(ii)Anynewresidentialstructureforwhichtheprojectvalueisfiftythousand dollars or more when the propertyis used for residential purposes.

(iii) Any improvements or repairs to an existing residential structure for Page 2 of 48 Coding:

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398 ENROLLED which the project value is seven thousand five hundred dollars or more.

(iv)Anymoldremediationforwhichtheprojectvalueisseventhousandfive hundred dollars or more.

(b) The term "contractor"includes persons who receivean additional fee for the employment or direction of labor, or any other work beyond the normal architectural or engineering services.

(c) A contractor holding a license in the major classification of hazardous materials, or any subclassifications thereunder, is defined in terms of work performed for which the project value is one dollar or more.

(d) "Contractor" does not mean any person, supplier, manufacturer, or employee of such person who assembles, repairs, maintains, moves, puts up, tears down, or disassembles any patented or proprietary equipment supplied by such person to a contractor to be used solely by the contractor for a construction undertaking.

"Proprietary" means specific and specialized equipment installation, manufacturingprocesses, used, or components that are protected from disclosure to third parties by the owner or manufacturer of the equipment.

(5) "Controlled access" means the complete building or facility area under direct physical control within which an unauthorized person is denied access.

(6)"Electricalcontractor"means anyperson who undertakesto, attempts to, or submits a price or bid or offers to construct, supervise, superintend, oversee, direct, perform, or in any manner assume charge of the construction, alteration, repair,improvement,movement,demolition,puttingup,tearingdown,orfurnishing labor together with material and equipment, or installing the same for the wiring, fixtures,or appliancesfor the supplyofelectricityto anyresidential,commercial,or other project, for which the project value is ten thousand dollars or more.

This Paragraph is not deemed or construed to limit the authority of a contractor, general contractor, or residential contractor, as those terms are defined in this Section, nor to require such individuals to become an electrical contractor.

(7) "Employee" means a worker whose employer deducts taxes from his wages and reports his annual earnings to the Internal Revenue Service using a W-2 Page 3 of 48 Coding:

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398 ENROLLED form.

(8)"Executivedirector"meansthepersonappointedbytheboardtoserveas thechiefoperatingofficerinconnectionwiththeday-to-dayoperationoftheboard's business.

The executive director is the appointing authorityfor all employees of the board.

(9)"Extraordinarycircumstances"meansafederallydeclareddisaster, a gubernatorially declared disaster or emergency, a pandemic, or an illness or emergency medical condition.

(10)(a) "Factory-built housing developer" means any person, group of persons, firm, partnership, corporation, association, company, or legal entity that sells, leases, or offers for sale or lease to the public, a lot together with the sale of a manufactured home permanently installed and fixed on a foundation on the lot and designed as a single-family residence.

(b) "Factory-built housing developer" does not include any of the following:

(i) An individual selling his personal residence.

(ii) A real estate broker or real estate salesman retained by a person to sell a manufacturedhometogetherwithalotonwhichthemanufacturedhome has been installed and fixed on a foundation.

(iii)Afederallyinsuredfinancialinstitution,itssubsidiaries,oraffiliates.

(11) "Factory-built housing dealer" means any person who is engaged, wholly or in part, in the business of buying, selling, distributing, brokering, or exchanging an interest in a manufactured or modular home with the intent to make a profit, monetary gain, or any thing of economic value.

Any person who buys,sells,distributes, brokers,orexchangesan interestinmorethanonesuch manufacturedormodularhomeinanytwelve-monthperiodshallbepresumed to be a factory-built housing dealer.

"Factory-built housing dealer" does not include any of the following:

(a) A public officer while performing his official duties.

(b) A receiver, trustee, administrator, executor, guardian, or any other Page 4 of 48 Coding:

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398 ENROLLED person appointed by or acting pursuant to a judgment or order of any court.

(c)Afederallyinsuredfinancialinstitution,itssubsidiaries,oraffiliates;

afinancecompany;oranyotherloanagency,whoseprincipalplaceofbusiness islocatedinLouisianathatacquiresmanufacturedhousing asanincidenttoits regular business.

(d) A developer, a contractor licensed as a factory-built housing developer as provided in this Section, or a real estate broker or real estate salesman retained by a person to sell a manufactured home together with immovable property on which the manufactured home is located.

(e)(i) A manufactured housing community or park owner that sells less than three manufactured homes in a twelve-month period, provided the communityorparkownerhasownedandleasedthemanufacturedhomebeing sold for more than one year.

(ii) Notwithstanding Item (e)(i) of this Subparagraph, a manufactured housingcommunityorparkownermaysellmorethanthreeusedmanufactured homes in any twelve-month period if any used manufactured home sold after the original three used manufactured homes meets the following:

(aa) Twenty years old or older at the time of sale.

(bb) Sold for a total sale price of ten thousand dollars or less, including delivery and installation.

(cc) Habitable upon completion of delivery and installation.

(dd) Sold with a thirty-day habitability warranty.

(9)(12)(a) "General contractor" means a person who contracts directly with theowner.Theterm"generalcontractor"includestheterm"primarycontractor"and wherever used in this Chapter or in regulations promulgated thereunder "primary contractor" means "general contractor".

(b) "General contractor" does not mean any person, supplier, manufacturer, oremployeeofsuchpersonwhoassembles,repairs,maintains,moves,putsup,tears down, or disassembles any patented or proprietary equipment supplied by such person to a contractor to be used solely by the contractor for a construction Page 5 of 48 Coding:

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398 ENROLLED undertaking.

(10)(13) "Home improvement" means the reconstruction, alteration, renovation,repair,modernization,conversion,improvement,removal,ordemolition, or the construction of an addition to any preexisting residential structure which building is used or designed to be used as a residence or dwelling unit, or to structures which are adjacent to such residence or building for which the project valueisseventhousandfivehundreddollarsormore."Homeimprovement"doesnot include services rendered gratuitously.

(11)(14)"Homeimprovementcontractor"meansanypersonwhoundertakes or attempts to undertake or submits a price or bid or offers to construct, supervise, superintend, oversee, direct, perform, or in any manner assume charge of a home improvement project for which the project value is at least seven thousand five hundreddollarsbutlessthanfiftythousanddollars.Ahomeimprovementcontractor shall not performanystructuralworkthatis integraltothestructuralintegrityofany new or existing structure, includingbut not limited to footings, foundations, outside walls, skeleton, bearing columns and interior load bearing walls, floor slabs, or roofing systems to any type.

