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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 - 2007
IN 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,
27 manufactured home retailer, resale broker, installer, manufactured home ser-
28 vice company, or a manufactured home salesman 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 by manufactured home dealers the retailer to
9 each purchaser of a new manufactured home, and shall be executed by the dealer
10 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 a man-
17 ufactured home dealer retailer, resale broker or manufactured home sales-
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 licensed manufactured home dealer retailer, resale
24 broker or manufactured home salesman, but with respect to a licensed manu-
25 factured home dealer retailer, 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 licensed manufactured home dealer retailer to represent the interests of
33 the manufactured home dealer retailer 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 of dealers
47 retailers, resale brokers, installers, manufacturers, salesmen, responsible
48 managing employees RMEs and service companies shall not exceed:
49 (a) Manufactured home dealer's Retailer or resale broker license
50 .................................................................. $500.00
51 (b) Manufacturer's license ...................................... $500.00
52 (c) Manufactured home sService company/ or installer's license .. $300.00
53 (d) Manufactured home salesman's Salesman 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 dealer Retailer...................... $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
15 money deposit 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 for dealers retailers, 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. MANUFACTURED HOME ADVISORY HOUSING BOARD. (1) A manufactured
30 home advisory housing 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 be from licensed manufac-
34 tured home dealers retailers and one (1) of whom shall be a consumer who lives
35 in a manufactured home. The bBoard members shall serve the following terms
36 commencing January 1, 1989: two (2) members shall be appointed for a term of
37 one (1) year, two (2) members shall be appointed for a term of two (2) years,
38 and one (1) member shall be appointed for a term of three (3) years. The con-
39 sumer member shall be a member appointed to a term beginning on January 1,
40 1996, or as soon thereafter as there is a vacancy on the board. Thereafter
41 board members shall be appointed for 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 LICENSES DISCIPLINE -- HEARING --
16 JUDICIAL REVIEW -- REAPPLICATION. (1) The administrator may refuse to issue,
17 renew, or reinstate or may suspend, or revoke 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
20 wilfully willfully 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 at a any disciplinary hearing.
26 conducted for the purposes of determining whether a license should be sus-
27 pended 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, or revoked 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 administrator suspending or
38 revoking disciplining 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 home retailer, resale
46 broker, installer, manufactured home salesman, or manufactured home service
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,
3 manufactured home retailer, resale broker, installer, manufactured home
4 salesman, or manufactured home service 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, manufactured
8 home dealer, manufactured home retailer, resale broker, installer, sales-
9 man, or service 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 a manufactured home dealer retailer or resale
15 broker, to engage in the business for which such dealer retailer 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