 35
between adoption and effective date. The first six-year revision by the Residential Council under 36
this subsection shall be adopte d to become effective January 1, 2031, and every six years 37
thereafter. After its appointment pursuant to G.S. 143-136.1, the Residential Code Council shall 38
review the North Carolina Energy Conservation Code, the North Carolina Fuel Gas Code, and 39
the North Carolina Mechanical Code as applicable to residential construction and may amend 40
those codes and any relevant chapters of the North Carolina Residential Code, affected by that 41
review, by January 1, 2026. Following the adoption of amendments to the North Ca rolina 42
Residential Code affected by that review, the North Carolina Residential Code shall also be 43
subject to the first six -year revision under this subsection. In adopting any amendment, the 44
Building Code Council and Residential Code Council shall comply with the same procedural 45
requirements and the same standards for adoption of the Code. The Building Code Council and 46
Residential Code Council, through the Office of the State Fire Marshal, Office of Engineering 47
and Codes, shall publish in the North Carolin a Register all appeal decisions made by the 48
responsible Code Council and all formal opinions at least semiannually. The Building Code 49
Council and Residential Code Council, through the Office of the State Fire Marshal, Office of 50
Engineering and Codes, shall also publish at least semiannually in the North Carolina Register a 51
General Assembly Of North Carolina Session 2025
Senate Bill 700-First Edition Page 11
statement providing the accurate website address and information on how to find additional 1
commentary and interpretation of the Code. 2
… 3
(e) Effect upon Local Codes. – Except as otherwise provided in this section, the North 4
Carolina State Building Code shall apply throughout the State, from the time of its adoption. 5
Approved rules shall become effective in accordance with G.S. 150B-21.3. However, any 6
political subdivision of the State may a dopt a fire prevention code and floodplain management 7
regulations within its jurisdiction. Provided a political subdivision shall not adopt local fire 8
prevention code provisions which apply to dwellings subject to the North Carolina Residential 9
Code which are not prescriptively required by the North Carolina Residential Code. The 10
territorial jurisdiction of any municipality or county for this purpose, unless otherwise specified 11
by the General Assembly, shall be as follows: Municipal jurisdiction shall include all areas within 12
the corporate limits of the municipality and extraterritorial jurisdiction areas established as 13
provided in G.S. 160D-202 or a local act; county jurisdiction shall include all other areas of the 14
county. No such code or regulations, othe r than floodplain management regulations and those 15
permitted by G.S. 160D-1128, shall be effective until they have been officially approved by the 16
Building Code Council as providing adequate minimum standards to preserve and protect health 17
and safety, in a ccordance with the provisions of subsection (c) above. Local floodplain 18
regulations may regulate all types and uses of buildings or structures located in flood hazard areas 19
identified by local, State, and federal agencies, and include provisions governing substantial 20
improvements, substantial damage, cumulative substantial improvements, lowest floor elevation, 21
protection of mechanical and electrical systems, foundation construction, anchorage, acceptable 22
flood resistant materials, and other measures the pol itical subdivision deems necessary 23
considering the characteristics of its flood hazards and vulnerability. In the absence of approval 24
by the Building Code Council, or in the event that approval is withdrawn, local fire prevention 25
codes and regulations shall have no force and effect. Provided any local regulations approved by 26
the local governing body which are found by the Council to be more stringent than the adopted 27
statewide fire prevention code and which are found to regulate only activities and conditio ns in 28
buildings, structures, and premises that pose dangers of fire, explosion or related hazards, and 29
are not matters in conflict with the State Building Code, may be approved. Local governments 30
may enforce the fire prevention code of the State Building Code using civil remedies authorized 31
under G.S. 143-139, 153A-123, and 160A-175. If the State Fire Marshal State Engineer or other 32
State official with responsibility for enforcement of the Code institutes a civil action pursuant to 33
G.S. 143-139, a local government may not institute a civil action under G.S. 143-139, 153A-123, 34
or 160A-175 based upon the same violation. Appeals from the assessment or imposition of such 35
civil remedies shall be as provided in G.S. 160D-1127. 36
A local government may not adopt any ordinance in conflict with the exemption provided by 37
subsection (c1) of this section. No local ordinance or regulation shall be construed to limit the 38
exemption provided by subsection (c1) of this section. 39
… 40
(g) Publication and Distribution of Code. – The Building Code Council and Residential 41
Code Council shall cause to be printed, after adoption by each responsible Code Council, the 42
North Carolina State Building Code, or any part of the Code, and each amendment thereto. It 43
shall, at the State's expense, distribute copies of the Code and each amendment to State and local 44
governmental officials, departments, agencies, and educational institutions, as is set out in the 45
table below. (Those marked by an asterisk will receive copies only on written request to the 46
Council.) 47
OFFICIAL OR AGENCY NUMBER OF COPIES 48
State Departments and Officials 49
Governor ............................................................................................................. 1 50
Lieutenant Governor ........................................................................................... 1 51
General Assembly Of North Carolina Session 2025
Page 12 Senate Bill 700-First Edition
Auditor ................................................................................................................ 1 1
Treasurer ............................................................................................................. 1 2
Secretary of State ................................................................................................ 1 3
Superintendent of Public Instruction ................................................................... 1 4
Attorney General (Library) ................................................................................. 1 5
Commissioner of Agriculture .............................................................................. 1 6
Commissioner of Labor....................................................................................... 1 7
State Engineer ..................................................................................................... 1 8
State Fire Marshal ............................................................................................... 1 9
Department of Environmental 10
Quality ........................................................................................................ 1 11
Department of Health and Human Service ......................................................... 1 12
Division of Adult Correction and Juvenile Justice of the 13
Department of Public Safety ...................................................................... 1 14
Board of Transportation ...................................................................................... 1 15
Utilities Commission ........................................................................................... 1 16
Department of Administration ............................................................................ 1 17
Clerk of the Supreme Court ................................................................................ 1 18
Clerk of the Court of Appeals ............................................................................. 1 19
Department of Natural and Cultural Resources [State 20
Library] ...................................................................................................... 1 21
Supreme Court Library ....................................................................................... 1 22
Legislative Library .............................................................................................. 1 23
Office of Administrative Hearings ...................................................................... 1 24
Rules Review Commission ................................................................................. 1 25
Schools 26
All state-supported colleges and universities 27
in the State of North Carolina ................................................................... *1 each 28
Local Officials 29
Clerks of the Superior Courts .............................................................................. 1 each 30
Chief Building Inspector of each incorporated 31
municipality or county ............................................................................... 1 32
In addition, the Building Code Council and Residential Code Council shall make additional 33
