H-5077.1  _______________________________________________

 

                 SECOND SUBSTITUTE HOUSE BILL 2758

          _______________________________________________

 

State of Washington      55th Legislature     1998 Regular Session

 

By House Committee on Finance (originally sponsored by Representatives Carlson, Quall, Van Luven, Dunshee, B. Thomas, Gardner, Reams, Ogden, Chopp, Morris, Alexander, Veloria, Eickmeyer, Schoesler, O'Brien, Romero, Chandler, Dunn and Thompson)

 

Read first time .  Referred to Committee on .

Regulating mobile or manufactured homes.


    AN ACT Relating to mobile or manufactured homes; amending RCW 43.63B.010, 43.63B.060, 35.63.110, 35A.63.100, 36.70.750, 46.70.011, 18.85.010, 18.85.330, 46.04.302, and 65.20.020; adding new sections to chapter 43.63B RCW; adding a new section to chapter 36.70A RCW; creating new sections; and providing an effective date.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

 

                              PART I

                INSTALLER CERTIFICATION AMENDMENTS

 

    Sec. 101.  RCW 43.63B.010 and 1994 c 284 s 15 are each amended to read as follows:

    Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

    (1) "Authorized representative" means an employee of a state agency, city, or county acting on behalf of the department.

    (2) "Certified manufactured home installer" means a person who is in the business of installing mobile or manufactured homes and who has been issued a certificate by the department as provided in this chapter.

    (3) "Department" means the department of community, trade, and economic development.

    (4) "Director" means the director of community, trade, and economic development.

    (5) "Manufactured home" means a single-family dwelling built in accordance with the department of housing and urban development manufactured home construction and safety standards act, which is a national, preemptive building code.

    (6) "Mobile or manufactured home installation" means all on-site work necessary for the installation of a manufactured home, including:

    (a) Construction of the foundation system;

    (b) Installation of the support piers and earthquake resistant bracing system;

    (c) Required connection to foundation system and support piers;

    (d) Skirting;

    (e) Connections to the on-site water and sewer systems that are necessary for the normal operation of the home; and

    (f) Extension of the pressure relief valve for the water heater.

    (7) "Manufactured home standards" means the manufactured home construction and safety standards as promulgated by the United States department of housing and urban development (HUD).

    (8) "Mobile home" means a factory-built dwelling built prior to June 15, 1976, to standards other than the HUD code, and acceptable under applicable state codes in effect at the time of construction or introduction of the home into the state.  Mobile homes have not been built since introduction of the HUD manufactured home construction and safety standards act.

    (9) "Training course" means the education program administered by the department, or the education course administered by an approved educational provider, as a prerequisite to taking the examination for certification.

    (10) "Approved educational provider" means an organization approved by the department to provide education and training of manufactured home installers and local inspectors.

 

    NEW SECTION.  Sec. 102.  A new section is added to chapter 43.63B RCW to read as follows:

    The department shall adopt rules to establish and administer a process of approving educational providers as an alternative to the department training course for installers and local inspectors.

 

    Sec. 103.  RCW 43.63B.060 and 1994 c 284 s 20 are each amended to read as follows:

    Any local government mobile or manufactured home installation application and permit shall state either the name and registration number of the contractor or licensed manufactured home dealer or the certification identification number of the certified manufactured home installer supervising such installation.  A local government may not issue ((a permit to install)) final approval for the installation of a manufactured home unless((:  (1) The installer submits a copy of the certificate of manufactured home installation to the local government; or (2) work is being performed that does not require a certified installer.  When work must be performed by a certified manufactured home installer, no work may commence until)) the certified installer or the installer's agent has posted ((or otherwise made available, with the inspection record card)) at the set-up site((, a copy of the certified)) the manufactured home installer's ((certificate of)) certification number and has identified the work being performed on the manufactured home installation on a form prescribed by the department.

 

    NEW SECTION.  Sec. 104.  A new section is added to chapter 43.63B RCW to read as follows:

    The department shall, by January 1, 1999, prepare a written training course and examination to be administered to all applicants for manufactured home inspector certification.

    After December 1, 1999, a local government building inspector shall not inspect a manufactured home installation unless certified by the department.  The department shall charge fees as provided in RCW 43.63B.070.

