Texas 2023 - 88th Regular

Texas Senate Bill SB1955 Compare Versions

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1	1	By: Parker S.B. No. 1955
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the regulation of industrial housing and buildings.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Subtitle C, Title 7, Occupations Code, is
9	9	amended by adding a new Chapter 1203 to read as follows:
10	10	SECTION 1
11	11	CHAPTER 1203. MODULAR DWELLING SYSTEM REGULATION.
12	12	Sec. 1203.001. LEGISLATIVE FINDINGS AND POLICY.
13	13	(a) The legislature finds that:
14	14	(1) there is a continuing need to provide safe,
15	15	affordable, and well-constructed housing;
16	16	(2) regulations in connection with industrial
17	17	housing, mobile homes, and manufactured homes,
18	18	along with partial building systems such as
19	19	structurally insulated panels serve the state
20	20	well;
21	21	(3) private construction creativity and market forces
22	22	have derived(?) new, innovative housing
23	23	construction techniques, including modular and
24	24	complete residential building systems, from
25	25	preapproved components or modules that are
26	26	manufactured off-site, then transported to a site
27	27	for final assembly and completion on a permanent
28	28	foundation;
29	29	(4) because of the nature of construction, modular,
30	30	complete residential building system assembly
31	31	presents unique opportunities to optimize uniform
32	32	health and safety standards at the place of
33	33	manufacture, while minimizing inspection
34	34	procedures and time delays associated with
35	35	traditional on-site inspection procedures; and
36	36	(5) there is a significant public benefit to
37	37	encouraging home ownership, by utilizing modular,
38	38	complete residential building construction
39	39	techniques to address the growing need for safe,
40	40	affordable, and well-constructed housing.
41	41	Sec. 1203.002 SUBCHAPTER A. GENERAL PROVISIONS.
42	42	Sec. 1203.003. APPLICABILITY OF CHAPTER. (a) Except as otherwise
43	43	provided by this chapter, this chapter applies only to a
44	44	municipality with a population of 300,000 or more. Except as
45	45	otherwise provided by this chapter, this chapter applies
46	46	exclusively to a modular, complete residential dwelling for
47	47	residential occupancy by one or more families. Unless clearly
48	48	indicated otherwise by context, the following words and terms when
49	49	used by this chapter shall have the following meanings.
50	50	Sec. 1203.003 GENERAL DEFINITIONS. In this chapter:
51	51	(1) "Commission" means the Texas Commission of
52	52	Licensing and Regulation.
53	53	(2) "Council" means the Texas Industrialized Building
54	54	Code Council.
55	55	(3) "Department" means the Texas Department of
56	56	Licensing and Regulation.
57	57	(4) "Executive director" means the executive director
58	58	of the department.
59	59	Sec. 1203.004 DEFINITIONS FOR MODULAR RESIDENTIAL DWELLINGS. In
60	60	this chapter:
61	61	(1) "Modular residential technique" means a method of
62	62	construction that utilizes a pre-engineered, complete building
63	63	assembly or system of building subassemblies, designed, built and
64	64	constructed in one or more three dimensional modules in a factory
65	65	that are transported to a residential site for assembly and
66	66	finishing.
67	67	(2) "Modular Residential Dwellings" means a structure
68	68	designed and built for residential use and constructed using a
69	69	modular technique in one or more three dimensional modules in a
70	70	factory, designed, and built utilizing an agency approved method of
71	71	construction that consists of pre-engineered, inspection
72	72	factory-fabricated sections that are transported to a site for
73	73	final assembly and finishing to completion on a permanent
74	74	foundation for residential occupancy by one or more families and
75	75	including the necessary electrical, plumbing, heating,
76	76	ventilation, and other service systems, which is of closed
77	77	construction. Modular residential dwelling does not include mobile
78	78	homes, recreational vehicles, or manufactured homes. A modular
79	79	residential dwelling located in Texas is regulated by the Texas
80	80	Department of Licensing and Regulation.
81	81	(3) "Approved foundation and support system" means,
82	82	for a modular residential dwelling unit, a closed perimeter
83	83	formation consisting of materials such as concrete, mortared
84	84	concrete block, mortared brick, steel, or treated lumber extending
85	85	into the ground.
86	86	(4) "Closed construction" is any residential building
87	87	component, assembly or system manufactured in such a manner that
88	88	all portions cannot readily be inspected at the installation site
89	89	with disassembly, damage to, or destruction thereof.
