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H 8019Workplace Safety

Health and Safety - State Building Code

Increases the cap on residential permit levies to $150 and redirects half the revenue to fund contractor training programs.

Held for study
Population
Affected
25
Introduced Feb 27, 2026Committee House Municipal Government & Housing

Plain-English Summary

This legislation amends the State Building Code to increase the maximum levy cap on residential building permits for one- to four-family dwellings from $100 to $150. Additionally, it restructures how the revenue from this levy is distributed. Previously, all funds supported the state's electronic permitting system. Under this bill, 50% of the levy collected from residential permits will now be transferred to the Department of Labor and Training. These transferred funds will finance a restricted receipt account dedicated to providing contractor training grants, specifically targeting minority business enterprises and local building officials.

For younger readers

When people build or fix a house, they must pay a fee to get a permit from the town. This bill raises the highest extra fee allowed on these permits from $100 to $150. Before, all this money was used to pay for the computer system that handles the permits. Now, half of the money from home permits will be sent to a special fund. This fund will pay for training classes for the people who build houses and the officials who inspect them, to make sure they know how to do their jobs safely.

Who & Where It Applies

Impacted groups
Residential HomeownersResidential ContractorsMinority Business EnterprisesLocal Building OfficialsDepartment of Labor and Training
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
Permit Applicants: Up to $50 increase per permit
Estimated revenue
Amount unknown

Bill Analysis

Both viewpoints
For Progressives
  • Explicitly directs funding to train Minority Business Enterprises (MBEs), promoting economic equity and diversifying the construction industry workforce.
  • Invests in the education of contractors and building officials, which enhances housing safety standards and protects the welfare of the community.
  • Utilizes a user-fee model on construction to fund workforce development, creating a self-sustaining educational program without drawing from general social service budgets.
  • Increases the cost of residential building permits, which could marginally increase housing costs and negatively impact affordable housing initiatives.
  • Diverts 50% of the funding away from the electronic permitting system, potentially slowing down efforts to make government services more transparent and accessible.
  • Subsidizes training for private businesses using government-collected fees, whereas some progressives might prefer these funds be used for direct public housing assistance.
For Conservatives
  • Enhances the competence of the construction workforce through training, potentially leading to higher quality private sector work and fewer disputes.
  • Supports local building officials with training, ensuring that the rule of law and building codes are enforced correctly and consistently.
  • Maintains a "pay-for-use" system where the specific industry (construction) pays for its own regulation and training, rather than burdening the general taxpayer.
  • Increases the maximum government fee on residential permits by 50%, representing an unnecessary cost hike on homeowners and developers.
  • Engages in social engineering by specifically targeting funds for "minority business enterprises," prioritizing identity politics over market-based merit.
  • Expands the bureaucracy by involving the Department of Labor and Training in managing a new grant program, rather than letting the free market handle workforce training.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 2 additions · 1 deletion

SECTION 1. Section 23-27.3-108.2 of the General Laws in Chapter 23-27.3 entitled "State Building Code" is hereby amended to read as follows: 23-27.3-108.2. Duties of the state building code commissioner.

(a) The state building code commissioner shall have the authority to enforce and perform the duties required by the state building code, chapter 27.3 of this title, and all codes referenced therein and adopted thereunder, and all other provisions of the general laws and public laws insofar as such powers and duties relate to building codes and building inspection; provided, however, that for the purposes of this section structures constituting tents and/or membrane frame structures as defined in this state building code and any regulations promulgated hereunder shall be subject to an annual certification process to be established by the state building commissioner in conjunction with the state fire marshal and shall not be subject to recurring permit and fee requirements as otherwise required by this code.

(b) The state building code commissioner shall work to standardize building code interpretations across the state with input from the Rhode Island League of Cities and Towns and ensure consistent enforcement of the code throughout the state.

(c) Permit fees. Permit fees for the construction under this chapter shall be established by the committee. The fees shall be deposited as general revenues.

(1) Building permit fees. The state building official or the local cites and towns, as applicable, shall charge each permit applicant an additional one-tenth percent (0.1%) levy of the total construction cost for each commercial permit issued, and two-tenths percent (0.2%) levy of the total construction cost for each residential permit issued. The levy shall be limited to a maximum of one hundred dollars ($100) one hundred fifty dollars ($150) for each of the permits issued for one-, two (2)-, three (3)-, and four (4)-family dwellings. This additional levy shall be transmitted monthly to the state building code office; and

(i) Fifty percent (50%) of this additional levy on residential permits and one hundred percent (100%) of this additional levy on commercial permits shall be used to staff and support the purchase or lease and operation of a web-accessible service and/or system to be utilized by the state and municipalities for uniform, statewide electronic plan review, permit management, and inspection system and other programs described in this chapter. This portion of the fee levy shall be deposited as general revenues.

