Current Status Bill Number:794 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19950427 Primary Sponsor:Lander All Sponsors:Lander Drafted Document Number:jic\5866ac.95 Companion Bill Number:4055 Residing Body:Senate Current Committee:Labor, Commerce and Industry Committee 12 SLCI Subject:Manufactured housing provisions
Body Date Action Description Com Leg Involved
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Senate 19950427 Introduced, read first time, 12 SLCI
referred to Committee
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TO AMEND SECTION 40-29-20, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS IN THE UNIFORM STANDARDS CODE FOR MANUFACTURED HOUSING ACT, SO AS TO DEFINE "MANUFACTURED HOME CONTRACTOR", "MANUFACTURED HOME INSTALLER", AND "MANUFACTURED HOME REPAIRER"; TO AMEND SECTION 40-29-30, RELATING TO THE MANUFACTURED HOUSING BOARD, SO AS TO INCREASE THE MEMBERSHIP FROM NINE TO TEN; TO AMEND SECTION 49-29-100, AS AMENDED, RELATING TO LICENSES TO SELL MANUFACTURED HOMES, SO AS TO ALSO REQUIRE A MANUFACTURED HOME CONTRACTOR, INSTALLER, AND REPAIRER TO BE LICENSED AND TO PROVIDE ADDITIONAL LICENSING REQUIREMENTS; TO AMEND SECTION 40-29-110, AS AMENDED, RELATING TO EXAMINATION REQUIREMENTS FOR LICENSURE, SO AS TO ALSO PROVIDE THAT A MANUFACTURED HOME CONTRACTOR, INSTALLER, OR REPAIRER MUST COMPLETE ANY TRAINING REQUIRED BY THE BOARD; TO AMEND SECTION 40-29-120, RELATING TO SURETY BOND REQUIREMENTS, SO AS TO PROVIDE BOND REQUIREMENTS FOR MANUFACTURED HOME CONTRACTORS, INSTALLERS, AND REPAIRERS; TO AMEND SECTION 40-29-130, RELATING TO REQUIREMENTS FOR INDEMNIFICATION FROM SECURITY, SO AS TO INCLUDE MANUFACTURED HOME CONTRACTORS, INSTALLERS, AND REPAIRERS IN THESE REQUIREMENTS; TO AMEND SECTION 40-29-150, RELATING TO GROUNDS FOR DISCIPLINE, SO AS TO ALSO APPLY STANDARDS TO MANUFACTURED HOME INSTALLATION, REPAIR, AND MODIFICATION; TO AMEND SECTION 40-29-160, AS AMENDED, RELATING TO PENALTIES, SO AS TO PROVIDE THAT AN ADMINISTRATIVE PENALTY MAY APPLY TO A PERSON ENGAGING IN ANY ACTIVITY FOR WHICH A LICENSE IS REQUIRED UNDER CHAPTER 29; AND TO AMEND SECTION 40-29-170, RELATING TO WARRANTY REQUIREMENTS, SO AS TO INCLUDE REQUIREMENTS FOR MANUFACTURED HOME CONTRACTORS, INSTALLERS, AND REPAIRERS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 40-29-20 of the 1976 Code, as last amended by Section 900, Act 181 of 1993, is further amended by adding appropriately numbered items alphabetically to read:
"( ) `Manufactured home contractor' means a person or entity, other than an employee of a licensed manufactured home retail dealer or person performing a function which the person is licensed to perform, who for valuable consideration engages in the installation, modification, alteration, or repair to the structural, mechanical, or electrical systems of a manufactured home.
( ) `Manufactured home installer' means a person or entity, other than an employee of a licensed manufactured home retail dealer or person performing a function which the person is licensed to perform, who for valuable consideration installs manufactured housing.
( ) `Manufactured home repairer' means a person or entity, other than an employee of a licensed manufactured home retail dealer or person performing a function which the person is licensed to perform, who for valuable consideration modifies, alters, or repairs the structural, mechanical, or electrical systems of a manufactured home."
SECTION 2. The first paragraph of Section 40-29-30 of the 1976 Code, as added by Act 128 of 1989, is amended to read:
"There is created the "Manufactured Housing Board". It is composed of nine ten members who are residents of South Carolina appointed by the Governor for terms of four years, and until their successors are appointed and qualify. Terms of the members are limited to two consecutive four-year terms, except for the manufactured housing manufacturer. The board shall include a manufactured home retail dealer owner, a representative of the fire and casualty insurance business, a full-time employee of a fire department, a manufactured home manufacturer, a representative of the banking and finance business, a registered professional engineer, a licensed manufactured home contractor, installer, or repairer, one member from the general public who must not be associated with any of the other industries represented on the board other than as a minority stockholder, a member from the general public who currently resides in a manufactured home, and a manufactured home retail salesman. The State Fire Marshal shall serve on the board as a consultant and as an ex officio member without vote."