 

                              PART II

              ZONING AMENDMENTS TO ALLOW MANUFACTURED

                 HOMES IN ALL SINGLE-FAMILY ZONES

 

    NEW SECTION.  Sec. 201.  The legislature finds that limiting competition for housing types, manufacturing methods, and housing designs stifles housing choices, arbitrarily reduces competition, and increases costs which in turn reduces housing affordability.  These restrictions on the siting of manufactured housing go beyond regulations needed to adequately protect the life and safety of the citizens of the state.  The legislature further finds that manufactured housing built to federal standards should not be prohibited or restrained beyond restraints or prohibitions placed on site-built single-family residences, either through personal or public restrictions, and that any such restrictions are contrary to the public policy of the state that encourages housing affordability and consumer choice absent restraint of trade by private or public entities.

    The legislature recognizes that federal standards for manufactured housing supersede state and local building and energy codes and that compliance with state or local building or energy codes as a requirement for issuing a permit for siting a manufactured housing unit may not be required as a condition for allowing manufactured homes in the state.

 

    Sec. 202.  RCW 35.63.110 and 1965 c 7 s 35.63.110 are each amended to read as follows:

    For any or all of such purposes the council or board, on recommendation of its commission, may divide the municipality or any portion thereof into districts of such size, shape and area, or may establish such official maps, or development plans for the whole or any portion of the municipality as may be deemed best suited to carry out the purposes of this chapter and within such districts it may regulate and restrict the erection, construction, reconstruction, alteration, repair or use of buildings, structures, or land.

    However, in any zoning district for single-family residences, single-family manufactured homes, as defined in RCW 43.63B.010, that are thermally equivalent to the state energy code, shall be sited on individual lots subject only to land use regulations applicable to all other single-family residences on individual lots in such districts.  This section does not prevent the adoption of home design regulations to assure neighborhood compatibility provided such regulations apply equally to homes regulated under the state building code and manufactured homes as defined in RCW 43.63B.010.

 

    Sec. 203.  RCW 35A.63.100 and 1979 ex.s. c 170 s 8 are each amended to read as follows:

    After approval of the comprehensive plan, as set forth above, the legislative body, in developing the municipality and in regulating the use of land, may implement or give effect to the comprehensive plan or parts thereof by ordinance or other action to such extent as the legislative body deems necessary or appropriate.  Such ordinances or other action may provide for:

    (1) Adoption of an official map and regulations relating thereto designating locations and requirements for one or more of the following:  Streets, parks, public buildings, and other public facilities, and protecting such sites against encroachment by buildings and other physical structures.

    (2) Dividing the municipality, or portions thereof, into appropriate zones within which specific standards, requirements, and conditions may be provided for regulating the use of public and private land, buildings, and structures, and the location, height, bulk, number of stories, and size of buildings and structures, size of yards, courts, open spaces, density of population, ratio of land area to the area of buildings and structures, setbacks, area required for off-street parking, protection of access to direct sunlight for solar energy systems, and such other standards, requirements, regulations, and procedures as are appropriately related thereto.  The ordinance encompassing the matters of this subsection is hereinafter called the "zoning ordinance".  No zoning ordinance, or amendment thereto, shall be enacted by the legislative body without at least one public hearing, notice of which shall be given as set forth in RCW 35A.63.070.  Such hearing may be held before the planning agency or the board of adjustment or such other body as the legislative body shall designate.

    However, in any zoning district for single-family residences, single-family manufactured homes, as defined in RCW 43.63B.010, that are thermally equivalent to the state energy code, shall be sited on individual lots subject only to land use regulations applicable to all other single-family residences on individual lots in such districts.  This section does not prevent the adoption of home design regulations to assure neighborhood compatibility provided such regulations apply equally to homes regulated under the state building code and manufactured homes as defined in RCW 43.63B.010.

    (3) Adoption of design standards, requirements, regulations, and procedures for the subdivision of land into two or more parcels, including, but not limited to, the approval of plats, dedications, acquisitions, improvements, and reservation of sites for public use.

    (4) Scheduling public improvements on the basis of recommended priorities over a period of years, subject to periodic review.

