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

Removes the following provisions:

• GS 160D-1505 which would have prohibited a county from 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.
• Amendments to GS 87-22 that would have doubled the fees for annual licensing of plumbing and heating contractors and for the fee for late renewals.
• Amendments to GS 87-22.1 that would have increased the fee for the plumbing and heating contractor's exam from $150 to $200.
• Amendments to GS 87-44 that would have increased by $50 the fees for licenses for electrical contractors.
• Authorizations to the Code Enforcement Qualification Board to certify Residential Changeout Special Inspectors and to create a residential changeout alternate inspection method in Part V.
• Establishing the right to repair construction defects within dwellings subject to the NC Residential Code in Part V.

Part I.

Changes the effective date of new GS 160D-1502 (prohibiting municipalities from implementing design methods and construction standards for new streets and highways to be accepted by a municipality) to apply to projects initiated on or after January 1, 2026 (was, July 1, 2025).  

Amends GS 160D-1504 so that it now directs a local government that requires a developer to construct pedestrian facilities or roadway improvements, which include improvements within public right-of-way located outside of a construction project boundary, to standards or with attributes which would preclude a pedestrian facility or roadway improvement from acceptance by the North Carolina Department of Transportation (DOT), to coordinate with DOT to enter into agreements for the local government to assume maintenance and repair responsibilities for the portions of pedestrian facilities or street improvements precluded from acceptance by DOT (was, required 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). Removes provisions specifying that the statute does not apply to a public right-of-way under DOT’s control. Extends the effective date to January 1, 2026.

Part II.

Replaces references to specified codes with defined term code (consisting all of the following: (1) the North Carolina State Building Code adopted by the Building Code Council and Residential Code Council; (2) local building rules approved by the Building Code Council and Residential Code Council; (3) any resolution adopted by a federally recognized Indian Tribe in which the Tribe adopts the North Carolina State Building Code and related local building rules and (4) the standards adopted by the State Fire Marshal) into code enforcement and the definition of willful misconduct, gross negligence, or gross incompetence in GS 143-151.8 (definitions pertaining to the NC Code Officials Qualifications Board).

Defines emergency responder communication coverage requirements (Requirements) to mean those requirements for in-building emergency responder communications enhancement systems specified under Section 510 of the North Carolina Fire Prevention Code (Code). Exempts two categories of structures from the Requirements, including apartments and transients public lodging establishments that meet certain height or story requirements with the requisite egress. Directs that an emergency responder radio coverage system installed prior to the effective date of the section in a building or structure that meets the exemption criteria is not be required to be removed and allows those systems to be deactivated. Requires the Building Code Council (Council) to adopt rules to amend the Code in line with the provisions of the Requirements. Applies the APA’s effective date provisions triggered when 10 or more written objections are received to the rule (GS 150B-21.3). Specifies that the provisions of the APA requiring review by the rules commission do not apply. Until permanent rules are adopted as discussed above, instructs the Council and local governments enforcing the Code not to enforce the emergency responder radio coverage requirements against buildings and structures that meet the exemption criteria and instead allow for deactivation of such systems instead. Sunsets the Requirements when the Council adopts permanent rules.

Part III.

Extends the effective date for the changes to GS 87-1, GS 160D-1110, and GS 143-138 from July 1, 2025, to January 1, 2026.

Amends GS 87-13.1 by reinstating the $5,000 cap on attorney's fees awarded when the Board prevails in an action under the statute.

Part IV.

Enacts GS 58-78A-18 (concerning residential changeout work certification development) directing the Office of the State Fire Marshal (Marshal) to develop a Residential Changeout Work Certification form for a local government to utilize in its building permit application process for residential changeout work. Directs the Marshal to publish the form on its website. Provides for development of the form, as specified, with the Council and Residential Code Council. Enacts GS 160D-1106.1 (residential changeout work inspection exemptions) as follows. Defines residential changeout work as work that requires a building permit for heating and air conditioning appliance replacement in (i) a dwelling subject to the North Carolina Residential Code or (ii) an individual residential unit of a multifamily building, including a condominium or apartment, provided the individual appliance serves only that residential dwelling unit. Requires a local government to accept and approve, without further responsibility to inspect, residential changeout work if all of the three listed conditions are met, including submission of a signed written residential changeout work certification by the contractor. Limits the information a local government may require to the information required by its building permit application process and by the certification. Provides for delivery of the certification. Specifies that upon the acceptance 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 work for which the signed certification was submitted. Allows a local government to charge a fee to cover costs incurred in processing forms related to residential changeout work certifications, capped at $20 in GS 160D-402. Effective January 1, 2026. Directs the Marshal to develop the residential changeout work form by October 1, 2025, and to make it available on its website by then.

Part V.

Increases the threshold amounts for construction or repair contracts from $500,000 to $1.5 million and purchase contracts from $90,000 to $180,000 that trigger the formal bidding requirements in GS 143-129. Effective July 1, 2026.