ENROLLED ACT No. 221 2017 Regular Session HOUSE BILL NO. 471 BY REPRESENTATIVE FOIL 1 AN ACT 2 To amend and reenact R.S. 51:911.21, 911.22(5), (7), (8.1), (10)(introductory paragraph), 3 (11), and (12), 911.24(A)(1) through (3) and (6), (B)(introductory paragraph) and 4 (L), 911.26(A)(1), (D)(1) through (3), (F)(1) through (4) and (10), 911.29, 911.30, 5 911.32(E), 911.36, 911.38, 911.39, 911.41, 911.43, 911.46, 912.3(introductory 6 paragraph) and (7), 912.5(A), 912.21(introductory paragraph), (1), (2), (4), (6), and 7 (9) through (12), 912.22(introductory paragraph), (1), and (7), 912.25(2) and (3), 8 912.26, 912.27(A)(1) and (B) through (D), 912.28(A), and 912.52(B)(5), to enact 9 R.S. 51:911.22(13), 911.24(C)(3), 911.26(F)(11), and 912.21(13), and to repeal R.S. 10 51:911.24(K), 911.26(A)(3), and (J), and 911.28(A)(10); relative to provisions 11 applicable to manufactured and modular housing; to expand Parts XIV, XIV-A, and 12 XIV-B of Chapter 2 of Title 51 of the Louisiana Revised Statutes of 1950 with 13 respect to greater inclusion of and applicability to modular housing; to modify and 14 create definitions; to provide with respect to requirements of retailers, developers, 15 and transporters; to provide with respect to members at large and authority of the 16 Louisiana Manufactured Housing Commission; to require consumers to provide 17 certain written notice to the commission with respect to defects; to modify certain 18 installation standards; to provide with respect to licensure of installers and 19 transporters; to increase certain civil penalties for violations; to repeal certain 20 licensing requirements and fees applicable to manufactured home brokers; to repeal 21 obsolete provisions relative to the commission; to provide for technical corrections; 22 and to provide for related matters. 23 Be it enacted by the Legislature of Louisiana: 24 Section 1. R.S. 51:911.21, 911.22(5), (7), (8.1), (10)(introductory paragraph), (11), 25 and (12), 911.24(A)(1) through (3) and (6), (B)(introductory paragraph) and (L), 26 911.26(A)(1), (D)(1) through (3), (F)(1) through (4) and (10), 911.29, 911.30, 911.32(E), Page 1 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 471 ENROLLED 1 911.36, 911.38, 911.39, 911.41, 911.43, 911.46, 912.3(introductory paragraph) and (7), 2 912.5(A), 912.21(introductory paragraph), (1), (2), (4), (6), and (9) through (12), 3 912.22(introductory paragraph), (1), and (7), 912.25(2) and (3), 912.26, 912.27(A)(1) and 4 (B) through (D), 912.28(A), and 912.52(B)(5) are hereby amended and reenacted and R.S. 5 51:911.22(13), 911.24(C)(3), 911.26(F)(11), and 912.21(13) are hereby enacted to read as 6 follows: 7 PART XIV. MANUFACTURED AND MODUL AR HOUSING 8 §911.21. Short title 9 This Part shall be known and may be cited as "Uniform Standards Code for 10 Manufactured and Modular Housing". 11 §911.22. Definitions 12 As used in this Part, unless the context requires a different definition: 13 * * * 14 (5) "Manufactured home" and "manufactured housing" means mean a 15 factory-built, residential dwelling unit constructed to standards and codes, as 16 promulgated by the United States Department of Housing and Urban Development 17 (HUD), under the National Manufactured Housing Construction and Safety 18 Standards Act of 1974, 42 U.S.C. §5401 et seq., as amended. Further, the terms 19 "manufactured home" and "manufactured housing" may be used interchangeably and 20 apply to structures bearing the permanently affixed seal of the United States 21 Department of Housing and Urban Development or to factory-built, residential 22 dwellings that are mounted on a chassis. 23 * * * 24 (7) "Manufacturer" means any person who manufactures manufactured or 25 modular housing. 26 * * * 27 (8.1) "Modular home" and "modular housing" means mean a factory-built, 28 residential dwelling unit built to the International Residential Code as adopted by the 29 Louisiana State Uniform Construction Code Council. 30 * * * Page 2 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 471 ENROLLED 1 (10) "Retailer" means any person who is engaged wholly or in part in the 2 business of buying, selling, distributing, brokering, or exchanging an interest in a 3 manufactured or modular home with the intent to make a profit, monetary gain, or 4 any thing of economic value. Any person who buys, sells, distributes, brokers, or 5 exchanges an interest in more than one such manufactured or modular home in any 6 twelve-month period shall be presumed to be a retailer. "Retailer" shall not include 7 any of the following: 8 * * * 9 (11) "Salesman" means any person employed by a retailer or developer for 10 purposes of selling manufactured or modular housing to the public. 