    (5) Such other matters as may be otherwise authorized by law or as the legislative body deems necessary or appropriate to effectuate the goals and objectives of the comprehensive plan or parts thereof and the purposes of this chapter.

 

    Sec. 204.  RCW 36.70.750 and 1963 c 4 s 36.70.750 are each amended to read as follows:

    Any board, by ordinance, may establish classifications, within each of which, specific controls are identified, and which will:

    (1) Regulate the use of buildings, structures, and land as between agriculture, industry, business, residence, and other purposes.

    However, in any zoning district for single-family residences, single-family manufactured homes, as defined in RCW 43.63B.010, that are thermally equivalent to the state energy code, shall be sited on individual lots subject only to land use regulations applicable to all other single-family residences on individual lots in such districts.  This subsection does not prevent the adoption of home design regulations to assure neighborhood compatibility provided such regulations apply equally to homes regulated under the state building code and manufactured homes as defined in RCW 43.63B.010;

    (2) Regulate location, height, bulk, number of stories and size of buildings and structures; the size of yards, courts, and other open spaces; the density of population; the percentage of a lot which may be occupied by buildings and structures; and the area required to provide off-street facilities for the parking of motor vehicles.

 

    NEW SECTION.  Sec. 205.  A new section is added to chapter 36.70A RCW to read as follows:

    Any city or county that plans or elects to plan under this chapter must allow in any zoning district for single-family residences, single-family manufactured homes as defined in RCW 43.63B.010 that are thermally equivalent to the state energy code, to be sited on individual lots subject only to land use regulations applicable to all other single-family residences on individual lots in such districts.  This section does not prevent the adoption of home design regulations to assure neighborhood compatibility provided such regulations apply equally to homes regulated under the state building code and manufactured homes as defined in RCW 43.63B.010.

 

                             PART III

                   REAL ESTATE BROKER AMENDMENTS

 

    Sec. 301.  RCW 46.70.011 and 1996 c 194 s 1 are each amended to read as follows:

    As used in this chapter:

    (1) "Vehicle" means and includes every device capable of being moved upon a public highway and in, upon, or by which any persons or property is or may be transported or drawn upon a public highway, excepting devices moved by human or animal power or used exclusively upon stationary rails or tracks.

    (2) "Motor vehicle" means every vehicle which is self-propelled and every vehicle which is propelled by electric power obtained from overhead trolley wires, but not operated upon rails, and which is required to be registered and titled under Title 46 RCW, Motor Vehicles.

    (3) "Vehicle dealer" means any person, firm, association, corporation, or trust, not excluded by subsection (4) of this section, engaged in the business of buying, selling, listing, exchanging, offering, brokering, leasing with an option to purchase, auctioning, soliciting, or advertising the sale of new or used vehicles, or arranging or offering or attempting to solicit or negotiate on behalf of others, a sale, purchase, or exchange of an interest in new or used motor vehicles, irrespective of whether the motor vehicles are owned by that person.  Vehicle dealers shall be classified as follows:

    (a) A "motor vehicle dealer" is a vehicle dealer that deals in new or used motor vehicles, or both;

    (b) A "mobile home and travel trailer dealer" is a vehicle dealer that deals in mobile homes, park trailers, or travel trailers, or more than one type of these vehicles;

    (c) A "miscellaneous vehicle dealer" is a vehicle dealer that deals in motorcycles or vehicles other than motor vehicles or mobile homes and travel trailers or any combination of such vehicles.

    (4) The term "vehicle dealer" does not include, nor do the licensing requirements of RCW 46.70.021 apply to, the following persons, firms, associations, or corporations:

    (a) Receivers, trustees, administrators, executors, guardians, or other persons appointed by, or acting under a judgment or order of, any court; or

    (b) Public officers while performing their official duties; or

    (c) Employees of vehicle dealers who are engaged in the specific performance of their duties as such employees; or

    (d) Any person engaged in an isolated sale of a vehicle in which ((he)) that person is the registered or legal owner, or both, thereof; or

    (e) Any person, firm, association, corporation, or trust, engaged in the selling of equipment other than vehicles, subject to registration, used for agricultural or industrial purposes; or