(12)(15) "License" means any form of license or registration the board is authorized to issue in accordance with this Chapter.

(16) "Manufactured home" and "manufactured housing" means a factory-built, residential dwelling unit constructed to standards and codes, as promulgated by the United States Department of Housing and Urban Development (HUD), pursuant to the National Manufactured Housing Construction and Safety Standards Act of 1974, 42 U.S.C.

5401 et seq., as amended.Theterms"manufacturedhome"and"manufacturedhousing"may be used interchangeably and apply to structures bearing the permanently affixed seal of the United States Department of Housing and Urban Development.

(17)"Manufactured housing code" means the National Manufactured Home Construction and Safety Standards Act of 1974, 42 U.S.C.

5401 et seq., Page 6 of 48 Coding:

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398 ENROLLED asamended,andfederalregulationspromulgatedpursuantthereto,alongwith any construction or installation-related standards adopted by the residential subcommittee of the State Licensing Board for Contractors.

(18) "Manufacturer" means any person who manufactures manufactured or modular housing.

(13)(19) "Mechanical contractor" means any person who undertakes to, attempts to, or submits a price or bid or offers to construct, supervise, superintend, oversee, direct, perform, or in any manner assume charge of the construction, alteration,repair,improvement,movement,demolition,puttingup,tearingdown,or furnishing labor, or furnishing labor together with material and equipment, or installingthesamefortheconstruction,installation,maintenance,testing,andrepair of air conditioning, refrigeration, heating systems, and plumbing for all residential, commercial, and industrial applications as well as ventilation systems, mechanical work controls, boilers and other pressure vessels, steam and hot water systems and piping, gas piping and fuel storage, and chilled waterand condensingwatersystems and piping, including but not limited to any type of industrial process piping and related valves, fittings, and components, for which the project value is ten thousand dollars or more.

This Paragraph is not deemed or construed to limit the authorityof a contractor, general contractor, or residential contractor, as those terms are defined in this Section, nor to require such individuals to become a mechanical contractor.

(20)"Mobilehome"meansafactory-built,residentialdwellingunitbuilt to voluntary standards prior to the passage of the National Manufactured Housing Constructionand SafetyStandardsActof 1974,42U.S.C.5401etseq.

"Mobile home" includes and is interchangeable with the term"house trailer", but does not include the term "manufactured home".

(21) "Modular home" and "modular housing" mean a factory-built, residentialdwellingunit built totheInternational Residential Codeasadopted by the Louisiana State Uniform Construction Code Council.

(22)"Modularhousingcode"meanstheInternationalResidentialCode as adopted by the Louisiana State Uniform Construction Code Council.

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398 ENROLLED (14)(23) "Mold remediation contractor" means any person who engages in removal,cleaning, sanitizing,demolition,orothertreatment,includingpreventative activities,ofmoldormold-contaminatedmatterthatwasnotpurposelygrownatthat location for which the project value is seven thousand five hundred dollars or more.

Mold remediationapplies onlytotheregulationofmold-relatedactivitiesthataffect indoor air qualityand does not applyto routine cleaning when not conducted for the purpose of mold-related activities intended to affect indoor air quality.

(15)(24) "Person" means any individual, firm, partnership, association, cooperative, corporation, limited liability company, limited liability partnership, or any other entity recognized by Louisiana law;

and whether or not acting as a principal, trustee, fiduciary, receiver, or as any other kind of legal or personal representative, or as a successor in interest, assignee, agent, factor, servant, employee, director, officer, or any other representative of such person;

or any state or local governing authority or political subdivision.

(16)(25) "Plumbing contractor" means any person who installs, maintains, and repairs potable and nonpotable tap water or sewer systems within a building structure or residential structure for which the project value is ten thousand dollars or more.

(17)(26) "Principal" means an owner, shareholder, or an officer or director of a corporation;

a member or manager of a limited liability company;

a general partner of a partnership;

a sole proprietor;

a trustee;

or a full-time employee with similar operational control or significant influence with respect to any person as determined by the board.

(18)(27) "Qualifying party" means a natural person designated by the contractor to represent the contractor for the purpose of complying with the provisions of this Chapter including but not limited to meeting the requirements for the initial license and any continuation thereof.

(19)(28)(a)"Residentialcontractor"meansanypersonwhoconstructsafixed building or structure for sale or use by another as a residence or who, for a price, commission,fee,wage,orothercompensation,undertakesorofferstoundertakethe Page 8 of 48 Coding:

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398 ENROLLED constructionorsuperintendingoftheconstructionofanyresidentialstructurewhich is not more than three floors in height, to be used by another as a residence, for which the project value is fifty thousand dollars or more.

The term "residential contractor" includes all persons who receive an additional fee for the employment or direction of labor, or any other work beyond the normal architectural or engineering services.

(b) "Residential contractor" includes both of the following:

(i) Any person bidding or performing home improvement for which the project value is seven thousand five hundred dollars or more.

(ii) Any person performing the installation of a modular home with a value equal to or greater than fifty thousand dollars for which the total project value shall not include the cost of the component parts of the modular home in the condition each part leaves the factorypursuant to R.S.

40:1730.71.

(c)"Residentialcontractor"doesnot include anyperson engagedin building residential structures that are built to the United States Department of Housing and Urban Development's construction standards for manufactured housing as outlined at 42 U.S.C.

5401 et seq., or mounted on a metal chassis and wheels.

(20)(29) "Residential roofing" means the construction, alteration, repair, improvement, demolition, putting up, tearing down, furnishing labor, or furnishing labor together with materials or equipment, or the installation of materials or equipment for any phase of roofing specific to a residential structure for which the project value is seven thousand five hundred dollars or more.

(21)(30) "Residential roofing contractor"means anyperson who undertakes to, attempts to, or submits a price or bid, or offers to construct, supervise, superintend, oversee, direct, perform, or in any manner assume charge of a residentialroofingprojectforwhichtheprojectvalueisseventhousandfivehundred dollars or more.