copies available at such price as it shall deem reasonable to members of the general public. The 34
proceeds from sales of the Code, or any part of the Code, shall be credi ted to the Insurance 35
Regulatory Fund under G.S. 58-6-25. 36
… 37
(i) Section 1008 of Chapter X of Volume 1 of the North Carolina State Building Code, 38
Title "Special Safety to Life Requirements Applicable to Existing High -Rise Buildings" as 39
adopted by the North C arolina State Building Code Council on March 9, 1976, as ratified and 40
adopted as follows: 41
SECTION 1008-SPECIAL SAFETY TO LIFE REQUIREMENTS APPLICABLE TO 42
EXISTING HIGH-RISE BUILDINGS 43
1008 – GENERAL. 44
(a) Applicability. – Within a reasonable time, as fixed by "written order" of the building 45
official, and except as otherwise provided in subsection (j) of this section every building the 46
[then] existing, that qualifies for classification under Table 1008.1 shall be considered to be a 47
high-rise building and shall be provided with safety to life facilities as hereinafter specified. All 48
other buildings shall be considered as low -rise. NOTE: The requirements of Section 1008 shall 49
be considered as minimum requirements to provide for reasonable safety to life requirements for 50
General Assembly Of North Carolina Session 2025
Senate Bill 700-First Edition Page 13
existing buildings and where possible, the owner and designer should consider the provisions of 1
Section 506 applicable to new high-rise buildings. 2
(b) Notification of Building Owner. – The Office of the State Fire Marshal Engineering 3
and Building Co des Division will send copies of amendments adopted to all local building 4
officials with the suggestion that all local building officials transmit to applicable building 5
owners in their jurisdiction copies of adopted amendments, within six months from the date the 6
amendments are adopted, with the request that each building owner respond to the local building 7
official how he plans to comply with these requirements within a reasonable time. 8
NOTE: Suggested reasonable time and procedures for owners to respond to the building 9
official's request is as follows: 10
(1) The building owner shall, upon receipt of written request from the building 11
official on compliance procedures within a reasonable time, submit an overall 12
plan required by 1008(c) below within one year a nd within the time period 13
specified in the approved overall plan, but not to exceed five years after the 14
overall plan is approved, accomplish compliance with this section, as 15
evidenced by completion of the work in accordance with approved working 16
drawings and specifications and by issuance of a new Certificate of 17
Compliance by the building official covering the work. Upon approval of 18
building owner's overall plan, the building official shall issue a "written 19
order", as per 1008(a) above, to comply with Section 1008 in accordance with 20
the approved overall plan. 21
(2) The building official may permit time extensions beyond five years to 22
accomplish compliance in accordance with the overall plan when the owner 23
can show just cause for such extension of time at the time the overall plan is 24
approved. 25
(3) The local building official shall send second request notices as per 1008(b) to 26
building owners who have made no response to the request at the end of six 27
months and a third request notice to no response building owners at the end of 28
nine months. 29
(4) If the building owner makes no response to any of the three requests for 30
information on how the owner plans to comply with Section 1008 within 12 31
months from the first request, the building official shall issue a "written order" 32
to the building owner to provide his building with the safety to life facilities 33
as required by this section and to submit an overall plan specified by (1) above 34
within six months with the five -year time period starting on the date of the 35
"written order". 36
(5) For purposes of this section, the Construction Section of the Division of 37
Health Service Regulation, Department of Health and Human Services, will 38
notify all non-State owned I-Institutional buildings requiring licensure by the 39
Division of Health Service Regulation and coordinate compliance 40
requirements with the Office of the State Fire Marshal Engineering and 41
Building Codes Division and the local building official. 42
(c) Submission of Plans and Time Schedule for Completing Work. – Plans and 43
specifications, but not necessarily working drawings covering the work necessary to bring the 44
building into compliance with this section shall be submitted to the building official within a 45
reasonable time. (See suggested time in NOTE of Section 1008(b) above). A time schedule for 46
accomplishing the work, including the preparation of working drawings and specifications shall 47
be included. Some of the work may require longer periods of time to accomplish than others, and 48
this shall be reflected in the plan and schedule. 49
NOTE: Suggested Time Period For Compliance: 50
SUGGESTED TIME PERIOD FOR COMPLIANCE 51
General Assembly Of North Carolina Session 2025
Page 14 Senate Bill 700-First Edition
1
CLASS I CLASS II CLASS III TIME FOR 2
ITEM (SECTION) (SECTION) (SECTION) COMPLETION 3
4
Signs in Elevator Lobbies 5
and Elevator Cabs 1008.2(h) 1008.3(h) 1008.4(h) 180 days 6
Emergency Evacuation 7
Plan 1008(b) NOTE: 180 days 8
Corridor Smoke Detectors 9
(Includes alternative 10
door closers) 1008.2(c) 1008.3(c) 1008.4(c) 1 year 11
Manual Fire Alarm 1008.2(a) 1008.3(a) 1008.4(a) 1 year 12
Voice Communication 13
System Required 1008.2(b) 1008.3(b) 1008.4(b) 2 years 14
Smoke Detectors 15
Required 1008.2(c) 1008.3(c) 1008.4(c) 1 year 16
Protection and Fire 17
Stopping for Vertical 18
Shafts 1008.2(f) 1008.3(f) 1008.4(f) 3 years 19
Special Exit 20
Requirements-Number, 21
Location and Illumination 22
to be in accordance with 23
Section 1007 1008.2(e) 1008.3(e) 1008.4(e) 3 years 24
Emergency Electrical 25
Power Supply 1008.2(d) 1008.3(d) 1008.4(d) 4 years 26
Special Exit Facilities 27
Required 1008.2(e) 1008.3(e) 1008.4(e) 5 years 28
Compartmentation for 29
Institutional 30
Buildings 1008.2(f) 1008.3(f) 1008.4(f) 5 years 31
Emergency Elevator 32
Requirements 1008.2(h) 1008.3(h) 1008.4(h) 5 years 33
Central Alarm Facility 34
Required 1008.3(i) 1008.4(i) 5 years 35
Areas of Refuge Required 36
on Every Eighth Floor 1008.4(j) 5 years 37
Smoke Venting 1008.4(k) 5 years 38
Fire Protection of 39
Electrical Conductors 1008.4(l) 5 years 40
Sprinkler System Required 1008.4(m) 5 years 41
(d) Building Official Notification of Office of State Fire Marshal. Office of Engineering 42
and Codes. – The building official shall send copies of written notices he sends to building 43
owners to the Engineering and Building Codes Division of the Office of Engineering and Codes 44
for their files and also shall file an annual report by August 15th of each year covering the past 45
fiscal year setting forth the work accomplished under the provisions of this section. 46
(e) Construction Changes and Design of Life Safety Equipment. – Plans and 47
specifications which contain construction changes and design of life safety equipment 48
requirements to comply with provisions of this section shall be prepared by a registered architect 49
in accordance with provisions of Chapter 83A of the General Statutes or by a registered engineer 50
in accordance with provisions of Chapter 89C of the General Statutes or by both an architect and 51
General Assembly Of North Carolina Session 2025
Senate Bill 700-First Edition Page 15
engineer particularly qualified by training and experience for the type of work involved. Such 1
plans and specifications shall be submitted to the Engineering and Building Codes Division of 2
the Department of Insurance Office of Engineering and Codes for approval. Plans and 3
specifications for I-Institutional buildings licensed by the Division of Health Service Regulation 4
as noted in (b) above shall be submitted to the Construction Section of that Division for review 5
and approval. 6
(f) Filing of Test Rep orts and Maintenance on Life Safety Equipment. – The engineer 7
performing the design for the electrical and mechanical equipment, including sprinkler systems, 8
must file the test results with the Engineering and Building Codes Division of the Department of 9
Insurance, Office of Engineering and Codes , or to the agency designated by the Office of the 10
State Fire Marshal , Office of Engineering and Codes, that such systems have been tested to 11
indicate that they function in accordance with the standards specified in this section and 12
according to design criteria. These test results shall be a prerequisite for the Certificate of 13
Compliance required by (b) above. Test results for I -Institutional shall be filed with the 14
Construction Section, Division of Health Service Re gulation. It shall be the duty and 15
responsibility of the owners of Class I, II and III buildings to maintain smoke detection, fire 16
detection, fire control, smoke removal and venting as required by this section and similar 17
emergency systems in proper operat ing condition at all times. Certification of full tests and 18
inspections of all emergency systems shall be provided by the owner annually to the fire 19
