A1801

An Act authorizing design professionals to self-certify construction plans and supplementing Title 52 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. This act shall be known and may be cited as the “New Jersey Design Professional Self-Certification Act.”

2. As used in this act, unless the context clearly indicates otherwise:

"Architect" means a person who is licensed by the New Jersey State Board of Architects to practice architecture in the State of New Jersey.

“Commissioner” means the Commissioner of Community Affairs.

"Department" means the Department of Community Affairs.

“Design professional” means an architect or a professional engineer.

“Enforcing agency” means “enforcing agency” as defined in section 3 of P.L.1975, c.217 (C.52:27D-121) and the commissioner, in those municipalities in which the commissioner has assumed the task of administering and enforcing the code pursuant to section 10 of P.L.1975, c.217 (C.52:27D-128).

“Prepared by” means personally prepared by the qualified design professional submitting the project.

“Prepared under the direct supervision of” means prepared under the personal supervision and control of a qualified design professional.

"Professional engineer" means a person who is licensed by the State Board of Professional Engineers and Land Surveyors to practice engineering in the State of New Jersey.

“Project” means the work identified in a building permit application and accompanying plans.

“Qualified design professional” means a design professional who has been qualified by the department to self-certify an application for a construction permit and accompanying plans and construction documents.

“Qualified Design Professional of record” means the qualified design professional who prepared or supervised the preparation of applicable construction documents filed with the department.

“Reviewed by” or “Reviewed and sealed by” means that the sealed plans were reviewed by the qualified design professional for code compliance, or that the plans were drawn by others and were reviewed for code compliance and sealed by the qualified design professional.

“Self-certification” or “Self-certified” means the submission to the department of a signed, personal verification that: (a) is made by the qualified design professional identified in an application for a construction permit; and (b) accompanies plans filed with the department by the qualified design professional; and (c) attests that the plans do not contain any false information; and (d) attests that the plans are in compliance with the requirements of the State Uniform Construction Code and all applicable provisions of law; and (e) attests that the plans were prepared by, prepared under the direct supervision of, or were reviewed and sealed by the qualified design professional identified in the permit application.

“Self-certification program” means the program established pursuant to this act authorizing the acceptance of construction documents submitted and self certified by a qualified design professional.

3. a. The Commissioner of Community Affairs shall establish a self-certification program through which a qualified design professional may:

(1) take responsibility for the construction code compliance of certain projects, and

(2) self-certify that the construction permit application and accompanying documents comply with the State Uniform Construction Code and the requirements of other applicable laws.

b. The department shall accept a permit application and accompanying documents that are self-certified by a qualified design professional and, after a supervisory check, issue a permit within one to five calendar days, depending on the scope of the project. The acceptance of construction documents in accordance with the self-certification program shall have the same force and effect as the approval of construction documents after full examination by an enforcing agency. Except as otherwise specified in the code or in the rules of the department, references to an approved application for a construction permit, plans and specifications or to the approval of such construction documents also shall be deemed to refer to accepted construction documents or to the acceptance of construction documents, as applicable.

c. The commissioner shall establish requirements for design professionals to qualify to participate in the self-certification program, which shall include, but not be limited to, the successful completion of a course of instruction about: the self-certification permit process, examination of plans for compliance with the State Uniform Construction Code and other applicable laws, and the administrative aspects of permit processing, for which a qualified design professional is responsible when self-certifying plans.

d. The commissioner, after consultation with the code advisory board, may, for certain classes or types of occupancy posing special or unusual hazards to public safety, establish regulations prohibiting qualified design professionals from exercising the powers authorized pursuant to subsection a. of this section. The department shall not accept a self-certified permit application or issue a permit pursuant to subsection b. of this section for any such class or type of occupancy.

e. The self-certification program shall include a condition that the qualified design professional of record remain with the project until it is signed-off by the department and that if the qualified design professional of record withdraws from the project before the issuance of a letter of completion or certificate of occupancy, as applicable, all work shall stop and no permit, letter of completion, or certificate of occupancy shall be issued until:

(1) a successor qualified design professional is designated as the qualified design professional of record and satisfies the submittal requirements set forth in this section and:

(2) (a) the successor qualified design professional submits a professional certification indicating the qualified design professional’s concurrence with the construction documents accepted by the department, or

(b) new construction documents are approved or accepted by the department.

