Arizona § 41-4046 - Enforcement powers of director; civil and administrative penalties

§ 41-4046. Enforcement powers of director; civil and administrative penalties

A. The director, personnel of the department and personnel under contract to the department, on presentation of credentials, shall be allowed to enter and inspect premises where units regulated by this chapter are manufactured, sold or installed as the director may deem appropriate to determine if any person has violated this chapter. A person who is licensed by the department may not refuse to admit the director or the personnel of the department or personnel under contract if the proper credentials are presented and the inspection is made at a reasonable time.

B. If the director has reasonable cause to believe a unit is being offered for sale by a party required to be licensed but not licensed as a dealer by the department or is in violation of this chapter, or the rules, regulations or standards adopted pursuant to this chapter, the department shall serve on the manufacturer, dealer, broker or installer a notice of violation, which may be affixed to the unit in violation and, if affixed to the unit, shall not be removed by anyone without the authorization of the department.

C. If there is reasonable cause to believe, from information furnished to the director or from an investigation instituted by the director, that any person is engaged in a business regulated by this article without being licensed as required by law, the director shall issue and serve on the person, by certified mail, a cease and desist order requiring the person immediately, on receipt of the notice, to cease and desist from engaging in such business. On failure of the person to comply with the order, the director shall file an action in the superior court in Maricopa county restraining and enjoining the person from engaging in such business. The court in the action shall proceed as in other actions for injunctions.

D. If in the judgment of the director any person has engaged, or is about to engage, in any acts or practices that constitute, or will constitute, a violation of this chapter, the rules, regulations or standards adopted pursuant to this chapter or an order issued pursuant to this chapter, the director may make application to the appropriate court for an order enjoining those acts or practices. On a showing by the director that the person has engaged in, or is about to engage in, any such acts or practices, an injunction, restraining order or such other order as may be appropriate shall be granted by the court without bond. On a showing by the director that a licensee has wrongfully withdrawn, or is about to wrongfully withdraw, funds required to be held in the licensee's trust account, an injunction, restraining order or such other order as may be appropriate to prevent a licensee from wrongfully withdrawing trust account monies shall be granted by the court. On granting a permanent injunction, the court may impose a civil penalty of not more than the civil penalty as determined annually by the United States department of housing and urban development for each violation.

E. In any investigation, proceeding or hearing that the director may institute, conduct or hold under this article, the director, or a representative designated by the director, may administer oaths, certify to official acts, issue subpoenas for attendance of witnesses and production of books, papers and records and exercise the same powers in this regard as conferred on public officers by section 12-2212.

F. After any hearing that the director may institute, conduct or hold under this article, the director or a representative designated by the director may impose an administrative penalty in an amount of not more than the civil penalty as determined annually by the United States department of housing and urban development for each violation. All monies collected pursuant to this subsection shall be deposited in the state general fund.

G. The director may refer to the attorney general or a county attorney for criminal or civil investigation the results of any investigation that indicate the existence of the elements of fraud, including investigative information regarding any person or entity that, although not a licensee under this article, has a business or other relationship to a licensee or to a manufactured home transaction under this article.

H. If an inspection reveals that a mobile home entering this state for sale or installation is in violation of this chapter, the department may order its use discontinued and the mobile home or any portion of the mobile home vacated.  The order to vacate shall be served on the person occupying the mobile home and copies of the order shall be posted at or on each exit of the mobile home. The order to vacate shall include a reasonable period of time in which the violation can be corrected. A person shall not occupy or use a mobile home in violation of an order to vacate.

I. If construction, rebuilding or any other work is performed in violation of this chapter or any rule adopted pursuant to this chapter, the department may order the work stopped. The order to stop work shall be served on the person doing the work or on the person causing the work to be done.  The person served with the order shall immediately cease the work until authorized by the department to continue.