GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1999
SESSION LAW 1999-393
The General Assembly of North Carolina enacts:
Section 1. Article 9A of Chapter 143 of the General Statutes reads as rewritten:
"ARTICLE 9A.
"North Carolina Manufactured Housing Board -
Manufactured Home Warranties.
"§ 143-143.8. Purpose.
The General Assembly finds that mobile manufactured
homes have become a primary housing resource for many of the citizens of
North Carolina. The General Assembly finds further that it is the
responsibility of the mobile manufactured home industry to
provide homes which are of reasonable quality and safety and to offer
warranties to buyers that provide a means of remedying quality and safety
defects in mobile manufactured homes. The General Assembly also
finds that it is in the public interest to provide a means for enforcing such
warranties.
Consistent with these findings and with the legislative
intent to promote the general welfare and safety of mobile manufactured
home residents in North Carolina, the General Assembly finds that the most
efficient and economical way to assure safety, quality and responsibility is to
require the licensing and bonding of all segments of the mobile manufactured
home industry. The General Assembly also finds that it is reasonable and
proper for the mobile manufactured home industry to cooperate
with the Commissioner of Insurance, through the establishment of the North
Carolina Manufactured Housing Board, to provide for a comprehensive framework
for industry regulations.
"§ 143-143.9. Definitions.
The following words, terms and phrases, when used in this
Article, shall have the meanings respectively ascribed to them in this section,
except where the context clearly indicates a different meaning: definitions
apply in this Article:
(1) "Board"
means the Board. - The North Carolina Manufactured Housing Board.
(2) "Buyer"
means a Buyer. - A person who purchases at retail from a dealer or
manufacturer a manufactured home for personal use as a residence or other
related use.
(3) "Code"
means the appropriate Code. - Engineering standards adopted by the
Commissioner.
(4) "Commissioner"
means the Commissioner. - The Commissioner of Insurance of the State
of North Carolina.
(5) "Department"
means the Department. - The Department of Insurance of the State of
North Carolina.
(5a) License. - A license issued under this Article.
(5b) Licensee. - A person who has been issued a license under this Article by the North Carolina Manufactured Housing Board.
(6) "Manufactured
home" or "mobile home" means a Manufactured home. - A structure,
transportable in one or more sections, which, in the travelling mode, is eight
feet or more in width or is 40 feet or more in length, or when erected on site,
is 320 or more square feet, and which is built on a permanent chassis and
designed to be used as a dwelling with or without a permanent foundation when
connected to the required utilities, and includes the plumbing, heating, air
conditioning and electrical systems contained therein.
(7) "Manufactured
home dealer" or "dealer" means any Manufactured home
dealer or dealer. - Any person engaged in the business of buying, buying
or selling or dealing in manufactured homes or offering or
displaying manufactured homes for sale in North Carolina. Any person who buys,
sells or deals in buys or sells three or more manufactured homes in
any 12-month period, or who offers or displays for sale three or more
manufactured homes in any 12-month period shall be presumed to be a
manufactured home dealer. The terms 'selling' and 'sale' include lease-purchase
transactions. The term 'manufactured home dealer' does not include banks and
finance companies that acquire manufactured homes as an incident to their
regular business.
(8) "Manufactured
home manufacturer" or "manufacturer" means any Manufactured
home manufacturer or manufacturer. - Any person, resident or nonresident,
who manufactures or assembles manufactured homes for sale to dealers in
North Carolina.
(9) "Manufactured
home salesman" or "salesman" means any Manufactured home
salesperson or salesperson. - Any person employed as a salesman by a
manufactured home dealer to sell manufactured homes to buyers.
(10) "Person" means any Person.
- Any individual, natural persons, firm, partnership, association,
corporation, legal representative or other recognized legal entity.
(11) "Responsible party"
means a Responsible party. - A manufacturer, dealer, supplier,
or set-up contractor.
(12) "Setup" means the Setup.
- The operations performed at the occupancy site which render a
manufactured home fit for habitation. Such operations include, but are not
limited to, transportation by a bona fide private or exempt carrier operating
under the provisions of the Public Utilities Act, positioning, blocking,
leveling, supporting, tying down, connecting utility systems, making minor
adjustments, or assembling multiple or expandable units. Such operations do not
include lawful transportation services performed by public utilities operating
under certificates or permits issued by the North Carolina Utilities
Commission.
(13) "Set-up contractor"
means a Set-up contractor. - A person who engages in the business of
performing set-up operations setups for compensation in North
Carolina.
(14) "Substantial defect"
means any Substantial defect. - Any substantial deficiency in or
damage to materials or workmanship occurring in a manufactured home which has
been reasonably maintained and cared for in normal use. The term also means any
structural element, utility system or component part of the manufactured home
which fails to comply with the Code.
(15) "Supplier" means the
Supplier. - The original producer of completed components, including
refrigerators, stoves, hot water heaters, dishwashers, cabinets, air
conditioners, heating units, and similar components, and materials such as
floor coverings, panelling, siding, trusses, and similar materials, which are
furnished to a manufacturer or dealer for installation in the manufactured home
prior to sale to a buyer.
"§ 143-143.10. Manufactured Housing Board created; membership; terms; meetings.
(a) There is hereby created
the North Carolina Manufactured Housing Board within the Department of
Insurance. Department. The Board shall be composed of nine members
as follows:
(1) The Commissioner of
Insurance or his designee designee.
(2) A manufactured home manufacturer
manufacturer.
(3) A manufactured home dealer
dealer.
(4) A representative of
the banking and finance business business.
(5) A representative of
the insurance industry industry.
(6) A manufactured home supplier
supplier.
(7) A set-up contractor
contractor.
(8) Two representatives of the general public.
The Commissioner of Insurance or his designee shall serve
as chairman of chair the Board. The Governor shall appoint to the
Board the manufactured home manufacturer and the manufactured home dealer. The
General Assembly upon the recommendation of the Speaker of the House of
Representatives in accordance with G.S. 120-121 shall appoint the
representative of the banking and finance industry and the representative of
the insurance industry. The General Assembly upon the recommendation of the
President Pro Tempore of the Senate in accordance with G.S. 120-121 shall
appoint the manufactured home supplier and set-up contractor. The Commissioner of
Insurance shall appoint two representatives of the general public. Except
for the representatives from the general public and the persons appointed by
the General Assembly, each member of the Board shall be appointed by the appropriate
appointing authority from a list of nominees submitted to the appropriate
appointing authority by the Board of Directors of the North Carolina
Manufactured Housing Institute. At least three nominations shall be submitted
for each position on the Board. The members of the Board shall be residents of
the State.
