HB-5513, As Passed House, November 13, 2014

SUBSTITUTE FOR

HOUSE BILL NO. 5513

     A bill to amend 1987 PA 96, entitled

"The mobile home commission act,"

by amending sections 2, 4, 7, 16, 17, 43, and 48 (MCL 125.2302,

125.2304, 125.2307, 125.2316, 125.2317, 125.2343, and 125.2348),

section 2 as amended by 2012 PA 588, sections 4, 16, and 17 as

amended by 2006 PA 328, section 7 as amended by 2009 PA 215, and

section 43 as added by 1988 PA 337, and by adding sections 48b and

48d.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 2. As used in this act:

     (a) "Campground" means a campground as defined in section

12501 of the public health code, 1978 PA 368, MCL 333.12501.

     (b) "Code" means all or a part of the mobile home code

promulgated pursuant to under section 5.

     (c) "Commission" means the mobile home code manufactured

housing commission.

     (d) "Department" means the department of licensing and

regulatory affairs, except that department as follows:

     (i) Department means the department of state in all of the

following circumstances:

(A) (i) As used in section 5(1) with respect to rules

promulgated under section 5(1)(h).

(B) (ii) As used in section 9(5) with respect to rules

adjusting fees under section 30a or 30c.

(C) (iii) As used in sections 30 to 30i.

     (ii) Department, as used with respect to powers and duties

concerning water supply systems and sewage collection and disposal

systems for mobile home parks and seasonal mobile home parks, means

the department of environmental quality.

     (e) "Installer and repairer" means a person, including a

mobile home dealer, who for compensation installs or repairs mobile

homes.

     (f) "Local government" means a county or municipality.

     (g) "Mobile home" means a structure , that is transportable in

1 or more sections, which is built on a chassis, and designed to be

used as a dwelling, with or without permanent foundation, when

connected to the required utilities, and includes the plumbing,

heating, air-conditioning, and electrical systems contained in the

structure.

     (h) "Mobile home dealer" means a person other than a

manufacturer engaged in the business of buying mobile homes for

resale, exchange, lease, or rent or offering mobile homes for sale,

lease, rent, or exchange to customers.

     (i) "Mobile home park" means a parcel or tract of land under

the control of a person upon which 3 or more mobile homes are

located on a continual, nonrecreational basis and which is offered

to the public for that purpose regardless of whether a charge is

made therefor, together with any building, structure, enclosure,

street, equipment, or facility used or intended for use incident to

the occupancy of a mobile home.

     (j) "Municipality" means a city, village, or township.

     (k) "Person" means an individual, partnership, association,

trust, or corporation, or any other legal entity or combination of

legal entities.

     (l) "Recreational vehicle" means a vehicle primarily designed

and used as temporary living quarters for recreational, camping, or

travel purposes, including a vehicle having its own motor power or

a vehicle mounted on or drawn by another vehicle.

     (m) "Seasonal mobile home park" means a parcel or tract of

land under the control of a person upon which 3 or more mobile

homes are located on a continual or temporary basis but occupied on

a temporary basis only, and which is offered to the public for that

purpose regardless of whether a charge is made therefor, together

with any building, enclosure, street, equipment, or facility used

or intended for use incident to the occupancy of a mobile home.

Seasonal mobile home park does not include a campground licensed

pursuant to sections 12501 to 12516 of the public health code, 1978

PA 368, MCL 333.12501 to 333.12516.

     (n) "Secured party" means that term as defined in section 9102

of the uniform commercial code, 1962 PA 174, MCL 440.9102.

     (o) "Security interest" means that term as defined in section

1201 of the uniform commercial code, 1962 PA 174, MCL 440.1201.

     (p) "Technical bulletin" means a document issued by the

department to promote uniform interpretation and enforcement of

this act and rules promulgated under this act. A rule promulgated

or order issued under this act is not a technical bulletin.

(q) (p) "Termination statement" means that term as defined in

section 9102 of the uniform commercial code, 1962 PA 174, MCL

440.9102.

