A4850 —

A4850 1RCV [FirstASSEMBLY Reprint]BILL ASSEMBLY,NO. No.

4850 STATE OF NEW JERSEY 219th LEGISLATURE   INTRODUCED OCTOBER 19, 2020    To Sponsoredthe by:General Assembly:

Assemblyman Pursuant ROBERTto J.Article V, Section I, Paragraph 14 of the New Jersey Constitution, I herewith return Assembly Bill No.

KARABINCHAK4850 Districtwith 18my (Middlesex)recommendations Assemblyman for ROYreconsideration. FREIMAN District 16 (Hunterdon, Mercer, Middlesex and Somerset) Assemblyman  CLINTON CALABRESE District 36 (Bergen and Passaic) Assemblyman  LOUIS D.

GREENWALD     DistrictAssembly 6Bill (BurlingtonNo. and Camden) Senator  PATRICK J.

DIEGNAN,4850 JR.proposes to expedite construction inspections by changing the way municipalities enforce the Uniform Construction Code (“UCC”).

District The 18Department (Middlesex)of  Community Co-SponsoredAffairs by:(“DCA”) would be required to establish rules to permit local code enforcement agencies to conduct expedited construction inspections in exchange for a fee.

Assemblymen In DiMaio,municipalities McClellan,that Simonsen,do Wirths,not Space,offer Senatorsexpedited Oroho,inspections, Singletonproject andowners Pouwould  be  permitted  to  select SYNOPSISa     private Establishesentity, expeditedlicensed constructionby inspectionDCA, program.to conduct expedited inspections.

  The CURRENTbill VERSIONwould OFalso TEXTcodify     into Asstatute amendedan onexisting NovemberDCA 8,regulation 2021that bynon-expedited inspections occur within three business days of a requested inspection date, as long as the Generalowner Assemblymakes pursuantthe request at least 24 hours prior to the Governor'sdesired recommendations.date.  If the local agency fails to comply with the statutory timeline, the owner would be able to retain a private entity to perform the remainder of the inspections for the project, with oversight by the local agency.

   An     ActI concerningcommend inspections under the constructionbill’s code,sponsors andfor supplementingseeking andto amendingfacilitate P.L.1975,speedy c.217.construction inspections.

  With     this Besame Itgoal Enactedin bymind, themy SenateAdministration andhas Generalramped Assemblyup ofefforts to make the Stateconstruction ofpermitting Newand Jersey:inspection system more efficient.

  This     year’s 1.   budget, 1[(Newfor section)]1 example, a. appropriated 1[(1)]1 $5 Themillion commissioner,to inDCA consultation“to withsupport theactivities codeto advisoryincrease board,the shallproduction 1[promulgateof rulesaffordable andhousing regulations,by pursuantstreamlining to the "Administrativepermitting Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), establishing standards, procedures, and other requirements for an optional program providing expedited] conduct a study that considers how to facilitate speedy1 inspections of construction undertakenreview pursuantprocesses toat athe constructionState permit. and     municipal 1[(2) levels.” The P.L.2021, expeditedc.133, inspectionp.38. program shall provide that:

     And (a)  DCA has been taking a municipalmore governingproactive bodyapproach mayto participatehelping local agencies improve their systems and clear backlogs.       While I share with my partners in the programLegislature bythe requiringdesire itsfor enforcingresidential agencyand commercial real estate development to conductproceed expeditedwithout inspectionsunnecessary withindelay, twoI calendarhave dayssubstantial ofreservations anabout owner'sthe requestproposed method for anachieving inspection;that goal.

     As (b)  we anwork ownerto ofbuild a projectstronger locatedand infairer aNew municipalityJersey, thatit is notparamount requiringthat itswe enforcingpreserve agencythe tocomponents conductof expeditedour inspectionsconstruction maycode selectthat amake privateit inspectionone agencyof the strongest in the country and continue to conductensure expeditedthat inspections;the system works for everyone.

     In (c)  this acase, businessI entityam shallconcerned notthat conductallowing expedited inspections unlessin licensedexchange for an additional fee could create a two-track system that moves smaller developers and authorizedhomeowners to dothe soback byof the department;line in favor of those who can pay a premium.

