AN ACT to provide further regulatory relief to the citizens of north carolina.

The General Assembly of North Carolina enacts:

GUARANTEED ENERGY SAVINGS CONTRACTS – REFORM AND RECODIFICATION

SECTION 1.(a)  Article 3B of Chapter 143 of the General Statutes is amended by adding a new Part 3 to be entitled Guaranteed Energy Savings Contracts.

SECTION 1.(b)  The following provisions are recodified in Part 3 of Article 3B of Chapter 143 of the General Statutes, as created by subsection (a) of this section, as set forth in the table below:

Former Citation                                                                            Recodified Citation

G.S. 143‑64.17B                                                                           G.S. 143‑64.18B

G.S. 143‑64.17D                                                                           G.S. 143‑64.18D

G.S. 143‑64.17E                                                                           G.S. 143‑64.18E

G.S. 143‑64.17F                                                                            G.S. 143‑64.18F

G.S. 143‑64.17G                                                                           G.S. 143‑64.18J

G.S. 143‑64.17H                                                                           G.S. 143‑64.18K

SECTION 1.(c)  Part 3 of Article 3B of Chapter 143 of the General Statutes, as created by subsection (a) of this section, as amended by subsection (b) of this section, reads as rewritten:

Part 3. Guaranteed Energy Savings Contracts.

§ 143‑64.18A.  Solicitation of guaranteed energy savings contracts.

(a)        RFQ Issuance. – Before entering into a guaranteed energy savings contract, a governmental unit shall issue a request for qualifications. Notice of the request shall be published at least 15 days in advance of the closing date for receipt of qualifications on a State‑maintained electronic procurement portal accessible to the public and, in the case of a local governmental unit, in at least one newspaper of general circulation in the geographic area for which the local governmental unit is responsible or on the unit's publicly accessible website.

(b)        Minimum Content of RFQ. – The request for qualifications shall include, at a minimum, each of the following:

(1)        The name and address of the governmental unit and a contact person.

(2)        A general description of the facilities and scope of energy conservation measures being considered.

(3)        The evaluation criteria and relative criteria weighting to be applied in the selection process.

(4)        The closing date and time for receipt of qualifications.

(5)        A statement reserving the right of the governmental unit to reject any or all responses.

(c)        Criteria for Selection of Provider. – The governmental unit shall select the qualified provider that it determines to best meet the needs of the governmental unit by evaluating all of the following and following the procedures set forth in this section:

(1)        Demonstrated competence of the qualified provider.

(2)        The qualified provider's past performance on energy savings projects.

(3)        For State governmental units, the inclusion of a provision in a guaranteed energy savings contract that requires the annual measurement and verification review to be conducted by an impartial third party whose compensation is included in the total cost of the proposed contract.

(4)        Any other criteria stated in the request for qualifications.

(d)       Initial Evaluation; Shortlist. – The governmental unit shall evaluate responses to the request for qualifications and develop a shortlist of the most highly qualified respondents based on the criteria set forth in subsection (c) of this section. If only one response is received from a qualified provider, the governmental unit may proceed with the evaluation and selection of that provider without resolicitation, provided that the governmental unit makes a written determination that resolicitation is unlikely to increase competition. The determination shall state the basis for that conclusion and shall be included in the public award file. For State governmental units, if only one response is received, the State Energy Office shall concur in the determination before the governmental unit may select the qualified provider.

(e)        Ranking; Selection. – A qualified reviewer shall review the shortlisted respondents' qualifications and provide the governmental unit with a written evaluation addressing, at a minimum, any material concerns regarding the respondents' ability to perform. The governmental unit shall then rank the shortlisted respondents, select the highest‑ranked qualified provider, and negotiate the terms of a guaranteed energy savings contract. If negotiations with the highest‑ranked provider are unsuccessful, the governmental unit may proceed to the next‑ranked provider.

(f)        Investment Grade Audit. – Prior to entering into a guaranteed energy savings contract under this section, the qualified provider selected by the governmental unit shall conduct an investment grade audit that includes a life cycle cost analysis of each energy conservation measure in the final proposal.

(g)        Qualified Reviewer; Final Evaluation. – Prior to a State governmental unit's award of a guaranteed energy savings contract under this section, the qualified reviewer shall review the qualified provider's final proposal and the terms of the negotiated contract and shall provide the governmental unit with a written evaluation addressing whether the negotiated scope is materially consistent with the qualifications and approach presented in the RFQ response, whether the savings methodology remains technically sound, and whether any changes introduced during the negotiation materially affect the projected savings or risk profile.

(h)        State Energy Office Review. – The State Energy Office shall review the qualified provider's proposal, cost‑benefit analysis, and other relevant documents prior to the governmental unit entering a guaranteed energy savings contract. For State governmental units, the State Energy Office shall complete its review within 10 business days of receiving the proposal. The State Energy Office shall advise the governmental unit on the suitability of the proposed guaranteed energy savings contract. However, if the State Energy Office identifies in the proposal any instances of noncompliance with the requirements of this Article, the State Energy Office shall notify the governmental unit of such noncompliance. A governmental unit may not enter into the proposed guaranteed energy savings contract until the State Energy Office has determined the proposal to be in compliance with this Article.

(i)         Governmental Unit Authority Preserved. – Nothing in this section shall limit the authority of the governmental unit as set forth in Article 3D of this Chapter.

§ 143‑64.18B.  Guaranteed energy savings contracts.

(a)        A governmental unit may enter into a guaranteed energy savings contract with a qualified provider if all of the following apply:

(1)        The term of the contract does not exceed 20 years from the date of the installation and acceptance by the governmental unit of the energy conservation measures provided for under the contract.

(2)        The governmental unit finds that the energy savings resulting from the performance of the contract will equal or exceed the total cost of the contract.

(3)        The energy conservation measures to be installed under the contract are for an existing building or utility system, or utility consuming device or equipment when the utility cost is paid by the governmental unit.

(b)        Before entering into a guaranteed energy savings contract, the governmental unit shall provide published notice of the time and place or of the meeting at which it proposes to award the contract, the names of the parties to the proposed contract, and the contract's purpose. The notice must be published at least 15 days before the date of the proposed award or meeting.

(c)        A qualified provider entering into a guaranteed energy savings contract under this Part shall provide security to the governmental unit in the form acceptable to the Office of the State Treasurer and in an amount equal to one hundred percent (100%) of the guaranteed savings for the term of the guaranteed energy savings contract to assure the provider's faithful performance. Any bonds required by this subsection shall be subject to the provisions of Article 3 of Chapter 44A of the General Statutes. If the savings resulting from a guaranteed energy savings contract are not as great as projected under the contract and all required shortfall payments to the governmental unit have not been made, the governmental unit may terminate the contract without incurring any additional obligation to the qualified provider.

(d)       As used in this section, total cost shall include, but not be limited to, costs of construction, costs of financing, and costs of maintenance and training during the term of the contract less the application of the utility company, State, or federal incentives, grants, or rebates. rebates, or capital funding. Total cost does not include any obligations on termination of the contract before its expiration, provided that those obligations are disclosed when the contract is executed.

(e)        A guaranteed energy savings contract may not require the governmental unit to purchase a maintenance contract or other maintenance agreement from the qualified provider who installs energy conservation measures under the contract if the unit of government takes appropriate action to budget for its own forces or another provider to maintain new systems installed and existing systems affected by the guaranteed energy savings contract.

(f)        In the case of a State governmental unit, a qualified provider shall, when feasible, after the acceptance of the proposal of the qualified provider by the State governmental unit, conduct an investment grade audit. During this investment grade audit, the qualified provider shall perform in accordance with Part 1 of this Article a life cycle cost analysis of each energy conservation measure in the final proposal. If the results of the audit are not within ten percent (10%) of both the guaranteed savings contained in the proposal and the total proposal amount, either the State governmental unit or the qualified provider may terminate the project without incurring any additional obligation to the other party. However, if the State governmental unit terminates the project after the audit is conducted and the results of the audit are within ten percent (10%) of both the guaranteed savings contained in the proposal and the total proposal amount, the State governmental unit shall reimburse the qualified provider the reasonable cost incurred in conducting the audit, and the results of the audit shall become the property of the State governmental unit.

(g)        A qualified provider shall provide an annual reconciliation statement based upon the results of the measurement and verification review. The statement shall disclose any shortfalls or surplus between guaranteed energy and operational savings specified in the guaranteed energy savings contract and actual, not stipulated, energy and operational savings incurred during a given guarantee year. Any guaranteed energy and operational savings shall be determined by using one of the measurement and verification methodologies listed in the United States Department of Energy's Measurement and Verification Guidelines for Energy Savings Performance Contracting, the International Performance Measurement and Verification Protocol (IPMVP) maintained by the Efficiency Valuation Organization, or Guideline 14‑2002 of the American Society of Heating, Refrigerating, and Air‑Conditioning Engineers. If due to existing data limitations or the nonconformance of specific project characteristics, none of the three methodologies listed in this subsection is sufficient for measuring guaranteed savings, the qualified provider shall develop an alternate method that is compatible with one of the three methodologies and mutually agreeable to the governmental unit. The guarantee year shall consist of a 12‑month term commencing from the time that the energy conservation measures become fully operational. A qualified provider shall pay the governmental unit or its assignee any shortfall in the guaranteed energy and operational savings after the total year savings have been determined. In the case of a governmental unit, a surplus in any one year shall not be carried forward or applied to a shortfall in any other year.

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GUARANTEED ENERGY SAVINGS CONTRACTS – CONFORMING CHANGES

SECTION 2.(a)  The following statutes are amended by deleting the language Part 2 of Article 3B wherever it appears and substituting Part 3 of Article 3B: G.S. 115C‑47, 115D‑20, 133‑4.1, 143‑129.4, and 143‑135.37.

SECTION 2.(b)  G.S. 160A‑20 is amended by deleting the language Part 2 of Article 3B wherever it appears and substituting Article 3B.

SECTION 2.(c)  G.S. 143‑64.12 is amended by deleting the language Part 2 of this Article wherever it appears and substituting Part 3 of this Article.

SECTION 2.(d)  The following statutes are amended by deleting the language G.S. 143‑64.17A wherever it appears and substituting G.S. 143‑64.18A: G.S. 142‑61 and G.S. 142‑63.

SECTION 2.(e)  G.S. 159‑151 is amended by deleting the language G.S. 143‑64.17A(a1) wherever it appears and substituting G.S. 143‑64.18A(a1).

SECTION 2.(f)  G.S. 143‑64.17K is amended by deleting the language G.S. 143‑64.17A(c1) wherever it appears and substituting G.S. 143‑64.18A(c1).

SECTION 2.(g)  G.S. 142‑63 is amended by deleting the language G.S. 143‑64.17B wherever it appears and substituting G.S. 143‑64.18B.

SECTION 2.(h)  G.S. 143‑64.17L is amended by deleting the language G.S. 143‑64.17B(d) wherever it appears and substituting G.S. 143‑64.18B(d).

SECTION 3.(a)  G.S. 143‑64.17 reads as rewritten:

Part 2. Energy Saving Measures for Governmental Units.

§ 143‑64.17.  Definitions.

As used in this Part:Part and Part 3 of this Article:

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(6)        Request for proposals means a negotiated procurement initiated by a governmental unit by way of a published notice that includes the following:

a.         The name and address of the governmental unit.

b.         The name, address, title, and telephone number of a contact person in the governmental unit.

c.         Notice indicating that the governmental unit is requesting qualified providers to propose energy conservation measures through a guaranteed energy savings contract.

d.         The date, time, and place where proposals must be received.

e.         The evaluation criteria for assessing the proposals.

f.          A statement reserving the right of the governmental unit to reject any or all the proposals.

g.         Any other stipulations and clarifications the governmental unit may require.

(7)        State governmental unit means the State or a department, an agency, a board, or a commission of the State, including the Board of Governors of The University of North Carolina and its constituent institutions.

SECTION 3.(b)  G.S. 143‑64.17A is repealed.

SECTION 3.(c)  The following statutes are amended by deleting the word Part wherever it appears and substituting the word Article: G.S. 143‑64.17I, 143‑64.17J, 143‑64.17K, and 143‑64.17L.

SECTION 4.  The Department of Environmental Quality shall adopt temporary rules to implement Sections 1 through 3 of this act and shall adopt permanent rules to replace the temporary rules. Temporary rules adopted in accordance with this section shall remain in effect until permanent rules that replace the temporary rules become effective.

LIMIT DEPARTMENT OF ENVIRONMENTAL QUALITY FEE INCREASE AUTHORITY AND LOWER FEES FOR COMMERCIAL UNDERGROUND STORAGE TANKS

SECTION 5.(a)  G.S. 143B‑279.19 reads as rewritten:

§ 143B‑279.19.  Quadriennial adjustment of certain fees and rates.

(a)        Adjustment for Legislatively Mandated Salaries and Benefits. – Beginning July 1, 2025, and every four years thereafter, the Department shall adjust the fees and rates imposed pursuant to the statutes listed in this subsection in accordance with the Consumer Price Index computed by the Bureau of Labor Statistics during the prior two bienniums. bienniums, subject to approval by the Environmental Management Commission. The adjustment for per transaction rates shall be the lesser of the Consumer Price Index increase and the actual incremental cost to the Department to operate the relevant program rounded to the nearest dollar ($1.00):

(1)        G.S. 74‑54.1.

(2)        G.S. 90A‑42.

(3)        G.S. 90A‑47.4.

(4)        G.S. 113A‑54.2.

(5)        G.S. 113A‑119.1.

(6)        G.S. 130A‑291.1.

(7)        G.S. 130A‑294.1.

(8)        G.S. 130A‑295.8.

(9)        G.S. 130A‑310.9.

(10)      G.S. 130A‑310.39.

(11)      G.S. 130A‑310.76.

(12)      G.S. 130A‑328(b).

(13)      G.S. 130A‑328(c).

(14)      G.S. 143‑215.3D.

(15)      G.S. 143‑215.10G.

(16)      G.S. 143‑215.28A

(17)      G.S. 143‑215.94C.

(18)      G.S. 143‑215.119.

(19)      G.S. 143‑215.125A.

(20)      G.S. 143B‑279.13.

(b)        Rulemaking Exemption. – The fee adjustments required by this section are not subject to the requirements of Article 2A of Chapter 150B of the General Statutes.

(c)        Consultation Consultation, Approval, and Publication. – Notwithstanding any provision of G.S. 12‑3.1 to the contrary, prior to implementing an adjustment pursuant to subsection (a) of this section the Department must, no later than 90 days prior to the end of the fiscal biennium, (i) consult with the Joint Legislative Oversight Committee on Agriculture and Natural and Economic Resources, (ii) report the proposed fee adjustments to the chairs of the Senate Appropriations Committee on Agriculture, Natural, and Economic Resources, the chairs of the House of Representatives Appropriations Committee on Agriculture and Natural and Economic Resources, and the Fiscal Research Division, and (iii) publish notice of the fees that will be in effect in the offices of the Department and on the Department's website. website, pending approval by the Environmental Management Commission, and (iv) submit the proposed fee adjustments to the Environmental Management Commission for approval. The Environmental Management Commission shall make a determination on the proposed fee adjustments at the next regularly scheduled meeting after receiving the Department's proposal. After making the adjustment, the Department shall notify the Revisor of Statutes, who shall adjust the amounts in statute.

(d)       Effective Date; Grandfathering. – Any adjustment to fees or rates under this section applicable to an application or request for a permit, certification, or other Department approval submitted to the Department is only applicable to an application or request for a permit, certification, or other Department approval submitted to the Department on or after the effective date of the fee or rate adjustment. No adjustment to fees or rates under this section applies to an application or request for a permit, certification, or other Department approval submitted to the Department prior to the effective date of the fee or rate adjustment.

SECTION 5.(b)  G.S. 143‑215.94C reads as rewritten:

§ 143‑215.94C.  Commercial leaking petroleum underground storage tank cleanup fees.

(a)        For purposes of this subsection, each compartment of a commercial underground storage tank that is designed to independently contain a petroleum product is a separate petroleum commercial underground storage tank. The owner or operator of a commercial petroleum underground storage tank shall pay to the Secretary for deposit into the Commercial Fund an annual operating fee of four hundred ninety‑eight dollars ($498.00) one hundred dollars ($100.00) for each petroleum commercial underground storage tank.

…

(e)        An owner or operator of a commercial underground storage tank who fails to pay an annual operating fee due under this section within 30 days of the date that the fee is due shall pay, in addition to the fee, a late penalty of six dollars ($6.00) five dollars ($5.00) per day per commercial underground storage tank, up to a maximum equal to the annual operating fee due. The Department may waive a late penalty in whole or in part if:

(1)        The late penalty was incurred because of the late payment or nonpayment of an annual operating fee by a previous owner or operator.

(2)        The late penalty was incurred because of a billing error for which the Department is responsible.

(3)        Where the late penalty was incurred because the annual operating fee was not paid by the owner or operator due to inadvertence or accident.

(4)        Where payment of the late penalty will prevent the owner or operator from complying with any substantive law, rule, or regulation applicable to underground storage tanks and intended to prevent or mitigate discharges or releases or to facilitate the early detection of discharges or releases.

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SECTION 5.(c)  This section is effective October 1, 2026, and applies to any fees due on or after that date.

AUTHORIZE JOB ORDER CONTRACTING FOR CONSTRUCTION OR REPAIR PUBLIC CONTRACTS

SECTION 6.(a)  G.S. 143‑49 reads as rewritten:

§ 143‑49.  Powers and duties of Secretary.