11 (12) "Seal" or "label" means the permanently affixed device or insignia 12 issued by the United States Department of Housing and Urban Development (HUD) 13 or other authority having jurisdiction that is displayed on the exterior of a factory- 14 built manufactured or modular home, certifying that the home is in compliance with 15 the applicable Code. 16 (13) "Transporter" means an individual who transports a manufactured or 17 modular home to a site of installation but does not perform any blocking or 18 anchoring of the home, except a transporter is allowed to put blocks under the hitch 19 on the tongue of the frame. 20 * * * 21 §911.24. License required; qualifications; application; issuance; transfer; criminal 22 history record information 23 A.(1) No manufacturer, retailer, or salesman within or without this state shall 24 sell or offer for sale in Louisiana any mobile home, modular home, or manufactured 25 housing unless he has obtained a valid manufacturer's, retailer's, or salesman's 26 license, whichever is applicable, from the commission as provided in this Part. 27 (2) No developer shall sell or offer for sale to the public any manufactured 28 or modular home unless he has obtained a license from the commission, as provided 29 in this Part. No employee of a developer shall offer manufactured or modular Page 3 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 471 ENROLLED 1 housing for sale to the general public without first obtaining a salesman license or 2 being a licensed real estate agent. 3 (3) No manufacturer within or without this state shall sell or offer for sale 4 to a person any manufactured or modular housing for resale to the public unless the 5 person has obtained a valid retailer's or developer's license from the commission as 6 provided in this Part. 7 * * * 8 (6) No retailers or developers shall offer for sale to the public any new 9 manufactured or modular home unless the manufacturer of the home has obtained 10 a valid manufacturer's license. 11 B. Application for a manufacturer's license shall be made upon the form 12 prescribed by the commission and shall contain all of the following: 13 * * * 14 C. 15 * * * 16 (3) All retailers and developers are required to have at least one licensed 17 salesman. 18 * * * 19 L. The commission shall require that retailers, developers, transporters, and 20 installers show proof of continued and ongoing general liability insurance coverage 21 of at least one hundred thousand dollars. Manufacturers shall be required to show 22 proof of continued and ongoing liability insurance coverage of at least one million 23 dollars. 24 * * * 25 §911.26. Louisiana Manufactured Housing Commission 26 A.(1) The Louisiana Manufactured Housing Commission is hereby created. 27 The commission shall be composed of seven members, with at least one member 28 appointed from each Public Service Commission district and two at-large members, Page 4 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 471 ENROLLED 1 all appointed by the governor with the consent of the Senate as provided in this 2 Section. 3 * * * 4 D.(1) The commission shall may hire a qualified person to serve as executive 5 director who shall have had sufficient management and organizational experience to 6 direct the day-to-day operations of the commission. The commission shall fix the 7 salary and shall define and prescribe the duties of the executive director. 8 (2) The executive director shall be in charge of the commission's office and 9 shall devote such time as directed by the commission to fulfill the duties thereof, and 10 before entering upon his duties he shall take and subscribe to the oath of office. 11 (3) The commission may employ such clerical, technical, legal, and other 12 help and incur such expenses as may be necessary for the proper discharge of its 13 duties under as provided in this Part and Part XIV-B of this Chapter. 14 * * * 15 F. The powers and duties of the commission shall include but are not limited 16 to the following: 17 (1) Licensing of manufacturers, retailers, developers, salesmen, transporters, 18 and installers as provided in this Part and Part XIV-B of this Chapter. 19 (2) Inspecting a reasonable sample of installations of manufactured and 20 modular homes within this state to insure ensure compliance with state and federal 21 standards. 22 (3) Working with consumers, manufacturers, retailers, developers, salesmen, 23 transporters, and installers to hear complaints and make determinations relating to 24 construction defects, warranty issues, service complaints, and other matters which 25 are not set forth pursuant to 24 CFR Part 3280 and 24 CFR Part 3282. 