HOUSE BILL 1241
48th legislature - STATE OF NEW MEXICO - first session, 2007
INTRODUCED BY
Debbie A. Rodella
AN ACT
RELATING TO CONSTRUCTION INDUSTRIES; REQUIRING THAT CERTAIN MANUFACTURERS, DEALERS AND INSTALLERS OF MODULAR HOMES WARRANT THEIR PRODUCTS AND SERVICES; PROVIDING PRIVATE RIGHTS OF ACTION FOR VIOLATION OF MODULAR HOUSING WARRANTY REQUIREMENTS; PROVIDING PENALTIES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. SHORT TITLE.--This act may be cited as the "Modular Housing Warranty Act".
Section 2. DEFINITIONS.--As used in the Modular Housing Warranty Act:
A. "division" means the construction industries division of the regulation and licensing department;
B. "manufacturer" means a manufacturer of modular housing that manufactures modular housing outside of an enclosed factory building; and
C. "modular housing" means a building intended for residential use and designed to be placed on a permanent foundation that is built in modules that are transported to the home site on flat-bed trucks.
Section 3. MANUFACTURER'S WARRANTIES.--
A. A manufacturer of modular homes sold in this state shall provide an express warranty to the consumer. The manufacturer's warranty shall be in writing and shall provide:
(1) that the modular home complies with the Modular Housing Warranty Act and the rules of the division;
(2) that the warranty is in effect for a period of at least one year from the date of delivery to the consumer, is not restricted to the original consumer and shall carry forward to subsequent owners during the one-year period;
(3) that the modular home is free from defects in materials and workmanship;
(4) that the manufacturer warrants all appliances and equipment installed in the modular home by the manufacturer to be free from defects in material and workmanship for a period of at least one year from date of delivery;
(5) that the manufacturer shall take appropriate corrective action, within a reasonable period of time, after a defect has been communicated to the manufacturer by the division or by the consumer;
(6) the license number, address and telephone number of the manufacturer where notices of defects or warranty violations may be given; and
(7) that the warranty shall not be voided as long as the installation of the modular home conforms to division rules.
B. A manufacturer shall warrant repair work performed under the one-year warranty. Such repair work shall be warranted for at least ninety days or until the end of the original one-year warranty, whichever is later. The warranty need not be in writing.
C. A manufacturer may not limit, modify or disclaim the manufacturer's obligations under this section, nor substitute the manufacturer's warranty obligations with the warranty of a dealer, installer or subcontractor.
Section 4. DEALER'S WARRANTIES.--
A. A dealer of a modular home manufactured by a manufacturer and installed in this state shall provide an express warranty to the consumer. The dealer's warranty shall be in writing, shall be delivered to the consumer on or before the date of delivery of the modular home to the consumer and shall provide:
(1) that all changes, additions or alterations made to the modular home by the dealer are free from defects in materials and workmanship, and that all appliances and equipment installed by the dealer are free from defects in materials and workmanship unless the dealer furnishes a valid written warranty from the manufacturer or dealer of the appliances and equipment to the consumer warranting against a defect in materials or workmanship to the consumer for a period of time customary in the industry for a warranty for the particular appliance or equipment;
(2) that the dealer warranties shall be in effect for a period of at least one year from the date of delivery to the consumer, are not restricted to the original consumer and shall carry forward to subsequent owners during the one-year period;
(3) that the dealer shall take appropriate corrective action within a reasonable period of time after a defect has been communicated to the dealer by the division or by the consumer; and
(4) the license number, address and telephone number of the dealer where notice of defects or warranty violations may be given.
B. A dealer shall warrant repair work on changes, additions or alterations made or authorized by the dealer performed under the one-year warranty. Such repair work shall be warranted for a period of at least ninety days or until the end of the original one-year warranty, whichever is later. This warranty need not be in writing.
Section 5. INSTALLER'S WARRANTIES.--
A. An installer of a modular home manufactured by a manufacturer and installed in this state shall provide the consumer, at the time of installation, with a written warranty providing:
(1) that all services performed by the installer have been performed in compliance with the Modular Housing Warranty Act and division rules;
(2) that any installation of an appliance or accessory sold by the installer to the consumer is free from defects in materials and workmanship, unless the installer provides the consumer with a valid written warranty from the maker or dealer of the materials, appliances or accessory warranting against any defect in the materials or workmanship for a period of time customary in the industry for a warranty for the particular appliance, equipment or material;
(3) that the installer shall take the appropriate corrective action within a reasonable period of time after a defect has been communicated to the installer by the division or the consumer; and
(4) that the warranty shall contain the license number, address and telephone number of the installer where notice of defects and warranty violations may be given.
B. Installers shall warrant against defects in materials or workmanship and all repair work performed by them under the warranty required in this section. Such repair work shall be warranted for a period of at least ninety days or until the end of the original warranty, whichever is later. This warranty need not be in writing.
Section 6. PENALTIES--PRIVATE RIGHT OF ACTION--ATTORNEY FEES.--
A. A person who knowingly and willfully violates a provision of the Modular Housing Warranty Act or a rule, regulation or administrative order of the division in a manner that threatens the health or safety of a purchaser or consumer is guilty of a misdemeanor and upon conviction shall be fined not more than one thousand dollars ($1,000) or shall be confined in the county jail not longer than one year or both.
B. In an action brought to enforce a provision of the Modular Housing Warranty Act, the attorney general, upon petition to the court, may recover on behalf of the state a civil penalty not to exceed one thousand dollars ($1,000) for each violation, 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.
C. A person may bring an action in a court of competent jurisdiction to recover actual and punitive damages for injury resulting from a violation of a warranty under the Modular Housing Warranty Act. The court may award reasonable attorney fees and costs to the prevailing consumer in an action brought under this section. The right to bring an action pursuant to this section is in addition to any other statutory or common law rights or remedies.
D. Failure by a manufacturer, dealer or installer to comply with the warranty provisions of the Modular Housing Warranty Act or any implied warranties or the violation of any provision of the Modular Housing Warranty Act by a person is an unfair or deceptive trade practice in addition to those practices defined in the Unfair Practices Act and is actionable pursuant to the Unfair Practices Act. As such, the venue provisions and all remedies available in the Unfair Practices Act apply to and are in addition to the remedies in the Modular Housing Warranty Act.
Section 7. DIVISION RULES.--The division, subject to construction industries commission approval, shall adopt rules necessary to carry out the provisions of the Modular Housing Warranty Act.
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