2024 -- S 2800 | |
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LC004392 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2024 | |
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A N A C T | |
RELATING TO HEALTH AND SAFETY -- INTERSTATE COMPACT ON | |
INDUSTRIALIZED/MODULAR BUILDINGS | |
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Introduced By: Senator V. Susan Sosnowski | |
Date Introduced: March 22, 2024 | |
Referred To: Senate Commerce | |
(Dept. of Business Regulation) | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Section 23-27.4-1 of the General Laws in Chapter 23-27.4 entitled "Interstate |
2 | Compact on Industrialized/Modular Buildings" is hereby repealed. |
3 | 23-27.4-1. Compact entered into. |
4 | The Interstate Compact on Industrialized/Modular Buildings is enacted into law and |
5 | entered into by the State of Rhode Island with all other jurisdictions legally joining therein in the |
6 | form substantially as follows: |
7 | ARTICLE I |
8 | FINDINGS AND DECLARATIONS OF POLICY |
9 | (1) The compacting states find that: |
10 | Industrialized/modular buildings are constructed in factories in the various states and are a |
11 | growing segment of the nation’s affordable housing and commercial building stock. |
12 | The regulation of industrialized/modular buildings varies from state to state and locality to |
13 | locality, which creates confusion and burdens state and local building officials and the |
14 | industrialized/modular building industry. Regulation by multiple jurisdictions imposes additional |
15 | costs, which are ultimately borne by the owners and users of industrialized/modular buildings, |
16 | restricts market access and discourages the development and incorporation of new technologies. |
17 | (2) It is the policy of each of the compacting states to: |
18 | Provide the states which regulate the design and construction of industrialized/modular |
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1 | buildings with a program to coordinate and uniformly adopt and administer the states’ rules and |
2 | regulations for such buildings, all in a manner to assure interstate reciprocity. |
3 | Provide to the United States Congress assurances that would preclude the need for a |
4 | voluntary preemptive federal regulatory system for modular housing, as outlined in Section 572 of |
5 | the Housing and Community Development Act of 1987, including development of model standards |
6 | for modular housing construction, such that design and performance will insure quality, durability |
7 | safety; will be in accordance with life-cycle cost-effective energy conservation standards; all to |
8 | promote the lowest total construction and operating costs over the life of such housing. |
9 | ARTICLE II |
10 | DEFINITIONS |
11 | As used in this compact, unless the context clearly requires otherwise: |
12 | (1) “Commission” means the Interstate Industrialized/Modular Buildings Commission. |
13 | (2) “Industrialized/modular building” means any building which is of closed construction, |
14 | i.e. constructed in such a manner that concealed parts or processes of manufacture cannot be |
15 | inspected at the site, without disassembly, damage or destruction, and which is made or assembled |
16 | in manufacturing facilities, off the building site, for installation, or assembly and installation, on |
17 | the building site. “Industrialized/modular building” includes, but is not limited to, modular housing |
18 | which is factory-built single-family and multi-family housing (including closed wall panelized |
19 | housing) and other modular, nonresidential buildings. “Industrialized/modular building” does not |
20 | include any structure subject to the requirements of the National Manufactured Home Construction |
21 | and Safety Standards Act of 1974. |
22 | (3) “State” means a state of the United States, territory or possession of the United States, |
23 | the District of Columbia, or the Commonwealth of Puerto Rico. |
24 | (4) “Uniform administrative procedures” means the procedures adopted by the |
25 | Commission (after consideration of any recommendations from the rules development committee) |
26 | which state and local officials, and other parties, in one state, will utilize to assure state and local |
27 | officials, and other parties, in other states, of the substantial compliance of industrialized/modular |
28 | building construction with the construction standard of requirements of such other states; to assess |
29 | the adequacy of building systems; and to verify and assure the competency and performance of |
30 | evaluation and inspection agencies. |
31 | (5) “Model rules and regulations for industrialized/modular buildings” means the |
32 | construction standards adopted by the Commission (after consideration of any recommendations |
33 | from the rules development committee) which govern the design, manufacture, handling, storage, |
34 | delivery and installation of industrialized/modular buildings and building components. The |
