Senate Bill sb1470c1

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    Florida Senate - 2005                           CS for SB 1470

    By the Committee on Regulated Industries; and Senator
    Constantine




    580-2267-05

  1                      A bill to be entitled

  2         An act relating to alternative plans review and

  3         inspection; amending s. 553.791, F.S.;

  4         clarifying a definition; expanding

  5         authorization to use private providers to

  6         provide building code inspection services;

  7         including fee owner contractors within such

  8         authorization; revising notice requirements for

  9         using private providers; revising procedures

10         for issuing permits; providing requirements for

11         representatives of private providers; providing

12         for waiver of certain inspection records

13         requirements under certain circumstances;

14         requiring issuance of stop-work orders to be

15         pursuant to law; providing for establishment of

16         a registration system for private providers and

17         authorized representatives of private providers

18         for licensure compliance purposes; preserving

19         authority to issue emergency stop-work orders;

20         revising insurance requirements for private

21         providers; providing a definition; authorizing

22         performance audits by local building code

23         enforcement agencies of private providers;

24         specifying conditions for proceeding with

25         building work; amending s. 468.621, F.S.;

26         revising a ground for taking certain

27         disciplinary actions; providing an effective

28         date.

29  

30  Be It Enacted by the Legislature of the State of Florida:

31  

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    Florida Senate - 2005                           CS for SB 1470
    580-2267-05




 1         Section 1.  Paragraph (f) of subsection (1),

 2  subsections (2) and (4), paragraph (a) of subsection (6), and

 3  subsections (7), (9), (11), (12), (14), (15), and (17) of

 4  section 553.791, Florida Statutes, are amended to read:

 5         553.791  Alternative plans review and inspection.--

 6         (1)  As used in this section, the term:

 7         (f)  "Permit application" means a properly completed

 8  and submitted application for:

 9         1.  the requested building or construction permit,

10  including:.

11         1.2.  The plans reviewed by the private provider.

12         2.3.  The affidavit from the private provider required

13  pursuant to subsection (5).

14         3.4.  Any applicable fees.

15         4.5.  Any documents required by the local building

16  official to determine that the fee owner has secured all other

17  government approvals required by law.

18         (2)  Notwithstanding any other provision of law or

19  local government ordinance or local policy, the fee owner of a

20  building or structure, or the fee owner's contractor upon

21  written authorization from the fee owner, may choose to use a

22  private provider to provide building code inspection services

23  with regard to such building or structure and may make payment

24  directly to the private provider for the provision of such

25  services. All such services shall be the subject of a written

26  contract between the private provider, or the private

27  provider's firm, and the fee owner. The fee owner may elect to

28  use a private provider to provide either plans review or

29  required building inspections, or both. However, if the fee

30  owner or the fee owner's contractor uses a private provider to

31  provide plans review, the local building official, in his or

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    Florida Senate - 2005                           CS for SB 1470
    580-2267-05




 1  her discretion and pursuant to duly adopted policies of the

 2  local enforcement agency, may require the fee owner or the fee

 3  owner's contractor who desires to use a private provider to

 4  use the private provider to also provide both plans review and

 5  required building inspections inspection services.

 6         (4)  A fee owner or the fee owner's contractor using a

 7  private provider to provide building code inspection services

 8  shall notify the local building official at the time of permit

 9  application, or no less than 7 business days prior to the

10  first scheduled inspection by the local building official or

11  building code enforcement agency for a private provider

12  performing required inspections of construction under this

13  section, on a form to be adopted by the commission. This

14  notice shall include the following information:

15         (a)  The services to be performed by the private

16  provider.

17         (b)  The name, firm, address, telephone number, and

18  facsimile number of each private provider who is performing or

19  will perform such services, his or her professional license or

20  certification number, qualification statements or resumes,

21  and, if required by the local building official, a certificate

22  of insurance demonstrating that professional liability

23  insurance coverage is in place for the private provider's

24  firm, the private provider, and any duly authorized

25  representative in the amounts required by this section.

26         (c)  An acknowledgment from the fee owner in

27  substantially the following form:

28  

29  I have elected to use one or more private providers to provide

30  building code plans review and/or inspection services on the

31  building or structure that is the subject of the enclosed

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    Florida Senate - 2005                           CS for SB 1470
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 1  permit application, as authorized by s. 553.791, Florida

 2  Statutes. I understand that the local building official may

 3  not review the plans submitted or perform the required

 4  building inspections to determine compliance with the

 5  applicable codes, except to the extent specified in said law.

 6  Instead, plans review and/or required building inspections

 7  will be performed by licensed or certified personnel

 8  identified in the application. The law requires minimum

 9  insurance requirements for such personnel, but I understand

10  that I may require more insurance to protect my interests. By

11  executing this form, I acknowledge that I have made inquiry

12  regarding the competence of the licensed or certified

13  personnel and the level of their insurance and am satisfied

14  that my interests are adequately protected. I agree to

15  indemnify, defend, and hold harmless the local government, the

16  local building official, and their building code enforcement

17  personnel from any and all claims arising from my use of these

18  licensed or certified personnel to perform building code

19  inspection services with respect to the building or structure

20  that is the subject of the enclosed permit application.

