AN ACT relating to permits.

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AN ACT relating to permits. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. A NEW SECTION OF KRS CHAPTER 61 IS CREATED TO 3
READ AS FOLLOWS: 4
(1) For purposes of this section: 5
(a) "Applicant" means any person or entity who has submitted a permit 6
application to a permitting authority for approval; 7
(b) "Permit" means any authorizat ion, license, or approval issued by a 8
governmental entity or department that is required to engage in any activity; 9
and 10
(c) "Permitting authority" means a governmental entity or department 11
responsible for reviewing and issuing permits. 12
(2) Notwithstanding any provision of law to the contrary: 13
(a) A permitting authority shall process and review permit applications in a 14
timely ma nner and shall issue a decision on any application within sixty 15
(60) days of the submission of an application. If a permitting authority fails 16
to issue a decision within sixty (60) days, a permit shall be immediately 17
granted to the applicant. 18
(b) If a permitting authority denies an application or conditionally approves an 19
application, its decision shall be based on clearly established applicable laws 20
and regulations and shall be clearly articulated to the applicant. 21
(c) The Circuit Court of the county in which the applicant resides or for which 22
the permit is sought shall have jurisdiction over any appeal brought by an 23
applicant following the decision of a permitting authority. The Circuit Court 24
shall review the decision of the permitting authority de novo. In reviewing 25
the decision, the Circuit Court shall consider whether the permitting 26
authority acted within its jurisdiction in issuing the decision and whether 27
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the decision is supported based on clear and convincing evidence in light of 1
the whole record. If the Circuit Court finds against the permitting authority, 2
it shall direct the permitting authority to grant the permit to the applicant, 3
and shall award attorney's fees, expenses, and costs incurred by the 4
applicant. 5
SECTION 2. A NEW SECTION OF KRS CHAPTER 61 IS CREATED TO 6
READ AS FOLLOWS: 7
(1) For purposes of this section: 8
(a) "Development permit" means any authorization, license, or approval issued 9
by a governmental entity or department related to the construction, 10
alteration, or use of a property, including but not limited to building 11
permits, land use or zoning permits, plat approvals, lot splits, infrastructure 12
permits, and environmental permits; 13
(b) "Expedited review process" means a streamlined procedure established by a 14
relevant authority to resolve disputes related to development permits, which 15
may include accelerated proceedings in court, mediation, or alternative 16
dispute resolution; 17
(c) "Relevant authority" means a governmental entity or department 18
responsible for issuing a development permit; and 19
(d) "Third-party challenger" means a person or entity other than an applicant 20
for a development permit or a relevant authority. 21
(2) Notwithstanding any provision of law to the contrary: 22
(a) Development permits issued by the relevant authority shall be presumed 23
valid and enforceable; 24
(b) 1. A third -party challenger shall have standing to challenge a relevant 25
authority's decision to issue a development permit only if that person: 26
a. Has property adjacent to the property fo r which the development 27
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permit was issued; and 1
b. Can demonstrate that the issuance of the development permit 2
would: 3
i. Cause concrete and particularized harm to that person's 4
property; and 5
ii. Present a clear and immediate threat to health, safety, or 6
welfare or otherwise constitutes a common law nuisance. 7
2. A third-party challenger that has brought a claim in accordance with 8
this paragraph shall bear the burden of proof by clear and convincing 9
evidence. 10
3. A person whose application for a development pe rmit is denied 11
following a claim by a third -party challenger may appeal the final 12
decision of the Circuit Court to the Court of Appeals. 13
4. A person whose application for a development permit is finally 14
approved following the challenge of a third -party challenger shall be 15
awarded attorney's fees, expenses, and costs to be paid by the third -16
party challenger; and 17
(c) A relevant authority shall establish an expedited review process for 18
resolving disputes concerning development permits. 19
SECTION 3. A NEW SECTION OF KRS CHAPTER 100 IS CREATED TO 20
READ AS FOLLOWS: 21
(1) Notwithstanding any provision of law to the contrary, all proposed housing 22
projects, including but not limited to those involving accessory dwelling units and 23
multifamily housing units, that meet the criteria outlined in a planning unit's 24
land use code or regulations shall be approved by -right, without the need for 25
