Bill Summary for H 421 (2019-2020)

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Summary date: 

Jun 12 2019

Bill Information:

View NCGA Bill Details2019-2020 Session
House Bill 421 (Public) Filed Wednesday, March 20, 2019
Intro. by Sasser, Brody, Elmore, Dixon.

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Bill summary

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

Deletes the previously proposed provisions. Instead, enacts GS 143-138.2, establishing training and registration requirements for persons milling or offering ungraded lumber, as defined, for sale in the State for use in the construction of one- and two-family dwelling. Provides parameters for the required sawmill operation and lumber manufacturing training program component, establishing that a training program completion certificate is valid for seven years. Sets the registration fee with the Department of Insurance at $200, with registration effective for as long as the person has a valid certificate. Permits the use of ungraded lumber in the construction of one- and two-family dwellings when the use meets seven requirements, including that (1) the ungraded lumber is milled at the request of the person owning the source logs for use in the construction of the dwelling to be inhabited by that person, (2) the sawmill operator is registered with the Department of Insurance and has a valid training program completion certificate, (3) the ungraded lumber is sold directly by the owner of employee of the sawmill that milled the ungraded lumber to the owner of the dwelling to be constructed or a representative, and (4) the sawmill provides a local mill certification, as defined, to the owner of the dwelling to be constructed or a representative. Prohibits the owner of a one- or two-family residence built with ungraded lumber from selling or leasing the residence until the owner has occupied the home for no less than one year from the date of the issuance of the Certificate of Occupancy. Requires that if the title passes to another party within the one-year occupancy period for reasons other than the sale of the property, that the closing documents include a statement disclosing that the property was built using ungraded lumber. 

Directs the Building Code Council to amend the Residential Code for One- and Two-Family Dwelling consistent with the act. Additionally directs the Department of Insurance to adopt rules consistent with the act.