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1 | construction standards and any amendments thereof shall conform insofar as practicable to model |
2 | building codes and referenced standards generally accepted and in use throughout the United States. |
3 | (6) “Interim reciprocal agreement” means a formal reciprocal agreement between a |
4 | noncompacting state wherein the noncompacting state agrees that labels evidencing compliance |
5 | with the model rules and regulations for industrialized/modular buildings, as authorized in Article |
6 | VIII, item No. 14, shall be accepted by the state and its subdivisions to permit installation and use |
7 | of industrialized/modular buildings. Further, the noncompacting state agrees that by legislation or |
8 | regulation, and appropriate enforcement by uniform administrative procedures, the noncompacting |
9 | state requires all industrialized/modular building manufacturers within that state to comply with |
10 | the model rules and regulations for industrialized/modular buildings. |
11 | ARTICLE III |
12 | CREATION OF COMMISSION |
13 | The compacting states hereby create the Interstate Industrialized/Modular Buildings |
14 | Commission, hereinafter called commission. Said commission shall be a body corporate of each |
15 | compacting state and an agency thereof. The commission shall have all the powers and duties set |
16 | forth herein and such additional powers as may be conferred upon it by subsequent action of the |
17 | respective legislatures of the compacting states. |
18 | ARTICLE IV |
19 | SELECTION OF COMMISSIONERS |
20 | The commission shall be selected as follows: |
21 | As each state becomes a compacting state, one resident shall be appointed as commissioner. |
22 | The commissioner shall be selected by the governor of the compacting state, being designated from |
23 | the state agency charged with regulating industrialized/modular buildings or, if such state agency |
24 | does not exist, being designated from among those building officials with the most appropriate |
25 | responsibilities in the state. The commissioner may designate another official as an alternate to act |
26 | on behalf of the commissioner at commission meetings which the commissioner is unable to attend. |
27 | Each state commissioner shall be appointed, suspended or removed and shall serve subject to and |
28 | in accordance with the laws of the state which said commissioner represents; and each vacancy |
29 | occurring shall be filled in accordance with the laws of the state wherein the vacancy exists. |
30 | When three state commissioners have been appointed in the manner described, those state |
31 | commissioners shall select one additional commissioner who shall be a representative of |
32 | manufacturers industrial or commercial use of industrialized/modular buildings. |
33 | When six state commissioners have been appointed, the state commissioners shall select a |
34 | third additional commissioner who shall be a representative of manufacturers of residential-use |
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1 | industrialized/modular buildings. |
2 | With each addition of three state commissioners, the state commissioners shall appoint one |
3 | additional manufacturing representative commissioner, alternating between a representative of |
4 | manufacturers of industrial-or commercial-use industrialized/modular buildings and residential-use |
5 | industrialized/modular buildings. With each addition of twelve state commissioners, the state |
6 | commissioners shall appoint one additional commissioner, who represents consumers of |
7 | industrialized/modular buildings. |
8 | The subsequent appointment of all representative commissioners shall be in this same |
9 | manner, maintaining a ratio of manufacturer representatives to consumer representatives of four to |
10 | one. |
11 | In the event states withdraw from the compact or, for any other reason, the number of state |
12 | commissioners is reduced, the state commissioners shall remove the last added representative |
13 | commissioner as necessary to maintain a balance of state commissioners to representative |
14 | commissioners in the same proportion as the appointments outlined herein. |
15 | Upon a majority vote of the state commissioners, the state commissioners may remove, fill |
16 | a vacancy created by or replace any representative commissioner, provided that any replacement is |
17 | made from the same representative group and a three to one ratio is maintained. |
18 | Unless provided otherwise, the representative commissioners have the same authority and |
19 | responsibility as the state commissioners. In addition, the commission may have as a member one |
20 | commissioner representing the United States government if federal law authorizes such |
21 | representation. Such commissioner shall not vote on matters before the commission. Such |
22 | commissioner shall be appointed by the President of the United States, or in such other manner as |
23 | may be provided by Congress. |
24 | ARTICLE V |
25 | VOTING |
26 | Each commissioner (except the commissioner representing the United States government) |
