(a) A municipality that regulates the on-site construction or installation of industrialized housing and buildings may:
(1) require and review, for compliance with mandatory building codes, a complete set of designs, plans, and specifications bearing the council's stamp of approval for each installation of industrialized housing or buildings in the municipality;
(2) require that all applicable local permits and licenses be obtained before construction begins on a building site;
(3) require, in accordance with commission rules, that all modules or modular components bear an approved decal or insignia indicating inspection by the department; and
(4) establish procedures for the inspection of:
(A) the erection and installation of industrialized housing or buildings to be located in the municipality, to ensure compliance with mandatory building codes and commission rules; and
(B) all foundation and other on-site construction, to ensure compliance with approved designs, plans, and specifications.
(b) Procedures described by Subsection (a)(4) may require:
(1) before occupancy, a final inspection or test in accordance with mandatory building codes; and
(2) correction of any deficiency identified by the test or discovered in the final inspection.