Bill 350

                    Current Status

Bill Number:               350
Ratification Number:       195
Act Number                 128
Introducing Body:          Senate
Subject:                   Uniform Standard Ccode for Manufactured
                           Housing

(A128, R195, S350)

AN ACT TO AMEND TITLE 40, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 29 SO AS TO ENACT THE UNIFORM STANDARDS CODE FOR MANUFACTURED HOUSING; TO AMEND THE 1976 CODE BY ADDING SECTIONS 31-1-40 AND 31-1-50 SO AS TO REQUIRE AN ELECTRICAL PERMIT FOR A CONNECTION TO A MOBILE HOME AND TO PROVIDE PENALTIES; TO REAUTHORIZE THE EXISTENCE OF THE SOUTH CAROLINA MANUFACTURED HOUSING BOARD; AND TO REPEAL ARTICLE 1, CHAPTER 17 OF TITLE 31 RELATING TO MOBILE HOMES AND HOUSE TRAILERS.

Be it enacted by the General Assembly of the State of South Carolina:

Uniform Standard Code for Manufactured Housing

SECTION 1. Title 40 of the 1976 Code is amended by adding:

"CHAPTER 29

Uniform Standards Code of

Manufactured Housing

Section 40-29-10. This chapter may be cited as the 'Uniform Standards Code for Manufactured Housing Act'.

Section 40-29-20. Unless clearly indicated otherwise, as used in this article:

(1) 'Authorized official' means a person acting on behalf of a manufactured home retail dealer.

(2) 'Board' means the South Carolina Manufactured Housing Board.

(3) 'Construction and Safety Standards Act' means Federal Manufactured Housing Construction and Safety Standards Act of 1974.

(4) 'Consumer' means a person who in good faith purchases a manufactured home for purposes other than resale.

(5) 'Defect' includes a defect in the performance, construction, components, or material of a manufactured home that renders the home or any part of it not fit for the ordinary use for which it was intended.

(6) 'Division' means the Division of General Services of the State Budget and Control Board and the staff responsible for providing administrative support to the Manufactured Housing Board. (7) 'Established place of business' means the office, building, or display area where the exercise of the ordinary and regular functions of the business are conducted for the purpose of carrying on the business of the owner and where books, records, files, inventory, and equipment necessary to properly conduct the business are maintained.

(8) 'Imminent safety hazard' means a hazard that presents an imminent and unreasonable risk of death or severe personal injury.

(9) 'Manufactured home' means a structure, transportable in one or more sections, which, in the traveling mode, is eight body feet or more in width, or forty body feet or more in length, or, when erected on site, is three hundred twenty 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 in it.

(10) 'Manufactured home retail dealer' means a person engaged in the business of buying, selling, offering for sale, or dealing in manufactured homes or offering for display manufactured homes for sale in South Carolina. A person who buys, sells, or deals in five or more manufactured homes in any twelve-month period, or who offers or displays for sale five or more manufactured homes in a twelve-month period is considered a manufactured home retail dealer. 'Selling' and 'sale' include lease-purchase transactions. 'Manufactured home retail dealer' does not include banks and finance companies that acquire manufactured homes as an incident to their regular business.

(11) 'Manufactured home manufacturer' means a person, resident or nonresident, who designs, constructs, or produces manufactured homes.

(12) 'Manufactured home retail salesman' means a person who is an employee or otherwise acts as an agent or representative of a manufactured home retail dealer and holds himself out as promoting, offering for sale, or selling the manufactured home retail dealer's goods or services.

(13) 'Manufacturer's representative' means a person who is an employee or otherwise acts as an agent or representative of a manufactured home manufacturer for the purpose of promoting, offering for sale, or selling the manufacturer's goods or services. (14) 'Person' means an individual, natural person, firm, partnership, association, corporation, legal representative, or other recognized legal entity.

(15) 'Secretary' means the Secretary of Housing and Urban Development (HUD).

(16) 'Setup' means the installation operations performed at the occupancy site which render a manufactured home fit for habitation. Such operations include, but are not limited to, positioning, blocking, leveling, supporting, tying down, connecting utility systems, and assembling multiple or expandable units.

(17) 'Standard' means the appropriate standards adopted by the State of South Carolina and established by the Department of Housing and Urban Development pursuant to the Federal Manufactured Housing Construction and Safety Standards Act of 1974 for single family manufactured homes.

