SENATE BILL REPORT

SB 6649

As Reported By Senate Committee On:

Financial Services, Insurance & Housing, February 5, 2004

Title: An act relating to retaining fees for mobile/manufactured homes and factory built housing and commercial structures.

Brief Description: Retaining fees for mobile/manufactured homes and factory built housing and commercial structures.

Sponsors: Senators Benton, Keiser, Berkey and Winsley; by request of Department of Labor & Industries.

Brief History:

Committee Activity: Financial Services, Insurance & Housing: 2/3/04, 2/5/04 [DPS].

SENATE COMMITTEE ON FINANCIAL SERVICES, INSURANCE & HOUSING

Majority Report: That Substitute Senate Bill No. 6649 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Benton, Chair; Berkey, Keiser, Murray, Prentice and Roach.

Staff: Jennifer Arnold (786-7543)

Background: In 2001 the Legislature created a joint legislative task force to review the regulation of mobile/manufactured home alteration and repair. In 2002 the Legislature supported the task force's recommendations and encouraged the relevant agencies to conduct a pilot project to test an interagency coordinated system for processing mobile/manufactured home alteration permits. As part of implementing the pilot project, the Department of Labor and Industries was authorized to adopt a temporary statewide fee schedule, allowing the department to restructure its fees and billing process.

The temporary fee schedule, under which the department is currently operating, decreased fees for mobile/manufactured home alteration permits and increased fees for plan review and inspection services for factory-built housing and commercial structures. These fee increases were allowed to exceed the fiscal growth factor by up to 40 percent, as necessary, to fund the cost of administering the factory-assembled structures program. Indigent permit applicants may obtain a fee waiver for mobile/manufactured home alteration permits.

On April 1, 2004, the department's authority to adopt a temporary fee schedule expires. After expiration, the department must adopt the fee schedule that was in place prior to the temporary pilot schedule, adjusted for inflation.

Summary of Substitute Bill: The expiration date for the department's authority to adopt statewide fee schedules is extended from April 1, 2004, to April 1, 2009. Therefore, the department may continue to operate under the fee schedule system currently in use and is not required to revert back to the fee schedule that was in place prior to the temporary schedule established in 2002.

The fee waiver for indigent applicants for mobile/manufactured home alteration permits continues to exist.

Substitute Bill Compared to Original Bill: The expiration date of April 1, 2004, for the department's authority to adopt a temporary fee schedule is not eliminated, but rather extended to April 1, 2009.

Appropriation: None.

Fiscal Note: Available.

Effective Date: The bill contains an emergency clause and takes effect on March 31, 2004.

Testimony For: An important part of the bill is to waive fees for indigent persons, which is significant for those without much money. Further, alteration fees can be significant even to those who are not indigent. Not only is a reduced fee schedule important for many, but also increased and improved information sharing, development of brochures, and public education has made life much better for the housing community. The current schedules in use are a reflection of several years of effort.

Testimony Against: None.

Testified: PRO: Suzanne Mager, Dept. of Labor and Industries; Bob Mitchell, WA Association of Realtors.