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s 5042. Insufficient Checks.
Where any check offered in payment for fees or charges pursuant to this chapter is returned without payment for any reason, a charge of ten dollars ($10.00) shall be imposed and shall become a part of the total obligation in addition to other consequences permitted by law and this chapter.
Note: Authority cited: Section 18015, Health and Safety Code and Section 6157, Government Code. Reference: Section 18060, Health and Safety Code.
s 5043. Dealer Report of Sale Filing Fee.
A Report of Sale Filing Fee specified by Section 5040 shall be paid to the Department with each dealer's Report Sale filed pursuant to Health and Safety Code Section 18080.5.
Note: Authority cited: Section 18015, Health and Safety Code. Reference: Section 18031, Health and Safety Code.
s 5050. General Advertising.
(a) Any advertised statements, representations, or offers made in connection with the sale, attempted sale, listing for sale, or attempted listing for sale of any manufactured home, mobilehome or commercial coach shall be clear, based on facts, and subject to the requirements of law and this chapter.
(b) Any advertisement by a dealer of a specific manufactured home, mobilehome or commercial coach shall include the dealer's name, its manufacturer or model name, year model and at least one of the following items:
(1) The serial number assigned by its manufacturer, or
(2) The federal label number, or
(3) The Department insignia number.
Year models are no longer current when ensuing year models are advertised or made available for purchase at retail by the manufacturers.
(c) If a license advertises any manufactured home, mobilehome or commercial coach used in its business as a lot model, display unit or office, the licensee shall clearly disclose the previous use made thereof.
(d) A licensee shall advertise any manufactured home, mobilehome or commercial coach which has been previously sold at retail, registered or otherwise required to be registered expressly as a used manufactured home, mobilehome or commercial coach.
Note: Authority cited: Section 18015, Health and Safety Code. Reference: Sections 18061, 18062 and 18062.2, Health and Safety Code.
s 5051. Manufactured Home, Mobilehome or Commercial Coach Condition and Physical Size.
(a) Statements of the condition of a manufactured home, mobilehome or commercial coach must accurately reflect its known condition, and pictures thereof must accurately depict its overall appearance.
(b) When advertising the size of a manufactured home, mobilehome or commercial coach, the size shall not include measurements of projections beyond the exterior wall such as roof overhangs, hitches, drawbars, couplings, bay windows or similar projections.
Note: Authority cited: Section 18015, Health and Safety Code. Reference: Section 18061, Health and Safety Code.
s 5052. Manufactured Home, Mobilehome or Commercial Coach Availability.
(a) No dealer shall advertise a specific new manufactured home, mobilehome or commercial coach or a class thereof for sale, unless it is in the dealer's possession, or is available to the dealer directly from the manufacturer or distributor thereof under an enforceable contractual right of delivery or retail authorization on file with the department between the advertising dealer and the manufacturer or distributor.
(b) A dealer must sell advertised manufactured homes, mobilehomes or commercial coaches at or below the advertised price irrespective of whether or not the advertised price has been communicated to the purchaser.
(c) Dealers displaying models which contain features, items or materials no longer available from the manufacturer, shall disclose such facts to prospective purchasers of homes whose order is based upon the display model.
Note: Authority cited: Section 18015, Health and Safety Code. Reference: Sections 18061 and 18062.2, Health and Safety Code.
s 5053. Free Merchandise, Savings Claims and Rebates.
(a) No licensee shall advertise or represent any merchandise, services, accessories or products as "free" with the purchase of a manufactured home, mobilehome or commercial coach if the manufactured home, mobilehome or commercial coach can be purchased from the advertiser at a lesser price without such "free" merchandise, services, accessories or products. Advertisements for "free" merchandise, services, accessories or products offered in consideration of such things as "visit our showroom" shall clearly and completely describe the conditions under which the "free" merchandise is offered.
(b) Dealers may advertise savings claims or discount offers on new manufactured homes, mobilehomes or commercial coaches provided the advertisement shows the difference between the dealer's advertised selling price for cash and the manufacturer's suggested retail price, except sales tax, registration fees, and finance charges. Such advertisements must include a specific reference by words, figures, or both, to the manufacturer's suggested retail price.
(c) Any advertisements with reference to "rebates" on manufactured homes, mobilehomes or commercial coaches shall clearly state the amount and source of the rebate. No dealer shall advertise or offer a rebate with the purchase of a manufactured home, mobilehome or commercial coach if the advertised manufactured home, mobilehome or commercial coach can normally be purchased from the advertiser at a lesser price without such rebated.
Note: Authority cited: Section 18015, Health and Safety Code. Reference: Sections 18061, 18062 and 18062.2, Health and Safety Code.
s 5054. Dealer Added Charges.
A dealer may not identify a separate charge or charges for services performed on a manufactured home, mobilehome or commercial coach prior to delivery to the extent the dealer is or will be reimbursed for such expenditures by another party.
Note: Authority cited: Section 18015, Health and Safety Code. Reference: Sections 18061, 18062 and 18062.2, Health and Safety Code.
s 5055. Financing.
