Bill Text: NY S03223 | 2013-2014 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Provides for the certification and training of persons employed in the manufacture, sale, installation and repair of modular homes; establishes dispute resolution procedures in the modular home industry.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2014-03-25 - PRINT NUMBER 3223A [S03223 Detail]
Download: New_York-2013-S03223-Introduced.html
Bill Title: Provides for the certification and training of persons employed in the manufacture, sale, installation and repair of modular homes; establishes dispute resolution procedures in the modular home industry.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2014-03-25 - PRINT NUMBER 3223A [S03223 Detail]
Download: New_York-2013-S03223-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ S. 3223 A. 4112 2013-2014 Regular Sessions S E N A T E - A S S E M B L Y January 31, 2013 ___________ IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print- ed, and when printed to be committed to the Committee on Housing, Construction and Community Development IN ASSEMBLY -- Introduced by M. of A. THIELE, COOK, JAFFEE, LOSQUADRO, MONTESANO, SWEENEY -- Multi-Sponsored by -- M. of A. BRENNAN, GABRYS- ZAK -- read once and referred to the Committee on Governmental Oper- ations AN ACT to amend the executive law, in relation to providing for the certification and training of persons employed in the manufacture, sale, installation and repair of modular homes and establishing dispute resolution procedures in the modular home industry THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. Article 21-B of the executive law, as added by chapter 729 2 of the laws of 2005, is amended to read as follows: 3 ARTICLE 21-B 4 MANUFACTURED AND MODULAR HOMES 5 Section 600. Application. 6 601. Definitions. 7 602. Certification required. 8 603. Warranty seals; notice to the department. 9 604. Powers of the department. 10 605. Resolution of disputes regarding manufactured AND MODULAR 11 homes. 12 606. Training and continuing education. 13 607. Penalties for violation of this article. 14 608. Fees. 15 609. State administrative agency requirements. 16 610. State certified installers. 17 611. Manufactured AND MODULAR housing advisory council. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD04951-01-3 S. 3223 2 A. 4112 1 612. Powers and duties of the advisory council. 2 S 600. Application. This article shall be applicable to persons and 3 business entities engaged in the manufacture, sale, installation and 4 service of manufactured OR MODULAR homes and to purchasers thereof. 5 S 601. Definitions. For the purposes of this article the following 6 terms shall have the following meanings: 7 1. "Business entity" means a corporation, association, partnership, 8 limited liability company, limited liability partnership, or other legal 9 entity. 10 2. "Delivered condition" means the physical condition of the home 11 after delivery and installation at the home site has been completed. 12 3. "Department" means the department of state. 13 4. "Installation" means: 14 (a) the affixation of a manufactured OR MODULAR home to a foundation 15 or supports at a building site; 16 (b) the assembly and fastening of structural components of manufac- 17 tured OR MODULAR housing, including the completed roof system; and 18 (c) the connection to electrical, oil, water, gas, sewage and similar 19 systems that are necessary for the use of the manufactured OR MODULAR 20 home for dwelling purposes. 21 5. "Installer" means any person or business entity, including, but not 22 limited to, a retailer or mechanic, who installs or sets up a manufac- 23 tured OR MODULAR home for a buyer. 24 6. "Lending entity" means a financial institution, mortgage lender or 25 other individual or entity that holds a mortgage or other security 26 interest in a manufactured OR MODULAR home, such home being the subject 27 of a complaint filed with the department pursuant to the provisions of 28 this article. 29 7. "Manufactured home" means a structure, transportable in one or more 30 sections, which, in the traveling mode, is eight body feet or more in 31 width or forty body feet or more in length, or, when erected on site, is 32 three hundred twenty or more square feet, and which is built on a perma- 33 nent chassis and designed to be used as a dwelling with or without a 34 permanent foundation when connected to the required utilities, and 35 includes the plumbing, heating, air-conditioning, and electrical systems 36 contained therein. The term shall include any structure that meets all 37 of the requirements of this subdivision except the size requirements and 38 with respect to which the manufacturer voluntarily files a certification 39 required by the United States secretary of housing and urban development 40 and complies with the standards established under Title 42 of the United 41 States code; and except that such term shall not include any self-pro- 42 pelled recreational vehicle. 