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

     

     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:

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     SECTION 1. Section 23-27.4-1 of the General Laws in Chapter 23-27.4 entitled "Interstate

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Compact on Industrialized/Modular Buildings" is hereby repealed.

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     23-27.4-1. Compact entered into.

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     The Interstate Compact on Industrialized/Modular Buildings is enacted into law and

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entered into by the State of Rhode Island with all other jurisdictions legally joining therein in the

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form substantially as follows:

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ARTICLE I

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FINDINGS AND DECLARATIONS OF POLICY

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     (1) The compacting states find that:

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     Industrialized/modular buildings are constructed in factories in the various states and are a

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growing segment of the nation’s affordable housing and commercial building stock.

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     The regulation of industrialized/modular buildings varies from state to state and locality to

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locality, which creates confusion and burdens state and local building officials and the

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industrialized/modular building industry. Regulation by multiple jurisdictions imposes additional

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costs, which are ultimately borne by the owners and users of industrialized/modular buildings,

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restricts market access and discourages the development and incorporation of new technologies.

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     (2) It is the policy of each of the compacting states to:

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     Provide the states which regulate the design and construction of industrialized/modular

 

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buildings with a program to coordinate and uniformly adopt and administer the states’ rules and

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regulations for such buildings, all in a manner to assure interstate reciprocity.

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     Provide to the United States Congress assurances that would preclude the need for a

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voluntary preemptive federal regulatory system for modular housing, as outlined in Section 572 of

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the Housing and Community Development Act of 1987, including development of model standards

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for modular housing construction, such that design and performance will insure quality, durability

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safety; will be in accordance with life-cycle cost-effective energy conservation standards; all to

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promote the lowest total construction and operating costs over the life of such housing.

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ARTICLE II

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DEFINITIONS

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     As used in this compact, unless the context clearly requires otherwise:

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     (1) “Commission” means the Interstate Industrialized/Modular Buildings Commission.

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     (2) “Industrialized/modular building” means any building which is of closed construction,

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i.e. constructed in such a manner that concealed parts or processes of manufacture cannot be

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inspected at the site, without disassembly, damage or destruction, and which is made or assembled

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in manufacturing facilities, off the building site, for installation, or assembly and installation, on

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the building site. “Industrialized/modular building” includes, but is not limited to, modular housing

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which is factory-built single-family and multi-family housing (including closed wall panelized

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housing) and other modular, nonresidential buildings. “Industrialized/modular building” does not

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include any structure subject to the requirements of the National Manufactured Home Construction

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and Safety Standards Act of 1974.

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     (3) “State” means a state of the United States, territory or possession of the United States,

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the District of Columbia, or the Commonwealth of Puerto Rico.

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     (4) “Uniform administrative procedures” means the procedures adopted by the

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Commission (after consideration of any recommendations from the rules development committee)

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which state and local officials, and other parties, in one state, will utilize to assure state and local

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officials, and other parties, in other states, of the substantial compliance of industrialized/modular

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building construction with the construction standard of requirements of such other states; to assess

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the adequacy of building systems; and to verify and assure the competency and performance of

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evaluation and inspection agencies.

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     (5) “Model rules and regulations for industrialized/modular buildings” means the

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construction standards adopted by the Commission (after consideration of any recommendations

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from the rules development committee) which govern the design, manufacture, handling, storage,

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delivery and installation of industrialized/modular buildings and building components. The

 

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construction standards and any amendments thereof shall conform insofar as practicable to model

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building codes and referenced standards generally accepted and in use throughout the United States.

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     (6) “Interim reciprocal agreement” means a formal reciprocal agreement between a

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noncompacting state wherein the noncompacting state agrees that labels evidencing compliance

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with the model rules and regulations for industrialized/modular buildings, as authorized in Article

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VIII, item No. 14, shall be accepted by the state and its subdivisions to permit installation and use

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of industrialized/modular buildings. Further, the noncompacting state agrees that by legislation or

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regulation, and appropriate enforcement by uniform administrative procedures, the noncompacting

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state requires all industrialized/modular building manufacturers within that state to comply with

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the model rules and regulations for industrialized/modular buildings.

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ARTICLE III

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CREATION OF COMMISSION

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     The compacting states hereby create the Interstate Industrialized/Modular Buildings

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Commission, hereinafter called commission. Said commission shall be a body corporate of each

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compacting state and an agency thereof. The commission shall have all the powers and duties set

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forth herein and such additional powers as may be conferred upon it by subsequent action of the

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respective legislatures of the compacting states.

