HB-5839, As Passed House, March 30, 2006
March 7, 2006, Introduced by Rep. Hildenbrand and referred to the Committee on Local Government and Urban Policy.
A bill to amend 1987 PA 96, entitled
"The mobile home commission act,"
by amending sections 4, 5, 6, 9, 12, 16, 17, 21, 30a, and 30c (MCL
125.2304, 125.2305, 125.2306, 125.2309, 125.2312, 125.2316,
125.2317, 125.2321, 125.2330a, and 125.2330c).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 4. (1) The commission may do all of the following:
(a) Promulgate
After consultation with and
considering
comments from representatives of the manufactured housing industry
and other interested parties, promulgate rules to implement and
administer this act.
(b) Act for the purpose of establishing a uniform policy
relating to all phases of mobile home businesses, mobile home
parks, and seasonal mobile home parks.
(c) Determine the sufficiency of local mobile home ordinances
which are designed to provide local governments with superintending
control over mobile home businesses, mobile home parks, or seasonal
mobile homes parks.
(d) Conduct public hearings relating to the powers prescribed
in this subsection.
(2) The director of commerce or an authorized representative
of the director shall do all of the following:
(a) Administer the rules promulgated by the commission.
(b) Conduct hearings relating to violations of this act or
rules promulgated under this act.
(c) Make investigations to determine compliance with this act
and rules promulgated under this act.
(d) Provide assistance to the commission as the commission
requires.
(e) On not less than a quarterly basis, the director of
commerce or an authorized representative of the director shall
report to the commission on the expenditure of all fees collected
under this act and the relation of such expenditures to the
enforcement and administration of this act.
(3) The commission shall not act for the purpose of regulating
mobile homes that are not located within a mobile home park or a
seasonal mobile home park, except as relates to the business,
sales, and service practices of mobile home dealers and the
business practices of mobile home installers and repairers.
Sec.
5. (1) The After
consultation with and considering
comments from representatives of the manufactured housing industry
and other interested parties, the commission shall promulgate the
mobile home code subject to section 4. The code shall consist of
rules governing all of the following:
(a) The licensure, density, layout, permits for construction,
construction of mobile home parks including standards for roads,
utilities, open space, or proposed recreational facilities, and
safety measures sufficient to protect health, safety, and welfare
of mobile home park residents, except water supply, sewage
collection and treatment, and drainage facilities which are
regulated by the department of public health.
(b) The business, sales, and service practices of mobile home
dealers.
(c) The business practices of mobile home installers and
repairers.
(d) The licensure and regulations of mobile home installers
and repairers.
(e) The setup and installation of mobile homes inside mobile
home parks or seasonal mobile home parks.
(f) The regulation of the responsibilities, under the mobile
home warranty, of the mobile home components manufacturer, the
mobile home assembler or manufacturer, and the mobile home dealer,
including the time period and relationships of each under the
warranty, and the remedies available, if any, if the responsible
parties cease to operate as a business.
(g) Abuses relating to all of the following:
(i) Consumer deposits, except utility deposits from consumers
who are direct customers of utilities regulated by the Michigan
public service commission.
(ii) Detailed listing of furnishings and fixtures by a
manufacturer of a new mobile home or a mobile home dealer for a
used mobile home.
(iii) Disclosure and delivery of manufacturer's warranties.
(iv) Used mobile homes. A mobile home dealer shall provide
detailed listing of its service records for used mobile homes which
are being sold by the dealer and of which the dealer has knowledge.
(h) Applications for and issuance of certificates of title for
mobile homes.
(2) As part of the code, the commission shall also promulgate
rules governing the licensure, density, layout, permits for
construction, and construction of seasonal mobile home parks,
including standards for roads, utilities, open space, proposed
recreational facilities, and safety measures sufficient to protect
the health, safety, and welfare of seasonal mobile home park
residents, except water supply, sewage collection and treatment,
and drainage facilities, which shall be regulated by the department
of public health.
(3) The rules promulgated for seasonal mobile home parks may
impose a less stringent standard than the rules promulgated for
mobile home parks.
