State Codes and Statutes

Statutes > California > Hsc > 18058-18066.5

HEALTH AND SAFETY CODE
SECTION 18058-18066.5



18058.  It is unlawful, and a violation of this part, if a person to
whom a license is issued is any of the following:
   (a) Not lawfully entitled thereto.
   (b) Has violated any of the provisions of this part or of Section
18613 or 18551, or any rule, order, or regulation issued pursuant
thereto.
   (c) Has committed or omitted any of the acts or omissions set
forth in Sections 18058.5 through 18063.5, inclusive.
   The department, after notice and hearing, may suspend or revoke
the license issued to a licensee upon determining that these acts or
omissions occurred or are in existence.



18058.1.  (a) Any manufacturer or dealer licensed under this part
that has closed its place of business, or any salesperson licensed
under this part no longer residing at the address last filed with the
department, may be served with process issued pursuant to Chapter 5
(commencing with Section 11500) of Part 1 of Division 3 of Title 2 of
the Government Code by registered mail at that place of business in
the case of a manufacturer or dealer, or at the last address filed
with the department in the case of a salesperson, unless the
manufacturer, dealer, or salesperson has notified the department in
writing of another address where service may be made.
   (b) This section shall apply to any manufacturer, dealer, or
salesperson who is licensed under this part or whose license is
renewed under this part, on or after the effective date of this
section.


18058.5.  With respect to applications, it is unlawful to file an
application for the license thereafter issued using a false or
fictitious name not registered with the proper authorities, or to
knowingly make any false statement or to knowingly conceal any
material fact in the application for the license.



18059.  With respect to taxation, fees, title, and registration, it
is unlawful to do any of the following:
   (a) Use a false or fictitious name, knowingly make any false
statement, or knowingly conceal any material fact in any application
for title or registration of a manufactured home, mobilehome, or
commercial coach, or otherwise commit a fraud in that application.
   (b) Fail to deliver to a transferee lawfully entitled thereto a
properly endorsed title or registration.
   (c) Violate any of the terms or provisions of Part 5 (commencing
with Section 10701) of Division 2 of the Revenue and Taxation Code or
rules and regulations adopted pursuant thereto or adopted pursuant
to Section 18015 of this part.


18059.5.  With respect to escrows and sales practices, it is
unlawful to do any of the following:
   (a) Violate any of the terms or provisions of Chapter 5
(commencing with Section 18035), relating to purchase documents,
receipts for deposit, escrow, and sales practices, or any rule,
regulation, or order issued by the department pursuant thereto.
   (b) Intentionally withhold or provide false information to an
escrow company or to any person or firm holding or acquiring an
ownership or security interest in the manufactured home or mobilehome
being sold or purchased.



18060.  With respect to business operations, it is unlawful to do
any of the following:
   (a) Make, or knowingly or negligently permit, any illegal use of
any special permits, or report of sales books issued to or in favor
of a licensee.
   (b) Submit a check, draft, or money order to the department for
any obligation or fee due the department which is thereafter
dishonored or refused payment upon presentation.
   (c) Fail to notify the department, within 10 days, of any change
in the ownership or corporate structure of the licensee, or of the
employment or termination of a mobilehome or commercial coach
salesperson.


18060.5.  With respect to business practices, it is unlawful to do
any of the following:
   (a) Knowingly purchase, sell, or otherwise acquire or dispose of a
stolen manufactured home, mobilehome, or commercial modular.
   (b) Violate any of the terms or provisions of regulations
promulgated under the authority of Section 18015.
   (c) Cause the state or any person to suffer any loss or damage by
reason of any fraud or deceit practiced on them or fraudulent
representations made to any person in the sale or purchase of a
manufactured home, mobilehome, or commercial modular or parts or
accessories thereof.
   (d) Violate any of the terms and conditions of Chapter 3
(commencing with Section 1797) of Title 1.7 of Part 4 of Division 3
of the Civil Code.
   (e) Move a manufactured home, mobilehome, or commercial modular
subject to registration pursuant to this part from a mobilehome park
or other site of installation to another location, without obtaining
from the legal owner, written consent for the move as prescribed in
Section 18099.5.
   (f) Include as an added cost to the selling price of a
manufactured home, mobilehome, or commercial modular, an amount for
licensing or transfer of title of the manufactured home, mobilehome,
or commercial modular, which amount is not due to the state unless,
prior to the sale, the amount has been paid by a dealer to the state
in order to avoid penalties that would have accrued because of late
payment of those fees. However, a dealer may collect from the second
purchaser of a manufactured home, mobilehome, or commercial modular,
a prorated fee based upon the number of months remaining in the
registration year for that manufactured home, mobilehome, or
commercial modular, if the manufactured home, mobilehome, or
commercial modular was previously sold by the dealer and the sale was
subsequently rescinded and all the fees that were paid, as required
by this part and Chapter 2 (commencing with Section 10751) of
Division 2 of the Revenue and Taxation Code, were returned to the
first purchaser of the manufactured home, mobilehome, or commercial
modular.
   (g) Participate in the sale of a manufactured home, mobilehome, or
commercial modular reported to the department pursuant to this part
without making the return and payment of any sales tax due and
required by Section 6451 of the Revenue and Taxation Code.
   (h) Fail to exercise reasonable supervision over the activities of
employees who negotiate or promote the sale of manufactured homes,
mobilehomes, or commercial modulars.
   (i) Display for sale, offer for sale, or sell, a manufactured
home, mobilehome, or commercial modular, representing that
manufactured home, mobilehome, or commercial modular to be of a year
model different from the year model designated at the time of
manufacture or first assembly as a completed manufactured home,
mobilehome, or commercial modular.
   (j) Directly or indirectly authorize or advise another licensee to
change the year model of a manufactured home, mobilehome, or
commercial modular in the inventory of the other licensee.
   (k) Fail, at the time that the seller enters into a net listing
agreement, to disclose in writing as part of the listing agreement in
12-point boldface type all of the following:
   (1) That a buyer's offer may be in excess of the amount that the
seller has agreed to accept as a purchase price in the listing
agreement.
   (2) That the dealer may retain any amount in excess of the amount
the seller has agreed to as the purchase price in the listing
agreement as the dealer's compensation or commission.
   (3) That additional costs or payments involved in the sales
transaction may be deducted or made from the amount the seller has
agreed to accept as the purchase price in the listing agreement by
the close of escrow.
   (l) Fail, within three days after the date a buyer's written offer
to purchase a mobilehome or manufactured home that is not a new
mobilehome or manufactured home is accepted, but no less than 48
hours prior to the close of escrow or transfer of title to the
mobilehome or manufactured home from the seller to the buyer, to
disclose to the seller in a document, signed or initialed by the
seller and the dealer, that is an addendum to the disclosure required
in subdivision (k), the exact amount of the buyer's offer and the
specific amounts of any commission. The dealer shall submit a copy of
the disclosure required by subdivision (k) and this subdivision into
escrow and maintain, at the dealer's place of business, a copy of
that disclosure for three years from the date of sale. The escrow
agent shall ensure that the disclosure deposited into escrow is
executed and complete. However, nothing in this subdivision shall be
construed to require the escrow agent to be responsible for
determining the accuracy of any of the statements in that disclosure.




18061.  With respect to advertising, it is unlawful:
   (a) To make or disseminate or cause to be made or disseminated
before the public in this state, in any newspaper or other
publication, or any advertising device, or by public outcry or
proclamation, or by any other manner or means whatsoever, any
statement which is untrue or misleading, and which is known, or which
by the exercise of reasonable care should be known, to be untrue or
misleading, or to so make or disseminate or cause to be so
disseminated any statement as part of a plan or scheme with the
intent not to sell any manufactured home, mobilehome, or commercial
coach or service so advertised at the price therein, or as so
advertised.
   (b) To advertise or offer for sale or exchange in any manner, any
manufactured home, mobilehome, or commercial coach not actually for
sale at the premises of the dealer or available to the dealer through
a listing agreement executed by the seller or from a manufacturer or
distributor at the time of the advertisement or offer. However, this
subdivision does not apply to advertising or offering for sale or
exchange any used manufactured home, used mobilehome, or used
commercial coach where the advertising or offering for sale is not
contrary to any terms of a contract between the seller of the
manufactured home, mobilehome, or commercial coach and the owner of
the mobilehome park, and which manufactured home, mobilehome, or
commercial coach is either in place on a lot rented or leased for
human habitation within an established mobilehome park, or is
otherwise located, pursuant to a local zoning ordinance or permit, on
a lot where its presence has been authorized or its continued
presence and use would be authorized for a total and uninterrupted
period of at least one year.
   (c) To fail, within 48 hours, in writing, to withdraw any
advertisement of a manufactured home, mobilehome, or commercial coach
that has been sold or withdrawn from sale.
   (d) To advertise or represent a manufactured home, mobilehome, or
commercial coach as a new manufactured home, mobilehome, or
commercial coach if the manufactured home, mobilehome, or commercial
coach has been previously installed as a model without also
advertising that it was a model.
   (e) To advertise or otherwise represent, or knowingly to allow to
be advertised or represented on his or her behalf, or at his or her
established place of business, that no downpayment is required in
connection with the sale of a manufactured home, mobilehome, or
commercial coach when a downpayment is in fact required and the buyer
is advised or induced to finance the downpayment by a loan in
addition to any other loan financing the remainder of the purchase
price of the manufactured home, mobilehome, or commercial coach.



18061.5.  It is unlawful to do any of the following:
   (a) Willfully violate any law, or any rule or regulation adopted
by the department, relating to manufactured homes, mobilehomes, or
commercial coaches or the sale of manufactured homes, mobilehomes, or
commercial coaches.
   (b) Fail to comply within a reasonable time with any written order
of the department or any law enforcement agency.
   (c) Fail to meet the terms and conditions of a compromise
agreement effected under the provisions of Section 18064.5.
   (d) Cause or allow the existence of any of the conditions
specified in Section 18050.5 as a cause for refusal to issue a
license.
   (e) Lend a license to any other person or knowingly permit the use
thereof by another.
   (f) Display or represent any license not issued to the person as
being his or her license.
   (g) Fail or refuse to surrender to the department, upon its lawful
demand, any license or report of sales books, which is suspended,
revoked, or canceled.
   (h) Permit any unlawful use of a license or report of sales books,
issued to a licensee.
   (i) Photograph, photostat, duplicate, or in any way reproduce any
license or facsimile thereof in such a manner that it could be
mistaken for a valid license, or display or possess any photograph,
photostat, duplicate, reproduction, or facsimile unless authorized by
the provisions of this part.
   (j) Accept or encourage sales arranged or negotiated by unlicensed
persons or salespersons while not employed by the dealer. For the
purposes of this section, employment by a dealer shall mean
employment reported to the department pursuant to Section 18060.



18061.6.  (a) Notwithstanding the prohibition in subdivision (d) of
Section 18061 or any regulation to the contrary, a dealer may,
alternatively, post in a prominent location immediately outside the
primary entrance to a new manufactured home, mobilehome, or
commercial modular a conspicuous notice that the unit was previously
installed as a model, display unit, or used for other occupancy.
Additionally, a similarly conspicuous and prominent notice, requiring
a buyer's separate initials, shall be included in any purchase
agreement for that unit.
   (b) Notwithstanding Section 5050 of Title 25 of the California
Code of Regulations, an advertisement of any new manufactured home,
mobilehome, or commercial modular is not required to contain the year
of manufacture of the unit provided the new unit is not more than
three years old.
   (c) Notwithstanding Section 5050 of Title 25 of the California
Code of Regulations, an advertisement of any manufactured home,
mobilehome, or commercial modular is not required to contain the
model name of any unit if the model name is disclosed in a
conspicuous and prominent notice, requiring the buyer's separate
initials, in any purchase agreement for that unit.