discretionary review or approval by a planning commission, board, or other 26
regulatory body. 27
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(2) A Circuit Court shall have jurisdiction over any claim brought by a housing 1
project applicant that a planning unit has violated subsection (1) of this section. 2
The Circuit Court shall review the decision of the planning unit de novo. In 3
reviewing the decis ion, the Circuit Court shall consider whether the planning 4
unit acted within its jurisdiction in issuing the decision and whether the decision 5
is supported based on clear and convincing evidence in light of the whole record. 6
If the Circuit Court finds against the planning unit, it shall award attorney's fees, 7
expenses, and costs incurred by the housing project applicant. 8
(3) This section shall not be construed to: 9
(a) Prohibit a planning unit from monitoring a housing development for 10
compliance with its ord inances or regulations or engaging in enforcement 11
actions; or 12
(b) Affect, prohibit, preempt, or render unenforceable any property or use 13
restrictions contained in the properly enacted rules or regulations of a 14
homeowners association, condominium associatio n, or other similar 15
property owners association or cooperative. 16
Section 4. KRS 198B.060 is amended to read as follows: 17
(1) Each local government shall employ a building official or inspector and other code 18
enforcement pe rsonnel as necessary, or shall contract for inspection and code 19
enforcement services in accordance with subsections (8) and (11) of this section to 20
enforce the Uniform State Building Code within the boundaries of its jurisdiction, 21
except that permits, insp ections, and certificates of occupancy shall not be 22
mandatory for single -family residences unless a local government passes an 23
ordinance requiring inspections of single-family residences. 24
(2) (a) Local governments shall be responsible for the examination a nd approval or 25
disapproval of plans and specifications for churches having a capacity of four 26
hundred (400) or less persons, and six thousand (6,000) or less square feet of 27
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total floor area, and buildings of no more than three (3) stories in height, 1
exclusive of attic and basement, which do not contain more than twenty 2
thousand (20,000) square feet of floor area, and are not intended for 3
educational, institutional, or high hazard occupancy; or assembly, business, or 4
industrial occupancy in excess of one hun dred (100) persons, except churches 5
as stated in this subsection, or for use as a frozen food locker plant as defined 6
in KRS 221.010. 7
(b) Local governments shall be responsible for the issuance and revocation of 8
building permits, licenses, certificates, an d similar documents which cover 9
activities within their area of responsibility, and the inspection of all buildings 10
pursuant to this chapter and the Uniform State Building Code. Each local 11
government issuing a building or demolition permit or an initial ce rtificate of 12
occupancy on a new structure shall send a copy of the permit or certificate to 13
the commissioner for his or her use in maintaining an accurate housing 14
inventory for Kentucky. 15
(c) Notwithstanding the provisions of paragraph (a) of this subsectio n or the 16
provisions of KRS 162.060, local governments may have jurisdiction for plan 17
review, inspection, and enforcement responsibility over buildings intended for 18
educational purposes, other than licensed day -care centers, but only when 19
agreed to in writi ng by the local government and the department. Copies of 20
documentation related to plan review, inspection, and enforcement shall be 21
provided to the Kentucky Department of Education at the time they are issued 22
to the district. Any agreements relating to exp anded jurisdiction in effect on 23
July 14, 2022, may be amended accordingly. 24
(3) Urban-county governments may determine service districts within their boundaries 25
within which farm dwellings and other farm buildings, not used in the business of 26
retail trade or as a place of regular employment for ten (10) or more people, shall be 27
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exempt from the requirements of the Uniform State Building Code. The 1
determination may be reviewed and altered by the department. 2
(4) (a) With the exception of single -family dwellings , the department shall be 3
responsible for the examination and approval or disapproval of plans and 4
specifications for all buildings which are not the responsibility of local 5
governments. The department may issue and revoke permits, licenses, 6
certificates, and similar documents within its area of responsibility, and shall 7
have concurrent jurisdiction with local governments for the inspection of all 8
buildings pursuant to this chapter and the Uniform State Building Code. 9
