NOTICE IS HEREBY GIVEN that pursuant to s. 101.96 Stats., as created by 2005 Wisconsin Act 45, the Department of Commerce will hold a public hearing on proposed rules under Chs. Comm 5, 20, 21 and 27 relating to installation of manufactured homes and affecting small business.

The public hearing will be held as follows:

Date and Time:	Location
Monday, July 17, 2006 at 1:00 p.m.	201 W. Washington Avenue Conference Room 3C Madison

Interested persons are invited to appear at the hearing and present comments on the proposed rules. Persons making oral presentations are requested to submit their comments in writing. Persons submitting comments will not receive individual responses. The hearing record on this proposed rulemaking will remain open until July 28, 2006, to permit submittal of written comments from persons who are unable to attend the hearing or who wish to supplement testimony offered at the hearing. Written comments should be submitted to Jim Quast, at the Department of Commerce, P.O. Box 2689, Madison, WI 53701-2689, or Email at jim.quast@ wisconsin.gov.

This hearing is held in an accessible facility. If you have special needs or circumstances that may make communication or accessibility difficult at the hearing, please call (608) 266-8741 or (608) 264-8777 (TTY) at least 10 days prior to the hearing date. Accommodations such as interpreters, English translators, or materials in audio tape format will, to the fullest extent possible, be made available upon a request from a person with a disability.

Statutes interpreted:   Section 101.96, Stats., as created
  by 2005 Wisconsin Act 45

Statutory authority:   Section 101.96, Stats., as created
  by 2005 Wisconsin Act 45

Related Statute or Rule: Section 101.63 (1), Stats.

Explanation of Agency Authority. Section 101.96 (1) (a), Stats., requires the Department of Commerce to establish installation standards for the safe installation of manufactured homes in this state. Section 101.96 (1) (b), Stats., requires the department to establish a method for ensuring compliance with the installation standards, and to establish criteria for the licensure of 3rd party inspectors. Section 101.96 (2), Stats., requires the department to establish a program for the licensure of manufactured home installers. The installer license program must include license eligibility, an examination, an examination waiver procedure, license term, and license fees.

Summary of Proposed Rules. The proposed rules consist of new requirements in chapters Comm 5 and 20 to address the licensure of manufactured home installers, and the installation and inspection of manufactured homes.

The proposed rules for the licensure of manufactured home installers consist of new requirements under section Comm 5.327 in chapter Comm 5. Those rules contain qualification requirements consistent with the provisions in 2005 Wisconsin Act 45. The proposed rules require persons installing manufactured homes to be licensed after January 1, 2007. Completion of educational coursework which includes an exam is required to obtain the license unless the person provides evidence of having actively participated in the installation of at least 10 manufactured homes. The term of the license is 4 years, and a specified number of hours of continuing education are required for renewal of the license.

The proposed rules establishing installation requirements for manufactured homes are incorporated into the current rules in chapter Comm 21 of the Uniform Dwelling Code. The installation of manufactured homes produced on or after the effective date of the rules must utilize acceptable practices that address soil mechanics, site preparation, structural support, anchorage, and connections. The Department anticipates that installation practices being proposed by the federal Department of Housing and Urban Development currently under Title 24 CFR Part 3285 – Model Manufactured Home Installation Standards once finalized will be recognized by the Department of Commerce as an acceptable installation practice. The requirements in chapter Comm 27 are moved to chapters Comm 20 and 21, and chapter Comm 27 is repealed. As part of the Uniform Dwelling Code, the installation of a manufactured home will be administered and enforced by various certified UDC inspectors.

The proposed rules clarify administrative procedures regarding record keeping of permit applications, plan approvals, inspections and enforcement actions. A proposed rule revision also clarifies the application of thermal envelop requirements with respect to ground source heat pumps. Proposed rules also update various national standards to the latest editions that are currently referenced in the Uniform Dwelling Code.

Comparison with Federal Regulations. An Internet-based search of the Code of Federal Regulations (CFR) found the following existing federal regulations relating to the installation and inspection of manufactured homes.

• Title 24 CFR Part 3282 – Manufactured Home Procedural and Enforcement Regulations. This regulation in the federal Department of Housing and Urban Development contains the procedures for conducting inspections and investigations necessary to enforce the federal manufactured home construction and safety standards under Title 24 CFR Part 3280.

• Title 24 CFR Part 3280 – Manufactured Home Construction and Safety Standards. This regulation in the federal Department of Housing and Urban Development contains the standards for the design, construction, transportation, fire safety, plumbing, heat-producing and electrical systems of manufactured homes which are designed to be used as dwelling units.

These federal regulations apply to different subjects and do not address the same activities as compared to the proposed rules.

An Internet-based search of the 2004 and 2005 issues of the Federal Register found the following proposed regulations relating to the installation and inspection of manufactured homes.

• Federal Register, Vol. 70, No. 79, Tuesday, April 26, 2005, 24 CFR Parts 3280 and 3285, Model Manufactured Home Installation Standards, proposed rule. The proposed regulations under Part 3285 contain standards for the installation of new manufactured homes, including standards for the completion of certain aspects necessary to join all sections of multi-section homes.

