Bill Text: TX HB3892 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to the regulation and industrial Housing and buildings.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-03-20 - Referred to Urban Affairs [HB3892 Detail]
Download: Texas-2023-HB3892-Introduced.html
88R12060 TYPED | ||
By: King of Hemphill | H.B. No. 3892 |
|
||
|
||
relating to the regulation and industrial Housing and buildings. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subtitle C, Title 7, Occupations Code, is | ||
amended by adding a new Chapter 1203 to read as follows: | ||
SECTION 1 | ||
CHAPTER 1203. MODULAR DWELLING SYSTEM REGULATION | ||
Sec. 1203.001. LEGISLATIVE FINDINGS AND POLICY | ||
a. The legislature finds that: | ||
(1) there is a continuing need to provide safe, | ||
affordable, and well-constructed housing; | ||
(2) regulations in connection with industrial | ||
housing, mobile homes, and manufactured homes, along with partial | ||
building systems such as structurally insulated panels serve the | ||
state well; | ||
(3) private construction creativity and market forces | ||
has driven new, innovative housing construction techniques, | ||
including modular, complete residential building systems, from | ||
preapproved, components or modules that are manufactured off-site, | ||
transported to a site for final assembly and completion on a | ||
permanent foundation; | ||
(4) because of the nature of construction, modular, | ||
complete residential building system assembly presents unique | ||
opportunities to optimize uniform health and safety standards at | ||
the place of manufacture, while minimizing inspection procedures | ||
and time delays associated with traditional on-site inspection | ||
procedures. | ||
(5) there is a significant public benefit to | ||
encouraging home ownership, by utilizing modular, complete | ||
residential building construction techniques to address the | ||
growing need for safe, affordable, and well-constructed housing; | ||
Sec. 1203.002 SUBCHAPTER A. GENERAL PROVISIONS | ||
Sec. 1203.003. APPLICABILITY OF CHAPTER. (a) Except as | ||
otherwise provided by this chapter, this chapter applies | ||
exclusively to a modular, complete residential dwelling for | ||
residential occupancy by one or more families. Unless clearly | ||
indicated otherwise by context, the following words and terms when | ||
used by this chapter, shall have the following meanings. | ||
Sec. 1203.003 GENERAL DEFINITIONS. In this chapter: | ||
(1) "Commission" means the Texas Commission of | ||
Licensing and Regulation. | ||
(2) "Council" means the Texas Industrialized Building | ||
Code Council. | ||
(3) "Department" means the Texas Department of | ||
Licensing and Regulation. | ||
(4) "Executive director" means the executive director | ||
of the department. | ||
Sec. 1203.004 DEFINITIONS FOR MODULAR RESIDENTIAL | ||
DWELLINGS. In this chapter: | ||
(1) "Modular residential technique" means a method of | ||
construction that utilizes a pre-engineered, complete building | ||
assembly or system of building subassemblies, designed, built and | ||
constructed in one or more three dimensional modules in a factory | ||
that are transported to a residential site for assembly and | ||
finishing. | ||
(2) Modular Residential Dwellings" means a structure | ||
designed and built for residential use and constructed using a | ||
modular technique in one or more three dimensional modules in a | ||
factory, designed, and built utilizing an agency approved method of | ||
construction that consists of pre-engineered, inspection | ||
factory-fabricated sections that are transported to a site for | ||
final assembly and finishing to completion on a permanent | ||
foundation for residential occupancy by one or more families and | ||
including the necessary electrical, plumbing, heating, | ||
ventilation, and other service systems, which is of closed | ||
construction,. Modular residential dwelling does not include | ||
mobile homes, recreational vehicles, or manufactured homes. A | ||
modular residential dwelling located in Texas is regulated by the | ||
Texas Department of Licensing and Regulation. | ||
(3) "Approved foundation and support system" means, | ||
for a modular residential dwelling unit, a closed perimeter | ||
formation consisting of materials such as concrete, mortared | ||
concrete block, mortared brick, steel, or treated lumber extending | ||
into the ground. | ||
(2) "Closed construction" is any residential building | ||
component, assembly or system manufactured in such a manner that | ||
all portions cannot readily be inspected at the installation site | ||
with disassembly, damage to, or destruction thereof. | ||
(3) "Code compliance certificate" means the | ||
certificate provide by the manufacturer or builder to the | ||
Department that warrants that the modular residential dwelling unit | ||
complies with appropriate safety codes as established by the | ||