(18) 'State Administrative Agency (SAA)' means the agency of the State which has been approved to carry out the state plan and to enforce the National Manufactured Housing Construction and Safety Standards Act within South Carolina.

Section 40-29-30. There is created the 'Manufactured Housing Board'. It is composed of nine 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, 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.

Each member of the board shall receive the usual per diem, mileage, and subsistence as provided by law for members of boards, commissions, and committees for days on which they are transacting official business to be paid from monies appropriated from the general fund of the State for these purposes.

The board shall meet on a regular basis. The board shall provide notice to interested members of the public of its scheduled and special meetings. It may hold special meetings other than regularly scheduled meetings, at the call of the chairman.

No member of the board may participate in any proceeding before the board involving his licensed business.

A majority of the board may petition the Governor to remove and replace a member of the board for cause that includes, but is not limited to:

(1) the request of that board member to be replaced;

(2) failure of that board member to participate regularly at meetings called by the chairman;

(3) action that, in the judgment of the board, hinders the performance of the board in its duties to carry out the purpose of this chapter.

Section 40-29-40. Manufactured homes, and their integral parts, because of the manner of their construction, assembly, and use and that of their systems, components and appliances, including, but not limited to, heating, plumbing, and electrical systems, like other finished products having concealed vital parts, may present hazards to the 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 safety and protection to their owners and users and further to provide that the business practices of the industry are fair and orderly among the members of the industry with due regard to the ultimate consumers in this important area of human shelter.

Section 40-29-50. The board shall:

(1) annually elect by majority vote a chairman and vice-chairman from its membership. Not more than one individual associated with the manufactured housing industry may hold the position of chairman or vice-chairman at the same time;

(2) establish by regulation classifications of licenses issued by the division and qualifications and examinations necessary for licensure under this chapter;

(3) suspend or revoke for cause a license issued by the division;

(4) establish, by regulation, the manner in which each consumer is notified of:

(a) warranties according to this chapter;

(b) the existence of the board and procedures for the filing of complaints;

(5) invoke fines or adjust surety bonding or other approved security requirements for cause in accordance with this chapter; (6) through the division, receive and resolve complaints from buyers of manufactured homes;

(7) conduct hearings regarding any violations of this chapter or regulations;

(8) subject to the approval of the Budget and Control Board, adopt regulations relating to the construction, repair, modification, installation, tie-down, hookup, and sale of all manufactured homes, which regulations must be uniform throughout the State and enforced by inspectors for the board to insure minimum standards of safety within the State and its political subdivisions. Ordinances of a political subdivision, relating to installation or sale of manufactured homes may not be inconsistent with a regulation or standard adopted by the division pursuant to this chapter;

(9) subject to the approval of the State Budget and Control Board, adopt regulations and standards necessary to carry out the provisions of this chapter;

(10) subject to the approval of the State Budget and Control Board, adopt by regulation the standards contained in the Construction and Safety Standards Act;

(11) subject to the approval of the Budget and Control Board, adopt by regulation the manufactured home procedural and enforcement regulations 24 C.F.R. 3282, as amended, promulgated by the Department of Housing and Urban Development pursuant to the Construction and Safety Standards Act;

(12) enter into cooperative agreements with federal agencies relating to manufactured housing and accept and use federal grants, matching funds, or other financial assistance to further the purposes of this chapter;

(13) subject to the approval of the State Budget and Control Board, adopt regulations for the conducting of hearings and the presentation of views, consistent with the regulations promulgated by the Department of Housing and Urban Development, 24 C.F.R. 3282.151 through 3282.156, as amended.

Section 40-29-60. The Division of General Services of the Budget and Control Board is responsible for assisting the board in the enforcement of the laws and regulations of the board and shall provide the personnel necessary to the board for the implementation of its duties.

In accordance with this chapter, the division shall:

(1) assist the board in its duties;

(2) prepare, administer, and grade examinations for licensure under the classifications sought by the applicant;

(3) issue licenses;

(4) collect fees;

(5) assist the board in receiving, hearing, and resolving complaints from buyers of manufactured homes.