Comparison with Rules in Adjacent States. An Internet- based search of adjacent states' rules found the following regulations that include requirements relating to the installation and inspection of manufactured homes.

• Illinois has state regulations requiring manufactured homes to be tied down in accordance with the state tie down installation requirements, the home manufacturer's instructions and the tie down manufacturer's instructions. Illinois also requires manufactured homes to be installed by a licensed installer. Licensed installers must complete a 10-hour installation course approved by the Department of Public Health. Inspections of new community sites are required before placement of homes.

• Iowa has state regulations applying to the installation of manufactured homes and the licensure of home installers, administered by the Department of Public Safety. The state installation regulations consist of standards for piers and tie downs, and require installations to be performed by a certified manufactured home installer. Installer certification consists of submitting an application describing the applicant's training and experience related to manufactured home installation. Inspections of home installations are made upon request of the home owner.

• Michigan has state regulations applying to the installation of manufactured homes and the licensing of home installers, administered by the Department of Consumer and Industry Services. The regulations require installation in accordance with the manufacturer's installation instructions. Applicants for the installer license must complete a department-approved installation instruction program. Field inspections of manufactured home communities are performed by the department.

• Minnesota has state regulations applying to the installation of manufactured homes and the licensure of manufactured home installers, administered by the Department of Administration. The regulations require installation in accordance with the manufacturer's installation instructions and specified support and stabilizing requirements. Passage of an examination is required for the installer license. Inspections of home installations are made upon request of the home owner.

Summary of Factual Data and Analytical Methodologies.

In developing the proposed rules the Department reviewed the federal regulations under the Manufactured Housing Improvement Act of 2000 relating to Model Manufactured Home Installation Standards.

The Department also utilizes advisory councils in analyzing and developing proposed revisions for manufactured homes. The councils involved in the review of the proposed rules were the Manufactured Homes, and Home Parks Advisory Council, the Manufactured Housing Council, and the Uniform Dwelling Code Council. These councils involve a variety of organizations whose memberships include many types of small businesses. The Department utilizes these councils to gather information on potential impacts in complying with the both the technical and administrative requirements of the codes. A responsibility of council members is to bring forth concerns their respective organizations may have with the requirements, including concerns regarding economic impacts. (Copies of the council meetings summaries are on file in the Safety and Building Division.)

An economic impact report has not been required pursuant to s. 227.137, Stats.

Analysis and Supporting Documents Used to Determine Effect on Small Business or in Preparation of Economic Impact Report. The proposed rules reflect the mandates of 2005 Wisconsin Act 45 which was proposed and supported by the Wisconsin Housing Alliance. Members of this group include manufactured home installers, dealers, manufacturers and manufactured home community owners. Act 45 was the result of a federal HUD initiative under 24 CFR Part 3285.

The requirements relating to the installation of manufactured homes impact businesses of all sizes. The rules impact a variety of businesses, including small businesses, particularly those businesses that produce, sell, install or inspect manufactured homes.

The potential compliance effects of the rules occur on two basic levels, administrative and technical. Pursuant to federal law and 2005 Wisconsin Act 45, beginning on January 1, 2007 the installation of manufactured homes must occur under the supervision of licensed installers. The Department believes that the number of manufactured home installer businesses to be less than 50 based upon an estimate from the Wisconsin Housing Alliance. The renewal of an installer's license will be contingent upon fulfilling continuing education obligations.

The installation of a manufactured home under the UDC program will necessitate acquiring a permit and inspections. In those portions of the state where administration and enforcement of the program is by the Department through contracts with independent inspection agencies, the Department anticipates the permit and inspection fees to be approximately $350 per installation. The application for the permit may be made by the home owner or their designated agent which could be the installer, manufacturer, the dealer or some one else.

The code establishes technical standards that are to be adhered to when installing manufactured homes.

The Department believes that the proposed rules would have a minimal additional impact on small business based upon a determination from HUD which indicated that the costs and cost impacts do not represent a significant economic effect on either an industry wide or per-home basis. (Federal Register/Vol. 70, No. 79/ Tuesday, April 26, 2005 p. 21516)

The proposed rules have been developed with the assistance of the following Advisory Councils:

Name     Representing

Phil Blazkowski   Inspector

Brian Brown     Sewer/Water Service Provider

Gregg Cleveland   Fire Chief

Joseph Dentice, Jr.   Community Operator

Mark Flood     Community Owner

John Geise     Manufacturer

Pete Halverson     Manufactured Home Dealer/
    Salesperson

Ron Middleton     Community Owner

Al Rhinerson     Installer

Tom Schrader     Public

Kristen Zehner     Manufactured Home Owner

Manufactured Housing Code Council

Name     Representing

Steve Andreske   Manufacturer

Dan Curran     Inspector

John Geise     Manufacturer

Bart Huntington   Manufactured Home Dealer

Ross Kinzler     Manufactured Housing Industry
    Association

Bob Kluwin     Manufactured Housing Industry
    Supplier

Harry Kreuser     Labor

Ron Middleton     Manufactured Home Community
    Owners