Sec.
6. (1) The After
consultation with and considering
comments from representatives of the manufactured housing industry
and other interested parties, the department of public health shall
promulgate rules for mobile home parks and seasonal mobile home
parks setting forth minimum standards regulating:
(a) Water supply system.
(b) Sewage collection and disposal system.
(c) Drainage.
(d) Garbage and rubbish storage and disposal.
(e) Insect and rodent control.
(f) General operation, maintenance, and safety.
(g) Certification of compliance under section 17.
(2) Representatives of local government shall act in an
advisory capacity in the promulgation of the code.
(3) The commission shall consult with appropriate state and
local governments in developing the procedures for effective
coordination of efforts. The commission shall recommend procedures
to the governor and the legislature for coordinating state agency
decisions and activities pertaining to this act.
Sec. 9. (1) The commission shall promulgate rules to establish
fees and charges for the issuance of licenses or permits under
section 5.
(2) The fees and charges under this act shall be applied
solely to the implementation of the act and shall constitute the
total
funding for the commission except as provided in Act No. 243
of
the Public Acts of 1959, being sections 125.1035 to 125.1043 of
the
Michigan Compiled Laws 1959
PA 243, MCL 125.1035 to 125.1043.
(3) A fee shall not be charged for an investigation conducted
pursuant to section 36.
(4) A fee shall not be charged or collected by the commission
in excess of that necessary to administer and enforce this act.
(5) The commission may promulgate rules to adjust the fees
established in subsection (1) and in sections 16, 21, 30a, and 30c
such that revenues obtained under this act equal appropriations by
the legislature for the purpose of administering this act. However,
the adjusted fees shall not exceed the fees stated in sections 16,
21, 30a, and 30c.
(6) To accomplish the objectives of this act, a mobile home
code fund is created. Fees established by the act for the issuance
of licenses, plans approval, permits, certificates of title, and
affidavits of affixture are intended to bear a reasonable relation
to the cost, including overhead, of the service. The state
treasurer is the custodian of the fund and may invest the surplus
of the fund in investments that in the state treasurer's judgment
are in the best interest of the fund. Earnings from those
investments shall be credited to the fund. The state treasurer
shall report to the director and the legislature the amount of
interest credited and the balance of the fund as of September 30 of
each year. The director shall supervise and administer the fund.
Fees received by the department and money collected under the act
shall be deposited in the fund and shall be appropriated by the
legislature for the operation of the bureau of construction codes
and fire safety and indirect overhead expenses in the department.
Funds that are unexpended at the end of each fiscal year shall be
returned to the mobile home code fund.
Sec. 12. (1) When all preliminary approvals are made, the
developer shall submit the legal documents and the final plans
draft to the department.
(2) The nonrefundable fee for an application for plans
approval and a permit for new mobile home park construction or for
the expansion of an existing licensed mobile home park is $185.00
plus an additional $4.00 for each home site over 25 homes sites, to
a maximum of $1,000.00. The nonrefundable fee for an application
for an extension of a permit to construct if $185.00.
(3) The nonrefundable fee for the construction of a new home
condominium or the expansion of an existing home condominium is
$505.00, plus an additional $4.00 for each home condominium home
site over 25 home sites that is to be constructed.
(4) The nonrefundable fee for an existing licensed mobile home
park that converts to a home condominium with an increase in the
number of home sites is $505.00, plus an additional $4.00 for each
home condominium home site over 25 home sites, to a maximum of
$1,480.00.
(5) The nonrefundable fee for an application for a permit to
construct for an alteration to an existing mobile home park is
$50.00.
(6) (2)
The department shall review the filing and within 90
days after filing issue its approval or disapproval. Upon the
approval of all the reviewing agencies, the department shall issue
a permit to construct the mobile home park or seasonal mobile home
park.
Sec. 16. (1) A person shall not operate a mobile home park or
seasonal mobile home park without a license.
(2) Upon completion, review, and approval of certifications,
the department shall grant a license to operate a mobile home park
or seasonal mobile home park.