43 8. "Manufacturer" means any person or business entity engaged in manu- 44 facturing or producing manufactured OR MODULAR homes. 45 9. "Mechanic" means any person or business entity engaged in the busi- 46 ness of performing service on or installing manufactured OR MODULAR 47 housing. 48 10. "Retailer" means any person or business entity engaged in the 49 retail selling or offering for sale, brokering or distribution of manu- 50 factured OR MODULAR homes, primarily to a person who, in good faith, 51 purchases these homes for purposes other than resale. 52 11. "Secretary" means the secretary of state. 53 12. "Service" means the modification, alteration or repair of the 54 structural systems of a manufactured OR MODULAR home. 55 13. "State administrative agency" or "SAA" means the department of 56 state which has been approved to carry out the state plan and enforce S. 3223 3 A. 4112 1 the national manufactured housing construction and safety standards act 2 (42 USC 5401, et seq.) within the state of New York, and that office 3 within the department of state that has been designated by the secretary 4 to perform such duties. 5 14. "Advisory council" shall mean the manufactured AND MODULAR housing 6 advisory council. 7 15. "MODULAR HOME" MEANS ANY BUILDING OR CLOSED CONSTRUCTION, REGARD- 8 LESS OF TYPE OF CONSTRUCTION OR OCCUPANCY CLASSIFICATION, OTHER THAN A 9 MOBILE OR MANUFACTURED HOME, CONSTRUCTED OFF-SITE IN ACCORDANCE WITH THE 10 APPLICABLE CODES, AND TRANSPORTED TO THE POINT OF USE FOR INSTALLATION 11 OR ERECTION. 12 S 602. Certification required. 1. On and after July first, two thou- 13 sand six, no person or business entity shall manufacture, including the 14 manufacture outside the state of New York for sale into the state of New 15 York, sell, install or service any manufactured home in the state of New 16 York, unless such person or business entity has obtained the appropriate 17 certification from the department pursuant to this article. ON AND 18 AFTER JULY FIRST NEXT SUCCEEDING THE EFFECTIVE DATE OF THE CHAPTER OF 19 THE LAWS OF TWO THOUSAND THIRTEEN WHICH AMENDED THIS SECTION, NO PERSON 20 OR BUSINESS ENTITY SHALL MANUFACTURE, INCLUDING THE MANUFACTURE OUTSIDE 21 THE STATE OF NEW YORK FOR SALE INTO THE STATE OF NEW YORK, SELL, INSTALL 22 OR SERVICE ANY MODULAR HOME IN THE STATE OF NEW YORK, UNLESS SUCH PERSON 23 OR BUSINESS ENTITY HAS OBTAINED THE APPROPRIATE CERTIFICATION FROM THE 24 DEPARTMENT PURSUANT TO THIS ARTICLE. 25 2. On and after July first, two thousand six, no manufactured home 26 shall be installed or serviced unless at least one person certified by 27 the department to perform such work is present at the home site during 28 the installation or service. ON AND AFTER JULY FIRST NEXT SUCCEEDING 29 THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND THIRTEEN 30 WHICH AMENDED THIS SECTION, NO MODULAR HOME SHALL BE INSTALLED OR 31 SERVICED UNLESS AT LEAST ONE PERSON CERTIFIED BY THE DEPARTMENT TO 32 PERFORM SUCH WORK IS PRESENT AT THE HOME SITE DURING THE INSTALLATION OR 33 SERVICE. 34 3. a. Each manufacturing plant that delivers or sells manufactured OR 35 MODULAR homes in this state, each retail sales location and each busi- 36 ness entity selling, installing or performing service on manufactured OR 37 MODULAR homes must be separately certified. 38 b. Each manufacturer, retailer, installer and mechanic shall employ at 39 least one person who has been certified by the department. 40 4. Manufacturers approved to construct manufactured OR MODULAR homes 41 by the United States department of housing and urban development shall 42 be required to apply for, and obtain, certification pursuant to this 43 article. Any such manufacturer shall be deemed to meet the requirements 44 for certification under this article, except that the department may, 45 after a hearing, suspend or revoke the certification of any manufacturer 46 as provided in subdivision seven of section six hundred four of this 47 article. 48 S 603. Warranty seals; notice to the department. 1. Before a manufac- 49 tured OR MODULAR home may be installed in this state, the manufacturer 50 shall obtain from the department a New York state manufacturer's warran- 51 ty seal and attach the seal to the manufactured OR MODULAR home in the 52 manner to be prescribed by the department. 