4. a. For each project, the qualified design professional of record shall furnish to the department a certificate of professional liability insurance, issued by an insurer authorized to insure in New Jersey, with limits of no less than $500,000 per claim and $1,000,000 in the aggregate for all claims made during the policy period.

b. For each project, the qualified design professional of record shall furnish to the department a “Professional of Record Self-Certification Statement” in which the qualified design professional shall certify to the department and to the person hiring or otherwise retaining the qualified design professional for the project that:

(1) the qualified design professional has been a licensed architect or professional engineer for at least three years and is licensed and certified in the State of New Jersey; and

(2) within the preceding five-year period, the qualified design professional has not been convicted or found liable of:

(a) knowingly making a false statement of material fact on or in connection with any building permit application, or

(b) knowingly submitting in support of a building permit application any document containing false or fraudulent information, or

application; and

(3) the attached application and every page of the accompanying plans stamped by the qualified design professional:

(a) were prepared by, under the direct supervision of, or reviewed by the qualified design professional;

(b) are complete; and

(c) are, as of the date of submission, in accordance with the requirements of the State Uniform Construction Code and all other applicable laws; and

(4) the attached application and all technical submissions made by the qualified design professional in connection with the self-certified project were prepared in accordance with and meet the “standard of care” required of the profession; and

(5) all information and assertions made by the qualified design professional in the permit application and documents submitted in support of such permit application are true and correct; and

(6) if the qualified design professional becomes aware of any false or inaccurate statement in the permit application, accompanying plans, or any document submitted in support of such permit application, regardless of whether such false or inaccurate statement was made by the qualified design professional or by his agent or employee, the qualified design professional will immediately take all measures necessary to correct such false or inaccurate statement; and

(7) the qualified design professional understands that the department will rely upon the truth and accuracy of the certifications contained in the “Professional of Record Self-Certification Statement” as the basis for issuing a permit under the self-certification program; and

(8) the qualified design professional understands that the self-certified project identified in the building permit application is being approved for a building permit subject to audit or field inspection by the department and the permit is subject to revocation by the department if necessary or appropriate to protect the public health, safety, or welfare; and

(9) if the department determines that the submitted plans do not conform to the requirements of the State Uniform Construction Code or any other applicable law, the qualified design professional agrees to submit a plan revision to the department in a timely manner and to take all remedial measures within such qualified design professional of record’s control to bring the submitted plans and any construction thereunder into conformity with the requirements of the code and any other applicable law; and

(10) the qualified design professional understands that the failure to submit a required plan revision to the department in a timely manner will result in suspension of the professional’s self-certification privileges under the self-certification program, until such time that the required plan revision is submitted to the department or the matter is otherwise resolved by the department; and

(11) the qualified design professional understands that failure to take all reasonably necessary remedial measures within their control to bring the submitted plans and any construction thereunder into compliance with the code or any other applicable law within a reasonable period of time shall result in revocation of the qualified design professional’s self-certification privileges under the self-certification program and may result in notification of such fact to the appropriate State professional licensing board; and

(12) the qualified design professional agrees to comply with any additional certification required pursuant to rule or regulation adopted by the commissioner.

5. For each project, the qualified design professional of record shall submit to the department, on a form prepared by the department, an “Owner Certification Statement,” which shall be signed and dated by the owner responsible for the work identified in the permit application, in which the owner shall certify that the owner:

a. authorized the work of all professionals and consultants named in the permit application and accompanying plans; and

b. agrees to take all measures necessary to correct any misrepresentation or falsification of facts made knowingly or negligently in the building permit application or in any document submitted in support of such application by the owner or by the owner’s agents, contractors, or employees; and

c. understands that the self-certified project is being approved for a building permit subject to audit or field inspection by the department; and

d. agrees to take all remedial measures necessary to bring the plans and all construction completed under the permit for the project into conformity with requirements of the State Uniform Construction Code and all other applicable laws; and

e. agrees to comply with any additional certification required pursuant to rule or regulation adopted by the commissioner.