26 (4) Establishing an alternative dispute resolution process for manufactured 27 and modular home consumers in Louisiana. The commission may charge a 28 reasonable fee to defray the cost of establishing the alternative dispute resolution 29 process. 30 * * * Page 5 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 471 ENROLLED 1 (10) The authority to establish a mandatory uniform written transportation 2 and installation contract that is required to be used by all transporters and installers 3 when moving or installing a manufactured or modular home in this state. 4 Transporters and installers shall be required to give their customers a copy of the 5 contract, itemizing all services being provided and the cost associated with those 6 services, prior to beginning work or moving a home. These records shall be 7 maintained for at least three years and shall be made available to the commission for 8 inspection. Transporters who are only passing through the state or are delivering a 9 home from a manufacturer to a licensee of the commission, are not required to 10 comply with the provisions of this Paragraph. The commission shall have has the 11 authority to promulgate rules and regulations in accordance with the Administrative 12 Procedure Act in order to implement the provisions of this Paragraph. 13 (11) The authority to adopt rules governing the repairs or renovations of 14 manufactured homes. 15 * * * 16 §911.29. Motor vehicle inspection; exception 17 The provisions of Chapter 7 of Title 32 of the Louisiana Revised Statutes of 18 1950 relative to inspections shall not apply to manufactured or modular housing. 19 §911.30. Serial numbers on manufactured and modular homes 20 On each manufactured home manufactured after January 1, 1975, a A serial 21 number shall be stamped by the manufacturer on the header plate or front cross 22 member of the frame so that it can be easily read. It may not contain more than 23 fifteen digits. Any multiple units shall contain the same serial number with letters 24 of the alphabet designating that each is a different separate unit. Starting with the 25 letter "A", each unit addition shall be in alphabetical order. The letter shall be 26 stamped at the end of the serial number. 27 §911.32. Administration and enforcement of Part; powers of commission; cease and 28 desist orders; applicability of Administrative Procedure Act 29 * * * Page 6 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 471 ENROLLED 1 E. The commission or its authorized representatives may enter any place, 2 establishment, or location where manufactured or modular homes are manufactured, 3 sold, offered for sale, transported, or installed, for the purpose of ascertaining 4 whether the requirements of the Code and of this Part and Part XIV-B of this 5 Chapter, and the rules and regulations of the commission, have been or are being 6 complied with. 7 * * * 8 §911.36. Hearings to investigate and determine violations; orders prohibiting 9 violations and requiring compliance 10 A. Whenever in the opinion of the commission the Code or the requirements 11 of this Part or Part XIV-B of this Chapter are being violated, it may conduct hearings 12 to investigate and determine whether the violation has occurred or is occurring and 13 may issue orders prohibiting such violation and requiring compliance with the Code 14 and the provisions of this Part or Part XIV-B of this Chapter. 15 B. All costs incurred by the commission, including reasonable attorney fees, 16 may be borne by the person or licensee who has been found in violation of the 17 provisions of the Code, or any provision of this Part or Part XIV-B of this Chapter, 18 or any rule or regulation adopted and promulgated by the commission in accordance 19 with the Administrative Procedure Act. 20 §911.38. Suspension or revocation of licenses for violation 21 After prior notice and hearing, the commission may suspend or revoke the 22 license of any manufactured or modular home licensee licensed under pursuant to the 23 provisions of this Part or Part XIV-B of this Chapter for violations of the Code or the 24 manufactured or modular home provisions of this Part or Part XIV-B of this Chapter. 25 The notice, hearing, and actions under as prescribed in this Section shall be governed 26 by the provisions of Chapter 13 of Title 49 of the Louisiana Revised Statutes of 27 1950, and particularly R.S. 49:961(C) relative to emergency action. 