House amendments to the 3rd edition make the following changes.
Amendment #1 amends GS 130A-280 by amending the conditions that a public cold bath must meet in order to excluded from the Part, to also require that it be designed exclusively to provide chilled water, factory-manufactured and certified in conformance with ANSI/UL 1563, and operated and maintained according to the manufacturer's instructions.
Amendment #2 adds a new Section to the act, allowing, for project code DPS24-1, the agency to enter into a public-private partnership to facilitate the construction of the new North Carolina Alcoholic Beverage Control Warehouse facility if it will result in expedited project completion. Requires the agency to also consider and use infrastructure for the facility that automates functions and processes to the greatest extent possible when it plans and develops the project.
Amendment #3 adds a new Section to the act that enacts new GS 87-13.2 allowing the State Licensing Board for General Contractors to refer a matter to law enforcement or the district attorney when it has reasonable grounds to believe that a person or entity has committed a violation of Article 1 (General Contractors) that is subject to criminal penalty. Allows the Board to disclose investigative records to the law enforcement agencies or prosecutors. Specifies that nothing in the Article limits the Board's ability to assist in criminal prosecutions, or limits the State's power to punish a person for any conduct that constitutes a crime under any other statute. Allows the board to adopt rules to implement this statute. Applies to violations committed on or after October 1, 2025.
BUILDING INDUSTRY EFFICIENCY ACT OF 2025.
Printer-friendly: Click to view
View NCGA Bill Details(link is external) | 2025-2026 Session |
AN ACT TO AMEND VARIOUS LAWS TO PROVIDE ADDITIONAL BUILDING INDUSTRY EFFICIENCY.Intro. by Brody, Bell, Cunningham, Zenger.
Bill History:
-
Tue, 1 Apr 2025 House: Filed(link is external)
-
Wed, 2 Apr 2025 House: Passed 1st Reading(link is external)
-
Thu, 10 Apr 2025 House: Reptd Fav Com Substitute(link is external)
-
Thu, 10 Apr 2025 House: Re-ref Com On Finance(link is external)
-
Tue, 17 Jun 2025 House: Reptd Fav Com Sub 2(link is external)
-
Wed, 18 Jun 2025 House: Reptd Fav(link is external)
-
Wed, 18 Jun 2025 House: Cal Pursuant Rule 36(b)(link is external)
-
Wed, 18 Jun 2025 House: Added to Calendar(link is external)
-
Wed, 18 Jun 2025 House: Amend Adopted A1(link is external)
-
Wed, 18 Jun 2025 House: Amend Adopted A2(link is external)
-
Wed, 18 Jun 2025 House: Amend Adopted A3(link is external)
-
Wed, 18 Jun 2025 House: Passed 2nd Reading(link is external)
-
Wed, 18 Jun 2025 House: Passed 3rd Reading(link is external)
-
Wed, 18 Jun 2025 House: Ordered Engrossed(link is external)
-
Thu, 19 Jun 2025 House: Special Message Sent To Senate(link is external)
-
Thu, 19 Jun 2025 Senate: Special Message Received From House(link is external)
-
Thu, 19 Jun 2025 Senate: Passed 1st Reading(link is external)
Bill Summaries:
-
Bill H 661 (2025-2026)Summary date: Jun 18 2025 - View Summary
-
Bill H 661 (2025-2026)Summary date: Jun 17 2025 - View Summary
House committee substitute to the 2nd edition makes the following changes.
Removes the following provisions:
- GS 160D-1505 which would have prohibited a county from requiring a developer to construct a pedestrian facility or public road improvement with a public right-of-way located outside the of the boundary of the construction project unless the county has entered into an agreement with DOT or with the city, as applicable, that the facility or improvement will be accepted into a public road system for maintenance and repair.
- Amendments to GS 87-22 that would have doubled the fees for annual licensing of plumbing and heating contractors and for the fee for late renewals.
- Amendments to GS 87-22.1 that would have increased the fee for the plumbing and heating contractor's exam from $150 to $200.
- Amendments to GS 87-44 that would have increased by $50 the fees for licenses for electrical contractors.
- Authorizations to the Code Enforcement Qualification Board to certify Residential Changeout Special Inspectors and to create a residential changeout alternate inspection method in Part V.
- Establishing the right to repair construction defects within dwellings subject to the NC Residential Code in Part V.
Part I.
Changes the effective date of new GS 160D-1502 (prohibiting municipalities from implementing design methods and construction standards for new streets and highways to be accepted by a municipality) to apply to projects initiated on or after January 1, 2026 (was, July 1, 2025).
