In California, I believe that in new construction (definitely) and additions, the code requires AFCIs in the bedrooms. It depends on the local building department too. Some are proactive, others are ostrichs and stick their heads in the sand.
Yes Todd we didn’t adopt the 02 code until 2005. Tucson, like a lot of cities, is 3 years behind on adopting codes.
I am a new member and just ran into a situation when my neighbor installed a 200 amp whole house standby generator. The electrical contractor sold my neighbor a 200 amp Gen to service a 35-40 year old 100 amp house. His method of install was to remove all the breakers from a combo/meter main leaving only the 40 year old 100amp main breaker. Then he installed a new 200 amp 20 space panel next to the old main panel. In the old panel he made all his twist nut connections and lengthened only the hot wires, leaving all grounds and neutrals in the old main panel. Next to the new sub-panel is the 200 amp automatic disconnect system. The electrician claims that in this installation he does not have to address any AFCI at all. An other question I had with the installation was that he did not isolate the neutral and ground in the sub-panel. He installed the famous green screw through the neutral bar to the metal enclosure and added a cross over ground bar from neutral bar to ground bar. I am in the understanding that any circuits outside the main box is considered a sub-panel. Is it because he left the main box with only the hot wires this is OK? All future circuits going into the new sub-panel will not be isolated either. He also used white wires as hot wires without putting black tape on then to indicate they are hot. Then he added two Eaton circuit breakers in a Siemens panel which clearly reads only Siemens breakers are to be used in this panel using any other brand other than Siemens will void the warranty.
The electrician’s contract stated he would supply a permit which he did not. The homeowner was told by the electrician he did not need one. The County said he did so the owner got the permit and paid for it and had them inspect it. To my amazement and everything I am learning IT PASSED inspection. How is that?
:neutral:
So you have two issues here as I see it.
First, I suspect the work was done prior to Jan 1, 2017. All the new codes kicked in on that date.
Your neighbor should have never paid the electrician for the job until the completed permit was delivered. I’m sure the electrician included the cost in his bid but your neighbor paid for it himself.
Your local Authority Having Jurisdiction (building department) has the final say. I live in Northern CA and ran into a situation last year where an AHJ where I had a main panel on the exterior of the garage with a main disconnect and branch circuits and a sub-panel directly behind it on the garage interior. The sub-panel had neutrals and grounds on the same buss. I called it our and received a call from the electrician saying it was fine. In following up with the AHJ I was advised that they have a policy that says if the sub-panel is within 2 feet of the main they consider it a main panel and neutrals and grounds are allowed to be tied.
So my bottom line is I may not take the electricians word for it but if the AHJ says it is approved I will not argue.
A few things, you cannot re-identify a white conductor as a phase conductor unless it originates in a cable. AFCI protection is required if the original circuit conductors are extended more than 6’. Also how does the utility power connect to the ATS? And do you have some photo’s to post? 
Only if adopted by the local jurisdictions. I know of some that are several code cycles behind.
This is CA. Just went through the update class.
I came across this video on youtube that has some interesting points on the matter. Hopefully it’s beneficial for some of you.https://www.youtube.com/watch?v=J5rtDn4bZYg
Cheers
http://www.bmrelectric.ca