     And, (d)  while anI owneram maycertain optthis towas participatenot inthe intent of the expeditedbill’s inspectionsponsors, programgranting atprivate theentities timebroad ofdiscretion submissionto ofconduct anconstruction applicationinspections forwhen alocal constructionagencies permitdo pursuantnot tomeet sectiontheir 12deadlines creates an appearance of P.L.1975,bias c.217in (C.52:27D-130);favor of those who can afford private inspections.

       (e)  While anit owneris participatingtrue inthat DCA and local agencies would retain substantial oversight over private entities and local agencies would continue to make the expeditedultimate inspectiondecisions programregarding shallwhether payto issue a premiumcertificate inof additionoccupancy, the resources required to alllicense, otherwiseauthorize, applicableand fees;oversee private entities would be considerable, drawing attention from DCA’s and local agencies’ core work and making it even more difficult for local agencies to meet their deadlines.

     On (f)  top eachof expeditedthat, inspectionprivate shallentities would be completedtaking withinfrom twolocal calendaragencies daysnot ofonly anmuch-needed owner'soperating requestrevenue, forbut analso inspection;experienced code officials, at a time when these officials are in high demand.

     (g)  Nevertheless, ifI aagree localthat enforcingit agencyis ornecessary afor privateall inspection agency fails to complete an expedited inspection within two calendar days of anus owner'sin requestgovernment for an inspection, the agency shall complete the inspection within the following 24 hours and shallin refund the premiumreal forestate thatindustry expedited inspection to thecontinue owner. thinking Ifcreatively aabout localhow enforcing agency or a private inspection agency fails to completemake ansure expeditedprojects inspectionproceed withinquickly, theequitably, followingand 24safely. hours, the owner may elect to retain a different private inspection agency, in a manner consistent with subsection b.

of The sectionDepartment of P.L.1975,Environmental c.217Protection’s (C.52:27D-137),Licensed toSite performRemediation Professional (“LSRP”) program has shown how private entities can “step into the remaindershoes” of inspectionsa requiredgovernment foragency theto project.] speed Asalong partimportant ofwork therelated study,to health and safety when it comes to the commissionerremediation shallof consider:contaminated sites.

     The (1)program  Whetherenables andLSRPs howto anytake responsibilitiesresponsibility offor aoversight localof enforcingthe agencyenvironmental mayinvestigation beand delegatedcleanup toof acontaminated privatesites inspectionand agency,has including,led into consultation with the Departmentgreatest amount of Environmentalcontaminated Protection,site whethercleanups anyover aspects of the Licensedshortest Siteperiod Remediationin Professionalthe programState’s administeredhistory, bywith thethousands Department of Environmentalknown Protectioncontaminated maysites behaving applicablebeen toremediated inspectionssince ofthe constructionsprogram undertakenwas pursuantestablished toin a2007. construction permit;

     Additionally, (2)current Whetherlaw andpermits howmunicipalities efficienciesto maycontract bewith achievedprivate byinspection theagencies consolidationto ofassist localwith enforcingUCC agenciesenforcement orin thesome sharingcircumstances. of services;

      (3)Accordingly,  MethodsI toam improverecommending therevisions training,to recruitment,Assembly andBill retentionNo. of local inspection officials, in consultation with the Department of Labor and Workforce Development;

    4850 (4)to  Whetherrequire theDCA department’sto enforcementstudy authoritywhether overthere localis enforcinga agenciessimilar shouldrole befor augmented;private entities to play in the construction inspection and permitting process.

     As (5)part Theof extentits tostudy, whichDCA anyshould proposalsconsider considered by the commissionerdegree wouldto negativelywhich affectinspection healthefficiencies andcan safety,be theachieved qualityby ofconsolidation inspections, or the conducting of inspectionslocal inagencies aand fairthrough andthe equitablesharing manner;of services.

and DCA     also (6)should  Anyconsult other proposals the commissioner deems relevant to the purposes of the study.1      b.    1[(1)  A municipal governing body, in consultation with the constructionDepartment official of itsLabor 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 responsibilityWorkforce overDevelopment issuanceon ofideas thefor certificatecultivating 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 hoursnext specifiedgeneration in section 14 of P.L.1975,code c.217officials. (C.52:27D-132).

