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H0100...........................................................by BUSINESS MANUFACTURED HOMES - RETAILERS/BROKERS - Amends, repeals and adds to existing law relating to manufactured homes to revise purpose; to require criminal history checks; to provide for reinstatement; to revise definitions; to revise provisions applicable to administration; to revise fees and fee requirements; to revise provisions relating to board membership; to revise provisions applicable to disciplinary actions; to revise violation provisions; to revise penalty provisions; and to set forth additional requirements for retailers and resale brokers. 02/02 House intro - 1st rdg - to printing 02/05 Rpt prt - to Bus 02/16 Rpt out - rec d/p - to 2nd rdg 02/19 2nd rdg - to 3rd rdg 02/22 3rd rdg - PASSED - 43-26-1 AYES -- Anderson, Bell, Bilbao, Black, Block, Bock, Boe, Bolz, Brackett, Bradford, Chadderdon, Chavez, Chew, Collins, Crane, Edmunson, Hagedorn, Henbest, Henderson, Jaquet, Killen, King, LeFavour, Mathews, Pasley-Stuart, Patrick, Pence, Ring, Ringo, Roberts, Ruchti, Rusche, Sayler, Shepherd(2), Shirley, Shively, Smith(30), Smith(24), Snodgrass, Stevenson, Trail, Wills, Wood(27) NAYS -- Andrus, Barrett, Bayer, Clark, Durst, Eskridge, Hart, Harwood, Kren, Labrador, Lake, Loertscher, Luker, Marriott, McGeachin, Mortimer, Moyle, Nielsen, Nonini, Raybould, Schaefer, Shepherd(8), Thayn, Vander Woude, Wood(35), Mr. Speaker Absent and excused -- Bedke Floor Sponsor - Snodgrass Title apvd - to Senate 02/23 Senate intro - 1st rdg - to Com/HuRes 03/02 Rpt out - rec d/p - to 2nd rdg 03/05 2nd rdg - to 3rd rdg 03/08 3rd rdg - PASSED - 27-7-1 AYES -- Bair, Bastian, Bilyeu, Broadsword, Cameron, Coiner, Corder, Darrington, Davis, Gannon, Goedde, Hammond, Heinrich, Jorgenson, Kelly, Keough, Langhorst, Little, Lodge, Malepeai, McGee, McKenzie, Schroeder, Siddoway, Stegner, Stennett, Werk NAYS -- Burkett, Fulcher, Geddes, Hill, McKague, Pearce, Richardson Absent and excused -- Andreason Floor Sponsor - Broadsword Title apvd - to House 03/09 To enrol 03/12 Rpt enrol - Sp signed 03/13 Pres signed 03/14 To Governor 03/20 Governor signed Session Law Chapter 112 Effective: 07/01/07
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature First Regular Session - 2007IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 100 BY BUSINESS COMMITTEE 1 AN ACT 2 RELATING TO MANUFACTURED HOMES; AMENDING SECTION 44-2101, IDAHO CODE, TO 3 REVISE DESCRIPTIVE LANGUAGE, TO REVISE THE PURPOSE, TO REQUIRE CRIMINAL 4 HISTORY CHECKS AND TO PROVIDE FOR REINSTATEMENT; REPEALING SECTION 5 44-2101A, IDAHO CODE, RELATING TO DEFINITIONS; AMENDING CHAPTER 21, TITLE 6 44, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 44-2101A, IDAHO CODE, TO 7 DEFINE TERMS; AMENDING SECTION 44-2102, IDAHO CODE, TO REVISE PROVISIONS 8 APPLICABLE TO ADMINISTRATION; AMENDING SECTION 44-2103, IDAHO CODE, TO 9 REVISE FEES AND FEE REQUIREMENTS; AMENDING SECTION 44-2104, IDAHO CODE, TO 10 REVISE DESCRIPTIVE LANGUAGE AND TO REVISE PROVISIONS RELATING TO BOARD 11 MEMBERSHIP; AMENDING SECTION 44-2105, IDAHO CODE, TO REVISE DESCRIPTIVE 12 LANGUAGE, TO REVISE PROVISIONS APPLICABLE TO DISCIPLINARY ACTIONS AND TO 13 MAKE A TECHNICAL CORRECTION; AMENDING SECTION 44-2106, IDAHO CODE, TO 14 REVISE VIOLATIONS PROVISIONS; AMENDING SECTION 44-2107, IDAHO CODE, TO 15 REVISE PENALTY PROVISIONS; AND AMENDING CHAPTER 21, TITLE 44, IDAHO CODE, 16 BY THE ADDITION OF A NEW SECTION 44-2108, IDAHO CODE, TO SET FORTH ADDI- 17 TIONAL REQUIREMENTS FOR RETAILERS AND RESALE BROKERS. 18 Be It Enacted by the Legislature of the State of Idaho: 19 SECTION 1. That Section 44-2101, Idaho Code, be, and the same is hereby 20 amended to read as follows: 21 44-2101. PURPOSE -- LICENSE REQUIRED -- REINSTATEMENT. (1) The legisla- 22 ture finds that the regulation and control of those persons engaged in the 23 business of manufacturing, selling, installing or servicing of manufactured 24 and mobile homes is necessary to protect the health and safety of the citizens 25 of Idaho. To that end, it shall be unlawful for any person to engage in busi- 26 ness as a manufacturer,of manufactured homes, a manufactured home dealer,27manufactured homeretailer, resale broker, installer,manufactured homeser- 28 vice company,or a manufactured homesalesman or responsible managing employee 29 without being duly licensed as provided in this chapter. 