Amends Article 9C of GS Chapter 143 as follows.

Adds commercial building or structure, private construction inspection, private construction inspection firm, private construction inspector (Inspector), and residential building or structure to the definitions in GS 143-51.8. Expands the acts that constitute "willful misconduct, gross negligence, or gross incompetence" under the Article to include, refusing to accept, without legal authority, a private construction inspection report or private certificate of State Building Code (SBC) compliance that is required to be accepted under law.

Adds the following to the powers of the NC Code Officials Qualification Board (Board) under GS 143-151.12: (1) certification and registration of individuals as qualified private construction inspectors and registration of private commercial inspection firms for the purpose of conducting private construction inspections; (2) ensuring minimum standards and level of education and experience for private construction inspector instructors are met; and (3) establishing criteria to be used by the Office of State Fire Marshal (Office) to verify that private construction inspectors and firms meet the standards of the profession. 

Enacts GS 143-151.14A to require certification to engage in private construction inspection. Provides for a standard private construction inspector certificate (Certificate). Upon successfully passing an examination, provides for issuance of a certificate to building, electrical, mechanical, plumbing, fire, or residential changeout 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. Requires the Board to issue a Certificate to an individual currently certified as a Code-enforcement official under the Article for the same type of position and level for which the individual holds a valid Code-enforcement certificate as well licensed architects and engineers, without further examination. Authorizes the Board to require a short course on the Code before issuing a Certificate to an architect or engineer. Requires the Board to adopt rules on the qualifications, certificate levels, experience requirements, examinations, short courses, and other standards necessary to implement the statute. Enacts GS 143-151.14B, requiring annual professional development, as developed by the Board for Inspectors of not more than six credit hours. Authorizes initial professional development courses in the first year a person is certified as an Inspector, not exceeding six credit hours in each area they are certified. Allows the Board to impose continuing education as a condition of reactivating a Certificate. Authorizes the Board to adopt rules to implement the statute.

Expands the conditions under which a certificate issued by the Board is valid under GS 143-151.15 to include persons who are employees or contractors of private construction inspection firms or self-employed Inspectors. Makes conforming changes. Adds application fee of not more than $200 for certification as an Inspector in GS 143-151.16 and a renewal fee of not more than $50. Makes conforming changes. Expands the disciplinary provisions of GS 143-151.17 to Inspectors and private construction inspection firms (Firms). Adds conflict of interest provisions barring Inspectors, from inspecting property where they, their Firm, or a person with whom they have a close relationship with has ownership or a direct financial interest. Bars Inspectors from inspecting property where they or the firm have furnished labor, materials, designs, or other specified items or services for the project. Clarifies that compensation paid to an Inspector or Firm for inspection services does not, by itself, create a prohibited financial interest. Makes technical and conforming changes.

Prohibits, in GS 143-151.18, a person from representing that they are a code enforcement official or Inspector unless they currently hold a valid Board certificate and/or registration (Inspector). Prevents a legal entity from holding itself out as a Firm unless registered under GS 143-151.19A. Prohibits persons from engaging in code enforcement or inspecting unless they hold a valid certificate to do so. Applies to offenses committed on or after July 1, 2027.

Makes conforming changes to GS 143-151.19, concerning records kept by the Board, to account for Inspectors and Firms established by the act. Enacts GS 143-151.19A, requiring registration as an Inspector or Firm before conducting any inspections. Provides for application and submission of an inspection procedure plan. Requires the Board to maintain a public registry with the identifying information of Inspectors and Firms. Allows an Inspector or Firm to amend their registration with the Board within 30 days after any material change in the material required by the statute.  Authorizes registration fee not to exceed $50 for an individual Inspector and $200 for each Firm.

Effective July 1, 2027.

Part II.