Section 40-29-70. No person may sell or offer for sale a manufactured home manufactured after June 15, 1976, unless its components, systems, and appliances meet the criteria of compliance with the Construction and Safety Standards Act and have been properly certified by the Department of Housing and Urban Development.

Section 40-29-80. A manufactured home unit bearing a label or seal indicating compliance with Section 40-29-70 is acceptable as meeting the requirements of this chapter throughout the State without further inspection fees except for final setup installation inspection fees not exceeding ten dollars and zoning and utility connection inspection fees. No setup installation regulation or standard may be enforced unless it meets the requirements of the Construction and Safety Standards Act. A copy of a setup regulation or standard other than the Federal Regulations and Standards must be registered with the board.

Section 40-29-90. The board, as the state administrative agency, shall establish a monitoring inspection fee in an amount established by the secretary. The fee must be paid by the manufacturer to the secretary or his agent who shall distribute the fees collected from all manufactured home manufacturers among the approved and conditionally approved states by the secretary and 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 extent of participation of the State in the joint monitoring team program established under the Construction and Safety Standards Act.

In municipalities and counties where building, construction, or tax permits are issued no supplier of electricity in this State may connect electrical power to any manufactured homes after April 1, 1972, unless the owner of the manufactured home presents to the supplier of electricity a permit which may be part of a building, construction, or tax permit from an authorized officer of a municipality or county where the manufactured home is located that the manufactured home meets the requirements. A sworn affidavit or other proof from the owner of the manufactured home that it bears the label or seal or compliance number of an approved independent third-party testing and inspecting agent or of a foreign state granted reciprocity or a HUD manufactured home label is sufficient evidence of compliance for the municipal or county official to issue the electrical permit.

The governing body of a municipality or county of this State shall designate an officer to issue the permit.

This section does not apply to a manufactured home if it has been connected to electricity before April 1, 1972. An affidavit of the owner of the manufactured home that it has been connected before that date is satisfactory evidence for the officer of the municipality or county to issue the certificate.

Section 40-29-100. (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. 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.

(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. 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, has 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 Tax Commission and submit a current tax identification number; and

(7) where applicable pass an examination administered by the division in the license classification for which application is made.

(C) Fees for licenses must be set in accordance with regulations promulgated by the board.

(D) Licenses are not required for a licensed real estate salesman or broker who negotiates for sale or sells a manufactured home for an individual who is the owner of not more than two manufactured homes.

(E) Each 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 manufactured home retail dealer and manufactured home manufacturer to display conspicuously the licenses in the established place of business. Manufactured home retail salesmen 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.

(F) The board shall prescribe the form of license and each license must have printed on it the seal of its office.

Section 40-29-110. (A) No manufactured home salesman may be issued a license for the first time until he has passed with a satisfactory score, an examination prepared, graded, and administered by the division, under the supervision of the board. The examination, where applicable, must determine the applicant's:

(1) general business knowledge;

(2) technical knowledge and familiarity with the prescribed standards;

(3) general knowledge of the statutes and regulations of this State relating to the advertising, sale, and financing of manufactured homes.

(B) No license may be issued to a manufactured home dealer unless the division is satisfied that the authorized official, stockholder, copartner, or manufactured home salesman authorized to sell by authority of the dealer license has passed successfully the appropriate examination.

(C) If a license lapses over six months, in order to be relicensed the applicant is required to be examined or reexamined before issuance of the license sought.

(D) Fees for examinations must be established by regulations promulgated by the board.

Section 40-29-120. (A) At the time of making application, all licensees for a manufactured housing license shall furnish a corporate surety bond or other security in the form prescribed by the board for the license term outlined in Section 40-29-100, in the following amounts:

(1) for a manufactured home manufacturer, seventy-five thousand dollars for each location;

(2) for a manufactured home retail dealer, fifteen thousand dollars for each location;

(3) for a manufactured home retail salesman, ten thousand dollars;

(4) for a manufacturer's representative, ten thousand dollars. (B) (1) The surety bond or other approved security must be made payable to the board and claims may be initiated only through the complaint process provided by the board. Claims are limited to the reasons stated in this section and are for actual damages and do not include attorney fees or punitive damages incurred by the consumer as a result of the complaint.

(2) At the beginning of each subsequent renewal license period, a continuation certificate or proof of surety bond coverage or other approved security through the renewal license period must be delivered to the board with proper renewal application and fee. (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. 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.

