2020
Laws and
Regulations
Applicable to
General
Contracting in
the State of
North Carolina
North Carolina
General
Contractor
Licensing
Statutes
Homeowners
Recovery
Fund Laws
Regulaons
for Contractors
North Carolina
Administrave
Code
North Carolina Licensing Board
for General Contractors
North Carolina Licensing Board
for General Contractors
Chairman
Vice-Chairman
5400 Creedmoor Rd.
Raleigh, North Carolina 27612
(919) 571-4183
www.nclbgc.org
MEMBERS OF THE BOARD
J. David Stike, Holly Springs
Lee omason, Asheville
John Cooper, Raleigh
Henry Lanier, Snow Hill
Lyle Gardner, Raleigh
Robert Lasater, Jr., P.E., Raleigh
Lisa Piercy, Pinehurst
Benton Albritton, Raleigh
Robyn Hicks-Guinn, Charlotte
C. Frank Wiesner, Secretary-Treasurer
2
In 1925 the North Carolina
General Assembly established the
authority of the North Carolina
Licensing Board for Contractors,
amending Chapter 318 of the Public
Laws, designed for the purpose
of safeguarding life, health and
property and to promote public
welfare. e licensing statutes
which govern the North Carolina
Licensing Board for General
Contractors prescribe certain
standards for persons, rms and
corporations who enter into
contracts for construction work in
this state. e practice act providing
specic regulatory authority over
general contractors is found under
N.C. General Statute §87, Article
1. Current laws in North Carolina
dene general contractors as
persons, rms or corporations who
enter into contracts for construction
projects costing $30,000 or more.
e Board provides this publication
free of charge to enhance public
awareness and to inform the general
public of the Board’s purpose and
function. Published in this book are
the current North Carolina General
Statutes applicable to the practice
of general contracting, Chapter 87,
Article 1 and 1A. Also included
are references to general statutes
pertaining to other important
aspects of the construction industry
in this state, and the rules and
regulations of this agency set forth
under the N.C. Administrative
Code (Title 21, Chapter 12).
is publication supersedes
previous editions or printings of
these Articles and rules.
Other informative publications
are provided by the Board upon
request and without charge. Specic
questions concerning the foregoing
laws, rules and1 regulations
applicable to the practice of general
contracting should be referred to
the Board oce in Raleigh,
North Carolina.
INTRODUCTION
3
TABLE OF CONTENTS
An Act to Regulate the Practice of General Contracting................................4
North Carolina Administrative Code, Title 21, Chapter 12; Rules & Regulations Index ....26
North Carolina Administrative Code, Title 21, Subchapter 12A ........................28
North Carolina Administrative Code, Title 21, Subchapter 12B ........................61
GENERAL CONTRACTORS
LIMITATIONS
LIMITED – Up to $500,000.00 on any single project
INTERMEDIATE – Up to $1,000,000.00 on any single project
UNLIMITED – Not restricted as to the value of any single project
CLASSIFICATIONS
Building
Residential
Highway
Public Utilities
Specialty
Unclassied – (includes all of the above classications)
EXAMINATIONS and LICENSURE (N.C. G.S. 87-10)
A qualifying examination is not an occupational license, and does not grant the holder of such examination the author-
ity to practice general contracting. Individuals may be licensed by their personal examinations or the examination of a
responsible managing employee. Partnerships and corporations are licensed by examination of a responsible managing
ocer or member of the personnel of the applicant. If the qualifying party leaves, however, the licensee must replace the
qualifying party within ninety (90) days or the license becomes invalid.
Licensees should not allow unlicensed persons, rms or corporations to use the general contractor’s license with the
licensee’s permission. Although licensed general contractors may have an ownership interest in an unlicensed entity, the
unlicensed contractor may not use a general contractor’s license for any reason. Violators of the general contractor laws
and regulations may be disciplined by the Licensing Board for General Contractors for allowing the use of a license by an
unlicensed person or other entities. Appropriate sanctions may include suspension or revocation of license.
Licenses must be renewed annually by December 31 for the following year, or the license expires. If a license is not re-
newed within sixty (60) days following expiration, then it becomes “invalid,” and the contractor becomes, in eect, unli-
censed. Reexamination is required if a license is not renewed for four (4) years following expiration. Aer a lapse of four
years, no renewal shall be eected and all requirements for a new license must be fullled, in accordance with G.S. 87-10.
is publication may not be sold for prot. is publication contains rules and general statutes which may be amended periodically — all such
current amendments may not be reected in this publication.
Published March 2020
4
AN ACT TO REGULATE THE
PRACTICE OF GENERAL CONTRACTING
§87-1. “General
contractor”
dened;
exceptions.
(a) For the purpose of this Article any person or rm or corporation who for a
xed 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,
rm, 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 dol-
lars ($30,000) or more, or undertakes to erect a North Carolina labeled manufac-
tured modular building meeting the North Carolina State Building Code, shall be
deemed to be a “general contractor” engaged in the business of general contracting
in the State of North Carolina.
(b) is section shall not apply to the following:
(1) Persons, rms, or corporations furnishing or erecting industrial equip-
ment, power plant equipment, radial brick chimneys, and monuments.
(2) Any person, rm, or corporation who constructs or alters a building on
land owned by that person, rm, or corporation provided (i) the building
is intended solely for occupancy by that person and his family, rm, or
corporation aer completion; and (ii) the person, rm, or corporation
complies with G.S. 87-14. If the building is not occupied solely by the
person and his family, rm, or corporation for at least 12 months follow-
ing completion, it shall be presumed that the person, rm, or corporation
did not intend the building solely for occupancy by that person and his
family, rm, or corporation.
(3)
Any person engaged in the business of farming who constructs or alters a
building on land owned by that person and used in the business of farm
-
ing, when the building is intended for use by that person aer completion
.
§87-1.1
Exception for
licensees under
Article 2 or 4.
G.S. 87-1 shall not apply to a licensee under Article 2 or 4 of this Chapter of the
General Statutes, G.S. 87-43 shall not apply to a licensee under Article 2 of this
Chapter of the General Statutes, and G.S. 87-21(a)(5) shall not apply to a licensee
under Article 4 of this Chapter of the General Statutes when the licensee is bidding
and contracting directly with the owner of a public building project if: (i) a licensed
general contractor performs all work that falls within the classications in G.S. 87-
10(b) and the State Licensing Board of General Contractor’s rules; and (ii) the total
amount of the general contracting work so classied does not exceed a percentage of
the total bid price pursuant to rules established by the Board; and (iii) a licensee with
the appropriate license under Article 2 or Article 4 of this Chapter performs all work
that falls within the classications in Article 2 and Article 4 of this Chapter.
§87-1.2 Exception for
specied Department
of Transportation
contractors.
e letting of contracts for the types of projects specied in G.S. 136-28.14 shall not
be subject to the licensing requirement of this Article.
§87-2. Licensing Board;
organization.
ere is created the State Licensing Board for General Contractors consisting of
nine members appointed by the Governor for staggered ve-year terms. Five of
the
members shall be general contractors, one member shall be a registered engi
neer
5
who practices structural engineering, and three shall be public members. Of the
general contractor members, one shall have as the larger part of his business the
construction of highways; one shall have as the larger part of his business the
construction of public utilities; one shall have as the larger part of his business the
construction of buildings; and two shall have as a larger part of their businesses the
construction of residences, one of whom shall be the holder of an unlimited general
contractor’s license. e public members shall have no ties with the construction
industry and shall represent the interests of the public at large. Members shall serve
until the expiration of their respective terms and until their successors are appoint-
ed and qualied. Vacancies occurring during a term shall be lled by appointment
of the Governor for the remainder of the unexpired term. e Governor may
remove any member of the Board for misconduct, incompetency, or neglect of duty.
No Board member shall serve more than two complete consecutive terms.
§87-3. Members of the
Board to take oath.
Each member of the Board shall, before entering upon the discharge of the duties
of his oce, take and le with the Secretary of State an oath in writing to prop-
erly perform the duties of his oce as a member of said Board and to uphold the
Constitution of North Carolina and the Constitution of the United States.
§87-4. First meeting of
the Board; ocers;
secretary-treasurer and
assistants.
e said Board shall, within 30 days aer its appointment by the Governor, meet
in the City of Raleigh, at a time and place to be designated by the Governor, and
organize by electing a chairman, a vice-chairman, and a secretary-treasurer, each
to serve for one year. Said Board shall have power to make such bylaws, rules and
regulations as it shall deem best, provided the same are not in conict with the laws
of North Carolina. e secretary-treasurer shall give bond in such sum as the Board
shall determine, with such security as shall be approved by the Board, said bond to
be conditioned for the faithful performance of the duties of his oce and for the
faithful accounting of all moneys and other property as shall come into his hands.
e secretary-treasurer need not be a member of the Board, and the Board is here-
by authorized to employ a full-time secretary-treasurer, and such other assistants
and make such other expenditures as may be necessary to the proper carrying out
of the provisions of this Article. Payment of compensation and reimbursement of
expenses of Board members shall be governed by G.S. 93B-5.
§87-5. Seal of the Board
e Board shall adopt a seal for its own use. e seal shall have the words “North
Carolina Licensing Board for General Contractors” and the secretary shall have
charge, care and custody thereof.
§87-6. Meetings; notice;
quorum.
T
he Board shall meet twice each year, once in April and once in October, for the
purpose of transacting such business as may properly come before it. At the April
meeting in each year the Board shall elect ocers. Special meetings may be held
at such times as the Board may provide in the bylaws it shall adopt. Due notice
of each meeting and the time and place thereof shall be given to each member in
such manner as the bylaws may provide. Five members of the Board shall consti-
tute a quorum.
§87-7. Records of Board;
disposition of funds.
e secretary-treasurer shall keep a record of the proceedings of the said Board and
shall receive and account for all moneys derived from the operation of this Article.
Any funds remaining in the hands of the secretary-treasurer to the credit of the
Board aer the expenses of the Board for the current year have been paid shall be
paid over to the Greater University of North Carolina for the use of the School of
Engineering through the North Carolina Engineering Foundation. e Board has
the right, however, to retain at least ten percent (10%) of the total expense it incurs
6
for a year’s operation to meet any emergency that may arise. As an expense of the
Board, said Board is authorized to expend such funds as it deems necessary to pro-
vide retirement and disability compensation for its employees.
§87-8. Records; roster of
licensed contractors;
report to Governor.
e secretary-treasurer shall keep a record of the proceedings of the Board and
a register of all applicants for license showing for each the date of application,
name, qualications, place of business, place of residence, and whether license
was granted or refused. e books and register of this Board shall be prima facie
evidence of all matters recorded therein. A roster showing the names and places
of business and of residence of all licensed general contractors shall be prepared
by the secretary of the Board during the month of March of each year; the roster
shall be printed by the Board out of funds of the Board as provided in G.S. 87-7,
with copies being made available to contractors and members of the public, at cost,
upon request, or furnished without cost, as directed by the Board. On or before the
last day of March of each year the Board shall submit to the Governor a report of its
transactions for the preceding year, and shall le with the Secretary of State a copy
of the report, together with a complete statement of the receipts and expenditures
of the Board, attested by the adavits of the chairman and the secretary, and a copy
of the roster of licensed general contractors.
§87-9. Compliance with
Federal Highway Act,
etc.; contracts nanced
by federal road funds;
contracts concerning
water or waste water
systems.
Nothing in this Article shall operate to prevent the Department of Transportation
from complying with any act of Congress and any rules and regulations pursuant
thereto for carrying out the provisions of the Federal Highway Act, or shall apply
to any person, rm or corporation proposing to submit a bid or enter into contract
for any work to be nanced in whole or in part with federal aid road funds in such
a manner as will conict with any act of Congress or any such rules and regulations
promulgated pursuant thereto.
Neither shall anything in this Article prevent the State of North Carolina or any
of its political subdivisions or their contractors from complying with any act of
Congress and any rules and regulations promulgated pursuant thereto for carrying
out the provisions of any federal program to assist in the planning, nancing, or
construction of drinking water or waste water processing, collection, and disposal
systems and facilities.
§87-9.1. Ownership of real
property: equipment;
liability insurance.
(a) e Board shall have the power to acquire, hold, rent, encumber, alienate,
and otherwise deal with real property in the same manner as a private person or
corporation, subject only to approval of the Governor and the Council of State as
to the acquisition, rental, encumbering, leasing, and sale of real property. Collateral
pledged by the Board for an encumbrance is limited to the assets, income, and
revenues of the Board.
(b) e Board may purchase or rent equipment and supplies and purchase liability
insurance or other insurance to cover the activities of the Board, its operations, or
its employees.
§87-10. Application for license;
examination; certicate;
renewal.
(a) Anyone seeking to be licensed as a general contractor in this State shall submit
an application. Before being entitled to an examination. An applicant shall:
(1) Be at least 18 years of age.
(2) Possess good moral character as determined by the Board.
(3) Provide evidence of nancial responsibility as determined by the Board.
(4) Submit the appropriate application fee.
7
(a1) e Board shall require an applicant to pay the Board or a provider contracted
by the Board an examination fee not to exceed one hundred ($100.00). In addi-
tion, the Board shall require an applicant to pay the Board a fee not to exceed one
hundred twenty-ve dollars ($125.00) if the application is for an unlimited license,
one hundred dollars ($100.00) if the application is for an intermediate license,
or seventy-ve dollars ($75.00) if the application is for a limited license. e fees
accompanying any application or examination shall be nonrefundable. e holder
of an unlimited license shall be entitled to act as general contractor without restric-
tion as to value of any single project; the holder of an intermediate license shall be
entitled to act as general contractor for any single project with a value of up to one
million dollars ($1,000,000), excluding the cost of land and any ancillary costs to
improve the land: the holder of a limited license shall be entitled to act as general
contractor for any single project with a value of up to ve hundred thousand dol-
lars ($500.000), excluding the cost of land and any ancillary costs to improve the
land. e license certicate shall be classied in accordance with this section.
(b) An applicant shall identify an individual who has successfully passed an exam-
ination approved by the Board who, for purposes of this section, shall be known
as the “qualier” or the “qualifying party” of the applicant. If the qualier or the
qualifying party seeks to take an examination the examination shall establish (i) the
ability of the applicant to make a practical application of the applicant’s knowledge
of the profession of contracting; (ii) the qualications of the applicant in reading
plans and specications, knowledge of relevant matters contained in the North
Carolina State Building Code, knowledge of estimating costs, construction , ethics,
and other similar matters pertaining to the contracting business; (iii) the knowl-
edge of the applicant as to the responsibilities of a contractor to the public and of
the requirements of the laws of the State of North Carolina relating to contrac-
tors, construction, and liens; and (iv) the applicant’s knowledge of requirements
of the
Sedimentation Pollution Control Act of 1973, Article 4 of Chapter 113A of
the General Statutes, and the rules adopted pursuant to that Article. If the qualier
or qualifying party passes the examination, upon review of the application and all
relevant information, the Board shall issue a license to the applicant to engage in
general contracting in the State of North Carolina, which may be limited as follows:
(1) Building contractor, which shall include private, public, commercial,
industrial and residential buildings of all types.
(1a) Residential contractor, which shall include any general contractor con-
structing only residences which are required to conform to the residen-
tial building code adopted by the Building Code Council pursuant to
G.S. 143-138.
(2) Highway contractor.
(3) Public utilities contractors, which shall include those whose operations
are the
performance of construction work on the following subclassica-
tions of facilities:
a.
Water and sewer mains, water service lines, and house and building
sewer lines as dened in the North Carolina State Building Code, and
water storage tanks, li stations, pumping stations, and appurtenanc-
es to water storage tanks, li stations, and pumping stations.
b.
Water and wastewater treatment facilities and appurtenances thereto.
c. Electrical power transmission facilities, and primary and secondary
distribution facilities ahead of the point of delivery of electric service
to the customer.
8
d. Public communication distribution facilities.
e. Natural gas and other petroleum products distribution facilities;
provided the General Contractors Licensing Board may issue license
to a public utilities contractor limited to any of the above subclassi-
cations for which the general contractor qualies.
(4) Specialty contractor, which shall include those whose operations as such
are the performance of construction work requiring special skill and
involving the use of specialized building trades or cras, but which shall
not include any operations now or hereaer under the jurisdiction, for
the issuance of license by any board or commission pursuant to the laws
of the State of North Carolina.
(b1) Public utilities contractors constructing house and building sewer lines as
provided in sub-subdivision a. of subdivision (3) of subsection (b) of this section
shall, at the junction of the public sewer line and the house or building sewer line,
install as an extension of the public sewer line a cleanout at or near the property
line that terminates at or above the nished grade. Public utilities contractors
constructing water service lines as provided in sub-subdivision a. of subdivision
(3) of subsection (b) of this section shall terminate the water service lines at a valve,
box, or meter at which the facilities from the building may be connected. Public
utilities contractors constructing re service mains for connection to re sprinkler
systems shall terminate those lines at a ange, cap, plug, or valve inside the build-
ing one foot above the nished oor. All re service mains shall comply with the
NFPA standards for re service mains as incorporated into and made applicable by
Volume V of the North Carolina Building Code.
(c) If an applicant is an individual, examination may be taken by his personal
appearance for examination, or by the appearance for examination of one or more
of his responsible managing employees. If an applicant is a copartnership, a corpo-
ration, or any other combination or organization, the examination may be taken by
one or more of the responsible managing ocers or members of the personnel of
the applicant.
(c1) If the qualier or qualifying party shall cease to be connected with the licens-
ee, then the license shall remain in full force and eect for a period of 90 days. Aer
90 days, the license shall be invalidated, however the licensee shall be entitled to
return to active status pursuant to all relevant statutes and rules promulgated by the
Board. However, during the 90-day period described in this subsection, the licens-
ee shall not bid on or undertake any additional contracts from the time such quali-
er or qualifying part v ceased to be connected with the licensee until the license is
reinstated as provided in this Article.
(d) e Board may require a new application if a qualier or qualifying party re-
quests to take an examination a third or subsequent time.
(e) A license shall expire on the rst day of January following its issuance or
renewal and shall become invalid 60 days from that date unless renewed, subject
to the approval of the Board. Re
newal applications shall be submitted with a fee
not to exceed one hundred twenty-ve dollars ($125.00) for an unlimited license,
one hundred dollars ($100.00) for an intermediate license, and seventy-ve dollars
($75.00) for a limited license. Renewal applications shall be accompanied by evi-
dence of continued nancial responsibility and evidence of satisfactory completion
of continuing education as required by G.S. 87-10.2. Renewal applications received
by the Board on or aer the rst day of January shall be accompanied by a late pay-
ment of ten dollars ($10.00) for each month or part aer January.
9
(f) Aer a license has been invalid for four years, a licensee shall not be permitted
to renew the license, and the license shall be deemed archived. If a licensee wishes
to be relicensed subsequent to the archival of the license, the licensee shall fulll
all requirements of a new applicant as set forth in this section. Archived license
numbers shall not be renewed.
§87-10.1. Licensing of
nonresidents.
(a) Denitions. e following denitions apply in this section:
(1) Delinquent income tax debt. e amount of income tax due as stat-
ed in a nal notice of assessment issued to a taxpayer by the Secretary
of Revenue when the taxpayer no longer has the right to contest the
amount.
(2) Foreign corporation—Dened in G.S. 55 1-40.
(3) Foreign entity—A foreign corporation, a foreign limited liability compa-
ny, or a foreign partnership.
(4) Foreign limited liability company—Dened in G.S. 57C 1-03.
(5) Foreign partnership—Either of the following that does not have a perma-
nent place of business in this State:
a. A foreign limited partnership as dened in G.S. 59-102.
b. A general partnership formed under the laws of a jurisdiction other
than this State.
(b) Licensing. e Board shall not issue a certicate of license for a foreign cor-
poration unless the corporation has obtained a certicate of authority from the
Secretary of State pursuant to Article 15 of Chapter 55 of the General Statutes. e
Board shall not issue a certicate of license for a foreign limited liability company
unless the company has obtained a certicate of authority from the Secretary of
State pursuant to Article 7 of Chapter 57C of the General Statutes.
(c) Information. Upon request, the Board shall provide the Secretary of Revenue
on an annual basis the name, address, and tax identication number of every non-
resident individual and foreign entity licensed by the Board. e information shall
be provided in the format required by the Secretary of Revenue.
(d) Delinquents. If the Secretary of Revenue determines that any nonresident
individual or foreign corporation licensed by the Board, a member of any foreign
limited liability company licensed by the Board, or a partner in any foreign part-
nership licensed by the Board, owes a delinquent income tax debt, the Secretary of
Revenue may notify the Board of these nonresident individuals and foreign entities
and instruct the Board not to renew their certicates of license. e Board shall
not renew the certicate of license of such nonresident individual or foreign entity
identied by the Secretary of Revenue unless the Board receives a written statement
from the Secretary that the debt either has been paid or is being paid pursuant to
an installment agreement.
§87-10.2. Continuing
Education.
(a) As a condition of license renewal, at least one qualier or qualifying party
of a licensee holding a building contractor, residential contractor, or unclassied
contractor license classication shall complete, on an annual basis, eight hours of
continuing education approved in accordance with this section. Where an entity
holding a building contractor, residential contractor, or unclassied contractor li-
cense classication has multiple qualiers or qualifying parties, at least one quali-
er or qualifying party of the licensee shall complete this requirement for the license
to remain valid.
10
(b) Of the eight hours of annual continuing education required by this section, two
hours shall be a mandatory course approved by the Board and the remaining six
hours shall be elective courses approved by the Board. Each qualier or qualifying
party shall complete the mandatory course each year. Each qualier or qualifying
party may accumulate and carry forward up to four hours of elective course credit
to the next calendar year. e Board shall evaluate and approve:
(1) e content of continuing education courses.
(2) Accreditation of continuing education sponsors and programs.
(3) Computation of credit.
(4) General compliance procedures.