(22)(31) "Residential structure" means a building or structure that is used primarily for occupancy by a person as a residence.

Such structures or buildings include but are not limited to single family dwellings and duplexes which are not Page 9 of 48 Coding:

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398 ENROLLED more than three floors in height and structures that are part of or adjacent to the building or structures to be used as a residence.

A residential structure more than three floors in height may be built by a person holding a building construction and residential construction license.

(32) "Residential subcommittee" means the Residential Contractors Subcommittee of the State Licensing Board for Contractors.

(33)"Salesman"meansanypersonemployedbyafactory-builthousing dealerorfactory-builthousing developerforpurposes of selling manufactured or modular housing to the public.

(34)"Seal"or"label"means thepermanently affixed deviceorinsignia issued by the United States Department of Housing and Urban Development (HUD) or other authority having jurisdiction that is displayed on the exterior of a factory-built manufactured or modular home, certifying that the home is in compliance with the manufactured housing code or the modular housing code.

(23)(35)"Subcontract"meansanagreementtoperformaportionofthescope of work contained in the principal contract including the entire cost of labor and materials of that part of the principal contract which is performed by the subcontractor.

(24)(36)(a)"Subcontractor"meansapersonwhocontractstoperformascope of work that is a part of the scope of work contained in the principal contract.

(b) "Subcontractor" does not include any person, supplier, or manufacturer who assembles, repairs,maintains, moves, puts up, tearsdown,or disassembles any patentedorproprietaryequipmentsuppliedbysuchpersontoacontractorto beused solely by the contractor for a construction undertaking.

(37)"Transporter"meansanindividualwhotransportsamanufactured or modular home to a site of installation but does not perform any blocking or anchoring of the home, however, a transporter is allowed to put blocks under the hitch on the tongue of the frame.

* * * Page 10 of 48 Coding:

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398 ENROLLED §2155.

Residential Contractors Subcommittee;

membership;

terms;

powers;

duties A.

There is herebyestablished within the board the Residential Contractors Subcommittee, hereinafter referred to as "residential subcommittee", consisting of five nine members who shall be residents of this state and who have been actively engaged in residential contracting or the manufactured and modular housing industryforatleastfiveyearspriortoappointmentbythegovernor.Threemembers of the residentialsubcommitteeshall be appointed bythe governor from a list of not less than ten names submitted by the Louisiana Homebuilders Association as certifiedbyitspresidentandsecretary.Onememberoftheresidentialsubcommittee shall befromandappointedto representthefirstcongressionaldistrict, onemember shall be from and appointed to represent the second congressional district, one membershallbefromandappointedtorepresentthethirdcongressionaldistrict,one member shall be from and appointed to represent the fourth and fifth congressional districts, and one member shall be from and appointed to represent the sixth congressional district.

Three members of the residential subcommittee shall be appointed by the governor from a list of not less than ten names submitted by the Louisiana Manufactured Housing Association as certified by its president and secretary.One memberof the residential subcommitteeshall beappointed bythegovernortorepresenteachcongressionaldistrict.Twomembersshallbe appointed by the governor as at-large members.

* * * PART II.

FACTORY-BUILT HOUSING §2176.1.

Short title ThisPartshallbeknownandmaybecitedas"UniformStandardsCode for Manufactured and Factory-Built Housing".

§2176.2.

Establishment of uniform standards codes All new manufactured or modular homes, as defined in R.S.

37:2150.1, which are sold or offered for sale in this state shall be in compliance with the manufacturedhousingcodeorthemodularhousingcodeandtherequirements of this Part.

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398 ENROLLED §2176.3.

License required;

qualifications;

application;

issuance;

transfer;

criminal history record information;

bond A.(1) A manufacturer, factory-built housing dealer, or salesman within orwithoutthisstateshall not sell orofferforsalein this stateanymobilehome, modular home, or manufactured housing unless he has obtained a valid manufacturer's,factory-builthousingdealer's,orsalesman'slicense,whichever is applicable, from the residential subcommittee as provided in this Part.

(2)Afactory-builthousingdevelopershallnotsellorofferforsaletothe public any manufactured or modular home unless he has obtained a license from the residential subcommittee, as provided in this Part.

An employee of a factory-built housing developer shall not offer manufactured or modular housing forsaletothegeneral public withoutfirstobtaining asalesman license or being a licensed real estate agent.

(3) A manufacturer, within or without this state, shall not sell, or offer for sale to a person, any manufactured or modular housing for resale to the public unless the person has obtained a valid factory-built housing dealer's or factory-built housing developer's license from the residential subcommittee as provided in this Part.

(4) A license shall be issued when the requirements of this Part are met as herein provided.

(5) The residential subcommittee may, by rule and regulation promulgatedinaccordancewiththeAdministrativeProcedureAct,providefor staggeredrenewalandcollectionoftheannual licensefeesimposedpursuantto R.S.

37:2176.6.

(6) A factory-built housing dealer or factory-built housing developer shall not offer for sale to the public any new manufactured or modular home unless the manufacturer of the home has obtained a valid manufacturer's license.

B.Applicationforamanufacturer'slicenseshallbemadeupontheform prescribed by the residential subcommittee and shall contain all of the Page 12 of 48 Coding:

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398 ENROLLED following:

(1) The name and address of the applicant.

(2) The name and address of each partner if the applicant is a partnership.

(3) The names of the principal officers and the state in which incorporated, if the applicant is a corporation.

(4)Theplaceorplaceswheretheapplicant'sbusinessistobeconducted.

(5) Any other reasonable information as may be required by the residential subcommittee.

C.(1)Afactory-builthousingdealer's,factory-builthousingdeveloper's, or salesman's license shall not be issued to any person who has not attainedthe age of eighteen years.

(2) Each applicant for an original factory-built housing dealer's or developer's license shall havefirstservedactivelyforoneyearas a salesman or shall have purchased an existing factory-built housing dealer's business.

(3) Each retailer and developer shall be required to have at least one licensed salesman.

D.

Every application for license shall be verified by the oath or affirmation of the applicant if an individual or if the applicant is a partnership or corporation, by a partner or officer of the partnership or corporation.