The members of the Board shall serve for terms of three years
to begin on October 1, 1981, except that the persons appointed by the General
Assembly upon the recommendation of the Speaker shall serve two-year terms to
expire on September 30, 1985, and the persons appointed by the General Assembly
upon the recommendation of the President Pro Tempore of the Senate shall serve
for three-year terms to expire on September 30, 1986. years. In
the event of any vacancy of a position appointed by the Governor or Commissioner
of Insurance, Commissioner, the appropriate appointing authority
shall appoint a replacement in the same manner as provided for the original
appointment to serve the remainder of the unexpired term. Vacancies in
appointments made by the General Assembly shall be filled in accordance with
G.S. 120-122. In the event of any vacancy, the appropriate appointing authority
shall appoint a replacement to serve the remainder of the unexpired term. Such
appointment shall be made in the same manner as provided for the original
appointment. No member of the Board shall serve more than two consecutive,
three-year terms.
The member of the Board representing the general public shall have no financial interest connected with the manufactured housing industry. No member of the Board shall participate in any proceeding before the Board involving that member's own business.
Each member of the Board, except the Commissioner of
Insurance and any other State employee, shall receive per diem and
allowances as provided with respect to occupational licensing boards by G.S.
93B-5. All per diem and travel expenses shall be paid exclusively out of the
fees received by the Board as authorized by this Article. In no case shall any
salary, expense, or other obligation of the Board be charged against the Treasury
General Fund of the State of North Carolina. All moneys and receipts
shall be kept in a special fund by and for the use of the Board for the
exclusive purpose of carrying out the provisions of this Article. At
the end of the fiscal year, the Board shall retain fifteen percent (15%) of the
unexpended funds collected and received during that year. The remaining
eighty-five percent (85%) of these funds shall be credited to the General Fund.
(b) In accordance with
the provisions of this Article, the North Carolina Manufactured Housing Board
shall have the following powers and duties:
(1) To issue licenses to
manufacturers, dealers, salesmen salespersons, and set-up contractors;
contractors.
(2) To require that an
adequate bond or other security be posted by all licensees, except
manufactured housing salesmen; salespersons.
(3) To receive and resolve
complaints from buyers of manufactured homes and from persons in the
manufactured housing industry, in connection with the warranty, warranty
service, licensing requirements or any other provision under this Article;
and Article.
(4) To promulgate adopt
rules in accordance with Chapter 150B of the General Statutes as are
necessary to carry out the provisions of this Article.
(5) To file against the bond posted by a licensee for warranty repairs and service on behalf of a buyer.
"§ 143-143.11. License required; application for license.
(a) It shall be unlawful
for any manufactured home manufacturer, dealer, salesman salesperson,
or set-up contractor to engage in business as such in this State without
first obtaining a license from the Board, as provided in this Article.
The fact that a person is licensed by the Board as a set-up contractor or a
dealer does not preempt any other licensing boards' applicable requirements for
that person.
(b) Application for such
the license shall be made to the Board at such time, in such form,
and contain such information as the Board shall require, requires,
and shall be accompanied by the required fee established by the
Board. Such The fee shall not exceed three hundred dollars
($300.00) for any license.
(c) In such the
application, the Board shall require information relating to the matters
set forth in G.S. 143-143.13 as grounds for refusal of a license, and
information relating to other pertinent matters consistent with safeguarding
the public interest. All such of this information shall be
considered by the Board in determining the fitness of the applicant to
engage in the business for which a license is sought. applicant.
(d) All licenses that
are granted shall expire, unless sooner revoked or suspended, on
June 30 of each year following the date of issue.
(e) Every registrant
under this Chapter licensee shall, on or before the first day of
July of each year, obtain a renewal of a license for the ensuing next
year, by application, accompanied by the required fee; and upon fee.
Upon failure to renew, his a license shall automatically
expire; but such expires. The license may be renewed at any time
within one year upon payment of the prescribed renewal fee and upon evidence
satisfactory to the Board that the applicant has not engaged in business as a
manufactured home manufacturer, dealer, salesman or set-up contractor after
expiration of the license and is otherwise eligible for registration under the
provisions of this Chapter. renewal fee.
(f) Supplemental licenses shall be issued for each place of business, operated or proposed to be operated by the licensee, that is not contiguous to other premises for which a license is issued. The fee for a supplemental license shall be established by the Board and shall not exceed three hundred dollars ($300.00), provided that no supplemental license shall be required for a place of business operated by a licensee that is used exclusively for storage.
(g) Notwithstanding the
provisions of subsection (a), the Board may provide by rule that a manufactured
home salesman salesperson will be allowed to engage in business
during the time period after making application for a license but before such
license is granted.
(h) To obtain As
a prerequisite to obtaining a license under this Article, a person must may
be required to pass an examination prescribed by the Board that is based on
the North Carolina Manufactured/Mobile Home Regulations and Administrative
Procedures required to enforce the Codes. Code, this Article, and any
other subject matter considered relevant by the Board.
"§ 143-143.11A. Notification of change of address; service of notice.
(a) Every applicant for a license shall inform the Board of the applicant's business address. Every licensee shall give written notification to the Board of any change in the licensee's business address, for whatever reason, within 10 business days after the licensee moves to a new address or a change in the address takes place. A violation of this subsection shall not constitute grounds for revocation, suspension, or non-renewal of a license or for the imposition of any other penalty by the Board.
(b) Notwithstanding any other provision of law, whenever the Board is authorized or required to give notice to a licensee under this Article, the notice may be delivered personally to the licensee or sent by first-class mail to the licensee at the address provided to the Board under subsection (a) of this section. Notice shall be deemed given four days after mailing, and any Department employee may certify that notice has been given.
"§ 143-143.11B. Continuing education.
(a) The Board may establish programs and requirements of continuing education for licensees, but shall not require licensees to complete more than eight credit hours of continuing education. Prior to the renewal of a license, a licensee shall present evidence to the Board that he or she has completed the required number of continuing education hours in courses approved by the Board during the two months immediately preceding the expiration of his or her license.
