GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

S	1 

SENATE BILL 176*

Short Title:  Boiler/Elevator Inspection.	(Public)
─────────────────────────────────────── 
Sponsors: Senators Goldston, Ezzell, Hunt of Durham, and Plyler.
─────────────────────────────────────── 
Referred to:  State Government.
─────────────────────────────────────── 

February 16, 1989

A BILL TO BE ENTITLED
AN ACT TO TRANSFER REGULATION OF BOILERS AND INSPECTION OF ELEVATORS, AMUSEMENT DEVICES AND PASSENGER TRAMWAYS FROM THE DEPARTMENT OF LABOR TO THE BUILDING CODE COUNCIL OF THE DEPARTMENT OF INSURANCE.
The General Assembly of North Carolina enacts:
Section 1.  Article 7A of Chapter 95 of the General Statutes is recodified as Article 2D of Chapter 58 of the General Statutes and reads as rewritten:
                       "ARTICLE 2D.
"Uniform Boiler and Pressure Vessel Act.
"§ ¨ This Article shall be known as the Uniform Boiler and Pressure Vessel Act of North Carolina.
"§ o As used in this Article, unless a different meaning is plainly required by the context:
		(1)	The term ‘boiler' means a closed vessel in which water is heated, steam is generated, steam is superheated, or any combination thereof, under pressure or vacuum for use externally to itself by the direct application of heat from the combustion of fuels, or from electricity or nuclear energy. This term ‘boiler' shall also include fired units for heating or vaporizing liquids other than water where these units are separate from processing systems and are complete within themselves;
	(2)	The term ‘Commissioner' means the North Carolina Commissioner of Insurance;
	(3)	The term ‘Director' means the Director of the Engineering Division within the Department of Insurance;
	(4)	The term ‘inspection certificate' shall mean certification by the Director that a boiler or pressure vessel is in compliance with the rules adopted under this Article;
	(5)	The term ‘inspector's commission' shall mean a written authorization by the Commissioner for a person who has met the qualifications set out in this Article to conduct inspections of boilers and pressure vessels;
	(6)	The term ‘pressure vessel' shall mean a vessel in which the pressure is obtained from an indirect source or by the application of heat from an indirect source or a direct source, other than those included within the term ‘boiler.'
"§ (a) This Article applies to all boilers and pressure vessels constructed, used, or designed for operation in this State including all new and existing installations which are operated in connection with business buildings, institutional buildings, industrial buildings, assembly buildings, educational buildings, public residential buildings, recreation buildings, other public buildings, and water supplies. This Article shall also apply to boilers and hot water supply tanks, and heaters located in hotels, motels, tourist courts, camps, cottages, resort lodges, and similar places whenever the owner or operator advertises in any manner for transit patronage, or solicits such business for temporary abode by transit patrons.
(b)	This Article shall not apply to:
(1)	Boilers and pressure vessels owned or operated by the federal government;
(2)	Pressure vessels used for transportation or storage of compressed gases when constructed in compliance with the specifications of the U.S. Department of Transportation and when charged with gas marked, maintained, and periodically requalified for use, as required by appropriate regulations of the U.S. Department of Transportation;
(3)	Portable boilers and pressure vessels used for agricultural purposes only or for pumping or drilling in an open field for water, gas or coal, gold, talc or other minerals and metals;
(4)	Boilers and pressure vessels which are located in private residences or in apartment houses of less than six families;
(5)	Pressure vessels used for transportation or storage of liquified petroleum gas;
(6)	Air tanks located on vehicles licensed under the rules and regulations of other state authorities operating under rules and regulations substantially similar to those of this State and used for carrying passengers or freight within interstate commerce;
(7)	Air tanks installed on right-of-way of railroads and used directly in the operation of trains;
(8)	Pressure vessels that do not exceed five cubic feet in volume and 250 PSIG pressure; or one and one-half cubic feet in volume and 600 PSIG pressure; or an inside diameter of six inches with no limitations on pressure;
(9)	Pressure vessels operating at a working pressure not exceeding 15 PSIG pressure;
(10)	Pressure vessels with a nominal water capacity of 120 gallons or less and containing water under pressure at ambient temperature, including those containing air, the compression of which serves as a cushion;
(11)	Boilers and pressure vessels on railroad steam locomotives that are subject to federal safety regulations;
(c)	The construction and inspection requirements established by the Department of Insurance shall not apply to hot water supply boilers which are directly fired with oil, gas or electricity, or hot water supply tanks heated by steam or any other indirect means, which do not exceed any of the following limitations:
(1)	Heat input of 200,000 BTU HR;
(2)	Water temperature of 200 degrees F;
(3)	Nominal water capacity of 120 gallons;
provided that they are equipped with ASME Code and National Board certified safety relief valves.
(d)	The construction requirements established by the Department of Insurance shall not apply to pressure vessels installed in this State prior to December 31, 1981, that:
(1)	Are of one-piece, forged construction and have no weldments;
(2)	Are constructed before January 1, 1981, and operating or could be operated, under the laws of any state that has adopted one or more sections of the ASME Code;
(3)	Are transferred into this State without a change of ownership; and
(4)	Are determined by the Director to be constructed under standards substantially equivalent to those established by the department at the time of transfer;
provided that they are equipped with ASME Code and National Board certified safety relief valves.
(e)	The construction requirements established by the Department of Insurance shall not apply to pressure vessels installed in this State prior to December 31, 1984, that:
(1)	Are manufactured from gray iron casting material, as specified by the American Society for Testing and Materials, (ASTM) 48- 60T/30;
(2)	Are constructed before December 31, 1967, and operating or could be operated, under the laws of any state or Canadian Province that has adopted one or more sections of the ASME Boiler and Pressure Vessel Code;
(3)	Are transferred into this State without a change of ownership; and
(4)	Are determined by the Director to be constructed under standards substantially equivalent to those established by the department at the time of transfer;
provided that they are equipped with ASME Code and National Board certified safety relief valves.
"§ yBuilding Code Council.
(a)	The Building Code Council shall:
(1)	Adopt, modify or revoke rules governing the construction, operation and use of boilers and pressure vessels, including, where necessary, requirements for fencing to prevent unauthorized persons from coming in contact with boilers and pressure vessels or the systems they are connected to;
	(2)	Establish reasonable fees for the inspection and issuance of inspection certificates for boilers and pressure vessels; and
	(3)	Establish reasonable fees for the examination and certification of inspectors;
(b)	The Commissioner shall:
	 (1) Supervise the office of the Director of the Engineering Division;
	 (2) Enforce rules adopted under authority of this Article;
	 (3) Inspect boilers and pressure vessels covered under this Article;
	 (4) Issue inspection certificates to those boilers and pressure vessels found in compliance with this Article;
	 (5) Enjoin violations of this Article in the civil and criminal courts of this State;
	 (6) Keep adequate records of the type, dimensions, age, conditions, pressure allowed upon, location and date of the last inspection of all boilers and pressure vessels to which this Article applies;
	 (7) Require such periodic reports from inspectors, owners, and operators of boilers and pressure vessels as he deems appropriate in carrying out the purposes of this Article;
	 (8) Have free access, without notice, to any location in this State, during reasonable hours, where a boiler or pressure vessel is being built, installed, or operated for the purpose of ascertaining whether such boiler or pressure vessel is built, installed or operated in accordance with the provisions of this Article; and
	 (9) Investigate serious accidents involving boilers and pressure vessels to determine the causes of such accident(s), and he shall have full subpoena powers in conducting said investigation.
	"§ Engineering Division created; powers and duties.
There is hereby created the office of Director of the Engineering Division within the North Carolina Department of Insurance.  The person holding this office shall assist the Commissioner in carrying out the provisions of this Article and shall administer this Article on a day-to-day basis.