department. 20
(g) Applicability of Chapter X and Conflicts with Other Sections. – The requirements of 21
this section shall be in addition to those of Sections 1001 through 1007; and in case of conflict, 22
the requirements affording the higher degree of safety to life shall apply, as determined by the 23
building official. 24
(h) Classes of Buildings and Occupancy Classific ations. – Buildings shall be classified 25
as Class I, II or III according to Table 1008.1. In the case of mixed occupancies, for this purpose, 26
the classification shall be the most restrictive one resulting from the application of the most 27
prevalent occupancies to Table 1008.1. 28
FOOTNOTE: Emergency Plan. – Owners, operators, tenants, administrators or managers of 29
high-rise buildings should consult with the fire authority having jurisdiction and establish 30
procedures which shall include but not necessarily be limited to the following: 31
(1) Assignment of a responsible person to work with the fire authority in the 32
establishment, implementation and maintenance of the emergency pre -fire 33
plan. 34
(2) Emergency plan procedures shall be supplied to all tenants and shall be posted 35
conspicuously in each hotel guest room, each office area, and each 36
schoolroom. 37
(3) Submission to the local fire authority of an annual renewal or amended 38
emergency plan. 39
(4) Plan should be completed as soon as possible. 40
… 41
…." 42
SECTION 3.3.(b) The Nor th Carolina State Building Code, as described in 43
G.S. 143-138(a), and amendments to the North Carolina State Building Code adopted by the 44
Building Code Council or Residential Code Council, or any enactment of the General Assembly 45
directing changes to the North Carolina State Building Code, in effect on July 1, 2026, shall not 46
be affected by this act, unless amended or repealed by the Building Code Council or Residential 47
Code Council, as applicable. 48
SECTION 3.3.(c) The current members of the Building Code C ouncil and 49
Residential Code Council, appointed pursuant to G.S. 143-136 and G.S. 143-136.1, respectively, 50
affected by this act, may continue to serve until the expiration of their terms. Upon the expiration 51
General Assembly Of North Carolina Session 2025
Page 16 Senate Bill 700-First Edition
of the term of each current member affected by the transfer of jurisdiction enacted by subsection 1
(a) of this section, a successor shall be appointed in accordance with the provisions of 2
G.S. 143-136 and G.S. 143-136.1, as applicable. 3
SECTION 3.4. G.S. 143-138.1 reads as rewritten: 4
"§ 143 138.1. Introduction and instruction of the North Carolina State Building Code; 5
posting of written commentaries and interpretations on Office of State Fire 6
Marshal Office of Engineering and Codes' website. 7
(a) Prior to the effective date of Code changes pursuant to G.S. 143-138, the responsible 8
Code Council and the Office of the State Fire Marshal Office of Engineering and Codes shall 9
provide for instructional classes for the various trades affected by the changes. The Office of the 10
State Fire Marshal Office of Engineering and Codes shall develop the curriculum for each class 11
but shall consult the affected licensing boards and trade organizations. The curriculum shall 12
include explanations of the rationale and need for each Code amendment or revision. Classes 13
may a lso be conducted by, on behalf of, or in cooperation with licensing boards, trade 14
associations, and professional societies. The Office of the State Fire Marshal Office of 15
Engineering and Codes may charge fees sufficient to recover the costs it incurs under this section. 16
The responsible Code Council shall ensure that courses are accessible to persons throughout the 17
State. 18
(b) The Office of the State Fire Marshal Office of Engineering and Codes shall post and 19
maintain on that portion of its website devoted to the Building Code Council and Residential 20
Code Council written commentaries and written interpretations made and given by staff to each 21
responsible Code Council and the Office for each section of the North Carolina State Building 22
Code within 10 business days of issuance." 23
SECTION 3.5. G.S. 143-139, as amended by Section 5.2(e) of S.L. 2024 -49, reads 24
as rewritten: 25
"§ 143-139. Enforcement of Building Code. 26
… 27
(b) General Building Regulations. – The State Fire Marshal State Engineer shall have 28
general author ity, through the Division of Engineering of the Department of Insurance , 29
Engineering and Building Codes Division of the Department of Labor, to supervise, administer, 30
and enforce all sections of the North Carolina State Building Code pertaining to plumbing, 31
electrical systems, general building restrictions and regulations, heating and air conditioning, fire 32
protection, and the construction of buildings generally, except those sections of the Code, the 33
enforcement of which is specifically allocated t o other agencies by subsections (c) through (e) 34
below. In the exercise of the duty to supervise, administer, and enforce the North Carolina State 35
Building Code (including local building codes which have superseded the State Building Code 36
in a particular political subdivision pursuant to G.S. 143-138(e)), the State Fire Marshal, through 37
the Division of Engineering, State Engineer shall: 38
… 39
(b1) Remedies. – In case any building or structure is maintained, erected, constructed, or 40
reconstructed or its purpose altered, so that it becomes in violation of this Article or of the North 41
Carolina State Building Code, either the local enforcement officer or the State Fire Marshal State 42
Engineer or other State official with responsibility under this section may, in addit ion to other 43
remedies, institute any appropriate action or proceeding to: (i) prevent the unlawful maintenance, 44
erection, construction, or reconstruction or alteration of purpose, or overcrowding, (ii) restrain, 45
correct, or abate the violation, or (iii) prevent the occupancy or use of the building, structure, or 46
land until the violation is corrected. In addition to the civil remedies set out in G.S. 160A-175 47
and G.S. 153A-123, a county, city, or other political subdivision authorized to enforce the North 48
Carolina State Building Code within its jurisdiction may, for the purposes stated in (i) through 49
(iii) of this subsection, levy a civil penalty for violation of the North Carolina Fire Code of the 50
North Carolina State Building Code, which penalty may be reco vered in a civil action in the 51
General Assembly Of North Carolina Session 2025
Senate Bill 700-First Edition Page 17
nature of debt if the offender does not pay the penalty within a prescribed period of time after the 1
offender has been cited for the violation. If the State Fire Marshal State Engineer or other State 2
official institutes an ac tion or proceeding under this section, a county, city, or other political 3
subdivision may not institute a civil action under this section based upon the same violation. 4
Appeals from the imposition of any remedy set forth herein, including the imposition of a civil 5
penalty by a county, city, or other political subdivision, shall be as provided in G.S. 160D-1127. 6
…." 7
SECTION 3.6. G.S. 143-139.4 reads as rewritten: 8
"§ 143-139.4. Certain building inspections by State. 9
(a) When a permit holder has been informed by a local inspection department that any 10
inspection has not been, or will not be, conducted within two business days after first requested, 11
the permit holder may request in writing that the State Fire Marshal State E ngineer assign 12
personnel to conduct the inspection. 13
(b) Any written request by a permit holder to the State Fire Marshal State Engineer to 14
assign personnel to conduct an inspection shall be submitted to the State Fire Marshal , State 15
Engineer, and such submission may be made electronically or by facsimile. The submission shall 16
be on a form adopted by the State Fire Marshal, State Engineer, which shall at a minimum contain 17
all of the following: 18
… 19
(e) Prior to making any assignment of Code-enforcement officials from the marketplace 20
pool established under G.S. 143-151.12(9)a., the State Fire Marshal State Engineer shall verify 21
all of the following to the State Fire Marshal's State Engineer's satisfaction: 22
… 23
(4) Any other information the State Fire Marshal State Engineer deems relevant 24
to determining whether to assign personnel to conduct the requested 25
inspection. 26
(f) If the State Fire Marshal State Engineer assigns a Code-enforcement official from the 27
marketplace pool established under G.S. 143-151.12(9)a. to conduct the requested inspection, 28
the State Fire Marshal State Engineer shall notify the local inspection department and the local 29
inspection department shall, prior to the inspection, provide the State Fire Marshal State Engineer 30
with information regar ding any outstanding building permits and previously conducted 31
inspections on those outstanding building permits for that property. The local inspection 32
department may also provide the State Fire Marshal State Engineer with information regarding 33
other properties with outstanding building permits and inspections by the same permit holder or 34
