HOUSE BILL No. 5169
October 10, 2001, Introduced by Reps. DeRossett, Richardville, Jamnick and Lockwood 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 1, 2, 3, 4, 5, 6, 7, 11, 12, 13, 14, 16, 16a, 17, 18, 21, 22, 23, 24, 25, 27, 28, 28a, 28b, 28c, 29, 30, 30a, 30b, 30c, 30d, 30e, 30f, 30g, 30h, 31, 38, and 43 (MCL 125.2301, 125.2302, 125.2303, 125.2304, 125.2305, 125.2306, 125.2307, 125.2311, 125.2312, 125.2313, 125.2314, 125.2316, 125.2316a, 125.2317, 125.2318, 125.2321, 125.2322, 125.2323, 125.2324, 125.2325, 125.2327, 125.2328, 125.2328a, 125.2328b, 125.2328c, 125.2329, 125.2330, 125.2330a, 125.2330b, 125.2330c, 125.2330d, 125.2330e, 125.2330f, 125.2330g, 125.2330h, 125.2331, 125.2338, and 125.2343), section 28 as amended by 1993 PA 241 and sections 28a, 28b, 28c, and 43 as added and section 38 as amended by 1988 PA 337; and to repeal acts and parts of acts. 02555'01 LTB 2 THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 TITLE 2 An act to create a mobile home MANUFACTURED HOUSING com- 3 mission; to prescribe its powers and duties and those of local 4 governments; to provide for a mobile home MANUFACTURED HOUSING 5 code and the licensure, regulation, construction, operation, and 6 management of mobile MANUFACTURED home parks COMMUNITIES, the 7 licensure and regulation of retail sales dealers RETAILERS, 8 warranties of mobile MANUFACTURED homes, and INSTALLATION serv- 9 ice practices of dealers INSTALLERS AND SERVICERS; to provide 10 for the titling OWNERSHIP of mobile MANUFACTURED homes; to 11 prescribe the powers and duties of certain agencies and depart- 12 ments; to provide remedies and penalties; to declare the act to 13 be remedial; to repeal this act on a specific date; and to 14 repeal certain acts and parts of acts. 15 Sec. 1. This act shall be known and may be cited as "the 16 mobile home MANUFACTURED HOUSING commission act". 17 Sec. 2. As used in this act: 18 (a) "Campground" means a campground as defined in section 19 12501 of the public health code, Act No. 368 of the Public Acts 20 of 1978, being section 333.12501 of the Michigan Compiled Laws 21 1978 PA 368, MCL 333.12501. 22 (b) "Code" means all or a part of the mobile home 23 MANUFACTURED HOUSING code promulgated pursuant to UNDER section 24 5. 25 (c) "Commission" means the mobile home code MANUFACTURED 26 HOUSING commission CREATED UNDER SECTION 3. 02555'01 3 1 (d) "Department" means the department of commerce CONSUMER 2 AND INDUSTRY SERVICES. 3 (e) "Installer and repairer SERVICER" means a person, 4 including a mobile MANUFACTURED home dealer RETAILER, who for 5 compensation installs or repairs mobile SERVICES MANUFACTURED 6 homes. 7 (f) "Local government" means a county or municipality. 8 (g) "Mobile "MANUFACTURED home" means a structure, trans- 9 portable in 1 or more sections, which THAT is built on a chas- 10 sis and designed to be used as a dwelling with or without per- 11 manent foundation, when connected to the required utilities, and 12 includes the plumbing, heating, air-conditioning, and electrical 13 systems contained in the structure. FOR A MANUFACTURED HOME MAN- 14 UFACTURED AFTER JUNE 15, 1976, "MANUFACTURED HOME" INCLUDES A 15 STRUCTURE CONSTRUCTED IN ACCORDANCE WITH THE NATIONAL MANUFAC- 16 TURED HOUSING CONSTRUCTION AND SAFETY STANDARDS ACT OF 1974, 17 TITLE VI OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974, 18 PUBLIC LAW 93-383, 42 U.S.C. 5401 TO 5426. 19 (h) "Mobile "MANUFACTURED home dealer RETAILER" means a 20 person other than a manufacturer engaged in the business of 21 buying mobile MANUFACTURED homes for resale, exchange, lease, 22 or rent or offering mobile MANUFACTURED homes for sale, lease, 23 rent, or exchange to customers. 24 (i) "Mobile "MANUFACTURED home park COMMUNITY" means a 25 parcel or tract of land under the control of a person upon which 26 3 or more mobile MANUFACTURED homes are located on a continual, 27 nonrecreational basis and which THAT is offered to the public 02555'01 4 1 for that purpose regardless of whether a charge is made 2 therefor FOR PLACING A MANUFACTURED HOME ON THE LAND, together 3 with any A building, structure, enclosure, street, equipment, 4 or facility used or intended for use incident to the occupancy of 5 a mobile MANUFACTURED home. 6 (j) "Municipality" means a city, village, or township. 7 (k) "Person" means an individual, partnership, association, 8 trust, or corporation, or any other legal entity or combination 9 of legal entities. 10 (l) "Recreational vehicle" means a vehicle primarily 11 designed and used as temporary living quarters for recreational, 12 camping, or travel purposes, including a vehicle having its own 13 motor power or a vehicle mounted on or drawn by another vehicle. 14 (m) "Seasonal mobile MANUFACTURED home park COMMUNITY" 15 means a parcel or tract of land under the control of a person 16 upon which 3 or more mobile MANUFACTURED homes are located on a 17 continual or temporary basis but occupied on a temporary basis 18 only , and which THAT is offered to the public for that pur- 19 pose regardless of whether a charge is made therefor FOR PLAC- 20 ING A MANUFACTURED HOME ON THE LAND, together with any A build- 21 ing, enclosure, street, equipment, or facility used or intended 22 for use incident to the occupancy of a mobile MANUFACTURED 23 home. Seasonal mobile MANUFACTURED home park does not include 24 a campground licensed pursuant to UNDER sections 12501 to 12516 25 of the public health code, Act No. 368 of the Public Acts of 26 1978, being sections 333.12501 to 333.12516 of the Michigan 27 Compiled Laws 1978 PA 368, MCL 333.12501 TO 333.12516. 02555'01 5 1 (n) "Security interest", "security agreement", "secured 2 party", and "termination statement" have the same meanings as in 3 the uniform commercial code, Act No. 174 of the Public Acts of 4 1962, being sections 440.1101 to 440.11102 of the Michigan 5 Compiled Laws 1962 PA 174, MCL 440.1101 TO 440.11102. 6 Sec. 3. (1) The mobile home MANUFACTURED HOUSING commis- 7 sion is created within the department. of commerce. 8 (2) The commission consists of 11 members appointed by the 9 governor with the advice and consent of the senate, each of whom 10 shall be a citizen of this state. 11 (3) The members of the commission shall include each of the 12 following: 13 (a) A representative of an organization whose membership 14 consists of mobile MANUFACTURED home residents. 15 (b) A representative of financial institutions. 16 (c) Two operators of a licensed mobile MANUFACTURED home 17 park having COMMUNITY THAT HAS 100 or more sites and 1 operator 18 of a licensed mobile MANUFACTURED home park COMMUNITY having 19 less than 100 sites. 20 (d) A representative of organized labor. 21 (e) An elected official of a local government. 22 (f) A licensed mobile MANUFACTURED home dealer 23 RETAILER. 24 (g) One resident of a licensed mobile MANUFACTURED home 25 park having COMMUNITY THAT HAS 100 or more sites and 1 resident 26 of a licensed mobile MANUFACTURED home park having COMMUNITY 27 THAT HAS less than 100 sites. 02555'01 6 1 (h) A manufacturer of mobile MANUFACTURED homes. 2 (4) A person appointed to be a member under subsection 3 (3)(a), (d), (e), (g), or a member of that person's immediate 4 family shall not have more than a 1% ownership interest in or 5 income benefit from a manufacturer of mobile MANUFACTURED 6 homes, a retail seller of mobile MANUFACTURED homes, a licensed 7 mobile MANUFACTURED home park COMMUNITY, or a supplier of 8 ancillary products or services to the mobile MANUFACTURED home 9 industry. 10 (5) The term of each member shall be for IS 3 years. A 11 vacancy in the office of a member shall be filled by the governor 12 for the remainder of the unexpired term, not more than 1 month 13 after the vacancy is created, in the same manner as the original 14 appointment. 15 (6) The per diem compensation of the commission and the 16 schedule for reimbursement of expenses shall be established annu- 17 ally by the legislature. 18 (7) Six members of the commission constitute a quorum for 19 all purposes, notwithstanding the existence of a vacancy in the 20 commission's membership. Action may be taken by the commission 21 by a vote of a majority of the members appointed and serving. 22 Meetings of the commission may be called by the chairperson or by 23 3 members on 3 business days' actual notice. At least 1 meeting 24 shall be held each calendar quarter. The commission may hold 25 meetings anywhere in this state. 26 (8) The commission shall elect a member of the commission as 27 its chairperson and another member as its vice-chairperson. The 02555'01 7 1 duties and powers of the chairperson and vice-chairperson shall 2 be ARE as prescribed in the commission's rules. 3 (9) A member of the commission may be removed from office by 4 the governor for inefficiency, neglect of duty, or misconduct or 5 malfeasance in office. A member of the commission who has a 6 direct pecuniary interest in a matter before the commission shall 7 disclose that interest before the commission taking action with 8 respect to the matter. , which THE disclosure shall become a 9 part of the record of the commission's official proceedings. 