The Director shall be primarily responsible for the inspection of boilers and pressure vessels subject to this Article and for the issuance of inspection certificates for those boilers and pressure vessels found suitable. He shall also be responsible for the collection of fees for the inspection of boilers and pressure vessels and transmitting the same to the State Treasurer, where they shall be held in a special account to cover the operating expenses of the Division.
"§ Additional duties of Building Code Council.
		(b) The Building Code Council shall be responsible for:
(1)	Studying, proposing, and adopting rules governing the construction, installation, inspection, repair, alteration, use and operation of boilers and pressure vessels in this State. The rules so formulated shall conform as nearly as possible to the standards of the American Society of Mechanical Engineers and amendments and interpretations thereto made and approved by the council of the Society.
(2)	Devise and administer examinations to applicants seeking a certificate of competency as inspectors of boilers and pressure vessels in this State.
(3)	Issue, suspend, or revoke inspector's commission to inspectors of boilers and pressure vessels within this State.
	"§ construction, operation and use of boilers and pressure vessels.
The Building Code Council may adopt, modify or revoke such rules governing the construction, installation, repair, alteration, inspection, use and operation of boilers and pressure vessels as it deems appropriate to insure the safe operation and avoidance of injury to person or property from boilers and pressure vessels. The rules will conform as nearly as possible to the standards of the American Society of Mechanical Engineers and amendments and interpretations thereto, but to avoid unnecessary hardships that would result from requiring replacement of existing non-code tanks that meet minimum safety requirements where there is no danger to persons, such rules shall vary for hydropneumatic pressure vessels installed or operated by a community water system prior to January 1, 1986.
The procedure for the adoption, modification or revocation of such rules shall be the same as that contained within the Administrative Procedure Act of North Carolina as the same appears in Chapter 150B of the General Statutes.
"§ qualifications; examinations; certificates of competency; inspector's commission.
(a)	There shall be three types of inspectors authorized to conduct inspections and report their findings to the Director under this Article:
(1)	Boiler and Pressure Vessel Inspector. – Shall be a qualified individual appointed by the Commissioner, to assist in conducting inspections under this Article and report on the suitability of boilers and pressure vessels so inspected;
(2)	Special Inspector. – Shall be a qualified individual regularly employed by an insurance company authorized to insure in this State against injury to person and/or property from explosions and accidents involving boilers and pressure vessels;
(3)	Owner-User Inspectors. – Shall be a qualified individual employed on a full-time basis by a company operating boilers or pressure vessels for its own use and not for resale, and maintains an established inspection program for periodic inspection of boilers and pressure vessels owned or used by that company and where such inspection program is under the supervision of one or more engineers having qualifications satisfactory to the Commissioner.
(b)	Inspector's Commission. – Any company authorized to insure in this State against loss to person or property as a result of an explosion or accident involving boilers and pressure vessels or operating boilers and/or pressure vessels for its own use and not for resale, may apply for the issuance of an inspector's commission for an individual within its employ who has a certificate of competency.
A commission authorizes an inspector to make inspections on boilers and pressure vessels and report on the suitability of said boilers and pressure vessels to the Director. Those inspectors holding commissions as special inspectors shall be limited to making inspections on boilers and pressure vessels insured by their employer. Owner-user inspectors shall be limited to conducting inspections on boilers and pressure vessels operated by their respective employers.
(c)	Qualifications for Certificates of Competency. – To be entitled to a certificate of competency, as one of the type of inspectors listed in subsection (a) of this section, an individual must:
(1)	Have passed an examination provided and administered by the Building Code Council; or
(2)	Have passed an examination and been certified in a state having rules and regulations substantially similar to those effective within North Carolina; or
(3)	Hold a certificate of competency of the National Board of Boiler and Pressure Vessel Inspectors; and
(4)	Continue in the employ of the company requesting the certificate of competency from the Board.
"§ (a) All boilers and pressure vessels subject to the provisions of this Article shall be inspected by an authorized inspector, as set out in G.S. 58-27.47, at such intervals and by such methods as the Building Code Council may from time to time prescribe by rule. In determining the frequency with which various categories of boiler and pressure vessels shall be inspected, the Building Code Council shall give due consideration the hazard involved and need for protection of the public. Methods of inspection must provide an adequate procedure to insure the safety of individuals likely to be injured by an explosion or accident involving a boiler or pressure vessel.
(b)	Upon completion of an inspection the authorized inspector shall file a report on the suitability of the boiler or pressure vessel inspected with the Director. The inspector shall attach the fee paid for the inspection to his report.
(c)	Upon receipt of the inspector's report and fee, the Director shall determine whether or not a boiler or pressure vessel is in compliance with the rules adopted under this Article. If the Director determines it is in compliance he shall issue an inspection certificate authorizing use of the boiler or pressure vessel. When the Director determines a boiler or pressure vessel is not in compliance, he shall so notify the owner or user within 10 working days. No boiler or pressure vessel may be operated without an inspection certificate, except pressure vessels being operated under owner-user provision where administrative procedures of equal safety and competency have been approved by the Board and Commissioner. No more than 60 days grace period may be granted beyond the certificate expiration date. An individual whose boiler or pressure vessel is found in noncompliance may appeal that determination to the Commissioner within 30 days after notification of the decision is received.
"§ 58-27.49. Administrative and judicial review of decisions.
(a)	A final decision to suspend or revoke an inspector's commission or inspection certificate shall be made in accordance with Chapter 150B of the General Statutes.
(b)	A final decision to deny an application for a certificate of competency or to refuse to issue or renew an inspection certificate shall be made in accordance with Chapter 150B of the General Statutes.  In a contested case under this subsection, the decision of the Building Code Council or Director shall not be stayed pending administrative review.
(c)	Article 4 of Chapter 150B of the General Statutes governs judicial review of a final decision in a contested case.
"§ misrepresentation as inspector.
It shall be unlawful for any person, firm, partnership, association or corporation to operate or use any boiler or pressure vessel in this State, and to which this Article applies, without a valid inspection certificate issued by the North Carolina Department of Insurance. Any person, firm, partnership, association or corporation found to be operating or using a boiler or pressure vessel without a valid inspection certificate shall be guilty of a misdemeanor and upon conviction be subject to a fine of one thousand dollars ($1,000) or imprisonment for 30 days, or both in the discretion of the court.
Any person who knowingly and willfully misrepresents himself as an authorized inspector in North Carolina, shall be guilty of a misdemeanor and upon conviction thereof be fined up to one thousand dollars ($1,000) or imprisonment for six months, or both in the discretion of the court."
Sec. 2.  Article 14 of Chapter 95 of the General Statutes is recodified as Article 2E of Chapter 58 of the General Statutes and reads as rewritten:
                          "ARTICLE 2E.
"Inspection Service Fees.
"§ equipment inspection fees.
The Department of Insurance shall assess and collect the following inspection service fees for the installation and alteration of elevators, escalators, dumbwaiters that are not installed or altered in restaurants, and special equipment based on the cost of installation or alteration: 
Cost of Installation or Alteration	Unit Fee
$0	-	$ 10,000	$ 80
10,001	-	30,000	 120
30,001	-	50,000	 170
50,001	-	80,000	 215
80,001	-	100,000	 235
Over 100,000	 285
An additional fee of seventy-five dollars ($75.00) shall be assessed  for each follow-up inspection of a new installation required subsequent to the original inspection.
The Department of Insurance shall assess and collect a fee of ten dollars ($10.00) for the periodic inspection of special equipment and shall assess and collect the following fees for the periodic inspection of elevators, escalators, and dumbwaiters: 
Number of Building Floors
1-5 Floors	$13
6-10 Floors	 20
11-15 Floors	 35
16-Floors and over	 45
§ srailroad inspection fees.
