I
105TH CONGRESS
2D SESSION
H. R. 3634
To modernize the requirements under the National Manufactured Housing
Construction and Safety Standards Act of 1974 and to establish a
balanced consensus process for the development, revision, and interpreta-
tion of Federal construction and safety standards for manufactured
homes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 1, 1998
Mr. LAZIO of New York (for himself, Ms. HOOLEY of Oregon, Mr. CALVERT,
Mr. ETHERIDGE, Mr. MCINTOSH, Mr. NEY, Mr. ROYCE, Mrs. KELLY,
Mr. DOOLEY of California, Mr. BOSWELL, Mr. WELLER, Mr. GOODE, and
Mr. MINGE) introduced the following bill; which was referred to the Com-
mittee on Banking and Financial Services
A BILL
To modernize the requirements under the National Manufac-
tured Housing Construction and Safety Standards Act
of 1974 and to establish a balanced consensus process
for the development, revision, and interpretation of Fed-
eral construction and safety standards for manufactured
homes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND REFERENCES.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Manufactured Housing Improvement Act’’.
(b) REFERENCE.—Whenever in this Act an amend-
ment is expressed in terms of an amendment to, or repeal
of, a section or other provision, the reference shall be con-
sidered to be made to that section or other provision of
the National Manufactured Housing Construction and
Safety Standards Act of 1974 (42 U.S.C. 5401 et seq.).
SEC. 2. FINDINGS AND PURPOSES.
Section 602 (42 U.S.C. 5401) is amended to read as
follows:
‘‘FINDINGS AND PURPOSES
‘‘SEC. 602. (a) FINDINGS.—The Congress finds
that—
‘‘(1) manufactured housing plays a vital role in
meeting the housing needs of the Nation; and
‘‘(2) manufactured homes provide a significant
resource for affordable home ownership and rental
housing accessible to all Americans.
‘‘(b) PURPOSES.—The purposes of this title are—
‘‘(1) to promote the quality, durability, safety,
and affordability of manufactured housing;
‘‘(2) to promote the availability of affordable
manufactured homes and to increase homeownership
for all Americans;
‘‘(3) to provide for the establishment of prac-
tical, uniform, and, to the extent possible, perform-
ance-based Federal construction standards;
‘‘(4) to encourage innovative and cost-effective
construction techniques;
‘‘(5) to protect manufactured homeowners from
unreasonable risk of personal injury and property
damage;
‘‘(6) to establish a balanced consensus process
for the development, revision, and interpretation of
Federal construction and safety standards for manu-
factured homes and related regulations for the en-
forcement of such standards;
‘‘(7) to ensure uniform and effective enforce-
ment of Federal construction and safety standards
for manufactured homes; and
‘‘(8) to ensure that the public interest in, and
need for, affordable manufactured housing is duly
considered in all determinations relating to the Fed-
eral standards and their enforcement.’’.
SEC. 3. DEFINITIONS.
(a) IN GENERAL.—Section 603 (42 U.S.C. 5402) is
amended—
(1) in paragraph (2), by striking ‘‘dealer’’ and
inserting ‘‘retailer’’;
(2) in paragraph (12), by striking ‘‘and’’ at the
end;
(3) in paragraph (13), by striking the period at
the end and inserting a semicolon; and
(4) by adding at the end the following new
paragraphs:
‘‘(14) ‘administering organization’ means the
qualified technical or building code organization that
administers the consensus development process,
which—
‘‘(A) with respect to the period during
which 
the 
agreement 
under 
section
604(a)(2)(A) is in force, shall be the Council of
American Building Officials; and
‘‘(B) with respect to the period during
which a competitively procured contract under
section 604(a)(2)(B) is in force, shall be the or-
ganization selected by the Secretary;
‘‘(15) ‘consensus committee’ means the commit-
tee established under section 604(a)(3);
‘‘(16) ‘consensus standards development proc-
ess’ means the process by which additions, revisions,
and interpretations to the Federal manufactured
home construction and safety standards and enforce-
ment regulations shall be developed and rec-
ommended to the Secretary by the consensus com-
mittee;
‘‘(17) ‘primary inspection agency’ means a
State agency or private organization that has been
approved by the Secretary to act as a design ap-
proval primary inspection agency or a production in-
spection primary inspection agency, or both;
‘‘(18) ‘design approval primary inspection agen-
cy’ means a State agency or private organization
that has been approved by the Secretary to evaluate
and either approve or disapprove manufactured
home designs and quality control procedures;
‘‘(19) ‘production inspection primary inspection
agency’ means a State agency or private organiza-
tion that has been approved by the Secretary to
evaluate the ability of manufactured home manufac-
turing plants to comply with approved quality con-
trol procedures and with the Federal manufactured
home construction and safety standards promulgated
hereunder; and
‘‘(20) ‘monitoring’ means the process of peri-
odic review of the primary inspection agencies, by
the Secretary or by a State agency under an ap-
proved State plan pursuant to section 623, in ac-
cordance with regulations adopted by the consensus
committee and promulgated in accordance with sec-
tion 604(a)(4)(B). Such monitoring shall be for the
purpose of ensuring that the primary inspection
agencies are discharging their duties as defined
herein.’’.
