A BILL TO BE ENTITLED
AN ACT TO STREAMLINE BUILDING CODE ADOPTION FOR GENERAL AND RESIDENTIAL CONSTRUCTION AND TO EXPEDITE DECISIONS OF THE BUILDING CODE COUNCIL.
The General Assembly of North Carolina enacts:
SECTION 1.  Article 9 of Chapter 143 of the General Statutes is amended by:
(1)	Designating G.S. 143‑136 through G.S. 143‑138.1 as:
"Part 1. Nonresidential Building Code Council and Building Code."
(2)	Designating G.S. 143‑139 through G.S. 143‑143.5 as:
"Part 3. Enforcement; Hearing Procedures; Exemptions."
SECTION 2.  G.S. 143‑136 reads as rewritten:
"§ 143‑136.  Building Code Council created; membership.
(a)	Creation; Membership; Terms. – There is hereby created a Building Code Council, which shall be composed of  10 members appointed by the Governor, consisting of two registered architects, one licensed general contractor,  one registered engineer practicing structural engineering, one registered engineer practicing mechanical engineering, one registered engineer practicing electrical engineering, one licensed plumbing and heating contractor, one municipal or county building inspector,  a representative of the public who is not a member of the building construction industry,  and an active member of the North Carolina fire service with expertise in fire safety. In selecting the municipal and county members, preference should be given to members who qualify as either a registered architect, registered engineer, or licensed general contractor. Of the members initially appointed by the Governor, three shall serve for terms of two years each, three shall serve for terms of four years each, and three shall serve for terms of six years each. Thereafter, all appointments shall be for terms of six years. The Governor may remove appointive members at any time. Neither the architect nor any of the above named engineers shall be engaged in the manufacture, promotion or sale of any building material, and any member who shall, during his term, cease to meet the qualifications for original appointment (through ceasing to be a practicing member of the profession indicated or otherwise) shall thereby forfeit his membership on the Council. In making new appointments or filling vacancies, the Governor shall ensure that minorities and women are represented on the Council.
The Governor may make appointments to fill the unexpired portions of any terms vacated by reason of death, resignation, or removal from office. In making such appointment, he shall preserve the composition of the Council required above.
(b)	Compensation. – Members of the Building Code Council other than any who are employees of the State shall receive seven dollars ($7.00) per day, including necessary time spent in traveling to and from their place of residence within the State to any place of meeting or while traveling on official business of the Council. In addition, all members shall receive mileage and subsistence according to State practice while going to and from any place of meeting, or when on official business of the Council."
SECTION 3.  G.S. 143‑138(a) reads as rewritten:
"(a)	Preparation and Adoption. – The Building Code Council may prepare and adopt, in accordance with the provisions of this Article, a North Carolina State Building  Code for nonresidential buildings, including multifamily residential buildings but not including one‑family or two‑family residential buildings. Before the adoption of the Code, or any part of the Code, the Council shall hold at least one public hearing. A notice of the public hearing shall be published in the North Carolina Register at least 15 days before the date of the hearing. Notwithstanding G.S. 150B‑2(8a)h., the North Carolina State Building Code as adopted by the Building Code Council is a rule within the meaning of G.S. 150B‑2(8a) and shall be adopted in accordance with the procedural requirements of Article 2A of Chapter 150B of the General Statutes.
The Council shall request the Office of State Budget and Management to prepare a fiscal note for a proposed Code change that has a substantial economic impact, as defined in G.S. 150B‑21.4(b1), or that increases the cost of residential housing by eighty dollars ($80.00) or more per housing unit. The change can become effective only in accordance with G.S. 143‑138(d). Neither the Department of Insurance nor the Council shall be required to expend any monies to pay for the preparation of any fiscal note under this section by any person outside of the Department or Council unless the Department or Council contracts with a third‑party vendor to prepare the fiscal note."
SECTION 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; rules governing construction and precautions to be taken during construction; rules as to permissible materials, loads, and stresses; rules governing chimneys, heating appliances, elevators, and other facilities connected with the buildings and structures; rules 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.
In addition, the Code may regulate activities and conditions in buildings, structures, and premises that pose dangers of fire, explosion, or related hazards. Such fire prevention code provisions shall be considered the minimum standards necessary to preserve and protect public health and safety, subject to approval by the Council of more stringent provisions proposed by a municipality or county as provided in G.S. 143‑138(e). These provisions may include regulations requiring the installation of either battery‑operated or electrical smoke detectors in every dwelling unit used as rental property, regardless of the date of construction of the rental property. For dwelling units used as rental property constructed prior to 1975, smoke detectors shall have an Underwriters' Laboratories, Inc., listing or other equivalent national testing laboratory approval, and shall be installed in accordance with either the standard of the National Fire Protection Association or the minimum protection designated in the manufacturer's instructions, which the property owner shall retain or provide as proof of compliance.