    (f) A real estate broker licensed under chapter 18.85 RCW, or ((his authorized representative)) an affiliated licensee, who, on behalf of ((the legal or registered owner of a used mobile home)) another negotiates the purchase, sale, lease, or exchange of ((the used)) a manufactured or mobile home in conjunction with the purchase, sale, exchange, rental, or lease of the land upon which the ((used)) manufactured or mobile home is, or will be, located ((and the real estate broker is not acting as an agent, subagent, or representative of a vehicle dealer licensed under this chapter)); or

    (g) Owners who are also operators of the special highway construction equipment or of the highway construction equipment for which a vehicle license and display vehicle license number plate is required as defined in RCW 46.16.010; or

    (h) Any bank, trust company, savings bank, mutual savings bank, savings and loan association, credit union, and any parent, subsidiary, or affiliate thereof, authorized to do business in this state under state or federal law with respect to the sale or other disposition of a motor vehicle owned and used in their business; or with respect to the acquisition and sale or other disposition of a motor vehicle in which the entity has acquired an interest as a lessor, lessee, or secured party.

    (5) "Vehicle salesperson" means any person who for any form of compensation sells, auctions, leases with an option to purchase, or offers to sell or to so lease vehicles on behalf of a vehicle dealer.

    (6) "Department" means the department of licensing, which shall administer and enforce the provisions of this chapter.

    (7) "Director" means the director of licensing.

    (8) "Manufacturer" means any person, firm, association, corporation, or trust, resident or nonresident, who manufactures or assembles new and unused vehicles or remanufactures vehicles in whole or in part and further includes the terms:

    (a) "Distributor," which means any person, firm, association, corporation, or trust, resident or nonresident, who in whole or in part offers for sale, sells, or distributes any new and unused vehicle to vehicle dealers or who maintains factory representatives.

    (b) "Factory branch," which means a branch office maintained by a manufacturer for the purpose of selling or offering for sale, vehicles to a distributor, wholesaler, or vehicle dealer, or for directing or supervising in whole or in part factory or distributor representatives, and further includes any sales promotion organization, whether a person, firm, or corporation, which is engaged in promoting the sale of new and unused vehicles in this state of a particular brand or make to vehicle dealers.

    (c) "Factory representative," which means a representative employed by a manufacturer, distributor, or factory branch for the purpose of making or promoting for the sale of their vehicles or for supervising or contracting with their dealers or prospective dealers.

    (9) "Established place of business" means a location meeting the requirements of RCW 46.70.023(1) at which a vehicle dealer conducts business in this state.

    (10) "Principal place of business" means that dealer firm's business location in the state, which place the dealer designates as their principal place of business.

    (11) "Subagency" means any place of business of a vehicle dealer within the state, which place is physically and geographically separated from the principal place of business of the firm or any place of business of a vehicle dealer within the state, at which place the firm does business using a name other than the principal name of the firm, or both.

    (12) "Temporary subagency" means a location other than the principal place of business or subagency within the state where a licensed vehicle dealer may secure a license to conduct the business and is licensed for a period of time not to exceed ten days for a specific purpose such as auto shows, shopping center promotions, tent sales, exhibitions, or similar merchandising ventures.  No more than six temporary subagency licenses may be issued to a licensee in any twelve-month period.

    (13) "Wholesale vehicle dealer" means a vehicle dealer who buys and sells other than at retail.

    (14) "Retail vehicle dealer" means a vehicle dealer who may buy and sell at both wholesale and retail.

    (15) "Listing dealer" means a used mobile home dealer who makes contracts with sellers who will compensate the dealer for obtaining a willing purchaser for the seller's mobile home.

    (16) "Auction" means a transaction conducted by means of exchanges between an auctioneer and the members of the audience, constituting a series of oral invitations for offers for the purchase of vehicles made by the auctioneer, offers to purchase by members of the audience, and the acceptance of the highest or most favorable offer to purchase.

    (17) "Auction company" means a sole proprietorship, partnership, corporation, or other legal or commercial entity licensed under chapter 18.11 RCW that only sells or offers to sell vehicles at auction or only arranges or sponsors auctions.