27 | shall be entitled to one vote on the commission. A majority of the commissioners shall constitute a |
28 | quorum for the transaction of business. Any business transacted at any meeting of the commission |
29 | must be by affirmative vote of a majority of the quorum present and voting. |
30 | ARTICLE VI |
31 | ORGANIZATION AND MANAGEMENT |
32 | The commission shall elect annually, from among its members, a Chairperson, a Vice |
33 | Chairperson and a Treasurer. The commission shall also select a Secretariat, which shall provide |
34 | an individual who shall serve as Secretary of the commission. The commission shall fix and |
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1 | determine the duties and compensation of the Secretariat. |
2 | The commissioners shall serve without compensation, but shall be reimbursed for their |
3 | actual and necessary expenses from the funds of the commission. |
4 | The commission shall adopt a seal. |
5 | The commission shall adopt bylaws, rules, and regulations for the conduct of its business, |
6 | and shall have the power to amend and rescind these bylaws, rules the regulations. |
7 | The commission shall establish and maintain an office at the same location as the office |
8 | maintained by the Secretariat for the transaction of its business and may meet at any time, but in |
9 | any event must meet at least once a year. The chairman may call additional meetings and upon the |
10 | request of a majority of the commissioners of three or more of the compacting states shall call an |
11 | additional meeting. |
12 | The commission annually shall make the governor and legislature of each compacting state |
13 | a report covering its activities for the preceding year. |
14 | Any donation or grant accepted by the commission or services borrowed shall be reported |
15 | in the annual report of the commission and shall include the nature, amount and conditions, if any, |
16 | of the donation, gift or services borrowed and the identity of the donor or lender. |
17 | The commission may make additional reports as it may deem desirable. |
18 | ARTICLE VII |
19 | COMMITTEES |
20 | The commission will establish such committees as it deems necessary, including, but not |
21 | limited to, the following: |
22 | (1) An executive committee which functions when the full commission is not meeting, as |
23 | provided in the bylaws of the commission. The executive committee will ensure that proper |
24 | procedures are followed in implementing the commission’s programs and in carrying out the |
25 | activities of the compact. |
26 | The executive committee shall be elected by vote of the commission. It shall be comprised |
27 | of at least three and no more than nine commissioners, selected from those commissioners who are |
28 | representatives of the governor of their respective state. |
29 | (2) A rules development committee appointed by the commission. |
30 | The Committee shall be consensus-based and consist of not less than 7 nor more than 21 |
31 | members. |
32 | Committee members will include state building regulatory officials; manufacturers of |
33 | industrialized/modular buildings; private, third-party inspection agencies; and consumers. This |
34 | committee may recommend procedures which state and local officials, and other parties, in one |
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1 | state, may utilize to assure state and local officials, and in other parties, in other states, of the |
2 | substantial compliance of industrialized/modular building construction with the construction |
3 | standard requirements of such other states; to assess the adequacy of building systems; and to verify |
4 | and assure the competency and performance of evaluation and inspection agencies. This committee |
5 | may also recommend construction standards for the design, manufacture, handling, storage, |
6 | delivery and installation of industrialized/modular buildings and building components. The |
7 | committee will submit its recommendations to the commission, for the commission’s consideration |
8 | in adopting and amending the uniform administrative procedures and the model rules and |
9 | regulations for industrialized/modular buildings. The committee may also review the regulatory |
10 | programs of the compacting states to determine whether those programs are consistent with the |
11 | uniform administrative procedures or the model rules and regulations for industrialized/modular |
12 | buildings and may make recommendations concerning the states’ programs to the commission. In |
13 | carrying out its functions, the rules committee may conduct public hearings and otherwise solicit |
14 | public input and comment. |
15 | (3) Any other advisory, coordinating or technical committees, membership on which may |
16 | include private persons, public officials, associations or organizations. Such committees may |
17 | consider any matter of concern to the commission. |
18 | (4) Such additional committees as the commission’s bylaws may provide. |
19 | ARTICLE VIII |