18062.  It is unlawful for a dealer to do any of the following:
   (a) Enter into a listing agreement that does not include a
specified date upon which the agreement is to terminate.
   (b) Claim or take any secret or undisclosed amount of
compensation, commission, fee, or profit prior to, or at the time
that a contractual agreement is signed whereby all parties involved,
after negotiation, have come to terms. However, this section shall
not be construed to require the disclosure of any exclusive financial
arrangements agreed upon between the dealer and any financial
institution with regard to financial arrangements applicable solely
to them.
   (c) Exercise any provision which allows the dealer an option to
purchase the manufactured home, mobilehome, or commercial coach that
is the subject of an agreement whereby a consumer authorizes or
employs the dealer to arrange for its sale, purchase, or exchange,
unless the dealer has, prior to exercising the option, revealed in
writing to the consumer the full amount of the dealer's profit in
exercising the option and obtained the written consent of the
consumer approving the amount of the profit.
   (d) Fail to disclose any liens or encumbrances of which the dealer
had knowledge on a manufactured home, mobilehome, or commercial
coach.



18062.2.  It is also unlawful for a dealer to do any of the
following:
   (a) Engage in the business for which the dealer is licensed
without at all times maintaining an established place of business.
   (b) Employ any person as a salesperson who is not licensed
pursuant to this part, or whose license or 90-day certificate is not
displayed on the premises of the dealer as provided in Section 18063.
   (c) Permit the use of the dealer's license, supplies, or books by
any other person for the purpose of permitting that person to engage
in the sale of manufactured homes, mobilehomes, or commercial
modulars, or to permit the use of the dealer's license, supplies, or
books to operate a secondary location to be used by any other person,
if the licensee has no financial or equitable interest or investment
in the manufactured homes, mobilehomes, or commercial modulars sold
by, or the business of, or secondary location used by, the person, or
has no such interest or investment other than commissions,
compensations, fees, or any other thing of value received for the use
of the dealer's license, supplies, or books to engage in the sale of
manufactured homes, mobilehomes, or commercial modulars.
   (d) Advertise any specific manufactured home, mobilehome, or
commercial modular for sale without identifying the manufactured
home, mobilehome, or commercial modular by its serial number or by
the number on its federal label or insignia of approval issued by the
department.
   (e) Advertise the total price of a manufactured home, mobilehome,
or commercial modular without including all costs to the purchaser at
the time of delivery at the dealer's premises, except sales tax,
title and registration fees, finance charges, and any dealer
documentary preparation charge. The dealer documentary preparation
charge shall not exceed twenty dollars ($20).
   (f) Exclude from the advertisement of a manufactured home,
mobilehome, or commercial modular for sale information to the effect
that there will be added to the advertised total price at the time of
sale, charges for sales tax, title and registration fees, escrow
fees, and any dealer documentary preparation charge.
   (g) Represent the dealer documentary preparation charge as a
governmental fee.
   (h) Refuse to sell the manufactured home, mobilehome, or
commercial modular to any person at the advertised total price for
that manufactured home, mobilehome, or commercial modular, exclusive
of sales tax, title fee, finance charges, and dealer documentary
preparation charge, which charge shall not exceed twenty dollars
($20), while it remains unsold, unless the advertisement states the
advertised total price is good only for a specified time and that
time has elapsed.
   (i) Not post the salesperson's license in a place conspicuous to
the public on the premises where they are actually engaged in the
selling of manufactured homes, mobilehomes, and commercial modulars
for the employing dealer. The license shall be displayed continuously
during their employment. If a salesperson's employment is
terminated, the dealer shall return the license to the salesperson.
   (j) Offer for sale, rent, or lease within this state a new
manufactured home, mobilehome, or commercial modular whose
manufacturer is not licensed under this part.
   (k) To violate Section 798.71 or 798.74 of the Civil Code, or
both.
   (l) When the dealer is an owner or manager, or an agent of the
owner or manager, of a mobilehome park and serves as the dealer for a
manufactured home or mobilehome to be installed or sold in the park,
to knowingly violate Section 798.72, 798.73, 798.73.5, 798.75.5, or
798.83 of the Civil Code.


18062.5.  It is unlawful for any manufacturer or distributor to
coerce or attempt to coerce any dealer in this state to do any of the
following:
   (a) Order or accept delivery of any manufactured home, mobilehome,
or commercial coach, part or accessory thereof, appliance, equipment
or any other commodity not required by law which shall not have been
voluntarily ordered by the dealer.
   (b) Order or accept delivery of any manufactured home, mobilehome,
or commercial coach with special features, appliances, accessories
or equipment not included in the list price of the manufactured home,
mobilehome, or commercial coach as publicly advertised by the
manufacturer or distributor.
   (c) Order for any person any parts, accessories, equipment,
machinery, tools, appliances, or any commodity whatsoever.
   (d) Participate in an advertising campaign or contest, any
promotional campaign, promotional materials, training materials,
showroom or other display decorations or materials at the sole
expense of the dealer.
   (e) Enter into any agreement with the manufacturer or distributor
or to do any other act prejudicial to the dealer by threatening to
cancel a franchise or any contractual agreement existing between the
dealer and manufacturer or distributor. Notice in good faith to any
dealer of the dealer's violation of any terms or provisions of the
franchise or contractual agreement shall not constitute a violation
of this section.



18062.8.  It is unlawful for any manufacturer or distributor
licensed under this part to do any of the following:
   (a) Refuse or fail to deliver, in reasonable quantities and within
a reasonable time after receipt of an order from a dealer having a
franchise for the retail sale of any new manufactured home,
mobilehome, or commercial coach sold or distributed by the
manufacturer or distributor, any new manufactured home, mobilehome,
or commercial coach or parts or accessories to new manufactured
homes, mobilehomes, or commercial coaches that are covered by the
franchise, if the mobilehome or commercial coach, parts or
accessories are publicly advertised as being available for delivery
or actually being delivered. This subdivision is not violated,
however, if the failure is caused by acts or causes beyond the
control of the manufacturer or distributor.
   (b) Prevent or require or attempt to prevent or require, by
contract or otherwise, any change in the capital structure of a
dealership, if the dealer at all times meets any reasonable capital
standards agreed to by the dealer and the manufacturer or
distributor, and also provided that no change in capital structure
shall cause a change in the principal management or have the effect
of a sale of the franchise without the consent of the manufacturer or
distributor.
   (c) Prevent or require, or attempt to prevent or require, a dealer
to change the executive management of a dealership, other than the
principal dealership operator or operators, if the franchise was
granted the dealer in reliance upon the personal qualifications of
that person or persons.
   (d) Prevent or require, or attempt to prevent or require, by
contract or otherwise, any dealer, or any officer, partner, or
stockholder of any dealership, to participate in the sale or transfer
of any part of the interest of any of them to any other person or
persons. No dealer, officer, partner, or stockholder shall, however,
have the right to sell, transfer, or assign the franchise, or any
right thereunder, without the consent of the manufacturer or
distributor if the consent is not unreasonably withheld.
   (e) Prevent, or attempt to prevent, a dealer from receiving fair
and reasonable compensation for the value of the franchised business.
There shall be no transfer or assignment of the dealer's franchise
without the consent of the manufacturer or distributor, if the
consent is not unreasonably withheld.
   (f) Obtain money, goods, services, or any other benefit from any
other person with whom the dealer does business, on account of, or in
relation to, the transaction between the dealer and any other
person, other than for compensation for services rendered, unless the
benefit is promptly accounted for, and transmitted to, the dealer.
   (g) Require a dealer to prospectively assent to a release,
assignment, novation, waiver, or estoppel that would relieve any
person from liability imposed by this part or to require any
controversy between a dealer and a manufacturer or distributor to be
referred to any person other than the department, if the referral
would be binding on the dealer. This subdivision does not, however,
prohibit arbitration before an independent arbitrator.
   (h) Increase the prices of manufactured homes, mobilehomes, or
commercial coaches that the dealer ordered for private retail
consumers prior to the dealer's receipt of the written official price
increase notification. A sales contract signed by a private retail
consumer shall constitute evidence of each order. In the event of
manufacturer price reductions, the amount of any reduction received
by a dealer shall be passed on to the private retail consumer by the
dealer if the retail price was negotiated on the basis of the
previous higher price to the dealer. Price reductions shall apply to
all manufactured homes, mobilehomes, and commercial coaches in the
dealer's inventory that were subject to the price reduction. A price
difference applicable to new model or series manufactured homes,
mobilehomes, or commercial coaches at the time of the introduction of
new models or series shall not be considered a price increase or
price decrease. Price changes caused by either of the following shall
not be subject to this subdivision:
   (1) The addition to a manufactured home, mobilehome, or commercial
coach of required or optional equipment pursuant to state or federal
law.
   (2) Revaluation of the United States dollar, in the case of
foreign-made manufactured homes, mobilehomes, or commercial coaches.
   (i) Fail to pay to a dealer, within a reasonable time following
receipt of a valid claim by a dealer thereof, any payment agreed to
be made by the manufacturer or distributor to the dealer by reason of
the fact that a new manufactured home, mobilehome, or commercial
coach of a prior year model is in the dealer's inventory at the time
of introduction of new model manufactured homes, mobilehomes, or
commercial coaches. A manufacturer or distributor shall not authorize
or enable any new model to be delivered by dealers at retail more
than 30 days prior to the eligibility date of the model change
allowance payment for prior year model manufactured homes,
mobilehomes, or commercial coaches.
   (j) Deny, to the surviving spouse or heirs designated by a
deceased owner of a dealership, the opportunity to participate in the
ownership of the dealership or successor dealership under a valid
franchise for a reasonable time after the death of the owner.
   (k) Offer any refunds or other types of inducements to any dealer
or other person for the purchase of new manufactured homes,
mobilehomes, or commercial coaches of a certain make and model to be
sold to the state or any political subdivision of the state without
making the same offer to all other dealers in the same make and model
within the relevant market area.
   ( l) Employ a person as a distributor who has not been licensed
pursuant to this chapter.
   (m) Deny any dealer the right of free association with any other
dealer for any lawful purpose.
   (n) Compete with a dealer in the same make and model operating
under an agreement or franchise from a manufacturer or distributor in
the relevant market area. A manufacturer or distributor shall not,
however, be deemed to be competing when operating a dealership either
temporarily for a reasonable period, or in a bona fide retail
operation that is for sale to any qualified independent person at a
fair and reasonable price, or in a bona fide relationship in which an
independent person has made a significant investment subject to loss
in the dealership and can reasonably expect to acquire full
ownership of the dealership on reasonable terms and conditions.
   (o) Unfairly discriminate among its franchisees with respect to
warranty reimbursement or authority granted its franchisees to make
warranty adjustments with retail customers.
   (p) Sell manufactured homes, mobilehomes, or commercial coaches to
persons not licensed under this part for resale, except as
authorized pursuant to Section 18015.7 or 18062.9.
   (q) Fail to exercise reasonable supervision over the activities of
employees who negotiate or promote the sale of manufactured homes,
mobilehomes, or commercial coaches.