    (18) "Buyer's agent" means any person, firm, partnership, association, limited liability company, limited liability partnership, or corporation retained or employed by a consumer to arrange for or to negotiate, or both, the purchase of a new motor vehicle on behalf of the consumer, and who is paid a fee or receives other compensation from the consumer for its services.

    (19) "New motor vehicle" means any motor vehicle that is self-propelled and is required to be registered and titled under Title 46 RCW, has not been previously titled to a retail purchaser or lessee, and is not a "used vehicle" as defined under RCW 46.04.660.

 

    Sec. 302.  RCW 18.85.010 and 1997 c 322 s 1 are each amended to read as follows:

    In this chapter words and phrases have the following meanings unless otherwise apparent from the context:

    (1) "Real estate broker," or "broker," means a person, while acting for another for commissions or other compensation or the promise thereof, or a licensee under this chapter while acting in his or her own behalf, who:

    (a) Sells or offers for sale, lists or offers to list, buys or offers to buy real estate or business opportunities, or any interest therein, for others;

    (b) Negotiates or offers to negotiate, either directly or indirectly, the purchase, sale, exchange, lease, or rental of real estate or business opportunities, or any interest therein, for others;

    (c) Negotiates or offers to negotiate, either directly or indirectly, the purchase, sale, lease, or exchange of a ((used)) manufactured or mobile home in conjunction with the purchase, sale, exchange, rental, or lease of the land upon which the ((used)) manufactured or mobile home is, or will be, located;

    (d) Advertises or holds himself or herself out to the public by any oral or printed solicitation or representation that he or she is so engaged; or

    (e) Engages, directs, or assists in procuring prospects or in negotiating or closing any transaction which results or is calculated to result in any of these acts;

    (2) "Real estate salesperson" or "salesperson" means any natural person employed, either directly or indirectly, by a real estate broker, or any person who represents a real estate broker in the performance of any of the acts specified in subsection (1) of this section;

    (3) An "associate real estate broker" is a person who has qualified as a "real estate broker" who works with a broker and whose license states that he or she is associated with a broker;

    (4) The word "person" as used in this chapter shall be construed to mean and include a corporation, limited liability company, limited liability partnership, or partnership, except where otherwise restricted;

    (5) "Business opportunity" shall mean and include business, business opportunity and good will of an existing business or any one or combination thereof;

    (6) "Commission" means the real estate commission of the state of Washington;

    (7) "Director" means the director of licensing;

    (8) "Real estate multiple listing association" means any association of real estate brokers:

    (a) Whose members circulate listings of the members among themselves so that the properties described in the listings may be sold by any member for an agreed portion of the commission to be paid; and

    (b) Which require in a real estate listing agreement between the seller and the broker, that the members of the real estate multiple listing association shall have the same rights as if each had executed a separate agreement with the seller;

    (9) "Clock hours of instruction" means actual hours spent in classroom instruction in any tax supported, public technical college, community college, or any other institution of higher learning or a correspondence course from any of the aforementioned institutions certified by such institution as the equivalent of the required number of clock hours, and the real estate commission may certify courses of instruction other than in the aforementioned institutions; and

    (10) "Incapacitated" means the physical or mental inability to perform the duties of broker prescribed by this chapter.

 

    Sec. 303.  RCW 18.85.330 and 1997 c 322 s 20 are each amended to read as follows:

    (1) Except under subsection (4) of this section, it shall be unlawful for any licensed broker to pay any part of his or her commission or other compensation to any person who is not a licensed real estate broker in any state of the United States or its possessions or any province of the Dominion of Canada or any foreign jurisdiction with a real estate regulatory program.

    (2) Except under subsection (4) of this section, it shall be unlawful for any licensed broker to pay any part of his or her commission or other compensation to a real estate salesperson not licensed to do business for such broker.

    (3) Except under subsection (4) of this section, it shall be unlawful for any licensed salesperson to pay any part of his or her commission or other compensation to any person, whether licensed or not, except through his or her broker.

    (4) A commission may be shared with a manufactured housing retailer, licensed under chapter 46.70 RCW, on the sale of personal property manufactured housing sold in conjunction with the sale or lease of land.