(4) The surety bond or other approved security may not be released by the board until all claims and complaints against the licensee have been finally resolved or until seven years after the licensee has ceased doing business in South Carolina, whichever period is later.

(5) All liability on a surety bond or other approved security is applicable to the surety bond or other security in effect as of the date of the occurrence which gave rise to the liability. In the event that the total claims against a surety bond or other form of approved security exceed the coverage amount of the surety bond or other approved security, the proceeds of the surety bond or other approved security may be distributed pro rata to the claimants.

(6) The board may file claims against a licensee's surety bond or other approved security and indemnify a consumer for losses to the limit of the surety bond or other approved security for damages resulting from the licensee's violation of this chapter or regulations promulgated by its authority or from fraud, misrepresentation, making of false promises, or the refusal, failure, or inability to transfer good and sufficient legal title.

Section 40-29-130. (A) If repair work is required on the consumer's home and the manufacturer or dealer 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 if conditions require a waiver. The division 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.

(B) If reimbursement to a consumer for repairs, parts, or other work is requested in a complaint, the division, with the approval of the board, shall determine the reasonable value of the repairs, part, or work. The consumer may not be reimbursed from the surety bond or other approved security in an amount more than the reasonable value of the repairs, part, or work.

(C) If a licensee does not conduct business after issuance of his license and the posting of the applicable surety bond or other approved security, the board, upon receipt of satisfactory evidence that no business was conducted, and upon surrender of the license, may release the licensee's surety bond or other approved security.

Section 40-29-140. Each surety bond or other approved security issued for a manufactured home manufacturer, a manufactured home retail dealer, a salesperson, or a manufacturer's representative must be indemnity for a loss sustained by a consumer as a result of:

(1) a violation of a provision of this chapter or regulation of the board;

(2) a violation of the written warranty or to fulfill warranty obligations as outlined in Section 40-29-170;

(3) fraud in the execution or performance of a contract;

(4) a misrepresentation in reference to the sale of a manufactured home;

(5) refusal, failure, or inability to transfer good and sufficient legal title to the consumer;

(6) a misappropriation of funds belonging to the consumer;

(7) an alteration to deceive the consumer as to the manufacture or construction of the product;

(8) a false and fraudulent representation or deceitful practice in selling, financing, or representing a product or service.

Section 40-29-150. The board may suspend for a determinate period or revoke a license issued to a licensee or authorized official under the provisions of this chapter for:

(1) false, misleading, or deceptive advertising;

(2) knowingly contracting or performing a service beyond the scope of the license;

(3) misrepresentation of a material fact by the applicant in obtaining a license;

(4) misrepresentation or omission of a material fact in a manufactured home transaction;

(5) failure to comply with the warranty requirements of this chapter or regulations of the board pursuant to those requirements; (6) failure by a manufacturer or dealer to transfer good and sufficient title to the purchaser of a manufactured home;

(7) conviction of a licensee in a court of competent jurisdiction of a felony or an offense involving moral turpitude;

(8) failing to have an established place of business;

(9) wilfully defrauding a retail buyer, to the buyer's damage through misrepresentation or misappropriation of funds belonging to the buyer;

(10) employment of fraudulent devices, methods, or practices in connection with compliance with the requirements of this chapter;

(11) having used unfair methods of competition or unfair deceptive acts or practices;

(12) knowingly advertising or selling a used manufactured home as a new manufactured home;

(13) failing to obtain a license before doing business in this State;

(14) having knowingly failed or refused to account for or to pay over monies or other valuables belonging to others which have come into the licensee's possession arising out of the sale of manufactured homes;

(15) failing to appear before the board upon due notice, or to follow directives of the board;

(16) failing to comply with adopted state or federal standards in the manufacture, sale, or delivery of manufactured housing;

(17) employing unlicensed manufacturer's representatives or retail salesmen;

(18) knowingly purchasing a manufactured home from an unlicensed manufacturer or knowingly selling or offering a manufactured home to an unlicensed manufactured home dealer;

(19) knowingly purchasing a manufactured home from unlicensed manufacturer's representatives.

Section 40-29-160. 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 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 examiner. 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.

Upon appearance, if it is determined that an administrative penalty must be imposed, the person cited may appeal the decision to the board. The request for appeal must be in writing.

