TO AMEND THE INDEPENDENT INSPECTIONS OF A MODULAR BUILDING FOR CODE COMPLIANCE; AND TO DECLARE AN EMERGENCY.

2025 Regular Session Introduced by Mary Bentley and 1 co-sponsor

HB 1205 allows Arkansas modular building manufacturers to choose more accredited inspection agencies, reducing costs for consumers and boosting economic growth.

Notification that HB1205 is now Act 101

Purpose and Intent

House Bill 1205 (HB 1205) aims to amend existing regulations regarding the independent inspections of modular buildings in Arkansas to enhance compliance with state codes. The bill seeks to broaden the options for manufacturers of modular structures by allowing them to contract with a wider range of accredited third-party inspection agencies. This change is intended to promote competition, reduce costs for consumers, and stimulate economic activity within the state.

Key Provisions

Amendment to Arkansas Code: The bill modifies Arkansas Code § 20-34-101(a)(1) to permit manufacturers of modular or factory-built structures (excluding manufactured housing regulated by HUD) to engage with independent third-party compliance assurance or inspection agencies that are accredited by recognized bodies, such as the International Accreditation Service, Inc., or other ISO/IEC 17011-compliant organizations.

Emergency Clause: The bill includes an emergency clause, which allows it to take effect immediately upon approval by the Governor or after a specified period if not vetoed. This clause emphasizes the urgency of the changes due to current economic restrictions affecting manufacturers.

Impact

Manufacturers: The bill primarily affects manufacturers of modular and factory-built structures in Arkansas by expanding their options for third-party inspections. This flexibility is expected to lower compliance costs and enhance operational efficiency.

Consumers: By fostering competition among accredited inspection agencies, the bill aims to reduce costs for consumers purchasing modular buildings, potentially leading to lower prices and improved quality of construction.

Economic Activity: The legislation is designed to stimulate economic growth by removing barriers to competition in the modular building industry, which could lead to increased investment and job creation in the sector.

Procedural Aspects

Timeline:

Introduced on January 22, 2025.
Passed through various readings and amendments in both the House and Senate, with significant actions occurring on February 3, February 12, and ultimately being notified as Act 101 on February 18, 2025.

Amendments: Two amendments were adopted during the legislative process to clarify language and ensure compliance with accreditation standards.

Conclusion

HB 1205 represents a significant shift in the regulatory landscape for modular buildings in Arkansas, aiming to enhance compliance processes, reduce costs, and promote economic growth. The emergency clause underscores the urgency of these changes, reflecting the need for immediate action to support the state's manufacturing sector.

Bill