28 §911.39. Penalties for violations 29 A. Whoever is found guilty of violating the Code or any manufactured or 30 modular housing provision of this Part, Part XIV-B of this Chapter, any rule, or any Page 7 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 471 ENROLLED 1 regulation or final order issued thereunder shall be liable to the state of Louisiana 2 through the commission for a civil penalty not in excess of one two thousand five 3 hundred dollars for each violation. If the commission determines a violation was 4 intentional or the violator is a habitual offender, the commission may double the civil 5 penalty up to five thousand dollars for each violation. Each violation shall constitute 6 constitutes a separate violation with respect to each manufactured or modular home, 7 or with respect to each failure or refusal to allow or perform an act required thereby, 8 except that the maximum civil penalty may shall not exceed one million dollars for 9 any related series of violations occurring within one year from the date of the first 10 violation. 11 B. Any individual or director, officer, or agent of a corporation who 12 knowingly and willingly violates any provision of the Code or of this Part, Part XIV- 13 B of this Chapter, or any applicable rule or regulation issued thereunder in a manner 14 which threatens the health and safety of any purchaser shall be fined not more than 15 one thousand dollars or imprisoned not more than one year, or both. 16 * * * 17 §911.41. Supremacy of the Part 18 Notwithstanding any provision of law to the contrary, the codes and standards 19 referenced in R.S. 51:911.21 et seq. and R.S. 51:912.21 et seq. and those adopted by 20 the commission shall be the only construction and installation standards used for 21 manufactured or modular housing in Louisiana, and these standards shall preempt 22 all local standards as they relate to the construction and installation of manufactured 23 housing and manufactured or modular homes in Louisiana. 24 §911.43. Maintenance of records; reports required 25 Each manufactured home licensee shall establish and maintain such records, 26 make such reports, and provide such information as the commission may reasonably 27 require in order to be able to determine whether such licensee has acted or is acting 28 in compliance with the Code and the manufactured or modular housing provisions 29 of this Part, Part XIV-B of this Chapter, or any rule or regulation adopted by the 30 commission. Upon request of the commission, each manufacturer, distributor, and Page 8 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 471 ENROLLED 1 dealer licensee shall permit the commission or its representative to inspect 2 appropriate books, papers, records, and documents relevant to determining whether 3 the licensee has acted or is acting in compliance with the provisions of this Part, Part 4 XIV-B of this Chapter, or any rule, as well as any regulation or order issued 5 thereunder. 6 §911.46. Down payments, sale of manufactured housing 7 It is unlawful for a retailer or developer to set forth in any retail installment 8 sales contract, chattel mortgage, or security agreement any down payment unless all 9 of the down payment has actually been received by the retailer or developer at the 10 time of execution of such document. If any part of the down payment is represented 11 by a loan, trade-in, or any consideration other than cash, this fact shall be expressly 12 set forth on the retail installment sales contract, chattel mortgage, or security 13 agreement. No amount of the cash down payment shall be from any rebate or other 14 consideration received by or to be given to the consumer from the retailer or 15 developer, or his agents respective agent. 16 * * * 17 §912.3. Definitions 18 For purposes of this Part, the following words, phrases, and terms shall be are 19 defined and construed as follows: 20 * * * 21 (7) "Manufactured home" or "manufactured housing" means a factory-built, 22 residential dwelling unit constructed to standards and codes, as promulgated by the 23 United States Department of Housing and Urban Development, under the National 24 Manufactured Housing Construction and Safety Standards Act of 1974, 42 U.S.C. 25 5401 et seq., as amended. Further, the terms "manufactured home" and 26 "manufactured housing" may be used interchangeably and apply to structures bearing 27 the permanently affixed seal of the United States Department of Housing and Urban 28 Development or to factory-built, residential dwellings that are mounted on a chassis. 