(b) The Board may establish nonrefundable fees for the purpose of providing staff and resources to administer continuing education programs, and may establish nonrefundable course application fees, not to exceed one hundred fifty dollars ($150.00), for the Board's review and approval of proposed continuing education courses. The Board may charge the sponsor of an approved course a nonrefundable fee not to exceed seventy-five dollars ($75.00) for the annual renewal of course approval. The Board may also require a course sponsor to pay a fee, not to exceed five dollars ($5.00) per credit hour per licensee, for each licensee completing an approved continuing education course conducted by the sponsor. The Board may award continuing education credit for a course that has not been approved by the Board or for related educational activity and may prescribe the procedures for a licensee to submit information on the course or related educational activity for continuing education credit. The Board may charge the licensee a fee not to exceed fifty dollars ($50.00) for each course or activity submitted.
(c) The Board may adopt any reasonable rules not inconsistent with this Article to give purpose and effect to the continuing education requirement, including rules that govern:
(1) The content and subject matter of continuing education courses.
(2) The criteria, standards, and procedures for the approval of courses, course sponsors, and course instructors.
(3) The methods of instruction.
(4) The computation of course credit.
(5) The ability to carry forward course credit from one year to another.
(6) The waiver of or variance from the continuing education requirement for hardship or other reasons.
(7) The procedures for compliance and sanctions for noncompliance.
(d) The license of any person who fails to comply with the continuing education requirements under this section shall lapse. The Board may, for good cause shown, grant extensions of time to licensees to comply with these requirements. Any licensee who, after obtaining an extension, offers evidence satisfactory to the Board that he or she has satisfactorily completed the required continuing education courses shall be deemed in compliance with this section.
(e) A manufactured home manufacturer or manufacturer is exempt from the requirements of this section.
"§ 143-143.12. Bond required.
(a) A person licensed as
a manufactured home salesman salesperson shall not be required to
furnish a bond, but each applicant approved by the Board for license as a
manufacturer, dealer, or set-up contractor shall furnish a corporate surety
bond, cash bond or fixed value equivalent thereof in the following
amounts:
(1) For a manufactured,
manufacturer, two thousand dollars ($2,000) per manufactured home
manufactured in the prior license year, up to a maximum of one hundred thousand
dollars ($100,000). When no manufactured homes were produced in the prior year,
the amount required shall be based on the estimated number of manufactured
homes to be produced during the current year; year.
(2) For a dealer who
buys, sells, or deals in manufactured homes and who has four or less places
of business, the amount shall be twenty-five thousand dollars ($25,000); ($25,000).
(3) For a dealer who
buys, sells, or deals in manufactured homes and who has more than four
places of business, the amount shall be fifty thousand dollars ($50,000); ($50,000).
(4) For a set-up contractor, the amount shall be five thousand dollars ($5,000).
(b) A corporate surety
bond shall be approved by the Board as to form and shall be conditioned upon
the obligor faithfully conforming to and abiding by the provisions of this
Article. A cash bond or fixed value equivalent thereof shall be approved
by the Board as to form and terms of deposits in order to secure the ultimate
beneficiaries of the bond. A corporate surety bond shall be for a one-year
period, and a new bond or a proper continuation certificate shall be delivered
to the Board at the beginning of each subsequent one-year period.
(c) Any buyer of a
manufactured home who suffers any loss or damage by any act of a licensee that
constitutes a violation of this Article shall have the right to may institute
an action to recover against such the licensee and the surety.
(d) The Board may adopt rules to assure satisfaction of claims.
"§
143-143.13. Grounds for denying, suspending suspending, or
revoking license. licenses; civil penalties.
(a) A license may be denied, suspended or revoked by the Board on any one or more of the following grounds:
(1) Material Making
a material misstatement in application for license; license.
(2) Failure Failing
to post an adequate corporate surety bond, cash bond or fixed value equivalent
thereof; equivalent.
(3) Engaging in the
business of manufactured home manufacturer, dealer, salesman salesperson,
or set-up contractor without first obtaining a license from the Board; Board.
(4) Failure Failing
to comply with the warranty service obligations and claims procedure
established by this Article; Article.
(5) Failure Failing
to comply with the set-up and tie-down set-up requirements
established by this Article; Article.
(6) Having knowingly
failed or refused Failing or refusing to account for or to pay over
moneys or other valuables belonging to others which that have
come into licensee's possession arising out of the sale of manufactured homes;
homes.
(7) Use of Using
unfair methods of competition or committing unfair or deceptive commercial
acts or practices; practices.
(8) Failure Failing
to comply with any provision of this Article; Article.
(9) Failure Failing
to appear for a hearing before the Board or for a prehearing
conference with a person or persons designated by the Board upon due after
proper notice or failing to follow directives comply with
orders of the Board issued pursuant to this Article; Article.
(10) Employing unlicensed retail
salesmen; salespersons.
(11) Knowingly offering for sale
the products of manufacturers who are not licensed pursuant to this Article or
selling, to dealers not licensed pursuant to this Article, manufactured homes
which are to be sold in this State to buyers as defined in this Article; Offering
for sale manufactured homes manufactured or assembled by unlicensed
manufacturers or selling manufactured homes to unlicensed dealers for sale to
buyers in this State.
(12) Conviction of a felony or any
crime involving moral turpitude; turpitude.
(13) Having had a license revoked,
suspended or denied by the Board under this Article; Board; or
having had a license revoked, suspended or denied by a similar entity in
another state; or engaging in conduct in another state which conduct, if
committed in this State, would have been a violation under this Article; Article.
(14) Knowingly engaging Employing
or contracting with any person to perform set-up operations setups
who is not licensed by the Board as a set-up contractor.
(b) Repealed by Session Laws 1985, c. 666, s. 38.
(c) In addition to the
authority to deny, suspend, or revoke a license under this Article, the Board also
has the authority to may impose a civil penalty upon any person
violating the provisions of this Article. Upon a finding by the Board of a
violation of this Article, the Board shall direct order the
payment of a penalty of not less than one hundred dollars ($100.00) nor more
than five hundred dollars ($500.00). In determining the amount of the
penalty, the Board shall consider the degree and extent of harm caused by the
violation, the amount of money that inured to the benefit of the violator as a
result of the violation, whether the violation was committed willfully, and the
prior record of the violator in complying or failing to comply with laws,
rules, or orders applicable to the violator. Each day during which a
violation occurs shall constitute a separate offense. The penalty shall
be payable to the Board. The Board shall remit the clear proceeds of penalties
provided for in this subsection to the Civil Penalty and Forfeiture Fund in
accordance with G.S. 115C-457.2.
