AMENDED IN SENATE AUGUST 21, 2026

AMENDED IN SENATE AUGUST 20, 2026

AMENDED IN SENATE JULY 2, 2026

AMENDED IN SENATE JUNE 22, 2026

AMENDED IN ASSEMBLY APRIL 27, 2026

AMENDED IN ASSEMBLY MARCH 19, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

93

Introduced by Assembly Members Wicks and Quirk-Silva

(Coauthors: Assembly Members Caloza, Mark González, Harabedian, and Hoover)

February 10, 2026

An act to amend Sections 19967, 19969.3, 19971, 19975.1, 19981, 19993, and 25227 of, and to add Sections 19966.1, 19971.1, and 19993.1 to, the Health and Safety Code, to amend Section 6012.7 of the Revenue and Taxation Code, and to amend Sections 321 and 387 of the Vehicle Code, relating to housing.

Vote: majority   Appropriation: no   Fiscal committee: yes   Local program: yes

LEGISLATIVE COUNSEL’S DIGEST

Existing law, the California Building Standards Law, establishes the California Building Standards Commission within the Government Operations Agency. Existing law requires the commission to approve and adopt building standards and to codify those standards in the California Building Standards Code.

Existing law, the California Factory-Built Housing Law, generally regulates the design, manufacture, and installation of factory-built housing, as defined and specified. That law specifically and entirely reserves to local jurisdictions certain local requirements, including local use zone requirements, snow load requirements, and wind pressure requirements. That law provides that any person who violates any of those provisions and other specified law is guilty of a misdemeanor, as specified.

This bill also would prohibit a city, county, city and county, or district from imposing or enforcing local building standards applicable to a factory-built housing structure, as defined, that exceed or differ from the applicable mandatory standards contained in the California Building Standards Code. The bill would authorize a city or county to make changes or modifications in the requirements contained in the provisions published in the California Building Standards Code that are reasonably necessary to maintain minimum health and safety because of local climatic, geological, or topographical conditions, subject to the city or county making a specified finding. The bill would create a rebuttable presumption in favor of a determination that facilitates the use of factory-built housing and allows a project to qualify as a factory-built housing structure.

This bill would define certain key terms for purposes of the California Factory-Built Housing Law. In this regard, the bill would define “building assembly” to mean assembled construction materials, components, subsystems, subassemblies or other systems designed for use in, or as part of, factory-built housing, and “factory-built housing structure” as a residential building where at least ⅔ of the new or converted square footage is designated for residential use and in which at least 30% of the residential use portion of the building is built using factory-built housing. The bill would recast the definition of “factory-built housing” to mean, among other things, a residential building, dwelling unit, building component, building assembly, or building system that is manufactured in a specified manner.

The bill would make other conforming changes to definitions in the California Factory-Built Housing Law, the Sales and Use Tax Law, and the Vehicle Code.

By adding to the duties of local officials, and expanding the scope of a crime, this bill would impose a state-mandated local program.

The bill would include findings that certain changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for specified reasons.

The people of the State of California do enact as follows:

SECTION 1.

Section 19966.1 is added to the Health and Safety Code, to read:

19966.1.

“Building assembly” means assembled construction materials, components, subsystems, subassemblies, or other systems designed for use in, or as part of, factory-built housing, which may include structural, electrical, mechanical, plumbing, and fire protection systems and other systems affecting health and safety. However, “building assembly” does not include appliances or equipment, such as heaters, stoves, refrigerators, or air conditioners, which have been listed and labeled by an approved testing and listing agency.

SEC. 2.

Section 19967 of the Health and Safety Code is amended to read:

19967.

“Building component” means any subsystem, subassembly, or other system designed for use in, or as part of, a structure, which may include structural, electrical, mechanical, plumbing, and fire protection systems and other systems affecting health and safety that bears the insignia of the department and that is either wholly manufactured or is in substantial part manufactured at an offsite location to be wholly or partially assembled onsite in accordance with building standards published in the California Building Standards Code and other regulations adopted by the commission pursuant to Section 19990, and is manufactured in such a manner that all concealed parts or processes of manufacture cannot be inspected before installation at the building site without disassembly, damage, or destruction of the component. However, “building component” does not include appliances or equipment, such as heaters, stoves, refrigerators, or air conditioners, which have been listed and labeled by an approved testing and listing agency.

SEC. 3.

Section 19969.3 of the Health and Safety Code is amended to read:

19969.3.

“Design approval agency” means a private organization meeting the requirements specified in regulations of the department to perform evaluation of factory-built housing plans and specifications.

SEC. 4.

Section 19971 of the Health and Safety Code is amended to read:

19971.