29 * * * Page 9 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 471 ENROLLED 1 §912.5. Required notice 2 A. Before undertaking any repair himself or instituting any action for breach 3 of warranty, the owner shall give the commission written notice by filling out the 4 consumer complaint form provided by the commission and submitting it, by 5 registered or certified mail, within one year after knowledge of the defect, advising 6 the commission of all defects. The commission shall then have the home inspected 7 and a determination made on all defects listed by the owner. Thereafter, the 8 commission shall give the appropriate builder a reasonable opportunity to comply 9 with the provisions of this Part. Once the repairs are made, the commission shall 10 have the home reinspected to determine if the repairs have been made in compliance 11 with the building standards. 12 * * * 13 PART XIV-B. MINIMUM STANDARDS F OR INSTALLATION 14 OF MANUFACTURED AND MODUL AR HOMES AND 15 TRANSPORTATION REQUIREMENTS 16 §912.21. Definitions 17 For the purposes of this Part, the following words shall have the following 18 meanings: 19 (1) "Frame tie" or "tie down" means any device approved and used for the 20 purpose of securing manufactured or modular homes to ground anchors in order to 21 resist wind forces. 22 (2) "Ground anchor" means any device approved and used for the purpose 23 of securing manufactured or modular homes to the ground in order to resist wind 24 forces. 25 * * * 26 (4) "Installation permit" means a permit issued by the commission to a 27 licensed installer or the homeowner who must shall certify that the home is in 28 compliance with this Part. 29 * * * Page 10 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 471 ENROLLED 1 (6) "Installer" means a person licensed by the commission to install a 2 manufactured or modular home. 3 * * * 4 (9) "Modular home" and "modular housing" mean a factory-built, residential 5 dwelling unit built to the International Residential Code as adopted by the Louisiana 6 State Uniform Construction Code Council. 7 (9)(10) "Over-roof tie" means a certain device approved by the manufactured 8 homes manufacturer and used for the purpose of securing the manufactured homes 9 systems to ground anchors in order to resist wind forces. Ties may be installed only 10 under roof material. 11 (10)(11) "Setup" or "installation" means the operations performed at the 12 occupancy site which render manufactured and modular homes fit for habitation. 13 Such operations include but are not limited to transporting, positioning, blocking, 14 leveling, supporting, tying down, making minor adjustments and trim out, and 15 assembling multiple or expandable units in the final construction process. 16 (11)(12) "Stabilizer device" means an approved device or method that is 17 used to resist lateral movement of manufactured homes and anchors. 18 (12)(13) "Transporter" means an individual who transports a manufactured 19 or modular home to the site of installation but does not perform the any blocking or 20 anchoring of the home, except a transporter is allowed to put blocks under the hitch 21 on the tongue of the frame. 22 §912.22. Installation standards for manufactured and modular homes 23 All manufactured and modular homes shall be installed to meet the following 24 standards, unless otherwise specified in this Part: 25 (1) Installation standards for the setup of new or used manufactured homes 26 shall be in compliance with the manufacturer's installation instructions, if available. 27 Installation for the setup of new or used modular homes shall be in compliance with 28 the International Residential Code enforced by the local authority having 29 jurisdiction. 30 * * * Page 11 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 471 ENROLLED 1 (7) Piers or load-bearing supports or devices shall be installed and 2 constructed to evenly distribute the loads. Steel piers with mechanical adjustments 3 shall be securely attached to the frame of all manufactured homes and mobile homes. 4 Manufactured load-bearing supports or devices shall be listed and approved for the 5 use intended, or piers shall be constructed as outlined in this Part. Concrete products 6 shall comply with the minimum dimensional and structural requirements for load- 7 bearing. Solid and cell concrete blocks shall be to the standard specification for 8 load-bearing concrete masonry units, ASTM C-90, 1993 Edition. Poured concrete 9 shall be a minimum of FCL = 2500 PSI. All plastic products shall be conditioned 10 at ASTM D 618-61, reapproved 1990, standard practice for conditioning plastics and 11 electrical insulating materials for testing. Plastics shall be tested to the ASTM D 12 790-92 standard test methods for flexural properties or unreinforced and reinforced 13 plastics and electrical insulating materials, ASTM D 732-85 standard test method for 14 shear strength or plastics by punch tool, and ASTM G 53-88 standard practice for 15 operating light and water exposure apparatus for exposure of nonmetallic materials. 