Payment of the civil penalty under this section shall be in addition to payment of any other penalty for a violation of the criminal laws of this State. Nothing in this subsection shall prevent the Board from negotiating a mutually acceptable agreement with any person as to the status of the person's license or certificate or as to any civil penalty.
"§
143-143.14. Notice and hearing. Hearings; rules.
(a) License suspensions, revocations, and renewal refusals are subject to the provisions of Chapter 150B of the General Statutes.
(b) If the Board finds
that an applicant has not met the requirements for licensure, the Board shall
refuse to issue the applicant a license and shall notify the applicant in
writing of the denial and the grounds for the denial. The application may
also be denied for any reason for which a license may be suspended or revoked
or not renewed under G.S. 143-143.13. Within 30 days after receipt of
a notification that an application for a license has been denied, the applicant
may make a written request for a review by a member of the Department staff
designated by the chairman chair of the Board to determine the
reasonableness of the Board's action. The review shall be completed without
undue delay, and the applicant shall be notified promptly in writing as to the
outcome of the review. Within 30 days after service of the notification as to
the outcome, the applicant may make a written request for a hearing under
Article 3A of Chapter 150B of the General Statutes if the applicant disagrees with
the outcome.
(c) The Board may adopt rules for hearings and prehearing conferences under this Article, and the rules may include provisions for prefiled evidence, the use of evidence, testimony of parties, prehearing statements, prehearing conference procedures, settlement conference procedures, discovery, subpoenas, sanctions, motions, intervention, consolidation of cases, continuances, and the rights and responsibilities of parties and witnesses.
"§
143-143.15. Set-up and tie-down Set-up requirements.
(a) Manufactured homes
shall be set up and anchored in accordance with the standards adopted by
the Commissioner.
(b) In the event that If
a manufactured home is insured against damage caused by windstorm and
subsequently sustains windstorm damage of a nature that indicates the
manufactured home was not anchored or tied down set up in the
manner required by this section, the insurer issuing the homeowner's insurance
policy on the manufactured home shall not be relieved from meeting the
obligations specified in the insurance policy with respect to such damage on
the basis that the mobile manufactured home was not properly anchored
or tied down. set up.
"§ 143-143.16. Warranties.
Each manufacturer, dealer and supplier of manufactured homes
shall warrant each new manufactured home sold in this State and the setup of
each such manufactured home in accordance with the warranty requirements
prescribed by this section for a period of at least 12 months, measured from
the date of delivery of the manufactured home to the buyer. The warranty
requirements for each manufacturer, dealer, supplier and set-up contractor of
manufactured homes are as follows:
(1) The manufacturer
warrants that all structural elements, plumbing systems, heating, cooling and
fuel burning systems, electrical systems, and any other components included by
the manufacturer are manufactured and installed free from substantial defect.
defects.
(2) The dealer warrants:
a. That any
modifications or alterations made to the manufactured home by the dealer or
authorized by the dealer are free from substantial defects. Alterations or
modifications made by a dealer shall relieve the manufacturer of warranty
responsibility as to the item altered or modified and any damage resulting
therefrom. resulting damage.
b. That set-up
operations a setup performed by the dealer on the manufactured home are
is performed in compliance with applicable standards adopted by
the Commissioner for the installation of manufactured homes. the Code.
c. That,
during the course of setup That the setup and transportation of the
manufactured home performed by the dealer, substantial defects do not
occur to the manufactured home. dealer did not result in substantial
defects.
(3) The supplier warrants that any warranties generally offered in the ordinary sale of his product to consumers shall be extended to buyers of manufactured homes. The manufacturer's warranty shall remain in effect notwithstanding the existence of a supplier's warranty.
(4) The set-up contractor
warrants that set-up operations are performed the manufactured home
is set up in compliance with applicable standards adopted by the
Commissioner for the installation of manufactured homes, the Code and
that during the course of set-up operations performed on the manufactured
home, substantial defects do not occur to the manufactured home. the
setup did not result in any substantial defects.
"§ 143-143.17. Presenting claims for warranties and substantial defects.
(a) Whenever a claim for
warranty service or about a substantial defect is made to a licensee, it shall
be handled as provided by in this Article. A The
licensee shall make a record shall be made of the name and address
of each claimant and the date, substance, and disposition of each claim about a
substantial defect. The licensee may request that a claim be in writing, but
must nevertheless record it as provided above, and may not delay service
pending receipt of the written claim.
(b) When the licensee
notified is not the responsible party, he shall in writing immediately notify
the claimant of that fact, and shall also in writing immediately notify and
the responsible party of the claim. When a responsible party is asked to
remedy defects, it may not fail to remedy those defects because another party
may also be responsible. Nothing herein shall prevent such in this
section prevents a party from obtaining compensation by way of contribution
or subrogation from another responsible party in accordance with any other
provision of law or contract.
(c) Within the time
limits provided in this Article, the licensee shall either resolve the claim or
determine that it is not justified. At any time a licensee determines that a
claim for warranty service is not justified in whole or in part he shall
immediately notify the claimant in writing that the claim or part of the claim
is rejected and why, and shall inform the claimant that he is entitled to
complain to the Board, for which a complete mailing address shall be provided. Within
five working days of its receipt of a complaint, the Board shall send a
complete copy thereof to the Attorney General and to the Commissioner of
Insurance.
"§ 143-143.18. Warranty service.
(a) When a service
agreement exists between or among a manufacturer, dealer and supplier to
provide warranty service, the agreement shall specify which party is to remedy
warranty defects. Every such service agreement shall be in writing.
Nothing contained in such an agreement shall relieve the responsible party, as
provided by this Article, of responsibility to perform warranty service.
However, any licensee undertaking by such agreement to perform the warranty
service obligations of another shall thereby himself become responsible both to
that other licensee and to the buyer for his failure adequately to
perform as agreed.
(b) When no service
agreement exists for warranty service, the responsible party as designated by the
provisions of this Article is responsible for remedying the warranty
defect.