     Sec. 4. (1) The commission may do all of the following:

     (a) After consultation with and considering comments from

representatives of the manufactured housing industry and other

interested parties, recommend rules to the department 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 that 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 or an authorized representative of the

director shall do all of the following:

     (a) 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) 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 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 those expenditures to the enforcement and

administration of this act.

     (f) Prepare a detailed written explanation of the powers and

duties of local governments with respect to mobile home parks,

seasonal mobile home parks, and mobile homes and post and maintain

the document on the department's website.

     (g) Post and maintain on the department's website all current

technical bulletins.

     (h) Promptly notify a local government of the issuance,

amendment, or rescission of a technical bulletin if the department

has knowledge that a mobile home park or seasonal mobile home park

is located in, or an application has been filed for the licensure

of a park proposed to be located in, the local government. The

notice shall be sent by first-class mail or electronic mail to each

of the following:

     (i) The clerk of the local government.

     (ii) The chief executive officer of the local government.

     (iii) The enforcing agency for the local government if, under

section 8a or 8b of the Stille-DeRossett-Hale single state

construction code act, 1972 PA 230, MCL 125.1508a and 125.1508b,

the local government has assumed responsibility for the

administration and enforcement within its jurisdiction of that act

and the state construction code or a part of the state construction

code of limited application.

     (i) If the department receives a complaint about a condition

at a mobile home park or seasonal mobile home park that imminently

threatens the health or safety of the residents of the park,

promptly notify each local government in which the park is located

of the details of the complaint.

     (3) The commission shall not act for the purpose of regulating

regulate 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. 7. (1) Except as provided in subsection (7), a local

government that proposes a standard related to mobile home parks or

seasonal mobile home parks, or related to mobile homes located

within a mobile home park or a seasonal mobile home park, that is

higher than the standard provided in this act or the code, or that

proposes a standard related to the business, sales, and service

practices of mobile home dealers, or the business of mobile home

installers and repairers, that is higher than the standard provided

in this act or the code, shall file the proposed standard with the

commission. Except as provided in subsection (7), the commission

may promulgate rules to establish the criteria and procedure for

implementation of higher standards by a local government. The

commission shall review and approve the proposed standard unless

the standard is unreasonable, arbitrary, or not in the public

interest. If the commission does not approve or disapprove the

proposed standard within 60 days after it is filed with the

commission, the standard shall be considered approved unless the

local government grants the commission additional time to consider

the standard. After the proposed standard is approved, the local

government may adopt the standard by ordinance. The ordinance shall

relate to a specific section of the code.

     (2) A local government is not required to file with the

commission a standard related to mobile homes that are not located

within a mobile home park or seasonal mobile home park, need not be

filed with the mobile home commission, unless the standard relates

to the business, sales, and service practices of mobile home

dealers , or the business of mobile home installers and repairers.

     (3) A local government ordinance shall not be designed as

exclusionary to exclude mobile homes generally, whether the mobile

homes are located inside or outside of mobile home parks or

seasonal mobile home parks.

     (4) A local government ordinance shall not contain a standard

for the setup or installation of mobile homes that is incompatible

with, or is more stringent than, either of the following:

     (a) The manufacturer's recommended setup and installation

specifications.

     (b) The mobile home setup and installation standards

promulgated by the federal department of housing and urban

development pursuant to the national manufactured housing

construction and safety standards act of 1974, 42 USC 5401 to 5426.

     (5) In the absence of any setup or installation specifications

or standards for foundations as set forth in subsection (4)(a) or

(b), the local government standards for site-built housing shall

apply.