(a) Credit terms advertised shall include all charges required to place the transaction on a time payment basis and must state any rates in compliance with Regulation Z. Advertisements of terms which include escalated payments, balloon payments, or pick-up payments shall clearly identify those payments as to their amounts and times due and must state any rates in compliance with Regulation Z.
(b) Licensees shall not advertise statements such as "no finance charge" unless there is no charge or time-price differential whatsoever for placing the transaction on a time payment basis.
(c) Licensees shall not make claims such as "everybody financed," "no credit rejected," or words of a similar nature unless the licensee is willing to extend such credit to each and every individual under any and all circumstances.
(d) If qualifying words such as "on credit approval," are used in conjunction with advertised credit terms, licensees shall clearly state such qualifying words, unabbreviated, in type size no less than 1/2 of the type size of the credit terms, and in close proximity thereto.
Note: Authority cited: Section 18015, Health and Safety Code. Reference: Sections 18036.5, 18061 and 18062, Health and Safety Code.
s 5056. Down Payment and Deposit.
(a) A licensee shall not advertise the amount of down payment and/or deposit required to purchase a manufactured home, mobilehome or commercial coach unless it is clearly identified as being a down payment or deposit in type size not less than 1/2 the type size in which the amount of the down payment or deposit is stated.
(b) A licensee shall not advertise the statements "no down payment," "no deposit" or similar terms unless the dealer will sell and deliver the advertised manufactured home, mobilehome or commercial coach to any purchaser without prior payment of any kind or trade-in.
(c) If an advertisement quotes the amount of a periodic payment, the advertisement shall also quote the amount of the down payment or deposit required to qualify for the amount of the quoted periodic payment.
(d) A licensee shall not advertise the amount of a down payment or deposit unless it represents the total payment, including any payment for sales tax, permits, titling or registration, to be required of the purchaser prior to delivery of the manufactured home, mobilehome or commercial coach.
Note: Authority cited: Section 18015, Health and Safety Code: Reference: Sections 18061 and 18062.2, Health and Safety Code.
s 5057. Representations.
A dealer or salesperson shall not do any of the following:
(a) Knowingly make a material misrepresentation to the owner or seller of a manufactured home, mobilehome or commercial coach of its likely market value, either for the purpose of securing a listing or for the purpose of acquiring an interest in the manufactured home, mobilehome or commercial coach for the licensee's own account.
(b) State or imply to an owner or seller of a manufactured home, mobilehome or commercial coach during listing negotiations that the licensee is precluded by law, regulation or by the rules of any group or organization of licensees, from charging less than the commission or fee quoted to the owner by the licensee.
(c) Fail in a transaction for the sale, lease or exchange of a manufactured home, mobilehome or commercial coach to disclose to a prospective purchaser or lessee facts known to the licensee materially affecting the value or desirability of the manufactured home, mobilehome or commercial coach, when the licensee has reason to believe that such facts are not known to, nor readily observable by a prospective purchaser or lessee.
(d) When seeking a listing, represent to an owner or seller of the manufactured home, a mobilehome or commercial coach that the soliciting licensee has obtained a bona fide written offer to purchase the manufactured home, mobilehome or commercial coach, unless at the time of representation the licensee has possession of a bona fide written offer to purchase.
(e) Fail to present or cause to be presented to the registered owner or seller of the manufactured home, mobilehome or commercial coach any offer to purchase or lease received prior to the preparation of the purchase documents or rental agreement.
(f) Present competing offers to the seller to purchase the manufactured home, mobilehome or commercial coach in such a manner as to induce the owner or seller to accept the offer which will provide the greatest compensation to the dealer, without regard to the benefits, advantages, and/or disadvantages to the owner or seller.
(g) Knowingly underestimate the probable closing costs in a transaction in a communication to the prospective purchaser or seller of a manufactured home, mobilehome or commercial coach in order to induce that person to make or to accept an offer to purchase the manufactured home, mobilehome or commercial coach.
(h) Fail to explain to the parties or prospective parties to a transaction the meaning and probable significance of a contingency in an offer or contract that the licensee knows or reasonably believes may affect the closing date of the transaction, or the timing of the vacating of the manufactured home, mobilehome or commercial coach by the seller or its occupancy by the purchaser.
(i) Knowingly make a false or misleading representation to the seller or purchaser of a manufactured home, mobilehome or commercial coach as to the form, amount and/or treatment of a deposit toward purchase.
(j) Refund all or part of an offeror's purchase money deposit in a manufactured home, mobilehome or commercial coach sales transaction after the registered owner has accepted the offer to purchase, unless the licensee has the express permission of the registered owner to make the refund.
(k) Fail to disclose the registered owner of a manufactured home, mobilehome or commercial coach the nature and extent of any direct or indirect ownership interest or security interest that the licensee expects to acquire as a result of the sale. The prospective purchase of the manufactured home, mobilehome or commercial coach by a person related to the licensee by blood or marriage, by an entity in which the licensee has an ownership interest, or by any other person with whom the licensee occupies a special relationship shall be disclosed.