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ARTICLE IV

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SELECTION OF COMMISSIONERS

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     The commission shall be selected as follows:

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     As each state becomes a compacting state, one resident shall be appointed as commissioner.

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The commissioner shall be selected by the governor of the compacting state, being designated from

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the state agency charged with regulating industrialized/modular buildings or, if such state agency

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does not exist, being designated from among those building officials with the most appropriate

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responsibilities in the state. The commissioner may designate another official as an alternate to act

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on behalf of the commissioner at commission meetings which the commissioner is unable to attend.

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Each state commissioner shall be appointed, suspended or removed and shall serve subject to and

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in accordance with the laws of the state which said commissioner represents; and each vacancy

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occurring shall be filled in accordance with the laws of the state wherein the vacancy exists.

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     When three state commissioners have been appointed in the manner described, those state

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commissioners shall select one additional commissioner who shall be a representative of

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manufacturers industrial or commercial use of industrialized/modular buildings.

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     When six state commissioners have been appointed, the state commissioners shall select a

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third additional commissioner who shall be a representative of manufacturers of residential-use

 

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industrialized/modular buildings.

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     With each addition of three state commissioners, the state commissioners shall appoint one

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additional manufacturing representative commissioner, alternating between a representative of

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manufacturers of industrial-or commercial-use industrialized/modular buildings and residential-use

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industrialized/modular buildings. With each addition of twelve state commissioners, the state

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commissioners shall appoint one additional commissioner, who represents consumers of

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industrialized/modular buildings.

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     The subsequent appointment of all representative commissioners shall be in this same

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manner, maintaining a ratio of manufacturer representatives to consumer representatives of four to

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one.

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     In the event states withdraw from the compact or, for any other reason, the number of state

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commissioners is reduced, the state commissioners shall remove the last added representative

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commissioner as necessary to maintain a balance of state commissioners to representative

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commissioners in the same proportion as the appointments outlined herein.

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     Upon a majority vote of the state commissioners, the state commissioners may remove, fill

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a vacancy created by or replace any representative commissioner, provided that any replacement is

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made from the same representative group and a three to one ratio is maintained.

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     Unless provided otherwise, the representative commissioners have the same authority and

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responsibility as the state commissioners. In addition, the commission may have as a member one

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commissioner representing the United States government if federal law authorizes such

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representation. Such commissioner shall not vote on matters before the commission. Such

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commissioner shall be appointed by the President of the United States, or in such other manner as

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may be provided by Congress.

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ARTICLE V

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VOTING

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     Each commissioner (except the commissioner representing the United States government)

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shall be entitled to one vote on the commission. A majority of the commissioners shall constitute a

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quorum for the transaction of business. Any business transacted at any meeting of the commission

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must be by affirmative vote of a majority of the quorum present and voting.

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ARTICLE VI

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ORGANIZATION AND MANAGEMENT

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     The commission shall elect annually, from among its members, a Chairperson, a Vice

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Chairperson and a Treasurer. The commission shall also select a Secretariat, which shall provide

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an individual who shall serve as Secretary of the commission. The commission shall fix and

 

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determine the duties and compensation of the Secretariat.

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     The commissioners shall serve without compensation, but shall be reimbursed for their

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actual and necessary expenses from the funds of the commission.

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     The commission shall adopt a seal.

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     The commission shall adopt bylaws, rules, and regulations for the conduct of its business,

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and shall have the power to amend and rescind these bylaws, rules the regulations.

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     The commission shall establish and maintain an office at the same location as the office

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maintained by the Secretariat for the transaction of its business and may meet at any time, but in

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any event must meet at least once a year. The chairman may call additional meetings and upon the

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request of a majority of the commissioners of three or more of the compacting states shall call an

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additional meeting.

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     The commission annually shall make the governor and legislature of each compacting state

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a report covering its activities for the preceding year.

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     Any donation or grant accepted by the commission or services borrowed shall be reported

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in the annual report of the commission and shall include the nature, amount and conditions, if any,

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of the donation, gift or services borrowed and the identity of the donor or lender.

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     The commission may make additional reports as it may deem desirable.

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ARTICLE VII

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COMMITTEES

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     The commission will establish such committees as it deems necessary, including, but not

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limited to, the following:

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     (1) An executive committee which functions when the full commission is not meeting, as

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provided in the bylaws of the commission. The executive committee will ensure that proper

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procedures are followed in implementing the commission’s programs and in carrying out the

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activities of the compact.