10 Sec. 4. (1) The commission may do all of the following: 11 (a) Promulgate rules to implement and administer this act. 12 (b) Act for the purpose of establishing ESTABLISH a uni- 13 form policy relating to all phases of mobile MANUFACTURED home 14 businesses, mobile MANUFACTURED home parks COMMUNITIES, and 15 seasonal mobile MANUFACTURED home parks COMMUNITIES. 16 (c) Determine the sufficiency of local mobile MANUFACTURED 17 home ordinances which THAT are designed to provide local gov- 18 ernments with superintending control over mobile homes 19 MANUFACTURED HOME businesses, mobile MANUFACTURED home parks 20 COMMUNITIES, or seasonal mobile homes parks MANUFACTURED HOME 21 COMMUNITIES. 22 (d) Conduct public hearings relating to the powers pre- 23 scribed in this subsection. 24 (2) The director of commerce THE DEPARTMENT or an autho- 25 rized representative of the director shall do all of the 26 following: 02555'01 8 1 (a) Administer the rules promulgated by the commission 2 DEPARTMENT. 3 (b) Conduct hearings relating to violations of this act or 4 rules promulgated under this act. 5 (c) Make investigations to determine compliance with this 6 act and rules promulgated under this act. 7 (d) Provide assistance to the commission as the commission 8 requires. 9 (3) The commission shall DOES not act for the purpose of 10 regulating mobile REGULATE MANUFACTURED homes that are not 11 located within a mobile MANUFACTURED home park COMMUNITY or a 12 seasonal mobile MANUFACTURED home park COMMUNITY, except as 13 relates to the business, sales, and service practices of mobile 14 MANUFACTURED home dealers RETAILERS and the business AND 15 INSTALLATION practices of mobile MANUFACTURED home installers 16 and repairers SERVICERS. 17 Sec. 5. (1) The commission shall promulgate the mobile 18 home MANUFACTURED HOUSING code subject to section 4. The code 19 shall consist of rules governing all of the following: 20 (a) The licensure, density, layout, permits for construc- 21 tion, AND construction of mobile MANUFACTURED home parks 22 COMMUNITIES including standards for roads, utilities, open space, 23 or proposed recreational facilities, and safety measures suffi- 24 cient to protect health, safety, and welfare of mobile 25 MANUFACTURED home park COMMUNITY residents. , except THE 26 RULES DO NOT GOVERN water supply, sewage collection and 27 treatment, and drainage facilities which are regulated by THAT 02555'01 9 1 the department of public health ENVIRONMENTAL QUALITY 2 REGULATES. 3 (b) The business, sales, and service practices of mobile 4 MANUFACTURED home dealers RETAILERS. 5 (c) The business practices of mobile MANUFACTURED home 6 installers and repairers SERVICERS. 7 (d) The licensure and regulations REGULATION of mobile 8 MANUFACTURED home installers and repairers SERVICERS. 9 (e) The setup and installation of mobile MANUFACTURED 10 homes inside mobile MANUFACTURED home parks COMMUNITIES or 11 seasonal mobile MANUFACTURED home parks COMMUNITIES. 12 (f) The regulation of the responsibilities, under the 13 mobile MANUFACTURED home warranty, of the mobile MANUFACTURED 14 home components manufacturer, the mobile MANUFACTURED home 15 assembler or manufacturer, and the mobile MANUFACTURED home 16 dealer RETAILER, including the time period and relationships of 17 each under the warranty, and the remedies available, if any, if 18 the responsible parties cease to operate as a business. 19 (g) Abuses relating to all of the following: 20 (i) Consumer CUSTOMER deposits, except utility deposits 21 from consumers CUSTOMERS who are direct customers of utilities 22 regulated by the Michigan public service commission. 23 (ii) Detailed listing of furnishings and fixtures by a manu- 24 facturer of a new mobile MANUFACTURED home or a mobile 25 MANUFACTURED home dealer RETAILER for a used mobile PREOWNED 26 MANUFACTURED home. 02555'01 10 1 (iii) Disclosure and delivery of manufacturer's warranties. 2 (iv) Used mobile PREOWNED MANUFACTURED homes. A mobile 3 MANUFACTURED home dealer RETAILER shall provide A detailed 4 listing of its service records for used mobile PREOWNED 5 MANUFACTURED homes which THAT are being sold by the dealer 6 RETAILER and of which THAT the dealer RETAILER has knowledge 7 OF. 8 (h) Applications for and issuance of certificates of title 9 OWNERSHIP for mobile MANUFACTURED homes. 10 (2) As part of the code, the commission shall also promul- 11 gate rules governing the licensure, density, layout, permits for 12 construction, and construction of seasonal mobile MANUFACTURED 13 home parks, including COMMUNITIES. THE RULES SHALL GOVERN stan- 14 dards for roads, utilities, open space, proposed recreational 15 facilities, and safety measures sufficient to protect the health, 16 safety, and welfare of seasonal mobile MANUFACTURED home park 17 COMMUNITY residents. , except THE RULES SHALL NOT GOVERN water 18 supply, sewage collection and treatment, and drainage facilities 19 , which shall be regulated by THAT the department of public 20 health ENVIRONMENTAL QUALITY REGULATES. 21 (3) The IN rules promulgated for seasonal mobile 22 MANUFACTURED home parks COMMUNITIES, THE DEPARTMENT may impose 23 a less stringent standard than the rules promulgated for mobile 24 MANUFACTURED home parks COMMUNITIES. 25 Sec. 6. (1) The department of public health ENVIRONMENTAL 26 QUALITY shall promulgate rules for mobile MANUFACTURED home 27 parks COMMUNITIES and seasonal mobile MANUFACTURED home 02555'01 11 1 parks COMMUNITIES setting forth minimum standards regulating 2 ALL OF THE FOLLOWING: 3 (a) Water supply system. 4 (b) Sewage collection and disposal system. 5 (c) Drainage. 6 (d) Garbage and rubbish storage and disposal. 7 (e) Insect and rodent control. 8 (f) General operation, maintenance, and safety. 9 (g) Certification of compliance under section 17. 10 (2) Representatives of local government shall act in an 11 advisory capacity in the promulgation of the code. 12 (3) The commission shall consult with appropriate state and 13 local governments in developing the procedures for effective 14 coordination of efforts. The commission shall recommend proce- 15 dures to the governor and the legislature for coordinating state 16 agency decisions and activities pertaining to this act. 17 Sec. 7. (1) A local government which THAT proposes a 18 standard related to mobile MANUFACTURED home parks 19 COMMUNITIES or seasonal mobile MANUFACTURED home parks 20 COMMUNITIES, or related to mobile MANUFACTURED homes located 21 within a mobile MANUFACTURED home park COMMUNITY or a sea- 22 sonal mobile MANUFACTURED home park COMMUNITY, that is higher 23 than the standard provided in this act or the code; or a standard 24 related to the business, sales, and service practices of mobile 25 MANUFACTURED home dealers RETAILERS, or the business AND 26 INSTALLATION PRACTICES of mobile MANUFACTURED home installers 27 and repairers SERVICERS, that is higher than the standard 02555'01 12 1 provided in this act or the code shall file the proposed standard 2 with the commission. The commission may promulgate rules to 3 establish the criteria and procedure for implementation of A 4 higher standards STANDARD by a local government. The commis- 5 sion shall review and approve the proposed standard unless the 6 standard is unreasonable, arbitrary, or not in the public 7 interest. If the commission does not approve or disapprove the 8 proposed standard within 60 days after it is filed with the com- 9 mission, the standard shall be considered IS approved unless 10 the local government grants the commission additional time to 11 consider the standard. After the proposed standard is approved, 12 the local government may adopt the standard by ordinance. The 13 ordinance shall relate to a specific section of the code. 14 (2) A local government standard related to mobile 15 MANUFACTURED homes not located within a mobile MANUFACTURED 16 home park COMMUNITY or seasonal mobile MANUFACTURED home 17 park COMMUNITY need not be filed with the mobile home 18 MANUFACTURED HOUSING commission, unless the standard relates to 19 the business, sales, and service practices of mobile 20 MANUFACTURED home dealers RETAILERS, or the business AND 21 INSTALLATION PRACTICES of mobile MANUFACTURED home installers 22 and repairers SERVICERS. 23 (3) A local government ordinance shall not be designed as 24 exclusionary to mobile MANUFACTURED homes generally whether the 25 mobile MANUFACTURED homes are located inside or outside of 26 mobile MANUFACTURED home parks COMMUNITIES or seasonal 27 mobile MANUFACTURED home parks COMMUNITIES. 02555'01 13 1 (4) A local government ordinance shall not contain a 2 standard for the setup or installation of mobile MANUFACTURED 3 homes that is incompatible with, or is more stringent than, 4 either of the following: 5 (a) The manufacturer's recommended setup and installation 6 specifications. 