The Department of Insurance shall assess and collect the following inspection service fees for annual inspections for each location within the State of amusement devices, aerial passenger tramways, and inclined railroads:
Type Inspection	Unit Fee
Amusement Devices	$ 12
Gondolas, Chairlifts,
and Inclined Railroads	 137
J- or T-Bars	  62
Rope Tows	  31
"§.certificates of safe operation.
The assessment of the fees pursuant to this Article shall be made against the owner or operator of such equipment and shall be collected at the time of inspection. Certificates of safe operation shall be withheld by the Department of Insurance until such time as the assessed fees are collected.
"§ All fees collected by the Department of Insurance pursuant to this Article shall be deposited with the State Treasurer and shall be used exclusively for inspection purposes of the equipment referenced in this Article."
Sec. 3.  G.S. 143-151.8(a)(3) reads as rewritten:
"(3)	‘Code enforcement' means the examination and approval of plans and specifications, or the inspection of the manner of construction, workmanship, and materials for construction of buildings and structures and components thereof as an employee of the State or local governmentto assure compliance with the State Building Code and related local building rules."
Sec. 4.  G.S. 143-138(b) reads as rewritten:
"(b)	Contents of the Code. – The North Carolina State Building Code, as adopted by the Building Code Council, may include reasonable and suitable classifications of buildings and structures, both as to use and occupancy; general building restrictions as to location, height, and floor areas; rules for the lighting and ventilation of buildings and structures; requirements concerning means of egress from buildings and structures; requirements concerning means of ingress in buildings and structures; regulations governing construction and precautions to be taken during construction; regulations as to permissible materials, loads, and stresses; regulations of chimneys, heating appliances, elevators, and other facilities connected with the buildings and structures; regulations governing plumbing, heating, air conditioning for the purpose of comfort cooling by the lowering of temperature, and electrical systems; and such other reasonable rules pertaining to the construction of buildings and structures and the installation of particular facilities therein as may be found reasonably necessary for the protection of the occupants of the building or structure, its neighbors, and members of the public at large.
The Code may contain provisions regulating every type of building or structure, wherever it might be situated in the State.
Provided further, that nothing in this Article shall be construed to make any building regulations applicable to farm buildings located outside the building-regulation jurisdiction of any municipality.
Provided further, that no building permit shall be required under the Code or any local variance thereof approved under subsection (e)	for any construction, installation, repair, replacement, or alteration costing five thousand dollars ($5,000) or less in any single family residence or farm building unless the work involves: the addition, repair, or replacement of load bearing structures; the addition (excluding replacement of same size and capacity) or change in the design of plumbing; the addition, replacement or change in the design of heating, air conditioning, or electrical wiring, devices, appliances, or equipment, the use of materials not permitted by the North Carolina Uniform Residential Building Code; or the addition (excluding replacement of like grade of fire resistance) of roofing.
Provided further, that no building permit shall be required under such Code from any State agency for the construction of any building or structure, the total cost of which is less than twenty thousand dollars ($20,000), except public or institutional buildings.
For the information of users thereof, the Code shall include as appendices
(1)	Any boiler rules adopted by the Board of Boiler Rules prior to July 1, 1989, or by the Building Code Council on or after that date,
(2)	Any elevator rules relating to safe operation adopted by the Commissioner of Labor prior to July 1, 1989, or by the Building Code Council on or after that date and
(3)	‘Any rules relating to sanitation adopted by the Department of Human Resources which the Building Code Council believes pertinent.
In addition, the Code may include references to such other rules of special types, such as those of the Medical Care Commission and the Department of Public Instruction as may be useful to persons using the Code. No rules issued by other agencies than the Building Code Council shall be construed as a part of the Code, nor supersede that Code, it being intended that they be presented with the Code for information only.
Nothing in this Article shall extend to or be construed as being applicable to the regulation of the design, construction, location, installation, or operation of (1)	equipment for storing, handling, transporting, and utilizing liquefied petroleum gases for fuel purposes or anhydrous ammonia or other liquid fertilizers, or (2) equipment or facilities, other than buildings, of a public utility, as defined in G.S. 62-3, or an electric or telephone membership corporation, including without limitation poles, towers, and other structures supporting electric or communication lines.
In addition, the Code may contain regulations concerning minimum efficiency requirements for replacement water heaters, which shall consider reasonable availability from manufacturers to meet installation space requirements."
Sec. 5.  Article 14A of Chapter 95 of the General Statutes is recodified as Article 2F of Chapter 58 of the General Statutes and reads as rewritten:
                    "ARTICLE 2F.
"Elevator Safety Act of North Carolina. 
"§ ¨ (a) This Article shall be known as the Elevator Safety Act of North Carolina.
(b)	The General Assembly finds that the use of unsafe and defective lifting devices imposes a substantial probability of serious and preventable injury to employees and the public exposed to unsafe conditions and that prevention of these injuries and protection of employees and the public from unsafe conditions is in the best interests and welfare of the people of the State.
"§ n This Article shall govern the design, construction, installation, plans review, testing, inspection, certification, operation, use, maintenance, alteration, relocation and investigation of accidents involving:
(1)	Elevators, dumbwaiters, escalators, and moving walks;
(2)	Personnel hoists;
(3)	Inclined stairway chair lifts;
(4)	Inclined and vertical wheelchair lifts;
(5)	Manlifts; and
(6)	Special equipment.
This Article shall not apply to devices and equipment located and operated in a single family residence, to conveyors and related equipment within the scope of the American National Standard Safety Standard for Conveyors and Related Equipment (ANSI/ASME B20.1) constructed, installed and used exclusively for the movement of materials, or to mining equipment specifically covered by the Federal Mine Safety and Health Act or the Mine Safety and Health Act of North Carolina or the rules adopted pursuant thereto.
"§ As used in this Article, unless a different meaning is plainly required by the context:
	(1)	The term ‘Commissioner' shall mean the North Carolina  Commissioner of Insurance or his authorized representative.
	(2)	The term ‘Director' shall mean the Director of the Engineering Division of the North Carolina Department of Insurance.
	(3)	The term ‘dumbwaiter' shall mean a hoisting and lowering mechanism equipped with a car or platform which moves in guides in a substantially vertical direction, the floor area of which does not exceed nine square feet, the total inside height of which, whether or not provided with fixed or removable shelves, does not exceed four feet, the capacity of which does not exceed 500 pounds, and which is used exclusively for carrying materials.
	(4)	The term ‘elevator' shall mean a hoisting and lowering mechanism equipped with a car or platform which moves in guides, and which serves two or more floors of a building or structure.
	(5)	The term ‘escalator' shall mean a power driven, inclined continuous stairway used for raising and lowering passengers.
	(6)	The term ‘inclined stairway chair lift' shall mean a hoisting  and lowering mechanism with one or more chairs or a platform for one or more wheelchairs installed on a stairway for the purpose of transporting a physically disabled person.
	(7)	The term ‘inclined or vertical wheelchair lift' shall mean a powered platform-elevating device used to transport a physically disabled person in a wheelchair.
	(8)	The term ‘manlift' shall mean platforms or brackets and accompanying handholds, mounted on, or attached to, an endless belt operating vertically in one direction only and being supported by, and driven through, pulleys at the top and bottom and intended primarily for the conveyance of persons.
	(9)	The term ‘moving walk' shall mean a type of passenger carrying device on which passengers stand or walk and in which the passenger carrying surface remains parallel to its direction of motion and is uninterrupted.
	(10)	The term ‘operator' shall mean any person having direct control over the operation of any covered device or equipment.