The applications for licenses shall be in the form and detail as prescribed by the residential subcommittee.

E.(1)Theapplicant,eachprincipal,andeachdesignatedqualifyingparty shallcompleteanapplicationandpassabackgroundinvestigation.Anapplicant shall provide all information or documentation requested by the board, including but not limited to documentation relative to identification, criminal history, and financial history.

The board may deny approval of the applicant, any of its principals, or any qualifying party for cause.

The background investigation shall be conducted in relation to all of the following:

(a) Fiduciary or monetary matters including but not limited to any Page 13 of 48 Coding:

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398 ENROLLED bankruptcy, judgment, insolvency, or lien.

(b) Any criminal offense resulting in a conviction, guilty plea, or plea of nolo contendere.

(2) The residential subcommittee may deny approval of an applicant, a principal, or a designated qualifying party for any of the following reasons:

(a) For cause.

(b)Theapplicant,principal,ordesignatedqualifyingpartydoesnothave an established place of business that is used or will be used for the purpose of selling, displaying, and offering for sale or dealing in manufactured housing.

(c) For a violation of any provision of this Part.

F.(1)Anymanufacturerorfactory-builthousingdealerbeforeremoving any one or more of his places of business or opening any additional place of business shall apply to the residential subcommittee and obtain a separate license for each place of business to which he intends to move and for each additionalplaceofbusinessandpaytheapplicablefee,asprovidedinthisPart, for each place of business to which he moves and for each additional place of business.

(2)Alicensedsalesmantransferringemploymentfromonefactory-built housing residential contractor to another factory-built housing dealer shall apply to the residential subcommittee for a transfer of his salesman's license withinfifteendaysafterthedateofhistransferofemploymentandshallpaythe applicable fee as provided in this Part.

The application for transfer shall be in a form prescribed by the residential subcommittee.

G.(1) Except as provided for in Paragraph (2) of this Subsection, beginning January 1, 1983, every license issued pursuant to this Part shall be issued annually and shall expire on December thirty-first following the date upon which it was issued.

Each license issued shall be renewed annually, and failure to apply for a renewal license by January first of the ensuing license period shallautomaticallysuspend thelicenseuntil arenewal licenseis applied for.

During the period of suspension, any practice by the licensee under the Page 14 of 48 Coding:

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398 ENROLLED colorof suchlicenseshallbedeemedaviolationofthisPart.Applicationsmade duringtheperiodofsuspensionshallrequirethepaymentofafeeequaltotwice the amount of the license renewal fee as set forth in R.S.

37:2176.6.

If a license is not renewed within a period of one year from the date of its expiration, it is no longer eligible for renewal.

An application for a new license may be submitted and upon approval, a new license shall be issued.

Renewal of a factory-built housing dealer license shall require each factory-built housing dealer to certify that he has maintained a record of providing satisfactory service to consumers.

(2)BeginningJanuary1,2020,theresidentialsubcommitteemay,byrule and regulation promulgated in accordance with the Administrative Procedure Act, provide for staggered renewal and collection of the annual license fees imposed pursuant to R.S.

37:2176.6.

Any rule and regulation promulgated pursuant to the provisions of this Paragraph providing for the staggered issuance and renewal of a license shall require that the license be renewed twelve months after issuance annually, and failure to apply for the renewal licenseshall automaticallysuspend thelicenseuntilarenewal licenseis applied for.Duringtheperiodofsuspensionanypracticebythelicenseeunderthecolor of such license shall be deemed a violation of this Part.

Applications made duringtheperiodofsuspensionshallrequirethepaymentofafeeequaltotwice the amount of the license renewal fee as set forth in R.S.

37:2176.6.

If a license is not renewed within a period of one year from the date of its expiration, it is no longer eligible for renewal.

An application for a new license may be submitted and upon approval, a new license shall be issued.

Renewal of a factory-built housing dealer's license shall require the factory-built housing dealer to certify that he has maintained a record of providing satisfactory service to consumers.

H.(1) The residential subcommittee may request and obtain from the DepartmentofPublicSafetyandCorrections,BureauofCriminalIdentification and Information, hereinafter referred to as the "bureau", criminal history Page 15 of 48 Coding:

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398 ENROLLED record information as defined in R.S.

37:763.1 of any person applying for any licensethattheresidentialsubcommitteeis authorizedbylaw toissueandshall pay a fee as specified in R.S.

15:587.

(2) The applicant shall submit fingerprints and other identifying information to the residential subcommittee, which shall then submit that informationtothebureau,andthebureaushall,uponrequestoftheresidential subcommittee and after receipt of the fingerprint card and other identifying information from the residential subcommittee, make available to the residentialsubcommitteeallarrestandconvictioninformationcontainedinthe bureau's criminal history record and identification files pertaining to the applicant.

(3) The residential subcommittee may charge and collect from an applicant for any license which the board is authorized to issue, in addition to all other applicable fees and costs, the amount incurred by the residential subcommitteeinrequestingandobtaining criminalhistoryrecordinformation of that applicant.

I.(1) All factory-built housing dealers and factory-built housing developersshallannuallytakearesidentialsubcommittee-approvedcontinuing education course.

The individual required to take the continuing education courseistheindividual licenseholder;forcorporations,anofficerormanager;

forpartnerships, a partner or manager.

The residential subcommitteeshall set the educational requirements pursuant to R.S.

37:2155(G)(3).

(2)Allfactory-builthousingdealersandfactory-builthousingdevelopers shall provide annually along with the license application a surety bond in the amount of two hundred fifty thousand dollars or post a fifty thousand dollar irrevocable letter of credit with the residential subcommittee for consumer protection and proof of net worth.

(3) Any person applying for an original factory-built housing dealer's licenseor an original factory-built housing developer's license afterJanuary 1, 2004, shall take a class and pass an accompanying test prior to receiving his Page 16 of 48 Coding:

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398 ENROLLED original license.

The residential subcommittee shall develop the class and test.

Thefeeforthefactory-builthousingdealerandfactory-builthousingdeveloper class and test shall be set by rule and shall not exceed one hundred dollars.

J.