(l) Represent, without a reasonable basis, the nature and/or condition of the interior or exterior features or accessories of a manufactured home, mobilehome or commercial coach when soliciting an offer.
(m) Represent, without a reasonable basis, in the case of the manufactured home or mobilehome located in a mobilehome park, any characteristics of the mobilehome park or its operation, when soliciting an offer.
(n) Fail to respond to reasonable inquiries of a seller as to the status or extent of efforts to market the manufactured home, mobilehome or commercial coach listed exclusively with the licensee.
(o) Fail to disclose to a potential purchaser when discussing the purchase of a manufactured home, mobilehome or commercial coach, the existence of any direct or indirect ownership interest or security interest of the licensee in the manufactured home, mobilehome or commercial coach.
(p) Fail to disclose to a prospective purchaser of a used mobilehome that it may become subject to the age limitations as specified in Section 798.73 of the Civil Code within 3 years from the date of sale to the prospective purchaser.
Note: Authority cited: Section 18015, Health and Safety Code. Reference: Sections 18061, 18062 and 18062.2, Health and Safety Code; Section 798.73, Civil Code.
s 5060. Escrow Required.
(a) Concurrent with a dealer's receipt of any cash or cash equivalent from a purchaser at any time prior to delivery of a new or used manufactured home or mobilehome subject to registration, the dealer shall execute a mutually-endorsed receipt for deposit and purchase document. Within three working days thereafter, the dealer must establish with an escrow agent an escrow account into which all cash or cash equivalents shall be deposited. The escrow shall not be established with an escrow agent or agency in which the dealer has more than 5 percent ownership interest.
(b) Upon the purchaser's signing of the receipt for deposit and purchase document, the dealer shall provide the purchaser with a copy of each document, which must be mutually-endorsed.
(c) Upon establishment of the escrow account, the dealer shall provide the escrow agent, in writing, with the information required for the preparation of escrow instructions.
(d) These regulations do not imply, nor shall they be interpreted to require, that a recorded certificate of title or junior lienholder registration card(s) be delivered to the purchaser through escrow as a condition of escrow. These regulations shall, however, provide that a release of any prior rights, title, or interest in a manufactured home or mobilehome being purchased or traded in as payment toward the manufactured home or mobilehome being purchased, held by the registered owner(s), legal owner, flooring lender shown on or in possession of a manufacturer's certificate of origin and junior lienholder(s) be obtained as a condition of escrow. In the event that the dealer owns the manufactured home or mobilehome and it has no liens, the dealer shall deliver into escrow either the certificate(s) of title or the manufacturer's certificate of origin, whichever is available.
Note: Authority cited: Section 18015, Health and Safety Code. Reference: Sections 18035 and 18035.1, Health and Safety Code.
s 5061. Escrow Instructions.
From the information provided by the dealer, the escrow agent shall prepare escrow instructions and any amendments thereto for signing by both the dealer and purchaser. These escrow instructions may be signed in counterpart. Both the dealer and the purchaser shall receive copies of the signed escrow instructions and any mutually agreed amendments, with the originals or executed copies maintained by the escrow agent. The escrow instructions shall contain, but are not limited to, the following:
(a) The names and addresses of both the dealer and the purchaser;
(b) The names and addresses of the registered owner(s), legal owner of, flooring lender, and any junior lienholder(s), of the manufactured home or mobilehome.
(c) The name, address and telephone number of the escrow agent;
(d) A description of the manufactured home or mobilehome sold to the purchaser by the dealer which shall include, but not be limited to: the manufacturer name; model name, if available; size (excluding any hitch or towbar); model year, and a statement that prior to the close of escrow, the dealer shall provide the serial numbers of the manufactured home or mobilehome and the control number(s) of either the California Department of Housing and Community Development insignia(s) or the federal label(s) affixed to the manufactured home or mobilehome, which indicate compliance with applicable standards, in order to complete the description of the manufactured home or mobilehome.
(e) Identification of the amounts paid or to be paid as a deposit, downpayment and/or balance due prior to closing, total price of the manufactured home or mobilehome and all accessories or services to be provided by the dealer as part of the sale, and any taxes, service fees, charges or other fees. The amounts disclosed by the dealer shall be consistent with the amounts set forth in the purchase document and receipt for deposit.
(f) A general description of and designation of the cash value of each accessory and any installation thereof included in the purchase.
Note: This requirement does not apply when the accessories have been installed prior to the preparation of purchase documents.
(g) The specific address or location where the purchaser will accept delivery of the manufactured home or mobilehome or any accessory thereto included in the purchase price.
(h) A statement of the conditions under which the purchaser will receive delivery of the manufactured home or mobilehome and any accessory thereto.
(i) A statement that prior to the close of escrow, the dealer shall secure and deliver into escrow signed and acknowledged release(s) of any rights, title or interest in the manufactured home or mobilehome being purchased, executed by the registered owner(s), legal owner, flooring lender and any junior lienholder(s). Any such release shall be conditioned upon the receipt of disbursement by the party executing the release directly from the escrow account of the amount set forth in such release. If the purchaser(s) is/are assuming an indebtedness as evidenced by an existing lien, the dealer shall deliver into escrow documents executed by the legal owner and/or junior lienholder(s) consenting to the assumption by the buyer.