90	90	(5) "Code compliance certificate" means the
91	91	certificate provided by the manufacturer or builder to the
92	92	Department that warrants that the modular residential dwelling unit
93	93	complies with appropriate safety codes as established by the
94	94	Department. The Codes shall contain the standards and requirements
95	95	for modular residential dwellings so that adequate performance for
96	96	the intended use is made to test the acceptability, provided that
97	97	the structural requirements adopted for modular residential
98	98	dwellings shall be no more stringent than the requirements
99	99	contained in the most recent edition of the International
100	100	Residential Code for One and Two Family Dwellings or the
101	101	International Building Code, as applicable. The Code of Standards
102	102	shall permit the use of new technology, techniques, methods, and
103	103	materials for modular residential dwellings, consistent with
104	104	recognized and accepted codes and standards developed by the
105	105	International Code Council, the National Fire Protection
106	106	Association, and the International Association of Plumbing and
107	107	Mechanical Officials.
108	108	(6) "Approved Inspection Agency" means a person,
109	109	organization, or local government approved by the executive
110	110	director to be especially qualified by reason of facilities,
111	111	personnel, experience, and demonstrated reliability to
112	112	investigate, test, evaluate, and inspect modular residential
113	113	dwelling units, systems, or the component parts of modular
114	114	residential dwelling units together with the plans,
115	115	specifications, and quality control procedures to ensure that such
116	116	units, systems, or component parts are in full compliance with the
117	117	minimum standards adopted by the executive director pursuant to
118	118	this part and to label such units complying with those standards.
119	119	Any person, or any organization whose membership is composed of
120	120	persons, employed by a manufacturer of modular residential dwelling
121	121	units or owning any interest in any such manufacturing business
122	122	shall be ineligible for approval by the executive director to serve
123	123	as an inspection agency.
124	124	(7) "Installation" means the assembly of a modular
125	125	residential dwelling or dwellings onsite and/or the process of
126	126	affixing a modular residential dwelling or dwellings, which may
127	127	include the structural, electrical, mechanical, plumbing, fire
128	128	protection, or other structurally integrated system or systems
129	129	thereof affecting life safety.
130	130	(8) "Installer" means a company or general contractor
131	131	certified by the department that is responsible for design,
132	132	engineering, manufacturing, and installation of the components for
133	133	a modular residential dwelling unit at the final onsite location
134	134	pursuant to the Original Building Manufacturer's (OBM)
135	135	instructions.
136	136	(9) "Person" means any individual, group of
137	137	individuals, association, trust, partnership, limited liability
138	138	company, corporation, person doing business under an assumed name,
139	139	county, municipality, the State of Texas, or any political
140	140	subdivision or department thereof, or any other entity.
141	141	(10) "Complete application" means a submitted plan,
142	142	application for construction of a modular residential dwelling, or
143	143	request for inspection that contains all the information and
144	144	supporting documentation required by the county or municipality to
145	145	enable making the determination as to whether the plan,
146	146	application, or request is in compliance with regulatory
147	147	requirements of this Act and department rules.
148	148	(11) "Certification". The department shall issue an
149	149	authorizing certification to any manufacturer or installer upon
150	150	submittal of an application that is supported by affidavit in
151	151	addition to other evidence which the department deems necessary to
152	152	satisfy itself that the project meets the modular residential
153	153	dwelling criteria and that the project is compliant with this Act
154	154	and thereby approved to manufacture, install, rent, sell, or offer
155	155	for sale a modular residential dwelling.
156	156	(12) "Modular Residential Dwelling Fund" (Fund) means
157	157	a fund established within the department's budget, consisting of
158	158	fines and penalties, subject to appropriation, to be used for
159	159	enforcement of this Act.
160	160	Sec. 1203.005 PREREQUISITES TO SALE OR INSTALLATION. (a) After
161	161	the effective date of the rules adopted pursuant to this part, no
162	162	modular residential dwelling shall be offered for sale, sold, or
163	163	installed in this state unless it is approved and bears the insignia
164	164	of approval of the executive director, the executive director's
165	165	designee, or an approved inspection agency. It is unlawful for any
166	166	person to manufacture, rent, sell, or offer for sale for location
167	167	within this state any modular residential dwelling unless such
168	168	modular residential dwelling complies with this Act and all rules
169	169	adopted by the department.
170	170	(b) All modular residential dwelling units manufactured in
171	171	this state, or intended to be offered for sale, sold, or
172	172	installed in this state, shall be inspected by the
173	173	executive director, the executive director's designee,
174	174	or an approved inspection agency, at the place of
175	175	manufacture of the modular residential dwelling unit.