30 (2) On and after July 1, 2007, all applicants for retailer or resale bro- 31 ker original licensure will be required to submit to a fingerprint-based crim- 32 inal history check of the Idaho central criminal database and the federal 33 bureau of investigation criminal history database. Each applicant for original 34 licensure must submit a full set of the applicant's fingerprints and any rele- 35 vant fees directly to the Idaho state police and the federal bureau of inves- 36 tigation identification division for this purpose. 37 (3) If the licensee fails to submit a completed application for renewal 38 or to pay the renewal fee on or before the expiration date, the administrator 39 may accept a later application for reinstatement subject to such conditions as 40 the board may require by rule including, but not limited to, the assessment of 41 a late fee; provided that between the license expiration date and the date of 42 reinstatement of the license, the rights of the licensee under such license 43 shall be expired, and during such period of expiration it shall be unlawful 2 1 for such licensee to do or attempt to offer to do any of the acts of the kind 2 and nature described in the definitions in section 44-2101A, Idaho Code, in 3 consideration of compensation of any kind or expectation thereof. An expired 4 license that is not reinstated within six (6) months of the expiration date 5 shall be automatically terminated by the administrator and may not be rein- 6 stated. 7 SECTION 2. That Section 44-2101A, Idaho Code, be, and the same is hereby 8 repealed. 9 SECTION 3. That Chapter 21, Title 44, Idaho Code, be, and the same is 10 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 11 ignated as Section 44-2101A, Idaho Code, and to read as follows: 12 44-2101A. DEFINITIONS. As used in this chapter: 13 (1) "Administrator" means the administrator of the division of building 14 safety of the state of Idaho. 15 (2) "Board" means the manufactured housing board established in section 16 44-2104, Idaho Code. 17 (3) "Engaged in the business" means the individual or entity buys, sells, 18 brokers, trades, or offers for resale a manufactured or mobile home. 19 (4) "Installer" means a person who owns a business that installs or ser- 20 vices a manufactured home or mobile home at the site where it is to be used 21 for occupancy. 22 (5) "Manufactured home" or "manufactured house" means a structure as 23 defined in section 39-4105, Idaho Code. 24 (6) "Manufacturer" means any person engaged in the business of manufac- 25 turing manufactured homes that are offered for sale, lease or exchange in the 26 state of Idaho. 27 (7) "Mobile home" means a structure as defined in section 39-4105, Idaho 28 Code. 29 (8) "Person" means a natural person, corporation, partnership, trust, 30 society, club, association or other organization. 31 (9) "Place of business" refers to any physical location at which the 32 business is lawfully conducted. 33 (10) "Resale broker" means any person engaged in the business of selling 34 broker-owned, used, third-party owned, or other resale of manufactured or 35 mobile homes. 36 (11) "Responsible managing employee" or "RME" means the person designated 37 by the retailer or resale broker to supervise other employees, either person- 38 ally or through others. 39 (12) "Retailer" means any person engaged in the business of selling or 40 exchanging new, used, resale or brokered manufactured or mobile homes. 41 (13) "Salesman" means any person employed by a retailer or resale broker 42 for a salary, commission or compensation of any kind to sell, list, purchase 43 or exchange or to negotiate for the sale, listing, purchase or exchange of 44 new, used, brokered or third-party owned units, except as otherwise provided 45 in this chapter. 46 (14) "Service company" means any person other than an installer who pro- 47 vides service, repair or tear down of manufactured or mobile homes. 48 SECTION 4. That Section 44-2102, Idaho Code, be, and the same is hereby 49 amended to read as follows: 50 44-2102. ADMINISTRATION -- POWERS AND DUTIES. The administrator is 3 1 charged with the administration of the provisions of this chapter and shall: 2 (1) In accordance with the provisions of chapter 52, title 67, Idaho 3 Code, promulgate, adopt, amend, and repeal rules for the establishment of a 4 mandatory statewide manufactured home"setup"code. The administrator shall 5 also define and prohibit any practice which is found to be deceptive. 