16 * * * 17 §912.25. Installation standards for used manufactured homes in hurricane zones 18 When the manufacturer's printed setup requirements are not available for the 19 applicable wind zone, the following guidelines are to be used: 20 * * * 21 (2) Diagonal Longitudinal ties only are required at each end of each unit. 22 The minimum number of ties at a minimum angle of forty-five degrees from vertical 23 is three each for Zone II and four each for Zone III. 24 (3) All designated tie points on the perimeter side walls shall be equipped 25 with vertical and diagonal ties with stabilizer devices. When tie points are not 26 designated on the side walls, vertical and diagonal ties with stabilizer devices shall 27 be spaced a maximum of twelve ten feet for Zone I, eight feet for Zone II, and six 28 feet six inches for Zone III. 29 * * * Page 12 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 471 ENROLLED 1 §912.26. Local installation standards preempted 2 The manufactured and modular home installation standards provided for in 3 this Part shall preempt all local installation standards. 4 §912.27. Licensure of installers and transporters; adoption of rules; compliance with 5 installation instructions; disposition of fees 6 A.(1) The commission shall, by rule adopted in accordance with the 7 Administrative Procedure Act, provide for the licensure of installers and transporters 8 of manufactured and modular homes and the implementation and collection of an 9 annual license fee and an installation permit sticker fee. The installer's and 10 transporter's license fee shall be one hundred twenty-five dollars per license, and the 11 installation permit sticker fee shall be twenty dollars. Further, a licensed installer 12 shall be allowed to perform the functions of a transporter without having to obtain 13 that license. 14 * * * 15 B. It shall be unlawful for any person, other than the homeowner or a 16 licensed installer, to perform an installation of a manufactured or modular home, 17 whether or not such person receives compensation for such action. For the purposes 18 of this Subsection, community owners or park operators of manufactured or modular 19 homes shall not be considered homeowners if the home in question is or will be 20 leased at any time. 21 C. Any installer or homeowner installing a manufactured or modular home 22 in this state shall first obtain an installation permit sticker from the commission 23 which shall be affixed to the side of the home at the point where electrical power is 24 connected to the home. All installation permit stickers shall be affixed within ten 25 days of delivery of the manufactured or modular home, unless extenuating 26 circumstances are shown. 27 D. Any installation of a manufactured or modular home in this state shall be 28 performed in strict compliance with this Part. 29 * * * Page 13 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 471 ENROLLED 1 §912.28. Violations; penalties 2 A. Any installer, transporter, or other person who performs any service under 3 work covered as described in this Part without the appropriate license or who installs 4 a manufactured or modular home in a manner contrary to the requirements of this 5 Part shall be in violation of the provisions of this Part. All such violators shall be 6 subject to the penalty of revocation or suspension of their license or a civil fine of 7 up to one two thousand five hundred dollars, or both, for each violation. If the 8 commission determines a violation was intentional or the violator is a habitual 9 offender, then the commission may double the civil penalty up to five thousand 10 dollars for each violation. Violators shall also be subject to any measures prescribed 11 by any other applicable rule, regulation, or law. 12 * * * 13 §912.52. Louisiana state administrative agent 14 * * * 15 B. The power and authority of the agent shall include but not be limited to 16 the following: 17 * * * 18 (5) Providing oversight as prescribed by law of remedial actions carried out 19 by manufacturers and a manufacturer's handling of consumer complaints as to plants 20 located within the state. 21 * * * 22 Section 2. R.S. 51:911.24(K), 911.26(A)(3), and (J), and 911.28(A)(10) are hereby 23 repealed in their entirety. SPEAKER OF THE HOUSE OF REPRESENTATIVES PRESIDENT OF THE SENATE GOVERNOR OF THE STATE OF LOUISIANA APPROVED: Page 14 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions.