AN ACT relating to residential building permits.

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AN ACT relating to residential building permits. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. A NEW SECTION OF KRS CHAPTER 198B IS CREATED TO 3
READ AS FOLLOWS: 4
(1) As used in this section: 5
(a) "Applicant" means a person who applies for a permit; 6
(b) "Permit" means: 7
1. An authorization required to conduct any construction -related 8
activities involving a qualifying property; or 9
2. A certificate of occupancy or other similar certification for a 10
qualifying property; 11
(c) "Qualifying property": 12
1. Means a residential building containing ten (10) or fewer units; and 13
2. Includes buildings with mixed commercial and residential uses; 14
(d) "Qualifying third-party inspector" means a third-party inspector that is not: 15
1. In any way affiliated with or financially interested in the proje ct to be 16
reviewed or inspected; or 17
2. An employee of a regulatory authority from which the permit that is 18
the subject of an application is sought; 19
(e) "Regulatory authority" means a state or local governmental entity 20
enforcing any state code for which a permit is required; 21
(f) "Regulatory fee" means any fee, including a permit fee, application fee, 22
inspection fee, or any other similar fee, that a regulatory authority requires 23
as part of its enforcement of any state code for which a permit is required; 24
and 25
(g) "Third-party inspector" means: 26
1. An architect licensed under KRS Chapter 323; 27
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2. An engineer licensed under KRS Chapter 322; 1
3. An electrical inspector certified under KRS Chapter 227; and 2
4. A building inspector, plans and specifications inspector, or plumbing 3
inspector certified under KRS 198B.090. 4
(2) A regulatory authority shall provide any prospective applicant with the 5
requirements for applying for and obtaining any permit, including: 6
(a) A list of any plan reviews or inspections that are required by the regulatory 7
authority; 8
(b) The time limits set forth in this section regarding notification and 9
submission of documents; 10
(c) Any regulatory fees charged by the regulatory authority; and 11
(d) All other requirements to complete an application for a per mit, including 12
any prior approvals or permits needed. 13
(3) (a) 1. After an applicant has submitted an application for a permit, the 14
regulatory authority shall send the applicant a notice indicating 15
whether the application is complete, except for any require d plan 16
review or inspection, within three (3) business days of receiving the 17
application. 18
2. If the regulatory authority finds that the application is complete, 19
except for the any required plan review or inspection, the notice shall 20
contain a statement indicating whether the regulatory authority is able 21
to conduct a plan review and inspection within the time limits 22
established in subsection (4) of this section. 23
(b) 1. If the regulatory authority finds the application is deficient, the 24
notification shall contain a list of any deficiencies in the application. 25
2. An applicant may resubmit an application for a permit any number of 26
times until the application is deemed complete, except for any required 27
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plan review or inspection. 1
3. A regulatory authority shall se nd an applicant a notice indicating 2
whether the deficiencies of the application have been cured within 3
three (3) business days of receiving the revisions. The notice shall 4
contain a statement indicating whether the regulatory authority is able 5
to conduct a plan review and inspection within the time limits 6
established in subsection (4) of this section. 7
(4) (a) When the regulatory authority notifies an applicant that an application is 8
complete under subsection (3) of this section, except for any required plan 9
review or inspection, the regulatory authority shall also indicate whether the 10
regulatory authority can m eet the following time limits to conduct any 11
required: 12
1. Plan review within fourteen (14) business days after the notice is sent; 13
and 14
2. Inspection within five (5) business days after receiving a written 15
request for the inspection. 16
(b) The time limits in paragraph (a) of this subsection may be extended if: 17
1. A cause outside the control of the regulatory authority requires an 18
extension and the regulatory authority provides the applicant a written 19
explanation articulating the need for the extension. In no c ase shall 20
the extension exceed an additional fourteen (14) business days for 21
plan review or an additional five (5) business days for inspection; 22
2. An extension is necessary due to the fault of the applicant and the 23
regulatory authority notifies the applicant and gives the applicant time 24
to cure the fault; or 25
3. The applicant and the regulatory authority mutually agree to an 26
extension. 27
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(c) 1. If the: 1
a. Regulatory authority notifies the applicant that it cannot meet 2
the time limits established in paragraph (a) of this subsection; 3
and 4
b. Applicant elects to use a qualifying third -party inspector under 5
subsection (5) of this section; 6
The regulatory authority shall refund any fees paid to it associated 7
with the plan review or inspection, less an administrative fee not to 8
exceed one hundred dollars ($100). 9
2. If the regulatory authority notifies the applicant that it can meet the 10
time limits established in paragraph (a) of this subsection but fails to 11
meet them, the regulatory authority shall: 12
a. Issue a tempora ry permit to the applicant that allows the 13
applicant to begin work; and 14
b. Refund all fees paid to the regulatory authority for the review or 15
inspection associated with the application. 16