53 2. Before a manufactured OR MODULAR home may be installed in this 54 state, the installer shall obtain from the department a New York state 55 installer's warranty seal and attach the seal to the manufactured OR 56 MODULAR home in the manner prescribed by the department. S. 3223 4 A. 4112 1 3. On a quarterly basis, every installer shall report to the depart- 2 ment all installations completed by that person or business entity 3 during the designated reporting period. The report shall be on a form 4 provided by the department and must include the location of each unit of 5 manufactured OR MODULAR housing, the owner of each unit at the time of 6 installation, the type or model of the unit, the manufacturer of the 7 unit, written certification that the installation meets the standards of 8 the New York state uniform fire prevention and building code and the 9 name and address of the manufacturer, retailer, mechanic or installer 10 completing the notice. 11 S 604. Powers of the department. The department shall have the follow- 12 ing powers and duties with respect to manufactured AND MODULAR housing: 13 1. To create and maintain a registry accessible to the public which 14 shall include, but not be limited to the following information: 15 (a) a listing of certified manufacturers, retailers, installers and 16 mechanics of manufactured OR MODULAR homes; and 17 (b) records of all violations issued, disciplinary action taken and 18 penalties paid and levied pursuant to this article; 19 2. To retain records and all application materials submitted to it; 20 3. To receive complaints, conduct investigations and establish proce- 21 dures for the resolution of disputes relating to the construction, 22 installation, or servicing of manufactured OR MODULAR homes and to 23 resolve such complaints and disputes pursuant to section six hundred 24 five of this article; 25 4. To establish administrative procedures for processing applications 26 for certification of persons and business entities required to be certi- 27 fied pursuant to this article; to receive such applications; to approve 28 or disapprove applications for certifications; and to issue certif- 29 icates; 30 5. To promulgate rules and regulations relating to the provisions of 31 this article; 32 6. To conduct adjudicatory hearings, pursuant to the state administra- 33 tive procedure act to resolve violations of this article and the rules 34 and regulations promulgated thereunder; 35 7. To suspend and revoke certificates, and impose such other penalties 36 as may be authorized pursuant to this article. The department may revoke 37 or suspend the certification of a person or business entity certified 38 pursuant to this article for a substantial violation of this article, or 39 for a material misstatement in the application for such certification, 40 or if such person or business entity is guilty of fraud or fraudulent 41 practices, or of dishonest or misleading advertising, or has demon- 42 strated untrustworthiness or incompetency to conduct the certified 43 activity or fails to comply with a decision issued pursuant to section 44 six hundred five of this article; 45 8. To seek injunctive relief in the supreme court in the county where 46 the complainant resides; 47 9. To promulgate rules and regulations establishing the standards for 48 certification of manufacturers, retailers, installers and mechanics 49 pursuant to this article. In establishing such standards, the department 50 shall provide for minimum requirements of experience and education as 51 may be necessary to protect the public interest. Such standards shall 52 also include a requirement for initial training of installers and 53 mechanics seeking certification by the department. In establishing stan- 54 dards, the department shall recognize certifications or licenses 55 obtained in other states without requiring additional initial educa- 56 tional testing, provided that the requirements for certification or S. 3223 5 A. 4112 1 licensing in such other states are comparable to the requirements for 2 certification in the state of New York and provided further, that the 3 individual or entity seeking certification otherwise meets the quali- 4 fications for certification in the state of New York; 5 10. To promulgate rules and regulations to require bonding, minimum 6 capital requirements or other reasonable methods to ensure that manufac- 7 turers, retailers, installers and mechanics are financially responsible 8 to fully comply with this article and have the financial resources to 9 meet their warranty, contractual and other obligations. In connection 10 therewith, the department may require the posting of surety bonds to 11 ensure the satisfactory completion of the installation or service; and 12 11. a. To promulgate rules and regulations regarding the development 13 and approval of courses and seminars required for original certification 14 and to establish requirements for continuing education for persons 15 certified pursuant to this article. Such regulations shall at a minimum 16 require that certified installers and mechanics attend courses and semi- 17 nars relating to the proper methods of installation and servicing manu- 18 factured OR MODULAR homes not less than once every three years. 