18062.9.  (a) A manufactured home manufacturer may sell manufactured
homes, as defined in Section 18007, directly to a licensed
California general building contractor, as described in Section 7057
of the Business and Professions Code, when all of the following
conditions are met:
   (1) The sale is for five or more manufactured homes in a calendar
year.
   (2) The manufactured homes are delivered directly to a building
site and installed on a foundation system in accordance with Section
18551.
   (3) The manufactured homes are installed within a single
subdivision, as defined in Section 66424 of the Government Code,
consisting of five or more parcels, and therefore require a tentative
and final map pursuant to Section 66426 of the Government Code.
   (b) A manufactured home manufacturer may sell manufactured homes,
as defined in Section 18007, directly to a nonprofit corporation, as
defined by Section 50091, that is also a Community Housing
Development Organization, as defined in Section 92.2 of Title 24 of
the Code of Federal Regulations, when all of the following conditions
are met:
   (1) The sale is for five or more manufactured homes in a calendar
year.
   (2) The manufactured homes are delivered directly to a site for
installation by a dealer, as defined in Section 18002.6, or a
contractor in accordance with Section 18551 or 18613.
   (3) The manufactured homes are acquired and installed as part of a
project financed by federal, state, or local government funds, and
the homes will be sold or rented at affordable costs to low- and
moderate-income households as established by the department for other
affordable housing finance programs.


18063.  It is unlawful for a salesperson to do any of the following:
   (a) At the time of employment, not deliver to his or her employing
dealer his or her salesperson's license or 90-day certificate.
   (b) Fail to report in writing to the department every change of
residence within five days of the change.
   (c) Act or attempt to act as a salesperson while not employed by a
dealer. For purposes of this subdivision, "employment by a dealer"
means employment reported to the department pursuant to subdivision
(c) of Section 18060.
   (d) To violate Section 798.71 or 798.74 of the Civil Code, or
both.
   (e) When the salesperson is an owner or manager, or an agent of
the owner or manager, of a mobilehome park and serves as the
salesperson for a manufactured home or mobilehome to be installed or
sold in the park, to knowingly violate Section 798.72, 798.73,
798.73.5, 798.75.5, or 798.83 of the Civil Code.



18064.  The department may, pending a hearing, temporarily suspend
the license issued to a licensee for a period not to exceed 30 days
if the director finds that the action is required in the public
interest. In any such case, a hearing shall be held and a decision
thereon issued within 30 days after notice of the temporary
suspension.



18064.2.  (a) If the director determines through an investigation
that a person has engaged or is engaging in an activity which is a
violation of this part, or which is a violation of a regulation of
the department adopted for the purpose of implementing this part, and
if the director finds that the action is required in the public
interest, he or she may direct the person to desist and refrain from
that activity by issuance of an order specifying the nature of the
activity and the factual and legal basis for his or her
determination. The respondent to whom the order is directed shall
immediately, upon receipt of the order, cease the activity described
in the order.
   (b) The respondent may, within 30 days after service of the order
to desist and refrain, file a written request for a hearing to
contest the order.
   (c) If a written request for hearing is received within 30 days of
the date of service of the order, a hearing shall be held. The
hearing shall be commenced within 30 days after receipt of respondent'
s request unless the respondent agrees to a postponement. If the
hearing is not held and a decision rendered by the director within 30
days after receipt of respondent's request for a hearing, or the
date to which continued with respondent's consent, the order shall be
deemed rescinded.
   (d) If a person served with an order issued pursuant to this
section fails to file a written request for a hearing within 30 days
from the date of service of the order, the order shall be deemed a
final order of the director and shall not be subject to review by any
court or agency.



18064.5.  (a) The director may, following the filing of an
accusation against a licensee under this part and prior to conducting
a hearing, exercise an option, with the consent of the licensee, to
enter into and adopt a stipulated penalty whereby the licensee agrees
to accept the terms and conditions of the penalty without hearing or
appeal by any party thereto.
   (b) Except when the accusation alleges injury to, or fraud
against, the public or the state, the director may, following the
filing of an accusation against a licensee or prior to adopting any
recommendation resulting from a hearing, exercise an option, with the
consent of the licensee, to impose and require the payment of a
monetary penalty of a minimum and maximum amount for each violation
alleged and stipulated to by the licensee, as established by a
schedule under regulations adopted by the department and costs of
investigation and prosecution, without further hearing or appeal, and
without any other form of penalty against the licensee which may
otherwise have been imposed for the same offense or offenses had the
matter proceeded to hearing or had the director adopted the decision
of the hearing officer.
   (c) If the accusation alleges injury to, or fraud against, an
individual purchaser or potential purchaser, the director may enter
into an agreement pursuant to subdivision (b), but such a compromise
and settlement shall include, in addition to the monetary penalty set
forth by regulation, compensation for the injury or fraud, including
all costs of investigation and prosecution.
   (d) Each compromise settlement agreement and each monetary penalty
agreement entered into pursuant to this section shall be signed by
the respondent licensee, the director, and the accuser, or by their
authorized representatives, and filed with the Office of
Administrative Hearings, together with the department's notice of
withdrawal of the accusation upon which the action was initiated if
the compromise settlement agreement or monetary payment agreement is
entered into before the hearing.
   (e) Failure of the respondent to honor the terms and conditions of
any agreement entered into under this section shall render the
agreement null and void, and shall be cause for action pursuant to
Section 18058 in the same manner as the department may have otherwise
proceeded, notwithstanding the agreement.
   (f) The amount of the penalty provided for in subdivision (b)
shall not exceed five hundred dollars ($500) per violation and shall
be based upon the nature of the violation and the seriousness of the
violation against the purposes and provisions of this part.




18065.  The licenses or permits provided for in this part shall be
automatically canceled upon any of the following events:
   (a) The abandonment of the established place of business of the
licensee or the change thereof without notice to the department as
provided in this part.
   (b) The voluntary or involuntary surrender for any cause by the
licensee of the license. However, the surrender or cessation of
business by the licensee, or the suspension of the corporate charter
of the licensee by the state, shall not prevent the filing of an
accusation for revocation or suspension of the surrendered license as
provided in Section 18058 or the department's decision that the
license should be suspended or revoked. Furthermore, this
determination may be considered in granting or refusing to grant any
subsequent license authorized by this part to the licensee,
copartner, or any officer, director, or stockholder of the prior
licensee.
   (c) Notification that the person designated as licensee has
changed.
   (d) Suspension or cancellation of the corporate charter of the
licensee by the state.
   (e) Failure of a licensee to file an application for renewal for
the license or permit before the date of expiration of the current
license or permit.
   (f) Submittal of a check, draft, or money order to the department
for a license or license renewal fees due the department which is
thereafter dishonored or refused payment upon presentation and which
fees and penalty are not thereafter paid by cash, money order, or
cashier's check prior to the expiration of the license.



18065.5.  The revocation or suspension of a license may be limited
to one or more municipalities or counties or any other defined area,
or may be revoked or suspended in a defined area only as to certain
aspects of its business, or as to a specified licensee or licensees.



18066.  The suspension, expiration, or cancellation of a license
provided for in this part shall not prevent the filing of an
accusation for the revocation or suspension of the suspended,
expired, or canceled license as provided in Section 18058, and the
department's decision that the license should be suspended or
revoked. This determination may be considered in granting or refusing
to grant any subsequent license authorized by this part to the
licensee.


18066.5.  If a purchaser of a manufactured home, mobilehome, or
commercial coach pays to the dealer an amount for transfer of title
of the manufactured home, mobilehome, or commercial coach, which
amount is in excess of the actual fees due for the transfer, or which
amount is in excess of the amount which has been paid, prior to the
sale, by the dealer to the state in order to avoid penalties that
would have accrued because of late payment of the fees, the dealer
shall return the excess amount to the purchaser, whether or not the
purchaser requests the return of the excess amount.


State Codes and Statutes

Statutes > California > Hsc > 18058-18066.5

HEALTH AND SAFETY CODE
SECTION 18058-18066.5



18058.  It is unlawful, and a violation of this part, if a person to
whom a license is issued is any of the following:
   (a) Not lawfully entitled thereto.
   (b) Has violated any of the provisions of this part or of Section
18613 or 18551, or any rule, order, or regulation issued pursuant
thereto.
   (c) Has committed or omitted any of the acts or omissions set
forth in Sections 18058.5 through 18063.5, inclusive.
   The department, after notice and hearing, may suspend or revoke
the license issued to a licensee upon determining that these acts or
omissions occurred or are in existence.



18058.1.  (a) Any manufacturer or dealer licensed under this part
that has closed its place of business, or any salesperson licensed
under this part no longer residing at the address last filed with the
department, may be served with process issued pursuant to Chapter 5
(commencing with Section 11500) of Part 1 of Division 3 of Title 2 of
the Government Code by registered mail at that place of business in
the case of a manufacturer or dealer, or at the last address filed
with the department in the case of a salesperson, unless the
manufacturer, dealer, or salesperson has notified the department in
writing of another address where service may be made.
   (b) This section shall apply to any manufacturer, dealer, or
salesperson who is licensed under this part or whose license is
renewed under this part, on or after the effective date of this
section.


18058.5.  With respect to applications, it is unlawful to file an
application for the license thereafter issued using a false or
fictitious name not registered with the proper authorities, or to
knowingly make any false statement or to knowingly conceal any
material fact in the application for the license.



18059.  With respect to taxation, fees, title, and registration, it
is unlawful to do any of the following:
   (a) Use a false or fictitious name, knowingly make any false
statement, or knowingly conceal any material fact in any application
for title or registration of a manufactured home, mobilehome, or
commercial coach, or otherwise commit a fraud in that application.
   (b) Fail to deliver to a transferee lawfully entitled thereto a
properly endorsed title or registration.
   (c) Violate any of the terms or provisions of Part 5 (commencing
with Section 10701) of Division 2 of the Revenue and Taxation Code or
rules and regulations adopted pursuant thereto or adopted pursuant
to Section 18015 of this part.


18059.5.  With respect to escrows and sales practices, it is
unlawful to do any of the following:
   (a) Violate any of the terms or provisions of Chapter 5
(commencing with Section 18035), relating to purchase documents,
receipts for deposit, escrow, and sales practices, or any rule,
regulation, or order issued by the department pursuant thereto.
   (b) Intentionally withhold or provide false information to an
escrow company or to any person or firm holding or acquiring an
ownership or security interest in the manufactured home or mobilehome
being sold or purchased.



18060.  With respect to business operations, it is unlawful to do
any of the following:
   (a) Make, or knowingly or negligently permit, any illegal use of
any special permits, or report of sales books issued to or in favor
of a licensee.
   (b) Submit a check, draft, or money order to the department for
any obligation or fee due the department which is thereafter
dishonored or refused payment upon presentation.
   (c) Fail to notify the department, within 10 days, of any change
in the ownership or corporate structure of the licensee, or of the
employment or termination of a mobilehome or commercial coach
salesperson.


