Summary:

 House Bill 491 (HB 491):  This bill creates a licensing framework for private inspection companies to perform building inspections in New Mexico, subject to strict requirements, a certified building official on staff, and division oversight. The intent is to improve code compliance and efficiency by supplementing government inspection capacity. 

Legislation Overview:

 House Bill 491 (HB 491):  This bill amends the Construction Industries Licensing Act to:
•	License and regulate private inspection companies that may perform inspections on behalf of governments or for contractors and homeowners.
•	Clarify how private inspection companies, certified building officials, and inspectors operate under the Act.
•	Expand the available resources for building inspections to improve efficiency, code compliance, and safety.
Key Changes:
•	Private Inspection Companies
a.	Licensure
b.	The Construction Industries Division (“Division”) will now license private inspection companies similarly to how it licenses contractors.
c.	Companies must prove financial responsibility (e.g., a surety bond), employ at least one certified building official, and meet certain experience and regulatory familiarity requirements.
Scope of Services:
•	A private inspection company can apply for building permits and perform inspections of permitted work on behalf of either:
•	A government (state, county, city) via a contract or agreement, or
•	A licensed contractor or homeowner, also via a contract, to ensure compliance with applicable codes and approved plans.
Inspection Procedures and Reporting:
•	Companies must use the same permit application processes, forms, and fee-collection arrangements as the contracting government requires.
•	Once final inspections are done, a certificate of compliance is issued to confirm code compliance under oath.
Transition Rules:
•	If a certified building official (CBO) leaves the private inspection company’s employ, the company has 60 days to replace that official (or longer if the Division approves).
•	A CBO cannot work simultaneously for more than one private inspection company unless the same persons own at least 30% of both companies.
Fees and Additional Charges:
•	Private inspection companies can collect and keep additional fees for their services, beyond the basic government permit fees.
Certified Building Officials (CBOs) and Inspectors - CBO Employment:
•	A CBO must be employed by a government or a private inspection company to oversee the inspection function.
•	Governments may share a CBO through a memorandum of understanding or contract with a private inspection company.
Inspectors:
•	Must hold a statewide inspector’s certificate in one or more trade bureau jurisdictions to perform inspections.
•	Inspectors employed by the state, local governments, or private inspection companies must comply with conflict-of-interest rules (e.g., cannot hold an active contractor license while working as a government inspector).
Contractors and Homeowners - Choice of Inspection Provider:
•	A contractor or homeowner can hire a private inspection company to conduct code inspections on their project, instead of relying on government inspectors (where local ordinances allow).
•	Once an inspection provider is chosen and a permit is issued, you cannot switch mid-project unless the Division grants permission.
Administrative and Technical Updates - Codes and Standards:
•	Private inspection companies are subject to the same codes, standards, and procedures that the Construction Industries Division and local governments apply.
Disciplinary Oversight
•	The Division can investigate and take action (including license suspension or revocation) against private inspection companies and inspectors that fail to comply with the Act or rules.
Bonding Requirement
•	The bond for private inspection companies must comply with rules established by the Construction Industries Licensing Act, ensuring they can cover code violations and claims arising from inspection errors.
 

Current Law:

 60-13-1.1. Purpose of the act. 
The purpose of the Construction Industries Licensing Act is to promote the general 
welfare of the people of New Mexico by providing for the protection of life and property by adopting and enforcing codes and standards for construction, alteration, installation, connection, demolition and repair work. To effect this purpose, it is the intent of the legislature that:  
A. examination, licensing and certification of the occupations and trades within the 
jurisdiction of the Construction Industries Licensing Act be such as to ensure or 
encourage the highest quality of performance and to require compliance with approved 
codes and standards and be, to the maximum extent possible, uniform in application, 
procedure and enforcement;  
B. there be eliminated the wasteful and inefficient administrative practices of dual 
licensing, duplication of inspection, nonuniform classification and examination of closely 
related trades or occupational activities and jurisdictional conflicts; and  
C. contractors be required to furnish and maintain evidence of responsibility.