New Jersey-2018-S3880-Introduced

An Act establishing a program for expedited inspections under the construction code, and supplementing and amending P.L.1975, c.217.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. (New section) a. (1) The commissioner, in consultation with the code advisory board, shall promulgate rules and regulations establishing standards, procedures, and other requirements for an optional program providing expedited inspections of construction undertaken pursuant to a construction permit.

(2) The expedited inspection program shall provide that:

(a) a municipal governing body may participate in the program by requiring its enforcing agency to conduct expedited inspections;

(b) an owner of a project located in a municipality that is not requiring its enforcing agency to conduct expedited inspections may select a private inspection agency to conduct expedited inspections;

(d) an owner may opt to participate in the expedited inspection program at the time of submission of an application for a construction permit pursuant to section 12 of P.L.1975, c.217 (C.52:27D-130);

(e) an owner participating in the expedited inspection program shall pay a premium in addition to all otherwise applicable fees; and

(f) each expedited inspection shall be completed within two calendar days of an owner's request for an inspection.

b. (1) A municipal governing body, in consultation with the construction official of its enforcing agency, shall determine whether the enforcing agency shall conduct expedited inspections or whether an owner may retain a private inspection agency to conduct expedited inspections. Regardless of whether expedited inspections are conducted by an enforcing agency or a private inspection agency, the enforcing agency shall retain the power and responsibility over issuance of the certificate of occupancy under section 15 of P.L.1975, c.217 (C.52:27D-133).

(a) An enforcing agency that conducts expedited inspections may conduct those inspections outside of the hours specified in section 14 of P.L.1975, c.217 (C.52:27D-132).

(b) The enforcing agency shall observe the progress of a construction project receiving expedited inspections by a private inspection agency and shall retain jurisdiction over the project in order to be responsive to inquiries from the general public and from special interests, to the needs of the owner and the private inspection agency, and to the obligations and requirements imposed by the code.

(2) An owner applying to participate in the expedited inspection program shall submit payment of all applicable fees, together with an expedited inspection premium fee of $200 per inspection, to the enforcing agency together with the application for a construction permit, unless the municipality establishes an alternative premium fee price, or variety of alternative prices depending on the size and complexity of the application. If the enforcing agency does not conduct expedited inspections, at the time of submission of an application for a construction permit, the owner shall identify the private inspection agency the owner has selected to conduct expedited inspections. The enforcing agency shall deliver payment of the expedited inspection premium fee to the private inspection agency selected to conduct expedited inspections.

c. (1) The department shall establish a program for the licensure and authorization of business entities as private inspection agencies for the purpose of contracting with owners to conduct expedited inspections. No business entity shall conduct expedited inspections under a construction permit or enter into any contract to do so without first receiving the licensure and authorization of the department. The department may impose and collect fees from applicants for licensure and authorization under this section.

(2) Licensure and authorization of a business entity as a private inspection agency shall include, but not be limited to, consideration of the qualifications of the management and technical personnel of the business entity, the fiscal integrity of the business entity, and the ability of the business entity to perform expedited inspections within the requisite time frames in a manner sufficient to ensure that the construction is performed in accordance with the conditions of the construction permit and the requirements of the code.

(3) A private inspection agency shall not employ a person as an officer or inspectors unless the person is certified by the department in the appropriate subcode.

(4) A private inspection agency shall be subject to the orders and directives of the municipal construction official and the department in matters relating to the enforcement of the code.

(5) A private inspection agency shall maintain records of all inspections and any other information that may be required by the municipal construction official or the department. These records shall be open to department audit and shall not be destroyed or removed from the offices of the private inspection agency without the permission of the department.

(6) A private inspection agency shall not directly collect fees from the owner, or any agent or employee of the owner. The enforcing agency shall be the sole agent for the collection and delivery of an expedited inspection premium fee to a private inspection agency.

d. (1) Except as otherwise provided in this section, a private inspection agency that has contracted to perform expedited inspections for a project shall carry out its obligations under the contract and applicable provisions of law until full completion of the project, as evidenced by the enforcing agency's issuance of a certificate of occupancy.

(2) A private inspection agency conducting expedited inspections shall have all of the powers, and shall be subject to all of the requirements, applicable to an enforcing agency with regard to conducting inspections under P.L.1975, c.217 (C.52:27D-119 et seq.), however, the private inspection agency shall be obligated to conduct inspections in an expedited timeframe.

(3) A private inspection agency conducting expedited inspections shall:

(a) maintain all inspection records applicable to each construction permit;

(b) maintain an adequate number of certified staff to conduct expedited inspections for all classes of structure consistent with the private inspection agency's licensure and certification;

(c) provide adequate supervision of employees and ensure that an employee is properly licensed and certified before conducting an inspection;

(d) carry insurance as may be required by the department; and

(e) prepare and submit all required reports to the department and the enforcing agency.

e. An owner and a private inspection agency may agree to the performance of expedited inspections outside of the hours specified in section 14 of P.L.1975, c.217 (C.52:27D-132).

