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  • 03 Sep 2013 3:20 PM | Anonymous

    Full text of new legislation, S310

     

    New provisions are highlighted

     

    S310: 2013 Manufactured Housing Legislation

    South Carolina

    R118, S310

     

    Governor's Action: June 20, 2013, Signed

    Summary: Manufactured Housing Board

    Be it enacted by the General Assembly of the State of South Carolina:

     

    Financial responsibility requirements

    SECTION    1.    Chapter 29, Title 40 of the 1976 Code is amended by adding:

    "Section 40-29-95.    (A)    The board shall consider the financial responsibility of an applicant as determined by this section and regulations promulgated by the board.

     

    (B)    A retail dealer applicant who fails to possess cash or cash equivalency in an amount equal to or greater than one hundred fifty thousand dollars or a credit score of less than seven hundred must appear before the board.

    (C)    Should the board license an applicant who is unable to meet the financial responsibility guidelines of this section or the regulations of the board, then the board may modify or restrict the activities of the licensee."

     

    Dealer license number required in certain advertisements

     

    SECTION    2.    Chapter 29, Title 40 of the 1976 Code is amended by adding:

     

    "Section 40-29-325.    Licensed manufactured housing retail dealers shall include their dealer license number on any print, Internet, or email advertisement by the retail dealer for the sale of a manufactured home located in South Carolina."

     

    Application requirements, certain lienholder conveyance exempt

     

    SECTION    3.    Section 40-29-200of the 1976 Code is amended to read:

     

    "Section 40-29-200.    (A)    All licenses expire June thirtieth of each even-numbered year following the date of issue, unless sooner revoked or suspended.

     

    (B)    An applicant for licensure shall:

     

    (1)    demonstrate financial responsibility as required by Section 40-29-95;

     

    (2)    for a retail dealer, provide a financial statement reviewed by a licensed certified public accountant;

     

    (3)    not have engaged illegally in the licensed classification;

     

    (4)    demonstrate familiarity with the regulations adopted by the board concerning the classification for which application is made;

     

    (5)    if a corporation, have complied with the laws of South Carolina regarding qualification for doing business in this State or have been incorporated in South Carolina and have and maintain a registered agent and a registered office in this State;

     

    (6)    submit proof of registration with the Department of Revenue and submit a current tax identification number;

     

    (7)    where applicable, pass an examination administered by the board or its designated test provider in the license classification for which application is made;

     

    (8)    where applicable, complete training as prescribed by the board.

     

    (C)    A manufactured housing license is not required for a licensed real estate salesman or licensed real estate broker who negotiates or attempts to negotiate for any legal entity the listing, sale, purchase, exchange, lease, or other disposition of a used manufactured or mobile home in conjunction with the listing, sale, purchase, exchange, lease, or other disposition of real estate upon which the used manufactured or mobile home is located.

     

    (D)    The holder of a lien on a manufactured home who sells, exchanges, or transfers by lease-purchase a repossessed manufactured home subject to the lien is not subject to the provisions of this chapter if the sale, exchange, or transfer is through a licensed manufactured home retail dealer. A sale by a lienholder conducted through the foreclosure process of Section 29-3-610, et seq. may not be subject to the provisions of this chapter.

     

    (E)    A license must be issued in only one person's name who may be the individual owner, stockholder, copartner, manufactured home retail salesman or other representative of a manufactured home manufacturer, manufactured home retail dealer, or other entity required to be licensed. It is the duty of a manufactured home retail dealer and manufactured home manufacturer to conspicuously display the licenses in the established place of business. Manufactured home retail salesmen and manufactured home contractors, installers, and repairers are required to carry their licenses on their persons at all times when they are doing business in this State, and they must be shown upon request.

     

    (F)    The board may deny a license to an applicant who submits an application meeting the requirements of this chapter if the applicant has been convicted in a court of competent jurisdiction of a violent crime as defined in Section 16-1-60, a felony directly related to any aspect of the business of manufactured housing, or a felony, an essential element of which is dishonesty, reasonably related to any aspect of the business of manufactured housing.

     

    (G)    No person may be issued a license as a manufactured home retail dealer unless the person can show proof satisfactory to the board of two years' experience in the manufactured home industry or other relevant experience acceptable to the board.