Department. The Codes shall contain the standards and requirements | ||
for modular residential dwellings so that adequate performance for | ||
the intended use is made to test the acceptability, provided that | ||
the structural requirements adopted for modular residential | ||
dwellings shall be no more stringent than the requirements | ||
contained in the most recent edition of the International | ||
Residential Code for One and Two Family Dwellings or the | ||
International Building Code, as applicable. The Code of Standards | ||
shall permit the use of new technology, techniques, methods and | ||
materials for modular residential dwellings, consistent with | ||
recognized and accepted codes and standards developed by the | ||
International Code Council, the National Fire Protection | ||
Association, the International Association of Plumbing and | ||
Mechanical Officials. | ||
(4) "Approved Inspection Agency" means a person, | ||
organization or local government approved by the executive director | ||
to be especially qualified by reason of facilities, personnel, | ||
experience, and demonstrated reliability, to investigate, test, | ||
evaluate and inspect modular residential dwelling units, systems, | ||
or the component parts of modular residential dwelling units | ||
together with the plans, specifications, and quality control | ||
procedures to ensure that such units, systems, or component parts | ||
are in full compliance with the minimum standards adopted by the | ||
executive director pursuant to this part and to label such units | ||
complying with those standards. Any person, or any organization | ||
whose membership is composed of persons, employed by a manufacturer | ||
of modular residential dwelling units or owning any interest in any | ||
such manufacturing business, shall be ineligible for approval by | ||
the executive director to serve as an inspection agency. | ||
(5) "Installation" means the assembly of a modular | ||
residential dwelling or dwellings onsite and/or the process of | ||
affixing a modular residential dwelling unit or dwellings, which | ||
may include the structural, electrical, mechanical, plumbing, fire | ||
protection, or other structurally integrated system or systems | ||
thereof affecting life safety; | ||
(6) "Installer" a company or general contractor | ||
certified by the department that is responsible for design, | ||
engineering, manufacturing, and installation the components for a | ||
modular residential dwelling unit at the final onsite location | ||
pursuant to the Original Building Manufacturer's (OBM) | ||
instructions. | ||
(7) "Person" means any individual, group of | ||
individuals, association, trust, partnership, limited liability | ||
company, corporation, person doing business under an assumed name, | ||
county, municipality, the State of Texas, or any political | ||
subdivision or department thereof, or any other entity. | ||
(8) "Complete application" means a submitted plan, | ||
application for construction of a modular residential building | ||
unit, or request for inspection that contains all the information | ||
and supporting documentation required by the county or municipality | ||
for it to make the determination as to whether the plan, | ||
application, or request is in compliance with regulatory | ||
requirements of this Act and department rules. | ||
(8) "Certification". The department shall issue an | ||
authorizing certification to any manufacturer or installer upon | ||
submittal of an application that is supported by affidavit in | ||
addition to other evidence which the department deems necessary to | ||
satisfy itself that the person meets the modular residential | ||
dwelling criteria and that the project is compliant with this Act | ||
and thereby approved to manufacture, install, rent, sell, or offer | ||
for sale a modular residential dwelling. | ||
(9) "Modular Residential Dwelling Fund", is a fund | ||
established within the department's budget, consisting of fines and | ||
penalties, subject to appropriation, be used for enforcement of | ||
this Act. | ||
Sec. 1203.005 PREREQUISITES TO SALE OR INSTALLATION (a) | ||
After the effective date of the rules adopted pursuant to this part, | ||
no modular residential dwelling shall be offered for sale, sold, or | ||
installed in this state, unless it is approved and bears the | ||
insignia of approval of the executive director, the executive | ||
director's designee, or an approved inspection agency. It is | ||
unlawful for any person to manufacture, rent, sell, or offer for | ||
sale for location within this State, any modular residential | ||
dwelling unless such modular residential dwelling complies with | ||
this Act and all rules adopted by the department. | ||
(b) All modular residential dwelling units manufactured in | ||
this state, or intended to be offered for sale, sold, or installed | ||
in this state, shall be inspected by the executive director, the | ||