176	176	(c) No more than 30 days after receipt of both a modular
177	177	residential dwelling unit or project application and
178	178	the affidavit from a qualifying manufacturer,
179	179	installer, or construction contractor, the department
180	180	shall issue the requested authorization or provide
181	181	written notice to the applicant identifying the
182	182	specific plan features that do not comply with the
183	183	applicable regulatory requirements, as well as the
184	184	specific code chapters and sections of such regulatory
185	185	requirements. If the department or any local governing
186	186	authority fails to provide written notice of alleged
187	187	deficiencies within the prescribed 30-day period, the
188	188	application shall be deemed approved as a matter of law
189	189	and the project may proceed.
190	190	(d) Nothing in this chapter prohibits a city, town, village,
191	191	or county from adopting construction standards for
192	192	modular residential dwelling units under local
193	193	ordinances, provided such ordinances are in substantial
194	194	compliance with state requirements and reviewed and
195	195	approved by the department.
196	196	(e) No local standard relating to the construction or
197	197	installation of modular residential dwelling units
198	198	shall be applicable to any modular residential dwelling
199	199	unit subject to this part, unless such standard is
200	200	identical to that set by the department pursuant to this
201	201	Chapter. Any residential modular dwelling unit bearing
202	202	an insignia of approval issued by the executive
203	203	director, the executive director's designee, or an
204	204	approved inspection agency pursuant to this part shall
205	205	be deemed to comply with any local standard relating to
206	206	the construction of modular residential dwelling units.
207	207	(f) Subject to subdivision 1203.005(C), a local government
208	208	may make, and charge a fee for, an inspection of the
209	209	installation of a modular residential dwelling unit.
210	210	Any such fee shall not exceed the amount charged for the
211	211	equivalent inspection on conventionally, onsite, built
212	212	housing.
213	213	(e) Local land use and zoning requirements and flood control
214	214	areas are specifically and entirely reserved to local
215	215	government. Such local requirements and rules that may
216	216	be enacted by a local government must be reasonable and
217	217	uniformly applied and enforced without any distinction
218	218	as to whether a residential dwelling is conventionally,
219	219	onsite constructed or a modular residential dwelling
220	220	unit under this Chapter.
221	221	(f) Modular residential dwelling units bearing an insignia
222	222	of approval issued by the executive director, the
223	223	executive director's designee, or an approved
224	224	inspection agency pursuant to this part shall not be
225	225	modified prior to or during installation, except in
226	226	conformance with the rules of the executive director.
227	227	(g) The department shall promulgate a standard form notice
228	228	and a standard form certificate that shall be used to
229	229	administer this Act. Any local inspectors shall make
230	230	copies of the standard forms available to contractors.
231	231	(h) Upon submission of the certification required by this
232	232	subsection, the local governing authority shall be
233	233	required to accept the inspection without the necessity
234	234	of further inspection or approval, except that the
235	235	local governing authority may perform an inspection at
236	236	any time and may issue a stop-work order for the project
237	237	or any portion thereof as provided by law, after giving
238	238	prompt, written notice to the manufacturer or
239	239	installer, or the contractor of record, if the work is
240	240	found to be in violation of code requirements.
241	241	(i) If a local governing authority issues a stop-work order,
242	242	the local official shall be available to meet with the
243	243	person responsible for manufacturing, installing, or
244	244	constructing the modular residential dwelling unit
245	245	within two business days to resolve any dispute.
246	246	Sec. 1203.006 POWERS AND DUTIES OF THE EXECUTIVE DIRECTOR.
247	247	(A) The executive director shall enforce and administer this part.
248	248	(1) The executive director shall promulgate such rules
249	249	and regulations as the executive director finds necessary to
250	250	protect health and safety of the public against dangers inherent in
251	251	the use of substandard construction and unsafe plumbing,
252	252	electrical, and heating systems, and other appropriate regulations
253	253	to carry out this part, in accordance with the Texas Administrative
254	254	Procedures Act found in Title 10, Chapter 2001, Texas Government
255	255	Code.
256	256	(2) The executive director may impose an
257	257	administrative penalty against any person who violates this Act, or
258	258	any rule adopted under this Act, or who violates any determination
259	259	or order of the department under this Act. The department shall
260	260	establish violations and penalties by rule, with each day's
261	261	violation constituting a separate offense. The maximum penalty
262	262	shall be $1,000 per day per violation. All penalties collected
263	263	under this section shall be deposited into the "Modular Residential
264	264	Dwelling Fund". Subject to appropriation, moneys in the Fund shall
265	265	be used for enforcement of this Act.
