Texas 2023 - 88th Regular

Texas House Bill HB3892 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	88R12060 TYPED
2	2	By: King of Hemphill H.B. No. 3892
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the regulation and industrial Housing and buildings.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Subtitle C, Title 7, Occupations Code, is
10	10	amended by adding a new Chapter 1203 to read as follows:
11	11	SECTION 1
12	12	CHAPTER 1203. MODULAR DWELLING SYSTEM REGULATION
13	13	Sec. 1203.001. LEGISLATIVE FINDINGS AND POLICY
14	14	a. The legislature finds that:
15	15	(1) there is a continuing need to provide safe,
16	16	affordable, and well-constructed housing;
17	17	(2) regulations in connection with industrial
18	18	housing, mobile homes, and manufactured homes, along with partial
19	19	building systems such as structurally insulated panels serve the
20	20	state well;
21	21	(3) private construction creativity and market forces
22	22	has driven new, innovative housing construction techniques,
23	23	including modular, complete residential building systems, from
24	24	preapproved, components or modules that are manufactured off-site,
25	25	transported to a site for final assembly and completion on a
26	26	permanent foundation;
27	27	(4) because of the nature of construction, modular,
28	28	complete residential building system assembly presents unique
29	29	opportunities to optimize uniform health and safety standards at
30	30	the place of manufacture, while minimizing inspection procedures
31	31	and time delays associated with traditional on-site inspection
32	32	procedures.
33	33	(5) there is a significant public benefit to
34	34	encouraging home ownership, by utilizing modular, complete
35	35	residential building construction techniques to address the
36	36	growing need for safe, affordable, and well-constructed housing;
37	37	Sec. 1203.002 SUBCHAPTER A. GENERAL PROVISIONS
38	38	Sec. 1203.003. APPLICABILITY OF CHAPTER. (a) Except as
39	39	otherwise provided by this chapter, this chapter applies
40	40	exclusively to a modular, complete residential dwelling for
41	41	residential occupancy by one or more families. Unless clearly
42	42	indicated otherwise by context, the following words and terms when
43	43	used by this chapter, shall have the following meanings.
44	44	Sec. 1203.003 GENERAL DEFINITIONS. In this chapter:
45	45	(1) "Commission" means the Texas Commission of
46	46	Licensing and Regulation.
47	47	(2) "Council" means the Texas Industrialized Building
48	48	Code Council.
49	49	(3) "Department" means the Texas Department of
50	50	Licensing and Regulation.
51	51	(4) "Executive director" means the executive director
52	52	of the department.
53	53	Sec. 1203.004 DEFINITIONS FOR MODULAR RESIDENTIAL
54	54	DWELLINGS. In this chapter:
55	55	(1) "Modular residential technique" means a method of
56	56	construction that utilizes a pre-engineered, complete building
57	57	assembly or system of building subassemblies, designed, built and
58	58	constructed in one or more three dimensional modules in a factory
59	59	that are transported to a residential site for assembly and
60	60	finishing.
61	61	(2) Modular Residential Dwellings" means a structure
62	62	designed and built for residential use and constructed using a
63	63	modular technique in one or more three dimensional modules in a
64	64	factory, designed, and built utilizing an agency approved method of
65	65	construction that consists of pre-engineered, inspection
66	66	factory-fabricated sections that are transported to a site for
67	67	final assembly and finishing to completion on a permanent
68	68	foundation for residential occupancy by one or more families and
69	69	including the necessary electrical, plumbing, heating,
70	70	ventilation, and other service systems, which is of closed
71	71	construction,. Modular residential dwelling does not include
72	72	mobile homes, recreational vehicles, or manufactured homes. A
73	73	modular residential dwelling located in Texas is regulated by the
74	74	Texas Department of Licensing and Regulation.
75	75	(3) "Approved foundation and support system" means,
76	76	for a modular residential dwelling unit, a closed perimeter
77	77	formation consisting of materials such as concrete, mortared
78	78	concrete block, mortared brick, steel, or treated lumber extending
79	79	into the ground.
80	80	(2) "Closed construction" is any residential building
81	81	component, assembly or system manufactured in such a manner that
82	82	all portions cannot readily be inspected at the installation site
83	83	with disassembly, damage to, or destruction thereof.
