Revision: Dec. 15, 2009, midnight
HB 1627-FN – AS INTRODUCED
2010 SESSION
05/10
HOUSE BILL 1627-FN
AN ACT relative to the regulation of manufactured housing and modular buildings.
SPONSORS: Rep. Taylor, Graf 2; Rep. Buco, Carr 1
COMMITTEE: Commerce and Consumer Affairs
This bill:
I. Requires the department of safety to certify manufactures, dealer/builders, and installers of modular buildings.
II. Revises the department’s rulemaking and enforcement authority regarding modular buildings.
III. Revises the definition of manufactured housing as well as the responsibilities and membership of the manufactured housing installation standards board.
IV. Transfers enforcement and rulemaking authority for manufactured housing installation standards from the board to the department of safety.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
10-2368
05/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Ten
AN ACT relative to the regulation of manufactured housing and modular buildings.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Paragraph; Definition of Dealer/Builder Added. Amend RSA 205-C:1 by inserting after paragraph V-a to read as follows:
V-b. “Dealer/Builder” means any person engaged in the retail selling or offering for sale, leasing, brokering, distribution and/or installation, primarily to a person who purchases modular buildings for residential or commercial use.
2 Definition of Installer and Installation. RSA 205-C:1, VII is repealed and reenacted to read as follows:
VII. “Installation” means the assembly of modular buildings on site and the process of affixing modular buildings or building components to the foundation at the building site. Installation shall include installing basement lally columns, assembling and fastening structural components, including the manufacturer supplied roof system, and making the assembled building watertight.
VII-a. “Installer” means a person engaged in the business of installing or servicing state certified modular buildings.
3 Definition of Modular Building. Amend RSA 205-C:1, XI to read as follows:
XI. “Modular building” means any building of closed construction, which is made or assembled in manufacturing facilities off the building site, for installation, or assembly and installation, on the building site. This definition includes prefabricated homes as defined under RSA 205-B:1 and presite built housing as defined under RSA 674:31-a. This definition shall not be construed to include any structure labeled in accordance with the Federal Manufactured Housing Construction and Safety Standards Act of 1974, nor shall it include any recreational vehicle or park trailer as defined in American National Standards Institute A119.2, Standard for Recreational Vehicles, or A119.5, Standard for Park Trailers, or any building type not subject to the requirements of nationally recognized model building codes.
4 Definition of Person. RSA 205-C:1, XIII is repealed and reenacted to read as follows:
XIII. “Person” means an individual, partnership, association, trust, limited liability company, corporation, or any other legal entity or combination thereof.
5 Modular Building Standard. Amend RSA 205-C:2, I and II to read as follows:
I. All modular buildings and building components ordered [on or after the date one year] 90 or more calendar days after the effective date of RSA 155-A:2 shall comply with the modular building code and the state fire code.
II. All modular buildings and building components bearing a label of certification pursuant to the requirements of this chapter shall be deemed by local enforcement agencies as meeting the modular building code, however, such certification shall not be deemed to preempt enforcement of any state or local standards governing [installation or] work performed on the building site, including but not limited to site grading, foundations, driveways, on-site water and sewer systems or connections to off-site systems, and electrical line connections to the power source.
6 Certification of Modular Building, Installers, Third Party Inspectors, Manufacturers, and Dealer/Builders Required. RSA 205-C:3 is repealed and reenacted to read as follows:
205-C:3 Certification Required.
I. No person shall sell, lease, or install for use in this state any modular building or building component manufactured, unless such building or building component bears a label of certification issued by the department.
II. No person shall engage in the practice of third party inspection of any modular building or building component for use in this state unless the person has been certified by the department.
III. No person shall manufacture for use in this state any modular building or building component, unless the person has been certified by the department.
IV. No person shall engage in the retail selling or offering for sale, leasing, brokering, distribution primarily to a person who purchases these buildings for residential or commercial use and/or installation, unless the person has been certified by the department.
7 Modular Building Standards, Rulemaking. Amend RSA 205-C:4, I to read as follows:
I. Requirements for [approval] the certification of third party inspection agencies by the department.
8 Modular Building Standards; Rulemaking. RSA 205-C:4, IV-VII are repealed and reenacted to read as follows:
IV. Investigation of complaints of noncompliance by certified manufacturers, certified third party inspection agencies, certified dealer/builders, and certified installers.
