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Key: (1) language to be deleted (2) new language

  

                         Laws of Minnesota 1990 

                        CHAPTER 458-S.F.No. 2431 
           An act relating to buildings; changing the definition 
          of public building in the state building code; 
          ratifying the interstate compact on 
          industrialized/modular buildings; amending Minnesota 
          Statutes 1989 Supplement, section 16B.60, subdivision 
          6; proposing coding for new law in Minnesota Statutes, 
          chapter 16B. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
     Section 1.  Minnesota Statutes 1989 Supplement, section 
16B.60, subdivision 6, is amended to read: 
    Subd. 6.  [PUBLIC BUILDING.] "Public building" means a 
building and its grounds, the cost of which is paid for by the 
state or a state agency regardless of its cost, and a school 
district building project the cost of which is $100,000 or more. 
    Sec. 2.  [16B.75] [INTERSTATE COMPACT ON 
INDUSTRIALIZED/MODULAR BUILDINGS.] 
    The state of Minnesota ratifies and approves the following 
compact: 
 INTERSTATE COMPACT ON INDUSTRIALIZED/MODULAR BUILDINGS 
 ARTICLE I
 FINDINGS AND DECLARATIONS OF POLICY
    (1) The compacting states find that: 
    (a) Industrialized/modular buildings are constructed in 
factories in the various states and are a growing segment of the 
nation's affordable housing and commercial building stock. 
    (b)  The regulation of industrialized/modular buildings 
varies from state to state and locality to locality, which 
creates confusion and burdens state and local building officials 
and the industrialized/modular building industry. 
    (c) Regulation by multiple jurisdictions imposes additional 
costs, which are ultimately borne by the owners and users of 
industrialized/modular buildings, restricts market access and 
discourages the development and incorporation of new 
technologies. 
    (2) It is the policy of each of the compacting states to: 
    (a) Provide the states which regulate the design and 
construction of industrialized/modular buildings with a program 
to coordinate and uniformly adopt and administer the states' 
rules and regulations for such buildings, all in a manner to 
assure interstate reciprocity. 
    (b) Provide to the United States Congress assurances that 
would preclude the need for a voluntary preemptive federal 
regulatory system for modular housing, as outlined in Section 
572 of the Housing and Community Development Act Of 1987, 
including development of model standards for modular housing 
construction, such that design and performance will insure 
quality, durability and safety; will be in accordance with 
life-cycle cost-effective energy conservation standards; all to 
promote the lowest total construction and operating costs over 
the life of such housing. 
 ARTICLE II
 DEFINITIONS
    As used in this compact, unless the context clearly 
requires otherwise: 
    (1) "Commission" means the interstate 
industrialized/modular buildings commission. 
    (2) "Industrialized/modular building" means any building 
which is of closed construction, i.e. constructed in such a 
manner that concealed parts or processes of manufacture cannot 
be inspected at the site, without disassembly, damage or 
destruction, and which is made or assembled in manufacturing 
facilities, off the building site, for installation, or assembly 
and installation, on the building site.  "Industrialized/modular 
building" includes, but is not limited to, modular housing which 
is factory-built single-family and multifamily housing 
(including closed wall panelized housing) and other modular, 
nonresidential buildings.  "Industrialized/modular building" 
does not include any structure subject to the requirements of 
the National Manufactured Home Construction and Safety Standards 
Act of 1974. 
    (3) "Interim reciprocal agreement" means a formal 
reciprocity agreement between a noncompacting state wherein the 
noncompacting state agrees that labels evidencing compliance 
with the model rules and regulations for industrialized/modular 
buildings, as authorized in Article VIII, section (9), shall be 
accepted by the state and its subdivisions to permit 
installation and use of industrialized/modular buildings.  
Further, the noncompacting state agrees that by legislation or 
regulation, and appropriate enforcement by uniform 
administrative procedures, the noncompacting state requires all 
industrialized/modular building manufacturers within that state 
to comply with the model rules and regulations for 
industrialized/modular buildings. 
    (4) "State" means a state of the United States, territory 
or possession of the United States, the District of Columbia, or 
the Commonwealth of Puerto Rico. 
    (5) "Uniform administrative procedures" means the 
procedures adopted by the commission (after consideration of any 
recommendations from the rules development committee) which 
state and local officials, and other parties, in one state, will 
utilize to assure state and local officials, and other parties, 
in other states, of the substantial compliance of 
industrialized/modular building construction with the 
construction standard of requirements of such other states; to 
assess the adequacy of building systems; and to verify and 
assure the competency and performance of evaluation and 
inspection agencies. 
