This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives. STORAGE NAME: h0267b.LFS DATE: 2/1/2024 HOUSE OF REPRESENTATIVES STAFF ANALYSIS BILL #: CS/CS/HB 267 Building Regulations SPONSOR(S): Local Administration, Federal Affairs & Special Districts Subcommittee, Regulatory Reform & Economic Development Subcommittee, Esposito TIED BILLS: IDEN./SIM. BILLS: SB 684 REFERENCE ACTION ANALYST STAFF DIRECTOR or BUDGET/POLICY CHIEF 1) Regulatory Reform & Economic Development Subcommittee 9 Y, 6 N, As CS Wright Anstead 2) Local Administration, Federal Affairs & Special Districts Subcommittee 10 Y, 4 N, As CS Mwakyanjala Darden 3) Commerce Committee SUMMARY ANALYSIS The Florida Building Code (Building Code) must be applied and enforced uniformly and consistently across the state. Local governments are required to enforce the Building Code and are responsible for issuing building permits. Current law provides standards and timeframes for local governments to follow for the issuance of building permits. The bill: Requires the Florida Building Commission to provide an exception in the Building Code relating to sealed drawings by a design professional for replacement windows, doors, and garages. Requires a local government to: o Determine if a building permit application is complete within 5 business days of receiving the application, previously set at 10 days. o Determine if a building permit application is sufficient within 10 business days of receiving a completed application, previously set at 45 days. o Approve, approve with conditions, or deny a complete and sufficient permit application within the following timeframes: 30 business days for applicants using local government review, previously set at 120 days; 15 business days for applicants using a private provider, previously set at 120 days; and 10 business days for applicants for a permit under an already-approved master plan permit, previously set at 120 days. 60 business days for applicants for a multifamily project; previously set at 120 days. o Review an completed application for sufficiency within 10 business days. o Provide an opportunity for a virtual meeting, instead of just an in-person meeting, before a second request for additional information may be made. Provides that a local government can request additional information from an applicant two times, unless the applicant agrees otherwise, previously set at three times. Provides an exception to the fee reduction provision when a delay is caused by the applicant or by a force majeure or other extraordinary circumstance. The bill may have an indeterminate fiscal impact on state and local government. The bill provides an effective date of January 1, 2025. STORAGE NAME: h0267b.LFS PAGE: 2 DATE: 2/1/2024 FULL ANALYSIS I. SUBSTANTIVE ANALYSIS A. EFFECT OF PROPOSED CHANGES: Current Situation – Building Permits The Florida Building Code In 1974, Florida adopted legislation requiring all local governments to adopt and enforce a minimum building code that would ensure that Florida’s minimum standards were met. Local governments could choose from four separate model codes. The state’s role was limited to adopting all or relevant parts of new editions of the four model codes. Local governments could amend and enforce their local codes, as they desired. 1 In 1992, Hurricane Andrew demonstrated that Florida’s system of local codes did not work. Hurricane Andrew easily destroyed those structures that were allegedly built according to the strongest code. The Governor eventually appointed a study commission to review the system of local codes and make recommendations for modernizing the system. The 1998 Legislature adopted the study’s commission recommendations for a single state building code and enhanced the oversight role of the state over local code enforcement. The 2000 Legislature authorized implementation of the Florida Building Code (Building Code), and that first edition replaced all local codes on March 1, 2002. 2 The current edition of the Building Code is the eighth edition, which is referred to as the 2023 Florida Building Code. 3 Chapter 553, part IV, F.S., is known as the “Florida Building Codes Act” (Act). The purpose and intent of the Act is to provide a mechanism for the uniform adoption, updating, interpretation, and enforcement of a single, unified state building code. The Building Code must be applied, administered, and enforced uniformly and consistently from jurisdiction to jurisdiction. 4 The Florida Building Commission (Commission) was created to implement the Building Code. The Commission, which is housed within the Department of Business and Professional Regulation (DBPR), is a 19-member technical body made up of design professionals, contractors, and government experts in various disciplines covered by the Building Code. The Commission reviews several International Codes published by the International Code Council, 5 the National Electric Code, and other nationally adopted model codes to determine if the Building Code needs to be updated and adopts an updated Building Code every three years. 