California Health and Safety Code § 18020

Health and Safety Code
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(a) Except as provided in Section 18027.3, and except as provided by the National Manufactured Housing Construction and Safety Standards Act of 1974 (42 U.S.C. Sec. 5401 et seq.), as it applies to the manufacture of new manufactured housing, the department shall enforce this part and the rules and regulations adopted pursuant to this part. (b) The department may, at the department’s sole option, enforce Chapter 4 (commencing with Section 18025) and the rules and regulations adopted pursuant to Chapter 4 through department-approved third-party entities. The department shall adopt regulations for the approval of third-party entities, including, but not limited to, all of the following criteria: (1) Freedom from any conflict of interest. (2) Qualifications of personnel. (3) Frequency of inspections or monitorings of manufacturer quality control. (4) Involvement in collusive or fraudulent actions related to the performance of activities required by Section 18013.2. (5) Any other conditions of operation that the department may reasonably require. (c) The department may require rotation of third-party entities performing inspection services for any manufacturing facility within the state to prevent the third-party entity from either performing inspections within the same facility for more than 365 calendar days or performing inspections for any facility when the third-party entity performed inspection services within the previous 365 calendar days. (d) The department shall monitor the performance of third-party entities approved pursuant to subdivision (b) and shall require periodic reports in writing containing information that the department may reasonably require to determine compliance with the conditions of the department’s approval. (1) When the department receives information about an alleged inadequacy in the performance of a third-party entity, including any involvement in collusive or fraudulent actions related to the performance of activities required by Section 18013.2, it shall consider the information in its monitoring efforts and make a determination about the validity of the alleged inadequacy in a timely manner. (2) When the department determines, either through its monitoring efforts or through information provided by any other person, that an approved third-party entity has failed to perform according to the conditions of approval, the department may withdraw approval by forwarding written notice to the approved third-party entity by registered mail to its address of record, briefly summarizing the cause for the department’s decision. (3) A third-party entity, upon having its approval withdrawn by the department, may request a hearing before the director of the department. The request for hearing shall be in writing and either delivered or postmarked prior to midnight on the 10th calendar day from the date of the department’s notice. (4) The department, upon timely receipt of a written request for hearing, shall, within 30 calendar days, schedule a hearing before the director or his or her agent. All hearings pursuant to this subdivision shall be held in the department’s Sacramento offices and the decision of the director shall be final. (5) A third-party entity whose approval has been withdrawn by the department shall not be permitted to reapply for the department’s approval pursuant to subdivision (b) for a period of one year from the date that the approval was withdrawn by the department. (6) A third-party entity whose approval has been withdrawn more than once by the department shall not be permitted to reapply for department approval pursuant to subdivision (b) for a period of not less than one year from the date that the department’s approval was last withdrawn. (7) No third-party entity shall perform the activities required by Section 18013.2 unless it has the approval of the department. (e) (1) Upon finding a violation of subdivision (b) on the part of a third-party entity, the director shall

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