executive director's designee, or an approved inspection agency, at | ||
the place of manufacture of the modular residential dwelling unit. | ||
(c) No more than 30 days after receipt of both a modular | ||
residential dwelling unit or project application and the affidavit | ||
from a qualifying manufacturer, installer or construction | ||
contractor, the department shall issue the requested authorization | ||
or provide written notice to the applicant identifying the specific | ||
plan features that do not comply with the applicable regulatory | ||
requirements, as well as the specific code chapters and sections of | ||
such regulatory requirements. If the department or any local | ||
governing authority fails to provide written notice of alleged | ||
deficiencies with the prescribed 30-day period, the permit | ||
application shall be deemed approved as a matter of law and the | ||
project can proceed. | ||
(d) Nothing in this chapter prohibits a city, town, village, | ||
or county from adopting construction standards for modular | ||
residential dwelling units under local ordinances, provided such | ||
ordinances are in substantial compliance with state requirements | ||
and reviewed and approved by the department. | ||
(e) No local standard relating to the construction or | ||
installation of modular residential dwelling units shall be | ||
applicable to any modular residential dwelling unit subject to this | ||
part, unless such standard is identical to that set by the | ||
department pursuant to this Chapter. Any residential modular | ||
dwelling unit bearing an insignia of approval issued by the | ||
executive director, the executive director's designee, or an | ||
approved inspection agency pursuant to this part, shall be deemed | ||
to comply with any local standard relating to the construction of | ||
modular residential dwelling units. | ||
(f) Subject to subdivision 1203.005(C), a local government | ||
may make, and charge a fee for, an inspection of the installation of | ||
a modular residential dwelling unit. Any such fee shall not exceed | ||
the amount charged for the equivalent inspection on conventionally, | ||
onsite, built housing. | ||
(e) Local land use and zoning requirements, flood control | ||
areas, are specifically and entirely reserved to local government. | ||
Such local requirements and rules that may be enacted by a local | ||
government must be reasonable and uniformly applied and enforced | ||
without any distinction as to whether a residential dwelling is | ||
conventionally, onsite, constructed or a modular residential | ||
dwelling under this Chapter. | ||
(f) Modular residential dwelling units bearing an insignia | ||
of approval issued by the executive director, the executive | ||
director's designee, or an approved inspection agency pursuant to | ||
this part shall not be modified prior to or during installation, | ||
except in conformance with the rules of the executive director. | ||
(g) The department shall promulgate a standard form notice | ||
and a standard form certificate that shall be used to administer | ||
this Act. Any local inspectors shall make copies of the standard | ||
forms available to contractors. | ||
(h) Upon submission of the certification required by this | ||
subsection, the local governing authority shall be required to | ||
accept the inspection without the necessity of further inspection | ||
or approval, except that the local governing authority may perform | ||
an inspection at any time and may issue a stop-work order for the | ||
project or any portion thereof as provided by law, after giving | ||
prompt, written notice to the manufacturer or installer, or the | ||
contractor of record, if the work is found to be in violation of | ||
code requirements. | ||
(i) If a local governing authority issues a stop-work order, | ||
the local official shall be available to meet with the person | ||
responsible for manufacturing, installing, or constructing the | ||
modular residential dwelling unit within two-business days to | ||
resolve any dispute. | ||
Sec. 1203.006 POWERS AND DUTIES OF THE EXECUTIVE DIRECTOR | ||
(A) The executive director shall enforce and administer this part. | ||
(1) The executive director shall promulgate such rules | ||
and regulations as the executive director finds necessary to | ||
protect health and safety of the public against dangers inherent in | ||
the use of substandard construction and unsafe plumbing, electrical | ||
and heating systems, and other appropriate regulations to carry out | ||
this part, in accordance with the Texas Administrative Procedures | ||
Act found in Title 10, Chapter 2001, Texas Government Code. | ||
(2) The executive director may impose an | ||
administrative penalty against any person who violates this Act, or | ||
any rule adopted under this Act, or who violates any determination | ||
or order of the department under this Act. The department shall | ||
establish violations and penalties by rule, with each day's | ||
