SB437: SB437 State Building, Plumbing, and Electrical Codes; acknowledgement of an applicant's use of a private professional provider to conduct a plan review or inspection; provide

26 LC 47 4315S The House Committee on Governmental Affairs offers the following substitute to SB 437: A BILL TO BE ENTITLED AN ACT To amend Part 2 of Article 1 of Chapter 2 of Title 8 of the Off icial Code of Georgia1 Annotated, relating to state building, plumbing, and electrical codes, so as to provide for2 building inspection procedures for residential properties; to provide for schedules of certain3 fees; to provide for certain notifications; to provide for acknowledgment of an applicant's use4 of a private professional provider to conduct an inspection and that such inspection may5 proceed regardless of whether the local governing authority had performed its own6 inspection; to permit in person or virtual inspections; to provide for a shorter period for local7 governing authorities to approve applications; to prohibit local governing authorities from8 charging convenience fees; to provide for procedures to use a private professional provider9 for inspection; to provide for an acknowledgment; to authorize prequalification; to provide10 for prequalification procedures; to authorize permit denial; to provide procedures for permit11 denial; to provide f or immunity; to prohibit more stringent req uirements; to provide for12 certain stop orders; to provide for complaint procedures; to provide for definitions; to provide13 for related matters; to provide for an effective date and appli cability; to repeal conflicting14 laws; and for other purposes.15 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:16 S. B. 437 (SUB) - 1 - 26 LC 47 4315S SECTION 1.17 Part 2 of Article 1 of Chapter 2 of Title 8 of the Official Code of Georgia Annotated, relating18 to state building, plumbing, and electrical codes, is amended by adding a new subsection to19 Code Section 8-2-26, relating to local enforcement, inspectors, and building permits, to read20 as follows:21 "(h)(1) Notwithstanding subsection (g) of this Code section, this subsection shall apply22 to residential structures, including, but not limited to, singl e-family residences,23 townhomes, and condominiums three stories or less.24 (2) As used in this subsection, the term:25 (A) 'Complete application' means a submitted plan, application , or request for26 inspection that contains all of the information and supporting documentation required27 by the county or municipality for it to make the determination as to whether the plan,28 application, or request is in compliance with regulatory requirements.29 (B) 'Private professional provider' means a:30 (i) Professional engineer who holds a certificate of registrat ion issued under31 Chapter 15 of Title 43;32 (ii) Professional architect who holds a certificate of registr ation issued under33 Chapter 4 of Title 43; or34 (iii) Qualified inspector as such term is defined in Code Section 8-2-26.135 who is not an employee of or otherwise affiliated with or financially interested in the36 person, firm, or corporation engaged in the construction projec t to be reviewed or37 inspected.38 (C) 'Regulatory fee' means payments, whether designated as permit fees, application39 fees, or by another name, that are required by a local government as an exercise of its40 police power, its regulation of business, and as a part of or a s an aid to regulation of41 construction related activities under this chapter.42 S. B. 437 (SUB) - 2 - 26 LC 47 4315S (D) 'Regulatory requirements' means the requirements determine d by a county or43 municipality to be necessary for approval of plans, permits, or applications under this44 chapter; provided, however, that, with respect to any applicati on, such requirements45 shall include the state minimum standard codes most recently ad opted by the46 Department of Community Affairs and any locally adopted ordinances and amendments47 to such codes; applicable zoning ordinances and conditions; design standards; and other48 state and local laws, regulations, and ordinances applicable to the application in49 question.50 (3) Each county or municipality which imposes regulatory fees or regulatory51 requirements within its jurisdiction shall establish and make available a schedule of such52 regulatory fees and regulatory requirements which shall include a list of all53 documentation related to compliance with such regulatory requir ements, including the54 requirements necessary for submittal of a complete application. The amount of any55 regulatory fee shall approximate the reasonable cost of the act ual regulatory activity56 performed by the local government and shall be subject to the provisions of paragraph (6)57 of Code Section 48-13-5.58 (4) No later than five business days after receipt of any application related to regulatory59 requirements, a local building official of a county or municipa lity shall notify each60 applicant as to whether the submitted documents meet the requir ements of a complete61 application and shall acknowledge whether an applicant retained a private professional62 provider to provide the required inspection, allowing the