6 (2) Prescribe the form and content of a new manufactured home buyer's 7 information and disclosure form. Unless otherwise provided by the administra- 8 tor, the form shall be presented bymanufactured home dealersthe retailer to 9 each purchaser of a new manufactured home, and shall be executed by thedealer10 retailer and purchaser at the time the initial purchase order is signed for 11 the sale of a new manufactured home. 12 (3) (a) A used unit which has been determined to be or declared by the 13 owner to be real property under the provisions of section 63-304, Idaho 14 Code, may be offered for sale, listed, bought for resale, negotiated for, 15 either directly or indirectly, by a licensed real estate broker or a real 16 estate salesman representing a licensed real estate broker, but not aman-17ufactured home dealerretailer, resale broker ormanufactured homesales- 18 man. 19 (b) A used unit which has been determined to be and is carried on the tax 20 rolls as personal property may be offered for sale, listed, bought for 21 resale, negotiated for, either directly or indirectly, by a licensed real 22 estate broker or a real estate salesman, pursuant to chapter 20, title 54, 23 Idaho Code, or by a licensedmanufactured home dealerretailer, resale 24 broker ormanufactured homesalesman, but with respect to a licensedmanu-25factured home dealerretailer, resale broker or salesman only to the 26 extent such sale does not involve the purchase or sale of an interest in 27 real estate. 28 (c) A licensed real estate broker or real estate salesman representing a 29 licensed real estate broker pursuant to chapter 20, title 54, Idaho Code, 30 may participate in new manufactured home sales that include real estate 31 if the real estate broker or salesman has a valid, written agreement with 32 a licensedmanufactured home dealerretailer to represent the interests of 33 themanufactured home dealerretailer in this type of transaction. 34 (4) Promulgate rules establishing a program for the timely resolution of 35 disputes between manufacturers, retailers, resale brokers and installers of 36 manufactured homes. The rules shall be consistent with the United States 37 department of housing and urban development's procedural and enforcement 38 authority in 42 U.S.C. 5422(c)(12), and shall include identifying the respec- 39 tive responsibilities of manufacturers, retailers, resale brokers and install- 40 ers; providing for the issuance of appropriate orders for the correction or 41 repair of defects in manufactured homes that are reported during the one (1) 42 year period following the date of installation; and may include an appropriate 43 schedule of fees. 44 SECTION 5. That Section 44-2103, Idaho Code, be, and the same is hereby 45 amended to read as follows: 46 44-2103. FEES -- DEPOSIT OF FEES. (1) Fees for licensing ofdealers47 retailers, resale brokers, installers, manufacturers, salesmen,responsible48managing employeesRMEs and service companies shall not exceed: 49 (a)Manufactured home dealer'sRetailer or resale broker license 50 .................................................................. $500.00 51 (b) Manufacturer'slicense ...................................... $500.00 52 (c)Manufactured home sService company/or installer'slicense .. $300.00 53 (d)Manufactured home salesman'sSalesman license ............... $ 50.00 4 1 (e)Responsible managing employees'RME license ................. $ 50.00 2 (2) All license fees collected by the division of building safety under 3 the provisions of this chapter shall be paid into the manufactured housing 4 account, which is hereby created in the dedicated fund. The expenses incurred 5 in administering and enforcing the provisions of this chapter shall be paid 6 from the account. 7 (3) The following performance bonding requirements shall be met before 8 the issuance of these licenses: 9 (a) Manufacturer ........................................... $20,000 bond 10 (b)Manufactured home dealerRetailer...................... $240,000 bond 11 (c) Resale broker........................................... $30,000 bond 12 (d)Manufactured home sService company/or installer ....... $ 5,000 bond 13 (4) The administrator is authorized to provide by rule, in accordance 14 with the provisions of section 44-2102, Idaho Code, for the acceptance of a 15moneydeposit of cash or securities in lieu of a bond in satisfaction of the 16 bonding requirements of this section. 