21  

22  If the fee owner or the fee owner's contractor makes any

23  changes to the listed private providers or the services to be

24  provided by those private providers, the fee owner or the fee

25  owner's contractor shall, within 1 business day after any

26  change, update the notice to reflect such changes. In

27  addition, the fee owner or the fee owner's contractor shall

28  post at the project site, prior to the commencement of

29  construction and updated within 1 business day after any

30  change, on a form to be adopted by the commission, the name,

31  firm, address, telephone number, and facsimile number of each

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    Florida Senate - 2005                           CS for SB 1470
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 1  private provider who is performing or will perform building

 2  code inspection services, the type of service being performed,

 3  and similar information for the primary contact of the private

 4  provider on the project.

 5         (6)(a)  No more than Within 30 business days after

 6  receipt of a permit application and the affidavit from the

 7  private provider required pursuant to subsection (5), the

 8  local building official shall issue the requested permit or

 9  provide a written notice to the permit applicant identifying

10  the specific plan features that do not comply with the

11  applicable codes, as well as the specific code chapters and

12  sections. If the local building official does not provide a

13  written notice of the plan deficiencies within the prescribed

14  30-day period, the permit application shall be deemed approved

15  as a matter of law, and the permit shall be issued by the

16  local building official on the next business day.

17         (7)  A private provider performing required inspections

18  under this section shall inspect each phase of construction as

19  required by the applicable codes. The private provider shall

20  be permitted to send a duly authorized representative to the

21  building site to perform the required inspections, provided

22  all required reports and certifications are prepared by and

23  bear the signature of the private provider. The duly

24  authorized representative must be an employee of the private

25  provider entitled to receive unemployment compensation

26  benefits under chapter 443. The contractor's contractual or

27  legal obligations are not relieved by any action of the

28  private provider.

29         (9)  Upon completing the required inspections at each

30  applicable phase of construction, the private provider shall

31  record such inspections on a form acceptable to the local

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    Florida Senate - 2005                           CS for SB 1470
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 1  building official. These inspection records shall reflect

 2  those inspections required by the applicable codes of each

 3  phase of construction for which permitting by a local

 4  enforcement agency is required. The private provider, before

 5  leaving the project site, shall post each completed inspection

 6  record, indicating pass or fail, at the site and provide the

 7  record to the local building official within 2 business days.

 8  The local building official may waive the requirement to

 9  provide a record of each inspection within 2 business days if

10  the record is posted at the project site and all such

11  inspection records are submitted with the certificate of

12  compliance. Records of all required and completed inspections

13  shall be maintained at the building site at all times and made

14  available for review by the local building official. The

15  private provider shall report to the local enforcement agency

16  any condition that poses an immediate threat to public safety

17  and welfare.

18         (11)  No more than Within 2 business days after receipt

19  of a request for a certificate of occupancy or certificate of

20  completion and the applicant's presentation of a certificate

21  of compliance and approval of all other government approvals

22  required by law, the local building official shall issue the

23  certificate of occupancy or certificate of completion or

24  provide a notice to the applicant identifying the specific

25  deficiencies, as well as the specific code chapters and

26  sections. If the local building official does not provide

27  notice of the deficiencies within the prescribed 2-day period,

28  the request for a certificate of occupancy or certificate of

29  completion shall be deemed granted and the certificate of

30  occupancy or certificate of completion shall be issued by the

31  local building official on the next business day. To resolve

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    Florida Senate - 2005                           CS for SB 1470
    580-2267-05




 1  any identified deficiencies, the applicant may elect to

 2  dispute the deficiencies pursuant to subsection (12) or to

 3  submit a corrected request for a certificate of occupancy or

 4  certificate of completion.

 5         (12)  If the local building official determines that

 6  the building construction or plans do not comply with the

 7  applicable codes, the official may deny the permit or request

 8  for a certificate of occupancy or certificate of completion,

 9  as appropriate, or may issue a stop-work order for the project

10  or any portion thereof as provided by law, if the official

11  determines that such noncompliance poses a threat to public

12  safety and welfare, subject to the following:

13         (a)  The local building official shall be available to

14  meet with the private provider within 2 business days to

15  resolve any dispute after issuing a stop-work order or

16  providing notice to the applicant denying a permit or request

17  for a certificate of occupancy or certificate of completion.

18         (b)  If the local building official and private

19  provider are unable to resolve the dispute, the matter shall

20  be referred to the local enforcement agency's board of

21  appeals, if one exists, which shall consider the matter at its

22  next scheduled meeting or sooner. Any decisions by the local

23  enforcement agency's board of appeals, or local building

24  official if there is no board of appeals, may be appealed to

25  the commission as provided by this chapter pursuant to s.

