PRIVATE COMMERCIAL BUILDING INSPECTION.

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View NCGA Bill Details2023-2024 Session
House Bill 893 (Public) Filed Tuesday, April 25, 2023
AN ACT TO AUTHORIZE INSPECTIONS BY PRIVATE INSPECTORS OF COMMERCIAL BUILDINGS AND STRUCTURES FOR COMPLIANCE WITH THE NORTH CAROLINA STATE BUILDING CODE AND TO EXPEDITE LOCAL GOVERNMENT APPROVAL OF SEALED COMMERCIAL AND MULTIFAMILY BUILDING PLANS.
Intro. by Brody, B. Jones, Pyrtle, Hardister.

Status: Ref To Com On Rules and Operations of the Senate (Senate action) (Sep 20 2023)

SOG comments (1):

Long title change

Committee substitute to the 2nd edition changed the long title. Previous long title was AN ACT TO AUTHORIZE INSPECTIONS BY PRIVATE INSPECTORS OF COMMERCIAL BUILDINGS AND STRUCTURES FOR COMPLIANCE WITH THE NORTH CAROLINA STATE BUILDING CODE.

H 893

Bill Summaries:

  • Summary date: Sep 12 2023 - View Summary

    House committee substitute to the 2nd edition makes the following changes.

    Amends proposed GS 143-151.14A to require that a standard Level I, II, or III private commercial inspector certification must be issued to a licensed engineer without requiring an exam (was, licensed engineers may be issued a standard Level I or Level II private commercial inspector certificate without examination or a Level III private commercial inspector certificate upon passing the exam).

    Makes a technical change in Section 3(d). 

    Amends proposed GS 160D-1105.1 (private commercial inspection authorized; exceptions) as follows. Adds that upon issuing an inspection report receipt the local government or Commissioner of Insurance, its inspection departments, and its inspectors are immune from any liabilities, duties, and responsibilities with respect to or in common law from any claim arising out of or attributed to the inspection for which the report was submitted. No  longer excludes from the statute final fire inspections under new GS 160D-1105.2. Deletes the content of proposed GS 160D-1105.2, which specified that private commercial inspectors did not have authority to conduct final fire inspections and instead provides that Article 11 does not prevent a local government, before issuing a certificate of occupancy, from conducting acceptance testing or approving any fire prevention systems for which a private commercial inspector has issued a certificate of compliance. 

    Makes a technical change to Section 3(j).

    Amends the proposed changes to GS 160D-1110 as follows. Removes the requirement that the local government permit fee schedule for projects to be inspected by private commercial inspectors be reduced by 80% and the remaining 20% retained by the local government as an administrative cost. Provides instead that a project is subject to the same local government permit fee schedule that would apply without the notice of intent to use a private commercial inspector for a commercial development project. Makes additional clarifying and technical changes.

    Amends GS 160D-116 by adding that upon issuing a certificate of occupancy or temporary certificate for any commercial project in which a private commercial inspector has issued a certificate of compliance, the local government or Commissioner of Insurance, its inspection departments, and its inspectors are immune from any liabilities, duties, and responsibilities with respect to or in common law from any claim arising out of or attributed to the certificate of compliance.

    Adds the following new content, effective July 1, 2024..