“Factory-built housing” means a residential building, dwelling unit, as defined in Section 19970, or an individual dwelling room or combination of rooms thereof, building component, as defined in Section 19967, building assembly, as defined in Section 19966.1, or building system, as defined in Section 19967.1 manufactured in such a manner that all concealed parts or processes of manufacture cannot be inspected before installation at the building site without disassembly, damage, or destruction of the part, including units designed for use as part of an institution for resident or patient care, that is either wholly manufactured or is in substantial part manufactured at an offsite location to be wholly or partially assembled onsite in accordance with building standards published in the California Building Standards Code and other regulations adopted by the commission pursuant to Section 19990. Factory-built housing does not include a manufactured home, as defined in Section 18007, a mobilehome, as defined in Section 18008, a recreational vehicle, as defined in Section 18010, or a commercial modular, as defined in Section 18012.5.

SEC. 5.

Section 19971.1 is added to the Health and Safety Code, to read:

19971.1.

“Factory-built housing structure” means a residential building where at least two-thirds of the new or converted square footage is designated for residential use and in which at least 30 percent of the residential use portion of the building is built using factory-built housing, as defined in Section 19971, and calculated based on the building’s area, volume, or size, as determined by the licensed design professional responsible for the project and subject to concurrence by the department or design approval agency.

SEC. 6.

Section 19975.1 of the Health and Safety Code is amended to read:

19975.1.

“Local inspection agency” means the building department of a city, county, or city and county, which has been certified by the department, and which has assumed responsibility for inspection of in-plant manufacture as provided by Section 19991.1.

SEC. 7.

Section 19981 of the Health and Safety Code is amended to read:

19981.

(a) All factory-built housing bearing an insignia of approval pursuant to Section 19980 shall be deemed to comply with the requirements of all ordinances or regulations enacted by any city, city and county, county, or district which may be applicable to the construction of housing. No city, city and county, county, or district shall require submittal of plans for any factory-built housing manufactured, or to be manufactured, pursuant to this part for the purpose of determining compliance with this part or the regulations promulgated thereunder, or for determining compliance with any local construction requirement, except as provided in Sections 19993 and 19993.1.

(b) No factory-built housing bearing a department insignia of approval pursuant to Section 19980 shall be in any way modified prior to installation unless approval is first obtained from the department.

(c) No factory-built housing shall be in any way modified during installation unless approval for the modification is first obtained from the local enforcement agency.

SEC. 8.

Section 19993 of the Health and Safety Code is amended to read:

19993.

(a) Local use zone requirements, local snow load requirements, local wind pressure requirements, local fire zones, building setback, side and rear yard requirements, site development and property line requirements, as well as the review and regulation of architectural and aesthetic requirements are hereby specifically and entirely reserved to local jurisdictions notwithstanding any requirement of this part.

(b) Local requirements enumerated in subdivision (a) imposed on factory-built housing pursuant to the authority granted by this section shall not vary substantially from the requirements imposed on other residential buildings of similar size.

SEC. 9.

Section 19993.1 is added to the Health and Safety Code, to read:

19993.1.

(a) Notwithstanding Section 19993 and except as otherwise provided in this section, a city, county, city and county, or district shall not impose or enforce local building standards applicable to a factory-built housing structure that exceeds or differs from the applicable mandatory standards contained in the California Building Standards Code.

(b) A city, county, city and county, or district shall not impose or enforce local amendments to Part 6 and Part 11 of Title 24 of the California Code of Regulations for energy efficiency and green building standards on factory-built housing structures that exceed the mandatory minimum building standards contained in the California Building Standards Code.

(c) A city or county may make changes or modifications in the requirements contained in the provisions published in the California Building Standards Code and the other regulations adopted pursuant to Section 17922, as it determines, pursuant to the provisions of Section 17958.7.

(d) (1) Pursuant to Section 17958.7, the governing body of a city or county, before making any modifications or changes pursuant to Section 17958.5, shall make an express finding that such modifications or changes are reasonably necessary to maintain minimum health and safety because of local climatic, geological, or topographical conditions, including, but not limited to, wildfire risk and flood risk.

(2) A finding made pursuant to paragraph (1) shall be available as a public record.

(3) A copy of those findings, together with the modification or change expressly marked and identified to which each finding refers, shall be filed with the California Building Standards Commission. No modification or change shall become effective or operative for any purpose until the finding and the modification or change have been filed with the California Building Standards Commission.

(e) In interpreting or applying this subdivision, there shall be a rebuttable presumption in favor of a determination that facilitates the use of factory-built housing and allows a project to qualify as a factory-built housing structure under this section. The presumption may be overcome only upon a written finding, supported by a preponderance of the evidence, that the determination would conflict with an applicable state building standard or create a specific, adverse impact on public health or safety.

SEC. 10.

Section 25227 of the Health and Safety Code is amended to read:

25227.

A person shall not engage in any of the following on land that is subject to a recorded land use restriction pursuant to former Section 25229, 25230, or 25398.7, as those sections read on January 1, 2012, or pursuant to Section 25202.5, 25221, or 79055, unless the person obtains a specific approval in writing from the department for the land use on the land in question:

(a) A new use of the land, other than the use, modification, or expansion of an existing industrial or manufacturing facility or complex on land that is owned by, or held for the beneficial use of, the facility or complex on or before January 1, 1981.