(3) An
annual A 3-year license shall be granted and renewed
by the department based upon the certifications and recommendations
of the appropriate agencies and local governments. The fee for the
3-year license to operate a mobile home park is $225.00, plus an
additional $3.00 for each home site in excess of 25 home sites in
the mobile home park, or any lesser amount established pursuant to
section 9(5). The fee for a 3-year license to operate a seasonal
mobile home park is $120.00, plus an additional $1.50 for each home
site in excess of 25 home sites in the seasonal mobile home park,
or any lesser amount established pursuant to section 9(5).
(4) If a person submits a timely application for renewal of a
license and pays the appropriate fee, the person may continue to
operate a mobile home park or seasonal mobile home park unless
notified that the application for renewal is not approved.
(5) A campground which is currently licensed under sections
12501
to 12516 of the public health code,
Act No. 368 of the
Public
Acts of 1978, being sections 333.12501 to 333.12516 of the
Michigan
Compiled Laws 1978 PA 368,
MCL 333.12501 to 333.12516,
was
previously licensed under the licensing provisions of Act
No.
243
of the Public Acts of 1959, being sections 125.1035 to 125.1043
of
the Michigan Compiled Laws 1959
PA 243, MCL 125.1035 to
125.1043 as a seasonal trailer park and which currently meets the
seasonal
trailer park construction standards under Act No. 243 of
the
Public Acts of 1959 1959 PA
243, MCL 125.1035 to 125.1043, may
apply for and shall be licensed as a seasonal mobile home park
under this act if the campground meets all other requirements for
licensure under this act as a seasonal mobile home park.
Sec. 17. (1) The department of public health or its
authorized representative shall conduct an annual physical
inspection of mobile home parks and seasonal mobile home parks in
accordance with standards established by the department of public
health. If the mobile home park or seasonal mobile home park is
approved,
the department of public health shall issue a
certification
of compliance to the department of commerce that the
park
is licensable license
pursuant to section 16.
(2) Except for purposes of issuing a license or renewing a
license pursuant to this act, a local government may not make an
inspection unless it has reason to believe that this act, the code,
or rules promulgated pursuant to this act were violated.
Sec. 21. (1) A mobile home dealer shall not engage in the
retail sale of a mobile home without a license.
(2) A mobile home dealer, mobile home installer, or repairer
may obtain an initial or renewal license by filing with the
commission an application together with consent to service of
process in a form prescribed by the commission pursuant to section
35.
(3) An initial or renewal license under this act shall be
issued
for not more than 1 year 3 years.
Licenses shall expire on
October 1.
(4)
The annual license fee for a mobile home dealer is
$150.00
$450.00 or any other lesser amount established pursuant to
section 9(5).
(5)
The annual license fee for a mobile home installer or
repairer
is $50.00 $150.00
or any other lesser amount established
pursuant to section 9(5).
(6) A licensed mobile home dealer, mobile home installer, or
repairer may file an application for the license of a successor,
whether or not the successor is then in existence, for the
unexpired portion of the year. The commission may grant or deny the
application.
(7) A licensee who submits a timely application for renewal of
a license and pays the appropriate fee may continue sales of mobile
homes unless notified that the application for renewal is not
approved.
Sec. 30a. (1) An owner of a mobile home which is subject to
the certificate of title provisions of this act shall make
application to the department for the issuance of a certificate of
title for the mobile home upon the appropriate form furnished by
the
department, accompanied by a fee of
$45.00 $90.00 or
any
lesser amount established pursuant to section 9(5). The application
shall bear the signature of the owner written in ink, shall be
acknowledged by the owner before a person authorized to take
acknowledgments, and shall contain:
(a) The name and address of the owner.
(b) A description of the mobile home, including the name of
the manufacturer, the year and model, and the manufacturer's serial
number or, in the absence of a serial number, a number assigned by
the department. A number assigned by the department shall be
permanently placed on the mobile home in the manner and place
designated by the department.
