Senate Bill No. 106

Senate Bill No. 106-Committee on Commerce and Labor

CHAPTER

AN ACT relating to manufactured housing; revising the grounds for disciplinary actions against licensees of the manufactured housing division of the department of business and industry; and providing other matters properly relating thereto.

[Approved May 2, 1997]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

~^
Section 1. Chapter 489 of NRS is hereby amended by adding thereto a new section to read as follows:
1. Upon a finding that a licensed dealer knew, or by the exercise of reasonable care and diligence should have known, of any unlawful act or violation of a provision of this chapter by a salesman, rebuilder, installer or serviceman who is employed by or associated with the licensed dealer, the division may suspend or revoke the license of the licensed dealer and impose a fine upon him of not more than $1,000.
2. Upon a finding that a licensed dealer failed to maintain adequate supervision of a salesman, rebuilder, installer or serviceman who, while employed by or associated with the licensed dealer, committed any unlawful act or violated a provision of this chapter, the division may suspend or revoke the license of a licensed dealer and impose a fine upon him of not more than $1,000.
Sec. 2. NRS 489.381 is hereby amended to read as follows:
489.381 The division may impose an administrative fine of not more than [$500] $1,000 per violation, and may deny, suspend or revoke any license issued under this chapter or reissue the license subject to reasonable conditions upon any of the grounds set forth in NRS 489.391 to 489.421, inclusive, which constitute grounds for disciplinary action. If discipline is imposed pursuant to this section, the costs of the proceeding, including investigative costs and attorney's fees, may be recovered by the division.
Sec. 3. NRS 489.391 is hereby amended to read as follows:
489.391 The following grounds, among others, constitute grounds for disciplinary action under NRS 489.381:
1. Except for a salesman, failure of the applicant to have an established place of business [.] or conducting business from a location that is not authorized by the division.
2. Financial insolvency of the applicant or licensee.
3. Material misstatement in the application or otherwise furnishing false information to the division.
4. Failure of a salesman or applicant for licensing as a salesman to establish by proof satisfactory to the division that he is employed by a licensed dealer or rebuilder.
5. Failure of an applicant for a license to provide proof satisfactory to the division of his good character and reputation and of his fitness to engage in the activities for which the license is sought.
6. Any conduct before licensing which was in fact unknown to the division and would have been grounds for denial of a license had the division been aware of the conduct.
7. Obtaining or disclosing the contents of an examination given by the division.
Sec. 4. NRS 489.401 is hereby amended to read as follows:
489.401 The following grounds, among others, constitute grounds for disciplinary action pursuant to NRS 489.381:
1. The intentional publication, circulation or display of any advertising which constitutes a deceptive trade practice as that term is defined in NRS 598.0915 to 598.0925, inclusive.
2. Failure to include in any advertising the name of the licensed dealer, rebuilder, serviceman or installer, or the name under which he is doing business.
3. Making any substantial misrepresentation or false promise which is likely to influence, persuade or induce, or continually failing to fulfill promises to sell, breaching agreements or contracts or making false promises by any means.
4. Failure to disclose all terms and conditions of a sale, purchase or lease or offer to sell, purchase or lease a manufactured home, mobile home or commercial coach.
5. Failure to disclose to a person with whom the licensed dealer is dealing with regard to the sale, purchase or lease of a manufactured home any material facts, structural defects or other material information which the licensed dealer knew, or which by the exercise of reasonable care and diligence should have known, concerning the manufactured home or concerning the sale, purchase or lease of the manufactured home.
6. Failure to comply with the provisions of NRS 489.595.
[6.] 7. Representing to any lender, guaranteeing agency or other interested party, orally or through the preparation of false documents:
(a) An amount in excess of the actual sales price;
(b) A false amount as the down payment, earnest money deposit or other valuable consideration;
(c) Terms differing from those actually agreed upon; or
(d) False information on a credit application.
[7.] 8. Inducing an applicant to falsify his credit application.