20 | POWER AND AUTHORITY |
21 | In addition to the powers conferred elsewhere in this compact, the commission shall have |
22 | power to: |
23 | (1) Collect, analyze and disseminate information relating to industrialized/modular |
24 | buildings. |
25 | (2) Undertake studies of existing laws, codes, rules and regulations, and administrative |
26 | practices of the states relating to industrialized/modular buildings. |
27 | (3) Assist and support committees and organizations which promulgate, maintain and |
28 | update model codes or recommendations for uniform administrative procedures or model rules and |
29 | regulations for industrialized/modular buildings. |
30 | (4) Adopt and amend uniform administrative procedures and model rules and regulations |
31 | for industrialized/modular buildings. |
32 | (5) Make recommendations to compacting states for the purpose of bringing such states’ |
33 | laws, codes, rules and regulations and administrative practices into conformance with the uniform |
34 | administrative practices into conformance with the uniform administrative procedures or the model |
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1 | rules and regulations for industrialized/modular buildings, provided that such recommendations |
2 | shall be made to the appropriate state agency with due consideration for the desirability of |
3 | uniformity while also giving appropriate consideration to special circumstances which may justify |
4 | variations necessary to meet unique local conditions. |
5 | (6) Assist and support the compacting states with monitoring of plan review programs and |
6 | inspection programs, which will assure that the compacting states have the benefit of uniform |
7 | industrialized/modular building plan review and inspection programs. |
8 | (7) Assist and support organizations which train state and local government and other |
9 | program personnel in the use of uniform industrialized/modular building plan review and |
10 | inspection programs. |
11 | (8) Encourage and promote coordination of state regulatory action relating to |
12 | manufacturers, public or private inspection programs. |
13 | (9) Create and sell labels to be affixed to industrialized/modular building units, constructed |
14 | in or regulated by compacting states, where such labels will evidence compliance with the model |
15 | rules and regulations for industrialized/modular buildings, enforced in accordance with the uniform |
16 | administrative procedures. The commission may use receipts from the sale of labels to help defray |
17 | the operating expenses of the commission. |
18 | (10) Assist and support compacting states’ investigations into and resolutions of consumer |
19 | complaints which relate to industrialized/modular buildings constructed in one compacting state |
20 | and sited in another compacting state. |
21 | (11) Borrow, accept or contract for the services of personnel from any state or the United |
22 | States or any subdivision or agency thereof, from any interstate agency, or from any institution, |
23 | association, person, firm or corporation. |
24 | (12) Accept for any of its purposes and functions under this compact any and all donations, |
25 | and grants of money, equipment, supplies, materials and services (conditional or otherwise) from |
26 | any state or the United States or any subdivision or agency thereof, from any interstate agency, or |
27 | from any institution, person, firm or corporation, and may receive, utilize and dispose of the same. |
28 | (13) Establish and maintain such facilities as may be necessary for the transacting of its |
29 | business. |
30 | The commission may acquire, hold, and convey real and personal property and any interest |
31 | therein. |
32 | (14) Enter into contracts and agreements, including but not limited to, interim reciprocal |
33 | agreements with noncompacting states. |
34 | ARTICLE IX |
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1 | FINANCE |
2 | The commission shall submit to the governor or designated officer or officers of each |
3 | compacting state a budget of its estimated expenditures for such period as may be required by the |
4 | laws of that state for presentation to the legislature thereof. |
5 | Each of the commission’s budgets of estimated expenditures shall contain specific |
6 | recommendations of the amounts to be appropriated by each of the compacting states. Said state |
7 | appropriation shall be paid from fees received from the manufacturers and third party agents and |
8 | deposited in the state building commissioner’s restricted receipt account. The total amount of |
9 | appropriations requested under any such budget shall be apportioned among the compacting states |
10 | as follows: one-half in equal shares; one-fourth among the compacting states in accordance with |
11 | the ratio of their populations to the total population of the compacting states, based on the last |
12 | decennial federal census; and one-fourth among the compacting states in accordance with the ratio |
