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H.B. 71

             1     

UNIFORM BUILDING STANDARDS

             2     
AMENDMENTS

             3     
1999 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: Lloyd W. Frandsen

             6      AN ACT RELATING TO OCCUPATIONS AND PROFESSIONS; REVISING THE
             7      REGISTRATION REQUIREMENTS FOR DEALERS OF FACTORY BUILT HOUSING;
             8      CREATING THE FACTORY BUILT HOUSING DEALER BOARD; AND MAKING
             9      TECHNICAL CHANGES.
             10      This act affects sections of Utah Code Annotated 1953 as follows:
             11      AMENDS:
             12          58-56-3, as last amended by Chapter 218, Laws of Utah 1995
             13          58-56-16, as last amended by Chapter 252, Laws of Utah 1993
             14          58-56-17, as last amended by Chapter 385, Laws of Utah 1997
             15      ENACTS:
             16          58-56-16.5, Utah Code Annotated 1953
             17      Be it enacted by the Legislature of the state of Utah:
             18          Section 1. Section 58-56-3 is amended to read:
             19           58-56-3. Definitions.
             20          In addition to the definitions in Section 58-1-102 , as used in this chapter:
             21          (1) "ANSI" means American National Standards Institute, Inc.
             22          (2) "Code(s)" means the NEC, building code, mechanical code, or plumbing code as
             23      defined in this section and as applied in context.
             24          (3) "Commission" means the Uniform Building Code Commission created under this
             25      chapter.
             26          (4) "Compliance agency" means an agency of the state or any of its political subdivisions
             27      which issue permits for construction regulated under the codes, or any other agency of the state or


             28      its political subdivisions specifically empowered to enforce compliance with the codes.
             29          (5) "Factory built housing" means manufactured homes or mobile homes.
             30          (6) "HUD code" means the Federal Manufactured Housing Construction and Safety
             31      Standards Act.
             32          (7) "Installation standard" means the standard adopted and published by the National
             33      Conference of States on Building Codes and Standards (NCSBCS), for the installation of
             34      manufactured homes titled "The Standard for Manufactured Home Installations," the
             35      accompanying manufacturer's instructions for the installation of the manufactured home, or such
             36      equivalent standard as adopted by rule.
             37          (8) "Local regulator" means each political subdivision of the state which is empowered to
             38      engage in the regulation of construction, alteration, remodeling, building, repair, and other
             39      activities subject to the codes adopted pursuant to this chapter.
             40          (9) "Manufactured home" means a transportable factory built housing unit constructed on
             41      or after June 15, 1976, according to the Federal Home Construction and Safety Standards Act of
             42      1974 (HUD Code), in one or more sections, which, in the traveling mode, is eight body feet or
             43      more in width or 40 body feet or more in length, or when erected on site, is 400 or more square
             44      feet, and which is built on a permanent chassis and designed to be used as a dwelling with or
             45      without a permanent foundation when connected to the required utilities, and includes the
             46      plumbing, heating, air-conditioning, and electrical systems. All manufactured homes constructed
             47      on or after June 15, 1976, shall be identifiable by the manufacturer's data plate bearing the date the
             48      unit was manufactured and a HUD label attached to the exterior of the home certifying the home
             49      was manufactured to HUD standards.
             50          (10) "Factory built housing set-up contractor" means an individual licensed by the division
             51      to set up or install factory built housing on a temporary or permanent basis. The scope of the work
             52      included under the license includes the placement and or securing of the factory built housing on
             53      a permanent or temporary foundation, securing the units together if required, and connection of
             54      the utilities to the factory built housing unit, but does not include site preparation, construction of
             55      a permanent foundation, and construction of utility services to the near proximity of the factory
             56      built housing unit. If a dealer is not licensed as a factory built housing set up contractor, that
             57      individual must subcontract the connection services to individuals who are licensed by the division
             58      to perform those specific functions under Title 58, Chapter 55, Utah Construction Trades