6. For each project, the qualified design professional of record shall submit to the department, on a form provided by the department, an “Owner Hold Harmless Letter,” which shall be signed and dated by the owner, in which the owner shall agree to the following:

a. to protect, defend, indemnify, and hold harmless the municipality and the State of New Jersey, and their officers, representatives, managers, and employees, against any and all claims, liabilities, judgments, costs, expenses, delays, demands, or injuries arising out of or in any way connected with the design, construction, code compliance review, or issuance of a permit for the project identified in the permit application; and

b. if any component of construction is found to not conform to the requirements of the State Uniform Construction Code or any other applicable law or to any permit issued under the self-certification program, the owner shall, without undue delay, remove or modify, at the owner’s own expense, the nonconforming component or components of construction

7. The commissioner, in consultation with the code advisory board, the New Jersey State Board of Architects, and the State Board of Professional Engineers and Land Surveyors, shall design and cause to be offered a self-certification course of instruction for architects and engineers interested in becoming qualified design professionals. The self-certification course of instruction shall include information about the self-certification permit process, examination of plans for compliance with the State Uniform Construction Code and other applicable laws, and the administrative aspects of permit processing for which a qualified design professional is responsible when self-certifying plans. Upon a design professional’s successful completion of the course of instruction, the department shall issue a qualified design professional certificate and registration number, enabling the design professional to participate in the self-certification program. The department may authorize imposition of a fee to cover the cost of administering the self-certification course of instruction. A qualified design professional certificate shall expire three years from the date of issuance unless the design professional complies with conditions of certificate renewal, including but not limited to the completion of continuing education requirements, to be established by the department.

8. a. All self-certified projects are subject to random audit by the department to determine whether the plans and projects comply with the requirements of the State Uniform Construction Code and other applicable laws. The department shall design and implement audits to measure the efficiency of the self-certification program.

b. The department shall provide written notice of the results of an audit to the qualified design professional of record and the owner. The notification shall provide a summary of the audit results and direct the qualified design professional to address all code violations found in the audit by a specific date. The specified date shall be reasonable based upon the type of code violations and the nature of the corrections that need to be made. Failure to submit required corrections by the date specified in the notification may result in the revocation of the qualified design professional’s privileges.

c. A qualified design professional of an audited project may dispute the results of an audit or the accuracy or applicability of any code correction comment entered in connection with an audit. The qualified design professional may request a meeting with the department to review the matter or file an appeal to a court of competent jurisdiction.

9. a. The commissioner may exclude, suspend, or otherwise sanction a qualified design professional for cause. A qualified design professional shall not be eligible to participate in the self-certification program during any period of probation imposed as a sanction by the New Jersey State Board of Architects or the State Board of Professional Engineers and Land Surveyors.

b. The commissioner shall, after the opportunity for an administrative hearing, exclude, suspend, or otherwise condition the participation of a qualified design professional who:

(1) knowingly or negligently submits a self-certification of a permit application or construction document that contains false information or is not in compliance with all applicable provisions of law, or

(2) submits two self-certified applications for construction document approval within any 12-month period containing material errors that result in revocation of an associated permit or that otherwise demonstrate incompetence or a lack of knowledge of applicable laws.

c. A qualified design professional who is excluded from the program in accordance with this section may apply for reinstatement one year or more after such exclusion. An applicant who the commissioner finds is qualified to resume participation in the program shall be on probation for a period of not less than six months after reinstatement and during that time, as a condition of such reinstatement, shall attend one or more training or continuing education courses approved by the department and related to compliance with the construction code and related laws and rules. The design professional shall submit satisfactory proof of the successful completion of such training or continuing education courses to the department.

d. The commissioner shall revoke, for a period of not less than five years, the self-certification privileges of a qualified design professional who, while on probation, professionally certifies an application, plans, construction documents, or other document that contains materially false information or is not in material compliance with all applicable provisions of law, or who otherwise demonstrates gross incompetence or a total disregard of the applicable laws or standards.

e. Nothing herein shall be construed to limit the commissioner's power to adopt rules that include additional grounds to limit the self-certification privileges of, or otherwise sanction, a qualified design professional, after affording the professional an opportunity for a hearing, when the commissioner determines that the design professional knowingly or negligently submitted permit applications or other documents to the department that contain materially false information or are not in material compliance with all applicable provisions of law or that otherwise demonstrate incompetence or a total disregard of applicable law or standards.