     (6) A local government ordinance shall not contain adopt or

enforce an ordinance provision establishing roof configuration

standards or special use zoning requirements that apply only to, or

excludes, exclude, mobile homes. A local government ordinance shall

not contain adopt or enforce an ordinance provision establishing a

manufacturing or construction standard that is incompatible with,

or is more stringent than, a standard promulgated by the federal

department of housing and urban development pursuant to the

national manufactured housing construction and safety standards act

of 1974, 42 USC 5401 to 5426. A local government ordinance may

include establish reasonable standards relating to mobile homes

located outside of mobile home parks or seasonal mobile home parks

which ensure that mobile homes compare aesthetically to site-built

housing located or allowed in the same residential zone.

     (7) Notwithstanding anything in section 17 that may be to the

contrary, a A local government may adopt an ordinance to inspect

provide for inspection of mobile homes for safety, within whether

the mobile homes are located within or outside a mobile home park ,

a or seasonal mobile home park. , or mobile homes located outside a

mobile home park or a seasonal mobile home park if the mobile home

being inspected is If the inspection program is limited to mobile

homes being rented to a tenant by the owner of the mobile home, .

The the local government may propose a means to determine which

mobile homes located within its jurisdiction are being rented to

tenants a tenant by the owner, including, but not limited to,

imposition of a registration or a licensing requirement for renting

a mobile homes home to tenants. a tenant. A local government may

inspect a mobile homes home rented to tenants a tenant by the owner

for safety if the safety inspection ordinance applies to all other

rental housing within the local governmental unit. government. If a

local government inspects mobile homes rented to tenants by the

owner for safety, the period between inspections shall not be less

than 3 years unless the local government is responding to a

complaint from a tenant. An inspection shall not be conducted on a

mobile home for which an occupancy permit has been was issued by

the local government in the preceding 3 years unless the local

government is responding to a complaint from a tenant. Inspections

for safety The local government shall not require enforcement of

any mobile home construction standards that are greater higher than

those applicable to the mobile home under the national manufactured

housing construction and safety standards act of 1974, 42 USC 5401

to 5426, or standards or codes to which the mobile home was

constructed if it was constructed before application of the

national manufactured housing construction and safety standards act

of 1974, 42 USC 5401 to 5426. As used in this section, "inspection

for safety" means an inspection of a rental mobile home that is An

inspection for safety under this section shall be limited to

ensuring the proper functioning, or protection, of the following:

     (a) Furnace.

     (b) Water heater.

     (c) Electrical wiring.

     (d) Proper sanitation Sanitation and plumbing.

     (e) Ventilation.

     (f) Heating equipment.

     (g) Structural integrity.

     (h) Smoke alarms.

     Sec. 16. (1) A person shall not operate a mobile home park or

seasonal mobile home park without a license. The term of a license

is 3 years. The department shall issue a license only if all of the

following requirements are met:

     (a) The applicant submits a complete license application.

     (b) Certifications and recommendations of appropriate agencies

and local governments are submitted to and approved by the

department.

     (c) If the mobile home park or seasonal mobile home park is

determined to be a distressed park under rules promulgated under

subsection (2), the applicant provides financial assurance required

under those rules.

     (d) The applicant pays the fee set forth in subsection (4).

     (e) The mobile home park or seasonal mobile home park was

approved as being in substantial compliance after its most recent

inspection under section 17.

     (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.

     (2) The commission shall promulgate rules to do all of the

following:

     (a) Provide standards and procedures for the commission to

determine whether a mobile home park or seasonal mobile home park

that is not in substantial compliance with the rules promulgated

under sections 5 and 6 is a distressed park. The standards and

procedures shall provide the owner with an opportunity for an

evidentiary hearing and require the commission to consider at least

all of the following:

     (i) The length of time the mobile home park or seasonal mobile

home park has not been in substantial compliance with the rules

promulgated under sections 5 and 6.

     (ii) Whether the owner or operator was notified and had

sufficient opportunity to bring the mobile home park or seasonal

mobile home park into substantial compliance.

     (iii) Any imminent threat to the health or safety of the

residents of the mobile home park or seasonal mobile home park.

     (iv) Whether the mobile home park or seasonal mobile home park

has been or is likely to be abandoned by the owner or operator.

