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SPONSOR: |
Garcia |
DATE TYPED: |
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HB |
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SHORT TITLE: |
Flood Hazardous Area Requirements |
SB |
286/aSJC |
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ANALYST: |
Maloy |
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APPROPRIATION
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
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FY03 |
FY04 |
FY03 |
FY04 |
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|
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See Narrative |
Recurring |
GF/OSF/Local |
Duplicates HB 77.
Responses
Received From
General
Services Department
Regulation
and Licensing Department, Construction Industries Division
Department
of Finance and Administration
Department
of Public Safety
SUMMARY
The Senate Judiciary Committee amended Senate
Bill 286 to clarify that local counties and municipalities have exclusive
jurisdiction over flood plain permits issued pursuant to their flood plain
ordinances, as long as the construction is subject to inspection and approval
in accordance with the Construction Industries Licensing Act.
This amendment assures that construction in flood plains is to be performed in accordance with the same minimum safety standards and regulatory checks as established for other types of construction in the state.
Senate Bill 286 proposes to:
Require counties and municipalities to individually regulate construction in flood and mudslide hazard areas through the adoption of construction standards that conform to the regulations prescribed by the federal insurance administration;
Require any county or municipality with an area that has been designated “flood-prone” by the Federal Emergency Management Agency (FEMA) to participate in the national flood insurance program;
Eliminate the enforcement/inspection jurisdiction of the Construction Industries Division over flood or mudslide area permits; and
Identify the department of public safety as the “state coordinating agency” for the national flood insurance program.
Finally, SB 286 requires all buildings receiving state funding for construction, repair or improvement in an amount equal to, or in excess of, 50% of the building’s value (before the repair or improvement) to comply with the standards of the national flood insurance program.
1.
The
Risk Management Division of the General Services Department provides flood insurance
coverage for all state agencies and university properties. Four universities have been identified as
having high-risk exposure areas (NMHU, NMSU, ENMMU, UNM). Currently, the Risk Management Division has
separate, enhanced policies for these properties. The high-risk premiums are
costly.
It is expected that, as
other high-risk properties are identified, Risk Management will see an increase
in other properties’ premiums.
The Property Control
Division’s FY04 budget request for property insurance does not include enhanced
insurance for the additional state properties that will be identified as
high-risk exposure areas.
2.
Section
60-13-10 of the Construction Industries Licensing Act provides that the Construction
Industries Division (CID) shall issue regulations specifically addressing
construction in flood or mudslide areas.
Section 60-13-44(F) of the Act also provides: “all political
subdivisions of the state are subject to the provisions of codes adopted and
approved under the Construction Industries Licensing Act . . . Such codes
constitute a minimum requirement for the codes of political subdivisions.”
Having a uniform, consistent minimum code for the state is a great asset. Contractors can move freely throughout the state without having to continually rework their trades to accommodate numerous differing code jurisdictions. Having each county and municipality adopt its own codes to govern the hazardous areas within its boundaries may result in problematic, inconsistent building practices, compliance and enforcement. It will likely be most beneficial to have one uniform “hazardous areas code” promulgated at the state level.
3.
SB
286 states that a county or municipality shall have exclusive jurisdiction over
flood and mudslide hazard permits. The
bill strikes language relating to enforcement through an inspector who is
certified by the Construction Industries Division. This raises three issues:
a.
Many
rural counties and municipalities do not have personnel with the construction
expertise necessary to enforce these codes.
These counties and municipalities will need assistance from the
Construction Industries Division (CID).
b.
CID
already performs statewide inspection services.
These services are concentrated in areas of the state where there exists
no local building department, or where the existing department is limited in
its scope of expertise (e.g., general construction only, no electrical or
mechanical). If such a county or municipality hires a hazardous area inspector,
it will most likely find it is duplicating efforts that could have been accomplished
in one inspection by a CID certified inspector (whether local or state).
c.
Currently,
the Construction Industries Division has certification and oversight authority
over all construction inspectors. Is it reasonable to exempt this one
category of inspector from the authority of the division, particularly in light
of the complex construction and safety issues related to building in a
hazardous area?
FISCAL IMPLICATIONS
1.
The
Risk Management and Property Control Divisions of the General Services Department
will encounter higher insurance premiums until the codes are fully implemented.
2.
Counties
and municipalities will need to budget for additional personnel.
3.
The
state does not currently issue hazardous-area-specific permits. Thus, the state
is not generating revenue from such building circumstances.
However, if, because of
the grant of exclusive jurisdiction to counties and municipalities, a structure
that would normally have been permitted by the state Construction Industries
Division became the responsibility of the local county or municipality (e.g., a
public building in a flood plain), the general fund could receive less revenue.
4.
The public will pay higher permit fees
for construction.
SB 286’s administrative impact on the General Services Department and the Construction Industries Division will be minimal.
Local county and municipalities would see an increase in their responsibilities, including: drafting and adopting codes, permitting and inspection.
CONFLICT OR RELATIONSHIP
SB 286 gives rise to jurisdictional ambiguities,
if not conflicts, with the Construction Industries Licensing Act.
AMENDMENTS
Consistency between
laws governing construction may be achieved through having the state
Construction Industries Division promulgate and adopt the minimum hazardous
area code, and through having the hazardous-area inspectors under the
certification jurisdiction of the Division.
SJM/njw:sb:yr