(5) An applicant may use a qualifying third -party inspector to perform a plan review 17
or inspection, regardless of whether the regulatory authority is able to perform 18
those activities within the time limits set out in subsection (4) of this section. The 19
cost for any plan review or inspection performed by a qualifying third -party 20
inspector shall be at the applicant's own expense. 21
(6) (a) A qualifying third -party inspector may perform any plan review or 22
inspection that is required by a regulatory authority to receive a building 23
permit or certificate of occupancy, including but n ot limited to inspections 24
of: 25
1. Footings; 26
2. Foundations; 27
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3. Concrete slabs; 1
4. Framing; 2
5. Electrical; 3
6. Plumbing; 4
7. Heating; 5
8. Ventilation; and 6
9. Air conditioning. 7
(b) Any plan review or inspection conducted by a qualifying third -party 8
inspector shall be at least as extensive as a plan review or inspection that 9
would be conducted by the regulatory authority. 10
(c) A qualifying third -party inspector shall only perform a pla n review or 11
inspection that is within the scope of the qualifying third -party inspector's 12
competency and for which the qualifying third -party inspector is licensed or 13
certified. 14
(d) Upon completing a plan review or inspection, a qualifying third -party 15
inspector shall prepare an affidavit certifying under oath that: 16
1. The plans were reviewed or the inspection was conducted by the 17
qualifying third-party inspector; 18
2. The qualifying third -party inspector was duly authorized to perform 19
the review or inspection; 20
3. The qualifying third-party inspector maintains the insurance coverage 21
in accordance with paragraph (f) of this subsection; 22
4. The qualifying third -party inspector has the appropriate license, 23
certification, or registration, and the plan review or insp ection 24
conducted was within the scope of the third -party inspector's 25
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 rev iew 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
(f) 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
(g) A qualifying third-party inspector performing any activities pursuant to this 14
subsection shall be subject to the disciplinary guidelines of his or 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
professional licensing or certification board. 19
(7) 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, or within one (1) business day following the receipt of documentation 22
of a plan review or inspection by a third -party inspector that complies with 23
provisions set out in subsection (6) of this section. 24
(8) Any ordinance, rule, or regulation of a regulatory authority that conflicts with 25
this section is void and unenforceable. 26
(9) This section shall not be construed to prohibit a regulatory authority from issuing 27
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a stop -work order if the regulatory authority determines that a condition of a 1
building project constitutes an immediate threat to public safety and welfare. 2
(10) A regulatory authority and any of its agents shall be immune from liability to any 3
person for any action or inaction by a qualifying third -party inspector or 4
applicant under this section. 5
Section 2. KRS 198B.060 is amended to read as follows: 6
(1) Each local government shall employ a building official or inspector and other code 7
enforcement personnel as necessary, or shall contract for inspection and code 8
enforcement services in accordance with subsections (8) and (11) of this s ection to 9
enforce the Uniform State Building Code within the boundaries of its jurisdiction, 10
except that permits, inspections, and certificates of occupancy shall not be 11
mandatory for single -family residences unless a local government passes an 12
ordinance requiring inspections of single-family residences. 13
(2) (a) Local governments shall be responsible for the examination and approval or 14
disapproval of plans and specifications for churches having a capacity of four 15
hundred (400) or less persons, and six thous and (6,000) or less square feet of 16
total floor area, and buildings of no more than three (3) stories in height, 17
exclusive of attic and basement, which do not contain more than twenty 18
thousand (20,000) square feet of floor area, and are not intended for 19
educational, institutional, or high hazard occupancy; or assembly, business, or 20
industrial occupancy in excess of one hundred (100) persons, except churches 21
as stated in this subsection, or for use as a frozen food locker plant as defined 22
in KRS 221.010. 23
(b) Local governments shall be responsible for the issuance and revocation of 24
building permits, licenses, certificates, and similar documents which cover 25
activities within their area of responsibility, and the inspection of all buildings 26
pursuant to this chapt er and the Uniform State Building Code. Each local 27
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government issuing a building or demolition permit or an initial certificate of 1
occupancy on a new structure shall send a copy of the permit or certificate to 2
the commissioner for his or her use in maintai ning an accurate housing 3
inventory for Kentucky. 4
(c) Notwithstanding the provisions of paragraph (a) of this subsection or the 5
provisions of KRS 162.060, local governments may have jurisdiction for plan 6
review, inspection, and enforcement responsibility over buildings intended for 7
educational purposes, other than licensed day -care centers, but only when 8
agreed to in writing by the local government and the department. Copies of 9
documentation related to plan review, inspection, and enforcement shall be 10
provided to the Kentucky Department of Education at the tim e they are issued 11
to the district. Any agreements relating to expanded jurisdiction in effect on 12