6 Use of Building Code Enforcement Fees A local government may charge reasonable fees as set forth in a schedule of fees adopted by the enforcing agency for the issuance of a building permit. 7 Such fees shall be used solely for carrying out the local government’s responsibilities in enforcing the Building Code. 8 Enforcing the Building Code includes the direct costs and reasonable indirect costs associated with training, review of building 1 The Florida Building Commission Report to the 2006 Legislature, Florida Department of Community Affairs, p. 4, http://www.floridabuilding.org/fbc/publications/2006_Legislature_Rpt_rev2.pdf (last visited Jan. 28, 2024). 2 Id. 3 Florida Building Commission Homepage, https://floridabuilding.org/c/default.aspx (last visited Jan. 28, 2024). 4 See s. 553.72(1), F.S. 5 The International Code Council (ICC) is an association that develops model codes and standards used in the design, building, and compliance process to “construct safe, sustainable, affordable and resilient structures.” International Code Council, About the ICC, https://www.iccsafe.org/about/who-we-are/ (last visited Jan. 28, 2024). 6 S. 553.73(7)(a), F.S. 7 S. 553.80 F.S. 8 Id. STORAGE NAME: h0267b.LFS PAGE: 3 DATE: 2/1/2024 plans, building inspections, re-inspections, building permit processing, and fire inspections. 9 Local governments must post all building permit and inspection fee schedules on their website. 10 Local governments are only allowed to collect building permit fees that are sufficient to cover their costs in enforcing the Building Code. When providing a schedule of reasonable fees, the total estimated annual revenue derived from fees, and the fines and investment earnings related to the fees, may not exceed the total estimated annual costs of allowable activities. Any unexpended balances must be carried forward to future years for allowable activities or must be refunded at the discretion of the local government. A local government may not carry forward an amount exceeding the average of its operating budget, not including reserve amounts, for enforcing the Building Code for the previous 4 fiscal years. 11 DBPR Surcharges Current law requires all local governments to assess and collect a 1% surcharge on any building permit issued by their enforcement agency for the purpose of enforcing the Building Code. The local jurisdictions collect the assessment and remit the surcharge fees to DBPR to fund the activities of the Commission, DBPR’s Building Code Compliance and Mitigation Program, and the Florida Fire Prevention Code informal interpretations. 12 Current law also requires all local governments to assess and collect a separate 1.5% surcharge on any building permit issued by their enforcement agency for the purpose of enforcing the Building Code. The local governments collect the assessment and remit the surcharge fees to DBPR, where it is divided equally to fund the activities of the Building Code Administrators and Inspectors Board (BCAIB) and the Florida Homeowners’ Construction Recovery Fund. 13 Local government building departments are permitted to retain 10% of the amount of the surcharges they collect to fund participation by their agencies in the national and state building code adoption processes and to provide education related to enforcement of the Building Code. 14 Building Permit Delays Any delays in obtaining a building permit can delay the completion of a construction project. Delays in the completion of a construction project may: 15 Lead to increased costs for construction projects, which may be passed onto occupants of a completed project; Discourage construction, which can reduce the total supply of buildings in a community and may lead to higher rents in the community; Reduce property tax revenue to a local government and other taxing jurisdictions resulting from the delayed start and completion of a construction project; and Result in delayed occupancy of a project, including single-family residences and multi-family residences. 9 S. 553.80(7)(a)1., F.S. 10 Ss.125.56 (4)(c) F.S., and 166.222(2), F.S. 11 S. 553.80(7)(a), F.S. 12 S. 553.721, F.S. 13 S. 468.631, F.S.; The Florida Homeowners’ Construction Recovery Fund is used to compensate homeowners who have suffered a covered financial loss at the hands of state-licensed general, building and residential contractors. Claims are filed with the DBPR, who reviews for completeness and statutory eligibility. The DBPR then presents the claim to the Construction Industry Licensing Board for review. s. 489.1401(2), F.S. 14 Ss. 468.631, and 553.721, F.S. 15 City of Austin Development Services Department, A Program for Expedited Permitting, http://austintexas.gov/sites/default/files/files/8-9-2016_Report_on_Expedited_Permitting_Program.pdf (last visited Jan. 28, 2024); PricewaterhouseCoopers, The Economic Impact of Accelerating Permit Processes on Local Development and Government Revenues, (Dec. 7, 2005). STORAGE NAME: h0267b.LFS PAGE: 4 DATE: 