 

                              PART IV

                DEPARTMENT OF LICENSING DEFINITIONS

 

    Sec. 401.  RCW 46.04.302 and 1993 c 154 s 1 are each amended to read as follows:

    (("Mobile home" or)) "Manufactured home" means a ((structure, designed and constructed to be transportable in one or more sections, and is built on a permanent chassis, and designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities that include plumbing, heating, and electrical systems contained therein.  The structure must comply with the national mobile home construction and safety standards act of 1974 as adopted by chapter 43.22 RCW if applicable.  Manufactured home does not include a modular home.  A structure which met the definition of a "manufactured home" at the time of manufacture is still considered to meet this definition notwithstanding that it is no longer transportable)) single-family dwelling built in accordance with the department of housing and urban development manufactured home construction and safety standards act, which is a national, preemptive building code.  "Mobile home" means a factory-built dwelling built prior to June 15, 1976, to standards other than the housing and urban development code, and acceptable under applicable state statutes in effect at the time of construction or introduction of the home into the state.  Mobile homes have not been built since introduction of the housing and urban development manufactured home construction and safety standards act.

 

                              PART V

      CLASSIFICATION OF MANUFACTURED HOMES‑-TITLE ELIMINATION

 

    Sec. 501.  RCW 65.20.020 and 1989 c 343 s 2 are each amended to read as follows:

    Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

    (1) "Affixed" means that the manufactured home is installed in accordance with the installation standards in state law.

    (2) "Department" means the department of licensing.

    (3) "Eliminating the title" means to cancel an existing title issued by this state or a foreign jurisdiction or to waive the certificate of ownership required by chapter 46.12 RCW and recording the appropriate documents in the county real property records pursuant to this chapter.

    (4) "Homeowner" means the owner of a manufactured home.

    (5) "Land" means real property excluding the manufactured home.

    (6) "Manufactured home" ((or "mobile home")) means a ((structure, designed and constructed to be transportable in one or more sections and is built on a permanent chassis and designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities that include plumbing, heating, and electrical systems contained therein.  The structure must comply with the national mobile home construction and safety standards act of 1974 as adopted by chapter 43.22 RCW if applicable.  "Manufactured home" does not include a modular home.  A structure which met the definition of a "manufactured home" at the time of manufacture is still considered to meet this definition notwithstanding that it is no longer transportable)) single-family dwelling built in accordance with the department of housing and urban development manufactured home construction and safety standards act, which is a national, preemptive building code.  "Mobile home" means a factory-built dwelling built prior to June 15, 1976, to standards other than the housing and urban development code, and acceptable under applicable state statutes in effect at the time of construction or introduction of the home into the state.  Mobile homes have not been built since introduction of the housing and urban development manufactured home construction and safety standards act.

    (7) "Owner" means, when referring to a manufactured home that is titled, the person who is the registered owner.  When referring to a mobile home that is untitled pursuant to this chapter, the owner is the person who owns the land.  When referring to land, the person may have fee simple title, have a leasehold estate of thirty-five years or more, or be purchasing the property on a real estate contract.  Owners include joint tenants, tenants in common, holders of legal life estates, and holders of remainder interests.

    (8) "Person" means any individual, trustee, partnership, corporation, or other legal entity.  "Person" may refer to more than one individual or entity.

    (9) "Secured party" means the legal owner when referring to a titled mobile home, or the lender securing a loan through a mortgage, deed of trust, or real estate contract when referring to land or land containing an untitled manufactured home pursuant to this chapter.

    (10) "Security interest" means an interest in property to secure payment of a loan made by a secured party to a borrower.

    (11) "Title" or "titled" means a certificate of ownership issued pursuant to chapter 46.12 RCW.

 

                              PART VI

                        GENERAL PROVISIONS

 

    NEW SECTION.  Sec. 601.  This act takes effect July 1, 1998, but local governments have until January 1, 1999, to bring applicable local codes and ordinances into compliance with sections 101 through 104 of this act and sections 201 through 205 of this act.

 

    NEW SECTION.  Sec. 602.  If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

 

    NEW SECTION.  Sec. 603.  Part headings used in this act are not any part of the law.

 


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