Adds private construction inspection, Inspector, and Firm to GS 160D-1101 (definitions pertaining to building code enforcement). Prohibits local governments or the State Fire Marshal (Marshal) from barring inspections conducted by a Firm or Inspector in GS 160D-1102. Enacts GS 160D-1103.1 limiting private construction inspections to only being conducted by an Inspector qualified to conduct the type and level of inspection required for the building, structure, trade, system, or work being inspected. Clarifies that the duties and responsibilities of an inspection department do not include inspections by an Inspector. Increases the department's duties relating to certificates of compliance to include acceptance of such certificates in GS 160D-1104.

Authorizes, in GS 160D-1105, a local government to contract with an Inspector or Firm to conduct inspections. Allows the owner, permit holder, contractor, or other authorized agents to contract with an Inspector or Firm to conduct inspections of residential or commercial buildings and structures for compliance with the SBC. Prevents an employment contract or other device from barring a code enforcement official employed by a local government and certified and registered as an Inspector from engaging in private construction inspection outside of their local government employer’s jurisdiction.

Enacts GS 160D-1105.1 (private construction inspection authorized after delayed local inspection). Defines associated inspection, delayed inspection, and requestor. Allows a requestor (owner, permit holder, contractor, or other authorized agents) to request an inspection from the local inspection department and requires the local inspection department to conduct that inspection within ten business days after the inspection is first requested. Requires a local inspection department to inform the requestor in writing if it is unable to meet the inspection deadline. Authorizes the parties to agree to a different inspection day and time. If all that occurs, then allows the requestor to use an Inspector or Firm to conduct the inspection. Provides for notice of election and amended notices, a written contract between the requestor and the Firm or Inspector, and an inspection report,. Requires the local government and/or the Marshal (if applicable) to accept an inspection report stating that the work complies with the SBC so long as the eight listed conditions are met.

Preserves a local government’s and/or the Marshal’s authority to:

1. Conduct inspections necessary to determine compliance with any local law applicable to the construction of residential or commercial buildings or structures if that local law is not part of the SBC;
2. Conduct acceptance testing of, or to approve, a fire prevention system before issuing a certificate of compliance or temporary certificate of occupancy under new GS 160D-1105.2;
3. To, along with the Marshal, issue a stop work order, notice of violation, or other enforcement action when the local government or Marshal has reasonable cause to believe that construction is being performed in violation of the SBC or that an immediate danger to life, limb, or property exists;
4. Authorize an Inspect to inspect or enforce Code provisions pertaining to boilers or elevators;
5. Reject an incomplete inspection report or a report submitted by an unqualified inspector, or one who is in violation of the conflict-of-interest provisions set forth below or discussed above.

Prohibits an Inspector or Firm from conducting an inspection under the statute if the Inspector, Firm or a person affiliated with is currently employed by, affiliated with, or under common ownership or control with the owner, permit holder, contractor listed on the permit, or authorized agent, other than through the contract for private construction inspection services authorized by the statute. Authorizes the Board to establish by rule a look-back period for prior employment, affiliation, ownership, or control that disqualifies a private construction inspector or private construction inspection firm from inspecting a project. Upon acknowledging receipt of an inspection report, specifies that the local government or Marshal, its inspection departments, and its inspectors are not liable for a claim arising from or attributable to the inspection for which the inspection report was submitted pursuant to the statute.

Clarifies that the statute does not limit the ability of a permit holder to request that the Marshal assign personnel to conduct an inspection. If a request for an inspection has been made and the inspection has not been conducted when an election is made under the statute for the same item of work under the SBC, specifies that the election is not effective until the permit holder or requestor withdraws the request in writing or the Marshal declines to assign personnel to conduct the inspection. Prevents a person from using both a report of an inspection performed by the Marshal or its staff and an inspection report submitted under the statute to establish compliance of the same item of work with the SBC. Directs the local government to return any inspection fee at the conclusion of a project when the inspection fee is done by a Firm or Inspector in new GS 160D-1105.3. If a Firm or Inspector stops or otherwise abandons the inspection work and no substitute is provided, requires the local government to resume responsibility for the inspection upon request. Authorizes the local government to require submission of all accepted private construction inspection reports before resuming inspections and to charge a separate fee for resuming the inspection. Tasks the Board with developing uniform forms for private construction inspections in GS 160D-1105.4. Prohibits a local government from modifying those forms or requiring other information except for requiring a permit number, project number, parcel number, or other local identifier necessary to match the form to the local government's permit record.

