Committee sends inspection-modernization bill to general orders after debate over 15-day shot clock and refunds

Representative Josh Wheeler described House Bill 266 as a package to "modernize and streamline" building inspection processes statewide. The bill permits live virtual inspections only for reinspections, requires inspectors to confirm address and be live, limits virtual reinspections to structures three stories or lower and creates a 15-day shot clock after which a permit holder may obtain a qualified third-party inspection. "If the municipality or state is taking longer than 15 days to complete an inspection, then the citizen or the contractor can go to a third party inspector," Wheeler said.

Wheeler told the committee the bill also includes refund provisions. He clarified during questioning that a 100% refund applies when an inspection is not timely, while a separate 10% refund would apply when an inspector fails to notify a permit holder of reasons for a failed inspection within three days. "The section that starts on line 5 through line 7...is asking the inspectors to give timely notification on why an inspection failed," Wheeler said.

Committee members and industry witnesses expressed mixed views. Representative Thompson, who schedules inspections for a construction firm, asked who would carry liability for a third-party inspection. Wheeler said third-party inspectors "would have no more or less liability than our current building officials have." Representative Harris and others objected that the bill could leave permit holders out of pocket: if a municipality charged $75 for an inspection but a third-party cost $125, the permit holder would be refunded only the municipal portion, not the higher market rate. "If I'm forced because the city and the state can't fulfill their obligation to inspect timely on a job, I should be reimbursed for that encumbrance," Representative Harris said.

Kelly Packer of the Association of Idaho Cities supported the bill with the guardrails included, saying most municipalities already meet the 15-day target and the refund formula is intended to protect taxpayer funds. Brett Stoddard, a building official from Rexburg, said many cities turn inspections around in a day or two but acknowledged rural jurisdictions with staffing shortages can fall behind.

The committee debated whether 15 days is too long; several members urged a shorter timeline. Representative Palmer offered a substitute motion to send the bill to general orders for amendment so the committee could consider changing the shot clock. The substitute motion passed. The bill now goes to general orders for possible amendments.