Insurers Urge Federal Supports For Local Building Codes

WASHINGTON--A group of insurance trade groups and companies has urged the leadership of the Senate Banking Committee to act on legislation creating a national program providing awards to local governments for building code administration and enforcement.

The bill, the Community Building Code Administration Grant Act of 2007, S. 2458, was reported out by the House Financial Services Committee in July. It was originally sponsored by Rep. Dennis Moore, D-Kansas.

The bill would create a competitive national program that provides awards to local governments for building code administration and enforcement.

It establishes a five-year program that authorizes $100 million to go to local governments over that period, and caps awards at $1 million per recipient.

It also requires recipients to match a portion of funds received, and outlines eligible uses of funds and selection criteria, with preference offered to governments in financial distress.

According to industry lobbyists and congressional staff, the bill would not interfere with local and state authority to enact and enforce building codes.

A letter from the group asked Sen. Chris Dodd, D-Conn., and Sen. Richard Shelby, R-Ala., chairman and ranking member, respectively, of the Senate Banking Committee, to support the measure.

"This is one of a very few pieces of federal legislation specifically focused on the values and benefits of promoting effective state and local administration of modern building codes," their message said.

It added that the Community Building Code Administration Grant Act of 2007 "recognizes that building code enforcement is a local function fundamental to public safety and disaster mitigation, but that too many communities do not have the resources necessary to initiate programs that will improve compliance with state or locally adopted codes."

The letter said that as a straight-forward federal grant program, the bill "promotes and supports local code enforcement initiatives and provides federal returns through reduction in future costs."

It was signed by the National Association of Mutual Insurance Companies, the American Insurance Association, the International Code Council and State Farm Insurance Companies.

Other industry signers included Nationwide Mutual Insurance Company, Farmers Insurance Group, Solutia Inc., Allstate, ALFA and American Family Mutual insurance companies.

Dennis Kelly, a staff official of the AIA, said the companies and trade groups are urging passage of the bill this year because "the adoption and enforcement of building codes can greatly reduce the disruption of lives and economic losses in our nation."

He said the evidence is clear and overwhelming on that point. "The federal government and the private sector pay billions in disaster relief to rebuild communities every year following a natural disaster," Mr. Kelly added.

"Taking action before the earthquake, hurricane, or tornado is the wise and prudent thing to do to help mitigate the damages," he said.