Chapter 3. Enforcement of California Health And Safety Code >> Division 13. >> Part 2. >> Chapter 3.
(a) Except as provided in Section 18027.3, and except as
provided by the National Manufactured Housing Construction and Safety
Standards Act of 1974 (42 U.S.C. Sec. 5401 et seq.), as it applies
to the manufacture of new manufactured housing, the department shall
enforce this part and the rules and regulations adopted pursuant to
(b) The department may, at the department's sole option, enforce
Chapter 4 (commencing with Section 18025) and the rules and
regulations adopted pursuant to Chapter 4 through department-approved
third-party entities. The department shall adopt regulations for the
approval of third-party entities, including, but not limited to, all
of the following criteria:
(1) Freedom from any conflict of interest.
(2) Qualifications of personnel.
(3) Frequency of inspections or monitorings of manufacturer
(4) Involvement in collusive or fraudulent actions related to the
performance of activities required by Section 18013.2.
(5) Any other conditions of operation that the department may
(c) The department may require rotation of third-party entities
performing inspection services for any manufacturing facility within
the state to prevent the third-party entity from either performing
inspections within the same facility for more than 365 calendar days
or performing inspections for any facility when the third-party
entity performed inspection services within the previous 365 calendar
(d) The department shall monitor the performance of third-party
entities approved pursuant to subdivision (b) and shall require
periodic reports in writing containing information that the
department may reasonably require to determine compliance with the
conditions of the department's approval.
(1) When the department receives information about an alleged
inadequacy in the performance of a third-party entity, including any
involvement in collusive or fraudulent actions related to the
performance of activities required by Section 18013.2, it shall
consider the information in its monitoring efforts and make a
determination about the validity of the alleged inadequacy in a
(2) When the department determines, either through its monitoring
efforts or through information provided by any other person, that an
approved third-party entity has failed to perform according to the
conditions of approval, the department may withdraw approval by
forwarding written notice to the approved third-party entity by
registered mail to its address of record, briefly summarizing the
cause for the department's decision.
(3) A third-party entity, upon having its approval withdrawn by
the department, may request a hearing before the director of the
department. The request for hearing shall be in writing and either
delivered or postmarked prior to midnight on the 10th calendar day
from the date of the department's notice.
(4) The department, upon timely receipt of a written request for
hearing, shall, within 30 calendar days, schedule a hearing before
the director or his or her agent. All hearings pursuant to this
subdivision shall be held in the department's Sacramento offices and
the decision of the director shall be final.
(5) A third-party entity whose approval has been withdrawn by the
department shall not be permitted to reapply for the department's
approval pursuant to subdivision (b) for a period of one year from
the date that the approval was withdrawn by the department.
(6) A third-party entity whose approval has been withdrawn more
than once by the department shall not be permitted to reapply for
department approval pursuant to subdivision (b) for a period of not
less than one year from the date that the department's approval was
(7) No third-party entity shall perform the activities required by
Section 18013.2 unless it has the approval of the department.
(e) (1) Upon finding a violation of subdivision (b) on the part of
a third-party entity, the director shall issue citations and levy
administrative fines. Each citation and fine assessment shall be in
writing and describe the particulars for the citation. The citation
and fine assessment shall be issued not later than six months after
discovery of the violation.
(2) The fine for a first violation shall be at least five hundred
dollars ($500) and shall not exceed one thousand dollars ($1,000).
The fine for a second violation shall be at least two thousand
dollars ($2,000) and shall not exceed four thousand dollars ($4,000).
The fine for a third violation shall be at least five thousand
dollars ($5,000), and shall not exceed ten thousand dollars
($10,000). The fines shall be assessed for each day the violation
occurs. If a third-party entity has been cited more than three times
during a 365-day period, the approval to conduct inspections on
behalf of the department shall be suspended for a minimum of one
(3) The third-party entity may request an administrative hearing
on the citation or fine. If the party fails to request a hearing
within 30 days and does not pay the fine, the approval to perform
inspections shall be automatically revoked, until the time that the
department finds that the circumstances that led to the citation have
been corrected and the fines have been paid.