7 (b) The mobile MANUFACTURED home setup and installation 8 standards promulgated by the federal department of housing and 9 urban development pursuant to UNDER the national manufactured 10 housing construction and safety standards act of 1974, TITLE VI 11 OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974, PUBLIC LAW 12 93-383, 42 U.S.C. 5401 to 5426. 13 (5) In the absence of any setup or installation specifica- 14 tions or standards for foundations as set forth in subsection 15 (4)(a) or (b), the local government standards for site-built 16 housing shall apply. 17 (6) A local government ordinance shall not contain roof con- 18 figuration standards or special use zoning requirements that 19 apply only to, or excludes EXCLUDE, mobile MANUFACTURED 20 homes. A local government ordinance shall not contain a manufac- 21 turing or construction standard that is incompatible with, or is 22 more stringent than, a standard promulgated by the federal 23 department of housing and urban development pursuant to UNDER 24 the national manufactured housing construction and safety stan- 25 dards act of 1974, TITLE VI OF THE HOUSING AND COMMUNITY DEVELOP- 26 MENT ACT OF 1974, PUBLIC LAW 93-383 42 U.S.C. 5401 to 5426. A 27 local government ordinance may include reasonable standards 02555'01 14 1 relating to mobile MANUFACTURED homes located outside of 2 mobile MANUFACTURED home parks COMMUNITIES or seasonal 3 mobile MANUFACTURED home parks which COMMUNITIES THAT ensure 4 that mobile MANUFACTURED homes compare aesthetically to 5 site-built housing located or allowed in the same residential 6 zone. 7 Sec. 11. (1) A person who desires to develop a mobile 8 MANUFACTURED home park COMMUNITY or a seasonal mobile 9 MANUFACTURED home park COMMUNITY shall submit a preliminary 10 plan to the DEPARTMENT OF ENVIRONMENTAL QUALITY AND TO THE appro- 11 priate municipality, local health department, county road com- 12 mission, and county drain commissioner for preliminary approval. 13 The preliminary plan shall include the location, THE layout, THE 14 general design, and a general description of the project. The 15 preliminary plan shall not include detailed construction plans. 16 (2) The municipality may grant preliminary approval if the 17 proposed mobile MANUFACTURED home park COMMUNITY or seasonal 18 mobile MANUFACTURED home park COMMUNITY conforms to applica- 19 ble laws and local ordinances not in conflict with this act and 20 laws and ordinances relative to ALL OF THE FOLLOWING: 21 (a) Land use and zoning. 22 (b) Municipal water supply, sewage service, and drainage. 23 (c) Compliance with local fire ordinances and state fire 24 laws. 25 (3) The county drain commissioner shall review and may 26 approve outlet drainage. The county road commission shall review 27 and may approve ingress and egress roads. The county road 02555'01 15 1 commission and the county drain commissioner shall adopt and 2 publish standards to implement this subsection. The county road 3 commission and the county drain commissioner shall DO not have 4 authority as to interior streets and drainage in the mobile 5 MANUFACTURED home park COMMUNITY or seasonal mobile 6 MANUFACTURED home park COMMUNITY, unless the streets or drains 7 are dedicated to the public. 8 (4) The local health department shall grant preliminary 9 approval, under the guidance of the department of public health 10 ENVIRONMENTAL QUALITY, for on-site water and sewage service and 11 general site suitability. 12 (5) If a reviewing agency as provided in this section has 13 not returned the preliminary plan to the developer, either 14 approved, modified, or disapproved, within 60 days after it 15 receives the preliminary plan, the preliminary plan shall be IS 16 considered approved. 17 (6) Coordination of approvals by state and local governments 18 shall be provided by the director of public health 19 ENVIRONMENTAL QUALITY before it THAT DEPARTMENT may grant con- 20 struction approval. 21 (7) The developer shall submit the preliminary approval with 22 the final plans to the department of public health 23 ENVIRONMENTAL QUALITY for review before the department of 24 commerce CONSUMER AND INDUSTRY SERVICES may issue a construc- 25 tion permit. 02555'01 16 1 Sec. 12. (1) When all preliminary approvals are made, the 2 developer shall submit the legal documents and the final plans 3 draft to the department. 4 (2) The department shall review the filing and within 90 5 days after filing issue its approval or disapproval. Upon the 6 approval of all the reviewing agencies, the department shall 7 issue a permit to construct the mobile MANUFACTURED home park 8 COMMUNITY or seasonal mobile MANUFACTURED home park 9 COMMUNITY. 10 Sec. 13. (1) A person shall not construct a mobile 11 MANUFACTURED home park COMMUNITY or seasonal mobile 12 MANUFACTURED home park COMMUNITY without obtaining a permit 13 issued by the department. 14 (2) Construction may begin upon the granting of WHEN THE 15 DEPARTMENT GRANTS a permit to construct. by the department. 16 Sec. 14. Upon completion of the construction of the 17 mobile A MANUFACTURED home park COMMUNITY or seasonal mobile 18 MANUFACTURED home park COMMUNITY, the owner or operator of the 19 park COMMUNITY and a registered professional engineer or archi- 20 tect shall file with the department an affidavit certifying that 21 the mobile MANUFACTURED home park COMMUNITY or seasonal 22 mobile MANUFACTURED home park COMMUNITY, lot, and work were 23 completed in accordance with the approved specifications and 24 plans. 25 Sec. 16. (1) A person shall not operate a mobile 26 MANUFACTURED home park COMMUNITY or seasonal mobile 27 MANUFACTURED home park COMMUNITY without a license. 02555'01 17 1 (2) Upon completion, review, and approval of certifications, 2 the department shall grant a license to operate a mobile 3 MANUFACTURED home park COMMUNITY or seasonal mobile 4 MANUFACTURED home park COMMUNITY. 5 (3) An annual license shall be granted and renewed by the 6 department based upon the certifications and recommendations of 7 the appropriate agencies and local governments. 8 (4) If a person submits a timely application for renewal of 9 a license and pays the appropriate fee, the person may continue 10 to operate a mobile MANUFACTURED home park COMMUNITY or sea- 11 sonal mobile MANUFACTURED home park COMMUNITY unless notified 12 that the application for renewal is not approved. 13 (5) A campground which THAT is currently licensed under 14 sections 12501 to 12516 of the public health code, Act No. 368 15 of the Public Acts of 1978, being sections 333.12501 to 333.12516 16 of the Michigan Compiled Laws 1978 PA 368, MCL 333.12501 TO 17 333.12516, THAT was previously licensed under the licensing pro- 18 visions of Act No. 243 of the Public Acts of 1959, being sec- 19 tions 125.1035 to 125.1043 of the Michigan Compiled Laws 1959 PA 20 243, MCL 125.1035 TO 125.1043, as a seasonal trailer park, and 21 which THAT currently meets the seasonal trailer park construc- 22 tion standards under Act No. 243 of the Public Acts of 1959 23 1959 PA 243, MCL 125.1035 TO 125.1043, may apply for and shall be 24 licensed as a seasonal mobile MANUFACTURED home park 25 COMMUNITY under this act if the campground meets all other 26 requirements for licensure under this act as a seasonal mobile 27 MANUFACTURED home park COMMUNITY. 02555'01 18 1 Sec. 16a. Mobile homes A MANUFACTURED HOME located in a 2 seasonal mobile MANUFACTURED home park COMMUNITY may be occu- 3 pied on a full-time basis from April 1 to October 31, but shall 4 not be occupied for more than 15 consecutive days in any 30-day 5 period from November 1 to March 31. 6 Sec. 17. (1) The department of public health 7 ENVIRONMENTAL QUALITY or its authorized representative shall con- 8 duct an annual physical inspection of mobile MANUFACTURED home 9 parks COMMUNITIES and seasonal mobile MANUFACTURED home 10 parks COMMUNITIES in accordance with standards established by 11 the department of public health ENVIRONMENTAL QUALITY. If the 12 mobile MANUFACTURED home park COMMUNITY or seasonal mobile 13 MANUFACTURED home park COMMUNITY is approved, the department of 14 public health ENVIRONMENTAL QUALITY shall issue a certification 15 of compliance to the department of commerce CONSUMER AND INDUS- 16 TRY SERVICES that the park COMMUNITY is licensable. 17 (2) Except for purposes of issuing a license or renewing a 18 license pursuant to UNDER this act, a local government may 19 SHALL not make an inspection unless it has reason to believe that 20 this act, the code, or rules promulgated pursuant to UNDER this 21 act were violated. 