The Code may contain provisions regulating every type of building or structure, except for one‑family or two‑family residential construction, wherever it might be situated in the State.
Provided further, that nothing in this Article shall be construed to make any building rules applicable to farm buildings located outside the building‑rules jurisdiction of any municipality.

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 rules governing boilers adopted by the Board of Boiler and Pressure Vessels Rules,
(2)	Any rules relating to the safe operation of elevators adopted by the Commissioner of Labor, and
(3)	Any rules relating to sanitation adopted by the Commission for Health Services 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 rule issued by any agency other 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, except for liquefied petroleum gas from the outlet of the first stage pressure regulator to and including each liquefied petroleum gas utilization device within a building or structure covered by the Code, 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 rules concerning minimum efficiency requirements for replacement water heaters, which shall consider reasonable availability from manufacturers to meet installation space requirements.
No State, county, or local building code or regulation shall prohibit the use of special locking mechanisms for seclusion rooms in the public schools approved under G.S. 115C‑391.1(e)(1)e., provided that the special locking mechanism shall be constructed so that it will engage only when a key, knob, handle, button, or other similar device is being held in position by a person, and provided further that, if the mechanism is electrically or electronically controlled, it automatically disengages when the building's fire alarm is activated. Upon release of the locking mechanism by a supervising adult, the door must be able to be opened readily."
SECTION 5.  G.S. 143‑138 is amended by adding a new subsection to read:
"(i1)	Notwithstanding references to residential buildings or occupancies in subsection (i) of this section, this section does not apply to one‑family and two‑family residential buildings."
SECTION 6.  Article 9 of Chapter 143 of the General Statutes is amended by adding a new Part to read:
"Part 2. Residential Building Code Council and Building Code.
"§ 143‑138.10.  Residential Building Code Council created; membership.
(a)	Creation; Membership; Terms. – There is hereby created a Residential Building Code Council, which shall be composed of seven members as follows:
(1)	Two licensed general contractors specializing in residential construction, appointed by the Governor.
(2)	One licensed general contractor specializing in coastal residential construction, appointed by the Governor.
(3)	One registered engineer practicing structural engineering who is not engaged in the manufacture, promotion, or sale of any building material, appointed by the Governor.
(4)	Three members appointed by the Commissioner of Insurance consisting of three municipal or county building inspectors.
Of the members initially appointed by the Governor, two shall serve for terms of two years each and two shall serve for terms of six years each. Of the members initially appointed by the Commissioner, one shall serve for a term of two years and two shall serve for terms of six years each. Thereafter, all appointments shall be for terms of six years.
The Governor or Commissioner may remove their appointive members at any time. Any member who, during that member's term, ceases to meet the qualifications for original appointment through ceasing to be a practicing member of the profession indicated or otherwise shall thereby forfeit that member's membership on the Council.
The Governor or Commissioner may make appointments to fill the unexpired portions of any terms vacated by reason of death, resignation, or removal from office. In making the appointment, the Governor or Commissioner shall preserve the composition of the Council required in this subsection.
(b)	Compensation. – Members of the Residential Building Code Council shall be compensated pursuant to G.S. 138‑6 as if they were State employees or officials.
"§ 143‑138.11.  Organization of Residential Building Code Council; rules; meetings; staff; fiscal affairs.
(a)	First Meeting; Organization; Rules. – Within 30 days after its appointment, the Residential Building Code Council shall meet on call of the Commissioner of Insurance. The Council shall elect from its members a chair and any other officers for terms designated in its rules. The Council shall adopt rules not inconsistent herewith for the proper discharge of its duties. The chair may appoint members to any committees the work of the Council requires. In addition, the chair shall establish and appoint ad hoc code revision committees to consider and prepare revisions and amendments to the Code volumes. Each ad hoc committee shall consist of members of the Council, licensed contractors, design professionals most affected by the Code volume for which the ad hoc committee is responsible, and members of the public. The committees shall meet upon the call of their respective chairs and shall report their recommendations to the Council.
