Bill Text: CA SB542 | 2017-2018 | Regular Session | Amended


Bill Title: Manufactured Housing Act of 1980: notice of transfer and release of liability.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2017-04-20 - Read second time and amended. Re-referred to Com. on APPR. [SB542 Detail]

Download: California-2017-SB542-Amended.html

Amended  IN  Senate  April 20, 2017
Amended  IN  Senate  March 21, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 542


Introduced by Senator Leyva

February 16, 2017


An act to add Section 18107 to the Health and Safety Code, relating to manufactured housing.


LEGISLATIVE COUNSEL'S DIGEST


SB 542, as amended, Leyva. Manufactured Housing Act of 1980: notice of transfer and release of liability.
Existing law, the Manufactured Housing Act of 1980, requires, with certain exceptions, manufactured homes, mobilehomes, commercial coaches, and floating homes sold or used within this state to be subject to annual registration with the Department of Housing and Community Development upon the appropriate forms approved by the department and payment of prescribed registration fees. The act authorizes registration of a manufactured home, mobilehome, commercial coach, truck camper, or floating home to be held in the name of a company, an estate, a trust, a conservatorship, a guardianship, or an individual owner’s name. The act requires every registered owner, upon receipt of a registration card, to maintain the card or a copy thereof with the manufactured home, mobilehome, commercial coach, truck camper, or floating home for which it is issued. If a registration application is made in this state and the department is not satisfied as to the ownership of the manufactured home or mobilehome or the existence of foreign liens thereon, existing law authorizes the department to register the manufactured home or mobilehome and issue a registration card with distinctive markings, but requires the department to withhold issuance of a California certificate of title, unless the applicant presents sufficient documents regarding the applicant’s ownership the absence of any liens thereon or posts a bond. In addition, existing law authorizes the department to refuse registration or the renewal or transfer of registration of a manufactured home or mobilehome if the department is not satisfied that the applicant is entitled thereto. Existing law prohibits transfer of title of a registered manufactured home, mobilehome, commercial coach, truck camper, or floating home until the transferor has properly endorsed and delivered the certificate of title and delivery of the registration card to the transferee. Existing law makes it unlawful for any person to fail or neglect properly to endorse, date, and deliver the certificate of title and, when having possession, to fail to deliver the registration card to a transferee who is lawfully entitled to a transfer of registration.

This bill would provide that an owner of a new or used manufactured home or mobilehome subject to registration pursuant to the Manufactured Housing Act of 1980 who sells or transfers ownership of the manufactured home or mobilehome would not be subject to civil or criminal liability for a violation of the act after the delivery of possession of the manufactured home or mobilehome, the compliance with specified requirements in existing law regarding transfer of title, and the delivery to the department of either a notice of transfer and release of liability, as specified, or the appropriate documents and fees for registration of the manufactured home or mobilehome to the new owner pursuant to the sale or transfer. The bill would require the department to prepare and adopt a notice of transfer and release of liability form that furthers the purposes of these provisions, as specified.

This bill would prohibit an owner, as defined, from being liable for taxes and fees specified in the Manufactured Housing Act of 1980 that accrue after the compliance date if the owner properly endorses and delivers the certificate of title to the transferee and delivers or mails to the Department of Housing and Community Development the completed notice of sale or transfer form developed by the department.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 18107 is added to the Health and Safety Code, to read:
18107.

(a)Notwithstanding any other provision of law, the owner of a new or used manufactured home or mobilehome subject to registration pursuant to this part who sells or transfers ownership of the manufactured home or mobilehome shall not be subject to civil or criminal liability for a violation of this part after the delivery of possession of the manufactured home or mobilehome to the purchaser or other transferee and both of the following requirements are met:

(1)The owner has endorsed, released, and delivered the certificate of title in compliance with this part or, if the certificate of title is unavailable, has otherwise complied with the requirements of the department for the transfer of title in order to relinquish all rights, title, and interest in and to the manufactured home or mobilehome.

(2)The owner has delivered to the department or has deposited in the United States mail, addressed to the department, either of the following:

(A)The notice of transfer and release of liability on a form described in subdivision (b) that is endorsed by the purchaser.

(B)The registration documents and fees required by the department for the sale or transfer of the manufactured home or mobilehome to the new owner.

(b)The department shall prepare and adopt a notice of transfer and release of liability form that furthers the purposes of this section. The form shall require the name, address, and current phone number of the buyer and seller. The form shall also include the following statement:

“BEFORE YOUR NAME IS REMOVED FROM THE RECORDS OF THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT AS THE OWNER, THE NEW OWNER MUST APPLY FOR A TRANSFER OF OWNERSHIP USING THE ENDORSED CERTIFICATE OF TITLE RECEIVED FROM YOU AND THE NEW OWNER MUST COMPLETE ALL OF THE TRANSFER REQUIREMENTS.”

18107.
 (a) An owner shall not be liable for taxes or fees pursuant to Article 6 (commencing with Section 18114) that accrue after the date of compliance if the owner does both of the following:
(1) Properly endorses and delivers the certificate of title to the transferee as provided in this code.
(2) Delivers to the Department of Housing and Community Development or deposits in the United States mail, addressed to the department, the completed notice of sale or transfer form developed by the department.

(c)

(b) This section shall not be construed to impose any additional duties upon an owner who sells or transfers ownership of a manufactured home or mobilehome pursuant to any other law.

(d)

(c) For purposes of this section, an “owner” means a homeowner as defined in Section 798.9 of the Civil Code, an owner who is of record as a registered owner pursuant to this part, a legal owner as defined in Section 18005.8, and a junior lienholder as defined in Section 18005.3.

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