Modular unit construction, installation, issuance of permits for construction or installation, and setup shall be in accordance with the following:

1. (1) Construction, installation, and setup of a modular unit, module, or panelized system shall be in accordance with the State Construction Code.

2. (2) A local regulator has the responsibility and exclusive authority to:

   1. (a) review and approve the elements of construction documents related to onsite construction;
   2. (b) issue a permit for construction of a modular building unit or a modular building unit site modification;
   3. (c) perform an inspection of onsite construction of a modular building unit or modular building unit site modification;

   4. (d) verify that a module or panelized system is installed in accordance with:

      1. (i) the modular unit's construction documents;
      2. (ii) the State Construction Code; and
      3. (iii) applicable state and local requirements;
   5. (e) verify that a decal has been permanently affixed to a modular building unit;
   6. (f) subject to Subsection (3), establish and assess fees related to the construction and installation of modular units;

   7. (g) upon discovery of visible damage to a module or panelized system, or discovery of evidence that would cause a reasonable inspector to believe that a modular building unit may not be in compliance with the State Construction Code or construction documents:

      1. (i) inform the Division of Facilities Construction and Management; and
      2. (ii) proceed in accordance with the guidance in Modular Building Institute Standards 1200 and 1205;
   8. (h) approve any proposed alteration or change to a set of construction documents so long as the alteration or change complies with the requirements of this chapter;
   9. (i) inspect any alteration to a modular unit or panelized system that occurred after installation;

   10. (j) notwithstanding any other provision of state law, the construction code and standards, agency rule, or local ordinance:

       1. (i) prevent the use or occupancy of a modular building unit that, in the opinion of the local regulator, contains a serious defect or presents an imminent safety hazard; and
       2. (ii) report the prevention of use or occupancy of a modular building unit to the Division of Facilities Construction and Management and the division; and
   11. (k) perform all other duties and responsibilities set forth in the Modular Building Institute Standards 1200 and 1205 not otherwise listed in this section.
3. (3) Fees related to the construction and installation of modular building units may include building permit fees, inspection fees, impact fees, and administrative fees.

4. (4)

   1. (a) In addition to any immunity and protections set forth in the Utah Governmental Immunity Act, a municipality is not liable for a claim arising solely from the offsite construction of a module, panelized system, or modular building unit.
   2. (b) A local regulator may provide written notice with the certificate of occupancy that explains the municipality's limitations of liability pursuant to this section and the Utah Governmental Immunity Act.
5. (5) An inspection of the construction, modification of, or setup of a modular unit shall conform with this chapter.
6. (6) A local regulator has the responsibility to issue an approval for the political subdivision in which a modular unit is to be setup or is setup.

7. (7) Nothing in this section precludes:

   1. (a) a local regulator from contracting with a qualified third party to act as its designee for the inspection or plan review provided in this section; or
   2. (b) the state from entering into an interstate compact for third party inspection of the construction of a modular unit.

Amended by Chapter 277, 2025 General Session