The residentialsubcommitteeshallrequirethatfactory-builthousing dealers,residentialcontractors,factory-builthousingdevelopers,transporters, and installers show proof of continued and ongoing general liability insurance coverage of at least five hundred thousand dollars.

Manufacturers shall be required to show proof of continued and ongoing liability insurance coverage of at least one million dollars.

§2176.4.

Manufactured home factory-built housing dealers manufacturer relationship;

warranty work;

requirements upon termination;

penalty;

indemnity A.(1) If a factory-built housing dealer ceases to do business with a manufacturer due to any of the following:

the manufacturer refuses to honor an agreed-upon sales territory;

the manufacturer refuses to pay warranty claims within sixty days or perform major warranty work beyond the scope expected of a factory-built housing dealer within sixty days;

or the manufacturer can no longer deliver the product requested by the factory-built housing dealer in a reasonable and timely manner, then after notice thereof to themanufacturerbyregisteredorcertifiedmailreturnreceiptrequestedwithin thirty days thereafter, the manufacturer, at a minimum, shall repurchase all new and unused manufactured homes of the current or immediately prior model year and parts on hand that have not been damaged or substantially altered to the prejudice of the manufacturer while in the possession of the factory-built housing dealer and all required demonstrators.

(2) The manufacturer shall make the required repurchase after the factory-built housing dealer terminates his franchise, sales, or any other contractual agreement, and within sixty days of the submission by the factory- built housingdealertothemanufacturer,byregisteredorcertified mail return receipt requested, of a final inventory of manufactured homes and parts on Page 17 of 48 Coding:

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398 ENROLLED hand.

(3) Failure to make the repurchase without just cause shall subject the manufacturertoa penalty of oneand one-half percentpermonth, orafraction thereof, of the inventory value of returnable manufactured homes and parts, payable to the factory-built housing dealer, until repurchase is made.

B.Anywarrantyworkperformedbyamanufacturedhomefactory-built housing dealer pursuant to a manufacturer's warranty shall be reimbursed by themanufacturerwithinsixtydaysofinvoicingforthoseservicesatalaborrate equal to but not in excess of the labor rate in effect at that retail dealership at thetimethatthewarrantyworkisperformed.Thereimbursementamountshall also include reasonable costs for parts and mileage related to the performance of the warranty work.

C.

Notwithstanding the terms of any franchise, sales, or other contractual agreement, each manufacturer shall indemnify and hold harmless its factory-built housing dealer against any judgment for damages, including but not limited to court costs and reasonable attorney fees of the factory-built housing dealer, arising out of complaints, claims, or lawsuits including but not limited to strict liability, negligence, misrepresentation, express or implied warranty, or rescission of sale to the extent that the judgment arises out of alleged defective or negligent manufacture, assembly, or design of manufactured homes, parts, or accessories or other functions of the manufacturer,whicharebeyondthecontrolofthefactory-builthousingdealer.

D.Priortomaking achangeinanareaofresponsibility describedin the franchise, sales, or any other contractual agreement or sales and service agreementwitha factory-built housing dealer,thefranchisorormanufacturer shall give the factory-built housing dealer no less than sixty days prior written notice, by certified or registered mail.

§2176.5.

Residential subcommittee A.Thepowersanddutiesoftheresidentialsubcommitteeincludebutare not limited to the following:

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398 ENROLLED (1) Licensing of manufacturers, factory-built housing dealers, factory- built housing developers, salesmen, transporters, and installers as provided in this Part and Part II-A of this Chapter.

(2) Working with consumers, manufacturers, factory-built housing dealers,factory-builthousingdevelopers,salesmen,transporters,andinstallers to hear complaints and make determinations relating to construction defects, warranty issues, service complaints, and other matters which are not set forth pursuant to 24 CFR Parts 3280 and 3282.

The residential subcommittee may, prior to convening a formal hearing, establish a date for mediation and in its discretion, the residential subcommittee may defer its authority to conduct a hearingand rendera determination toan independent third-partymediatorto hearandresolvecomplaintsbroughtbeforetheresidentialsubcommittee.Ifthe complaintisnotresolvedthroughmediation,theresidentialsubcommitteemay appointathree-memberpaneltoconductaninitialreviewofthecomplaint.All costs associated with such mediation shall be borne by the board.

(3) Establishing an alternative dispute resolution process for manufactured and modular home consumers in this state.

The residential subcommitteemaychargeareasonablefeetodefraythecostofestablishingthe alternative dispute resolution process.

(4)Requiringalllicenseestomaintaintheirrecordsforaperiodofthree years and to keep their recordsopen to inspection by any authorized employee of the residential subcommittee during reasonable hours.

(5) Issuing cease and desist orders, and subpoenaing individuals and records as it deems necessary.

(6)TakingactionagainstanypersonorlicenseethatviolatesthisPartor Part II-A of this Chapter.

(7) Reviewing and approving continuing education course work, required pursuant to this Part or Part II-A of this Chapter, offered in another state,ifthatotherstateallowsforreciprocityofLouisianacontinuingeducation course work.

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398 ENROLLED (8) Establishing a mandatory uniform written transportation and installationcontractthatisrequiredtobeusedbyalltransportersandinstallers when moving or installing a manufactured or modular home in this state.

Transporters and installers are required to give their customers a copy of the contract,itemizingallservicesbeingprovidedandthecostassociatedwiththose services, prior to beginning work or moving a home.

These records shall be maintainedforatleastthreeyearsandshallbemadeavailabletotheresidential subcommittee for inspection.

Transporters who are only passing through the state, or are delivering a home from a manufacturer to a licensee of the residentialsubcommittee,arenotrequiredtocomplywiththeprovisionsofthis Paragraph.

The residential subcommittee may adopt rules in accordance with theAdministrativeProcedureActasarenecessarytoimplementtheprovisions of this Paragraph.

(9)Adoptingrulesgoverningtherepairsorrenovationsofmanufactured homes.

(10) Conducting meetings by remote access.

B.Allexpensesincurredbytheresidentialsubcommitteeincarryingout the provisions of this Part shall be proper charges against the Residential Subcommittee Manufactured Housing Dedicated Fund Account.

§2176.6.

Fees;

disposition;

creation of a dedicated fund account A.