	(11)	The term ‘owner' shall mean any person or authorized agent of  such person who owns a device or equipment subject to regulation under this Article, or in the event the device or equipment is leased, the lessee. The term ‘owner' also shall include the State of North Carolina or any political subdivision thereof or any unit of local government.
	(12)	The term ‘person' shall mean any individual, association, partnership, firm, corporation, private organization, or the State of North Carolina or any political subdivision thereof or any unit of local government.
	(13)	The term ‘personnel hoist' shall mean an elevator installed inside or outside of buildings during construction, alteration or demolition and used primarily to raise and lower workers and other persons connected with or related to the building project.
	(14)	The term ‘special equipment' shall mean any permanently or semi-permanently located device, manually or power-operated, used for moving or lifting person or persons and materials but not considered as an elevator, escalator, dumbwaiter, moving walk, personnel hoist, inclined stairway chair lift, inclined or vertical wheelchair lift, or manlift. Special equipment shall include, but not be limited to, manhoists, lift bridges, elevators which are used only for handling building materials and workmen during construction, and stage and orchestra lifts.
"§ 58-27.73. Engineering Division to administer.
The Director of the Engineering Division of the Department of Insurance and such other employees as the Commissioner deems necessary to assist the director shall administer the provisions of this Article.
"§ hBuilding Code Council.
(a)	The Commissioner may:
(1)	Delegate to the Director of the Engineering Division such powers, duties and responsibilities as the Commissioner determines will best serve the public interest in the safe operation of lifting devices and equipment;
(2)	Supervise the Director of the Engineering Division;
	 (3) Enforce rules adopted under authority of this Article;
	 (4) Inspect and have tested for acceptance all new, altered or relocated devices or equipment subject to the provisions of this Article;
	 (5) Make maintenance and periodic inspections and tests of all devices and equipment subject to the provisions of this Article as often as every six months;
	 (6) Issue certificates of operation which certify for use such devices and equipment as are found to be in compliance with this Article and the rules promulgated thereunder;
	 (7) Have free access, with or without notice, to the devices and equipment subject to the provisions of this Article, during reasonable hours, for purposes of inspection or testing;
	 (8) Obtain an Administrative Search and Inspection Warrant in accordance with the provisions of Article 4A of Chapter 15 of the General Statutes;
	 (9) Investigate accidents involving the devices and equipment subject to the provisions of this Article to determine the cause of such accident, and he shall have full subpoena powers in conducting such investigation;
	 (10) Institute proceedings in the civil or criminal courts of this State, when a provision of this Article or the rules promulgated thereunder has been violated;
	 (11) Issue a limited certificate of operation for any device or equipment subject to the provisions of this Article to allow the temporary or restricted use thereof;
	 (12) Grant exceptions from the requirements of the rules promulgated under authority of this Article and to permit the use of other devices when such exceptions and uses will not expose the public to an unsafe condition likely to result in serious personal injury or property damage;
	 (13) Require that a construction permit must be obtained from the Commissioner before any device or equipment subject to the provisions of this Article is installed, altered or moved from one place to another and to require that the Commissioner must be supplied with whatever plans, diagrams or other data he deems necessary to determine whether or not the proposed construction is in compliance with the provisions of this Article and the rules promulgated thereunder;
	 (14) Prohibit the use of any device or equipment subject to the provisions of this Article which is found upon inspection to expose the public to an unsafe condition likely to cause personal injury or property damage. Such device or equipment shall be made operational only upon the Commissioner's determination that such device or equipment has been made safe;
	 (15) Order the payment of all civil penalties provided by this Article. Funds collected pursuant to a civil penalty order shall be deposited with the State Treasurer;
	 (16) Require that any device or equipment subject to the provisions of this Article which has been out-of-service and not continuously maintained for one or more years shall not be returned to service without first complying with all rules governing new installations; and
	 (17) Coordinate enforcement and inspection activity relative to equipment, devices and operations covered by this Article in order to minimize duplication of liability or regulatory responsibility on the part of the employer or owner.
(b)	The Building Code Council may:
	 (1) Adopt modify, or revoke such rules as are necessary for the purpose of carrying out the provisions of this Article including, but not limited to, those governing the design, construction, installation, plans review, testing, inspection, certification, operation, use, maintenance, alteration and relocation of devices and equipment subject to the provisions of this Article. The rules promulgated pursuant to this rulemaking authority shall conform with good engineering practice as evidenced generally by the most recent editions of the American National Standard Safety Code for Elevators, Dumbwaiters, Escalators and Moving Walks, the National Electrical Code, the American National Standard Safety Requirements for Personnel Hoists, the American National Standard Safety Code for Manlifts, the American National Standard Safety Standard for Conveyors and Related Equipment and similar codes promulgated by agencies engaged in research concerning strength of material, safe design, and other factors bearing upon the safe operation of the devices and equipment subject to the provisions of this Article. The rules may apply different standards to devices and equipment subject to this Article depending upon their date of installation. The rules for special equipment shall not adopt specifically any portion of the American National Standard Safety Code for Elevators, Dumbwaiters, Escalators and Moving Walks to inclined and vertical reciprocating conveyors; and
	 (2) Adopt, modify or revoke rules governing the qualifications of inspectors.
"§ appeal.
(a)	Whenever the Commissioner determines that a device or equipment is subject to the provisions of this Article, and that the operation of such device or equipment is exposing the public to an unsafe condition likely to result in serious personal injury or property damage, he may immediately order in writing that the use of the device or equipment be stopped or limited until such time as he determines that the device or equipment has been made safe for use by the public.
(b)	Whenever the Commissioner determines that the provisions of this Article or the rules promulgated thereunder have not been complied with, he may refuse to issue or renew or may revoke, suspend or amend a certificate of operation.
(c)	Whenever action is taken under this section, the affected party shall be given notice of the availability of an administrative hearing and of judicial review in accordance with Chapter 150B of the General Statutes, the Administrative Procedure Act.
"§ ¨not in accordance with Article or rules; operation after refusal to issue or after revocation of certificate.
(a)	No person shall operate or permit to be operated or use any device or equipment subject to the provisions of this Article without a valid certificate of operation unless the absence of a valid certificate is the result of the Commissioner's failure to inspect such device.
(b)	No person shall operate or permit to be operated or use any device or equipment subject to the provisions of this Article otherwise than in accordance with this Article and the rules promulgated thereunder.
(c)	No person shall operate or permit to be operated or use any device or equipment subject to the provisions of this Article after the Commissioner has refused to issue or has revoked the certificate of operation for such device or equipment.
"§ o No person shall operate, permit to be operated or use any device or equipment subject to the provisions of this Article if such person knows or reasonably should know that such operation or use will expose the public to an unsafe condition which is likely to result in personal injury or property damage.
"§ t (a) The owner of any device or equipment regulated under the provisions of this Article, or his authorized agent, shall within 24 hours notify the Commissioner of each and every occurrence involving such device or equipment when:
(1)	The occurrence results in death or injury requiring medical treatment, other than first aid, by a physician. First aid means the one time treatment or observation of scratches, cuts not requiring stitches, burns, splinters and contusions or a diagnostic procedure, including examination and x-rays, which does not ordinarily require medical treatment even though provided by a physician or other licensed personnel; or
(2)	The occurrence results in damage to the device indicating a  substantial defect in design, mechanics, structure or equipment, affecting the future safe operation of the device. No reporting is required in the case of normal wear and tear.
(b)	The Commissioner, without delay, after notification and determination that an occurrence involving injury or damage as specified in subsection (a) has occurred, shall make a complete and thorough investigation of the occurrence. The report of the investigation shall be placed on file in the office of the division and shall give in detail all facts and information available. The owner may submit for inclusion in the file results of investigations independent of the department's investigation.
