Regular Session 2015-2016 House Bill 0782 P.N. 3530

PRIOR PRINTER'S NO. 925

PRINTER'S NO. 3530

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

782

Session of

2015

INTRODUCED BY HEFFLEY, EVERETT, KNOWLES, TOOHIL, EMRICK, TRUITT,

ZIMMERMAN, MURT, MOUL, CARROLL AND FARINA, MARCH 13, 2015

AS REPORTED FROM COMMITTEE ON LABOR AND INDUSTRY, HOUSE OF

REPRESENTATIVES, AS AMENDED, JUNE 15, 2016

AN ACT

Amending the act of November 10, 1999 (P.L.491, No.45), entitled

"An act establishing a uniform construction code; imposing

powers and duties on municipalities and the Department of

Labor and Industry; providing for enforcement; imposing

penalties; and making repeals," in adoption and enforcement

by municipalities, further providing for administration and

enforcement.

AMENDING THE ACT OF NOVEMBER 10, 1999 (P.L.491, NO.45), ENTITLED

"AN ACT ESTABLISHING A UNIFORM CONSTRUCTION CODE; IMPOSING

POWERS AND DUTIES ON MUNICIPALITIES AND THE DEPARTMENT OF

LABOR AND INDUSTRY; PROVIDING FOR ENFORCEMENT; IMPOSING

PENALTIES; AND MAKING REPEALS," IN ADOPTION AND ENFORCEMENT

BY MUNICIPALITIES, FURTHER PROVIDING FOR ADMINISTRATION AND

ENFORCEMENT.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 501(b)(1) and (2) of the act of November

10, 1999 (P.L.491, No.45), known as the Pennsylvania

Construction Code Act, amended November 29, 2006 (P.L.1440,

No.157), are amended and the section is amended by adding a

subsection to read:

Section 501. Administration and enforcement.

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(b) Municipal administration and enforcement.--This act may

be administered and enforced by municipalities in any of the

following ways:

(1) By the designation of an employee to serve as the

municipal code official to act on behalf of the municipality

for administration and enforcement of this act. A

municipality may enter into agreements with construction code

officials to perform plan review and inspection services for

categories which the municipal code official does not have

the resources or certification to perform.

(2) By the retention of [one or more construction code

officials or] two or more third-party agencies to act on

behalf of the municipality for administration and enforcement

of this act[.] in accordance with a professional services

contract. An owner or authorized agent shall select and

utilize one of the third-party agencies for the requirements

of this act with respect to an individual project.

* * *

(b.1) Administration and enforcement by third-party

agencies.--A municipality opting to administer and enforce this

act by retaining two or more third-party agencies under

subsection (b)(2) shall comply with all of the following

requirements:

(1) The services of a third-party agency shall be

furnished and performed under a written professional services

contract with the municipality. The professional services

contract shall offer, in the determination of the governing

body of the municipality, a favorable combination of

reasonable rates or fees and the ability of the third-party

agency to perform services in a timely and efficient manner

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for building permit applicants.

(2) The municipality shall advertise a request for

proposal for the professional services contract. The

advertisement shall comply with all of the following

requirements:

(i) The ad vertisement shall be published in one

newspaper of general circulation, if available, in the

municipality at least two times at intervals of not less

than three days or once a week for two successive weeks

in a weekly newspaper. The first advertisement shall be

published not more than 45 days before the date fixed for

the opening of responses to the request for proposal. T he

second advertisement shall be published not less than 10

days before the date fixed for the opening of responses

to the request for proposal. As used in this

subparagraph, the terms "newspaper of general

circulation" and "weekly newspaper" shall mean as defined

in 45 Pa.C.S. § 101 (relating to definitions).

(ii) The advertisement shall contain the date, time

and location for the opening of the proposals and any

prequalification standards or requirements that must be

met.

(3) Notice of the request for proposal shall be posted

where the governing body of the municipality normally meets

or in a conspicuous place within the municipality.