July 14, 2022, may be amended accordingly. 13
(3) Urban-county governments may determine service districts within their boundaries 14
within which farm dwellings and other farm buildings, not used in the business of 15
retail trade or as a place of regular employment for ten (10) or more people, shall be 16
exempt from the requirements of the Uniform State Building Code. The 17
determination may be reviewed and altered by the department. 18
(4) (a) With the exception of single -family dwellings, the department shall be 19
responsible for the examination and approval or disapproval of plans and 20
specifications for all buildings which are not the responsibility of local 21
governments. The department may issue and revoke permits, licenses, 22
certificates, and similar documents within its area of responsibility, and shall 23
have concurrent jurisdiction with local governments for the inspection of all 24
buildings pursuant to this chapter and the Uniform State Building Code. 25
(b) If the commissioner determines that the local jurisdiction is not adequately 26
performing any portion of its program, the department may preempt that 27
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portion of a local program, except that the department shall not preempt or 1
assert jurisdiction for the enforcement of the code on single -family dwellings. 2
The commissioner shall explain his or her reasons for preemption in writing 3
and provide a copy to the local jurisdiction. 4
(c) The local jurisdiction may appeal the preemption dir ectly to the 5
commissioner, and the department shall review the appeal according to the 6
procedures found in[ subsections (8) to (10) of] KRS 198B.070(8) to (10). No 7
preemption by the commissioner shall take place until a final decision has 8
been issued in an appeal under this subsection. 9
(d) If the department preempts any portion of a local program, it shall collect the 10
fees applicable to that portion of the program. 11
(5) (a) Any local government may petition the commissioner requesting that 12
additional plan re view functions be allocated to that local government. The 13
petition shall include evidence of the local government's capability to perform 14
additional plan review functions. 15
(b) The commissioner, after review of the petition and supporting evidence, may 16
grant or deny to the local government any part of a request for additional 17
responsibility. If the commissioner denies any part of a petition, he or she 18
shall explain his or her reasons for denial in writing, and provide a copy to the 19
local government. 20
(c) A local government may appeal the denial directly to the commissioner, and 21
the department shall review the appeal according to the procedures found in [ 22
subsections (8) to (10) of] KRS 198B.070(8) to (10). 23
(d) If the local government is granted additional respo nsibility by the 24
commissioner, the department shall hold concurrent jurisdiction over the 25
additional responsibility, but the local government shall collect any fees for 26
functions it performs pursuant to the additional responsibility. 27
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(6) Any local government may also petition the commissioner requesting that plans and 1
specifications inspection, building inspection, and approval responsibility relating 2
to the application of local plumbing permits for local installations be allocated to 3
the local government. The petition shall not be granted unless the local government 4
has demonstrated to the commissioner that it can perform these functions in 5
accordance with KRS 198B.050 to 198B.090. 6
(7) The commissioner shall expedite the review of plans and specifications b y 7
assigning responsibilities and coordinating review activities among the department's 8
various functional divisions so as to prevent unnecessary duplication in the review 9
of plans and specifications. 10
(8) A[No] building shall not be constructed in this stat e until a local building official 11
and an official representing the department, if the department has jurisdiction, issue 12
a permit for the construction. [Nothing in ] This subsection shall not require a 13
single-family dwelling to be permitted or inspected unl ess a local government has 14
established a building inspection program as set out in this section. 15
(9) The local building official or the representative of the department shall issue a 16
permit if the proposed building satisfies the requirements of the Uniform State 17
Building Code and if the party desiring to construct the building has complied with 18
all other legal requirements concerning the location and construction of the 19
building. The applicant for a building permit, by the act of applying for the permit, 20
shall be deemed to have consented to inspection by the local government or the 21
department, of the building during construction and upon the completion of 22
construction for the purpose of determining that the building is constructed in 23
compliance with the Uniform State Building Code. 24
(10) (a) A[No] permit for building, construction, reconstruction, renovation, 25
demolition, or maintenance or for any activity related to building, 26
construction, reconstruction, renovation, demolition, or maintenance shall not 27
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be iss ued by any building department or by any political subdivision of the 1
Commonwealth of Kentucky to any person seeking the permit unless the 2
person shall assure, by affidavit, that all contractors and subcontractors 3
employed, or that will be employed, on activity covered by the permit shall be 4
in compliance with Kentucky requirements for workers' compensation 5
insurance according to KRS Chapter 342 and unemployment insurance 6
according to KRS Chapter 341. 7
(b) Any person who fails to comply with the assurances r equired under paragraph 8