(b) CONFORMING
AMENDMENTS.—The National
Manufactured Housing Construction and Safety Stand-
ards Act of 1974 is amended—
(1) in section 613 (42 U.S.C. 5412), by striking
‘‘dealer’’ each place it appears and inserting ‘‘re-
tailer’’;
(2) in section 614(f) (42 U.S.C. 5413(f)), by
striking ‘‘dealer’’ each place it appears and inserting
‘‘retailer’’;
(3) in section 615 (42 U.S.C. 5414)—
(A) in subsection (b)(1), by striking ‘‘deal-
er’’ and inserting ‘‘retailer’’;
(B) in subsection (b)(3), by striking ‘‘deal-
er or dealers’’ and inserting ‘‘retailer or retail-
ers’’; and
(C) in subsections (d) and (f), by striking
‘‘dealers’’ each place it appears and inserting
‘‘retailers’’;
(4) in section 616 (42 U.S.C. 5415), by striking
‘‘dealer’’ and inserting ‘‘retailer’’; and
(5) in section 623(c)(9), by striking ‘‘dealers’’
and inserting ‘‘retailers’’.
SEC. 4. FEDERAL MANUFACTURED HOME CONSTRUCTION
AND SAFETY STANDARDS.
Section 604 (42 U.S.C. 5304) is amended—
(1) by striking subsections (a) and (b) and in-
serting the following new subsections:
‘‘(a) ESTABLISHMENT.—
‘‘(1) AUTHORITY.—The Secretary shall estab-
lish, by order, appropriate Federal manufactured
home construction and safety standards, each of
which—
‘‘(A) shall—
‘‘(i) be reasonable and practical;
‘‘(ii) meet high standards of protec-
tion consistent with the enumerated pur-
poses of this title; and
‘‘(iii) where appropriate, be perform-
ance-based and stated objectively; and
‘‘(B) except as provided in subsection (b),
shall be established in accordance with the con-
sensus standards development process.
‘‘(2) CONSENSUS
STANDARDS
AND
REGU-
LATORY DEVELOPMENT PROCESS.—
‘‘(A) INITIAL
AGREEMENT.—Not later
than 180 days after the date of enactment of
the Manufactured Housing Improvement Act,
the Secretary shall request the Council of
American Building Officials (or the successor
organization to such Council) to, and if such or-
ganization consents, enter into an agreement,
which shall—
‘‘(i) terminate on the date on which a
contract is entered into under subpara-
graph (B); and
‘‘(ii) require the Council of American
Building Officials to—
‘‘(I) appoint the initial members
of the consensus committee under
paragraph (3);
‘‘(II) administer the consensus
standards development process until
the termination of that agreement;
and
‘‘(III) administer the consensus
development and interpretation proc-
ess for procedural and enforcement
regulations and regulations specifying
the permissible scope and conduct of
monitoring until the termination of
that agreement.
If the Council of American Building Officials
(or the successor organization to such Council)
declines to enter into the agreement as provided
in this subparagraph, the Secretary shall enter
into the agreement under this subparagraph
with an organization described in subparagraph
(B).
