Bill Text: TX SB1955 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to the regulation of industrial housing and buildings.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-03-21 - Referred to Business & Commerce [SB1955 Detail]
Download: Texas-2023-SB1955-Introduced.html
By: Parker | S.B. No. 1955 | |
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relating to the regulation of 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 | ||
have derived(?) new, innovative housing | ||
construction techniques, including modular and | ||
complete residential building systems, from | ||
preapproved components or modules that are | ||
manufactured off-site, then 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; and | ||
(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 only to a | ||
municipality with a population of 300,000 or more. 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. | ||
(4) "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. | ||
(5) "Code compliance certificate" means the | ||
certificate provided 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, and the International Association of Plumbing and | ||
Mechanical Officials. | ||
(6) "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. | ||
(7) "Installation" means the assembly of a modular | ||
residential dwelling or dwellings onsite and/or the process of | ||
affixing a modular residential dwelling or dwellings, which may | ||
include the structural, electrical, mechanical, plumbing, fire | ||
protection, or other structurally integrated system or systems | ||
thereof affecting life safety. | ||
(8) "Installer" means a company or general contractor | ||
certified by the department that is responsible for design, | ||
engineering, manufacturing, and installation of the components for | ||
a modular residential dwelling unit at the final onsite location | ||
pursuant to the Original Building Manufacturer's (OBM) | ||
instructions. | ||
(9) "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. | ||
(10) "Complete application" means a submitted plan, | ||
application for construction of a modular residential dwelling, or | ||
request for inspection that contains all the information and | ||
supporting documentation required by the county or municipality to | ||
enable making the determination as to whether the plan, | ||
application, or request is in compliance with regulatory | ||
requirements of this Act and department rules. | ||
(11) "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 project 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. | ||
(12) "Modular Residential Dwelling Fund" (Fund) means | ||
a fund established within the department's budget, consisting of | ||
fines and penalties, subject to appropriation, to 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 within the prescribed 30-day period, the | ||
application shall be deemed approved as a matter of law | ||
and the project may 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 and 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 | ||
unit 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. |