(c) All prospective providers of the mandatory course shall attend a training pro-
gram established, approved, and administered by the Board to ensure the quality
and consistency of mandatory course information. All prospective providers of
elective courses shall submit course materials and instructor qualications for
Board evaluation, approval, and accreditation.
(d) Continuing education credit hours may only be given for courses that are
taught live by an instructor approved by the Board. To receive credit, a qualier
or qualifying party shall attend and view the live teaching of the course and shall
certify this requirement in the manner required by the Board. Only the period of
live instruction shall apply to the satisfaction of the continuing education require-
ment established by this section. Continuing education providers shall certify the
attendance of course attendees and shall transmit the qualier or qualifying party’s
certication to the Board. For the purposes of this subsection, “live instruction”
includes credit hours presented by video or by Internet transmission of a previous-
ly recorded and approved presentation by an approved instructor or instructors
provided the presentation is either proctored by the approved sponsor or contains
safeguards as approved by the Board that allow the approved sponsor to certify that
the qualier or qualifying party has viewed the presentation. e Board shall im-
plement procedures to ensure that qualiers and qualifying parties may satisfy all
of the continuing education requirements of this section through approved courses
oered by approved providers by Internet transmission.
(e) False certication of attendance shall be grounds for the suspension or revo-
cation of the course provider’s privilege to provide courses in this State. e Board
may take disciplinary action against any licensee on account of a false certication
of attendance by that licensee’s qualier or qualifying party at any continuing edu-
cation course.
(f) e Board shall maintain and distribute to licensees and qualiers, as appropri-
ate, records of the educational coursework successfully completed by each qualier
or qualifying party, including the subject matter and the number of hours of each
course.
(g) Continuing education requirements shall begin on January 1 of any calendar
year and shall be completed by November 30 of that calendar year. e Board shall
establish a 90-day grace period following November 30 of each calendar year for
any qualier or qualifying party who has failed to complete the continuing educa-
tion requirement. Failure of the qualier or qualifying party of the entity holding a
building contractor, residential contractor, or unclassied contractor license classi-
cation to satisfy the annual continuing education requirement by the expiration of
the grace period shall result in the license of the entity being invalidated until such
time that continuing education and all other licensing requirements have been met.
11
(h) Any licensee who chooses not to complete the annual continuing education as
required by this section may request that the Board place the licensee’s license in
an inactive status and the license shall become invalid. However, in order for the
license to be maintained as inactive, the licensee shall pay the same annual renewal
fee paid by active licensees. Should the licensee desire to return to active status, the
qualier or qualifying party of the licensee shall satisfactorily complete the follow-
ing continuing education requirements prior to seeking reinstatement:
(1) If the licensee seeks reinstatement during the rst two years aer the
license becomes inactive, the qualier or qualifying party shall complete
eight hours of continuing education, including the mandatory course
oered during the year of reinstatement.
(2) If the licensee seeks reinstatement more than two years aer the license
becomes inactive, the qualier or qualifying party shall complete 16
hours of continuing education, including the mandatory course oered
during the year of reinstatement.
(i) e Board shall establish nonrefundable fees for the purpose of administering
the continuing education program. e Board may charge the sponsor of a pro-
posed course a nonrefundable fee not to exceed twenty-ve dollars ($25.00) per
credit hour for the initial review of the course and a nonrefundable fee of twelve
dollars and y cents ($12.50) per credit hour for the annual renewal of a course
previously approved. e Board shall require an approved course provider to pay
a fee, not to exceed ve dollars ($5.00) per credit hour per qualier or qualifying
party, for each qualier or qualifying party completing an approved continuing
education course conducted by that provider.
(j) e Board may modify the continuing education requirements set forth in this
Article in cases of certied illness or undue hardship as provided for in the rules of
the Board.
(k) e Board may adopt rules to implement the requirements of this section.
§87-11. Revocation of
license; charges of
fraud, negligence,
incompetency, etc.;
hearing thereon;
reissuance of certicate.
(a) e Board shall have the power to refuse to issue or renew or revoke, suspend,
or restrict a certicate of license or to issue a reprimand or take other disciplinary
action if a general contractor licensed under this Article is found guilty of any fraud
or deceit in obtaining a license, or gross negligence, incompetency, or misconduct
in the practice of his or her profession, or willful violation of any provision of
this Article. e Board shall also have the power to revoke, suspend, or otherwise
restrict the ability of any person to act as a qualifying party for a license to practice
general contracting, as provided in G.S.. 87-10(c), for any copartnership, corpora-
tion or any other organization or combination, if that person committed any act
in violation of the provisions of this section and the Board may take disciplinary
action against the individual license held by that person.
(a1) Any person may prefer charges of fraud, deceit, negligence, or misconduct
against any general contractor licensed under this Article. e charges shall be in
writing and sworn to by the complainant and submitted to the Board. e charges,
unless dismissed without hearing by the Board as unfounded or trivial, shall be
heard and determined by the Board in accordance with the provisions of Chapter
150B of the General Statutes.
(b) e Board shall adopt and publish guidelines, consistent with the provisions of
this Article, governing the suspension and revocation of licenses.
12
(c) e Board shall establish and maintain a system whereby detailed records are
kept regarding complaints against each licensee. is record shall include, for each
licensee, the date and nature of each complaint, investigatory action taken by the
Board, any ndings by the Board, and the disposition of the matter.
(d) e Board may reissue a license to any person, rm, or corporation whose li-
cense has been revoked: Provided, ve or more members of the Board vote in favor
of such reissuance for reasons the Board may deem sucient.
e Board shall immediately notify the Secretary of State of its ndings in the case
of the revocation of a license or of the reissuance of a revoked license.
A certicate of license to replace any certicate lost, destroyed or mutilated may be
issued subject to the rules and regulations of the Board.
(e) e Board shall be entitled to recover its reasonable administrative costs associ-
ated with the investigation and prosecution of a violation of this Article or rules or
regulations of the Board up to a maximum of ve thousand dollars ($5,000) for any
licensee or qualifying party found to have committed any of the following:
(1) Fraud or deceit in obtaining a license.
(2) Gross negligence, incompetency, or misconduct in the practice of general
contracting.
(3) Willful violation of any provision of this Article.
§87-12. Certicate evidence
of license.
e issuance of a certicate of license or limited license by this Board shall be
evidence that the person, rm, or corporation named therein is entitled to all the
rights and privileges of a licensed or limited licensed general contractor while said
license remains unrevoked or unexpired. A licensed general contractor holding a li-
cense which qualies him for work as described in G.S. 87-10 shall be authorized to
perform the said work without any additional occupational license, notwithstand-
ing the provisions of any other occupational licensing statute. A license issued by
another occupational licensing board having jurisdiction over any work described
in G.S. 87-10 shall qualify such licensee to perform the work for which the license
qualies him without obtaining the license from the General Contractors Licensing
Board. Nothing contained herein shall operate to relieve any general contractor
from the necessity of compliance with other provisions of the law requiring build-
ing permits and construction in accordance with appropriate provisions of the
North Carolina State Building Code.
§87-13. Unauthorized
practice of
contracting;
impersonating
contractor; false
certicate; giving
false evidence to
Board; penalties.
Any person, rm, or corporation not being duly authorized who shall contract for
or bid upon the construction of any of the projects or works enumerated in
G.S. 87-1, without having rst complied with the provisions hereof, or who shall
attempt to practice general contracting in the State, except as provided for in this
Article, and any person, rm, or corporation presenting or attempting to le as his
own the licensed certicate of another or who shall give false or forged evidence
of any kind to the Board or to any member thereof in maintaining a certicate of
license or who falsely shall impersonate another or who shall use an expired or
revoked certicate of license, or who falsely claims or suggests in connection with
any business activities regulated by the Board that a person, rm, or corporation is
licensed under this Chapter, and any architect or engineer who recommends to any
project owner the award of a contract to anyone not properly licensed under this
Article, shall be deemed guilty of a Class 2 misdemeanor. And the Board may, in
its discretion, use its funds to defray the expense, legal or otherwise, in the prose-
cution of any violations of this Article. No architect or engineer shall be guilty of
13
a violation of this section if his recommendation to award a contract is made in
reliance upon current written information received by him from the appropriate
Contractor Licensing Board of this State which information erroneously indicates
that the contractor being recommended for contract award is properly licensed.
§87-13.1. Board may seek
injunctive relief.
Whenever the Board determines that any person, rm or corporation has violated
or is violating any of the provisions of this Article or rules and regulations of the
Board promulgated under this Article, the Board may apply to the superior court
for a restraining order and injunction to restrain the violation; and the superior
courts have jurisdiction to grant t
he requested relief, irrespective of whether or not
criminal prosecution has been instituted or administrative sanctions imposed by
reason of the violation. e court may award the Board its reasonable costs associat-
ed with the investigation and prosecution of the violation.
§87-14. Regulations as to
issue of building
permits.
(a) Any person, rm, or corporation, upon making application to the building in-
spector or such other authority of any incorporated city, town, or county in North
Carolina charged with the duty of issuing building or other permits for the con-
struction of any building, highway, sewer, grading, or any improvement or struc-
ture where the cost thereof is to be thirty thousand dollars ($30,000) or more, shall,
before being entitled to the issuance of a permit, satisfy the following:
(1) Furnish satisfactory proof to the inspector or authority that the person
seeking the permit or another person contracting to superintend or
manage the construction is duly licensed under the terms of this Article
to carry out or superintend the construction or is exempt from licensure
under G.S. 87-1(b). If an applicant claims an exemption from licensure
pursuant to G.S.87-1(b)(2), the applicant for the building permit shall
execute a veried adavit attesting to the following:
a. at the person is the owner of the property on which the building
is being constructed or, in the case of a rm or corporation, is legally
authorized to act on behalf of the rm or corporation.
b. at the person will personally superintend and manage all aspects
of the construction of the building and that the duty will not be del-
egated to any other person not duly licensed under the terms of this
Article.
c. at the person will be personally present for all inspections re-
quired by the North Carolina State Building Code, unless the plans
for the building were drawn and sealed by an architect licensed
pursuant to Chapter 83A of the General Statutes.
e building inspector or other authority shall transmit a copy of
the adavit to the Board, who shall verify that the applicant was
validly entitled to claim the exemption under G.S. 87-1(b)(2). If the
Board determines that the applicant was not entitled to claim the ex-
emption under G.S. 87-1(b)(2), the building permit shall be revoked
pursuant to G.S. 153A-362 or G.S.160A-422.
(2) Furnish proof that the person has in eect Workers’ Compensation
insurance as required by Chapter 97 of the General Statutes.
(3) Any person, rm, or corporation, upon making application to the
building inspector or such other authority of any incorporated city, town,
or county in North Carolina charged with the duty of issuing building
permits pursuant to G.S. 160A-417(a)(1) or G.S. 153A-357(a)(1) for
any improvements for which the combined cost is to be thirty thousand
14
dollars ($30,000) or more, other than for improvements to an existing
single-family residential dwelling unit as dened in G.S. 87-15.5(7) that
the owner occupies as a residence, or for the addition of an accessory
building or accessory structure as dened in the North Carolina Uniform
Residential Building Code, the use of which is incidental to that residen-
tial dwelling unit, shall be required to provide to the building inspector
or other authority the name, physical and mailing address, telephone
number, facsimile number, and electronic mail address of the lien agent
designated by the owner pursuant to G.S. 44A-11.1(a).
(b) It shall be unlawful for the building inspector or other authority to issue or
allow the issuance of a building permit pursuant to this section unless and until
the applicant has furnished evidence that the applicant is either exempt from the
provisions of this Article and, if applicable, fully complied with the provisions of
subdivision (a)(1) of this section, or is duly licensed under this Article to carry out
or superintend the work for which permit has been applied; and further, that the
applicant has in eect Workers’ Compensation insurance as required by Chapter 97
of the General Statutes. Any building inspector or other authority who is subject to
and violates the terms of this section shall be guilty of a Class 3 misdemeanor and
subject only to a ne of not more than y dollars ($50.00).
§87-15. Copy of Article
included in
specications, bid
not considered
unless contractor
licensed.
All architects and engineers preparing plans and specications for work to be
contracted in the State of North Carolina shall include in their invitations to
bidders and in the specications a copy of this Article or such portions thereof as
are deemed necessary to convey to the invited bidder, whether he be a resident or
nonresident of this State and whether a license has been issued to him or not, the
information that it will be necessary for him to show evidence of a license before
his bid is considered.
§87-15.1. Reciprocity of
licensing.
To the extent that other states which provide for the licensing of general contrac-
tors provide for similar action, the Board in its discretion may grant licenses of the
same or equivalent classication to general contractors licensed by other states,
without written examination upon satisfactory proof furnished to the Board that
the qualications of such applicants are equal to the qualications of holders of
similar licenses in North Carolina and upon payment of the required fee.
§87-15.2. Public awareness
program.
e Board shall establish and implement a public awareness program to inform the
general public of the purpose and function of the Board.
§87-15.3. Identity of
complaining party
condential.
Once a complaint has been led with the Board against a licensee or an unlicensed
general contractor, the Board may, in its discretion, keep the identity of a complain-
ing party condential and not a public record within the meaning of Chapter 132
of the General Statutes until a time no later than the receipt of the complaint by the
full Board for a disciplinary hearing or injunctive action.
§87-15.4. Builder designations
created.
(a) A licensee who successfully completes the educational requirements for ac-
credited builder or accredited master builder, as established by the North Carolina
Builders Institute (Institute), shall be designated by the Board as a “North Carolina
Certied Accredited Residential Builder” or “North Carolina Certied Accredited
Master Residential Builder,” respectively. e Institute shall provide to the Board
written certication of those licensees who have successfully completed the re-
quirements for the designations. e certication shall remain in eect as long as:
(i) the licensee’s license is in eect pursuant to G.S. 87-10; and (ii) the licensee com-
pletes at least eight hours of continuing education each calendar year as certied by
the Institute.
15
(b) e Board shall approve for designation a licensee who has successfully com-
pleted a course of study, deemed by the Board to be equivalent to the educational
requirements under subsection (a) of this section, oered by a community college or
by another provider, and who completes the requisite number of hours of continuing
education required by the Board.
(c) e Board may use all powers granted to it under this Article to enforce the
provisions of this section and ensure that the designations created by this section are
conferred upon and used only by a licensee who complies with the provisions of this
section and any rules adopted by the Board.
SECTION 2. Any individual currently licensed by the State Licensing Board of
General Contractors (Board) who has successfully completed the requirements
of G.S. 87-15.4, as enacted by Section 1 of this act, before the eective date of this
act may be designated by the Board as a “North Carolina Certied Accredited
Residential Builder” or “North Carolina Certied Accredited Master Residential
Builder” upon submitting to the Board certication from the North Carolina
Builders Institute of successful completion of the requirements of G.S. 87-15.4.
ARTICLE 1A. HOMEOWNERS RECOVERY FUND
§87-15.5. Denitions
e following denitions apply in this Article:
(1) Applicant.—e owner or former owner of a single-family residential
dwelling unit who has suered a reimbursable loss and has led an
application for reimbursement from the Fund.
(2) Board.—e State Licensing Board for General Contractors.
(3) Dishonest conduct.—Fraud or deceit in either of the following:
(a) Obtaining a license under Article 1 of Chapter 87 of the General
Statutes.
(b) e practice of general contracting by a general contractor.
(4) Fund.—e Homeowners Recovery Fund.
(5) General contractor.—A person or other entity who meets any of the fol-
lowing descriptions:
(a) Is licensed under Article 1 of Chapter 87 of the General Statutes
(b) Fraudulently procures any building permit by presenting the license
certicate of a general contractor.
(c) Fraudulently procures any building permit by falsely impersonating a
licensed general contractor.
(6)
Reimbursable loss.—A monetary loss that meets all of the following
requirements:
(a) Results from dishonest or incompetent conduct by a general contrac-
tor in constructing or altering a single-family residential dwelling
unit.
(b) Is not paid, in whole or in part, by or on behalf of the general con-
tractor whose conduct caused the loss.
(c)
Is not covered by a bond, a surety agreement, or an insurance contract.
(7) Single-family residential dwelling unit.—A separately owned residence for
use of one or more persons as a housekeeping unit with space for eating,
16
living, and permanent provisions for cooking and sanitation, whether or
not attached to other such residences.
§87-15.6. Homeowners
Recovery Fund
(a) e Homeowners Recovery Fund is established as a special account of the
Board. e Board shall administer the Fund. e purpose of the Fund is to re-
imburse homeowners who have suered a reimbursable loss in constructing or
altering a single-family residential dwelling unit.
(b)
Whe
never a general contractor applies for the issuance of a permit for the
construction of any single-family residential dwelling unit or for the alteration of an
existing single-family residential dwelling unit, a city or county building inspector
shall collect from the general contractor a fee in the amount of ten dollars ($10.00) for
each dwelling unit to be constructed or altered under the permit. e city or county
inspector shall forward nine dollars ($9.00) of each fee collected to the Board on a
quarterly basis and the city or county may retain one dollar ($1.00) of each fee col-
lected. e Board shall deposit the fees received into the Fund. e Board may accept
donations and appropriations to the Fund. G.S. 87-7 shall not apply to the Fund.
e Board may suspend collection of this fee for any year upon a determination
that the amount in the Fund is sucient to meet likely disbursements from the
Fund for that year. e Board shall notify city and county building inspectors when
it suspends collection of the fee.
(c) e Board may adopt rules to implement this Article.
§87-15.7. Fund
Administration
(a) e Board shall determine the procedure for applying to the Board for reim-
bursement from the Fund, for processing applications, for granting requests for
reimbursement, and for the subrogation or assignment of the rights of any reim-
bursed applicant. e Board shall submit annually a report to the State Treasurer
accounting for all monies credited to and expended from the Fund.
(b) e Board may use monies in the Fund only for the following purposes:
(1)
To reimburse an applicant’s reimbursable loss aer approval by the Board.
(2) To purchase insurance to cover reimbursable losses when the Board nds
it appropriate to do so.
(3) To invest amounts in the Fund that are not currently needed to reim-
burse losses and maintain adequate reserves in the manner in which State
law allows duciaries to invest funds.
(4) To pay the expenses of the Board to administer the Fund, including em-
ployment of counsel to prosecute subrogation claims.
§87-15.8. Application for
reimbursement
(a) e Board shall prepare a form to be used to apply for reimbursement from
the Fund. Only a person whom the Board determines to meet all of the following
requirements may be reimbursed from the Fund:
(1)
Has suered a reimbursable loss in the construction or alteration of a sin-
gle-
family residential dwelling unit owned or previously owned by that per-
son.
(2) Did not, directly or indirectly, obtain the building permit in the person’s
own name or did use a general contractor.
(3) Has exhausted all civil remedies against the general contractor whose
conduct caused the loss and, if applicable, the general contractor’s estate,
and has obtained a judgment against the general contractor that remains
unsatised. is requirement is waived if the person is prevented from
17
ling suit or obtaining a judgment against the contractor due to the auto-
matic stay provision of section 362 of the U.S. Bankruptcy Code.
(4) Has complied with the applicable rules of the Board.
(b) e Board shall investigate all applications for reimbursement and may reject
or allow part or all of a claim based on the amount of money in the Fund. e
Board shall have complete discretion to determine the order, amount, and manner
of payment of approved applications. All payments are a matter of privilege and
not of right and no person has a right to reimbursement from the Fund as a third
party beneciary or otherwise. No attorney shall be compensated by the Board for
prosecuting an application before it.
§87-15.9. Subrogation for
reimbursement made
e Board is subrogated to an applicant who is reimbursed from the Fund in the
amount reimbursed and may bring an action against the general contractor whose
conduct caused the reimbursable loss, the general contractor’s assets, or the general
contractor’s estate. e Board may enforce any claims it may have for restitution or
otherwise, and may employ and compensate consultants, agents, legal counsel, and
others it nds necessary and appropriate to carry out its authority under this section.
Sec. 2 is act becomes eective October 1, 1991, and applies to reimbursable
losses caused by the dishonest or incompetent conduct of a general contractor
that occurs on or aer that date.
OTHER GENERAL STATUTES
§14-401.1. Misdemeanor
to tamper with
examination
questions
Any person who, without authority of the entity who prepares or administers the
examination, purloins, steals, buys, receives, or sells, gives or oers to buy, give, or
sell any examination questions or copies thereof of any examination provided and
prepared by law shall be guilty of a Class 2 misdemeanor. (1917, C. 146, s. 10;
C.S., s. 5658; 1969, c. 1224, s. 3; 1991, c.360, s. 2; 1993, c. 539, s. 271; 1994, Ex. Sess.,
C. 24, s. 14(c).)
§22C-2. Performance by
subcontractor
Performance by a subcontractor in accordance with the provisions of its contract
shall entitle it to payment from the party with whom it contracts. Payment by the
owner to a contractor is not a condition precedent for payment to a subcontractor
and payment by a contractor to a subcontractor is not a condition precedent for
payment to any other subcontractor, and an agreement to the contrary is unen-
forceable. (1987 (Reg. Sess., 1988), c. 946; 1991, c. 620.)
§93B-3. Register of
Persons licensed;
information as to
licensed status of
individuals
Each occupational licensing board shall prepare a register of all persons currently
licensed by the board and shall supplement said register annually by listing the
changes made in it by reason of new licenses issued, licenses revoked or suspended,
death, or any other cause. e board shall, upon request of any citizen of the State,
inform the requesting person as to the licensed status of any individual.
§93B-4. Audit of
occupational
licensing boards;
payment of costs
(a) e State Auditor shall audit occupational licensing boards from time to
time to ensure their proper operation. e books, records, and operations of each
occupational licensing board shall be subject to the oversight of the State Auditor
pursuant to Article 5A of Chapter 147 of the General Statutes. In accordance with
G.S. 147-64.7
(b) e State Auditor may contract with independent professionals to meet the
requirements of this section. (b) Each occupational licensing board with a budget
of at least y thousand dollars ($50,000) shall conduct an annual nancial audit of
its operations and provide a copy to the State Auditor.