The residential subcommittee shall impose and collect the following schedule of fees:

(1) Original manufacturer's license $250.00 (2) Manufacturer's renewal license $250.00 (3) Original retailer's license $150.00 (4) Factory-built housing dealer's renewal license $150.00 (5) Original salesman's license $50.00 (6) Salesman's renewal license $50.00 (7) Transfer of salesman's license $5.00 (8) Factory-built housing dealer's branch office license $75.00 Page 20 of 48 Coding:

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398 ENROLLED (9) Factory-built housing developer's original or renewal lice$150.00 B.(1) There is hereby established in the state treasury, as a dedicated fundaccount,theResidentialSubcommitteeManufacturedHousingDedicated Fund Account, hereinafter referred to in this Section as the "account".

(2)AfterallocationofmoneytotheBondSecurityandRedemptionFund as provided in Article VII, Section (9)(B) of the Constitution of Louisiana, the statetreasurershall deposit into theaccountall fines orfeescollectedpursuant to the provisions of this Part, Part II-A, and Part III of this Chapter.

Monies deposited into the account shall be categorized as fees and self-generated revenuesrelatedtotheexecutivebudgetand itssupporting documentsandany appropriation bills.

(3) Monies in the account shall be appropriated to the office of the governorfortheactivitiesoftheresidentialsubcommitteeinimplementingand enforcingthemanufacturedhousingprovisionsofthisPart,PartII-A,andPart III of this Chapter.

(4)Moniesintheaccountshallbeinvestedinthesamemannerasmonies inthestategeneralfund.Interestearnedoninvestmentofmoniesintheaccount shall be creditedtothe account.Unexpended and unencumbered monies in the account at the end of the fiscal year shall remain in the account.

§2176.7.

Motor vehicle inspection;

exception TheprovisionsofChapter7ofTitle32oftheLouisianaRevisedStatutes of 1950, relative to inspections do not apply to manufactured or modular housing.

§2176.8.

Serial numbers on manufactured and modular homes A serial number shall be stamped by the manufacturer on the header plateorfrontcrossmemberoftheframesothatitcanbeeasilyread.Itmaynot containmorethanfifteendigits.Anymultipleunitsshallcontainthesameserial numberwithlettersofthealphabetdesignatingthateachisadifferent,separate unit.

Starting with the letter "A", each unit addition shall be in alphabetical order.

The letter shall be stamped at the end of the serial number.

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398 ENROLLED §2176.9.Administrationandenforcement;powersofresidentialsubcommittee;

cease and desist orders;

applicability of Administrative Procedure Act A.(1) The residential subcommittee is charged with the adoption, administration, and enforcement of manufactured housing construction and safety standards and any other rules and regulations necessary for the administration and enforcement of this Part which are not set forth pursuant to 24 CFR Part 3280 and CFR Part 3282, Subpart I.

(2) The residential subcommittee may adopt, pursuant to the Administrative Procedure Act, such rules and regulations as are necessary to enforcethestandardspromulgatedpursuanttothisSectionandanyotherrules and regulations necessary for the administration and enforcement of this Part.

(3)Fortheperformanceofdutiesrequiredpursuanttotheprovisionsof this Part, including but not limited to the inspections necessary to administer and enforce the standards, rules, or regulations adopted pursuant to this Subsection, the residential subcommitteemay adopt fees by rule promulgation for services performed in conducting the inspections.

B.

The board may contract for professional services and may hire employees as it deems necessary for the performance of its functions required or authorized by the provisions of this Part, to the extent that funds are available therefor.

C.

Except as otherwise provided in this Part, the provisions of Chapter 13 of Title 49 of the Louisiana Revised Statutes of 1950 apply to the administration and enforcement of this Part.

D.

The residential subcommittee or its authorized representatives may enter any place, establishment, or location where manufactured or modular homesaremanufactured,sold,offeredforsale,transported,orinstalledforthe purposeofascertainingwhethertherequirementsofthemanufacturedhousing code or the modular housing code and of this Part and Part II-A of this Chapter, and the rules and regulations of the residential subcommittee, have Page 22 of 48 Coding:

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398 ENROLLED been or are being complied with.

§2176.10.

Agent for service of process Any person licensed by the residential subcommittee who is domiciled outside of this state and does not maintain a place of business in this state shall appoint a registered agent with the Louisiana secretary of state to serve as his agent for service of process in any action or proceeding arising from the licensee’s business activities.

§2176.11.

Suit by residential subcommittee for violations;

venue;

relief obtainable A.

If it appears that a person is violating or is attempting to violate the manufactured housing code, the modular housing code, or a provision of this Part, Part II-A of this Chapter, or any rule or regulation adopted and promulgated by the residential subcommittee in accordance with the Administrative Procedure Act, the residential subcommitteeshall bring suit to restrain that person from continuing the violation or from carrying out the threat.

B.VenueforasuitpursuanttothisSectionliesintheNineteenthJudicial District Court.

C.

In the suit, the residential subcommittee may obtain injunctions, prohibitory and mandatory, including temporary restraining orders and preliminary injunctions, as the facts warrant, including, when appropriate, injunctions restraining a person from moving or disposing of a manufactured home that is subject to the requirements of this Part, Part II-A of this Chapter, or any rule or regulation adopted and promulgated by the residential subcommittee in accordance with the Administrative Procedure Act, or to restraina person fromengaginginanybusiness forwhich alicensehas beenor should be issued pursuant to this Part or Part II-A of this Chapter.

Any such manufactured home may, in the court's discretion, be ordered impounded or placed under the control of an agent appointed by the court.

D.

All costs incurred by the residential subcommittee, including Page 23 of 48 Coding:

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398 ENROLLED reasonable attorney fees, may be borne by the person or licensee who has been enjoined, or found in violation of the provisions of the manufactured housing code, the modular housing code, or any provision of this Part, or Part II-A of this Chapter, or any rule or regulation adopted and promulgated by the residentialsubcommitteeinaccordancewiththeAdministrativeProcedureAct.

§2176.12.

Hearings to investigate and determine violations;

orders prohibiting violations and requiring compliance A.