     

    (H)    Notwithstanding any other provision of law, the board may not grant reciprocity or issue a license to an applicant:

     

    (1)    whose license in another state is currently restricted in any way, including probationary or other conditions, or was surrendered in lieu of disciplinary action or was revoked;

     

    (2)    who has disciplinary action pending against him in another state; or

     

    (3)    who is currently under sentence, including probation or parole, for a violation of Section 16-1-60, a felony directly related to any aspect of the business of manufactured housing, or a felony, an essential element of which is dishonesty, reasonably related to any aspect of the business of manufactured housing.

     

    (I)(1)    An applicant may be granted an apprentice salesperson license for up to one hundred twenty days. An apprentice salesperson license may not be issued to an applicant if the applicant has ever been:

     

    (a)    denied any type of license issued pursuant to this chapter;

     

    (b)    subject to suspension or revocation of a license issued pursuant to this chapter; or

     

    (c)    subject to any disciplinary action taken in accordance with this chapter.

     

    (2)    An applicant is subject to all of the requirements of this chapter and regulations promulgated pursuant to this chapter, except that an applicant is not required to complete the training, testing, and bond requirements established for a regular retail salesperson license."

     

    Surety bonds and other required security

     

    SECTION    4.    Section 40-29-230(B)(3) of the 1976 Code is amended to read:

     

    "(3)   The board, upon a finding of a violation by a licensee orthat an applicant is unable to meet the financial responsibility guidelines, may further require the licensee to increase the amount of a surety bond or other approved security. An increase must be proportioned to the seriousness of the offense, the repeat nature of the licensee's violations, or related to the financial condition of an applicant. The total amount may not exceed an additional seventy-five thousand dollars for manufacturers, fifty thousand dollars for dealers, twenty thousand dollars for salespersons, and ten thousand dollars for manufactured home contractors, installers, and repairers. The board, after one year, may reduce an increased surety bond or other approved security when satisfied that violations have been cured by appropriate corrective action and that the licensee is otherwise in good standing. The bonds cannot be reduced below amounts provided in this section."

     

    Time effective

     

    SECTION    5.    This act takes effect upon approval by the Governor.

     

    Definition of Violent Crimes under South Carolina Law –

    Section 16-1-60 of the SC Code of Laws

     

    SECTION 16‑1‑60. Violent crimes defined.

     

    For purposes of definition under South Carolina law, a violent crime includes the offenses of: murder (Section 16‑3‑10); attempted murder (Section 16‑3‑29); assault and battery by mob, first degree, resulting in death (Section 16‑3‑210(B)), criminal sexual conduct in the first and second degree (Sections 16‑3‑652 and 16‑3‑653); criminal sexual conduct with minors, first, second, and third degree (Section 16‑3‑655); assault with intent to commit criminal sexual conduct, first and second degree (Section 16‑3‑656); assault and battery with intent to kill (Section 16‑3‑620); assault and battery of a high and aggravated nature (Section 16‑3‑600(B)); kidnapping (Section 16‑3‑910); trafficking in persons (Section 16‑3‑930); voluntary manslaughter (Section 16‑3‑50); armed robbery (Section 16‑11‑330(A)); attempted armed robbery (Section 16‑11‑330(B)); carjacking (Section 16‑3‑1075); drug trafficking as defined in Section 44‑53‑370(e) or trafficking cocaine base as defined in Section 44‑53‑375(C); manufacturing or trafficking methamphetamine as defined in Section 44‑53‑375; arson in the first degree (Section 16‑11‑110(A)); arson in the second degree (Section 16‑11‑110(B)); burglary in the first degree (Section 16‑11‑311); burglary in the second degree (Section 16‑11‑312(B)); engaging a child for a sexual performance (Section 16‑3‑810); homicide by child abuse (Section 16‑3‑85(A)(1)); aiding and abetting homicide by child abuse (Section 16‑3‑85(A)(2)); inflicting great bodily injury upon a child (Section 16‑3‑95(A)); allowing great bodily injury to be inflicted upon a child (Section 16‑3‑95(B)); criminal domestic violence of a high and aggravated nature (Section 16‑25‑65); abuse or neglect of a vulnerable adult resulting in death (Section 43‑35‑85(F)); abuse or neglect of a vulnerable adult resulting in great bodily injury (Section 43‑35‑85(E)); taking of a hostage by an inmate (Section 24‑13‑450); detonating a destructive device upon the capitol grounds resulting in death with malice (Section 10‑11‑325(B)(1)); spousal sexual battery (Section 16‑3‑615); producing, directing, or promoting sexual performance by a child (Section 16‑3‑820); sexual exploitation of a minor first degree (Section 16‑15‑395); sexual exploitation of a minor second degree (Section 16‑15‑405); promoting prostitution of a minor (Section 16‑15‑415); participating in prostitution of a minor (Section 16‑15‑425); aggravated voyeurism (Section 16‑17‑470(C)); detonating a destructive device resulting in death with malice (Section 16‑23‑720(A)(1)); detonating a destructive device resulting in death without malice (Section 16‑23‑720(A)(2)); boating under the influence resulting in death (Section 50‑21‑113(A)(2)); vessel operator's failure to render assistance resulting in death (Section 50‑21‑130(A)(3)); damaging an airport facility or removing equipment resulting in death (Section 55‑1‑30(3)); failure to stop when signaled by a law enforcement vehicle resulting in death (Section 56‑5‑750(C)(2)); interference with traffic‑control devices, railroad signs, or signals resulting in death (Section 56‑5‑1030(B)(3)); hit and run resulting in death (Section 56‑5‑1210(A)(3)); felony driving under the influence or felony driving with an unlawful alcohol concentration resulting in death (Section 56‑5‑2945(A)(2)); putting destructive or injurious materials on a highway resulting in death (Section 57‑7‑20(D)); obstruction of a railroad resulting in death (Section 58‑17‑4090); accessory before the fact to commit any of the above offenses (Section 16‑1‑40); and attempt to commit any of the above offenses (Section 16‑1‑80). Only those offenses specifically enumerated in this section are considered violent offenses.