requestor. 35
(f1) Personnel assigned by the State Fire Marshal State Engineer to conduct inspections 36
under this section must begin conducting an inspection within two business days after assignment 37
by the State Fire Marshal. State Engineer. 38
(g) Not later than one business day after the receipt of the report, the State Fire Marshal 39
State Engineer shall provide an electronic copy of the report of any inspection conducted by a 40
marketplace pool Code-enforcement official under G.S. 143-151.12(9)a. to all of the following: 41
… 42
(h) For the requested services performed by a Code -enforcement official under this 43
section, the State Fire Marshal State Engineer shall charge the permit holder a fee as set by the 44
State Fire Marshal State Engineer under G.S. 143-151.12(9)a. The fee shall be paid to the State 45
Fire Marshal State Engineer no later than 30 days after completion of the requested inspection. 46
… 47
(l) The State Fire Marshal State Engineer shall contract with any individual, corporation, 48
or other business entity that holds one of the applicable certificates as provided in 49
G.S. 143-151.13 to conduct inspections under this section." 50
SECTION 3.7. G.S. 143-140.1 reads as rewritten: 51
General Assembly Of North Carolina Session 2025
Page 18 Senate Bill 700-First Edition
"§ 143-140.1. Alternative design construction and methods; appeals. 1
The Building Code Council shall, by January 1, 2023, shall promulgate rules, procedures, 2
and policies for the approval of alternative designs and construction that follow the North 3
Carolina State Building Code. The Residential Code Council shall, by January 1, 2026, 4
promulgate rules, procedures, and policies for the approval of alternative designs and 5
construction that follow the North Carolina State Building Code. I n the event of a dispute 6
between a local authority having jurisdiction and the designer or owner-representative regarding 7
alternative designs and construction, and notwithstanding any other section within this Article, 8
appeals by the designer or owner -representative on matters pertaining to alternative design 9
construction or methods shall be heard by the Engineering and Building Codes Division of the 10
Department of Insurance. Office of Engineering and Codes. The Engineering and Building Codes 11
Division shall issue its decision regarding an appeal filed under this section within 10 business 12
days. The State Fire Marshal State Engineer shall adopt rules in furtherance of this section." 13
SECTION 3.8. G.S. 143-141 reads as rewritten: 14
"§ 143-141. Appeals to Building Code Council and Residential Code Council. 15
(a) Method of Appeal. – Whenever any person desires to take an appeal to the responsible 16
Code Council from the decision of a State enforcement agency relating to any matter under this 17
Article or under the North Carolina State Building Code, the appellant shall within 30 days after 18
the decision give written notice of appeal to the responsible Code Council through the Division 19
of Engineering and Building Codes Div ision of the Department of Insurance. Office of 20
Engineering and Codes. A copy of the notice of appeal shall be filed at the same time with the 21
enforcement agency from which the appeal is taken. The chairman of the responsible Code 22
Council shall fix a reasonable time and place for a hearing, giving reasonable notice to the 23
appellant and to the enforcement agency. Such hearing shall be not later than the next regular 24
meeting of the responsible Code Council. The responsible Code Council shall thereupon conduct 25
a full and complete hearing as to the matters in controversy, after which it shall within a 26
reasonable time give a written decision setting forth its findings of fact and its conclusions. 27
… 28
(c1) Posting on State Fire Marshal Office of Engineering and Codes Website – The Office 29
of the State Fire Marshal Office of Engineering and Codes shall post and maintain on that portion 30
of its website devoted to the responsible Code Council all appeal decisions, interpretations, and 31
variations of the Code issued by the responsible Code Council within 10 business days of 32
issuance. 33
…." 34
SECTION 3.9. G.S. 143-143.4 reads as rewritten: 35
"§ 143-143.4. Door lock exemption for certain businesses. 36
(a) Notwithstanding this Article or any other law to the contrary, any busine ss entity 37
licensed to sell automatic weapons as a federal firearms dealer that is in the business of selling 38
firearms or ammunition and that operates a firing range which rents firearms and sells 39
ammunition shall be exempt from the door lock requirements o f Chapter 10 of Volume 1 of the 40
North Carolina State Building Code when issued a permit to that effect by the Office of the State 41
Fire Marshal Office of Engineering and Codes in accordance with this section. 42
(b) The Office of the State Fire Marshal Office of Engineering and Codes shall issue a 43
permit to a business entity specified in subsection (a) of this section for an exemption from the 44
door lock requirements of Chapter 10 of Volume 1 of the North Carolina State Building Code if 45
all of the following conditions are met: 46
… 47
(2) The building or facility in which business is conducted is equipped with an 48
approved smoke, fire, and break -in alarm system installed and operated in 49
accordance with rules adopted by the Office of the State Fire Marshal. Office 50
of Engineering and Codes. An approved smoke, fire, or break-in alarm system 51
General Assembly Of North Carolina Session 2025
Senate Bill 700-First Edition Page 19
does not have to include an automatic door unlocking mechanism triggered 1
when the smoke, fire, or break-in alarm system is triggered. 2
… 3
(5) Payment of a permit fee of five hundred dollars ($500.00) to the Office of the 4
State Fire Marshal. Office of Engineering and Codes. 5
(c) The Office of the State Fire Marshal Office of Engineering and Codes shall file a copy 6
of the permit issued in accordance with subsection (b) of this sec tion with all local law 7
enforcement and fire protection agencies that provide protection for the business entity. 8
(d) The Office of the State Fire Marshal Office of Engineering and Codes shall be 9
responsible for any inspections necessary for the issuance o f permits under this section and, in 10
conjunction with local inspection departments, shall be responsible for periodic inspections to 11
ensure compliance with the requirements of this section. The Office of the State Fire Marshal 12
Office of Engineering and Cod es may contract with local inspection departments to conduct 13
inspections under this subsection. 14
(e) The Office of the State Fire Marshal Office of Engineering and Codes shall revoke a 15
permit issued under this section upon a finding that the requirements for the original issuance of 16
the permit are not being complied with. 17
(f) Appeals of decisions of the Office of the State Fire Marshal Office of Engineering 18
and Codes regarding the issuance or revocation of permits under this section shall be in 19
accordance with Chapter 150B of the General Statutes. 20
… 21
(i) The Office of the State Fire Marshal Office of Engineering and Codes shall adopt 22
rules to implement this section." 23
SECTION 3.10. G.S. 143-143.7 reads as rewritten: 24
"§ 143-143.7. Elevator safety requirements for certain residential rental accommodations. 25
… 26
(c) Upon installation of a door baffle, door space guard, door, or gate meeting the 27
requirements of subdivision (1) or (2) of subsection (b) of this section, the landlord shall provide 28
the State Fire Marshal State Engineer with one of the following: 29
(1) A statement signed by a professional elevator installer certifying installation 30
of the door baffle, door space guard, door, or gate meeting the requirements 31
of subsection (b) of this section. 32
(2) A receipt f or purchase of the door baffle, door space guard, door, or gate 33
meeting the requirements of subsection (b) of this section, a signed statement 34
by the landlord stating the date of installation, and photographs depicting the 35
door baffle, door space guard, door, or gate as installed. 36
…." 37
38
PART IV. NORTH CAROL INA MANUFACTURED HOU SING BOARD AND 39
UNIFORM STANDARDS CO DE FOR MANUFACTURED HOMES CONFORMING 40
CHANGES 41
SECTION 4.1. G.S. 143-143.8 reads as rewritten: 42
"§ 143-143.8. Purpose. 43
The General Assembly finds that manufactured homes have become a primary housing 44
resource for many of the citizens of North Carolina. The General Assembly finds further that it 45
is the responsibility of the manufactured home industry to provide homes which are of reasonable 46
quality and safety and to offer warranties to buyers that provide a means of remedying quality 47
and safety defects in manufactured homes. The General Assembly also finds that it is in the public 48
interest to provide a means for enforcing such warranties. 49
Consistent with these findings and with the legislative intent to promote the general welfare 50
and safety of manufactured home residents in North Carolina, the General Assembly finds that 51
General Assembly Of North Carolina Session 2025
Page 20 Senate Bill 700-First Edition
the most efficient and economical way to assure safety, quality and responsibility is to require 1
