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House of Representatives
Session of 2017 - 2018 Regular Session

MEMORANDUM

Posted:	January 6, 2017 11:42 AM
From:	Representative Doyle Heffley
To:	All House members
Subject:	Amending the PA Construction Code - Third Party Agency

Please find attached a copy of legislation that I will be introducing in the near future to amend the PA Construction Code Act (Act 45 of 1999) to give permit applicants the option of using an alternative third party agency if they are in a municipality that only has one third party agency. The language in my legislation is identical to language approved by the House Labor & Industry Committee last session when it reported House Bill 782 (my bill) out on June 15, 2016 by a 15-7 vote. The legislation would require that municipalities, which utilize only one third-party agency to enforce the Uniform Construction Code (UCC), allow a permit applicant the option of using a third party agency of their choice if they : 1) remit a surcharge to the municipality, with the amount of the surcharge being a percentage of the total fees paid to the alternative third party agency, with a maximum surcharge of 10 percent; and 2) utilize the services of the alternative agency for all the code work needed on the project. The alternative third party agency would have a positive duty to remit the surcharge amount to the municipality, with severe penalties if they did not. Over 90% of Pennsylvania's 2,562 municipalities have elected to administer and enforce the UCC locally, using their own employees, joint administration, or via certified third party agencies (private code enforcement agencies) that they have retained. It is estimated that about 60% of the "opt-in" municipalities have chosen to administer the UCC by contracting with a third party agency, with the vast majority using only one third party agency (thus a monopoly). I am reintroducing this legislation in response to complaints I continue to receive from constituents about being treated in an abrupt, rude manner by third party agencies and , or, being "gouged" on fees. Because many of these agencies have monopolies, property owners have little immediate redress. This problem continues and I believe it needs to be addressed. The rationale that municipalities use for only contracting with one third party agency is that they can hold one agency accountable for administering a program, and also the fear that competition will lead to some agencies compromising their enforcement standards to obtain business. I argue that all third party agencies are certified by the department, and thus are legally required to enforce the standards of the code; in essence, the argument that some third party agencies will be more 'lax' in enforcing the UCC standards contradicts the certification requirements of the act. It is important to note that my legislation has no effect on municipalities that have their own indigenous code enforcement program (such as Philadelphia or Pittsburgh), or a joint agreement with another municipality. I strongly believe my legislation is supported by the general public, and especially those property owners who are attempting to make improvements to their property. Also, my legislation is strongly supported by the PA Builders Association. Please consider sponsoring this important piece of legislation.

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