(b) If the commissioner determines that the local jurisdiction is not adequately 10
performing any portion of its program, the department may preempt that 11
portion of a local program, except that the department shall not preempt or 12
assert jurisdiction for the enforcement of the code on single -family dwellings. 13
The commissioner shall explain his or her reasons for preemption in writing 14
and provide a copy to the local jurisdiction. 15
(c) The local jurisdiction may appeal the preemption directly to the 16
commissioner, and the department shall review the ap peal according to the 17
procedures found in subsections (8) to (10) of KRS 198B.070. No preemption 18
by the commissioner shall take place until a final decision has been issued in 19
an appeal under this subsection. 20
(d) If the department preempts any portion of a local program, it shall collect the 21
fees applicable to that portion of the program. 22
(5) (a) Any local government may petition the commissioner requesting that 23
additional plan review functions be allocated to that local government. The 24
petition shall include evidence of the local government's capability to perform 25
additional plan review functions. 26
(b) The commissioner, after review of the petition and supporting evidence, may 27
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grant or deny to the local government any part of a request for additional 1
responsibility. If the commissioner denies any part of a petition, he or she 2
shall explain his or her reasons for denial in writing, and provide a copy to the 3
local government. 4
(c) A local government may appeal the denial directly to the commissioner, and 5
the department shall review the appeal according to the procedures found in 6
subsections (8) to (10) of KRS 198B.070. 7
(d) If the local government is granted additional responsibility by the 8
commissioner, the department shall hold concurrent jurisdiction over the 9
additional responsibility, but the local government shall collect any fees for 10
functions it performs pursuant to the additional responsibility. 11
(6) Any local government may also petition the commissioner requesting that plans and 12
specifications inspection, building inspection, and approval responsibility relating 13
to the application of local plumbing permits for local installations be allocated to 14
the local government. The petition shall not be granted unless the local government 15
has demonstrated to the commi ssioner that it can perform these functions in 16
accordance with KRS 198B.050 to 198B.090. 17
(7) The commissioner shall expedite the review of plans and specifications by 18
assigning responsibilities and coordinating review activities among the department's 19
various functional divisions so as to prevent unnecessary duplication in the review 20
of plans and specifications. 21
(8) No building shall be constructed in this state until a local building official and an 22
official representing the department, if the department h as jurisdiction, issue a 23
permit for the construction. Nothing in this subsection shall require a single -family 24
dwelling to be permitted or inspected unless a local government has established a 25
building inspection program as set out in this section. 26
(9) The local building official or the representative of the department shall issue a 27
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permit if the proposed building satisfies the requirements of the Uniform State 1
Building Code and if the party desiring to construct the building has complied with 2
all other leg al requirements concerning the location and construction of the 3
building. The applicant for a building permit, by the act of applying for the permit, 4
shall be deemed to have consented to inspection by the local government or the 5
department, of the building during construction and upon the completion of 6
construction for the purpose of determining that the building is constructed in 7
compliance with the Uniform State Building Code. 8
(10) (a) No permit for building, construction, reconstruction, renovation, demo lition, 9
or maintenance or for any activity related to building, construction, 10
reconstruction, renovation, demolition, or maintenance shall be issued by any 11
building department or by any political subdivision of the Commonwealth of 12
Kentucky to any person se eking the permit unless the person shall assure, by 13
affidavit, that all contractors and subcontractors employed, or that will be 14
employed, on activity covered by the permit shall be in compliance with 15
Kentucky requirements for workers' compensation insuran ce according to 16
KRS Chapter 342 and unemployment insurance according to KRS Chapter 17
341. 18
(b) Any person who fails to comply with the assurances required under paragraph 19
(a) of this subsection upon such finding by a court of competent jurisdiction, 20
shall be fined an amount not to exceed four thousand dollars ($4,000) or an 21