    (6) "Model rules and regulations for industrialized/modular 
buildings" means the construction standards adopted by the 
commission (after consideration of any recommendations from the 
rules development committee) which govern the design, 
manufacture, handling, storage, delivery and installation of 
industrialized/modular buildings and building components.  The 
construction standards and any amendments thereof shall conform 
insofar as practicable to model building codes and referenced 
standards generally accepted and in use throughout the United 
States. 
ARTICLE III
CREATION OF COMMISSION 
    The compacting states hereby create the Interstate 
Industrialized/Modular Buildings Commission, hereinafter called 
commission.  Said commission shall be a body corporate of each 
compacting state and an agency thereof.  The commission shall 
have all the powers and duties set forth herein and such 
additional powers as may be conferred upon it by subsequent 
action of the respective legislatures of the compacting states. 
 ARTICLE IV
 SELECTION OF COMMISSIONERS
    The commission shall be selected as follows.  As each state 
becomes a compacting state, one resident shall be appointed as 
commissioner.  The commissioner shall be selected by the 
governor of the compacting state, being designated from the 
state agency charged with regulating industrialized/modular 
buildings or, if such state agency does not exist, being 
designated from among those building officials with the most 
appropriate responsibilities in the state.  The commissioner may 
designate another official as an alternate to act on behalf of 
the commissioner at commission meetings which the commissioner 
is unable to attend. 
    Each state commissioner shall be appointed, suspended, or 
removed and shall serve subject to and in accordance with the 
laws of the state which said commissioner represents; and each 
vacancy occurring shall be filled in accordance with the laws of 
the state wherein the vacancy exists. 
    When three state commissioners have been appointed in the 
manner described, those state commissioners shall select one 
additional commissioner who shall be a representative of 
manufacturers of industrial- or commercial-use 
industrialized/modular buildings.  When six state commissioners 
have been appointed in the manner described, the state 
commissioners shall select a second additional commissioner who 
shall be a representative of consumers of industrialized/modular 
buildings.  With each addition of three state commissioners, the 
state commissioners shall appoint one additional representative 
commissioner, alternating between a representative of 
manufacturers of industrialized/modular buildings and consumers 
of industrialized/modular buildings.  The ratio between state 
commissioners and representative commissioners shall be three to 
one.  In the event states withdraw from the compact or, for any 
other reason, the number of state commissioners is reduced, the 
state commissioners shall remove the last added representative 
commissioner as necessary to maintain a ratio of state 
commissioners to representative commissioners of three to one. 
    Upon a majority vote of the state commissioners, the state 
commissioners may remove, fill a vacancy created by, or replace 
any representative commissioner, provided that any replacement 
is made from the same representative group and a three to one 
ratio is maintained.  Unless provided otherwise, the 
representative commissioners have the same authority and 
responsibility as the state commissioners. 
    In addition, the commission may have as a member one 
commissioner representing the United States government if 
federal law authorizes such representation.  Such commissioner 
shall not vote on matters before the commission.  Such 
commission shall be appointed by the President of the United 
States, or in such other manner as may be provided by Congress. 
 ARTICLE V
 VOTING
    Each commissioner (except the commissioner representing the 
United States government) shall be entitled to one vote on the 
commission.  A majority of the commissioners shall constitute a 
quorum for the transaction of business.  Any business transacted 
at any meeting of the commission must be by affirmative vote of 
a majority of the quorum present and voting. 
 ARTICLE VI
 ORGANIZATION AND MANAGEMENT
    The commission shall elect annually, from among its 
members, a chairman, a vice chairman and a treasurer.  The 
commission shall also select a secretariat, which shall provide 
an individual who shall serve as secretary of the commission. 
The commission shall fix and determine the duties and 
compensation of the secretariat.  The commissioners shall serve 
without compensation, but shall be reimbursed for their actual 
and necessary expenses from the funds of the commission. 
    The commission shall adopt a seal. 
    The commission shall adopt bylaws, rules, and regulations 
for the conduct of its business, and shall have the power to 
amend and rescind these bylaws, rules, and regulations. 
    The commission shall establish and maintain an office at 
the same location as the office maintained by the secretariat 
for the transaction of its business and may meet at any time, 
but in any event must meet at least once a year.  The chairman 
may call additional meetings and upon the request of a majority 
of the commissioners of three or more of the compacting states 
shall call an additional meeting.  
    The commission annually shall make the governor and 
legislature of each compacting state a report covering its 
activities for the preceding year. Any donation or grant 
accepted by the commission or services borrowed shall be 
reported in the annual report of the commission and shall 
include the nature, amount and conditions, if any, of the 
donation, gift, grant or services borrowed and the identity of 
the donor or lender.  The commission may make additional reports 
as it may deem desirable. 