the licensing and bonding of all segments of the manufactured home industry. The General 2
Assembly also finds that it is reasonable and proper for the manufactured home industry to 3
cooperate with the Office of the State Fire Marshal, Office of Engineering and Codes, through 4
the establishment of the North Carolina Manufactured Housing Board, to provide for a 5
comprehensive framework for industry regulations." 6
SECTION 4.2. G.S. 143-143.9 reads as rewritten: 7
"§ 143-143.9. Definitions. 8
The following definitions apply in this Part: 9
… 10
(3) Code. – Engineering standards entitled State of North Carolina Regulations 11
for Manufactured Homes adopted by the State Fire Marshal.State Engineer. 12
…." 13
SECTION 4.3.(a) G.S. 143-143.10 reads as rewritten: 14
"§ 143-143.10. Manufactured Housing Board created; membership; terms; meetings. 15
(a) There is created the North Carolina Manufactured Housing Board within the 16
Department. The Board shall be composed of 11 members as follows: 17
(1) The State Fire Marshal State Engineer or the State Fire Marshal 's State 18
Engineer's designee. 19
… 20
The State Fire Marshal State Engineer or the State Fire Marshal's State Engineer's designee 21
shall chair the Board. The Governor shall appoint to the Board the manufactured home 22
manufacturer and the manufactured home dealer. The General Assembly upon the 23
recommendation of the Speaker of the House of Representatives in accordance with 24
G.S. 120-121 shall appoint to the Board the representative of the banking and finance industry, 25
the employee o f a HUD -approved housing counseling agency, and the representative of the 26
insurance industry. The General Assembly upon the recommendation of the President Pro 27
Tempore of the Senate in accordance with G.S. 120-121 shall appoint to the Board the 28
manufactured home supplier, the accountant, and the set -up contractor. The State Fire Marshal 29
State Engineer shall appoint two representatives of the general public. Except for the 30
representatives from the general public and the persons appointed by the General Assembly, each 31
member of the Board shall be appointed by the appropriate appointing authority from a list of 32
nominees submitted to the appropriate appointing authority by the Board of Directors of the 33
North Carolina Manufactured and Modular Homebuilders Associa tion. At least three 34
nominations shall be submitted for each position on the Board. The members of the Board shall 35
be residents of the State. 36
The members of the Board shall serve for terms of three years. In the event of any vacancy 37
of a position appointed by the Governor or State Fire Marshal, State Engineer, the appropriate 38
appointing authority shall appoint a replacement in the same manner as provided for the original 39
appointment to serve the remainder of the unexpired term. Vacancies in appointments mad e by 40
the General Assembly shall be filled in accordance with G.S. 120-122. In the event of any 41
vacancy, the appropriate appointing authority shall appoint a replacement to serve the remainder 42
of the unexpired term. Such The appointment shall be made in the same manner as provided for 43
the original appointment. No member of the Board shall serve more than two consecutive, 44
three-year terms. 45
The members of the Board designated in subdivisions (8), (9), and (10) of this subsection 46
shall have no current or previo us financial interest connected with the manufactured housing 47
industry. No member of the Board shall participate in any proceeding before the Board involving 48
that member's own business. 49
Each member of the Board, except the State Fire Marshal State Engineer and any other State 50
employee, shall receive per diem and allowances as provided with respect to occupational 51
General Assembly Of North Carolina Session 2025
Senate Bill 700-First Edition Page 21
licensing boards by G.S. 93B-5. Fees collected by the Board under this Article shall be credited 1
to the Insurance Regulatory Fund created under G.S. 58-6-25. 2
…." 3
SECTION 4.3.(b) The current members of the Manufactured Housing Board 4
appointed pursuant to G.S. 143-143.10 affected by this act, may continue to serve until the 5
expiration of their terms. Upon the expiration of the term of each current member affected by 6
this act, the State Engineer shall appoint a successor in accordance with the provisions of 7
G.S. 143-143.10, as amended by subsection (a) of this section. 8
SECTION 4.4. G.S. 143-143.15 reads as rewritten: 9
"§ 143-143.15. Set-up requirements. 10
(a) Manufactured homes shall be set up in accordance with the standards entitled State 11
of North Carolina Regulations for Manufactured Homes adopted by the State Fire Marshal.State 12
Engineer. 13
…." 14
SECTION 4.5. G.S. 143-143.54 reads as rewritten: 15
"§ 143-143.54. Audits and record inspection. 16
All financial records required by this Part shall be subject to audit for cause and to random 17
audit at the discretion of and by the Board, the State Fire Marshal, State Engineer, or the Attorney 18
General. The Board may inspect these records periodically, without prior notice and may also 19
inspect these records whenever the Board determines that the records are pertinent to an 20
investigation of any complaint against a licensee. The dealer shall provide written authorizatio n 21
to the bank that holds the escrow or trust account to release any and all requested information 22
relative to the account to the parties authorized under this section to inspect those records." 23
SECTION 4.6. G.S. 143-146 reads as rewritten: 24
"§ 143-146. Statement of policy; rule-making power. 25
(a) Manufactured homes, because of the manner of their construction, assembly and use 26
and that of their systems, components and appliances (including heating, plumbing and electrical 27
systems) like other finished produc ts having concealed vital parts may present hazards to the 28
health, life and safety of persons and to the safety of property unless properly manufactured. In 29
the sale of manufactured homes, there is also the possibility of defects not readily ascertainable 30
when inspected by purchasers. It is the policy and purpose of this State to provide protection to 31
the public against those possible hazards, and for that purpose to forbid the manufacture and sale 32
of new manufactured homes, which are not so constructed as to provide reasonable safety and 33
protection to their owners and users. This Article provides to the State Fire Marshal State 34
Engineer all necessary authority to enable the State to obtain approval as a State Administrative 35
Agency under the provisions of the Act. 36
… 37
(e) The State Fire Marshal State Engineer may adopt rules to carry out the provisions of 38
the Act and this Article, including rules for consumer complaint procedures and rules for the 39
enforcement of the standards and regulations established and adopted by HUD under the Act." 40
SECTION 4.7. G.S. 143-148 reads as rewritten: 41
"§ 143-148. Certain structures excluded from coverage. 42
The State Fire Marshal State Engineer may by rule provide for the exclusion of certain 43
structures by certification in accordance with the Act." 44
SECTION 4.8. G.S. 143-151 reads as rewritten: 45
"§ 143-151. Penalties. 46
(a) Any person who is found by the State Fire Marshal State Engineer to have violated 47
the provisions of the Act, this Article, or any rules adopted under this Artic le, shall be liable for 48
a civil penalty not to exceed the amount set by 24 C.F.R. § 3282.10 for each violation. Each 49
violation shall constitute a separate violation for each manufactured home or for each failure or 50
refusal to allow or perform an act requir ed by the Act, this Article, or any rules adopted under 51
General Assembly Of North Carolina Session 2025
Page 22 Senate Bill 700-First Edition
this Article. The maximum civil penalty may not exceed the amount set by 24 C.F.R. § 3282.10 1
for any related series of violations occurring within one year after the date of the first violation. 2
In determining the amount of the penalty, the State Fire Marshal State Engineer shall consider 3
the degree and extent of harm caused by the violation, the amount of money that inured to the 4
benefit of the violator as a result of the violation, whether the violation was willful, and the prior 5
record of the violator in complying or failing to comply with laws, rules, or orders applicable to 6
the violator. The clear proceeds of civil penalties provided for in this section shall be remitted to 7
the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C-457.2. 8
…." 9
SECTION 4.9. G.S. 143-151.1 reads as rewritten: 10
"§ 143-151.1. Enforcement. 11
The State Fire Marshal State Engineer may initiate any appropriate action or proceeding to 12
prevent, restrain, or correct any violation of the Act, this Article, or any rules adopted under this 13
Article. The State Fire Marshal , State Engineer, or any of his deputies or employees, upon 14
showing proper credentials and in the discharge of their duties under this Article, or the Act, is 15
authorized at reasonable hours and without advance notice to enter and inspect all factories, 16
warehouses, or establishments in this State in which manufactured homes a re manufactured, 17
stored or held for sale." 18