    Enacts GS 160D-1110.1, requiring local governments to complete review of commercial and multifamily building plans submitted with a permit application sealed by a licensed engineer or licensed architect and issue applicable building permit decisions within 21 days after a local government receives all necessary approvals unless otherwise agreed by the parties. Requires the local government to issue all applicable permits within 10 days after receiving additional requested information or a resubmitted plan with changes from the permit applicant. Authorizes local governments to use and contract with the Department of Insurance (DOI) or contract with licensed engineers or certified architects to perform plan reviews within the timeframe required. Allows the permit applicant to elect, if the review does not exceed the prescribed time, to contract with any of the following to perform independent third-party plan reviews: (1) a licensed professional engineer or licensed architect that meets the certification requirements, (2) a private commercial inspector that meets the specified certification and registration requirements, or (3) DOI and its marketplace pool of qualified Code-enforcement officials. Also allows the permit applicant to use and contract with one of the entities if the local government does not issue applicable building permit decisions or determines that it is unable to complete plan reviews within the required time frames. Requires the applicant to provide the local government with a written certification signed by the plan review that complies with application Building Codes and applicable State and local laws. Directs the local government to create a form for certification. Requires the local government to issue applicable permits for a project within three business days of accepting a completed plan review with certification, and refund or waive all applicable plan review and permit fees upon issuance of the permits. Requires third-party plan reviewers to avoid conflicts of interest in conducting reviews. Provides immunity and releases the local government, its inspection department, and its inspectors from any liabilities, duties, or responsibilities under the Article or in common law arising from plans reviewed and certified by a third party. Bars a local government from delaying or denying the issuance of applicable permits based on the receipt of requested manufacturer specifications or engineering information on an element, component, or fixture related to submitted plans. 

    Amends GS 143-151.8 to include persons contracting with a local government or a permit applicant to perform third-party plan reviews under new GS 160D-1110.1(c) in the definition of Code enforcement

    Amends GS 143-151.12 to require DOI to make its marketplace pool of qualified Code-enforcement officials available when requested by a permit applicant under new GS 160D-1110.1(c).

    Amends GS 143-151.13 to allow a licensed architect or licensed engineer who is not employed by the State or a local government to use a standard certificate, which authorizes practice as a qualified Code-enforcement official based on the license held, to perform third-party plans reviewed under GS 160D-1110.1(b) and (c).

    Amends GS 160D-403 by requiring local governments to ensure development approval processes run concurrently with other applications or processes from approvals notwithstanding that related development approvals for the project have not yet been obtained.

    Amends the act's long title. 


  • Summary date: Jun 14 2023 - View Summary

    House committee substitute to the 1st edition makes the following changes.

    Amends GS 143-151.16 by amending the cap on fees (was, $20 in current law and $50 in 1st edition) to the following: (1) $20 for certification as a qualified Code-enforcement official and (2) $200 for certification as a private commercial inspector. Also amends the cap on the renewal application fee (was, $10 in current law and $200 in 1st edition) to the following: (1) $10 for a qualified Code-enforcement official and (2) $50 for a private commercial inspector. Makes additional technical changes.


  • Summary date: May 1 2023 - View Summary

    Amends Article 9C of GS Chapter 143 as follows.

    Adds and defines private commercial inspection in GS 143-151.8, applicable to Article 9C governing the NC Code Officials Qualification Board (Board), defining the term as inspection by a private commercial inspection of the manner, workmanship, and materials for the construction of commercial buildings and structures for compliance with the NC Building Code (Code), excluding sections pertaining to boilers and elevators. Also adds and defines private commercial inspector.

    Adds the following to the powers of the Board under GS 143-151.12: (1) certification and registration of private commercial inspectors; (2) establishing minimum standards and level of education and experience for private commercial inspector instructors; (3) conducting and encouraging research by public and private agencies be designed to improve education and training in private commercial inspection; (4) consulting and cooperating with local government entities, State and other governmental agencies, and educational institutions on the development of private inspector schools, training, programs, and courses of instruction; (5) ensuring the minimum standards for education of private commercial inspectors includes specific instruction on the duties and responsibilities imposed by law on such inspectors; and (6) establishing criteria to be used by the Department of Insurance (DOI) to verify that private commercial inspectors meet the standards of the profession. 

    Adds new subsections to GS 143-151.14 (comity) authorizing the Board to grant a standard private commercial inspector certificate for a particular type of position and level for individuals holding certification as the equivalent of a private commercial inspector in good standing by a similar out-of-state board or by the International Code Council, without requiring an exam. Provides for a three-year certificate.