19 b. Instructional services for courses leading to original certif- 20 ication or qualifying for continuing education may be provided either by 21 the department, a private trade association or other entity which has 22 been approved as an instructional provider by the department and has 23 paid the appropriate fee prescribed by rules and regulations promulgated 24 under this section. Approved instructional providers shall be permitted 25 to charge a fee for such services, not to exceed the maximum amount 26 prescribed by the rules and regulations. Persons electing to have the 27 continuing education instructional services provided by the department, 28 shall pay for such services in accordance with fee schedules established 29 by the department. 30 c. Fees charged by the department for approving or providing instruc- 31 tional services shall be deposited in the department account established 32 pursuant to section six hundred eight of this article. 33 12. To create and maintain a consumer awareness pamphlet, in conjunc- 34 tion with the advisory council, to include, but not be limited to, 35 detailing the certification process, installer selection rights, the 36 dispute resolution process, the differences between the types of hous- 37 ing, and other consumer protection issues. Such pamphlet shall be avail- 38 able to the public, and published on the department's website. 39 S 605. Resolution of disputes regarding manufactured AND MODULAR 40 homes. 1. Any homeowner, retailer, manufacturer, installer, mechanic or 41 lending entity may file a complaint with the department as a state 42 administrative agency seeking resolution of an allegation that a 43 substantial defect exists in the delivered condition, installation, 44 service or construction of a manufactured OR MODULAR home. The depart- 45 ment shall promulgate forms for such complaints which forms shall also 46 be available on the department's [web-site] WEBSITE. For the purpose of 47 this article, a substantial defect shall be a defect or a number of 48 defects or other conditions which collectively can reasonably be 49 expected to cost five hundred dollars or more to cure. 50 2. Complaints relating to the delivered condition, installation, 51 service or construction of a manufactured OR MODULAR home shall be made 52 within one year and ten days after the date of the service, installation 53 or issuance of a certificate of occupancy, or the expiration of any 54 applicable provision of a contract or warranty, whichever is later. 55 3. (a) Upon the department's determination that a complaint, on its 56 face, alleges a substantial defect in the delivered condition, installa- S. 3223 6 A. 4112 1 tion, service, or construction of a manufactured OR MODULAR home, the 2 department shall notify the homeowner, manufacturer, retailer, mechanic 3 and installer, as appropriate. 4 (b) Initially, the department may attempt to informally resolve the 5 complaint. If informal resolution of the complaint is unsuccessful, the 6 department shall resolve such complaints and disputes by administrative 7 hearing, pursuant to the state administrative procedure act. 8 (c) The decision shall provide compensation to the aggrieved party in 9 an amount which shall include, but not be limited to: 10 (i) Filing and recording fees, inspection fees and other required 11 costs that the aggrieved party would not have incurred had the home met 12 applicable standards; and 13 (ii) The cost of conforming repairs or replacements. 14 (d) The department may apportion liability between two or more parties 15 or business entities where appropriate. 16 (e) The decision resolving the complaint shall be in writing and shall 17 provide the reason therefor, a copy of the decision shall be provided to 18 all interested parties. 19 (f) The department may require, as a condition of receiving and 20 retaining any certification pursuant to this article, that an applicant 21 agrees to submit to the jurisdiction of the department in connection 22 with the resolution of complaints and disputes and agrees to be bound by 23 the department's determination subject to any administrative and judi- 24 cial review provided for in this article. 25 (g) Any party may seek judicial review of the administrative determi- 26 nation pursuant to article seventy-eight of the civil practice law and 27 rules. 28 S 606. Training and continuing education. 