SECTION 3. Section 49-29-100(A) of the 1976 Code, as added by Act 128 of 1989, is amended to read:
"(A) No person may engage in the business of selling, wholesale or retail, as a manufactured home retail dealer, manufactured home retail salesman, manufactured home manufacturer, or manufacturer's representative, in this State without being licensed by the board. No manufactured home contractor may install, modify, alter, or repair the structural, mechanical, or electrical systems of a manufactured home without being licensed by the board. No manufactured home installer may install manufactured housing without being licensed by the board. No manufactured home repairer may modify, alter, or repair the structural, mechanical, or electrical systems of a manufactured home without being licensed by the board. The license must authorize the holder to engage in the business permitted by the license. All license applications must be accompanied by the required fee and corporate surety bond or other security in the form as prescribed by the board."
SECTION 4. Section 40-29-100(B) of the 1976 Code, as last amended by Section 902, Act 181 of 1993, is further amended to read:
"(B) All licenses must be granted or refused within thirty days after proper and complete application. All licenses expire June thirtieth of each year following the date of issue, unless sooner revoked or suspended; however, the licenses of manufactured home contractors, installers, and repairers expire December thirty-first of each year following the date of issue, unless sooner revoked or suspended. An applicant for licensing shall:
(1) demonstrate financial responsibility as required by regulations of the board;
(2) not have engaged illegally in the licensed classification;
(3) demonstrate familiarity with the regulations adopted by the board concerning the classification for which application is made;
(4) if a corporation, have complied with the laws of South Carolina regarding qualification for doing business in this State or have been incorporated in South Carolina and have and maintain a registered agent and a registered office in this State;
(5) if an individual or partnership, have maintained a residence or street address in South Carolina for at least thirty days before the date of application;
(6) submit proof of registration with the South Carolina Department of Revenue and Taxation and submit a current tax identification number; and
(7) where applicable pass an examination administered by the board in the license classification for which application is made.;"
(8) where applicable, complete training as prescribed by the board."
SECTION 5. Section 40-29-100(E) of the 1976 Code, as added by Act 128 of 1989, is amended to read:
"(E) Each A license must be issued in only one person's name who may be the individual owner, stockholder, copartner, manufactured home retail salesman or other representative of a manufactured home manufacturer, manufactured home retail dealer, or other entity required to be licensed. It is the duty of each a manufactured home retail dealer and manufactured home manufacturer to display conspicuously display the licenses in the established place of business. Manufactured home retail salesmen, manufactured home contractors, installers, and repairers, and manufacturer's representatives are required to carry their licenses on their persons at all times when they are doing business in this State, and they must be shown upon request."
SECTION 6. Section 40-29-110 of the 1976 Code is amended by adding at the end:
"(E) No manufactured home contractor, installer, or repairer may be issued a license until the person or representative of the entity successfully completes any training prescribed by the board."
SECTION 7. Section 40-29-120(A)(4) of the 1976 Code, as added by Act 128 of 1989, is amended to read:
"(4) for a manufacturer's representative, ten thousand dollars for a manufactured home contractor, installer, or repairer, five thousand dollars."
SECTION 8. Section 40-29-120(B)(3) of the 1976 Code, as added by Act 128 of 1989, is amended to read:
"(3) The board, upon a finding of a violation by a licensee, may further require the licensee to increase the amount of a surety bond or other approved security. An increase must be proportioned to the seriousness of the offense or the repeat nature of the licensee's violations, but the total amount may not exceed an additional seventy-five thousand dollars for manufacturers, fifty thousand dollars for dealers, and twenty thousand dollars for salespersons or manufacturer's representatives, and ten thousand dollars for manufactured home contractors, installers, and repairers. The board, after one year, may reduce an increased surety bond or other approved security when satisfied that violations have been cured by appropriate corrective action and that the licensee is otherwise in good standing. The bonds cannot be reduced below amounts provided in this section."
SECTION 9. Section 40-29-130(A) of the 1976 Code, as added by Act 128 of 1989, is amended to read:
"(A) If repair work is required on the consumer's home and the manufacturer, or dealer, or manufactured home contractor, installer, or repairer is unavailable to perform the repairs or has not performed within the guidelines issued by the board, the board, through its staff, shall direct the consumer to obtain at least three bids for performance of the work. The requirement of three bids may be waived by the division board if conditions require a waiver. The division board shall select the low bidder to perform the repair work. The requirement of selecting the low bidder may be waived only if it is clear that the work cannot properly be performed at the bid level. Payment from the surety bond or other approved security must be authorized by the board only after the work is completed, inspected, and approved."