V. Enforcement procedures, including standards for revocation and suspension of certified manufacturers, certified third party inspection agencies, certified dealer/builders, and certified installers.
VI. Imposition and collection of fees, administrative fines, and penalties for this chapter.
VII. Requirements for financial responsibility by proof of products liability and completed operations liability insurance and workers’ compensation insurance for all certified manufacturers, certified third party inspection agencies, certified dealer/builders, and certified installers.
VIII. Requirements for installation seals to be attached to the modular building by the dealer/builder or installer upon completion of the installation.
IX. Requirements for the certification of dealer/builders and installers of modular buildings, which shall include being at least 18 years of age, having 2 years construction experience, completing 8 hours of state approved training on modular housing construction and the state building and fire codes, and showing proof of financial responsibility required by this chapter.
X. Requirements for employees or subcontractors working under the direct supervision of a certified dealer/builder or installer, who are not required to be certified under this chapter.
XI. The qualifications of certification applicants and renewal applicants, including minimum education and continuing education requirements under this chapter.
XII. Qualifications for third party training for certified dealer/builders and installers.
XIII. The establishment of fees required under this chapter.
XIV. Ethical and professional standards required to be met by each holder of a certification to practice under this chapter and how disciplinary actions by the department shall be implemented for violations of these standards.
XV. The establishment of complaint procedures, including investigations and expedited hearings procedures consistent with requirements for due process.
XVI. The establishment of a program for the timely resolution of disputes between manufacturers, dealer/builders, and installers of modular housing regarding the correction or repair of defects in modular buildings that are reported to the department. Nothing in this chapter shall preclude an aggrieved party from seeking redress under RSA 358-A, the consumer protection act, for any unfair or deceptive trade practice committed relative to the selling, leasing, brokering, distributing, or installation of modular housing.
9 Modular Building; Fees. RSA 205-C:6 is repealed and reenacted to read as follows:
205-C:6 Fees. The commissioner shall by rule establish fees to defray the costs of administering the certification programs established under this chapter. Such rules shall specify fees for the certification of third party inspection agencies by the department; certification of manufacturing facilities by approved third party inspection agencies; certification of modular buildings and building components by approved third party inspection agencies; application; educational classes; complaint filing; installation seal; certification of dealer/builder; certification of installers; renewal, late, and reinstatement of certification fees. All fees collected by the department shall be deposited into the fire standards and training and emergency medical services fund, established by RSA 21-P:12-d.
10 Modular Building; Enforcement. Amend RSA 205-C:7, III to read as follows:
III. Where the department finds that [an approved] a certified third party inspection agency, manufacturer, modular building, or building component does not conform to the requirements of this chapter or applicable rules, the department may suspend or revoke its certification, including any certification granted through an approved third party inspection agency acting on behalf of the department. Under no circumstances shall the offender be eligible for reinstatement until the department has confirmed that the agency, manufacturer, system, building, or component in question is in full compliance with the requirements of this chapter and applicable rules.
11 New Paragraphs; Modular Building Standards; Enforcement. Amend RSA 205-C:7 by inserting after paragraph V the following new paragraphs:
VI. Where the department finds that a certified dealer/builder or installer does not conform to the requirements of this chapter or applicable rules, the department may suspend or revoke the certification or impose probation, and the department may asses an administrative fine not to exceed $2,000.
VII. Whoever shall perform work of a certified dealer/builder or installer pursuant to the chapter without being certified by the department shall be guilty of a violation if a natural person or a misdemeanor if any other person, and the department may asses an administrative fine not to exceed $5,000.
12 Manufactured Housing; Definition of Installation. Amend RSA 205-D:1, VII to read as follows:
VII. “Installation” means the placement of a manufactured house on a permanent or temporary system. This term includes, but is not limited to, supporting, restraining, blocking, leveling, securing, anchoring, and connection of plumbing, heating, cooling, and electrical systems and the multiple or expandable sections of the house. Installation shall include site preparation, such as, but not limited to, drainage work, site excavation, placement of concrete forms and concrete formwork.