(c)	No person, following an occurrence as specified in subsection (a), shall operate, attempt to operate, use or move or attempt to move such device or equipment, or part thereof, without the approval of the Commissioner, unless so as to prevent injury to any person or persons.
(d)	No person, following an occurrence as specified in subsection (a), shall remove or attempt to remove from the premises any damaged or undamaged part of such device or equipment or repair or attempt to repair any damaged part necessary to a complete and thorough investigation. The department must initiate its investigation within 24 hours of being notified.
"§ ü (a) Any person who violates G.S. 58-27.76(a) or (b) (Operation without certificate; operation not in accordance with Article or rules) shall be subject to a civil penalty not to exceed two hundred fifty dollars ($250.00) for each day each device or equipment is so operated or used.
(b)	Any person who violates G.S. 58-27.86(c) (Operation after refusal to issue or after revocation of certificate) or G.S. 58-27.78(c) (Reports required) shall be subject to a civil penalty not to exceed five hundred dollars ($500.00) for each day any such device or equipment is operated or used.
(c)	Any person who violates the provisions of G.S. 58-27.78(d) (Reports required) shall be subject to a civil penalty not to exceed five hundred dollars ($500.00).
(d)	In determining the amount of any penalty ordered under authority of this section, the Commissioner shall give due consideration to the appropriateness of the penalty with respect to the size of the business of the person being charged, the gravity of the violation, the good faith of the person and the record of previous violations.
(e)	The determination of the amount of the penalty by the Commissioner shall be final, unless within 15 days after receipt of notice thereof by certified mail the person charged with the violation takes exception to the determination in which event the final determination of the penalty shall be made in an administrative proceeding and in a judicial proceeding pursuant to Chapter 150B of the General Statutes, the Administrative Procedure Act.
(f)	The Commissioner may file in the office of the clerk of the superior court of the county wherein the person, against whom a civil penalty has been ordered, resides, or if a corporation is involved, in the county wherein the corporation maintains its principal place of business, or in the county wherein the violation occurred, a certified copy of a final order of the Commissioner unappealed from, or of a final order of the Commissioner affirmed upon appeal. Whereupon, the clerk of said court shall enter judgment in accordance therewith and notify the parties. Such judgment shall have the same effect, and all proceedings in relation thereto shall thereafter be the same, as though said judgment had been rendered in a suit duly heard and determined by the superior court of the General Court of Justice.
"§ h (a) Any person who violates G.S. 58-27.77 (Operation of unsafe device or equipment) shall be guilty of a misdemeanor and upon conviction thereof shall be fined one thousand dollars ($1,000), or imprisoned for a period of six months, or both, in the discretion of the court.
(b)	Any person misrepresenting himself as an authorized inspector  administering or enforcing the provisions of this Article or the rules promulgated thereunder shall be guilty of a misdemeanor and upon conviction thereof shall be fined one thousand dollars ($1,000), or imprisoned for a period of six months, or both, in the discretion of the court.
(c)	Any person knowingly making a material and false statement, representation or certification in any application, record, report, plan or any other document filed or required to be maintained pursuant to this Article or the rules promulgated thereunder shall be fined a maximum of five thousand dollars ($5,000), or imprisoned for not more than six months, or both, in the discretion of the court.
"§ s It shall be the duty of the Attorney General of North Carolina, when requested, to represent the Department of Insurance in actions or proceedings in connection with this Article or the rules promulgated thereunder.
"§ uhealth federal- State programs.
Consistent with the requirements and conditions provided in this Article and the rules promulgated thereunder, the State, upon recommendation of the Commissioner may enter into agreements or arrangements with appropriate federal agencies for the purpose of administering the enforcement of federal statutes and rules governing devices and equipment subject to the provisions of this Article.
"§ u All information reported to or otherwise obtained by the Commissioner or his agents or representatives in connection with any inspection or proceeding under this Article or the rules promulgated thereunder which contains or might reveal a trade secret shall be considered confidential, except as to carrying out this Article and the rules promulgated thereunder, or when it is relevant in any proceeding under the same. In any such proceeding the Commissioner or the court shall issue such orders as may be appropriate to protect the confidentiality of trade secrets.
"§ l  and severability.
This Article and the rules promulgated thereunder shall receive a liberal construction to the end that the welfare of the people may be protected. If any provisions of either or the application thereof to any person or circumstances is held to be invalid, such invalidity shall not affect those provisions or applications which can be given effect without the invalid provision or application, and to that end the provisions of this Article are severable."
Sec. 6.  Article 14B of Chapter 95 of the General Statutes is recodified as Article 2G of Chapter 58 of the General Statutes and reads as rewritten:
                    "ARTICLE 2G.
"Amusement Device Safety Act of North Carolina. 
"§ m (a) This Article shall be known as the ‘Amusement Device Safety Act of North Carolina'.
(b)	The General Assembly finds that although most amusement devices are free from defect and operated in a safe manner, those which are not impose a substantial probability of serious and preventable injury to the public. Protection of the public from exposure to such unsafe conditions and the prevention of injuries is in the best interest and welfare of the people of the State.
(c)	It is the intent of this Article that amusement devices shall be designed, constructed, assembled or disassembled, maintained, and operated so as to prevent injuries.
"§ (a) This Article shall govern the design, construction, installation, plans review, testing, inspection, certification, operation, use, maintenance, alteration, relocation and investigation of accidents involving amusement devices.
(b)	This Article shall not apply to any single passenger coin- operated device, manually, mechanically, or electrically operated which customarily is placed, singly or in groups, in a public location and which does not normally require the supervision or services of an operator.
"§ o As used in this Article, unless a different meaning is plainly required by the context:
	(1)	The term ‘amusement device' shall mean any device or attraction that carries or conveys or permits persons to walk along, around or over a fixed or restricted route or course or within a defined area including the entrances and exits thereto, for the purpose of giving such persons amusement, pleasure, thrills or excitement. The term shall include but not be limited to roller coasters, Ferris wheels, merry-go-rounds, glasshouses, waterslides, and walk-through dark houses.
	(2)	The term ‘amusement park' shall mean any tract or area used principally as a permanent location for amusement devices.
	(3)	The term ‘Commissioner' shall mean the North Carolina Commissioner of Insurance or his authorized representative.
	(4)	The term ‘Director' shall mean the Director of the Engineering Division of the North Carolina Department of Insurance.
	(5)	The term ‘operator' shall mean any person having direct control of the operation of an amusement device.
	(6)	The term ‘owner' shall mean any person or authorized agent of  such person who owns an amusement device or in the event such device is leased, the lessee. The term ‘owner' also shall include the State of North Carolina or any political subdivision thereof or any unit of local government.
	(7)	The term ‘person' shall mean any individual, association, partnership, firm, corporation, private organization, or the State of North Carolina or any political subdivision thereof or any unit of local government.
	(8)	The term ‘waterslide' shall mean a stationary amusement device that provides a descending ride on a flowing water film through a trough or tube or on an inclined plane into a pool of water.  This term does not include devices where the vertical distance between the highest and the lowest points does not exceed 15 feet.