1. Beginning January first, 29 two thousand six, all persons certified as an installer or mechanic, 30 must obtain initial training, including, but not limited to the stand- 31 ards for proper installation of a manufactured home. BEGINNING JANUARY 32 FIRST NEXT SUCCEEDING THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF 33 TWO THOUSAND THIRTEEN WHICH AMENDED THIS SECTION, ALL PERSONS CERTIFIED 34 AS AN INSTALLER OR MECHANIC, MUST OBTAIN INITIAL TRAINING, INCLUDING, 35 BUT NOT LIMITED TO THE STANDARDS FOR PROPER INSTALLATION OF A MODULAR 36 HOME. Such training shall be provided in courses and seminars approved 37 pursuant to this article. 38 2. All persons certified under this article shall be required to 39 attend continuing education courses and seminars not less than once 40 every three years. 41 S 607. Penalties for violation of this article. Any person or business 42 entity found guilty, after a hearing, of a violation of this article, 43 except for the provisions of section six hundred nine of this article, 44 may be required to pay a civil penalty of not more than one thousand 45 dollars for each such violation, but not more than five thousand dollars 46 for more than one violation relating to each home. Such fine shall be 47 collected and deposited in the state's general fund. In addition to the 48 penalties set forth in this section, the secretary shall also have the 49 power to suspend or revoke licenses pursuant to section six hundred four 50 of this article. 51 S 608. Fees. The department shall, by regulation, establish reasonable 52 fees for obtaining certification, obtaining warranty and installation 53 seals and for instructional services, training and continuing education 54 pursuant to this article. Such fees shall be paid and deposited into a 55 segregated account established within the department which shall be used S. 3223 7 A. 4112 1 exclusively to defray the administrative expenses associated with carry- 2 ing out the provisions of this article. 3 S 609. State administrative agency requirements. 1. In carrying out 4 its responsibilities and obligations pursuant to 42 USC 5401, et seq., 5 the department, by authorized representatives, may enter, at reasonable 6 times, any factory, warehouse or establishment in which manufactured OR 7 MODULAR housing is manufactured, stored, or held for sale for the 8 purpose of ascertaining whether the requirements of the federal manufac- 9 tured housing construction and safety standards act, the provisions of 10 this article and the rules of the department are being met. The depart- 11 ment's authority to enter and inspect shall be no less than the authori- 12 ty provided in 42 USC 5413. 13 2. Each manufacturer and retailer of manufactured OR MODULAR housing 14 constructed under the federal standards and any other party or entity 15 covered by chapter 10 of title 42 of the United States Code shall be 16 subject to and comply with all applicable provisions of said laws any 17 violation of which shall be deemed a violation of this section. 18 3. The department by authorized representative, shall have all of the 19 powers granted to the secretary of housing and urban development as 20 provided in chapter 10 of title 42 of the United States Code with 21 respect to the enforcement of manufactured home safety and construction 22 standards promulgated under 42 USC 5403. 23 4. The department is authorized to impose and collect fees to be paid 24 by manufacturers in amounts adequate to cover the costs of inspections 25 conducted pursuant to the provisions of this article. Such fees shall be 26 deposited in the department account established pursuant to section six 27 hundred eight of this article. 28 5. (a) A manufacturer or retailer of manufactured OR MODULAR housing 29 who violates any of the provisions set forth in this section relating to 30 manufactured OR MODULAR housing or rules adopted by the department, 31 including provisions of the New York state uniform fire prevention and 32 building code relating to manufactured OR MODULAR housing, is subject to 33 a civil penalty not to exceed one thousand one hundred dollars for each 34 violation. Each violation constitutes a separate violation with respect 35 to each manufactured OR MODULAR housing unit, except that the maximum 36 penalty may not exceed one million one hundred thousand dollars for any 37 related series of violations occurring within one year from the date of 38 the first violation. 