Assembly Commerce and Economic Development Committee Statement, No. 573 (October 20, 2022)

Summary

The Assembly Commerce and Economic Development Committee statement, dated October 20, 2022, reports favorably an Assembly Committee Substitute for Assembly Bill No. 573, which would modify certain standards for inspection processes under the State Uniform Construction Code Act. The owner, agent, or other responsible person in charge of work is required to notify an enforcing agency in writing at least 24 hours prior to the date and time an inspection is requested, and the enforcing agency is required to perform the inspection within three business days. If the enforcing agency is unable to meet the timeframe and no different date is agreed, the owner, agent, or other responsible person may contract with a private on-site inspection agency authorized by the Department of Community Affairs.

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ASSEMBLY COMMERCE AND ECONOMIC DEVELOPMENT
                COMMITTEE

                           STATEMENT TO

     ASSEMBLY COMMITTEE SUBSTITUTE FOR
                       ASSEMBLY, No. 573

       STATE OF NEW JERSEY
                          DATED: OCTOBER 20, 2022

          The Assembly Commerce and Economic Development Committee
      reports favorably an Assembly Committee Substitute for Assembly Bill
      No. 573.
          This Assembly Committee Substitute would modify certain
      standards for inspection processes under the "State Uniform
      Construction Code Act."
          Under the bill, the owner, agent, or other responsible person in
      charge of work is required to notify an enforcing agency, in writing,
      when the work is ready for a required inspection under the Uniform
      Construction Code ("code"), at least 24 hours prior to the date and time
      the inspection is requested. The enforcing agency is then required to
      perform an inspection within three business days of the date for which
      the inspection is requested. The bill further specifies that the owner,
      agent, or other responsible person in charge of work may provide oral
      notice for inspections of minor work projects.
          The bill requires the owner, agent, or other responsible person in
      charge of work to be present and prepared at the time of any scheduled
      inspection, and specifies that absence at the time of inspection is to be
      considered a failed inspection. The bill requires an enforcing agency to
      inform, in writing, the owner, agent, or other responsible person in
      charge of work if the enforcing agency is unable to meet the required
      timeframe. The enforcing agency and the owner, agent, or other
      responsible person in charge of work may agree to a date and time for a
      required inspection. The bill requires the enforcing agency to commit
      the agreed upon inspection date to writing and provide a copy of the
      written documentation to the owner, agent, or other responsible person
      in charge of work. The bill specifies that if the enforcing agency is
      unable to meet the required timeframe and the local enforcing agency
      and the owner, agent, or other responsible person in charge of work are
      unable to agree to a different inspection date, the owner, agent, or other
      responsible person in charge of work may contract with a private on-site
      inspection agency, authorized by the Department of Community Affairs
      ("DCA") to conduct on-site inspections, to perform the required
      inspection or inspections. The bill specifies that this includes a
      supplemental private on-site inspection agency.
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     If the owner, agent, or other responsible person elects to utilize an
authorized private on-site inspection agency, the bill requires that the
owner, agent, or other responsible person notify the enforcing agency in
writing of the decision. The bill specifies that the owner, agent, or other
responsible person in charge of work may elect to utilize the private on-
site inspection agency to conduct all inspections on associated blocks
and lots, and all units encompassed in the project. The bill also
establishes certain conflict-of-interest requirements. If the enforcing
agency is required to provide any fee reconciliation to the owner as a
result of an inspection being completed by a private on-site inspection
agency, the bill requires that enforcing agency to perform the
reconciliation at the conclusion of the project.
     The bill requires an enforcing agency to establish a process for
ensuring inspections are performed within three business days of a
requested inspection date, and specifies authorization of the use of
supplemental shared services agreements or the use of contracted
private on-site inspection agencies, including supplemental private on-
site inspection agencies.
     The bill requires the Commissioner of Community Affairs
("commissioner") to adopt rules and regulations to effectuate the
provisions of the bill, including rules which provide for: the use of
supplemental shared services agreements, the authorization of private
on-site inspection agency by the DCA to conduct on-site inspections,
and the use of private on-site inspection agencies by municipalities and
enforcing agencies. The bill requires that the rules and regulations allow
an enforcing agency to:
     (1) enter into supplemental shared service agreements or contracts
with a supplemental private on-site inspection agency to conduct on-site
inspections for the purpose of meeting all required inspection
timeframes.
     (2) enter into agreements with private on-site inspection agencies
to conduct on-site inspections on a project-specific basis.
     (3) authorize the owner, agent, or other authorized person in charge
of work to directly contract with an authorized private on-site inspection
agency to perform all inspections on a project-specific basis.
     The bill requires municipal construction officials to submit an
annual report detailing compliance with the code. The report is required
to include, at a minimum information related to the staffing, staff titles,
and expenses of the enforcing agency, in addition to any other
information required by the commissioner. The annual report is also
required to take into account projected work and agency resource needs
for the next budget year. The bill requires a municipality that enters into
a contract for supplemental services to provide a copy of the contract to
DCA upon entering into the contract. The bill requires that the
municipal construction official or enforcing agency maintain the above
information, in addition to the inspection log, municipal monthly
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activity reports, and the fee schedule and make that information and
documents available to DCA upon request.
    The bill specifies that DCA may utilize the information to determine
appropriate staffing levels for the enforcing agency, and if DCA
determines that an enforcing agency has not maintained appropriate
staffing levels, DCA may require the municipality to take corrective
actions to ensure that the enforcing agency’s staffing needs are met.
DCA may also take corrective action, including the issuance of
penalties, if a local enforcing agency fails to maintain or provide the
information or maintain appropriate staffing levels.
    The bill specifically allows the commissioner to compel an
enforcing agency to notify DCA of any instance where the enforcing
agency is unable to meet a deadline or other obligation, and to order
corrective action or issue penalties as necessary where an enforcing
agency is unable to meet its obligations under the "State Uniform
Construction Code Act." The bill also requires an enforcing agency that
is unable to meet its obligations under the "State Uniform Construction
Code Act," to promptly notify DCA, and allows DCA to take corrective
action, including the issuance of penalties, if an enforcing agency fails
to meet its obligations.
    The bill further permits inspections to be conducted at times other
than between the hours of 9 a.m. and 5 p.m. on business days, if agreed
upon by the owner and the relevant inspecting entity, whether the
enforcing agency, department, or private on-site inspection agency.
Additionally, the bill allows local contracting units to utilize
competitive contracting for the purpose of private on-site inspection
agency services, as may be authorized by rules and regulations adopted
by DCA.


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