(j) A statement that prior to the close of escrow, the dealer shall secure and deliver into escrow a signed and acknowledged release of any rights, title or interest in the manufactured home, mobilehome or personal real property being sold or traded in as payment toward the manufactured home or mobilehome being purchased, from the registered owner(s), legal owner and any junior lienholder(s). Any such release shall be conditioned upon the receipt of disbursement directly from the escrow account of the amount set forth in such release. If the dealer is assuming an existing lien, he or she shall deliver into escrow documents executed by the legal owner and/or junior lienholder(s) consenting to the assumption by the dealer.
(k) A statement that prior to the close of escrow, when the manufactured home or mobilehome is located in a mobilehome park at the time of sale and is to remain in the park, a statement signed by the purchaser shall be delivered into escrow, indicating that the purchaser has read the rules and regulations of the park, and entered into the park's rental agreement. A copy of a fully executed rental agreement signed by the purchaser may be substituted for the purchaser's agreement.
(l) When the manufactured home or mobilehome being either purchased or traded in as payment toward the manufactured home or mobilehome being purchased is subject to local property taxation, the escrow instructions may provide for the proration of said taxes.
(m) Any documentation required for disbursement pursuant to Section 5062.
(n) In the event a purchaser intends to arrange for third party financing without the assistance of the dealer, a statement that escrow shall terminate 30 days from the date escrow was opened, and that all cash or cash equivalent, less escrow fees, will be returned to the purchaser, unless the purchaser delivers into escrow written confirmation from a lender that financing has been approved.
(o) In the event of a conditional purchase document, a statement that if the contract is not executed by the date escrow is to close, escrow shall terminate and all cash or cash equivalent paid to the dealer be returned to the purchaser.
(p) The date agreed upon, in writing, by the purchaser and dealer that escrow is to close.
Note: Authority cited: Section 18015, Health and Safety Code. Reference: Sections 18035, 18035.1, 18035.5 and 18036, Health and Safety Code.
s 5062. Disbursement of Escrow Funds.
In addition to the requirements of Section 18035 of the Health and Safety Code, the escrow agent shall disburse the amounts specified for the manufactured home or mobilehome and accessories only as follows:
(a) When the mobilehome is to be delivered to the site described in the escrow instructions, to be installed, and pass inspection pursuant to Section 18613 of the Health and Safety Code, the escrow instructions shall so state and shall require the dealer to deliver into escrow the following documentation to evidence delivery:
(1) A copy of either the statement of installation or the certificate of occupancy issued by the public agency performing the installation inspection; and
(2) A statement signed by the dealer indicating that the manufactured home or mobilehome has been delivered to the purchaser or that delivery has been offered to the purchaser in accordance with the agreement of the principals and that the purchaser is free to occupy the manufactured home or mobilehome to the exclusion of the dealer.
(b) When the manufactured home or mobilehome is to be delivered to the purchaser at a location specified in the escrow instructions and the purchaser will, at his or her own convenience either actually and physically perform the installation of the manufactured home or mobilehome and accessories, or be responsible for such installation, the escrow instructions shall so state and shall contain a statement indicating that either the purchaser has agreed to actually and physically perform the installation of the manufactured home or mobilehome and accessories or has agreed to be responsible for such installation and understands that escrow may close and funds be disbursed upon delivery of the manufactured home or mobilehome to the purchaser at the location specified in the escrow instructions. The documentation required to evidence such delivery shall be a statement signed by both the dealer and the purchaser indicating that the manufactured home or mobilehome has been delivered to the purchaser at the location specified in the escrow instructions.
(c) When the manufactured home or mobilehome is not subject to installation inspection pursuant to Section 18613 of the Health and Safety Code, the escrow instructions shall so state and shall require the following documentation to be delivered into escrow to evidence delivery: a statement signed by both the dealer and the purchaser indicating that delivery has been received or that delivery has been offered to the purchaser in accordance with the agreement of the principals and that the purchaser is free to occupy the manufactured home or mobilehome to the exclusion of the dealer.
(d) The escrow agent can disburse the amount specified for each accessory specified in Section 5061(g) of this article only upon receipt of written notice signed by the dealer that the accessory has been actually installed or received by the purchaser in the event that installation is not required under the terms of the purchase document.
(e) The escrow agent can disburse the cash or cash equivalent in escrow to the purchaser in the event that the purchaser was unable to obtain third party financing within 30 days of the escrow opening or the conditional purchase document was not executed by the date escrow was to have been closed, as specified in Sections 5061(n) and (o), respectively.
Note: Authority cited: Section 18015, Health and Safety Code. Reference: Sections 18035, 18035.5 and 18036, Health and Safety Code.
s 5063. Waivers.