84	84	(3) "Code compliance certificate" means the
85	85	certificate provide by the manufacturer or builder to the
86	86	Department that warrants that the modular residential dwelling unit
87	87	complies with appropriate safety codes as established by the
88	88	Department. The Codes shall contain the standards and requirements
89	89	for modular residential dwellings so that adequate performance for
90	90	the intended use is made to test the acceptability, provided that
91	91	the structural requirements adopted for modular residential
92	92	dwellings shall be no more stringent than the requirements
93	93	contained in the most recent edition of the International
94	94	Residential Code for One and Two Family Dwellings or the
95	95	International Building Code, as applicable. The Code of Standards
96	96	shall permit the use of new technology, techniques, methods and
97	97	materials for modular residential dwellings, consistent with
98	98	recognized and accepted codes and standards developed by the
99	99	International Code Council, the National Fire Protection
100	100	Association, the International Association of Plumbing and
101	101	Mechanical Officials.
102	102	(4) "Approved Inspection Agency" means a person,
103	103	organization or local government approved by the executive director
104	104	to be especially qualified by reason of facilities, personnel,
105	105	experience, and demonstrated reliability, to investigate, test,
106	106	evaluate and inspect modular residential dwelling units, systems,
107	107	or the component parts of modular residential dwelling units
108	108	together with the plans, specifications, and quality control
109	109	procedures to ensure that such units, systems, or component parts
110	110	are in full compliance with the minimum standards adopted by the
111	111	executive director pursuant to this part and to label such units
112	112	complying with those standards. Any person, or any organization
113	113	whose membership is composed of persons, employed by a manufacturer
114	114	of modular residential dwelling units or owning any interest in any
115	115	such manufacturing business, shall be ineligible for approval by
116	116	the executive director to serve as an inspection agency.
117	117	(5) "Installation" means the assembly of a modular
118	118	residential dwelling or dwellings onsite and/or the process of
119	119	affixing a modular residential dwelling unit or dwellings, which
120	120	may include the structural, electrical, mechanical, plumbing, fire
121	121	protection, or other structurally integrated system or systems
122	122	thereof affecting life safety;
123	123	(6) "Installer" a company or general contractor
124	124	certified by the department that is responsible for design,
125	125	engineering, manufacturing, and installation the components for a
126	126	modular residential dwelling unit at the final onsite location
127	127	pursuant to the Original Building Manufacturer's (OBM)
128	128	instructions.
129	129	(7) "Person" means any individual, group of
130	130	individuals, association, trust, partnership, limited liability
131	131	company, corporation, person doing business under an assumed name,
132	132	county, municipality, the State of Texas, or any political
133	133	subdivision or department thereof, or any other entity.
134	134	(8) "Complete application" means a submitted plan,
135	135	application for construction of a modular residential building
136	136	unit, or request for inspection that contains all the information
137	137	and supporting documentation required by the county or municipality
138	138	for it to make the determination as to whether the plan,
139	139	application, or request is in compliance with regulatory
140	140	requirements of this Act and department rules.
141	141	(8) "Certification". The department shall issue an
142	142	authorizing certification to any manufacturer or installer upon
143	143	submittal of an application that is supported by affidavit in
144	144	addition to other evidence which the department deems necessary to
145	145	satisfy itself that the person meets the modular residential
146	146	dwelling criteria and that the project is compliant with this Act
147	147	and thereby approved to manufacture, install, rent, sell, or offer
148	148	for sale a modular residential dwelling.
149	149	(9) "Modular Residential Dwelling Fund", is a fund
150	150	established within the department's budget, consisting of fines and
151	151	penalties, subject to appropriation, be used for enforcement of
152	152	this Act.
153	153	Sec. 1203.005 PREREQUISITES TO SALE OR INSTALLATION (a)
154	154	After the effective date of the rules adopted pursuant to this part,
155	155	no modular residential dwelling shall be offered for sale, sold, or
156	156	installed in this state, unless it is approved and bears the
157	157	insignia of approval of the executive director, the executive
158	158	director's designee, or an approved inspection agency. It is
159	159	unlawful for any person to manufacture, rent, sell, or offer for
160	160	sale for location within this State, any modular residential
161	161	dwelling unless such modular residential dwelling complies with
162	162	this Act and all rules adopted by the department.
163	163	(b) All modular residential dwelling units manufactured in
164	164	this state, or intended to be offered for sale, sold, or installed
165	165	in this state, shall be inspected by the executive director, the
166	166	executive director's designee, or an approved inspection agency, at
167	167	the place of manufacture of the modular residential dwelling unit.
