8 building industry boards reorganized to form efficient, collaborative advisory committee

FRANKFORT, Ky. (Nov. 29, 2016) — As part of his Red Tape Reduction Initiative, Gov. Matt Bevin today announced the reorganization of eight boards under the Department of Housing, Buildings and Construction into one united advisory committee representing all sectors of the industry.

The governor’s executive order abolishes eight boards with duplicative layers of bureaucracy, instead replacing them with a singular streamlined committee. The new committee will serve as an advisory body for the department, recommending regulatory and enforcement mechanisms for department implementation.

“The Housing, Buildings and Construction Advisory Committee will serve as a unifying entity for industry stakeholders,” said Gov. Bevin. “The committee will streamline the building process by removing unnecessary bureaucracy and encouraging cross-collaboration among experts. The result is a more effective and efficient system for the entire building industry. With each passing day, it is getting easier for businesses of all types to operate in Kentucky.”

The committee will be comprised of 17 members and mandates the appointment of seven citizen members with experience in the diverse cross-sections of the building industry. These members will include at least one architect, one engineer, one mobile or manufactured home retailer or certified installer, and one expert from each of the heating, ventilation, and air conditioning, plumbing, elevator and electrical trades. The Commissioner of the Department of Housing, Buildings and Construction will serve as the Chairman of the Board, and the State Fire Marshal and the Director of Building Code Enforcement will also be members.

The reorganization is expected to generate approximately $114,600 in administrative savings, including staff time and department resources. This is in addition to the $15,000 in expected savings generated in board member per diems and reimbursement expenses. Combined, the former boards had bloated to 81 members.

The new structure will also protect board members from antitrust liability by vesting oversight and regulatory authority with the department. A 2015 ruling by the U.S. Supreme Court held that boards comprised of active market participants may be subject to anti-trust liability if the board is not actively managed by the state.

“The Governor’s executive order is a commonsense solution that will benefit the entire state,” said Public Protection Cabinet Secretary David Dickerson. “Members of this industry have an important role to play in the safety and growth of the Commonwealth, and this reorganization will position the department to develop a regulatory framework that can keep up with that growth.”

The committee will meet at least quarterly. A copy of the executive order and reorganization plan summary can be found here: http://ppc.ky.gov/Documents/EO2016849.pdf.

The Department of Housing, Buildings and Construction is a department of the state government within the Public Protection Cabinet. The department was established to unite all related functions pertaining to the building industry and provide a more effective building inspection process. For more information, visit http://dhbc.ky.gov/

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