18
§93B-8. Examination
Procedures
(a) Each applicant for an examination given by any occupational licensing board
shall be informed in writing or print of the required grade for passing the examina-
tion prior to the taking of such examination.
(b) Each applicant for an examination given by any occupational licensing board
shall be identied, for purposes of the examination, only by number rather than
by name.
(c) Each applicant who takes an examination given by any occupational licensing
board, and does not pass such examination, shall have the privilege to review his
examination in the presence of the board or a representative of the board. Except
as provided in this subsection, an occupational licensing board shall not be re-
quired to disclose the contents of any examination or of any questions which
have appeared thereon, or which may appear thereon in the future.
(d) Notwithstanding the provisions of this section, under no circumstances shall
an occupational licensing board be required to disclose to an applicant questions or
answers to tests provided by recognized testing organizations pursuant to contracts
which prohibit such disclosures.
§93B-8.1 Use of Criminal
History Records
(a) e following denitions apply in this section:
(1) Applicant.—A person who makes application for licensure from an occu-
pational licensing board.
(2) Board.—An occupational licensing board as dened in G.S. 93B-1.
(3) Criminal history record.—A State or federal history of conviction of a
crime, whether a misdemeanor or felony, that bears upon an applicant’s
or a licensee’s tness to be licensed or disciplined.
(4) Licensee.—A person who has obtained a license to engage in or represent
himself or herself to be a member of a particular profession or occupation.
(b) Unless federal law governing a particular board provides otherwise, a board
may deny an applicant on the basis of a conviction of a crime only if the board
nds that the applicant’s criminal conviction history is directly related to the duties
and responsibilities for the licensed occupation or the conviction is for a crime that
is violent or sexual in nature. Notwithstanding any other provision of law, a board
shall not automatically deny licensure on the basis of an applicant’s criminal histo-
ry, and no board may deny an applicant a license based on a determination that a
conviction is for a crime of moral turpitude. e board shall make its determina-
tion based on the factors specied in subsection (b1).
(b1) Before a board may deny an applicant a license due to a criminal conviction
under subsection (b) of this section, the board must specically consider all of the
following factors:
(1) e level and seriousness of the crime.
(2) e date of the crime.
(3) e age of the person at the time of the crime.
(4) e circumstances surrounding the commission of the crime, if known.
(5) e nexus between the criminal conduct and the prospective duties of
the applicant as a licensee.
(6) e prison, jail, probation, parole, rehabilitation, and employment
records of the applicant since the date the crime was committed.
19
(6a) e completion of, or active participation in, rehabilitative drug or
alcohol treatment.
(6b) A Certicate of Relief granted pursuant to G.S. 15A-173.2.
(7) e subsequent commission of a crime by the applicant.
(8)
Any adavits or other written documents, including character references.
(b2) If the board denies an applicant a license under this section, the board shall:
(1)
Make written ndings specifying the factors in subsection (b1) of this
section the board deemed relevant to the applicant and explaining the
reason for the denial. e board’s presiding ocer must sign the ndings.
(2) Provide or serve a signed copy of the written ndings to the applicant
within 60 days of the denial.
(3) Retain a signed copy of the written ndings for no less than ve years.
(b3) Each board shall include in its application for licensure and on its public Web
site all of the following information:
(1) Whether the board requires applicants to consent to a criminal history
record check.
(2) e factors under subsection (b1) of this section which the board shall
consider when making a determination of licensure.
(3) e appeals process pursuant to Chapter 150B of the General Statutes if
the board denies an applicant licensure in whole or in part because of a
criminal conviction.
(b4) If a board requires an applicant to submit a criminal history record, the board
shall require the provider of the criminal history record to provide the applicant
with access to the applicant’s criminal history record or otherwise deliver a copy
of the criminal history record to the applicant. If an applicant’s criminal history
includes matters that will or may prevent the board from issuing a license to the
applicant, the board shall notify the applicant in writing of the specic issues in suf-
cient time for the applicant to provide additional documentation supporting the
application for consideration by the board prior to any nal decision to deny the
application. Aer being notied of any potential issue with licensure due to crim-
inal conviction(s), an applicant shall have 30 days to respond by either correcting
any inaccuracy in the criminal history record or submitting evidence of mitigation
or rehabilitation for consideration by the board.
(b5) If, following a hearing, a board denies an application for licensure, the board’s
written order shall include specic reference to any criminal conviction(s) con-
sidered as part or all of any basis for the denial and the rationale for the denial, as
well as a reference to the appeal process and the applicant’s ability to reapply. No
applicant shall be restricted from reapplying for licensure for more than two years
from the date of the most recent application.
(b6) Notwithstanding any other provisions in the law, an individual with a crimi-
nal history may petition a board at any time, including before an individual starts
or completes any mandatory education or training requirements, for a predetermi-
nation of whether the individual’s criminal history will likely disqualify the individ-
ual from obtaining a license. is petition shall include a criminal history record
report obtained by the individual from a reporting service designated by the board,
the cost of which shall be borne by the applicant. Criminal history records relat-
ing to a predetermination petition shall not be considered public records under
20
Chapter 132 of the General Statutes. A board may predetermine that the petition-
er’s criminal history is likely grounds for denial of a license only aer the board has
applied the requirements of subsection (b) of this section. Each board shall delegate
authority for such a predetermination to its Executive Director or their equivalent,
or a committee of the board, so that the predeterminations can be made in a timely
manner. No board member having served on a predetermination committee for
an individual shall be required to recuse in any later determinations or hearings
involving the same applicant. e board shall inform the individual of the board’s
determination within 45 days of receiving the petition from the individual. e
board may charge a fee to recoup its costs not to exceed forty-ve dollars ($45.00)
for each petition. If the board determines an applicant would likely be denied licen-
sure based on their criminal history, the board shall notify the individual in writing
of the following:
(1) e grounds and reasons for the predetermination.
(2) at the petitioner has the right to complete any requirements for licen-
sure and apply to the board and have their application considered by the
board under its application process.
(3) at further evidence of rehabilitation will be considered upon applica-
tion.
(b7) A predetermination made under this section that a petitioner’s criminal
history would likely prevent them from licensure is not a nal agency decision and
shall not entitle the individual to any right to judicial review under Article 4 of
Chapter 150B of the General Statutes.
(b8) A predetermination made under subsection (b6) of this section that a peti-
tioner is eligible for a license shall be binding if the petitioner applies for licensure
and fullls all other requirements for the occupational license and the applicant’s
submitted criminal history was correct and remains unchanged at the time of
application for a license.
(c) e board may deny licensure to an applicant who refuses to consent to a crim-
inal history record check or use of ngerprints or other identifying information
required by the State or National Repositories of Criminal Histories.
(d) is section does not apply to e North Carolina Criminal Justice Education
and Training Standards Commission and the North Carolina Sheris’ Education
and Training Standards Commission.”
§93B-8.2. Prohibit licensees
from serving as
investigators
No occupational licensing board shall contract with or employ a person licensed by
the board to serve as an investigator or inspector if the licensee is actively practic-
ing in the profession or occupation and is in competition with other members of
the profession or occupation over which the board has jurisdiction. Nothing in t
his
section shall prevent a board from (i) employing licensees who are not otherwise
employed in the same profession or occupation as investigators or inspectors or for
other purposes or (ii) contracting with licensees of the board to serve as expert wit-
nesses or consultants in cases where special knowledge and experience is required,
provided that the board limits the duties and authority of the expert witness or con-
sultant to serving as an information resource to the board and board personnel.
§93B-9. Age Requirement
Except certications issued by the North Carolina Criminal Justice Education and
Training Standards Commission and the North Carolina Sheris’ Education and
Training Standards Commission pursuant to Chapters 17C, 17E, 74E, and 74G of
the General Statutes, no occupational licensing board may require that an individ
ual
21
be more than 18 years of age as a requirement for receiving a license with the
following exceptions: the North Carolina Criminal Justice Education and Training
Standards Commission and the North Carolina Sheris’ Education and Training
Standards Commission may establish a higher age as a requirement for holding
certication through either Commission.
§93B-13. Revocation when
licensing privilege
forfeited for
nonpayment of child
support or for failure
to comply with
subpoena
(a) Upon receipt of a court order, pursuant to G.S. 50-13.12 and G.S. 110-142.1, re-
voking the occupational license of a licensee under its jurisdiction, an occupational
licensing board shall note the revocation in its records, report the action within 30
days to the Department of Health and Human Services, and follow the normal post
revocation rules and procedures of the board as if the revocation had been ordered
by the board. e revocation shall remain in eect until the board receives certi-
cation by the clerk of superior court or the Department of Health and Human
Services in an IV-D case that the licensee is no longer delinquent in child support
payments, or, as applicable, that the licensee is in compliance with or is no longer
subject to the subpoena that was the basis for the revocation.
(b) Upon receipt of notication from the Department of Health and Human
Services that a licensee under an occupational licensing board’s jurisdiction has
forfeited the licensee’s occupational license pursuant to G.S. 110-142.1, then the
occupational licensing board shall send a notice of intent to revoke or suspend the
occupational license of that licensee as provided by G.S. 110-142.1(d). If the license
is revoked as provided by the provisions of G.S. 110-142.1, the revocation shall re-
main in eect until the board receives certication by the designated representative
or the child support enforcement agency that the licensee is no longer delinquent
in child support payments, or, as applicable, that the licensee is in compliance with
or no longer subject to a subpoena that was the basis for the revocation.
(c) If at the time the court revokes a license pursuant to subsection (a) of this sec-
tion, or if at the time the occupational licensing board revokes a license pursuant
to subsection (b) of this section, the occupational licensing board has revoked the
same license under the licensing board’s disciplinary authority over licensees under
its jurisdiction, and that revocation period is greater than the revocation period
resulting from forfeiture pursuant to G.S. 50-13.12 or G.S. 110-142.1 then the revo-
cation period imposed by the occupational licensing board applies.
(d) Immediately upon certication by the clerk of superior court or the child
support enforcement agency that the licensee whose license was revoked pursu-
ant to subsection (a) or (b) of this section is no longer delinquent in child support
payments, the occupational licensing board shall reinstate the license. Immediately
upon certication by the clerk of superior court or the child support enforcement
agency that the licensee whose license was revoked because of failure to comply
with a subpoena is in compliance with or no longer subject to the subpoena, the
occupational licensing board shall reinstate the license. Reinstatement of a license
pursuant to this section shall be made at no additional cost to the licensee.
§93B-14. Information on
applicants for
licensure
Every occupational licensing board shall require applicants for licensure to provide
to the Board the applicant’s social security number. is information shall be treat-
ed as condential and may be released only as follows:
(1) To the State Child Support Enforcement Program of the Department
of Health and Human Services upon its request and for the purpose of
enforcing a child support order.
(2) To the Department of Revenue for the purpose of administering the
State’s tax laws.
22
§93B-15 Payment of License
fees by members of
the Armed Forces;
board waiver rules
(a) An individual who is serving in the Armed Forces of the United States and to
whom G.S. 105-249.2 grants an extension of time to le a tax return is granted an
extension of time to pay any license fee charged by an occupational licensing board
as a condition of retaining a license granted by the board. e extension is for the
same period that would apply if the license fee were a tax.
(b) Occupational licensing boards shall adopt rules to postpone or waive continu-
ing education, payment of renewal and other fees, and any other requirements or
conditions relating to the maintenance of licensure by an individual who is current-
ly licensed by and in good standing with the board, is serving in the Armed Forces
of the United States, and to whom G.S. 105-249.2 grants an extension of time to le
a tax return.
§93B-15.1. Licensure for
individuals with
military training
and experience;
prociency
examination;
licensure by
endorsement for
military spouses;
temporary license
(a) Except as provided by subsection (a2) of this section, and notwithstanding any
other provision of law, an occupational licensing board, as dened in G.S. 93B-I,
shall issue a license, certication, or registration to a military-trained applicant
to allow the applicant to lawfully practice the applicant’s occupation in this State
if, upon application to an occupational licensing board, the applicant satises the
following conditions:
(1) Has been awarded a military occupational specialty and has done all of
the following at a level that is substantially equivalent to or exceeds the
requirements for licensure, certication, or registration of the occupa-
tional licensing board from which the applicant is seeking licensure,
certication, or registration in this State: completed a military program
of training, completed testing or equivalent training and experience as
determined by the board, and performed in the occupational specialty.
(2) Has engaged in the active practice of the occupation for which the person
is seeking a license, certication, or permit from the occupational licens-
ing board in this State for at least two of the ve years preceding the date
of the application under this section.
(3) Has not committed any act in any jurisdiction that would have constitut-
ed grounds for refusal, suspension, or revocation of a license to practice
that occupation in this State at the time the act was committed.
(4) Pays any fees required by the occupational licensing board for which the
applicant is seeking licensure, certication, or registration in this State.
(a1) No later than 30 days following receipt of an application, an occupational
licensing board shall notify an applicant when the applicant’s military training or
experience does not satisfy the requirements for licensure, certication, or registra-
tion and shall specify the criteria or requirements that the board determined that
the applicant failed to meet and the basis for that determination.
(a2) An occupational licensing board, as dened in G.S. 93B-1, shall issue a license,
certication, or registration to a military-trained applicant to allow the applicant
to lawfully practice the applicant’s occupation in this State if the military-trained
applicant, upon application to the occupational licensing board:
(1) Presents ocial, notarized documentation, such as a U.S. Department of
Defense Form 214 (DD-214), or similar substantiation, attesting to the
applicant’s military occupational specialty certication and experience in
an occupational eld within the board’s purview: and
(2) Pa
sses a prociency examination oered by the board to military-trained
applicants in lieu of satisfying the conditions set forth in subsection (a) of
23
this section: however, if an applicant fails the prociency examination, then
the applicant may be required by the board to satisfy those conditions.
In any case where a prociency examination is not oered routinely by
an occupational licensing board, the board shall design a fair prociency
examination for military-trained applicants to obtain licensure, certi-
cation, or registration under this section. If a prociency examination is
oered routinely by an occupational licensing board, that examination
shall satisfy the requirements of this section.
(b) Notwithstanding any other provision of law, an occupational licensing board,
as dened in G.S. 93B-1, shall issue a license, certication, or registration to a mil-
itary spouse to allow the military spouse to lawfully practice the military spouse’s
occupation in this State if, upon application to an occupational licensing board, the
military spouse satises the following conditions:
(1) Holds a current license, certication, or registration from another juris-
diction, and that jurisdiction’s requirements for licensure, certication, or
registration are substantially equivalent to or exceed the requirements for
licensure, certication, or registration of the occupational licensing board
for which the applicant is seeking licensure, certication, or registration
in this State.
(2) Can demonstrate competency in the occupation through methods as de-
termined by the Board, such as having completed continuing education
units or having had recent experience for at least two of the ve years
preceding the date of the application under this section.
(3) Has not committed any act in any jurisdiction that would have constitut-
ed grounds for refusal, suspension, or revocation of a license to practice
that occupation in this State at the time the act was committed.
(4) Is in good standing and has not been disciplined by the agency that had
jurisdiction to issue the license, certication, or permit.
(5) Pays any fees required by the occupational licensing board for which the
applicant is seeking licensure, certication, or registration in this State.
(c) All relevant experience of a military service member in the discharge of o-
cial duties or, for a military spouse, all relevant experience, including fulltime and
part-time experience, regardless of whether in a paid or volunteer capacity, shall be
credited in the calculation of years of practice in an occupation as required under
subsection (a) or (b) of this section.
(c1) Each occupational licensing board shall publish a document that lists the
specic criteria or requirements for licensure, registration, or certication by
the board, with a description of the criteria or requirements that are satised by
military training or experience as provided in this section, and any necessary
documentation needed for obtaining the credit or satisfying the requirement. e
information required by this subsection shall be published on the occupation-
al licensing board’s Web site and the Web site of the North Carolina Division of
Veterans Aairs.
(d) A nonresident licensed, certied, or registered under this section shall be enti-
tled to the same rights and subject to the same obligations as required of a resident
licensed, certied, or registered by an occupational licensing board in this State.
(e) Nothing in this section shall be construed to apply to the practice of law as
regulated under Chapter 84 of the General Statutes.
24
(f) An occupational licensing board may issue a temporary practice permit to
a milit
ary-trained applicant or a military spouse licensed, certied, or registered
in another jurisdiction while the military-trained applicant or military spouse is
satisfying the requirements for licensure under subsection (a) or (b) of this section
if that jurisdiction has licensure, certication, or registration standards substantially
equivalent to the standards for licensure, certication, or registration of an occupa-
tional licensing board in this State. e military-trained applicant or military spouse
may practice under the temporary permit until a license, certication, or registra-
tion is granted or until a notice to deny a license, certication, or registration is
issued in accordance with rules adopted by the occupational licensing board.
(g) An occupational licensing board may adopt rules necessary to implement this
section. Nothing in this section shall be construed to prohibit a military-trained
applicant or military spouse from proceeding under the existing licensure, certi-
cation, or registration requirements established by an occupational licensing board
in this State.
(h) For the purposes of this section, the State Board of Education shall be con-
sidered an occupational licensing board when issuing teacher licenses under
G.S.115C-296.
(i) For the purposes of this section, the North Carolina Medical Board shall not
be considered an occupational licensing board.
(j) For the purposes of this section, the North Carolina Medical Board shall not be
considered an occupational licensing board.
§136-28.14. Project contractor
licensing
requirements
(See also Exception at
G.S. §87-1.2)
e letting of contracts under this Chapter for the following types of projects
shall not be subject to the licensing requirements of Article 1 of Chapter 87 of the
General Statutes:
(1) Routine maintenance and minor repair of pavements, bridges, roadside
vegetation and plantings, drainage systems, concrete sidewalks, curbs,
gutters, and rest areas.
(2) Installation and maintenance of pavement markings and markers,
ground mounted signs, guardrail, fencing, and roadside vegetation
and plantings.
§153A-360. Inspections of
work in progress
Subject to the limitation imposed by G.S. 153A-352(b), as the work pursuant to a
permit progresses, local inspectors shall make as many inspections of the work as
may be necessary to satisfy them that it is being done according to the provisions
of the applicable State and local laws and local ordinances and regulations and of
the terms of the permit. In exercising this power, each member of the inspection
department has a right, upon presentation of proper credentials, to enter on any
premises within the territorial jurisdiction of the department at any reasonable
hour for the purposes of inspection or other enforcement action. If a permit has
been obtained by an owner exempt from licensure under G.S. 87-1(b)(2), no in-
spection shall be conducted without the owner being personally present, unless the
plans for the building were drawn and sealed by an architect licensed pursuant to
Chapter 83A of the General Statutes. (1969, c. 1066, s. 1; 1973, c. 822, s. 1; 2011-
376, s. 3; 2015-145, s. 1(a).)
§160A-420. Inspections of
work in progress
Subject to the limitation imposed by G.S. 160A-412(b), as the work pursuant to a
permit progresses, local inspectors shall make as many inspections thereof as may
be necessary to satisfy them that the work is being done according to the provisions
of any applicable State and local laws and of the terms of the permit. In exercising
25
this power, members of the inspection department shall have a right to enter on
any premises within the jurisdiction of the department at all reasonable hours for
the purposes of inspection or other enforcement action, upon presentation of prop-
er credentials. If a permit has been obtained by an owner exempt from licensure
under G.S. 87-1(b)(2), no inspection shall be conducted without the owner being
personally present, unless the plans for the building were drawn and sealed by an
architect licensed pursuant to Chapter 83A of the General Statutes. (1969, c. 1065,
s. 1; 1971, c. 698, s. 1; 2011-376, s. 4; 2015-145, s. 1(b).)