17 (5) Fees and bond requirements of this section shall be the exclusive fee 18 and bond requirements fordealersretailers, resale brokers, installers, manu- 19 facturers, salesmen and service companies governed by the provisions of this 20 chapter, and shall supersede any program of any political subdivision of the 21 state which sets fee or bond requirements for the same services. 22 (6) A retailer or resale broker must obtain a separate service company or 23 installer license, pay the license fee set forth in subsection (1)(c) of this 24 section and meet the bonding requirements of subsection (3)(d) of this section 25 in order to provide the services covered by a service company or installer 26 license. 27 SECTION 6. That Section 44-2104, Idaho Code, be, and the same is hereby 28 amended to read as follows: 29 44-2104. MANUFACTUREDHOME ADVISORYHOUSING BOARD. (1) A manufactured 30home advisoryhousing board is established in the division of building safety 31 to advise the administrator in the administration and enforcement of the pro- 32 visions of this chapter. The board shall consist of five (5) members, 33 appointed by the governor, four (4) of whom shall befromlicensedmanufac-34tured home dealersretailers and one (1) of whom shall be a consumer who lives 35 in a manufactured home.The bBoard members shall servethe following terms36commencing January 1, 1989: two (2) members shall be appointed for a term of37one (1) year, two (2) members shall be appointed for a term of two (2) years,38and one (1) member shall be appointed for a term of three (3) years. The con-39sumer member shall be a member appointed to a term beginning on January 1,401996, or as soon thereafter as there is a vacancy on the board. Thereafter41board members shall be appointedfor a term of three (3) years. Not more than 42 three (3) members shall at any time belong to the same political party. When- 43 ever a vacancy occurs, the governor shall appoint a qualified person to fill 44 the vacancy for the unexpired portion of the term. The members of the board 45 shall be compensated as provided in section 59-509(n), Idaho Code, for each 46 day spent in attendance at meetings of the board. A majority of members shall 47 constitute a quorum, and a quorum at any meeting called by the administrator 48 shall have full and complete power to act upon and resolve in the name of the 49 board any matter, thing or question referred to it by the administrator, or 50 which by reason of any provision of this chapter, it has the power to deter- 51 mine. 52 (2) The board shall, on the first day of each January or as soon thereaf- 53 ter as practicable, elect a chairman, vice chairman and secretary from among 5 1 its members, and these officers shall hold office until their successors are 2 elected. As soon as the board has elected its officers, the secretary shall 3 certify the results of the election to the administrator. The chairman shall 4 preside at all meetings of the board and the secretary shall make a record of 5 the proceedings which shall be preserved in the offices of the division of 6 building safety. If the chairman is absent from any meeting of the board, his 7 duties shall be discharged by the vice chairman. All members of the board 8 present at a meeting shall be entitled to vote on any question, matter, or 9 thing which properly comes before it. 10 (3) The board shall have the authority to promulgate rules in accordance 11 with chapter 52, title 67, Idaho Code, to implement the provisions of this 12 chapter. 13 SECTION 7. That Section 44-2105, Idaho Code, be, and the same is hereby 14 amended to read as follows: 15 44-2105.SUSPENSION OR REVOCATION OF LICENSESDISCIPLINE -- HEARING -- 16 JUDICIAL REVIEW -- REAPPLICATION. (1) The administrator may refuse to issue, 17 renew, or reinstate or may suspend,orrevoke or take other disciplinary 18 action against any license, if the license was obtained through error or 19 fraud, or if the holder thereof is shown to be grossly incompetent, or has 20wilfullywillfully violated any provision of this chapter or the rules adopted 21 thereunder, or has been convicted of conduct constituting a felony or any 22 theft or fraud offense, or has ever had a business license revoked in this or 23 any other state or territory of the United States. 