California Factory-Built Housing Law.

The bill text was reformatted from a traditional legislative document (with line numbers, centered headers, and formal layout) to a web page display with navigation menus, search tools, and version selection dropdowns. No substantive policy language was changed.

New Section 19976.05 defines 'quality assurance agency' as a private organization meeting department requirements to perform in-plant inspections of the manufacture of factory-built housing AND onsite inspections of factory-built housing, expanding the prior scope which only covered in-plant inspections.

Section 19992.1(a)(1) now requires local enforcement agencies to offer installation inspections first, and only after the department adopts regulations under subdivision (d) may a first user choose between a local enforcement agency or a quality assurance agency for installation inspections.

New Section 19992.1(e) provides that subdivisions (a) through (c) do not authorize a quality assurance agency to perform installation inspections, and subdivisions (b) and (c) do not become operative until the department adopts the regulations required by subdivision (d).

New Section 19992.1(f) requires a quality assurance agency performing installation inspections to coordinate with the local enforcement agency having jurisdiction and ensure inspections are conducted consistent with applicable local requirements not preempted by the part.

New Section 19992.1(d) requires the department to adopt regulations by January 1, 2029, establishing standards, qualifications, procedures, and oversight requirements for QA agencies performing installation inspections, including approval criteria, inspection requirements, reporting obligations, and conditions for suspension or revocation.

Section 19992.1(c) clarifies that even when a first user chooses a quality assurance agency for installation inspection, the local enforcement agency may still charge fees for sitework inspections for items not related to the factory-built housing installation, including grading, foundations, and landscaping.

The statewide concern finding in Section 7 now references Sections 1 through 6 (previously Sections 2 through 5) to include the new Section 19976.05 definition amendment in its application to all cities including charter cities.

New Section 1 amends Health and Safety Code Section 19982 to require DHCD to establish a fee schedule to pay and recover enforcement costs, with fees deposited into the Mobilehome-Manufactured Home Revolving Fund. The fund balance is capped at one year's worth of enforcement operating expenses, and DHCD must reduce fees if the cap is exceeded.

The bill now makes an appropriation by expanding the purposes for which moneys in the Mobilehome-Manufactured Home Revolving Fund may be used. The bill title was updated to include 'and making an appropriation therefor.'

New subsection (a)(2) in Section 19992.1 requires a first user who chooses a quality assurance agency to cover the cost of the inspection themselves, rather than having it absorbed by the local enforcement agency or the state.

The Assembly version's amendment to Section 19991.1 (allowing local building departments to elect to perform in-plant inspections of factory-built housing) was removed entirely from the Senate version.

State-mandated local program designation changed from 'no' to 'yes,' reflecting that the bill now imposes costs on local agencies that trigger state mandate reimbursement analysis.

The vote requirement changed from a simple majority to two-thirds of each house, and the fiscal committee review changed from 'no' to 'yes,' indicating the bill now requires fiscal analysis due to the new appropriation.

New Section 19991(b) states that nothing in the chapter shall be construed to alter the authority of a local enforcement agency to issue or withhold a certificate of occupancy in accordance with any other law. This protects local agencies' existing permitting and occupancy certification powers from being overridden by the factory-built housing provisions.

Section 19992.1(b) now includes a new paragraph (2) that allows a local enforcement agency to impose an inspection fee exceeding 50% of the equivalent nonfactory-built housing fee if the agency provides substantial evidence of the reasonable cost to conduct inspections, as part of a written finding and adopted resolution or ordinance.

Section 19992.2 now includes a new subdivision (b) that allows a local enforcement agency to impose a permitting fee exceeding 50% of the equivalent nonfactory-built housing fee if the agency provides substantial evidence of the reasonable cost to review permits, as part of a written finding and adopted resolution or ordinance.

Language changed from 'establish' to 'impose' for both inspection fees and permitting fees, shifting the focus from setting a fee schedule to the actual act of charging the fee.

First users of factory-built housing can now choose whether installation inspection is performed by the local enforcement agency or by a quality assurance agency acting on behalf of and under supervision of the state department (new Section 19992.1).

Local enforcement agencies are capped at charging no more than 50 percent of the equivalent inspection fee for non-factory-built housing when inspecting factory-built housing installation (new Section 19992.1(b)).

If a first user selects a quality assurance agency for installation inspection, the local enforcement agency is prohibited from charging any inspection fee (new Section 19992.1(c)).

Local enforcement agencies are prohibited from setting permitting fees for factory-built housing that exceed 50 percent of the equivalent permitting fee for non-factory-built housing (new Section 19992.2).

Fiscal committee review changed from 'no' to 'yes' and state-mandated local program changed from 'no' to 'yes', reflecting the new obligations imposed on local agencies.

Neither local enforcement agencies nor quality assurance agencies may disassemble, damage, or destroy factory-built housing while inspecting its installation (new language in Section 19992 and cross-reference to new Section 19992.1).

The bill now amends Sections 19991 and 19992 of the Health and Safety Code and adds two new sections (19992.1 and 19992.2), rather than only making nonsubstantive changes to Section 19991.1 as in the introduced version.

A statewide concern declaration (Section 5) states that adequate housing is a matter of statewide concern due to severe shortage at all income levels, making the new provisions applicable to all cities including charter cities.

A state mandates reimbursement provision (Section 6) was added, stating no reimbursement is required for certain costs because the act creates or changes a crime, but other mandated costs would be reimbursed per Government Code Part 7.