2023 Tennessee Code › Title 68 - HEALTH, SAFETY AND ENVIRONMENTAL PROTECTION (§§ 68-1-NEW — 68-221-1319) › SAFETY (§§ 68-101-101 — 68-143-103) › Chapter 126 - MANUFACTURED HOMES (§§ 68-126-101 — 68-126-412) › Part 2 - UNIFORM STANDARDS CODE FOR MANUFACTURED HOMES ACT (§§ 68-126-201 — 68-126-215) › Section 68-126-206 - Licensing of manufacturers and dealers - Bond - Service of process on foreign manufacturers or dealers

(a)
(1)
It is unlawful to engage in business in this state as a manufacturer or retailer prior to obtaining a license from the commissioner. The commissioner may require of an applicant for a license such information and evidence of qualifications as are reasonably necessary to protect the public safety and welfare. An application for a license shall be submitted on the prescribed form, shall contain the applicant's business tax or privilege tax number, and shall be accompanied by payment of a fee as set by the commissioner by rule, promulgated pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5; provided, however, that the first percentage increase after January 1, 2016, shall not exceed one hundred percent (100%) of the current fee for a manufacturer's license or retail license; provided, further, that the fee for a manufacturer's license shall not exceed five hundred dollars ($500), and the fee for a retailer's license shall not exceed two hundred fifty dollars ($250). License fees shall be payable annually, and shall not be prorated for portions of a year. All licenses shall expire one (1) year from the date of issuance. The licensing requirements shall not apply to individual employees of a licensed retailer; provided, however, that at least one (1) employee of a licensed retailer who is directly involved in the installation of a manufactured home is required to be certified by the commissioner. In order to obtain such certification, the employee shall have completed a fifteen-hour course and shall have passed an examination in manufactured home installation approved by the commissioner. At least one (1) certified employee shall be physically on site at the time of installation of any manufactured home.
(2)
In addition to meeting other lawful requirements, an applicant for a license as a retailer shall present, at the time of application, proof of having completed a fifteen-hour course, approved by the commissioner, covering the installation of manufactured homes.
(3)
Prior to being issued a license as a retailer, an applicant shall have passed an examination in manufactured home installation that is approved by the commissioner.
(4)
Failure to comply with the requirements of this subsection (a) shall result in nonrenewal of the license, that shall be known as a retailer license.
(b)
As a prerequisite to renewal of a license as a retailer, the retailer shall present proof of having completed five (5) hours of continuing education in manufactured home installation, during the twelve-month period immediately preceding renewal, that is approved by the commissioner. Any manufacturer or retailer who fails to renew such manufacturer's or retailer's license on or before its expiration date, or who commences business in this state prior to obtaining a license, shall be required to pay a penalty, in an amount the commissioner may determine by rule, for acting as a manufacturer or retailer without a license, in addition to the fee established in subsection (a) for issuance of a license.
(c)
A separate license must be obtained for each manufacturing plant and retailer lot.
(d)
(1)
Any applicant for license as a manufacturer or retailer of a manufactured home or manufactured homes shall furnish a surety bond executed by the applicant, as principal, and by a surety company qualified to do business in this state, as surety. The bond shall be in a form approved by the department of commerce and insurance, and shall be executed to the department in favor of any person who may suffer loss or damage resulting from the applicant's violation of the conditions of such bond.
(2)
The bond required by subdivision (d)(1) shall be for the license period and a new bond or a proper continuation certificate shall be submitted with each application for renewal of such license.
(3)
Each manufacturer's bond shall be in the amount of fifty thousand dollars ($50,000), conditioned upon the manufacturer's compliance with this part, and all rules duly promulgated under this part. Each retailer's bond shall be in the amount of twenty-five thousand dollars ($25,000), conditioned upon the retailer's compliance with this part, the Tennessee Manufactured Home Anchoring Act, compiled in part 4 of this chapter, and all rules duly promulgated under part 4 of this chapter.
(4)
The aggregate liability of the surety in each license year shall in no event exceed the amount of the bond.
(5)
A separate bond shall not be required for each place of business operated by a manufacturer or retailer.
(6)
This subsection (d) shall not apply to a manufacturer of manufactured homes that is not subject to the manufactured home construction and safety standards established under the National Manufactured Home Construction and Safety Standards Act of 1974 (
42 U.S.C. § 5401
et seq.).
(e)
(1)
Any foreign or alien manufacturer or retailer shall, by duly executed instrument filed in such manufacturer's or retailer's office, constitute and appoint the commissioner and the commissioner's chief deputy, or their successors, its true and lawful attorneys upon either of whom all lawful process in any action or legal proceeding against it may be served, and in the instrument shall agree that any lawful process against it, which may be served upon the attorney, shall be of the same force and validity as if served on the company, and that the authority of the instrument shall continue in force, irrevocably, as long as any liability of the manufacturer or retailer remains outstanding in this state. Any process issued by any court of record in this state and served upon such commissioner or the commissioner's chief deputy by the proper officer of the county in which the commissioner or the commissioner's chief deputy may have an office, shall be deemed a sufficient process on the manufacturer and retailer, and it is the duty of the commissioner or the commissioner's chief deputy, promptly, after such service of process by any claimant, to forward, by registered mail, an exact copy of such notice to the manufacturer and retailer. Service of process from any county in this state upon the commissioner or the commissioner's chief deputy by the proper officer of the county in which the commissioner or the commissioner's chief deputy may have an office shall establish proper venue in the county from which the process was issued, if the plaintiff resides in that county, whether the manufacturer or retailer has an office or place of business located in one (1) or more other counties of this state or not.
(2)
If any such manufacturer or retailer does business in this state without having appointed the commissioner its true and lawful attorney as required in this subsection (e), it shall, by doing such business in the state, be deemed to have thereby appointed the commissioner its true and lawful attorney for the purposes set forth in this subsection (e). The requirements of this subsection (e) shall be in addition to, and not in derogation of, any other provision of law.
(3)
In the case of any action or proceeding instituted by or on behalf of the commissioner against or with reference to any such company, process may be lawfully served on the secretary of state.
(4)
Service of process shall be made by leaving two (2) copies of the process or notice, together with a fee of six dollars ($6.00), in the office of the commissioner, together with an affidavit giving the latest known address of the defendant, and such service shall be sufficient, if notice of such service and a copy of the process or notice are forthwith sent by registered mail, with return receipt requested, by the commissioner to the company at such latest known address. An affidavit of the commissioner showing compliance with this subdivision (e)(4) shall be filed with the paper in the action or proceeding. The court in which the action or proceeding is pending may order such continuances as may be necessary to afford the defendant reasonable opportunity to defend the action. No judgment shall be entered against any such defendant under this section until at least thirty (30) days have elapsed after process or notice has been served on the commissioner.
(5)
The references in this section to the commissioner shall, in the case of any action or proceeding instituted by or on behalf of the commissioner, be deemed to refer to the secretary of state, and the duties and responsibilities imposed by this section shall, in such cases, be performed and discharged by the secretary of state.
Amended by 2015 Tenn. Acts, ch. 483, s 4, eff. 1/1/2016.
Acts 1979, ch. 310, § 6; 1981, ch. 301, § 8; 1982, ch. 732, § 5; T.C.A., § 53-4826; Acts 1985, ch. 354, § 29; 1987, ch. 120, § 3; 1988, ch. 634, § 1; T.C.A., § 68-36-206; Acts 2002, ch. 793, §§ 1, 6, 7; 2004, ch. 913, § 1.