(b)	Meetings. – The Council shall meet regularly, at least once every six months, at places and dates to be determined by the Council. Special meetings may be called by the chair on the chair's initiative and shall be called by the chair when two or more members of the Council request a meeting. All members shall be notified by the chair in writing of the time and place of regular and special meetings at least seven days in advance of the meetings. Seven members shall constitute a quorum. All meetings shall be open to the public.
(c)	Staff. – Personnel of the Division of Engineering of the Department of Insurance shall serve as a staff for the Council. The staff shall have the following duties:
(1)	Keeping an accurate and complete record of all meetings, hearings, correspondence, laboratory studies, and technical work performed by or for the Council and making these records available for public inspection at all reasonable times.
(2)	Handling correspondence for the Council.
(d)	Fiscal Affairs of the Council. – All funds for the operations of the Council and its staff shall be appropriated to the Department of Insurance for the use of the Council. All funds shall be held in a separate or special account on the books of the Department of Insurance, with a separate financial designation or code number to be assigned by the Department of Administration or its agent. Expenditures for staff salaries and operating expenses shall be made in the same manner as the expenditure of other Department of Insurance funds. The Department of Insurance may hire any additional personnel as may be necessary to handle the work of the Residential Building Code Council, within the limits of funds appropriated for the Council and with the approval of the Council.
"§ 143‑138.12.  North Carolina State Residential Building Code.
(a)	Preparation and Adoption. – The Residential Building Code Council may prepare and adopt, in accordance with the provisions of this Article, a North Carolina State Residential Building Code for one‑family and two‑family residential buildings. Before the adoption of the Code, or any part of the Code, the Council shall hold at least one public hearing. A notice of the public hearing shall be published in the North Carolina Register at least 15 days before the date of the hearing. Notwithstanding G.S. 150B‑2(8a)h., the North Carolina State Residential Building Code as adopted by the Residential Building Code Council is a rule within the meaning of G.S. 150B‑2(8a) and shall be adopted in accordance with the procedural requirements of Article 2A of Chapter 150B of the General Statutes.
The Council shall request the Office of State Budget and Management to prepare a fiscal note for a proposed Code change that has a substantial economic impact, as defined in G.S. 150B‑21.4(b1) or that increases the cost of residential housing by eighty dollars ($80.00) or more per housing unit. The change may become effective only in accordance with subsection (d) of this section. Neither the Department of Insurance nor the Council shall be required to expend any monies to pay for the preparation of any fiscal note under this section by any person outside of the Department or Council unless the Department or Council contracts with a third‑party vendor to prepare the fiscal note.
(b)	Contents of the Code. – The North Carolina State Residential Building Code, as adopted by the Residential Building Code Council, may include reasonable and suitable classifications of buildings and structures as to both use and occupancy; general building restrictions as to location, height, and floor areas; requirements concerning means of egress from buildings and structures; requirements concerning means of egress in buildings and structures; rules governing construction and precautions to be taken during construction; rules as to permissible materials, loads, and stresses; rules governing chimneys and other facilities connected with the buildings and structures; and any other reasonable rules pertaining to the construction of buildings and structures and the installation of particular facilities therein as may be found 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 residential building or structure, wherever it might be situated in the State.
Nothing in this Article shall be construed to make any building rule applicable to farm buildings located outside the building‑rules jurisdiction of any municipality.
No building permit shall be required under the Code or any local variance thereof approved under subsection (e) of this section 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: (i) the addition, repair, or replacement of load‑bearing structures, (ii) the addition (excluding replacement of same size and capacity) or change in the design of plumbing, (iii) the addition, replacement, or change in the design of heating, air-conditioning, or electrical wiring, devices, appliances, or equipment, (iv) the use of materials not permitted by the North Carolina State Residential Building Code, or (v) the addition (excluding replacement of like grade of fire resistance) of roofing.
No building permit shall be required under the 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 of the Code, the Code shall include as appendices any rule relating to sanitation adopted by the Commission for Health Services which the Residential Building Code Council believes pertinent.
In addition, the Code may include references to 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 rule issued by any other agency shall be construed as a part of the Code, nor supersede that Code; it being intended that the rules of other agencies 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 (i) equipment for storing, handling, transporting, and utilizing liquefied petroleum gases for fuel purposes or anhydrous ammonia or other liquid fertilizers, except for liquefied petroleum gas from the outlet of the first stage pressure regulator to and including each liquefied petroleum gas utilization device within a building or structure covered by the Code or (ii) 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.
(c)	Standards to Be Followed in Adopting the Code. – The Council shall adopt the requirements of the International Building Code of the International Code Council.
