DAR File No. 37753

Commerce, Occupational and Professional Licensing

Section R156-56-403

Factory Built Housing Dispute Resolution Program

Notice of Proposed Rule

(Amendment)

DAR File No.: 37753
Filed: 06/20/2013 12:33:29 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

H.B. 51 which was passed during the 2013 Legislative General Session deleted the requirement to have a dispute resolution program for factory built housing. This requirement was originally put into statute to enable the Division to perform this duty as part of its acting as a United States Department of Housing and Urban Development (HUD) approved state administrative agency. HUD does not require this duty to be performed by the state administrative agency, so the Legislature decided to eliminate this requirement. While this duty was eliminated from statute, it will have little if any affect on Division investigations. The Division will still investigate allegations of unprofessional or unlawful conduct by factory built housing dealers as the result of the licensing provisions that are not being changed and remain in effect.

Summary of the rule or change:

Section R156-56-403 with respect to a factory built housing dispute resolution program is deleted in its entirety.

State statutory or constitutional authorization for this rule:

• Section 58-56-1
• Subsection 58-1-106(1)(a)
• Subsection 58-1-202(1)(a)

Anticipated cost or savings to:

the state budget:

The proposed amendment will not affect the state budget. The deletion of this section will also have little, if any, affect on Division investigations with respect to factory built housing dealers.

local governments:

The proposed amendment to delete the section only applies to factory built housing dealers and persons who want to file a complaint against a licensed factory built housing dealer. As a result, the proposed amendment does not apply to local governments.

small businesses:

The proposed amendment only applies to licensed factory built housing dealers, which may qualify as a small business, and persons who want to file a complaint against a licensed factory built housing dealer. While the proposed amendment eliminates the formal requirement to have a dispute resolution program to protect factory built housing homeowners, the proposed amendment will have little, if any, affect on the homeowners or the dealers. Factory built housing dealers who engage in unlawful or unprofessional conduct affecting homeowners will still be investigated by the Division and disciplined if necessary. In addition, factory built housing dealers are required to post a $50,000 license bond as a condition of licensure. Therefore, the homeowners are still protected by the coverage of these bonds.

persons other than small businesses, businesses, or local governmental entities:

The proposed amendment only applies to licensed factory built housing dealers, which may qualify as a small business, and persons who want to file a complaint against a licensed factory built housing dealer. While the proposed amendment eliminates the formal requirement to have a dispute resolution program to protect factory built housing homeowners, the proposed amendment will have little, if any, affect on the homeowners or the dealers. Factory built housing dealers who engage in unlawful or unprofessional conduct affecting homeowners will still be investigated by the Division and disciplined if necessary. In addition, factory built housing dealers are required to post a $50,000 license bond as a condition of licensure. Therefore, the homeowners are still protected by the coverage of these bonds.

Compliance costs for affected persons:

The proposed amendment will have little, if any, affect on factory built housing dealers. They are still required to comply with licensing statutes and rules and if they engage in unprofessional conduct, they will be still subject to disciplinary action by the Division.

Comments by the department head on the fiscal impact the rule may have on businesses:

As stated in the rule analysis, the proposed amendment responds to statutory changes made during the 2013 General Session (H.B. 51). No fiscal impact to businesses is anticipated beyond those contemplated by the Legislature in determining to pass the bill.

Francine A. Giani, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Commerce
Occupational and Professional Licensing
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY, UT 84111-2316

Direct questions regarding this rule to:

• Dan Jones at the above address, by phone at 801-530-6720, by FAX at 801-530-6511, or by Internet E-mail at dansjones@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

08/14/2013

Interested persons may attend a public hearing regarding this rule:

• 07/29/2013 11:00 AM, Heber Wells Bldg, 160 E 300 S, Conference Room 474, Salt Lake City, UT

This rule may become effective on:

08/21/2013

Authorized by:

Mark Steinagel, Director

R156. Commerce, Occupational and Professional Licensing.

R156-56. Building Inspector and Factory Built Housing Licensing Act Rule.

[R156-56-403. Factory Built Housing Dispute Resolution Program.

(1) In accordance with Subsection 15A-1-306(1)(f)(i), the dispute resolution program is defined and clarified as follows:

(a) Persons with manufactured housing disputes may file a complaint with the Division.

(b) The Division shall investigate such complaints and as part of its investigation may take any of the following actions:

(i) Negotiate an informal resolution with the parties involved.

(ii) Take any informal or formal action allowed by any applicable statute, including but not limited to:

(A) pursuing disciplinary proceedings under Section 58-1-401;

(B) assessing civil penalties under Subsection 15A-1-306(2); and

(C) referring matters to appropriate criminal prosecuting agencies and cooperating or assisting with the investigation and prosecution of cases by such agencies.

(c) In addition, persons with manufactured housing disputes may pursue a civil remedy.

]

KEY: factory built housing, contractors, building inspections, licensing, building inspectors

Date of Enactment or Last Substantive Amendment: [September 12, 2011]2013

Notice of Continuation: January 31, 2012

Authorizing, and Implemented or Interpreted Law: 58-1-106(1)(a); 58-1-202(1)(a); 58-56-1