1. (a) Requirements for certification of retailers.

   1. (1) Application forms shall be supplied by the agency.

   2. (2) Each application shall be accompanied by the following before original certification is granted:

      1. (A) Statement of compliance;
      2. (B) Fees set forth for certification;
      3. (C) The required deposit in the Manufactured Housing Recovery Fund;
      4. (D) Proof of installation, anchoring, and service capabilities, including compliance with installation testing and continuing education requirements set forth in 20 CAR § 911-204(a)(3) or provision of a written contract with a licensed installer to perform installation and anchoring of manufactured homes;
      5. (E) Salespersons' license applications with fees other than the owner or owners of the retail location;
      6. (F) A list of all directors, officers, limited and general partners, or controlling shareholders if the application is made on behalf of a corporation or partnership or a list of all principal owners of the retail location on a form provided by the agency;
      7. (G) A general business/employment history for each person identified on the application form, including a sworn statement that none of the directors, officers, partners, shareholders, or owners of the applicant have:

2. (i) Been found guilty, pleaded guilty or entered a plea of nolo contendere, or suffered a judgment in a civil action in this state or any other jurisdiction for forgery, embezzlement, obtaining funds under false pretenses, extortion, conspiracy to defraud, bribery, fraud, or misrepresentation; or

   1. (ii) Had a license, permit, or certification suspended or revoked by any government agency in this state or any other jurisdiction for violation of federal or state laws, rules, or regulations;

      1. (H)

         1. (i) Evidence of a net worth of at least one hundred thousand dollars ($100,000).
         2. (ii) A financial statement, compiled or reviewed by an independent, third-party accounting firm, prepared within six (6) months of the application date, for each owner or partner, if the applicant is a sole proprietor or partnership, or the business, if the applicant is a corporation, LLC, or LLP; and

      2. (I)

         1. (i) Evidence of having at least two (2) years’ experience as a licensed retailer or salesperson, working for a licensed retailer, in this state or any other jurisdiction.
         2. (ii) Applicants purchasing a retail location currently licensed by the Arkansas Manufactured Home Commission will be exempt from the experience requirement.

   2. (3) Applicants for original or renewal certification must maintain:

      1. (A) A business office, separate and apart from any residence, connected to all applicable public utilities and in compliance with applicable local zoning regulations;
      2. (B) A public restroom, connected to all applicable public utilities;
      3. (C) A valid landline business telephone, with number listed under the name of the business;
      4. (D) A state sales tax permit and master certification issued by the Department of Finance and Administration;
      5. (E) Proof of at least one million dollars ($1,000,000) in commercial general liability insurance issued in the name of the business; and

      6. (F)

         1. (i) A permanent, all-weather business sign in view of public traffic bearing the name of the firm and identifying the firm with the housing industry.
         2. (ii) Sign letters shall be at least eight inches (8”) in height.
   3. (4) Applicant shall be in good standing with the commission and shall not have any unpaid civil penalties or outstanding obligations to the commission.

   4. (5)

      1. (A) Any person applying for an initial certification with the commission shall be subject to a criminal background check.
      2. (B) If the criminal background check shows that the applicant has been convicted of a felony, the certification will not be granted without a hearing before the commission and approval by the commission.

   5. (6)

      1. (A) An applicant for original or renewal certification may request a waiver of any of the requirements for certification set forth in this section.
      2. (B) The commission may grant an applicant’s request for a waiver of any of the requirements set forth in this section, other than a requirement mandated by statute, following a hearing before the commission and approval of the waiver request by the commission.

3. (b) Certification fee and recovery fund deposit.

   1. (1) The original certification fee shall be one thousand dollars ($1,000).
   2. (2) The annual renewal fee shall be two hundred fifty dollars ($250).

   3. (3) An assessment fee of five thousand dollars ($5,000) per location to be deposited in the Manufactured Housing Recovery Fund.

      1. (c) Sales or auction to retailers.
   4. (1) Any person, firm, or corporation engaged in the sale of manufactured homes to certified retailers in the state in an auction or liquidation format or on consignment, other than manufacturers, shall not be required to become certified and shall not be subject to the requirements for certification set forth in this part.

   5. (2) Any person, firm, or corporation engaged in the sale of manufactured homes to certified retailers in the state in an auction or liquidation format or on consignment shall submit to the commission, immediately following such auction or sale, a report on forms provided by the commission, including the following information:

      1. (A) A complete list of the homes sold, auctioned, or consigned;
      2. (B) The manufacturer, model, and size of each home;
      3. (C) The serial number and United States Department of Housing and Urban Development label number of each home; and

      4. (D) The name and license number of the retailer purchasing the home.

         1. (d) Violation. Any person, firm, or corporation acting as a retailer without being properly certified with the commission, any retailer accepting a manufactured home, directly or indirectly, from a manufacturer not certified with the commission, any retailer using an installer not licensed with the commission, or any retailer failing to license a salesperson with the commission within thirty (30) days of hiring is in violation of this act.

Codification Notes: "LLC" means limited liability company. "LLP" means limited liability partnership.