SECTION 4.10.(a) G.S. 143-151.2 reads as rewritten: 19
"§ 143-151.2. Fees. 20
(a) The State Fire Marshal State Engineer shall establish a monitoring inspection fee in 21
an amount required by the Secretary of HUD. This monitoring inspection fee shall be an amount 22
paid by each manufactured home manufacturer in this State for each manufactured home 23
produced by the manufacturer in this State. 24
…." 25
SECTION 4.10.(b) The monitoring inspection fee established pursuant to 26
G.S. 143-151.2 shall not be affected by this act, and shall remain in effect until amended by the 27
State Engineer in an amount required by the Secretary of HUD. 28
SECTION 4.11. G.S. 143-151.3 reads as rewritten: 29
"§ 143-151.3. Reports. 30
Each manufacturer, distributo r, and dealer of manufactured homes shall establish and 31
maintain such records, make such reports, and provide such information as the State Fire Marshal 32
State Engineer or the Secretary of HUD may reasonably require to be able to determine whether 33
the manufacturer, distributor, or dealer has acted or is acting in compliance with this Article, or 34
the Act and shall, upon request of a person designated by the State Fire Marshal State Engineer 35
or the Secretary of HUD, permit the person to inspect appropriate books, papers, records and 36
documents relevant to determining whether the manufacturer, distributor, or dealer has acted or 37
is acting in compliance with this Article or the Act, and any rules adopted by the State Fire 38
Marshal State Engineer under this Article." 39
SECTION 4.12. G.S. 143-151.4 reads as rewritten: 40
"§ 143-151.4. Notification of defects and correction procedures. 41
Every manufacturer of manufactured homes shall provide for notification and correction 42
procedures in any manufactured home produced by the manufacturer in accordance with the Act, 43
this Article, and any rules adopted by the State Fire Marshal.State Engineer." 44
SECTION 4.13. G.S. 143-151.5 reads as rewritten: 45
"§ 143-151.5. Prohibited acts. 46
(a) No person shall: 47
… 48
(5) Fail to comply with a rule adopted or an order issued by the State Fire Marshal 49
State Engineer under this Article. 50
…." 51
General Assembly Of North Carolina Session 2025
Senate Bill 700-First Edition Page 23
1
PART V. NORTH CAROLI NA CODE OFFICIALS QUALI FICATION BOARD 2
CONFORMING CHANGES 3
SECTION 5.1. G.S. 143-151.8, as amended by Section 5.2(i) of S.L. 2024-49, reads 4
as rewritten: 5
"§ 143-151.8. Definitions. 6
(a) The following definitions apply in this Article: 7
… 8
(2) Code. – Consists of all of the following: 9
… 10
d. The standards adopted by the State Fire Marshal State Engineer under 11
G.S. 143-143.15(a). 12
… 13
(c) For purposes of this Article, "willful misconduct, gross negligence, or gross 14
incompetence" in addition to the meaning of those terms under other provisions of the General 15
Statutes or at common law, includes any of the following: 16
… 17
(2) Refusing to accept an alternative design or construction method that has been 18
appealed under G.S. 143-140.1 and found by the Office of the State Fire 19
Marshal Office of Engineering and Codes to comply with the Code under the 20
conditions or circumstances set forth in the Office of the State Fire Marshal's 21
Office of Engineering and Codes' decision for that appeal. 22
… 23
(5) Refusing to implement or adhere to an in terpretation of the Building Code 24
issued by the Building Code Council or the Office of the State Fire 25
Marshal.Office of Engineering and Codes. 26
…." 27
SECTION 5.2.(a) G.S. 143-151.9 reads as rewritten: 28
"§ 143-151.9. North Carolina Code Officials Qualification Board established; members; 29
terms; vacancies. 30
(a) There is hereby established the North Carolina Code Officials Qualification Board in 31
the Department of Insurance. Office of Engineering and Codes of the Department of Labor. The 32
Board shall be composed of 20 members appointed as follows: 33
(1) One member who is a city or county manager;manager. 34
(2) Two members, one of whom is an elected official representing a city over 35
5,000 population and one of whom is an elected official representing a city 36
under 5,000 population; population. 37
(3) Two members, one of whom is an elected official representing a county over 38
40,000 population and one of whom is an elected official representing a 39
county under 40,000 population; population. 40
(4) Two members serving as building officials with the responsibility for 41
administering building, plumbing, electrical and heating codes, one of whom 42
serves a county and one of whom serves a city; city. 43
(5) One member who is a registered architect; architect. 44
(6) One member who is a registered engineer; engineer. 45
(7) Two members who are licensed general contractors, at least one of whom 46
specializes in residential construction; construction. 47
(8) One member who is a licensed electrical contractor;contractor. 48
(9) One member who is a licensed plumbing or heating contractor; contractor. 49
(10) One member selected from the faculty of the North Carolina State University 50
School of Engineering and one member selected from the faculty of the 51
General Assembly Of North Carolina Session 2025
Page 24 Senate Bill 700-First Edition
School of Engineering of the North Carolina Agricultural and Technical State 1
University; University. 2
(11) One member selected from the faculty of the School of Government at the 3
University of North Carolina at Chapel Hill; Hill. 4
(12) One member selected from the Community Colleges System Office; Office. 5
(13) One member selected from the Engineering and Building Codes Division 6
Division of Engineering and Building Codes in of the Department of 7
Insurance; and, Office of Engineering and Code. 8
(14) One member who is a local government fire prevention inspector and one 9
member who is a citizen of the State. 10
The various categories shall be appointed as follows: (1), (2), (3), and (14) by the Governor; 11
(4), (5), and (6) by the General Assembly upon the recommendation of the President Pro Tempore 12
in accordance with G.S. 120-121; (7), (8), and (9) by the General Assembly upon the 13
recommendation of the Speaker of the House of Representatives in accordance with 14
G.S. 120-121; (10) by the deans of the respective schools of engineering of the named 15
universities; (11) by the Dean of the School of Government at the University of North Carolina 16
at Chapel Hill; (12) by the President of the Community Colleges System; and (13) by the State 17
Fire Marshal.State Engineer. 18
…." 19
SECTION 5.2.(b) The current members o f the North Carolina Code Officials 20
Qualification Board appointed pursuant to G.S. 143-151.9 affected by this act, may continue to 21
serve until the expiration of the member's term. Upon the expiration of the current member's 22
term, the State Engineer shall appoint a successor as provided in G.S. 143-151.9, as amended by 23
subsection (a) of this section. 24
SECTION 5.3.(a) G.S. 143-151.12, as amended by Section 3.4(a) of S.L. 2024 -49, 25
reads as rewritten: 26
"§ 143-151.12. Powers. 27
In addition to powers conferred upon the Board elsewhere in this Article, the Board has the 28
power to do the following: 29
… 30
(9) Establish within the Office of the State Fire Marshal Office of Engineering 31
and Codes a marketplace pool of qualified Code -enforcement officials 32
available for the following purposes: 33
a. When requested by the State Fire Marshal, State Engineer, to assist in 34
the discharge of the State Fire Marshal 's State Engineer's duty under 35
G.S. 143-139 to supervise, administer, and enforce the North Carolina 36
State Building Code. The State Fire Marshal State Engineer shall have 37
the power and authority to fix and collect reasonable fees for services 38
performed by Code-enforcement officials under this sub -subdivision. 39
The State Fire Marshal State Engineer may also collect 40
reimbursement, at the rate established under G.S. 138-6, for mileage 41
costs incurred by Code -enforcement officials going to and from 42
inspections conducted under this sub -subdivision. The State Fire 43
Marshal State Engineer shall have no power or authority to fix or 44
collect fees incurred by local inspection departments under 45
sub-subdivision b. of this subdivision. 46
…." 47
SECTION 5.3.(b) Fees fixed for services performed by Code-enforcement officials 48
under G.S. 143-151.12(9)a. affected by this act, shall not be affected by this act until amended 49
by the State Engineer pursuant to G.S. 143-151.12(9)a., as amended by subsection (a) of this 50
section, in accordance with Chapter 150B of the General Statutes. 51
General Assembly Of North Carolina Session 2025
Senate Bill 700-First Edition Page 25
SECTION 5.4. G.S. 143-151.13, and amended by Section 5.2(j) of S.L. 2024 -49, 1
reads as rewritten: 2
"§ 143-151.13. Required standards and certificates for Code-enforcement officials. 3
… 4
(e) The Board shall, without requiring an examination, issue a standard certificate to any 5
person who is currently certified as a county electrical ins pector pursuant to G.S. 160D-1102. 6
The certificate issued by the Board shall authorize the person to serve at the electrical inspector 7
level approved by the State Fire Marshal State Engineer in G.S. 160D-1102. 8
SECTION 5.5. G.S. 143-151.19 reads as rewritten: 9
