Bill Amendment: AZ HB2446 | 2021 | Fifty-fifth Legislature 1st Regular
Bill Title: Escrow accounts; manufactured homes; requirements
Status: 2021-03-26 - Chapter 132 [HB2446 Detail]
Download: Arizona-2021-HB2446-HOUSE_-_Commerce.html
Fifty-fifth Legislature
First Regular Session
COMMITTEE ON COMMERCE
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2446
(Reference to printed bill)
Page 1, line 4, after "requirements" insert "for dealers that are not also owners of mobile home parks"
Strike lines 21 through 45
Page 2, strike lines 1 through 16
Reletter to conform
Page 3, line 11, strike "D" insert "C"
Page 4, lines 13, 26 and 37, strike "N" insert "M"
Page 5, after line 15, insert:
"Sec. 2. Title 41, chapter 37, article 4, Arizona Revised Statutes, is amended by adding section 41-4030.01, to read:
41-4030.01. Trust and escrow requirements for dealers that are also owners of mobile home parks; rules
A. The owner of a mobile home park that also is or that owns a dealership licensed pursuant to this article to sell units may sell a manufactured home or a factory-built building designed for use as a residential dwelling as a licensee if all of the following apply:
1. The home will be sited in a mobile home park that is owned by the park owner.
2. At the time of the sale, the park owner has on file at the department the name and address of all mobile home parks owned by the park owner, the name, address and license number of the licensed dealership and documentation showing to the satisfaction of the department that the park owner either holds the license, owns a majority interest in the license or is controlled by an entity that holds a controlling interest in the license.
3. At the time of the sale, the licensed dealership has posted with the department a dealer bond in an amount of at least $150,000 in a form satisfactory to the department covering sales by parks sharing common control.
4. At the time of the sale, the dealer shall either maintain a licensee's trust account or open an escrow account with an independent financial institution or escrow agent located in this state. The licensee shall deposit all earnest monies received for the sale of manufactured homes, mobile homes or factory-built buildings designed for use as residential dwellings in the trust or escrow account. The department shall conduct an audit of each dealer's trust or escrow account, including any transactions with an independent escrow account, at least once every two years. The purchaser of the manufactured home, mobile home or factory-built building designed for use as a residential dwelling may make a written request that the dealer establish an independent escrow account and if such a request is received by the dealer later than the time the purchase contract is signed and the seller consents, the dealer shall comply with the request. A licensee that handles a transaction under this paragraph shall disclose to the purchaser, in writing and before or at the time the purchaser signs the purchase contract, that the purchaser may request in writing the use of an independent escrow account and that the transaction will otherwise be handled through a trust account controlled by the licensee.
B. For the purposes of this section, a financial institution or escrow agent is independent if the individual or entity is not controlled by the licensee, a family member of the licensee or a business affiliated with the licensee and the licensee, family member or business affiliate does not have a majority interest in the financial institution or escrow agent.
Sec. 3. Section 41-4042, Arizona Revised Statutes, is amended to read:
41-4042. Funding and assessments
A. A dealer of manufactured homes, mobile homes or factory-built buildings designed for use as residential dwellings shall pay, in addition to the license or renewal fee, a fee established by the director of not to exceed fifty dollars $50 for each unit that is sold and that is subject to section 41-4030, subsection D C, for deposit into the consumer recovery fund. The fee is payable to the department by the fifteenth day of the month following the month in which the sale is consummated.
B. Chapter 6 of this title does not apply to the setting of fees under this section.
C. An amount not to exceed seventy-five percent of the previous fiscal year's interest earned on the consumer recovery fund may be expended by the director, with the approval of the board. The expenditure shall be used for consumer and licensee education in connection with the manufactured housing and factory-built building industry, and all monies up to a maximum of fifty thousand dollars $50,000 remaining unexpended and unencumbered at the end of each fiscal year may be used for consumer and licensee education in succeeding fiscal years and do not revert to the consumer recovery fund.
Sec. 4. Section 41-4043, Arizona Revised Statutes, is amended to read:
41-4043. Recovery from fund; claim against licensee; subrogation; appeal; statute of limitations
A. If any consumer who is buying or selling the consumer's home uses the services of a licensed dealer of manufactured homes, mobile homes or factory-built buildings designed for use as residential buildings and is damaged as a result of an act or omission by a licensed dealer of manufactured homes, mobile homes or factory-built buildings designed for use as residential buildings that constitutes a violation of section 41-4030, or rules adopted pursuant to that section, and the sale is subject to section 41-4030, subsection D C, that consumer may file a claim with the department for payment from the consumer recovery fund. The claim shall be verified by the department.
B. If any consumer of manufactured homes, mobile homes or factory-built buildings designed for use as residential buildings is damaged by the failure of the principal to perform a sales agreement or to perform repairs under a warranty the consumer may file a claim with the department for payment from the consumer recovery fund. The claim shall be verified by the department.
C. On verification of the claim for payment, the director shall provide for a hearing pursuant to chapter 6, article 10 of this title.
D. The director shall pay from the consumer recovery fund whatever sum the administrative law judge finds payable on the claim. A decision granting a claim shall include an order suspending the license of the licensee on whose account the claim was filed. Such a The license shall remain suspended until the licensee has repaid in full, plus interest at the rate of ten percent per year, the amount paid from the consumer recovery fund on the licensee's account.
E. Any party aggrieved by the administrative law judge's decision may apply for a rehearing by filing with the director a motion in writing pursuant to chapter 6, article 10 of this title. The filing of a motion for rehearing shall suspend the operation of the administrative law judge's order pending the decision of the director on the rehearing.
F. Except as provided in section 41-1092.08, subsection H, any person aggrieved by a final administrative decision may seek judicial review pursuant to title 12, chapter 7, article 6.
G. The consumer recovery fund has a claim against the licensee on whose account a claim was granted or any other person who caused or contributed to a claim paid by the consumer recovery fund for the amount paid plus costs, necessary expenses and reasonable attorney fees.
H. The director is subrogated to the claim of the consumer recovery fund against the bond and other assets of the licensee. The director shall deposit any amount recovered into the consumer recovery fund.
I. If, at any time, the money deposited in the consumer recovery fund is insufficient to satisfy any duly authorized claim or portion of a claim, the director, when sufficient money has been deposited in the consumer recovery fund, shall satisfy such unpaid claims or portions of claims in the order that such claims or portions of claims were originally filed.
J. A consumer pursuant to subsection A or B of this section is barred from commencing an application for payment from the consumer recovery fund later than two years from the date of sale or date of installation, whichever is later."
Amend title to conform