(c) A statement of the names and addresses of the holders of
any security interests in the mobile home, in the order of their
priority.
(d) Further information as may reasonably be required by the
department to enable it to determine whether the owner of the
mobile home is entitled to a certificate of title for the mobile
home.
(2) If the department is not satisfied as to the ownership of
the mobile home, before issuing a certificate of title for it, the
department may require the applicant to file a properly executed
surety bond in a form prescribed by the department, executed by the
applicant and a company authorized to conduct a surety business in
this state. The bond shall be in an amount equal to twice the value
of the mobile home as determined by the department and shall be
conditioned to indemnify or reimburse the department, any prior
owner, any holder of a security interest in the mobile home, and
any subsequent purchaser of the mobile home, and their successors
in interest, against any expense, loss, or damage, including
reasonable attorney's fees, by reason of the issuance of a
certificate of title to the mobile home or on account of any defect
in the right, title, or interest of the applicant in and to the
mobile home. Each interested person has a right of action to
recover on the bond for a breach of its conditions, but the
aggregate liability of the surety to all persons shall not exceed
the amount of the bond. The bond shall be returned at the end of 5
years, or before 5 years if the currently valid certificate of
title is surrendered to the department, unless the department has
received notification of the pendency of an action to recover on
the bond.
(3) The department shall examine and determine the
genuineness, regularity, and legality of an application for a
certificate of title for a mobile home and of any other application
lawfully made to the department, and may in all cases make
investigation or require additional information as may be
considered necessary, and shall reject any application if not
satisfied of the genuineness, regularity, or legality of it or the
truth of any statement contained in it, or for any other reason,
when authorized by law.
(4) The fee for obtaining a duplicate, replacement, or
corrected title, for placing or terminating a lien on the title, or
for placing a name on the title is $15.00 or any other lesser
amount established pursuant to section 9(5).
Sec. 30c. (1) If the owner of a mobile home transfers or
assigns the owner's title or interest to the mobile home, the owner
shall indorse on the back of the certificate of title an assignment
of the mobile home with warranty of title with a statement of all
security interests in the mobile home, and shall cause the
certificate to be mailed or delivered to the department or to the
purchaser or transferee at the time of the delivery to the
purchaser or transferee of the mobile home.
(2) Upon the delivery of a mobile home and the transfer, sale,
or assignment of the title or interest in a mobile home, the
effective date of the transfer of title or interest shall be the
date of execution of either the application for title or the
certificate of title.
(3) The purchaser or transferee, unless the purchaser or
transferee is a licensed dealer, shall cause to be presented to the
department the certificate of title accompanied by the applicable
fee, as follows:
(a)
Except as provided in subdivision (b) or (c), $45.00
$90.00.
(b) Except as provided in subdivision (c), $15.00, if the
sale, assignment, or other transfer will require the addition or
deletion from the certificate of title of any of the following:
(i) The owner's spouse.
(ii) A person related to the owner within the fourth degree of
consanguinity as computed by the civil law method.
(iii) A person related to the owner's spouse within the fourth
degree of consanguinity as computed by the civil law method.
(c) Any other lesser amount established pursuant to section
9(5).
(4) Upon presentation of the certificate of title accompanied
by the applicable fee, a new certificate of title shall be issued.
A certificate of title issued under subsection (3) and this
subsection shall be mailed or delivered to the owner or any other
person the owner may direct in a separate instrument in a form as
prescribed by the department.
(5) If a security interest is reserved or created at the time
of the transfer, the parties shall comply with section 30d.
(6) If the transferee of a mobile home is a mobile home dealer
who holds the mobile home for resale, the dealer shall not be
required to forward the certificate of title to the department, but
the dealer shall retain possession of the assigned certificate of
title. Upon transfer of the dealer's title or interest to another
person, the dealer shall execute and acknowledge an assignment and
warranty of title upon the certificate of title and deliver it to
the person to whom the transfer is made if the person is a licensed
dealer; otherwise application for a new title shall be made by the
transferor as provided in section 30a(1).