Bill Summary for S 368 (2025-2026)

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Summary date: 

Mar 24 2025

Bill Information:

View NCGA Bill Details(link is external)2025-2026 Session
Senate Bill 368 (Public) Filed Thursday, March 20, 2025
AN ACT MANDATING ALL OTHER PERIL INSURANCE COVERAGE FOR CERTAIN ENTITIES, AUTHORIZING THE OFFICE OF THE STATE FIRE MARSHAL TO CONTRACT FOR SERVICES FOR ITS RISK MANAGEMENT DIVISION, MANDATING PARTICIPATION OF PUBLIC EDUCATION BOARDS IN THE STATE PUBLIC EDUCATION PROPERTY INSURANCE FUND, AUTHORIZING THE OFFICE OF THE STATE FIRE MARSHAL TO CHARGE AND WAIVE REGISTRATION FEES FOR ADVANCED FIRE AND RESCUE COURSES, PROVIDING STATE FUNDS FOR THE WAIVER OF REGISTRATION FEES FOR COURSES OFFERED BY THE OFFICE OF THE STATE FIRE MARSHAL, AUTHORIZING THE STATE FIRE AND RESCUE COMMISSION TO CONDUCT ADMINISTRATIVE HEARINGS, CLARIFYING THE POWERS OF THE NORTH CAROLINA HOME INSPECTOR LICENSURE BOARD, EXTENDING EXEMPTION FROM DEPARTMENT OF ADMINISTRATION OF PASSENGER MOTOR VEHICLES TO THE OFFICE OF THE STATE FIRE MARSHAL, EXEMPTING MANUFACTURED HOME MANUFACTURERS AND DEALERS FROM SHOWROOM REQUIREMENTS, MODERNIZING TERMINOLOGY FOR THE CODE OFFICIALS QUALIFICATION BOARD, ESTABLISHING FEES AND PROCEDURES FOR CODE OFFICIALS QUALIFICATION BOARD APPROVAL OF TRAINING COURSES, AUTHORIZING THE CREATION OF A VOLUNTARY APPRENTICESHIP PROGRAM FOR CODE ENFORCEMENT OFFICIALS, CLARIFYING ELECTRICAL CODE REQUIREMENTS FOR ENERGIZING BUILDINGS, ENHANCING THE AUTHORITY OF THE STATE FIRE MARSHAL OVER LOCAL INSPECTIONS AND EMERGENCY ELECTRICAL INSPECTIONS, REQUIRING REFUNDS AND REMITTANCE OF BUILDING INSPECTION FEES WHEN INSPECTIONS ARE PERFORMED BY STATE AND OTHER OFFICIALS, AND ESTABLISHING RECORDS AND REPORTING REQUIREMENTS FOR LOCAL INSPECTION DEPARTMENTS, AS RECOMMENDED BY THE OFFICE OF THE STATE FIRE MARSHAL.
Intro. by Johnson, Barnes, Lazzara.

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Bill summary

Section 1.

Requires (1) in GS 58-31A-10, every public education board and every charter school approved pursuant to State law and (2) in GS 58-31-10, each State department, institution, or agency that insures their property against direct loss or damage in the State Public Education Property Insurance Fund (Fund) (public boards of education and charter schools) or the State Property Fire Insurance Fund (State Fund) (State units of government) to obtain and make payment for the all other perils coverage provided by each fund.  Effective July 1, 2025.

Section 2.

Effective July 1, 2025, authorizes the State Fire Marshal (Marshal) under GS 58-31A-15 (concerning the Marshal’s authority over the insurance coverage for public education property) to, through the State's agent of record, contract for any specialized or technical services necessitating expertise not otherwise available within the Marshal’s office and that is determined to be essential to efficient operations. Exempts such contracts from Article 3C of GS Chapter143, governing consultant contracts. Makes technical changes.

Section 3.