f. The department shall create and maintain a searchable database on its Internet website of all qualified design professionals who have been excluded, suspended or otherwise sanctioned by the department. Within seven business days of the date a sanction is imposed, the department shall post on its website and shall make available upon request, the name of the qualified design professional, a description of the sanction, the initial date of the sanction, the reinstatement date, if applicable, the address of the premises for which the application associated with the sanction was submitted, and whether the sanction was imposed after a hearing or through a settlement. The department shall provide requested information concerning the exclusion, suspension, or other sanction of a specific qualified design professional within 30 days of such request.

g. The department shall provide written notice to the State Board of Professional Engineers and Land Surveyors of any professional engineer who was the subject of any disciplinary proceeding as a qualified design professional when there has been an adverse determination or sanction by the department, including any settlement agreement that is reached between the parties that resulted in a sanction of loss of privileges being imposed by the department. Such notice shall be sent within 10 business days after a determination is made in any such disciplinary proceeding or after a settlement of such proceeding has been reached, and shall include the name, and business firm name and address of such professional engineer, as well as any supporting documentation for the sanction imposed.

h. The department shall provide written notice to the New Jersey State Board of Architects of any registered architect who was the subject of any disciplinary proceeding as a qualified design professional when there has been an adverse determination or sanction by the department including any settlement agreement that is reached between the parties that resulted in a sanction of loss of privileges being imposed by the department. Such notice shall be sent within 10 business days after a determination is made in any such disciplinary proceeding or after a settlement of such proceeding has been reached, and shall include the name, and business firm name and address of such registered architect, as well as any supporting documentation for the sanction imposed.

i. The department shall not provide notice pursuant to subsections f., g., or h. of this section until a design professional’s rights to appeal are exhausted or have expired.

10. This act shall take effect on the first day of the fourth month next following enactment, however the commissioner may take such anticipatory administrative action in advance as may be necessary for the implementation of this act.

STATEMENT

This bill, titled the “New Jersey Design Professional Self-Certification Act,” would establish a program through which architects and engineers, who become certified as “qualified design professionals,” could:

(1) take responsibility for the construction code compliance of certain construction projects, and

(2) “self-certify” that the construction permit application and accompanying documents comply with the State Uniform Construction Code and the requirements of other applicable laws.

Property owners would have the option of hiring a qualified design professional in order to take advantage of this self-certification program, or submitting their applications for building permits through the current approval process. Current law requires a local enforcing agency to grant, in whole or in part, or deny an application for a construction permit within 20 business days. Under the bill, the Department of Community Affairs would accept a permit application and accompanying documents that are self-certified by a qualified design professional and, after a supervisory check, issue a permit within one to five calendar days, depending on the scope of the project.

The bill directs the Commissioner of Community Affairs to establish requirements for design professionals to qualify to participate in the self-certification program, which would include successful completion of a course of instruction. The bill authorizes the commissioner to exclude certain classes or types of occupancy posing special or unusual hazards to public safety from the self-certification program.

The bill provides that for each project, the qualified design professional of record must furnish to the department a certificate of professional liability insurance with limits of no less than $500,000 per claim and $1,000,000 in the aggregate, and a “Professional of Record Self-Certification Statement.”

For each project, the qualified design professional of record must submit to the department an “Owner Certification Statement” and an “Owner Hold Harmless Letter,” both of which must be signed and dated by the owner. The “Owner Certification Statement” certifies that the owner

· authorized the work identified in the permit application and accompanying plans,

· will take all measures necessary to correct any false facts stated in the permit application,

· understands that the project is being approved for a building permit subject to audit or field inspection by the department, and

· if necessary, will bring the plans and all construction completed under the permit into conformity with requirements of the construction code and other applicable laws.

In the “Owner Hold Harmless Letter,” the owner agrees to:

· protect, defend, indemnify and hold harmless the municipality and the State of New Jersey against claims connected with the self-certified project, and

· remove or modify, at the owner’s own expense, any component of construction found to not conform to the construction code or any other applicable law or to any permit issued under the self-certification program.

Self-certified projects would be subject to random audit by the department to determine whether the plans and projects comply with the requirements of the State Uniform Construction Code and other applicable laws. The bill directs the department to design and implement audits to measure the efficiency of the self-certification program. The bill empowers the commissioner to exclude, suspend or otherwise sanction a qualified design professional for cause.