     (b) Require the owner of a distressed mobile home park or

seasonal mobile home park to post financial assurance in the form

of a bond, cash deposit, or other financial arrangement to ensure

the repair and cleanup of the mobile home park or seasonal mobile

home park, including the repair of substandard or noncomplying

park-owned utility systems and the removal and disposal of

abandoned mobile homes, scrap material, or other waste.

     (3) Not more than 180 days after the effective date of the

amendatory act that added this subsection, the commission shall

submit a report on progress on rule promulgation under subsection

(2) to the standing committees of the senate and house of

representatives with primary responsibility for legislation

affecting mobile home parks.

(4) (3) 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

a 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).

(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.

(6) (5) A campground which that is currently licensed under

sections 12501 to 12516 of the public health code, 1978 PA 368, MCL

333.12501 to 333.12516, and was previously licensed under the

former licensing provisions of 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 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 Except as provided in subsection (2), the

department of environmental quality or its authorized

representative shall conduct a an annual physical inspection of

mobile home parks and seasonal mobile home parks in accordance with

standards established by the department. of environmental quality.

If the mobile home park or seasonal mobile home park is approved,

the department shall issue a license pursuant to section 16.The

department shall prepare a report documenting the findings of the

inspection and submit a copy of the report to each local government

in which the mobile home park or seasonal mobile home park is

located.

     (2) Except The department shall enter into a contract for

inspection of mobile home parks and seasonal mobile home parks with

any county health department that chooses to perform the

inspections. The department must pay reasonable costs to any county

health department conducting the inspections.

     (3) Except as provided in subsection (2) and section 7 and

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 shall not inspect a mobile home park or seasonal mobile

home park unless the local unit has reason to believe that this

act, the code, or rules promulgated pursuant to this act were

violated.

     Sec. 43. (1) If, after notice and a hearing as provided in the

administrative procedures act of 1969, Act No. 306 of the Public

Acts of 1969, being sections 24.201 to 24.328 of the Michigan

Compiled Laws, 1969 PA 306, MCL 24.201 to 24.328, a person is

determined to have violated this act, the commission may impose 1

or more of the following penalties:

     (a) Censure.

     (b) Probation.

     (c) Placement of a limitation on a license.License limitation.

     (d) Suspension of a license. License suspension. The

commission may request the appointment of a receiver when taking

action under this subdivision.

     (e) Revocation of a license. License revocation. The

commission may request the appointment of a receiver when taking

action under this subdivision.

     (f) Denial of a license.License denial.

     (g) A civil fine of not more than $10,000.00.$50,000.00.

     (h) A requirement that restitution be made.Restitution.

     (2) A fine collected under this section shall be deposited

with the state treasurer and credited to the mobile home commission

code fund created in section 9.

     (3) If the department determines that the owner or operator of

a mobile home park or seasonal mobile home park has violated this

part or rules promulgated under this part by failing to maintain or

repair any infrastructure or facilities of the mobile home park or

seasonal mobile home park, the department shall give notice of the

determination by personal service or first-class mail to the local

governments where the mobile home park is located, the owner, the

operator, and, if financial assurance in the form of a bond has

been posted under rules promulgated under section 16(2), the surety

executing the bond. If the specified maintenance or repair is not

performed by the owner, operator, or surety within 60 days after

service of the notice, the department may enter the mobile home

park or seasonal mobile home park and perform the specified

maintenance or repair, and the owner, operator, and any surety are

jointly and severally liable for all expenses incurred. The

department shall certify the claim to the owner, operator, and any

surety, listing in the claim the items of expense in performing the

maintenance or repair, and shall draw on any financial assurance

for the payment of the claim. The department shall notify the local

government where the mobile home park is located when the specified

maintenance or repair has been completed.

(4) (3) This section does not prohibit actions from being

taken under other sections of this act.

(5) (4) The pursuit in court of the lawful rights of a

licensee does not constitute a violation of this act, regardless of

the outcome of the court action.