The Secretary of Administration has the power and authority, and it is the Secretary's duty, subject to the provisions of this Article:

…

(17)      To establish procedures to permit State government, or any of its departments, institutions, or agencies, to join with any federal, State, or local government agency, entity, or subdivision, or any nonprofit organization in this State or another state in cooperative purchasing plans, projects, arrangements, or agreements agreements, including for construction or repair work through job order contracting pursuant to G.S. 143‑128.1D, if the interest of the State would be served thereby. The procedures shall not require a governmental entity to secure informal quotes or any additional competition for construction or repair work through job order contracting if the initial contract was competitively bid as provided by G.S. 143‑128.1D.

SECTION 6.(b)  G.S. 143‑128 reads as rewritten:

§ 143‑128.  Requirements for certain building contracts.

…

(a1)      Construction methods. – The State, a county, municipality, or other public body shall award contracts to erect, construct, alter, or repair buildings pursuant to any of the following methods:

(1)        Separate‑prime bidding.

(2)        Single‑prime bidding.

(3)        Dual bidding pursuant to subsection (d1) of this section.

(4)        Construction management at risk contracts pursuant to G.S. 143‑128.1.

(5)        Alternative contracting methods authorized pursuant to G.S. 143‑135.26(9).

(6)        Design‑build contracts pursuant to G.S. 143‑128.1A.

(7)        Design‑build bridging contracts pursuant to G.S. 143‑128.1B.

(8)        Public‑private partnership construction contracts pursuant to G.S. 143‑128.1C.

(9)        Job order contracting contracts pursuant to G.S. 143‑128.1D.

….

SECTION 6.(c)  Article 8 of Chapter 143 of the General Statutes is amended by adding a new section to read as follows:

§ 143‑128.1D.  Job order contracting contracts.

(a)        Definitions. – For purposes of this section, the following definitions shall apply:

(1)        Adjustment factor. – The job order contractor's competitively bid adjustment to the governmental entity's prices as published in the unit price catalog.

(2)        Governmental entity. – Every officer, board, department, commission, or commissions charged with responsibility of preparation of specifications or awarding or entering into contracts for construction or repair work for the State or for any county, municipality, political subdivision of the State, or other public body.

(3)        Indefinite quantity. – One or more of the construction or repair tasks listed in the unit price catalog.

(4)        Job order. – A firm, fixed priced, lump sum order issued by a governmental entity to a job order contractor for a definite project scope of construction or repair work as compiled from the unit price catalog to be performed pursuant to a job order contract.

(5)        Job order contract. – A competitively bid, fixed priced, indefinite quantity procurement contract, as compiled from a unit price catalog of construction or repair tasks that is awarded to the most qualified job order contractor bidder, as described in subsection (b) of this section, by or under the authority of a governmental entity. In a job order contract, the contractor agrees to an indefinite quantity contract that provides for the use of job orders for construction or repair projects. A job order contract does not constitute a construction contract for the purposes of Article 3 of Chapter 44A of the General Statutes.

(6)        Job order contract technical specifications. – The technical specifications detailing the quality of materials and workmanship to be used by the job order contractor in accomplishing the tasks listed in the unit price catalog.

(7)        Job order contractor. – A contractor awarded a job order contract.

(8)        Project. – The specific requirements and work to be accomplished by the job order contractor in connection with an individual job order.

(9)        Project scope of work. – The documents and related drawings, specifications, and writings referenced therein which together set forth the specific requirements and work to be accomplished by the job order contractor in connection with an individual job order.

(10)      Proposal. – The job order contractor prepared documents quoting those construction or repair tasks listed in the unit price catalog that the job order contractor requires to complete the project scope of work and the appropriate quantities of tasks. The pricing of each task shall be accomplished by multiplying the task unit price by the proposed quantity of tasks and the contractor's competitively bid adjustment factor. The proposal shall also contain a schedule for the completion of a specific project scope of work as requested by the governmental entity. The proposal may also contain approved drawings, work schedule, permits, or other documentation as the governmental entity may require for a specific job order.

(11)      Subcontractor. – Any person, firm, or corporation, other than the employees of the job order contractor, who contracts to furnish labor or labor and materials at the work site or in connection with a job order, whether directly or indirectly, on behalf of the job order contractor.

(12)      Unit price catalog. – A compilation of specific construction or repair tasks and the unit prices to undertake each construction or repair task. The listed tasks shall be based on generally accepted industry standards and information, where available, for various items of work to be performed by the job order contractor. The prices shall include the cost of materials, labor, and equipment for performing the items of work. The prices shall not include overhead and profit. All unit prices shall be developed using local prevailing wages.

(b)        Contracting Procedures. – A governmental entity shall award a job order contract subject to the following requirements:

(1)        The governmental entity shall prepare a set of solicitation documents for job order contracts. The solicitation documents shall include a unit price catalog and preestablished unit prices, job order contract technical specifications, and any other information deemed necessary to describe adequately the needs of the governmental entity. Any architect, engineer, or consultant retained by the governmental entity to assist in the development of the job order contract solicitation documents shall not assist the job order contractor in preparing the contractor's bid.

(2)        The governmental entity shall provide a guaranteed minimum amount of construction or repair work of not less than thirty thousand dollars ($30,000) to be awarded under the job order contract. Once the guaranteed minimum amount has been met, the governmental entity may, for any reason, elect to not award any additional amount of construction or repair work under the job order contract.

(3)        In response to a request for bids, a job order contractor shall bid one or more adjustment factors to the unit prices listed in the unit price catalog based on the job order contract technical specifications. The combined average lowest adjustment factor shall constitute the lowest bid.

(4)        The governmental entity shall award the job order contract to the lowest responsive, responsible bidder when awarding a single job order contract.

(5)        The governmental entity may award multiple job order contracts through a single request for bid as follows:

a.         Job order contracts shall be awarded to the bidders that bid the lowest adjustment factors as described in this subsection.

b.         The governmental entity shall not award more than five job order contracts under a single solicitation, provided no more than one job order contract under a single solicitation is awarded to a single contractor.

c.         The governmental entity may issue job orders on a rotating basis or other method, as determined by the governmental entity, provided that method is included in the solicitation documents, but in no circumstance shall the government entity require additional competition among the contractors who have been awarded job order contracts.

(6)        The governmental entity may prequalify job order contractors as provided in subsection (c) of this section and may award to bidders as provided in subdivisions (4) and (5) of this subsection.

(c)        Prequalification. – A governmental entity soliciting job order contracts pursuant to this section shall comply with the prequalification requirements set forth by G.S. 143‑135.8 that apply to construction or repair work contracts.

(d)       Limitations. – The following limitations apply to contracts awarded pursuant to this section:

(1)        The maximum total dollar amount that may be awarded under a single job order contract shall not exceed twenty million dollars ($20,000,000) in the first term of the job order contract and, if extended or renewed pursuant to subdivision (2) of this subsection, a maximum of forty million dollars ($40,000,000) over the subsequent two terms of the job order contract. The maximum total dollar amount for any individual job order shall not exceed two million dollars ($2,000,000).

(2)        Job order contracts may be executed for an initial contract term of no more than 12 months, with the option of extending or renewing the job order contract for two 12‑month periods. The term of the job order contract shall be for the contract term or whenever the maximum value of the contract is achieved, whichever is less. All extensions or renewals shall be priced as provided in the request for bids. The extension or renewal shall be mutually agreed to by the governmental entity and job order contractor.

(3)        The governmental entity may issue job orders to the job order contractor that has been awarded the job order contract. The job order shall be based on a project scope of work prepared by the governmental entity as well as a proposal from the job order contractor who is awarded the job order contract. No single job order may exceed the available aggregate contract value.

(4)        The governmental entity shall not use job order contracting for procuring or receiving architectural, engineering, or survey services, but shall procure those services pursuant to Article 3D of Chapter 143 of the General Statutes.

(5)        The amounts specified in subdivisions (1) and (2) of this subsection shall be adjusted on January 1, 2027, and each January 1 thereafter, to reflect the percentage change in the North Carolina Consumer Price Index, as determined and published by the Department of Administration.

(e)        Performance and Payment Bonds. – The job order contractor shall provide a payment and performance bond to the governmental entity for job orders in accordance with the provisions of Article 3 of Chapter 44A of the General Statutes when applicable.

(f)        Historically Underutilized Businesses. – A governmental entity shall make a good‑faith effort to comply with the provisions of G.S. 143‑128.2 and G.S. 143‑128.4, if applicable for job orders. Notwithstanding the provisions of G.S. 143‑128.2 and G.S. 143‑128.4, the goal for participation by minority businesses shall be based on the entire job order contract.

SECTION 6.(d)  G.S. 143‑129 reads as rewritten:

§ 143‑129.  Procedure for letting of public contracts.

…

(e)        Exceptions. – The requirements of this Article do not apply to:

…

(3)        Purchases Construction or repair work, including construction or repair work through job order contracting pursuant to G.S. 143‑128.1D, or purchases of apparatus, supplies, materials, or equipment made through a competitive bidding group purchasing program, which is a formally organized program that offers competitively obtained purchasing services at discount prices to two or more public agencies.

…

(9)        Purchases Construction or repair work, including construction or repair work through job order contracting pursuant to G.S. 143‑128.1D, or purchases of apparatus, supplies, materials, or equipment from contracts established by the State or any agency of the State, if the contractor is willing to extend to a political subdivision of the State the same or more favorable prices, terms, and conditions as established in the State contract.

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AUTHORITY FOR MOBILE HOME PARK AND TINY HOME COMMUNITY LANDLORDS TO BILL TENANTS FOR MASTER‑METERED WATER SERVICE

SECTION 7.  G.S. 62‑110(g) reads as rewritten:

(g)      In addition to the authority to issue a certificate of public convenience and necessity and establish rates otherwise granted in this Chapter, for the purpose of encouraging water conservation, the Commission may, consistent with the public interest, adopt procedures that allow (i) a lessor of any leased residential premises, as that term is defined under G.S. 42‑59(3), to charge for the costs of providing water or sewer service to persons who occupy the leased premises, (ii) an owners' association, as that term is defined under G.S. 47F‑1‑103(3), to charge for the costs of providing water or sewer service to persons who occupy townhomes within a planned community, as that term is defined under G.S. 47F‑1‑103(23), and (iii) a unit owners' association, as that term is defined under G.S. 47C‑1‑103(3), to charge for the costs of providing water or sewer service to persons who occupy a condominium, as that term is defined under G.S. 47C‑1‑103(7). For purposes of this subsection, the term townhome means a single‑family dwelling unit constructed in a group of three or more attached units. The following provisions shall apply:

(1)        Except as provided in subdivisions (1a), (1b), and (1c) (1c), and (1d) of this subsection, all charges for water or sewer service shall be based on the user's metered consumption of water, which shall be determined by metered measurement of all water consumed. The rate charged by the lessor, owners' association, or unit owners' association, as applicable, shall not exceed the unit consumption rate charged by the supplier of the service.

(1a)      If the leased premises are contiguous dwelling units built prior to 1989, and the lessor determines that the measurement of the lessee's total water usage is impractical or not economical, the lessor may allocate the cost for water and sewer service to the lessee using equipment that measures the lessee's hot water usage. In that case, each lessee shall be billed a percentage of the lessor's water and sewer costs for water usage in the dwelling units based upon the hot water used in the lessee's dwelling unit. The percentage of total water usage allocated for each dwelling unit shall be equal to that dwelling unit's individually submetered hot water usage divided by all submetered hot water usage in all dwelling units. The following conditions apply to billing for water and sewer service under this subdivision:

a.         A lessor shall not utilize a ratio utility billing system or other allocation billing system that does not rely on individually submetered hot water usage to determine the allocation of water and sewer costs.

b.         The lessor shall not include in a lessee's bill the cost of water and sewer service used in common areas or water loss due to leaks in the lessor's water mains. A lessor shall not bill or attempt to collect for excess water usage resulting from a plumbing malfunction or other condition that is not known to the lessee or that has been reported to the lessor.

c.         All equipment used to measure water usage shall comply with guidelines promulgated by the American Water Works Association.

d.         The lessor shall maintain records for a minimum of 12 months that demonstrate how each lessee's allocated costs were calculated for water and sewer service. Upon advanced written notice to the lessor, a lessee may inspect the records during reasonable business hours.

e.         Bills for water and sewer service sent by the lessor to the lessee shall contain all the following information:

1.         The amount of water and sewer services allocated to the lessee during the billing period.

2.         The method used to determine the amount of water and sewer services allocated to the lessee.

3.         Beginning and ending dates for the billing period.

4.         The past‑due date, which shall not be less than 25 days after the bill is mailed.

5.         A local or toll‑free telephone number and address that the lessee can use to obtain more information about the bill.

(1b)      Notwithstanding the provisions of subdivisions (1), (1a), and (1c) of this subsection, if the Commission approves a flat rate to be charged by a water or sewer utility for the provision of water or sewer services to contiguous dwelling units, the lessor, owners' association, or unit owners' association, as applicable, may pass through and charge the tenants or occupants of the contiguous dwelling units the same flat rate for water or sewer services, rather than a rate based on metered consumption, and an administrative fee as authorized in subdivision (2) of this subsection. Bills for water and sewer service sent by the lessor, owners' association, or unit owners' association, as applicable, to the lessee or occupant shall contain all the information required by sub‑sub‑subdivisions e.2. through e.5. of subdivision (1a) of this subsection.

(1c)      The lessor may equally divide the amount of the water and sewer bill for a unit among all the lessees in the unit and may send one bill to each lessee. The amount charged shall be prorated when a lessee has not leased the unit for the same number of days as the other lessees in the unit during the billing period. Each bill may include an administrative fee up to the amount of the then‑current administrative fee authorized by the Commission in Rule 18‑6 for water service and, when applicable, a late fee in an amount determined by the Commission. The lessor shall not charge the cost of water and sewer from any other unit or common area in a lessee's bill sent pursuant to this subdivision.

(1d)     Notwithstanding the provisions of subdivisions (1), (1a), and (1c) of this subsection, if the leased premises is a mobile home located within a mobile home park, or a tiny home located within a tiny home community, and the lessor determines that the measurement of the lessee's total water usage is impractical or not economical, the lessor may allocate the cost for water and sewer service to the lessee using either of the following:

a.         Equipment that measures the lessee's hot water usage. In that case, each lessee shall be billed a percentage of the lessor's water and sewer costs for water usage in the mobile home park or tiny home community, as applicable, based upon the hot water used in the lessee's mobile home or tiny home. The percentage of total water usage allocated for each mobile home or tiny home, as applicable, shall be equal to that mobile home's or tiny home's individually submetered hot water usage divided by all submetered hot water usage in all mobile homes located within the mobile home park or tiny homes within the tiny home community, as applicable.

b.         A ratio utility billing system or other allocation billing system that does not rely on individually submetered hot water usage to determine the allocation of water and sewer costs.

The conditions set forth in sub‑subdivisions b. through e. of subdivision (1a) of this subsection shall apply to billing for water and sewer service under this subdivision. For purposes of this subsection, the term tiny home means a single‑family detached dwelling unit that is 400 square feet or less in floor area, specifically excluding lofts.

….

MINING PERMIT MODIFICATIONS

SECTION 8.(a)  G.S. 74‑49 reads as rewritten:

§ 74‑49.  Definitions.

Wherever used or referred to in this Article, unless a different meaning clearly appears from the context:

…

(7)        Mining means any of the following: (i) the breaking of the surface soil in order to facilitate or accomplish the extraction or removal of minerals, ores, or other solid matter; (ii) any activity or process constituting all or part of a process for the extraction or removal of minerals, ores, soils, and other solid matter from their original location; or (iii) the preparation, washing, cleaning, or other treatment of minerals, ores, or other solid matter so as to make them suitable for commercial, industrial, or construction use.

      Mining does not include:

…

h.         Activities undertaken at any time within the mine permit boundaries for the production and harvesting of timber and timber products and conducted in accordance with standards defined by the Forest Practice Guidelines Related to Water Quality, as adopted by the Department of Agriculture and Consumer Services.

….

SECTION 8.(b)  G.S. 74‑50 reads as rewritten:

§ 74‑50.  Permits – General.

…

(b2)      The notice shall inform the owners of record and chief administrative officers of the opportunity to submit written comments to the Department regarding the proposed new or modified mining operation that adds land to the permitted area and the opportunity to request a public hearing regarding the proposed new or modified mining operation. Requests for public hearing shall be made within 30 days of issuance of the notice.notice or receipt of the application by the Department, whichever is later.

…

(c)        No permit shall become effective until the operator has deposited with the Department an acceptable performance bond or other security pursuant to G.S. 74‑54.

(1)        If at any time the bond or other security, or any part thereof, shall lapse for any reason other than a release by the Department, and the lapsed bond or security is not replaced by the operator within 30 days after notice of the lapse, the permit to which the lapsed bond or security pertains shall be automatically revoked.

(2)        If the Department is noticed of pending cancellation of a bond by the surety pursuant to G.S. 74‑54(a) and the bond is not replaced within 45 days of the Department's receipt of the notice, the permit to which the bond or security pertains shall be automatically revoked.

…

(e)        Public comment periods and time frames for conducting public hearings as established by this Article shall not be extended nor altered by the Department. When the Department holds a public hearing pursuant to G.S. 74‑51(c), the 60‑day technical review period established in G.S. 74‑51(b1) shall not conclude until either 30 days following the public hearing or the original 60‑day technical review period, whichever is later.

SECTION 8.(c)  G.S. 74‑51 reads as rewritten:

§ 74‑51.  Permits – Application, granting, conditions.