appli cant to proceed with the63 inspection irrespective of whether the county or municipality h as conducted an64 inspection. Except as otherwise provided in this paragraph, ti me spent by a county or65 municipality determining whether an application is complete shall count toward the total66 15 business days for inspection. If a local building official determines that the67 application is not complete, the applicant shall be provided written notice identifying the68 items that are not complete. The 15 business-day time period i s tolled when the69 S. B. 437 (SUB) - 3 - 26 LC 47 4315S application is rejected as incomplete. If within 15 business d ays after the county or70 municipality has provided notice that the application is incomplete the permit applicant71 submits revisions to address the identified deficiencies, the local building official shall72 have an additional five business days to review the application for completeness.73 (5) At the time a county or municipality notifies the applicant that a complete application74 has been accepted, it shall also notify such applicant as to wh ether the personnel75 employed or contracted by such county or municipality will be able to provide inspection76 services within two business days of receiving a valid written request for inspection.77 (6) The applicant shall have the option of retaining, at its o wn expense, a private78 professional provider to provide the required inspection, conducted in person, or virtually,79 for residential single construction trades, such as structural, plumbing, mechanical, or80 electrical and consisting of ten or less inspections, in accordance with the provisions of81 this Code section irrespective of whether the county or municipality determines that the82 personnel employed or contracted by such county or municipality can provide regulatory83 action or inspection services within the time frames required under paragraph (5) of this84 subsection. If the applicant elects to utilize the services of a private professional85 provider, the regulatory fees associated with such regulatory action shall be reduced by86 50 percent and such reduced amount shall be paid to the county or municipality in87 accordance with such jurisdiction's policies. The local govern ing authority shall not88 charge any convenience fees when an applicant retains a private professional provider to89 provide the required inspection.90 (7)(A) An applicant using a private professional provider pursuant to paragraph (6) of91 this subsection shall notify the local governing authority in w riting at the time of the92 permit application, or by 2:00 P.M. two business days before th e first scheduled93 inspection by the local governing authority that a private professional provider has been94 contracted to perform the required inspection. This notice shall include:95 (i) The services to be performed by the private professional provider;96 S. B. 437 (SUB) - 4 - 26 LC 47 4315S (ii) The name, firm, address, telephone number, and email addr ess of the private97 professional provider performing such services;98 (iii) A directory of licensed individuals who are eligible to perform such services;99 (iv) The private professional provider's professional licenses or certification numbers;100 (v) A certificate demonstrating professional liability insurance coverage in place for101 the private professional provider's firm, the private professio nal provider, and any102 duly authorized representative in the amounts required by this subsection; and103 (vi) A written acknowledgment from the applicant in substantia lly the following104 form:105 'I have elected to use one or more private professional providers to provide building106 code inspection services on the building or structure that is t he subject of the107 enclosed permit application, as authorized by O.C.G.A. Section 8-2-26(g). I108 understand that the county or municipality may not perform the required building109 inspection to determine compliance with the applicable building codes, except to the110 extent specified in said codes. Instead the required building inspections will be111 performed by the licensed or certified personnel identified in the application. The112 law requires minimum insurance requirements for such personnel. By executing113 this form I acknowledge that I have made an inquiry regarding the competence of114 the licensed or certified personnel and the level of their insurance and am satisfied115 my interests are adequately protected. I agree to indemnify, d efend, and hold116 harmless the county and/or municipality, and their building cod e enforcement117 personnel from any and all claims arising from my use of these licensed or certified118 personnel to perform building code inspection services with respect to the building119 or structure that is the subject of the enclosed permit application.'120 (vii) The commissioner shall promulgate a notice form on the d epartment website121 that meets the requirements of divisions (i) through (vi) of this subparagraph.122 S. B. 437 (SUB) - 5 - 26 LC 47 4315S (B) If the applicant makes any changes to the listed private professional providers or123 services to be provided by such