‘‘(B) COMPETITIVELY
PROCURED
CON-
TRACT.—Upon the expiration of the 4-year pe-
riod beginning on the date on which all mem-
bers of the consensus committee are appointed
under paragraph (3), the Secretary shall, using
competitive procedures (as such term is defined
in section 4 of the Office of Federal Procure-
ment Policy Act), enter into a competitively
awarded contract with a qualified technical or
building code organization (which may be the
Council of American Building Officials) under
which the organization shall administer the con-
sensus process for the development and inter-
pretation of the Federal standards, the proce-
dural and enforcement regulations and regula-
tions specifying the permissible scope and con-
duct of monitoring in accordance with this title.
‘‘(C) PERFORMANCE
REVIEW.—The Sec-
retary—
‘‘(i) shall periodically review the per-
formance of the administering organiza-
tion; and
‘‘(ii) may replace the administering
organization with another qualified tech-
nical or building code organization, pursu-
ant to competitive procedures, if the Sec-
retary determines in writing that the ad-
ministering organization is not fulfilling
the terms of the agreement or contract to
which the administering organization is
subject or upon the expiration of the
agreement or contract.
‘‘(3) CONSENSUS COMMITTEE.—
‘‘(A) PURPOSE.—There is established a
committee to be known as the ‘consensus com-
mittee’, which shall, in accordance with this
title—
‘‘(i) provide periodic recommendations
to the Secretary to adopt, revise, and inter-
pret the Federal manufactured housing
construction and safety standards in ac-
cordance with this subsection;
‘‘(ii) provide periodic recommenda-
tions to the Secretary to adopt, revise, and
interpret the procedural and enforcement
regulations, including regulations specify-
ing the permissible scope and conduct of
monitoring in accordance with this sub-
section; and
‘‘(iii) be organized and carry out its
business in a manner that guarantees a
fair opportunity for the expression and
consideration of various positions and for
public participation.
‘‘(B) MEMBERSHIP.—The consensus com-
mittee shall be composed of—
‘‘(i) 25 voting members appointed,
subject to approval by the Secretary, by
the administering organization from among
individuals who are qualified by back-
ground and experience to participate in the
work of the consensus committee; and
‘‘(ii) 1 member appointed by the Sec-
retary to represent the Secretary on the
‘‘(ii) LIMITATION ON PRIVATE INSPEC-
TION AGENCIES.—The number of members
appointed under subparagraph (D)(v) who
represent private inspection agencies shall
not constitute more than 20 percent of the
total number of members appointed under
subparagraph (D)(v).
‘‘(F) MEETINGS.—The consensus commit-
tee shall provide advance notice of each meeting
of the consensus committee to the Secretary
and publish advance notice of each such meet-
ing in the Federal Register. All meetings of the
consensus committee shall be open to the pub-
lic.
‘‘(G) INAPPLICABILITY OF OTHER LAWS.—
‘‘(i) ADVISORY COMMITTEE ACT.—The
consensus committee shall not be consid-
ered to be an advisory committee for pur-
poses of the Federal Advisory Committee
Act.
‘‘(ii) TITLE 18.—The members of the
consensus committee shall not be subject
to section 203, 205, 207, or 208 of title
18, United States Code, to the extent of
their proper participation as members of
the consensus committee.
‘‘(iii) ETHICS
IN
GOVERNMENT
ACT
OF 1978.—The Ethics in Government Act
of 1978 shall not apply to members of the
consensus committee to the extent of their
proper participation as members of the
consensus committee.
‘‘(H) ADMINISTRATION.—The consensus
committee and the administering organization
shall—
‘‘(i) operate in conformance with the
procedures established by the American
National Standards Institute for the devel-
opment and coordination of American Na-
tional Standards; and
‘‘(ii) apply to the American National
Standards Institute and take such other
actions as may be necessary to obtain ac-
creditation from the American National
Standards Institute.
‘‘(I) STAFF.—The administering organiza-
tion shall, upon the request of the consensus
committee, provide reasonable staff resources to
the consensus committee.
‘‘(J) DATE OF INITIAL APPOINTMENTS.—
The initial appointments of all of the members
of the consensus committee shall be completed
not later than 90 days after the date on which
an administration agreement under paragraph
(2)(A) is completed with the Council of Amer-
ican Building Officials.