…

(b)        Before deciding whether to grant a new permit, the Department shall circulate copies of a notice of application for review and comment as it deems advisable. The Department shall grant or deny the permit requested as expeditiously as possible, but in no event later than 60 days after the application form and any relevant and material supplemental information reasonably required shall have been filed with the Department, or if a public hearing is held, within 30 days following the hearing and the filing of any relevant and material supplemental information reasonably required by the Department. possible. Priority consideration shall be given to applicants who submit evidence that the mining proposed will be for the purpose of supplying materials to the Board of Transportation. In accordance with G.S. 143B‑279.18, except to the extent required by federal or State law, the Department shall not refuse to accept an application for, nor refuse to issue, a new, modified, or transferred mining permit based solely on the failure of an applicant to obtain another permit, authorization, or certification required for the same project. For purposes of this section, failure to obtain a permit, authorization, or certification shall not include denial of the permit, authorization, or certification by the Department based on the standards for approval of the permit, authorization, or certification provided by law.

(b1)      The Department shall act on a permit application as quickly as possible. The Department may conduct any inquiry or investigation it considers necessary before acting on an application and may require an applicant to submit plans, specifications, and other information the Department considers necessary to evaluate the application. If the Department fails to act on an application for a new, modified, or transferred mining permit as specified in this subsection after the applicant submits all information required by the Department, the application shall be deemed approved without modification. The following provisions apply:

(1)        The Department shall perform an administrative review of an application and of a resubmittal of an application determined to be incomplete under subdivision (3) of this subsection within 10 working days of receipt to determine if the information is administratively complete. If complete, the Department shall issue a receipt letter or electronic response stating that the application is complete and that a 60‑calendar day technical review period has started as of the original date the application was received. If required items or information is not included, the application shall be deemed incomplete, and the Department shall issue an application receipt letter or electronic response identifying the information required to complete the application package before the technical review begins. When the required information is received, the Department shall then issue a receipt letter or electronic response specifying that it is complete and that the 60‑calendar day technical review period has started as of the date of receipt of all required information. The Department shall develop an application package checklist identifying the items and information required for an application to be considered administratively complete.

(2)        If, during the 60‑calendar day technical review period, the Department determines that the application meets the standards for issuance of a new, modified, or transferred mining permit, it shall approve the application.

(3)        If, during the 60‑calendar day technical review period, the Department determines that additional information is required to continue processing the application, the Department and the applicant shall comply with the following:

a.         The Department shall issue a letter or electronic response with a list of the additional information required to issue the permit.

b.         The applicant shall have up to 180 calendar days from the date the letter or electronic response is sent to submit the additional information to the Department.

c.         If the applicant is unable to provide the required information within the time frame specified in sub‑subdivision b. of this subdivision, the applicant may request, with good cause, that a one‑year extension be granted by the Department; if the one‑year extension granted by the Department is insufficient, the applicant may then request another one‑year extension granted by the Mining Commission.

d.         If the applicant fails to provide the required information within 180 calendar days or within any extensions granted by the Department and Commission pursuant to sub‑subdivision c. of this subdivision, the Department shall return the application to the applicant, the application is deemed denied, and the applicant must resubmit a complete application with a new application fee before the project may be reviewed.

e.         Upon receipt of the required information from the applicant, the Department shall have 45 calendar days to complete the subsequent technical review and issue the permit, issue the permit with modifications, deny the permit, or issue a letter or electronic response with a list of additional information required to continue processing the application, and the review process will proceed in accordance with sub‑subdivision b. or c. of this subdivision, as applicable.

f.          After issuing a letter or electronic response requesting additional information under this subdivision, the Department shall not subsequently request additional information that was not previously identified as missing or required in that additional information letter or electronic response. The Department may, however, request additional information if required for the technical review based on any new information, changed circumstances, or changed designs provided by the applicant in a response provided pursuant to sub‑subdivision b. or c. of this subdivision, as applicable.

g.         Where the Department identifies information that should have been requested, the Department may address this information by including conditions in or modifications to the permit upon issuance but shall not deny the permit because of the missing information. This prohibition on permit denial shall not apply where an application was deemed denied under sub‑subdivision d. of this subdivision.

…

(d)       The Department may deny the permit upon finding:

…

(7)        That the applicant or any parent, subsidiary, or other affiliate of the applicant or parent has not been in substantial compliance with this Article, rules adopted under this Article, or other laws or rules of this State for the protection of the environment or has not corrected all violations that the applicant or any parent, subsidiary, or other affiliate of the applicant or parent may have committed under this Article or rules adopted under this Article and that resulted in:

a.         Revocation of a permit,

b.         Forfeiture of part or all of a bond or other security,

c.         Conviction of a misdemeanor under G.S. 74‑64,

d.         Any other court order issued under G.S. 74‑64, or

e.         Final assessment of a civil penalty under G.S. 74‑64, [or]

f.          Failure to pay the application processing fee required under G.S. 74‑54.1.

(8)        That the applicant failed to pay the application processing fee required by G.S. 74‑54.1 within 30 days of receipt of the application by the Department.

…

(h)        Upon approval of an application, the Department shall set the amount of the performance bond or other security that is to be required pursuant to G.S. 74‑54. The operator shall have 60 days after the Department mails a notice of the required bond to the operator in which to deposit the required bond or security with the Department. Department or the permit application will be automatically denied. The operating permit shall not be issued until receipt of this deposit.

….

SECTION 8.(d)  This section becomes effective October 1, 2026, and applies to permit applications filed on or after that date.

EXEMPT CERTAIN COMPOST FACILITIES FROM FINANCIAL ASSURANCE REQUIREMENTS

SECTION 8.5.  G.S. 130A‑295.2 is amended by adding a new subsection to read:

(k)      An owner or operator of a permitted Small or Large Type 1, Type 2, or Type 3 compost facility shall be exempt from financial assurance requirements under this section.

ALIGN NORTH CAROLINA LEAD‑DUST HAZARD STANDARDS WITH FEDERAL STANDARDS ADOPTED BY THE U.S. ENVIRONMENTAL PROTECTION AGENCY

SECTION 9.(a)  G.S. 130A‑131.7 reads as rewritten:

§ 130A‑131.7.  Definitions.

The following definitions apply in this Part:

…

(7)        Lead poisoning hazard means any of the following:

…

c.         Any concentration of lead dust that is equal to or greater than 10 micrograms 5 micrograms per square foot on floors, 100 micrograms 40 micrograms per square foot on interior windowsills, or 250 micrograms per square foot on vinyl miniblinds, bathtubs, kitchen sinks, or lavatories.

d.         Any lead‑based paint or other substance that contains lead on a friction or impact surface that is subject to abrasion, rubbing, binding, or damage by repeated contact and where the lead dust concentrations on the nearest horizontal surface underneath the friction or impact surface are equal to or greater than 40 micrograms 5 micrograms per square foot on floors or 250 micrograms 40 micrograms per square foot on interior windowsills.

….

SECTION 9.(b)  G.S. 130A‑131.9C(i) reads as rewritten:

(i)       All remediation plans shall require that the lead poisoning hazards be reduced to the following levels:

(1)        Less than 10 micrograms 5 micrograms per square foot for lead dust on floors.

(2)        Less than 100 micrograms 40 micrograms per square foot for lead dust on interior windowsills.

(2a)      Less than 250 micrograms per square foot for lead dust on vinyl miniblinds, bathtubs, kitchen sinks, and lavatories.

(3)        Less than 400 micrograms 100 micrograms per square foot for lead dust on window troughs.

(4)        Less than 400 parts per million for lead in bare soil in play areas, gardens, pet sleeping areas, and areas within three feet of the residential housing unit or child‑occupied facility. Lead in bare soil in other locations of the yard shall be reduced to less than 1,200 parts per million.

(5)        Less than 10 parts per billion for lead in drinking water.

SECTION 9.(c)  This section becomes effective January 1, 2027.

ALIGN STATUTORY REFERENCE WITH PRESIDENTIAL EXECUTIVE ORDER 14172

SECTION 9.1.  G.S. 143‑215.94BB(7) reads as rewritten:

(7)      Offshore waters shall include both the territorial sea extending seaward from the coastline of North Carolina or any other coastal state bordering the Atlantic Ocean, including the Gulf of Mexico, Gulf of America, and the exclusive economic zone extending seaward from the territorial sea of each such state.

CONFORM DEFINITION OF MANUFACTURED HOME WITH FEDERAL DEFINITION

SECTION 9.2.(a)  G.S. 25‑9‑102(53) reads as rewritten:

(53)    Manufactured home. – A structure, transportable in one or more sections that satisfies all of the following requirements:

a.         In the traveling mode, is eight body feet or more in width or 40 body feet or more in length, or, when erected on site, is 320 or more square feet.

b.         Is built on a permanent chassis and designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities.

c.         Includes plumbing, heating, air‑conditioning, and electrical systems.

The term includes any structure that meets all of the requirements of this subdivision except the size requirements and with respect to which the manufacturer voluntarily files a certification required by the United States Secretary of Housing and Urban Development and complies with the standards established under Title 42 of the United States Code.As defined in 42 U.S.C. § 5402(6), as amended.

SECTION 9.2.(b)  G.S. 143‑143.9(6) reads as rewritten:

(6)      Manufactured home. – A structure, transportable in one or more sections, which, in the traveling mode, is eight feet or more in width or is 40 feet or more in length, or when erected on site, is 320 or more square feet, and which is built on a permanent chassis and designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities, and includes the plumbing, heating, air conditioning and electrical systems contained therein.As defined in 42 U.S.C. § 5402(6), as amended.

SECTION 9.2.(c)  G.S. 143‑145(7) reads as rewritten:

(7)      Manufactured home. – A structure, transportable in one or more sections, which in the traveling mode is eight body feet or more in width, or 40 body feet or more in length, or, when erected on site, is 320 or more square feet; and which is built on a permanent chassis and designed to be used as a dwelling, with or without permanent foundation when connected to the required utilities, including the plumbing, heating, air conditioning and electrical systems contained therein. Manufactured home includes any structure that meets all of the requirements of this subsection except the size requirements and with respect to which the manufacturer voluntarily files a certification required by the Secretary of HUD and complies with the standards established under the Act. For manufactured homes built on or after June 15, 1976, as defined in 42 U.S.C. § 5402(6), as amended. For manufactured homes built before June 15, 1976, manufactured home means a portable manufactured housing unit designed for transportation on its own chassis and placement on a temporary or semipermanent foundation having a measurement of over 32 feet in length and over eight feet in width. Manufactured home also means a double‑wide manufactured home, which is two or more portable manufactured housing units designed for transportation on their own chassis that connect on site for placement on a temporary or semipermanent foundation having a measurement of over 32 feet in length and over eight feet in width.

SECTION 9.2.(d)  G.S. 20‑58.4A(e) reads as rewritten:

(e)      Notwithstanding any requirement in this Chapter that a lien on a motor vehicle shall be noted on the face of the certificate of title, if there are one or more liens or encumbrances on the motor vehicle or mobile manufactured home, the Division may electronically transmit the lien to the first lienholder and notify the first lienholder of any additional liens. Subsequent lien satisfactions may be electronically transmitted to the Division and shall include the name and address of the person satisfying the lien.

SECTION 9.2.(e)  G.S. 24‑1.1E(a)(4) reads as rewritten:

(4)      A high‑cost home loan means a loan other than a reverse mortgage transaction in which:

a.         The principal amount of the loan (or, in the case of an open‑end credit plan, the borrower's initial maximum credit limit) does not exceed the lesser of (i) the conforming loan size limit for a single‑family dwelling as established from time to time by Fannie Mae, or (ii) three hundred thousand dollars ($300,000);

b.         The borrower is a natural person;

c.         The debt is incurred by the borrower primarily for personal, family, or household purposes;

d.         The loan is secured by either (i) a security interest in a manufactured home (as defined in G.S. 143‑147(7) ) G.S. 143‑145(7)) which is or will be occupied by the borrower as the borrower's principal dwelling, or (ii) a mortgage or deed of trust on real estate upon which there is located or there is to be located a structure or structures designed principally for occupancy of from one to four families which is or will be occupied by the borrower as the borrower's principal dwelling; and

e.         The terms of the loan exceed one or more of the thresholds as defined in subdivision (6) of this section.

SECTION 9.2.(f)  G.S. 47‑20.6 is amended by adding a new subsection to read:

(e)      For purposes of this section, the term manufactured home is as defined in 42 U.S.C. § 5402(6), as amended.

SECTION 9.2.(g)  G.S. 41‑56(d) reads as rewritten:

(d)      When spouses become co‑owners of a mobile home, in the absence of a contrary intention appearing in the instrument of title, the spouses become tenants by the entirety with all the incidents of an estate by the entirety in real property, including the right of survivorship in the case of death of either spouse. For the purposes of this subsection, it is immaterial whether the property at any particular time is classified for any purpose as either real or personal. Nothing in this subsection is deemed to limit or prohibit any other type of ownership otherwise authorized by law. For the purposes of this subsection, the term mobile home means a any of the following:

(1)        A portable manufactured housing unit designed for transportation on its own chassis and placement on a temporary or semipermanent foundation having a measurement of over 32 feet in length and over eight feet in width.

(2)        As used in this subsection, the term mobile home also means a A double‑wide mobile home consisting of two or more portable manufactured housing units that are designed for transportation on their own chassis and are connected on site for placement on a temporary or semipermanent foundation having a measurement of over 32 feet in length and over eight feet in width.

(3)        A manufactured home as defined in 42 U.S.C. § 5402(6), as amended.

SECTION 9.2.(h)  G.S. 47H‑1(5) reads as rewritten:

(5)      Property. – Either (i) real estate located in this State, upon which there is located or there is to be located a structure or structures designed principally for occupancy of from one to four families that is or will be occupied by the purchaser as the purchaser's principal dwelling, or (ii) a manufactured home, as that term is defined in G.S. 143‑149.9, G.S. 143‑143.9(6), that is located in this State and is or will be occupied by a purchaser as the purchaser's principal dwelling, if the purchase price is five thousand dollars ($5,000) or more.

SECTION 9.2.(i)  G.S. 58‑36‑90(a)(6) reads as rewritten:

(6)      Residential property means real property with not more than four housing units located in this State, the contents thereof and valuable interest therein, and insurance coverage written in connection with the sale of that property. It also includes mobile homes, manufactured homes as defined in G.S. 143‑143.9(6), modular homes, townhomes, condominiums, and insurance on contents of apartments and rental property used for residential purposes.

SECTION 9.2.(j)  This section becomes effective July 1, 2026.

ON‑SITE WASTEWATER PRODUCTS FOR STORMWATER

SECTION 10.  The Department of Environmental Quality shall approve for use as a new stormwater technology any prefabricated permeable block panel system approved for use in the State, as defined in G.S. 130A‑343(a)(6a). In developing Minimum Design Criteria for this technology, the Department shall ensure that the MDC follows the manufacturer's installation and service requirements as closely as possible while still complying with federal requirements. When utilized in traffic‑rated areas, a person licensed as a professional engineer pursuant to Chapter 89C of the General Statutes may use the approved prefabricated permeable block panel system upon a showing that the system meets H‑20 structural loading requirements. For the purposes of this section, traffic‑rated areas does not include Department of Transportation rated areas but does include driveways and private parking areas with impervious or pervious pavement areas.

TEMPORARY EVENT EXEMPTION FOR ELECTRIC WORK

SECTION 11.(a)  G.S. 87‑43.1 is amended by adding a new subdivision to read:

(12)    To any person when that person is temporarily attaching listed single 3‑prong (NEMA 5‑15R or 5‑20R) receptacles or power taps to existing temporary luminaires or lighting fixtures and plugging those luminaires or fixtures into existing permanent receptacles, only when all of the following apply:

a.         The work is performed solely for a permitted international wholesale trade show in an exhibition hall, mercantile, or assembly occupancy space in this State.

b.         A valid electrical permit is obtained from the local authority having jurisdiction prior to the work.

c.         The work is inspected and approved by the local electrical inspector before the international wholesale trade show opens.

SECTION 11.(b)  This section is effective when it becomes law and applies to permitted events occurring on or after that date.

PLUMBING LICENSE EXEMPTION FOR CERTAIN SEWER LINE CONNECTIONS SERVING MOBILE HOMES

SECTION 11.5.(a)  G.S. 87‑21 is amended by adding a new subsection to read:

(c3)    Exemption. – The provisions of this Article shall not apply to a person who installs or connects a sanitary sewer line serving a manufactured home, as defined in G.S. 143‑143.9(6), if all of the following conditions are met:

(1)        The sewer line is 3 or 4 inches in diameter and does not exceed 10 linear feet in length.

(2)        The sewer line connects the manufactured home to an existing septic tank, an existing building sewer, or another existing wastewater system connection point that has been approved by the local health department or other authority having jurisdiction.

(3)        The work does not include the design, installation, repair, relocation, expansion, replacement, or alteration of the septic tank, drainfield, distribution box, pump tank, or any other component of the wastewater system.

(4)        The work is performed using materials and installation methods that comply with the North Carolina State Building Code, the North Carolina Regulations for Manufactured Homes adopted by the State Fire Marshal, and Article 11 of Chapter 130A of the General Statutes and rules adopted under the authority of that Article.

(5)        The work remains subject to all required permits and inspections, and the sewer line is not covered, backfilled, or otherwise concealed until it has been inspected and approved by the authority having jurisdiction.

SECTION 11.5.(b)  This section is effective when it becomes law and applies to work occurring on or after that date.