22 Sec. 18. (1) A variance in the design and construction of a 23 mobile MANUFACTURED home park COMMUNITY or seasonal mobile 24 MANUFACTURED home park COMMUNITY may be granted upon notice of 25 the request to the local government and the department of public 26 health ENVIRONMENTAL QUALITY, IF THE VARIANCE HAS OR MAY HAVE AN 27 IMPACT ON DEPARTMENT OF ENVIRONMENTAL QUALITY RULES, at the time 02555'01 19 1 of filing with the department of commerce CONSUMER AND INDUSTRY 2 SERVICES. If the local government grants a variance which would 3 permit activities violative of the minimum standards of the code, 4 the local government shall file with the department a copy of the 5 variance order and an explanation of the reason for the granting 6 of the order. The department may approve or disapprove the vari- 7 ance or revoke the variance upon notice and hearing. 8 (2) After a public hearing, the department COMMISSION may 9 grant a specific variance to a substantive requirement of the 10 code if the literal application of the substantive requirement 11 would result in an exceptional, practical difficulty to the 12 applicant, and if the specific condition justifying the variance 13 is neither so general nor recurrent in nature as to make an 14 amendment of the code with respect to the condition reasonably 15 practical or desirable. 16 (3) The department COMMISSION may attach in writing a con- 17 dition in connection with the granting of a variance that in its 18 judgment is necessary to protect the health, safety, and welfare 19 of the people of this state. The variance shall not exceed the 20 minimum necessary to alleviate the exceptional, practical 21 difficulty. 22 (4) A variance to a local ordinance, zoning requirement, or 23 local rule may be granted only by a local government. 24 (5) A variance to a rule promulgated under this act may be 25 granted only by the commission. 02555'01 20 1 Sec. 21. (1) A mobile MANUFACTURED home dealer RETAILER 2 shall not engage in the retail sale of a mobile MANUFACTURED 3 home without a license. 4 (2) A mobile MANUFACTURED home dealer, mobile RETAILER, 5 OR A MANUFACTURED home installer , or repairer SERVICER, may 6 obtain an initial or renewal license by filing with the commis- 7 sion an application together with consent to service of process 8 in a form prescribed by the commission pursuant to UNDER sec- 9 tion 35. 10 (3) An initial or renewal license under this act shall be 11 issued for not more than 1 year. Licenses shall expire on 12 October 1. 13 (4) The annual license fee for a mobile MANUFACTURED home 14 dealer RETAILER is $150.00 or any other A lesser amount 15 established pursuant to UNDER section 9(5). 16 (5) The annual license fee for a mobile MANUFACTURED home 17 installer or repairer is $50.00 or any other A lesser amount 18 established pursuant to UNDER section 9(5). 19 (6) A licensed mobile MANUFACTURED home dealer, mobile 20 RETAILER, OR A MANUFACTURED home installer , or repairer 21 SERVICER, may file an application for the license of a successor, 22 whether or not the successor is then in existence, for the unex- 23 pired portion of the year. The commission may grant or deny the 24 application. 25 (7) A licensee who submits a timely application for renewal 26 of a license and pays the appropriate fee may continue sales of 02555'01 21 1 mobile MANUFACTURED homes unless notified that the application 2 for renewal is not approved. 3 Sec. 22. The commission may promulgate rules to require a 4 licensed mobile MANUFACTURED home dealer RETAILER to post a 5 surety bond in an amount up to $10,000.00 for each sales location 6 and may determine conditions of the bond. An appropriate deposit 7 of cash or securities shall be accepted in lieu of a REQUIRED 8 bond. which is required. 9 Sec. 23. A licensed mobile MANUFACTURED home dealer 10 RETAILER shall make and keep accounts, and other records as the 11 commission prescribes by rule. The records required shall be 12 preserved for 3 years unless the commission otherwise prescribes 13 by rule for particular types of records. If the information con- 14 tained in a record filed with the commission is or becomes inac- 15 curate or incomplete in any A material respect, the licensee 16 promptly shall file a correcting amendment. 17 Sec. 24. A mobile MANUFACTURED home dealer RETAILER 18 shall not DO ANY OF THE FOLLOWING: 19 (a) Advertise or represent a mobile MANUFACTURED home as 20 other than calendar or model year. 21 (b) Misapply consumer CUSTOMER deposits on a mobile 22 MANUFACTURED home or a mobile MANUFACTURED home park 23 COMMUNITY. 24 (c) Fail to place deposits, down payments, or similar pay- 25 ments for the purchase or right to purchase a mobile 26 MANUFACTURED home in a separate escrow account subject to return 27 upon cancellation of the purchase order by the prospective 02555'01 22 1 purchaser under the rules or orders as the commission promulgates 2 or issues unless the dealer shall post RETAILER POSTS a bond or 3 a deposit of cash or securities for protection of these payments 4 in an amount acceptable to the commission. 5 (d) Fail to disclose to the department any direct or indi- 6 rect business relationships with financial and loan institutions, 7 banks, and insurance companies. 8 Sec. 25. (1) The commission shall promulgate rules relating 9 to the responsibility of the mobile MANUFACTURED home dealer, 10 mobile RETAILER, THE MANUFACTURED home installer AND SERVICER, 11 and the mobile MANUFACTURED home park COMMUNITY or seasonal 12 mobile MANUFACTURED home park COMMUNITY owner for installa- 13 tion and setup of a mobile MANUFACTURED home. 14 (2) A person licensed under any 1 OR MORE of the following 15 acts shall IS not be required to be licensed as a mobile 16 MANUFACTURED home installer and repairer SERVICER in order to 17 perform work on mobile MANUFACTURED homes for which the person 18 is licensed, unless the work performed also includes the setup, 19 installation, or general repair SERVICING of mobile 20 MANUFACTURED homes: 21 (a) The electrical administrative act, Act No. 217 of the 22 Public Acts of 1956, being sections 338.881 to 338.892 of the 23 Michigan Compiled Laws 1956 PA 217, MCL 338.881 TO 338.892. 24 (b) Act No. 266 of the Public Acts of 1929, being sections 25 338.901 to 338.917 of the Michigan Compiled Laws 1929 PA 266, 26 MCL 338.901 TO 338.917. 02555'01 23 1 (c) The Forbes mechanical contractors act, Act No. 192 of 2 the Public Acts of 1984, being sections 338.971 to 338.988 of the 3 Michigan Compiled Laws 1984 PA 192, MCL 338.971 TO 338.988. 4 (3) The electrical administrative act, Act No. 217 of the 5 Public Acts of 1956, being sections 338.881 to 338.892 of the 6 Michigan Compiled Laws, Act No. 266 of the Public Acts of 1929, 7 being sections 338.901 to 338.917 of the Michigan Compiled Laws 8 1956 PA 217, MCL 338.881 TO 338.892, 1929 PA 266, MCL 338.901 TO 9 338.917, and the Forbes mechanical contractors act, Act No. 192 10 of the Public Acts of 1984, being sections 338.971 to 338.988 of 11 the Michigan Compiled Laws, shall 1984 PA 192, MCL 338.971 TO 12 338.988, DO not apply to the setup or installation of a mobile 13 MANUFACTURED home and the following connections, or replacement 14 or repair SERVICING of the following connections, by a licensed 15 mobile MANUFACTURED home installer and repairer SERVICER: 16 (a) Factory-installed electrical wiring, devices, appli- 17 ances, or appurtenances to available electrical meters or 18 pedestals. 19 (b) Factory-installed piping, fixtures, plumbing appliances, 20 and plumbing appurtenances to sanitary drainage or storm drainage 21 facilities, venting systems, or public or private water supply 22 systems. 23 (c) Factory-installed process piping, heating and cooling 24 equipment, and systems or supply lines to available service 25 meters or mains. 26 Sec. 27. (1) A person shall not, in IN connection with 27 the offer, sale, purchase, or rental of a mobile MANUFACTURED 02555'01 24 1 home, mobile MANUFACTURED home site, or RELATED equipment, 2 relating thereto A PERSON SHALL NOT DO EITHER OF THE 3 FOLLOWING: 4 (a) Employ a devise, scheme, or artifice to defraud. 5 (b) Make an untrue statement of material fact or omit to 6 state a material fact necessary to make the statement not mis- 7 leading, in the light of the circumstances under which it is 8 made. 9 (2) A person shall not willfully authorize, direct, or aid 10 in publication, advertisement, distribution, or circulation of a 11 statement or representation concerning a mobile MANUFACTURED 12 home, mobile MANUFACTURED home site, or RELATED equipment 13 relating thereto, which THAT misrepresents the facts concerning 14 the mobile MANUFACTURED home, mobile MANUFACTURED home site, 15 or RELATED equipment. relating thereto. 16 (3) A person with knowledge that an advertisement, pamphlet, 17 prospectus, or letter concerning a mobile MANUFACTURED home, 18 mobile MANUFACTURED home site, or RELATED equipment relating 19 thereto contains a written statement that is false or fraudulent 20 , shall not issue, circulate, publish, or distribute the adver- 21 tisement, pamphlet, prospectus, or letter concerning a mobile 22 MANUFACTURED home, mobile MANUFACTURED home site, or RELATED 23 equipment. relating thereto. 24 (4) A person shall not willfully make any A material mis- 25 representation in the sale of a mobile MANUFACTURED home, 26 mobile MANUFACTURED home site, or RELATED equipment. relating 27 thereto. 