168	168	(c) No more than 30 days after receipt of both a modular
169	169	residential dwelling unit or project application and the affidavit
170	170	from a qualifying manufacturer, installer or construction
171	171	contractor, the department shall issue the requested authorization
172	172	or provide written notice to the applicant identifying the specific
173	173	plan features that do not comply with the applicable regulatory
174	174	requirements, as well as the specific code chapters and sections of
175	175	such regulatory requirements. If the department or any local
176	176	governing authority fails to provide written notice of alleged
177	177	deficiencies with the prescribed 30-day period, the permit
178	178	application shall be deemed approved as a matter of law and the
179	179	project can proceed.
180	180	(d) Nothing in this chapter prohibits a city, town, village,
181	181	or county from adopting construction standards for modular
182	182	residential dwelling units under local ordinances, provided such
183	183	ordinances are in substantial compliance with state requirements
184	184	and reviewed and approved by the department.
185	185	(e) No local standard relating to the construction or
186	186	installation of modular residential dwelling units shall be
187	187	applicable to any modular residential dwelling unit subject to this
188	188	part, unless such standard is identical to that set by the
189	189	department pursuant to this Chapter. Any residential modular
190	190	dwelling unit bearing an insignia of approval issued by the
191	191	executive director, the executive director's designee, or an
192	192	approved inspection agency pursuant to this part, shall be deemed
193	193	to comply with any local standard relating to the construction of
194	194	modular residential dwelling units.
195	195	(f) Subject to subdivision 1203.005(C), a local government
196	196	may make, and charge a fee for, an inspection of the installation of
197	197	a modular residential dwelling unit. Any such fee shall not exceed
198	198	the amount charged for the equivalent inspection on conventionally,
199	199	onsite, built housing.
200	200	(e) Local land use and zoning requirements, flood control
201	201	areas, are specifically and entirely reserved to local government.
202	202	Such local requirements and rules that may be enacted by a local
203	203	government must be reasonable and uniformly applied and enforced
204	204	without any distinction as to whether a residential dwelling is
205	205	conventionally, onsite, constructed or a modular residential
206	206	dwelling under this Chapter.
207	207	(f) Modular residential dwelling units bearing an insignia
208	208	of approval issued by the executive director, the executive
209	209	director's designee, or an approved inspection agency pursuant to
210	210	this part shall not be modified prior to or during installation,
211	211	except in conformance with the rules of the executive director.
212	212	(g) The department shall promulgate a standard form notice
213	213	and a standard form certificate that shall be used to administer
214	214	this Act. Any local inspectors shall make copies of the standard
215	215	forms available to contractors.
216	216	(h) Upon submission of the certification required by this
217	217	subsection, the local governing authority shall be required to
218	218	accept the inspection without the necessity of further inspection
219	219	or approval, except that the local governing authority may perform
220	220	an inspection at any time and may issue a stop-work order for the
221	221	project or any portion thereof as provided by law, after giving
222	222	prompt, written notice to the manufacturer or installer, or the
223	223	contractor of record, if the work is found to be in violation of
224	224	code requirements.
225	225	(i) If a local governing authority issues a stop-work order,
226	226	the local official shall be available to meet with the person
227	227	responsible for manufacturing, installing, or constructing the
228	228	modular residential dwelling unit within two-business days to
229	229	resolve any dispute.
230	230	Sec. 1203.006 POWERS AND DUTIES OF THE EXECUTIVE DIRECTOR
231	231	(A) The executive director shall enforce and administer this part.
232	232	(1) The executive director shall promulgate such rules
233	233	and regulations as the executive director finds necessary to
234	234	protect health and safety of the public against dangers inherent in
235	235	the use of substandard construction and unsafe plumbing, electrical
236	236	and heating systems, and other appropriate regulations to carry out
237	237	this part, in accordance with the Texas Administrative Procedures
238	238	Act found in Title 10, Chapter 2001, Texas Government Code.
239	239	(2) The executive director may impose an
240	240	administrative penalty against any person who violates this Act, or
241	241	any rule adopted under this Act, or who violates any determination
242	242	or order of the department under this Act. The department shall
243	243	establish violations and penalties by rule, with each day's
244	244	violation constituting a separate offense. The maximum penalty
245	245	shall be $1,000 per day per violation. All penalties collected
246	246	under this section shall be deposited into the "Modular Residential
247	247	Dwelling Fund", subject to appropriation, moneys in the Fund shall
248	248	be used for enforcement of this Act.
