HB-4054, As Passed Senate, May 12, 2015

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 4054

A bill to amend 1987 PA 96, entitled

"The mobile home commission act,"

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

125.2304, 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, and section 43 as added by 1988 PA 337, and by adding

sections 48b and 50.

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.

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.

(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) "Guideline" means that term as defined in section 3 of the

administrative procedures act of 1969, 1969 PA 306, MCL 24.203.

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

mobile home dealer, who for compensation installs or repairs mobile

homes.

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

(h) ~~(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 a permanent

foundation, when connected to the required utilities, and includes

the plumbing, heating, air-conditioning, and electrical systems

contained in the structure.

(i) ~~(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.

(j) ~~(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.

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

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

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

legal entities.

(m) (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.

(n) ~~(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.

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

9102 of the uniform commercial code, 1962 PA 174, MCL 440.9102.

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

section 1201 of the uniform commercial code, 1962 PA 174, MCL

440.1201.

(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.

~~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.

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

guidelines.

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

amendment, or rescission of a guideline 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.

(h) 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. 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.

(d) 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~~ granted a

license 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 environmental quality~~ or its

authorized representative shall conduct a 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 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.

(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

act or rules promulgated under this act 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 owner, operator, or surety does not

perform or commence the specified maintenance or repair within 60

days after service of the notice, the department or its authorized

representative may enter the mobile home park or seasonal mobile

home park and perform the specified maintenance or repair. At the

request of the owner, operator, or surety, the department may grant

an extension of up to an additional 90 days. The owner, operator,

and any surety are jointly and severally liable for all expenses

incurred by the department or its authorized representative in

performing the specified maintenance or repair. 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 of this act or rules promulgated under this act

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

(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

provided for by financial assurance under section 16(2)(b) or

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. 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.

Sec. 50. Any state governmental entity or local government

that exercises powers or performs duties under this act shall make

publicly available a list of its powers and duties under this act.

For the purposes of this section, a local government may utilize a

list prepared by a statewide association.

Enacting section 1. This amendatory act takes effect 90 days

after the date it is enacted into law.