02555'01 25 1 Sec. 28. (1) An owner or operator of a mobile MANUFACTURED 2 home park COMMUNITY or seasonal mobile MANUFACTURED home 3 park COMMUNITY shall not engage, or permit an employee or agent 4 to engage, in any of the following unfair or deceptive methods, 5 acts, or practices: 6 (a) Directly or indirectly charging or collecting from a 7 person an entrance fee. 8 (b) Requiring a person to directly or indirectly purchase a 9 mobile MANUFACTURED home from another person as a condition of 10 entrance to, or lease or rental of, a mobile MANUFACTURED home 11 park COMMUNITY or seasonal mobile MANUFACTURED home park 12 COMMUNITY space. 13 (c) Directly or indirectly charging or collecting from a 14 person a refundable or nonrefundable exit fee. 15 (d) Requiring or coercing a person to purchase, rent, or 16 lease goods or services from another person as a condition of any 17 of the following: 18 (i) Entering into a park COMMUNITY or lease. 19 (ii) Selling a mobile MANUFACTURED home through the park 20 COMMUNITY owner or operator , or his or her agent or designee 21 upon leaving a mobile MANUFACTURED home park COMMUNITY or 22 seasonal mobile MANUFACTURED home park COMMUNITY. 23 (iii) Renting space in a mobile MANUFACTURED home park 24 COMMUNITY or seasonal mobile MANUFACTURED home park 25 COMMUNITY. 26 (e) Directly or indirectly charging or collecting from a 27 person money or other thing of value for electric, fuel, or water 02555'01 26 1 service without the RESIDENT'S OR TENANT'S use of that service 2 by a resident or tenant being first accurately and consistently 3 measured, unless that service is included in the rental charge as 4 an incident of tenancy. 5 (f) Conspiring, combining, agreeing, aiding, or abetting in 6 the employment of a method, act, or practice that violates this 7 act. 8 (g) Renting or leasing a mobile MANUFACTURED home or site 9 in a mobile MANUFACTURED home park COMMUNITY or seasonal 10 mobile MANUFACTURED home park COMMUNITY without offering a 11 written lease. 12 (h) Subject to section 28a, prohibiting a resident from 13 selling his or her mobile MANUFACTURED home on-site for a price 14 determined by that resident, if the purchaser qualifies for ten- 15 ancy and the mobile MANUFACTURED home meets the conditions of 16 written park COMMUNITY rules or regulations. This subdivision 17 does not apply to seasonal mobile MANUFACTURED home parks 18 COMMUNITIES. 19 (i) Subject to reasonable mobile MANUFACTURED home park 20 COMMUNITY or seasonal mobile MANUFACTURED home park COMMUNITY 21 rules governing the location, size, and style of exterior televi- 22 sion antenna, prohibiting a person from installing or maintaining 23 an exterior television antenna on a mobile MANUFACTURED home 24 within the park COMMUNITY unless the mobile MANUFACTURED home 25 park COMMUNITY or seasonal mobile MANUFACTURED home park 26 COMMUNITY provides park residents, without charge, a central 27 television antenna for UHF-VHF reception. 02555'01 27 1 (J) REQUIRING A REPOSSESSING LENDER TO PAY A HOMEOWNER'S 2 DEBT THAT WAS INCURRED BEFORE REPOSSESSION OF THE MANUFACTURED 3 HOME. 4 (K) PROHIBITING A REPOSSESSING LENDER FROM SELLING A MANU- 5 FACTURED HOME ON-SITE. 6 (2) A tenant RESIDENT of a mobile MANUFACTURED home 7 park COMMUNITY or seasonal mobile MANUFACTURED home park 8 COMMUNITY may bring an action on his or her own behalf for a vio- 9 lation of this section. 10 (3) If the commission has reason to suspect that the owner 11 of a mobile MANUFACTURED home park COMMUNITY or seasonal 12 mobile MANUFACTURED home park COMMUNITY is engaged in conduct 13 that violates existing water utility tariffs or qualifies the 14 owner of a mobile MANUFACTURED home park COMMUNITY or sea- 15 sonal mobile MANUFACTURED home park COMMUNITY for regulation 16 as a water utility, the commission shall promptly send a written 17 report of the alleged violation to the Michigan public service 18 commission. 19 Sec. 28a. (1) Mobile MANUFACTURED home park COMMUNITY 20 rules or regulations may include provisions governing the physi- 21 cal condition of mobile MANUFACTURED homes and the aesthetic 22 characteristics of mobile MANUFACTURED homes in relation to the 23 mobile MANUFACTURED home park COMMUNITY in which they are 24 located, subject to all of the following: 25 (a) The age or size of a mobile MANUFACTURED home shall 26 not be used as the sole basis for refusing to allow an on-site, 27 in-park IN-COMMUNITY sale or for refusing to allow the mobile 02555'01 28 1 MANUFACTURED home to remain on-site. THE COMMUNITY RULES OR 2 REGULATIONS SHALL NOT ESTABLISH A MINIMUM VALUE OR A MINIMUM SALE 3 PRICE FOR A MANUFACTURED HOME AS A CONDITION TO AN IN-COMMUNITY 4 SALE OF THE HOME. The burden of going forward in a suit against 5 the mobile MANUFACTURED home park COMMUNITY owner or operator 6 for violation of this subdivision is on the resident. 7 (b) The standards incorporated in the written park 8 COMMUNITY rules or regulations governing the physical condition 9 and aesthetic characteristics of mobile MANUFACTURED homes in 10 the mobile MANUFACTURED home park shall COMMUNITY apply 11 equally to all residents. 12 (c) A mobile MANUFACTURED home sold on-site shall conform 13 with Act No. 133 of the Public Acts of 1974, being sections 14 125.771 to 125.774 of the Michigan Compiled Laws 1974 PA 133, 15 MCL 125.771 TO 125.774. 16 (d) Any A charge connected to the on-site, in-park 17 IN-COMMUNITY sale of a mobile MANUFACTURED home, other than the 18 inspection fee permitted under subdivision (e) and the commission 19 or fee charged by a mobile MANUFACTURED home dealer RETAILER 20 licensed under this act who is engaged by the seller to transact 21 the sale, is an entrance or exit fee in violation of section 28. 22 (e) A park COMMUNITY owner or operator may charge a rea- 23 sonable fee to inspect the mobile MANUFACTURED home before 24 sale. The charge shall not be more than $30.00, or the amount 25 charged for A building permit inspections INSPECTION by the 26 municipality in which the mobile MANUFACTURED home is located, 27 whichever is higher. 02555'01 29 1 (f) The standards governing the physical condition of 2 mobile MANUFACTURED homes and the aesthetic characteristics of 3 mobile MANUFACTURED homes in the mobile MANUFACTURED home 4 park COMMUNITY, as incorporated in the written park COMMUNITY 5 rules, shall not be designed to defeat the intent of this 6 section. 7 (2) Subsection (1)(f) shall DOES not apply if the mobile 8 MANUFACTURED home park COMMUNITY is changing its method of 9 doing business and provides not less than 1 year's notice, unless 10 a different notice period is otherwise provided by law, of the 11 proposed change to all affected mobile MANUFACTURED home park 12 COMMUNITY residents. A change in a mobile MANUFACTURED home 13 park's COMMUNITY'S method of doing business includes, but is 14 not limited to, any 1 OR MORE of the following: 15 (a) Conversion to a mobile MANUFACTURED home park 16 COMMUNITY condominium pursuant to UNDER the condominium act, 17 Act No. 59 of the Public Acts of 1978, being sections 559.101 to 18 559.275 of the Michigan Compiled Laws 1978 PA 59, MCL 559.101 TO 19 559.276. 20 (b) Conversion to total rental of both mobile MANUFACTURED 21 home site and park-owned mobile COMMUNITY-OWNED MANUFACTURED 22 homes. 23 (c) Changes in use of the land on which the mobile 24 MANUFACTURED home park COMMUNITY is located. 25 (3) Notwithstanding subsection (1) or (2), a mobile 26 MANUFACTURED home park COMMUNITY may require a mobile 27 MANUFACTURED home to be moved to a comparable site within the 02555'01 30 1 mobile MANUFACTURED home park COMMUNITY, at the expense of 2 the mobile MANUFACTURED home park COMMUNITY. 3 (4) If, after termination of a resident's tenancy for just 4 cause as provided in chapter 57a of the revised judicature act of 5 1961, Act No. 236 of the Public Acts of 1961, being sections 6 600.5771 to 600.5785 of the Michigan Compiled Laws 1961 PA 236, 7 MCL 600.5771 TO 600.5785, the resident of a mobile MANUFACTURED 8 home park COMMUNITY sells his or her mobile MANUFACTURED home 9 to the owner or operator of the mobile MANUFACTURED home park 10 COMMUNITY, or to any AN entity in which the owner or operator 11 has any AN interest, the resident shall have HAS the right to 12 have the mobile MANUFACTURED home's value appraised and, if so 13 appraised, the sale price of the mobile MANUFACTURED home shall 14 not be less than the appraised value. 15 (5) Except as provided in subsection (1)(a), a mobile 16 MANUFACTURED home park COMMUNITY owner or operator, or both, 17 has the burden of going forward to show compliance with subsec- 18 tion (1). 