BILL ANALYSIS SENATE LOCAL GOVERNMENT COMMITTEE Senator William A. Craven, Chairman BILL NO: AB 1984 HEARING: 06/17/98 AUTHOR: Miller FISCAL: Yes VERSION: 05/21/98 CONSULTANT: Tennyson STATE STANDARDS FOR RECREATIONAL VEHICLES Background and Existing Law The statutory definition of a recreational vehicle (RV) includes motor homes, travel trailers, truck campers, and camping trailers used for recreational, emergency or other occupancy, or park trailers used for recreational or seasonal purposes. Many are located in special occupancy parks or RV parks, where some occupants have resided in older trailers for many years. California was the first state to establish health and safety standards for RVs in 1958. The state Department of Housing and Community Development (HCD) regulates RVs in two ways: (1) Third party inspectors certified by HCD inspect the RVs at the factory to ensure they meet state standards; (2) Prior to resale, HCD directly inspects used RVs sold by dealers if the RV lacks a state inspection sticker. Manufacturers and dealers who violate state regulations are subject to misdemeanor prosecution. In the 1980's, the RV industry adopted national health and safety standards promulgated by the American National Standards Institute (ANSI), a private institution consisting of industry, consumer and government representatives. RVs manufactured to ANSI standards bear an ANSI label or insignia. Over the years ANSI standards have improved so that ANSI's current standards are almost equivalent to the California state standards. The Recreational Vehicle Industry Association (RVIA) , an association of RV manufacturers, maintains its own private inspection program of five inspectors who make at least six annual unannounced visits to RV factories nationwide to assure that an RV which bears a RVIA sticker meets ANSI standards. Manufacturers that don't comply can't apply the RVIA sticker to their RVs and may be subject to discipline or expulsion from RVIA membership. The recreational vehicle industry wants to streamline RV inspections for both new and used RVs by repealing state oversight and relying instead on ANSI standards and self-enforcement. Proposed Law I. State Standards . Assembly Bill 1984 repeals the authority of the state Department of Housing and Community Development (HCD) to adopt regulations for recreational vehicle health and safety standards. AB 1984 repeals HCD's rules and regulations relating to fire prevention as they apply to RVs but retains the state requirement that no RV shall be equipped with more than one electrical power supply cord. II. ANSI Standards . AB 1984 requires RVs manufactured on or after January 1, 1999, including motor homes, travel trailers, truck campers and camping trailers, to be constructed according to ANSI standard No. A119.2, 1996 edition of the ANSI standards. Park trailers manufactured on or after January 1, 1999 must comply with ANSI standard A119.5, 1998 edition of the ANSI standards. AB 1984 requires that changes in ANSI standard A119.2 or A119.2 become operative on the 180th day following the ANSI publication date. AB 1984 provides that any RV manufactured on or after January 1, 1999 or any new RV manufactured before January 1, 1999 offered for sale, sold, rented or leased in California must bear a label or insignia indicating the manufacturer's compliance with the applicable ANSI standard in effect on the date of manufacture. III. Enforcement . AB 1984 repeals HCD's authority to enter a factory, warehouse, sales lot or establishment where RVs are manufactured, sold or leased to enforce health and safety standards for new or used RVs. The bill repeals HCD's authority to issue any state label or insignia which indicates compliance with those requirements. AB 1984 repeals provisions which make it unlawful for any person to sell or lease an RV manufactured after September 1, 1958 containing specified state structural, fire safety, plumbing, heating or electrical standards for RVs. Instead, the bill provides that ANSI standards A119.2 and A119.5 are designed to protect health and safety of persons using recreational vehicles and park trailers and that compliance with those standards can be enforced by any law enforcement agency having appropriate jurisdiction to enforce a misdemeanor violation. IV. Parks . AB 1984 prohibits an RV from occupying a lot in a special occupancy (RV) park if it does not comply with ANSI standards for recreational vehicles manufactured on or after January 1, 1999, or new recreational vehicles manufactured before January 1, 1999, unless the RV owner offers reasonable proof of compliance the newest ANSI standards. V. Declarations . AB 1984 declares that the American National Standards Institute (ANSI), after taking different views into consideration, has adopted standards for design and safety of recreational vehicles and park trailers on which interested parties have reached substantial agreement. AB 1984 declares that in order to promote government efficiency and economy and avoid duplication of services, it is appropriate to eliminate the role of HCD in enforcing and modifying construction standards for recreational vehicles (RVs). Comments 1. Eliminating duplication . There are very few differences between California and national ANSI health and safety standards for recreational vehicles. Manufacturers already have their own national inspection network for approximately 250 factories. California is one of only nine states that still inspects RVs, duplicating industry inspections. RV dealers often wait from six to eight weeks before HCD's employees inspect used RVs at a cost of $100 an hour. AB 1984 eliminates this duplication of effort, reducing costs to manufacturers, dealers, HCD and consumers without sacrificing consumer safety. 