NH subcommittee advances changes to bill allowing third‑party permitting and inspections

A House Committee on Housing subcommittee advanced proposed amendments to Senate Bill 188 on third‑party permitting and inspections on a voice vote, with members saying the changes aim to integrate the bill’s provisions into the New Hampshire state building code and clarify oversight, fees and timelines.

The changes presented to the subcommittee would direct the Building Code Review Board to amend the state building code to allow owners or owners’ agents to use “approved agencies” — described as ICC‑certified building officials, licensed architects or engineers — to perform construction‑document review and required inspections. Michael Hagan, vice president of the New Hampshire Building Officials Association, told the committee the amendments are intended to “preserve the original intent of the Senate bill, while also enhancing clarity and ensuring consistency” with existing state statutes.

The proposed amendments formalize several points the subcommittee discussed: 1) a building official may deny a proposed third‑party agency but must provide written reasons; 2) municipalities may audit approved agencies and, on clear and convincing evidence of negligence, suspend an agency’s ability to work in that municipality for up to one year; 3) the bill would require a certificate of insurance from approved agencies and 14 days’ notice before any cancellation or material change; 4) the Building Code Review Board would adjudicate appeals other than negligence findings.

The amendments also set out operational details. Under the draft language discussed, permit fees would be reduced when owners use approved agencies: a 40% reduction for plan review, a 40% reduction for inspections, and a combined 80% reduction if both functions are performed by an approved agency (the remaining 20% would be retained by the municipality to cover administrative duties such as auditing and permit processing). On timing, the committee discussed and agreed on calendar‑day deadlines for permit issuance and certificates of occupancy (committee members favored 10–14 calendar days rather than variable “business day” definitions tied to each municipal office schedule).

Builders and contractors who testified expressed support if the bill is implemented through the building code and administrative details are worked out. Matt Mayberry, CEO of the New Hampshire Home Builders Association, said he supported “the intent” and urged keeping a “for cause” standard for denying a licensed professional. Alex Koutroubas of the Associated General Contractors of New Hampshire said his organization supported the legislation “as it came over from the Senate” and welcomed the compromise between industry and local government representatives.

Several municipal and code officials supported the amendments as a workable compromise but warned of significant variation across New Hampshire municipalities. Tim Metivier, president of the New Hampshire Seacoast Code Officials Association and building official in Portsmouth, said some municipalities already rely on third‑party testing and inspections for specialized work (concrete, welding, compaction) and that the amended bill would accommodate municipalities that use those services while providing a framework for others to adopt.

A central unresolved issue flagged repeatedly was indemnification and professional liability for private engineers and architects acting as approved agencies. Structural engineers and some contractors told the committee they cannot accept language that would require engineers or architects to certify that construction “is compliant with building codes” without exposing them to potentially unlimited liability and defense obligations. One speaker said that holding private engineers to a higher standard than government employees would likely reduce the pool of third‑party providers and could undercut the bill’s purpose. The subcommittee asked interested parties to propose alternative indemnification or insurance language and agreed to take that feedback when the changes come before the full committee.

The subcommittee also agreed to a set of editorial and procedural refinements proposed by the New Hampshire Building Officials Association and the Building Code Review Board chair, including consolidating the implementation language into the state building code (the draft referenced the 2018–2021 editions of several International Code Council model codes and the 2020 National Electrical Code) and to request specific suggested wording on how the provision should carry across multiple model codes.

At the end of the session the subcommittee voted to adopt the presented amendments with the understanding that staff and interested parties would return with drafted language on indemnification and final code cross‑references for consideration at the full committee. The motion to adopt the amendments was made, seconded and approved by voice vote. The meeting adjourned without a recorded roll‑call tally.

The bill, as drafted in the subcommittee changes, would take effect upon passage and would require the Building Code Review Board to prepare the code amendments the board would then submit and that the legislature would review under the usual code amendment process.