(c) A substantial defect
shall be remedied within 45 days of after the receipt of written
notification from the claimant. If no written notification is given, the
defect shall be remedied within 45 days of after the mailing of
notification by the Board, unless the claim is unreasonable or bona fide
reasons exist for not remedying the defect within the 45-day period. The
responsible party shall respond to the claimant in writing with a copy to the
Board stating its reasons for not promptly remedying the defect and stating
what further action is contemplated by the responsible party. Notwithstanding
the foregoing provisions of this subsection, defects, which constitute an
imminent safety hazard to life and health shall be remedied within five working
days of receipt of the written notification of the warranty claim. An imminent
safety hazard to life and health shall include but not be limited to (i)
inadequate heating in freezing weather; (ii) failure of sanitary facilities;
(iii) electrical shock, leaking gas; or (iv) major structural failure. The
Board may suspend this five-day time period in the event of widespread defects
or damage resulting from adverse weather conditions or other natural
catastrophes.
(d) When the person
remedying the defect is not the responsible party as designated by the
provisions of this Article, he shall be entitled to reasonable compensation
paid to him by the responsible party. Conduct which that coerces
or requires a nonresponsible party to perform warranty service is a violation
of this Article.
(e) Warranty service
shall be performed at the site at which the mobile manufactured home
is initially delivered to the buyer, except for components which can be removed
for service without substantial expense or inconvenience to the buyer.
(f) Any dealer,
manufacturer or supplier shall have the right to may complain to
the Board when warranty service obligations under this Article are not being
enforced.
"§ 143-143.19. Dealer alterations.
(a) No alteration or
modification shall be made to a manufactured home by a dealer after shipment
from the manufacturer's plant, unless such alteration or modification is
authorized by this Article or the manufacturer. The dealer shall ensure that
all authorized alterations and modifications are performed, if so required, by
qualified persons as defined in subsection (d). An unauthorized alteration or
modification performed by a manufactured home dealer or his agent or
employee shall place primary warranty responsibility for the altered or
modified item upon the dealer. If the manufacturer fulfills or is required to
fulfill the warranty on the altered or modified item, he shall be entitled to
recover damages in the amount of his cost and attorney's fee from the dealer.
(b) An unauthorized alteration or modification of a manufactured home by the owner or his agent shall relieve the manufacturer of responsibility to remedy defects caused by such alteration or modification. A statement to this effect, together with a warning specifying those alterations or modifications which should be performed only by qualified personnel in order to preserve warranty protection, shall be displayed clearly and conspicuously on the face of the warranty. Failure to display such statement shall result in warranty responsibility on the manufacturer.
(c) The Board is
authorized to promulgate adopt rules in accordance with Chapter
150B of the General Statutes which that define the alterations or
modifications which must be made by qualified personnel. The Board may require
qualified personnel only for those alterations and modifications which could
substantially impair the structural integrity or safety of the manufactured
home.
(d) In order to be designated as a person qualified to alter or modify a manufactured home, a person must comply with State licensing or competency requirements in skills relevant to performing alterations or modifications on manufactured homes.
"§ 143-143.20. Disclosure of manner used in determining length of manufactured homes.
In any advertisement or other communication regarding the length of a manufactured home, a manufacturer or dealer shall not include the coupling mechanism in describing the length of the home.
"§ 143-143.21: Repealed by Session Laws 1993, c. 409, s. 6, and applicable to purchase agreements executed on or after that date.
"§
143-143.21A. Refund of buyer deposit. Purchase agreements;
buyer cancellations.
(a) A dealer shall
record the following information in a retail A purchase agreement
for a manufactured home: home shall include all of the following:
(1) A description of the
manufactured home and all accessories included in the purchase; purchase.
(2) The purchase price for
the home and all accessories; accessories.
(3) The amount of deposit;
deposit or other payment toward or payment of the purchase price of the
manufactured home and accessories that is made by the buyer.
(4) The date the retail
purchase agreement is signed; and signed.
(5) The estimated terms of financing the purchase, if any, including the estimated interest rate, number of years financed, and monthly payment.
(6) The buyer's signature.
(7) The dealer's signature.
(b) A dealer must
present to the buyer and obtain his signature to a retail purchase agreement at
the time the deposit is received. The purchase agreement shall
contain, in immediate proximity to the space reserved for the signature of the
buyer and in at least ten point, all upper-case Gothic type, a statement in
substantially the following form: statement:
'I UNDERSTAND THAT
I HAVE THE RIGHT TO CANCEL THIS PURCHASE PRIOR TO BEFORE MIDNIGHT
OF THE THIRD BUSINESS DAY AFTER THE DATE THAT I HAVE SIGNED THIS
AGREEMENT. I UNDERSTAND THAT THIS CANCELLATION MUST BE IN WRITING.
IF I ATTEMPT TO CANCEL THE PURCHASE AFTER THE THREE-DAY PERIOD, I
UNDERSTAND THAT THE DEALER HAS NO MAY NOT HAVE ANY OBLIGATION TO REFUND
THE ENTIRE AMOUNT OF MY DEPOSIT.' 'GIVE ME BACK ALL OF THE MONEY THAT I
PAID THE DEALER.'
(c) The At the
time the deposit or other payment toward or payment for the purchase price is
received by the dealer, the dealer must shall give to the
buyer a copy of the purchase agreement along with and a completed
form in duplicate, captioned 'Notice of Cancellation", Cancellation,'
which shall be attached to the purchase agreement, be easily detachable,
and shall explain in plain English the buyer's right to cancel
the agreement purchase and how that right can be exercised.
(d) A dealer The
dealer shall refund to a buyer the full amount of a deposit on the
purchase of a manufactured home return the deposit or other payment
toward or payment for the purchase price to the buyer if the buyer cancels
the purchase before midnight of the third business day after the date the buyer
signed the purchase agreement. In order to make an effective
cancellation, the buyer must notify the dealer, in writing, of the buyer's
intent to cancel the purchase agreement. To make the cancellation
effective, the buyer shall give the dealer written notice of the buyer's
cancellation of the purchase. The dealer shall make the refund
promptly and, in any event, return the deposit or other payment toward
or payment for the purchase price to the buyer within 15 business days from
after receipt of the notice of cancellation. For purposes of
this section, 'business day' shall mean Monday through Saturday, excluding means
any day except Sunday and legal holidays.
