An interim House committee on Wednesday considered
a multitude of proposals that may affect building inspections, including potentially problematic concepts regarding local financial accounting practices. While the committee did not present actual statutory language, it reviewed
suggestions submitted by the N.C. Department of Insurance (DOI), the N.C. Home Builders Association (NCHBA), and committee chair
Rep. Mark Brody, who is a general contractor and home builder. In public comments on the proposals that would affect local finance practices, NCLM Legislative Counsel Erin Wynia told legislators that while the League was seeing these ideas for the first time at the committee meeting, the proposals could conflict with basic accounting standards to which local governments must already adhere. Her public comments added to those of the N.C. Association of County Commissioners, which expressed similar concerns. Both local government organizations suggested that, as part of examining these ideas further, committee members consult with the local government finance experts at the Local Government Commission, who were not present at the committee meeting.
The group of suggested changes to local government finance practices states:
-Increase annual accounting reports to include all departmental receipts, disbursements, and fund transfers and educational awareness of statutory requirements.
-Require fees generated by inspection departments to be placed in a fund separate from the general fund.
-Specify the activities for which inspection fees may be charged and further clarify the limitation on local governmental use of those inspection fees.
-Allow fees to be waived for economic development purposes and disaster relief efforts but require reimbursement from the jurisdiction’s general fund for the inspection related costs associated with the project.
The League encourages your feedback on these items; please
contact Erin Wynia with your thoughts and concerns. At the same meeting, the committee also considered other proposals related to local building inspections operations, including a funding request by DOI for additional technical assistance positions in that department. The NCHBA suggestions focused on tweaks to existing statutory language, one of which appeared to raise concerns from DOI. In that case, the NCHBA proposed to expand the scope of inspections that an engineer or architect is allowed to perform. The League will continue to seek feedback on these proposals and provide input to the committee as it considers recommended changes to state law. The committee will submit its recommendations to the N.C. General Assembly in the form of a bill introduced in the upcoming legislative short session, which begins May 16. Contact:
Erin Wynia