249	249	(3) The executive director is authorized to require
250	250	licenses of manufacturers, and any other person involved in the
251	251	construction, installation, sale, or lease of a modular residential
252	252	dwelling unit, and to set reasonable fees and conditions for such
253	253	licenses.
254	254	(4) The executive director may also establish record
255	255	keeping requirements from manufactures and installers.
256	256	(B) In addition to any other powers conferred on the executive
257	257	director by law, the executive director is authorized to perform
258	258	necessary inspection of manufacturing facilities and products to
259	259	implement the provisions of this Act, including:
260	260	(1) Prescribe all forms required to be filed pursuant
261	261	to this part;
262	262	(2) Establish a schedule of fees to pay the cost
263	263	incurred by the department for the administration and uniform
264	264	enforcement of the codes consistent with rules, regulations and
265	265	interpretations promulgated by the department;
266	266	(3) Appoint and employ such qualified personnel as are
267	267	necessary to carry out the duties imposed upon the executive
268	268	director by this part;
269	269	(4) Delegate inspection authority under this part, by
270	270	contract or other agreement, to local governments, private persons,
271	271	corporations, associations, and agencies of other states, as an
272	272	approved inspection agency; and
273	273	(5) After notice and opportunity for hearing to an
274	274	applicant or insignia holder, may deny, suspend, or revoke a
275	275	certification or asses a civil penalty not to exceed five thousand
276	276	dollars ($5,000) for each violation of this Act in any case where a
277	277	finding of substantial failure to comply with the provisions of
278	278	this Act or the minimum standards, rules and regulations adopted by
279	279	the department under this Act.
280	280	(6) All final administrative or civil penalty
281	281	decisions by the executive director shall be subject to judicial
282	282	review.
283	283	(C) If a modular residential dwelling is manufactured, sold, or
284	284	installed in violation of this part, the executive director may
285	285	require:
286	286	(1) The manufacturer or installer in violation of this
287	287	part to provide the executive director with as-built plans to be
288	288	evaluated and approved by the executive director for compliance
289	289	with state building codes;
290	290	(2) The manufacturer or installer in violation of this
291	291	part to make available for inspection any components and concealed
292	292	spaces of the structure and to repair any damages made when making
293	293	the components and concealed spaces available for inspection;
294	294	(3) Inspections to be made during the remanufacturing
295	295	process and may require that closed construction or concealed
296	296	spaces be opened or made accessible as necessary to determine that
297	297	components comply with state building codes; and
298	298	(4) The manufacturer or installer to be responsible
299	299	for all costs or expenses incurred pursuant to this subsection (c).
300	300	Sec. 1203.007 RECIPROCITY - INTERSTATE AGREEMENTS If the
301	301	executive director determines that the minimum standards for
302	302	construction and inspection of modular residential dwelling units
303	303	prescribed by statute or rule of another state are at least equal to
304	304	rules prescribed under this part and that such standards are
305	305	enforced by such other state, the executive director may negotiate
306	306	and enter into reciprocal agreements with appropriate officials of
307	307	other states.
308	308	SECTION 2. This Act does not make an appropriation. A
309	309	provision in this Act that creates a new governmental program,
310	310	creates a new entitlement, or imposes a new duty on a governmental
311	311	entity is not mandatory during a fiscal period for which the
312	312	legislature has not made a specific appropriation to implement the
313	313	provision.
314	314	SECTION 3. (a) As soon as practicable after the effective
315	315	date of this Act, the executive director of the Texas Department of
316	316	Licensing and Regulation shall adopt rules as necessary to
317	317	implement the changes in law made by this Act.
318	318	(b) As soon as practicable after the effective date of this
319	319	Act, the Texas Commission of Licensing and Regulation shall adopt
320	320	rules necessary to implement the changes in law made by Chapter
321	321	1203, as added by this Act.
322	322	SECTION 40. This Act takes effect immediately if it
323	323	receives a vote of two-thirds of all the members elected to each
324	324	house, as provided by Section 39, Article III, Texas Constitution.
325	325	If this Act does not receive the vote necessary for immediate
326	326	effect, this Act takes effect September 1, 2023.