Effective July 1, 2027, and apply to inspection requests made on or after that date.

Part III.

Specifies that a member of a local government inspection department is not in violation of GS 160D-1109 (failure to perform duties) when it acknowledges receipt of or accepts an inspection report by an Inspector or Firm or a private certificate of SBC compliance.

Directs a local inspection department to maintain the required notices pertaining to use of an Inspector or Firm under new GS 160D-1105.1, in GS 160D-1110.  Clarifies that the election to use an Inspector or Firm does require a new building permit or amendment of the existing permit. Clarifies that a local government issuing a building permit for a project for which one or more private construction inspections are conducted under new GS 160D-1105.1 should continue to perform any inspection or review that the local government is otherwise authorized or required by law to perform and that is not within the scope of the private construction inspection. Specifies that an election to use a Firm or Inspector is not, by itself, a change or deviation from the application, plans, or permit under GS 160D-1112 (changes in work).

For a project for which one or more private construction inspections are conducted, provides that the inspection department may rely on an inspection report submitted or a private certificate of SBC compliance in determining whether to issue a certificate of compliance under GS 160D-1116. Authorizes an Inspector to issue a private certificate of compliance with the SBC only for the building, structure, unit, trade, system, phase, or portion of the project within the scope of the private construction inspector's certificate, registration, notice, and written contract. Specifies that a private certificate is not a certificate of compliance issued by the inspection department and does not, by itself, authorize occupancy. Directs an Inspector issuing a private certificate of SBC compliance to provide the inspection department with a copy of the private certificate. For a project for which one or more private construction inspections are conducted, authorizes the inspection department to rely on an inspection report submitted or a private certificate of SBC compliance in determining whether to issue a temporary certificate of occupancy. Prohibits an inspection department from withholding a certificate of compliance or temporary certificate of occupancy solely because an inspection report or private certificate of SBC compliance has been submitted by an Inspector.  Authorizes the local government to rely on an Inspector’s inspection report or certificate of SBC compliance as evidence that the inspected work complies with the SBC and are not liable for a claim arising from or attributable to the Inspector’s inspection report or private certificate of SBC compliance. Clarifies that a private certificate of SBC compliance issued by an Inspector does not constitute approval of compliance with zoning, subdivision, stormwater, erosion and sedimentation control, driveway, utility, fire prevention system acceptance testing, or any other local or State law that is not part of the North Carolina State Building Code. Makes organizational and clarifying changes.

Makes conforming change to GS 160D-402 to account for credit or refund of local government inspection fee when a private inspection occurs under new GS 160D-1105.1. Clarifies that GS 143-139.4 does not limit the authority of an owner or other specified person to elect to use a Firm or Inspector under GS 160-1105.1. Specifies, if a request for work has already been made to the Marshal, that the election is not effective until the permit holder or requestor withdraws the request in writing or the Marshal declines to assign personnel to conduct the  inspection. Prevents a person from using both a report of an inspection performed by the Marshal or its staff and an inspection report submitted under the statute to establish compliance of the same item of work with the SBC.

Effective July 1, 2027.

Part IV.

Authorizes the Board and the Marshal to adopt temporary rules and begin rulemaking no later than 90 days after the act’s effective date. Allows a rule to become effective before July 1, 2027, but does not authorize private construction inspection before July 1, 2027. Allows the Board to develop the forms, registration process, the registry, and accept applications for certification and registration before July 1, 2027. A certificate or registration issued before July 1, 2027, does not authorize a person or firm to conduct a private construction inspection before July 1, 2027.