‘‘(4) REVISIONS.—
‘‘(A) IN GENERAL.—Beginning on the date
on which all members of the consensus commit-
tee are appointed under paragraph (3), the con-
sensus committee shall, not less than once dur-
ing each 2-year period—
‘‘(i) consider revisions to the Federal
manufactured home construction and safe-
ty standards and procedural and enforce-
ment regulations (including the adoption of
regulations specifying the permissible scope
and conduct of monitoring); and
‘‘(ii) submit proposed revised stand-
ards and regulations to the Secretary.
‘‘(B) PUBLICATION OF PROPOSED REVISED
STANDARDS
AND
REGULATIONS.—Before sub-
mitting any proposed revised standard or regu-
lation under subparagraph (A)(ii), the consen-
sus committee shall—
‘‘(i) cause to be published in the Fed-
eral Register a notice of the proposed re-
vised standard or regulation and a descrip-
tion of the considerations and decisions of
the consensus committee under subsection
(e); and
‘‘(ii) provide an opportunity for public
comment on such proposed revised stand-
ard or regulation.
‘‘(C) PRESENTATION
OF
PUBLIC
COM-
MENTS.—Any public comments, views, and ob-
jections to a proposed revised standard or regu-
lation published under subparagraph (B) shall
be presented to the consensus committee in ac-
cordance with procedures established by the
American National Standards Institute. The
consensus committee shall cause to be published
in the Federal Register a notice of the rec-
ommended revisions of the consensus committee
to the standard or regulation, a notice of the
submission of the recommended revisions to the
Secretary, and a description of the cir-
cumstances under which the proposed revised
standards or regulations could become effective.
‘‘(5) REVIEW BY THE SECRETARY.—
‘‘(A) IN
GENERAL.—The Secretary shall
either adopt, modify, or reject a standard or
regulation, as submitted by the consensus com-
mittee under paragraph (4)(A).
‘‘(B) TIMING.—Not later than 12 months
after the date on which a standard or regula-
tion is submitted to the Secretary by the con-
sensus committee, the Secretary shall take ac-
tion regarding such standard or regulation
under subparagraph (C).
‘‘(C) PROCEDURES.—If the Secretary—
‘‘(i) adopts a standard or regulation
recommended by the consensus committee,
the Secretary shall—
‘‘(I) issue a final order without
further rulemaking; and
‘‘(II) cause the final order to be
published in the Federal Register;
‘‘(ii) determines that any standard or
regulation should be rejected because the
implementation of such standard or regula-
tion would jeopardize public health or safe-
ty or is inconsistent with the purposes of
this title, the Secretary shall—
‘‘(I) reject the standard or regu-
lation; and
‘‘(II) cause to be published in the
Federal Register a notice to that ef-
fect, together with the reason or rea-
sons for rejecting the proposed stand-
ard or regulation; or
‘‘(iii) determines that a standard or
regulation recommended by the consensus
committee should be modified because the
implementation of such standard or regula-
tion would jeopardize public health or safe-
ty or is inconsistent with the purposes of
this title, the Secretary shall—
‘‘(I) cause the proposed modified
standard or regulation to be published
in the Federal Register, together with
an explanation of the reason or rea-
sons for the determination of the Sec-
retary; and
‘‘(II) provide an opportunity for
public comment in accordance with
section 553 of title 5, United States
Code.
‘‘(D) FINAL ORDER.—Any final standard
or regulation under this paragraph shall become
effective pursuant to subsection (c).
‘‘(6) FAILURE TO ACT.—If the Secretary fails
to take final action under paragraph (5) and to pub-
lish notice of the action in the Federal Register be-
fore the expiration of the 12-month period beginning
on the date on which the proposed standard or regu-
lation is submitted to the Secretary under paragraph
(4)(A)—
‘‘(A) the recommendations of the consen-
sus committee—
‘‘(i) shall be considered to have been
adopted by the Secretary; and
‘‘(ii) shall take effect upon the expira-
tion of the 180-day period that begins
upon the conclusion of such 12-month pe-
riod; and
‘‘(B) not later than 10 days after the expi-
ration of such 12-month period, the Secretary
shall cause to be published in the Federal Reg-
ister a notice of the failure of the Secretary to
act, the revised standard or regulation, and the
effective date of the revised standard or regula-
tion, which notice shall be deemed to be an
order of the Secretary approving the revised
standards or regulations proposed by the con-
sensus committee.