26  553.77(1)(h).

27         (c)  Notwithstanding any provision of this section, any

28  decisions regarding the issuance of a building permit,

29  certificate of occupancy, or certificate of completion may be

30  reviewed by the local enforcement agency's board of appeals,

31  if one exists. Any decision by the local enforcement agency's

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    Florida Senate - 2005                           CS for SB 1470
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 1  board of appeals, or local building official if there is no

 2  board of appeals, may be appealed to the commission as

 3  provided by this chapter pursuant to s. 553.77(1)(h), which

 4  shall consider the matter at the commission's next scheduled

 5  meeting.

 6         (14)(a)  No local enforcement agency, local building

 7  official, or local government may adopt or enforce any laws,

 8  rules, procedures, policies, qualifications, or standards more

 9  stringent than those prescribed by this section.

10         (b)  A local enforcement agency, local building

11  official, or local government may establish, for private

12  providers and duly authorized representatives working within

13  that jurisdiction, a system of registration to verify

14  compliance with the licensure requirements of paragraph (1)(g)

15  and the insurance requirements of subsection (15).

16         (c)  This section does not limit the authority of the

17  local building official to issue a stop-work order for a

18  building project or any portion of such order, as provided by

19  law, if the official determines that a condition on the

20  building site constitutes an immediate threat to public safety

21  and welfare.

22         (15)  A private provider may perform building code

23  inspection services on a building project under this section

24  only if the private provider maintains insurance for

25  professional and comprehensive general liability covering with

26  minimum policy limits of $1 million per occurrence relating to

27  all services performed as a private provider. Such insurance

28  shall have minimum policy limits of $1 million per occurrence

29  and $2 million in the aggregate for any project with a

30  construction cost of $5 million or less and $2 million per

31  occurrence and $4 million in the aggregate for any project

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    Florida Senate - 2005                           CS for SB 1470
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 1  with a construction cost of over $5 million. This section does

 2  not limit the ability of a fee owner to require additional

 3  insurance or higher policy limits. For these purposes, the

 4  term "construction cost" means the total cost of building

 5  construction as stated in the building permit application. If

 6  the private provider chooses to secure claims-made coverage to

 7  fulfill this requirement, the private provider must also

 8  maintain, including tail coverage for a minimum of 5 years

 9  subsequent to the performance of building code inspection

10  services. The insurance required under this subsection must be

11  written only by insurers authorized to do business in this

12  state with a minimum A.M. Best's rating of A. Before providing

13  building code inspection services within a local building

14  official's jurisdiction, a private provider shall provide to

15  the local building official a certificate of insurance

16  evidencing that the coverages required under this subsection

17  are in force.

18         (17)  Each local building code enforcement agency may

19  shall develop and maintain a process to audit the performance

20  of building code inspection services by private providers

21  operating within the local jurisdiction. Work on a building or

22  structure may proceed after inspection and approval by a

23  private provider if the provider has given notice of the

24  inspection pursuant to subsection (8) and, subsequent to such

25  inspection and approval, the work may not be delayed for

26  completion of an inspection audit by the local building code

27  enforcement agency.

28         Section 2.  Paragraph (i) of subsection (1) of section

29  468.621, Florida Statutes, is amended to read:

30         468.621  Disciplinary proceedings.--

31  

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    Florida Senate - 2005                           CS for SB 1470
    580-2267-05




 1         (1)  The following acts constitute grounds for which

 2  the disciplinary actions in subsection (2) may be taken:

 3         (i)  Failing to lawfully execute the duties and

 4  responsibilities specified in this part and ss. 553.73,

 5  553.781, and 553.79, and 553.791.

 6         Section 3.  This act shall take effect October 1, 2005.

 7  

 8          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 9                         Senate Bill 1470

10                                 

11  The community substitute (CS) amends s. 553.791, F.S., to
    replace the term "building" with the term "building or
12  structure."  It also amends s. 553.791(2), F.S., to include
    the fee owner's contractor as one of the persons that the
13  local enforcement agency may require to provide building
    inspection services if already providing plans review.
14  
    The CS deletes the requirement in current law that private
15  providers maintain professional liability insurance with
    minimum policy limits of one million dollars per occurrence.
16  It also deletes the reference to tail coverage.

17  The CS requires minimum comprehensive general liability
    insurance policy limits for projects that are dependent on the
18  construction cost.  It provides that the fee owner may require
    additional insurance.  It defines the term "construction
19  cost."  It provides for claims-made coverage.  It requires
    that the insurance must be written by an insurer authorized in
20  Florida and with a minimum A.M.Best rating of A.  It requires
    that the private provider give to the local building official
21  a certificate evidencing the required insurance coverage.

22  The CS amends s. 468.621, F.S., to reference s. 553.791, F.S.

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