Requires public education boards to insure all property titled to the board against the described direct loss or damage to the properties in the Fund, unless a waiver is approved by the Marshal’s office. (Currently, public boards of education have discretion to insure in the Fund.) Directs the Marshal to only approve waivers if the public education board has sufficient minimum coverage of relevant perils. Makes conforming changes, including to section title. Directs that if any property titled to a public education board is covered by an insurance policy in effect on July 1, 2025, then the Fund will act as a coinsurer of the properties covered by that insurance until the expiration of that policy. Effective July 1, 2025.

Section 4.

Enacts GS 58-78A-18, authorizing the Marshal to charge State registration fees for advanced fire and rescue courses delivered by its office at the NC Emergency Training Center. Sets the fee at the tuition amount for equivalent community colleges. Authorizes the Marshal to grant fee waivers for the eight categories of persons described. Permits the Marshal to charge additional fees to cover the described expenses. Requires the Marshal to annual report to the specified NCGA committees on the number and types of waivers granted by February 1.

Provides funds to the Office of the State Fire Marshal (OSFM) based on the number of full-time equivalent (FTE) students enrolled in advanced fire and rescue courses delivered by OSFM at the North Carolina Emergency Training Center for whom State registration fees are waived. Directs OSFM to calculate FTE enrollment in the same manner as community colleges. Provides for how funds provided should be calculated. Clarifies that OSFM is not considered a community college, or subject to the requirements imposed on community colleges by GS Chapter 115D.

Effective July 1, 2025.

Section 5

Expands the powers and duties of the State Fire and Rescue Commission (Commission) under GS 58-78-5 to include conducting administrative hearings in accordance with Article 3A of GS Chapter 150B. Makes conforming change to GS 150B-38. Effective October 1, 2025, and applies to administrative hearings commenced on or after that date.

Section 6.

Expands the powers of the NC Home Inspector Licensure Board (Home Board) under GS 143-151.49 to authorize the Home Board to adopt rules regarding course content, instructor qualifications, approved course offerings, and other criteria for compliance with the education program. Sets a $200 fee cap for an online examination to obtain a home inspector license and makes conforming change to GS 143-151.57 (Home Board fee schedule). Effective October 1, 2025.

Section 7.

Exempts manufactured home dealers or manufactured home manufacturers (both as defined under State law) from the licensure requirements pertaining to the described motor vehicle manufacturers, factory branches, distributors, distributor branches, wholesalers, or dealers in GS 20-288.

Section 8.

Changes the defined term qualified code enforcement official to qualified code official. Expands the scope of their qualifications to engage in code compliance inspection or review (was just, code enforcement) in GS 143-151.8 (definitions pertaining to the NC Code Officials Qualification Board [COQB]). Makes conforming and technical changes to GS 143-151.12, listing the powers of the COQB.

Changes the type of qualifying documentation the COQB issues to the Code Officials who are any of the five listed occupations upon successful passage of the required exam under GS 143-151.13 from a certification to a license.  Removes requirement that such persons successfully complete a short course prescribed by the COQB. Authorizes the COQB in conjunction with the OSFM to establish a voluntary apprenticeship program for any of the licenses issued under GS 143-151.13, consisting of coursework and supervised work under the relevant licensee. Provides for an exam and fee not to extend beyond the program cost. Makes technical and conforming changes, including to the statute's title.

Requires each course sponsor of the professional development courses described in GS 143-151.13A to pay the COQB a $1 fee per approved credit hour for each individual who successfully completes a professional development course. Requires the course sponsor to also pay a filing fee of $100 to the Marshal per course up to $2,500 per calendar year. Requires an official who selects a course other than one offered by an approved course sponsor and who seeks approval of the course pursuant to rules adopted by the COQB to, upon approval of the course, pay a fee $1 per approved credit hour. Makes conforming changes, including to the statute's title.

Broadens extension of comity under GS 143-151.14 to licensees in good standing with the US Department of Defense or the International Fire Services Accreditation Congress. Makes conforming changes.