A licensee who violates a provision of this chapter or regulation in regard to consumer complaints shall upon citation by the board appear before an agent of the board appointed to act as administrative hearing examiner for a hearing which may result in the imposition of the following administrative penalties:

(1) for a first offense, a fine of not more than five hundred dollars or a license suspension of not more than thirty days, or both;

(2) for a second offense, a fine of not more than one thousand dollars or suspension of not more than sixty days, or both;

(3) for a third offense, a fine of not more two thousand dollars or a license suspension of not more than ninety days, or both.

The licensee must be given at least thirty days' notice of the time and place of the hearing and of the charges. A person aggrieved by a ruling of the administrative hearing examiner may appeal to the board within fifteen days after the ruling. The request for appeal must be in writing. The board shall state in writing its findings and determinations after the appeal and its decision in the matter. Appeals from the decision of the board are as provided in Article 3, Chapter 23, Title 1 (the Administrative Procedures Act).

A licensee who violates any other provisions of this chapter or regulations promulgated by its authority or accumulates three or more consumer complaints or violations which have not been corrected within the prescribed time upon citation of the board shall appear before the board for a hearing which may result in:

(1) a fine of not more than two thousand five hundred dollars or license suspension or revocation for not more than one year;

(2) increase in surety bonding or other approved security requirements.

The licensee must be given at least thirty days' notice of the time and place of the hearing and of the charges. A person aggrieved by a ruling of the board may appeal as provided in Article 3, Chapter 23, Title 1 (the Administrative Procedures Act).

Section 40-29-170. 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:

(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;

(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:

(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 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 regulations 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.

Section 40-29-180. A substantial defect must be remedied within thirty days of receipt of the written notification of the warranty claim, unless the claim is unreasonable or bona fide reasons exist for not remedying the defect within the thirty-day period. Defects which constitute an imminent safety hazard to life and health must be remedied within five working days of receipt of the written notification of the warranty claim. An imminent safety hazard to life and health includes, but is not limited to:

(1) inadequate heating in freezing weather;

(2) failure of sanitary facilities;

(3) electrical shock;

(4) leaking gas; or

(5) 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.

Section 40-29-190. If the new manufactured home is moved from the initial installation site during the term of the warranty period, the new home warranty does not apply to a defect or damage caused by the move. Conspicuous notice of this section must be given to the customer at the time of the sale.

Section 40-29-200. The board may carry out the responsibilities as the state administrative agency for South Carolina of the Construction and Safety Standards Act. The manufactured home retail dealer, the manufactured home representative, and the manufactured home retail salesman do not enforce the federal act, to ensure no conflict of interest.

Section 40-29-210. The board shall oversee the handling of manufactured home consumer complaints that may be due to electrical, mechanical, or structural defects or nonconformances to the Construction and Safety Standards Act, standards and regulations. As part of this responsibility, the manufactured home manufacturers must be inspected and monitored for compliance with federal manufactured home standards and regulations. In the conduct of its responsibilities under this section, the board shall recognize the need for life safety requirements as a part of its general oversight function and shall receive advice in the life safety area from the State Fire Commission and State Fire Marshal to insure that fire prevention is a part of the overall program under the terms of this chapter.

Section 40-29-220. The board, by its authorized representatives, may enter, at reasonable times, a factory, warehouse, or establishment, in which manufactured homes are manufactured, stored, or held for sale for the purpose of ascertaining whether the requirements of the Construction and Safety Standard Act and the regulations of the board have been and are being met.

Section 40-29-230. Each manufacturer, distributor, and dealer of manufactured homes shall establish and maintain records, make reports, and provide information as the SAA administrator or the secretary may require to determine whether the manufacturer, distributor, or dealer has acted or is acting in compliance with this chapter or the Construction and Safety Standards Act and upon request of a person appointed by the administrator or the secretary shall permit the person to inspect appropriate books, papers, records, and documents relevant to determining whether the manufacturer, distributor, or dealer has acted or is acting in compliance with this chapter.

