SB996 - Manufactured housing: conformity.

Enrolled August 30, 2026 Passed IN Senate August 27, 2026 Passed IN Assembly August 25, 2026 Amended IN Assembly August 20, 2026 Amended IN Assembly August 13, 2026 Amended IN Assembly June 16, 2026 Amended IN Senate May 14, 2026 Amended IN Senate April 15, 2026 Amended IN Senate March 19, 2026 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Senate Bill No. 996 Introduced by Senator Padilla (Coauthors: Senators Allen, Caballero, Reyes, and Wahab) (Coauthors: Assembly Members Quirk-Silva, Lee, and Wicks) February 09, 2026 An act to amend Section 9102 of the Commercial Code, and to amend Section 18007 of, and to add Sections 18025.7 and 18025.8 to, the Health and Safety Code, relating to manufactured housing. LEGISLATIVE COUNSEL'S DIGEST SB 996, Padilla. Manufactured housing: conformity. The Manufactured Housing Act of 1980 sets forth various standards relating to manufactured homes, mobilehomes, special purpose commercial coaches, and commercial coaches, including, but not limited to, construction and alteration of those homes. Existing law, including the Manufactured Housing Act of 1980 and the Uniform Commercial Code–Secured Transactions, defines the term “manufactured home” for various purposes to mean a structure that, among other things, is transportable in one or more sections, is 8 body feet or more in width, or 40 body feet or more in length, in the traveling mode, or, when erected on site, is 320 or more square feet, and is built on a permanent chassis. This bill would modify that definition to mean a structure that was constructed on or after June 15, 1976, with or without a foundation system, and has the same meaning as defined in specified federal law. Existing law, pursuant to the National Manufactured Housing Construction and Safety Standards Act of 1974, authorizes the Department of Housing and Community Development to assume responsibility for the enforcement of manufactured home and mobilehome construction and safety standards relating to any issue with respect to which a federal standard has been established. Existing law also authorizes the department to adopt regulations to ensure acceptance by the United States Secretary of Housing and Urban Development of California’s plan for the administration and enforcement of federal manufactured home and mobilehome safety and construction standards. Existing law makes any person who knowingly violates any provision of the Manufactured Housing Act of 1980 or any rule or regulation issued pursuant to that act, except as specified, guilty of a misdemeanor. This bill would require the department, by July 1, 2027, to review, revise, and adopt regulations to permit the construction, installation, sale, and occupancy of a manufactured home built without a permanent chassis in parity with those applicable to a manufactured home built with a permanent chassis. The bill would exempt those regulations from the rulemaking provisions of the Administrative Procedure Act. The bill would also require the department to report to the Legislature by July 1, 2027, on the status of the above-described regulations. This bill would require the department, by July 1, 2029, to prepare and submit a report to the Legislature evaluating the statutory and administrative changes necessary to regulate, finance, title, tax, and protect homeowners in divided-tenure and leasehold homeownership arrangements, as specified, and to contract with appropriate outside parties who shall consult with certain entities, including county assessors and recorders, in preparing that report. By imposing additional duties on local officials, and by expanding the scope of a crime, this bill would impose a state-mandated local program. 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 with regard to certain mandates no reimbursement is required by this act for a specified reason. With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill Text The people of the State of California do enact as follows: SECTION 1. Section 9102 of the Commercial Code is amended to read: 9102. (a) In this division: (1) “Accession” means goods that are physically united with other goods in such a manner that the identity of the original goods is not lost. (2) “Account,” except as used in “account for,” “account statement,” “account to,” “commodity account” in paragraph (14), “customer’s account,” “deposit account” in paragraph (29), “on account of,” and “statement of account,” means a right to payment of a monetary obligation, whether or not earned by performance, (i) for property that has been or is to be sold, leased, licensed, assigned, or otherwise disposed of, (ii) for services rendered or to be rendered, (iii) for a policy of insurance issued or to be issued, (iv) for a secondary obligation incurred or to be incurred, (v) for energy provided or to be provided, (vi) for the use or hire of a vessel under a charter or other contract, (vii) arising out of the use of a credit or charge card or information contained on or for use with the card, or (viii) as winnings in a lottery or other game of chance operated or sponsored by a state, governmental unit of a state, or person licensed or authorized to operate the game by a state or governmental unit of a state. The term includes controllable accounts and health care insurance receivables. The term does not include (i) chattel paper, (ii) commercial tort claims, (iii) deposit accounts, (iv) investment property, (v) letter-of-credit rights or letters of credit, (vi) rights to payment for money or funds advanced or sold, other than rights arising out of the use of a credit or charge card or information contained on or for use with the card, or (vii) rights to payment evidenced by an instrument. (3) “Account debtor” means a person obligated on an account, chattel paper, or general intangible. The term does not include persons obligated to pay a negotiable instrument, even if the negotiable instrument evidences chattel paper. (4) “Accounting,” except as used in “accounting for,” means a record that is all of the following: (A) Signed by a secured party. (B) Indicating the aggregate unpaid secured obligations as of a date not more than 35 days earlier or 35 days later than the date of the record. (C) Identifying the components of the obligations in reasonable detail. (5) “Agricultural lien” means an interest in farm products that meets all of the following conditions: (A) It secures payment or performance of an obligation for either of the following: (i) Goods or services furnished in connection with a debtor’s farming operation. (ii) Rent on real property leased by a debtor in connection with its farming operation. (B) It is created by statute in favor of a person that does either of the following: (i) In the ordinary course of its business furnished goods or services to a debtor in connection with a debtor’s farming operation. (ii) Leased real property to a debtor in connection with the debtor’s farming operation. (C) Its effectiveness does not depend on the person’s possession of the personal property. (6) “As-extracted collateral” means either of the following: (A) Oil, gas, or other minerals that are subject to a security interest that does both of the following: (i) Is created by a debtor having