    Enacts GS 143-151.14A to require certification to engage in private commercial inspection. Provides for a standard private commercial inspector certificate. Specifies that if an applicant for a private commercial inspector certificate is a person other than an individual, the examination must be taken by one or more of the responsible managing officers or members of the personnel of the applicant. Upon successfully passing an examination, provides for issuance of a certificate to building, electrical, mechanical, plumbing, or fire inspectors, with the certificate limiting the scope of practice to the specific inspection area and level. Allows for qualification for more than one standard certificate. Provides for Levels I-III of certificates and coordinating authorities to be provided by Board rules. Requires Level I and II standard certificates be issued to applicants who hold certification as a Code-enforcement official, architectural license, or engineering license. Only allow issuance of a Level III certificate to those individuals if they pass the exam. Exempts architects and engineers sitting for the Level III exam from any required prerequisite exam classes. 

    Enacts GS 143-151.14B to authorize the Board to establish professional development requirements for private commercial inspectors as a condition of certificate renewal or reactivation. Prohibits requiring more than six credit hours per 12 month renewal period. Provides for two of the six continuing education hours of licensed architects and engineers to pertain to those professions. Authorizes the Board to require certified individuals to complete professional development courses within one year of certification, not to exceed six hours in each technical area of certification. Details specific authorities for professional development requirements for reactivation of a standard certificate. Provides for extensions to meet the requirements. Authorizes the Board to adopt implementing rules that govern seven specified areas, including the ability to carry forward course credit and the procedures for compliance and sanctions for noncompliance.

    Amends GS 143-151.15, deeming certificates valid as long as the person certified is employed by a private commercial inspector or self-employed as a private commercial inspector. Makes provisions applicable to returning and reissuing certificates of Code-enforcement officials applicable to standard private commercial inspector certificates.

    Expands GS 143-151.17 to prohibit a private commercial inspector from inspecting any property in which the inspector, or a person with whom the inspector has a close familial (as defined), business, or other associational relationship, has ownership or direct financial interest. Extends the Board's investigative powers to actions of qualified private commercial inspectors and applicants, as well as the Board's disciplinary authority under the statute.

    Expands GS 143-151.16, GS 143-151.18, and GS 143-151.19, making the provisions governing certification fees, renewal certificates, examination fees, Article violations and penalties, and Article administration applicable to Code-enforcement officials applicable to private commercial inspectors.

    Enacts GS 143-151.19A to require registration with the Board to engage in private commercial inspection by submission of an application that includes proof of certification, designation of the individual designated as the chief private commercial inspector for entity registrants, and an inspection procedure plan that meets the specified criteria, and other required information. Exempts private commercial inspectors employed by a firm, corporation, or other legal entity from inspection procedure plan requirement. Provides for a registration number upon review of the plan and the person's qualifications, or written notice of the Board's basis for denial and the opportunity to resubmit the application. Allows for review of denied resubmitted applications. Requires the Board to maintain a list of registrations. Allows for amendments to registration or inspector procedure plans by private commercial inspectors to the Board at any time. Requires the Board to establish a fee schedule for registrations, not to exceed $20 per applicant.

    Makes changes throughout the above amended statutes to update statutory cross-references.

    Amends GS Chapter 160D as follows.

    Amends GS 160D-402 to require local governments to return fees to permit holders upon inspections performed by a private commercial inspector.

    Amends GS 160D-403 to exclude from the inspector authorities provided in subsection (e) work for which a holder has elected to use private commercial inspections for inspection of commercial buildings and structures for compliance with the Code. Prohibits local governments from conducting final inspections of work or activity on commercial buildings or structures for projects under GS 160D-1105.1, as enacted, regarding inspection reports of commercial buildings or structures by a private commercial inspector. Corrects a statutory cross-reference.

    Adds private commercial inspection and private commercial inspector to the defined terms of Article 11, Building Enforcement, defined by statutory cross-reference.

    Amends GS 160D-1102, to prohibit local governments from adopting or enforcing any ordinance prohibiting private commercial inspections by private commercial inspectors, and prohibits the Commissioner of Insurance from doing the same when DOI has intervened pursuant to subsection (b), upon failure of the local government to provide inspection services as required by law.

    Enacts GS 160D-1103.1 to prohibit private commercial inspections except by qualified private commercial inspectors pursuant to Article 9C of GS Chapter 143, as amended.