IMPLEMENTATION OF CODE CHANGES FOR USE OF CERTAIN INSULATION IN WALLS

SECTION 12.(a)  Definitions. – As used in this section, Code means the current North Carolina State Building Code collection, and amendments to the Code, as adopted by the Council. For purposes of this section and its implementation, R402 Rules means provisions and tables within Section 402, Building Thermal Envelope, North Carolina – Residential Provisions, of the North Carolina Energy Conservation Code. As used in this section, Council means the Building Code Council and the Residential Code Council.

SECTION 12.(b)  R402 Rules Amendment. – Until the effective date of the rules to amend the Code that the Council is required to adopt pursuant to subsection (d) of this section, the Council and local governments enforcing the Code shall follow the provisions of subsection (c) of this section as it relates to the R402 Rules within the North Carolina Energy Conservation Code.

SECTION 12.(c)  Implementation. – Where Table R402.1.2, Insulation and Fenestration Requirements by Component, within the R402 Rules, require wood frame wall R‑values, installing air‑impermeable spray foam insulation as cavity insulation, which meets R‑13 in climate zones 3 and 4, and R‑15 insulation in climate zone 5, without installation of additional continuous insulation, shall be deemed to satisfy the R‑value requirements for the wood frame wall in the appropriate climate zone, provided that the building envelope obtains an ACH50 blower door test result of less than or equal to 3.0.

SECTION 12.(d)  Additional Rulemaking Authority. – The Council shall adopt rules to amend the R402 Rules to be consistent with subsection (c) of this section. Notwithstanding G.S. 150B‑19(4), the rule adopted by the Council pursuant to this section shall be substantively identical to the provisions of subsection (c) of this section. Rules adopted pursuant to this section are not subject to Part 3 of Article 2A of Chapter 150B of the General Statutes. Rules adopted pursuant to this section shall become effective as provided in G.S. 150B‑21.3(b1), as though 10 or more written objections had been received as provided in G.S. 150B‑21.3(b2).

SECTION 12.(e)  Sunset. – This section expires when permanent rules adopted as required by subsection (d) of this section become effective.

AMEND ENERGY RATING INDEX COMPLIANCE ALTERNATIVE

SECTION 12.5.(a)  Definitions. – As used in this section, Code means the current North Carolina State Building Code collection, and amendments to the Code, as adopted by the Council. For purposes of this section and its implementation, R406 Rules means provisions and tables within Section 406, Energy Rating Index Compliance Alternative, North Carolina – Residential Provisions, of the North Carolina Energy Conservation Code. As used in this section, Council means the Building Code Council and the Residential Code Council.

SECTION 12.5.(b)  R406 Rules Amendment. – Until the effective date of the rules to amend the Code that the Council is required to adopt pursuant to subsection (d) of this section, the Council and local governments enforcing the Code shall follow the provisions of subsection (c) of this section as it relates to the R406 Rules within the North Carolina Energy Conservation Code.

SECTION 12.5.(c)  Implementation. – There shall be no requirement that the building thermal envelope meets or exceeds the levels of efficiency and Solar Heat Gain Coefficients in Tables R406.2.1 and R406.2.2, which shall be deleted from the R406 Rules. The minimum standards associated with compliance shall be the ANSI RESNET ICC Standard 301‑2022 Standard for the Calculation and Labeling of the Energy Performance Index of Dwelling and Sleeping Units using an Energy Rating Index.

SECTION 12.5.(d)  Additional Rulemaking Authority. – The Council shall adopt rules to amend the R406 Rules to be consistent with subsection (c) of this section. Notwithstanding G.S. 150B‑19(4), the rule adopted by the Council pursuant to this section shall be substantively identical to the provisions of subsection (c) of this section. Rules adopted pursuant to this section are not subject to Part 3 of Article 2A of Chapter 150B of the General Statutes. Rules adopted pursuant to this section shall become effective as provided in G.S. 150B‑21.3(b1), as though 10 or more written objections had been received as provided in G.S. 150B‑21.3(b2).

SECTION 12.5.(e)  Sunset. – This section expires when permanent rules adopted as required by subsection (d) of this section become effective.

PERMIT CHOICE MODIFICATIONS

SECTION 13.  G.S. 143‑755 reads as rewritten:

§ 143‑755.  Permit choice.

(a)        If a development permit applicant submits a permit application for any type of development and a rule or ordinance is amended, including an amendment to any applicable land development regulation, between the time the development permit application was submitted and a development permit decision is made, the development permit applicant may choose which adopted version of the rule or ordinance will apply to the permit and use of the building, structure, or land indicated on the permit application. application, except as provided in subsection (a1) of this section. If the development permit applicant chooses the version of the rule or ordinance applicable at the time of the permit application, the development permit applicant shall not be required to await the outcome of the amendment to the rule, map, or ordinance prior to acting on the development permit. If an applicable rule or ordinance is amended after the development permit is wrongfully denied or after an illegal condition is imposed, as determined in a proceeding challenging the permit denial or the condition imposed, the development permit applicant may choose which adopted version of the rule or ordinance will apply to the permit and use of the building, structure, or land indicated on the permit application. Provided, however, any provision of the development permit applicant's chosen version of the rule or ordinance that is determined to be illegal for any reason shall not be enforced upon the applicant without the written consent of the applicant.

(a1)      A development permit applicant may not select a version of an erosion and sediment control permit or a stormwater permit that does not comply with federal law.

(b)        This section applies to all development permits issued by the State and by local governments.

(b1)      If a permit application is placed on hold at the request of the applicant for a period of six consecutive months or more, or the applicant fails to respond to comments or provide additional information reasonably requested by the local or State government for a period of six consecutive months or more, the application review is discontinued and the development regulations in effect at the time permit processing is resumed apply to the application.

(c)        Repealed by Session Laws 2015‑246, s. 5(a), effective September 23, 2015.

(d)       Any person aggrieved by the failure of a State agency or local government to comply with this section or G.S. 160D‑108(b) may apply to the appropriate division of the General Court of Justice for an order compelling compliance by the offending agency or local government, and the court may issue that order. Actions brought pursuant to any of these sections shall be set down for immediate hearing, and subsequent proceedings in those actions shall be accorded priority by the trial and appellate courts.

(e)        For purposes of this section, the following definitions apply:

(1)        Development. – Without altering the scope of any regulatory authority granted by statute or local act, any of the following:

a.         The construction, erection, alteration, enlargement, renovation, substantial repair, movement to another site, or demolition of any structure.

b.         Excavation, grading, filling, clearing, or alteration of land.

c.         The subdivision of land as defined in G.S. 160D‑802.

d.         The initiation of substantial change in the use of land or the intensity of the use of land.

(2)        Development permit. – An administrative administrative, legislative, or quasi‑judicial approval that is written and that is required prior to commencing development or undertaking a specific activity, project, or development proposal, including any of the following:

a.         Zoning permits.

b.         Site plan approvals.

c.         Special use permits.

d.         Variances.

e.         Certificates of appropriateness.

f.          Plat approvals.

g.         Development agreements.

h.         Building permits.

i.          Subdivision of land.

j.          State agency permits for development.

k.         Driveway permits.

l.          Erosion and sedimentation control permits.

m.        Sign permit.

n.         Conditional zoning.

o.         Rezoning.

p.         Stormwater permits.

(3)        Land development regulation. – Any State statute, rule, or regulation, or local ordinance affecting the development or use of real property, including any of the following:

a.         Unified development ordinance.

b.         Zoning regulation, including zoning maps.

c.         Subdivision regulation.

d.         Erosion and sedimentation control regulation.

e.         Floodplain or flood damage prevention regulation.

f.          Mountain ridge protection regulation.

g.         Stormwater control regulation.

h.         Wireless telecommunication facility regulation.

i.          Historic preservation or landmark regulation.

j.          Housing code.

k.         Conditional zoning.

l.          Rezoning.

m.        Stormwater permits.

ESTABLISH REVIEW PERIODS FOR LOCAL GOVERNMENT APPROVALS AND DECISIONS

SECTION 14.(a)  G.S. 160D‑403 reads as rewritten:

§ 160D‑403.  Administrative development approvals and determinations.

(a)        Development Approvals. – To the extent consistent with the scope of regulatory development regulation authority granted by this Chapter, no person shall commence or proceed with development without first securing any required development approval from the local government with jurisdiction over the site of the development. A development approval shall be in writing and may contain a provision requiring the development to comply with all applicable State and local laws. A local government may issue development approvals in print or electronic form. Any development approval issued exclusively in electronic form shall be protected from further editing once issued. Applications for development approvals may be made by the landowner, a lessee or person holding an option or contract to purchase or lease land, or an authorized agent of the landowner. An easement holder may also apply for development approval for such the development as is authorized by the easement.

(a1)      Time Period for Approval. – Within seven calendar days of the filing of an application for a development approval, a local government or its designated administrative staff, as described under G.S. 160D‑402, shall (i) determine whether the application is complete and notify the applicant of the application's completeness and, (ii) if the local government or its designated administrative staff determines the application is incomplete, specify all of the deficiencies in the notice to the applicant. The applicant may file an amended application or supplemental information to cure the deficiencies identified by the local government or its designated administrative staff for a completeness review, which shall be completed within seven calendar days after receiving an amended application or supplemental application from the applicant. Upon the date the application is deemed complete, the local government or its designated administrative staff shall issue a receipt letter or electronic response stating that the application is complete. From the date an application has been determined to be complete, the local government or its designated administrative staff shall have 20 days to perform an initial review of the completed application and notify the applicant of any required changes, to which an applicant shall have 15 days to respond. If the applicant makes changes in response to comments arising from the initial review, the local government or its designated administrative staff shall have 10 calendar days to review any changes submitted by the applicant. Upon expiration of that 10‑day secondary review period, a final 90‑calendar day review period shall begin. The local government shall approve or deny the application within 90 calendar days of the date the 10‑day secondary review period expires, except that if the applicant requests a continuance of the application, the review period shall be tolled for the duration of any continuance. The time period for review may be extended only by agreement with the applicant if the application cannot be reviewed within the specified time limitation due to circumstances beyond the control of the local government. The extension shall not exceed six months. Failure of the local government or its designated administrative staff to act before the expiration of the time period allowed for review shall constitute an approval of the application, and the local government shall issue a written approval upon demand by the applicant.

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SECTION 14.(b)  Article 7 of Chapter 160D of the General Statutes is amended by adding a new section to read:

§ 160D‑707.  Review period for rezoning decisions.

Within seven calendar days of the filing of an application for amendment of a zoning map or zoning regulations, a local government or its designated administrative staff, as described under G.S. 160D‑402, shall (i) determine whether the application is complete and notify the applicant of the application's completeness and, (ii) if the local government or its designated administrative staff determines the application is incomplete, specify all of the deficiencies in the notice to the applicant. The applicant may file an amended application or supplemental information to cure the deficiencies identified by the local government or its designated administrative staff for a completeness review, which shall be completed within seven calendar days after receiving an amended application or supplemental application from the applicant. Upon the date the application is deemed complete, the local government or its designated administrative staff shall issue a receipt letter or electronic response stating that the application is complete. From the date an application has been determined to be complete, the local government or its designated administrative staff shall have 20 days to perform an initial review of the completed application and notify the applicant of any required changes, to which an applicant shall have 15 days to respond. If the applicant makes changes in response to comments arising from the initial review, the local government or its designated administrative staff shall have 10 calendar days to review any changes submitted by the applicant. Upon expiration of that 10‑day secondary review period, a final 90‑calendar day review period shall begin. The local government shall approve or deny the application within 90 calendar days of the date the 10‑day secondary review period expires, except that if the applicant requests a continuance of the application, the review period shall be tolled for the duration of any continuance. The time period for review may be extended only by agreement with the applicant if the application cannot be reviewed within the specified time limitation due to circumstances beyond the control of the local government. The extension shall not exceed six months. Failure of the local government or its designated administrative staff to act before the expiration of the time period allowed for review shall constitute an approval of the application, and the local government shall issue a written approval upon demand by the applicant.

SECTION 14.(c)  This section applies only to local governments with a population of 20,000 people or more.

SECTION 14.(d)  This section becomes effective August 1, 2026, and applies to applications, approvals, and actions filed on or after that date.

NUISANCE IMMUNITY FOR RURAL RECREATIONAL AND HERITAGE EVENTS

SECTION 15.(a)  Chapter 99E of the General Statutes is amended by adding a new Article to read:

Article 11.

Rural Recreational and Heritage Event Nuisance Immunity.

§ 99E‑95.  Nuisance immunity for rural recreational and heritage events.

(a)        For purposes of this Article, the following definitions apply:

(1)        Area of the facility. – The area within a 3‑mile radius of the perimeter of the property or a contiguous group of properties where a facility is located.

(2)        Facility. – A designated and established area that is regularly used to host or conduct one or more rural recreational and heritage events. A facility includes the track, course, arena, ring, field, stable, kennel, pen, staging, spectator, and parking areas, and any associated grounds, buildings, structures, or appurtenances used to conduct or support rural recreational and heritage events. A facility does not include real property to the extent it is used only for the personal or private use of the property by the property owner or the owner's family, guests, or invitees, where that use is not part of a rural recreational and heritage event that is conducted on a recurring basis or that is open to participants, spectators, or the members of a club, association, or other organization that owns, operates, or conducts rural recreational and heritage events at the facility.

(3)        Rural recreational and heritage event. – Any of the following when conducted at a facility:

a.         Motorized and off‑road vehicle events, including motocross, dirt‑bike events, all‑terrain vehicle (ATV) and utility task vehicle (UTV) events, go‑kart racing, drag racing, autocross and rallycross, monster truck events, truck pulls, tractor pulls, mud bogging, mud pulls, four‑wheel‑drive and other off‑road events, demolition derbies, lawn mower racing, and similar motorized or off‑road competitions or events.

b.         Horse and farm animal events, including horse shows, rodeos, barrel racing, roping and team roping, horse pulls, mounted shooting, equestrian competitions, livestock shows, farm animal exhibitions, agricultural fair events, and similar animal‑based competitions or exhibitions.

c.         Sporting dog and outdoor heritage events, including field trials, hunt tests, retriever trials, beagle trials, foxhound events, coonhound events, sporting dog training, hunting‑preserve dog events, and similar working or sporting dog events.

(b)        A facility shall not be subject to any action brought by a surrounding property owner under any nuisance or taking cause of action arising from the conduct of a rural recreational and heritage event at the facility if both of the following conditions were met as of the date the surrounding property owner purchased real property located within the area of the facility or, if the surrounding property owner owned that real property before rural recreational and heritage events were first conducted at the facility, as of the date the surrounding property owner first constructed a building on that real property:

(1)        The facility was lawfully established and in compliance with all laws, ordinances, and permitting requirements applicable to the facility at the time of its establishment.

(2)        One or more rural recreational and heritage events have been conducted at the facility within the 24 months preceding the date on which the surrounding property owner purchased the real property or constructed the building.

SECTION 15.(b)  This section is effective when it becomes law and applies to actions commenced on or after that date.

AT‑RISK BUILDING CHANGES

SECTION 16.  G.S. 160D‑1110.1 reads as rewritten:

§ 160D‑1110.1.  Commercial and multifamily building permits for applications with sealed plans; third‑party plan review alternatives; at‑risk building foundation permits; at‑risk building structure permits.

(a)        Applicability. – This section applies to commercial and multifamily development project building permit applications that have plans and specifications that are complete and sealed for construction, as applicable, by a professional engineer licensed under Chapter 89C of the General Statutes or an architect licensed under Chapter 83A of the General Statutes.

…

(h)        At‑Risk Building Permit Options. – At‑risk building permit options are available to an eligible building permit applicant that requested and attended a pre‑submittal meeting in accordance with subsection (b) of this section to discuss a building project prior to permit application. An eligible permit applicant proceeding with an at‑risk permit issued by a local government pursuant to this subsection assumes all risks of liability, and the local government is discharged and released from any liabilities, duties, and responsibilities attributable to the review, approval, or construction pursuant to that at‑risk permit. In accordance with G.S. 160D‑108(e), where multiple local development permits are required to complete a development project, a permit issued by a local government pursuant to this subsection is not an initial development permit for purposes of the vesting protections of G.S. 160D‑108(e). The following at‑risk building permit options are available:

(1)        At‑risk building foundation permit. – At the time of permit application, an eligible building permit applicant may request an at‑risk building foundation permit authorizing a permit applicant to proceed with building foundation construction. construction and any associated trade permit necessary to support the authorized foundation construction. A local government must issue an at‑risk building foundation permit and any associated trade permit necessary for the authorized scope of work if a local government determines a permit applicant has submitted all necessary plans and sufficient information, as discussed at a pre‑submittal meeting pursuant to subsection (b) of this section, and received all approvals necessary, for building foundation construction and associated trade permit work, notwithstanding that other development approvals from the local government, or other State or federal agencies, for the project have not yet been obtained. For the purposes of this subdivision, a permit applicant must have received an approved erosion and sedimentation control plan in accordance with Article 4 of Chapter 113A of the General Statutes for land‑disturbing activity at a building foundation construction site.

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LIMIT RESTRICTIVE COVENANTS ON SCHOOL PROPERTY

SECTION 16.5.(a)  G.S. 115C‑518 is amended by adding a new subsection to read:

(a1)    For real property disposed in accordance with this section, local boards of education shall not impose or enforce a restriction on the future use of the property that prohibits use by a public school unit or nonpublic school. Restrictions include deed restrictions, covenants, or other interests that run with the land. A restriction on the use of disposed property that violates this subsection is against the public policy of this State and is void and unenforceable.