(e) If the buyer cancels
the purchase agreement after the three-day cancellation period, but
before the home is delivered to the buyer, then, sale is completed,
and if:
(1) If the The manufactured
home is in the dealer's inventory, the dealer may retain from the deposit or
other payment received from the buyer actual damages up to a maximum of ten
percent (10%) of the purchase price; or
(2) If the The manufactured
home is specially ordered from the manufacturer for the buyer, the dealer may
retain actual damages up to the full amount of the buyer's deposit. deposit
or other payment received from the buyer.
"§ 143-143.22. Inspection of service records.
The Board is authorized to may inspect the pertinent
service records of a manufacturer, dealer, supplier or set-up contractor
relating to a written warranty claim or complaint made to the Board against such
the manufacturer, dealer, supplier, or set-up contractor. Every
licensee shall send to the Board upon request within 10 days a true copy
of every document or record pertinent to any complaint or claim for service.
"§ 143-143.23. Other remedies not excluded.
Nothing in this Article nor Article, rules adopted
by the Board, or any decision by action of the Board shall
limit any right or remedy available to the buyer at common law or under any
other statute, nor limit or any power or duty of the Attorney
General.
"§ 143-143.24. Engaging in business without license a Class 1 misdemeanor.
If any person shall unlawfully act as a manufactured home manufacturer,
dealer, salesman, salesperson, or set-up contractor without first
obtaining a license from the North Carolina Manufactured Housing Board,
as provided in this Article, he shall be guilty of a Class 1 misdemeanor.
"§ 143-143.25. Staff support for Board.
The Manufactured Housing Building Division of
the Department shall provide clerical and other staff services required by the
Board; and shall administer and enforce all provisions of this Article and all
rules adopted under this Article, subject to the direction of the Board; except
for powers and duties delegated by this Article to local units of government,
other State agencies, or to any persons."
Section 2. Article 9B of Chapter 143 of the General Statutes reads as rewritten:
"ARTICLE 9B.
"Uniform Standards Code for Manufactured Homes.
"§ 143-144. Short title.
This Article shall be known and may be cited as 'The Uniform
Standards Code for Manufactured Homes Act.'
"§ 143-145. Definitions.
The following definitions apply in this Article:
Unless clearly indicated otherwise by context, the
following words when used in this Article, for the purpose of this Article,
shall have the meanings respectively ascribed to them in this section:
…
(1) "Certificate
of compliance" means a certificate issued by an inspection department
approved and licensed by the Council as being competent which certificate shall
be valid only within the jurisdiction of the inspection department and on which
certificate shall be recorded:
a. The
inspection department issuing such certificate;
b. The
date of issue;
c. The
serial or other identification number of such manufactured home and the name of
the manufacturer;
d. A
certification that such manufactured home was on the day of inspection so
opened that its entire structural, electrical, heating, plumbing and
air-conditioning systems could be closely observed and inspected;
e. A
certification that said manufactured home complies in full with the standards
and rules and regulations prescribed in this Article.
Act. - The National Manufactured Housing Construction and Safety Standards Act of 1974, 42 U.S.C. § 5401, et seq., federal regulations adopted under the Act, and any laws enacted by the United States Congress that supersede or supplement the Act.
(2) "Commissioner"
means the Commissioner. - The Commissioner of Insurance of the State
of North Carolina. Carolina or an authorized designee of the
Commissioner.
(3) "Competent"
shall mean competent to technically evaluate, test, and inspect in accordance
with the standards, rules and regulations prescribed in this Article: the
structural features, the plumbing, heating, electrical and air-conditioning
systems and the materials used in the construction of a manufactured home.
(4) "Council"
means the North Carolina State Building Code Council. HUD. - The United
States Department of Housing and Urban Development or any successor agency.
(5) "Inspection
department" means a Inspection department. - A North Carolina city
or county building inspection department authorized by Chapter 160 160A
or Chapter 153 153A of the General Statutes.
(6) "Label of
compliance" shall mean a permanent label or seal permanently attached to a
manufactured home at completion of construction thereof which is issued by any
independent, solvent, and trustworthy person approved and licensed by the
Council as being competent and as having and utilizing initial and follow-up
manufacturing inspection services which provide the highest degree of quality
control, and on which seal or label shall be recorded:
a. The
person issuing such label or seal and the serial number of the label or seal;
b. The
serial or other identification number of said manufactured home;
c. A
certification that said manufactured home was evaluated, tested, and inspected
in accordance with the standards and rules and regulations prescribed in this
Article.
Label. - The form of certification required by HUD to be permanently affixed to each transportable section of each manufactured home manufactured for sale to a purchaser in the United States to indicate that the manufactured home conforms to all applicable federal construction and safety standards.
(7) "Manufactured
home" means a Manufactured home. - A structure, transportable
in one or more sections, which in the traveling mode is eight body feet or more
in width, or 40 body feet or more in length, or, when erected on site, is 320
or more square feet; and which is built on a permanent chassis and designed to
be used as a dwelling, with or without permanent foundation when connected to
the required utilities, including the plumbing, heating, air conditioning and
electrical systems contained therein. 'Manufactured home' includes any structure
that meets all of the requirements of this subsection except the size
requirements and with respect to which the manufacturer voluntarily files a
certification required by the Secretary of the United States Department of
Housing and Urban Development HUD and complies with the standards
established under the National Manufactured Housing Construction and Safety
Standards Act of 1974, 42 U.S.C. §5401, et seq. Act.
For manufactured homes built prior
to before June 15, 1976, 'manufactured home' means a portable
manufactured housing unit designed for transportation on its own chassis and
placement on a temporary or semipermanent foundation having a measurement
of over 32 feet in length and over eight feet in width. 'Manufactured
home' also means a double-wide manufactured home, which is two or more portable
manufactured housing units designed for transportation on their own chassis
that connect on site for placement on a temporary or semipermanent foundation
having a measurement of over 32 feet in length and over eight feet in width.
(8) "Person"
means any corporation, partnership, association, voluntary organization or
governmental agency of the United States or any state therein and does not mean
an individual natural person.
"§ 143-146. Statement of policy; rule-making power.