If in the opinion of the residential subcommittee the manufactured housing code, the modular housing code, or the requirements of this Part or Part II-A of this Chapter is being violated, it may conduct hearings to investigate and determine whether the violation has occurred or is occurring andmayissueordersprohibitingsuchviolationandrequiringcompliancewith themanufacturedhousingcodeorthemodularhousingcodeandtheprovisions of this Part or Part II-A of this Chapter.

B.

All costs incurred by the residential subcommittee, including reasonable attorney fees, may be borne by the person or licensee who has been found in violation of the provisions of the manufactured housing code, the modular housing code, any provision of this Part, Part II-A of this Chapter, or any rule or regulation adopted and promulgated by the residential subcommittee in accordance with the Administrative Procedure Act.

§2176.13.

Suspension or revocation of licenses for violation After prior notice and hearing, the residential subcommittee may suspend or revoke the license of any manufactured or modular home licensee licensed pursuant to the provisions of this Part or Part II-A of this Chapter for violationsofthemanufacturedhousing code,themodularhousingcode,orany provision of this Part or Part II-A of this Chapter.

The notice, hearing, and actions as prescribed in this Section shall be governed by the provisions of Chapter 13 of Title 49 of the Louisiana Revised Statutes of 1950, and particularly R.S.

49:977.3(C) relative to emergency action.

§2176.14.

Penalties for violations Page 24 of 48 Coding:

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398 ENROLLED A.Whoeveris found guilty of violating the manufacturedhousing code, themodularhousing code,anyprovisionofthisPart,PartII-AofthisChapter, any rule or regulation, or final order issued thereunder is liable to the state through the residential subcommittee for a civil penalty not in excess of two thousand five hundred dollars for each violation.

If the residential subcommitteedeterminesaviolationwasintentionalortheviolatorisahabitual offender, the residential subcommittee may double the civil penalty up to five thousand dollars for each violation.

Each violation constitutes a separate violation with respect to each manufactured or modular home, or with respect to each failure or refusal to allow or perform an act required thereby, except that the maximum civil penalty shall not exceed one million dollars for any related series of violations occurring within one year from the date of the first violation.

B.

Any individual or director, officer, or agent of a corporation who knowingly and willingly violates any provision of the manufactured housing code, the modular housing code, any provision of this Part, Part II-A of this Chapter,orany applicable ruleorregulation issued pursuant tothosecodesor thosePartsinamannerwhichthreatensthehealthandsafetyofanypurchaser shall befined not morethan onethousand dollarsorimprisonednotmorethan six months, or both.

§2176.15.

Maintenance of records;

reports required Each licensee shall establish and maintain such records, make such reports, and provide such information as the residential subcommittee may reasonably require in order to be able to determine whether that licensee has acted or is acting in compliance with the manufactured housing code or the modularhousing codeandanyprovisionofthisPart,PartII-AofthisChapter, or any rule or regulation adopted by the residential subcommittee.

Upon request of the residential subcommittee, each licensee shall permit the residential subcommittee or its representative to inspect appropriate books, papers, records, and documents relevant to determining whether the licensee Page 25 of 48 Coding:

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398 ENROLLED has acted or is acting in compliance with the provisions of this Part, Part II-A of this Chapter, or any rule, as well as any regulation or order issued thereunder.

§2176.16.

Down payments;

sale of manufactured housing Itisunlawfulforafactory-builthousing dealerorfactory-builthousing developer to setforthin any retail installment sales contract, chattel mortgage, or security agreement any down payment unless all of the down payment has actually been received by the factory-built housing dealer or factory-built housing developer at the time of execution of such document.

If any part of the down payment is represented by a loan, trade-in, or any consideration other than cash, this fact shall be expressly set forth on the retail installment sales contract,chattelmortgage,orsecurityagreement.Noamountofthecashdown payment shall be from any rebate or other consideration received by or to be given to the consumer from the factory-built housing dealer or factory-built housing developer, or his respective agent.

§2176.17.

Use of model manufactured and modular homes A.NotwithstandingtheprovisionsofR.S.40:1730.21etseq.and1730.51 et seq.

to the contrary, a licensed factory-built housing dealer or factory-built housing developer may use a manufactured and modular home model to conduct only manufactured and modular home sales-related activity at the location of sales of manufactured and modular homes.

Manufactured and modular home sales-related activity includes but is not limited to executing contracts, making copies or phone calls, showing manufactured and modular home models, or engaging in any other sales-related activity.

B.

The licensed factory-built housing dealer or factory-built housing developer shall also adhere to all of the following requirements:

(1)Thereshallbenoovernightsleepinginthemanufacturedormodular home.

(2) The manufactured or modular home shall be properly installed in accordance with applicable federal and state statutes, rules, regulations, and Page 26 of 48 Coding:

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398 ENROLLED codes.

§2176.18.

Severability If any provision of this Part or the application of any provision of this Part is held invalid, that invalidity shall not affect other provisions, items, or applications of this Part that may be given effect without the invalid provision, item, or application and to this end the provisions of this Part are severable.

§2176.19.

Supremacy of the Part Notwithstanding any provision of law to the contrary, the codes and standards referenced in R.S.

37:2177.1 et seq., and those adopted by the residential subcommittee, are the only construction and installation standards used for manufactured or modular housing in this state, and these standards preemptalllocalstandardsastheyrelatetotheconstructionandinstallation of manufactured or modular homes in this state.

PART II-A NEW MANUFACTURED AND MODULAR HOME WARRANTIES §2177.1.

Purpose The legislature finds a need to promote commerce in this state by providing clear, concise, and mandatory warranties for the purchasers and occupants of new manufactured and modular homes in this state and by providingfortheuseofhomeowners'insuranceasadditionalprotectionforthe public against defects in the construction of new manufactured and modular homes.

This need can be met by providing a warranty for anew manufactured or modular home purchaser defining the responsibility of the builders to that purchaser and subsequent purchasers during the warranty periods provided herein.

The warranty, which is mandatory in most cases, shall promote uniformity of defined building standards.

Additionally, all provisions of this Part shall apply to any defect, even if there is no building standard directly regulating the defective workmanship or materials.

§2177.2.

Short title This Part shall be known and may be cited as the "New Manufactured Page 27 of 48 Coding:

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398 ENROLLED and Modular Home Warranty Act".

