AN ACT TO EXEMPT CERTAIN SIGN MANUFACTURERS FROM GENERAL CONTRACTOR LICENSING REQUIREMENTS AND TO ESTABLISH A VERIFICATION PROCEDURE FOR BUILDING PERMIT APPLICANTS CLAIMING THIS EXEMPTION.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 87‑1 reads as rewritten:

§ 87‑1.  General contractor defined; exceptions.

(a)        For the purpose of this Article any person or firm or corporation who for a fixed price, commission, fee, or wage, undertakes to bid upon or to construct or who undertakes to superintend or manage, on his own behalf or for any person, firm, or corporation that is not licensed as a general contractor pursuant to this Article, the construction of any building, highway, public utilities, grading or any improvement or structure where the cost of the undertaking is forty thousand dollars ($40,000) or more, or undertakes to erect a North Carolina labeled manufactured modular building meeting the North Carolina State Building Code, shall be deemed to be a general contractor engaged in the business of general contracting in the State of North Carolina.

(b)        This section shall not apply to the following:

(1)        Persons, firms, or corporations furnishing or erecting industrial equipment, power plan plant equipment, radial brick chimneys, and monuments.

(2)        Any person, firm, or corporation who constructs or alters a building on land owned by that person, firm, or corporation provided (i) the building is intended solely for occupancy by that person and his family, firm, or corporation after completion; and (ii) the person, firm, or corporation complies with G.S. 87‑14. If the building is not occupied solely by the person and his family, firm, or corporation for at least 12 months following completion, it shall be presumed that the person, firm, or corporation did not intend the building solely for occupancy by that person and his family, firm, or corporation.

(3)        Any person engaged in the business of farming who constructs or alters a building on land owned by that person and used in the business of farming, when the building is intended for use by that person after completion.

(4)        Any person, firm, or corporation constructing, furnishing, or erecting signs, awnings, or related architectural features and is UL certified.

SECTION 2.  G.S. 87‑14 reads as rewritten:

§ 87‑14.  Regulations as to issue of building permits.

(a)        Any person, firm, or corporation, upon making application to the building inspector or other authority of any incorporated city, town, or county in North Carolina charged with the duty of issuing building or other permits for the construction of any building, highway, sewer, grading, or any improvement or structure where the cost is to be forty thousand dollars ($40,000) or more, shall, before being entitled to a permit, satisfy the following:

(1)        Furnish satisfactory proof to the inspector or authority that the applicant seeking the permit or another person contracting to superintend or manage the construction is licensed under this Article to carry out or superintend the construction or is exempt from licensure under G.S. 87‑1(b). If an applicant claims an exemption from licensure pursuant to G.S. 87‑1(b)(2), the applicant for the building permit shall execute a verified affidavit attesting to the following:

a.         That the applicant is the owner of the property on which the building is being constructed and, if the applicant is a firm or corporation, that the person submitting the application is an owner, officer, or member of the firm or corporation that owns the property.

b.         That the applicant will personally superintend and manage all aspects of the construction of the building and that the duty will not be delegated to any other person not licensed under this Article.

c.         That the applicant will be personally present for all inspections required by the North Carolina State Building Code, unless the plans for the building were drawn and sealed by an architect licensed pursuant to Chapter 83A of the General Statutes.

The building inspector or other authority shall transmit a copy of the affidavit to the Board, which shall verify that the applicant was validly entitled to claim the exemption under G.S. 87‑1(b)(2). If the Board determines that the applicant was not entitled to claim the exemption under G.S. 87‑1(b)(2), the building permit shall be revoked pursuant to G.S. 160D‑1115.

(1a)      If an applicant claims an exemption from licensure pursuant to G.S. 87‑1(b)(4), the applicant for the building permit shall provide documentation demonstrating that the person, firm, or corporation is currently UL certified for sign manufacturing. The applicant shall execute a verified affidavit attesting to these facts. The building inspector or other authority shall transmit a copy of the affidavit and documentation to the Board, which shall verify that the applicant was validly entitled to claim the exemption under G.S. 87‑1(b)(4). If the Board determines that the applicant was not entitled to claim the exemption under G.S. 87‑1(b)(4), the building permit shall be revoked pursuant to G.S. 160D‑1115.

(2)        Furnish proof that the applicant has in effect Workers' Compensation insurance as required by Chapter 97 of the General Statutes.

(3)        Redesignated as subsection (a1) by Session Laws 2022‑62, s. 8, effective July 8, 2022.

(a1)      Any person, firm, or corporation, upon making application to the building inspector or other authority of any incorporated city, town, or county in North Carolina charged with the duty of issuing building permits pursuant to G.S. 160D‑1110 for any improvements for which the combined cost is to be forty thousand dollars ($40,000) or more, other than for improvements to an existing single‑family residential dwelling unit as defined in G.S. 87‑15.5(7) that the owner occupies as a residence, or for the addition of an accessory building or accessory structure as defined in the North Carolina Uniform Residential Building Code, the use of which is incidental to that residential dwelling unit, shall be required to provide to the building inspector or other authority the name, physical and mailing address, telephone number, facsimile number, and email address of the lien agent designated by the owner pursuant to G.S. 44A‑11.1(a).

(b)        It is unlawful for the building inspector or other authority to issue or allow the issuance of a building permit pursuant to this section unless and until the applicant has furnished evidence that the applicant has complied with subsection (a) of this section. Any building inspector or other authority that is subject to and violates this section is guilty of a Class 3 misdemeanor and subject only to a fine of not more than fifty dollars ($50.00).

SECTION 3.  This act is effective when it becomes law.