"§ 143-151.19. Administration. 10
(a) The Engineering and Building Codes Division Division of Engineering and Building 11
Codes in of the Department of Insurance Office of Engineering and Codes shall provide clerical 12
and other staff services required by the Board, and shall administer and enforce all provisions of 13
this Article and all rules promulgated pursuant to this Article, subject to the direction of the 14
Board, except as delegated by this Article to local units of government, other State agencies, 15
corporations, or individuals. 16
(b) The Board shall make copies of this Article and the rules adopted under this Article 17
available to the public at a price determined by the Board. 18
(c) The Board shall keep current a record of the names and addresses of all qua lified 19
Code-enforcement officials and additional personal data as the Board deems necessary. The 20
Board annually shall publish a list of all currently certified Code-enforcement officials. 21
(d) Each certificate issued by the Board shall contain such identifying information as the 22
Board requires. 23
(e) The Board shall issue a duplicate certificate to practice as a qualified 24
Code-enforcement official in place of one which has been lost, destroyed, or mutilated upon 25
proper application and payment of a fee to be determined by the Board." 26
SECTION 5.6. G.S. 143-151.21 reads as rewritten: 27
"§ 143-151.21. Disposition of fees. 28
Fees collected by the State Fire Marshal State Engineer under this Article shall be credited to 29
the Insurance Regulatory Fund created under G.S. 58-6-25." 30
31
PART VI. NORTH CAROL INA HOME INSPECTOR L ICENSURE BOARD 32
CONFORMING CHANGES 33
SECTION 6.1. G.S. 143-151.46 reads as rewritten: 34
"§ 143-151.46. North Carolina Home Inspector Licensure Board established; members; 35
terms; vacancies. 36
(a) Membership. — The North Carolina Home Inspector Licensure Board is established 37
in the Department of Insurance. Office of Engineering and Codes The Board shall be composed 38
of the State Fire Marshal State Engineer or the State Fire Marshal's State Engineer's designee and 39
seven additional members appointed as follows: 40
…." 41
SECTION 6.2. G.S. 143-151.63 reads as rewritten: 42
"§ 143-151.63. Administration. 43
(a) The Engineering and Building Codes Division of Division of Engineering and 44
Building Code in the Department of Insurance Office of Engineering and Codes shall provide 45
clerical and other staff services required by the Board, and shall administer and enforce all 46
provisions of this Article and all rules adopted under this Article, subject to the direction of the 47
Board. The Board shall reimburse the Division for its services to the Board. 48
(b) Any monies received by the Board pursuant to this Article shall be deposited in the 49
State treasury to the account of the Board and shall be used to administer this Article. 50
General Assembly Of North Carolina Session 2025
Page 26 Senate Bill 700-First Edition
(c) The books and records of the Board are subject to the oversight of the State Auditor, 1
as provided in G.S. 93B-4." 2
3
PART VII. LOCAL GOVE RNMENT LAND DEVELOPM ENT AND CODE 4
ENFORCEMENT CONFORMING CHANGES 5
SECTION 7.1. G.S. 160D-402, as amended by Section 1.3(a) of S.L. 2024-49, reads 6
as rewritten: 7
"§ 160D-402. Administrative staff. 8
… 9
(d) Financial Support. – The local government may appropriate for the support of the 10
staff any funds that it deems necessary. It shall have power to fix reasonable fees for sup port, 11
administration, and implementation of programs authorized by this Chapter, and all such fees 12
shall be used for no other purposes. When an inspection, for which the permit holder has paid a 13
fee to the local government, is performed by a marketplace pool Code-enforcement official upon 14
request of the State Fire Marshal State Engineer under G.S. 143-151.12(9)a., the local 15
government shall promptly return to the permit holder the fee collected by the local government 16
for such inspection. This subsection applies to the following types of inspection: plumbing, 17
electrical systems, general building restrictions and regulations, heating and air-conditioning, and 18
the general construction of buildings." 19
SECTION 7.2. G.S. 160D-910 reads as rewritten: 20
"§ 160D-910. Manufactured homes. 21
… 22
(g) A local government may require by ordinance that manufactured homes be installed 23
in accordance with the Set-Up and Installation Standards adopted by the State Fire Marshal; State 24
Engineer; provided, however, a local government shall not require a masonry curtain wall or 25
masonry skirting for manufactured homes located on land leased to the homeowner." 26
SECTION 7.3. G.S. 160D-1102 reads as rewritten: 27
"§ 160D-1102. Building code administration. 28
… 29
(b) In the event that any local go vernment fails to provide inspection services or ceases 30
to provide inspection services, the State Fire Marshal State Engineer shall arrange for the 31
provision of inspection services, either through personnel employed by the Office of the State 32
Fire Marshal Office of Engineering and Codes or another division of the Department of Insurance 33
Department of Labor or through an arrangement with other units of government. In either event, 34
the State Fire Marshal State Engineer has and may exercise within the local go vernment's 35
planning and development regulation jurisdiction all powers made available to the governing 36
board with respect to building inspection under this Article and Part 1 of Article 20 of Chapter 37
160A of the General Statutes. Whenever the State Fire Marshal State Engineer has intervened in 38
this manner, the local government may assume provision of inspection services only after giving 39
the State Fire Marshal State Engineer two years' written notice of its intention to do so; however, 40
the State Fire Marsha l State Engineer may waive this requirement or permit assumption at an 41
earlier date upon finding that an earlier assumption will not unduly interfere with arrangements 42
made for the provision of those services. 43
…." 44
SECTION 7.4. G.S. 160D-1114 reads as rewritten: 45
"§ 160D-1114. Appeals of stop orders. 46
(a) The owner or builder may appeal from a stop order involving alleged violation of the 47
North Carolina State Building Code or any approved local modification thereof to the State Fire 48
Marshal State Engineer or his or her designee within a period of five days after the order is issued. 49
Notice of appeal shall be given in writing to the State Fire Marshal State Engineer or his or her 50
designee, with a copy to the local inspector. The State Fire Marshal State Engineer or his or her 51
General Assembly Of North Carolina Session 2025
Senate Bill 700-First Edition Page 27
designee shall promptly conduct an investigation, and the appellant and the inspector shall be 1
permitted to submit relevant evidence. The State Fire Marshal State Engineer or his or her 2
designee shall as expeditiously as possible provide a written statement of the decision setting 3
forth the facts found, the decision reached, and the reasons for the decision. Pending the ruling 4
by the State Fire Marshal State Engineer or his or her designee on an appeal, no further work 5
shall take place in violation of a stop order. In the event of dissatisfaction with the decision, the 6
person affected shall have the following options: 7
(1) Appealing to the Building Code Council or Residential Code Council. 8
(2) Appealing to the superior court as provided in G.S. 143-141. 9
(b) The owner or builder may appeal from a stop order involving alleged violation of a 10
local development regulation as provided in G.S. 160D-405." 11
SECTION 7.5. G.S. 160D-1126 reads as rewritten: 12
"§ 160D-1126. Records and reports. 13
The inspection department shall keep complete and accurate records in convenient form of 14
all applications received, permits issued, inspections and reinspections made, defects found, 15
certificates of compliance or occupancy granted, and all other work and activities of the 16
department. These records shall be kept in the manner and for the periods prescribed by the 17
Department of Natural and Cultural Resources. Periodic reports shall be submitted to the 18
governing board and to the State Fire Marshal State Engineer as they shall by ordinance, rule, or 19
regulation require." 20
SECTION 7.6. G.S. 160D-1127 reads as rewritten: 21
"§ 160D-1127. Appeals. 22
Unless otherwise provided by law, appeals from any order, decision, or determination by a 23
member of a local inspection department pertaining to the North Carolina State Building Code 24
or other State building laws shall be taken to the State Fire Marshal State Engineer or the State 25
Fire Marshal's State Engineers's designee or other official specified in G.S. 143-139 by filing a 26
written notice with the State Fire Marshal State Engineer and with the inspection department 27
within a period of 10 days after the order, decision, or determination. Further appeals may be 28
taken to the Building Code Council or Residential Code Council or to the courts as provided by 29
law." 30
31
PART VIII. MISCELLANEOUS CONFORMING CHANGES 32
SECTION 8.1. G.S. 66-25 reads as rewritten: 33
"§ 66-25. Acceptable listings as to safety of goods. 34