No agreement shall contain any provision by which the purchaser waives any rights to which the purchaser would be otherwise entitled under this article or any other provision of Health and Safety Code, Division 13, Part 2, Chapter 5. Waivers cannot result from practices which include, but are not limited to, separate contracts with the selling dealer for installation of the manufactured home or mobilehome, separate contracts with the selling dealer for accessories to the manufactured home or mobilehome, substitution by the dealer of the cash and/or equivalents received as whole or partial payment for the manufactured home or mobilehome or accessory thereto, agreements that liquidated damages be taken out of escrow, and granting of power of attorney, attorney in fact, or agency by the purchaser to the dealer for any purpose other than registration. Such waivers shall be void and unenforceable.
Note: Authority cited: Section 18015, Health and Safety Code. Reference: Section 18035, Health and Safety Code.
s 5064. Records Required.
Escrow agents shall maintain records of their handlings of escrows which shall be subject to audit by authorized representatives of the department or any other appropriate regulatory agency. Such records shall include a copy of the escrow instructions, and the dates and disbursements of cash and/or cash equivalents. Each escrow transaction processed by the escrow agent shall be assigned an escrow number by the escrow agent and this number shall be displayed on all documents relating to that escrow.
Note: Authority cited: Section 18015, Health and Safety Code. Reference: Sections 18035 and 18035.1, Health and Safety Code.
s 5070. Policy Regarding Disclosure.
(a) The department shall provide information regarding license status, compliance, violations substantiated by the department, and disciplinary action taken against any licensee to any person requesting such information.
(b) The department may set reasonable limits upon the number of requests for information from any person.
(c) The appropriate fee for search and any reproductive costs pursuant to Section 5040, may be charged for any request for information.
(d) The department may prepare and disclose statistical data of a summary nature that does not identify individual licensees, which the department considers such data informative to consumers.
Note: Authority cited: Section 18015, Health and Safety Code. Reference: Sections 18045 and 18050, Health and Safety Code; Sections 6253, 6254, 6256 and 6257, Government Code.
s 5071. Disclosure of Information Regarding License Status.
(a) Upon receipt of written request, the department may disclose to any member of the public, the following license status information which is on record with the department:
(1) Licensee's name, including all fictitious or business names;
(2) License number;
(3) Business address and telephone number;
(4) Names of all principals and offices held;
(5) Date of original licensure;
(6) Date such license expires, expired, lapsed or was terminated and, if applicable, the reason for termination;
(7) If the licensee is a salesperson, the name of the employing dealer and any information about the employer as listed above.
Note: Authority cited: Section 18015, Health and Safety Code. Reference: Section 18050, Health and Safety Code; Sections 6253, 6254, 6256 and 6257, Government Code.
s 5072. Disclosure of Information Regarding Instances of Noncompliance and Complaints.
(a) Upon receipt of written request, the department may disclose to any member of the public the following information with respect to the preceding three calendar years:
(1) The number and general nature of instances of noncompliance or complaints received or discovered by the department which warranted issuance of a warning letter to the licensee;
(2) The number and general nature of complaints which, upon review by the department, establish a prima facie case of an instance of noncompliance, other than warranty complaints;
(3) The number and general nature of instances of noncompliance or complaints found to warrant administrative disciplinary action against the licensee, as evidenced by the filing of an Accusation or judicial action by the department.
(b) If an instance of noncompliance or complaint which was initially determined by the department to be substantiated is later found by Administrative Law Judge or a court of law not to constitute a violation of law, and that determination is not successfully appealed by an interested party, it shall be deleted from the complaint information.
Note: Authority cited: Section 18015, Health and Safety Code. Reference: Sections 18020, 18021.5 and 18050, Health and Safety Code; Sections 6253, 6254, 6256 and 6257, Government Code.
s 5073. Disclosure of Information Regarding Disciplinary Actions.
The department may disclose the following disciplinary history information upon request:
(a) Whether any current licensee or principal thereof has ever been disciplined and, if so, when and for what offenses; and
(b) Whether any current licensee or principal thereof has been named in any disciplinary action and if so, the disposition of such action.
Note: Authority cited: Section 18015, Health and Safety Code. Reference: Sections 18020, 18021.5 and 18050, Health and Safety Code; Sections 6253, 6254, 6256 and 6257, Government Code.
s 5080. Enforcement.
The department shall administer and enforce all of the provisions of this chapter. Any officer, agent, or employee of the department assigned to enforcement is authorized:
(a) To enter at reasonable times and without advance notice any premises where manufactured homes, mobilehomes or commercial coaches are manufactured, sold, or offered for sale, rent, or lease.
(b) To examine and copy any records, documentary evidence or other information necessary to carry out the requirements of law and this chapter.
(c) To require, by general or special orders or reports, any person subject to licensing or regulation to file, in such form as the department may prescribe, reports or answers in writing to specific questions relating to any occupational licensing function of the department.
(d) To take such other action permitted by law to carry out the requirements of law and this chapter.
(e) To pick up for inspection Report of Sale books.
(f) To post a Prohibited Sales Notice on a manufactured home, mobilehome or commercial coach, as provided in this chapter.