    Makes conforming changes to GS 160D-1104 to exclude from the scope of local government duties and responsibilities timely inspections made by private commercial inspectors and certificates of compliance with the Code issued or denied by a private commercial inspector.

    Amends GS 160D-1105, authorizing local governments to contract with a private commercial inspector certified and registered under Article 9C of GS Chapter 143, as amended, to conduct inspection under Article 11. Additionally authorizes a permit holder to contract with a private commercial inspector to conduct private commercial inspections of commercial buildings and structures for compliance with the Code. Specifies that a Code Enforcement official employed by a local government but who also holds a private inspector certificate cannot be prohibited from engaging in private commercial inspection outside the local government’s jurisdiction.

    Enacts GS 160D-1105.1 to require local governments and the Commissioner of Insurance to accept and approve, without any further responsibility to inspect, a signed inspection report evidencing the inspection of a commercial building or structure by a private commercial inspector that meets seven criteria, in the event DOI has intervened pursuant to GS 160D-1102(b) due to the local government's failure to make required inspections. Criteria include that (1) the private commercial inspection is limited in scope to compliance with the Code; (2) proof of compliance with financial responsibility requirements; and (3) execution of a written contract between the permit holder and the private commercial inspector that contains six specified terms. Upon issuing an inspection report receipt, relieves the local government, the Commissioner of Insurance, its inspection departments, and its inspectors of liability and responsibilities with respect to the inspection. Requires the inspection report comply with the form developed by the Board. Excludes final fire inspections.

    Enacts GS 160D-1105.2, explicitly denying private commercial inspectors authority to conduct final fire inspections required by the Code.

    Enacts GS 160D-1105.3 to establish bond requirements of building permit applicants intending to use a private commercial inspector. Provides for the permit holder to request the local government resume project inspections at any time, which allows local governments to claim against the payment bond inspection costs or otherwise seek payment from the permit holder.

    Enacts GS 160D-1105.5 to direct the Board to develop specified uniform forms for use by private commercial inspections. Limits information local government can require to information provided on these forms.

    Makes conforming changes to GS 160D-1109, regarding violations of inspection department members for failure to perform duties.

    Amends GS 160D-1110 requiring permit applicants to attach an addendum to permit applications or amendments noticing intent to use a private commercial inspector on the project, with specified required content. Provides for a reduction in the permit fee by 80%, with the remaining 20% retained by the local government for administrative costs. Allows building permit holders using the local inspection department for project inspections, upon three days notice to the local inspection department, to use a private commercial inspector to conduct the inspection due on the project and to issue a project inspection report. Specifies that each use of a private commercial inspector on a project under GS 160D-1110 requires separate notice to the local government inspection department. Provides for local governments to not interfere with permitted projects being inspected by private commercial inspectors, except for the final fire inspection to be conducted by the local government and inspections necessary to determine compliance with applicable local law.

    Amends GS 160D-1112 to require building permits to be amended to designate the use of or changed in the designated private commercial inspector.

    Amends GS 160D-1116 to include private commercial inspectors in the duties of inspectors regarding final inspections and the issuance of certificates of compliance. Requires certificates issued by private commercial inspectors to be in the form developed by the Board. Requires a private commercial inspector to give a local government 60 days' notice of the date the inspector anticipates issuing a certificate of compliance, as specified, and provide a copy of an issued certificate of compliance to the local government, as specified, with receipt required to be acknowledged by the local government. Provides that only a local government may issue a temporary certificate of occupancy. Prohibits withholding a certificate of occupancy for which a certificate of compliance has been issued by a private commercial inspector. Provides for the local government and Commissioner of Insurance's reliance upon a certificate of compliance issued by a private commercial inspector and resulting indemnity. Expands the Class 1 misdemeanor for violating subsections (a) and (b) to now cover violations of the statute, as amended.

    Effective July 1, 2024.

    Directs DOI to adopt temporary implementing rules within 90 days of the act becoming law, but specifies that no rules can become effective until July 1, 2024.