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HB21-1019

Modification To Regulations Of Factory-built Structures

Concerning modifications to the regulations of factory-built structures.
Session:
2021 Regular Session
Subject:
State Government
Bill Summary

The bill makes the following modifications to the regulations of factory-built structures, manufactured housing, and installers and sellers of manufactured housing:

  • Clarifies that the division of housing (division) has enforcement powers over the installation and sale of manufactured homes and over the safety of hotels and multi-family structures where no other construction standards exist;
  • Clarifies that a manufacturer who violates applicable law is subject to registration revocation or any other measures prescribed by the division or applicable law;
  • Clarifies that a local government may enforce local rules governing the installation of factory-built housing that are approved by the division of housing (division) ;
  • Clarifies that authority granted to the division is over work related to factory-built structures that is completed offsite or completed onsite with components shipped with the factory-built structure;
  • Clarifies that a local government's authority is over work completed onsite and is not over work performed offsite or work that is completed onsite using components shipped with the factory-built structure;
  • Allows the division to authorize a local government to inspect and charge fees related to work that is completed onsite using components shipped with a factory-built structure;
  • Clarifies that a factory-built structure bearing an insignia of approval issued by the division complies with applicable state codes and local government installation requirements approved by the division;
  • Clarifies that an insignia of approval affixed to the factory-built structure does not expire unless the design and construction of the factory-built structure has been modified by approved plans;
  • Clarifies that a homeowner who installs a manufactured home for their own personal use is not required to register with the division;
  • Allows the division to set the minimum amount of a surety bond, filed by insurance, and educational requirements for a registered installer of a manufactured home by rule-making;
  • Creates disclosure requirements relating to financial instruments and legal actions for installation contracts;
  • Requires installers to contact the division if the installer is not able to strictly comply with the manufacturer's instructions;
  • Clarifies that a manufacturer must receive an installation authorization unless the installation is occurring in a jurisdiction where a local government is acting as an independent contractor;
  • Clarifies that an installation insignia must be affixed to the manufactured home by the division or the local government independent contractor upon the completion of the installation;
  • Clarifies what costs the installer may be required to pay if a manufactured home was not completely installed;
  • Requires an insurer or financial institution to pay the division or owner of a manufactured home the amount of a claim against the letter of credit, certificate of deposit, or surety bond filed with the division by a registered installer if there has been a final judgment against the registered installer finding that the installer failed to perform as required by applicable law ;
  • Clarifies that a local government's authority over installations of manufactured homes to government may only enact installation rules related to weight restrictions for snow roof loads or wind shear factors geographic or climatic conditions and any such rules cannot be applied to conflict with the standards set by the United States department of housing and urban development federal law ;
  • Allows a local government to require onsite mitigation addressing public safety requirements applicable to manufactured homes that comply with the federal manufactured home construction and safety standard;
  • Clarifies that a person who is employed by a registered seller to negotiate for the sale of manufactured homes is not considered a seller for purposes of the applicable registration requirements;
  • Removes the requirement that a seller of a manufactured home escrow all down payments paid by a purchaser in a separate fiduciary account;
  • Allows the division to set escrow requirements and the minimum amount of a surety bond financial instrument filed by a registered seller of a manufactured home through rule-making;
  • Removes the requirement that the division send the attorney general a monthly list of all persons registered and bonded with the division;
  • Removes the restriction that any letter of credit, certificate of deposit, or surety bond financial instrument filed with the division is only revocable upon the written consent of the attorney general;
  • Allows the division to execute a surety bond filed by a registered seller on behalf of the purchaser of a manufactured home;
  • Removes the requirement that a seller of a manufactured home disclose in a sales contract language pertaining to escrow requirements that are eliminated by the bill;
  • Clarifies the disclosures that are required to be made in contracts for the sale of manufactured homes;
  • Clarifies that any fines paid to the division by a seller must be credited by the state treasurer to the building regulation fund;
  • Clarifies the types of homes that may not be excluded by counties and municipalities ; and
  • Clarifies that a county or municipality must comply with the state requirements for local installation standards when enacting building code provisions for a manufactured home.

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)


(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Status

Introduced
Under Consideration

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