2/1/2024 Streamlining the process to obtain a building permit can accelerate the completion of construction projects. The goal of streamlining is to remove overlap and duplication and create more efficient administrative procedures while not reducing a building department’s ability to enforce the applicable construction codes. Streamlining the building permit process may: 16 Increase local government revenues by accelerating completion of a project and thus accelerating property tax collection; Create local construction jobs and other indirect jobs supported by local construction jobs, such as jobs at a material supplier, which may increase local tax revenue; and Encourage economic development by having an efficient permit system. Building Permit Application Review Time-Period to Review Current law requires local governments to review certain building permit applications within a specific time-period of receiving the applications. Current law has established time-periods for local governments to review applications for the following building permits: 17 Accessory structure; Alarm permit; Nonresidential buildings less than 25,000 square feet; Electric; Irrigation permit; Landscaping; Mechanical; Plumbing; Residential units other than a single-family unit; Multifamily residential not exceeding 50 units; Roofing; Signs; Site-plan approvals and subdivision plats not requiring public hearings or public notice; and Lot grading and site alteration associated with the permit application. When a local government receives an application for one of the above building permits, it must: 18 Complete Application – Inform the applicant within 10 days of receiving the application, what information, if any, is needed to complete the application. o If the local government fails to provide written notice to the applicant within the 10-day window, the application is deemed to be properly completed. Sufficiency of Application – Notify the applicant within 45 days of the application being deemed complete, if additional information is necessary to determine the sufficiency of the application; o If additional information is needed the local government must specify what additional information is necessary. o The applicant may submit the additional information to the local government within 30 days or request that the local government act on the application without the additional information. Approve or Deny Application – Approve, approve with conditions, or deny the application within 120 days following receipt of the completed application. o This period is tolled during the time an applicant is responding to a request for additional information and may be extended by mutual consent of the parties. 16 Id.; Institute for Market Transformation, Streamlining Compliance Processes, (Winter 2012) https://www.imt.org/wp- content/uploads/2018/02/CaseStudy5.pdf (last visited Jan. 28, 2024). 17 S. 553.792(2), F.S. 18 S. 553.792(1), F.S. STORAGE NAME: h0267b.LFS PAGE: 5 DATE: 2/1/2024 These time-periods do not apply when a law, agency rule, or local ordinance specify different timeframes for review of local building permit applications, for permits for wireless communication facilities, or when both parties agree to an extension. 19 Additional Information Standards 20 A local government may only make three requests for additional information. However, an applicant may agree in writing to waive the limitation that local governments may only make three requests for additional information for such permits. If a local government makes a request for additional information from an applicant for one the above building permits, and the applicant provides the information within 30 days of receiving the request, the local government must 21 : First Request – Review the additional information and determine the application is complete, approve the application, approve the application with conditions, deny the application, or specify the remaining deficiencies within 15 days of receiving the information from the applicant, if the request is the local government’s first request. Second Request – Review the additional information and determine the application is complete, approve the application, approve the application with conditions, deny the application, or specify the remaining deficiencies within 10 days of receiving the information from the applicant, if the request is the local government’s second request. Third Request – Deem the application complete and approve the application, approve the application with conditions, or deny the application within 10 days of receiving the information from the applicant, if the request is the local government’s third request. Prior to making a third request for information the local government must offer to meet with the permit applicant to attempt to resolve outstanding issues. If the applicant believes the request for additional information is not authorized by ordinance, rule, statute, or other legal authority, the local government, at the applicant’s request, shall