             59      Licensing Act.
             60          (11) "Mobile home" means a transportable factory built housing unit built prior to June
             61      15, 1976, in accordance with a state mobile home code which existed prior to the Federal
             62      Manufactured Housing and Safety Standards Act (HUD Code).
             63          (12) "Modular unit" means a structure built from sections which are manufactured in
             64      accordance with the construction standards adopted pursuant to Section 58-56-4 and transported
             65      to a building site, the purpose of which is for human habitation, occupancy, or use.
             66          (13) "NEC" means the National Electrical Code.
             67          (14) "Opinion" means a written, nonbinding, and advisory statement issued by the
             68      commission concerning an interpretation of the meaning of the codes or the application of the
             69      codes in a specific circumstance issued in response to a specific request by a party to the issue.
             70          (15) "State regulator" means an agency of the state which is empowered to engage in the
             71      regulation of construction, alteration, remodeling, building, repair, and other activities subject to
             72      the codes adopted pursuant to this chapter.
             73          (16) "Unlawful conduct" is as defined in [Section] Subsection 58-1-501 (1) and includes:
             74          (a) engaging in the sale of factory built housing without being registered with the division
             75      as a dealer, unless the sale is exempt under Section 58-56-16 ; and
             76          (b) selling factory built housing within the state as a dealer without collecting and
             77      remitting to the division the fee required by Section 58-56-17 .
             78          (17) "Unprofessional conduct" is as defined in Subsection 58-1-501 (2) and includes:
             79          (a) any nondelivery of goods or services by a registered dealer which constitutes a breach
             80      of contract by the dealer;
             81          (b) the failure of a registered dealer to pay a subcontractor or supplier any amounts to
             82      which that subcontractor or supplier is legally entitled; and
             83          (c) any other activity which is defined as unprofessional conduct by division rule in
             84      collaboration with the Factory Built Housing Dealer Board in accordance with the provisions of
             85      Title 63, Chapter 46a, Utah Administrative Rulemaking Act.
             86          Section 2. Section 58-56-16 is amended to read:
             87           58-56-16. Registration of dealers -- Bonding requirements -- Renewal -- Exemptions
             88      -- Discipline.
             89          (1) Each person engaged in the sale of factory built housing in the state, except as provided


             90      in Subsection (4), shall [annually] register with the division as a dealer [and shall pay an annual
             91      registration fee of $15].
             92          (2) Each applicant for registration under this section shall:
             93          (a) submit an application in a form prescribed by the division;
             94          (b) pay a fee determined by the department under Section 63-38-3.2 ; and
             95          (c) provide the division with a registration bond in accordance with rules established by
             96      the division in collaboration with the Factory Built Housing Dealer Board.
             97          (3) (a) The division shall issue each registration under this section in accordance with a
             98      two-year renewal cycle established by rule.
             99          (b) The division may by rule extend or shorten a renewal cycle by as much as one year to
             100      stagger the renewal cycles it administers.
             101          (c) Each registration under this section automatically expires on the expiration date on the
             102      certificate of registration unless the registrant renews it in accordance with Section 58-1-308 .
             103          [(2)] (4) Subsection (1) does not apply to:
             104          (a) a person not regularly engaged in the sale of factory built housing who is selling a unit
             105      he owns for his own account;
             106          (b) a principal broker licensed under Title 61, Chapter 2, Division of Real Estate; or
             107          (c) a sales agent or associate broker licensed under Title 61, Chapter 2, Division of Real
             108      Estate, who sells factory built housing as an agent for, and under the supervision, of the licensed
             109      principal broker with whom he is affiliated.
             110          (5) Grounds for refusing to issue a registration, for refusing to renew a registration, for
             111      revoking, suspending, restricting, or placing on probation a registration, for issuing a public or
             112      private reprimand to a registrant, and for issuing a cease and desist order shall be in accordance
             113      with Section 58-1-401 .
             114          Section 3. Section 58-56-16.5 is enacted to read:
             115          58-56-16.5. Factory Built Housing Dealer Board.
             116          (1) There is created the Factory Built Housing Dealer Board, consisting of:
             117          (a) three dealers registered under Section 58-56-16 ;
             118          (b) one representative of a financial institution with experience in lending for factory built
             119      housing; and
             120          (c) one member of the general public.


             121          (2) The board shall be appointed and serve in accordance with Section 58-1-201 .
             122          (3) The duties and responsibilities of the board shall be in accordance with Sections
             123      58-1-202 and 58-1-203 . In addition, the board shall designate one of its members on a permanent
             124      or rotating basis to:
             125          (a) assist the division in reviewing complaints concerning unlawful or unprofessional
             126      conduct of a licensee; and
             127          (b) advise the division in its investigation of these complaints.
             128          (4) A board member who has, under Subsection (3), reviewed a complaint or advised in
             129      its investigation may be disqualified from participating with the board when the board serves as
             130      a presiding officer of an administrative proceeding concerning the complaint.
             131          Section 4. Section 58-56-17 is amended to read:
             132           58-56-17. Fees on sale -- Escrow agents -- Sales tax.
             133          (1) Each dealer shall collect and remit a fee of $75 to the division for each factory built
             134      home the dealer sells that has not been permanently affixed to real property. The fee shall be
             135      payable within 30 days following the close of each calendar quarter for all units sold during that
             136      calendar quarter. The fee shall be deposited in a restricted account as provided in Section
             137      58-56-17.5 .
             138          (2) Any principal real estate broker, associate broker, or sales agent exempt from
             139      registration as a dealer under Section 58-56-16 who sells a factory built home that has not been
             140      permanently affixed to real property shall close the sale only through a qualified escrow agent in
             141      this state registered with the Insurance Department or the Department of Financial Institutions.
             142          (3) Each escrow agent through which a sale is closed under Subsection (2) shall remit all
             143      required sales tax to the state.




Legislative Review Note
    as of 1-13-99 4:04 PM


A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel


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