amount equal to the sum of all uninsured and unsatisfied claims brought under 22
the provisions of KRS Chapter 342 and unemployment insurance claims for 23
which no wages were reported as requir ed by KRS Chapter 341, whichever is 24
greater. 25
(c) The penalty imposed in paragraph (b) of this subsection shall be enforced by 26
the county attorney for the county in which the violation occurred. 27
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(11) A certified electrical inspector shall be employed by, or contracted for, or 1
contracted with a local government having responsibility over buildings described 2
in this section as part of its building inspection program. After a certified electrical 3
inspector has been provided for by the local government or the de partment, no 4
utility shall initiate permanent electrical service to any new building, or any 5
building which has been moved, until a final certificate of approval has been issued 6
by a certified electrical inspector. Unless the department shall notify the ut ility in 7
writing as to which buildings are subject to department approval, it shall be 8
presumed by the utility that the building is subject to the jurisdiction of the local 9
government. However, nothing in this section shall prohibit the supply or use of 10
necessary electrical services during the construction and testing process. 11
(12) This section shall apply to industrialized building systems, but destructive 12
disassembly of industrialized building systems which carry a seal of approval 13
pursuant to a manufactured building law in the state in which they were 14
manufactured, which seal of a pproval is accepted by the department, shall not be 15
performed in order to conduct the tests or inspections. 16
(13) No building on which construction was begun nor any industrialized building 17
system on which site preparation and assembly were begun after the Uniform State 18
Building Code became effective shall be occupied until the local building official or 19
a representative of the department issues a certificate of occupancy certifying that 20
the building was constructed in conformance with the standards of the U niform 21
State Building Code, or assembled or installed in conformance with applicable 22
instructions. Nothing in this subsection shall be construed to require a certificate of 23
occupancy to be issued for any single -family dwelling unless a local government 24
has established jurisdiction for the enforcement of the Uniform State Building Code 25
under this section. 26
(14) A local government may associate with other local governments, and may seek the 27
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technical assistance of other agencies or area development districts i n order to 1
provide for the local enforcement of the Uniform State Building Code. 2
(15) Local governments or associations of local governments may contract with a 3
person, firm, or company to perform the plans and specifications inspection or 4
building inspection functions required of the local government by the provisions of 5
this section if: 6
(a) The person performing the plans and specifications inspection is certified by 7
the department as having successfully completed the test requirements 8
provided by KRS 198 B.090 to practice as a certified plans and specifications 9
inspector; 10
(b) The person performing the building inspection is certified by the department 11
as having successfully completed the test requirements provided in KRS 12
198B.090 to practice as a certified building inspector; 13
(c) The person, firm, or company does not have a conflict of interest between its 14
plan review or inspection functions and any other employment or business 15
activities; 16
(d) The person performing the plumbing inspection is certified by th e department 17
as having successfully completed the requirements provided in KRS 318.140 18
to practice as a certified plumbing inspector; and 19
(e) The person, firm, or company does not have a conflict of interest between its 20
plan review or inspection functions and any other employment or business 21
activities. 22
(16) If the department has reason to believe that an inspector is not enforcing, or is 23
improperly enforcing, the provisions of the Kentucky building codes, it shall 24
conduct an informal hearing to review the inspector's procedures and return in 25
written form the required corrections resulting from the hearing to the inspector, or 26
may take action to suspend or revoke the inspector's certificate. 27
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(17) If the inspector fails to comply within sixty (60) days of a w ritten notification from 1
the department that specifies the required corrections, the department shall suspend 2
the inspector's certification until the inspector complies. Any action to suspend or 3
revoke an inspector's certificate may be appealed to the depa rtment, and upon 4
appeal an administrative hearing shall be conducted in accordance with KRS 5
