Colorado Legislative Council Staff

STATE

REVISED FISCAL IMPACT

(replaces fiscal impact dated January 6, 1999)

Drafting Number:

Prime Sponsor(s):

LLS 99-0110

Sen. Powers

Rep. Taylor

Date:

Bill Status:

Fiscal Analyst:

February 11, 1999

House Business Affairs

Steve Tammeus (303-866-2756)

 

TITLE:            CONCERNING THE INSPECTION OF CERTAIN MANUFACTURED UNITS.



Fiscal Impact Summary

FY 1999/2000

FY 2000/2001

State Revenues

General Fund


-$323,184


-$323,184

State Expenditures

General Fund


-$68,625


-$68,625

FTE Position Change

-1.0 FTE

-1.0 FTE

Other State Impact: TABOR

Effective Date: 90 days after adjournment unless a referendum petition is filed.

Appropriation Summary for FY 1999-2000:

Department of Local Affairs - ($68,625 and 1.0 FTE) - General Fund

Local Government Impact: None.



Summary of Legislation


            This reengrossed bill declares the General Assembly's intent that state supervision of compliance with government-approved codes for manufactured housing be accomplished primarily through the use of private inspection and certification entities to the extent allowed by the State Constitution, the State Personnel System Act, Article 50 of Title 24 of the Colorado Revised Statutes, and rules promulgated by the State Personnel board. The bill authorizes the Division of Housing in the Department of Local Affairs to review and approve quality assurance representatives (state and private) that intend to perform these in-state and out-of-state inspections.


            The bill authorizes the State Housing Board, under the Department of Local Affairs, to establish uniform construction and maintenance standards for factory-built housing. The bill repeals the board's authority to promulgate rules and regulations concerning the safety of equipment of camper trailers and camper coaches. The bill authorizes the board to promulgate rules establishing standards for private inspection and certification entities to perform the Division of Housing's certification and inspection of in-state and out-of-state manufactured housing units. These standards are to not prohibit a manufacturer from having the option to contract with the division or an authorized quality assurance representative to perform inspection and certification functions.

            The bill requires all factory-built housing or factory-built nonresidential units offered for sale within the state to comply to the construction codes as adopted by the board. All new factory-built housing must bear an insignia of approval issued by an authorized quality assurance representative. All factory built nonresidential units manufactured, repaired, or sold in the state must bear an insignia of approval issued by the division or an authorized quality assurance representative.


            The bill repeals the division's authority to establish fees to pay the costs of spot inspections. The bill authorizes the division to establish fees to pay the costs of taking representative samples of the product and evaluating the performance of authorized quality assurance representatives, and the administration of the program to certify factory-built housing and nonresidential units.


            The bill revises the definitions of "camping trailer", "fifth wheel trailer", "travel trailer", and "truck camper" to meet the definitions set forth in the American National Standard Institute's (ANSI) standard A119.2. The bill prohibits any person from manufacturing or selling any new recreational vehicle or park trailer that is not manufactured to the ANSI standard.


            The bill repeals the following statutory provisions regarding standards for camper trailers and camper coaches:

 

               the advisory committee on camper trailers and camper coaches;

               certification of camper trailers and camper coaches;

               fees for insignias of approval issued by the division;

               recognition of similar standards; and

               cooperation with the Department of Revenue.



State Revenues


            This bill will eliminate the division's recreational vehicle inspection program consisting of the issuance of approval insignias, plan checking, and re-inspections. The division assesses and collects fees for these three functions; the fees are deposited to the state General Fund. The division collects a fee for every approval insignia placed on every unit at the manufacturer's plant prior to shipment into this state. Plan checking fees are paid to the division by manufacturers wishing to obtain approval for products intended to be sold within the state. The amount of the plan checking fee is dependent upon the type of plan to be reviewed. The division also assesses a fee for re-inspection of any units that have been issued "red tags" for deviations from the manufacturer's approved plans. Table 1 provides a summary of the division's estimate of the annual General Fund revenue reduction per the provisions of this bill.



Table 1 - RV Inspection Program

Fee Revenue Impact

Type of Fee

Current Fee

Proposed Fee

Fee Change

# of Units

Total Fee

Approval Insignias

$20

$0

($20)

6,526

($130,520)

Plan Checking

$88

$0

($88)

2,078

($182,864)

Re-inspection

$100

$0

($100)

98

($9,800)

Total Revenue Impact

($323,184)



State Expenditures


            The elimination of the recreational vehicle inspection program will reduce the division's annual General Fund expenditures as shown in Table 2.


Table 2 - RV Inspection Program

Expenditure Impact

 

FY 1999-2000

FY 2000/2001

Personal Services

Inspector

(1.0 FTE - $59,776)

(1.0 FTE - $59,776)

Operating Expenses

(8,849)

(8,849)

Total Expenses

(1.0 FTE - $68,625)

(1.0 FTE - $68,625)



State Appropriations


            This fiscal note would imply the Department of Local Affairs would require a General Fund appropriation reduction of $68,625 and 1.0 FTE for FY 1999-2000.



Departments Contacted

 

            Local Affairs              State Auditor              Law