     Sec. 48. (1) Subject to section 49, Act No. 419 of the Public

Acts of 1976, being sections 125.1101 to 125.1147 of the Michigan

Compiled Laws, is repealed.If the department orders the owner or

operator of a mobile home park or seasonal mobile home park to

correct a violation that imminently threatens the health or safety

of the residents of the park or the public and the owner or

operator fails to comply with the order, the department or the

local government may bring an action to enforce the applicable

regulations and to abate or enjoin the violation.

     (2) If the violation is not corrected and imminently threatens

the health or safety of the residents of the mobile home park or

seasonal mobile home park or the public, the department or the

local government may file a motion for a preliminary injunction or

other temporary relief appropriate to remove the threat while the

action is pending.

     (3) The department or the local government shall serve a copy

of the complaint and a summons on each owner and lienholder of

record, and any operator, of the mobile home park or seasonal

mobile home park that can be identified by the department or the

local government with the exercise of reasonable diligence. The

local government shall also file a notice of the action with the

register of deeds for the county where the park is located.

     (4) The court shall make orders and determinations consistent

with the objectives of this act. The court may enjoin the

maintenance of an unsafe, unhealthy, or unsanitary condition, or a

violation of the applicable regulations, and may order the

defendant to perform maintenance and repairs or make other

corrections including removal of a building or structure necessary

to abate the condition. The court may authorize the department or

the local government to perform maintenance or repairs or to remove

a building or structure owned or operated by the owner or operator

of the mobile home park or seasonal mobile home park. However, the

court shall not authorize removal of a building or structure unless

the cost of repair of the building or structure will be greater

than the state equalized value of the building or structure.

     (5) If the expense of maintenance, repair, or removal is not

otherwise provided for, the court may enter an order approving the

expense and place a lien on the real property for the payment of

the expense. The order may establish the lien as a senior lien,

except as to tax and assessment liens, and except as to a mortgage

of first priority recorded prior to all other liens of record. The

order may also specify the time and manner for foreclosure of the

lien if the lien is not satisfied. To perfect the lien, a copy of

the order shall be filed with the register of deeds for the county

where the mobile home park or seasonal mobile home park is located

within 10 days after entry of the order.

     Sec. 48b. (1) In accordance with the rules promulgated under

section 16(2), the department or the local health department may

file an emergency petition with the circuit court to place a mobile

home park or seasonal mobile home park under the control of a

receiver. The court may grant the petition if the court finds that

the health or safety of the residents of the park is seriously

threatened by conditions existing when the petition was filed or

will be seriously threatened if the conditions are not corrected.

     (2) If the court appoints a receiver, the receiver shall be

the director of the local health department or his or her designee,

the director of the department of environmental quality, the

director of the department of licensing and regulatory affairs, or

another state agency or person designated by the director of the

department of licensing and regulatory affairs. The receiver shall

use the income and assets of the mobile home park or seasonal

mobile home park to maintain and operate the park and to attempt to

correct the conditions that threaten the health or safety of

residents of the park or will threaten their health or safety if

not corrected.

     (3) If requested by the receiver, the department of licensing

and regulatory affairs or the department of environmental quality

shall provide available personnel to consult with the receiver on

the fulfillment of the receiver's duties.

     (4) The receivership shall be terminated when the receiver and

the court certify that the conditions that prompted the appointment

have been corrected or, if the mobile home park or seasonal mobile

home park ceases operation, when the residents are safely placed in

other housing, whichever occurs first.

     (5) Upon termination of the receivership, the receiver shall

render a complete accounting to the court.

     Sec. 48d. If the condition of a mobile home park or seasonal

mobile home park is an imminent danger to the health or lives of

individuals, the local health department may issue an order under

section 2451 of the public health code, 1978 PA 368, MCL 333.2451,

including, but not limited to, an order requiring the mobile home

park or seasonal mobile home park to cease operation or prohibiting

the presence of individuals at all or part of the park because of

the condition of the park.