    Sent for plan approval and a process where labels can be sent electronically and printed out by the third-party inspector.    The two steps, sending a check and shipping labels, each added a day to the process, even when next day shipping services were used.  

  • 03 Sep 2013 3:06 PM | Anonymous

    2013 Manufactured Housing Legislation

    Approved by the SC Legislature 

    The SC legislature has passed S310, designed to keep bad apples and under-qualified persons out of the industry.  The new law, now in effect, also gives lenders a legal way to dispose of repossessed homes.

    IMPORTANT: This unofficial summary is designed to direct members to key features of the legislation and should not be considered legal advice.  Please consult with your legal counsel to determine how these changes in the law may impact your own company operations.

     

    Financial Requirements for New Dealers Raised      

    Agency staff can routinely approve dealer applicant who meets financial standards. Person who doesn’t meet the standards must appear before the SC Manufactured Housing Board (SCMHB).

    Raises dealer financial standards: a) from 650 to 700 credit score, and b) 150K net worth to 150K “cash or cash equivalency.”    

    SCMHB may grant license to company that doesn’t meet standards if they appear financially viable. Board can modify or restrict the activities of the licensee who doesn’t meet the standards.  

    More details

     

    Crackdown on Unlicensed Sales:

    Dealer Number Required on Advertising

    Advertising for the sale of manufactured homes located in South Carolina must include dealer license number.

    Applies to print, Internet, or email advertisements   

    More details

    Lenders Get a Legal Way to Dispose of Repossessed Homes: Sales Through Licensed Dealers

    A lienholder who sells a repossessed manufactured home through a licensed manufactured home retail dealer is not required to get its own dealer’s license. 

    License not required for direct sale by lender if part of formal foreclosure as set out in SC law in section 29-3-610.

    More details

           

    Allows Board to Deny Denies License to Persons Who Have Violated Specified Laws

    The SC Manufactured Housing Board may deny a license for a person convicted of one of the crimes listed in the code section. Or they can approve a license with conditions. Seven year time limit removed.

    The SC Manufactured Housing Board must deny a license for a person currently under sentence including probation or parole for the specified crimes.

    More details

    Full text of new law, S310


    Financial Requirements for New Dealers Raised

    Highlights

    Agency staff can routinely approve dealer applicant who meets financial standards. Person who doesn’t meet the standards must appear before the SC Manufactured Housing Board (SCMHB).

    Raises dealer financial standards: a) from 650 to 700 credit score, and b) 150K net worth to 150K “cash or cash equivalency.”    

    SCMHB may grant license to company that doesn’t meet standards if they appear financially viable. Board can modify or restrict the activities of the licensee who doesn’t meet the standards.

    In Practical Terms…

    In practical terms, this means a dealer applicant who meets the standards can have his or her license approved routinely by agency staff (as long as they don’t have other problems.)  If the applicant does not meet the standards, they can go before the licensing board and talk about their business plan and explain why they are unlikely to have problems meeting their obligations to customers.