(b) Subdivision of the land, as that term is used in Division 2 (commencing with Section 66410) of Title 7 of the Government Code, except that this subdivision does not prevent the division of a parcel of land so as to divide that portion of the parcel that contains hazardous materials, as defined in subdivision (d) of Section 25260, from other portions of that parcel.

(c) Construction or placement of a building or structure on the land that is intended for use as any of the following, or the new use of an existing structure for the purpose of serving as any of the following:

(1) (A) Except as provided in subparagraph (B), a residence, including a mobilehome or factory-built housing constructed or installed for use as permanently occupied human habitation.

(B) The addition of rooms or living space to an existing single-family dwelling or other minor repairs or improvements to residential property that do not change the use of the property, increase the population density, or impair the effectiveness of a response action, shall not constitute construction or placement of a building or structure for purposes of subparagraph (A).

(2) A hospital for humans.

(3) A school for persons under 21 years of age.

(4) A day care center for children.

(5) A permanently occupied human habitation, other than those used for industrial purposes.

SEC. 11.

Section 6012.7 of the Revenue and Taxation Code is amended to read:

6012.7.

(a) For the purposes of this part, “gross receipts” from the sale of factory-built housing, and the “sales price” of factory-built housing, sold or stored, used, or otherwise consumed in this state shall be 40 percent of the sales price of the factory-built housing to the consumer.

(b) For purposes of this section, “factory-built housing” includes:

(1) A residential building, dwelling unit, as defined in Section 19970 of the Health and Safety Code, individual dwelling room or combination of rooms thereof, building component, as defined in Section 19967 of the Health and Safety Code, building assembly, as defined in Section 19966.1 of the Health and Safety Code, or building system, as defined in Section 19967.1 of the Health and Safety Code, manufactured in such a manner that all concealed parts or processes of manufacture cannot be inspected before installation at the building site without disassembly, damage, or destruction of the part, including units designed for use as part of an institution for resident or patient care, that is either wholly manufactured or is in substantial part manufactured at an offsite location to be wholly or partially assembled onsite in accordance with building standards published in the California Building Standards Code and other regulations adopted by the commission Department of Housing and Community Development pursuant to Section 19990 of the Health and Safety Code or in accordance with applicable local building requirements if such factory-built housing is inspected and approved by the local enforcement agency at the place of, and during the time of, manufacture.

(2) “Modular housing,” which is a three-dimensional box or cube-shaped structure or structures making up one or more rooms of a residential building.

(3) “Sectionalized housing,” which generally consists of two modules which form a total living unit.

(4) “Modular,” “utility,” or “wet cores,” which are three-dimensional habitable rooms or modules and which are generally comprised of a kitchen or a bathroom or bathrooms.

(c) For purposes of this section, “factory-built housing” does not include:

(1) A “mobilehome,” as defined in Section 18008 of the Health and Safety Code.

(2) “Precut housing packages” where more than 50 percent of the package consists of precut lumber only.

(3) “Panelized construction,” such as walls or components that may become one or more rooms of a building, unless a complete housing package is provided by the builder or manufacturer, such as by providing wall panels, floors, and a roof which will form a complete housing structure.

(4) “Porches” or “awnings” which are not purchased as a part of the original housing package.

(d) If a purchaser certifies in writing to a retailer that the factory-built housing purchased will be consumed in a manner or for a purpose entitling the retailer to exclude 60 percent of the gross receipts or sales price from the measure of tax, and uses the property in some other manner or for some other purpose, the purchaser shall be liable for payment of tax measured by 60 percent of the sales price.

SEC. 12.

Section 321 of the Vehicle Code is amended to read:

321.

“Factory-built housing” means the same as defined in Section 19971 of the Health and Safety Code. As used in this code, factory-built housing is a trailer coach which is in excess of eight feet in width or in excess of 40 feet in length.

SEC. 13.

Section 387 of the Vehicle Code is amended to read:

387.

“Manufactured home” is a manufactured home, as defined in Section 18007 of the Health and Safety Code, a commercial coach, as defined in Section 18001.8 of the Health and Safety Code, a mobilehome, as defined in Section 18008 of the Health and Safety Code, factory-built housing, as defined in Section 19971 of the Health and Safety Code, and a trailer coach which is in excess of 102 inches in width, or in excess of 40 feet in overall length measured from the foremost point of the trailer hitch to the rear extremity of the trailer. Manufactured home does not include a recreational vehicle, as defined in Section 18010 of the Health and Safety Code.

SEC. 14.

The Legislature finds and declares that the provision of adequate housing, in light of the severe shortage of housing at all income levels in this state, is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Section 9 of this act adding Section 19993.1 to the Health and Safety Code applies to all cities, including charter cities.

SEC. 15.

No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act or because costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.