‘‘(7) INTERPRETIVE
BULLETINS.—The Sec-
retary may issue interpretive bulletins to clarify the
meaning of any Federal manufactured home con-
struction and safety standard or procedural and en-
forcement regulation, subject to the following re-
quirements:
‘‘(A) REVIEW
BY
CONSENSUS
COMMIT-
TEE.—Before issuing an interpretive bulletin—
‘‘(i) the Secretary shall—
‘‘(I) submit the proposed bulletin
to the consensus committee; and
‘‘(II) provide the consensus com-
mittee with a period of 90 days to
provide written comments on the pro-
posed bulletin to the Secretary; and
‘‘(ii) if the Secretary rejects any sig-
nificant comment provided by the consen-
sus committee under clause (i), the Sec-
retary shall—
‘‘(I) provide a written expla-
nation of the reasons for the rejection
to the consensus committee;
‘‘(II) cause the proposed bulletin
and the consensus committee’s written
comments to be published in the Fed-
eral Register; and
‘‘(III) provide an opportunity for
public comment in accordance with
section 553 of title 5, United States
Code.
‘‘(B) PROPOSALS.—
‘‘(i) IN
GENERAL.—The consensus
committee may submit to the Secretary a
proposed interpretive bulletin under this
paragraph.
‘‘(ii) AUTOMATIC
APPROVAL.—If the
Secretary fails to issue or rejects a pro-
posed interpretive bulletin submitted under
clause (i) before the expiration of the 90-
day period beginning on the date on which
the bulletin is submitted to the Secretary
under clause (i), the Secretary shall—
‘‘(I) be considered to have ap-
proved the bulletin; and
‘‘(II) immediately issue the bul-
letin.
‘‘(b) OTHER ORDERS.—
‘‘(1) IN
GENERAL.—If the Secretary deter-
mines, in writing, that such action is necessary in
order to respond to a public health or safety emer-
gency, or to address an issue on which the Secretary
determines the consensus committee will not make a
timely recommendation, the Secretary may issue an
order that is not developed under the procedures set
forth in subsection (a), if the Secretary—
‘‘(A) first submits the proposed order to
the consensus committee for review; and
‘‘(B) in the case of an order addressing an
issue on which the Secretary determines that
the consensus committee will not make a timely
recommendation, affords the consensus commit-
tee 90 days to provide the views of the consen-
sus committee on the proposed order to the
Secretary.
‘‘(2) EXPLANATION REQUIRED.—If the consen-
sus committee fails to act before the expiration of
the 90-day period described in paragraph (1)(B) or
if the Secretary rejects any significant change rec-
ommended by the consensus committee under such
paragraph, the public notice of an order issued
under paragraph (1) shall include an explanation of
the reasons for such failure or rejection.
‘‘(3) RULEMAKING
PROCEDURES.—The Sec-
retary may issue an order under this subsection only
in accordance with section 553 of title 5, United
States Code.’’;
(2) in subsection (d), by adding at the end the
following: ‘‘Federal preemption under this subsection
shall be broadly and liberally construed. It shall be
the duty of the Secretary to ensure that disparate
State or local requirements or standards do not af-
fect the uniformity and comprehensiveness of the
standards promulgated hereunder. Nothing in the
preceding sentence shall affect any person’s right to
enforce the provisions of this subsection in any court
of competent jurisdiction. There is reserved to each
State the right to establish standards for the instal-
lation of manufactured homes sited within that
State and the right to enforce compliance with such
standards: Provided, That such standards shall be
consistent with the purposes of this title and with
the applicable manufacturers’ installation instruc-
tions.’’;
(3) by striking subsection (e);
(4) in subsection (f), by striking the matter pre-
ceding paragraph (1) and inserting the following:
‘‘(e) CONSIDERATIONS IN ESTABLISHING AND IN-
TERPRETING STANDARDS AND REGULATIONS.—The con-
sensus committee, in recommending standards, regula-
tions, and interpretations, and the Secretary, in establish-
ing standards or regulations, or issuing interpretations
under this section, shall—’’;
(5) by striking subsection (g);
(6) in the first sentence of subsection (j), by
striking ‘‘subsection (f)’’ and inserting ‘‘subsection
(e)’’; and
(7) by redesignating subsections (h), (i), and
(j), as subsections (f), (g), and (h), respectively.