SECTION 16.5.(b)  Any restriction in existence on the effective date of this section that prohibits the use of property disposed in accordance with G.S. 115C‑518 by a public school unit or nonpublic school is void.

SECTION 16.5.(c)  This section is effective when it becomes law. Subsection (a) of this section applies to the disposition of property owned by a local board of education on or after that date.

PROMOTE FEE TRANSPARENCY AND PREDICTABILITY FOR APPLICANTS PRIOR TO LOCAL GOVERNMENT DEVELOPMENT PERMIT APPROVAL OR ISSUANCE

SECTION 17.(a)  G.S. 160D‑102 is amended by adding three new subdivisions to read:

(16a)  Fee estimate. – A statement projecting all fees that may reasonably be assessed in the fee statement for the applicant's project, including assumptions applied to the category or purpose of the fees to be charged.

(16b)    Fee schedule. – A statement of all current fees that may be collected by a local government for the administration and enforcement of provisions set forth in this Chapter and Article 8 of Chapter 162A of the General Statutes and impact fees, facility fees, and other fees authorized by local act, applicable to each project category and purpose, including the data and methodologies used to calculate the fee rates.

(16c)    Fee statement. – An itemized statement of any fees applicable to the applicant's particular project pursuant to this Chapter.

SECTION 17.(b)  Article 4 of Chapter 160D of the General Statutes is amended by adding a new section to read:

§ 160D‑402.1.  Development fee transparency.

(a)        Fee Schedule Publication. – Each local government shall prominently display on the local government's official website the local government's current fee schedules. The local government shall update the website to reflect any changes to fees, rates, or methodologies used to develop fees and rates within 30 days of the adoption of any ordinance amending the fees, rates, or methodologies. Each local government shall submit an annual report of its fee schedule, fee collections, and compliance with this section to the Local Government Commission.

(b)        Local Government Commission Report. – The Local Government Commission shall publish and prominently display on the Commission's website a statewide report of local governments' current fee schedules.

(c)        Required Disclosure. – Each local government shall provide to the applicant prior to a development approval the current fee schedule and a fee estimate. The local government shall deliver information required under this subsection to the applicant within 10 business days after submission of a completed application. If the project materially changes after the local government has delivered the fee estimate, the local government shall provide a revised estimate within 10 business days of receiving the updated project information. The local government shall not require payment of any fees specified in subsection (a) of this section before the local government provides the estimate.

(d)       Final Fee Statement. – Each local government shall provide to the applicant, in writing, a final, binding fee statement of exact fees due when a development approval is issued on the application. The final fee amount may not exceed the most recent estimate provided under subsection (c) of this section, unless the local government adopts a new fee schedule by ordinance.

(e)        Enforcement. – An applicant may commence a civil action in superior court of the county in which the applicant's project is located to compel the local government to comply with the requirements of this section. The court shall allow the prevailing party to recover reasonable attorneys' fees and costs. Nothing in this section shall limit any remedy otherwise available under Article 14 of this Chapter.

SECTION 17.(c)  Nothing in this section shall be construed to limit or otherwise affect the power or authority of a local government to impose fees consistent with its statutory authority or constitutional requirements. This section shall not be construed to require the disclosure of confidential information under G.S. 132‑1.2.

TOLL DISCONTINUANCE PERIOD FOR VESTED RIGHTS DURING EMERGENCY DECLARATIONS

SECTION 18.  G.S. 160D‑108 reads as rewritten:

§ 160D‑108.  Permit choice and vested rights.

…

(d)       Duration of Vesting. – Upon issuance of a development permit, the statutory vesting granted by subsection (c) of this section for a development project is effective upon filing of the application in accordance with G.S. 143‑755, for so long as the permit remains valid pursuant to law. Unless otherwise specified by this section or other statute, local development permits expire one year after issuance unless work authorized by the permit has substantially commenced. A local land development regulation may provide for a longer permit expiration period. For the purposes of this section, a permit is issued either in the ordinary course of business of the applicable governmental agency or by the applicable governmental agency as a court directive.

Except where a longer vesting period is provided by statute or land development regulation, the statutory vesting granted by this section, once established, expires for an uncompleted development project if development work is intentionally and voluntarily discontinued for a period of not less than 24 consecutive months, and the statutory vesting period granted by this section for a nonconforming use of property expires if the use is intentionally and voluntarily discontinued for a period of not less than 24 consecutive months. The 24‑month discontinuance period is automatically tolled during the any of the following:

(1)        The pendency of any board of adjustment proceeding or civil action in a State or federal trial or appellate court regarding the validity of a development permit, the use of the property, or the existence of the statutory vesting period granted by this section.

(2)        The 24‑month discontinuance period is also tolled during the The pendency of any litigation involving the development project or property that is the subject of the vesting.

(3)        The duration of any emergency declaration issued under G.S. 166A‑19.20 or G.S. 166A‑19.22 for which the defined emergency area includes the property, in whole or in part.

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MODIFY EXTENSIONS OF CERTAIN GOVERNMENT APPROVALS AFFECTING THE DEVELOPMENT OF REAL PROPERTY IN THE AREA AFFECTED BY HELENE

SECTION 19.  Section 1D.3.(b) of S.L. 2024‑57, as amended by Section 1.5(a) of S.L. 2025‑97, reads as rewritten:

SECTION 1D.3.(b)  For any development approval:

(1)        That is current and valid at any point during the period beginning January 1, 2024, and ending December 31, 2027, the running of the period of the development approval and any associated vested right under G.S. 160D‑108 or G.S. 160D‑108.1 is suspended within the affected area during the period beginning January 1, 2024, and ending December 31, 2027.2030.

(2)        That was current and valid on September 25, 2024, the expiration date shall be automatically extended for a period of 12 months beyond the date on which the approval would otherwise expire pursuant to the suspension of the running of time under subdivision (1) of this subsection.

Notwithstanding the extensions granted by this section, a local government may revoke or modify a development approval automatically extended under this section if, due to changed site conditions resulting from Hurricane Helene or subsequent related natural disasters, the local government determines that it would not issue the permit under current site conditions based on a determination that the site no longer meets applicable State or federal safety, environmental, or engineering standards, or that the extension of the approval would present a material risk to life, health, or property. A local government exercising authority to revoke or modify a development approval automatically extended under this subsection shall provide written notice to the holder of the development approval of the revocation or modification, including findings of fact to support a determination that the site no longer meets applicable State or federal safety, environmental, or engineering standards, or that the extension of the approval would present a material risk to life, health, or property. The extensions granted by this subsection shall run concurrently with, and not in addition to, any other extension of the same development approval provided by State law or local ordinance.

STATUTORY SAFEGUARDS FOR HOA GOVERNANCE

SECTION 20.(a)  G.S. 47C‑3‑102(a) reads as rewritten:

§ 47C‑3‑102.  Powers of unit owners' association.

(a)        Unless the declaration expressly provides to the contrary, the association, even if unincorporated, may do all of the following:

…

(12b)    Impose a reasonable charge for providing copies of records requested by a member, not to exceed the actual cost of photocopying the records, including the cost of materials used in responding to the request and the cost of shipping if shipping is required.

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(14a)    Exercise any authority granted to it under the declaration to approve or disapprove any proposed changes to a unit or limited common element. In exercising such authority, the association shall provide a fair, reasonable, and expeditious procedure for making its decision, which procedure shall be set forth in the association's governing documents. The procedures shall state the maximum time for issuance of any decision on a proposal or a request for reconsideration. An association may adopt formal submission requirements for any proposed change, which shall be communicated to the members. A decision shall be made within 90 days after the initial submission of the proposal or submission of any additional information or changes to the proposal requested by the association in response to the initial submission. A decision shall be in writing, shall be made in good faith, and may not be unreasonable, arbitrary, or capricious. If the proposal is disapproved, the decision shall include an explanation of why the proposal is disapproved and, if the determination was not issued by the executive board, a description of the procedure for reconsideration of the decision by the executive board.

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SECTION 20.(b)  G.S. 47F‑3‑102 reads as rewritten:

§ 47F‑3‑102.  Powers of owners' association.

Unless the articles of incorporation or the declaration expressly provides to the contrary, the association may do all of the following:

…

(13b)    Impose a reasonable charge for providing copies of records requested by a member, not to exceed the actual cost of photocopying the records, including the cost of materials used in responding to the request and the cost of shipping if shipping is required.

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(15a)    Exercise any authority granted to it under the declaration to approve or disapprove any proposed changes on a lot or limited common element. In exercising such authority, the association shall provide a fair, reasonable, and expeditious procedure for making its decision, which procedure shall be set forth in the association's governing documents. The procedures shall state the maximum time for issuance of any decision on a proposal or a request for reconsideration. An association may adopt formal submission requirements for any proposed change, which shall be communicated to the members. A decision shall be made within 90 days after the initial submission of the proposal or submission of any additional information or changes to the proposal requested by the association in response to the initial submission. A decision shall be in writing, shall be made in good faith, and may not be unreasonable, arbitrary, or capricious. If the proposal is disapproved, the decision shall include an explanation of why the proposal is disapproved and, if the determination was not issued by the executive board, a description of the procedure for reconsideration of the decision by the executive board.

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SECTION 20.1.(a)  G.S. 47C‑3‑107.1 reads as rewritten:

§ 47C‑3‑107.1.  Procedures for fines and suspension of condominium privileges or services.

Unless a specific procedure for the imposition of fines or suspension of condominium privileges or services is provided for in the declaration, a hearing shall be held before the executive board or an adjudicatory panel appointed by the executive board to determine if any unit owner should be fined or if condominium privileges or services should be suspended pursuant to the powers granted to the association in G.S. 47C‑3‑102(11). Any adjudicatory panel appointed by the executive board shall be composed of members of the association who are not officers of the association or members of the executive board. The unit owner charged shall be given notice of the charge, opportunity to be heard and to present evidence, and notice of the decision. A written notice of hearing shall be sent to the unit owner in the manner provided in G.S. 47C‑3‑116(e) not less than 10 days prior to the scheduled hearing date. The notice of hearing shall specify the date, time, and place of the hearing and shall include a general description of each alleged violation and the action, if any, required to cure each alleged violation. Not less than two days prior to the scheduled hearing date, the executive board or adjudicatory panel shall provide the unit owner with the names of any persons whose testimony it intends to offer in support of the charge and a copy of any documents, photographs, or other exhibits that it intends to submit in support of the charge. The unit owner shall be given an opportunity to be heard and to present evidence at the hearing. A written notice of the decision specifying each violation verified by the evidence and the action, if any, required to cure each verified violation shall be sent to the unit owner in the manner provided in G.S. 47C‑3‑116(e). If it is decided that a fine should be imposed, a fine not to exceed one hundred dollars ($100.00) may be imposed for the violation and without further hearing, for each day more than five days after the decision that the violation occurs. occurs, up to a maximum fine of two thousand five hundred dollars ($2,500). Such fines shall be assessments secured by liens under G.S. 47C‑3‑116. If it is decided that a suspension of condominium privileges or services should be imposed, the suspension may be continued without further hearing until the violation or delinquency is cured. A unit owner may appeal a decision of an adjudicatory panel to the full executive board by delivering written notice of appeal to the executive board within 15 days after the date of the decision. The executive board may affirm, vacate, or modify the prior decision of the adjudicatory body.

SECTION 20.1.(b)  G.S. 47F‑3‑107.1 reads as rewritten:

§ 47F‑3‑107.1.  Procedures for fines and suspension of planned community privileges or services.

Unless a specific procedure for the imposition of fines or suspension of planned community privileges or services is provided for in the declaration, a hearing shall be held before the executive board or an adjudicatory panel appointed by the executive board to determine if any lot owner should be fined or if planned community privileges or services should be suspended pursuant to the powers granted to the association in G.S. 47F‑3‑102(11) and (12). Any adjudicatory panel appointed by the executive board shall be composed of members of the association who are not officers of the association or members of the executive board. The lot owner charged shall be given notice of the charge, opportunity to be heard and to present evidence, and notice of the decision. A written notice of hearing shall be sent to the lot owner in the manner provided in G.S. 47F‑3‑116(e) not less than 10 days prior to the scheduled hearing date. The notice of hearing shall specify the date, time, and place of the hearing and shall include a general description of each alleged violation and the action, if any, required to cure each alleged violation. Not less than two days prior to the scheduled hearing date, the executive board or adjudicatory panel shall provide the lot owner with the names of any persons whose testimony it intends to offer in support of the charge and a copy of any documents, photographs, or other exhibits that it intends to submit in support of the charge. The lot owner shall be given an opportunity to be heard and to present evidence at the hearing. A written notice of the decision specifying each violation verified by the evidence and the action, if any, required to cure each verified violation shall be sent to the lot owner in the manner provided in G.S. 47F‑3‑116(e). If it is decided that a fine should be imposed, a fine not to exceed one hundred dollars ($100.00) may be imposed for the violation and without further hearing, for each day more than five days after the decision that the violation occurs. occurs, up to a maximum fine of two thousand five hundred dollars ($2,500). Such fines shall be assessments secured by liens under G.S. 47F‑3‑116. If it is decided that a suspension of planned community privileges or services should be imposed, the suspension may be continued without further hearing until the violation or delinquency is cured. The lot owner may appeal the decision of an adjudicatory panel to the full executive board by delivering written notice of appeal to the executive board within 15 days after the date of the decision. The executive board may affirm, vacate, or modify the prior decision of the adjudicatory body.

SECTION 20.2.(a)  G.S. 47C‑3‑116 reads as rewritten:

§ 47C‑3‑116.  Lien for sums due the association; enforcement.

(a)        Any assessment  attributable to a unit which remains unpaid for a period of 30 days or longer shall constitute a lien on that unit when a claim of lien is filed of record in the office of the clerk of superior court of the county in which the unit is located in the manner provided in this section. A claim of lien securing a debt consisting of fines or fine‑related charges shall be filed separately from a claim of lien securing other sums owed to the association and shall be filed within 90 days after the date the fine was imposed. As used in this section, fines or fine‑related charges means fines imposed by the association, interest on unpaid fines, or attorneys' fees incurred by the association related to fines imposed by the association. Once filed, a claim of lien secures all sums due the association through the date filed and any sums due to the association thereafter. Unless the declaration provides otherwise, fees, charges, late charges and other charges imposed pursuant to G.S. 47C‑3‑102, 47C‑3‑107, 47C‑3‑107.1, and 47C‑3‑115 are subject to the claim claims of lien provided for under this section as well as any other sums due and payable to the association under the declaration, the provisions of this Chapter, or as the result of an arbitration, mediation, or judicial decision.

(b)        The association must provide proper notice of delinquent assessments to the unit owner before filing a claim of lien. The association must make reasonable and diligent efforts ensure that its records contain the unit owner's current physical mailing address. address and current electronic mailing address. No fewer than 15 days prior to filing the lien, the association shall mail do all of the following:

(1)        Mail a statement of the assessment amount due by first class mail to the physical address of the unit and the unit owner's address of record with the association and, if different, to the address for the unit owner shown on the county tax records for the unit. If the unit owner is a corporation or limited liability company, the statement shall also be sent by first class mail to the mailing address of the registered agent for the corporation or limited liability company. Notwithstanding anything to the contrary in this Chapter, the association is not required to mail a statement to an address known to be a vacant unit or to a unit for which there is no United States postal address.

(2)        Send a statement of the assessment amount due via electronic mail if the owner has designated an email address as provided in G.S. 55A‑1‑70(b).

(c)        A claim of lien shall set forth the name and address of the association, the name of the record owner of the unit at the time the claim of lien is filed, a description of the unit, and the amount of the lien claimed. A claim of lien may also appoint a trustee to conduct a foreclosure as provided in subsection (f) of this section. The first page of the claim of lien shall contain the following statement in print that is in boldface, capital letters, and no smaller than the largest print used elsewhere in the document:

THIS DOCUMENT CONSTITUTES A LIEN AGAINST YOUR PROPERTY, AND IF THE LIEN IS NOT PAID, THE HOMEOWNERS ASSOCIATION MAY PROCEED WITH FORECLOSURE ENFORCEMENT AGAINST YOU AND YOUR PROPERTY IN LIKE MANNER AS A MORTGAGE AS PERMITTED UNDER NORTH CAROLINA LAW.

The person signing the claim of lien on behalf of the association shall attach to and file with the claim of lien a certificate of service attesting to the attempt of service on the record owner, which service shall be attempted in accordance with G.S. 1A‑1, Rule 4(j), for service of a copy of a summons and a complaint. If the actual service is not achieved, the person signing the claim of lien on behalf of the association shall be deemed to have met the requirements of this subsection if service has been attempted pursuant to both of the following: (i) G.S. 1A‑1, Rule 4(j)(1)c, d, or e and (ii) by mailing a copy of the lien by regular, first class mail, postage prepaid to the physical address of the unit and the unit owner's address of record with the association, and, if different, to the address for the unit owner shown on the county tax records and the county real property records for the unit. The association shall also send the owner a copy of the claim of lien and certificate of service by email if the owner has designated an email address as provided in G.S. 55A‑1‑70(b). In the event that the owner of record is not a natural person, and actual service is not achieved, the person signing the claim of lien on behalf of the association shall be deemed to have met the requirements of this subsection if service has been attempted once pursuant to the applicable provisions of G.S. 1A‑1, Rule 4(j)(3) through G.S. 1A‑1, Rule 4(j)(9). Notwithstanding anything to the contrary in this Chapter, the association is not required to mail a claim of lien to an address which is known to be a vacant unit or to a unit for which there is no United States postal address. A lien for unpaid assessments is extinguished unless proceedings to enforce the lien are instituted within three years after the filing of the claim of lien in the office of the clerk of superior court. A lien securing a debt consisting of fines or fine‑related charges is extinguished unless proceedings to enforce the lien are instituted within one year after the filing of the claim of lien in the office of the clerk of superior court.