violation constituting a separate offense. The maximum penalty | ||
shall be $1,000 per day per violation. All penalties collected | ||
under this section shall be deposited into the "Modular Residential | ||
Dwelling Fund", subject to appropriation, moneys in the Fund shall | ||
be used for enforcement of this Act. | ||
(3) The executive director is authorized to require | ||
licenses of manufacturers, and any other person involved in the | ||
construction, installation, sale, or lease of a modular residential | ||
dwelling unit, and to set reasonable fees and conditions for such | ||
licenses. | ||
(4) The executive director may also establish record | ||
keeping requirements from manufactures and installers. | ||
(B) In addition to any other powers conferred on the executive | ||
director by law, the executive director is authorized to perform | ||
necessary inspection of manufacturing facilities and products to | ||
implement the provisions of this Act, including: | ||
(1) Prescribe all forms required to be filed pursuant | ||
to this part; | ||
(2) Establish a schedule of fees to pay the cost | ||
incurred by the department for the administration and uniform | ||
enforcement of the codes consistent with rules, regulations and | ||
interpretations promulgated by the department; | ||
(3) Appoint and employ such qualified personnel as are | ||
necessary to carry out the duties imposed upon the executive | ||
director by this part; | ||
(4) Delegate inspection authority under this part, by | ||
contract or other agreement, to local governments, private persons, | ||
corporations, associations, and agencies of other states, as an | ||
approved inspection agency; and | ||
(5) After notice and opportunity for hearing to an | ||
applicant or insignia holder, may deny, suspend, or revoke a | ||
certification or asses a civil penalty not to exceed five thousand | ||
dollars ($5,000) for each violation of this Act in any case where a | ||
finding of substantial failure to comply with the provisions of | ||
this Act or the minimum standards, rules and regulations adopted by | ||
the department under this Act. | ||
(6) All final administrative or civil penalty | ||
decisions by the executive director shall be subject to judicial | ||
review. | ||
(C) If a modular residential dwelling is manufactured, sold, or | ||
installed in violation of this part, the executive director may | ||
require: | ||
(1) The manufacturer or installer in violation of this | ||
part to provide the executive director with as-built plans to be | ||
evaluated and approved by the executive director for compliance | ||
with state building codes; | ||
(2) The manufacturer or installer in violation of this | ||
part to make available for inspection any components and concealed | ||
spaces of the structure and to repair any damages made when making | ||
the components and concealed spaces available for inspection; | ||
(3) Inspections to be made during the remanufacturing | ||
process and may require that closed construction or concealed | ||
spaces be opened or made accessible as necessary to determine that | ||
components comply with state building codes; and | ||
(4) The manufacturer or installer to be responsible | ||
for all costs or expenses incurred pursuant to this subsection (c). | ||
Sec. 1203.007 RECIPROCITY - INTERSTATE AGREEMENTS If the | ||
executive director determines that the minimum standards for | ||
construction and inspection of modular residential dwelling units | ||
prescribed by statute or rule of another state are at least equal to | ||
rules prescribed under this part and that such standards are | ||
enforced by such other state, the executive director may negotiate | ||
and enter into reciprocal agreements with appropriate officials of | ||
other states. | ||
SECTION 2. This Act does not make an appropriation. A | ||
provision in this Act that creates a new governmental program, | ||
creates a new entitlement, or imposes a new duty on a governmental | ||
entity is not mandatory during a fiscal period for which the | ||
legislature has not made a specific appropriation to implement the | ||
provision. | ||
SECTION 3. (a) As soon as practicable after the effective | ||
date of this Act, the executive director of the Texas Department of | ||
Licensing and Regulation shall adopt rules as necessary to | ||
implement the changes in law made by this Act. | ||
(b) As soon as practicable after the effective date of this | ||
Act, the Texas Commission of Licensing and Regulation shall adopt | ||
rules necessary to implement the changes in law made by Chapter | ||
1203, as added by this Act. | ||
SECTION 40. This Act takes effect immediately if it | ||
receives a vote of two-thirds of all the members elected to each | ||
house, as provided by Section 39, Article III, Texas Constitution. | ||
If this Act does not receive the vote necessary for immediate | ||
effect, this Act takes effect September 1, 2023. |