13 Definition of Manufactured Housing. RSA 205-D:1, XI is repealed and reenacted to read as follows:
XI “Manufactured housing” means a structural unit or units designed to be used as a dwelling or dwellings and constructed in a manufacturing facility and then transported by the use of its own chassis or placement on an independent chassis to a building site. The term includes any type of building that is constructed at a manufacturing facility and then transported to a building site where it is utilized for housing and that may be purchased, sold, offered for sale or brokered by a licensee in the interim. For purposes of this chapter, 2 types of manufactured housing are included:
(a) HUD-code homes, which are those units constructed after June 15, 1976 that the manufacturer certifies are constructed in compliance with the HUD standard, meaning structures, transportable in one or more sections that, in the traveling mode, are 8 body feet or more in width and 40 body feet or more in length or, when erected on site, are 320 or more square feet, and are built on a permanent chassis and designed to be used as dwellings, with or without permanent foundations, when connected to the required utilities, including the plumbing, heating, air-conditioning, and electrical systems contained therein; except that such term shall include any structure that meets all the requirements of this paragraph except the size requirements and with respect to which the manufacturer voluntarily files a certification required by the Secretary of the United States Department of Housing and Urban Development and complies with the standards established under the National Manufactured Housing Construction and Safety Standards Act of 1974, 42 U.S.C. Section 5401, et seq;
(b) Pre-HUD-code homes, which are those units constructed prior to June 15, 1976, meaning structures, transportable in one or more sections, that are 8 body feet or more in width and are 32 body feet or more in length and are built on a permanent chassis and designed to be used as dwellings, with or without permanent foundations, when connected to the required utilities, including the plumbing, heating, air-conditioning, or electrical systems contained therein.
14 Installation Standards Board Membership. RSA 205-D:2, I(a) is repealed and reenacted to read as follows:
(a) Two public members, one of whom shall be a tenant or owner of a manufactured home and one of whom shall have no connection to the manufactured housing industry.
15 Manufactured Housing Installation Standards; Duties of the Installation Standards Board. RSA 205-D:3 is repealed and reenacted to read as follows:
205-D:3 Duties of the Board. The duties of the board shall be to:
I. License and adequately train installers of manufactured housing, defined in RSA 205-D:1, XI, in order to ensure the proper performance of the house and protect the safety and welfare of the public.
II. Serve as an information clearinghouse for those within the manufactured housing industry regarding state installation and construction standards for manufactured housing.
16 New Section; Manufactured Housing Installation Standards; Duties of the Department. Amend RSA 205-D by inserting after section 3 the following new section:
205-D:3-a Duties of the Department. The department shall:
I. Assure compliance with the Federal Manufactured Housing Construction and Safety Standard, including compliance with the standard as amended by the Manufactured Housing Improvement Act of 2000, Public Law 106-569.
II. Establish uniform manufactured housing installation standards in order to protect the quality, durability, safety, and affordability of manufactured housing in this state.
III. Ensure compliance with state installation standards by conducting appropriate inspections of the installation of manufactured housing.
IV. Provide a fair and effective recourse for consumers relative to installation standards; and provide a dispute resolution program for timely resolution of disputes between manufacturers, retailers, and installers of manufactured houses regarding responsibility for, and issuance of appropriate orders for, the correction or repair of defects in manufactured houses that are reported during the one year period beginning on the date of installation.
17 Manufactured Housing Installation Standards; Exemptions. Amend RSA 205-D:4, II(a) to read as follows:
(a) Sites that are already occupied as of the date of the enactment of this chapter, provided, however, that if a manufactured home is removed from an existing site and replaced with another manufactured home, the requirements of this chapter shall apply to the installation of the new manufactured home.
18 Manufactured Housing Installation Standards; Complaints Investigated by the Department. Amend RSA 205-D:6 to read as follows:
205-D:6 Complaints.
I. A consumer, park owner, manufacturer, retailer, or installer of manufactured housing aggrieved or having a dispute regarding the installation of a manufactured house under the provisions of this chapter may file a complaint with the [board] department.
II. All complaints shall be in writing and reviewed by the [board] department.
III. To be accepted for filing, complaints shall be filed on a form provided by the [board] department.
IV. All complaints shall be filed with the [board] department within one year of the date of occupancy.
V. If the [board] department determines that a complaint requires further investigation, it shall be acted upon within 60 days. The [board] department shall establish procedures for expedited hearings on complaints where the circumstances set forth in the complaint warrant it.
