House backs limits on municipal plan-check fees, setting 'lesser of' standard

The House voted to pass First Substitute Senate Bill 110 on March 2, approving a measure that sets a cap on municipal plan-check fees and addresses repeated fees for identical plans. Sponsor Representative Wei described the bill as a negotiated settlement with cities and towns to curb apparent abuses in plan-review charging practice.

Representative Wei told colleagues: “We tried to do a self governing way of checking this on this bill,” and said the bill allows a municipality to charge the lesser of the actual cost of performing the plan review or 65% of the building permit fee. Supporters pointed to specific examples they described as abuses where plan-check fees bore little relationship to review costs; Representative Boren related one example of a $6,800 plan-check charge for a set of engineered plans completed within hours.

Opponents warned the bill intruded on local fiscal authority. Representative Bush said: “We're trying to tell the cities and towns what they can do with their plan checking… We're trying to tell them how much they can charge them for things,” and cautioned that restricting fees could push cities to raise other charges to make up revenue.

Sponsor Wei and others argued the bill balances state oversight and local differences by preserving the 65% statutory cap as a protective ceiling while requiring charges reflect actual cost. After debate the House approved the bill by roll call, 44 yes to 25 no.

The bill’s substantive changes: (1) require plan-check fees not to exceed the lesser of documented actual cost or 65% of the building-permit fee, and (2) require a reduced fee for identical plans after the first review. Sponsors said the language was drafted with city input; opponents said it risked undermining municipal autonomy to set local fees.