26
RULES & REGULATIONS
North Carolina Licensing Board for General Contractors
NORTH CAROLINA ADMINISTRATIVE CODE TITLE 21; CHAPTER 12
Title 21; Subchapter 12A—General Provisions
Statutory Authority;
Chapter 87,
Section 1-15.9,
and Chapter 150B(3)
of the General Statutes
of North Carolina
SECTION .0100
ORGANIZATION OF BOARD
.0101 Identication
.0102 General Purpose of Board
.0103 Structure of Board
SECTION .0200
LICENSING REQUIREMENTS
.0201 Denitions
.0202 Classication
.0203 Limitation of License
.0204 License Limitations; Eligibility
.0205 Qualifer
.0206 Joint Venture
.0207 Joint Venture
.0208 Construction Management
.0209 Application
.0210 Public Building Projects
.0211 Multiunit Buildings
SECTION .0300
APPLICATION PROCEDURE
.0301 General
.0302 Request
.0303 Application for Licensure
.0304 Fees
.0305 Filing Address
.0306 Filing Deadline
.0307 Notice of Approval
.0308 Character References
.0309 Licensure for Military-Trained
Applicant; Licensure for Military
Spouse
SECTION .0400
EXAMINATION
.0401 General
.0402 Subject Matter
.0403 Number of Examinations Taken
.0404 Passing Grade
.0405 Examination Schedule
.0406 Filing Deadline
.0407 Re-examination
.0408 Person Taking Examination
.0409 Review Workshop Charge
.0410 Failing Examination
SECTION .0500
LICENSE
.0501 License Granted
.0502 Temporary License
.0503 Renewal of License
.0504 Increase in Limitation
.0505 Maintaining Current Address;
Notication
.0506 Charge for Status of Licensure
.0507 Fund Suspension
SECTION .0600
RULE-MAKING PROCEDURES
.0601 Petitions
.0602 Notice
.0603 Hearings
.0604 Emergency Rules
.0605 Declaratory Rulings
.0606 Rule-Making
SECTION .0700
BOARD DISCIPLINARY PROCEDURES
.0701 Improper Practice
.0702 Unlicensed Practice
.0703 Fee for Submittal of Bad Check
SECTION .0800
CONTESTED CASES
.0801 General Rules
.0802 Opportunity for License or
Application to have Hearing
.0803 Notice of Contemplated Board
Action: Request for Hearing
.0804 Request for Hearing
.0805 Granting Hearing Request
.0806 Notice of Hearing
.0807 Who Shall Hear Contested Case
.0808 Place of Hearing
.0809 Intervention
.0810 Hearing Ocers
.0811 Conduct of Contested Cases
27
.0812 Discovery
.0813 Depositions
.0814 Conduct of Hearing
.0815 Decision of Board
.0816 Administrative Hearing
.0817 Right to Hearing
.0818 Request for Hearing
.0819 Granting or Denying Hearing
Request
.0820 Notice of Hearing
.0821 Who Shall Hear Contested Cases
.0822 Informal Procedures
.0823 Petition for Intervention
.0824 Types of Intervention
.0826 Failure to Appear
.0827 Subpoenas
.0828 Witnesses
.0829 Final Decision
.0830 Proposals for Decisions
SECTION .0900
HOMEOWNERS RECOVERY FUND
.0901 Denitions
.0902 Management of Fund
.0903 Application for Payment
.0904 Filing Deadline and Service
.0905 Multiple Claims
.0906 Processing of Claim Application
.0907 Homeowners Recovery Fund
Hearing
.0908 Order Directing Payment From
Fund
.0909 Settlement of Claims
.0910 Limitations; Pro Rata
Distribution
.0911 Subrogation of Rights
.0912 Actions Against General
Contractor
Title 21; Subchapter 12B—Continuing Education
SECTION .0100
GENERAL
.0101 General
.0102 Continuing Education Credit
.0103 Continuing Education Records;
Audit
.0104 Extension of Time
SECTION .0200
PROVIDERS
.0201 Application For Initial Approval
Of Continuing Education
Provider
.0202 Expiration And Renewal of
Provider Approval
.0203 Denial Or Withdrawal of
Provider Approval
.0204 Attendance; Roster Reports and
Certicates
.0205 Course Scheduling
.0206 Records And Board Review
SECTION .0300
COURSES
.0301 Course Requirements
.0302 Approval And Renewal of
Elective Course
.0303 Mandatory Course
SECTION .0400
INSTRUCTORS
.0401 Application And Criteria For
Initial Instructor Approval
.0402 Renewal And Expiration of
Instructor Approval
.0403 Denial Or Withdrawal of
Instructor Approval
28
SUBCHAPTER 12AGENERAL PROVISIONS
SECTION .0100 ORGANIZATION AND RESPONSIBILITIES OF BOARD
21 NCAC 12A .0101
Identication
e State Licensing Board for General Contractors, hereinaer referred to as
the “North Carolina Licensing Board for General Contractors” or “the Board,” is
located in Raleigh, North Carolina; its mailing address is 5400 Creedmoor Road,
Raleigh, North Carolina 27612. e Board website is www.nclbgc.org.
History Note: Authority G.S. 87 2; E. February 1, 1976; Amended E. June 23,
1977; Readopted E. September 26, 1977; Amended E. December 1,
1985; January 1, 1983; Pursuant to G.S. 150B-21.3A, rule is necessary
without substantive public interest E. July 23, 2016; Amended E.
April 1, 2018; Recodied from 21 NCAC 12 .0101 E. January 2, 2020.
21 NCAC 12A .0102
General Purpose of Board
(a) e purpose of the Board is to regulate persons who engage in activities which
constitute the practice of general contracting as dened in G.S. 87-1 in order to
safeguard the life, health and property of the people of North Carolina as well as
promote the public welfare.
(b) e Board regulates the practice of general contracting by:
(1) determining the qualications of persons seeking to enter the practice
of general contracting and granting to those persons who have met the
statutory requirements the privilege of entering the practice of general
contracting;
(2) enforcing the provisions of the North Carolina General Statutes pertain-
ing to general contractors; and
(3) enforcing the Board’s Rules, which are designed to ensure a high degree
of competence in the practice of general contracting.
History Note: Authority G.S. 87-1; 87-2; E. February 1, 1976; Readopted E.
September 26, 1977; Amended E. May 1, 1989; Pursuant to
G.S. 150B-21.3A, rule is necessary without public interest E. July 23,
2016; Recodied from 21 NCAC 12 .0102 E. January 2, 2020.
21 NCAC 12A .0103
Structure of Board
(a) Ocers. Annually, during the April meeting, the Board shall elect from its
members a Chairman and Vice-Chairman. e Chairman shall preside over all
meetings of the Board and perform other duties as he or she may be directed to
do by the Board. e Vice-Chairman shall function as Chairman if the Chairman
is unavailable.
(b) Secretary-Treasurer. In addition to those duties and responsibilities required
of him or her by G.S. 87-8, the Secretary-Treasurer, referred to as “Secretary-
Treasurer” or “Executive Director,” as the Board’s Chief Administrative Ocer, has
the responsibility and power to:
(1) employ the clerical and legal services necessary to assist the Board in
carrying out the requirements of the North Carolina General Statutes;
(2) purchase or rent whatever oce equipment, stationery, or other miscella-
neous articles as are necessary to keep the records of the Board;
(3) make expenditures from the funds of the Board by signing checks, or
authorizing the designee of the Secretary-Treasurer to sign checks, for
29
expenditures aer the checks are signed by the Chairman or
Vice-Chairman; and
(4) do such other acts as may be required of him or her by the Board.
(c) Ocial Meetings of the Board.
(1) Regular Meetings. Regular meetings shall be held during January, April,
July and October of each year at the Board’s oce or at any other place so
designated by the Board.
(2) Special Meetings. Special meetings shall be called and conducted in
accordance with Article 33C of Chapter 143 of the North Carolina
General Statutes.
(3) Notice of Meetings. Notice of all ocial meetings of the Board shall
be given pursuant to Article 33C of Chapter 143 of the North Carolina
General Statutes.
History Note: Authority G.S. 87-2; 87-4; 87-6; 87-7; E. February 1, 1976;
Readopted E. September 26, 1977; Amended E. April 1, 2014;
August 1, 2002; January 1, 1992; May 1, 1989; January 1, 1983;
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive
public interest E. July 23, 2016; Amended E. April 1, 2018;
Recodied from 21 NCAC 12 .0103 E. January 2, 2020.
SECTION .0200 — LICENSING REQUIREMENTS
21 NCAC 12A .0201
Denitions
e following denitions shall apply to the Rules in this Chapter:
(1) Completion: As used in G.S. 87-1(b), occurs upon issuance of a certi-
cate of occupancy by the permitting authority with jurisdiction over the
project.
(2) Cost of the undertaking: As used in G.S. 87-1(a), means the nal price of
a project, excluding the cost of land, as evidenced by the contract, or in
the absence of a contract, permit records, invoices, and cancelled checks.
(3) Personally: As used in G.S. 87-14(a)(1), “personally” means the physical
presence of the owner of the property and excludes the use of a power of
attorney.
(4) Solely for occupancy: As used in G.S. 87-1(b), “solely for occupancy” is
restricted to the family of a person, the ocers and shareholders of a rm
or corporation, and guests and social invitees where no consideration is
received. For purposes of G.S. 87-1(b)(2), “family” is dened as a spouse
or other family member living in the same household.
(5) Value: As used in G.S. 87-10(a1), means the same as “cost of the
undertaking.”
History Note:
Authority G.S. 87-1, 87-10, and 87-14; E. February 1, 1976;
Readopted E. September 26, 1977;
Amended E. January 1, 1983;
Repealed E. May 1, 1989; Codier approved agency’s waiver request
to reuse rule number; E. September 1, 2019 ; Recodied from
21 NCAC 12 .0201 E. January 2, 2020.
21 NCAC 12A .0202
Classication
(
a) A general contractor shall be certied in one of the following ve classications:
(1) Building Contractor. is classication covers all building construction
and demolition activity including: commercial, industrial, institutional,
30
and all residential building construction. It includes parking decks; all
site work, grading and paving of parking lots, driveways, sidewalks, and
gutters; storm drainage, retaining or screen walls, and hardware and ac-
cessory structures; and indoor and outdoor recreational facilities includ-
ing natural and articial surface athletic elds, running tracks, bleachers,
and seating. It also covers work done under the specialty classications
of S(Concrete Construction), S(Insulation), S(Interior Construction),
S(Marine Construction), S(Masonry Construction), S(Roong), S(Metal
Erection), S(Swimming Pools), and S(Asbestos), and S(Wind Turbine).
(2) Residential Contractor. is classication covers all construction and
demolition activity pertaining to the construction of residential units that
are required to conform to the residential building code adopted by the
Building Code Council pursuant to G.S. 143-138; all site work, drive-
ways, sidewalks, and water and wastewater systems ancillary to the afore-
mentioned structures and improvements; and the work done as part of
such residential units under the specialty classications of S(Insulation),
S(Interior Construction), S(Masonry Construction), S(Roong),
S(Swimming Pools), and S(Asbestos).
(3) Highway Contractor. is classication covers all highway construction
activity including: grading, paving of all types, installation of exterior
articial athletic surfaces, relocation of public and private utility lines
ancillary to a principal project, bridge construction and repair, culvert
construction and repair, parking decks, sidewalks, curbs, gutters and
storm drainage. It also includes installation and erection of guard rails,
fencing, signage and ancillary highway hardware; covers paving and
grading of airport and aireld runways, taxiways, and aprons, including
the installation of fencing, signage, runway lighting and marking; and
work done under the specialty classications of S(Boring and Tunneling),
S(Concrete Construction), S(Marine Construction), S(Railroad
Construction), and H(Grading and Excavating).
(4) Public Utilities Contractor. is classication includes operations that are
the performance of construction work on water and wastewater systems
and on the subclassications of facilities set forth in G.S. 87-10(b)(3). e
Board shall issue a license to a public utilities contractor that is limited
to any of the subclassications set forth in G.S. 87-10(b)(3) for which
the contractor qualies. A public utilities contractor license covers work
done under the specialty classications of S(Boring and Tunneling),
PU(Communications), PU(Fuel Distribution), PU(Electrical-Ahead
of Point of Delivery), PU(Water Lines and Sewer Lines), PU(Water
Purication and Sewage Disposal), and S(Swimming Pools).
(5) Specialty Contractor. is classication covers all construction operation
and performance of contract work outlined as follows:
(A) H(Grading and Excavating). is classication covers the digging,
moving, and placing of materials forming the surface of the earth,
excluding air and water, in such a manner that the cut, ll, excava-
tion, grade, trench, backll, or any similar operation may be exe-
cuted with the use of hand and power tools and machines used for
these types of digging, moving, and material placing. It covers work
on earthen dams and the use of explosives used in connection with
all or any part of the activities described in this Subparagraph. It also
includes clearing and grubbing, and erosion control activities.
31
(B) S(Boring and Tunneling). is classication covers the construction
of underground or underwater passageways by digging or boring
through and under the earth’s surface, including the bracing and
compacting of such passageways to make them safe for the purpose
intended. It includes preparation of the ground surfaces at points of
ingress and egress.
(C) PU (Communications). is classication covers the installation of
the following:
(i) all types of pole lines, and aerial and underground distribution
cable for telephone systems;
(ii) aerial and underground distribution cable for cable TV and
master antenna TV systems capable of transmitting R.F. signals;
(iii) underground conduit and communication cable including ber
optic cable; and
(iv) microwave systems and towers, including foundations and
excavations where required, when the microwave systems are
being used for the purpose of transmitting R.F. signals; and
installation of PCS or cellular telephone towers and sites.
(D) S(Concrete Construction). is classication covers the construc-
tion, demolition, and installation of foundations, pre-cast silos, and
other concrete tanks or receptacles, prestressed components, and
gunite applications, but excludes bridges, streets, sidewalks, curbs,
gutters, driveways, parking lots, and highways.
(E) PU(Electrical-Ahead of Point of Delivery). is classication covers
the construction, installation, alteration, maintenance, or repair of
an electrical wiring system, including sub-stations or components
thereof, which is or is intended to be owned, operated, and main-
tained by an electric power supplier, such as a public or private
utility, a utility cooperative, or any other properly franchised electric
power supplier, for the purpose of furnishing electrical services to
one or more customers.
(F) PU(Fuel Distribution). is classication covers the construction,
installation, alteration, maintenance, or repair of systems for distri-
bution of petroleum fuels, petroleum distillates, natural gas, chem-
icals, and slurries through pipeline from one station to another. It
includes all excavating, trenching, and backlling in connection
therewith. It covers the installation, replacement, and removal of
above ground and below ground fuel storage tanks.
(G) PU(Water Lines and Sewer Lines). is classication covers con-
struction work on water and sewer mains, water service lines, and
house and building sewer lines, as dened in the North Carolina
State Building Code, and covers water storage tanks, li stations,
pumping stations, and appurtenances to water storage tanks, li sta-
tions and pumping stations. It includes pavement patching, backll,
and erosion control as part of construction.
(H) PU(Water Purication and Sewage Disposal). is classication cov-
ers the performance of construction work on water and wastewater
systems; water and wastewater treatment facilities; and all site work,
grading, and paving of parking lots, driveways, sidewalks, and curbs
and gutters that are ancillary to such construction of water and
32
wastewater treatment facilities. It covers the work done under the
specialty classications of S(Concrete Construction), S(Insulation),
S(Interior Construction), S(Masonry Construction), S(Roong),
and S(Metal Erection) as part of the work on water and wastewater
treatment facilities.
(I) S(Insulation). is classication covers the installation, alteration,
or repair of materials classied as insulating media used for the
non-mechanical control of temperatures in the construction of
residential and commercial buildings. It does not include the insula-
tion of mechanical equipment, and ancillary lines and piping.
(J) S(Interior Construction). is classication covers the installa-
tion and demolition of acoustical ceiling systems and panels, load
bearing and non-load bearing partitions, lathing and plastering,
ooring and nishing, interior recreational surfaces, window and
door installation, and installation of xtures, cabinets, and millwork.
It includes the removal of asbestos and replacement with non-toxic
substances.
(K) S(Marine Construction). is classication covers all marine con-
struction and repair activities and all types of marine construction
and demolition in deep-water installations and in harbors, inlets,
sounds, bays, and channels; it covers dredging, construction, and
installation of pilings, piers, decks, slips, docks, and bulkheads. It
does not include structures required on docks, slips, and piers.
(L) S(Masonry Construction). is classication covers the demolition
and installation, with or without the use of mortar or adhesives, of
the following:
(i) brick, concrete block, gypsum partition tile, pumice block, or
other lightweight and facsimile units and products common to
the masonry industry;
(ii) installation of re clay products and refractory construction;
and
(iii) installation of rough cut and dressed stone, marble panels and
slate units, and installation of structural glazed tile or block,
glass brick or block, and solar screen tile or block.
(M) S(Railroad Construction). is classication covers the building,
construction, and repair of railroad lines including:
(i) the clearing and lling of rights-of-way;
(ii) shaping, compacting, setting, and stabilizing of road beds;
(iii) setting ties, tie plates, rails, rail connectors, frogs, switch plates,
switches, signal markers, retaining walls, dikes, fences, and
gates; and
(iv) construction and repair of tool sheds and platforms.
(N) S(Roong). is classication covers the installation, demolition,
and repair of roofs and decks on residential, commercial, indus-
trial, and institutional structures requiring materials that form a
water-tight and weather-resistant surface. e term “materials” for
purposes of this Subparagraph includes cedar, cement, asbestos, clay
tile and composition shingles, all types of metal coverings, wood
shakes, single ply and built-up roong, protective and reective roof
33
and deck coatings, sheet metal valleys, ashings, gravel stops, gutters
and downspouts, and bituminous waterproong.
(O) S(Metal Erection). is classication covers:
(i) the eld fabrication, demolition, erection, repair, and alteration
of architectural and structural shapes, plates, tubing, pipe and
bars, not limited to steel or aluminum, that are or may be used
as structural members for buildings, equipment, and structure;
and
(ii) the layout, assembly and erection by welding, bolting, riveting,
or fastening in any manner metal products as curtain walls,
tanks of all types, hoppers, structural members for buildings,
towers, stairs, conveyor frames, cranes and crane runways, can-
opies, carports, guard rails, signs, steel scaolding as a perma-
nent structure, rigging, agpoles, fences, steel and aluminum
siding, bleachers, re escapes, and seating for stadiums, arenas,
and auditoriums.
(P) S(Swimming Pools). is classication covers the construction,
demolition, service, and repair of all swimming pools. It includes:
(i) excavation and grading;
(ii) construction of concrete, gunite, and plastic-type pools, pool
decks, and walkways, and tiling and coping; and
(iii) installation of all equipment including pumps, lters, and
chemical feeders. It does not include direct connections to
a sanitary sewer system or to portable water lines, nor the
grounding and bonding of any metal surfaces or the making of
any electrical connections.
(Q)
S(Asbestos). is classication covers renovation or demolition
activities involving the repair, maintenance, removal, isolation,
encapsulation, or enclosure of Regulated Asbestos Containing
Materials (RACM) for any commercial, industrial, or institutional
building, whether public or private. It also covers all types of resi-
dential building construction involving RACM during renovation
or demolition activities. is specialty is required only when the
cost of asbestos activities as described herein are equal to or exceed
thirty thousand dollars ($30,000).
(R) S(Wind Turbine). is classication covers the construction, demo-
lition, installation, and repair of wind turbines, wind generators, and
wind power units. It includes assembly of blades, generator, turbine
structures, and towers. It also includes ancillary foundation work,
eld fabrication of metal equipment, and structural support compo-
nents.
(b)
An applicant may be licensed in more than one classication of general con-
tracting provided the applicant meets the qualications for the classications, which
includes passing the examinations for the classications requested by the applicant.
e license granted to an applicant who meets the qualications for all of the classi-
cations set forth in the rules of this Section shall be designated “unclassied.”
History Note: Authority G.S. 87-1; 87-4; 87-10; E. February 1, 1976; Readopted E.
September 26, 1977; Amended E. June 1, 1994; June 1, 1992;
May 1, 1989; January 1, 1983; Temporary Amendment E.
34
February 18, 1997; Amended E. April 1, 2014; June 1, 2011;
September 1, 2009; April 1, 2004; April 1, 2003; August 1, 2002;
April 1, 2001; August 1, 2000; August 1, 1998;
Pursuant to
G.S. 150B-21.3A, rule is necessary without substantive public interest
E. July 23, 2016;
Amended E. September 1, 2019; April 1, 2018;
Recodied from 21 NCAC 12 .0202 E. January 2, 2020.
21 NCAC 12A .0203
Limitaton of License
History Note: Authority G.S. 87-1; 87-10; E. February 1, 1976; Readopted E.
September 26, 1977; Amended E. January 1, 1983;
Repealed E. May 1, 1989; Recodied from 21 NCAC 12 .0203 E.
January 2, 2020.
21 NCAC 12A .0204
License Limitations; Eligibility
(a) All licenses shall have an appropriate limitation as set forth in this Rule.
(b) Limited License. e applicant for a limited license shall:
(1) meet the requirements set out in G.S. 87-10 and Section .0400 of
this Chapter;
(2) have current assets that exceed the total current liabilities by at least
seventeen thousand dollars ($17,000) or have a total net worth of at least
eighty thousand dollars ($80,000);
(3) pass the examination which shall contain subject matter related to the
specic contracting classication chosen by the applicant with a score as
set out in Rule .0404 of this Chapter; and
(4) if the applicant or any owner, principal, or qualier is in bankruptcy or
has been in bankruptcy within ve years prior to the ling of the applica-
tion, provide to the Board an agreed-upon procedures report on a form
provided by the Board or an audited nancial statement with a classied
balance sheet as part of the application. is requirement shall not apply
to shareholders of an applicant that is a publicly traded corporation.
(c) Intermediate License. e applicant for an intermediate license shall:
(1) meet the requirements set out in G.S. 87-10 and Section .0400 of
this Chapter;
(2) have current assets that exceed the total current liabilities by at least
seventy-ve thousand dollars ($75,000), as reected in an agreed-upon
procedures report on a form provided by the Board or an audited nan-
cial statement prepared by a certied public accountant or an indepen-
dent accountant who is engaged in the public practice of accountancy;
and
(3) pass the examination which shall contain subject matter related to the
specic contracting classication chosen by the applicant with a score as
set out in Rule .0404 of this Chapter.
(d) Unlimited License. e applicant for an unlimited license shall:
(1) meet the requirements set out in G.S. 87-10 and Section .0400 of
this Chapter;
(2) have current assets that exceed the total current liabilities by at least one
hundred y thousand dollars ($150,000), as reected in an agreed-upon
procedures report on a form provided by the Board or an audited nan-
cial statement prepared by a certied public accountant or an indepen-
dent accountant who is engaged in the public practice of accountancy;
(3) pass the examination which shall contain subject matter related to the
35
specic contracting classication chosen by the applicant with a score as
set out in Rule .0404 of this Chapter.
(e) Surety Bonds. In lieu of demonstrating the level of working capital as required
in Subparagraphs (c)(2) and (d)(2) of this Rule or net worth under Subparagraph
(b)(2) of this Rule, an applicant may obtain a surety bond from a surety authorized
to transact surety business in North Carolina pursuant to G.S. 58 Articles 7, 16,
21, or 22. e surety shall maintain a rating from A.M. Best, or its successor rating
organization, of either Superior (A++ or A+) or Excellent (A or A-). e bond shall
be continuous in form and shall be maintained in eect for as long as the appli-
cant maintains a license to practice general contracting in North Carolina or until
the applicant demonstrates the required level of working capital as required by
Subparagraphs (c)(2) and (d)(2) of this Rule. e applicant shall submit proof of a
surety bond meeting the requirements of this Rule with the application form and
subsequent annual license renewal forms. e applicant shall maintain the bond in
the amount of one hundred seventy-ve thousand dollars ($175,000) for a limit-
ed license, ve hundred thousand dollars ($500,000) for an intermediate license,
and one million dollars ($1,000,000) for an unlimited license. e bond shall list
the State of North Carolina as obligee and be for the benet of any person who is
damaged by an act or omission of the applicant constituting breach of a construc-
tion contract, breach of a contract for the furnishing of labor, materials, or profes-
sional services to construction undertaken by the applicant, or by an unlawful act
or omission of the applicant in the performance of a construction contract. e
bond required by this Rule shall be in addition to and not in lieu of any other bond
required of the applicant by law, regulation, or any party to a contract with the
applicant. Should the surety cancel the bond, the surety and the applicant both shall
notify the Board within 30 days in writing. If the applicant fails to provide written
proof of nancial responsibility in compliance with this Rule within 30 days of the
bond’s cancellation, then the applicant’s license shall be suspended until written
proof of compliance is provided.