(ii) Fifty percent (50%) of this additional levy on residential permits shall be transferred to the department of labor and training and shall be deposited into the contractor training restricted receipt account, which shall be exempt from the indirect cost recovery provisions of § 35-4-27. Subject to appropriation by the general assembly, these funds shall be used to provide residential contractor training grants for programs that shall include, but are not limited to, minority business enterprises and state local building officials.

(2) Fees for electronic permitting from other state agencies and cities and towns. The local cities and towns and any state agency utilizing an electronic permitting platform, except as set forth in this section, shall charge each applicant in accordance with §§ 42-13-10, 42-17.1-46, 45-23-36.1, 45-24-58.1, 45-53-16, and 46-23-30 as applicable.

(d) Electronic permitting.

(1) For purposes of this section, “electronic permitting” means the use of computer-based tools and services through a platform which automates and streamlines the application and permit process to include, but not be limited to, task-specific tools for applications, submission of plans, checklists, reports and other documents, reviews, permitting, scheduling, review and project tracking, comments from staff and committees, fee calculation and collection; and workflow and report management

(2) On or before July 1, 2013, the building commissioner shall develop a standard statewide process for electronic plan review, permit management, and inspection. The process shall include, but not be limited to: applications; submission of building plans and plans for developments and plots; plan review; permitting; inspections; inspection scheduling; project tracking; fee calculation and collections; and workflow and report management.

(3) On or before December 1, 2013, the building commissioner shall implement the standard statewide process for electronic plan review, permit management, and inspection. In addition, the building commissioner, through the department of business regulation, shall develop a technology and implementation plan for a standard web-accessible service or system to be utilized by the state and municipalities for uniform, statewide electronic plan review, permit management, and inspection for building permits. The plan shall include, but not be limited to: applications; submission of building plans and plans for developments and plots; plan review; permitting; inspections; inspection scheduling; project tracking; fee calculation and collections; and workflow and report management.

(4) The building commissioner shall implement the standard statewide process for electronic permitting to be utilized pursuant to this section and §§ 23-27.3-115.6, 42-13-10, 42- 17.1-46, 45-23-36.1, 45-24-58.1, 45-53-16, and 46-23-30. In addition, the building commissioner shall develop a technology and implementation plan for a web-accessible service or system to be utilized by the state and municipalities for these purposes and shall cause the purchase or lease and operation of a web-accessible service and/or system to be utilized by the state and municipalities for electronic permitting (“electronic permitting platform”).

(e) All electronic permitting fees collected by the state building code office shall be remitted to the department of business regulation, which funds shall be used to staff and support the purchase or lease and operation of a web-accessible service or system to be utilized by the state and municipalities for electronic permitting.

(f) The building commissioner shall, upon request by any state contractor described in § 37-2-38.1, review, and when all conditions for certification have been met, certify to the state controller that the payment conditions contained in § 37-2-38.1 have been met.

(g) The building commissioner shall coordinate the development and implementation of this section with the state fire marshal to assist with the implementation of § 23-28.2-6. On or before January 1, 2022, the building commissioner shall promulgate rules and regulations to implement the provisions of this section and §§ 23-27.3-115.6, 42-13-10, 42-17.1-46, 45-23-36.1, 45-24-58.1, 45-53-16, and 46-23-30.

(h) The building commissioner shall submit, in coordination with the state fire marshal, a report to the governor and general assembly on or before April 1, 2013, and each April 1 thereafter, providing the status of the web-accessible service(s) and/or system(s) implementation and any recommendations for process or system improvement. In every report submitted on or after April, 2024, the building commissioner shall provide the following information:

(1) The identity of every municipality and state agencies, as applicable, in full compliance with the provisions of §§ 23-27.3-115.6, 42-13-10, 42-17.1-46, 45-23-36.1, 45-24-58.1, 45-53-16, and 46-23-30 and the rules and regulations promulgated pursuant to the provisions of this section;

(2) The identity of every municipality or state agencies, as applicable, failing to fully implement and comply with the provisions of §§ 23-27.3-115.6, 42-13-10, 42-17.1-46, 45-23-36.1, 45-24-58.1, 45-53-16, and 46-23-30 and/or the rules and regulations promulgated pursuant to the provisions of this section, and the nature, extent, and basis or reason for the failure or noncompliance; and

(3) Recommendations to achieve compliance by all municipalities or state agencies, as applicable, with the provisions of §§ 23-27.3-115.6, 42-13-10, 42-17.1-46, 45-23-36.1, 45-24-58.1, 45-53-16, and 46-23-30 and the rules and regulations promulgated pursuant to this section.

(i) The building commissioner shall assist with facilitating the goals and objectives set forth in § 28-42-84(a)(9).

(j) The state building code commissioner shall serve as the executive secretary to the state building code standards committee.

(k) In addition to the state building code commissioner’s other duties as set forth in this chapter, and notwithstanding the same, the state building code commissioner and the commissioner’s staff shall assume the authority for the purposes of enforcing the provisions of the state building code in a municipality where there is no local building official or alternate as detailed in § 23-27.3-107.2, or where there are no local building inspectors.

SECTION 2. This act shall take effect upon passage.