2007 Legislation
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HOUSE BILL NO. 100 – Manufactured home, retailer/broker


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Bill Status

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

Bill Text

  ]]]]              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
 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
  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
  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
  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
  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:
 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
  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
  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:
  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 / Fiscal Impact

                       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.

Name: Jack Lyman, Idaho manufactured Housing Association 
Phone: 342.0031

STATEMENT OF PURPOSE/FISCAL NOTE                         H 100