H. B. 4479
(By Delegates Pethtel, Poling, Cann, Frederick, Browning,
Martin, Talbott and Hartman)
(Originating in the Committee on Industry and Labor and
Economic Development and Small Business)
[February 9, 2006]
A BILL to amend and reenact §21-9-9 and §21-9-10 of the Code of
West Virginia, 1931, as amended, all relating to
Manufactured Housing Construction and Safety Standards;
creating a fund; providing for spending from certain funds;
and authorizing the assessment of annual fees in
satisfaction of assurance requirements.
Be it enacted by the Legislature of West Virginia:
That §21-9-9 and §21-9-10 of the Code of West Virginia,
1931, as amended, be amended and reenacted all to read as
follows:
ARTICLE 9. MANUFACTURED HOUSING CONSTRUCTION AND SAFETY
STANDARDS.
§21-9-9. License required; fees; form of license; display of
license; denial, suspension or revocation.
(a) No manufacturer, dealer, distributor or contractor shall
engage in business in this state without first having applied for
and received a license pursuant to this section. The license
shall authorize the holder to engage in the business permitted by the license. All license applications shall be accompanied by
the required fee and surety bond or other form of assurance or
fee assessed in satisfaction of assurance as required by rule or
regulation promulgated by the board.
(b) All licenses shall be granted or refused within thirty
days after proper and complete application. All licenses shall
expire on the thirtieth day of June of each year, unless sooner
revoked or suspended. Applications shall be deemed valid for a
period of thirty days.
(c) The annual license fees shall be in the amounts
prescribed from time to time by rules and regulations promulgated
by the board but in no event less than the following amounts:
(1) For manufacturers, three hundred dollars;
(2) For dealers, one hundred dollars;
(3) For distributors, one hundred dollars; and
(4) For contractors, fifty dollars: Provided, That if a
contractor has met the licensing requirements of this article and
the West Virginia contractor licensing act in article eleven of
this chapter, has paid the annual license fee under section
eight, article eleven of this chapter and has furnished bond or
other assurance or fee under section ten of this article, he or
she shall not be required to pay the annual license fee set forth
in this section.
(d) The board shall prescribe the form of license and each
license shall have affixed thereon the seal of the state department division of labor.
(e) Each licensee shall conspicuously display the license in
its established place of business.
(f) Pursuant to such rules and regulations as may be
promulgated by the board, the board may deny the issuance of a
license or revoke or suspend any license.
(g) The proceeds of such fees shall be deposited in a
special account in the state treasury to be used by the
department of labor for the administration of the provisions of
this article All license fees collected shall be deposited in a
special account in the State Treasury to be known as the "State
Manufactured Housing Administration Fund". Expenditures from the
fund shall be for the administration of the provisions of this
article and are not authorized from collections but are to be
made only in accordance with appropriation by the Legislature and
in accordance with the provisions of article two, chapter eleven-
b of this code: Provided, That for the fiscal year ending the
thirtieth day of June, 2006 expenditures are authorized from
collections rather than pursuant to appropriation by the
Legislature.
§21-9-10. Licensee to furnish bond or other form of assurance.
(a) Each manufacturer, dealer, distributor or contractor
which applies for a license under section nine of this article
shall, at the time of making application for the license, furnish
a surety bond or any other form of assurance of the applicant's financial responsibility permitted by the board by rule or
regulation, the surety bond or other form of assurance to be in
the amount prescribed by rule or regulation. In the event of
forfeiture of any bond or security, the proceeds thereof shall be
deposited in the special account created under section nine of
this article continued in subsection (c) of this section.
(b) The board may assess an annual fee on licensees in
satisfaction of the surety bond or other form of assurance
required by subsection (a).
This annual fee shall be in the
amounts prescribed from time to time by legislative rules
promulgated by the board but in no event less than the following
amounts:
(1) For each manufacturer's licensed business location, two
thousand five hundred dollars;
(2) For each dealer's and/or distributor's licensed business
location, one thousand dollars;
(3) For each licensed contractor, five hundred dollars
.
(c) All fees collected from fees assessed pursuant to this
section or the proceeds from the forfeiture of any bond or other
security provided pursuant to this section or any fines paid to
the board shall be deposited in the special account in the State
Treasury known as the "State Manufactured Housing Recovery Fund".
Expenditures from the fund shall be for the purposes set forth in
subsection (d) of this section. If the balance of the fund on
the thirtieth day of June of any year equals or exceeds three hundred thousand dollars, no assessments shall be collected from
any previously licensed manufacturer, dealer, distributor or
contractor for the next licensure period. New applicants for
licensure shall pay the applicable assessment fee regardless of
the balance of the fund. The board is authorized at any time to
make special assessments upon all licensed manufacturers,
dealers, distributors, and contractors if the board determines
that the assessments are necessary to maintain the fiscal
integrity of the fund. In no event may a special assessment be
issued by the Board until or unless the balance of the fund falls
below two hundred fifty thousand dollars.
(d) The bond or other form of assurance Moneys in the fund
shall cover any misappropriation of funds of a purchaser or
prospective purchaser of a manufactured home, any deception or
false or fraudulent representations or deceitful practices in
selling or representing a product, any failure by a licensee,
because of bankruptcy, insolvency or other reason, to fulfill
warranty obligations and any failure of the licensee, its agents
or employees, to comply with federal standards, this article or
any rules or regulations promulgated by the board pursuant to
this article: Provided, That any payment to purchasers or
prospective purchasers by the board from licensee bonds or other
forms of financial assurance shall not include punitive or
exemplary damages, any compensation for property damage other
than to the manufactured home, any recompense for any personal injury or inconvenience, any reimbursement for alternate housing,
or any payments for attorney fees, legal expenses or court costs.
NOTE: The purpose of this bill is to redefine the use and deposit
of funds related to Manufactured Housing Construction and Safety
Standards.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.
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