(f) Financial statements, accounting, and reporting standards. Financial state-
ments submitted by applicants to the Board shall be no older than twelve months
from the date of submission. Financial statements shall conform to United States
“generally accepted accounting principles” (GAAP). e Board may require non-
GAAP nancial statements from applicants wherein the only exception to GAAP is
that such presentation is necessary to ascertain the working capital or net worth of
the particular applicant. Examples of the circumstances when non-GAAP presenta-
tion may be necessary to ascertain the working capital or net worth of the applicant
shall be when the only exception to GAAP is that assets and liabilities are classied
as “current” and “noncurrent” on personal nancial statements and when the only
exception to GAAP is that the particular applicant is not combined with a related
entity into one nancial statement pursuant to AICPA Financial Interpretation
46R (ASC 810). e terminologies, working capital, balance sheet with current
and xed assets, current and long term liabilities, and any other accounting ter-
minologies, used herein shall be construed in accordance with GAAP Standards
as promulgated by the Financial Accounting Standards Board (FASB). e termi-
nologies, audited nancial statement, unqualied opinion, and any other auditing
terminologies used herein shall be construed in accordance with those standards
referred to as “generally accepted auditing standards” (GAAS) as promulgated by
the American Institute of Certied Public Accountants (AICPA).
History Note: Authority G.S. 87-1; 87-4; 87-10; 87-15.1; E. February 1, 1976;
Readopted E. September 26, 1977; Amended E. January 1, 1983;
36
ARRC Objection March 19, 1987; Amended E. May 1, 1989;
August 1, 1987; Temporary Amendment E. June 28, 1989 for a
Period of 155 Days to Expire on December 1, 1989; Amended E.
December 1, 1989; Temporary Amendment E. May 31, 1996; RRC
Removed Objection E. October 17, 1996; Amended E. August 1,
1998; April 1, 1997; Temporary Amendment E. August 24, 1998;
Amended E. April 1, 2014; April 1, 2013; August 1, 2008; April 1,
2006; March 1, 2005; August 1, 2002; April 1, 2001; August 1, 2000;
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive
public interest E. July 23, 2016; Ammended E. September 1, 2019;
April 1, 2018 ; Recodied from 21 NCAC 12 .0204 E. January 2, 2020.
21 NCAC 12A .0205
Qualier
(a) e qualier for the applicant shall be a responsible managing employee, o-
cer, or member of the personnel of the applicant. A person may serve as a qualier
for no more than two licenses. A qualier’s examination credentials shall archive if
the qualier does not serve as a qualier for an active licensee for a period of four
consecutive years. Once a qualier’s examination credentials archive, he or she shall
retake the examination and earn a passing grade in accordance with Rule .0404 of
this Chapter to serve as a qualier.
(b) Subject to the provisions of G.S. 150B and Section .0800 of these Rules, the
Board may reject the application of an applicant seeking qualication by employ-
ment of a person who has already passed an examination if such person has previ-
ously served as qualier for a licensee that has been disciplined by the Board.
(c) A licensee shall notify the Board in writing in the event a qualier ceases to be
connected with the licensee. e notice shall include the date on which the quali-
er was last connected with the licensee and shall be submitted no later than 10 days
aer the date of separation. A qualier shall also be required to notify the Board in
writing in such circumstances. Aer such notice is led with the Board in writing,
or the Board determines that the qualier is no longer connected with the licensee,
and if there are no additional qualiers for the licensee, the license shall be invali-
dated in accordance with G.S. 87-10.
(d) Persons associated with a rm or corporation may take the required examina-
tion on behalf of the rm or corporation as described in G.S. 87-10. A partner may
take an examination on behalf of a partnership.
(e) “Responsible managing” as used in G.S. 87-10 means a person who is engaged
in the work of the applicant a minimum of 20 hours per week or a majority of the
hours operated by the applicant, whichever is less. If the person described herein is
not an owner, ocer, or partner of the applicant or licensee, the person must be a
W-2 employee.
(f) “Members of the personnel” as used in G.S. 87-10 means a person who is a
responsible managing employee of the applicant or licensee. A member of the
personnel must be a W-2 employee and shall not be an independent contractor.
contractor of the applicant or licensee.
(g) An applicant or licensee may have more than one qualier. If one person as-
sociated with the applicant fails, and another passes, the license shall be granted to
that applicant. A license shall be issued only in the classication held by a qualier
who has passed an examination in that classication.
History Note: Authority G.S. 87-1; 87-4; 87-10; 87-11(a); E. February 1, 1976;
Readopted E. September 26, 1977; Amended E. April 1, 2014;
37
July 1, 2008; April 1, 2006; August 1, 2000; June 1, 1994; June 1, 1992;
May 1, 1989; July 1, 1987; Pursuant to G.S. 150B-21.3A, rule is
necessary without substantive public interest E. July 23, 2016;
Amended E. September 1, 2019; September 1, 2018; April 1, 2018;
Recodied from 21 NCAC 12 .0205 E. January 2, 2020.
21 NCAC 12A .0206
Joint Venture
History Note: Authority G.S. 87-1; 87-10; E. February 1, 1976; Readopted E.
September 26, 1977; Repealed E. May 1, 1989; Recodied from
21 NCAC 12 .0206 E. January 2, 2020.
.21 NCAC 12A .0207
Joint Venture
A joint venture may practice general contracting in North Carolina if every prin-
cipal or member of the joint venture is licensed to practice general contracting in
North Carolina with the appropriate classication and at least one principal has the
appropriate limitation, or if the joint venture obtains a general contracting license
in its own name in accordance with G.S. 87 10 and these Rules. If an LLC is a joint
venturer, all members and managers of the LLC shall be licensed to practice general
contracting in North Carolina with the appropriate classication and limitation.
History Note: Authority G.S. 87 1; 87 10; E. June 1, 1992; Pursuant to
G.S. 150B-21.3A, rule is necessary without substantive public interest
E. July 23, 2016; Amended E. April 1, 2018; Recodied from
21 NCAC 12 .0207 E. January 2, 2020.
21 NCAC 12A .0208
Construction Management
(a) e phrase “undertakes to superintend or manage” as used in G.S. 87-1 to
describe a person, rm, or corporation deemed to be a general contractor means
that the person, rm, or corporation shall be responsible for superintending or
managing the construction of an entire project, and either contracts directly with
subcontractors to perform the construction for the project or is compensated for
superintending or managing the project based upon the cost of the project or the
time taken to complete the project. e person, rm, or corporation shall hold a
general contracting license in the classications and limitation applicable to the
construction of the project.
(b) e phrase “undertakes to superintend or manage” described in Paragraph (a)
of this Rule shall not include the following:
(1) an architect or engineer licensed in North Carolina who is supervising
the execution of design plans for the project owner and who does not
contract directly with subcontractors to perform the construction for the
project; or
(2) subject to the conditions stated within this Subparagraph and Paragraph
(c), any person, rm, or corporation retained by an owner of real prop-
erty as a consultant, agent, or advisor to perform development-related
functions, including:
(A) assisting with site planning and design;
(B) formulating a development scheme;
(C) obtaining zoning and other entitlements;
(D) tenant selection and negotiation;
(E) interfacing and negotiating with the general contractor, engineer,
architect, other construction and design professionals, and other
development consultants with whom the land owner separately
contracts, including, negotiating contracts on the owner’s behalf,
38
assisting with scheduling issues, ensuring that any disputes between
such parties are resolved to the owner’s satisfaction, and otherwise
ensuring that such parties are proceeding in an ecient, coordinated
manner to complete the project;
(F) providing cost estimates, bids, and budgeting;
(G) monitoring the progress of development activities performed by
other parties;
(H) arranging and negotiating governmental incentives and entitle-
ments; and
(I) selecting and sequencing sites for development.
(c) e exclusions set forth in Subparagraph (b)(2) shall not apply, however, unless
the following conditions are satised:
(1) the owner has retained a licensed general contractor or licensed general
contractors to construct the entire project or to directly superintend and
manage all construction work in which the person, rm, or corpora-
tion has any involvement and that would otherwise require the use of a
licensed general contractor; and
(2) the use of the person, rm, or corporation will not impair the general
contractor’s ability to communicate directly with the owner and to verify
the owner’s informed consent and ratication of the directions and de-
cisions made by the person, rm, or corporation to the extent that such
directions or decisions aect the construction activities otherwise re-
quiring the use of a licensed general contractor. For the purposes of this
Subparagraph, the general contractor shall be entitled to make a written
demand for written verication from the owner of any directions given
or decisions made by such a person, rm, or corporation on the owner’s
behalf. In that regard, if the general contractor delivers a written request
directly to the owner asking that the owner conrm in writing that the
owner desires that the general contractor perform consistent with a di-
rection or decision made by such person, rm, or corporation:
(A) the general contractor shall not be obligated to follow such direction
or decision in question until such time as the owner provides writ-
ten verication of the direction or decision; and
(B) if the third party person, rm, or corporation whose direction or
decision is being questioned by the general contractor attempts to
itself provide the conrmation requested from the owner by the gen-
eral contractor as provided above, such person, rm, or corporation
shall be deemed to be “undertaking to superintend or manage” as
described in Paragraph (a) of this Rule.
History Note: Authority G.S. 87-1; 87-4; E. May 1, 1995; Amended E. June 1,
2010; Pursuant to G.S. 150B-21.3A, rule is necessary without
substantive public interest E. July 23, 2016; Amended E. September 1,
2019; April 1, 2018; Recodied from 21 NCAC 12 .0208 E.
January 2, 2020.
21 NCAC 12A .0209
Application
(a) Any application made pursuant to G.S. 87-10 shall be accompanied by a
Certicate of Assumed Name led in accordance with Chapter 66, Article 14A of
the General Statutes. Applications submitted to the Board on behalf of corpora-
tions, limited liability companies and partnerships shall be accompanied by a copy
39
of any documents required to be led with the North Carolina Secretary of State’s
oce, such as Articles of Incorporation or Certicate of Authority.
(b) All licensees shall comply with the requirements of G.S. 66-71.4 and shall
notify the Board within 30 days of any change in the name in which the licensee is
conducting business in the State of North Carolina.
(c) No applicant or licensee shall use or adopt an assumed name used by any other
licensee, or any name so similar to an assumed name used by another licensee that
could confuse or mislead the public.
History Note: Authority G.S. 66-71.4; 87-1; 87-4; 87-10; E. August 1, 2000;
Amended E. April 1, 2014; Pursuant to G.S. 150B-21.3A, rule is
necessary without substantive public interest E. July 23, 2016;
Amended E. September 1, 2018
; Recodied from 21 NCAC 12 .0209
E. January 2, 2020.
21 NCAC 12A .0210
Public Building Projects
If a public building project is performed pursuant to G.S. 87-1.1, the total amount
of work to be performed by all licensed general contractors shall not exceed 25% of
the total bid price. A licensed general contractor shall hold the applicable classica-
tions and limitation for the work undertaken by such licensed general contractor.
For the purpose of this Rule, a public building project is a building project that is
governed by G.S. 143, Article8.
History Note: Authority G.S. 87-1.1; 87-4; E. April 1, 2004.ursuant to G.S.
150B-21.3A, rule is necessary without substantive public interest E. July 23, 2016;
Recodied from 21 NCAC 12 .0210 E. January 2, 2020.
21 NCAC 12A .0211
Multiunit Buildings
(a) If a project consists of the construction or alteration of one or more buildings
that fall under the requirements of the North Carolina Building Code, all structures
and units on the same parcel of land shall be considered as a single project.
(b) If a project consists of the construction or alteration of one or more buildings
that fall under the requirements of the North Carolina Residential Code, only
structures and units on the same parcel of land shall be considered as one project.
(c) e North Carolina State Building Code standards are hereby incorporated by
reference, including subsequent amendments and editions. e current Code may
be found online at http://www.ncdoi.com/OSFM/Engineering_and_Codes/Default.
aspx?eld1=Codes_-_Current_and_Past&user=State_Building_Codes.
History Note: Authority G.S. 87-1; 87-4; 87-10; E. August 11, 2009; Amended E.
April 1, 2010; Pursuant to G.S. 150B-21.3A, rule is necessary without
substantive public interest E. July 23, 2016; Amended E. April 1, 2018;
Recodied from 21 NCAC 12 .0211 E. January 2, 2020.
SECTION .0300 — APPLICATION PROCEDURE
21 NCAC 12A .0301
General
History Note: Authority G.S. 87 1; 87 10; E. February 1, 1976; Readopted E.
September 26, 1977; Amended E. May 1, 1989; Pursuant to
G.S.150B-21.3A
, rule is necessary without substantive public interest
E. July 23, 2016; Repealed E. April 1, 2018
; Recodied from
21 NCAC 12 .0301 E. January 2, 2020.
40
21 NCAC 12A .0302
Request
History Note: Authority G.S. 87 1; 87 10; 150B-19(5); E. February 1, 1976;
Amended E. June 23, 1977; Readopted E. September 26, 1977;
Amended E. May 1, 2006; December 1, 1995; June 1, 1992; Pursuant
to G.S. 150B-21.3A, rule is necessary without substantive public
interest E. July 23, 2016; Repealed E. April 1, 2018; Recodied from
21 NCAC 12 .0302 E. January 2, 2020
21 NCAC 12A .0303
Application for Licensure
(a) General. Applications for licensure shall contain the following:
(1) the Social Security Number of examinee(s) and qualier(s) and tax iden-
tication numbers for corporate applicants;
(2) the applicant’s contact information;
(3) the name of business under which the licensee will be operating, if any;
(4) requested designation of license limitation and classications;
(5) information about all crimes of which the applicant has been convicted;
(6) certied copies of court records reecting information regarding all
crimes of which the applicant and qualier(s) have been convicted;
(7) information indicating whether the applicant or qualier(s) has any
disciplinary history with the Board or any other occupational licensing,
registration, or certication agency;
(8) information establishing nancial responsibility as required by
G.S. 87-10(a) and Rule .0204 of this Chapter;
(9) letters of reference as prescribed in Rule .0308 of this Chapter; and
(10) the application fee as set forth in Rule .0304 of this Chapter.
(b) Reciprocity. Applicants based on reciprocity shall submit with the application
form a copy of the applicant’s license in the other state, certied by the other state
licensing board as being a copy of a valid license. Applicants shall have taken and
passed the exam oered in the state from which they are seeking reciprocity, or an
examination oered by the National Association of State Contractors Licensing
Agencies (NASCLA). Applicants shall also be required to take and pass the Board’s
North Carolina law, rule, and building code examination prior to licensure.
History Note: Authority G.S. 87 1; 87 10; E. February 1, 1976; Readopted E.
September 26, 1977; Amended E. May 1, 1989; Pursuant to
G.S. 150B-21.3A, rule is necessary without substantive public interest
E. July 23, 2016; Amended E. September 1, 2019; April 1, 2018;
Recodied from 21 NCAC 12 .0303 E. January 2, 2020.
21 NCAC 12A .0304
Fees
(a) e Board shall charge the following fees:
(1) Application for limited license: $75.00;
(2) Application for intermediate license: $100.00;
(3) Application for unlimited license: $125.00;
(4) Application for increase in limitation: $100.00 for increase to intermedi-
ate license and $125.00 for increase to unlimited license;
(5) Late renewal: $10.00 per month for every month or part aer the rst day
of January.
(b) All fees charged by the Board shall be non-refundable.
41
History Note: Authority G.S. 87 1; 87 10; E. February 1, 1976; Readopted E.
September 26, 1977; Amended E. January 1, 1983; Repealed E.
May 1, 1989; Codier approved agency’s waiver request to reuse rule
number; E. April 1, 2018; Recodied from 21 NCAC 12 .0304 E.
January 2, 2020; Temporary Amendment E. January 7, 2020.
21 NCAC 12A .0305
Filing Address
History Note: Authority G.S. 87 1; 87 10; E. February 1, 1976; Amended E.
June 23, 1977; Readopted E. September 26, 1977; Amended E.
May 1, 1989; Pursuant to G.S. 150B-21.3A, rule is necessary without
substantive public interest E. July 23, 2016; Repealed E. April 1, 2018;
Recodied from 21 NCAC 12 .0305 E. January 2, 2020.
21 NCAC 12A .0306
Filing Deadline
History Note: Authority G.S. 87-1; 87-10; E. February 1, 1976; Readopted E.
September 26, 1977; Amended E. June 1, 1994; June 1, 1992;
Repealed E. April 1, 2001; Recodied from 21 NCAC 12 .0306 E.
January 2, 2020.
21 NCAC 12A .0307
Notice of Approval
History Note: Authority G.S. 87-1; 87-10; E. February 1, 1976; Readopted E.
September 26, 1977; Amended E. May 1, 1989; Repealed E.
August 1, 2000; Recodied from 21 NCAC 12 .0307 E.
January 2, 2020.
21 NCAC 12A .0308
Character References
(a) Each applicant shall submit to the Board three written evaluations of the ap-
plicant as to the character reference’s knowledge of and experience with the appli-
cant. If the applicant is a legal entity, character references shall be submitted for all
individuals who sign the application on behalf of the applicant. If the applicant is a
sole proprietorship, character references shall be for the applicant itself.
(b) All character references shall include:
(1) name of the person submitting the reference;
(2) mailing address, phone number, and email address of the person submit-
ting the reference;
(3) date of the reference; and
(4) information regarding the reference’s knowledge of and experience with
the applicant or person about whom the reference is being provided.
(c) Character references shall be completed and dated no more than 12 months
prior to the date the reference is submitted to the Board.
History Note: Authority G.S. 87-1; 87-10; E. February 1, 1976; Readopted E.
September 26, 1977; Amended E. May 1, 1989; Pursuant to
G.S. 150-B-21.3A, rule is necessary without substantive public interest
E. July 23, 2016; Amended E. September 1, 2019; Recodied from
21 NCAC 12 .0308 E. January 2, 2020.
21 NCAC 12A .0309
Licensure for Military-Trained
Applicant; Licensure for
Military Spouse
(a) Licensure for a military-trained applicant. Upon receipt of a request for licen-
sure pursuant to G.S. 93B-15.1 from a military trained applicant, the Board shall
issue a license to the applicant who satises the following conditions:
(1) submission of a complete Application for License to Practice General
Contracting;
(2) submission of a license fee in accordance with G.S. 87-10;
(3) providing documentation to satisfy the conditions set out in G.S.
93B-15.1(a)(1)and (2); and
42
(4) providing documentation that the applicant has not committed any act
in any jurisdiction that would constitute grounds for refusal,
suspension, or revocation of a license in North Carolina at the
time the act was committed.
(b) Licensure for a military spouse. Upon receipt of a request for licensure pursu-
ant to G.S. 93B-15.1 from a military spouse, the Board shall issue a license to the
applicant who satisies the following conditions:
(1) submission of a complete Application for License to Practice General
Contracting;
(2) submission of a license fee in accordance with G.S. 87-10;
(3) submission of written documentation demonstrating that the applicant is
married to an active member of the U.S. military;
(4) providing documentation to satisfy conditions set out in G.S. 93B-15.1(b)
(1)and (2);
(5) providing documentation that the applicant has not committed any act in
any jurisdiction that would constitute grounds for refusal, suspension, or
revocation of a license in North Carolina at the time the act was commit-
ted; and
(6) is in good standing and has not been disciplined by any agency that had
jurisdiction to issue the license, certication, or permit.
History Note: Authority G.S. 87-4; 93B-15.1; E. April 1, 2014; Pursuant to G.S.
150B-21.3A, rule is necessary without substantive public interest E.
July 23, 2016; Recodied from 21 NCAC 12 .0309 E. January 2, 2020.
SECTION .0400 — EXAMINATION
21 NCAC 12A .0401
General
History Note: Authority G.S. 87-1; 87-10; 87-15.1; E. February 1, 1976;
Readopted E. September 26, 1977; Repealed E. May 1, 1989;
Recodied from 21 NCAC 12 .0401 E. January 2, 2020.
21 NCAC 12A .0402
Subject Matter
(a) Examinations for licensure shall ascertain the following:
(1) e criteria set out in G.S. 87-10(b); and
(2) e qualiers’s knowledge of the practice of general contracting within
the specic classication(s) he or she is seeking to be qualied as de-
scribed in Rule .0202 of this Chapter.
(b) As a part of the Board’s examination process, all applicants, including those
seeking reciprocity from other jurisdictions, shall be tested on the Board’s laws
and rules.
History Note: Authority G.S. 87 1; 87 10; E. February 1, 1976; Readopted E.
September 26, 1977; Amended E. August 1, 2000; June 1, 1994;
May 1, 1989; Pursuant to G.S. 150B-21.3A, rule is necessary without
s
ubstantive public interest E. July 23, 2016; Repealed E. April 1, 2018;
Codier approved agency’s waiver request to reuse rule number;
E. September 1, 2019; Recodied from 21 NCAC 12 .0402 E.
January 2, 2020.
43
21 NCAC 12A .0403
Number of Examinations Taken
An applicant must take one dierent examination for each classication of general
contracting for which the applicant seeks licensure.
History Note: Authority G.S. 87-1; 87-10; E. February 1, 1976; Readopted E.
September 26, 1977; Amended E. May 1, 1989; Pursuant to G.S.
150B-21.3A, rule is necessary without substantive public interest E.
July 23, 2016; Recodied from 21 NCAC 12 .0403 E. January 2, 2020.
21 NCAC 12A .0404
Passing Grade
Persons taking the examination shall receive a score of at least 70 in order to pass
the examination.