"§ (a) The Commissioner may:
	 (1) Delegate to the Director of the Engineering Division such powers, duties and responsibilities as the Commissioner determines will best serve the public interest in the safe operation of amusement devices;
	 (2) Supervise the Director of the Engineering Division;
	 (3) Enforce rules adopted under authority of this Article;
	 (4) Inspect and have tested for acceptance all new and relocated devices subject to the provisions of this Article.  Relocated amusement devices shall be inspected upon reassembly at each new location within this State;  provided that the Commissioner may provide for less frequent inspections when he determines that the device is of such a type and its use is of such a nature that inspection less often than upon each reassembly would not expose the public to an unsafe condition likely to result in serious personal injury or property damage;
	 (5) Inspect amusement devices which have been substantially rebuilt or substantially modified so as to change the original action, structure or capacity of the device;
	 (6) Make maintenance and periodic inspections and tests of all devices subject to the provisions of this Article. Devices located in amusement parks shall be inspected at least once annually;
	 (7) Issue certificates of operation which certify for use such devices as are found to be in compliance with this Article and the rules promulgated thereunder;
	 (8) Have reasonable access, with or without notice, to the devices subject to the provisions of this Article during reasonable hours, for purposes of inspection or testing;
	 (9) Obtain an Administrative Search and Inspection Warrant in accordance with the provisions of Article 4A of Chapter 15 of the General Statutes;
	 (10) Investigate accidents involving devices subject to the provisions of this Article to determine the cause of such accident, and he shall have full subpoena powers in conducting such investigation;
	 (11) Institute proceedings in the civil courts of this State, when a provision of this Article or the rules promulgated thereunder has been violated;
	 (12) Grant exceptions from the requirements of the rules promulgated under authority of this Article and to permit the use of other devices when such exceptions and uses will not expose the public to an unsafe condition likely to result in serious personal injury or property damage;
	 (13) Require that before any device subject to the provisions of this Article is erected in this State, or before any additions or alterations which substantially change such device are made, or before the physical spacing between such devices is changed, the owner or his authorized agent shall file with the Commissioner a written notice of his intention to do so and the type of device involved. Should circumstances necessitate, the Commissioner may require that such owner or his authorized agent furnish a copy of the plans, diagrams, specifications or stress analyses of such device before the inspection of same. When such plans, diagrams, specifications or stress analyses are requested by the Commissioner, he shall review them within 10 days of receipt, and upon approval, he shall authorize the device for use by the public;
	 (14) Prohibit the use of any device subject to the provisions of this Article which is found upon inspection to expose the public to an unsafe condition likely to cause personal injury or property damage. Such device shall be made operational only upon the Commissioner's determination that such device has been made safe;
	 (15) Order the payment of all civil penalties provided by this Article. Funds collected pursuant to a civil penalty order shall be deposited with the State Treasurer; and
	 (16) Coordinate enforcement and inspection activity relative to equipment, devices and operations covered by this Article in order to minimize duplication of liability or regulatory responsibility on the part of the employer or owner.
(b)	The Building Code Council may:
	 (1) Adopt modify, or revoke such rules as are necessary for the purpose of carrying out the provisions of this Article including, but not limited to, those governing the design, construction, installation, plans review, testing, inspection, certification, operation, use, maintenance, alteration and relocation of devices subject to the provisions of this Article. The rules promulgated pursuant to this rulemaking authority shall conform with good engineering and safety standards, formulas and practices; and
	 (2) Adopt modify or revoke rules governing the qualifications of inspectors.
"§ revocation of certificate of operation.
(a)	An owner of a device subject to the provisions of this Article, or his authorized agent, is hereby required to make a pre-opening inspection and test of such device, prior to admitting the public, each day such device is intended to be used.
(b)	An owner of a device subject to the provisions of this Article, or his authorized agent, is hereby required to maintain for at least 30 days a signed record of the required pre-opening inspection and test and such other pertinent information as the Commissioner may require by rule.
(c)	The Commissioner is hereby empowered to revoke the certificate of operation for any device regulated by this Article upon failure by the owner or his authorized agent to make the required pre-opening inspection and test or to maintain the required record.
"§. (a) Whenever the Commissioner determines that a device is subject to the provisions of this Article and the operation of such device is exposing the public to an unsafe condition likely to result in serious personal injury or property damage, he immediately may order in writing that the use of the device be stopped or limited until such time as he determines that the device has been made safe for use by the public.
(b)	Whenever the Commissioner determines that the provisions of this Article or the rules promulgated thereunder have not been complied with, he may refuse to issue or renew or may revoke, suspend or amend a certificate of operation.
(c)	Whenever action is taken under this section, the affected party shall be given notice of the availability of an administrative hearing and of judicial review in accordance with Chapter 150B of the General Statutes, the Administrative Procedure Act.
"§ ¨not in accordance with Article or rules; operation after refusal to issue or after revocation of certificate.
(a)	No person shall operate or permit to be operated or use any device subject to the provisions or this Article without a valid certificate of operation.
(b)	No person shall operate or permit to be operated or use any device subject to the provisions of this Article otherwise than in accordance with this Article and the rules promulgated thereunder.
(c)	No person shall operate or permit to be operated or use any device subject to the provisions of this Article after the Commissioner has refused to issue or has revoked the certificate of operation for such device.
"§ r No person shall operate for the public or permit the operation for the public any device subject to the provisions of this Article after initial assembly or after reassembly at any location within this State without first notifying the Commissioner of the intention to operate for the public. Written notice of a planned schedule of operation or use shall be received at least five days prior to the first planned date of operation or use. Notice of unscheduled use shall be given immediately to the Commissioner by telephone or telegraph.
"§ t No person shall operate, permit to be operated or use any device subject to the provisions of this Article if such person knows or reasonably should know that such operation or use will expose the public to an unsafe condition which is likely to result in personal injury or property damage.
"§ n (a) The owner of any device regulated under the provisions of this Article, or his authorized agent, shall within 24 hours, notify the Commissioner of each and every occurrence involving such device when:
(1)	The occurrence results in death or injury requiring medical treatment, other than first aid, by a physician. First aid means the one time treatment or observation of scratches, cuts not requiring stitches, burns, splinters and contusions or a diagnostic procedure, including examination and x-rays, which does not ordinarily require medical treatment even though provided by a physician or other licensed personnel; or
(2)	The occurrence results in damage to the device indicating a  substantial defect in design, mechanics, structure or equipment, affecting the future safe operation of the device. No reporting is required in the case of normal wear and tear.
(b)	The Commissioner, without delay, after notification and determination that an occurrence involving injury or damage as specified in subsection (a) has occurred, shall make a complete and thorough investigation of the occurrence. The report of the investigation shall be placed on file in the office of the division and shall give in detail all facts and information available. The owner may submit for inclusion in the file results of investigations independent of the department's investigation.
(c)	No person, following an occurrence as specified in subsection (a), shall operate, attempt to operate, use or move or attempt to move such device or part thereof, without the approval of the Commissioner, unless so as to prevent injury to any person or persons.
(d)	No person, following an occurrence as specified in subsection (a), shall remove or attempt to remove from the premises any damaged or undamaged part of such device or repair or attempt to repair any damaged part necessary to a complete and thorough investigation. The department must initiate its investigation within 24 hours of being notified.
"§ i Any operator of a device subject to the provisions of this Article shall be at least 18 years of age. An operator shall operate no more than one device at any given time. An operator shall be in attendance at all times the device is in operation.
"§ t (a) No owner shall operate a device subject to the provisions of this Article, unless at the time, there is in existence a contract of insurance providing coverage of not less than one million dollars ($1,000,000) per occurrence against liability for injury to persons or property arising out of the operation or use of such device or there is in existence a contract of insurance providing coverage of not less than five hundred thousand dollars ($500,000) per occurrence against liability for injury to persons or property arising out of the operation or use of the amusement devices if the annual gross volume of the devices does not exceed two hundred seventy-five thousand dollars ($275,000); provided waterslides shall not be required to be insured as herein provided for an amount in excess of one hundred thousand dollars ($100,000) per occurrence.  The insurance contract to be provided must be by any insurer or surety that is acceptable to the Commissioner and authorized to transact business in this State.
(b)	No certificate of operation shall be issued by the Commissioner until such time as the owner or his authorized agent provides proof of the required contract of insurance.