24 (2) The administrator shall have the power to appoint, by an order in 25 writing, any competent person to take testimony ataany disciplinary hearing. 26conducted for the purposes of determining whether a license should be sus-27pended or revoked.The administrator, and any hearing officer appointed by the 28 administrator, shall have the power to administer oaths, issue subpoenas and 29 compel the attendance of witnesses and the production of documents and 30 records. 31 (3) Before any license shall be suspended,orrevoked or otherwise 32 disciplined, the holder thereof shall be served with written notice enumerat- 33 ing the charges against him, and shall be afforded an opportunity for an 34 appropriate contested case in accordance with the provisions of chapter 52, 35 title 67, Idaho Code. The notice shall specify the time and place for hearing, 36 which time shall not be less than five (5) days after the service thereof. 37 (4) Any party aggrieved by an order of the administratorsuspending or38revokingdisciplining a license shall be entitled to judicial review thereof 39 in accordance with the provisions of chapter 52, title 67, Idaho Code. 40 (5) Any person whose license has been revoked may not apply for a new 41 license until the expiration of one (1) year from the date of such revocation. 42 SECTION 8. That Section 44-2106, Idaho Code, be, and the same is hereby 43 amended to read as follows: 44 44-2106. VIOLATIONS. (1) It shall be unlawful to engage in business as a 45 manufacturer,manufactured home dealer, manufactured homeretailer, resale 46 broker, installer,manufactured homesalesman,or manufactured homeservice 47 company or RME without being duly licensed by the division of building safety 48 pursuant to this chapter, except that an individual may buy, sell, broker, 49 trade or offer for resale up to two (2) manufactured or mobile homes, or a 50 combination thereof, in any one (1) calendar year without being licensed under 51 this chapter if all of the units have been properly titled in the name of that 6 1 individual. 2 (2) It shall be unlawful for a manufacturer,manufactured home dealer,3manufactured homeretailer, resale broker, installer,manufactured home4 salesman,or manufactured homeservice company or RME to: 5 (a) Intentionally publish or circulate any advertising which is mislead- 6 ing or inaccurate in any material particular or which misrepresents any of 7 the products or services sold or provided by a manufacturer,manufactured8home dealer, manufactured homeretailer, resale broker, installer, sales- 9 man,orservice company or RME; 10 (b) Violate any of the provisions of this chapter or any rule adopted by 11 the division of building safety pursuant to this chapter; 12 (c) Knowingly purchase, sell or otherwise acquire or dispose of a stolen 13 manufactured or mobile home; 14 (d) With respect only to amanufactured home dealerretailer or resale 15 broker, to engage in the business for which suchdealerretailer or resale 16 broker is licensed without at all times maintaining a principal place of 17 business located within the state. 18 SECTION 9. That Section 44-2107, Idaho Code, be, and the same is hereby 19 amended to read as follows: 20 44-2107. PENALTY PROVISIONS. (1) Whoever shall violate any of the provi- 21 sions of this chapter, or any laws or rules adopted pursuant to this chapter, 22 or who shall refuse to perform any duty lawfully enjoined upon him by the 23 administrator within the prescribed time, or who shall fail, neglect, or 24 refuse to obey any lawful order given or made by the administrator, shall be 25 guilty of a misdemeanor and shall be subject to the civil penalties estab- 26 lished by administrative rule but not to exceed one thousand dollars ($1,000) 27 in accordance with the following: 28 (a) Each day of such violation shall constitute a separate offense. A 29 violation will be considered a second or additional offense only if it 30 occurs within one (1) year from the first violation. 31 (b) The same penalties shall apply, upon conviction, to any member of a 32 copartnership, or to any construction, managing or directing officer of 33 any corporation, limited liability company or limited liability partner- 34 ship or other such organization consenting to, participating in, or aiding 35 or abetting any such violation of this chapter. 