(g) To post a Notice of Suspension at a licensee's place of business as provided in this chapter.
Note: Authority cited: Section 18015, Health and Safety Code. Reference: Sections 18020, 18022, 18023 and 18045.5, Health and Safety Code.
s 5081. Complaint and Monitoring Investigation.
(a) Upon receipt of a complaint indicating the possible existence of a violation of law or this chapter, including a violation of Section 1797, et seq. of the Civil Code, the department may investigate the complaint and, at the time and in the manner permitted by law, notify each licensee or former licensee assumed responsible for the violations. In addition, or in the alternative, the department may investigate and take any other actions permitted by law.
(b) The recipient of such a notice shall, as soon as possible, but not later than 20 days after notification, unless otherwise specified by the department, take appropriate steps, including inspections or investigations, to determine the extent of its responsibility. Upon determining its responsibility, the recipient of such a notice shall:
(1) notify the department in writing of the action proposed to correct the violation and/or respond to the complainant, and
(2) take the action communicated to the department within 40 days of the original notification of complaint, unless otherwise specified by the department.
(c) Upon written request, the department may, at its discretion, grant an extension of time for correction of violations.
(d) The department may make an independent investigation and/or may institute appropriate legal and/or administrative action as necessary to secure compliance with law if the person notified of the complaint fails to take or complete appropriate action within the specified time, or at any other time deemed necessary and appropriate by the department.
(e) To the extent that the department deems it necessary to investigate, inspect, or reinspect to ensure compliance with law, the person responsible for taking the corrective action shall submit fees pursuant to Section 5040 within 15 days after billing by the department. The person or entity liable for such fees may appeal that determination in writing to the director of the department within 10 days after such billing. Failure to pay the fees shall be grounds for administrative action by the department.
(f) No license may be renewed if an outstanding fee has not been paid.
Note: Authority cited: Section 18015, Health and Safety Code. Reference: Sections 18020, 18021.5, 18045.5 and 18058 and 18061.5, Health and Safety Code.
s 5082. Notices of Suspension, Revocation, or Cancellation.
(a) If a license is suspended or revoked as a result of actions taken pursuant to Health and Safety Code Sections 18021.5, 18064 or 18064.5, or conditions exist providing for the automatic cancellation of the license pursuant to Health and Safety Code Section 18065, the department may post two (2) notices of suspension, revocation or cancellation provided by the department in places conspicuous to the public at each affected place of business and any branch of the licensee during the period of suspension, revocation or cancellation.
(b) Said notices shall be 24 " wide by 14 " high and shall be in substantially the following form:
NOTICE OF SUSPENSION THE DEALERS LICENSE ISSUED FOR THESE PREMISES HAS BEEN
SUSPENDED FROM _______ THROUGH ________ BY ORDER OF THE DEPARTMENT OF HOUSING
AND COMMUNITY DEVELOPMENT FOR VIOLATION OF STATE LAWS GOVERNING MANUFACTURED
HOUSING SALES
(c) Removal of this notice prior to termination of suspension or any representation to the effect that sales or purchases have been suspended for any reason other than by order of the department shall be deemed a violation of the condition of probation.
Note: Authority cited: Section 18015, Health and Safety Code. Reference: Sections 18020, 18021.5, 18058 and 18065.5, Health and Safety Code.
s 5082.5. Prohibited Sale Notice.
Whenever the department discovers by investigation that manufactured homes, mobilehomes or commercial coaches are being offered for sale, rent or lease by persons or at locations, which are not licensed as required by law and this chapter, or where the license has been suspended or revoked as a result of actions taken pursuant to Health and Safety Code Sections 18021.5, 18064 and 18064.5, or that any of the conditions exist providing for automatic cancellation of a license pursuant to Health and Safety Code Section 18065, the department may post Prohibited Sales Notices, conspicuous to the public, on the manufactured homes, mobilehomes or commercial coaches.
Note: Authority cited: Section 18015, Health and Safety Code. Reference: Sections 18020, 18045 and 18065, Health and Safety Code.
s 5083. Monetary Penalties for Compromise Settlements.
Payment of the following monetary penalties may be required of an occupational licensee pursuant to a compromise settlement agreement between the Director and the licensee entered into pursuant to the provisions of Health and Safety Code Section 18064.5.
(a) A minimum of $150.00 and a maximum of $500.00 for each violation of the following provisions of law: Health and Safety Code Sections 18058.5; 18059(b,c); 18059.5(a,b); 18060(a,c); 18060.5(d,g); 18061)d); 18061.5(b); and 18062.2(a,g,h).
(b) A minimum of $100.00 and a maximum of $500.00 for each violation of the following provisions of law: Health and Safety Code Sections 18059(a); 18060(b); 18060.5(b,f); 18061(a,b,c,e); 18061.5(a); 18062(a,b,c); 18062.2(b,c); and 18062.5(a-e).
(c) A minimum of $50.00 and a maximum of $500.00 for each violation of the following provisions of law: Health and Safety Code Sections 18062.2(d,e,f).