 ARTICLE VII
 COMMITTEES
    The commission will establish such committees as it deems 
necessary, including, but not limited to, the following: 
    (1) An executive committee which functions when the full 
commission is not meeting, as provided in the bylaws of the 
commission.  The executive committee will ensure that proper 
procedures are followed in implementing the commission's 
programs and in carrying out the activities of the compact.  The 
executive committee shall be elected by vote of the commission.  
It shall be comprised of at least three and no more than nine 
commissioners, selected from those commissioners who are 
representatives of the governor of their respective state. 
    (2) A rules development committee appointed by the 
commission.  The committee shall be consensus-based and consist 
of not less than seven nor more than 21 members.  Committee 
members will include state building regulatory officials; 
manufacturers of industrialized/modular buildings; private, 
third-party inspection agencies; and consumers.  This committee 
may recommend procedures which state and local officials, and 
other parties, in one state, may utilize to assure state and 
local officials, and other parties, in other states, of the 
substantial compliance of industrialized/modular building 
construction with the construction standard requirements of such 
other states; to assess the adequacy of building systems; and to 
verify and assure the competency and performance of evaluation 
and inspection agencies.  This committee may also recommend 
construction standards for the design, manufacture, handling, 
storage, delivery and installation of industrialized/modular 
buildings and building components.  The committee will submit 
its recommendations to the commission, for the commission's 
consideration in adopting and amending the uniform 
administrative procedures and the model rules and regulations 
for industrialized/modular buildings.  The committee may also 
review the regulatory programs of the compacting states to 
determine whether those programs are consistent with the uniform 
administrative procedures or the model rules and regulations for 
industrialized/modular buildings and may make recommendations 
concerning the states' programs to the commission.  In carrying 
out its functions, the rules committee may conduct public 
hearings and otherwise solicit public input and comment. 
    (3) Any other advisory, coordinating or technical 
committees, membership on which may include private persons, 
public officials, associations or organizations.  Such 
committees may consider any matter of concern to the commission. 
    (4) Such additional committees as the commission's bylaws 
may provide. 
 ARTICLE VIII
 POWER AND AUTHORITY
    In addition to the powers conferred elsewhere in this 
compact, the commission shall have power to: 
    (1) Collect, analyze and disseminate information relating 
to industrialized/modular buildings. 
    (2) Undertake studies of existing laws, codes, rules and 
regulations, and administrative practices of the states relating 
to industrialized/modular buildings. 
    (3) Assist and support committees and organizations which 
promulgate, maintain and update model codes or recommendations 
for uniform administrative procedures or model rules and 
regulations for industrialized/modular buildings. 
    (4) Adopt and amend uniform administrative procedures and 
model rules and regulations for industrialized/modular buildings.
    (5) Make recommendations to compacting states for the 
purpose of bringing such states' laws, codes, rules and 
regulations and administrative practices into conformance with 
the uniform administrative procedures or the model rules and 
regulations for industrialized/modular buildings, provided that 
such recommendations shall be made to the appropriate state 
agency with due consideration for the desirability of uniformity 
while also giving appropriate consideration to special 
circumstances which may justify variations necessary to meet 
unique local conditions. 
    (6) Assist and support the compacting states with 
monitoring of plan review programs and inspection programs, 
which will assure that the compacting states have the benefit of 
uniform industrialized/modular building plan review and 
inspection programs. 
    (7) Assist and support organizations which train state and 
local government and other program personnel in the use of 
uniform industrialized/modular building plan review and 
inspection programs. 
    (8) Encourage and promote coordination of state regulatory 
action relating to manufacturers, public or private inspection 
programs. 
    (9) Create and sell labels to be affixed to 
industrialized/modular building units, constructed in or 
regulated by compacting states, where such labels will evidence 
compliance with the model rules and regulations for 
industrialized/modular buildings, enforced in accordance with 
the uniform administrative procedures.  The commission may use 
receipts from the sale of labels to help defray the operating 
expenses of the commission. 
    (10) Assist and support compacting states' investigations 
into and resolutions of consumer complaints which relate to 
industrialized/modular buildings constructed in one compacting 
state and sited in another compacting state. 
    (11) Borrow, accept or contract for the services of 
personnel from any state or the United States or any subdivision 
or agency thereof, from any interstate agency, or from any 
institution, association, person, firm or corporation. 
    (12) Accept for any of its purposes and functions under 
this compact any and all donations, and grants of money, 
equipment, supplies, materials and services (conditional or 
otherwise) from any state or the United States or any 
subdivision or agency thereof, from any interstate agency, or 
from any institution, person, firm or corporation, and may 
receive, utilize and dispose of the same. 