(c)	The Commissioner shall have the right to request from the owner of a device regulated by this Article, or his authorized agent, proof of the required contract of insurance, and upon failure of the owner or his authorized agent to provide such proof, the Commissioner shall have the right to prevent the commencement of or to stop the operation of the device until such time as proof is provided.
(d)	Operators of waterslides, as defined in G.S. 58-27.92(h) shall notify the Commissioner of all incidences of personal injury involving the waterslides, as required by G.S. 58-27.99(a).
"§) (a) Any person who violates G.S. 58-27.96(a) or (b) (Operation without certificate; operation not in accordance with Article or rules)  shall be subject to a civil penalty not to exceed two hundred fifty dollars ($250.00) for each day each device is so operated or used.
(b)	Any person who violates G.S. 58-27.96(c) (Operation after refusal to issue or after revocation of certificate) or G.S. 58-27.99(c) (Reports required) or G.S. 58-27.101 (Liability insurance) shall be subject to a civil penalty not to exceed five hundred dollars ($500.00) for each day each device is so operated or used.
(c)	Any person who violates G.S. 58-27.97 (Location notice) shall be subject to a civil penalty not to exceed five hundred dollars ($500.00) for each day any device is operated or used without the location notice having been provided.
(d)	Any person who violates the provisions of G.S. (d)	58-27.99(d) (Reports required) shall be subject to a civil penalty not to exceed five hundred dollars ($500.00).
(e)	Any person who violates G.S. 58-27.98 (Operation of unsafe device) shall be subject to a civil penalty not to exceed one thousand dollars ($1,000).
(f)	In determining the amount of any penalty ordered under authority of this section, the Commissioner shall give due consideration to the appropriateness of the penalty with respect to the size of the business of the person being charged, the gravity of the violation, the good faith of the person and the record of previous violations.
(g)	The determination of the amount of the penalty by the Commissioner shall be final, unless within 15 days after receipt of notice thereof by certified mail, the person charged with the violation takes exception to the determination, in which event final determination of the penalty shall be made in an administrative proceeding and in a judicial proceeding pursuant to Chapter 150B of the General Statutes, the Administrative Procedure Act.
(h)	The Commissioner may file in the office of the clerk of the superior court of the county wherein the person, against whom a civil penalty has been ordered, resides, or if a corporation is involved, in the county wherein the corporation maintains its principal place of business, or in the county wherein the violation occurred, a certified copy of a final order of the Commissioner unappealed from, or of a final order of the Commissioner affirmed upon appeal. Whereupon, the clerk of said court shall enter judgment in accordance therewith and notify the parties. Such judgment shall have the same effect, and all proceedings in relation thereto shall thereafter be the same, as though said judgment had been rendered in a suit duly heard and determined by the superior court  of the General Court of Justice.
"§ device.
The owner or amusement device operator may deny any person entrance to an amusement device if he or she believes such entry may jeopardize the safety of the person desiring entry, riders or other persons.
"§. It shall be the duty of the Attorney General of North Carolina, when requested, to represent the Department of Insurance in actions or proceedings in connection with this Article or the rules promulgated thereunder.
"§ ehealth federal- State programs.
Consistent with the requirements and conditions provided in this Article and the rules promulgated thereunder, the State, upon recommendation of the Commissioner may enter into agreements or arrangements with appropriate federal agencies for the purpose of administering the enforcement of federal statutes and rules governing devices subject to the provisions of this Article.
"§ e All information reported to or otherwise obtained by the Commissioner or his agents or representatives in connection with any inspection or proceeding under this Article or the rules promulgated thereunder which contains or might reveal a trade secret shall be considered confidential, except as to carrying out this Article and the rules promulgated thereunder or when it is relevant in any proceeding under the same. In any such proceeding the Commissioner or the Court shall issue such orders as may be appropriate to protect the confidentiality of trade secrets.
"§ i  and severability.
This Article and the rules promulgated thereunder shall receive a liberal construction to the end that the welfare of the people may be protected. If any provisions of either or the application thereof to any person or circumstances is held to be invalid, such invalidity shall not affect those provisions or applications which can be given effect without the invalid provision or application, and to that end the provisions of this Article are severable."
Sec. 7.  Article 15 of Chapter 95 of the General Statutes is recodified as Article 2H of Chapter 58 of the General Statutes and reads as rewritten:
            "ARTICLE 2H.
"Passenger Tramway Safety. 
"§ In order to safeguard life, health, property, and the welfare of this State, it shall be the policy of the State of North Carolina to protect its citizens and visitors from unnecessary mechanical hazards in the operation of ski tows, lifts, tramways and related devices to insure that reasonable design and construction are used, that accepted safety devices and sufficient personnel are provided for, and that periodic inspections and adjustments are made which are deemed essential to the safe operation of ski tows, ski lifts and passenger tramways. The primary responsibility for design, construction, maintenance, and inspection rests with the operators of such passenger tramway devices. The State, through the Commissioner, shall register all ski lift devices and passenger tramways and  establish reasonable standards of design and operational practices, and cause to be made such inspections as may be necessary in carrying out this policy.
"§ a Each word or term defined in this Article has the meaning  indicated in this section, unless a different meaning is plainly required by the context.
(1)	‘Commissioner' means the Commissioner of Insurance of the State of North Carolina.
(2)	‘Industry' means activities of all those persons in the State who own, manage, or direct the operation of passenger tramways.
(3)	‘Operator' means any person, firm, corporation, or organization which owns, manages, or directs the operation of a passenger tramway. ‘Operator' may apply to the State or any political subdivision or instrumentality thereof.
(4)	‘Passenger tramway' means a device used to transport passengers uphill on skis, or in cars on tracks, or suspended in the air by the use of steel cables, chains or belts, or by ropes, and usually supported by trestles or towers with one or more spans. ‘Passenger tramway' shall include the following devices:
a.	‘Chairlift,' a type of transportation on which passengers are carried on chairs suspended in the air and attached to a moving cable, chain or link belt supported by trestles or towers with one or more spans, or similar devices;
b.	‘J bar, T bar or platter pull,' so-called and similar types of devices or means of transportation which pull skiers riding on skis by means of an attachment to a main overhead cable supported by trestles or towers with one or more spans;
c.	‘Multicar aerial passenger tramway,' a device used to transport passengers in several open or in closed cars attached to, and suspended from, a moving wire rope or attached to a moving wire rope and supported on a standing wire rope, or similar device;
d.	‘Rope tow,' a type of transportation which pulls the skiers, riding on skis as the skier grasps the rope manually, or similar devices;
e.	‘Skimobile,' a device in which a passenger car running on steel or wooden tracks is attached to and pulled by a steel cable, or similar device;
f.	‘Two-car aerial passenger tramway,' a device used to transport passengers in two open or enclosed cars attached to, and suspended from, a moving wire rope or attached to a moving wire rope and supported on a standing wire rope or similar device.
"§ No passenger tramway shall be operated in this State unless it has been registered by the Commissioner. On or before November 1 in each year, every operator of a passenger tramway  shall apply to the Commissioner, on forms prepared by said Commissioner, for registration of the passenger tramway which such operator owns or manages, or the operation of which he directs. The application shall contain such information as the Commissioner may reasonably require in order for him to determine whether the passenger tramway sought to be registered by such operator comply with the intent of this Article and the rules promulgated by the Commissioner as hereinafter provided.
"§ â The Commissioner shall issue to the applying operator without delay a registration certificate for each passenger tramway owned, managed, or the operation of which is directed by such operator when the Commissioner is satisfied:
(1)	That the facts stated in the application are sufficient to enable the Commissioner to fulfill his duties under this Article; and
(2)	That each such passenger tramway sought to be registered complies with the rules of the Commissioner promulgated pursuant to the provisions of this Article.