2. Section 6 of P.L.1975, c.217 (C.52:27D-124) is amended to read as follows:

6. The commissioner shall have all the powers necessary or convenient to effectuate the purposes of this act, including, but not limited to, the following powers in addition to all others granted by this act:

a. To adopt, amend and repeal, after consultation with the code advisory board, rules: (1) relating to the administration and enforcement of this act and (2) the qualifications or licensing, or both, of all persons employed by enforcing agencies of the State to enforce this act or the code, except that, plumbing inspectors shall be subject to the rules adopted by the commissioner only insofar as such rules are compatible with such rules and regulations, regarding health and plumbing for public and private buildings, as may be promulgated by the Public Health Council in accordance with Title 26 of the Revised Statutes.

b. To enter into agreements with federal and State of New Jersey agencies, after consultation with the code advisory board, to provide insofar as practicable (1) single-agency review of construction plans and inspection of construction and (2) intergovernmental acceptance of such review and inspection to avoid unnecessary duplication of effort and fees. The commissioner shall have the power to enter into such agreements although the federal standards are not identical with State standards; provided that the same basic objectives are met. The commissioner shall have the power through such agreements to bind the State of New Jersey and all governmental entities deriving authority therefrom.

c. To take testimony and hold hearings relating to any aspect of or matter relating to the administration or enforcement of this act, including but not limited to prospective interpretation of the code so as to resolve inconsistent or conflicting code interpretations, and, in connection therewith, issue subpena to compel the attendance of witnesses and the production of evidence. The commissioner may designate one or more hearing examiners to hold public hearings and report on such hearings to the commissioner.

d. To encourage, support or conduct, after consultation with the code advisory board, educational and training programs for employees, agents and inspectors of enforcing agencies, either through the Department of Community Affairs or in cooperation with other departments of State government, enforcing agencies, educational institutions, or associations of code officials.

e. To study the effect of this act and the code to ascertain their effect upon the cost of building construction and maintenance, and the effectiveness of their provisions for insuring the health, safety, and welfare of the people of the State of New Jersey.

f. To make, establish and amend, after consultation with the code advisory board, such rules as may be necessary, desirable or proper to carry out his powers and duties under this act.

g. To adopt, amend, and repeal rules and regulations providing for the charging of and setting the amount of fees for the following code enforcement services, licenses or approvals performed or issued by the department, pursuant to the "State Uniform Construction Code Act," P.L.1975, c.217 (C.52:27D-119 et seq.):

(1) Plan review, construction permits, certificates of occupancy, demolition permits, moving of building permits, elevator permits and sign permits; and

(2) Review of applications for and the issuance of licenses certifying an individual's qualifications to act as a construction code official, subcode official or assistant under this act.

(3) (Deleted by amendment, P.L.1983, c.338).

h. To adopt, amend and repeal rules and regulations providing for the charging of and setting the amount of construction permit surcharge fees to be collected by the enforcing agency and remitted to the department to support those activities which may be undertaken with moneys credited to the Uniform Construction Code Revolving Fund.

i. To adopt, amend and repeal rules and regulations providing for:

(1) Setting the amount of and the charging of fees to be paid to the department by a [private agency] business entity for the review of applications for and the issuance of approvals authorizing a [private agency] business entity to act as a private inspection agency, an on-site inspection and plan review agency, or an in-plant inspection agency;

(2) (Deleted by amendment, P.L.2005, c.212).

(3) (Deleted by amendment, P.L.2005, c.212).

j. To enforce and administer the provisions of the "State Uniform Construction Code Act," P.L.1975, c.217 (C.52:27D-119 et seq.) and the code promulgated thereunder, and to prosecute or cause to be prosecuted violators of the provisions of that act or the code promulgated thereunder in administrative hearings and in civil proceedings in State and local courts.

k. To monitor the compliance of local enforcing agencies with the provisions of the "State Uniform Construction Code Act," P.L.1975, c.217 (C.52:27D-119 et seq.), to order corrective action as may be necessary where a local enforcing agency is found to be failing to carry out its responsibilities under that act, to supplant or replace the local enforcing agency for a specific project, and to order it dissolved and replaced by the department where the local enforcing agency repeatedly or habitually fails to enforce the provisions of the "State Uniform Construction Code Act."

l. To adopt, amend, and repeal rules and regulations implementing the provisions of P.L.1999, c.15, P.L.2003, c.44, and section 1 of P.L.2015, c.146 (C.52:27D-123f) concerning the installation and maintenance of carbon monoxide sensors.

(cf: P.L.2015, c.146, s.2)

3. This act shall take effect in the first day of the fourth month next following the date of enactment, however, the commissioner shall immediately commence the process of promulgating rules and regulations.

STATEMENT

This bill establishes an alternate expedited inspection process under the State Uniform Construction Code Act. Under the bill, an applicant for a construction permit may opt to pay a premium fee to have inspections under the permit performed on an expedited basis, within two days of a request for an inspection. The premium fee would be $200 per inspection unless the municipality establishes an alternative price, or variety of alternative prices depending on application size and other relevant factors. The bill allows the applicant to take this option at the time of submitting an application.

The bill authorizes a municipality to offer expedited inspections by its construction code enforcing agency. If a municipality does not offer in-house expedited inspections, a construction permit applicant may retain any properly licensed private inspection agency to perform expedited inspections. Because the local enforcing agency would retain supervisory control over the construction project, and retain the obligation and authority to issue the certificate of occupancy upon completion of the project, the bill provides for a bifurcation of the construction permit fees. Under the bill, a local enforcing agency would retain the generally applicable fees and the private inspection agency would receive the expedited inspection premium fee.

The bill requires and empowers the Department of Community Affairs to develop and implement rules and regulations establishing program details, which would include a licensure program for businesses that want to privately perform expedited inspections.