Amends GS 160D-1504 so that it now directs a local government that requires a developer to construct pedestrian facilities or roadway improvements, which include improvements within public right-of-way located outside of a construction project boundary, to standards or with attributes which would preclude a pedestrian facility or roadway improvement from acceptance by the North Carolina Department of Transportation (DOT), to coordinate with DOT to enter into agreements for the local government to assume maintenance and repair responsibilities for the portions of pedestrian facilities or street improvements precluded from acceptance by DOT (was, required a municipality that requires a developer to construct a pedestrian facility or street improvement within the public right-of-way located outside of the boundary of a construction project to accept that facility or improvement into its public road system for maintenance and repair upon completion). Removes provisions specifying that the statute does not apply to a public right-of-way under DOT’s control. Extends the effective date to January 1, 2026.
Part II.
Replaces references to specified codes with defined term code (consisting all of the following: (1) the North Carolina State Building Code adopted by the Building Code Council and Residential Code Council; (2) local building rules approved by the Building Code Council and Residential Code Council; (3) any resolution adopted by a federally recognized Indian Tribe in which the Tribe adopts the North Carolina State Building Code and related local building rules and (4) the standards adopted by the State Fire Marshal) into code enforcement and the definition of willful misconduct, gross negligence, or gross incompetence in GS 143-151.8 (definitions pertaining to the NC Code Officials Qualifications Board).
Defines emergency responder communication coverage requirements (Requirements) to mean those requirements for in-building emergency responder communications enhancement systems specified under Section 510 of the North Carolina Fire Prevention Code (Code). Exempts two categories of structures from the Requirements, including apartments and transients public lodging establishments that meet certain height or story requirements with the requisite egress. Directs that an emergency responder radio coverage system installed prior to the effective date of the section in a building or structure that meets the exemption criteria is not be required to be removed and allows those systems to be deactivated. Requires the Building Code Council (Council) to adopt rules to amend the Code in line with the provisions of the Requirements. Applies the APA’s effective date provisions triggered when 10 or more written objections are received to the rule (GS 150B-21.3). Specifies that the provisions of the APA requiring review by the rules commission do not apply. Until permanent rules are adopted as discussed above, instructs the Council and local governments enforcing the Code not to enforce the emergency responder radio coverage requirements against buildings and structures that meet the exemption criteria and instead allow for deactivation of such systems instead. Sunsets the Requirements when the Council adopts permanent rules.
Part III.
Extends the effective date for the changes to GS 87-1, GS 160D-1110, and GS 143-138 from July 1, 2025, to January 1, 2026.
Amends GS 87-13.1 by reinstating the $5,000 cap on attorney's fees awarded when the Board prevails in an action under the statute.
Part IV.
Enacts GS 58-78A-18 (concerning residential changeout work certification development) directing the Office of the State Fire Marshal (Marshal) to develop a Residential Changeout Work Certification form for a local government to utilize in its building permit application process for residential changeout work. Directs the Marshal to publish the form on its website. Provides for development of the form, as specified, with the Council and Residential Code Council. Enacts GS 160D-1106.1 (residential changeout work inspection exemptions) as follows. Defines residential changeout work as work that requires a building permit for heating and air conditioning appliance replacement in (i) a dwelling subject to the North Carolina Residential Code or (ii) an individual residential unit of a multifamily building, including a condominium or apartment, provided the individual appliance serves only that residential dwelling unit. Requires a local government to accept and approve, without further responsibility to inspect, residential changeout work if all of the three listed conditions are met, including submission of a signed written residential changeout work certification by the contractor. Limits the information a local government may require to the information required by its building permit application process and by the certification. Provides for delivery of the certification. Specifies that upon the acceptance of a signed certification by the local government, the local government, its inspection department, and its inspectors are discharged and released from any liabilities, duties, and responsibilities imposed by this Article with respect to or in common law from any claim arising out of or attributed to the residential changeout work for which the signed certification was submitted. Allows a local government to charge a fee to cover costs incurred in processing forms related to residential changeout work certifications, capped at $20 in GS 160D-402. Effective January 1, 2026. Directs the Marshal to develop the residential changeout work form by October 1, 2025, and to make it available on its website by then.
Part V.
Increases the threshold amounts for construction or repair contracts from $500,000 to $1.5 million and purchase contracts from $90,000 to $180,000 that trigger the formal bidding requirements in GS 143-129. Effective July 1, 2026.
-
Bill H 661 (2025-2026)Summary date: Apr 10 2025 - View Summary
House committee substitute to the 1st edition makes the following changes.
Part III.