39 (b) An individual or a director, officer, or agent of a corporation or 40 a principal [on] OF a business entity who knowingly and willfully 41 violates 42 USC 5409 in a manner which threatens the health or safety of 42 any purchaser shall be fined not more than one thousand dollars or 43 imprisoned not more than one year or both. 44 (c)(i) The department may enforce the provisions of this article and 45 may impose civil penalties administratively; 46 (ii) Nothing in this article shall limit the powers and duties of the 47 attorney general, as defined in section sixty-three of this chapter; and 48 (iii) Nothing in this article shall diminish or limit any other right 49 or cause of action existing under any other provision of law. 50 S 610. State certified installers. Manufacturers and retailers may as 51 a condition of the sale of a manufactured OR MODULAR home require that 52 the home be installed by a state certified installer and may recommend a 53 particular installer or installers. Manufacturers shall not void a 54 warranty for a manufactured OR MODULAR home if the [home buyer] HOMEBUY- 55 ER utilizes a state certified installer. It shall be a violation of this 56 article to restrict a homebuyer from using any state certified installer S. 3223 8 A. 4112 1 chosen by the homebuyer, or to void a warranty for a manufactured OR 2 MODULAR home if the homebuyer utilizes a state certified installer. 3 S 611. Manufactured AND MODULAR housing advisory council. 1. There is 4 hereby established within the department a manufactured AND MODULAR 5 housing advisory council. The advisory council shall consist of fifteen 6 members to be appointed as follows: 7 a. Four members shall be appointed by the governor; one of whom shall 8 be a member, officer, or employee of an installer, one of whom shall be 9 a member, officer, or employee of a park residence advocacy association, 10 one of whom shall be a member, officer, or employee of a retailer, and 11 one of whom shall be a member, officer, or employee of a trade associ- 12 ation representing the manufactured OR MODULAR home industry. 13 b. Four members shall be appointed by the temporary president of the 14 senate; one of whom shall be a member, officer, or employee of a 15 manufacturer, one of whom shall be a member, officer, or employee of the 16 engineering industry involved in manufactured OR MODULAR housing issues, 17 one of whom shall be a member, officer, or employee of a consumer advo- 18 cacy association involved in manufactured OR MODULAR housing issues, and 19 one of whom shall be a manufactured OR MODULAR housing resident owner. 20 c. Four members shall be appointed by the speaker of the assembly; one 21 of whom shall be a member, officer, or employee of a manufacturer, one 22 of whom shall be a member, officer, or employee of the banking industry 23 involved in manufactured OR MODULAR housing issues, one of whom shall be 24 a member, officer, or employee of a consumer advocacy association 25 involved in manufactured OR MODULAR housing issues, and one of whom 26 shall be a manufactured OR MODULAR housing resident owner. 27 d. One member shall be appointed by the minority leader of the senate; 28 who shall be a manufactured OR MODULAR home resident owner. 29 e. One member shall be appointed by the minority leader of the assem- 30 bly; who shall be a manufactured OR MODULAR home resident owner. 31 2. The secretary shall be a member of the advisory council and shall 32 serve as chair to the council. 33 S 612. Powers and duties of the advisory council. The advisory council 34 shall have the following functions, powers, and duties: 35 1. To assist in the development of certification requirements and 36 fees, warranty seal requirements and fees, and warranty standards for 37 manufacturers and installers; 38 2. To assist in the development of training and continuing education 39 requirements; 40 3. To assist in the creation of a consumer awareness pamphlet detail- 41 ing the certification process and resolution of dispute process. The 42 pamphlet shall also explain the differences between types of houses 43 (mobile, modular and manufactured); 44 4. To examine consumer protection issues, including but not limited 45 to, manufactured AND MODULAR housing financing and sales practices; 46 5. To examine the differences of manufactured and modular housing 47 regulations and make recommendations to the department and the legisla- 48 ture on an annual basis; and 49 6. To submit annual reports by December thirty-first, two thousand six 50 and each year thereafter, to the governor, the temporary president of 51 the senate and the speaker of the assembly that details the recommenda- 52 tions of the advisory council regarding manufactured AND MODULAR housing 53 in New York state. The advisory council shall, as part of its report, 54 detail the number of complaints received by the department and the 55 number of disputes resolved through the department. S. 3223 9 A. 4112 1 S 2. This act shall take effect on the first of January next succeed- 2 ing the date on which it shall have become a law, provided that the 3 department of state shall immediately be authorized and empowered to 4 take such steps, including the promulgation of rules and regulations, as 5 may be necessary for the proper implementation of this act on such 6 effective date.