(d)       A claim of lien filed under this section is prior to all liens and encumbrances on a unit except (i) liens and encumbrances, specifically including, but not limited to, a mortgage or deed of trust on the unit, recorded before the filing of the claim of lien in the office of the clerk of superior court and (ii) liens for real estate taxes and other governmental assessments and charges against the unit. This subsection does not affect the priority of mechanics' or materialmen's liens.

(e)        The association shall be entitled to recover the court may, in the court's discretion, allow the association to recover the reasonable attorneys' fees and costs it the association incurs in connection with the collection of any sums due. A unit owner may not be required to pay attorneys' fees and court costs until the unit owner is notified in writing of the association's intent to seek payment of attorneys' fees, costs, and expenses. The notice must be sent by first‑class mail to the physical address of the unit and the unit owner's address of record with the association and, if different, to the address for the unit owner shown on the county tax records for the unit. The association must make reasonable and diligent efforts to ensure that its records contain the unit owner's current mailing address. Notwithstanding anything to the contrary in this Chapter, there shall be no requirement that notice under this subsection be mailed to an address which is known to be a vacant unit or a unit for which there is no United States postal address. The notice shall set out the outstanding balance due as of the date of the notice and state that the unit owner has 15 days from the mailing of the notice by first‑class mail to pay the outstanding balance without the attorneys' fees and court costs. If the unit owner pays the outstanding balance within this period, then the unit owner shall have no obligation to pay attorneys' fees, costs, or expenses. The notice shall also inform the unit owner of the opportunity to contact a representative of the association to discuss a payment schedule for the outstanding balance as provided in subsection (i) of this section and shall provide the name and telephone number of the representative.

(f)        Except as provided in subsection (h) of this section, the association, acting through the executive board, may foreclose a claim of lien securing a debt consisting of sums due the association other than fines or fine‑related charges in like manner as a mortgage or deed of trust on real estate under power of sale, as provided in Article 2A of Chapter 45 of the General Statutes, if the assessment remains unpaid delinquency has continued for 90 180 days or more. The association shall not foreclose the claim of lien unless the executive board votes to commence the proceeding against the specific unit. The following provisions and procedures shall be applicable to and complied with in every nonjudicial power of sale foreclosure of a claim of lien, and these provisions and procedures shall control to the extent they are inconsistent or in conflict with the provisions of Article 2A of Chapter 45 of the General Statutes:

…

(5)        After the association has filed a claim of lien and prior to the commencement of a nonjudicial foreclosure, the association shall give to the unit owner notice of the association's intention to commence a nonjudicial foreclosure to enforce its claim of lien. The notice shall contain the information required in G.S. 45‑21.16(c)(5a).G.S. 45‑21.16(c)(5) and G.S. 45‑21.16(c)(5a) and shall specifically reference the unit owner's right of redemption provided under subdivision (8) of this subsection. The notice shall be sent by first‑class mail to the physical address of the unit and the unit owner's address of record with the association and, if different, to the address for the unit owner shown on the county tax records for the unit.

(5a)      The notice of hearing required pursuant to G.S. 45‑21.16(a) shall be accompanied by the association's certification of the actions it has taken to give the owner notice of delinquent assessments in compliance with subsection (b) of this section.

(5b)      At the commencement of the hearing, the clerk shall inquire as to whether the owner occupies the unit as his or her principal residence. If it appears that the owner does currently occupy the unit as a principal residence, the clerk shall further inquire as to the efforts the association has made to communicate with the owner and to attempt to resolve the matter voluntarily before the foreclosure proceeding. The clerk's inquiry shall not be required if the association has submitted, at or before the hearing, an affidavit briefly describing any efforts that have been made to resolve the default with the owner and the results of any such efforts.

(5c)      The clerk shall order the hearing continued if the clerk finds that there is good cause to believe that additional time or additional efforts have a reasonable likelihood of resolving the delinquency without foreclosure. In determining whether to continue the hearing, the clerk may consider (i) whether the association has offered the debtor an opportunity to resolve the foreclosure under a payment schedule pursuant to subsection (i) of this section, (ii) whether the association has engaged in actual responsive communication with the owner, including telephone conferences or in‑person meetings with the owner or other actual two‑party communications, (iii) whether the owner has indicated that he or she has the intent and ability to resolve the delinquency by making future payments under a payment plan, and (iv) whether the initiation or continuance of good‑faith voluntary resolution efforts between the parties may resolve the matter without a foreclosure sale. Where good cause exists to continue the hearing, the clerk shall order the hearing continued to a date and time certain not more than 90 days from the date scheduled for the original hearing. Nothing in this subsection shall limit the authority of the clerk to continue a hearing for other good cause shown.

…

(g)        The provisions of subsection (f) of this section do not prohibit or prevent an association from pursuing judicial foreclosure of a claim of lien, lien securing a debt consisting of sums due the association other than fines and fine‑related charges, from taking other actions to recover the sums due the association, or from accepting a deed in lieu of foreclosure. Any judgment, decree, or order in any judicial foreclosure or civil action relating to the collection of assessments shall include an award of costs and reasonable attorneys' fees for the prevailing party, which shall not be subject to the limitation provided in subdivision (f)(12) of this section.

(h)        A claim of lien securing a debt consisting solely of fines imposed by the association, interest on unpaid fines, or attorneys' fees incurred by the association solely associated with fines imposed by the association or fine‑related charges may only be enforced by judicial foreclosure, as provided in Article 29A of Chapter 1 of the General Statutes. the filing of a civil action seeking a judgment. In addition, an association shall not levy, charge, or attempt to collect a service, collection, consulting, or administration fee from any unit owner unless the fee is expressly allowed in the declaration, and any claim of lien securing a debt consisting solely of these fees may only be enforced by judicial foreclosure, as provided in Article 29A of Chapter 1 of the General Statutes.the filing of a civil action seeking a judgment. Liens arising as a result of the entry of a judgment in favor of the association in any such civil action shall relate back and be effective as of the date the claim of lien was filed.

….

SECTION 20.2.(b)  G.S. 47F‑3‑116 reads as rewritten:

§ 47F‑3‑116.  Lien for sums due the association; enforcement.

(a)        Any assessment attributable to a lot which remains unpaid for a period of 30 days or longer shall constitute a lien on that lot when a claim of lien is filed of record in the office of the clerk of superior court of the county in which the lot is located in the manner provided in this section. A claim of lien securing a debt consisting of fines or fine‑related charges shall be filed separately from a claim of lien securing other sums due the association and shall be filed within 90 days after the date the fine was imposed. As used in this section, fines or fine‑related charges means fines imposed by the association, interest on unpaid fines, or attorneys' fees incurred by the association related to fines imposed by the association. Once filed, a claim of lien secures all sums due the association through the date filed and any sums due to the association thereafter. Unless the declaration provides otherwise, fees, charges, late charges, and other charges imposed pursuant to G.S. 47F‑3‑102, 47F‑3‑107, 47F‑3‑107.1, and 47F‑3‑115 are subject to the claim claims of lien provided for under this section as well as any other sums due and payable to the association under the declaration, the provisions of this Chapter, or as the result of an arbitration, mediation, or judicial decision.

(b)        The association must provide proper notice of delinquent assessments to the lot owner before filing a claim of lien. The association must make reasonable and diligent efforts to ensure that its records contain the lot owner's current physical mailing address. address and current electronic mailing address. No fewer than 15 days prior to filing the lien, the association shall mail do all of the following:

(1)        Mail a statement of the assessment amount due by first‑class mail to the physical address of the lot and the lot owner's address of record with the association and, if different, to the address for the lot owner shown on the county tax records for the lot. If the lot owner is a corporation or limited liability company, the statement shall also be sent by first‑class mail to the mailing address of the registered agent for the corporation or limited liability company. Notwithstanding anything to the contrary in this Chapter, the association is not required to mail a statement to an address known to be a vacant lot on which no dwelling has been constructed or to a lot for which there is no United States postal address.

(2)        Send a statement of the assessment amount due via electronic mail if the owner has designated an email address as provided in G.S. 55A‑1‑70(b).

(c)        A claim of lien shall set forth the name and address of the association, the name of the record owner of the lot at the time the claim of lien is filed, a description of the lot, and the amount of the lien claimed. A claim of lien may also appoint a trustee to conduct a foreclosure, as provided in subsection (f) of this section. The first page of the claim of lien shall contain the following statement in print that is in boldface, capital letters, and no smaller than the largest print used elsewhere in the document:

THIS DOCUMENT CONSTITUTES A LIEN AGAINST YOUR PROPERTY, AND IF THE LIEN IS NOT PAID, THE HOMEOWNERS ASSOCIATION MAY PROCEED WITH FORECLOSURE ENFORCEMENT AGAINST YOU AND YOUR PROPERTY IN LIKE MANNER AS A MORTGAGE AS PERMITTED UNDER NORTH CAROLINA LAW.

The person signing the claim of lien on behalf of the association shall attach to and file with the claim of lien a certificate of service attesting to the attempt of service on the record owner, which service shall be attempted in accordance with G.S. 1A‑1, Rule 4(j), for service of a copy of a summons and a complaint. If the actual service is not achieved, the person signing the claim of lien on behalf of the association shall be deemed to have met the requirements of this subsection if service has been attempted pursuant to both of the following: (i) G.S. 1A‑1, Rule 4(j)(1)c, d, or e and (ii) by mailing a copy of the lien by regular, first‑class mail, postage prepaid to the physical address of the lot and the lot owner's address of record with the association, and, if different, to the address for the lot owner shown on the county tax records and the county real property records for the lot. The association shall also send the owner a copy of the claim of lien and certificate of service by email if the owner has designated an email address as provided in G.S. 55A‑1‑70(b). In the event that the owner of record is not a natural person, and actual service is not achieved, the person signing the claim of lien on behalf of the association shall be deemed to have met the requirements of this subsection if service has been attempted once pursuant to the applicable provisions of G.S. 1A‑1, Rule 4(j)(3) through G.S. 1A‑1, Rule 4(j)(9). Notwithstanding anything to the contrary in this Chapter, the association is not required to mail a claim of lien to an address which is known to be a vacant lot on which no dwelling has been constructed or to a lot for which there is no United States postal address. A lien for unpaid assessments is extinguished unless proceedings to enforce the lien are instituted within three years after the filing of the claim of lien in the office of the clerk of superior court. A lien securing a debt consisting of fines or fine‑related charges is extinguished unless proceedings to enforce the lien are instituted within one year after the filing of the claim of lien in the office of the clerk of superior court.

(d)       A claim of lien filed under this section is prior to all liens and encumbrances on a lot except (i) liens and encumbrances, specifically including, but not limited to, a mortgage or deed of trust on the lot, recorded before the filing of the claim of lien in the office of the clerk of superior court and (ii) liens for real estate taxes and other governmental assessments and charges against the lot. This subsection does not affect the priority of mechanics' or materialmen's liens.

(e)        The association shall be entitled to recover the court may, in the court's discretion, allow the association to recover the reasonable attorneys' fees and costs it the association incurs in connection with the collection of any sums due. A lot owner may not be required to pay attorneys' fees and court costs until the lot owner is notified in writing of the association's intent to seek payment of attorneys' fees, costs, and expenses. The notice must be sent by first‑class mail to the physical address of the lot and the lot owner's address of record with the association and, if different, to the address for the lot owner shown on the county tax records for the lot. The association must make reasonable and diligent efforts to ensure that its records contain the lot owner's current mailing address. Notwithstanding anything to the contrary in this Chapter, there shall be no requirement that notice under this subsection be mailed to an address which is known to be a vacant lot on which no dwelling has been constructed or a lot for which there is no United States postal address. The notice shall set out the outstanding balance due as of the date of the notice and state that the lot owner has 15 days from the mailing of the notice by first‑class mail to pay the outstanding balance without the attorneys' fees and court costs. If the lot owner pays the outstanding balance within this period, then the lot owner shall have no obligation to pay attorneys' fees, costs, or expenses. The notice shall also inform the lot owner of the opportunity to contact a representative of the association to discuss a payment schedule for the outstanding balance, as provided in subsection (i) of this section, and shall provide the name and telephone number of the representative.

(f)        Except as provided in subsection (h) of this section, the association, acting through the executive board, may foreclose a claim of lien securing a debt consisting of sums due the association other than fines or fine‑related charges in like manner as a mortgage or deed of trust on real estate under power of sale, as provided in Article 2A of Chapter 45 of the General Statutes, if the assessment remains unpaid delinquency has continued for 90 180 days or more. The association shall not foreclose the claim of lien unless the executive board votes to commence the proceeding against the specific lot.

The following provisions and procedures shall be applicable to and complied with in every nonjudicial power of sale foreclosure of a claim of lien, and these provisions and procedures shall control to the extent they are inconsistent or in conflict with the provisions of Article 2A of Chapter 45 of the General Statutes:

…

(5)        After the association has filed a claim of lien and prior to the commencement of a nonjudicial foreclosure, the association shall give to the lot owner notice of the association's intention to commence a nonjudicial foreclosure to enforce its claim of lien. The notice shall contain the information required in G.S. 45‑21.16(c)(5a).G.S. 45‑21.16(c)(5) and G.S. 45‑21.16(c)(5a) and shall specifically reference the lot owner's right of redemption provided under subdivision (8) of this subsection. The notice shall be sent by first‑class mail to the physical address of the lot and the lot owner's address of record with the association and, if different, to the address for the lot owner shown on the county tax records for the lot.

(5a)      The notice of hearing required pursuant to G.S. 45‑21.16(a) shall be accompanied by the association's certification of the actions it has taken to give the owner notice of delinquent assessments in compliance with subsection (b) of this section.

(5b)      At the commencement of the hearing, the clerk shall inquire as to whether the owner occupies the lot as his or her principal residence. If it appears that the owner does currently occupy the lot as a principal residence, the clerk shall further inquire as to the efforts the association has made to communicate with the owner and to attempt to resolve the matter voluntarily before the foreclosure proceeding. The clerk's inquiry shall not be required if the association has submitted, at or before the hearing, an affidavit briefly describing any efforts that have been made to resolve the default with the owner and the results of any such efforts.

(5c)      The clerk shall order the hearing continued if the clerk finds that there is good cause to believe that additional time or additional efforts have a reasonable likelihood of resolving the delinquency without foreclosure. In determining whether to continue the hearing, the clerk may consider (i) whether the association has offered the owner an opportunity to resolve the foreclosure under a payment schedule pursuant to subsection (i) of this section, (ii) whether the association has engaged in actual responsive communication with the owner, including telephone conferences or in‑person meetings with the owner or other actual two‑party communications, (iii) whether the owner has indicated that he or she has the intent and ability to resolve the delinquency by making future payments under a payment plan, and (iv) whether the initiation or continuance of good‑faith voluntary resolution efforts between the parties may resolve the matter without a foreclosure sale. Where good cause exists to continue the hearing, the clerk shall order the hearing continued to a date and time certain not more than 90 days from the date scheduled for the original hearing. Nothing in this subsection shall limit the authority of the clerk to continue a hearing for other good cause shown.

…

(g)        The provisions of subsection (f) of this section do not prohibit or prevent an association from pursuing judicial foreclosure of a claim of lien, lien securing a debt consisting of sums due the association other than fines and fine‑related charges, from taking other actions to recover the sums due the association, or from accepting a deed in lieu of foreclosure. Any judgment, decree, or order in any judicial foreclosure or civil action relating to the collection of assessments shall include an award of costs and reasonable attorneys' fees for the prevailing party, which shall not be subject to the limitation provided in subdivision (f)(12) of this section.

(h)        A claim of lien securing a debt consisting solely of fines imposed by the association, interest on unpaid fines, or attorneys' fees incurred by the association solely associated with fines imposed by the association or fine‑related charges may only be enforced by judicial foreclosure, as provided in Article 29A of Chapter 1 of the General Statutes. the filing of a civil action seeking a judgment. In addition, an association shall not levy, charge, or attempt to collect a service, collection, consulting, or administration fee from any lot owner unless the fee is expressly allowed in the declaration, and any claim of lien securing a debt consisting solely of these fees may only be enforced by judicial foreclosure, as provided in Article 29A of Chapter 1 of the General Statutes.the filing of a civil action seeking a judgment. Liens arising as a result of the entry of a judgment in favor of the association in any such civil action shall relate back and be effective as of the date the claim of lien was filed. If, prior to any hearing held pursuant to a civil action filed under this subsection, the lot owner satisfies the debt giving rise to the civil action, the association shall dismiss the civil action and cancel the claim of lien. The lot owner shall have all rights granted under Article 4 of Chapter 45 of the General Statutes to ensure the association's satisfaction of the claim of lien, and the association shall not be entitled to the collection or award of any attorneys' fees or court costs related to the dismissed civil action or cancelled claim of lien.

….

SECTION 20.2.(c)  This section becomes effective December 1, 2026, and applies to claims of lien filed and instruments presented for registration on or after that date.

SECTION 20.3.(a)  G.S. 47C‑3‑118 reads as rewritten:

§ 47C‑3‑118.  Association records.records and contracts.

