Regional Building Codes for Factory-Built Structures

The bill provides that after the state housing board (board) adopts rules about any activity required to undertake or complete the construction or installation of a factory-built nonresidential structure, a factory-built residential structure, or a factory-built tiny home (factory-built structure), the state plumbing board, the state electrical board, and the state fire suppression administrator do not have jurisdiction over and their rules do not apply to a factory-built structure.

Plumbing or electrical installations that connect factory-built structures to external utility sources and that are not considered actions to complete the installation of a factory- built structure as required by a registered installer must be completed by a licenced plumber or electrician under a registered plumbing or electrical contractor. The inspection and inspectors of these installations, other than those authorized to be performed by a registered installer, must be performed by licensed plumbing or electrical inspectors.

On or before July 1, 2026, the advisory committee on factory-built structures and tiny homes (advisory committee) is required to develop regional building codes for factory-built structures and implementation requirements and submit the recommended codes to the board. Any future statewide adopted codes contemplated in statute must be vetted through the advisory committee for consideration for adoption by the board.

During the 2026 legislative session, the department of local affairs shall present the recommendations of the advisory committee related to the development of regional building codes accounting for local climatic and geographic conditions and fire suppression activities, and improved coordination between the state and local permitting process onsite for the construction and installation of factory-built structures, to the senate local government and housing committee and the house transportation, housing, and local government committee prior to consideration and adoption by the state housing board. The department of local affairs shall report on the outcomes as part of its 2031 "SMART Act" hearing.

On or before July 1, 2026, the board must adopt rules:

• Implementing Establishing regional building code recommendations standards from the advisory committee that account for local climatic and geographic conditions, and fire protection and suppression activities and include specified minimum requirements for the construction and installation of factory-built structures, which supersede any conflicting ordinance, code, regulation, or other law of a local government unless the local government adopts the rules of the board;
• Covering the implementation Implementing the recommended requirements developed by the advisory committee, including authorizing the continued authorization of a local government certified by the division of housing (division) to perform inspections of factory-built structures on behalf of the division and registration, responsibility, and accountability requirements for a manufacturer, installer, seller, or general contractor who develops the installation site or completes the construction of a factory-built structure at the installation site;
• Covering electrical or plumbing codes or fire suppression activity required to undertake or complete the construction or installation of a factory-built structure;
• Allowing the division to contract for third-party review and approval of a final design and construction plan for a factory-built structure on behalf of the division;
• Allowing the division to create a process for vetting and approving the ability of a third party to review and approve a final design and construction plan for a factory-built structure on behalf of the division; and
• Requiring the division to cause an audit to be performed on a third party that reviews and approves design and construction plans, on a third party that conducts inspections on its behalf, of contracts of sellers to verify compliance, and to ensure protection of down payments made by purchasers that are retained by the seller of manufacturer.

On or before July 1, 2026, the advisory committee is required to conduct a study on behalf of the division about whether the international building code or residential code standards that apply to site requirements should be incorporated into state statutes and rules and to determine whether the state should regulate non-factory-built components that are connected to a factory-built structure at the installation site and are currently under local jurisdiction. The division is required to deliver the study to the board when complete.

A county or municipality may not:

• Enact a regulation that excludes factory-built structures and manufactured homes from the county or municipality;
• Impose more restrictive standards on factory-built structures and manufactured homes than those that the county or municipality applies to site-built homes in the same residential zones in the county or municipality; or
• Enact or enforce a regulation, law, or ordinance affecting the installation or construction of a factory-built structure or manufactured home that is more stringent than a regulation, ordinance, or law that applies to other types of construction.

A county or municipality may:

• Enact land use regulations to the extent that the regulations are applicable to existing housing or structures or new site-built housing in the county or municipality; and
• Enact a building code provision for unique public safety requirements unless the provision applies to a factory-built structure. or manufactured home

A county or municipality must comply with the requirements established by the division for factory-built structures and by the United States department of housing and urban development for manufactured homes. The bill requires the state treasurer to transfer $600,000 on July 1, 2025, from the innovative housing incentive program fund to the building regulation fund. Above-grade site-built components of a factory-built structure are subject to local government rules. The bill changes the composition of the advisory board from 15 to 20 members. The membership changes include the:

• Addition of four members from building code enforcement, representing a local building department from climate zones 4, 5, 6, and 7, instead of 3 members from building code enforcement;
• Removal of a member with experience in mechanical engineering or contracting;
• Substitution of a member who is a licensed electrician who may be employed by the department of regulatory agencies for a member from electrical engineering or contracting;
• Substitution of a member who is a licensed plumber who may be employed by the department of regulatory agencies for a member from the plumbing industry;
• Substitution of one member from the division of fire prevention and control for a member from the construction design or producer industry ;
• Addition of 3 members from factory-built structure construction;
• Subtraction of one of the 2 current members from the tiny home industry;
• Addition of one member who is a developer specializing in the use of factory-built structures in projects;
• Addition of one member from climate resiliency;
• Addition of one member who is a registered installer;
• Addition of one member who is a registered seller; and
• Addition of one member who is an individual representing emergency services or management.

For the 2025-26 state fiscal year, $277,264 is appropriated to the department of local affairs for use by the division. The appropriation is from the building regulation fund and is based on an assumption that the division will require an additional 1.0 FTE. To implement the bill, the division may use the appropriation for manufactured buildings programs.

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)