SEC. 5. ABOLISHMENT OF NATIONAL MANUFACTURED
HOME ADVISORY COUNCIL.
Section 605 (42 U.S.C. 5404) is hereby repealed.
SEC. 6. PUBLIC INFORMATION.
Section 607 (42 U.S.C. 5406) is amended—
(1) in subsection (a)—
(A) by inserting ‘‘to the Secretary’’ after
‘‘submit’’; and
(B) by adding at the end the following:
‘‘The Secretary shall submit such cost and
other information to the consensus committee
for evaluation.’’;
(2) in subsection (d), by inserting ‘‘, the con-
sensus committee,’’ after ‘‘public’’; and
(3) by striking subsection (c) and redesignating
subsections (d) and (e) as subsections (c) and (d),
respectively.
SEC. 7. FEES.
Section 620 (42 U.S.C. 5419) is amended to read as
follows:
‘‘AUTHORITY TO ESTABLISH FEES
‘‘SEC. 620. (a) IN GENERAL.—In carrying out in-
spections under this title, in developing standards and reg-
ulations pursuant to section 604, and in promoting the
affordability and availability of manufactured housing, the
Secretary may—
‘‘(1) establish and collect from manufactured
home manufacturers, distributors, and retailers such
reasonable fees as may be necessary to offset the ex-
penses incurred by the Secretary in connection
with—
‘‘(A) conducting those inspections;
‘‘(B) administering the consensus commit-
tee as set forth in section 604;
‘‘(C) providing the funding for a noncareer
administrator for the manufactured housing
program; and
‘‘(D) promoting the availability of afford-
able manufactured homes to increase home-
ownership for all Americans; and
‘‘(2) use any fees collected under paragraph (1)
to pay expenses referred to in subparagraphs (A),
(B), (C), and (D) of paragraph (1), which shall be
exempt and separate from any limitations on the
Department of Housing and Urban Development re-
garding full-time equivalent positions and travel.
‘‘(b) PROHIBITED USE.—Neither the Secretary, an
agent of the Secretary, or the States under section 623
of this title may use any fees collected under subsection
(a) for any purpose or activities not specifically authorized
by this title.
‘‘(c) MODIFICATION.—Any fee established by the Sec-
retary under this section shall only be modified pursuant
to rulemaking in accordance with section 553 of title 5,
United States Code.
‘‘(d) APPROPRIATION AND DEPOSIT OF FEES.—
‘‘(1) IN GENERAL.—There is established in the
Treasury of the United States a fund to be known
as the ‘Manufactured Housing Fees Fund’ for de-
posit of all fees collected pursuant to subsection (a).
‘‘(2) APPROPRIATION.—Such fees shall be avail-
able for expenditure only to the extent as approved
in an annual appropriations Act.’’.
SEC. 8. ELIMINATION OF ANNUAL REPORT REQUIREMENT.
The National Manufactured Housing Construction
and Safety Standards Act of 1974 is amended—
(1) by striking section 626 (42 U.S.C. 5425);
and
(2) by redesignating sections 627 and 628 (42
U.S.C. 5426, 5401 note) as sections 626 and 627,
respectively.
SEC. 9. EFFECTIVE DATE.
The amendments made by this Act shall take effect
on the date of enactment of this Act, except that the
amendments shall have no effect on any order or interpre-
tive bulletin that is published as a proposed rule pursuant
to section 553 of title 5, United States Code, on or before
such date.
SEC. 10. SAVINGS PROVISION.
The Federal manufactured home construction and
safety standards (as such term is defined in section 603
of the National Manufactured Housing Construction and
Safety Standards Act of 1974) in effect immediately be-
fore the date of the enactment of this Act shall apply until
the effective date of the Federal manufactured home con-
struction and safety standards promulgated under sub-
section (a) or (b) of section 604 of the National Manufac-
tured Housing Construction and Safety Standards Act of
1974, as amended by this Act.
Æ