Chapter 13B. 6
(18) Each local government and the department may establish a schedule of fees for the 7
functions performed under this chapter. The fees shall be design ed to fully cover, 8
but shall not exceed, the cost of the service performed. Fees payable to the 9
department shall be paid into the State Treasury and credited to a trust and agency 10
fund to be used by the department in carrying out this chapter. No part of t his fund 11
shall revert to the general fund of the Commonwealth. 12
(19) Notwithstanding any provision of law to the contrary, a person seeking any plan 13
review or inspection in accordance with this section may have that plan review or 14
inspection performed by a licensed third-party inspector pursuant to Section 5 of 15
this Act. 16
SECTION 5. A NEW SECTION OF KRS CHAPTER 198B IS CREATED TO 17
READ AS FOLLOWS: 18
(1) For purposes of this section: 19
(a) "Applicant" means a person who applies for a permit; 20
(b) "Permit" means: 21
1. An authorization required to conduct any construction -related 22
activities involving a qualifying property; or 23
2. A certificate of occupancy or other similar certification for a 24
qualifying property; 25
(c) "Qualifying property": 26
1. Means a residential building containing ten (10) or fewer units; and 27
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2. Includes buildings with mixed commercial and residential uses; 1
(d) "Qualifying third-party inspector" means a third-party inspector that is not: 2
1. In any way affiliated with or financially interested in the project to be 3
reviewed or inspected; or 4
2. An employee of a regulatory authority from which the permit that is 5
the subject of an application that is sought; 6
(e) "Regulatory authority" means a state or local governmental entit y 7
enforcing any state code for which a permit is required; 8
(f) "Regulatory fee" means any fee, including a permit fee, application fee, 9
inspection fee, or any other similar fee, that a regulatory authority requires 10
as part of its enforcement of any state code for which a permit is required; 11
and 12
(g) "Third-party inspector" means: 13
1. An architect licensed under KRS Chapter 323; 14
2. An engineer licensed under KRS Chapter 322; 15
3. An electrical inspector certified under KRS Chapter 227; and 16
4. A building inspector, plans and specifications inspector, or plumbing 17
inspector certified under KRS 198B.090. 18
(2) (a) A regulatory authority shall provide any prospective applicant with a 19
schedule of the requirements for applying for and obtaining any permit, 20
including: 21
1. A list of any plan reviews or inspections that are required by t he 22
regulatory authority to obtain a permit; 23
2. The timelines set forth in this section regarding notification and 24
submission of documents; 25
3. Any regulatory fees charged by the regulatory authority; and 26
4. All other requirements to complete an application for a permit, 27
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including any prior approvals or permits needed. 1
(3) (a) After an applicant has submitted an application for a permit, the regulatory 2
authority shall send the applicant a notice indicating whether the 3
application is complete, except for any r equired plan review or inspection, 4
within three (3) business days of receiving the application. The notice shall 5
contain a statement indicating whether the regulatory authority is able to 6
conduct a plan review and inspection within the time limits establis hed in 7
subsection (4)(a)1. and 2. of this section. 8
(b) If an applicant is notified that an application for a permit is deficient: 9
1. The notification shall contain a list of any deficiencies in the 10
application; and 11
2. The applicant may submit revisions to the application to cure any 12
deficiencies. 13
(c) A regulatory authority shall send an applicant a notice indicating whether 14
the deficiencies of the application have been cured within three (3) business 15
days of receiving the revisions. 16
(d) An applicant may resubmit an application for a permit any number of times 17
until the application is deemed complete, except for any required plan 18
review or inspection, and a regulatory authority's responses shall be subject 19
to the three (3) day time limit set out in this subsection. 20
(4) (a) If the regulatory authority notifies an applicant that an application is 21
complete, except for any required plan review or inspection, the regulatory 22
authority shall conduct any required: 23
1. Plan review within seven (7) business days after the notice is sent; and 24
2. Inspection within five (5) business days after receiving a written 25
request for the inspection. 26
(b) 1. An applicant may use a qualifying third -party inspector to perform a 27
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plan review or inspection, regardless of whether the regulat ory 1
authority is able to perform those activities within the time frames set 2