History Note: Authority G.S. 87 1; 87 10; E. February 1, 1976; Readopted E.
September 26, 1977; Amended E. January 1, 1983; Repealed E.
May 1, 1989; Codier approved agency’s waiver request to reuse rule
number; E. April 1, 2018; Recodied from 21 NCAC 12 .0404 E.
January 2, 2020.
.21 NCAC 12A .0405
Examination Schedule
Upon approval of the application by the Board, applicants will be notied as to the
instructions for scheduling the required examination or examinations. Applicants
may receive details from the examinations provider concerning the actual date,
time and location to report for the examination or examinations requested.
History Note: Authority G.S. 87-1; 87-10; E. February 1, 1976; Readopted E.
September 26, 1977; Amended E. August 1, 2000; May 1, 1989;
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive
public interest E. July 23, 2016; Recodied from 21 NCAC 12 .0405
E. January 2, 2020.
21 NCAC 12A .0406
Filing Deadline
21 NCAC 12A.0407
Re-Examination
History Note: Authority G.S. 87-1; 87-10; E. February 1, 1976; Readopted E.
September 26, 1977; Amended E. January 1, 1993; Repealed
E. May 1, 1989; Recodied from 21 NCAC 12 .0406 and .0407 E.
January 2, 2020.
21 NCAC 12A .0408
Person Taking Examination
History Note: Authority G.S. 87 1; 87 10; E. February 1, 1976; Readopted E.
September 26, 1977; Amended E. April 1, 2006; September 1, 1992;
May 1, 1989; Pursuant to G.S. 150B-21.3A, rule is necessary without
substantive public interest E. July 23, 2016; Repealed E. April 1, 2018;
Recodied from 21 NCAC 12 .0408 E. January 2, 2020.
21 NCAC 12A .0409
Review Workshop Charge
History Note: Authority G.S. 87-10; 150B-19(5)d; E. June 1, 1992; Repealed
E. April 1, 2004; Recodied from 21 NCAC 12 .0409 E.
January 2, 2020.
21 NCAC 12A .0410
Failing Examination
History Note: Authority G.S. 87-10; E. December 1, 1995; Amended E.
August 1, 2000; Pursuant to G.S. 150B-21.3A, rule is necessary
without substantive public interest E. July 23, 2016; Repealed
E. April 1, 2018; Recodied from 21 NCAC 12 .0410 E.
January 2, 2020.
44
SECTION .0500 — LICENSE
21 NCAC 12A .0501
License Granted
(a) License numbers shall be included on all contracts and bids.
(b) If a licensee les Articles of Dissolution or the N.C. Department of the
Secretary of State withdraws the licensee’s Certicate of Authority, the Board shall
archive the license.
History Note: Authority G.S. 87 1; 87 10; 87 12; E. February 1, 1976; Readopted
E. September 26, 1977; Amended E. May 1, 1989; Pursuant to
G.S. 150B-21.3A, rule is necessary without substantive public interest
E. July 23, 2016; Amended E. September 1, 2019; April 1, 2018;
Recodied from 21 NCAC 12 .0501 E. January 2, 2020.
21 NCAC 12A .0502
Temporary License
e Board shall issue a temporary license only as required by G.S. 93B-15.1.
History Note: Authority G.S. 87 1; 87 10; E. February 1, 1976; Readopted E.
September 26, 1977; Pursuant to G.S. 150B-21.3A, rule is necessary
without substantive public interest E. July 23, 2016; Amended
E. April 1, 2018; Recodied from 21 NCAC 12 .0502 E.
January 2, 2020.
21 NCAC 12A .0503
Renewal of License
(a) Applications for renewal of license shall contain the following:
(1) the Social Security Number of the applicant and qualier(s) and tax iden-
tication number for corporations, LLCs, or partnerships;
(2) the applicant’s contact information;
(3) the name of business under which licensee will be operating, if any;
(4) information regarding any changes made in the status of the licensee’s
business, since the initial application or last renewal was submitted to the
Board, whichever is later;
(5) conrmation of license limitation and classications;
(6) information about all crimes of which the applicant has been convicted
since the initial application or last renewal was submitted to the Board,
whichever is later;
(7) documentation regarding all crimes referenced above;
(8) information indicating whether the applicant has any disciplinary his-
tory with any other occupational licensing, registration, or certication
agency since the initial application or last renewal was submitted to the
Board, whichever is later;
(9) an attestation that the applicant maintains continued nancial responsi-
bility pursuant to Rule .0204 of this Chapter;
(10) if applicable, proof that the surety bond is maintained in compliance with
Rule .0204 of this Chapter; and
(11) the application fee and any accrued late fees as set forth in Rule .0304 of
this Chapter.
(b) A licensee shall submit an audited nancial statement as evidence of continued
nancial responsibility in accordance with Rule .0204 of this Chapter if the Board
nds that the licensee is insolvent, nancially unstable, or unable to meet its nan-
cial responsibilities based upon the information provided in the renewal application.
45
(c) A licensee shall provide the Board with a copy of any bankruptcy petition led
by the licensee within 30 days of its ling. A licensee in bankruptcy shall provide to
the Board an agreed-upon procedures report on a form provided by the Board or
an audited nancial statement with a classied balance sheet as part of any applica-
tion for renewal.
(d) A corporate license shall not be renewed unless it is in good standing with the
N.C. Department of the Secretary of State.
(e) Upon receipt of a written request by or on behalf of a licensee who is current-
ly in good standing with the Board, is serving in the armed forces of the United
States, and to whom G.S. 105-249.2 grants an extension of time to le a tax return,
the Board shall grant that same extension of time for complying with renewal
application deadlines, for paying renewal fees, and for meeting any other require-
ment or conditions related to the maintenance or renewal of the license issued by
the Board. e applicant shall furnish to the Board a copy of the military orders or
the extension approval by the Internal Revenue Service or by the North Carolina
Department of Revenue.
History Note: Authority G.S. 87-1; 87-4;87-10; 87-12; 87-13; 93B-15;
E. February 1, 1976; Readopted E. September 26, 1977; ARRC
Objection March 19, 1987; Amended E. May 1, 1989; August 1,
1987; Temporary Amendment E. June 28, 1989 for a period of 155
Days to Expire on December 1, 1989; Amended E. December 1, 1989;
RRC Removed Objection of March 19, 1987 E. August 20, 1992
based on subsequent amendment; Amended E. September 1, 1992;
Temporary Amendment E. May 31, 1996; Amended E. April 1,
2014; June 1, 2011; June 1, 2003; April 1, 2003; August 1, 2002;
April 1, 1997; Pursuant to G.S. 150B-21.3A, rule is necessary without
s
ubstantive public interest E. July 23, 2016; Amended E. September 1,
2019; April 1, 2018; Recodied from 21 NCAC 12 .0503 E. January 2,
2020; Temporary Amendment E. January 2, 2020.
21 NCAC 12A .0504
Increase in Limitation
(a) General. A person, rm, or corporation holding a valid license to engage in
the practice of general contracting in North Carolina may apply for a dierent
limitation by making application for such dierent limitation with the Board. e
application shall contain the following:
(1) the Social Security Number of individual applicant, qualier(s), and tax
identication number for corporations, LLCs, or partnerships;
(2) the applicant’s contact information;
(3) the exact name of the business as reected on the previously issued
license that is subject to the limitation increase application;
(4) information regarding any changes made in the status of the licensee’s
business since the initial application or last renewal was submitted to the
Board, whichever is later;
(5) conrmation of license limitation and classications;
(6) requested limitation;
(7) an audited nancial statement prepared in accordance with Rule .0204 of
this Chapter;
(8) if applicable, proof that the surety bond is maintained in compliance with
Rule .0204 of this Chapter; and
46
(9) the application fee as set forth in Rule .0304 of this Chapter.
(b) Eligibility. An applicant shall be eligible for a new limitation if he or she pos-
sesses the qualications necessary in accordance with Rule .0204 of this Chapter,
except that he or she shall not be required to take a written exam.
History Note: Authority G.S. 87 1; 87-4; 87 10; E. February 1, 1976; Amended
E. June 23, 1977; Readopted E. September 26, 1977; Amended
E. May 1, 1989; January 1, 1983; Temporary Amendment E.
June 28, 1989, for a period of 155 days to expire on December 1, 1989;
Amended E. August 1, 2000; December 1, 1989; Pursuant to
G.S. 150B-21.3A, rule is necessary without substantive public interest
E. July 23, 2016; Amended E. April 1, 2018; Recodied from
21 NCAC 12 .0504 E. January 2, 2020.
21 NCAC 12A .0505
Maintaining Current Address;
Notication
(a) All licensees, applicants, and qualiers shall notify the Board of any change in
mailing address, phone number, or email address within 30 days from the date of
the change. Notice shall be given in writing or through the Board’s website portal
for licensees.
(b) Notication from the Board shall be deemed received if mailed to the address
provided by the licensee and shown in the records of the Board.
History Note: Authority G.S. 87 8; E. June 1, 1992; Pursuant to G.S. 150B-21.3A,
rule is necessary without substantive public interest E. July 23, 2016;
Amended E. April 1, 2018; Recodied from 21 NCAC 12 .0505 E.
January 2, 2020.
21 NCAC 12A .0506
Charge for Status of Licensure
e Board shall charge persons requesting a veried copy of all or part of its roster
of licensed contractors a fee to cover the cost of copying and mailing.
History Note: Authority G.S. 87 8; 87 13; 150B-19(5); E. June 1, 1992; Amended
E. May 1, 2006; May 1, 1995; Pursuant to G.S. 150B-21.3A, rule is
necessary without substantive public interest E. July 23, 2016;
Amended E. April 1, 2018; Recodied from 21 NCAC 12 .0506 E.
January 2, 2020.
21 NCAC 12A .0507
Fund Suspension
In the event the Board’s authority to expend funds is suspended pursuant to G.S.
93B-2, the Board shall continue to issue and renew licenses and all fees tendered
shall be placed in an escrow account maintained by the Board for this purpose.
Once the Board’s authority is restored, the funds shall be moved from the escrow
account into the general operating account.
History Note: Authority G.S. 87-4; 93B-2; E. June 1, 2011; Pursuant to G.S.
150B-21.3A, rule is necessary without substantive public interest E. July 23, 2016;
Recodied from 21 NCAC 12 .0507 E. January 2, 2020.
47
SECTION .0600 — RULE-MAKING PROCEDURES
21 NCAC 12A .0601
Petitions
21 NCAC 12A .0602
Notice
21 NCAC 12A .0603
Hearings
21 NCAC 12A .0604
Emergency Rules
21 NCAC 12A .0605
Declaratory Rulings
History Note: Authority G.S. 150A-12; 150A-12(d); 150A-13; 150A-16; 150A-17;
E. February 1, 1976; Amended E. June 23, 1977; Readopted E.
September 26, 1977; Repealed E. January 1, 1983 Recodied from
21 NCAC 12 .0601-.0605 E. January 2, 2020.
21 NCAC 12A .0606
Rule-Making
History Note: Authority G.S. 150A-11; 150A-14; E. January 1, 1983; Amended E.
December 1, 1985; Repealed E. September 1, 1988; Recodied from
21 NCAC 12 .0606 E. January 2, 2020.
SECTION .0700 — BOARD DISCIPLINARY PROCEDURES
21 NCAC 12A .0701
Improper Practice
(a) Complaint. Any person who believes that a licensed general contractor is in vi-
olation of the provisions of G.S. 87-11 may le a complaint with the Board against
a licensee, qualier, or both by setting forth in writing those charges and swearing
to their authenticity. e complaint shall be submitted to the Board and include
the complainant’s contact information, project location, and name of the licensee,
qualier, or both.
(b) Preliminary or reshold Determination:
(1) A complaint led in accordance with G.S. 87-11(a1) shall be forwarded
to a sta investigator for investigation. Within 30 days, the Board shall
forward a written notice of the complaint to the licensee and qualier(s)
against whom the charge is made. e notice shall request a response
from the licensee and qualier(s). e Board shall send notice of the
charge and of the alleged facts or alleged conduct by rst class mail to
the last known address and by email to the address of the licensee and
qualier(s).
(2) Aer the investigation is complete, the charge shall be referred to the
review committee. e review committee shall consist of the following
individuals:
(A) one member of the Board;
(B) the Secretary-Treasurer or his designee; and
(C) a sta person agreed upon by the individuals listed above.
(3) Based upon the complaint and investigation, the review committee shall
recommend to the Board that:
(A) e charge be dismissed;
(B) When the charge is admitted as true by the licensee and qualier(s),
the Board accept the licensee’s and qualier(s’) admission of guilt
and order the licensee and qualier(s) not to commit in the future
the act or acts admitted by him to have been violated and not to vio-
late any of the acts of misconduct specied in G.S. 87-11 at any time
in the future; or
48
(C) e charge, whether admitted or denied, be presented to the full
Board for a hearing and determination by the Board on the merits
of the charge in accordance with the substantive and procedural
requirements of the provisions of Section .0800 of this Chapter and
the provisions of G.S. 87-11. Prior to the charges being heard and
determined by the Board, it may be resolved by consent order.
History Note: Authority G.S. 87-4; 87-11; 150B-3; 150B-38; E. February 1, 1976;
Readopted E. September 26, 1977; Amended E. April 1, 2014;
June 1, 2011; April 1, 2006; April 1, 2003; May 1, 1989; Pursuant to
G.S. 150B-21.3A, rule is necessary without substantive public interest
E. July 23, 2016; Amended E. April 1, 2018; Recodied from
21 NCAC 12 .0701 E. January 2, 2020.
21 NCAC 12A .0702
Unlicensed Practice
(a) Complaint. Any person who believes that a person, rm, or corporation is in
violation of the acts specied in G.S. 87-13 may le a complaint against that person,
rm, or corporation. e complaint shall be led with the Board and include the
complainant’s contact information, project location, and name of alleged violator.
(b) Preliminary or reshold Determination:
(1) A complaint led in accordance with G.S. 87-13 shall be forwarded to a
sta investigator for investigation. Board sta shall investigate the charge
to determine whether there is probable cause to believe that a party
against whom a charge has been brought violated the provisions of
G.S. 87-13.
(2) Aer the investigation is complete, the charge shall be referred to the
review committee. e review committee shall consist of the following
individuals:
(A) one member of the Board;
(B) the Secretary-Treasurer or his designee; and
(C) a sta person agreed upon by the individuals listed above.
(3) Based upon the complaint and investigation, if the review committee
determines that probable cause exists that a person, rm, or corporation
is practicing general contracting without a license, it shall recommend
to the Board that injunctive relief be sought. If the Board concurs with
the review committee’s recommendation, the investigation shall be for-
warded to Board counsel to seek injunctive relief. If the review commit-
tee does not believe that the person, rm, or corporation is practicing
general contracting without a license, it shall recommend to the Board
dismissal of the complaint. Once dismissed, the Board shall notify
the complainant.
History Note: Authority G.S. 87-1; 87-4; 87-13; 87-13.1; E. February 1, 1976;
Readopted E. September 26, 1977; Amended E. April 1, 2014;
June 1, 2011; May 1, 1989; Pursuant to G.S. 150B-21.3A, rule is
necessary without substantive public interest E. July 23, 2016;
Amended E. April 1, 2018; Recodied from 21 NCAC 12 .0702
E. January 2, 2020.
49
21 NCAC 12A .0703
Fee for Submittal of Bad Check
(a) e Board shall charge the maximum processing fee allowed by G.S. 25-3-506
if a check submitted to the Board is returned by a nancial institution because of
insucient funds or because the drawer did not have an account at that bank.
(b) Until such time as the drawer of the bad check has paid the prescribed fee, the
drawer shall not be eligible to take an examination, review an examination, obtain
a license, or have the license renewed. For the purpose of this Rule, “prescribed fee”
shall mean the sum of:
(1) the maximum processing fee allowed by G.S. 25-3-506;
(2) the renewal or application fee, whichever is applicable; and
(3) the late payment fee described in G.S. 87-10(e).
(c) Any license that has been issued or renewed based on a check which is re-
turned to the Board shall be invalid until such time as the drawer has paid the
prescribed fee. e invalidity of the license or renewal shall commence on the date
of the issuance of the license or renewal.
(d) Payment of the prescribed fee to the Board shall be made in the form of a ca-
shier’s check, money order, credit card, or debit card.
(e) In the event the drawer of the bad check fails to pay the prescribed fee,
during which time the license or renewal lapses for four years, the license shall
not be renewed and the licensee for whom the check was to benet shall fulll all
requirements of a new applicant set forth in G.S. 87-10 and Rules .0303 and .0503
of this Chapter.
History Note: Authority G.S. 25-3-506; 87-4; 87-10; E. January 1, 1983;
Amended E. April 1, 2014; April 1, 2003; May 1, 1989; Pursuant to
G.S. 150B-21.3A, rule is necessary without substantive public interest
E. July 23, 2016; Amended E. April 1, 2018; Recodied from
21 NCAC 12 .0703 E. January 2, 2020.
50
SECTION .0800 — CONTESTED CASES
21 NCAC 12A .0801
General Rules
21 NCAC 12A .0802
Opportunity for Licensee or
Applicant to Have Hearing
21 NCAC 12A .0803
Notice of Contemplated Board
Action: Request for Hearing
.21 NCAC 12A 0804
Request for Hearing
21 NCAC 12A .0805
Granting Hearing Request
21 NCAC 12A .0806
Notice of Hearing
21 NCAC 12A .0807
Who Shall Hear Contested Case
21 NCAC 12A .0808
Place of Hearing
21 NCAC 12A .0809
Intervention
21 NCAC 12A .0810
Hearing Ocers
21 NCAC 12A .0811
Conduct of Contested Case
21 NCAC 12A .0812
Discovery
21 NCAC 12A .0813
Depositions
21 NCAC 12A .0814
Conduct of Hearing
21 NCAC 12A .0815
Decision of Board
History Note: Authority G.S. 1A-1; Rule 24; 1A-1; Rules 26 through 33; 87-10;
87-11; 87-15.1; 150A-3; 150A-23; 150A-23(a); 150A-24 through;
150A-33; 150A-36; 150A-37; E. February 1, 1976; Amended E.
June 23, 1977; Readopted E. September 26, 1977; Repealed
E. January 1, 1983; Recodied from 21 NCAC 12 .0801-.0815 E.
January 2, 2020.
21 NCAC 12A .0816
Administrative Hearing
History Note: Authority G.S. 150A-11; 150A-14; E. January 1, 1983; Amended E.
December 1, 1985; Repealed E. September 1, 1988; Recodied from
21 NCAC 12 .0816 E. January 2, 2020.
21 NCAC 12A .0817
Right to Hearing
History Note: Authority G.S. 87 11(b); 150B 11; 150B 38; E. September 1, 1988;
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive
public interest E. July 23, 2016; Repealed E. April 1, 2018;
Recodied from 21 NCAC 12 .0817 E. January 2, 2020.
21 NCAC 12A .0818
Request for Hearing
(a) A person aggrieved as dened by G.S. 150B-2 may submit a request for a hear-
ing pursuant to G.S. 150B-38 before the Board in writing to the Board’s oce, with
the request bearing the notation: REQUEST FOR ADMINISTRATIVE HEARING.
e request shall contain the following information:
51
(1) name and address of the aggrieved person;
(2) a statement of the action taken by the Board that is challenged; and
(3) a statement of the way in which the aggrieved person has been aggrieved.
(b) Upon receipt of a request for a hearing, the Board shall acknowledge the re-
quest and schedule a hearing.
History Note: Authority G.S. 87-4; 87-11; 150B-38; E. September 1, 1988;
Amended E. June 1, 2011; August 1, 2002; Pursuant to
G.S. 150B-21.3A, rule is necessary without substantive public
interest E. July 23, 2016; Amended E. April 1, 2018; Recodied from
21 NCAC 12 .0818 E. January 2, 2020.
21 NCAC 12A .0819
Granting or Denying
Hearing Request
(a) e Board shall decide whether to grant a request for a hearing.
(b) e denial of request for a hearing shall be issued immediately upon decision,
and in no case later than 60 days aer the submission of the request. Such denial
shall contain a statement of the reasons leading the Board to deny the request.
(c) Approval of a request for a hearing shall be signied by the issuing of a notice
as required by G.S. 150B-38(b).
History Note: Authority G.S. 87-11(b); 150B-38; E. September 1, 1988;
Amended E. July 1, 2008; Pursuant to G.S. 150B-21.3A, rule is
necessary without substantive public interest E. July 23, 2016;
Recodied from 21 NCAC 12 .0819 E. January 2, 2020.
21 NCAC 12A .0820
Notice of Hearing
(a) e Board shall give the party or parties in a contested case a notice of
hearing not less than 15 days before the hearing. Said notice shall comply with
G.S. 150B-38(b).
(b) Based upon information received, if the Board determines that the public
health, safety, or welfare requires emergency action, it may issue an order summar-
ily suspending a license or exam credentials. Upon service of the order, the licens-
ee or qualier to whom the order is directed shall cease the practice of general
contracting in North Carolina. e Board shall give notice of hearing pursuant to
G.S. 150B 38 following service of the order. e suspension shall remain in eect
pending issuance by the Board of a nal agency decision pursuant to G.S. 150B 42.
History Note: Authority G.S. 87-4; 87 11(b); 150B 3(c); 150B 38; E. October 1,
1988; Pursuant to G.S. 150B-21.3A, rule is necessary without
s
ubstantive public interest E. July 23, 2016; Amended E. April 1, 2018;
Recodied from 21 NCAC 12 .00820 E. January 2, 2020.
21 NCAC 12A .0821
Who Shall Hear Contested Cases
All administrative hearings will be conducted by the Board, a panel consisting of a
majority of the members of the Board, or an administrative law judge designated to
hear the case pursuant to G.S. 150B-40(e).