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     The executive committee shall be elected by vote of the commission. It shall be comprised

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of at least three and no more than nine commissioners, selected from those commissioners who are

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representatives of the governor of their respective state.

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     (2) A rules development committee appointed by the commission.

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     The Committee shall be consensus-based and consist of not less than 7 nor more than 21

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members.

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     Committee members will include state building regulatory officials; manufacturers of

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industrialized/modular buildings; private, third-party inspection agencies; and consumers. This

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committee may recommend procedures which state and local officials, and other parties, in one

 

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state, may utilize to assure state and local officials, and in other parties, in other states, of the

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substantial compliance of industrialized/modular building construction with the construction

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standard requirements of such other states; to assess the adequacy of building systems; and to verify

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and assure the competency and performance of evaluation and inspection agencies. This committee

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may also recommend construction standards for the design, manufacture, handling, storage,

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delivery and installation of industrialized/modular buildings and building components. The

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committee will submit its recommendations to the commission, for the commission’s consideration

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in adopting and amending the uniform administrative procedures and the model rules and

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regulations for industrialized/modular buildings. The committee may also review the regulatory

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programs of the compacting states to determine whether those programs are consistent with the

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uniform administrative procedures or the model rules and regulations for industrialized/modular

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buildings and may make recommendations concerning the states’ programs to the commission. In

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carrying out its functions, the rules committee may conduct public hearings and otherwise solicit

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public input and comment.

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     (3) Any other advisory, coordinating or technical committees, membership on which may

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include private persons, public officials, associations or organizations. Such committees may

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consider any matter of concern to the commission.

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     (4) Such additional committees as the commission’s bylaws may provide.

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ARTICLE VIII

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POWER AND AUTHORITY

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     In addition to the powers conferred elsewhere in this compact, the commission shall have

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power to:

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     (1) Collect, analyze and disseminate information relating to industrialized/modular

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buildings.

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     (2) Undertake studies of existing laws, codes, rules and regulations, and administrative

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practices of the states relating to industrialized/modular buildings.

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     (3) Assist and support committees and organizations which promulgate, maintain and

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update model codes or recommendations for uniform administrative procedures or model rules and

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regulations for industrialized/modular buildings.

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     (4) Adopt and amend uniform administrative procedures and model rules and regulations

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for industrialized/modular buildings.

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     (5) Make recommendations to compacting states for the purpose of bringing such states’

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laws, codes, rules and regulations and administrative practices into conformance with the uniform

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administrative practices into conformance with the uniform administrative procedures or the model

 

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rules and regulations for industrialized/modular buildings, provided that such recommendations

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shall be made to the appropriate state agency with due consideration for the desirability of

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uniformity while also giving appropriate consideration to special circumstances which may justify

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variations necessary to meet unique local conditions.

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     (6) Assist and support the compacting states with monitoring of plan review programs and

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inspection programs, which will assure that the compacting states have the benefit of uniform

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industrialized/modular building plan review and inspection programs.

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     (7) Assist and support organizations which train state and local government and other

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program personnel in the use of uniform industrialized/modular building plan review and

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inspection programs.

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     (8) Encourage and promote coordination of state regulatory action relating to

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manufacturers, public or private inspection programs.

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     (9) Create and sell labels to be affixed to industrialized/modular building units, constructed

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in or regulated by compacting states, where such labels will evidence compliance with the model

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rules and regulations for industrialized/modular buildings, enforced in accordance with the uniform

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administrative procedures. The commission may use receipts from the sale of labels to help defray

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the operating expenses of the commission.

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     (10) Assist and support compacting states’ investigations into and resolutions of consumer

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complaints which relate to industrialized/modular buildings constructed in one compacting state

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and sited in another compacting state.

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     (11) Borrow, accept or contract for the services of personnel from any state or the United

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States or any subdivision or agency thereof, from any interstate agency, or from any institution,

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association, person, firm or corporation.

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     (12) Accept for any of its purposes and functions under this compact any and all donations,

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and grants of money, equipment, supplies, materials and services (conditional or otherwise) from

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any state or the United States or any subdivision or agency thereof, from any interstate agency, or

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from any institution, person, firm or corporation, and may receive, utilize and dispose of the same.

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     (13) Establish and maintain such facilities as may be necessary for the transacting of its

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business.

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     The commission may acquire, hold, and convey real and personal property and any interest

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therein.