(4) Upon review of the findings from the administrative hearing,
the director may modify, rescind, or uphold the citation and fine
assessment. The decision of the director shall be served by regular
(5) The fines shall be paid into the Housing and Community
Development Fund, which is hereby created in the State Treasury, and
shall be used, when appropriated by the Legislature, to offset the
department's costs to administer this part.
(f) The remedies provided in this part to any aggrieved party are
not exclusive and shall not preclude the applicability of any other
provision of law.
(a) Any person who knowingly violates any provision of
this part or any rule or regulation issued pursuant to this part,
except for a violation of any federal manufactured home or mobilehome
construction and safety standard for which a penalty is provided in
Section 18021, is guilty of a misdemeanor, punishable by a fine not
exceeding two thousand dollars ($2,000), by imprisonment not
exceeding 30 days, or by both.
(b) Notwithstanding Section 801 of the Penal Code, the one-year
period for filing an indictment or an information or complaint with
respect to any misdemeanor in subdivision (a) by a licensee in the
first sale or lease of any manufactured home, mobilehome, or
commercial coach to a consumer shall commence on the date that the
manufactured home, mobilehome, or commercial coach is delivered to
(a) Any person who knowingly violates any provision of
Section 5409 of Title 42 of the United States Code, or any regulation
or final order issued thereunder as it exists on the effective date
of this section in this state, shall be liable to the state for a
civil penalty of not to exceed one thousand dollars ($1,000) for each
violation. Each violation of a provision of Section 5409 of Title 42
of the United States Code, or any regulation or order issued
thereunder, as it exists on the effective date of this section shall
constitute a separate violation with respect to each manufactured
home or mobilehome, or with respect to each failure or refusal to
allow or perform an act required thereby, except that the maximum
civil penalty may not exceed one million dollars ($1,000,000) for any
related series of violations occurring within one year from the date
of the first violation.
(b) Any individual or a director, officer, or agent of a
corporation, who knowingly violates Section 5409 of Title 42 of the
United States Code as it exists on the effective date of this section
in this state in a manner which threatens the health and safety of
any purchaser, shall be subject to a state fine of not more than one
thousand dollars ($1,000), or by imprisonment for not more than one
year, or by both such a fine and imprisonment.
(a) Any person who knowingly violates any of the
provisions of this part relating to licensing or titling and
registration, or any rules or regulations promulgated therefor, is
guilty of a misdemeanor, punishable by a fine not exceeding two
thousand dollars ($2,000) or by imprisonment not exceeding 30 days,
or by both.
(b) The department, after notice and hearing, may suspend or
revoke the license issued to a licensee, as provided for by this
part, who knowingly violates any of the provisions of this part. In
any hearing before a judge or in any administrative action before an
administrative law judge, the department may seek and may recover its
investigative and enforcement costs from the licensee unless the
licensee prevails on the charges. The department may also seek fines
and may seek restitution as provided in subdivision (d).
(c) Any person who knowingly violates any provision of this part
relating to licensing or titling and registration, or any rules or
regulations promulgated therefor, shall be liable for a civil penalty
not exceeding two thousand dollars ($2,000) for each violation or
for each day of a continuing violation. The department shall
institute or maintain an action in a court of appropriate
jurisdiction to collect any civil penalty arising under this section.
(d) In addition to the other remedies provided in this section,
the department may pursue any other remedies provided for in this
part and may seek restitution for any monetary loss to a purchaser,
seller, licensee, financing agency, governmental agency, or other
person or entity suffering a monetary loss as a result of a violation
of this part.
(e) In any disciplinary hearing before an administrative law judge
concerning licensing, upon request of the department and pursuant to
appropriate proof, the administrative law judge shall make the
(1) The amount of the actual and direct monetary loss to any
person or entity as a result of fraud, willful misrepresentation, or
breach of warranty or guarantee by the respondent.
(2) The amount of the department's investigative and enforcement
costs up to and including the date of the hearing, including, but not
limited to, charges imposed by the Office of Administrative Hearings
for hearing the case and issuing a proposed decision.
Nothing in this part shall be construed as precluding the
application of any other provision of the penal laws of this state to
any transaction involving fraud, misrepresentation, forgery, or
deceit which violates this part.