Amends GS 87-1, which sets out who is considered to be a general contractor, by excluding a person providing installation, maintenance, or replacement services related to floor covering services or painting services related to the construction or improvement of a building or structure. (Was, just a person providing services related to floor coverings and painting.) Specifies that the provision of those services for a building falling under the NC Residential Code (Code) does not require a building permit under GS 160D-1110 or under GS 143-138 (concerning the NC State Building Code). Makes organizational changes.
Part V.
Specifies that a contractor must respond to a notice of claim concerning a construction defect under GS 87-152 in writing and that if the claimant chooses to accept a contractor’s offer to settle, they must do so in writing. Enacts GS 87-155, tolling any statute of limitations under new Article 9 of GS Chapter 87 until the later of when any of four listed events occur, including when either the claimant denies the general contractor’s offer to settle (described herein) or the general contractor denies the claimant’s claim, or when either party determines the general contractor cannot or will not repair the defect and provides written notice to the other party of the same.
Part VI.
Further modifies GS 130A-280 (concerning scope of laws applying to public swimming pools), as amended by Section 4.51 of SL 2024-49, as follows. Broadens the scope of pools excluded from Article 8 (concerning sanitation) of GS Chapter 130A to include floatation or sensory deprivation systems certified by the National Sanitation Foundation to meet the most current version of Standard 50 of the National Sanitation Foundation/American National Standards Institute.
Makes conforming changes, including to Part titles.
-
Bill H 661 (2025-2026)Summary date: Apr 4 2025 - View Summary
Part I.
Amends GS 160D-1104 by prohibiting an inspection department from charging permit holders a fee or fail to complete an inspection if the permit holder cancels a scheduled inspection more than one business day before it is scheduled.
Enacts new GS 160D-1502 prohibiting municipalities from implementing design methods and construction standards for new streets and highways to be accepted by a municipality, using funds that are not wholly municipal funds, that are more stringent than the methods and standards used by the Department of Transportation (DOT). Applies to projects initiated on or after July 1, 2025.
Enacts new GS 160D-1503 prohibiting municipalities from implementing design methods and construction standards for new private streets that are more stringent than the methods and standards used by the DOT. Also requires municipalities to accept engineered street design methods and construction standards that do not meet DOT’s standards if the methods and standards are signed and sealed by a licensed professional engineer and meet vehicular traffic and fire apparatus access requirements. Requires disclosure by the developer to prospective buyers if the street design methods and construction standards do not meet DOT’s minimum standards. Provides local governments with immunity from claims due to the plan review or acceptance of signed and sealed engineered street design methods and construction standards submitted under this statute. Applies to projects initiated on or after July 1, 2025.
Enacts new GS 160D-1504 requiring a municipality that requires a developer to construct a pedestrian facility or street improvement within the public right-of-way located outside of the boundary of a construction project to accept that facility or improvement into its public road system for maintenance and repair upon completion. Applies to projects within a municipality’s extraterritorial jurisdiction; specifies that this does not apply to a public right-of-way under DOT’s control. Applies to projects initiated on or after July 1, 2025.
Enacts new GS 160D-1505 prohibiting a county form requiring a developer to construct a pedestrian facility or public road improvement with a public right-of-way located outside the of the boundary of the construction project unless the county has entered into an agreement with DOT or with the city, as applicable, that the facility or improvement will be accepted into a public road system for maintenance and repair. Applies to projects in a planning and development regulation jurisdiction of a county; specifies that this does not apply to a public right-of-way that is under DOT’s control. Applies to projects initiated on or after July 1, 2025.
Amends GS 136-96 by adding that any strip, piece, or parcel of land dedicated to public use as a local road, highway, street, or avenue by plat on December 22, 1978, but that has not been maintained as a local public road, highway, street, or avenue by a local governmental entity by January 1, 2025, is deemed withdrawn for public use, any rights of the public therein are deemed abandoned, and no person or governmental entity has any right or cause of action to enforce any public interest or easement in such land under this statute.
Part II.
Requires the Office of State Fire Marshal, the Building Code Council and Residential Code Council (Councils), and State and local governments enforcing the State Building Code (Code) to implement Water Supply Rules (Section 3312.1 of the Fire Code and Section 3313.1 of the Building Code) as follows. Allows the fire code official to reduce the fire-flow requirements for an isolated model home at a subdivision project site where development of full-fire flow requirements is impractical or pending. Requires adopting rules to amend the Water Supply Rules to be consistent with this change. This provision expires once the permanent rules become effective.
