We have a couple of folks here from the PRC but as John says, this is certainly not a NEC issue.
Is this a code inspector or a "home" inspector?The latter are notorious for not understanding codes and citing strange issues.
I poked around a little and Lutron has this on their page.
CA Title 24 Residential Lighting Requirements Summary
Starting January 1, 2017, California Title 24 will require the following in all new residential construction and renovation requiring a permit:
At least one vacancy sensor installed to control lights in bathrooms, garages, laundry rooms, and utility rooms.
A dimmer or vacancy sensor installed to control all indoor recessed ceiling downlights and all indoor permanently installed lighting containing screw-in lamps or LED lights.12
I did look at the actual code and it is not very intuitive to read. I was not really ready to wade through it.
http://www.energy.ca.gov/title24/2016standards/index.html
