16B.75 INTERSTATE COMPACT ON INDUSTRIALIZED/MODULAR BUILDINGS.
The state of Minnesota ratifies and approves the following compact:
INTERSTATE COMPACT ON INDUSTRIALIZED/MODULAR BUILDINGS
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
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.
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.
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.
For every three state commissioners that have been appointed in the manner described, those
state commissioners shall select one additional commissioner who shall be a representative of
manufacturers of residential- or commercial-use industrialized/modular buildings. For every six
state commissioners that have been appointed in the manner described, the state commissioners
shall select one additional commissioner who shall be a representative of consumers of
industrialized/modular buildings. 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 the ratio of state commissioners
to representative commissioners described herein.
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 the ratio described herein 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 commissioner shall be appointed by the
President of the United States, or in such other manner as may be provided by Congress.
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.
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.
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 the
state commissioners and one member of the industry commissioners and one member of the
(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.
POWER AND AUTHORITY
In addition to the powers conferred elsewhere in this compact, the commission shall have
(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
(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
(14) Enter into contracts and agreements, including but not limited to, interim reciprocal
agreements with noncompacting states.
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 decennial 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.
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
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.
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.
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.
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.
History: 1990 c 458 s 2; 1995 c 254 art 4 s 1