(d)	Amendments of the Code. – The Residential Building Code Council may revise and amend the North Carolina State Residential Building Code, either on its own motion or upon application from any citizen, State agency, or political subdivision of the State. In adopting any amendment, the Council shall comply with the same procedural requirements and the same standards set forth above for adoption of the Code.
Handbooks providing explanatory material on Code provisions shall be provided no later than 180 days following adoption of the Code and shall be updated with each revision of the Code or, in the discretion of the Council, more frequently. The available date of these handbooks shall be considered when an adoption date for the code has been set by the Council. The Department may charge a reasonable fee for the handbooks.
(e)	Effect Upon Local Codes. – The North Carolina State Residential Building Code shall apply throughout the State, from the time of its adoption. Approved rules shall become effective in accordance with G.S. 150B‑21.3. However, any political subdivision of the State may adopt a fire prevention code and floodplain management regulations within its jurisdiction. The territorial jurisdiction of any municipality or county for this purpose, unless otherwise specified by the General Assembly, shall be as follows: Municipal jurisdiction shall include all areas within the corporate limits of the municipality and extraterritorial jurisdiction areas established as provided in G.S. 160A‑360 or a local act; county jurisdiction shall include all other areas of the county. No such code or regulations, other than floodplain management regulations and those permitted by G.S. 160A‑436, shall be effective until they have been officially approved by the Building Code Council as providing adequate minimum standards to preserve and protect health and safety, in accordance with the provisions of subsection (c) of this section. Local floodplain regulations may regulate all types and uses of buildings or structures located in flood hazard areas identified by local, State, and federal agencies and include provisions governing substantial improvements, substantial damage, cumulative substantial improvements, lowest floor elevation, protection of mechanical and electrical systems, foundation construction, anchorage, acceptable flood resistant materials, and other measures the political subdivision deems necessary considering the characteristics of its flood hazards and vulnerability. In the absence of approval by the Residential Building Code Council, or in the event that approval is withdrawn, local fire prevention codes and regulations shall have no force and effect. Any local rule or regulation approved by the local governing body which is found by the Council to be more stringent than the adopted statewide fire prevention code and which is found to regulate only activities and conditions in buildings, structures, and premises that pose dangers of fire, explosion, or related hazards, and is not a matter in conflict with the State Residential Building Code, shall be approved. 
(f)	Publication and Distribution of Code. – The Residential Building Code Council shall cause to be printed, after adoption by the Council, the North Carolina State Residential Building Code and each amendment thereto. It shall, at the State's expense, distribute copies of the Code and each amendment to State and local governmental officials, departments, agencies, and educational institutions, as is set out in the table below. (Those marked by an asterisk will receive copies only on written request to the Council.)

OFFICIAL OR AGENCY	NUMBER OF COPIES
State Departments and Officials
Governor	1
Lieutenant Governor	1
Auditor	1
Treasurer	1
Secretary of State	1
Superintendent of Public Instruction	1
Attorney General (Library)	1
Commissioner of Agriculture	1
Commissioner of Labor	1
Commissioner of Insurance	1
Department of Environment and Natural Resources	1
Department of Health and Human Services	1
Department of Juvenile Justice and Delinquency Prevention	1
Board of Transportation	1
Utilities Commission	1
Department of Administration	1
Clerk of the Supreme Court	1
Clerk of the Court of Appeals	1
Clerk of the Superior Court	1
Department of Cultural Resources (State Library)	5
Supreme Court Library	2
Legislative Library	1
Office of Administrative Hearings	1
Rules Review Commission	1
Schools
All State‑supported colleges and universities 
	in the State of North Carolina	*1 each
Local Officials
Clerks of the Superior Courts	1 each
Chief Building Inspector of each incorporated 
municipality or county	1
In addition, the Residential Building Code Council shall make additional copies available at the price it deems reasonable to members of the general public.
(g)	Violations. – Any person who violates this Article, except for violations of occupancy limits established by either, shall be guilty of a Class 3 misdemeanor and, upon conviction, shall only be punished by a fine not to exceed fifty dollars ($50.00) for each offense. Each 30 days that the violation continues shall constitute a separate and distinct offense. Violation of occupancy limits established pursuant to this Article and set forth in the North Carolina State Residential Building Code shall be a Class 3 misdemeanor. Any violation incurred more than one year after another conviction for violation of the occupancy limits shall be treated as a first offense for purposes of establishing and imposing penalties.