(4) (i) The municipality shall award a professional

services contract by public announcement at:

(A) a meeting where the proposals are opened and

read by the governing body of the municipality or by

an individual or committee appointed by the governing

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body of the municipality to open and read the

proposals; or

(B) a subsequent meeting of the governing body

after the proposals are opened and read.

(ii) The municipality shall publicly announce the

time and place of a meeting under subparagraph (i)(B).

(5) In awarding professional services contracts, the

governing body of the municipality:

(i) Shall take into consideration all of the

following:

(A) The proposed fee schedule.

(B) The availability of services.

(ii) May establish prequalification standards for a

professional services contract if prequalification

standards are reasonably designed to assist the governing

body of the municipality in determining the ability of a

person submitting a proposal to successfully complete a

professional services contract.

(iii) M ay designate one of the third-party agencies

as the enforcement agent for the municipality for general

code enforcement actions not associated with work already

being completed in accordance with a building permit.

(6) A professional services contract between a

municipality and a third-party agency for the exclusive

administration and enforcement of this act in effect before

the effective date of this subsection shall remain in effect

and the provisions of subsection (b)(2) shall take effect

upon the expiration of the original terms of the professional

services contract.

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(7) A professional services contract entered into

between a municipality and a third-party agency on or after

the effective date of this subsection may not exceed two

years.

(8) Except as provided under paragraph (9), a

municipality may not enter into an exclusive contract with a

third-party agency for the administration and enforcement of

this act after the effective date of this subsection.

(9) If a municipality opts to administer and enforce

this act under subsection (b)(2), the municipality may apply

to the department for a waiver from the requirement of

retaining two or more third-party agencies under subsection

(b)(2) if the municipality can demonstrate to the

satisfaction of the department all of the following:

(i) The municipality made a reasonable effort to

solicit and retain two or more third-party agencies.

(ii) The municipality was unsuccessful in obtaining

sufficient qualified proposals by at least two third-

party agencies.

* * *

Section 2. This act shall take effect as follows:

(1) The amendment of section 501(b)(2) shall take effect

July 1, 2015, or immediately, whichever is later.

(2) The remainder of this act shall take effect

immediately.

SECTION 1. SECTION 501(B)(1), (2) AND (3) OF THE ACT OF

NOVEMBER 10, 1999 (P.L.491, NO.45), KNOWN AS THE PENNSYLVANIA

CONSTRUCTION CODE ACT, AMENDED NOVEMBER 29, 2006 (P.L.1440,

NO.157), ARE AMENDED AND THE SECTION IS AMENDED BY ADDING A

SUBSECTION TO READ:

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SECTION 501. ADMINISTRATION AND ENFORCEMENT.

* * *

(B) MUNICIPAL ADMINISTRATION AND ENFORCEMENT.--THIS ACT MAY

BE ADMINISTERED AND ENFORCED BY MUNICIPALITIES IN ANY OF THE

FOLLOWING WAYS:

(1) BY THE DESIGNATION OF AN EMPLOYEE TO SERVE AS THE

MUNICIPAL CODE OFFICIAL TO ACT ON BEHALF OF THE MUNICIPALITY

FOR ADMINISTRATION AND ENFORCEMENT OF THIS ACT. A MUNICIPAL

CODE OFFICIAL MAY UTILIZE THIRD-PARTY AGENCIES TO SUPPLEMENT

THE MUNICIPAL CODE ENFORCEMENT PROGRAM'S PLAN REVIEW AND

INSPECTION SERVICES OR MAY UTILIZE THIRD-PARTY AGENCIES TO

PERFORM PLAN REVIEW AND INSPECTION SERVICES IN CATEGORIES

WHICH ITS PROGRAM DOES NOT POSSESS THE NECESSARY PERSONNEL TO

ADMINISTER.

(2) BY THE RETENTION OF ONE OR MORE [CONSTRUCTION CODE

OFFICIALS OR] THIRD-PARTY AGENCIES TO ACT ON BEHALF OF THE

MUNICIPALITY FOR ADMINISTRATION AND ENFORCEMENT OF THIS

ACT[.], EXCEPT THAT THE PROVISIONS OF SUBSECTION (B.1) SHALL

APPLY IF THE MUNICIPALITY CONTRACTS WITH ONLY ONE THIRD-PARTY

AGENCY FOR ADMINISTRATION AND ENFORCEMENT.