Note: Authority cited: Section 18015, Health and Safety Code. Reference: Section 18064.5, Health and Safety Code.
s 5090. 90-Day Certificate Expiration.
(a) All 90-day certificates expire 90 days from the date of initial issuance. Expired certificate holders shall either:
(1) Submit their expired certificates to the department within 10 days or,
(2) Submit their expired certificate to the department within 3 months of expiration, along with all salesperson application requirements in accordance with Section 5020(i).
(b) Any 90-day certificate holder working with an expired certificate without obtaining licensure status through this department may be subject to license refusal, or at the discretion of the Department be subject to a penalty of 50 percent of the license fee in accordance with Section 5010(a).
Note: Authority cited: Sections 18015 and 18052.6, Health and Safety Code. Reference: Sections 18045, 18050.5(h), 18052.6, 18055 and 18058(b), Health and Safety Code.
s 5092. Suspension/Refusal to Issue/Revocation.
The department's review of an application for a 90-day certificate shall be subject to the provisions of Health and Safety Code, Section 18050.5.
Note: Authority cited: Sections 18015 and 18052.6, Health and Safety Code. Reference: Sections 18050.5, 18052.6, 18058 and 18065, Health and Safety Code.
s 5094. Supervision of Certificate Holders.
The dealer and/or a responsible managing employee shall directly supervise the activities of all 90-day certificate holders. "Directly Supervise" includes:
(a) Continuous availability of the responsible managing employee or dealer to the 90-day certificate holder(s) on the premises of the dealer and
(b) On an exclusive basis, supervises the activities of the 90-day certificate holder(s) and
(c) Regularly oversees the activities of the certificate holder(s) and assures their compliance with the laws governing mobilehome/manufactured housing or commercial coach sales and/or leasing.
Note: Authority cited: Sections 18015, 18052.6 and 18052.7, Health and Safety Code. Reference: Section 18052.7, Health and Safety Code.
s 5300. Definitions.
The following definitions shall govern this chapter:
(a) Clock hour. Fifty (50) continuous minutes in an approved preliminary or continuing education course, seminar, or conference excluding breaks for meals or rest.
(b) Continuing Education Course. A class, seminar or conference approved by the department, pursuant to law and this chapter, which offers licensees continuing education clock hour credits on one topic.
(c) Correspondence Course. A continuing education program of a single topic approved by the department and transmitted by mail between a licensee and an approved course provider.
(d) Course Provider. A person or entity offering preliminary or continuing education courses approved by the department. A course provider meeting the minimum qualifications established in this chapter may also be an approved instructor.
(e) Instructor. A person approved by the department to present preliminary or continuing education courses while in the employ of a course provider. An instructor may also be a course provider.
(f) Preliminary Education Course. A class, seminar or conference approved by the department pursuant to law and this chapter relating to laws and regulations governing manufactured home and mobilehome sales, specifically designed for persons not holding a manufactured home or mobilehome dealer or salesperson license.
Note: Authority cited: Sections 18015 and 18056.2, Health and Safety Code. Reference: Sections 18056, 18056.2 and 18056.4, Health and Safety Code.
s 5301. Applicant Qualification to Receive Public Benefits.
When applying for a Continuing Education Course Approval, Preliminary Education Course Approval or Instructor Approval, or the renewal of a Continuing Education Course Approval, Preliminary Education Course Approval or Instructor Approval, if the applicant has not previously been determined to be eligible to receive public benefits, the applicant shall present documentation necessary to determine the applicant's qualification to receive public benefits pursuant to chapter 5.5 of this division, beginning with section 5802.
Note: Authority cited: Sections 18015 and 18056.2, Health and Safety Code. Reference: 8 U.S.C. Sections 1621, 1641 and 1642; and Sections 18056, 18056.2 and 18056.4, Health and Safety Code.
s 5302. Application and Scope of Preliminary Education Requirements.
On or after January 1, 1987, preliminary education requirements apply to all manufactured home and mobilehome dealer and salesperson license holders and applicants for such licenses, as specified in law and this subchapter. Applicants for licenses to sell only commercial coaches are not subject to preliminary education requirements.
(a) All persons applying for a manufactured home and mobilehome dealer license participating in the direction, control or management of the sales operation of the dealership, shall have completed an approved preliminary education program before applying for the dealer examination except as otherwise provided in this section.
(b) No partner, controlling stockholder, director, general manager or officer shall participate in the direction, control or management of the sales operation of a dealership prior to satisfying the provisions of this chapter relating to licensing and preliminary education.
(c) All persons applying for a manufactured home and mobilehome salesperson license shall have completed an approved preliminary education program before applying for the salesperson examination except as otherwise provided in this section.
(d) Holders of a valid dealer license, that have already satisfied the preliminary education requirement, and subsequently apply for a salesperson or another dealer license, are not required to attend another preliminary education program.
(e) Holders of a valid salesperson license, that have already satisfied the preliminary education requirement and subsequently apply for a dealer license, are not required to attend another preliminary education program.