VI. Upon confirmation that a complaint complies with this section, the [board] department shall schedule a hearing on the complaint in accordance with the provisions of RSA 541-A.
VII. [Disposition of all complaints shall be voted on by the board.] Where the department finds that a manufacturer, retailer, or installer does not conform to the requirements of this chapter or applicable rules, the department may assess an administrative fine not to exceed $2,000 and may order appropriate corrective or remedial action. The remedy provided under this section shall be in addition to any other remedy available to the aggrieved party at law or in equity.
19 Manufactured Housing Fees. Amend RSA 205-D:12 to read as follows:
205-D:12 Fees.
I. The [board] department may establish, pursuant to RSA 541-A, fees for licensure, license renewal, training, inspections conducted by the state fire marshal, [and] the manufacturer’s warranty seal, and the installer’s warranty seal. [The fees established by the board shall be sufficient to produce estimated revenues equal to 125 percent of the direct operating expenses of the board for the previous fiscal year.] The fee for the manufacturer’s warranty seal or the installer’s warranty seal shall not exceed $50. [If the fees collected through licensure, license renewal, training, and the manufacturer’s warranty seal are not sufficient to produce revenue to carry out the responsibilities of the board and the responsibilities of the state fire marshal in conducting inspections under this chapter, then the board shall] The department may establish a fee for inspection under RSA 205-D:5 which shall not exceed $100.
II. [The board shall establish fees for the first year of its operation based upon its estimate of expenses necessary to carry out the provisions of this chapter during that fiscal year.] The comptroller is authorized upon request of the department of safety to establish necessary budgetary components and operating accounts in the department and to transfer revenues received from the fees in this section and in RSA 205-D:11 to the department to carry out the responsibilities of the board and the responsibilities of the state fire marshal in conducting inspections under this chapter.
III. If an inspection is conducted by a local enforcement agency, the local enforcement agency may charge fees established pursuant to RSA 674:51, III(d).
20 Manufactured Housing Warranty Seals. Amend RSA 205-D:17 to read as follows:
205-D:17 Warranty Seal.
I. Before a manufactured house may be installed in this state, the manufacturer shall first obtain from the board a manufacturer’s warranty seal and attach the seal to the manufactured house.
II. Before manufactured housing may be installed in this state the installer shall obtain from the department an installer’s warranty seal and attach the seal to the manufactured housing.
21 New Section; Notice of Installation Requirements. Amend RSA 205-D:17 by inserting after section 17 the following new section:
205-D:17-a Notice of Installation. Each manufacturer and installer doing business in this state shall notify the department of the number of installations completed during the month. The notice shall include the location of each unit of manufactured housing, the owner of each unit at the time of installation, the type or model of the unit, the manufacturer of the unit, and the name and address of the manufacturer, retailer, and installer. The information shall be submitted within 10 days after the end of each month in the form and manner prescribed by the commissioner by rules adopted under RSA 541-A.
22 Manufactured Housing Rulemaking Authority. Amend the introductory paragraph of RSA 205-D:20 to read as follows:
205-D:20 Rulemaking Authority. [With the approval of the commissioner, the board shall be authorized, pursuant to RSA 541-A, to] The department shall adopt rules relative to:
23 Repeal. RSA 205-C:5, relative to interagency coordination of modular building installation standards, is repealed.
24 Effective Date. This act shall take effect January 1, 2011.
LBAO
10-2368
12/14/09
HB 1627-FN - FISCAL NOTE
AN ACT relative to the regulation of manufactured housing and modular buildings.
FISCAL IMPACT:
The Department of Safety states this bill may increase state restricted revenue and expenditures by an indeterminable amount in FY 2011 and each year thereafter. This bill would have no fiscal impact on county and local revenue and expenditures.
METHODOLOGY:
The Department of Safety states this bill would require the Department to certify manufacturers, dealer/builders, and installers of modular homes. The Division of Fire Safety is unable to estimate the impact on state restricted revenue or expenditures at this time. This bill will have no fiscal impact on county and local revenue and expenditures.