Section 18070 Of Chapter 7.5. Manufactured Home Recovery Fund From California Health And Safety Code >> Division 13. >> Part 2. >> Chapter 7.5.
18070
. (a) The Legislature finds and declares all of the following:
(1) The financial hardship endured by someone who is buying or
selling a manufactured home for the purpose of using it for a primary
residence is more profound than the hardship of someone who is
selling or purchasing a manufactured home for investment purposes.
(2) It is, therefore, the intent of the Legislature in enacting
this chapter that any claims for primary residences submitted,
pursuant to this chapter, by a claimant for payment from the fund
shall be given priority over claims submitted for investment
purposes.
(3) The distinctions made in this chapter between claims made for
personal residential purposes and claims made for investment purposes
shall reflect the priorities set forth in this paragraph.
(4) The costs of seeking and obtaining civil judgments and related
collection efforts to support claims for compensation often exceed
the ability of claimants and the amounts received.
(5) The costs and efforts of public entities obtaining criminal or
administrative restitution orders could provide further benefits if
these orders could be used as the basis for compensation claims.
(b) The following definitions shall apply for the purposes of this
chapter:
(1) "Actual and direct loss" includes the following:
(A) The amount of the actual and direct loss, interest at the
statutory rate from the date of loss, plus court costs and reasonable
attorney's fees incurred in pursuit of the judgment, not to exceed
25 percent of the amount of the judgment, if the claim is based on a
judgment obtained by a private attorney or an attorney employed by a
nonprofit corporation, and not to exceed 35 percent of the amount of
the judgment if the claim is based on a judgment obtained by an
attorney employed by a public agency.
(B) The amount of the actual and direct loss, if the claim is not
based on a judgment. However, the claimant may collect actual and
reasonable costs incurred in pursuit of compensation including
attorney's fees not exceeding 15 percent of the amount of the claim
and court costs, if any.
"Actual and direct loss" does not include any punitive damages or
damages awarded for negligent or intentional infliction of emotional
distress.
(2) "Claimant" does not include a person holding a lien on, or a
person possessing a secondary interest in, a manufactured home.
(3) "Conversion" means the unlawful appropriation of the property
of another.
(4) "Judgment" means any of the following:
(A) A final judgment in a court of competent jurisdiction, other
than a court in another state, including, but not limited to, a
criminal restitution order issued pursuant to subdivision (f) of
Section 1202.4 of the Penal Code or Section 3663 of Title 18 of the
United States Code.
(B) An order of the director, including an order for restitution,
based on an accusation filed pursuant to Article 3 (commencing with
Section 18058) of Chapter 7, after an opportunity for a hearing.
(5) "Complaint" means the facts of the underlying transaction upon
which the criminal restitution order or administrative order is
based.
(6) "Judgment debtor" means any defendant who is the subject of
the criminal restitution order or civil judgment, any respondent who
is the subject of an administrative accusation and order, or any
person responsible for any violation upon which payment is made, as
determined by the department.
(c) There is hereby created in the State Treasury the Manufactured
Home Recovery Fund. The money in the fund shall be used only for the
purposes of this chapter, including payment of the department's
administrative costs incurred pursuant to this chapter. The
department's costs may include any investigative costs incurred under
this chapter, costs incurred to render a decision pursuant to
Section 18070.3, and costs incurred in defending a decision on
appeal.
(d) The moneys in the fund may be invested pursuant to Chapter 3
(commencing with Section 16430) of Part 2 of Division 4 of Title 2 of
the Government Code. All income derived from investments of the fund
shall be returned to the fund by the Treasurer as the income is
earned.
(e) Notwithstanding Section 13340 of the Government Code, the
moneys in the fund are hereby continuously appropriated to make the
payments and distributions required by this chapter.