§2177.3.

Definitions For purposes of this Part, the following words, phrases, and terms are defined and construed as follows:

(1) "Builder" means the factory-built housing dealer or developer who soldthehome,themanufacturerwhoconstructedthehomeoranysectionofthe home if it is a multi-section home, the installer who installed the home, any personorentitythatdesigned,manufactured,orconstructedthehome,whether or not the consumer purchased the underlying real estate with the home or the builder initially occupied the home as his residence, or any person or entity licensed by the residential subcommittee.

(2)(a) "Building standards" for manufactured housing means the NationalManufacturedHomeConstructionandSafetyStandards Actof1974, 42 U.S.C.

5401 et seq., as amended, and federal regulations promulgated pursuanttothoseprovisions,alongwithanyconstructionorinstallation-related standardsadopted bytheLouisiana ManufacturedHousing Commissionorits successor the residential subcommittee, together with any additional performance standards, if any, which the builder may undertake to be in compliance.

(b) "Building standards" for modular housing means the International ResidentialCodeasadoptedbytheLouisianaStateUniformConstructionCode Council.

(3) "Home" means a manufactured home or modular home as defined in R.S.

37:2150.1.

(4) "Initial purchaser" means any person for whom a home is built or the first person to whom a home is sold upon completion of construction.

(5) "Majorstructural defect" means any actual physical damageto any of the following designated, load-bearing portions of a home caused by failure of the load-bearing portions which affects their load-bearing functions to the extent the home becomes unsafe, unsanitary, or is otherwise unlivable:

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398 ENROLLED (a) Foundation systems and footings.

(b) Beams.

(c) Girders.

(d) Lintels.

(e) Columns.

(f) Walls and partitions.

(g) Floor systems.

(h) Roof framing systems.

(6) "Owner" means the initial purchaser of a home and any of his successors in title, heirs, invitees, or assigns to a home during the time the warranties provided pursuant to this Part are in effect.

(7) "Warranty commencement date" means the date that legal title to a home is conveyed to its initial purchaser or the date the home is first occupied, whichever occurs first.

§2177.4.

Warranties;

exclusions A.

Subject to the exclusions provided in Subsection B of this Section, every builder warrants all of the following to the owner:

(1)One yearfollowing thewarrantycommencementdate,thehomewill be free from any defect due to noncompliance with the building standards or due to other defects in materials or workmanship not regulated by building standards.

(2) Two years following the warranty commencement date, the plumbing, electrical, heating, cooling, and ventilating systems exclusive of any appliance, fixture, and equipment will be free from any defect due to noncompliance with thebuilding standards orduetootherdefectsin materials or workmanship not regulated by building standards.

(3)Fiveyearsfollowingthewarrantycommencementdate,thehomewill be free from major structural defects due to noncompliance with the building standardsorduetootherdefectsinmaterialsorworkmanshipnotregulatedby building standards.

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398 ENROLLED B.

Unless the parties otherwise agree in writing, the builder's warranty shall exclude all of the following items:

(1) Fences, landscaping, including but not limited to sodding, seeding, shrubs, existing and new trees,and plantings, as well as off-site improvements, all driveways and walkways, or any other improvement not a part of the home itself.

(2)Afterthefirstyear,theconcretefloorofabasementandtheconcrete floor of an attached or unattached garage that is built separate from a foundation wall or other structural element of the home.

(3)Damagetorealpropertywhichisnotpartofthehomecoveredbythe warranty and which is not included in the purchase price of the home.

(4) Any damage to the extent it is caused or made worse by any of the following:

(a) Negligence, improper maintenance, neglect, or improper operation by anyone other than the builder or any employee, agent, or subcontractor of the builder.

(b) Failure by anyone other than the builder or any employee, agent, or subcontractor of the builder to comply with the warranty requirements of manufacturers of appliances, equipment, or fixtures.

This includes the owner orany occupant of thehomeprohibitingthebuilder orany employee,agent,or subcontractorofthebuilderfrommakingtimelyrepairsasrequiredunderlaw and warranty.

(c) Failure by the owner to give written notice by registered or certified mail to the residential subcommittee of any defect within the time set forth in this Section;

however, the provisions of this Subparagraph shall not be construed to change either the warranty periods enumerated in Subsection A of this Section or the notice requirements provided by this Section.

(d) Any change of the grading of the ground by anyone other than the builder, or any employee, agent, or subcontractor of the builder.

(e)Anychange,alteration,oradditionmadetothehomebyanyoneafter Page 30 of 48 Coding:

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398 ENROLLED the initial occupancy by the owner, except any change, alteration, or addition performed by the builder or any employee, agent, or subcontractor of the builder.

(f) Dampness, condensation, or other damage due to the failure of the owner to maintain adequate ventilation or drainage.

(5) Any loss or damage which the owner has not taken timely action to minimize.

(6)Anydefectin,oranydefectcausedby,materialsorworksuppliedby anyone other than the builder or any employee, agent, or subcontractor of the builder.

(7) Normal wear and tear or normal deterioration.

(8)Lossordamagewhichdoesnotconstituteadefectintheconstruction of the home by the builder or any employee, agent, or subcontractor of the builder.

(9) Loss or damage resulting from war, accident, riot and civil commotion, water escape, falling objects, aircraft, vehicles, acts of God, lightning, windstorm, hail, flood, mudslide, earthquake, volcanic eruption, wind-driven water, and changes in the level of the underground water table which are not reasonably foreseeable.

(10) Any damage caused by soil movement which is covered by other insurance.

(11) Insect damage.

(12) Any loss or damage which arises while the home is being used primarily for a nonresidential purpose.

(13)Anyconditionwhichdoesnotresultinactualphysicaldamagetothe home.

(14) Bodily injury or damage to personal property.

(15) Any cost of shelter, transportation, food, moving, storage, or other incidental expense related to relocation during repair.

(16)Any defectnot reportedin writing by registeredorcertified mail to Page 31 of 48 Coding:

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398 ENROLLED theresidentialsubcommitteeorinsurancecompany,asappropriate,priortothe expirationoftheperiodspecifiedinSubsectionAofthisSectionforsuchdefect plus thirty days.

(17) Consequential damages.