an interest in the minerals before extraction. (ii) Attaches to the minerals as extracted. (B) Accounts arising out of the sale at the wellhead or minehead of oil, gas, or other minerals in which the debtor had an interest before extraction. (7) [Reserved] (8) “Bank” means an organization that is engaged in the business of banking. The term includes savings banks, savings and loan associations, credit unions, and trust companies. (9) “Cash proceeds” means proceeds that are money, checks, deposit accounts, or the like. (10) “Certificate of title” means a certificate of title with respect to which a statute provides for the security interest in question to be indicated on the certificate as a condition or result of the security interest’s obtaining priority over the rights of a lien creditor with respect to the collateral. The term includes another record maintained as an alternative to a certificate of title by the governmental unit that issues certificates of title if a statute permits the security interest in question to be indicated on the record as a condition or result of the security interest’s obtaining priority over the rights of a lien creditor with respect to the collateral. (11) (A) “Chattel paper” means either of the following: (i) A right to payment of a monetary obligation secured by specific goods, if the right to payment and security agreement are evidenced by a record. (ii) A right to payment of a monetary obligation owed by a lessee under a lease agreement with respect to specific goods and a monetary obligation owed by the lessee in connection with the transaction giving rise to the lease, if both of the following are met: (I) The right to payment and lease agreement are evidenced by a record. (II) The predominant purpose of the transaction giving rise to the lease was to give the lessee the right to possession and use of the goods. (B) “Chattel paper” does not include a right to payment arising out of a charter or other contract involving the use or hire of a vessel or a right to payment arising out of the use of a credit or charge card or information contained on or for use with the card. (12) “Collateral” means the property subject to a security interest or agricultural lien. The term includes all of the following: (A) Proceeds to which a security interest attaches. (B) Accounts, chattel paper, payment intangibles, and promissory notes that have been sold. (C) Goods that are the subject of a consignment. (13) “Commercial tort claim” means a claim arising in tort with respect to which either of the following conditions is satisfied: (A) The claimant is an organization. (B) The claimant is an individual and both of the following conditions are satisfied regarding the claim: (i) It arose in the course of the claimant’s business or profession. (ii) It does not include damages arising out of personal injury to or the death of an individual. (14) “Commodity account” means an account maintained by a commodity intermediary in which a commodity contract is carried for a commodity customer. (15) “Commodity contract” means a commodity futures contract, an option on a commodity futures contract, a commodity option, or another contract if the contract or option is either of the following: (A) Traded on or subject to the rules of a board of trade that has been designated as a contract market for such a contract pursuant to federal commodities laws. (B) Traded on a foreign commodity board of trade, exchange, or market, and is carried on the books of a commodity intermediary for a commodity customer. (16) “Commodity customer” means a person for which a commodity intermediary carries a commodity contract on its books. (17) “Commodity intermediary” means a person that is either of the following: (A) Is registered as a futures commission merchant under federal commodities law. (B) In the ordinary course of its business provides clearance or settlement services for a board of trade that has been designated as a contract market pursuant to federal commodities law. (18) “Communicate” means to do any of the following: (A) To send a written or other tangible record. (B) To transmit a record by any means agreed upon by the persons sending and receiving the record. (C) In the case of transmission of a record to or by a filing office, to transmit a record by any means prescribed by filing-office rule. (19) “Consignee” means a merchant to which goods are delivered in a consignment. (20) “Consignment” means a transaction, regardless of its form, in which a person delivers goods to a merchant for the purpose of sale and all of the following conditions are satisfied: (A) The merchant satisfies all of the following conditions: (i) They deal in goods of that kind under a name other than the name of the person making delivery. (ii) They are not an auctioneer. (iii) They are not generally known by its creditors to be substantially engaged in selling the goods of others. (B) With respect to each delivery, the aggregate value of the goods is one thousand dollars ($1,000) or more at the time of delivery. (C) The goods are not consumer goods immediately before delivery. (D) The transaction does not create a security interest that secures an obligation. (21) “Consignor” means a person that delivers goods to a consignee in a consignment. (22) “Consumer debtor” means a debtor in a consumer transaction. (23) “Consumer goods” means goods that are used or bought for use primarily for personal, family, or household purposes. (24) “Consumer-goods transaction” means a consumer transaction in which both of the following conditions are satisfied: (A) An individual incurs an obligation primarily for personal, family, or household purposes. (B) A security interest in consumer goods secures the obligation. (25) “Consumer obligor” means an obligor who is an individual and who incurred the obligation as part of a transaction entered into primarily for personal, family, or household purposes. (26) “Consumer transaction” means a transaction in which (i) an individual incurs an obligation primarily for personal, family, or household purposes, (ii) a security interest secures the obligation, and (iii) the collateral is held or acquired primarily for personal, family, or household purposes. The term includes consumer-goods transactions. (27) “Continuation statement” means an amendment of a financing statement which does both of the following: (A) Identifies, by its file number, the initial financing statement to which it relates. (B) Indicates that it is a continuation statement for, or that it is filed to continue the effectiveness of, the identified financing statement. (28) “Debtor” means any of the following: (A) A person having an interest, other than a security interest or other lien, in the collateral, whether or not the person is an obligor. (B) A seller of accounts, chattel paper, payment intangibles, or promissory notes. (C) A consignee. (29) “Deposit account” means a demand, time, savings, passbook, or similar account maintained with a bank. The term does not include investment property or accounts evidenced by an instrument. (30) “Document” means a document of title or a receipt of the type described in subdivision (b) of Section 7201. (3 [Text truncated for display. Full text available on Congress.gov.]