(a) Manufactured homes,
because of the manner of their construction, assembly and use and that of their
systems, components and appliances (including heating, plumbing and electrical
systems) like other finished products having concealed vital parts may present
hazards to the health, life and safety of persons and to the safety of property
unless properly manufactured. In the sale of manufactured homes, there is also
the possibility of defects not readily ascertainable when inspected by
purchasers. It is the policy and purpose of this State to provide protection to
the public against those possible hazards, and for that purpose to forbid the
manufacture and sale of new manufactured homes, which are not so constructed as
to provide reasonable safety and protection to their owners and users.
This Article is intended to provide provides to the Commissioner
all necessary authority to enable the State to obtain approval as a State
Administrative Agency under the provisions of the National Manufactured
Housing Construction and Safety Standards Act of 1974. Act.
(b) The
Commissioner shall make and promulgate rules embodying the standards for
construction or manufacture of manufactured homes set by the Department of
Housing and Urban Development under the provisions of the National Manufactured
Housing Construction and Safety Standards Act of 1974, as these standards may
be amended.
(c) The Council
is authorized to make and promulgate reasonable rules and regulations governing
the procedure to be followed by a person or inspection department seeking to
obtain a license pursuant to the provisions of this Article which shall provide
opportunity for hearing before the Council on such application.
(d) In order to
insure the highest degree of quality control in the manufacture of manufactured
homes, the Council is further authorized and empowered to make and promulgate
reasonable rules and regulations governing the initial and follow-up
manufacturing inspection practices and procedures to be performed by any person
granted a license to issue a label of compliance pursuant to this Article. In
order to assure uniformity in standards and enforcement, such rules and
regulations may also provide that any such licensee and its operations may be
inspected from time to time by any other person or licensee designated by the
Council who shall report the results of such examination to the Council. In
such case the reasonable expense incurred by the examiner in making such inspection
shall be borne by the licensee whose operations were examined.
(e) The Commissioner is
authorized to promulgate such may adopt rules as are necessary to
carry out the provisions of the Act and this Article, including rules regarding
for consumer complaint procedures, and such other procedures
and rules as are necessary to enable the State to assume responsibility for
the enforcement of the National Manufactured Housing Construction and Safety
Standards Act of 1974. standards and regulations established and adopted
by HUD under the Act.
"§
143-147. Approval and licensing of persons and inspection departments.
Structures built under previous standards.
(a) Any
qualified person may make application to the Council for approval for license to
issue labels of compliance. Any inspection department may make application to
the Council for approval for issuing certificates of compliance. The Council
after notice and hearing, if satisfied that such person or inspection
department meets the qualifications prescribed in this Article, shall cause a
license to be issued which license shall be valid for a consecutive period of
12 months and may be renewed for like consecutive periods on
application to and approval by the Council;
(b) Any such license
issued to a person other than an inspection department may be suspended or
revoked after notice and hearing if such person:
(1) Is either
insolvent, not competent, not independent, or untrustworthy;
(2) Has made
false statements in his application to the Council for license;
(3) Fails or
neglects to perform evaluations, testing, or manufacturing inspections in
accordance with its proposed plans and procedures submitted to the Council or
fails to comply with any applicable rules and regulations promulgated by the
Council pursuant to G.S. 143-146(d);
(4) Has
repeatedly, specifically or by implication authorized the attachment of its
label of compliance to manufactured homes and such manufactured homes did not
meet the standards and rules and regulations provided by this Article at the
time said labels were attached.
(c) Any such
license issued to an inspection department may be suspended or revoked after
notice and hearing if such department:
(1) Is not
competent;
(2) Has issued a
certificate of compliance on a manufactured home when such manufactured home
was not opened for inspection so that the entire structural, electrical,
heating, plumbing and air-conditioning systems could be closely observed and
inspected;
(3) Has issued a
certificate of compliance on a manufactured home and such manufactured home did
not at the time of inspection meet the standards and rules and regulations
provided by this Article.
The legal status of any structure built before the effective date of the Act shall not be affected by any changes made in this Article by the General Assembly.
"§ 143-148. Certain structures excluded from coverage.
The Commissioner may by rule provide for the exclusion of
certain structures by certification in accordance with the National
Manufactured Housing Construction and Safety Standards Act of 1974. Act.
"§
143-149. Necessity for obtaining label or certificate for purposes
of sale.
No individual natural person, firm, partnership,
association or corporation person shall after September 1, 1971, sell
or offer for sale any manufactured home in this State, which manufactured
home State that does not bear permanently attached thereto a label
of compliance or for which manufactured home the individual natural person,
firm, partnership, association, or corporation selling or offering to sell such
manufactured home does not have a certificate of compliance; provided it shall
be have a label. It is a defense to any prosecution for a violation
of the provisions of this section if such individual natural person,
firm, partnership, association or corporation shall show a person shows that
a certificate of title for such the manufactured home as required
by G.S. 20-52 was obtained prior to September 1, 1971, before June
15, 1976, or produces other satisfactory evidence on file with the North
Carolina Department Division of Motor Vehicles that such the
manufactured home was manufactured prior to September 1, 1971. before
June 15, 1976.
"§ 143-150. No electricity to be furnished units not in compliance.
It is unlawful for any person to initially furnish
electricity for use in any manufactured home without first ascertaining that
the manufactured home and its electrical supply has been inspected pursuant to
G.S. 143-139 by the inspection authority having jurisdiction and found to
comply with the requirements of the State Electrical Code. The
certificate of compliance issued by the inspection jurisdiction shall be
accepted as evidence of compliance.
"§ 143-151. Penalties.
(a) Whoever violates
(i) the provisions of this Article; or (ii) Any person who is found by
the Commissioner to have violated the provisions of the Act, this Article, or any
rules promulgated adopted under this Article, shall be liable for
a civil penalty not to exceed one thousand dollars ($1,000) for each
violation. Each such violation shall constitute a separate
violation with respect to for each manufactured home or with respect
to for each failure or refusal to allow or perform an act required thereby,
except that the by the Act, this Article, or any rules adopted under
this Article. The maximum civil penalty may not exceed one million
dollars ($1,000,000) for any related series of violations occurring within one
year from after the date of the first violation. In
determining the amount of the penalty, the Commissioner shall consider the
degree and extent of harm caused by the violation, the amount of money that
inured to the benefit of the violator as a result of the violation, whether the
violation was willful, and the prior record of the violator in complying or
failing to comply with laws, rules, or orders applicable to the violator.
The clear proceeds of civil penalties provided for in this section shall be
remitted to the Civil Penalty and Forfeiture Fund in accordance with G.S.
