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ARIZONA STATE SENATE

Fifty-Seventh Legislature, Second Regular Session

 

FACT SHEET FOR H.B. 2868

 

installation license; insurance; rules

Purpose

Adds a proof of insurance requirement for manufactured or mobile home installers licensed with the Arizona Department of Housing (ADOH). Removes certain rulemaking requirements of the Board of Manufactured Housing (Board).

Background

The Office of Manufactured Housing (OMH), established within ADOH, is responsible for maintaining and enforcing quality and safety standards for, and installation of, manufactured and mobile homes, factory-built buildings and accessory structures. The affairs of the OMH must be conducted consistently with minimum standards of the U.S. Department of Housing and Urban Development to be the designated agency for manufactured homes and related industries. The OMH must implement all existing laws and regulations mandated by the federal government, its agencies and Arizona for such purposes (A.R.S. § 41-4002). The Board is a nine-member, Governor-appointed body with the duty of adopting rules governing the construction, installation and safety standards for manufactured homes, factory-built buildings and accessory structures (‎A.R.S. §§ 41-4009 and 41-4010).

ADOH must establish qualifications and requirements for issuing a manufacturer, dealer, broker, salesperson and installer license relating to manufactured homes, mobile homes and factory-built buildings. To obtain a license, the applicant must submit to ADOH a notarized application on forms prescribed by ADOH together with required information, evidence of qualifications, license fees and a fingerprint clearance card. Licenses expire one year after the date of issuance and require an application for renewal (A.R.S. §§ 41-1758.01; 41-4025; and 41-4027).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1.   Requires an applicant for an installation license for a manufactured or mobile home in Arizona to provide evidence of and maintain insurance in an amount that will cover the cost of repairing all damage to the manufactured or mobile home and its supports that is caused by the installer during the installation, including replacement of the manufactured or mobile home.

2.   Allows ADOH to require the licensed installer to provide proof of insurance at any time.

3.   Requires the licensed installer to notify ADOH of any changes or cancellations regarding the licensed installer's insurance coverage.

4.   Requires an application for renewal of a of a current license involving the production, installation or sale of a manufactured or mobile home to include evidence of:

a)   a valid fingerprint clearance card; and

b)   proof of required insurance, if applicable.

5.   Removes the requirement for the Board to adopt:

a)   separate rules for dealer trust and escrow accounts trust and escrow accounts;

b)   rules establishing procedures for cosmetic complaints filed by purchasers of new manufactured homes, including rules for determining the date of installation of a new manufactured home; and

c)   rules establishing procedures for scheduling repair and replacement of cosmetic complaint items.

6.   Makes technical and conforming changes.

7.   Becomes effective on the general effective date.

House Action

COM               2/17/26      DP       8-1-2-0

3rd Read          3/11/26                  47-4-8-0-1

Prepared by Senate Research

March 22, 2026

JT/NRG/ci