18060.5.  With respect to business practices, it is unlawful to do
any of the following:
   (a) Knowingly purchase, sell, or otherwise acquire or dispose of a
stolen manufactured home, mobilehome, or commercial modular.
   (b) Violate any of the terms or provisions of regulations
promulgated under the authority of Section 18015.
   (c) Cause the state or any person to suffer any loss or damage by
reason of any fraud or deceit practiced on them or fraudulent
representations made to any person in the sale or purchase of a
manufactured home, mobilehome, or commercial modular or parts or
accessories thereof.
   (d) Violate any of the terms and conditions of Chapter 3
(commencing with Section 1797) of Title 1.7 of Part 4 of Division 3
of the Civil Code.
   (e) Move a manufactured home, mobilehome, or commercial modular
subject to registration pursuant to this part from a mobilehome park
or other site of installation to another location, without obtaining
from the legal owner, written consent for the move as prescribed in
Section 18099.5.
   (f) Include as an added cost to the selling price of a
manufactured home, mobilehome, or commercial modular, an amount for
licensing or transfer of title of the manufactured home, mobilehome,
or commercial modular, which amount is not due to the state unless,
prior to the sale, the amount has been paid by a dealer to the state
in order to avoid penalties that would have accrued because of late
payment of those fees. However, a dealer may collect from the second
purchaser of a manufactured home, mobilehome, or commercial modular,
a prorated fee based upon the number of months remaining in the
registration year for that manufactured home, mobilehome, or
commercial modular, if the manufactured home, mobilehome, or
commercial modular was previously sold by the dealer and the sale was
subsequently rescinded and all the fees that were paid, as required
by this part and Chapter 2 (commencing with Section 10751) of
Division 2 of the Revenue and Taxation Code, were returned to the
first purchaser of the manufactured home, mobilehome, or commercial
modular.
   (g) Participate in the sale of a manufactured home, mobilehome, or
commercial modular reported to the department pursuant to this part
without making the return and payment of any sales tax due and
required by Section 6451 of the Revenue and Taxation Code.
   (h) Fail to exercise reasonable supervision over the activities of
employees who negotiate or promote the sale of manufactured homes,
mobilehomes, or commercial modulars.
   (i) Display for sale, offer for sale, or sell, a manufactured
home, mobilehome, or commercial modular, representing that
manufactured home, mobilehome, or commercial modular to be of a year
model different from the year model designated at the time of
manufacture or first assembly as a completed manufactured home,
mobilehome, or commercial modular.
   (j) Directly or indirectly authorize or advise another licensee to
change the year model of a manufactured home, mobilehome, or
commercial modular in the inventory of the other licensee.
   (k) Fail, at the time that the seller enters into a net listing
agreement, to disclose in writing as part of the listing agreement in
12-point boldface type all of the following:
   (1) That a buyer's offer may be in excess of the amount that the
seller has agreed to accept as a purchase price in the listing
agreement.
   (2) That the dealer may retain any amount in excess of the amount
the seller has agreed to as the purchase price in the listing
agreement as the dealer's compensation or commission.
   (3) That additional costs or payments involved in the sales
transaction may be deducted or made from the amount the seller has
agreed to accept as the purchase price in the listing agreement by
the close of escrow.
   (l) Fail, within three days after the date a buyer's written offer
to purchase a mobilehome or manufactured home that is not a new
mobilehome or manufactured home is accepted, but no less than 48
hours prior to the close of escrow or transfer of title to the
mobilehome or manufactured home from the seller to the buyer, to
disclose to the seller in a document, signed or initialed by the
seller and the dealer, that is an addendum to the disclosure required
in subdivision (k), the exact amount of the buyer's offer and the
specific amounts of any commission. The dealer shall submit a copy of
the disclosure required by subdivision (k) and this subdivision into
escrow and maintain, at the dealer's place of business, a copy of
that disclosure for three years from the date of sale. The escrow
agent shall ensure that the disclosure deposited into escrow is
executed and complete. However, nothing in this subdivision shall be
construed to require the escrow agent to be responsible for
determining the accuracy of any of the statements in that disclosure.




18061.  With respect to advertising, it is unlawful:
   (a) To make or disseminate or cause to be made or disseminated
before the public in this state, in any newspaper or other
publication, or any advertising device, or by public outcry or
proclamation, or by any other manner or means whatsoever, any
statement which is untrue or misleading, and which is known, or which
by the exercise of reasonable care should be known, to be untrue or
misleading, or to so make or disseminate or cause to be so
disseminated any statement as part of a plan or scheme with the
intent not to sell any manufactured home, mobilehome, or commercial
coach or service so advertised at the price therein, or as so
advertised.
   (b) To advertise or offer for sale or exchange in any manner, any
manufactured home, mobilehome, or commercial coach not actually for
sale at the premises of the dealer or available to the dealer through
a listing agreement executed by the seller or from a manufacturer or
distributor at the time of the advertisement or offer. However, this
subdivision does not apply to advertising or offering for sale or
exchange any used manufactured home, used mobilehome, or used
commercial coach where the advertising or offering for sale is not
contrary to any terms of a contract between the seller of the
manufactured home, mobilehome, or commercial coach and the owner of
the mobilehome park, and which manufactured home, mobilehome, or
commercial coach is either in place on a lot rented or leased for
human habitation within an established mobilehome park, or is
otherwise located, pursuant to a local zoning ordinance or permit, on
a lot where its presence has been authorized or its continued
presence and use would be authorized for a total and uninterrupted
period of at least one year.
   (c) To fail, within 48 hours, in writing, to withdraw any
advertisement of a manufactured home, mobilehome, or commercial coach
that has been sold or withdrawn from sale.
   (d) To advertise or represent a manufactured home, mobilehome, or
commercial coach as a new manufactured home, mobilehome, or
commercial coach if the manufactured home, mobilehome, or commercial
coach has been previously installed as a model without also
advertising that it was a model.
   (e) To advertise or otherwise represent, or knowingly to allow to
be advertised or represented on his or her behalf, or at his or her
established place of business, that no downpayment is required in
connection with the sale of a manufactured home, mobilehome, or
commercial coach when a downpayment is in fact required and the buyer
is advised or induced to finance the downpayment by a loan in
addition to any other loan financing the remainder of the purchase
price of the manufactured home, mobilehome, or commercial coach.



18061.5.  It is unlawful to do any of the following:
   (a) Willfully violate any law, or any rule or regulation adopted
by the department, relating to manufactured homes, mobilehomes, or
commercial coaches or the sale of manufactured homes, mobilehomes, or
commercial coaches.
   (b) Fail to comply within a reasonable time with any written order
of the department or any law enforcement agency.
   (c) Fail to meet the terms and conditions of a compromise
agreement effected under the provisions of Section 18064.5.
   (d) Cause or allow the existence of any of the conditions
specified in Section 18050.5 as a cause for refusal to issue a
license.
   (e) Lend a license to any other person or knowingly permit the use
thereof by another.
   (f) Display or represent any license not issued to the person as
being his or her license.
   (g) Fail or refuse to surrender to the department, upon its lawful
demand, any license or report of sales books, which is suspended,
revoked, or canceled.
   (h) Permit any unlawful use of a license or report of sales books,
issued to a licensee.
   (i) Photograph, photostat, duplicate, or in any way reproduce any
license or facsimile thereof in such a manner that it could be
mistaken for a valid license, or display or possess any photograph,
photostat, duplicate, reproduction, or facsimile unless authorized by
the provisions of this part.
   (j) Accept or encourage sales arranged or negotiated by unlicensed
persons or salespersons while not employed by the dealer. For the
purposes of this section, employment by a dealer shall mean
employment reported to the department pursuant to Section 18060.



18061.6.  (a) Notwithstanding the prohibition in subdivision (d) of
Section 18061 or any regulation to the contrary, a dealer may,
alternatively, post in a prominent location immediately outside the
primary entrance to a new manufactured home, mobilehome, or
commercial modular a conspicuous notice that the unit was previously
installed as a model, display unit, or used for other occupancy.
Additionally, a similarly conspicuous and prominent notice, requiring
a buyer's separate initials, shall be included in any purchase
agreement for that unit.
   (b) Notwithstanding Section 5050 of Title 25 of the California
Code of Regulations, an advertisement of any new manufactured home,
mobilehome, or commercial modular is not required to contain the year
of manufacture of the unit provided the new unit is not more than
three years old.
   (c) Notwithstanding Section 5050 of Title 25 of the California
Code of Regulations, an advertisement of any manufactured home,
mobilehome, or commercial modular is not required to contain the
model name of any unit if the model name is disclosed in a
conspicuous and prominent notice, requiring the buyer's separate
initials, in any purchase agreement for that unit.




18062.  It is unlawful for a dealer to do any of the following:
   (a) Enter into a listing agreement that does not include a
specified date upon which the agreement is to terminate.
   (b) Claim or take any secret or undisclosed amount of
compensation, commission, fee, or profit prior to, or at the time
that a contractual agreement is signed whereby all parties involved,
after negotiation, have come to terms. However, this section shall
not be construed to require the disclosure of any exclusive financial
arrangements agreed upon between the dealer and any financial
institution with regard to financial arrangements applicable solely
to them.
   (c) Exercise any provision which allows the dealer an option to
purchase the manufactured home, mobilehome, or commercial coach that
is the subject of an agreement whereby a consumer authorizes or
employs the dealer to arrange for its sale, purchase, or exchange,
unless the dealer has, prior to exercising the option, revealed in
writing to the consumer the full amount of the dealer's profit in
exercising the option and obtained the written consent of the
consumer approving the amount of the profit.
   (d) Fail to disclose any liens or encumbrances of which the dealer
had knowledge on a manufactured home, mobilehome, or commercial
coach.



18062.2.  It is also unlawful for a dealer to do any of the
following:
   (a) Engage in the business for which the dealer is licensed
without at all times maintaining an established place of business.
   (b) Employ any person as a salesperson who is not licensed
pursuant to this part, or whose license or 90-day certificate is not
displayed on the premises of the dealer as provided in Section 18063.
   (c) Permit the use of the dealer's license, supplies, or books by
any other person for the purpose of permitting that person to engage
in the sale of manufactured homes, mobilehomes, or commercial
modulars, or to permit the use of the dealer's license, supplies, or
books to operate a secondary location to be used by any other person,
if the licensee has no financial or equitable interest or investment
in the manufactured homes, mobilehomes, or commercial modulars sold
by, or the business of, or secondary location used by, the person, or
has no such interest or investment other than commissions,
compensations, fees, or any other thing of value received for the use
of the dealer's license, supplies, or books to engage in the sale of
manufactured homes, mobilehomes, or commercial modulars.
   (d) Advertise any specific manufactured home, mobilehome, or
commercial modular for sale without identifying the manufactured
home, mobilehome, or commercial modular by its serial number or by
the number on its federal label or insignia of approval issued by the
department.
   (e) Advertise the total price of a manufactured home, mobilehome,
or commercial modular without including all costs to the purchaser at
the time of delivery at the dealer's premises, except sales tax,
title and registration fees, finance charges, and any dealer
documentary preparation charge. The dealer documentary preparation
charge shall not exceed twenty dollars ($20).
   (f) Exclude from the advertisement of a manufactured home,
mobilehome, or commercial modular for sale information to the effect
that there will be added to the advertised total price at the time of
sale, charges for sales tax, title and registration fees, escrow
fees, and any dealer documentary preparation charge.
   (g) Represent the dealer documentary preparation charge as a
governmental fee.
   (h) Refuse to sell the manufactured home, mobilehome, or
commercial modular to any person at the advertised total price for
that manufactured home, mobilehome, or commercial modular, exclusive
of sales tax, title fee, finance charges, and dealer documentary
preparation charge, which charge shall not exceed twenty dollars
($20), while it remains unsold, unless the advertisement states the
advertised total price is good only for a specified time and that
time has elapsed.
   (i) Not post the salesperson's license in a place conspicuous to
the public on the premises where they are actually engaged in the
selling of manufactured homes, mobilehomes, and commercial modulars
for the employing dealer. The license shall be displayed continuously
during their employment. If a salesperson's employment is
terminated, the dealer shall return the license to the salesperson.
   (j) Offer for sale, rent, or lease within this state a new
manufactured home, mobilehome, or commercial modular whose
manufacturer is not licensed under this part.
   (k) To violate Section 798.71 or 798.74 of the Civil Code, or
both.
   (l) When the dealer is an owner or manager, or an agent of the
owner or manager, of a mobilehome park and serves as the dealer for a
manufactured home or mobilehome to be installed or sold in the park,
to knowingly violate Section 798.72, 798.73, 798.73.5, 798.75.5, or
798.83 of the Civil Code.