19 Sec. 28b. A mobile MANUFACTURED home park COMMUNITY 20 rule that does either of the following shall not be enforced 21 against a resident, unless the rule was proposed and in force 22 before the resident was approved for tenancy in the mobile 23 MANUFACTURED home park COMMUNITY: 24 (a) Prohibits those children A CHILD who were WAS previ- 25 ously approved under prior park COMMUNITY rules from residing 26 in the mobile MANUFACTURED home park COMMUNITY. A rule 27 prohibiting children A CHILD, or AN additional children 02555'01 31 1 CHILD, shall not be enforced against persons A PERSON who were 2 residents WAS A RESIDENT of the mobile MANUFACTURED home 3 park COMMUNITY at the time the rule was adopted until after 4 1 year's notice to those persons THAT PERSON. 5 (b) Prohibits a resident from keeping those pets which 6 were A PET THAT WAS previously approved under prior park 7 COMMUNITY rules, except A dangerous animals ANIMAL. 8 Sec. 28c. (1) A lease or rental agreement or rules or regu- 9 lations that are adopted pursuant to UNDER a lease or rental 10 agreement may include a provision that requires AWARDING liqui- 11 dated damages to be awarded to the prevailing party in a con- 12 tested action to terminate a tenancy in a mobile MANUFACTURED 13 home park COMMUNITY for just cause under section 5775 of the 14 revised judicature act of 1961, Act No. 236 of the Public Acts 15 of 1961, being section 600.5775 of the Michigan Compiled Laws 16 1961 PA 236, MCL 600.5775. 17 (2) A provision allowed under subsection (1) may require 18 liquidated damages of not more than $500.00 for an action in the 19 district court and not more than $300.00 for each appellate 20 level. Liquidated damages shall not be construed to be a 21 penalty. 22 Sec. 29. A utility company shall notify the department 10 23 days before shutoff of service for nonpayment, including sewer, 24 water, gas, or electric service, when the service is being sup- 25 plied to the licensed owner or operator of a mobile 26 MANUFACTURED home park COMMUNITY or seasonal mobile 02555'01 32 1 MANUFACTURED home park COMMUNITY for the use and benefit of the 2 park's COMMUNITY'S tenants. 3 Sec. 30. (1) After December 31, 1978, every mobile 4 MANUFACTURED home located in this state shall be IS subject to 5 the certificate of title OWNERSHIP provisions of this act, 6 except for any A new mobile MANUFACTURED home owned by a man- 7 ufacturer or licensed mobile MANUFACTURED home dealer 8 RETAILER and held for sale. 9 (2) After December 31, 1978, a certificate of title for a 10 mobile MANUFACTURED home issued by the secretary of state 11 before January 1, 1979, pursuant to Act No. 300 of the Public 12 Acts of 1949, being sections 257.1 to 257.923 of the Michigan 13 Compiled Laws UNDER THE MICHIGAN VEHICLE CODE, 1949 PA 300, MCL 14 257.1 TO 257.923, shall be IS considered to be a certificate 15 of title OWNERSHIP issued by the department under this act and 16 shall be IS subject to all of the provisions of this act 17 respecting REGARDING certificates of title OWNERSHIP. 18 (3) After December 31, 1978, a mobile MANUFACTURED home 19 shall not be sold or transferred except by transfer of the cer- 20 tificate of title OWNERSHIP for the mobile MANUFACTURED home 21 pursuant to UNDER this act. 22 Sec. 30a. (1) An owner of a mobile MANUFACTURED home 23 which THAT is subject to the certificate of title OWNERSHIP 24 provisions of this act shall make application APPLY to the 25 department for the issuance of a certificate of title OWNERSHIP 26 for the mobile MANUFACTURED home upon the appropriate form 27 furnished by the department, accompanied by a fee of $45.00 or 02555'01 33 1 any A lesser amount established pursuant to UNDER section 2 9(5). The application shall bear the signature of the owner 3 written in ink, shall be acknowledged by the owner before a 4 person authorized to take acknowledgments, and shall contain ALL 5 OF THE FOLLOWING: 6 (a) The name and address of the owner. 7 (b) A description of the mobile MANUFACTURED home, includ- 8 ing the name of the manufacturer, the year and model, and the 9 manufacturer's serial number or, in the absence of a serial 10 number, a number assigned by the department. A number assigned 11 by the department shall be permanently placed on the mobile 12 MANUFACTURED home in the manner and place designated by the 13 department. 14 (c) A statement of the names and addresses of the holders 15 of any security interests in the mobile NAME AND ADDRESS OF EACH 16 HOLDER OF A SECURITY INTEREST IN THE MANUFACTURED home, in the 17 order of their priority. 18 (d) Further information as may reasonably be required by the 19 department to enable it to determine whether the owner of the 20 mobile MANUFACTURED home is entitled to a certificate of 21 title OWNERSHIP for the mobile MANUFACTURED home. 22 (2) If the department is not satisfied as to the ownership 23 of the mobile A MANUFACTURED home, before issuing a certificate 24 of title OWNERSHIP for it, the department may require the 25 applicant to file a properly executed surety bond in a form pre- 26 scribed by the department, executed by the applicant and a 27 company authorized to conduct a surety business in this state. 02555'01 34 1 The bond shall be in an amount equal to twice the value of the 2 mobile MANUFACTURED home as determined by the department and 3 shall be conditioned to indemnify or reimburse the department, 4 any A prior owner, any A holder of a security interest in the 5 mobile MANUFACTURED home, and any A subsequent purchaser of 6 the mobile MANUFACTURED home, and their successors in interest, 7 against any expense, loss, or damage, including reasonable 8 attorney's fees, by reason of the issuance of a certificate of 9 title OWNERSHIP to the mobile MANUFACTURED home or on account 10 of any A defect in the right, title OWNERSHIP, or interest of 11 the applicant in and to the mobile MANUFACTURED home. Each 12 interested person has a right of action to recover on the bond 13 for a breach of its conditions, but the aggregate liability of 14 the surety to all persons shall not exceed the amount of the 15 bond. The bond shall be returned at the end of 5 years, or 16 before 5 years if the currently valid certificate of title 17 OWNERSHIP is surrendered to the department, unless the department 18 has received notification of the pendency of THAT an action IS 19 PENDING to recover on the bond. 20 (3) The department shall examine and determine the genuine- 21 ness, regularity, and legality of an application for a certifi- 22 cate of title OWNERSHIP for a mobile MANUFACTURED home and of 23 any other application lawfully made to the department. , and 24 THE DEPARTMENT may in all cases make investigation INVESTIGATE 25 or require additional information as may be considered IT 26 CONSIDERS necessary, and shall reject any AN application if not 27 satisfied of AS TO the genuineness, regularity, or legality of 02555'01 35 1 it or the truth of any A statement contained in it, or for any 2 other reason, when authorized by law. 3 (4) The fee for obtaining a duplicate, replacement, or cor- 4 rected title CERTIFICATE OF OWNERSHIP, for placing or terminat- 5 ing a lien on the title CERTIFICATE OF OWNERSHIP, or for plac- 6 ing a name on the title CERTIFICATE OF OWNERSHIP is $15.00 or 7 any other A lesser amount established pursuant to UNDER sec- 8 tion 9(5). 9 Sec. 30b. (1) The department upon receipt of the required 10 application and fees shall issue a certificate of title 11 OWNERSHIP except as otherwise provided. 12 (2) The certificate of title OWNERSHIP shall contain upon 13 its face the date issued, the name and address of the owner, a 14 description of the mobile MANUFACTURED home as determined by 15 the department, a statement of all security interests in the 16 mobile MANUFACTURED home as set forth in the application, the 17 date on which the application was filed, and other information as 18 the department may require. 19 (3) The certificate of title OWNERSHIP shall contain 20 upon ON the reverse side forms for assignment of title 21 OWNERSHIP or interest and warranty of title OWNERSHIP by the 22 owner with space for notation of security interests in the 23 mobile MANUFACTURED home at the time of a transfer to be signed 24 in ink, and other forms as the department may consider 25 CONSIDERS necessary to facilitate the effective administration of 26 this section. The certificate shall bear the DEPARTMENT'S seal. 27 of the department. 02555'01 36 1 (4) The certificate of title OWNERSHIP shall be mailed or 2 delivered to the owner or other person as the owner may direct in 3 a separate instrument, in the form as the department shall 4 prescribe PRESCRIBES. 5 Sec. 30c. (1) If the owner of a mobile MANUFACTURED home 6 transfers or assigns the owner's title OWNERSHIP or interest to 7 the mobile MANUFACTURED home, the owner shall indorse ENDORSE 8 on the back of the certificate of title OWNERSHIP an assignment 9 of the mobile MANUFACTURED home with warranty of title 10 OWNERSHIP with a statement of all security interests in the 11 mobile MANUFACTURED home. , and THE OWNER shall cause MAIL 12 OR DELIVER the certificate to be mailed or delivered to the 13 department or to the purchaser or transferee at the time of the 14 delivery to the purchaser or transferee of the mobile 15 MANUFACTURED home. 16 (2) Upon the delivery of a mobile MANUFACTURED home and 17 the transfer, sale, or assignment of the title OWNERSHIP or 18 interest in a mobile MANUFACTURED home, the effective date of 19 the transfer of title OWNERSHIP or interest shall be IS the 20 date of execution of either the application for title 21 CERTIFICATE OF OWNERSHIP or the certificate of title 22 OWNERSHIP. 