proceed to process the application for approval, approval with conditions, or denial. Fee Reductions for Failure to Meet Timeframes If a local government fails to meet these deadlines it must reduce the building permit fee by 10% for each business day that it fails to meet the deadline. However, these time limitations do not apply when a law, agency rule, or local ordinance specifies different timeframes for review of local building permit applications, for permits for wireless communication facilities, or when both parties agree to an extension. If any permit fees are refunded because a local government fails to meet an established deadline for reviewing a building permit application, the Department of Business and Professional Regulation (DBPR) surcharges for funding the Commission, the Florida Building Code Administrators and Inspectors Board (BCAIB), and the Florida Homeowners’ Recovery Fund must be recalculated based on the amount of the permit fees after the refund. 22 19 S. 553.792(1)(a), F.S. 20 S. 553.792(1)(b), F.S. 21 Id. 22 S. 553.79(16)(d), F.S. STORAGE NAME: h0267b.LFS PAGE: 6 DATE: 2/1/2024 Time-Period to Review Single-Family Residential Dwelling Building Permit Applications Single-family residential dwelling permits must be issued within: 30 business days of receiving the application, unless the application fails to satisfy the Building Code or the enforcing agency’s laws or ordinances, or unusual circumstances require a longer time-period for processing the application. 23 If the local enforcing agency does not issue a building permit for a single-family residential dwelling, within 30 business days after receiving the permit application, it must reduce the building permit fee by 10% for each business day that it fails to meet the deadline. Each 10% reduction is based on the original amount of the building permit fee. The enforcing agency does not have to reduce the building permit fee if it provides notice to the applicant, by e-mail or United States Postal Service, within 30 business days after receiving the permit application, that specifically states the reasons the permit application fails to satisfy the Building Code or the enforcing agency’s laws or ordinances. 24 After receiving the written notice, the applicant has 10 business days to correct the specifications written by the local enforcing agency and submit revisions to correct the permit application. If the applicant submits the revisions within 10 business days, the local enforcing agency has 10 business days after receiving such revisions to approve or deny the building permit unless the applicant agrees to a longer permit in writing. 25 If a government entity fails to approve or deny the single-family residential dwelling building permit within 10 business days of receiving the applicant’s revisions, it must: 26 Reduce the permit fee by 20% of the original permit fee for the first business day that it fails to meet the deadline; and An additional 10% of the original permit fee for each business day that it fails to meet the deadline, for up to five business days. A government entity does not have to reduce the fee for a single-family residential dwelling building permit, if: 27 It provides written notice to the applicant, by email or USPS mail within 30 business days of receiving the application; and The written notice specifically states how the application fails to satisfy the Building Code or the government entity’s laws or ordinances, and that the applicant has 10 business days after receiving the notice to remedy the deficiencies in their application or it will be denied. A building permit for a single-family residential dwelling applied for by a contractor licensed in this state on behalf of a property owner who participates in a Community Development Block Grant-Disaster Recovery program administered by the Department of Economic Opportunity must be issued within 15 business days after receipt of the application unless the permit application fails to satisfy the Building Code or the enforcing agency's laws or ordinances. 28 Effect of the Bill – Building Permits Building Code The bill requires the Commission to modify the Building Code to provide that sealed drawings by a design professional will not be required for the replacement of windows, doors, or garage doors in an existing building if the replacements are installed in accordance with the manufacturer’s instructions for 23 S. 553.79(16), F.S. 24 S. 553.79(16)(a)-(b), F.S. 25 S. 553.79(16)(c), F.S. 26 S. 553.79(16)(c), F.S. 27 S. 553.79(16)(b), F.S. 28 S. 553.79(16)(e), F.S. STORAGE NAME: h0267b.LFS PAGE: 7 DATE: 2/1/2024 the appropriate wind zone, meet the design pressure requirements of the Building Code, and a copy of the manufacturer’s instructions are submitted with the permit application in a printed or digital format. The bill provides that the definition of “windborne debris” is the same as defined in the Residential portion of the seventh edition of the Building Code until the adoption of the ninth Building Code. Building Permit Application Review The bill removes a provision in Ch. 533, the Building Code, which requires single-family residential dwelling permits to be issued within 30 days unless the application does not conform to the Building Code or local laws or ordinances. However, the bill incorporates the time period to review single-family residential dwellings into the general section related to building permit applications. 