18062.5.  It is unlawful for any manufacturer or distributor to
coerce or attempt to coerce any dealer in this state to do any of the
following:
   (a) Order or accept delivery of any manufactured home, mobilehome,
or commercial coach, part or accessory thereof, appliance, equipment
or any other commodity not required by law which shall not have been
voluntarily ordered by the dealer.
   (b) Order or accept delivery of any manufactured home, mobilehome,
or commercial coach with special features, appliances, accessories
or equipment not included in the list price of the manufactured home,
mobilehome, or commercial coach as publicly advertised by the
manufacturer or distributor.
   (c) Order for any person any parts, accessories, equipment,
machinery, tools, appliances, or any commodity whatsoever.
   (d) Participate in an advertising campaign or contest, any
promotional campaign, promotional materials, training materials,
showroom or other display decorations or materials at the sole
expense of the dealer.
   (e) Enter into any agreement with the manufacturer or distributor
or to do any other act prejudicial to the dealer by threatening to
cancel a franchise or any contractual agreement existing between the
dealer and manufacturer or distributor. Notice in good faith to any
dealer of the dealer's violation of any terms or provisions of the
franchise or contractual agreement shall not constitute a violation
of this section.



18062.8.  It is unlawful for any manufacturer or distributor
licensed under this part to do any of the following:
   (a) Refuse or fail to deliver, in reasonable quantities and within
a reasonable time after receipt of an order from a dealer having a
franchise for the retail sale of any new manufactured home,
mobilehome, or commercial coach sold or distributed by the
manufacturer or distributor, any new manufactured home, mobilehome,
or commercial coach or parts or accessories to new manufactured
homes, mobilehomes, or commercial coaches that are covered by the
franchise, if the mobilehome or commercial coach, parts or
accessories are publicly advertised as being available for delivery
or actually being delivered. This subdivision is not violated,
however, if the failure is caused by acts or causes beyond the
control of the manufacturer or distributor.
   (b) Prevent or require or attempt to prevent or require, by
contract or otherwise, any change in the capital structure of a
dealership, if the dealer at all times meets any reasonable capital
standards agreed to by the dealer and the manufacturer or
distributor, and also provided that no change in capital structure
shall cause a change in the principal management or have the effect
of a sale of the franchise without the consent of the manufacturer or
distributor.
   (c) Prevent or require, or attempt to prevent or require, a dealer
to change the executive management of a dealership, other than the
principal dealership operator or operators, if the franchise was
granted the dealer in reliance upon the personal qualifications of
that person or persons.
   (d) Prevent or require, or attempt to prevent or require, by
contract or otherwise, any dealer, or any officer, partner, or
stockholder of any dealership, to participate in the sale or transfer
of any part of the interest of any of them to any other person or
persons. No dealer, officer, partner, or stockholder shall, however,
have the right to sell, transfer, or assign the franchise, or any
right thereunder, without the consent of the manufacturer or
distributor if the consent is not unreasonably withheld.
   (e) Prevent, or attempt to prevent, a dealer from receiving fair
and reasonable compensation for the value of the franchised business.
There shall be no transfer or assignment of the dealer's franchise
without the consent of the manufacturer or distributor, if the
consent is not unreasonably withheld.
   (f) Obtain money, goods, services, or any other benefit from any
other person with whom the dealer does business, on account of, or in
relation to, the transaction between the dealer and any other
person, other than for compensation for services rendered, unless the
benefit is promptly accounted for, and transmitted to, the dealer.
   (g) Require a dealer to prospectively assent to a release,
assignment, novation, waiver, or estoppel that would relieve any
person from liability imposed by this part or to require any
controversy between a dealer and a manufacturer or distributor to be
referred to any person other than the department, if the referral
would be binding on the dealer. This subdivision does not, however,
prohibit arbitration before an independent arbitrator.
   (h) Increase the prices of manufactured homes, mobilehomes, or
commercial coaches that the dealer ordered for private retail
consumers prior to the dealer's receipt of the written official price
increase notification. A sales contract signed by a private retail
consumer shall constitute evidence of each order. In the event of
manufacturer price reductions, the amount of any reduction received
by a dealer shall be passed on to the private retail consumer by the
dealer if the retail price was negotiated on the basis of the
previous higher price to the dealer. Price reductions shall apply to
all manufactured homes, mobilehomes, and commercial coaches in the
dealer's inventory that were subject to the price reduction. A price
difference applicable to new model or series manufactured homes,
mobilehomes, or commercial coaches at the time of the introduction of
new models or series shall not be considered a price increase or
price decrease. Price changes caused by either of the following shall
not be subject to this subdivision:
   (1) The addition to a manufactured home, mobilehome, or commercial
coach of required or optional equipment pursuant to state or federal
law.
   (2) Revaluation of the United States dollar, in the case of
foreign-made manufactured homes, mobilehomes, or commercial coaches.
   (i) Fail to pay to a dealer, within a reasonable time following
receipt of a valid claim by a dealer thereof, any payment agreed to
be made by the manufacturer or distributor to the dealer by reason of
the fact that a new manufactured home, mobilehome, or commercial
coach of a prior year model is in the dealer's inventory at the time
of introduction of new model manufactured homes, mobilehomes, or
commercial coaches. A manufacturer or distributor shall not authorize
or enable any new model to be delivered by dealers at retail more
than 30 days prior to the eligibility date of the model change
allowance payment for prior year model manufactured homes,
mobilehomes, or commercial coaches.
   (j) Deny, to the surviving spouse or heirs designated by a
deceased owner of a dealership, the opportunity to participate in the
ownership of the dealership or successor dealership under a valid
franchise for a reasonable time after the death of the owner.
   (k) Offer any refunds or other types of inducements to any dealer
or other person for the purchase of new manufactured homes,
mobilehomes, or commercial coaches of a certain make and model to be
sold to the state or any political subdivision of the state without
making the same offer to all other dealers in the same make and model
within the relevant market area.
   ( l) Employ a person as a distributor who has not been licensed
pursuant to this chapter.
   (m) Deny any dealer the right of free association with any other
dealer for any lawful purpose.
   (n) Compete with a dealer in the same make and model operating
under an agreement or franchise from a manufacturer or distributor in
the relevant market area. A manufacturer or distributor shall not,
however, be deemed to be competing when operating a dealership either
temporarily for a reasonable period, or in a bona fide retail
operation that is for sale to any qualified independent person at a
fair and reasonable price, or in a bona fide relationship in which an
independent person has made a significant investment subject to loss
in the dealership and can reasonably expect to acquire full
ownership of the dealership on reasonable terms and conditions.
   (o) Unfairly discriminate among its franchisees with respect to
warranty reimbursement or authority granted its franchisees to make
warranty adjustments with retail customers.
   (p) Sell manufactured homes, mobilehomes, or commercial coaches to
persons not licensed under this part for resale, except as
authorized pursuant to Section 18015.7 or 18062.9.
   (q) Fail to exercise reasonable supervision over the activities of
employees who negotiate or promote the sale of manufactured homes,
mobilehomes, or commercial coaches.


18062.9.  (a) A manufactured home manufacturer may sell manufactured
homes, as defined in Section 18007, directly to a licensed
California general building contractor, as described in Section 7057
of the Business and Professions Code, when all of the following
conditions are met:
   (1) The sale is for five or more manufactured homes in a calendar
year.
   (2) The manufactured homes are delivered directly to a building
site and installed on a foundation system in accordance with Section
18551.
   (3) The manufactured homes are installed within a single
subdivision, as defined in Section 66424 of the Government Code,
consisting of five or more parcels, and therefore require a tentative
and final map pursuant to Section 66426 of the Government Code.
   (b) A manufactured home manufacturer may sell manufactured homes,
as defined in Section 18007, directly to a nonprofit corporation, as
defined by Section 50091, that is also a Community Housing
Development Organization, as defined in Section 92.2 of Title 24 of
the Code of Federal Regulations, when all of the following conditions
are met:
   (1) The sale is for five or more manufactured homes in a calendar
year.
   (2) The manufactured homes are delivered directly to a site for
installation by a dealer, as defined in Section 18002.6, or a
contractor in accordance with Section 18551 or 18613.
   (3) The manufactured homes are acquired and installed as part of a
project financed by federal, state, or local government funds, and
the homes will be sold or rented at affordable costs to low- and
moderate-income households as established by the department for other
affordable housing finance programs.


18063.  It is unlawful for a salesperson to do any of the following:
   (a) At the time of employment, not deliver to his or her employing
dealer his or her salesperson's license or 90-day certificate.
   (b) Fail to report in writing to the department every change of
residence within five days of the change.
   (c) Act or attempt to act as a salesperson while not employed by a
dealer. For purposes of this subdivision, "employment by a dealer"
means employment reported to the department pursuant to subdivision
(c) of Section 18060.
   (d) To violate Section 798.71 or 798.74 of the Civil Code, or
both.
   (e) When the salesperson is an owner or manager, or an agent of
the owner or manager, of a mobilehome park and serves as the
salesperson for a manufactured home or mobilehome to be installed or
sold in the park, to knowingly violate Section 798.72, 798.73,
798.73.5, 798.75.5, or 798.83 of the Civil Code.



18064.  The department may, pending a hearing, temporarily suspend
the license issued to a licensee for a period not to exceed 30 days
if the director finds that the action is required in the public
interest. In any such case, a hearing shall be held and a decision
thereon issued within 30 days after notice of the temporary
suspension.



18064.2.  (a) If the director determines through an investigation
that a person has engaged or is engaging in an activity which is a
violation of this part, or which is a violation of a regulation of
the department adopted for the purpose of implementing this part, and
if the director finds that the action is required in the public
interest, he or she may direct the person to desist and refrain from
that activity by issuance of an order specifying the nature of the
activity and the factual and legal basis for his or her
determination. The respondent to whom the order is directed shall
immediately, upon receipt of the order, cease the activity described
in the order.
   (b) The respondent may, within 30 days after service of the order
to desist and refrain, file a written request for a hearing to
contest the order.
   (c) If a written request for hearing is received within 30 days of
the date of service of the order, a hearing shall be held. The
hearing shall be commenced within 30 days after receipt of respondent'
s request unless the respondent agrees to a postponement. If the
hearing is not held and a decision rendered by the director within 30
days after receipt of respondent's request for a hearing, or the
date to which continued with respondent's consent, the order shall be
deemed rescinded.
   (d) If a person served with an order issued pursuant to this
section fails to file a written request for a hearing within 30 days
from the date of service of the order, the order shall be deemed a
final order of the director and shall not be subject to review by any
court or agency.