    (13) Establish and maintain such facilities as may be 
necessary for the transacting of its business.  The commission 
may acquire, hold, and convey real and personal property and any 
interest therein. 
    (14) Enter into contracts and agreements, including but not 
limited to, interim reciprocal agreements with noncompacting 
states. 
 ARTICLE IX
 FINANCE
    The commission shall submit to the governor or designated 
officer or officers of each compacting state a budget of its 
estimated expenditures for such period as may be required by the 
laws of that state for presentation to the legislature thereof. 
    Each of the commission's budgets of estimated expenditures 
shall contain specific recommendations of the amounts to be 
appropriated by each of the compacting states.  The total amount 
of appropriations requested under any such budget shall be 
apportioned among the compacting states as follows:  one-half in 
equal shares; one-fourth among the compacting states in 
accordance with the ratio of their populations to the total 
population of the compacting states, based on the last decimal 
federal census; and one-fourth among the compacting states in 
accordance with the ratio of industrialized/modular building 
units manufactured in each state to the total of all units 
manufactured in all of the compacting states. 
    The commission shall not pledge the credit of any 
compacting state.  The commission may meet any of its 
obligations in whole or in part with funds available to it by 
donations, grants, or sale of labels:  provided that the 
commission takes specific action setting aside such funds prior 
to incurring any obligation to be met in whole or in part in 
such manner.  Except where the commission makes use of funds 
available to it by donations, grants or sale of labels, the 
commission shall not incur any obligation prior to the allotment 
of funds by the compacting states adequate to meet the same. 
    The commission shall keep accurate accounts of all receipts 
and disbursements.  The receipts and disbursements of the 
commission shall be subject to the audit and accounting 
procedures established under its bylaws.  All receipts and 
disbursements of funds handled by the commission shall be 
audited yearly by a certified or licensed public accountant and 
the report of the audit shall be included in and become part of 
the annual report of the commission. 
    The accounts of the commission shall be open at any 
reasonable time for inspection by duly constituted officers of 
the compacting states and any person authorized by the 
commission. 
    Nothing contained in this article shall be construed to 
prevent commission compliance relating to audit or inspection of 
accounts by or on behalf of any government contributing to the 
support of the commission. 
 ARTICLE X
 ENTRY INTO FORCE AND WITHDRAWAL 
    This compact shall enter into force when enacted into law 
by any three states.  Thereafter, this compact shall become 
effective as to any other state upon its enactment thereof.  The 
commission shall arrange for notification of all compacting 
states whenever there is a new enactment of the compact. 
    Any compacting state may withdraw from this compact by 
enacting a statute repealing the same.  No withdrawal shall 
affect any liability already incurred by or chargeable to a 
compacting state prior to the time of such withdrawal. 
 ARTICLE XI
 RECIPROCITY 
    If the commission determines that the standards for 
industrialized/modular buildings prescribed by statute, rule or 
regulation of compacting state are at least equal to the 
commission's model rules and regulations for 
industrialized/modular buildings, and that such state standards 
are enforced by the compacting state in accordance with the 
uniform administrative procedures, industrialized/modular 
buildings approved by such a compacting state shall be deemed to 
have been approved by all the compacting states for placement in 
those states in accordance with procedures prescribed by the 
commission. 
 ARTICLE XII
 EFFECT ON OTHER LAWS AND JURISDICTION 
    Nothing in this compact shall be construed to: 
    (1) Withdraw or limit the jurisdiction of any state or 
local court or administrative officer or body with respect to 
any person, corporation or other entity or subject matter, 
except to the extent that such jurisdiction pursuant to this 
compact, is expressly conferred upon another agency or body. 
    (2) Supersede or limit the jurisdiction of any court of the 
United States. 
 ARTICLE XIII 
 CONSTRUCTION AND SEVERABILITY 
    This compact shall be liberally construed so as to 
effectuate the purposes thereof.  The provisions of this compact 
shall be severable and if any phrase, clause, sentence or 
provision of this compact is declared to be contrary to the 
constitution of any state or of the United States or the 
applicability thereof to any government, agency, person or 
circumstances is held invalid, the validity of the remainder of 
this compact and the applicability thereof to any government, 
agency, person or circumstance shall not be affected thereby.  
If this compact shall be held contrary to the constitution of 
any state participating therein, the compact shall remain in 
full force and effect as to the remaining party states and in 
full force and effect as to the state affected as to all 
severable matters. 
    Presented to the governor April 12, 1990 
    Signed by the governor April 16, 1990, 4:22 p.m.

Official Publication of the State of Minnesota Revisor of Statutes