HOUSE BILL No. 5173


     October 10, 2001, Introduced by Reps. Jamnick, Richardville, DeRossett and Ruth Johnson and referred to the Committee on Commerce.


        A bill to amend 1987 PA 96, entitled

   "The mobile home commission act,"

   by amending the title and sections 30c and 30g (MCL 125.2330c and

   125.2330g) and by adding section 30i.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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                                    TITLE

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           An act to create a mobile home commission; to prescribe its

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      powers and duties and those of local governments; to provide for

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      a mobile home code and the licensure, regulation, construction,

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      operation, and management of mobile home parks, the licensure and

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      regulation of retail sales dealers, warranties of mobile homes,

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      and service practices of dealers; to provide for the titling of

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      mobile homes; TO IMPOSE A TRANSFER TAX; TO PROVIDE FOR THE

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      DISPOSITION OF THE TRANSFER TAX; to prescribe the powers and

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      duties of certain agencies and departments; to provide remedies


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      and penalties; to declare the act to be remedial; to repeal this

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      act on a specific date; and to repeal  certain  acts and parts of

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      acts.

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           Sec. 30c.  (1) If the owner of a mobile home transfers or

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      assigns the owner's title or interest to the mobile home, the

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      owner shall indorse on the back of the certificate of title an

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      assignment of the mobile home with warranty of title with a

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      statement of all security interests in the mobile home, and shall

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      cause the certificate to be mailed or delivered to the department

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      or to the purchaser or transferee at the time of the delivery to

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      the purchaser or transferee of the mobile home.

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           (2) Upon the delivery of a mobile home and the transfer,

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      sale, or assignment of the title or interest in a mobile home,

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      the effective date of the transfer of title or interest shall be

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      the date of execution of either the application for title or the

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      certificate of title.

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           (3) The purchaser or transferee, unless the purchaser or

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      transferee is a licensed dealer, shall cause to be presented to

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      the department the certificate of title accompanied by the appli-

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      cable fee, as follows:

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           (a) Except as provided in subdivision (b) or (c), $45.00.

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           (b) Except as provided in subdivision (c), $15.00, if the

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      sale, assignment, or other transfer will require the addition or

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      deletion from the certificate of title of any of the following:

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           (i) The owner's spouse.

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           (ii) A person related to the owner within the fourth degree

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      of consanguinity as computed by the civil law method.



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           (iii) A person related to the owner's spouse within the

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      fourth degree of consanguinity as computed by the civil law

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      method.

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           (c) Any other lesser amount established pursuant to

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      section 9(5).

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           (4) Upon presentation of the certificate of title accom-

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      panied by the applicable fee, UPON PAYMENT OF THE TRANSFER TAX

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      IMPOSED UNDER SECTION 30I, AND UPON THE FILING WITH THE DEPART-

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      MENT OF A VALUATION AFFIDAVIT DESCRIBED IN SECTION 30I, a new

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      certificate of title shall be issued.  A certificate of title

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      issued under subsection (3) and this subsection shall be mailed

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      or delivered to the owner or any other person the owner may

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      direct in a separate instrument in a form as prescribed by the

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      department.

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           (5) If a security interest is reserved or created at the

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      time of the transfer, the parties shall comply with section 30d.

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           (6) If the transferee of a mobile home is a mobile home

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      dealer who holds the mobile home for resale, the dealer shall not

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      be required to forward the certificate of title to the depart-

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      ment, but the dealer shall retain possession of the assigned cer-

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      tificate of title.  Upon transfer of the dealer's title or inter-

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      est to another person, the dealer shall execute and acknowledge

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      an assignment and warranty of title upon the certificate of title

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      and deliver it to the person to whom the transfer is made if the

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      person is a licensed dealer; otherwise application for a new

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      title shall be made by the transferor as provided in section

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      30a(1).



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           Sec. 30g.  (1) The department may cancel or refuse to issue

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      a certificate of title:

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           (a) If the department is satisfied that the certificate of

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      title was fraudulently or erroneously issued.

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           (b) If the department determines that the holder of the cer-

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      tificate has made or is making an unlawful use of the

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      certificate.

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           (c) If the department determines that the required fee has

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      not been paid and the fee is not paid upon reasonable notice or

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      demand.

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           (d) If the department is authorized under any other provi-

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      sion of this act.

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           (e) Upon receipt of notification from another state or for-

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      eign country that a certificate of title issued by the department

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      has been surrendered by the owner in conformity with the laws of

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      the other state or foreign country.

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           (f) If it is shown by satisfactory evidence that delivery of

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      a mobile home in the possession of a dealer was not made to the

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      applicant to whom the certificate was issued.

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           (G) IF THE DEPARTMENT DETERMINES THAT THE TRANSFER TAX UNDER

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      SECTION 30I HAS NOT BEEN PAID OR HAS BEEN UNDERPAID OR THE VALUA-

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      TION AFFIDAVIT DESCRIBED IN SECTION 30I CONTAINS FRAUDULENT OR

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      ERRONEOUS INFORMATION.

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           (2) Before a cancellation under subsection (1)(a), (b), or

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      (d) is made, the person affected shall be given notice and an

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      opportunity to be heard.





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           SEC. 30I.  (1) BEGINNING JANUARY 1, 2002, A STATE TRANSFER

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      TAX IS HEREBY IMPOSED ON THE SALE OR TRANSFER OF A MOBILE HOME IN

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      THIS STATE.

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           (2) THE TRANSFER TAX LEVIED UNDER SUBSECTION (1) IS LEVIED

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      AT A RATE OF 3% OF THE TOTAL VALUE OF THE MOBILE HOME BEING

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      TRANSFERRED.  THE TRANSFER TAX SHALL BE PAID TO THE DEPARTMENT

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      WHEN THE CERTIFICATE OF TITLE IS TRANSFERRED TO THE NEW OWNER.

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           (3) THE TRANSFER TAX IMPOSED UNDER THIS SECTION SHALL BE

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      COLLECTED BY THE DEPARTMENT AND NOT LESS THAN 1 TIME EACH MONTH

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      SHALL BE FORWARDED TO THE STATE TREASURER FOR CREDIT TO THE STATE

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      SCHOOL AID FUND ESTABLISHED IN SECTION 11 OF ARTICLE IX OF THE

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      STATE CONSTITUTION OF 1963.

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           (4) AS USED IN THIS SECTION:

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           (A) "VALUATION AFFIDAVIT" MEANS AN AFFIDAVIT DEVELOPED AND

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      SUPPLIED BY THE DEPARTMENT THAT PROVIDES FOR ALL OF THE

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      FOLLOWING:

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           (i) NAME AND ADDRESS OF THE SELLER OR TRANSFEROR.

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           (ii) NAME AND ADDRESS OF THE BUYER OR TRANSFEREE.

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           (iii) DESCRIPTION OF THE MOBILE HOME CONTAINED IN THE CER-

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      TIFICATE OF TITLE.

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           (iv) VALUE OF THE MOBILE HOME BEING TRANSFERRED OR SOLD.

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           (v) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT.

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           (B) "VALUE" MEANS THE CURRENT OR FAIR MARKET WORTH IN TERMS

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      OF LEGAL MONETARY EXCHANGE AT THE TIME OF SALE OR TRANSFER.









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