18064.5.  (a) The director may, following the filing of an
accusation against a licensee under this part and prior to conducting
a hearing, exercise an option, with the consent of the licensee, to
enter into and adopt a stipulated penalty whereby the licensee agrees
to accept the terms and conditions of the penalty without hearing or
appeal by any party thereto.
   (b) Except when the accusation alleges injury to, or fraud
against, the public or the state, the director may, following the
filing of an accusation against a licensee or prior to adopting any
recommendation resulting from a hearing, exercise an option, with the
consent of the licensee, to impose and require the payment of a
monetary penalty of a minimum and maximum amount for each violation
alleged and stipulated to by the licensee, as established by a
schedule under regulations adopted by the department and costs of
investigation and prosecution, without further hearing or appeal, and
without any other form of penalty against the licensee which may
otherwise have been imposed for the same offense or offenses had the
matter proceeded to hearing or had the director adopted the decision
of the hearing officer.
   (c) If the accusation alleges injury to, or fraud against, an
individual purchaser or potential purchaser, the director may enter
into an agreement pursuant to subdivision (b), but such a compromise
and settlement shall include, in addition to the monetary penalty set
forth by regulation, compensation for the injury or fraud, including
all costs of investigation and prosecution.
   (d) Each compromise settlement agreement and each monetary penalty
agreement entered into pursuant to this section shall be signed by
the respondent licensee, the director, and the accuser, or by their
authorized representatives, and filed with the Office of
Administrative Hearings, together with the department's notice of
withdrawal of the accusation upon which the action was initiated if
the compromise settlement agreement or monetary payment agreement is
entered into before the hearing.
   (e) Failure of the respondent to honor the terms and conditions of
any agreement entered into under this section shall render the
agreement null and void, and shall be cause for action pursuant to
Section 18058 in the same manner as the department may have otherwise
proceeded, notwithstanding the agreement.
   (f) The amount of the penalty provided for in subdivision (b)
shall not exceed five hundred dollars ($500) per violation and shall
be based upon the nature of the violation and the seriousness of the
violation against the purposes and provisions of this part.




18065.  The licenses or permits provided for in this part shall be
automatically canceled upon any of the following events:
   (a) The abandonment of the established place of business of the
licensee or the change thereof without notice to the department as
provided in this part.
   (b) The voluntary or involuntary surrender for any cause by the
licensee of the license. However, the surrender or cessation of
business by the licensee, or the suspension of the corporate charter
of the licensee by the state, shall not prevent the filing of an
accusation for revocation or suspension of the surrendered license as
provided in Section 18058 or the department's decision that the
license should be suspended or revoked. Furthermore, this
determination may be considered in granting or refusing to grant any
subsequent license authorized by this part to the licensee,
copartner, or any officer, director, or stockholder of the prior
licensee.
   (c) Notification that the person designated as licensee has
changed.
   (d) Suspension or cancellation of the corporate charter of the
licensee by the state.
   (e) Failure of a licensee to file an application for renewal for
the license or permit before the date of expiration of the current
license or permit.
   (f) Submittal of a check, draft, or money order to the department
for a license or license renewal fees due the department which is
thereafter dishonored or refused payment upon presentation and which
fees and penalty are not thereafter paid by cash, money order, or
cashier's check prior to the expiration of the license.



18065.5.  The revocation or suspension of a license may be limited
to one or more municipalities or counties or any other defined area,
or may be revoked or suspended in a defined area only as to certain
aspects of its business, or as to a specified licensee or licensees.



18066.  The suspension, expiration, or cancellation of a license
provided for in this part shall not prevent the filing of an
accusation for the revocation or suspension of the suspended,
expired, or canceled license as provided in Section 18058, and the
department's decision that the license should be suspended or
revoked. This determination may be considered in granting or refusing
to grant any subsequent license authorized by this part to the
licensee.


18066.5.  If a purchaser of a manufactured home, mobilehome, or
commercial coach pays to the dealer an amount for transfer of title
of the manufactured home, mobilehome, or commercial coach, which
amount is in excess of the actual fees due for the transfer, or which
amount is in excess of the amount which has been paid, prior to the
sale, by the dealer to the state in order to avoid penalties that
would have accrued because of late payment of the fees, the dealer
shall return the excess amount to the purchaser, whether or not the
purchaser requests the return of the excess amount.



State Codes and Statutes

State Codes and Statutes

Statutes > California > Hsc > 18058-18066.5

HEALTH AND SAFETY CODE
SECTION 18058-18066.5



18058.  It is unlawful, and a violation of this part, if a person to
whom a license is issued is any of the following:
   (a) Not lawfully entitled thereto.
   (b) Has violated any of the provisions of this part or of Section
18613 or 18551, or any rule, order, or regulation issued pursuant
thereto.
   (c) Has committed or omitted any of the acts or omissions set
forth in Sections 18058.5 through 18063.5, inclusive.
   The department, after notice and hearing, may suspend or revoke
the license issued to a licensee upon determining that these acts or
omissions occurred or are in existence.



18058.1.  (a) Any manufacturer or dealer licensed under this part
that has closed its place of business, or any salesperson licensed
under this part no longer residing at the address last filed with the
department, may be served with process issued pursuant to Chapter 5
(commencing with Section 11500) of Part 1 of Division 3 of Title 2 of
the Government Code by registered mail at that place of business in
the case of a manufacturer or dealer, or at the last address filed
with the department in the case of a salesperson, unless the
manufacturer, dealer, or salesperson has notified the department in
writing of another address where service may be made.
   (b) This section shall apply to any manufacturer, dealer, or
salesperson who is licensed under this part or whose license is
renewed under this part, on or after the effective date of this
section.


18058.5.  With respect to applications, it is unlawful to file an
application for the license thereafter issued using a false or
fictitious name not registered with the proper authorities, or to
knowingly make any false statement or to knowingly conceal any
material fact in the application for the license.



18059.  With respect to taxation, fees, title, and registration, it
is unlawful to do any of the following:
   (a) Use a false or fictitious name, knowingly make any false
statement, or knowingly conceal any material fact in any application
for title or registration of a manufactured home, mobilehome, or
commercial coach, or otherwise commit a fraud in that application.
   (b) Fail to deliver to a transferee lawfully entitled thereto a
properly endorsed title or registration.
   (c) Violate any of the terms or provisions of Part 5 (commencing
with Section 10701) of Division 2 of the Revenue and Taxation Code or
rules and regulations adopted pursuant thereto or adopted pursuant
to Section 18015 of this part.


18059.5.  With respect to escrows and sales practices, it is
unlawful to do any of the following:
   (a) Violate any of the terms or provisions of Chapter 5
(commencing with Section 18035), relating to purchase documents,
receipts for deposit, escrow, and sales practices, or any rule,
regulation, or order issued by the department pursuant thereto.
   (b) Intentionally withhold or provide false information to an
escrow company or to any person or firm holding or acquiring an
ownership or security interest in the manufactured home or mobilehome
being sold or purchased.



18060.  With respect to business operations, it is unlawful to do
any of the following:
   (a) Make, or knowingly or negligently permit, any illegal use of
any special permits, or report of sales books issued to or in favor
of a licensee.
   (b) Submit a check, draft, or money order to the department for
any obligation or fee due the department which is thereafter
dishonored or refused payment upon presentation.
   (c) Fail to notify the department, within 10 days, of any change
in the ownership or corporate structure of the licensee, or of the
employment or termination of a mobilehome or commercial coach
salesperson.


18060.5.  With respect to business practices, it is unlawful to do
any of the following:
   (a) Knowingly purchase, sell, or otherwise acquire or dispose of a
stolen manufactured home, mobilehome, or commercial modular.
   (b) Violate any of the terms or provisions of regulations
promulgated under the authority of Section 18015.
   (c) Cause the state or any person to suffer any loss or damage by
reason of any fraud or deceit practiced on them or fraudulent
representations made to any person in the sale or purchase of a
manufactured home, mobilehome, or commercial modular or parts or
accessories thereof.
   (d) Violate any of the terms and conditions of Chapter 3
(commencing with Section 1797) of Title 1.7 of Part 4 of Division 3
of the Civil Code.
   (e) Move a manufactured home, mobilehome, or commercial modular
subject to registration pursuant to this part from a mobilehome park
or other site of installation to another location, without obtaining
from the legal owner, written consent for the move as prescribed in
Section 18099.5.
   (f) Include as an added cost to the selling price of a
manufactured home, mobilehome, or commercial modular, an amount for
licensing or transfer of title of the manufactured home, mobilehome,
or commercial modular, which amount is not due to the state unless,
prior to the sale, the amount has been paid by a dealer to the state
in order to avoid penalties that would have accrued because of late
payment of those fees. However, a dealer may collect from the second
purchaser of a manufactured home, mobilehome, or commercial modular,
a prorated fee based upon the number of months remaining in the
registration year for that manufactured home, mobilehome, or
commercial modular, if the manufactured home, mobilehome, or
commercial modular was previously sold by the dealer and the sale was
subsequently rescinded and all the fees that were paid, as required
by this part and Chapter 2 (commencing with Section 10751) of
Division 2 of the Revenue and Taxation Code, were returned to the
first purchaser of the manufactured home, mobilehome, or commercial
modular.
   (g) Participate in the sale of a manufactured home, mobilehome, or
commercial modular reported to the department pursuant to this part
without making the return and payment of any sales tax due and
required by Section 6451 of the Revenue and Taxation Code.
   (h) Fail to exercise reasonable supervision over the activities of
employees who negotiate or promote the sale of manufactured homes,
mobilehomes, or commercial modulars.
   (i) Display for sale, offer for sale, or sell, a manufactured
home, mobilehome, or commercial modular, representing that
manufactured home, mobilehome, or commercial modular to be of a year
model different from the year model designated at the time of
manufacture or first assembly as a completed manufactured home,
mobilehome, or commercial modular.
   (j) Directly or indirectly authorize or advise another licensee to
change the year model of a manufactured home, mobilehome, or
commercial modular in the inventory of the other licensee.
   (k) Fail, at the time that the seller enters into a net listing
agreement, to disclose in writing as part of the listing agreement in
12-point boldface type all of the following:
   (1) That a buyer's offer may be in excess of the amount that the
seller has agreed to accept as a purchase price in the listing
agreement.
   (2) That the dealer may retain any amount in excess of the amount
the seller has agreed to as the purchase price in the listing
agreement as the dealer's compensation or commission.
   (3) That additional costs or payments involved in the sales
transaction may be deducted or made from the amount the seller has
agreed to accept as the purchase price in the listing agreement by
the close of escrow.
   (l) Fail, within three days after the date a buyer's written offer
to purchase a mobilehome or manufactured home that is not a new
mobilehome or manufactured home is accepted, but no less than 48
hours prior to the close of escrow or transfer of title to the
mobilehome or manufactured home from the seller to the buyer, to
disclose to the seller in a document, signed or initialed by the
seller and the dealer, that is an addendum to the disclosure required
in subdivision (k), the exact amount of the buyer's offer and the
specific amounts of any commission. The dealer shall submit a copy of
the disclosure required by subdivision (k) and this subdivision into
escrow and maintain, at the dealer's place of business, a copy of
that disclosure for three years from the date of sale. The escrow
agent shall ensure that the disclosure deposited into escrow is
executed and complete. However, nothing in this subdivision shall be
construed to require the escrow agent to be responsible for
determining the accuracy of any of the statements in that disclosure.