23 (3) The purchaser or transferee, unless the purchaser or 24 transferee is a licensed dealer RETAILER, shall cause to be 25 presented PRESENT to the department the certificate of title 26 OWNERSHIP accompanied by 1 OF the FOLLOWING applicable fee, as 27 follows FEES: 02555'01 37 1 (a) Except as provided in subdivision (b) or (c), $45.00. 2 (b) Except as provided in subdivision (c), $15.00, if the 3 sale, assignment, or other transfer will require the addition or 4 deletion from the certificate of title OWNERSHIP of any 1 OR 5 MORE of the following: 6 (i) The owner's spouse. 7 (ii) A person related to the owner within the fourth degree 8 of consanguinity as computed by the civil law method. 9 (iii) A person related to the owner's spouse within the 10 fourth degree of consanguinity as computed by the civil law 11 method. 12 (c) Any other A lesser amount established pursuant to 13 UNDER section 9(5). 14 (4) Upon presentation of the certificate of title 15 OWNERSHIP accompanied by the applicable fee, a new certificate of 16 title OWNERSHIP shall be issued. A certificate of title 17 OWNERSHIP issued under subsection (3) and this subsection shall 18 be mailed or delivered to the owner or any other ANOTHER person 19 the owner may direct DIRECTS in a separate instrument in a form 20 as prescribed by the department PRESCRIBES. 21 (5) If a security interest is reserved or created at the 22 time of the transfer, the parties shall comply with section 30d. 23 (6) If the transferee of a mobile MANUFACTURED home is a 24 mobile MANUFACTURED home dealer RETAILER who holds the 25 mobile MANUFACTURED home for resale, the dealer shall 26 RETAILER IS not be required to forward the certificate of 27 title OWNERSHIP to the department, but the dealer RETAILER 02555'01 38 1 shall retain possession of the assigned certificate of title 2 OWNERSHIP. Upon transfer of the dealer's title RETAILER'S 3 OWNERSHIP or interest to another person, the dealer RETAILER 4 shall execute and acknowledge an assignment and warranty of 5 title OWNERSHIP upon the certificate of title OWNERSHIP and 6 deliver it to the person to whom the transfer is made if the 7 person is a licensed dealer otherwise RETAILER. OTHERWISE, THE 8 TRANSFEROR SHALL MAKE application for a new title shall be made 9 by the transferor CERTIFICATE OF OWNERSHIP as provided in sec- 10 tion 30a(1). 11 Sec. 30d. (1) If an owner named in a certificate of title 12 OWNERSHIP creates a security interest in the mobile 13 MANUFACTURED home described in the certificate, ALL OF THE FOL- 14 LOWING APPLY: 15 (a) The owner shall immediately execute an application in 16 the form prescribed by the department PRESCRIBES showing the 17 name and address of the holder of the security interest. and 18 THE OWNER SHALL deliver the certificate of title OWNERSHIP, 19 application, and a fee of $1.00 together with a copy of the 20 application, which need not DOES NOT NEED TO be signed, to the 21 holder of the security interest. 22 (b) The holder of the security interest shall cause MAIL 23 OR DELIVER the certificate of title OWNERSHIP, application, and 24 fee and the copy of the application to be mailed or delivered 25 to the department. 02555'01 39 1 (c) The department shall indicate on the copy of the 2 application the date and place of filing of the application and 3 return the copy to the person presenting it. 4 (d) Upon receipt of the certificate of title OWNERSHIP, 5 application, and the required fee the department shall issue a 6 new certificate in the form provided PRESCRIBED by section 30b 7 setting forth the name and address of each holder of a security 8 interest in the mobile MANUFACTURED home for which a termina- 9 tion statement has not been filed and the date on which THAT 10 the application first stating the security interest was filed, 11 and mail the certificate to the owner. 12 (2) A holder of a security interest may assign, absolutely 13 or otherwise, the security interest to a person other than the 14 owner without affecting the interest of the owner or the validity 15 of the security interest, but a person without notice of the 16 assignment is protected in dealing with the holder of the secur- 17 ity interest as the holder of the security interest. The 18 assignee may have the certificate of title indorsed OWNERSHIP 19 ENDORSED with the assignee named as the holder of the security 20 interest by providing the department with a copy of the assign- 21 ment instrument but the failure of the assignee to do so shall 22 DOES not affect the validity of the security interest or the 23 assignment of the security interest. 24 (3) The filing under this section or under section 30a of an 25 application for a certificate of title OWNERSHIP showing the 26 name and address of the holder of a security interest in a 27 mobile MANUFACTURED home is equivalent to the filing of a 02555'01 40 1 financing statement with respect to the security interest under 2 article 9 of the uniform commercial code, Act No. 174 of the 3 Public Acts of 1962, being sections 440.9101 to 440.9994 of the 4 Michigan Compiled Laws 1962 PA 174, MCL 440.9101 TO 440.9994. 5 (4) When IF there is not an outstanding obligation or com- 6 mitment to make advances, incur obligations, or otherwise give 7 value, secured or to be secured by a security interest in a 8 mobile MANUFACTURED home, the secured party shall, within 10 9 days after satisfaction of the obligation and, in any event 10 within 30 days, execute a termination statement in the form 11 prescribed by the department PRESCRIBES and mail or deliver the 12 termination statement to the owner or other person as the owner 13 may direct. The owner, other than a dealer RETAILER holding 14 the mobile MANUFACTURED home for resale, shall promptly cause 15 MAIL OR DELIVER the certificate, all termination statements, and 16 an application for certificate of title OWNERSHIP accompanied 17 by a fee of $1.00 to be mailed or delivered to the department. 18 , which THE DEPARTMENT shall issue a new certificate. 19 Sec. 30e. (1) If the interest of the owner in a mobile 20 MANUFACTURED home is terminated by the enforcement of a security 21 agreement, the transferee of the owner's interest shall promptly 22 mail or deliver to the department the last certificate of title 23 OWNERSHIP, if the transferee has possession of POSSESSES it, an 24 application for a new certificate in the form prescribed by the 25 department PRESCRIBES, and an affidavit made by or on behalf of 26 the holder of the security interest so enforced STATING that the 27 mobile MANUFACTURED home was repossessed, that the interest of 02555'01 41 1 the owner was lawfully terminated by enforcement of the security 2 agreement, and whether the holder has delivered the last certifi- 3 cate of title OWNERSHIP to the transferee of the owner's inter- 4 est, naming the transferee, or if not, the reason delivery was 5 not made and the then location of the certificate of title 6 OWNERSHIP so far as known to the holder. If the holder of the 7 security interest succeeds to the interest of the owner and holds 8 the mobile MANUFACTURED home for resale, the holder shall IS 9 not be required to secure a new certificate of title 10 OWNERSHIP but, upon transfer to another person, shall promptly 11 mail or deliver to the transferee or to the department the cer- 12 tificate, if in the holder's possession, the affidavit, and other 13 documents required to be sent to the department by the 14 transferee. 15 (2) If the interest of the owner in a mobile MANUFACTURED 16 home is terminated by sale pursuant to UNDER a levy of execu- 17 tion, attachment, or other process of a court, the transferee of 18 the owner's interest shall promptly mail or deliver to the 19 department the last certificate of title OWNERSHIP, if the 20 transferee has possession of POSSESSES it, an application for 21 a new certificate of title OWNERSHIP in the form prescribed 22 by the department PRESCRIBES, and an affidavit, upon a form 23 prescribed by the department PRESCRIBES, made by the officer of 24 the court who conducted the sale, setting forth the date of the 25 sale, and the name of the purchaser, and whether the officer 26 has delivered the certificate of title OWNERSHIP to the 27 purchaser. and if not, IF THE CERTIFICATE OF OWNERSHIP WAS NOT 02555'01 42 1 DELIVERED TO THE PURCHASER, THE OFFICER SHALL STATE IN THE 2 AFFIDAVIT the reason delivery was not made and the then loca- 3 tion of the certificate of title OWNERSHIP so far as known to 4 the officer. 