[8.] 9. Failure to obtain from the holder of any lien or security interest in a manufactured home, mobile home or commercial coach, within 10 days before the closure of a sale of the manufactured home, mobile home or commercial coach, a written acknowledgment that the holder of the lien or security interest has received written notification of the sale.
Sec. 5. NRS 489.411 is hereby amended to read as follows:
489.411 The following grounds, among others, constitute grounds for disciplinary action under NRS 489.381:
1. Claiming, demanding or receiving a fee, compensation or commission under any exclusive agreement, authorizing or employing a licensee to sell, buy or exchange a manufactured home, mobile home or commercial coach for compensation or commission, where the agreement does not contain a definite specified date of final and complete termination, does not set forth the terms and conditions of the exclusive agreement or is not signed by both the licensee and the owner.
2. While the employee, agent or fiduciary of a licensee, soliciting, accepting or agreeing to accept any benefit, fee, commission or compensation for the performance of any of the acts specified in this chapter from any person except the licensee with whom he is associated or employed.
3. Paying a commission or other compensation to any person or employing any person for performing the services of a person required to be licensed under this chapter who has not first secured his license pursuant to this chapter.
4. Commingling the money or other property of his principals with his own or converting the money of others to his own use.
5. Knowingly permitting a person whose license has been revoked or suspended or who does not hold a valid license to engage on behalf of the licensed dealer in acts that require a license.
6. In the case of a salesman, failing to give to the licensed dealer by whom the salesman is employed, as soon as practicable after receipt, a deposit or other money or consideration entrusted to him by a person dealing with the salesman as a representative of the licensed dealer.
7. Failing within a reasonable time to account for or to remit any money coming into his possession which belongs to others.
[6.] 8. Failure or refusal by a licensee to pay or otherwise discharge any final judgment rendered and entered against him which arises out of the conduct of his business licensed under this chapter.
9. Acting in the dual capacity of agent and undisclosed principal in a transaction.
Sec. 6. NRS 489.416 is hereby amended to read as follows:
489.416 The following grounds, among others, constitute grounds for disciplinary action under NRS 489.381:
1. Workmanship which:
(a) Is not commensurate with standards of the trade in general;
(b) Is below standards adopted by the division or the standards determined by the edition of the Uniform Building Code, Uniform Plumbing Code or the National Electrical Code, respectively, in effect on July 1, 1983; or
(c) Endangers the life and safety of an occupant of a manufactured home, mobile home or commercial coach.
2. Failure to honor any warranty or other guarantee given by a licensee for workmanship or material as a condition of securing a contract, or of selling, leasing, reconstructing, improving, repairing or installing any manufactured home, mobile home, commercial coach or accessory structure.
3. Gross negligence or incompetence in performing an act for which a license is required pursuant to this chapter.
Sec. 7. NRS 489.421 is hereby amended to read as follows:
489.421 The following grounds, among others, constitute grounds for disciplinary action under NRS 489.381:
1. Revocation or denial of a license issued pursuant to this chapter or an equivalent license in any other state, territory or country.
2. Failure of the licensee to maintain any other license required by any political subdivision of this state.
3. Failure to respond to a notice served by the division as provided by law within the time specified in the notice.
4. Failure to take the corrective action required in a notice of violation issued pursuant to NRS 489.291.
5. Failure or refusing to permit access by the administrator to documentary materials set forth in NRS 489.231.
[5.] 6. Disregarding or violating any order of the administrator, any agreement with the division, or any provision of this chapter or any regulation adopted under it.
[6.] 7. Conviction of a misdemeanor for violation of any of the provisions of this chapter.
[7.] 8. Conviction of or entering a plea of guilty, guilty but mentally ill or nolo contendere to a felony or a crime of moral turpitude in this state or any other state, territory or country.
9. Any other conduct that constitutes deceitful, fraudulent or dishonest dealing.
________