The DOB just proposed a rule to forgo elevator AOC penalties for failure to file during the 2022 and 2023 cycles – with some specifics. Here’s what you need to know, and what comes next:
Affirmation of Correction Reminders
Before we go into elevator AOC penalties and changes, here’s a quick reminder about how those are assessed.
On January 15, 2022, new rules went into effect that significantly reduced timeframes to submit elevator inspections and Affirmations of Correction (AOCs). Instead of having 120 days to correct issues and 60 days to file AOCs, owners now had 90 days to make corrections and 14 days to file. Additionally, total failure to file penalties would be issued 14 days after the corrections date instead of after 12 months.
Failure to file penalties (typically seen as ACC1 violations) vary for properties with 1-2 residential units ($1,000/device) and commercial, mixed use, and residential properties with more than 2 units ($3,000/device).
Changes for 2022 and 2023 Cycles
Here’s an excerpt from the summary of the proposed rule outlining exactly what’s changing, and why:
to allow building owners to have more time to adjust to the timelines and requirements to file elevator affirmations of correction that went into effect on January 15, 2022, Rule 103-02 is now being amended to specify that penalties for failure to file an affirmation of correction will not be assessed for affirmations due with respect to defects identified during the 2022 and 2023 inspection and test cycles for owners who submitted affirmations of correction by April 14, 2023 for conditions discovered during the 2022 cycle or by April 14, 2024 for conditions discovered during the 2023 cycle. This is being done to give owners more time to adjust to the new filing and penalty timelines. Penalties for late filings would still apply. The existing timeframes for filing reports and affirmations of correction apply beginning with the 2024 inspection and test cycles.
Basically:
- If a device required an Affirmation of Correction during the 2022 cycle (1/1/22 – 12/31/22), and the AOC was filed by April 14, 2023, the failure to file penalty will not be assessed
- If a device required an Affirmation of Correction during the 2023 cycle (1/1/23 – 12/31/23), and the AOC is filed before April 14, 2024, the failure to file penalty will not be assessed
- Penalties for late filings would still apply. Per the law, $150/month, not to exceed $1,800/elevator device
- The established timelines for making corrections and submitting AOCs apply beginning with this year’s cycle (1/1/24 – 12/31/24)
Next Steps
A hearing for this rule is scheduled for March 13th, 2024 at 11 AM, online. You can join the hearing via the link in the proposed rule, here. You can also submit comments in advance via the website, email, mail, fax, or speaking live at the hearing. Comments must be submitted by 3/13/24.
From there, the rule will either go into effect as written at a future date or get adjusted based on submitted commentary. We typically see rules shift from proposed to adopted within a 1-3 months after the hearing, depending on the complexity of the rules or any adjustments that need to be made.
That said, stay tuned for updates. We’ll let you know once the rule goes into effect, and if there are any notable changes. It’s also worth checking in with your elevator consultant to see if there are any outstanding AOCs that can be filed before the April 14th deadline, and understand your testing schedule for Periodic inspections, CAT 1s, and CAt 5s for 2024.
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