     (b)  In Theaddition, enforcingI agencyam shallrecommending observeamendments theto progressrequire oflocal aagencies constructionto projectnotify receivingDCA expeditedimmediately inspectionsupon bydetermining athat privatethey inspectionwill agency and shall retain jurisdiction over the project in order to be responsiveunable to inquiriesmeet from the generalbill’s publicrequirement andto fromconduct specialinspections interests,within tothree thebusiness needsdays of thean ownerowner’s andrequested the private inspection agency,date. and to the obligations and requirements imposed by the code.

     Failure (2)   An owner applying to participateprovide in the expeditedrequired inspectionnotification programwill shallsubject submitlocal paymentagencies ofto allDCA’s applicableexisting fees,authority togetherto withtake anremedial expeditedaction inspectionagainst premiumagencies feethat ofdo $100not percomply inspection, to the enforcing agency together with theDCA’s applicationlaws for a construction permit, unless the municipality establishes an alternative premium fee price, or varietyregulations.  ofThis alternativeamendment priceswill dependingenable onDCA 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 conductquickly expeditedbegin inspections. working Thewith enforcing agency shall deliver payment of the expeditedlocal inspection premium fee to the private inspection agency selected to conducthelp expeditedit inspections.] operate Notmore laterefficiently.  than  theTherefore, firstI dayherewith ofreturn theAssembly 25thBill monthNo. next following the effective date of P.L. , c.

   (pending4850 before the Legislature as this bill), the commissioner shall submit a report to the Governor, and torecommend thethat Legislatureit pursuantbe toamended sectionas 2follows: of P.L.1991, c.164 (C.52:14-19.1), outlining the commissioner’s findings following the study conducted pursuant to subsection a.

ofPage this2, sectionSection and1, anyLine recommendations7:         forDelete legislation,“(New administrativesection)” action,  orPage other2, actionsSection as1, theLine commissioner7:         deemsDelete appropriate.1“(1)”       c.    Page 1[(1) 2, TheSection department1, shallLine establish8:         aDelete program“promulgate forrules theand” licensure and authorizationinsert of“conduct business entities as private inspection agencies for the purpose of contracting with owners to conduct expedited inspections pursuant to this section or to perform inspections pursuant to section 19 of P.L.1975, c.217 (C.52:27D-137).  No business entity shall conduct inspections under a constructionstudy permitthat orconsiders enterhow into any contract to dofacilitate sospeedy” without  firstPage receiving2, theSection licensure1, andLines authorization9-11:     ofDelete thein department. their Theentirety department  mayPage impose2, andSection collect1, feesLine from12:        applicantsDelete for“providing licensureexpedited” and  authorizationPage under2, thisSection section. 1,     Line (2)  13:        LicensureAfter and“permit.” authorizationInsert of“As apart business entity as a private inspection agency shall include, but not be limited to, consideration of the qualificationsstudy, of the managementcommissioner andshall technicalconsider: 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)  (1) Whether Aand privatehow inspectionany responsibilities of a local enforcing agency shallmay notbe employdelegated to a personprivate asinspection anagency, officerincluding, orin inspectorconsultation unlesswith the personDepartment isof certifiedEnvironmental byProtection, whether any aspects of the departmentLicensed inSite Remediation Professional program administered by the appropriateDepartment subcode.of Environmental Protection may be applicable to inspections of constructions undertaken pursuant to a construction permit;

      (4)  (2) Whether Aand privatehow inspectionefficiencies agencymay shall be subjectachieved toby the ordersconsolidation and directives of thelocal municipalenforcing constructionagencies officialor and the departmentsharing in matters relating to the enforcement of theservices; code.

      (5)  (3) Methods Ato privateimprove inspectionthe agencytraining, shallrecruitment, maintainand recordsretention of alllocal inspectionsinspection andofficials, anyin otherconsultation informationwith that may be required by the municipalDepartment constructionof officialLabor or the department.  These records shall be open to department audit and shallWorkforce notDevelopment; be destroyed or removed from the offices of the private inspection agency without the permission of the department.