out in paragraph (a) of this subsection. 3
2. The cost for any plan review or inspection performed by a qualifying 4
third-party inspector shall be at the applicant's own expense. 5
3. A regulatory authority that has notified an applicant under subsection 6
(3)(a) of this section that it cannot meet the deadlines established in 7
paragraph (a)1. and 2. of this subsection: 8
a. Shall refund any fees paid to the regulatory authority associated 9
with the review or inspection if the applicant elects to use a 10
qualifying third-party inspector as authorized in subparagraph 1. 11
of this paragraph; and 12
b. May withhold from the refund an administrative fee not to 13
exceed one hundred dollars ($100). 14
4. A regulatory authority that has notified an applicant under subsection 15
(3)(a) of this section that it can meet the deadlines established in 16
paragraph (a) of this subsection, but fails to meet those deadlines, 17
shall: 18
a. Issue a temporary permit to the appli cant that allows the 19
applicant to begin work; and 20
b. Refund all fees paid to the regulatory authority for the review or 21
inspection associated with the application. 22
(5) (a) A qualifying third -party inspector may perform any plan review or 23
inspection that is required by a regulatory authority to determine 24
compliance with regulatory requirements and necessary to receive a 25
building permit or certificate of occupancy, including but not limited to 26
inspections of: 27
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1. Footings; 1
2. Foundations; 2
3. Concrete slabs; 3
4. Framing; 4
5. Electrical; 5
6. Plumbing; 6
7. Heating; 7
8. Ventilation; and 8
9. Air conditioning. 9
(b) Any plan review or inspection conducted by a qualifying third -party 10
inspector shall be at least as extensive as a plan review or inspection that 11
would be conducted by the regulatory authority. 12
(c) A qualifying third -party inspector shall only perform a plan review or 13
inspection that is within the scope of the qualifying third -party inspector's 14
competency. 15
(d) Upon completing a plan review or inspection, a qualify ing third -party 16
inspector shall prepare an affidavit certifying under oath that: 17
1. The plans were reviewed or inspection was conducted by the third -18
party inspector; 19
2. The third-party inspector was duly authorized to perform the review or 20
inspection as set out in this section; 21
3. The third -party inspector maintains the insurance coverage in 22
accordance with paragraph (g) of this subsection; 23
4. The third -party inspector has the appropriate registration or 24
certification, and the plan review or inspection cond ucted was within 25
the scope of the third-party inspector's competence; and 26
5. The plans or subject of the inspection comply with all applicable state 27
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and local requirements. 1
(e) A qualifying third -party inspector shall submit a copy of a plan review or 2
inspection report conducted pursuant to this section to the regulatory 3
authority within five (5) days of its completion. As part of this submission, 4
the qualifying third-party inspector shall submit: 5
1. The affidavit required in paragraph (d) of this subsection; 6
2. Any remaining fees; and 7
3. Any other documents required by the regulatory authority to 8
determine compliance. 9
(g) A qualifying third -party inspector shall maintain insurance coverage for 10
personal liability insurance of at least: 11
1. One million dollars ($1,000,000) per claim; and 12
2. Two million dollars ($2,000,000) of aggregate coverage. 13
(h) A qualifying third-party inspector performing any activities pursuant to this 14
subsection shall be subject to the disciplinary guidelines of his o r her 15
relevant professional licensing or certification board. Any complaint, 16
investigation, or discipline arising out of a qualifying third -party inspector's 17
activities pursuant to this subsection shall be conducted by his or her 18
relevant professional licensing or certification board. 19
(6) A regulatory authority shall issue a permit or approval to an applicant within one 20
(1) business day following the completion of any required plan review or 21
inspection, including a third -party plan review or inspection that complies with 22
subsection (5) of this section. 23
(7) Any ordinance, rule, or regulation of a regulatory authority that conflicts with 24
this section is void and unenforceable. 25
(8) This section shall not be construed to prohibit a regulatory authority from issu ing 26
a stop work order if the regulatory authority determines that a condition of a 27
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building project constitutes an immediate threat to public safety and welfare. 1
(9) A regulatory authority and any of its agents shall be immune from liability to any 2
person for any action or inaction by a qualifying third -party inspector or 3
applicant under this section. 4