What Business Owners Need to Know as Governments Outsource Code Enforcement

Companies across virtually every industry are experiencing a rapid increase in regulation. Naturally, regulatory agencies are having a hard time keeping up with enforcement. That being the case, some state and local governments are turning to private companies and outsourcing enforcement. Compliance is always in a company’s best interest, but when regulators are able to spread the work around, any violations may be unearthed sooner.

Truck drivers delivering in Alabama a few years ago reported an uptick in code enforcement. Not only were they getting stopped along their routes across the state, they also were getting fined for not having the proper licenses to operate there.

But the inspectors knocking on their cabs weren’t employees of the state. They were hired guns, working for a third-party administrator brought on to enforce licensing laws within Alabama, where many jurisdictions require licenses for delivery companies, trucking services and other businesses that simply drive through the jurisdiction.

Like regulators in Alabama, state and local governments across the country are outsourcing their code enforcement operations, turning to private companies to boost efficiencies and improve compliance.

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