29 The bill reduces current timelines and revises procedures for applying for and obtaining a building permit. The new procedures set out below apply to the following building permit applications: Accessory structure; Alarm permit; Nonresidential buildings less than 25,000 square feet; Electric; Irrigation; Landscaping; Mechanical; Plumbing; Residential units including a single-family residential unit or a single-family residential dwelling; Multifamily residential not exceeding 50 units; Roofing; Signs; Site-plan approvals and subdivision plats not requiring public hearings or public notice; and Lot grading and site alteration associated with a permit application set forth above. Timelines to Approve or Deny a Completed and Sufficient Building Permit Application The bill reduces the time that a local government has to approve, approve with conditions, or deny a building permit application following receipt of a completed and sufficient application to the following timelines, unless the applicant waives such limitation in writing: For an applicant using local government plans review to obtain a building permit: o Within 30 business days after receiving a complete and sufficient application (currently 120 days, or 30 days for single-family residential dwellings). For an applicant using a private provider to obtain a building permit: o Within 15 business days after receiving a complete and sufficient application (currently 120 days, or 30 days for single-family residential dwellings). For an applicant for a master plan permit: o Within 10 business days after receiving a complete and sufficient application (current timeframe is dependent on the local program, or 30 days for single-family residential dwellings). For an applicant for a single-family residential dwelling applied for by a contractor licensed in this state on behalf of a property owner who participates in a Community Development Block Grant–Disaster Recovery program administered by the Department of Economic Opportunity: o Within 10 business days after receipt of the application, unless the permit application fails to satisfy the Building Code or the enforcing agency's laws or ordinances (currently 15 days). For an applicant for multifamily residential units: o Within 60 business days after receiving a complete and sufficient application. 29 See, s. 553.792, F.S. STORAGE NAME: h0267b.LFS PAGE: 8 DATE: 2/1/2024 If the local government does not approve, approve with conditions, or deny the completed and sufficient application within the required timeframes, the application is deemed or determined to be approved. The bill requires a local government to maintain a policy on its website containing procedures and expectations for processing of any building permits and development orders required by law to be expedited. Timelines to Determine a Complete and Sufficient Application The bill reduces the time that a local government has to provide timely written notice to the applicant about what information, if any, is needed before the application is deemed or determined to be: Completed: o Local government has 5 business days to review an application and determine if it has been properly completed (from 10 days). Sufficient: o Local government has 10 business days to review a completed application to determine whether more information is needed or whether the application is sufficient (from 45 days). The bill reduces the amount of times that a local government may request additional information from the applicant when reviewing an application for sufficiency for a building permit, to two times, from three times. If the local government requests additional information for a second time, such request must be within 10 business days of receiving additional information after the first request, and the local government must determine the sufficiency of the application within 10 business days of receiving the requested additional information. The bill allows a local government to offer to meet virtually, instead of only in person, with the applicant to attempt to resolve outstanding issues before a second request for additional information is made. If the applicant believes a request for additional information is not authorized by ordinance, rule, statute, or other legal authority, the bill requires the local government, at the applicant's written request, to approve the application, approve the application with conditions, or deny the application within 10 business days after receipt of such. The local government must provide the applicant with sufficient reason for a denial. The bill provides