2. Five is enough ? AB 1984 eliminates the duplication of health and safety standards and RV inspections in favor of ANSI standards and private self-inspections by a national trade association. The RVIA has five inspectors to review approximately 250 factories nationwide, while HCD contracts with six third-party agencies to inspect some 50 factories. The Committee may wish to consider whether a national trade association will protect California's consumers as well as the state's current RV inspections. 3. Who will know ? Although violations of ANSI standards for RVs will still be misdemeanors in California, under RVIA's self-certification program it will be up to the consumer, not the state, to file a complaint with a district attorney alleging a violation. The Committee may wish to consider if consumers can detect violations of ANSI standards or file complaints better than HCD. 4. Delegating legislative authority ? AB 1984 incorporates specific ANSI standards by reference into state law for RVs sold, rented, or leased in California and further requires that changes in those ANSI standards become effective 180 days after their publication date. This provision effectively delegates legislative authority to ANSI. In contrast, when code wiring groups revise the Uniform Building Code, state officials review the industry's changes before adopting them as state regulations. If ANSI standards change, shouldn't HCD, which has governed RV standards for 40 years, decide whether those changes are in the public interest for California? The Committee may wish to consider an amendment to require review and approval by the Department of Housing and Community Development. 5. Constructive eviction . Under current law, RVs are not required to meet any specific construction standards in order to occupy a lot in an RV park. AB 1984 makes it unlawful for an RV without an ANSI label to occupy a space in an RV park unless the RV's owner can "reasonably prove" that the RV complies with the newest ANSI standards. Many RVs, including older trailers, are located in RV parks, or separate areas of mobilehome parks designated as RV parks, where they have been more or less permanent housing for long-term occupants. These mostly lower-income people are protected by the RV Occupancy Law from being arbitrarily evicted without "just-cause." Under AB 1984, how would RV owners prove that their older units comply with the newer ANSI standards? Can park owners evict long-term occupants under AB 1984 just because their older RVs don't meet ANSI standards? 6. Reaching a cord ? AB 1984 retains one state standard that exceeds the ANSI standard. As a safety measure, California requires RVs to have only one power supply cord to prevent consumers from being shocked or electrocuted by loose or unconnected multiple cords. The Committee may wish to consider how California's one-cord requirement will be enforced without HCD. 7. Grandfathered or not? AB 1984 makes it illegal to sell, lease, or rent an RV or park trailer manufactured before or after January 1, 1999 which does not bear an ANSI label. Older RVs manufactured after 1958 which bear a California insignia are not covered. Will it be illegal under AB 1984 to sell or lease older "California" units in the state after 1999? The Committee may wish to consider an amendment that allows RVs with a California insignia to continue to be legally sold, rented, or leased in the state. 8. Suspend, not repeal? For 40 years, California's RV standards and HCD's inspectors have helped to protect consumers' health and safety. While the RV industry has made impressive gains in self-inspections, it is not yet clear whether the industry's protections will be as reliable as public programs. Instead of repealing the state's standards and inspection program, the Legislature could temporarily suspend HCD's efforts in favor of the ANSI standards and RVIA inspections. The Committee may wish to consider requiring the RV industry to pay for two program evaluations, one after two years and the other after four years. If these evaluations find that the industry's programs work well, then the Legislature could repeal the state's programs after the fifth year. If private standards and self-inspections don't protect the public's health and safety, the Legislature can then take HCD's program out of mothballs. Assembly Actions: Assembly Housing and Community Development: 12-0 Assembly Appropriations: 21-0 Assembly Floor: 75-0 Support and Opposition (06/11/) Support : California Recreational Vehicles Dealers Association, Recreational Vehicle Industry Association, JC's RV's, Inc., Golden Way RV, Romer's Rv Center, Inc., Irvine RV Center, LaMesa RV, Bria Creation Village RV, Manteca Trailer & Camper, Inc. Opposition : Unknown.