115C-457.2.
(b) Any individual, corporation,
or a director, officer or agent of a corporation who knowingly and
willfully violates the Act, this Article Article, or any
rules promulgated adopted under this Article in a manner which
that threatens the health or safety of any purchaser is guilty of a
Class 1 misdemeanor. I felony.
"§ 143-151.1. Enforcement.
The Commissioner of Insurance or any inspection department
may initiate any appropriate action or proceeding to prevent, restrain, or
correct any violation of the Act, this Article, or any rules adopted under this
Article. The Commissioner, or any of his deputies or employees, upon showing
proper credentials and in the discharge of their duties pursuant to under
this Article, or the National Manufactured Housing Construction and
Safety Standards Act of 1974, Act, is authorized at reasonable hours
and without advance notice to enter and inspect all factories, warehouses, or
establishments in the State of North Carolina this State in which
manufactured homes are manufactured, stored or held for sale.
"§ 143-151.2. Fees.
(a) The Commissioner may
shall establish a monitoring inspection fee in an amount established
required by the Secretary of Housing and Urban Development. HUD.
This monitoring inspection fee shall be an amount paid by each manufactured
home manufacturer in the this State for each manufactured home produced
by the manufacturer in that state. this State.
(b) The monitoring
inspection fee shall be paid by the manufacturer to the Secretary of Housing
and Urban Development HUD or such the Secretary's agent,
who shall distribute the fees collected from all manufactured home
manufacturers among the approved and conditionally-approved states based on the
number of manufactured homes whose first location after leaving the
manufacturing plant is on the premises of a distributor, dealer, or purchaser
in that state, and the extent of participation of the State in the joint
monitoring team program established under the National Manufactured Housing
Construction and Safety Standards Act of 1974. agent.
"§ 143-151.3. Reports.
Each manufacturer, distributor, and dealer of manufactured
homes shall establish and maintain such records, make such reports, and provide
such information as the Commissioner or the Secretary of Housing and Urban
Development HUD may reasonably require to be able to determine
whether such the manufacturer, distributor, or dealer has acted
or is acting in compliance with this Article, or the National Manufactured
Housing Construction and Safety Standards Act of 1974 Act and shall,
upon request of a person duly designated by the Commissioner or the
Secretary of Housing and Urban Development, HUD, permit such the
person to inspect appropriate books, papers, records and documents relevant
to determining whether such the manufacturer, distributor, or
dealer has acted or is acting in compliance with this Article or the National
Manufactured Housing Construction and Safety Standards Act of 1974. Act,
and any rules adopted by the Commissioner under this Article.
"§
143-151.4. Notification of defects. defects and correction
procedures.
Every manufacturer of manufactured homes shall furnish provide
for notification of any defect and correction procedures in
any manufactured home produced by such the manufacturer and
correct such defect in accordance with the Act, this Article, and
any procedures specified rules adopted by the Commissioner.
"§ 143-151.5. Prohibited acts.
(a) No person shall:
(1) Manufacture for sale,
lease, sell, offer for sale or lease, or introduce or deliver, or import
into the United States, any manufactured home which that is
manufactured on or after the effective date of any applicable manufactured home
construction and safety standard under the Act or this Article and which
that does not comply with such the standard, except as
provided in subsection (b); subsections (b), (c), and (d) of this
section.
(2) Fail or refuse to
permit access to or copying of records, or fail to make reports or provide
information, or fail or refuse to permit entry or inspection, as required under
the Act or this Article; Article.
(3) Fail to furnish
notification of any defect as required by G.S. 143-151.4; the Act or
this Article.
(4) Fail to issue a certificate
of compliance, label or issue a certification to the effect that
a manufactured home conforms to all applicable manufactured home construction
and safety standards, label if such the person in the
exercise of due care has reason to know that such certification the
label is false or misleading in a material respect; respect.
(5) Fail to comply with a
rule adopted or an order issued by the Commissioner under this Article;
or Article.
(6) Issue a certification
pursuant to G.S. 143-148 if such the person in the exercise of
due care has reason to know that such the certification is false
or misleading in a material respect.
(b)
(1) Paragraph (1) of subsection (a)
shall Subdivision (a)(1) of this section does not apply to the
sale, the offer for sale, or the introduction or delivery of any manufactured
home after the first purchase of it in good faith for purposes other than
resale.
(2) Paragraph (1) of
subsection (a) shall Subdivision (a)(1) of this section does not
apply to any person who establishes that he did not have reason to know in the
exercise of due care that such the manufactured home was not in
conformity with applicable manufactured home construction and safety standards,
standards. or
(c) Subdivision
(a)(1) of this section shall not apply to any person who, prior to such before
the first purchase, holds a certificate of compliance issued by the
manufacturer or importer of such the manufactured home to the
effect that such mobile the manufactured home conforms to all
applicable manufactured home construction and safety standards, unless such the
person knows that such the manufactured home does not so
conform.
"§§ 143-151.6, 143-151.7: Reserved for future codification purposes."
Section 3. Article 9D of Chapter 143 of the General Statutes is repealed.
Section 4. G.S. 58-2-55 reads as rewritten:
"§ 58-2-55. Designated hearing officers.
In any contested case under Articles 1 through 64, 65 and
66, 67, 69, 70, or 71 of this Chapter, Chapter or Article 9A or
Article 9B of Chapter 143 of the General Statutes, the Commissioner may
designate a member of his staff to serve as a hearing officer. When the
Commissioner is unable or elects not to hear a contested case and elects not to
designate a hearing officer to hear a contested case, he shall apply to the
director of the Office of Administrative Hearings for the designation of an administrative
law judge to preside at the hearing of a contested case. Upon receipt of
the application, the Director shall, without undue delay, assign an
administrative law judge to hear the case."
Section 5. Structures built before the effective date of the Act shall not be affected by any changes made in this Article.
Section 6. G.S. 143-143.21A, as amended in Section 1 of this act, becomes effective January 1, 2000. The remainder of this act is effective when it becomes law.
In the General Assembly read three times and ratified this the 15th day of July, 1999.
s/ Dennis A. Wicker
President of the Senate
s/ James B. Black
Speaker of the House of Representatives
s/ James B. Hunt, Jr.
Governor
Approved 10:20 p.m. this 4th day of August, 1999