SECTION 10. Section 40-29-150(16) and (17) of the 1976 Code, as added by Act 128 of 1989, are amended to read:
"(16) failing to comply with adopted state or federal standards in the manufacture, sale, installation, repair, modification, or delivery of manufactured housing;
(17) employing unlicensed manufacturer's representatives or retail salesmen or knowingly contracting with an unlicensed manufactured home contractor, installer, or repairer;".
SECTION 11. The first paragraph of Section 40-29-160 of the 1976 Code, as last amended by Section 904, Act 181 of 1993, is further amended to read:
"A person selling or offering for sale manufactured homes in the state without a valid license to sell or offer for sale the homes or a person who employs a person selling or offering for sale manufactured homes in this State without a valid license to sell or offer for sale the homes engaging in or offering to engage in any activity for which a license is required by this chapter without having first obtained the requisite license is subject to an administrative penalty. The person must be issued a citation directing him to appear before an agent of the board appointed to act as the administrative hearing officer. An administrative penalty not to exceed five hundred dollars for each violation may be imposed. The person to whom a citation has been issued may forfeit appearance by payment of the imposed administrative penalty."
SECTION 12. Section 40-29-170 of the 1976 Code, as added by Act 128 of 1989, is amended to read:
"Section 40-29-170. (A) Each manufactured home manufacturer and manufactured home retail dealer of manufactured homes shall warrant each new manufactured home sold in the State in accordance with the warranty requirements prescribed by this section for at least twelve months from the date of delivery or installation of the manufactured home to the consumer. The warranty requirements for each manufactured home manufacturer and manufactured home retail dealer of manufactured homes are as follows:
(1) The manufacturer warrants that:
(a) that all structural elements, plumbing systems, heating, cooling, and fuel burning systems, electrical systems, and any other components included are manufactured and installed free from substantial defect in material and workmanship;
(b) that the manufactured home complies with this chapter and regulations promulgated by its authority under this chapter;
(c) that all appliances and equipment installed in the manufactured home must be free from defects in material and workmanship for one year, unless a valid warranty from the manufacturer or dealer of the appliances and equipment is furnished warranting against defects in materials and workmanship to the consumer for at least one year from date of delivery;
(d) that appropriate corrective action must be taken within a reasonable period of time after the warranty violation has been communicated to the manufactured home manufacturer by the division or by the consumer;
(e) the warranty may not be voided as long as the installation of the manufactured home conforms to the standards adopted in this chapter;
(f) that repair work performed under the one-year warranty is warranted for at least ninety days or until the end of the original one-year warranty, whichever is later.
(2) The manufactured home retail dealer warrants that:
(a) that all changes, additions, or alterations made to the manufactured home by the manufactured home retail dealer are free from defects in materials and workmanship and does do not bring the manufactured home out of compliance with the standards; and that all appliances and equipment installed by the manufactured home retail dealer are free from defects in materials and workmanship unless a valid written warranty from the manufacturer or dealer of the appliances and equipment is furnished to the consumer warranting against a defect in materials or workmanship for a period of time customary in the industry for a warranty for the particular appliance or equipment;
(b) that appropriate corrective action must be taken within a reasonable time after the warranty violation has been communicated to the manufactured home retail dealer by the division or by the consumer;
(c) that repair work on changes, additions, or alterations authorized by the manufactured home manufacturer must be warranted for at least ninety days or until the end of the original one-year warranty, whichever is later;
(d) that the setup operations performed by the dealer on the manufactured home must be performed in compliance with applicable federal or state standards, acts, or law; regulations or standards for the installation of manufactured homes, and during the course of setup and transportation of the manufactured home by the manufactured home retail dealer, substantial defects do not occur;
(e) alterations or modifications made by a manufactured home retail dealer without authorization of the manufactured home manufacturer relieve the manufactured home manufacturer of warranty responsibility as to the items altered or modified and any damage resulting from the alteration or modification.
(B) A manufactured home contractor, installer, or repairer shall warrant his work for a period of twelve months from completion of the work as follows:
(1) the contractor warrants that:
(a) all installations are performed in accordance with applicable state or federal law, regulations, or standards for the installation of manufactured homes and that his performance will not cause substantial defects in the home;
(b) all modifications, alterations, or repairs are performed in compliance with applicable state or federal law, regulations, or standards and that his performance will not cause substantial defects in the home;
(2) the installer warrants that:
(a) installation is performed in compliance with applicable state or federal law, regulations, or standards for the installation of manufactured homes;
(b) his performance will not cause substantial defects in the home;
(3) the repairer warrants that:
(a) all modifications, alterations, and repairs are performed in compliance with applicable state or federal law, regulations, or standards for the modification or repair of manufactured homes;
(b) his performance will not cause a substantial defect in the home."
SECTION 13. This act takes effect upon approval by the Governor except that Sections 3 and 7 take effect January 1, 1996, and Section 6 takes effect July 1, 1996.