History Note: Authority G.S. 87-11(b); 150B-11; 150B-38; 150B-40; E. October 1,
1988. Pursuant to G.S. 150B-21.3A, rule is necessary without
substantive public interest E. July 23, 2016; Recodied from
21 NCAC 12 .0821 E. January 2, 2020.
52
21 NCAC 12A .0822
Informal Procedures
e Board and the party or parties may agree in advance to simplify the hearing by:
decreasing the number of issues to be contested at the hearing; accepting the va-
lidity of certain proposed evidence; accepting the ndings in some other case with
relevance to the case at hand; or agreeing to such other matters as may expedite
the hearing.
History Note: Authority G.S. 87-11(b); 150B-11; 150B-41; E. October 1, 1988.
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive
public interest E. July 23, 2016; Recodied from 21 NCAC 12 .0822
E. January 2, 2020.
21 NCAC 12A .0823
Petition for Intervention
(a) A person desiring to intervene in a contested case must le a written peti-
tion with the Board’s oce. e request should bear the notation: PETITION TO
INTERVENE IN THE CASE OF (Name of case).
(b) e petition must include the following information:
(1) e name and address of petitioner;
(2) e business or occupation of petitioner, where relevant;
(3) A full identication of the hearing in which petitioner is seeking
to intervene;
(4) e statutory or non-statutory grounds for intervention;
(5) Any claim or defense in respect of which intervention is sought; and
(6) A summary of the arguments of evidence petitioner seeks to present.
(c) e person desiring to intervene shall serve copies of the petition on all parties
to the case.
(d) If the Board determines to allow intervention, notice of that decision will
be issued promptly to all parties, and to the petitioner. In cases of discretionary
intervention, such notication will include a statement of any limitations of time,
subject matter, evidence or whatever else is deemed necessary, which are imposed
on the intervenor.
(e) If the Board’s decision is to deny intervention, the petitioner will be notied
promptly. Such notice will be in writing, identifying the reasons for the denial, and
will be issued to the petitioner and all parties.
History Note: Authority G.S. 87-11(b); 150B-11; 150B-38; E. October 1, 1988.
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive
public interest E. July 23, 2016; Recodied from 21 NCAC 12 .0823
E. January 2, 2020.
21 NCAC 12A .0824
Types of Intervention
(a) Intervention of Right. A petition to intervene as of right, as provided in the
North Carolina Rules of Civil Procedure, Rule 24, will be granted if the petitioner
meets the criteria of that rule and the petition is timely.
(b) Permissive Intervention. A petition to intervene permissibly as provided in the
North Carolina Rules of Civil Procedure, Rule 24, will be granted if the petitioner
meets the criteria of that rule and the Board determines that:
(1) ere is sucient legal or factual similarity between the petitioner’s
claimed rights, privileges, or duties and those of the parties to the hear-
ing; and
53
(2) Permitting intervention by the petitioner as a party would aid the pur-
pose of the hearing.
(c) e Board may allow discretionary intervention, with whatever limits and
restrictions are deemed appropriate.
History Note: Authority G.S. 87-11(b); 150B-11; 150B-38; E. September 1, 1988.
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive
public interest E. July 23, 2016; Recodied from 21 NCAC 12 .0824
E. January 2, 2020.
21 NCAC 12A .0825
Disqualication of Board
Members
History Note: Authority G.S. 87-11(b); 150B-11; 150B-38; 150B-40; E. October 1,
1988; Expired eective August 1, 2016 pursuant to G.S. 150B-21.3A;
Recodied from 21 NCAC 12 .0825 E. January 2, 2020.
21 NCAC 12A.0826
Failure to Appear
Should a party fail to appear at a scheduled hearing, the Board may proceed with
the hearing and make its decision in the absence of the party, provided that the
party has been given notice in accordance with G.S. 150B-38 and unless otherwise
directed by law. e Board may order a continuance in order to give the party an-
other opportunity to appear as determined on a case by case basis and upon good
cause shown.
History Note: Authority G.S. 87-4; 87 11(b); 150B 38; 150B 40; E. October 1, 1988;
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive
public interest E. July 23, 2016; Amended E. April 1, 2018;
Recodied from 21 NCAC 12 .0826 E. January 2, 2020.
21 NCAC 12A .0827
Subpoenas
(a) Requests for subpoenas for the attendance and testimony of witnesses or
for the production of documents, either at a hearing or for the purposes of
discovery, shall:
(1) be made in writing to the Board;
(2) identify any document sought;
(3) include the full name and home or business address of all persons to be
subpoenaed; and
(4) if known, the date, time, and place for responding to the subpoena.
e Board shall issue the requested subpoenas within three days of receipt of
the request.
(b) Subpoenas shall contain the following:
(1) the caption of the case;
(2) the name and address of the person subpoenaed;
(3) the date, hour, and location of the hearing in which the witness is com-
manded to appear;
(4) a particularized description of the books, papers, records, or objects the
witness is directed to bring with him to the hearing, if any;
(5) the identity of the party on whose application the subpoena was issued;
(6) the date of issue;
(7) the signature of the presiding ocer or his designee; and
(8) a “return of service.” e “return of service” form as lled out, shall show:
54
(A) the name and capacity of the person serving the subpoena;
(B) the date on which the subpoena was delivered to the person directed
to make service;
(C) the date on which service was made;
(D) the person on whom service was made;
(E) the manner in which service was made; and
(F) the signature of the person making service.
(c) Subpoenas shall be served in a manner set forth in Rule 45 of the N.C. Rules of
Civil Procedure.
(d) Any person receiving a subpoena from the Board may object thereto by ling a
written objection to the subpoena with the Board’s oce. Written objections shall
comply with Rule 45 of the N.C. Rules of Civil Procedure.
(e) e party who requested the subpoena may le a written response to the objec-
tion. e written response shall be served by the requesting party on the objecting
witness with ling the response with the Board.
(f) Aer receipt of the objection and response thereto, if any, the Board shall issue
a notice to the party who requested the subpoena and the party challenging the
subpoena to be scheduled as soon as practicable, at which time evidence and tes-
timony may be presented, limited to the narrow questions raised by the objection
and response.
(g) Promptly aer the close of such hearing, a majority of the Board members with
voting authority will rule on the challenge and issue a written decision. A copy of
the decision will be issued to all parties and made a part of the record.
History Note: Authority G.S. 87 11(b); 150B 38; 150B-39; 150B 40; E. October 1,
1988; Pursuant to G.S. 150B-21.3A, rule is necessary without
substantive public interest E. July 23, 2016; Amended E. April 1, 2018;
Recodied from 21 NCAC 12 .0827 E. January 2, 2020.
21 NCAC 12A .0828
Witnesses
Any party may be a witness and may present witnesses on the party’s behalf at the
hearing. All oral testimony at the hearing shall be under oath or armation and
shall be recorded. At the request of a party or upon the Board’s own motion, the
presiding ocer may exclude witnesses from the hearing room so that they cannot
hear the testimony of other witnesses.
His
tory Note: Authority G.S. 87-11(b); 150B-11; 150B-38; 150B-40; E. September 1,
1988. Pursuant to G.S. 150B-21.3A, rule is necessary without substan-
tive public interest E. July 23, 2016;
Recodied from 21 NCAC 12
.0828 E. January 2, 2020.
21 NCAC 12A .0829
Final Decision
In all cases heard by the Board, the Board shall issue a nal written decision within
60 days following the close of the hearing. is decision will be the prerequisite
“nal agency decision” for the right to judicial review.
History Note: Authority G.S. 87-4; 87 11(b); 150B 38; 150B 42; E. September 1,
1988; Pursuant to G.S. 150B-21.3A, rule is necessary without substan-
tive public interest E. July 23, 2016; Amended E. April 1, 2018;
Recodied from 21 NCAC 12 .0829 E. January 2, 2020.
55
21 NCAC 12A .0830
Proposals for Decisions
(a) If an administrative law judge hears a contested case pursuant to G.S.
150B-40(e), a party may le written exception and alternative nding of facts and
conclusions of law to the “proposal for decision” issued by the administrative law
judge. e written exceptions and alternative ndings of facts and conclusions of
law shall be received by the Board within 10 days aer the party has received the
“proposal for decision” as draed by the administrative law judge.
(b) Any exceptions shall be written and refer specically to pages of the record
or otherwise identify the occurrence to which exception is taken. e exceptions
must be led with the Board within ten days of the receipt of the proposal for
decision. e written exceptions shall bear the notation: EXCEPTIONS TO THE
PROCEEDINGS IN THE CASE OF (Name of case).
(c) Pursuant to G.S. 150B-40(e), any party may present oral argument to the Board
upon request. e request must be included with the written exceptions.
(d) Upon receipt of request for further oral argument, Board sta shall issue notice
to all parties designating time and place for such oral argument.
(e) e Board’s nal decision shall be a part of the record, a copy shall be given to
all parties, and shall be the “nal agency decision” for the right to judicial review.
e nal written decision shall be issued by the Board within 60 days from the date
oral arguments were presented to the Board. If there are no oral arguments present-
ed, the nal written decision shall be issued within 60 days of the date on which the
Board rendered its decision.
History Note: Authority G.S. 87-4; 87 11(b); 150B 38; 150B 40; E. September 1,
1988; Amended E. July 1, 2008; Pursuant to G.S. 150B-21.3A, rule is
necessary without substantive public interest E. July 23, 2016;
Amended E. April 1, 2018; Recodied from 21 NCAC 12 .0830 E.
January 2, 2020.
SECTION .0900 — HOMEOWNERS RECOVERY FUND
21 NCAC 12A .0901
Denitions
e following denitions apply to the Board’s administration of the
Homeowners Recovery Fund established pursuant to Article 1A,
Chapter 87 of the General Statutes:
(1) “Constructing or altering” means contracting for the construction or
alteration of a single-family residential dwelling unit.
(2) “Dishonest conduct” means conduct described in G.S. 87-15.5(3).
(3) “Incompetent conduct” means conduct which demonstrates a lack of
ability or tness to discharge a duty associated with undertaking to con-
struct or alter a single-family residential dwelling or the supervision of
such construction
or alteration.
(4) “Owner or former owner” means a person who contracted with a general
contractor for the construction or purchase of a single-family residential
dwelling unit. “Owner or former owner” does not include a person who
is a spouse, child, parent, grandparent, sibling, partner, associate, ocer,
or employee of a general contractor whose conduct caused a reimburs-
able loss. In addition, the term does not include general contractors or
any nancial or lending institution, or any owner or former owner of
56
a single-family residential dwelling unit that has been the subject of an
award from the Homeowners Recovery Fund resulting from the same
dishonest or incompetent conduct. “Owner or former owner” does not
include the owner of real property who purchased, owned, constructed,
altered, or contracted for construction or alteration of a single-family
residential dwelling unit without intending to occupy the single-family
residential dwelling unit as a residence.
(5) “Substantial completion” means that degree of completion of a project,
improvement or specied area or portion thereof whereupon the owner
can use the same for its intended use.
(6) “Separately owned residence” means a building whose construction is
governed by the Building Code Council pursuant to G.S. 143-138.
History Note: Authority G.S. 87-15.6; E. January 4, 1993; Amended E. April 1,
2014; July 1, 2008; April 1, 2007; April 1, 2001; August 1, 2000;
August 1, 1998; Recodied from 21 NCAC 12 .0901 E. January 2, 2020.
21 NCAC 12A .0902
Management of Fund
(a) e Secretary-Treasurer, as the Board’s Chief Administrative Ocer, shall:
(1) Establish a special account of the Board for those monies collected
pursuant to G.S. 87-15.6(b);
(2) Make expenditures from the fund as authorized by G.S. 87-15.7(b) by
signing checks for expenditures aer the checks are signed by
the Chairman.
(b) Until such time as the fund initially reaches two hundred y thousand dollars
($250,000.00),or at any time thereaer that the fund has insucient assets in excess
of two hundred y thousand dollars ($250,000.00) to pay outstanding claims, the
Secretary-Treasurer shall not disburse any payments to an applicant for recovery.
Any applicant who is awarded payment from the fund, however, shall hold a vested
right for payment once the fund reaches a sucient level. Authorized payments
which cannot be made due to lack of funds will be paid as funds become available,
beginning with those payments which have been unsatised for the longest period
of time.
(c) Monies forwarded to the Board pursuant to G.S. 87-15.6(b) for deposit into
the fund shall be accompanied by a veried statement signed by the city or county
inspector on a form provided by the Board. e form shall require information
concerning the number of permits issued by the reporting inspections department
from which the recovery fund fee was collected and the total dollar amount due to
the fund for that particular quarter.
History Note: Authority G.S. 87-15.6; 87-15.7; 87-15.8; E. January 4, 1993;
Pursuant to G.S. 150-B-21.3A, rule is necessary without substantive
public interest E. July 23, 2016;
Recodied from 21 NCAC 12 .0902
E. January 2, 2020.
21 NCAC 12A .0903
Application for Payment
(a) Homeowners meeting the requirements of G.S. 87-15.8 who wish to le for
reimbursement from the Homeowners Recovery Fund shall provide the following
information on an application prescribed by the Board:
1) the applicant’s name and address,
2) the amount of the claim,
3) a description of the acts of the general contractor which constitute the
grounds for the claim claim, and
57
4) a statement that the applicant has exhausted all civil remedies or the gen-
eral contractor has led for bankruptcy.
Requests for the application form shall be directed to the Board at the address
shown in Rule .0101 of this Chapter.
(b) If the applicant has exhausted all civil remedies pursuant to G.S. 87-15.8(3)(a),
the application shall include certied copies of the complaint, judgment, and return
of execution marked as unsatised.”
(c)
If the applicant is claiming against a general
contractor that w
as a corporation
dissolved no later than one year aer the date of discovery by the applicant of the
facts constituting the dishonest or incompetent conduct, then
the applicant shall
include certied copies of documents evidencing the dissolution.
(d) If the applicant has been precluded from ling suit, obtaining a judgment, or
otherwise proceeding due to the bankruptcy of the general contractor, then the ap-
plicant shall submit a certied copy of the bankruptcy petition, any proof of claim,
and documents from the bankruptcy court or trustee certifying that the applicant
has not and will not receive any payment from the bankruptcy proceeding.
(e) If the applicant is claiming against the estate of a deceased general contractor,
then the applicant shall submit a statement from the administrator of the estate cer-
tifying that the applicant has not and will not receive any payment from the estate.
(f) If the applicant includes copies of a judgment and return of execution marked
as unsatised, the applicant must demonstrate that the writ of execution was led
in the following counties:
(1) where the project at issue was located;
(2) where the contractor’s last known principal place of business was located;
and
(3) if the contractor was a licensee of the Board, the county in which the last
address provided to the Board was located.
History Note: Authority G.S. 87-15.6; 87-15.7; 87-15.8; E. January 4, 1993;
Amended E. March 1, 2005; August 1, 1998; Pursuant to
G.S. 150-B-21.3A, rule is necessary without substantive public interest
E. July 23, 2016; Amended E. September 1, 2019;
Recodied from
21 NCAC 12 .0903 E. January 2, 2020.
21 NCAC 12A .0904
Filing Deadline and Service
(a) Applicants seeking recovery from the fund shall be forever barred unless
application is made within one year aer termination of all proceedings, including
appeals, in connection
with an unsatised judgment obtained against a general
contractor. Claims based upon the bankruptcy, death, or dissolution of the general
contractor shall be forever barred unless application is made within three years from
the date of discovery by the applicant of the facts constituting the dishonest or in
-
competent conduct or within six years of substantial completion of the construction
or alteration of the residence in question, whichever comes rst.
(b) Applications shall be led at the address shown in Rule .0101 of this Chapter.
e Board shall serve a copy of the application upon the general contractor who
allegedly caused the loss. Service shall be accomplished by certied mail, return
receipt requested, or other methods authorized by G.S. 150B-38(c).
58
History Note: Authority G.S. 87-15.6; 87-15.7; 87-15.8; E. January 4, 1993;
Amended E. April 1, 2007; August 1, 1998;
Recodied from
21 NCAC 12 .0904 E. January 2, 2020.
21 NCAC 12A .0905
Multiple Claims
(a) Any time the Board has notice of more than one application or potential claim
for payment from the fund arising out of the conduct of a single general contractor,
the Board may, in its discretion, direct that all applications led before a date deter-
mined by the Board, be consolidated for hearing.
(b) When consolidation is appropriate, the Board shall issue to the general con-
tractor, the applicants and potential claimants, an Order of Consolidation setting
forth the deadline for ling all applications to be consolidated. On or before the
deadline, the Board may, in its discretion, either extend the deadline or issue to
the general contractor and all applicants notice of the time, date and place set for a
hearing on the consolidated applications.
(c) Claims for which the Board has received no notice or for which no application
has been led prior to the deadline set forth in the Order of Consolidation shall not
be considered by the Board until aer the completion of all proceedings relating to
the consolidated applications and payment thereon.
History Note: Authority G.S. 87-15.6; 87-15.7; E. January 4, 1993; Pursuant to
G.S. 150-B-21.3A, rule is necessary without substantive public
interest E. July 23, 2016;
Recodied from 21 NCAC 12 .0905
E. January 2, 2020.
21 NCAC 12A .0906
Processing of Claim Application
(a) Sta shall refer a led application to the Recovery Fund Review Committee.
T
he Recovery Fund Review Committee is a committee made up of the following
individuals:
(1) one member of the Board;
(2) the legal counsel of the Board; and
(3) the Secretary-Treasurer.
(b) Within 30 days aer service of a copy of the application upon the general con-
tractor, the general contractor may le a response to the application setting forth
answers and defenses. Responses shall be led with the Board and copies shall be
served on the applicant.
(c) e Committee shall dismiss a claim if an applicant fails to respond to an in-
quiry from the Committee or its representative within six months of receipt of
the inquiry.
(d) Aer all preliminary evidence has been received, the Committee shall make a
recommendation regarding the disposition of the application. From the evidence,
it shall recommend to the Board that:
(1) the application be dismissed as meritless; or
(2) the application and charges contained therein be presented to the
Board for a hearing and determination by the Board on the merits of
the application.
(e) e Committee shall give notice of the recommendation to the applicant and
the general contractor within 10 days of the Committee’s decision. e Committee
is not required to notify the parties of the reasons for its recommendation. e
decision of the Board is nal.
59
History Note: Authority G.S. 87-4; 87-15.6; 87-15.7; 87-15.8; E. January 4, 1993;
Amended E. April 1, 2007; Pursuant to G.S. 150-B-21.3A, rule is
necessary without substantive public interest E. July 23, 2016;
Recodied from 21 NCAC 12 .0906 E. January 2, 2020.
21 NCAC 12A .0907
Homeowners Recovery
Fund Hearing
(a) If it is determined by the Recovery Fund Review Committee that the Board
should conduct a hearing on an application, the Board shall give the applicant
and general contractor notice of hearing not less than 15 days before the hearing.
Notice of hearing to the general contractor shall be sucient if mailed to the last
known address of the general contractor at least 15 days prior to the date of the
hearing. e notice shall contain the following information:
(1) e name, position, address and telephone number of a person at the
oces of the Board to contact for further information or discussion;
(2) e date, time, and place for a pre-hearing conference, if any; and
(3) Any other information being relevant to informing the parties as to the
procedure of the hearing.
(b) All homeowners recovery fund hearings shall be conducted by the Board or a
panel consisting of a majority of the members of the Board.
(c) e provisions of 21 NCAC 12 .0825 governing disqualication of Board mem-
bers shall also govern hearings conducted pursuant to this Section.
(d) Should a party fail to appear at a hearing, the Board may proceed with the
hearing and make its decision in the absence of the party, provided that the party
has been given proper notice.
(e) Any party may be a witness and may present witnesses on the party’s behalf
at the hearing. e Board sta may also present evidence and participate at the
hearing. All oral testimony at the hearing shall be under oath or armation. At
the request of a party, the presiding ocer may exclude witnesses from the hearing
room so that they cannot hear the testimony of other witnesses.
(f) At the hearing, the applicant shall be required to show:
(1) He has suered a reimbursable loss as dened in G.S. 87-15.5(6) and
Rule .0901(c) of this Chapter in the construction or alteration of a sin-
gle-family dwelling unit owned or previously owned by that person, pro-
vided, that if there have been ndings entered in a contested civil action
relevant to the issue of whether the applicant has suered a reimbursable
loss, then such ndings shall be presumed as established for purposes of
this Section subject to rebuttal by the general contractor;
(2) He did not, directly or indirectly, obtain the building permit in his own
name or did use a general contractor;
(3) He has made application within one year aer the termination of all
judicial proceedings, including appeals, in connection with the unsat-
ised judgment or within the period prescribed in Rule .0904(a) of this
Chapter for claims based upon the automatic stay provisions of Section
362 of the U.S. Bankruptcy Code;
(4) He has diligently pursued his remedies against the general contractor
and on any applicable bond, surety agreement or insurance contract,
and attempted execution on the judgments against all judgment debtors
without success.
60
(g)
e general contractor shall be permitted to participate in the hearing as a
party and shall have recourse to all appropriate means of defense, including the
examination of witnesses.
History Note: Authority G.S. 87-15.5; 87-15.6; 87-15.7; 87-15.8; E. January 4,
1993; Amended E. August 1, 2000; Pursuant to G.S. 150-B-21.3A,
rule is necessary without substantive public interest E. July 23, 2016;
Recodied from 21 NCAC 12 .0907 E. January 2, 2020.
21 NCAC 12A .0908
Order Directing Payment
From Fund
Aer any hearing, the Board may nd that an applicant should be paid from the
fund and the Board may enter an Order requiring payment from the fund in what-
ever sum the Board deems appropriate in accordance with the limitations con-
tained in Rule .0910 of this Chapter. All payments are a matter of privilege and not
of right.
History Note: Authority G.S. 87-15.5; 87-15.6; 87-15.7; 87-15.8;
E. January 4, 1993; Pursuant to G.S. 150-B-21.3A, rule is
necessary without substantive public interest E. July 23, 2016;
Recodied from 21 NCAC 12 .0908 E. January 2, 2020.