36 (2) In addition to any other penalties specified in this section, when- 37 ever any person violates the provisions of this chapter by acting as a 38 retailer, resale broker, installer, service company or RME, without a license, 39 the administrator may maintain an action in the name of the state of Idaho to 40 enjoin the person from any further violations in accordance with the follow- 41 ing: 42 (a) Such action may be brought either in the county in which the acts are 43 claimed to have been or are being committed, in the county where the 44 defendant resides, or in Ada county. 45 (b) Upon the filing of a verified complaint in the district court, the 46 court, if satisfied that the acts complained of have been or probably are 47 being or may be committed, may issue a temporary restraining order and/or 48 preliminary injunction, without bond, enjoining the defendant from the 49 commission of any such act or acts constituting the violation. 50 (c) A copy of the complaint shall be served upon the defendant and the 51 proceedings shall thereafter be conducted as in other similar civil 52 actions. If the commission of the act or acts is established, the court 53 shall enter a decree permanently enjoining the defendant from committing 7 1 such act or acts. If an injunction issued under this section is violated, 2 the court, or the judge thereof at chambers, may summarily try and punish 3 the offender for contempt of court. 4 SECTION 10. That Chapter 21, Title 44, Idaho Code, be, and the same is 5 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 6 ignated as Section 44-2108, Idaho Code, and to read as follows: 7 44-2108. RETAILER AND RESALE BROKER -- ADDITIONAL LICENSURE REQUIREMENTS. 8 (1) Each business office or retail sales location shall be owned or leased by 9 the retailer or resale broker and shall comply with all local building codes, 10 zoning, and other applicable land use regulatory ordinances, and: 11 (a) If the location is on leased property, the retailer or resale broker 12 must provide written confirmation of the term and existence of the lease, 13 signed by the lessor; and 14 (b) An exterior sign that identifies the retailer or resale broker by the 15 name shown on the license must be prominently affixed to the location or 16 the office building and be clearly visible and easily readable from the 17 nearest major avenue of traffic; and 18 (c) The retailer or resale broker must prominently display his license, 19 or a true and correct copy of that license, in each location; and 20 (d) The licensee must post, in a clearly visible and readily accessible 21 location, written information concerning regular hours of business and 22 emergency contact information. 23 (2) Regardless of the number of locations at which a retailer or resale 24 broker engages in business, he must maintain a principal place of business 25 that complies with the requirements set forth in subsection (1)(a) of this 26 section, and at which the records of the business are maintained on a perma- 27 nent basis. 28 (3) The retailer or resale broker must promptly notify the division of 29 building safety, in writing, of any change in ownership, business name, loca- 30 tion of business, mailing address or telephone numbers. 31 (4) For each new product sold, the retailer must provide proof, satisfac- 32 tory to the board, of the retailer's current authority to sell that 33 manufacturer's products. 34 (5) Failure to adhere to the requirements of this section, or any other 35 requirement pertaining to licensure as set forth in law or rule, shall consti- 36 tute grounds for the imposition of discipline up to and including revocation 37 of licensure.
STATEMENT OF PURPOSE RS 16690 This bill updates the licensing requirements for manufactured housing manufacturers, retailers, installers, service companies and salespeople. It adds a requirement for background checks for new licensees, increases bonding requirements and adds enforcement provisions for violation of the licensing requirements. FISCAL NOTE The licensing program is self-funded through license fees. No impact on the general fund. Contact Name: Jack Lyman, Idaho manufactured Housing Association Phone: 342.0031 STATEMENT OF PURPOSE/FISCAL NOTE H 100