(a) (1) In addition to other remedies provided in this
part, the Director of Housing and Community Development or his or her
designee may issue a citation that assesses a civil penalty payable
to the department to any licensee who violates subdivision (d) of
Section 18020, Section 18021.5, 18026, 18029.6, or 18030, subdivision
(b) of Section 18032, Section 18035, 18035.1, 18035.2, 18035.3,
18036, 18039, 18045, 18045.5, 18045.6, 18046, or 18058, subdivision
(a) of Section 18059, subdivision (b) of Section 18059.5, subdivision
(c) of Section 18060, subdivision (c) of Section 18060.5, Section
18061, subdivision (d), (i), or (j) of Section 18061.5, subdivision
(a) or (b) of Section 18062, subdivision (a), (b), (d), (e), (f),
(g), or (h) of Section 18062.2, subdivision (c) of Section 18063, or
(2) A violation of subdivision (d) of Section 18060.5 is also
cause for citation if both the dealer and the manufacturer receive
written notice of a warranty complaint from the complainant, from the
department, or another source of information, and, at a minimum, the
90-day period provided for correction of substantial defects
pursuant to Section 1797.7 of the Civil Code has expired.
(3) Each citation and related civil penalty assessment shall be
issued no later than one year after discovery of the violation.
(b) (1) Except as provided in paragraph (2), the amount of any
civil penalty assessed pursuant to subdivision (a) shall be one
hundred dollars ($100) for each violation, but shall be increased to
two hundred fifty dollars ($250) for each subsequent violation of the
same prohibition for which a citation for the subsequent violation
is issued within one year of the citation for the previous violation.
The violation or violations giving cause for the citation shall be
corrected if applicable, and payment of the civil penalty shall be
remitted to the department within 45 days of the date of issuance of
the citation. Civil penalties received by the department pursuant to
this section shall be deposited in the Mobilehome-Manufactured Home
(2) (A) For violations of subdivision (d) of Section 18020, or
Section 18026, the department shall assess the civil penalties in a
range between two hundred fifty dollars ($250) and two thousand
dollars ($2,000). When determining the amount of the assessed civil
penalty, the department shall take into consideration whether one or
more of the following or similar circumstances apply:
(i) The citation includes multiple violations.
(ii) The cited person has a history of violations of the same or
similar provisions of this division and the regulations promulgated
under this division.
(iii) In the judgment of the department, the person has exhibited
bad faith or a conflict of interest.
(iv) In the judgment of the department, the violation is serious
(v) The citation involves a violation perpetrated against a senior
citizen, veteran, or person with disabilities.
(B) If a citation lists more than one violation and each of the
violations relates to the same manufacturing facility or client, the
total penalty assessment in each citation shall not exceed ten
thousand dollars ($10,000).
(C) If a citation lists more than one violation, the amount of
assessed civil penalty shall be stated separately for each section
(c) Any person or entity served a citation pursuant to this
section may petition for, and shall be granted, an informal hearing
before the director or his or her designee. The petition shall be a
written request briefly stating the grounds for the request. Any
petition to be considered shall be received by the department within
30 days of the date of issuance of the citation.
(d) Upon receipt of a timely and complying petition, the
department shall suspend enforcement of the citation and set a time
and place for the informal hearing and shall give the licensee
written notice thereof. The hearing shall commence no later than 30
days following receipt of the petition or at another time scheduled
by the department pursuant to a request by the licensee or department
if good and sufficient cause exists. If the licensee fails to appear
at the time and place scheduled for the hearing, the department may
notify the licensee in writing that the petition is dismissed and
that compliance with terms of the citation shall occur within 10 days
after receipt of the notification.
(e) The department shall notify the petitioner in writing of its
decision and the reasons therefor within 30 days following conclusion
of the informal hearing held pursuant to this section. If the
decision upholds the citation, in whole or in part, the licensee
shall comply with the citation in accordance with the decision within
30 days after the decision is mailed by the department.
(f) Nothing in this section shall be construed to preclude
remedies available under other provisions of law.