(a) All electrical materials, devices, appliances, and equipment shall be evaluated for 35
safety and suitability for intended use. Except as provided in subsections (b) and (c) of this 36
section, this evaluation s hall be conducted in accordance with nationally recognized standards 37
and shall be conducted by a qualified testing laboratory. The State Fire Marshal, State Engineer, 38
through the Engineering and Building Codes Division Engineering Division of the Department 39
of Insurance, Office of Engineering and Codes , shall implement the procedures necessary to 40
approve suitable national standards and to approve suitable qualified testing laboratories. The 41
State Fire Marshal State Engineer may assign his authority to implement the procedures for 42
specific materials, devices, appliances, or equipment to other agencies or bodies when they would 43
be uniquely qualified to implement those procedures. 44
In the event that the State Fire Marshal State Engineer determines that electrical materials, 45
devices, appliances, or equipment in question cannot be adequately evaluated through the use of 46
approved national standards or by approved qualified testing laboratories, the Engineering and 47
Building Codes Division Engineering Divisio n of the Department of Insurance Office of 48
Engineering and Codes shall specify any alternative evaluations which safety requires. 49
General Assembly Of North Carolina Session 2025
Page 28 Senate Bill 700-First Edition
The Engineering and Building Codes Division Engineering Division of the Department of 1
Insurance Office of Engineering and Codes shall keep in file, where practical, copies of all 2
approved national standards and resumes of approved qualified testing laboratories. 3
…." 4
SECTION 8.2. G.S. 115C-525 reads as rewritten: 5
"§ 115C-525. Fire prevention. 6
(a) Duty of Principal Regarding Fire Hazards. – The principal of every public school in 7
the State shall have the following duties regarding fire hazards during periods when he is in 8
control of a school: 9
… 10
(2) Every principal shall make certain that no electrical wiring shall be installed 11
within any school building or structure or upon the premises and that no 12
alteration or addition shall be made in any existing wiring, except with the 13
authorization of the superintendent. Any such work shall be performed by a 14
licensed electrical contractor , or by a maintenance electrician regularly 15
employed by the board of education and approved by the State Fire 16
Marshal.State Engineer. 17
… 18
(b) Inspection of Schools for Fire Hazards; Removal of Hazards. – Every public school 19
building in the State shall be ins pected a minimum of two times during the year in accordance 20
with the following plan: Provided, that the periodic inspections herein required shall be at least 21
120 days apart: 22
(1) Each school building shall be inspected to make certain that none of the fire 23
hazards enumerated in G.S. 115C-525(a)(1) through (5) exist, and to ensure 24
that the building and all heating, mechanical, electrical, gas, and other 25
equipment and appliances are properly installed and maintained in a safe and 26
serviceable manner as prescri bed by the North Carolina Building Code. 27
Following each inspection, the persons making the inspection shall furnish to 28
the principal of the school a written report of conditions found during 29
inspection, upon forms furnished by the State Fire Marshal , State Engineer, 30
and the persons making the inspection shall also furnish a copy of the report 31
to the superintendent of schools; the superintendent shall keep such copy on 32
file for a period of three years. In addition to the periodic inspections herein 33
required, any alterations or additions to existing school buildings or to school 34
building utilities or appliances shall be inspected immediately following 35
completion. 36
… 37
(3) It shall be the duty of the State Fire Marshal , State Engineer, the 38
Superintendent of Public Instruction, and the State Board of Education to 39
prescribe any additional rules and regulations which they may deem necessary 40
in connection with such inspections and reports for the reduction of fire 41
hazards and protection of life and property in public schools. 42
…." 43
44
PART IX. MISCELLANEO US PROVISIONS RELATE D TO THE TRANSITION OF 45
VARIOUS DUTIES, BOAR DS, COUNCILS, AND DI VISIONS TO THE OFFIC E OF 46
ENGINEERING AND CODES 47
SECTION 9.1. Notwithstanding G.S. 95-280, as enacted by Section 1.1 of this act, 48
until the General Assembly confirms an independent State Engineer as provided in G.S. 95-280, 49
as enacted by Section 1.1 of this act, the State Fire Marshal shall continue to have the same 50
powers under Article 78A of Chapter 58 of the General Statutes prior to the effective date of this 51
General Assembly Of North Carolina Session 2025
Senate Bill 700-First Edition Page 29
act for the purpose of executing the laws of this State that are being assigned to the State Engineer 1
and the Office of Engineering and Codes by the General Assembly by this act. 2
SECTION 9.2 All employees of the Office of the State Fire Marshal affected by the 3
transfer of a Board, Council, or Division enumerated within G.S. 95-280(b), as enacted by 4
Section 1.1 of this act, shall continue as employees of the Office of the State Fire Marshal at their 5
option or until further action is taken by the Department of Labor to transfer employees from the 6
Office of the State Fire Marshal and in accordance with law. All programs and functions 7
conducted by the Office of the State Fire Marshal shall continue without any reduction in funds, 8
responsibilities, or administrative support, including, but not limited to, budgetary, human 9
resources, information technology, and legal, until further action is taken by the Department of 10
Labor to transfer programs and functions from the Office of the State Fire Ma rshal and in 11
accordance with law. 12
SECTION 9.3. No pending action or proceeding, brought by or against the Office 13
of the State Fire Marshal, or any Board, Council, or Division enumerated in G.S. 95-280(b), as 14
enacted by Section 1.1 of this act, shall be affected by any provision of this act. Any business or 15
other matter undertaken or commanded by any program or contract by the Office of the State 16
Fire Marshal, or any Board, Council, or Division transferred by this act and pertaining to or 17
connected with the functions, powers, obligations, and duties set forth herein, which are pending 18
on July 1, 2026, may be conducted and completed in the same manner and under the same terms 19
and conditions and with the same effect as if conducted and completed by the origi nal program, 20
the Office of the State Fire Marshal, or any Board, Council, or Division transferred by this act. 21
SECTION 9.4. The transfer provided for under this act shall not affect any ongoing 22
investigation in effect on July 1, 2026, conducted by the Office of the State Fire Marshal, or any 23
Board, Council, or Division enumerated in G.S. 95-280(b), as enacted by Section 1.1 of this act. 24
Prosecutions for offenses or violations committed before July 1, 2026, are not abated or affected 25
by this act. 26
SECTION 9.5. The transfer provided for under this act shall not affect any ongoing 27
order in effect on July 1, 2026, issued by the Office of the State Fire Marshal, or any Board, 28
Council, or Division enumerated in G.S. 95-280(b), as enacted by Section 1.1 of this act. 29
SECTION 9.6. Rules and forms adopted by the Office of the State Fire Marshal, or 30
any Board, Council, or Division enumerated in G.S. 95-280(b), as enacted by Section 1.1. of this 31
act., in effect on July 1, 2026, shall remain in effect until amended or repealed, by the responsible 32
Board, Council, or Division enumerated in G.S. 95-280(b), as enacted by Section 1.1. of this act, 33
as necessary. 34
SECTION 9.7. Within the Department of Labor General Fund (Budget Code 13800), 35
the Office of State Budget and Management shall establish a new budget fund. OSBM shall 36
transfer both of the following from the Office of the State Fire Marshal (Budget Fund 101612) 37
to the new fund: 38
(1) All funds supporting the Office of Engineering and Codes, established by 39
Section 1.1. of this act. 40
(2) All positions and associated costs in the Office of Engineering and Codes, 41
established by Section 1.1. of this act. 42
SECTION 9.8. The Office of State Budget and Management shall, in conjunction 43
with the Office of Engineering and Codes (OEC), adjust OEC's base budget for each fiscal year 44
of the 2025 -2027 fiscal biennium to use proceeds from the insurance regulatory charge 45
established under G.S. 58-6-25, as amended by Section 2.1. of this act., to reimburse the General 46
Fund as authorized by G.S. 58-6-25(d)(12), as enacted by Section 2.1 of this act. 47
48
PART X. SEVERABILITY CLAUSE AND EFFECTIVE DATE 49
50
SEVERABILITY CLAUSE 51
General Assembly Of North Carolina Session 2025
Page 30 Senate Bill 700-First Edition
SECTION 10.1. If any section or provision of this act is declared unconstitutional 1
or invalid by the courts, it does not affect the validity of this act as a whole or any part other than 2
the part declared to be unconstitutional or invalid. 3
4
EFFECTIVE DATE 5
SECTION 10.2. This act becomes effective July 1, 2026. 6