    In the past, the majority of applicants who have gone before the board have ultimately received a license. A typical case is a person who only wants to sell used homes or a small number of homes. They can suggest or agree to build such a restriction into their license.

    Wording of the Provision

    “Section 40‑29‑95.  (A) The board shall consider the financial responsibility of an applicant as determined by this section and regulations promulgated by the board.

       (B) A retail dealer applicant who fails to possess cash or cash equivalency in an amount equal to or greater than one hundred fifty thousand dollars or a credit score of less than seven hundred must appear before the board.

       (C) Should the board license an applicant who is unable to meet the financial responsibility guidelines of this section or the regulations of the board, then the board may modify or restrict the activities of the licensee.”

    The Story Behind the Story

    Back in the 1990’s the manufactured home industry had a problem with undercapitalized dealers suddenly going out of business. Industry leaders say the financial responsibility criteria have increased stability and improved the image of the industry.

    The SCMHB adopted this and other policies over 10 years ago to help reduce future problems. The new law, S310, takes that policy and makes it a part of the official SC Code of Laws. The parent agency of the SCMHB, the SC Dept. of Labor, Licensing and Labor, told the board that they wanted the board’s policies to be enacted as official state laws approved by the SC Legislature.

     

    Crackdown on Unlicensed Sales:  Dealer Number Required on Advertising

    Highlights

    Advertising for the sale of manufactured homes located in South Carolina must include dealer license number.

    Applies to print, Internet, or email advertisements

    In Practical Terms…

    The information can be in a simple form such as DL #12345.  Television advertisements are not covered; mail-outs, newspaper, shopper advertisements and signs are.

    Wording of the Provision

    Dealer license number required in certain advertisements

    Section 40‑29‑325.    Licensed manufactured housing retail dealers shall include their dealer license number on any print, Internet, or email advertisement by the retail dealer for the sale of a manufactured home located in South Carolina.”

    The Story Behind the Story

    The purpose of the provision is to help state regulators identify unlicensed home-sellers. If an advertisement runs without a dealer number, an investigator can check whether the seller is licensed. If the company or person is unlicensed, the board can make a case against them.


    Lenders Get a Legal Way to Dispose of Repossessed Homes: Sales Through Licensed Dealers

    Highlights

    A lienholder who sells a repossessed manufactured home through a licensed manufactured home retail dealer is not required to get its own dealer’s license. 

    Does not apply to a sale conducted through the foreclosure process

    In Practical Terms…

    Adds a way for a lienholder to legally sell a repossessed chattel home – through alicensedmanufactured home dealer. Removes the need for a lienholder to get a dealers licensed. These are theonlytwo legal ways for a lender to sell (or offer) more than two manufactured homes in any 12-month period.

    Even if the lender is licensed as a retailer dealer, laws already on the books say the lender still cannot sell their repostoorthroughan unlicensed dealer or broker.

    Wording of the Provision

    Section 40-29-200.    (D)    The holder of a lien on a manufactured home who sells, exchanges, or transfers by lease-purchase a repossessed manufactured home subject to the lien is not subject to the provisions of this chapter if the sale, exchange, or transfer is through a licensed manufactured home retail dealer. A sale by a lienholder conducted through the foreclosure process of Section 29-3-610, et seq. may not be subject to the provisions of this chapter.

    The Story Behind the Story

    This provision fixes a situation where a lender / lienholder until now could only dispose of repos by getting a dealers license. Some lenders apparently have been selling homes to or through unlicensed sellers. With the SC Manufactured Housing Board planning a major crackdown on unlicensed sales that practice would not be an option for long. This legislation resolves the issue before it becomes a major problem for lenders and gives the lienholder a readily available legal method to sell their repossessed homes

     

    Allows Board to Deny License to Persons Who Have Violated Specified Laws

    Highlights

    The SC Manufactured Housing Board may deny a license for a person convicted of one of the crimes listed in the code section.

    The SC Manufactured Housing Board must deny a license for a person currently under sentence including probation or parole for those crimes.

    In Practical Terms…

    The licensing board can deny a person a license if they have been convicted of a large number of major crimes as well as other felonies “related to any aspect of the business of manufactured housing.” The applicant is totally disqualified while under probation or parole for the same crimes. Disqualifying offenses include violent and other very serious crimes such as large scale drug trafficking, 2nddegree arson, 2nddegree burglary as listed in SC Code Section 16-1-60.