Section 40-29-240. (A) A person who violates any of the following provisions relating to manufactured homes or regulations promulgated by the board is liable for a civil penalty not to exceed one thousand dollars for each violation. Each violation constitutes a separate violation with respect to each manufactured home, except that the maximum penalty may not exceed one million dollars for a related series of violations occurring within one year from the date of the first violation. No person may:

(1) manufacture for sale, lease, sell, offer for sale or lease, or introduce or deliver, or import into the State a manufactured home which is manufactured on or after the effective date of an applicable Construction and Safety Standards Act which does not comply with the standard;

(2) fail or refuse to permit access to or copying records, or fail to make reports or provide information; or fail or refuse to permit entry or inspection as required by Sections 40-29-220 and 40-29-230;

(3) fail to furnish notification of a defect as required by 42 U.S.C. 5414;

(4) fail to issue a certification required by 42 U.S.C. 5415 or issue a certification to the effect that a manufactured home conforms to all applicable Construction and Safety Standards, if the person in the exercise of due care has reason to know that the certification is false or misleading in a material respect;

(5) fail to establish and maintain records, make reports, and provide information as the board reasonably may require to enable it to determine whether there is compliance with the Construction and Safety Standards Act; or fail to permit, upon request of a person duly authorized by the board, inspection of appropriate books, papers, records, and documents relative to determining whether a manufacturer, distributor, or dealer has acted or is acting in compliance with this chapter or with the Construction and Safety Standards Act;

(6) issue a certification pursuant to 42 U.S.C. 5403(a) if the person in the exercise of due care has reason to know that the certification is false or misleading in a material respect.

(B) Subsection (A)(1) does not apply to the sale or the offer for sale of a manufactured home after the first purchase of it in good faith for purposes other than resale. (C)

Subsection (A)(1) does not apply to a person who establishes that he did not have reason to know in the exercise of due care that a manufactured home is not in conformity with applicable Construction and Safety Standards Act, or a person who, before the first purchase, holds a certificate by the manufacturer or importer of a manufactured home to the effect that the manufactured home conforms to all applicable construction and safety standards, unless the person knows that the manufactured home does not so conform.

Section 40-29-250. A person or officer, director, or agent of a corporation who wilfully or knowingly violates any of the provisions enumerated in state law, in any manner which threatens the health or safety of a purchaser is guilty of a misdemeanor and, upon conviction, must be fined not more than one thousand dollars or imprisoned for not more than one year, or both.

Section 40-29-260. The board may conduct hearings and presentations of views consistent with regulations adopted by the United States Department of Housing and Urban Development and adopt regulations necessary to carry out this function.

Section 40-29-270. All penalties or fees collected under the provisions of this chapter must be deposited in the general fund of the State."

Electrical power permits

SECTION 2. The 1976 Code is amended by adding:

"Section 31-1-40. In municipalities and counties where building, construction, or tax permits are issued no supplier of electricity in this State may connect electrical power to a manufactured home after April 1, 1972, unless the owner of the manufactured home presents to the supplier of electricity a permit which may be part of a building, construction, or tax permit from an authorized officer of a municipality or county where the manufactured home is located that the manufactured home meets the requirements of Chapter 29 of Title 40. A sworn affidavit or other proof from the owner of the manufactured home that it bears the label or seal or compliance number of an approved independent third party testing and inspecting agent or of a foreign state granted reciprocity or a HUD manufactured home label is sufficient evidence of compliance for the municipal or county official to issue the electrical permit.

The governing body of a municipality or county of this State shall designate an officer to issue the permit.

This section does not apply to a manufactured home if it has been connected to electricity before April 1, 1972. An affidavit of the owner of the manufactured home that it has been connected before that date is satisfactory evidence for the officer of the municipality or county to issue the certificate."

Penalties

SECTION 3. The 1976 Code is amended by adding:

"Section 31-1-50. It is unlawful for a person on or after April 1, 1972, to violate a provision of Section 31-1-40 or any ordinance relative to it. A person violating a provision of Section 31-1-40 is guilty of a misdemeanor and, upon conviction, must be fined not more than five hundred dollars for each offense."

Examination requirements

SECTION 4. Examination requirements under Section 40-29-110 take effect July 1, 1990.

Board existence reauthorized

SECTION 5. In accordance with Section 1-20-60 of the 1976 Code, the existence of the South Carolina Manufactured Housing Board is reauthorized for six years.

Repeal

SECTION 6. Article 1, Chapter 17, Title 31 of the 1976 Code is repealed.

Time effective

SECTION 7. This act takes effect upon approval by the Governor.