You've got the section right there, from the 1977 Bee Law. It's phrased as "may" but treated by the Ag Dept as "shall". If you feel like challenging current practice, you can make a semantic argument but I wouldn't suggest it - there's no need.
You don't have to have your hives inspected unless you sell bees, but to have your hives inspected they must have movable comb (not necessarily in frames). Don Hopkins, the inspector for central NC, is pretty clear when you speak to him about what is reasonable. He doesn't have any problem with unusual hives (I use long hives and no foundation myself), or with not treating, and doesn't involve himself in beekeepers' decisions about how to keep. If you ask him to inspect a hive, though, he will not certify it as healthy unless he can move combs and examine the entire hive.
My understanding is that part of the point of having a Warre is that one not open the hive and disturb the comb as in an inspection. That's perfectly fine and completely legal in NC, unless you want to sell bees (or more than 10 hives) from that yard, in which case you will have to choose between the Warre method and your bee sales permit.
Keeping a Warre (or any other kind of hive, skep, whatever) is completely legal provided it is for fun and experimentation rather than commercial bee sales.
No commercial intentions, just garden hive's and learning! Wanted a copy of the regulations for my journal to understand my privileges.