(a) The director, and other representatives of the
department designated by him or her, shall enforce those provisions
of law committed to the administration of the department pursuant to
(b) Any person designated in subdivision (a) may inspect any
manufactured home, mobilehome, commercial coach, or truck camper of a
type required to be registered under this code, or any component
part thereof, in any garage, repair shop, parking lot, new or used
sales facility, manufacturer's facility, display facility, or any
other establishment engaged in the business of selling, repairing, or
displaying manufactured homes, mobilehomes, commercial coaches, or
truck campers, or the integral parts thereof, for the purpose of
investigating the title and registration of the manufactured home,
mobilehome, commercial coach, or truck camper, or the sales practices
(a) Whenever the director determines through an
investigation that any person has violated this part, or any
regulation, order, license, permit, decision, demand, or requirement
or any part or provision thereof issued pursuant to this part, the
director may bring an action in the name of the people of the State
of California against that person to enjoin the person from
continuing the violation or engaging therein or doing any act or acts
in furtherance thereof.
In the action, an order or judgment may be entered awarding a
preliminary or final injunction as may be proper.
If the director makes a showing satisfactory to the court that the
violation or threatened violation jeopardizes funds and properties
of others in the custody or under the control of the defendant, the
court may appoint a receiver for management of the business of the
defendant, including, but not limited to, the funds and properties of
others in his or her possession or may make any other order as it
deems appropriate to protect and preserve those funds and properties.
(b) The director may include in any action authorized by
subdivision (a), a claim for restitution on behalf of the persons
injured by the act or practice constituting the subject matter of the
action, and the court shall have jurisdiction to award appropriate
relief to those persons.
(a) The director, and any other representatives of the
department designated by the director, shall have the powers of peace
officers only for the purpose of service of warrants or documents
and for the cooperation with other law enforcement agencies in the
collection of information.
(b) The department shall notify any concerned governmental agency
whenever it is determined by investigation that an escrow agent has
done any of the following:
(1) Violated Section 18035, 18035.2, or applicable administrative
rules and regulations.
(2) Engaged in loan fraud.
(3) Submitted false information to the department for the purposes
of titling and registration of a manufactured home or mobilehome.
(a) If, upon inspection or investigation, based upon a
complaint or otherwise, the department has cause to believe that a
person is acting in the capacity, or engaging in the business, of a
dealer within this state without having a license in good standing
therefor, and the person is not otherwise exempt pursuant to
subdivision (b) of Section 18002.6, the department may issue a
citation to that person in writing, describing with particularity the
basis of the citation. Each citation may contain an order of
abatement and assessment of a civil penalty not to exceed two
thousand dollars ($2,000). All civil penalties collected under this
section shall be deposited in the Mobilehome-Manufactured Home
Revolving Fund provided for in Section 18016.5.
(b) The department may adopt regulations prescribing procedures
for issuance of citations under this section and covering the
assessment of a civil penalty which shall give due consideration to
the gravity of the violation, the good faith of the person cited, and
any history of previous violations.
(c) The sanctions authorized under this section shall be separate
from, and in addition to, all other civil or criminal remedies.
A citation under Section 18024 shall be issued by the
department within three years after the act or omission which is the
basis for the citation.
Any person served with a citation under Section 18024 may
appeal to the department within 30 days from the receipt of the
citation with respect to violations alleged, scope of the order of
abatement, or amount of civil penalty assessed. The citation shall
inform the person served that an appeal is required to be filed
within 30 days of receipt by the person of the citation. The citation
shall be delivered by personal service or substitution.
If, within 30 days from receipt of the citation, the
person cited fails to notify the department that he or she intends to
appeal the citation, the citation shall be deemed final. However,
the person cited may obtain judicial review in accordance with
Section 11523 of the Government Code. The person cited shall receive
court costs and attorney's fees if he or she prevails. The 30-day
period may be extended by the department for good cause.
If the person cited under Section 18024 timely notifies
the department that he or she intends to contest the citation, the
department shall afford an opportunity for a hearing. The department
shall thereafter issue a decision, based on findings of fact,
affirming, modifying, or vacating the citation or directing other
appropriate relief. The proceedings under this section shall be
conducted in accordance with the provisions of Chapter 5 (commencing
with Section 11500) of Part 1 of Division 3 of Title 2 of the
Government Code, and the department shall have all the powers granted
After the exhaustion of the review procedures provided for
in Sections 18024.3 to 18024.5, inclusive, the department may apply
to the appropriate superior court for a judgment in the amount of the
civil penalty and an order compelling the cited person to comply
with the order of abatement. The application, which shall include a
certified copy of the final order of the department, shall constitute
a sufficient showing to warrant the issuance of the judgment and