1. (A) A licensee who violates a provision of this chapter or regulation pertaining to warranty requirements, deposits, or recision of contracts shall appear upon citation by the board before an agent of the board appointed to act as administrative hearing officer for a hearing. Upon the finding of a violation, the hearing officer:

   1. (1) may for a first offense, impose a fine of not more than five hundred dollars or suspend the license for not more than thirty days, or both;
   2. (2) may for a second offense, impose a fine of not more than one thousand dollars or suspend the license for not more than sixty days, or both;
   3. (3) may for a third offense, impose a fine of not more than two thousand dollars or suspend the license for not more than ninety days, or both;
   4. (4) shall for a fourth or subsequent offense, present the violation to the board for disciplinary action pursuant to this chapter.

2. (B) The licensee must be given at least thirty days' notice of the time and place of the hearing and of the charges. A person aggrieved by a ruling of the administrative hearing officer may appeal to the board within fifteen days after the ruling. The request for appeal must be in writing. The board shall state in writing its findings and determinations in its decision in the matter on appeal.

   Appeals from the decision of the board may be made to an administrative law judge pursuant to the Administrative Procedures Act.

3. (C) A licensee who violates any provision of this chapter or regulations promulgated by its authority or accumulates three or more warranty or contract violations which have not been corrected within the prescribed time upon citation of the board shall appear before the board for a hearing. The licensee must be given at least thirty days' notice of the time and place of the hearing and of the charges. A person aggrieved by a ruling of the board may appeal to an administrative law judge pursuant to the Administrative Procedures Act. Upon the finding of such a violation, the board may:

   1. (1) impose a fine of not more than two thousand five hundred dollars or suspend or revoke the license or any combination thereof;
   2. (2) order an increase in surety bonding or other approved security requirements.
4. (D) The board may conduct hearings and presentations of views consistent with regulations adopted by the United States Department of Housing and Urban Development and adopt regulations necessary to carry out this function.

HISTORY: 2001 Act No. 61, Section 1.