(a) of this subsection upon such finding by a court of competent jurisdiction, 9
shall be fined an amount not to exceed four thousand dollars ($4,000) or an 10
amount equal to the sum of all uninsured and unsatisfied claims brought under 11
the provisions of KRS Chapter 342 and unemployment insurance claims for 12
which no wages were reported as required by KRS Chapter 341, whichever is 13
greater. 14
(c) The penalty imposed in paragraph (b) of this subsection shall be enforced by 15
the county attorney for the county in which the violation occurred. 16
(11) A certified electrical inspector shall be employed by, or contracted for, or 17
contracted with a local government having responsibility over buildings described 18
in this section as part of its building ins pection program. After a certified electrical 19
inspector has been provided for by the local government or the department, no 20
utility shall initiate permanent electrical service to any new building, or any 21
building which has been moved, until a final certifi cate of approval has been issued 22
by a certified electrical inspector. Unless the department shall notify the utility in 23
writing as to which buildings are subject to department approval, it shall be 24
presumed by the utility that the building is subject to th e jurisdiction of the local 25
government. However, nothing in this section shall prohibit the supply or use of 26
necessary electrical services during the construction and testing process. 27
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(12) This section shall apply to industrialized building systems, but de structive 1
disassembly of industrialized building systems which carry a seal of approval 2
pursuant to a manufactured building law in the state in which they were 3
manufactured, which seal of approval is accepted by the department, shall not be 4
performed in order to conduct the tests or inspections. 5
(13) A[No] building on which construction was begun nor any industrialized building 6
system on which site preparation and assembly were begun after the Uniform State 7
Building Code became effective shall not be occupi ed until the local building 8
official or a representative of the department issues a certificate of occupancy 9
certifying that the building was constructed in conformance with the standards of 10
the Uniform State Building Code, or assembled or installed in con formance with 11
applicable instructions. [Nothing in ] This subsection shall not be construed to 12
require a certificate of occupancy to be issued for any single -family dwelling unless 13
a local government has established jurisdiction for the enforcement of the U niform 14
State Building Code under this section. 15
(14) A local government may associate with other local governments, and may seek the 16
technical assistance of other agencies or area development districts in order to 17
provide for the local enforcement of the Uniform State Building Code. 18
(15) Local governments or associations of local governments may contract with a 19
person, firm, or company to perform the plans and specifications inspection or 20
building inspection functions required of the local government by the provisions of 21
this section if: 22
(a) The person performing the plans and specifications inspection is certified by 23
the department as having successfully completed the test requirements 24
provided by KRS 198B.090 to practice as a certified plans and specificati ons 25
inspector; 26
(b) The person performing the building inspection is certified by the department 27
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as having successfully completed the test requirements provided in KRS 1
198B.090 to practice as a certified building inspector; 2
(c) The person, firm, or company does not have a conflict of interest between its 3
plan review or inspection functions and any other employment or business 4
activities; 5
(d) The person performing the plumbing inspection is certified by the department 6
as having successfully completed the requ irements provided in KRS 318.140 7
to practice as a certified plumbing inspector; and 8
(e) The person, firm, or company does not have a conflict of interest between its 9
plan review or inspection functions and any other employment or business 10
activities. 11
(16) If the department has reason to believe that an inspector is not enforcing, or is 12
improperly enforcing, the provisions of the Kentucky building codes, it shall 13
conduct an informal hearing to review the inspector's procedures and return in 14
written form the required corrections resulting from the hearing to the inspector, or 15
may take action to suspend or revoke the inspector's certificate. 16
(17) If the inspector fails to comply within sixty (60) days of a written notification from 17
the department that specifies the required corrections, the department shall suspend 18
the inspector's certification until the inspector complies. Any action to suspend or 19
revoke an inspector's certificate may be appealed to the department, and upon 20
appeal an administrative hearing shall be conducted in accordance with KRS 21
Chapter 13B. 22
(18) Each local government and the department may establish a schedule of fees for the 23
functions performed under this chapter. The fees shall be designed to fully cover [,] 24
but [shall ] not exceed [,] the cost of the service performed. Fees payable to the 25
department shall be paid into the State Treasury and credited to a trust and agency 26
fund to be used by the department in carrying out this chapter. No part of this fund 27
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shall revert to the general fund of the Commonwealth. 1
(19) Notwithstanding any provision of law to the contrary, a person seeking any plan 2
review or inspection in accordance with this section may have that plan review or 3
inspection performed by a licensed third -party inspector pursuant to Section 1 of 4
this Act. 5