18061.  With respect to advertising, it is unlawful:
   (a) To make or disseminate or cause to be made or disseminated
before the public in this state, in any newspaper or other
publication, or any advertising device, or by public outcry or
proclamation, or by any other manner or means whatsoever, any
statement which is untrue or misleading, and which is known, or which
by the exercise of reasonable care should be known, to be untrue or
misleading, or to so make or disseminate or cause to be so
disseminated any statement as part of a plan or scheme with the
intent not to sell any manufactured home, mobilehome, or commercial
coach or service so advertised at the price therein, or as so
advertised.
   (b) To advertise or offer for sale or exchange in any manner, any
manufactured home, mobilehome, or commercial coach not actually for
sale at the premises of the dealer or available to the dealer through
a listing agreement executed by the seller or from a manufacturer or
distributor at the time of the advertisement or offer. However, this
subdivision does not apply to advertising or offering for sale or
exchange any used manufactured home, used mobilehome, or used
commercial coach where the advertising or offering for sale is not
contrary to any terms of a contract between the seller of the
manufactured home, mobilehome, or commercial coach and the owner of
the mobilehome park, and which manufactured home, mobilehome, or
commercial coach is either in place on a lot rented or leased for
human habitation within an established mobilehome park, or is
otherwise located, pursuant to a local zoning ordinance or permit, on
a lot where its presence has been authorized or its continued
presence and use would be authorized for a total and uninterrupted
period of at least one year.
   (c) To fail, within 48 hours, in writing, to withdraw any
advertisement of a manufactured home, mobilehome, or commercial coach
that has been sold or withdrawn from sale.
   (d) To advertise or represent a manufactured home, mobilehome, or
commercial coach as a new manufactured home, mobilehome, or
commercial coach if the manufactured home, mobilehome, or commercial
coach has been previously installed as a model without also
advertising that it was a model.
   (e) To advertise or otherwise represent, or knowingly to allow to
be advertised or represented on his or her behalf, or at his or her
established place of business, that no downpayment is required in
connection with the sale of a manufactured home, mobilehome, or
commercial coach when a downpayment is in fact required and the buyer
is advised or induced to finance the downpayment by a loan in
addition to any other loan financing the remainder of the purchase
price of the manufactured home, mobilehome, or commercial coach.



18061.5.  It is unlawful to do any of the following:
   (a) Willfully violate any law, or any rule or regulation adopted
by the department, relating to manufactured homes, mobilehomes, or
commercial coaches or the sale of manufactured homes, mobilehomes, or
commercial coaches.
   (b) Fail to comply within a reasonable time with any written order
of the department or any law enforcement agency.
   (c) Fail to meet the terms and conditions of a compromise
agreement effected under the provisions of Section 18064.5.
   (d) Cause or allow the existence of any of the conditions
specified in Section 18050.5 as a cause for refusal to issue a
license.
   (e) Lend a license to any other person or knowingly permit the use
thereof by another.
   (f) Display or represent any license not issued to the person as
being his or her license.
   (g) Fail or refuse to surrender to the department, upon its lawful
demand, any license or report of sales books, which is suspended,
revoked, or canceled.
   (h) Permit any unlawful use of a license or report of sales books,
issued to a licensee.
   (i) Photograph, photostat, duplicate, or in any way reproduce any
license or facsimile thereof in such a manner that it could be
mistaken for a valid license, or display or possess any photograph,
photostat, duplicate, reproduction, or facsimile unless authorized by
the provisions of this part.
   (j) Accept or encourage sales arranged or negotiated by unlicensed
persons or salespersons while not employed by the dealer. For the
purposes of this section, employment by a dealer shall mean
employment reported to the department pursuant to Section 18060.



18061.6.  (a) Notwithstanding the prohibition in subdivision (d) of
Section 18061 or any regulation to the contrary, a dealer may,
alternatively, post in a prominent location immediately outside the
primary entrance to a new manufactured home, mobilehome, or
commercial modular a conspicuous notice that the unit was previously
installed as a model, display unit, or used for other occupancy.
Additionally, a similarly conspicuous and prominent notice, requiring
a buyer's separate initials, shall be included in any purchase
agreement for that unit.
   (b) Notwithstanding Section 5050 of Title 25 of the California
Code of Regulations, an advertisement of any new manufactured home,
mobilehome, or commercial modular is not required to contain the year
of manufacture of the unit provided the new unit is not more than
three years old.
   (c) Notwithstanding Section 5050 of Title 25 of the California
Code of Regulations, an advertisement of any manufactured home,
mobilehome, or commercial modular is not required to contain the
model name of any unit if the model name is disclosed in a
conspicuous and prominent notice, requiring the buyer's separate
initials, in any purchase agreement for that unit.




18062.  It is unlawful for a dealer to do any of the following:
   (a) Enter into a listing agreement that does not include a
specified date upon which the agreement is to terminate.
   (b) Claim or take any secret or undisclosed amount of
compensation, commission, fee, or profit prior to, or at the time
that a contractual agreement is signed whereby all parties involved,
after negotiation, have come to terms. However, this section shall
not be construed to require the disclosure of any exclusive financial
arrangements agreed upon between the dealer and any financial
institution with regard to financial arrangements applicable solely
to them.
   (c) Exercise any provision which allows the dealer an option to
purchase the manufactured home, mobilehome, or commercial coach that
is the subject of an agreement whereby a consumer authorizes or
employs the dealer to arrange for its sale, purchase, or exchange,
unless the dealer has, prior to exercising the option, revealed in
writing to the consumer the full amount of the dealer's profit in
exercising the option and obtained the written consent of the
consumer approving the amount of the profit.
   (d) Fail to disclose any liens or encumbrances of which the dealer
had knowledge on a manufactured home, mobilehome, or commercial
coach.



18062.2.  It is also unlawful for a dealer to do any of the
following:
   (a) Engage in the business for which the dealer is licensed
without at all times maintaining an established place of business.
   (b) Employ any person as a salesperson who is not licensed
pursuant to this part, or whose license or 90-day certificate is not
displayed on the premises of the dealer as provided in Section 18063.
   (c) Permit the use of the dealer's license, supplies, or books by
any other person for the purpose of permitting that person to engage
in the sale of manufactured homes, mobilehomes, or commercial
modulars, or to permit the use of the dealer's license, supplies, or
books to operate a secondary location to be used by any other person,
if the licensee has no financial or equitable interest or investment
in the manufactured homes, mobilehomes, or commercial modulars sold
by, or the business of, or secondary location used by, the person, or
has no such interest or investment other than commissions,
compensations, fees, or any other thing of value received for the use
of the dealer's license, supplies, or books to engage in the sale of
manufactured homes, mobilehomes, or commercial modulars.
   (d) Advertise any specific manufactured home, mobilehome, or
commercial modular for sale without identifying the manufactured
home, mobilehome, or commercial modular by its serial number or by
the number on its federal label or insignia of approval issued by the
department.
   (e) Advertise the total price of a manufactured home, mobilehome,
or commercial modular without including all costs to the purchaser at
the time of delivery at the dealer's premises, except sales tax,
title and registration fees, finance charges, and any dealer
documentary preparation charge. The dealer documentary preparation
charge shall not exceed twenty dollars ($20).
   (f) Exclude from the advertisement of a manufactured home,
mobilehome, or commercial modular for sale information to the effect
that there will be added to the advertised total price at the time of
sale, charges for sales tax, title and registration fees, escrow
fees, and any dealer documentary preparation charge.
   (g) Represent the dealer documentary preparation charge as a
governmental fee.
   (h) Refuse to sell the manufactured home, mobilehome, or
commercial modular to any person at the advertised total price for
that manufactured home, mobilehome, or commercial modular, exclusive
of sales tax, title fee, finance charges, and dealer documentary
preparation charge, which charge shall not exceed twenty dollars
($20), while it remains unsold, unless the advertisement states the
advertised total price is good only for a specified time and that
time has elapsed.
   (i) Not post the salesperson's license in a place conspicuous to
the public on the premises where they are actually engaged in the
selling of manufactured homes, mobilehomes, and commercial modulars
for the employing dealer. The license shall be displayed continuously
during their employment. If a salesperson's employment is
terminated, the dealer shall return the license to the salesperson.
   (j) Offer for sale, rent, or lease within this state a new
manufactured home, mobilehome, or commercial modular whose
manufacturer is not licensed under this part.
   (k) To violate Section 798.71 or 798.74 of the Civil Code, or
both.
   (l) When the dealer is an owner or manager, or an agent of the
owner or manager, of a mobilehome park and serves as the dealer for a
manufactured home or mobilehome to be installed or sold in the park,
to knowingly violate Section 798.72, 798.73, 798.73.5, 798.75.5, or
798.83 of the Civil Code.


18062.5.  It is unlawful for any manufacturer or distributor to
coerce or attempt to coerce any dealer in this state to do any of the
following:
   (a) Order or accept delivery of any manufactured home, mobilehome,
or commercial coach, part or accessory thereof, appliance, equipment
or any other commodity not required by law which shall not have been
voluntarily ordered by the dealer.
   (b) Order or accept delivery of any manufactured home, mobilehome,
or commercial coach with special features, appliances, accessories
or equipment not included in the list price of the manufactured home,
mobilehome, or commercial coach as publicly advertised by the
manufacturer or distributor.
   (c) Order for any person any parts, accessories, equipment,
machinery, tools, appliances, or any commodity whatsoever.
   (d) Participate in an advertising campaign or contest, any
promotional campaign, promotional materials, training materials,
showroom or other display decorations or materials at the sole
expense of the dealer.
   (e) Enter into any agreement with the manufacturer or distributor
or to do any other act prejudicial to the dealer by threatening to
cancel a franchise or any contractual agreement existing between the
dealer and manufacturer or distributor. Notice in good faith to any
dealer of the dealer's violation of any terms or provisions of the
franchise or contractual agreement shall not constitute a violation
of this section.