      (6)  (4) Whether A private inspection agency shall not directly collect fees from the owner,department’s orenforcement anyauthority agentover orlocal employeeenforcing ofagencies theshould owner.be augmented;

The  enforcing(5) The agencyextent shallto bewhich theany soleproposals agentconsidered forby the collectioncommissioner would negatively affect health and deliverysafety, the quality of aninspections, expeditedor inspectionthe premiumconducting feeof toinspections in a privatefair inspectionand agency.equitable manner;

    and d.     (1) (6) Any Exceptother asproposals otherwisethe providedcommissioner indeems thisrelevant section,to athe privatepurposes inspectionof agencythe thatstudy.” has  contractedPage to2, performSection expedited1, inspectionsLines for14-41:    aDelete projectin shalltheir carryentirety out  itsPage obligations2, underSection the1, contractLine 42:        Delete “(1) a municipal governing body, in consultation with the” and applicableinsert provisions“Not later than the first day of lawthe until25th fullmonth completionnext following the effective date of P.L.    , c.    (pending before the project,Legislature as evidencedthis bybill), the enforcingcommissioner agency'sshall issuancesubmit of a certificatereport to the Governor, and to the Legislature pursuant to section 2 of occupancy.P.L.1991, c.164 (C.52:14-19.1), outlining the commissioner’s findings following the study conducted pursuant to subsection a.

    of (2)  this Asection privateand inspectionany agencyrecommendations conductingfor expeditedlegislation, inspectionsadministrative action, or other actions as the commissioner deems appropriate.”   Page 2, Section 1, Lines 43-44:    Delete in their entirety   Page 3, Section 1, Lines 1-29:     Delete in their entirety   Page 3, Section 1, Line 30:        Delete “(1) The department shall haveestablish alla ofprogram for the” and insert “The commissioner is authorized to contract with a third party to conduct the powers,study and submit the report required by this section.”     Page 3, Section 1, Lines 31-47:    Delete in their entirety   Page 4, Section 1, Lines 1-45:     Delete in their entirety   Page 5, Section 2, Line 33:        Delete “subpena” and insert “subpoenas”   Page 6, Section 2, Line 27:        Delete “business entity” and insert “private agency”   Page 6, Section 2, Line 29:        Delete “business entity” and insert “private agency”   Page 6, Section 2, Lines 29-30:    Delete “private inspection agency,”   Page 6, Section 2, Line 30:        After “agency” delete “,”   Page 6, Section 2, Line 48:        After “Act.’” insert “This shall beinclude subjectthe power to allcompel oflocal enforcing agencies to notify the requirements,Department applicableof toany aninstance where the local enforcing agency withis regardunable to conductingmeet inspectionsa underdeadline P.L.1975,imposed c.217by (C.52:27D-119law etor seq.),regulation.” however,  thePage 8, Section 3, Line 32:        Delete “Except for” and insert “The”   Page 8, Section 3, Lines 33-34:    Delete in their entirety   Page 9, Section 4, Line 10:        Delete “the owner may elect to retain a private inspectioninspection” and insert “or the local enforcing agency shalldetermines beit obligatedis unable to conductmeet inspectionsthe indeadline animposed expeditedby timeframe.that subsection, the local enforcing agency shall notify the Department of Community Affairs immediately.

    Failure (3)  to Aprovide privatesuch inspectionnotification shall subject the enforcing agency conductingto expeditedcorrective inspectionsaction shall:as authorized under subsection k.

    of (a)  section maintain6 allof inspectionP.L.1975, recordsc.217 applicable(C.52:27D-124(k)).” to  eachPage construction9, permit;Section 4, Lines 11-47:    Delete in their entirety   Page 10, Section 4, Lines 1-4:     Delete in their entirety   Page 10, Section 5, Line 7:        Delete “on the first day of the fourth month” and insert “immediately.”   Page 10, Section 5, Lines 8-10:    Delete in their entirety                                Respectfully,      [seal]                              /s/ Philip D.

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