"§ 143‑138.13  Enforcement of the North Carolina State Residential Building Code.
(a)	Procedural Requirements. – Subject to the provisions set forth herein, the Residential Building Code Council shall adopt procedural requirements in the North Carolina State Residential Building Code that are reasonably necessary for adequate enforcement of the Code while safeguarding the rights of persons subject to the Code.
(b)	General Building Regulations. – The Commissioner of Insurance 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 Residential Building Code pertaining to general building restrictions and regulations and the construction of buildings generally. The Commissioner of Insurance, by means of the Division of Engineering, shall exercise the Commissioner's duties in the enforcement of the North Carolina State Residential Building Code (including local building codes which have superseded the State Residential Building Code in a particular political subdivision pursuant to G.S. 143‑138.12(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 Part 5 of Article 19 of Chapter 160A of the General Statutes, Part 4 of Article 18 of Chapter 153A of the General Statutes, or any other applicable statutory authority.
(c)	Remedies. – In case any building or structure is maintained, erected, constructed, or reconstructed or its purpose altered so that it becomes in violation of this Article or of the North Carolina State Residential Building Code, either the local enforcement officer or the State Commissioner of Insurance or other State official with responsibility under this section may, in addition to other remedies, institute any appropriate action or proceeding to: (i) prevent the unlawful maintenance, erection, construction, or reconstruction or alteration of purpose, or overcrowding, (ii) restrain, correct, or abate the violation, or (iii) prevent the occupancy or use of the building, structure, or land until the violation is corrected. In addition to the civil remedies set out in G.S. 160A‑175 and G.S. 153A‑123, a county, city, or other political subdivision authorized to enforce the North Carolina State Residential Building Code within its jurisdiction may, for the purposes stated in (i) through (iii) of this subsection, levy a civil penalty for violation of the fire prevention code of the North Carolina State Residential Building Code, which penalty may be recovered in a civil action in the nature of debt if the offender does not pay the penalty within a prescribed period of time after the offender has been cited for the violation. If the Commissioner or other State official institutes an action or proceeding under this section, a county, city, or other political subdivision shall not institute a civil action under this section based upon the same violation. Appeals from the imposition of any remedy set forth herein, including the imposition of a civil penalty by a county, city, or other political subdivision, shall be as provided in G.S. 160A‑434.
"§ 143‑138.14.  Introduction and instruction of the North Carolina State Residential Building Code.
Prior to the effective date of Code changes pursuant to G.S. 143‑138.12, the Residential Building Code Council and Department of Insurance shall provide for instructional classes for the various trades affected by the Code. The Department of Insurance shall develop the curriculum for each class but shall consult the affected licensing boards and trade organizations. The curriculum shall include explanations of the rationale and need for each Code amendment or revision. Classes may also be conducted by, on behalf of, or in cooperation with licensing boards, trade associations, and professional societies. The Department of Insurance may charge fees sufficient to recover the costs it incurs under this section. The Council shall ensure that courses are accessible to persons throughout the State."
SECTION 7.  G.S. 143‑141(a) reads as rewritten:
"(a)	Method of Appeal. – Whenever any person desires to take an appeal to the Building Code Council from the decision of a State enforcement agency relating to any matter under this Article or under the North Carolina State Building Code, he shall within 30 days after such decision give written notice to the Building Code Council through the Division of Engineering of the Department of Insurance that he desires to take an appeal. A copy of such notice shall be filed at the same time with the enforcement agency from which the appeal is taken. The chairman of the Building Code Council shall fix a reasonable time and place for a hearing, giving reasonable notice to the appellant and to the enforcement agency. Such hearing shall be not later than the next regular meeting of the Council. The Building Code Council shall thereupon conduct a full and complete hearing as to the matters in  controversy. Within 30 business days after the completion of the hearing, the Council shall issue a written decision setting forth its findings of fact and its conclusions."
SECTION 8.  The Building Code Council shall adopt rules or amend the North Carolina State Building Code consistent with Sections 3 through 6 of this act on or before October 1, 2008. The Department of Insurance shall adopt rules to implement this act and shall make recommendations, including legislative proposals for statutory revisions required to establish a separate State Building Code and Building Code Council for one‑family and two‑family residential structures.  The Department shall report its recommendations to the General Assembly by March 1, 2008.
SECTION 9.  Sections 1 through 6 of this act become effective October 1, 2008, and apply to permits issued and offenses committed on or after that date.  The remainder of this act is effective when it becomes law.