private professional providers, the applicant shall,124 within one business day after any change or within two business days of the next125 scheduled inspection, update the notice to reflect such changes.126 (C) A change of private professional provider named in the permit application does not127 require a revision of the permit, and the local governing authority shall not charge a fee128 for making such change.129 (8) Any inspection conducted either in person or virtually by a private professional130 provider shall be no less extensive than inspections conducted by county or municipal131 personnel.132 (9) The person, firm, or corporation retaining a private professional provider to conduct133 an inspection shall be required to pay to the county or municip ality which requires the134 inspection the regulatory fees and charges which are required b y paragraph (6) of this135 subsection.136 (10) All private professional providers providing inspection s ervices pursuant to this137 subsection shall secure and maintain insurance coverage for professional liability (errors138 and omissions) insurance. The limits of such insurance shall be not less than $1 million139 per claim and $1 million in aggregate coverage for any project with a construction cost140 of $10 million or less and $2 million per claim and $2 million in aggregate coverage for141 any project with a construction cost of more than $10 million. Such insurance may be142 a practice policy or project-specific coverage. If the insurance is a practice policy, it shall143 contain prior acts coverage for the private professional provid er. If the insurance is144 project-specific, it shall continue in effect for two years fol lowing the issuance of the145 certificate of final completion for the project. A local enforcement agency, local building146 official, or local government may establish, for private professional providers working147 within that jurisdiction, a system of registration listing the private professional providers148 S. B. 437 (SUB) - 6 - 26 LC 47 4315S within their stated areas of competency. The permit applicant shall verify compliance149 with the insurance requirements of this paragraph.150 (11) The private professional provider shall be empowered to p erform any inspection151 required by the governing authority of any county or municipali ty, including, but not152 limited to, inspections for footings, foundations, concrete sla bs, framing, electrical,153 plumbing, heating ventilation a nd air conditioning (HVAC), or a ny and all other154 inspections necessary or required to determine compliance with all regulatory155 requirements and for the issuance of a building permit or certificate of occupancy by the156 governing authority of any county or municipality, provided that the inspection is within157 the scope of such private professional provider's area of compe tency; and provided,158 further, that a qualified inspector acting as a private professional provider shall only be159 empowered to perform an inspection within an area for which suc h qualified inspector160 has been issued a certification, license, or completion of trai ning provided for in161 paragraph (2) of subsection (a) of Code Section 8-2-26.1. Nothing in this Code section162 shall authorize any private professional provider to issue a certificate of occupancy. Only163 a local governing authority shall be authorized to issue a certificate of occupancy.164 (12) Upon submission by the private professional provider of a copy of his or her165 inspection report to the local governing authority, said local governing authority shall be166 required to accept the inspection of the private professional provider without the necessity167 of further inspection or approval by the inspectors or other pe rsonnel employed by the168 local governing authority unless said governing authority has n otified the private169 professional provider, within two business days after the submi ssion of the inspection170 report, that it finds the report incomplete or the inspection inadequate and has provided171 the private professional provider with a written description of t h e d e f i c i e n c i e s a n d172 specific regulatory requirements that have not been adequately addressed.173 (13) A local governing authority may provide for the prequalif ication of private174 professional providers who may perform inspections pursuant to this subsection. No175 S. B. 437 (SUB) - 7 - 26 LC 47 4315S ordinance implementing prequalification shall become effective until notice of the176 governing authority's intent to require prequalification and the specific requirements for177 prequalification have been advertised in the newspaper in which the sheriff's178 advertisements for that locality are published, and by any othe r methods such local179 authority ordinarily utilizes for notification of engineering, architecture, or construction180 related solicitations. The ordinance implementing prequalifica tion shall provide for181 evaluation of the qualifications of a private professional provider only on the basis of the182 private professional provider's expertise with respect to the objectives of this subsection,183 as demonstrated by