    Wording of the Provision

    “(F)    The board may deny a license to an applicant who submits an application meeting the requirements of this chapter if the applicant has been convicted in a court of competent jurisdiction of a violent crime as defined in Section 16-1-60, a felony directly related to any aspect of the business of manufactured housing, or a felony, an essential element of which is dishonesty, reasonably related to any aspect of the business of manufactured housing.

     (H)    Notwithstanding any other provision of law, the board may not grant reciprocity or issue a license to an applicant: 

     (3)    who is currently under sentence, including probation or parole, for a violation of Section 16-1-60, a felony directly related to any aspect of the business of manufactured housing, or a felony, an essential element of which is dishonesty, reasonably related to any aspect of the business of manufactured housing.”

    The Story Behind the Story

    Previously the manufactured housing law prohibited licensing for persons convicted of a broader collection of crimes but did not allow consideration of convictions more than seven years old. The new provision narrows the types of crimes that can be considered but eliminates the seven-year cut-off. 

  • 17 Jul 2012 3:38 PM | Anonymous
    Governor Appoints Industry Leader Al Randall and MH Resident Adam Reese to SC Manufactured Housing Board  

    Governor Nikki Haley has named banking executive Al Randall (right) to serve on the SC Manufactured Housing, the state commission which regulates the industry.

    Mr. Adam Reese (left) will serve on the SCMHB as a representative of the state's manufactured home residents. He is the proud owner of a manufactured home purchased from Shipley Homes in West Columbia.
  • 12 Jul 2012 3:24 PM | Anonymous

    SC Congressmen Tim Scott and Joe Wilson Announce They Will Sponsor Key Legislation for the MH Industry in Washington 

    At the request of MHISC, US Rep. Tim Scott (left) and US Rep. Joe Wilson (right,) both industry supporters, have signed on to sponsor  H.R. 3849, the "Improving Access to Manufactured Housing Act."

    This is important federal legislation  designed to fix problems created by the SAFE  Act and the Dodd Frank Act. The "Dodd Frank"  legislation would make many chattel loans unaffordable.
  • 05 Jun 2012 3:52 PM | Anonymous
    Governor Appoints New Director to Oversee Licensing Boards


    The licensing boards that govern most MHISC members have a new director. Gov. Haley appointed Holly Gillespie PisariK as head of the SC Dept of Labor, Licensing and Regulation. That cabinet agency includes the manufactured housing, modular, and residential builder boards. Ms. Gillespie is an attorney who worked as a top lawyer with-in LLR. She graduated from Winthrop and USC Law School.

  • 09 May 2012 3:56 PM | Anonymous

    New Law Guaranteeing Placement of Modular Homes Now on the Books

    Governor Nikki Haley signed into law legislation guaranteeing the placement of residential modular homes that have been used as display models.

    The legislation, drafted by MHISC / SCMHI was introduced by industry supporter Alan Clemmons, a state representative from Horry County. The SC Modular Housing Institute is the modular division of MHISC.

    The Customer Can Buy the Home with Confidence

    The legislation will benefit member companies and homebuyers. It comes into play when a home is built to a particular year’s edition of the building code and then sold after a new edition has been adopted. The customer can buy the home with confidence that the home can be placed.

    MHISC members can contact the association for full details and requirements under the new law.

  • 13 Apr 2012 4:10 PM | Anonymous

    MHISC Board Members Personally Kick in $10,000 for Industry Political Donations

    MHISC’s leadership often preaches the importance of maintaining a strong Political Action Committee. That’s the association’s political war chest which MHISC uses to support the candidates who support the manufactured home industry.

    Members are urged to sponsor and play in association golf tournaments and make contributions along with their annual dues

    Put Your Money Where……

    The MHISC Board put its money where its mouth is by contributing or raising $10,000 for political contributions, according to Political Action Committee Chair Trey Ledbetter.

    “For a 20-person board, that’s a lot of money,” Ledbetter said. Some board members secured large contributions from their own companies; others raised money from friends in the industry; others took the money out of their own pocket.”

    --------

    Many board members took the money

    out of their own pocket

    --------

    The industry will face tough issues at the SC Statehouse this year, Ledbetter said, issues that could dramatically impact sales.

    “We have to be politically strong and have a high profile at the Statehouse this year,” Ledbetter said. “We’re going to be asking members to give generously. We want members to know that the leadership takes these issues seriously and we’ve been wiling to do our part financially."

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