Amends GS 44A-11.1 and GS 87-14 by correcting the reference to the Code that defines the relevant terms to the North Carolina Residential Code. Amends GS 58-45-5 by removing refences to the North Carolina Uniform Residential Building Code. Amends GS 87-10(b1) to require fire service mains to comply with the listed standards as made applicable to the North Carolina State Building Code (previously specified Volume V). Amends GS 87-21 by correcting the name of the North Carolina Plumbing Code. Amends GS 143-150 by correcting the name of the North Carolina Electrical Code. Amends GS 160D-702, GS 160D-1117, GS 160D-1207, and GS 162A-900 by correcting the references to the North Carolina Fire Code.
Part III.
Amends GS 87-22 by doubling the fees for annual licensing of plumbing and heating contractors and for the fee for late renewals. Amends GS 87-22.1 by increasing the fee for the plumbing and heating contractors exam from $150 to $200. Applies to applications for exams and licensure received on or after July 1, 2025.
Enacts new GS 87-22.3 excluding from public records any documents (including the specified types of papers and files) that the State Board of Examiners of Plumbing, Heating, and Fire Sprinkler Contractors (or its members, staff, employees, attorneys, or consultants) possesses or receives, gathers, or completes as a result of investigations, inquiries, assessments, or interviews conducted in connection with a license application or disciplinary action initiated by the Board. Specifies that these documents are privileged, confidential, and not subject to discovery, subpoena, or other means of legal compulsion for release to any person other than the Board or its employees or consultants. Those documents received and admitted in evidence in any Board hearing become a public record.
Amends GS 87-44 by increasing by $50 the fees for licenses for electrical contractors; increases the exam fee by $75. Applies to applications for examination and licensure received on or after July 1, 2025.
Enacts new GS 87-47.1 excluding from public records any documents (including the specified types of papers and files) that the State Board of Examiners of Electrical Contractors (or its members, staff, employees, attorneys, or consultants) possesses or receives, gathers, or completes as a result of investigations, inquiries, assessments, or interviews conducted in connection with a license application or disciplinary action initiated by the Board. Specifies that these documents are privileged, confidential, and not subject to discovery, subpoena, or other means of legal compulsion for release to any person other than the Board or its employees or consultants. Those documents received and admitted in evidence in any Board hearing become a public record.
Amends GS 87-1, which sets out who is considered to be a general contractor, by excluding a person providing floor coverings or painting related to the construction or improvement of a building or structure. Makes language gender neutral. Effective July 1, 2025.
Amends GS 87-7, no longer requiring remaining State Licensing Board for General Contractors funds to be paid to the School of Engineering through the North Carolina Engineering Foundation. Effective July 1, 2025.
Amends GS 87-11 to give the North Carolina Licensing Board for General Contractors disciplinary authority over qualifiers and applicants, in addition to the already allowed licensees. Amends the conditions under which it can refuse to issue or renew, revoke, suspend, or restrict a license or to issue a reprimand or take other action, to include when a licensee, qualifier, or applicant: (1) employs the use of fraud or misrepresentation in obtaining or attempting to obtain or renew a license; (2) commits an act of gross negligence, incompetency, or misconduct in the practice of general contracting; (3) willfully violates any provision of this Article or any rules adopted by the Board; or (4) willfully violates any Board order. Prohibits accepting anonymous complaints. Requires the Board to adopt rules (was, guidelines) and no longer limits the scope to the governance of the suspension and revocation of licenses. Removes the provisions concerning keeping records of complaints against licensees and those governing the reissuance of a revoked license. Removes references to Board regulations. Makes conforming and clarifying changes. Amends GS 87-15.3, concerning confidentiality of a complaining party, by making conforming changes.
Amends GS 87-13.1 concerning when the North Carolina Licensing Board for General Contractors may seek injunctive relief for violations by removing references to Board regulations. Removes the cap on the amount of attorneys fees that can be awarded. Adds that exam applicants who have failed to pay a court award under the statute will not be allowed to take the exam until the award has been satisfied.
Amends Article 1 of GS Chapter 87, General Contractors, to make language gender-neutral throughout; makes additional technical and clarifying changes.
Part IV.