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     (14) Enter into contracts and agreements, including but not limited to, interim reciprocal

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agreements with noncompacting states.

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ARTICLE IX

 

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FINANCE

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     The commission shall submit to the governor or designated officer or officers of each

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compacting state a budget of its estimated expenditures for such period as may be required by the

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laws of that state for presentation to the legislature thereof.

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     Each of the commission’s budgets of estimated expenditures shall contain specific

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recommendations of the amounts to be appropriated by each of the compacting states. Said state

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appropriation shall be paid from fees received from the manufacturers and third party agents and

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deposited in the state building commissioner’s restricted receipt account. The total amount of

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appropriations requested under any such budget shall be apportioned among the compacting states

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as follows: one-half in equal shares; one-fourth among the compacting states in accordance with

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the ratio of their populations to the total population of the compacting states, based on the last

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decennial federal census; and one-fourth among the compacting states in accordance with the ratio

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of industrialized/modular building units manufactured in each state to the total of all units

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manufactured in all of the compacting states.

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     The commission shall not pledge the credit of any compacting state. The commission may

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meet any of its obligations in whole or in part with funds available to it by donations, grants, or

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sale of labels: provided that the commission takes specific action setting aside such funds prior to

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incurring any obligation to be met in whole or in part in such manner.

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     Except where the commission makes use of funds available to it by donations, grants or

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sale of labels, the commission shall not incur any obligation prior to the allotment of funds by the

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compacting states adequate to meet the same.

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     The commission shall keep accurate accounts of all receipts and disbursements. The

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receipts and disbursements of the commission shall be subject to the audit and accounting

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procedures established under its bylaws. All receipts and disbursement of funds handled by the

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commission shall be audited yearly by a certified or licensed public accountant and the report of

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the audit shall be included in and become part of the annual report of the commission.

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     The accounts of the commission shall be open at any reasonable time for inspection by

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duly constituted officers of the compacting states and any person authorized by the commission.

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Nothing contained in this Article shall be construed to prevent commission compliance relating to

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audit or inspection of accounts by or on behalf of any government contributing to the support of

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the commission.

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ARTICLE X

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ENTRY INTO FORCE AND WITHDRAWAL

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     This compact shall enter into force when enacted into law by any three states. Thereafter,

 

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this compact shall become effective as to any other state upon its enactment thereof. The

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commission shall arrange for notification of all compacting states whenever there is a new

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enactment of the compact.

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     Any compacting state may withdraw from this compact by enacting a statute repealing the

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same.

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     No withdrawal shall affect any liability already incurred by or chargeable to a compacting

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state prior to the time of such withdrawal.

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ARTICLE XI

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RECIPROCITY

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     If the commission determines that the standards for industrialized/modular buildings

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prescribed by statute, rule or regulation of compacting state are at least equal to the commission’s

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model rules and regulations for industrialized/modular buildings, and that such state standards are

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enforced by the compacting state in accordance with the uniform administrative procedures,

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industrialized/modular buildings approved by such a compacting state shall be deemed to have been

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approved by all the compacting states for placement in those states in accordance with procedures

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prescribed by the commission.

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ARTICLE XII

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EFFECT ON OTHER LAWS AND JURISDICTION

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     Nothing in this compact shall be construed to:

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     (1) Withdraw or limit the jurisdiction of any state or local court or administrative officer

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or body with respect to any person, corporation or other entity or subject matter, except to the extent

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that such jurisdiction pursuant to this compact, is expressly conferred upon another agency or body.

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     (2) Supersede or limit the jurisdiction of any court of the United States.

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ARTICLE XIII

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CONSTRUCTION AND SEVERABILITY

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     This compact shall be liberally construed so as to effectuate the purposes thereof.

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     The provisions of this compact shall be severable and if any phrase, clause, sentence or

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provision of this compact is declared to be contrary to the constitution of any state or of the United

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States or the applicability thereof to any government, agency, person or circumstances is held

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invalid, the validity of the remainder of this compact and the applicability thereof to any

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government, agency, person or circumstance shall not be affected thereby. If this compact shall be

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held contrary to the constitution of any state participating therein, the compact shall remain in full

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force and effect as to the remaining party states and in full force and effect as to the state affected

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as to all severable matters.

 

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     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

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     This act would repeal the Interstate Compact on Industrialized/Modular Buildings in its

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entirety.

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     This act would take effect upon passage.

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LC004392

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