(3) TWO OR MORE MUNICIPALITIES MAY PROVIDE FOR THE JOINT

ADMINISTRATION AND ENFORCEMENT OF THIS ACT THROUGH AN

INTERMUNICIPAL AGREEMENT UNDER 53 PA.C.S. CH. 23 SUBCH. A

(RELATING TO INTERGOVERNMENTAL COOPERATION)[.], EXCEPT THAT

THE PROVISIONS OF SUBSECTION (B.1) SHALL APPLY IF THE

AGREEMENT PROVIDES FOR ONLY ONE THIRD-PARTY AGENCY FOR

ADMINISTRATION AND ENFORCEMENT.

* * *

(B.1) EXCLUSIVE ADMINISTRATION AND ENFORCEMENT.--THE

FOLLOWING APPLY:

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(1) IF A MUNICIPALITY CONTRACTS WITH ONE THIRD-PARTY

AGENCY FOR ADMINISTRATION AND ENFORCEMENT OF THIS ACT, AN

APPLICANT MAY UTILIZE THE SERVICES OF ANOTHER THIRD-PARTY

AGENCY IF THE ALTERNATIVE THIRD-PARTY AGENCY AGREES TO REMIT

A SURCHARGE FOR ITS SERVICES TO THE MUNICIPALITY. THE

SURCHARGE SHALL BE A PERCENTAGE OF THE TOTAL AMOUNT OF FEES

CHARGED BY THE ALTERNATIVE THIRD-PARTY AGENCY. THE PERCENTAGE

SHALL BE ESTABLISHED BY THE MUNICIPALITY BY ORDINANCE AS A

PERCENTAGE NOT TO EXCEED TEN PERCENT. IF THE MUNICIPALITY

FAILS TO ESTABLISH A SURCHARGE AS SPECIFIED UNDER THIS

PARAGRAPH, THE SURCHARGE SHALL BE ONE PERCENT OF THE TOTAL

FEES CHARGED BY THE ALTERNATIVE THIRD-PARTY AGENCY FOR THE

ALTERNATIVE THIRD-PARTY AGENCY'S SERVICES ON A PROJECT.

(2) IN ACCORDANCE WITH THE MUNICIPALITY'S

OVERALL PERMITTING PROCESS FOR A PROJECT, THE MUNICIPALITY

SHALL NOTIFY THE APPLICANT THAT THE APPLICANT MAY UTILIZE THE

SERVICES OF AN ALTERNATIVE THIRD-PARTY AGENCY OF THE

APPLICANT'S CHOICE FOR THE CONSTRUCTION REQUIREMENTS OF THE

APPLICATION COVERED BY THIS ACT, INCLUDING ALL PLAN REVIEW

AND INSPECTION SERVICES.

(3) THE APPLICANT SHALL NOTIFY THE MUNICIPALITY AND ITS

CONTRACTED THIRD-PARTY AGENCY OF ITS INTENT TO UTILIZE AN

ALTERNATIVE THIRD-PARTY AGENCY FOR THE CONSTRUCTION

REQUIREMENTS REQUIRED BY THIS ACT FOR A PROJECT. THE

APPLICANT SHALL PROVIDE, IN ITS NOTIFICATION, THE NAME OF THE

ALTERNATIVE THIRD-PARTY AGENCY THAT WILL BE UTILIZED AND

APPROPRIATE CONTACT INFORMATION.

(4) BEFORE PERFORMING SERVICES ON A PROJECT, THE

ALTERNATIVE THIRD-PARTY AGENCY BEING UTILIZED BY THE

APPLICANT SHALL NOTIFY THE MUNICIPALITY AND ITS CONTRACTED

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THIRD-PARTY AGENCY THAT IT IS PERFORMING SERVICES REQUIRED BY

THIS ACT ON THE PROJECT FOR THE APPLICANT. ON THE DATE OF

ISSUANCE OF THE PERMIT REQUIRED BY THIS ACT, THE ALTERNATIVE

THIRD-PARTY AGENCY SHALL PROVIDE THE MUNICIPALITY AND ITS

EXCLUSIVE THIRD-PARTY AGENCY WITH A COPY OF THE PERMIT ISSUED

FOR THE PROJECT AND THE APPROVED PLANS OF RECORD FOR THE

PROJECT.