(f) As specified in Section 5304, Continuing Education requirements apply to applicants who held a manufactured home or mobilehome dealer or salesperson license which has expired or was surrendered or cancelled within one (1) year of the new application for a manufactured home or mobilehome dealer or salesperson license.
Note: Authority cited: Sections 18015, and 18056.2, Health and Safety Code. Reference: Sections 18056, 18056.2 and 18056.4, Health and Safety Code.
s 5304. Application and Scope of Continuing Education Requirements.
(a) Applicants for and holders of manufactured home and mobilehome dealer and salesperson licenses are subject to continuing education requirements as specified in law and this section and Section 5306.
(b) Holders of licenses to sell only commercial coaches are not subject to continuing education requirements.
(c) The continuing education requirements apply to owners, each partner, controlling stockholder, director, general manager and officer who participates in the direction, control or management of the sales operation of a manufactured home or mobilehome dealer.
(d) Continuing education requirements apply to applicants who held a manufactured home or mobilehome dealer or salesperson license which has expired or was surrendered or cancelled within one (1) year of the new application for a manufactured home or mobilehome dealer or salesperson license.
(e) All continuing education clock hour credits applied toward the renewal of a dealer or salesperson license shall have been earned during the term of the license to be renewed, except as provided in Section 5318.
(f) Holders of both a manufactured home and mobilehome dealer and salesperson license may apply the same continuing education clock hour credits toward the renewal of both licenses, provided the credits were earned within the respective licensure terms.
(g) Any partner, controlling stockholder, director, general manager or officer within the ownership of a dealership, who becomes a participant in the direction, control or management of the sales operation of a dealership after issuance of the license is subject to continuing education requirements at the time of license renewal if more than six (6) months remain in the licensure term. Clock hour requirements for such persons shall be equal to one (1) clock hour for each full month remaining in the licensure term exceeding six (6). The topic requirements imposed by Section 5306 shall not apply.
Note: Authority cited: Sections 18015, and 18056.2, Health and Safety Code. Reference: Sections 18056, 18056.2 and 18056.4, Health and Safety Code.
s 5306. Continuing Education Topic Requirements for Dealers and Salespersons.
(a) Each person subject to continuing education shall complete course topics as specified in this section.
(b) Each person required to complete a minimum of twenty-four (24) clock hours of continuing education shall complete approved courses in the following topics for the first license renewal occurring after the effective date of this subchapter.
(1) Laws and regulations governing manufactured housing manufacturing and sales.
(2) Escrow.
(3) Advertising and Misrepresentations.
(4) Registration and Titling.
(5) Purchase Documents.
(6) Warranties.
(7) Mobilehome Park Residency Law and Mobilehome Park Act.
If additional courses must be taken in order to earn the minimum clock hour requirement, those remaining clock hours may be earned in any approved course(s) of other topics.
(c) Persons subject to less than twenty-four (24) clock hours of continuing education as provided in law or Section 5304 shall complete an approved course in Laws and Regulations Update and any remaining clock hour requirements shall be earned in any approved continuing education course(s) on topics of the licensee's choice.
(d) The department shall not accept clock hour credits earned by repeating any one course provided by the same course provider or instructor within any one licensure term.
Note: Authority cited: Sections 18015, and 18056.2, Health and Safety Code. Reference: Sections 18056, 18056.2 and 18056.4, Health and Safety Code.
s 5308. Minimum Standards for Preliminary Education Courses.
(a) All preliminary education courses shall comply with the provisions of this section.
(b) Course curriculum shall provide instruction in at least the following topics pertaining to manufactured housing:
(1) Introduction to the Laws and Regulations governing manufactured housing, manufacturing and sales.
(2) Warranties.
(3) Alternations to manufactured homes or mobilehomes.
(4) Escrow and purchase documents.
(5) Sales of noncomplying manufactured homes and mobilehomes.
(6) Advertising and misrepresentations.
(7) Taxation.
(8) Registration and Titling.
(c) No course shall be approved which provides instruction in subjects relating to business promotion, office and business skills, or sales techniques.
(d) Course curriculum may set aside up to thirty (30) minutes at the end of the course presentation for open discussions between the instructor and the participants. This subsection is not intended to eliminate participant questions and instructor responses necessary to facilitate the participant's understanding during the course presentation.
(e) Breaks for meals and rest may be arranged as deemed appropriate by the course provider or instructor, however, such time shall not intrude into the clock hours designated for the course.
(f) Preliminary education courses may utilize oral, written, audio and audio-visual presentations. Audio and audio-visual presentations may contain voices and images of persons other than the approved instructors.
(g) Except for courses consisting entirely of audio or audio-visual presentations, all courses shall be presented by only approved instructors. Courses presented entirely by audio or audio-visual means may be presented by the course provider or other person in the employ of the course provider, otherwise an approved instructor is required.
(h) Approved curriculums or materials shall not be altered or eliminated, or new materials or topics shall not be introduced and used prior to the approval of the department.Applications to change approved courses shall comply with Section 5346 of this subchapter. (continued)