Increases the license renewal fee cap from $10 to $50 and gives COQB approval authority over continuing education courses, including charging a fee not to exceed $100 for review and approval of the courses under GS 143-151.16 (license and renewal fees). Makes technical and conforming changes.

Modifies the entity housing the Division of Engineering and Building Codes (Division) to reflect that it is within OSFM (was, Department of Insurance) in GS 143-151.19 (administration). Requires the Division to maintain a directory of all currently licensed Code officials (was, publication of an annual list). Makes technical and conforming changes.

Now directs the Marshal to deposit fees collected under the Article in the State treasury to COQB’s account (was, Insurance Regulatory Fund) in GS 143-151.21.

Makes conforming changes to GS 143-151.17 (grounds for discipline), GS 143-151.18 (penalties and injunctions for violations), GS 143-151.15, (concerning return of licenses to COQB), including to the statute's title, GS 143-151.20 (donations and appropriations), GS 143-151.22 as enacted by SL 2024-49 (NC State Building Code Permit Technician); and GS 143-151.23 (temporary licenses for disasters or emergencies), including to the statute's title.

Sets forth provisions governing the transition from certificates previously issued by the COQB to licenses as follows:

Automatic conversion. – All individuals holding valid probationary, standard, or limited Code-official certificates issued by COQB as of October 1, 2025, are automatically be deemed to hold the equivalent  licenses without further examination, application, fees, or  additional qualification requirements.

Pending applications. – An application for certification submitted prior to October 1, 2025, which remains pending on that date, will be processed as an application for licensure without resubmission or additional qualifications solely due to the change in designation from certificate to license.

Renewal of licenses. – Upon expiration of any certificate converted into a license, requires COQB to permit  individuals to renew their credential under the standards applicable to a license in accordance with the renewal provisions of GS 143-151.16, as amended by the act.

Effective October 1, 2025.

Section 9.

Clarifies in GS 143-143.2 that the electrical wiring of housing or buildings for lighting or other purposes must conform to the requirements of the NC State Electrical Code (was, Building Code) and other laws.

Section 10.

Amends GS 143-341 [powers and duties of the Department of Administration (DOA)] to exempt motor vehicles under the ownership, custody, or control of OSFM used primarily for law enforcement, fire, or emergency purposes, from being transferred to DOA under the schedule maintained by the Department of State.

Section 11.

Extends the Marshal’s authority to supervise local inspectors under GS 58-78A-15 as follows. Now requires the Marshal to also exercise general supervision over local inspection departments, including departments that issue permits for work subject to the North Carolina State Building Code (Code).  Authorizes the Marshal to undertake the specified corrective actions against a local inspection department under the circumstances described. Specifies that a local government whose inspection authority has been suspended may resume providing inspection services only in accordance with the requirements set forth in GS 160D-1102(b) (local government building enforcement). Clarifies that nothing in GS Chapter 58  prevents the Marshal or the State from directly performing inspection duties for any jurisdiction whose inspection department has been suspended. During any natural disaster or states of emergency, authorizes the Marshal to decree alternative methods for achieving compliance with the Code and to evaluate and approve any system regulated by the Building Code in the State by any means necessary. During emergencies and disasters, authorizes the Marshal to allow persons licensed as an electrical contractor to evaluate and approve systems regulated by the North Carolina Electrical Code and appropriate for such license directly affected by such event.

Amends GS 160D-402(d) to require, whenever an inspections department has been suspended under State law, the local government to remit all building permit, inspection, and reinspection fees collected by the local government for inspections to be conducted during the suspension period to the jurisdiction assigned to perform the inspections.

Clarifies that a local inspection department must keep the records and reports governed by GS 160D-1126 as prescribed by the Engineering Division of OSFM. Subjects any inspection department that fails to comply with GS 160D-1126 to suspension. 

Effective July 1, 2026.

Section 12.

Contains a severability clause.

Authorizes OSFM, COQB, the State Fire and Rescue Commission, and the North Carolina Home Inspector Licensure Board to adopt rules to implement the act.