5 (3) A person holding a certificate of title where 6 OWNERSHIP IN WHICH the interest of the owner named in the certif- 7 icate has been terminated in the manner provided by subsection 8 (1) or (2) shall mail or deliver the certificate to the depart- 9 ment upon its request. The delivery of the certificate pursuant 10 to AT the request of the department does not affect the rights 11 of the person surrendering the certificate, and the action of the 12 department in issuing a new certificate of title OWNERSHIP is 13 not conclusive upon any ON THE rights of an owner or holder of 14 a security interest named in the old certificate. 15 (4) The department, upon UPON receipt of an application 16 for a new certificate of title OWNERSHIP by a transferee in the 17 manner provided by subsection (1) or (2), with proof of the 18 transfer, the required fee, and any other documents required by 19 law, THE DEPARTMENT shall issue a new certificate of title 20 OWNERSHIP in the name of the transferee as owner, setting forth 21 all security interests noted on the last certificate of title 22 OWNERSHIP as having priority over the security agreement so 23 enforced and shall mail or deliver the new certificate to the 24 owner. If the outstanding certificate of title OWNERSHIP is 25 not delivered, the department shall make demand for the outstand- 26 ing certificate of title OWNERSHIP from the holder. 02555'01 43 1 Sec. 30f. The department shall retain and appropriately 2 file every surrendered certificate of title OWNERSHIP. The 3 file shall be maintained so as to permit IN A MANNER THAT 4 PERMITS the tracing of title OWNERSHIP of the mobile 5 MANUFACTURED home designated in a surrendered certificate for a 6 period of 10 years. 7 Sec. 30g. (1) The department may cancel or refuse to issue 8 a certificate of title OWNERSHIP UNDER 1 OR MORE OF THE FOLLOW- 9 ING CIRCUMSTANCES: 10 (a) If the department is satisfied that the certificate of 11 title OWNERSHIP was fraudulently or erroneously issued. 12 (b) If the department determines that the holder of the cer- 13 tificate has made or is making an unlawful use of the 14 certificate. 15 (c) If the department determines that the required fee has 16 not been paid and the fee is not paid upon reasonable notice or 17 demand. 18 (d) If the department is authorized under any other 19 ANOTHER provision of this act. 20 (e) Upon receipt of IF THE DEPARTMENT RECEIVES notifica- 21 tion from another state or foreign country that a certificate of 22 title OWNERSHIP issued by the department has been surrendered 23 by the owner in conformity with the laws of the other state or 24 foreign country. 25 (f) If it is shown by satisfactory evidence that delivery of 26 a mobile MANUFACTURED home in the possession of a dealer was 27 not made to the applicant to whom the certificate was issued. 02555'01 44 1 (2) Before a cancellation under subsection (1)(a), (b), or 2 (d) is made, the person affected shall be given notice and an 3 opportunity to be heard. 4 Sec. 30h. The commission in consultation with the secretary 5 of state shall promulgate rules. , which THE RULES PROMULGATED 6 BY THE COMMISSION shall further define and distinguish between 7 the term mobile MANUFACTURED home as used in this act and the 8 term trailer coach as used in the Michigan vehicle code, Act 9 No. 300 of the Public Acts of 1949, being sections 257.1 to 10 257.923 of the Michigan Compiled Laws 1949 PA 300, MCL 257.1 TO 11 257.923. 12 Sec. 31. A person who offers, sells, or purchases a 13 mobile MANUFACTURED home or equipment or a mobile 14 MANUFACTURED home site in violation of this act or the code may 15 have an action brought against him or her to rescind the transac- 16 tion and recover damages. 17 Sec. 38. (1) The department may issue an order to show 18 cause why an order imposing sanctions or penalties allowed under 19 this act should not be issued by the commission if the department 20 finds BOTH that the order is in the public interest , and any 21 1 OR MORE of the following: 22 (a) An application filed pertaining to a license, a disclo- 23 sure statement, or a related document filed with the department 24 in connection with a mobile MANUFACTURED home license , is 25 incomplete in any A material respect or contains a statement 26 which THAT is false or misleading, in the light of the 27 circumstances under which it is made. 02555'01 45 1 (b) A provision of this act, or a rule, order, or condition 2 lawfully imposed under this act, was not complied with or was 3 violated in connection with the offering by the person filing the 4 document; the developer, dealer RETAILER, or operator; a part- 5 ner, officer, director, proprietor, or manager of the developer, 6 dealer RETAILER, or operator; or a person directly or indi- 7 rectly controlling, or directly controlled by, the developer, 8 dealer RETAILER, or operator. 9 (c) The project worked or tended to work a fraud or decep- 10 tion or would so operate, or the project would create an unrea- 11 sonable risk to A prospective tenants RESIDENT, as defined by 12 rules promulgated by the commission. 13 (d) The developer, dealer RETAILER, or operator; a part- 14 ner, officer, director, proprietor, or manager of the developer, 15 dealer RETAILER, or operator; a person directly or indirectly 16 controlling or directly controlled by the developer, dealer 17 RETAILER, or operator; or a person identified in the application 18 for a license , or IN a disclosure statement , was within the 19 past 10 years IMMEDIATELY BEFORE THE DATE OF THE ORDER convicted 20 of an offense under this act, or is the subject of an adminis- 21 trative order issued under this act, or had a civil judgment 22 entered against him or her as a result of a violation of this act 23 or a rule promulgated or order issued pursuant to UNDER this 24 act, and the department determines that the involvement of the 25 person in the sale or development of the project creates an 26 unreasonable risk to A prospective tenants RESIDENT or mobile 27 MANUFACTURED home purchasers PURCHASER. 02555'01 46 1 (e) The developer, dealer RETAILER, or operator; a 2 partner, officer, director, proprietor, or manager of the devel- 3 oper; a person directly or indirectly controlling or directly 4 controlled by the developer, dealer RETAILER, or operator; or a 5 person identified in the application for a license , or IN a 6 disclosure statement , was convicted of a violation or WAS the 7 subject of an administrative order or civil judgment as a result 8 of a violation of a statute regulating the offering of securities 9 or franchises or licensing or regulating builders, real estate 10 brokers, or real estate salespersons, or of violation of the land 11 sales act, Act No. 286 of the Public Acts of 1972, being sec- 12 tions 565.801 to 565.835 of the Michigan Compiled Laws 1972 PA 13 286, MCL 565.801 TO 565.835, or a rule promulgated or an order 14 issued under that act. 15 (f) The applicant's method of business, construction, devel- 16 opment, or sales includes or would include activities which 17 THAT are illegal. 18 (g) The applicant failed to pay the proper fee. 19 (h) The applicant failed to comply with the state warranty 20 laws. 21 (2) When IF it appears to the department that a person 22 engaged in an act or practice constituting a violation of this 23 act or a rule promulgated or order issued under this act, the 24 department may issue a notice to show cause why a cease and 25 desist order should not be issued. 26 (3) After 10 days' notice and opportunity for hearing, the 27 department may stop construction as to part or all of a project 02555'01 47 1 if continuing the building will cause irreparable harm to 2 residents and prospective residents of the project. 3 Sec. 43. (1) If, after notice and a hearing as provided in 4 the administrative procedures act of 1969, Act No. 306 of the 5 Public Acts of 1969, being sections 24.201 to 24.328 of the 6 Michigan Compiled Laws 1969 PA 306, MCL 24.201 TO 24.328, a 7 person is determined to have violated this act, the commission 8 may impose 1 or more of the following penalties: 9 (a) Censure. 10 (b) Probation. 11 (c) Placement of a limitation on a license. 12 (d) Suspension of a license. The commission may request the 13 appointment of a receiver when taking action under this 14 subdivision. 15 (e) Revocation of a license. The commission may request the 16 appointment of a receiver when taking action under this 17 subdivision. 18 (f) Denial of a license. 19 (g) A civil fine of not more than $10,000.00. 20 (h) A requirement that restitution be made. 21 (2) A fine collected under this section shall be deposited 22 with the state treasurer and credited to the mobile home 23 MANUFACTURED HOUSING commission fund. 24 (3) This section does not prohibit actions AN ACTION being 25 taken under other sections ANOTHER SECTION of this act. 02555'01 48 1 (4) The pursuit in court of the lawful rights of a licensee 2 does not constitute a violation of this act, regardless of the 3 outcome of the court action. 4 Enacting section 1. Section 49 of the mobile home commis- 5 sion act, 1987 PA 96, MCL 125.2349, is repealed. 02555'01 Final page. LTB