(3)	In order to satisfy himself that the conditions described in subdivisions (1) and (2) of this section have been fulfilled, the Commissioner may cause to be made such inspections hereinafter described as he may reasonably deem necessary.
(4)	When an operator installs a passenger tramway subsequent to November 1, of any year, such operator shall file a supplemental application for registration of such passenger tramway. Upon the receipt of such supplemental application, the Commissioner shall proceed immediately to initiate proceedings leading to the registration or rejection of registration of such passenger tramway pursuant to the provisions of this Article.
(5)	Each registration shall expire on October 31, next following the day of issue. Each operator shall cause the registration  certificate for each passenger tramway thus registered to be  displayed prominently at the place where passengers are loaded thereon.
"§  Building Code Council.
(a)	In addition to all other powers and duties conferred and imposed upon the Commissioner by this Article, the Commissioner shall have and exercise the following powers and duties:
	(1)	To hold hearings and take evidence in all matters relating to the exercise and performance of the powers and duties vested in the Commissioner, subpoena witnesses, administer oaths, and compel the testimony of witnesses and the production of books, papers and records relevant to any inquiry;
	(2)	To approve, deny, revoke, and renew the registrations provided for in this Article and the procedures of the Commissioner with respect thereto shall be as provided in this Article with respect to the issuance of certificates or  licenses;
	(3)	To cause the prosecution and the institution of actions for  injunctions of all persons violating the provisions of this Article and to incur the necessary expenses thereof;
	(4)	To cause the seal of the Commissioner to be affixed to all registrations issued by him, and to employ, within the funds available to him, and prescribe the duties of all such personnel as the Commissioner may deem necessary in the administration of this Article.
(b)	The Building Code Council shall adopt and enforce reasonable rules relating to public safety in the construction, operation, and maintenance of passenger tramways. The rules authorized under this section shall conform as nearly as possible to the standards contained for mechanical engineering aerial passenger tramways safety code as adopted and used by the U.S.A. Standards Institute, B77.1–1960, with addenda B77.1(a)–1963, and B77.1(b)–1965, and as said safety code for tramways may be amended from time to time, and in the formulation of said rules the Commissioner may use and adopt any other safety code for tramways as issued by recognized scientific and mechanical societies. The said rules shall not be discriminatory in their application to operators of passenger tramways, and the procedures of the Building Code Council and Commissioner shall be as provided in this Article.
"§ The Commissioner may cause to be made such inspections of the construction, operation, and maintenance of passenger tramways as  he shall deem to be reasonably necessary. If, as the result of an inspection, it is found that a violation of the Commissioner's rules exists, or a condition in passenger tramway construction, operation or maintenance exists, which endangers safety  of the public, an immediate report shall be made to the Commissioner for appropriate investigation and order.
"§ o When facts are presented to the Commissioner tending to show that an unreasonable hazard exists in the continued operation of a passenger tramway, and after such verification of said facts as is practical under the circumstances and consistent with the public safety, the Commissioner may by an emergency order require the operator of said tramway forthwith to cease using the same for the transportation of passengers. Such emergency order shall be in writing, signed by the Commissioner, and notice thereof shall be served upon the operator or his agent immediately in control of said passenger tramway by a true copy of such order, with a return being made of such service and endorsed on the original order. Such emergency shutdown shall be effective for a period not to exceed 48 hours from the time of service. Immediately after the issuance of an emergency order, the Commissioner shall conduct an investigation into  the facts of the case and shall take such action as may be appropriate and as provided by the provisions of this Article.
"§ h If, after investigation, the Commissioner finds that a violation of any of his rules exists, or that there is a condition in passenger tramway construction, operation, or maintenance which endangers the safety of the public, the Commissioner shall forthwith issue his written order setting forth his findings, the corrective action to be taken, and fixing a reasonable time for compliance therewith. The order shall be sent to the affected operator by certified mail and shall become final unless the operator contests the order by filing a petition for a contested case under G.S. 150B-23 within 20 days after receiving the order. The Commissioner shall have the power to institute injunctive proceedings in any court of competent jurisdiction of the district court district as defined in G.S. 7A-133 or superior court district or set of districts as defined in G.S. 7A-41.1, as the case may be, in which the passenger tramway is located for the purpose of restraining the operation of said tramway or for compelling compliance with any lawful order of the Commissioner. Judicial review of a final decision under this section may be obtained under Article 4 of Chapter 150B of the General Statutes.
"§ If any operator fails to comply with the lawful order of the Commissioner as issued under this Article, and within the time fixed thereby, the Commissioner may suspend the registration of the affected passenger tramway for such time as he may consider necessary for the protection of the safety of the public. Any operator who shall be convicted, or enter a plea of guilty or nolo contendere, to operating a passenger tramway which has not been registered by the Commissioner, or after its registration has been suspended by the Commissioner, shall be guilty of a misdemeanor and shall be punished by a fine of not more than fifty dollars ($50.00) per day for each day of the such illegal operations or by imprisonment in the discretion of the court, or both such fine and imprisonment.
"§ a This Article shall take effect and become operative on July 30, 1969, provided that the initial applications for registration of passenger tramways shall be filed on or before November 1, 1969, and passenger tramways in existence on November 1, 1969, may be operated without registration until final action is taken by the Commissioner on the application for registration thereof."
Sec. 8.  All statutory authority, powers, duties, and functions, records, personnel, property, unexpended balances of appropriations, allocations or other funds, including the functions of budgeting and purchasing of the Department of Labor, pertaining to elevators, escalators, dumbwaiters, amusements, aerial tramways, and inclined railroads, as provided in Chapter 95 of the General Statutes, are transferred to the Department of Insurance as provided herein.  As used in this section, "powers, duties, and functions”include rulemaking, regulation, licensing, and promulgation of rules, rates, regulations, and standards and the rendering of findings, orders, and adjudications.
Any rules pertaining to the administration or enforcement of the matter transferred by this section shall remain in effect until amended or repealed by the Building Code Council.
Sec. 9.  As provided by Section 91(b) of Chapter 864, Session Laws of 1987, G.S. 95-111.12 as recodified as G.S. 58-27.101 by Section 6 of this act is amended effective January 1, 1990, by deleting "one hundred thousand dollars ($100,000)”and substituting "three hundred thousand dollars ($300,000)".
Sec. 10.  G.S. 143-139 reads as rewritten:
"§ 143-139. Enforcement of Building Code.
(a)	Procedural Requirements. – Subject to the provisions set forth herein, the Building Code Council shall adopt such procedural requirements in the North Carolina State Building Code as shall appear reasonably necessary for adequate enforcement of the Code while safeguarding the rights of persons subject to the Code.
(b)	General Building Regulations. – The Insurance Commissioner shall have general supervision, through the Division of Engineering of the Department of Insurance, of the administration and enforcement of all sections of the North Carolina State Building Code pertaining to plumbing, electrical systems, general building restrictions heating and air conditioning, fire protection, and the construction of buildings generally. The Insurance Commissioner, by means of the Division of Engineering, shall exercise his duties in  the enforcement of the North Carolina State Building Code (including local building codes which have superseded the State Building Code in a particular political subdivision pursuant to G.S. 143-138(e)) in cooperation with local officials and local inspectors duly appointed by the governing body of any municipality or board of county commissioners pursuant to Article 11, Chapter 160 of the General Statutes of North Carolina, or G.S. 160-200(29), or G.S. 153-9(47) and (52), or any other applicable statutory authority.
		."
Sec. 11.  Prosecutions for offenses occurring before the effective date of this act are not abated or affected by this act, and the statutes that would be applicable but for this act remain applicable to those prosecutions.
Sec. 12.  This act shall become effective July 1, 1989.