21 NCAC 12A .0909
Settlement of Claims
e claim or claims forming the basis of an application for recovery from the fund
may be compromised and settled by the applicant and the general contractor aer
the ling of the application. e parties shall notify the Board immediately of any
such settlement. Payment of the claim, in whole or in part, by the general contrac-
tor as part of a settlement will result in the claim no longer being a “reimbursable
loss” as dened by G.S. 87-15.5(6)(b), and the claim will be dismissed by the Board.
History Note: Authority G.S. 87-15.6; 87-15.7; 87-15.8; E. January 4, 1993;
Pursuant to G.S. 150-B-21.3A, rule is necessary without substantive
public interest E. July 23, 2016;
Recodied from 21 NCAC 12 .0909
E. January 2, 2020.
21 NCAC 12A .0910
Limitations; Pro Rata
Distribution
(a) Payments from the fund for an approved application shall not exceed an
amount equal to 10 percent of the total amount in the fund at the time the applica-
tion is approved by the Board. All applications considered by the Board at the same
meeting shall be subject to the same limitation.
(b) Consequential damages, multiple or punitive damages, civil or criminal penal-
ties or nes, incidental damages, special damages, interest, and court costs shall not
constitute monetary losses.
History Note: Authority G.S. 87-15.6; 87-15.7; 87-15.8; E. March 1, 1993; Pursuant
to G.S. 150-B-21.3A, rule is necessary without substantive public
interest E. July 23, 2016;
Recodied from 21 NCAC 12 .0910 E.
January 2, 2020.
21 NCAC 12A .0911
Subrogation of Rights
When the Board has paid from the fund any sum to the applicant, the Board shall
be subrogated to the rights of the applicant and the applicant shall assign to the
Board all of his rights, title, and interest in the claim to the extent of the amount
paid from the fund.
History Note: Authority G.S. 87-15.6; 87-15.7; 87-15.9; E. January 4, 1993;
Pursuant to G.S. 150-B-21.3A, rule is necessary without substantive
public interest E. July 23, 2016;
Recodied from 21 NCAC 12 .0911
E. January 2, 2020.
61
21 NCAC 12A .0912
Actions Against
General Contractor
Nothing contained in these Rules shall prohibit or limit the authority of the Board
to take disciplinary action against its licensees or to seek injunctive relief against
those persons who have engaged in the unauthorized practice of general contract
-
ing. Stipulations made between the general contractor and the applicant as part of
settlement or compromise of any claim shall not be binding on the Board in any
disciplinary proceeding or action for injunction.
History Note: Authority G.S. 87-11; 87-13; 87-13.1; 87-15.6;
E. January 4, 1993; Pursuant to G.S. 150-B-21.3A, rule is
necessary without substantive public interest E. July 23, 2016;
Recodied from 21 NCAC 12 .0912 E. January 2, 2020.
SUBCHAPTER 12BCONTINUING EDUCATION
SECTION .0100 GENERAL
21 NCAC 12B .0101
General
(a) To ensure continuing eorts on the part of licensed general contractors to
remain current with new developments in all aspects of general contracting and to
encourage better business practices and safety in the profession, continuing educa-
tion is required as a condition of license renewal. If required pursuant to G.S. 87-
10.2(a), a licensee shall submit, as a part of his or her renewal application, evidence
that he or she has met the Board’s continuing education requirements as set forth
in this Section. Except as provided in Rule .0104 of this Subchapter, renewal appli-
cations that do not contain this information shall be deemed incomplete.
(b) is Subchapter shall apply to all aspects of continuing education as set forth in
G.S. 87-10.2.
(c) For the purposes of this Subchapter, the terms “sponsor” and “provider” shall
be synonymous.
History Note: Authority G.S. 87-10.2; Temporary Adoption E. January 2, 2020.
21 NCAC 12B .0102
Continuing Education Credit
(a) Beginning with renewals led for the 2021 license year, a licensee shall des-
ignate at least one qualier who shall complete eight continuing education (CE)
hours during the year preceding renewal.
(b) For the purposes of this Subchapter, “elective courses” are dened as courses
relating to the subject matter of general contracting as described in G.S. 87-1 and
87-10 that address general business practices, including business planning, con-
tracts, liability exposure, human resources, basic accounting, nancial statements,
and safety.
(c) One credit hour is equal to 50 minutes of instructional time.
History Note: Authority G.S. 87-1; 87-10; 87-10.2;
Temporary Adoption E. January 2, 2020.
21 NCAC 12B .0103
Continuing Education Records;
Audit
(a) A licensee shall maintain records of a qualier’s attendance at continuing edu-
cation programs for which CE credit has been approved for four years following the
processing date of the renewal application to which the CE credits were applied.
62
(b) Compliance with annual CE requirements shall be determined through a
random audit process conducted by the Board. Licensees selected for auditing shall
provide the Board with the following documentation of the CE activities claimed
for the renewal period:
(1) attendance verication records; and
(2) information regarding course content, instructors, and sponsoring
organization.
(c) Licensees selected for audit shall submit all requested information to the Board
within 21 calendar days aer the date the licensee was notied by the Board of the
audit.
(d) Failure to maintain compliance with the Board’s continuing education require-
ments shall result in the licensee’s status being changed to invalid except as set forth
in G.S. 87-10.2(h).
History Note: Authority G.S. 87-10.2(h); Temporary Adoption E. January 2, 2020.
21 NCAC 12B .0104
Extension of Time
(a) e Board shall grant a licensee an extension of time to complete CE require-
ments during a period of service in the Armed Forces of the United States upon
submission of the following to the Board:
(1) written request for an extension; and
(2) documentation that the licensee or his or her qualier is serving in the
Armed Forces of the United States and is eligible for an extension of time
to le a tax return pursuant to G.S. 105-249.2.
(b) e Board shall grant a licensee an extension of time to obtain CE require-
ments if he or she or his or her qualier has a disability or illness that prevents
him or her from complying with CE requirements. In order to receive the waiver, a
licensee shall provide the Board with the following:
(1) written request for waiver; and
(2) documentation that describes the disability or illness and explains how
the disability or illness prevents the licensee’s qualier from complying
with the Board’s CE requirements. Documentation includes a letter from
a licensed physician, nurse practitioner (NP), or physician assistant (PA).
(c) Where on a case-by-case basis the Board determines that due to an undue
hardship (such as natural disaster or illness of family member) the licensee could
not reasonably be expected to comply with the Board’s CE requirements, the licens-
ee shall be granted an extension of time in which to obtain the required CE credits.
To be considered for an extension of time, a licensee shall submit the following:
(1) written request for extension; and
(2) documentation that supports the reason for the extension.
(d) e Board shall grant a waiver of CE requirements upon submission of doc-
umentation that a licensee or his or her qualier is in active duty while serving in
the Armed Forces and is or has been deployed for at least eight months during the
twelve-month period during which CE credits were required.
(e) An extension granted under Paragraphs (b) or (c) of this Rule shall not
exceed one year. Prior to the expiration of the one year extension of time, a
licensee may request an additional extension in accordance with this Rule. Except
63
as set out in Paragraph (a) of this Rule, the Board shall grant no more than two
consecutive extensions.
History Note: Authority G.S. 87-10.2(j); 93B-15; 105-249.2;Temporary Adoption E.
January 2, 2020.
21 NCAC 12B .0105
Inactive Status
(a) Applications for inactive status as described in G.S. 87-10.2(h) shall contain the
following:
(1) license name and number issued by the Board;
(2) name(s) of qualier(s);
(3) if required, proof of active license status with the Board; and
(4) certication that the individual submitting the request is authorized by
the licensee to do so.
(b) If a licensee on inactive status fails to renew his or her license as of January 1
of the following year, the license shall become invalid in accordance with Article 1,
Chapter 87 and the rules set forth in 21 NCAC 12A.
(c) A licensee on inactive status who wishes to return to active status shall submit
an application to the Board that contains the following information:
(1) license name and number issued by the Board;
(2) name(s) of qualier(s) and the classications in which they qualify;
(3) application renewal fee and, if applicable, late fees as set out in G.S. 87-
10(e) and Rule .0304 in 21 NCAC 12A .0304; and
(4) proof of completion of continuing education requirements as set forth in
G.S. 87-10.2(h).
History Note: Authority G.S. 87-1; 87-10; 87-10.2(h);Temporary Adoption E.
January 2, 2020.
SECTION .0200 PROVIDERS
21 NCAC 12B .0201
Application For Initial
Approval of Continuing
Education Provider
(a) Only continuing education providers approved by the Board shall be eligible to
oer continuing education courses.
(b) Prospective providers of all courses must obtain written approval from the
Board to conduct such course prior to conducting the course and prior to adver-
tising or otherwise representing that the course is or may be approved for general
contractor continuing education credit in North Carolina. No retroactive approval
to conduct a continuing education course will be granted.
(c) Any entity seeking initial approval to be a continuing education provider shall
make application on a form available on the Board’s website that requires the appli-
cant to set forth:
(1) the legal name of applicant and any assumed business name;
(2) the applicant’s mailing address, telephone number, and email address;
(3) the SOS ID number issued by the NC Secretary of State, if applicable;
(4) the legal name(s) of the provider’s owner(s), member(s), manager(s), or
partner(s);
64
(5) the name of a continuing education coordinator who shall serve as the
contact person for the provider; and
(6) the signature of the applicant or its legal designee.
(d) e name of any course provider shall not be identical or similar so as to
cause confusion to the name of any other approved continuing education course
provider.
(e) Continuing education providers shall notify the Board in writing within 10
days of any change in business name, ownership interest, continuing education
coordinator, address, business telephone number, or email address.
History Note: Authority G.S. 87-10.2(c); Temporary Adoption E. January 2, 2020.
21 NCAC 12B .0202
Expiration and Renewal of
Provider Approval
(a) All Board approvals issued to providers shall expire annually on December 1
following issuance of approval.
(b) A provider shall submit an application for renewal of its approval within 45
days immediately preceding expiration of approval on a form available on the
Board’s website. e provider renewal application form shall include:
(1) the provider’s name;
(2) the provider ID number issued by the Board;
(3) the name of the provider’s designated continuing education coordinator;
(4) the provider’s mailing address, telephone number, and web address, if
applicable;
(5) any change in the provider’s business entity; and
(6) the signature of the provider or its legal designee.
(c) f a provider’s approval has expired, the provider shall submit an application as a
new applicant.
History Note: Authority G.S. 87-10.2; Temporary Adoption E. January 2, 2020.
21 NCAC 12B .0203
Denial or Withdrawal of Provider
Approval
(a) e Board may deny or withdraw approval of any continuing education provid-
er upon nding that the provider or the continuing education coordinator in the
employ of the provider:
(1) made any false statements or presented any false, incomplete, or incor-
rect information in connection with an application for course or provider
approval or renewal;
(2) made any false statements in course advertisement or promotional mate-
rials;
(3) provided false, incomplete, or incorrect information in connection with
any reports the continuing education provider is required to submit to
the Board;
(4) provided the Board a check or credit card for required fees that was not
honored by a nancial institution or bank or returned for insucient
funds;
(5) collected money from licensees and qualiers for a continuing education
course but refused or failed to provide the promised instruction;
65
(6) intentionally provided false, incomplete, or misleading information relat-
ing to general contractors licensing, education matters, or the qualier’s
education requirements or license status;
(7) failed to submit the CE Roster Reports as required by Rule .0206 of this
Subchapter;
(8) failed to submit the per student fee as required by 21 NCAC 12A .0304;
or
(9) failed to comply with any other provision of this Chapter.
(b) A licensed general contractor and its qualier(s) shall be subject to disci-
pline pursuant to G.S. 87-11 if the licensee or its qualier(s) engages in dishonest,
fraudulent, or improper conduct in connection with the operations of a continuing
education course provider if that licensee or qualier(s):
(1) has an ownership interest in the course provider;
(2) is the designated continuing education coordinator for the course provid-
er; or
(3) is an instructor for the course provider.
(c) When ownership of an approved continuing education provider is transferred
to a separate legal entity, the provider’s approval is not transferable and shall termi-
nate on the eective date of the transfer. All courses shall be completed by the eec-
tive date of the transfer. e transferring owner shall report course completion(s)
to the Board. e new entity shall obtain an original continuing education provider
approval as required by Rule .0202 of this Subchapter prior to advertising courses,
registering students, accepting tuition, conducting courses, or otherwise engaging
in any provider operations.
History Note: Authority G.S. 87-10.2(b) and (c); Temporary Adoption E.
January 2, 2020.
21 NCAC 12B .0204
Attendance; Roster Reports
and Certicates
(a) Qualiers shall provide proof of identity upon arrival at a class session.
(b) At the conclusion of any continuing education course, the provider shall sub-
mit to the Board a CE Roster Report verifying each qualier’s completion of the
course. e CE Roster Report shall be submitted to the Board and shall contain the
following:
(1) provider’s name;
(2) provider’s ID number assigned by the Board;
(3) course instructor’s name and ID number;
(4) course’s name and ID number;
(5) course completion date; and
(6) name and qualier ID number of each student who completed the
course.
(c) Providers shall submit the CE Roster Report electronically to the Board within
seven calendar days following the end of any course, but in no case later than
December 7.
(d) Providers shall submit the per student fee required by 21 NCAC 12A .0304
with the CE Roster Report.
66
(e) Providers shall provide a course completion certicate to each student who
completes an approved continuing education course. Providers shall provide a
printed or electronic certicate to a student within 10 days following the course,
but in no case later than December 7, for any course completed prior to that date.
(f) A student shall not be issued a completion certicate and shall not be reported
to the Board as having completed a course unless the student satises the atten-
dance requirements set forth in this Subchapter.
History Note: Authority G.S. 87-10.2(d) and (e); Temporary Adoption E.
January 2, 2020.
21 NCAC 12B .0205
Course Scheduling
Continuing education providers shall not oer, conduct, or allow a student to
complete any continuing education course between December 1 and December 31,
inclusive.
History Note: Authority G.S. 87-10.2(b); Temporary Adoption E. January 2, 2020.
21 NCAC 12B .0206
Records And Board Review
(a) All providers shall retain on le for four years records of student registration
and attendance for each session of an approved continuing education course that is
conducted and shall make such records available to the Board upon request during
an investigation.
(b) Providers shall admit any Board authorized representative to monitor any
continuing education class without prior notice. Such representatives shall not be
required to register or pay any fee and shall not be reported as having completed
the course.
History Note: Authority G.S. 87-10.2(b); Temporary Adoption E. January 2, 2020.
SECTION .0300 COURSES
21 NCAC 12B .0301
Course Requirements
(a) All continuing education courses shall:
(1) cover subject matter related to the practice of general contracting and of-
fer knowledge or skills that will enable general contractors to better serve
consumers and the public interest;
(2) oer two or four continuing education credit hours;
(3) include materials for students that provide the information to be present-
ed in the course; and
(4) be taught only by an instructor who possesses education or experience in
a eld directly related to the course.
(b) Mandatory courses shall cover subject matter as established by the Board.
(c) Providers shall submit all elective courses to the Board for approval pursuant to
Rule .0302 of this Subchapter.
(d) Providers shall obtain approval from the Board before making any changes in
the content of a prior approved elective course. Requests for approval of changes
shall be made in writing.
History Note: Authority G.S 87-10.2(b); Temporary Adoption E. January 2, 2020.
67
21 NCAC 12B .0302
Approval and Renewal of
Elective Course
(a) Prior to obtaining the Board’s written approval of a continuing education
elective course, providers shall not oer, advertise, or otherwise represent that any
continuing education elective course is, or may be, approved for continuing educa-
tion credit in North Carolina.
(b) A provider seeking initial approval of a proposed elective course shall complete
an application on a form available on the Board’s website that requires the applicant
to set forth the following:
(1) title of the proposed elective course;
(2) provider’s legal name, address, and telephone number;
(3) continuing education coordinator’s name;
(4) provider’s ID number, if previously approved;
(5) credit hours awarded for completing the course;
(6) subject matter of the course;
(7) identity of the course content owner;
(8) written permission of the course content owner, if other than the appli-
cant;
(9) identity of prospective instructors; and
(10) signature of the provider or its legal designee.
(c) e application for initial approval shall be accompanied by a copy of the
elective course guide, which shall include course objectives, learning objectives for
each topic, a timed outline, instructional methods and aids to be employed, and all
materials that will be provided to students.
(d) A provider seeking approval to oer an already approved elective course shall
complete an application on a form available on the Board’s website that requires the
applicant to submit the following:
(1) title of the elective course;
(2) applicant’s legal name, address, and telephone number;
(3) applicant’s continuing education coordinator’s name;
(4) applicant’s continuing education provider code, if previously approved;
(5) identity of the course content owner;
(6) written permission of the course content owner, if other than the appli-
cant;
(7) identity of prospective instructors;
(8) signature of the provider or its legal designee; and
(9) certication that there have been no substantial changes to the course
materials since the course was last approved.
(g) All applications for approval and renewal of elective courses shall be accompa-
nied by fees as required by 21 NCAC 12A .0304.
(h) Board approval of all continuing education elective courses shall expire on
December 1 of each year.
(i) In order to obtain approval for an expired continuing education elective, a
course provider shall submit an application for initial approval.
History Note: Authority G.S. 87-10.2(b); Temporary Adoption E. January 2, 2020.
68
21 NCAC 12B .0303
Mandatory Course
(a) e Board shall annually develop a Mandatory course as described in G.S. 87-
10.2(b) and shall provide instructional materials for use by providers.
(b) Only approved continuing education providers shall oer the Mandatory
course to students. Only approved instructors pursuant to Rule .0401 of this
Subchapter shall instruct the Mandatory course.
(c) Providers shall obtain written approval from the Board prior to oering,
advertising, or otherwise representing that any Update course is being oered for
continuing education credit in North Carolina.
(d) A provider seeking approval to oer the Mandatory course shall submit an
application form available on the Board’s website that shall require the following:
(1) provider’s legal name, address, telephone number, and website:
(2) continuing education coordinator’s name;
(3) if applicable, provider’s ID number assigned by the Board;
(4) if applicable, name and instructor ID number of prospective instructors;
and
(5) signature of the applicant or its legal designee.
(e) A provider may obtain approval from the Board to oer the Mandatory course
by requesting it on the application or renewal of the provider’s approval.
(f) All supplemental materials distributed to Mandatory course attendees shall be
developed solely by the Board or its designee. Such materials shall be distributed to
each student taking the Mandatory course.
(g) Board approval to oer Mandatory courses shall expire annually on November
30 following issuance of approval. Providers shall apply for renewal of approval to
oer Mandatory courses along with the renewal of provider approval required in
Rule .0202 of this Subchapter.
(h) All Mandatory course materials developed by the Board are the sole property
of the Board and are subject to the protection of federal copyright laws. Violation
of the Board’s copyright with regard to these materials shall be grounds for disci-
plinary action or other action as permissible by law.
History Note: Authority G.S. 87-10.2(c); Temporary Adoption E. January 2, 2020.
SECTION .0400 INSTRUCTORS
21 NCAC 12B .0401
Application And Criteria For
Initial Instructor Approval
(a) A provider seeking initial instructor approval shall submit an application on a
form available on the Board’s website that requires the instructor applicant to indi-
cate the course(s) for which he or she is seeking approval and set forth the instruc-
tor applicant’s:
(1) legal name, address, email address, and telephone number;
(2) general contractor’s license number, qualier ID number, and instructor
ID number, if any, assigned by the Board;
(3) education background, including specic general contracting education;
(4) experience in the general contracting industry;
(5) professional licenses or certications held by the prospective instructor;
(6) teaching experience, if any; and
69
(7) signature of the prospective instructor.
(b) Prior to teaching the Mandatory course, an instructor shall attend the Board’s
Mandatory Instructor Seminar for the designated license year.
(c) Approved instructors who are also qualiers shall receive one hour of CE credit
for each one hour of class instruction. Course providers shall be responsible for
payment of all CE fees for instructors seeking CE credit.
History Note: Authority G.S. 87-10.2(b) and (d); Temporary Adoption E.
January 2, 2020.
21 NCAC 12B .0402
Renewal And Expiration of
Instructor Approval
(a) Board approval of instructors shall expire annually on December 1 following
issuance of Board approval.
(b) A provider shall le an application for a previously approved instructor renewal
no less than 30 days immediately preceding expiration of approval. e instructor
renewal application shall include the instructor’s:
(1) legal name, address, email address, and telephone number;
(2) general contractor’s license number and qualier ID number, if applica-
ble, and instructor ID number assigned by the Board;
(3) course name(s) and course number(s) for which the provider is seeking
approval as an instructor; and
(4) signature.
(c) In order to reinstate an instructor approval that has been expired for less
than six months, the former instructor shall meet the requirements set forth in
Paragraph (b) of this Rule.
(d) If an instructor approval has been expired for more than six months, the pro-
vider shall le an application for initial instructor approval pursuant to Rule .0401
of this Subchapter.
History Note: Authority G.S. 87-10.2(d); Temporary Adoption E. January 2, 2020.
21 NCAC 12B .0403
Denial or Withdrawal of
Instructor Approval
e Board may deny or withdraw approval of any instructor applicant or approved
instructor upon nding that the instructor or instructor applicant:
(1) has failed to meet the criteria for approval described in Rule .0401 of this
Subchapter or the criteria for renewal of approval described in Rule .0402
of this Subchapter at the time of application or at any time during an
approval period;
(2) made any false statements or presented any false, incomplete, or incorrect
information in connection with an application for approval or renewal
of approval or any report that is required to be submitted in accordance
with this Subchapter;
(3) has failed to submit to the Board any report, course examination, or vid-
eo recording required by this Subchapter;
(4) has failed to demonstrate the ability to teach any elective or Mandatory
course in a manner consistent with the course materials;
(5) engaged in any other improper, fraudulent, or dishonest conduct as de-
termined by the Board; or
(6) failed to comply with any other provisions of this Chapter.
History Note: Authority G.S. 87-10.2(d); Temporary Adoption E. January 2, 2020.