…

(a1)      A unit owner or the unit owner's authorized agent is entitled to inspect and copy, at a reasonable time and location specified by the association, any contract entered into by the association if the unit owner gives the association written notice of the demand at least five business days before the date on which the unit owner wishes to inspect and copy and the request satisfies the conditions for inspection set forth in G.S. 55A‑16‑02(c). A demand to inspect made pursuant to this subsection shall be presumed to have been made in good faith and for a proper purpose. In any action to compel the inspection and copying of documents, the court may award reasonable attorneys' fees to the prevailing party. If the association does not allow a unit owner who complies with this subsection to inspect and copy the requested contract, and if a court of competent jurisdiction thereafter enters an order compelling the association to do so, the court shall also order the association to pay the unit owner's costs, including reasonable attorneys' fees, incurred to obtain the order.

(b)        The association, upon written request, shall furnish a unit owner or the unit owner's authorized agents a statement setting forth the amount of unpaid assessments and other charges against a unit. The statement shall be furnished within 10 business days after receipt of the request and is binding on the association, the executive board, and every unit owner. The association, its managers, or its agents may charge a reasonable fee for providing statements of unpaid assessments and other charges, not to exceed two hundred dollars ($200.00) per statement or request, and an additional expedite expedited fee in an amount not to exceed one hundred dollars ($100.00) if the request is made within 48 hours of closing.item is requested to be furnished less than 10 days after receipt of the request.

….

SECTION 20.3.(b)  G.S. 47F‑3‑118 reads as rewritten:

§ 47F‑3‑118.  Association records.records and contracts.

…

(a1)      A lot owner or the lot owner's authorized agent is entitled to inspect and copy, at a reasonable time and location specified by the association, any contract entered into by the association if the lot owner gives the association written notice of the demand at least five business days before the date on which the lot owner wishes to inspect and copy and the request satisfies the conditions for inspection set forth in G.S. 55A‑16‑02(c). A demand to inspect made pursuant to this subsection shall be presumed to have been made in good faith and for a proper purpose. In any action to compel the inspection and copying of documents, the court may award reasonable attorneys' fees to the prevailing party. If the association does not allow a lot owner who complies with this subsection to inspect and copy the requested contract, and if a court of competent jurisdiction thereafter enters an order compelling the association to do so, the court shall also order the association to pay the lot owner's costs, including reasonable attorneys' fees, incurred to obtain the order.

(b)        The association, upon written request, shall furnish to a lot owner or the lot owner's authorized agents a statement setting forth the amount of unpaid assessments and other charges against a lot. The statement shall be furnished within 10 business days after receipt of the request and is binding on the association, the executive board, and every lot owner. The association, its managers, or its agents may charge a reasonable fee for providing statements of unpaid assessments, not to exceed two hundred dollars ($200.00) per statement or request, and an additional expedite expedited fee in an amount not exceeding one hundred dollars ($100.00) if the request for a statement is made within 48 hours of closing.item is requested to be furnished less than 10 days after receipt of the request.

….

EXEMPT CERTAIN INDIVIDUALS FROM BARBER AND COSMETIC ARTS LICENSING

SECTION 20.5.(a)  G.S. 86B‑32 reads as rewritten:

§ 86B‑32.  Persons exempt from the provisions of this Article.

The following persons are exempt from the provisions of this Article while engaged in the proper discharge of their duties:

(1)        Persons authorized under the laws of the State to practice medicine and surgery, and those working under their supervision.

(2)        Commissioned medical or surgical officers of the United States Army or other components of the Armed Forces of the United States, and those working under their supervision.

(3)        Registered nurses and licensed practical nurses and those working under their supervision.

(4)        Licensed embalmers and funeral directors and those working under their supervision.

(5)        Persons who are working in licensed cosmetic shops or beauty schools and are licensed by the State Board of Cosmetic Art Examiners pursuant to Chapter 88B of the General Statutes.

(6)        Persons who are working in barbershops and are licensed by the State Board of Cosmetic Art Examiners pursuant to Chapter 88B of the General Statutes, provided that those persons shall comply with G.S. 86B‑31.

(7)        Inmates under the jurisdiction of the North Carolina Department of Adult Correction.

(8)        Persons who are employed by barbershops and whose duties are expressly confined to the shampooing or blow drying of hair, provided that the person shall comply with G.S. 86B‑31.

SECTION 20.5.(b)  G.S. 88B‑25 reads as rewritten:

§ 88B‑25.  Exemptions.

The following persons are exempt from the provisions of this Chapter while engaged in the proper discharge of their professional duties:

(1)        Undertakers and funeral establishments licensed under G.S. 90‑210.25.

(2)        Persons authorized to practice medicine or surgery under Chapter 90 of the General Statutes.

(3)        Nurses licensed under Chapter 90 of the General Statutes.

(4)        Commissioned medical or surgical officers of the United States Army, Air Force, Navy, Marine Corps, Space Force, or Coast Guard.

(5)        A person employed in a cosmetic art shop whose duties are expressly confined to the shampooing or blow drying of hair, provided that the person shall comply with rules adopted by the Board relating to sanitary management of cosmetic art shops.G.S. 86B‑31.

ALLOW PRIVATE SWIM LESSONS IN PRIVATE POOLS

SECTION 21.(a)  G.S. 130A‑280 reads as rewritten:

§ 130A‑280.  Scope and definitions.

(a)        This Part provides for the regulation of public swimming pools in the State as they may affect the public health and safety. This Part does not apply to any of the following:

(1)        A private pool serving a single family dwelling and used only by the residents of the dwelling and their guests, dwelling, their guests, or a person providing swim instruction, regardless of whether their guests or the swim instructor gain use of the private pool through a sharing economy platform or pay a fee for its use. In all cases in which a fee is exchanged for access to a private pool serving a single family dwelling that is used only by the residents of the dwelling and their guests, dwelling, their guests, or a person providing swim instruction, the private pool shall be maintained in good and safe working order.

(2)        Repealed by Session Laws 2025‑94, s. 17, effective October 6, 2025.

(3)        Therapeutic pools used in physical therapy programs operated by medical facilities licensed by the Department or operated by a licensed physical therapist, nor to therapeutic chambers drained, cleaned, and refilled after each individual use.

….

SECTION 21.(b)  G.S. 130A‑39(b) reads as rewritten:

(b)      A local board of health may adopt a more stringent rule in an area regulated by the Commission for Public Health or the Environmental Management Commission where, in the opinion of the local board of health, a more stringent rule is required to protect the public health; otherwise, the rules of the Commission for Public Health or the rules of the Environmental Management Commission shall prevail over local board of health rules. However, a local board of health may not adopt a rule concerning a private pool serving a single family dwelling otherwise exempt from regulation pursuant to G.S. 130A‑280 or a G.S. 130A‑280, including rules concerning the recreational or instructional use of the exempt private pool. A local board of health may not adopt a rule concerning the grading, operating, and permitting of food and lodging facilities as listed in Part 6 of Article 8 of this Chapter and as defined in G.S. 130A‑247(1), and a G.S. 130A‑247(1). A local board of health may adopt rules concerning wastewater collection, treatment and disposal systems which are not designed to discharge effluent to the land surface or surface waters only in accordance with G.S. 130A‑335(c).

ATV RIDER RESTRICTION MODIFICATION

SECTION 22.(a)  G.S. 20‑171.15 reads as rewritten:

§ 20‑171.15.  Age or size restrictions.

(a)        It is unlawful for any parent or legal guardian of a person less than eight years of age to knowingly permit that person to operate an all‑terrain vehicle.

(b)        Repealed by Session Laws 2015‑286, s. 3.13(a), effective October 22, 2015.

(c)        It Except as provided in subsection (c1) of this section, it is unlawful for any parent or legal guardian of a person less than 16 years of age to knowingly permit that person to operate an all‑terrain vehicle in violation of the Age Restriction Warning Label affixed by the manufacturer as required by the applicable American National Standards Institute/Specialty Vehicle Institute of America (ANSI/SVIA) design standard.

(c1)      Safety Course Rider‑Fit Exception. – Subsection (c) of this section does not apply to a person less than 16 years of age operating an all‑terrain vehicle if all of the following requirements are met:

(1)        The person is at least 8 years of age.

(2)        The person is participating in, or has successfully completed, an all‑terrain vehicle safety course sponsored or approved by the All‑Terrain Vehicle Safety Institute or another all‑terrain vehicle safety course approved by the Commissioner of Insurance pursuant to G.S. 20‑171.20.

(3)        A course instructor certified or approved to teach a course described in subdivision (2) of this subsection determines in writing that, because of the person's height, weight, or physical size, the person cannot safely operate an all‑terrain vehicle that complies with the Age Restriction Warning Label and that the all‑terrain vehicle to be operated is appropriate for the person.

(4)        The person satisfies all of the following rider‑fit requirements with respect to the all‑terrain vehicle being operated:

a.         Brake reach. – With hands placed in the normal operating position and fingers straight out, the first joint from the tip of the middle finger extends beyond the brake lever and clutch.

b.         Leg length. – While sitting and with their feet on the pegs, the rider's knee is bent at least 45 degrees.

c.         Grip reach. – While sitting upright on the ATV with hands on the handlebars and not leaning forward, the rider's upper arm and the forearm form a distinct angle.

d.         Handlebar control. – The rider must be able to turn the handlebars from lock to lock while maintaining grip on the handlebars and maintaining the throttle and brake control.

(5)        The person operates the all‑terrain vehicle under the direct supervision of the safety course instructor while participating in the course or, after successful completion of the course, under the continuous visual supervision of a person 18 years or older, pursuant to subsection (d) of this section.

(6)        The person complies with all other requirements of this Part, including helmet and eye‑protection requirements.

….

SECTION 22.(b)  G.S. 20‑171.20 reads as rewritten:

§ 20‑171.20.  Safety training and certificate.

Effective October 1, 2006, every all‑terrain vehicle operator born on or after January 1, 1990, shall possess a safety certificate indicating successful completion of an all‑terrain vehicle safety course sponsored or approved by the All‑Terrain Vehicle Safety Institute or by another all‑terrain vehicle safety course approved by the Commissioner of Insurance. The North Carolina Community College System is authorized to provide all‑terrain vehicle safety training, approved by the Commissioner, to persons less than 18 years of age. An all‑terrain vehicle safety certificate issued to a person less than 16 years of age may include a written rider‑fit determination by the course instructor identifying the type or size of an all‑terrain vehicle the instructor has determined is appropriate for the person pursuant to G.S. 20‑171.15(c1).

PLUMBING BOARD FEE CAP CLARIFICATION

SECTION 23.  G.S. 87‑22 reads as rewritten:

§ 87‑22.  License fee; expiration and renewal; reinstatement.

All persons, firms, or corporations engaged in the business of either plumbing or heating contracting, or both, shall pay an annual license fee not to exceed one hundred fifty dollars ($150.00). The annual fee for a piping or restricted classification license shall not exceed that for a plumbing or heating license. All persons, firms, or corporations engaged in the business of fire sprinkler contracting shall pay an initial application fee not to exceed seventy‑five dollars ($75.00) and an annual license fee not to exceed three hundred dollars ($300.00). In the event the Board refuses to license an applicant, the license fee deposited shall be returned by the Board to the applicant. All licenses shall expire on the last day of December in each year following their issuance or renewal. Persons who obtain a license by passing an examination on or after October 1 of any year may receive a license for the remainder of the year by paying one‑half of the usual license fee for that classification of license. It shall be the duty of the secretary and treasurer to send by United States mail or email to every licensee registered with the Board, notice to the licensee's last known address reflected on the records of the Board of the amount of fee required for renewal of license, the notice to be mailed at least one month in advance of the expiration of the license. The Board may require payment of all unpaid annual fees before reissuing a license. In the event of failure on the part of any person, firm or corporation to renew the license certificate annually and pay the required fee during the month of January in each year, the Board shall increase the license fee by twenty‑five dollars ($25.00) to cover any additional expense associated with late renewal. The Board shall require reexamination upon failure of a licensee to renew license within three years after expiration. The Board may adopt regulations requiring attendance at programs of continuing education as a condition of license renewal. A licensee employed full time as a local government plumbing, heating, or mechanical inspector and holding qualifications from the Code Officials Qualifications Board may renew the license at a fee not to exceed twenty‑five dollars ($25.00). The Board shall not charge any fee or payment associated with licensing except those expressly authorized by this section.

EXTEND ANNUAL REPORTING REQUIREMENTS FOR BUSINESS ENTITIES OWNED BY DEPLOYED MEMBERS OF THE ARMED FORCES

SECTION 24.(a)  G.S. 55‑16‑22(a) reads as rewritten:

§ 55‑16‑22.  Annual report.

(a)        Requirement. – Except as provided in G.S. 55‑16‑22.3 and in subsections (a1) and (a2) of this section, each domestic corporation and each foreign corporation authorized to transact business in this State shall deliver an annual report directly to the Secretary of State in electronic form or in paper form as prescribed by the Secretary of State under this section.

SECTION 24.(b)  Article 16 of Chapter 55 of the General Statutes is amended by adding a new section to read:

§ 55‑16‑22.3.  Exemptions for corporations owned by deployed members of the Armed Forces.

(a)        Definitions. – As used in this section, the following terms have the following meanings:

(1)        Armed Forces. – The United States Air Force, Army, Coast Guard, Marine Corps, Navy, or Space Force, or any reserve component of the foregoing.

(2)        Deployed member. – A member of the Armed Forces who is removed from his or her county of residence pursuant to an official order for a deployment period that ends on or after the ninetieth day preceding the due date of the annual report required by G.S. 55‑16‑22.

(b)        Notwithstanding G.S. 55‑16‑22, an annual report is deemed timely filed if it is filed by a domestic or foreign corporation (i) in which more than fifty percent (50%) of the ownership interest is owned by one or more deployed members and (ii) within 90 days of the end of the deployment period. The following provisions apply:

(1)        Prior to the start of the deployment, the corporation shall file electronically with the Secretary of State a sworn affidavit of deployment executed by the deployed member that includes the following information:

a.         The full name of the deployed member.

b.         The name of the corporation and the state under whose law it is incorporated.

c.         The percentage ownership interest in the corporation currently held by the deployed member.

d.         The expected start and end dates of the deployment.

e.         A statement either certifying that the information contained in the most recently filed annual report has not changed or setting forth the updated information required by G.S. 55‑16‑22(a3)(2) through (5).

(2)        In the event the deployment is extended beyond the date stated in the affidavit of deployment, the corporation shall file electronically with the Secretary of State, within 180 days of the end date stated in the affidavit of deployment filed with the Secretary of State pursuant to subdivision (1) of this subsection, a sworn affidavit of extended deployment by an authorized representative of the corporation that includes the following information:

a.         The title or position in the corporation held by the affiant.

b.         The full name of the deployed member.

c.         The name of the corporation and the state under whose law it is incorporated.

d.         The percentage ownership interest in the corporation currently held by the deployed member.

e.         The expected end date of the extended deployment.

f.          A statement either certifying that the information contained in the most recently filed annual report has not changed or setting forth the updated information required by G.S. 55‑16‑22(a3)(2) through (5).

(3)        The due date of the corporation's next annual report is the ninetieth day following the end date stated in the affidavit of deployment filed pursuant to subdivision (1) of this subsection; provided, however, that if the deployment is extended, the due date of the corporation's annual report is the ninetieth day following the end date stated in the affidavit of extended deployment filed pursuant to subdivision (2) of this subsection.

(4)        The grounds for dissolution under G.S. 55‑14‑20 apply to corporations that are subject to this section only if the period of delinquency for the applicable ground is 180 days or more past the end date stated in the affidavit of deployment filed with the Secretary of State pursuant to subdivision (1) of this subsection.

(c)        Any fees required by G.S. 55‑1‑22 for documents filed pursuant to subsection (b) of this section are waived.

SECTION 25.(a)  G.S. 57D‑2‑24 reads as rewritten:

§ 57D‑2‑24.  Annual report for Secretary of State.

(a)        Excluding professional limited liability companies governed by G.S. 57D‑2‑02, G.S. 57D‑2‑02 and except as provided in G.S. 57D‑2‑26, each LLC and each foreign LLC authorized to transact business in this State must deliver to the Secretary of State for filing annual reports on a form prescribed by, and in the manner required by, the Secretary of State and as otherwise provided in subsection (b) of this section. Each annual report must specify the year for which the report applies and provide the information required by this subsection. The information must be current as of the date the limited liability company completes the report. If the information in the limited liability company's most recent annual report has not changed, the limited liability company may certify in its annual report that the information has not changed in lieu of restating the information.

The following information must be included in each annual report:

(1)        The name of the limited liability company and, in the case of a foreign LLC, any different name that the foreign LLC is authorized under Article 3 of Chapter 55D of the General Statutes to use to transact business in this State, as provided in the foreign LLC's certificate of authority.

(2)        In the case of a foreign LLC, the name of the jurisdiction under whose law the foreign LLC is organized.

(3)        The street address, and the mailing address if different from the street address, of the limited liability company's registered office in the State, the county in which the registered office is located, the name of its registered agent at that office, and a statement of any change of the registered office or registered agent.

(4)        The address and telephone number of its principal office.

(5)        The names, titles, and business addresses of the limited liability company's principal company officials.

(6)        A brief description of the nature of its business.

….

SECTION 25.(b)  Article 2 of Chapter 57D of the General Statutes is amended by adding a new section to read:

§ 57D‑2‑26.  Exemptions for LLCs owned by deployed members of the Armed Forces.

(a)        Definitions. – As used in this section, the following terms have the following meanings:

(1)        Armed Forces. – The United States Air Force, Army, Coast Guard, Marine Corps, Navy, or Space Force, or any reserve component of the foregoing.