13 | of industrialized/modular building units manufactured in each state to the total of all units |
14 | manufactured in all of the compacting states. |
15 | The commission shall not pledge the credit of any compacting state. The commission may |
16 | meet any of its obligations in whole or in part with funds available to it by donations, grants, or |
17 | sale of labels: provided that the commission takes specific action setting aside such funds prior to |
18 | incurring any obligation to be met in whole or in part in such manner. |
19 | Except where the commission makes use of funds available to it by donations, grants or |
20 | sale of labels, the commission shall not incur any obligation prior to the allotment of funds by the |
21 | compacting states adequate to meet the same. |
22 | The commission shall keep accurate accounts of all receipts and disbursements. The |
23 | receipts and disbursements of the commission shall be subject to the audit and accounting |
24 | procedures established under its bylaws. All receipts and disbursement of funds handled by the |
25 | commission shall be audited yearly by a certified or licensed public accountant and the report of |
26 | the audit shall be included in and become part of the annual report of the commission. |
27 | The accounts of the commission shall be open at any reasonable time for inspection by |
28 | duly constituted officers of the compacting states and any person authorized by the commission. |
29 | Nothing contained in this Article shall be construed to prevent commission compliance relating to |
30 | audit or inspection of accounts by or on behalf of any government contributing to the support of |
31 | the commission. |
32 | ARTICLE X |
33 | ENTRY INTO FORCE AND WITHDRAWAL |
34 | This compact shall enter into force when enacted into law by any three states. Thereafter, |
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1 | this compact shall become effective as to any other state upon its enactment thereof. The |
2 | commission shall arrange for notification of all compacting states whenever there is a new |
3 | enactment of the compact. |
4 | Any compacting state may withdraw from this compact by enacting a statute repealing the |
5 | same. |
6 | No withdrawal shall affect any liability already incurred by or chargeable to a compacting |
7 | state prior to the time of such withdrawal. |
8 | ARTICLE XI |
9 | RECIPROCITY |
10 | If the commission determines that the standards for industrialized/modular buildings |
11 | prescribed by statute, rule or regulation of compacting state are at least equal to the commission’s |
12 | model rules and regulations for industrialized/modular buildings, and that such state standards are |
13 | enforced by the compacting state in accordance with the uniform administrative procedures, |
14 | industrialized/modular buildings approved by such a compacting state shall be deemed to have been |
15 | approved by all the compacting states for placement in those states in accordance with procedures |
16 | prescribed by the commission. |
17 | ARTICLE XII |
18 | EFFECT ON OTHER LAWS AND JURISDICTION |
19 | Nothing in this compact shall be construed to: |
20 | (1) Withdraw or limit the jurisdiction of any state or local court or administrative officer |
21 | or body with respect to any person, corporation or other entity or subject matter, except to the extent |
22 | that such jurisdiction pursuant to this compact, is expressly conferred upon another agency or body. |
23 | (2) Supersede or limit the jurisdiction of any court of the United States. |
24 | ARTICLE XIII |
25 | CONSTRUCTION AND SEVERABILITY |
26 | This compact shall be liberally construed so as to effectuate the purposes thereof. |
27 | The provisions of this compact shall be severable and if any phrase, clause, sentence or |
28 | provision of this compact is declared to be contrary to the constitution of any state or of the United |
29 | States or the applicability thereof to any government, agency, person or circumstances is held |
30 | invalid, the validity of the remainder of this compact and the applicability thereof to any |
31 | government, agency, person or circumstance shall not be affected thereby. If this compact shall be |
32 | held contrary to the constitution of any state participating therein, the compact shall remain in full |
33 | force and effect as to the remaining party states and in full force and effect as to the state affected |
34 | as to all severable matters. |
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1 | SECTION 2. This act shall take effect upon passage. |
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LC004392 | |
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EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO HEALTH AND SAFETY -- INTERSTATE COMPACT ON | |
INDUSTRIALIZED/MODULAR BUILDINGS | |
*** | |
1 | This act would repeal the Interstate Compact on Industrialized/Modular Buildings in its |
2 | entirety. |
3 | This act would take effect upon passage. |
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LC004392 | |
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