Amends Article 9C of GS Chapter 143, as amended, as follows. Changes the name of the North Carolina Code Officials Qualification Board to the North Carolina Code Enforcement Qualification Board and makes conforming changes throughout. Amends the definition of code enforcement to include examination and approval of plans and specifications; the inspection of the manner of construction, workmanship, and materials for construction of buildings and structures and their components; or the enforcement of fire code regulations by a person conducting residential changeout special inspections. Changes the term qualified code-enforcement official to Code-enforcement official and now defines it as a person certified to engage in the practice of Code enforcement who is also employed by a local inspection department. Amends GS 143-151.11 to require reports on the activities and recommendations of the Board with respect to standards for the training and certification of persons engaged in the practice of Code enforcement (was, with respect to standards for Code officials). Amends GS 143-151.12 to give the Board the power to certify persons as being qualified as residential changeout special inspectors. Amends GS 143-151.13 to require the issuance of a standard certificate to each person seeking to practice Code enforcement as a residential changeout special inspector by demonstrating the qualifications set out in the statutes; makes conforming and organizational changes. Refers to "certificate holders" instead of "officials." Amends GS 143-151.15 by adding that a certificate issued under this Article for residential changeout special inspectors is valid for one year and subject to renewal. Amends GS 143-151.17, concerning grounds for disciplinary action, by no longer specifying that the statute applies to Code enforcement officials and applicants employed or seeking to be employed by a federally recognized Indian Tribe to perform inspections on tribal lands. Makes additional conforming, clarifying, and technical changes throughout the Article, including making language gender neutral.
Adds the following to Article 9C. Enacts new GS 143-151.24 requiring the North Carolina Code Enforcement Qualification Board to develop a Residential Changeout Special Inspector Certification Program and residential changeout inspector certificate. Requires applicants to pass an exam. Allows establishing professional development requirements for the renewal of a certificate and sets out related requirements. Requires certificates to be renewed annually by the first day of July. Caps the application fee at $20, the renewal fee at $10, and the renewal late fee at $4. Waives the exam for a person who has a Building Inspector standard certificate and is in good standing. Requires issuing a standard certificate to persons licensed as a plumbing or heating contractor if they complete a short course on the Building Code and Code enforcement. Sets out the procedure under which the Board may grant a certificate to a person certified in another jurisdiction.
Enacts new GS 160D-1106.1 requiring a local government to accept and approve a residential changeout inspected by a residential changeout special inspector if: (1) the residential changeout is completed by a licensed contractor who is different than the residential changeout special inspector charged with inspection of that residential changeout; (2) the new appliance, and related connections, subject to the residential changeout meets all of the six specified conditions; (3) field inspection of the installation is performed by a certified residential changeout special inspector; and (4) the residential changeout special inspector provides the local government with a signed written certification that specifies work has been met and is compliant with the North Carolina State Building Code. Defines residential changeout as work requiring a building permit for the purpose of heating and air conditioning appliance and water heater replacement in dwellings subject to the North Carolina Residential Code, and individual residential units of condominiums and apartments provided the individual appliance serves only that residential dwelling unit. Upon the acceptance and approval of a signed certification by the local government, the local government, its inspection department, and its inspectors are discharged and released from any liabilities, duties, and responsibilities imposed by this Article with respect to or in common law from any claim arising out of or attributed to the residential changeout inspection for which the signed written certification was submitted.
Requires the Office of the State Fire Marshal, by July 1, 2025, to develop: (1) an internet-based examination and short course as described in new GS 143-151.24 and make it available on the Office's website for the purpose of certifying residential changeout special inspectors and (2) the form required under new GS 160D-1106.1 and make it available on the Office's website.
Part V.
Enacts new Article 9, Right to Repair Construction Defects Act, in GS Chapter 87. Requires before commencing an action against a general contractor for a construction defect that the claimant, no less than 90 days before filing the action, serve the general contractor with a written notice of claim that includes at least: (1) a statement that the claimant asserts a construction defect; (2) a description of the claim or claims in reasonable detail sufficient to determine the general nature of the construction defect; and (3) a description of any effects of the construction defect, if known. Gives the general contractor 30 days to inspect, offer to remedy, offer to settle, or deny; failure to do so is deemed a denial of the claim. Gives the claimant 10 days to respond to the offer; failure to do so is deemed a denial of the offer. Specifies that this does not prevent proceeding with a civil action or other remedy if the parties cannot reach a resolution. Requires the court, on motion of a party, to stay an action for 120 days (and additional time necessary for compliance) if a claimant files an action before complying with the above requirements. Applies to actions commenced on or after October 1, 2025.
Part VI.
Modifies GS 130A-280 (concerning scope of laws applying to public swimming pools), as amended by Section 4.51 of SL 2024-49, as follows. Removes list of minimum requirements that a private pool serving a single family dwelling must meet if it is offered to, and used by, individuals on a temporary basis utilizing a sharing economy platform (defined). Instead, now specifies that in all cases in which a fee is exchanged for access to a private pool serving a single family dwelling used only by the residents of the dwelling and their guests, the private pool must be maintained in good and safe working order. Also excludes from the Part’s regulations public cold baths that meet the specified requirements. Makes organizational changes. Makes technical changes to account for organization of the statute in GS Chapter 130A and other conforming changes, including to the statute's title. Effective July 1, 2025.
Part VII.
Includes a severability clause.