exceptions for local governments who fail to meet deadlines if: The parties involved agreed, in writing, to a reasonable extension of time. The delay is caused by the applicant. The delay is caused by a force majeure or other extraordinary circumstance. Use of Building Code Enforcement Fees The bill clarifies that local governments may use fees, and any related fines or investment earnings, they have collected for enforcing the Building Code to upgrade technology hardware and software systems used to enforce the Building Code. B. SECTION DIRECTORY: Section 1: Amends s. 553.73, F.S., relating to the Florida Building Code. Section 2: Amends s. 553.79, F.S., relating to single-family residential permits. Section 3: Amends s. 553.792, F.S., relating to building permit application processes. Section 4: Amends s. 440.103, F.S., conforming a cross-reference. Section 5: Amends s. 553.80, F.S.; relating to acceptable uses of local government Building Code enforcement fees. STORAGE NAME: h0267b.LFS PAGE: 9 DATE: 2/1/2024 Section 6: Provides an effective date. II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT A. FISCAL IMPACT ON STATE GOVERNMENT: 1. Revenues: For a similar bill in 2023, DBPR stated that surcharge collections pursuant to s. 553.791, F.S., and s. 468.631, F.S., could be impacted by the bill. 30 2. Expenditures: None. B. FISCAL IMPACT ON LOCAL GOVERNMENTS: 1. Revenues: For a similar bill in 2023, DBPR stated that this bill may reduce the amount of permit fees that could be collected by local governments in certain circumstances. 31 2. Expenditures: This bill may impact local governments because they may have to hire more employees to meet the prescribed timeframes. C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR: For a similar bill in 2023, DBPR stated that the bill may reduce the cost of permit fees paid by the private sector to local governments based on the local governments failure to meet time requirements. 32 On the other hand, the local jurisdiction may raise permit fees so that they can hire employees to meet the time requirements in the bill. The streamlined permitting processes in the bill may expedite development across the state. D. FISCAL COMMENTS: None. III. COMMENTS A. CONSTITUTIONAL ISSUES: 1. Applicability of Municipality/County Mandates Provision: Not applicable. This bill does not appear to require counties or municipalities to spend funds or take action requiring the expenditures of funds; reduce the authority that counties or municipalities have to raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or municipalities. 2. Other: 30 Department of Business & Professional Regulation, Agency Analysis of 2023 Senate Bill 682, p. 4 (February 14, 2023). 31 Id., at 5. 32 Id. STORAGE NAME: h0267b.LFS PAGE: 10 DATE: 2/1/2024 None. B. RULE-MAKING AUTHORITY: The bill would require the Florida Building Commission to amend the Building Code to reflect some of the bill’s changes to building permit application processing requirements. 33 C. DRAFTING ISSUES OR OTHER COMMENTS: None. IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES On December 12, 2024, the Regulatory Reform & Economic Development Subcommittee adopted an amendment and reported the bill favorably as a committee substitute. The committee substitute: Provides that vested rights in a preliminary plat are formed if an applicant commences developing the property based on an approval of such preliminary plat by a local government. Requires an applicant for a residential building permit pursuant to a preliminary plat to indemnify and hold harmless the local government from damages directly related to the issuance of such building permit before the approval of the final plat. Clarifies that timeframes in the updated permitting procedures are calculated using business days. Clarifies that if a local government fails to timely notify an applicant of what is needed to determine a sufficient application, such application will be automatically determined to be sufficient. Corrects a scrivener’s error. This analysis is drafted to the committee substitute as passed by the Regulatory Reform & Economic Development Subcommittee. On January 31, 2024, the Local Administration, Federal Affairs & Special Districts Subcommittee adopted a strike-all amendment and reported the bill favorably as a committee substitute. The amendment: Removes provisions of the bill relating to platting. Requires the Commission to provide an exception in the Building Code relating to sealed drawings by a design professional. Requires local governments to approve applications for multifamily projects within 60 business days. Requires local governments to review completed applications for sufficiency within 10 business days. Provides an exception for the fee reduction provision. Changes the effective date of the bill to January 1, 2025. This analysis is drafted to the committee substitute as passed by the Local Administration, Federal Affairs & Special Districts Subcommittee. 33 See rule impacted, r. 61G20-1.001, F.A.C.