HOUSE BILL REPORT

                  HB 1688

             As Reported By House Committee On:

            Trade, Economic Development & Housing

                       Appropriations

Title:  An act relating to manufactured housing installation.

Brief Description:  Installing manufactured homes.

Sponsors:  Representatives Campbell, Forner, Roland, Tate, Mastin, Conway, Shin and Sheldon.

Brief History:

  Reported by House Committee on:

Trade, Economic Development & Housing, March 2, 1993, DPS;

Appropriations, March 6,1993, DPS(TEH-A APP).

HOUSE COMMITTEE ON TRADE, ECONOMIC DEVELOPMENT & HOUSING

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  Signed by 9 members:  Representatives Wineberry, Chair; Shin, Vice Chair; Campbell; Conway; Morris; Quall; Sheldon; Springer; and Valle.

Minority Report:  Do not pass.  Signed by 5 members:  Representatives Forner, Ranking Minority Member; Chandler, Assistant Ranking Minority Member; Casada; Schoesler; and Wood.

Staff:  Charlie Gavigan (786-7340).

Background:  It is a violation of the state Consumer Protection Act if a contractor, manufactured home dealer, or manufactured home manufacturer improperly installs a manufactured home which: (1) causes a health and safety risk to the occupants of the manufactured home; or (2) severely hinders the use and enjoyment of the manufactured home.

Although there are penalties for the improper installation of a manufactured home, there is no training or certification required for a person to install a manufactured home.

Summary of Substitute Bill:  A certification program for manufactured home installers is established in the Department of Community Development.  After July 1, 1994, no manufactured home may be installed without a certified manufactured home installer being on the installation site.  It is a violation for a manufactured home dealer or manufacturer to engage an uncertified person to install a manufactured home.  At least one certified manufactured home installer must be on the installation site.

Persons who wish to be certified to install manufactured homes must apply to the Department of Community Development.  The applicant must demonstrate sufficient experience in, as well as demonstrated general knowledge of, manufactured home installation.  The director of the Department of Community Development reviews applications for certification and determines which applicants are eligible to take the training course and examination for certification.  Any applicants for certification after July 1, 1995, must provide written evidence of 12 months of experience under the direct supervision of a certified manufactured home installer.  Before July 1, 1995, the department shall require applicants to provide evidence of experience in lieu of the experience under the supervision of a certified installer.

The department must prepare an examination to test the applicant's general knowledge of the technical information and practical procedures necessary for installing manufactured homes, applicable federal and state laws relating to manufactured homes, and local government regulations related to manufactured home installations.  A certificate of manufactured home installation is renewable every three years.  The department shall determine the continuing education that is necessary for renewal of the certificate.  If a person fails to renew the certificate by the renewal date, the person must retake the examination.  The department shall charge fees for the issuance, renewal, and reinstatement of all certificates, and for the training courses and examinations required for certification.  The fees may only be used to cover the full costs of administering and enforcing the program.

A certificate of manufactured home installation allows the holder to install manufactured homes throughout the state and within any city or county without any other license, permit, or fee.  Any local building or installation permits or fees must still be obtained or paid.  The certificate may me revoked by the Department of Community Development if: the certificate was obtained through fraud or error; the holder is found to be incompetent as a result of multiple violations of the state Installation Code; the holder's bond has expired, exhausted, or terminated; or the holder has violated a statute or rule implementing the certification law.  The holder of a certificate must be given written notice of the intent to revoke the certificate, which includes the right to request a hearing on the revocation.  All hearings are conducted in accordance with the Administrative Procedures Act.

An authorized representative, including a local building official, may investigate violations and inspect sites at which manufactured home installation work is being performed.  Procedures are established for the issuance and appeals of infractions.  Each day in which a person improperly engages in the installation of manufactured homes is a separate infraction.  Each worksite at which a person improperly engages in the installation of manufactured homes is a separate infraction.  Infractions are heard and determined under the Administrative Procedures Act.  If a person is found to have committed an infraction, a monetary penalty of $1,000 is assessed.

Substitute Bill Compared to Original Bill:  The substitute bill emphasizes education and training, makes several clarifications, and provides that an owner of a manufactured home can install his or her own home, and that only the supervisor of a manufacturer's set-up crew must be certified.  The process for resolving violations is modified.

Fiscal Note:  Requested. 

Effective Date of Substitute Bill:  The bill contains an emergency clause and takes effect immediately.

Testimony For:  Improper installation of manufactured homes can cause significant problems for the consumer and can also hurt the industry. This bill requires that persons who are in the business of installing manufactured homes have a minimum amount of training and bear some responsibility for their installation work.

Testimony Against:  None.

Witnesses:  Representative Tom Campbell, prime sponsor (supports); Ron Clarke, Washington Manufactured Housing Association (supports); Corine Foster, Department of Community Development (neutral), and Mike McSorley, Washington State Energy Office (neutral).

HOUSE COMMITTEE ON APPROPRIATIONS

Majority Report:  The substitute bill by Committee on Trade, Economic Development & Housing be substituted therefor and the substitute bill as amended by Committee on Appropriations do pass.  Signed by 17 members:  Representatives Locke, Chair; Valle, Vice Chair; Carlson, Assistant Ranking Minority Member; Ballasiotes; Basich; Dellwo; Dorn; Dunshee; G. Fisher; Jacobsen; Lemmon; Leonard; Linville; Rust; Sommers; Wineberry; and Wolfe.

Minority Report:  Do not pass.  Signed by 6 members:  Representatives Silver, Ranking Minority Member; Cooke; Sehlin; Sheahan; Stevens; and Talcott.

Staff:  Nancy Stevenson (786-7137).

Summary of Recommendation of Committee on Appropriations Compared to Recommendation of Committee on Trade, Economic Development & Housing:  A technical change is made to clarify that certification fees are deposited into the general fund.

Fiscal Note:  Requested March 7, 1993.

Effective Date:  The bill contains an emergency clause and takes effect immediately.

Testimony For:  Improper installation of manufactured homes can cause significant problems for the consumer and can also hurt the industry.  The certification program is self-supported through fees.

Testimony Against:  None.

Witnesses:  Ron Clarke, Washington Manufactured Housing Association, (supports).