the private professional provider's experien ce, education, and184 training.185 (14) Nothing in this subsection shall be construed to limit any public or private right of186 action designed to provide protection, rights, or remedies for consumers.187 (15) If the local building offi cial determines that the buildi ng construction does not188 comply with the applicable regulatory requirements, the official may deny the permit or189 request for a certificate of occupancy or certificate of completion, as appropriate, or may190 issue a stop-work order for the project or any portion thereof as provided by law, after191 giving notice to the owner, the architect of record, the engine er of record, or the192 contractor of record and by posting a copy of the order on the site of the project and193 opportunity to remedy the violation within the time limits set forth in the notice, if the194 official determines noncompliance with regulatory requirements, provided that:195 (A) A local building official shall be available to meet with the private professional196 provider within two business days to resolve any dispute after issuing a stop-work order197 or providing notice to the applicant denying a permit or reques t for a certificate of198 occupancy or certificate of completion; and199 (B) If the local building official and the private professiona l provider are unable to200 resolve the dispute or meet within the time required by this Co de section, the matter201 shall be referred to the local enforcement agency's board of appeals, if one exists, which202 S. B. 437 (SUB) - 8 - 26 LC 47 4315S shall consider the matter not later than its next scheduled meeting. Any decisions by203 the local official, if there is no board of appeals, may be appealed to the Department of204 Community Affairs as provided in this chapter. The Department of Community Affairs205 shall develop rules and regulations which shall establish reaso nable time frames and206 fees to carry out the provisions of this paragraph.207 (16) The local government, a local building official, and local building code enforcement208 personnel and agents of the local government shall be immune fr om liability to any209 person or party for any action or inaction by an owner of a bui lding or by a private210 professional provider or its duly authorized representative in connection with inspection211 services by private professional providers as provided in this subsection.212 (17) No local enforcement agency, local code official, or local government shall adopt213 or enforce any rules, procedures, policies, qualifications, or standards more stringent than214 those prescribed in this subsection. This subsection shall not preempt any local laws,215 rules, or procedures relating to the plan submittal process of local governing authorities.216 (18) Nothing in this subsection shall limit the authority of a local code official to issue217 a stop-work order for a building project or any portion of such project, which may go into218 effect immediately as provided by law, after giving notice and opportunity to remedy the219 violation, if the official determines that a condition on the b uilding site constitutes an220 immediate threat to public safety and welfare. A stop-work order issued for reasons of221 immediate threat to public safety and welfare shall be appealable to the local enforcement222 agency's board of appeals, if one exists, in the manner provided by applicable law. Any223 decisions by the local official, if there is no board of appeal s, may be appealed to the224 Department of Community Affairs as provided in this chapter.225 (19) When performing inspection services, a private professional provider is subject to226 the disciplinary guidelines of the applicable professional licensing board with jurisdiction227 over such private professional provider's license or certification under Chapters 4 and 15228 of Title 43, as applicable. Any complaint processing, investigation, and discipline that229 S. B. 437 (SUB) - 9 - 26 LC 47 4315S arise out of a private professional provider's performance of inspection services shall be230 conducted by the applicable professional licensing board. Notw ithstanding any231 disciplinary rules of the applicable professional licensing boa rd with jurisdiction over232 such private professional provider's license or certification u nder Chapters 4 and 15 of233 Title 43, any local building official may decline to accept inspection services submitted234 by any private professional provider who has submitted multiple reports which required235 revisions due to negligence, noncompliance, or deficiencies.236 (20) Nothing in this subsection shall apply to inspections exe mpted in Code237 Section 8-2-26.1.238 (21) To the extent that a provision of this Code section confl icts with requirements of239 federal laws or regulations or impairs a county's or municipality's receipt of federal funds,240 such provision shall not apply."241 SECTION 2.242 This Act shall become effective on July 1, 2026, and shall apply to all inspections occurring243 on or after such date.244 SECTION 3.245 All laws and parts of laws in conflict with this Act are repealed.246 S. B. 437 (SUB) - 10 -