GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1999

H	1 

HOUSE BILL 1149

Short Title:  Modular Construction Requirements.	(Public)

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Sponsors: Representative Jeffus.

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Referred to:  Ways and Means.

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April 15, 1999

A BILL TO BE ENTITLED
AN ACT TO PROVIDE THAT A GENERAL CONTRACTOR LICENSE IS REQUIRED FOR THE ERECTION OF A MODULAR BUILDING AND TO PROVIDE A LIMITED EXEMPTION FROM THIS REQUIREMENT FOR CERTAIN MODULAR COMMERCIAL STRUCTURES.
The General Assembly of North Carolina enacts:
Section 1. G.S. 87-1 reads as rewritten:
"§ 87-1.  ‘General contractor' defined; exceptions.
For the purpose of this Article any person or firm or corporation who for a fixed price, commission, fee, or wage, undertakes to bid upon or to construct or who undertakes to superintend or manage, on his own behalf or for any person, firm, or corporation that is not licensed as a general contractor pursuant to this Article, the construction of any building, highway, public utilities, grading or any improvement or structure where the cost of the undertaking is thirty thousand dollars ($30,000) or more, or undertakes to erect a modular building meeting the North Carolina State Building Code, shall be deemed to be a "general contractor”engaged in the business of general contracting in the State of North Carolina.
This section shall not apply to persons or firms or corporations furnishing or erecting industrial equipment, power plan equipment, radial brick chimneys, and monuments.
This section shall not apply to any person or firm or corporation who constructs or alters a building on land owned by that person, firm or corporation provided such building is intended solely for occupancy by that person and his family, firm, or corporation after completion; and provided further that, if such building is not occupied solely by such person and his family, firm, or corporation for at least 12 months following completion, it shall be presumed that the person, firm, or corporation did not intend such building solely for occupancy by that person and his family, firm, or corporation.
This section shall not apply to any person engaged in the business of farming who constructs or alters a building on land owned by that person and used in the business of farming, when such building is intended for use by that person after completion.
	This section shall not apply to any person that erects a modular building that meets the requirements of G.S. 143-139.1(c)."
Section 2.  G.S. 143-139.1 reads as rewritten:
"§ 143-139.1.  Certification of manufactured buildings, structures or components by recognized independent testing laboratory; licensure requirements for certain commercial buildings.
(a)	The State Building Code may provide, in circumstances deemed appropriate by the Building Code Council, for testing, evaluation, inspection, and certification of buildings, structures or components manufactured off the site on which they are to be erected, by a recognized independent testing laboratory having follow-up inspection services approved by the Building Code Council. Approval of such buildings, structures or components shall be evidenced by labels or seals acceptable to the Council. All building units, structures or components bearing such labels or seals shall be deemed to meet the requirements of the State Building Code and this Article without further inspection or payment of fees, except as may be required for the enforcement of the Code relative to the connection of units and components and enforcement of local ordinances governing zoning, utility connections, and foundations permits. The Building Code Council shall adopt and may amend from time to time such reasonable and appropriate rules and regulations as it deems necessary for approval of agencies offering such testing, evaluation, inspection, and certification services and for overseeing their operations. Such rules and regulations shall include provisions to insure that such agencies are independent and free of any potential conflicts of interest which might influence their judgment in exercising their functions under the Code. Such rules and regulations may include a schedule of reasonable fees to cover administrative expenses in approving and overseeing operations of such agencies and may require the posting of a bond or other security satisfactory to the Council guaranteeing faithful performance of duties under the Code.
(b)	A person that erects a modular building shall be licensed as a general contractor pursuant to Chapter 87 of the General Statutes.
(c)	Notwithstanding subsection (b) of this section and G.S. 87-1, a person that erects a modular building that meets all of the following requirements shall be licensed as either a general contractor under Chapter 87 of the General Statutes or a set-up contractor under Article 9A of this Chapter:
(1)	The building is to be erected only for a commercial use.
(2)	The building is structurally similar to and transported to the site in the same manner as a manufactured home, as determined by rules adopted by the Building Code Council.
(3)	A building consisting of a single unit is no larger than 2,000 square feet.  With respect to a modular building consisting of multiple units, each of which meets the requirements of subdivision (2) of this subsection, no single unit is larger than 1,500 square feet, no more than five units are joined together to form the building, and no units are stacked.
(d)	Proof of compliance with this section shall be provided to the code enforcement official prior to the issuance of a permit for the erection of the building.  The Building Code Council shall adopt rules for the enforcement of this subsection.  When the work is performed by a set-up contractor licensed under Article 9A of this Chapter, G.S. 143-143.12(c) shall also apply to the buyer of the modular building."
Section 3.  This act becomes effective September 1, 1999.