266	266	(3) The executive director is authorized to require
267	267	licenses of manufacturers and any other person involved in the
268	268	construction, installation, sale, or lease of a modular residential
269	269	dwelling unit, and to set reasonable fees and conditions for such
270	270	licenses.
271	271	(4) The executive director may also establish record
272	272	keeping requirements from manufactures and installers.
273	273	(B) In addition to any other powers conferred on the executive
274	274	director by law, the executive director is authorized to perform
275	275	necessary inspection of manufacturing facilities and products to
276	276	implement the provisions of this Act, including:
277	277	(1) Prescribe all forms required to be filed pursuant to
278	278	this part;
279	279	(2) Establish a schedule of fees to pay the cost incurred by
280	280	the department for the administration and uniform
281	281	enforcement of the codes consistent with rules,
282	282	regulations, and interpretations promulgated by the
283	283	department;
284	284	(3) Appoint and employ such qualified personnel as are
285	285	necessary to carry out the duties imposed upon the
286	286	executive director by this part;
287	287	(4) Delegate inspection authority under this part, by
288	288	contract or other agreement, to local governments,
289	289	private persons, corporations, associations, and
290	290	agencies of other states, as an approved inspection
291	291	agency; and
292	292	(5) After notice and opportunity for hearing to an applicant
293	293	or insignia holder, may deny, suspend, or revoke a
294	294	certification or asses a civil penalty not to exceed
295	295	five thousand dollars ($5,000) for each violation of
296	296	this Act in any case where a finding of substantial
297	297	failure to comply with the provisions of this Act or the
298	298	minimum standards, rules, and regulations adopted by
299	299	the department under this Act.
300	300	(6) All final administrative or civil penalty decisions by
301	301	the executive director shall be subject to judicial
302	302	review.
303	303	(C) If a modular residential dwelling is manufactured, sold, or
304	304	installed in violation of this part, the executive director may
305	305	require:
306	306	(1) The manufacturer or installer in violation of this part
307	307	to provide the executive director with as-built plans
308	308	to be evaluated and approved by the executive director
309	309	for compliance with state building codes;
310	310	(2) The manufacturer or installer in violation of this part
311	311	to make available for inspection any components and
312	312	concealed spaces of the structure and to repair any
313	313	damages made when making the components and concealed
314	314	spaces available for inspection;
315	315	(3) Inspections to be made during the remanufacturing
316	316	process and may require that closed construction or
317	317	concealed spaces be opened or made accessible as
318	318	necessary to determine that components comply with
319	319	state building codes; and
320	320	(4) The manufacturer or installer to be responsible for all
321	321	costs or expenses incurred pursuant to this subsection
322	322	(c).
323	323	Sec. 1203.007 RECIPROCITY - INTERSTATE AGREEMENTS. If the
324	324	executive director determines that the minimum standards for
325	325	construction and inspection of modular residential dwelling units
326	326	prescribed by statute or rule of another state are at least equal to
327	327	rules prescribed under this part and that such standards are
328	328	enforced by such other state, the executive director may negotiate
329	329	and enter into reciprocal agreements with appropriate officials of
330	330	other states.
331	331	SECTION 2. This Act does not make an appropriation. A provision in
332	332	this Act that creates a new governmental program, creates a new
333	333	entitlement, or imposes a new duty on a governmental entity is not
334	334	mandatory during a fiscal period for which the legislature has not
335	335	made a specific appropriation to implement the provision.
336	336	SECTION 3. (a) As soon as practicable after the effective
337	337	date of this Act, the executive director of the Texas Department of
338	338	Licensing and Regulation shall adopt rules as necessary to
339	339	implement the changes in law made by this Act.
340	340	(b) As soon as practicable after the effective date of this
341	341	Act, the Texas Commission of Licensing and Regulation shall adopt
342	342	rules necessary to implement the changes in law made by Chapter
343	343	1203, as added by this Act.
344	344	SECTION 40. This Act takes effect immediately if it
345	345	receives a vote of two-thirds of all the members elected to each
346	346	house, as provided by Section 39, Article III, Texas Constitution.
347	347	If this Act does not receive the vote necessary for immediate
348	348	effect, this Act takes effect September 1, 2023.