18062.8.  It is unlawful for any manufacturer or distributor
licensed under this part to do any of the following:
   (a) Refuse or fail to deliver, in reasonable quantities and within
a reasonable time after receipt of an order from a dealer having a
franchise for the retail sale of any new manufactured home,
mobilehome, or commercial coach sold or distributed by the
manufacturer or distributor, any new manufactured home, mobilehome,
or commercial coach or parts or accessories to new manufactured
homes, mobilehomes, or commercial coaches that are covered by the
franchise, if the mobilehome or commercial coach, parts or
accessories are publicly advertised as being available for delivery
or actually being delivered. This subdivision is not violated,
however, if the failure is caused by acts or causes beyond the
control of the manufacturer or distributor.
   (b) Prevent or require or attempt to prevent or require, by
contract or otherwise, any change in the capital structure of a
dealership, if the dealer at all times meets any reasonable capital
standards agreed to by the dealer and the manufacturer or
distributor, and also provided that no change in capital structure
shall cause a change in the principal management or have the effect
of a sale of the franchise without the consent of the manufacturer or
distributor.
   (c) Prevent or require, or attempt to prevent or require, a dealer
to change the executive management of a dealership, other than the
principal dealership operator or operators, if the franchise was
granted the dealer in reliance upon the personal qualifications of
that person or persons.
   (d) Prevent or require, or attempt to prevent or require, by
contract or otherwise, any dealer, or any officer, partner, or
stockholder of any dealership, to participate in the sale or transfer
of any part of the interest of any of them to any other person or
persons. No dealer, officer, partner, or stockholder shall, however,
have the right to sell, transfer, or assign the franchise, or any
right thereunder, without the consent of the manufacturer or
distributor if the consent is not unreasonably withheld.
   (e) Prevent, or attempt to prevent, a dealer from receiving fair
and reasonable compensation for the value of the franchised business.
There shall be no transfer or assignment of the dealer's franchise
without the consent of the manufacturer or distributor, if the
consent is not unreasonably withheld.
   (f) Obtain money, goods, services, or any other benefit from any
other person with whom the dealer does business, on account of, or in
relation to, the transaction between the dealer and any other
person, other than for compensation for services rendered, unless the
benefit is promptly accounted for, and transmitted to, the dealer.
   (g) Require a dealer to prospectively assent to a release,
assignment, novation, waiver, or estoppel that would relieve any
person from liability imposed by this part or to require any
controversy between a dealer and a manufacturer or distributor to be
referred to any person other than the department, if the referral
would be binding on the dealer. This subdivision does not, however,
prohibit arbitration before an independent arbitrator.
   (h) Increase the prices of manufactured homes, mobilehomes, or
commercial coaches that the dealer ordered for private retail
consumers prior to the dealer's receipt of the written official price
increase notification. A sales contract signed by a private retail
consumer shall constitute evidence of each order. In the event of
manufacturer price reductions, the amount of any reduction received
by a dealer shall be passed on to the private retail consumer by the
dealer if the retail price was negotiated on the basis of the
previous higher price to the dealer. Price reductions shall apply to
all manufactured homes, mobilehomes, and commercial coaches in the
dealer's inventory that were subject to the price reduction. A price
difference applicable to new model or series manufactured homes,
mobilehomes, or commercial coaches at the time of the introduction of
new models or series shall not be considered a price increase or
price decrease. Price changes caused by either of the following shall
not be subject to this subdivision:
   (1) The addition to a manufactured home, mobilehome, or commercial
coach of required or optional equipment pursuant to state or federal
law.
   (2) Revaluation of the United States dollar, in the case of
foreign-made manufactured homes, mobilehomes, or commercial coaches.
   (i) Fail to pay to a dealer, within a reasonable time following
receipt of a valid claim by a dealer thereof, any payment agreed to
be made by the manufacturer or distributor to the dealer by reason of
the fact that a new manufactured home, mobilehome, or commercial
coach of a prior year model is in the dealer's inventory at the time
of introduction of new model manufactured homes, mobilehomes, or
commercial coaches. A manufacturer or distributor shall not authorize
or enable any new model to be delivered by dealers at retail more
than 30 days prior to the eligibility date of the model change
allowance payment for prior year model manufactured homes,
mobilehomes, or commercial coaches.
   (j) Deny, to the surviving spouse or heirs designated by a
deceased owner of a dealership, the opportunity to participate in the
ownership of the dealership or successor dealership under a valid
franchise for a reasonable time after the death of the owner.
   (k) Offer any refunds or other types of inducements to any dealer
or other person for the purchase of new manufactured homes,
mobilehomes, or commercial coaches of a certain make and model to be
sold to the state or any political subdivision of the state without
making the same offer to all other dealers in the same make and model
within the relevant market area.
   ( l) Employ a person as a distributor who has not been licensed
pursuant to this chapter.
   (m) Deny any dealer the right of free association with any other
dealer for any lawful purpose.
   (n) Compete with a dealer in the same make and model operating
under an agreement or franchise from a manufacturer or distributor in
the relevant market area. A manufacturer or distributor shall not,
however, be deemed to be competing when operating a dealership either
temporarily for a reasonable period, or in a bona fide retail
operation that is for sale to any qualified independent person at a
fair and reasonable price, or in a bona fide relationship in which an
independent person has made a significant investment subject to loss
in the dealership and can reasonably expect to acquire full
ownership of the dealership on reasonable terms and conditions.
   (o) Unfairly discriminate among its franchisees with respect to
warranty reimbursement or authority granted its franchisees to make
warranty adjustments with retail customers.
   (p) Sell manufactured homes, mobilehomes, or commercial coaches to
persons not licensed under this part for resale, except as
authorized pursuant to Section 18015.7 or 18062.9.
   (q) Fail to exercise reasonable supervision over the activities of
employees who negotiate or promote the sale of manufactured homes,
mobilehomes, or commercial coaches.


18062.9.  (a) A manufactured home manufacturer may sell manufactured
homes, as defined in Section 18007, directly to a licensed
California general building contractor, as described in Section 7057
of the Business and Professions Code, when all of the following
conditions are met:
   (1) The sale is for five or more manufactured homes in a calendar
year.
   (2) The manufactured homes are delivered directly to a building
site and installed on a foundation system in accordance with Section
18551.
   (3) The manufactured homes are installed within a single
subdivision, as defined in Section 66424 of the Government Code,
consisting of five or more parcels, and therefore require a tentative
and final map pursuant to Section 66426 of the Government Code.
   (b) A manufactured home manufacturer may sell manufactured homes,
as defined in Section 18007, directly to a nonprofit corporation, as
defined by Section 50091, that is also a Community Housing
Development Organization, as defined in Section 92.2 of Title 24 of
the Code of Federal Regulations, when all of the following conditions
are met:
   (1) The sale is for five or more manufactured homes in a calendar
year.
   (2) The manufactured homes are delivered directly to a site for
installation by a dealer, as defined in Section 18002.6, or a
contractor in accordance with Section 18551 or 18613.
   (3) The manufactured homes are acquired and installed as part of a
project financed by federal, state, or local government funds, and
the homes will be sold or rented at affordable costs to low- and
moderate-income households as established by the department for other
affordable housing finance programs.


18063.  It is unlawful for a salesperson to do any of the following:
   (a) At the time of employment, not deliver to his or her employing
dealer his or her salesperson's license or 90-day certificate.
   (b) Fail to report in writing to the department every change of
residence within five days of the change.
   (c) Act or attempt to act as a salesperson while not employed by a
dealer. For purposes of this subdivision, "employment by a dealer"
means employment reported to the department pursuant to subdivision
(c) of Section 18060.
   (d) To violate Section 798.71 or 798.74 of the Civil Code, or
both.
   (e) When the salesperson is an owner or manager, or an agent of
the owner or manager, of a mobilehome park and serves as the
salesperson for a manufactured home or mobilehome to be installed or
sold in the park, to knowingly violate Section 798.72, 798.73,
798.73.5, 798.75.5, or 798.83 of the Civil Code.



18064.  The department may, pending a hearing, temporarily suspend
the license issued to a licensee for a period not to exceed 30 days
if the director finds that the action is required in the public
interest. In any such case, a hearing shall be held and a decision
thereon issued within 30 days after notice of the temporary
suspension.



18064.2.  (a) If the director determines through an investigation
that a person has engaged or is engaging in an activity which is a
violation of this part, or which is a violation of a regulation of
the department adopted for the purpose of implementing this part, and
if the director finds that the action is required in the public
interest, he or she may direct the person to desist and refrain from
that activity by issuance of an order specifying the nature of the
activity and the factual and legal basis for his or her
determination. The respondent to whom the order is directed shall
immediately, upon receipt of the order, cease the activity described
in the order.
   (b) The respondent may, within 30 days after service of the order
to desist and refrain, file a written request for a hearing to
contest the order.
   (c) If a written request for hearing is received within 30 days of
the date of service of the order, a hearing shall be held. The
hearing shall be commenced within 30 days after receipt of respondent'
s request unless the respondent agrees to a postponement. If the
hearing is not held and a decision rendered by the director within 30
days after receipt of respondent's request for a hearing, or the
date to which continued with respondent's consent, the order shall be
deemed rescinded.
   (d) If a person served with an order issued pursuant to this
section fails to file a written request for a hearing within 30 days
from the date of service of the order, the order shall be deemed a
final order of the director and shall not be subject to review by any
court or agency.



18064.5.  (a) The director may, following the filing of an
accusation against a licensee under this part and prior to conducting
a hearing, exercise an option, with the consent of the licensee, to
enter into and adopt a stipulated penalty whereby the licensee agrees
to accept the terms and conditions of the penalty without hearing or
appeal by any party thereto.
   (b) Except when the accusation alleges injury to, or fraud
against, the public or the state, the director may, following the
filing of an accusation against a licensee or prior to adopting any
recommendation resulting from a hearing, exercise an option, with the
consent of the licensee, to impose and require the payment of a
monetary penalty of a minimum and maximum amount for each violation
alleged and stipulated to by the licensee, as established by a
schedule under regulations adopted by the department and costs of
investigation and prosecution, without further hearing or appeal, and
without any other form of penalty against the licensee which may
otherwise have been imposed for the same offense or offenses had the
matter proceeded to hearing or had the director adopted the decision
of the hearing officer.
   (c) If the accusation alleges injury to, or fraud against, an
individual purchaser or potential purchaser, the director may enter
into an agreement pursuant to subdivision (b), but such a compromise
and settlement shall include, in addition to the monetary penalty set
forth by regulation, compensation for the injury or fraud, including
all costs of investigation and prosecution.
   (d) Each compromise settlement agreement and each monetary penalty
agreement entered into pursuant to this section shall be signed by
the respondent licensee, the director, and the accuser, or by their
authorized representatives, and filed with the Office of
Administrative Hearings, together with the department's notice of
withdrawal of the accusation upon which the action was initiated if
the compromise settlement agreement or monetary payment agreement is
entered into before the hearing.
   (e) Failure of the respondent to honor the terms and conditions of
any agreement entered into under this section shall render the
agreement null and void, and shall be cause for action pursuant to
Section 18058 in the same manner as the department may have otherwise
proceeded, notwithstanding the agreement.
   (f) The amount of the penalty provided for in subdivision (b)
shall not exceed five hundred dollars ($500) per violation and shall
be based upon the nature of the violation and the seriousness of the
violation against the purposes and provisions of this part.




18065.  The licenses or permits provided for in this part shall be
automatically canceled upon any of the following events:
   (a) The abandonment of the established place of business of the
licensee or the change thereof without notice to the department as
provided in this part.
   (b) The voluntary or involuntary surrender for any cause by the
licensee of the license. However, the surrender or cessation of
business by the licensee, or the suspension of the corporate charter
of the licensee by the state, shall not prevent the filing of an
accusation for revocation or suspension of the surrendered license as
provided in Section 18058 or the department's decision that the
license should be suspended or revoked. Furthermore, this
determination may be considered in granting or refusing to grant any
subsequent license authorized by this part to the licensee,
copartner, or any officer, director, or stockholder of the prior
licensee.
   (c) Notification that the person designated as licensee has
changed.
   (d) Suspension or cancellation of the corporate charter of the
licensee by the state.
   (e) Failure of a licensee to file an application for renewal for
the license or permit before the date of expiration of the current
license or permit.
   (f) Submittal of a check, draft, or money order to the department
for a license or license renewal fees due the department which is
thereafter dishonored or refused payment upon presentation and which
fees and penalty are not thereafter paid by cash, money order, or
cashier's check prior to the expiration of the license.



18065.5.  The revocation or suspension of a license may be limited
to one or more municipalities or counties or any other defined area,
or may be revoked or suspended in a defined area only as to certain
aspects of its business, or as to a specified licensee or licensees.



18066.  The suspension, expiration, or cancellation of a license
provided for in this part shall not prevent the filing of an
accusation for the revocation or suspension of the suspended,
expired, or canceled license as provided in Section 18058, and the
department's decision that the license should be suspended or
revoked. This determination may be considered in granting or refusing
to grant any subsequent license authorized by this part to the
licensee.


18066.5.  If a purchaser of a manufactured home, mobilehome, or
commercial coach pays to the dealer an amount for transfer of title
of the manufactured home, mobilehome, or commercial coach, which
amount is in excess of the actual fees due for the transfer, or which
amount is in excess of the amount which has been paid, prior to the
sale, by the dealer to the state in order to avoid penalties that
would have accrued because of late payment of the fees, the dealer
shall return the excess amount to the purchaser, whether or not the
purchaser requests the return of the excess amount.