(5) THE APPLICANT SHALL UTILIZE THE SERVICES OF THE

ALTERNATIVE THIRD-PARTY AGENCY FOR ALL REQUIREMENTS OF THIS

ACT ASSOCIATED WITH A PROJECT.

(6) ON THE DATE OF ISSUANCE OF THE FINAL INSPECTION

REPORT FOR A PROJECT, THE ALTERNATIVE THIRD-PARTY AGENCY

SHALL FORWARD THE FOLLOWING TO THE MUNICIPALITY AND THE

MUNICIPALITY'S THIRD-PARTY AGENCY:

(I) THE FINAL INSPECTION REPORT THAT WAS ISSUED FOR

THE PROJECT.

(II) A SUMMARY OF TOTAL FEES CHARGED TO THE

APPLICANT.

(III) PAYMENT OF THE SURCHARGE ASSESSED UNDER

PARAGRAPH (1).

(IV) THE FEE REQUIRED UNDER SECTION 703(A).

(V) ANY ADDITIONAL DOCUMENTATION ASSOCIATED WITH THE

PROJECT THAT IS REQUESTED BY THE MUNICIPALITY.

(7) THE MUNICIPALITY OR ITS CONTRACTED THIRD-PARTY

AGENCY, WHICHEVER IS APPLICABLE, SHALL ACCEPT THE FINAL

INSPECTION REPORT WITH RESPECT TO THE REQUIREMENTS OF THIS

ACT. THE CONTRACTED THIRD-PARTY AGENCY SHALL BE IMMUNE FROM

ANY CIVIL LIABILITY ASSOCIATED WITH CONTENTS OF THE FINAL

INSPECTION REPORT.

(8) THE MUNICIPALITY OR ITS CONTRACTED THIRD-PARTY

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AGENCY MAY WITHHOLD ISSUANCE OF THE CERTIFICATE OF OCCUPANCY

FOR A PROJECT IF THE ALTERNATIVE THIRD-PARTY AGENCY FAILS TO

COMPLY WITH PARAGRAPH (6).

(9) THE MUNICIPALITY MAY NOTIFY THE DEPARTMENT OF A

POSSIBLE VIOLATION OF THIS ACT IF AN ALTERNATIVE THIRD-PARTY

AGENCY FAILS TO COMPLY WITH PARAGRAPH (6). UPON RECEIVING

NOTICE BY THE MUNICIPALITY, THE DEPARTMENT SHALL CONDUCT AN

INVESTIGATION. THE DEPARTMENT MAY CONSIDER AN INTENTIONAL

FAILURE TO COMPLY WITH PARAGRAPH (6) AS JUST CAUSE FOR

DECERTIFICATION OF THE ALTERNATIVE THIRD-PARTY AGENCY UNDER

SECTION 701(H).

(10) A PROFESSIONAL SERVICES CONTRACT BETWEEN A

MUNICIPALITY AND A THIRD-PARTY AGENCY FOR THE

EXCLUSIVE ADMINISTRATION AND ENFORCEMENT OF THIS ACT IN

EFFECT BEFORE THE EFFECTIVE DATE OF THIS SUBSECTION SHALL

REMAIN IN EFFECT AND THE PROVISIONS OF THIS SUBSECTION SHALL

APPLY UPON THE EXPIRATION OF THE ORIGINAL TERMS OF THE

PROFESSIONAL SERVICES CONTRACT.

* * *

SECTION 2. THE DEPARTMENT MAY ISSUE REGULATIONS TO ESTABLISH

OR CLARIFY PROCEDURES NECESSARY TO EFFECTUATE THE INTENT OF THIS

ACT.

SECTION 3. THIS ACT SHALL TAKE EFFECT IN 60 DAYS.

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