(2)        Deployed member. – A member of the Armed Forces who is removed from his or her county of residence pursuant to an official order for a deployment period that ends on or after the ninetieth day preceding the due date of the annual report required by G.S. 57D‑2‑24.

(b)        Notwithstanding G.S. 57D‑2‑24, an annual report is deemed timely filed if it is filed by an LLC or foreign LLC (i) in which more than fifty percent (50%) of the ownership interest is owned by one or more deployed members and (ii) by April 15 of the year immediately following the end of the deployment period. The following provisions apply:

(1)        Prior to the start of the deployment, the LLC or foreign LLC shall file electronically with the Secretary of State a sworn affidavit of deployment executed by the deployed member that includes the following information:

a.         The full name of the deployed member.

b.         The name of the LLC or foreign LLC and, for a foreign LLC, any different name under which the foreign LLC is authorized to transact business in this State and the name of the jurisdiction under whose law the foreign LLC is organized.

c.         The percentage ownership interest in the LLC or foreign LLC currently held by the deployed member.

d.         The expected start and end dates of the deployment.

e.         A statement either certifying that the information contained in the most recently filed annual report has not changed or setting forth the updated information required by G.S. 57D‑2‑24.

(2)        In the event the deployment is extended beyond the date stated in the affidavit of deployment, the LLC or foreign LLC shall file electronically with the Secretary of State, within 180 days of the end date stated in the affidavit of deployment filed with the Secretary of State pursuant to subdivision (1) of this subsection, a sworn affidavit of extended deployment by an authorized representative of the corporation that includes the following information:

a.         The title or position in the LLC or foreign LLC held by the affiant.

b.         The full name of the deployed member.

c.         The name of the LLC or foreign LLC and, for a foreign LLC, any different name under which the foreign LLC is authorized to transact business in this State and the name of the jurisdiction under whose law the foreign LLC is organized.

d.         The percentage ownership interest in the LLC or foreign LLC currently held by the deployed member.

e.         The expected end date of the extended deployment.

f.          A statement either certifying that the information contained in the most recently filed annual report has not changed or setting forth the updated information required by G.S. 57D‑2‑24.

(3)        The due date of the LLC's or foreign LLC's next annual report is the ninetieth day following the end date stated in the affidavit of deployment filed pursuant to subdivision (1) of this subsection; provided, however, that if the deployment is extended, the due date of the LLC's or foreign LLC's annual report is the ninetieth day following the end date stated in the affidavit of extended deployment filed pursuant to subdivision (2) of this subsection.

(4)        The grounds for dissolution under G.S. 57D‑6‑06 apply to LLCs and foreign LLCs that are subject to this section only if the period of delinquency for the applicable ground is 180 days or more past the end date stated in the affidavit of deployment filed with the Secretary of State pursuant to subdivision (1) of this subsection.

(c)        Any fees required by G.S. 57D‑1‑22 for documents filed pursuant to subsection (b) of this section are waived.

SECTION 26.(a)  G.S. 59‑84.4 reads as rewritten:

§ 59‑84.4.  Annual report for Secretary of State.

(a)        Each Except as provided in G.S. 59‑84.6, each registered limited liability partnership and each foreign limited liability partnership authorized to transact business in this State shall deliver to the Secretary of State for filing an annual report, in a form prescribed by the Secretary of State, that sets forth all of the following:

(1)        The name of the registered limited liability partnership or foreign limited liability partnership and the state or country under whose law it is formed.

(2)        The street address, and the mailing address if different from the street address, of the registered office, the county in which the registered office is located, and the name of its registered agent at that office in this State, and a statement of any change of the registered office or registered agent, or both.

(3)        The street address and telephone number of its principal office.

(4)        A brief description of the nature of its business.

(5)        The fiscal year end of the partnership.

If the information contained in the most recently filed annual report has not changed, a certification to that effect may be made instead of setting forth the information required by subdivisions (2) through (4) of this subsection. The Secretary of State shall make available the form required to file an annual report.

….

SECTION 26.(b)  Article 3B of Chapter 59 of the General Statutes is amended by adding a new section to read:

§ 59‑84.6.  Exemptions for limited liability partnerships owned by deployed members of the Armed Forces.

(a)        Definitions. – As used in this section, the following terms have the following meanings:

(1)        Armed Forces. – The United States Air Force, Army, Coast Guard, Marine Corps, Navy, or Space Force, or any reserve component of the foregoing.

(2)        Deployed member. – A member of the Armed Forces who is removed from his or her county of residence pursuant to an official order for a deployment period that ends on or after the ninetieth day preceding the due date of the annual report required by G.S. 59‑84.4.

(b)        Notwithstanding G.S. 59‑84.4, an annual report is deemed timely filed if it is filed by a registered or foreign limited liability partnership (i) in which more than fifty percent (50%) of the ownership interest is owned by one or more deployed members and (ii) within 90 days of the end of the deployment period. The following provisions apply:

(1)        Prior to the start of the deployment, the registered or foreign limited liability partnership shall file electronically with the Secretary of State a sworn affidavit of deployment executed by the deployed member that includes the following information:

a.         The full name of the deployed member.

b.         The name of the registered or foreign limited liability partnership and the state or country under whose law it is formed.

c.         The percentage ownership interest in the registered or foreign limited liability partnership currently held by the deployed member.

d.         The expected start and end dates of the deployment.

e.         A statement either certifying that the information contained in the most recently filed annual report has not changed or setting forth the updated information required by G.S. 59‑84.4(a)(2) through (5).

(2)        In the event the deployment is extended beyond the date stated in the affidavit of deployment, the registered or foreign limited liability partnership shall file electronically with the Secretary of State, within 180 days of the end date stated in the affidavit of deployment filed with the Secretary of State pursuant to subdivision (1) of this subsection, a sworn affidavit of extended deployment by an authorized representative of the registered or foreign limited liability partnership that includes the following information:

a.         The title or position in the registered or foreign limited liability partnership held by the affiant.

b.         The full name of the deployed member.

c.         The name of the registered or foreign limited liability partnership and the state or country under whose law it is formed.

d.         The percentage ownership interest in the registered or foreign limited liability partnership currently held by the deployed member.

e.         The expected end date of the extended deployment.

f.          A statement either certifying that the information contained in the most recently filed annual report has not changed or setting forth the updated information required by G.S. 59‑84.4(a)(2) through (5).

(3)        The due date of the registered or foreign limited liability partnership's next annual report is the ninetieth business day following the end date stated in the affidavit of deployment filed pursuant to subdivision (1) of this subsection; provided, however, that if the deployment is extended, the due date of the registered or foreign limited liability partnership's annual report is the ninetieth day following the end date stated in the affidavit of extended deployment filed pursuant to subdivision (2) of this subsection.

(4)        The grounds for revocation of registration under G.S. 59‑84.4(f) apply to registered and foreign limited liability partnerships that are subject to this section only if the period of delinquency for the applicable ground is 180 days or more past the end date stated in the affidavit of deployment filed with the Secretary of State pursuant to subdivision (1) of this subsection.

(c)        Any fees required by G.S. 59‑35.2 for documents filed pursuant to subsection (b) of this section are waived.

SECTION 27.  G.S. 132‑1.2 reads as rewritten:

§ 132‑1.2.  Confidential information.

Nothing in this Chapter shall be construed to require or authorize a public agency or its subdivision to disclose any information that:

…

(12)      Reveals information contained in an affidavit of deployment or an affidavit of extended deployment filed with the Secretary of State pursuant to G.S. 55‑16‑22.3, 57D‑2‑26, or 59‑84.6.

SECTION 28.  The Secretary of State shall make available the form or forms needed for the affidavit of deployment and affidavit of extended deployment required by this act and shall take any other action necessary to allow business entities to begin filing pursuant to this act on October 1, 2026.

SECTION 29.  Sections 24 through 27 of this act become effective October 1, 2026.

CLARIFY EXEMPTION FOR STRETCHING SERVICES AT MASSAGE AND BODYWORK THERAPY ESTABLISHMENTS

SECTION 29.2.(a)  G.S. 90‑622 reads as rewritten:

§ 90‑622.  Definitions.

The following definitions apply in this Article:

…

(1a)      Active stretching. – The provision by a practitioner of resistance or guidance while a client engages the client's own muscles to move a part of the client's body through a range of motion.

(1b)      Active‑assisted stretching. – A combination of passive stretching and active stretching.

(1a)(1c)      Board. – The North Carolina Board of Massage and Bodywork Therapy.

…

(4b)      Passive stretching. – The movement by a practitioner of a part of a client's body through a range of motion without muscular effort by the client.

…

(7)        Stretching services. – The provision to a client of passive stretching, active stretching, or active‑assisted stretching. Stretching services do not include any of the following:

a.         Effleurage, petrissage, or tapotement.

b.         Deep tissue manipulation.

c.         Myofascial release.

d.         Any other system of activity applied to the soft tissues of the human body within the meaning of subdivision (3) of this section.

SECTION 29.2.(b)  G.S. 90‑624 is amended by adding a new subdivision to read:

(9)      The provision of stretching services by a person who provides only stretching services, as provided in G.S. 90‑624.1.

SECTION 29.2.(c)  Article 36 of Chapter 90 of the General Statutes is amended by adding a new section to read:

§ 90‑624.1.  Stretching services.

(a)        Notwithstanding G.S. 90‑622(3)a., a person who provides only stretching services is not required to be licensed under this Article with respect to the provision of those stretching services.

(b)        A massage and bodywork therapy establishment may employ or contract with one or more persons to provide stretching services. This subsection applies regardless of whether a person provides stretching services as an employee of the establishment or as an independent contractor.

(c)        The license of a massage and bodywork therapy establishment does not extend any authorization to practice massage and bodywork therapy to a person who provides only stretching services at the establishment, and the person is not authorized to practice massage and bodywork therapy pursuant to the establishment's license.

(d)       Nothing in this section shall be construed to do any of the following:

(1)        Authorize a person who is not licensed under this Article to practice massage and bodywork therapy.

(2)        Alter, limit, or expand the definition of massage and bodywork therapy in G.S. 90‑622(3) or the practice of massage and bodywork therapy under this Article.

(3)        Alter or limit the ability of a person not licensed under this Article to provide stretching services outside of a licensed massage and bodywork therapy establishment.

(4)        Affect, limit, or impair any civil remedy otherwise available to a client under any other provision of law.

SECTION 29.2.(d)  G.S. 90‑632.16 reads as rewritten:

§ 90‑632.16.  Unlicensed massage and bodywork therapy prohibited at massage and bodywork therapy establishments.

A massage and bodywork therapy establishment shall not employ or contract with any person in this State to provide massage and bodywork therapy unless that person holds a current license to practice massage and bodywork therapy issued pursuant to this Article. This section does not prohibit a massage and bodywork therapy establishment from employing or contracting with a person to provide only stretching services as provided in G.S. 90‑624.1, and for purposes of this section, a person who provides only stretching services is not a person employed or contracted to provide massage and bodywork therapy.

LIMIT LOCAL GLAZING AND TRANSPARENCY REQUIREMENTS

SECTION 29.3.(a)  Article 7 of Chapter 160D of the General Statutes is amended by adding a new section to read:

§ 160D‑702.1.  Glazing and transparency limitations.

(a)        Definitions. – The following definitions apply in this section:

(1)        Glazing requirement. – Any zoning regulation, development regulation, design standard, or permitting requirement for windows, doors, storefront glass, glass block, transparent or translucent panels, faux windows, or similar facade treatments intended to satisfy a transparency or facade‑opening requirement.

(2)        Ground‑floor facade area. – The exterior wall area of a building measured from grade to 10 feet above grade, excluding loading docks, service bays, mechanical areas, emergency exits, vehicular doors, and other functional areas that are not reasonably treated as storefront facade.

(b)        General Limitation. – No local government may adopt or enforce a glazing requirement that requires glazing, transparency, windows, doors, storefront glass, faux windows, or other transparent or translucent facade materials to exceed thirty‑five percent (35%) of the ground‑floor facade area of a commercial or mixed‑use building.

(c)        Limitation for Non‑Storefront Uses. – For portions of a commercial or mixed‑use building used primarily for non‑storefront purposes, no local government may adopt or enforce a glazing requirement that requires glazing or transparency to exceed twenty percent (20%) of the ground‑floor facade area. Non‑storefront uses include all of the following:

(1)        Religious assembly or sanctuary space.

(2)        Medical or dental examination, treatment, or healthcare services.

(3)        Educational instruction or counseling.

(4)        Civic or nonprofit services.

(5)        Funeral services.

(6)        Lodge or meeting hall use.

(7)        Storage or back‑of‑house operations.

(8)        Other institutional, assembly, or service uses not primarily operated as walk‑in retail, restaurant, bar, entertainment, or commercial storefront uses.

(d)       Voluntary Glazing. – The limitations in subsections (b) and (c) of this section apply only to glazing or transparency required by a local government. Nothing in this section limits glazing voluntarily provided by an owner, developer, architect, or tenant, except that a local government may not condition the approval of a development permit, special use permit, conditional use permit, variance, or other development approval upon the voluntary provision of glazing in excess of the limits in this section.

(e)        Exceptions. – This section does not apply to or affect any of the following:

(1)        The North Carolina Building Code, including emergency egress, accessibility, or energy efficiency requirements.

(2)        The North Carolina Fire Code.

(3)        Floodplain or floodproofing requirements.

(4)        Requirements imposed by State or federal law.

(5)        Property located within a local historic district established under G.S. 160D‑944 or an individually designated local historic landmark established under Article 9 of this Chapter.

(6)        Property subject to review by a local historic preservation commission for a certificate of appropriateness.

(7)        Property subject to a federal or State historic preservation review requirement, including a requirement related to the use of federal or State historic tax credits, grants, or funding.

(8)        State or federal requirements for airport safety, military installation safety, or other public safety requirements.

SECTION 29.3.(b)  This section becomes effective July 1, 2026, and any development regulation that is inconsistent with G.S. 160D‑702.1, as enacted by this section, on or after that date is void and unenforceable to the extent of the inconsistency. This section does not affect the validity of a development approval issued, or an application for a development approval submitted, before the effective date of this section.

FURTHER PROHIBIT PROPERTY RESTRICTIONS ON FLYING THE AMERICAN AND NORTH CAROLINA FLAG

SECTION 29.4.(a)  G.S. 47C‑3‑121 reads as rewritten:

§ 47C‑3‑121.  American and State flags and political sign displays.

Notwithstanding any provision in any declaration of covenants, no restriction on the use of land shall be construed to:

(1)        Regulate or prohibit the display of the flag of the United States or North Carolina, of a size no greater than four feet by six feet, which is displayed in accordance with or in a manner consistent with the patriotic customs set forth in 4 U.S.C. §§ 5‑10, as amended, governing the display and use of the flag of the United States unless:States.

a.         For restrictions registered prior to October 1, 2005, the restriction specifically uses the following terms:

1.         Flag of the United States of America;

2.         American flag;

3.         United States flag; or

4.         North Carolina flag.

b.         For restrictions registered on or after October 1, 2005, the restriction shall be written on the first page of the instrument or conveyance in print that is in boldface type, capital letters, and no smaller than the largest print used elsewhere in the instrument or conveyance. The restriction shall be construed to regulate or prohibit the display of the United States or North Carolina flag only if the restriction specifically states: THIS DOCUMENT REGULATES OR PROHIBITS THE DISPLAY OF THE FLAG OF THE UNITED STATES OF AMERICA OR STATE OF NORTH CAROLINA.

This subdivision shall apply to owners of property who display the flag of the United States or North Carolina on property owned exclusively by them and does not apply to common areas, easements, rights‑of‑way, or other areas owned by others.

….

SECTION 29.4.(b)  G.S. 47F‑3‑121 reads as rewritten:

§ 47F‑3‑121.  American and State flags and political sign displays.

Notwithstanding any provision in any declaration of covenants, no restriction on the use of land shall be construed to:

(1)        Regulate or prohibit the display of the flag of the United States or North Carolina, of a size no greater than four feet by six feet, which is displayed in accordance with or in a manner consistent with the patriotic customs set forth in 4 U.S.C. §§ 5‑10, as amended, governing the display and use of the flag of the United States unless:States.

a.         For restrictions registered prior to October 1, 2005, the restriction specifically uses the following terms:

1.         Flag of the United States of America;

2.         American flag;

3.         United States flag; or

4.         North Carolina flag.

b.         For restrictions registered on or after October 1, 2005, the restriction shall be written on the first page of the instrument or conveyance in print that is in boldface type, capital letters, and no smaller than the largest print used elsewhere in the instrument or conveyance. The restriction shall be construed to regulate or prohibit the display of the United States or North Carolina flag only if the restriction specifically states: THIS DOCUMENT REGULATES OR PROHIBITS THE DISPLAY OF THE FLAG OF THE UNITED STATES OF AMERICA OR STATE OF NORTH CAROLINA.

This subdivision shall apply to owners of property who display the flag of the United States or North Carolina on property owned exclusively by them and does not apply to common areas, easements, rights‑of‑way, or other areas owned by others.

….

SECTION 29.4.(c)  This section is effective when it becomes law.

SEVERABILITY AND EFFECTIVE DATE

SECTION 30.(a)  If any provision of this act or its application is held invalid, the invalidity does not affect other provisions or applications of this act that can be given effect without the invalid provisions or application and, to this end, the provisions of this act are severable.

SECTION 30.(b)  Sections 1 through 4 of this act become effective July 1, 2026. Except as otherwise provided, the remainder of this act is effective when it becomes law.