Bill Summary for H 661 (2025-2026)

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Summary date: 

Apr 4 2025

Bill Information:

View NCGA Bill Details(link is external)2025-2026 Session
House Bill 661 (Public) Filed Tuesday, April 1, 2025
AN ACT TO AMEND VARIOUS LAWS TO PROVIDE ADDITIONAL BUILDING INDUSTRY EFFICIENCY.
Intro. by Brody, Bell, Cunningham, Zenger.

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Bill 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.