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Commerce & Insurance combines manufactured‑housing rules, raises some penalties and fees

Joint Government Operations Committee (TN) · February 19, 2026

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Summary

The Department of Commerce and Insurance explained rule changes consolidating manufactured home rules, broadening training topics and allowing civil‑penalty discretion up to $1,100 (from a prior mandatory $500); the committee recommended the rules favorably after questions about frequency of violations and fee rationale.

Department of Commerce and Insurance officials told the committee the manufactured‑housing rules consolidate three separate chapters into a single chapter, update course topic lists, repeal provisions no longer under department jurisdiction, and adjust penalties and reinspection fees.

"Right now, it's a mandatory $500 for civil penalty, and this rule allows us the discretion to go anywhere from 0 to $1,100 for civil penalties for manufacturers, retailers, or installers who conduct business without the proper license," Director Jim Hightower said. The rules also increase the fee for a second or subsequent reinspection (a red‑tag reinspection) from $50 to $100; the first reinspection remains free.

Hightower and Commissioner Mike Belz said the department conducted a rulemaking hearing on July 9 and received one public comment from the Tennessee Housing Association expressing overall support while requesting consideration of license fees and implementation timing. The department said the penalty discretion is intended to allow greater flexibility for enforcement against repeat bad actors while allowing leniency for first‑time, corrective violations.

Representative Glenn asked about the frequency of licensure violations; Hightower estimated about three to five licensure violations per month, typically by different companies who subsequently remediate the issue. Members also questioned whether the state’s enforcement role replaces federal oversight; department officials said the state enforces federal standards in lieu of HUD and noted that allowing discretion helps target bad actors.

After questions on fee structures and enforcement approaches, the committee moved the rules with a positive recommendation. The rules will proceed to the legislature for further consideration and any possible amendment.