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 amobile homeMANUFACTURED HOUSING com- 3 mission; to prescribe its powers and duties and those of local 4 governments; to provide for amobile homeMANUFACTURED HOUSING 5 code and the licensure, regulation, construction, operation, and 6 management ofmobileMANUFACTURED homeparksCOMMUNITIES, the 7 licensure and regulation ofretail sales dealersRETAILERS, 8 warranties ofmobileMANUFACTURED homes, and INSTALLATION serv- 9 ice practices ofdealersINSTALLERS AND SERVICERS; to provide 10 for thetitlingOWNERSHIP ofmobileMANUFACTURED 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 repealcertainacts and parts of acts. 15 Sec. 1. This act shall be known and may be cited as "the 16mobile homeMANUFACTURED 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 Acts20of 1978, being section 333.12501 of the Michigan Compiled Laws21 1978 PA 368, MCL 333.12501. 22 (b) "Code" means all or a part of themobile home23 MANUFACTURED HOUSING code promulgatedpursuant toUNDER section 24 5. 25 (c) "Commission" means themobile home codeMANUFACTURED 26 HOUSING commission CREATED UNDER SECTION 3. 02555'01 3 1 (d) "Department" means the department ofcommerceCONSUMER 2 AND INDUSTRY SERVICES. 3 (e) "Installer andrepairerSERVICER" means a person, 4 including amobileMANUFACTURED homedealerRETAILER, who for 5 compensation installs orrepairs mobileSERVICES 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,whichTHAT 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 homedealerRETAILER" means a 20 person other than a manufacturer engaged in the business of 21 buyingmobileMANUFACTURED homes for resale, exchange, lease, 22 or rent or offeringmobileMANUFACTURED homes for sale, lease, 23 rent, or exchange to customers. 24 (i)"Mobile"MANUFACTURED homeparkCOMMUNITY" means a 25 parcel or tract of land under the control of a person upon which 26 3 or moremobileMANUFACTURED homes are located on a continual, 27 nonrecreational basis andwhichTHAT is offered to the public 02555'01 4 1 for that purpose regardless of whether a charge is made 2thereforFOR PLACING A MANUFACTURED HOME ON THE LAND, together 3 withanyA building, structure, enclosure, street, equipment, 4 or facility used or intended for use incident to the occupancy of 5 amobileMANUFACTURED home. 6 (j) "Municipality" means a city, village, or township. 7 (k) "Person" means an individual, partnership, association, 8 trust, or corporation, oranyother 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) "SeasonalmobileMANUFACTURED homeparkCOMMUNITY" 15 means a parcel or tract of land under the control of a person 16 upon which 3 or moremobileMANUFACTURED homes are located on a 17 continual or temporary basis but occupied on a temporary basis 18 only,andwhichTHAT is offered to the public for that pur- 19 pose regardless of whether a charge is madethereforFOR PLAC- 20 ING A MANUFACTURED HOME ON THE LAND, together withanyA build- 21 ing, enclosure, street, equipment, or facility used or intended 22 for use incident to the occupancy of amobileMANUFACTURED 23 home. SeasonalmobileMANUFACTURED home park does not include 24 a campground licensedpursuant toUNDER sections 12501 to 12516 25 of the public health code,Act No. 368 of the Public Acts of261978, being sections 333.12501 to 333.12516 of the Michigan27Compiled Laws1978 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 of41962, being sections 440.1101 to 440.11102 of the Michigan5Compiled Laws1962 PA 174, MCL 440.1101 TO 440.11102. 6 Sec. 3. (1) Themobile homeMANUFACTURED 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 ofmobileMANUFACTURED home residents. 15 (b) A representative of financial institutions. 16 (c) Two operators of a licensedmobileMANUFACTURED home 17park havingCOMMUNITY THAT HAS 100 or more sites and 1 operator 18 of a licensedmobileMANUFACTURED homeparkCOMMUNITY 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 licensedmobileMANUFACTURED homedealer23 RETAILER. 24 (g) One resident of a licensedmobileMANUFACTURED home 25park havingCOMMUNITY THAT HAS 100 or more sites and 1 resident 26 of a licensedmobileMANUFACTURED homepark havingCOMMUNITY 27 THAT HAS less than 100 sites. 02555'01 6 1 (h) A manufacturer ofmobileMANUFACTURED 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 ofmobileMANUFACTURED 6 homes, a retail seller ofmobileMANUFACTURED homes, a licensed 7mobileMANUFACTURED homeparkCOMMUNITY, or a supplier of 8 ancillary products or services to themobileMANUFACTURED home 9 industry. 10 (5) The term of each membershall be forIS 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-chairpersonshall2beARE 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., whichTHE 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 establishingESTABLISH a uni- 13 form policy relating to all phases ofmobileMANUFACTURED home 14 businesses,mobileMANUFACTURED homeparksCOMMUNITIES, and 15 seasonalmobileMANUFACTURED homeparksCOMMUNITIES. 16 (c) Determine the sufficiency of localmobileMANUFACTURED 17 home ordinanceswhichTHAT are designed to provide local gov- 18 ernments with superintending control overmobile homes19 MANUFACTURED HOME businesses,mobileMANUFACTURED homeparks20 COMMUNITIES, or seasonalmobile homes parksMANUFACTURED HOME 21 COMMUNITIES. 22 (d) Conduct public hearings relating to the powers pre- 23 scribed in this subsection. 24 (2) The director ofcommerceTHE 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 thecommission2 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 commissionshallDOES notact for the purpose of10regulating mobileREGULATE MANUFACTURED homes that are not 11 located within amobileMANUFACTURED homeparkCOMMUNITY or a 12 seasonalmobileMANUFACTURED homeparkCOMMUNITY, except as 13 relates to the business, sales, and service practices ofmobile14 MANUFACTURED homedealersRETAILERS and the business AND 15 INSTALLATION practices ofmobileMANUFACTURED home installers 16 andrepairersSERVICERS. 17 Sec. 5. (1) The commission shall promulgate themobile18homeMANUFACTURED 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 ofmobileMANUFACTURED homeparks22 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 ofmobile25 MANUFACTURED homeparkCOMMUNITY residents., exceptTHE 26 RULES DO NOT GOVERN water supply, sewage collection and 27 treatment, and drainage facilitieswhich are regulated byTHAT 02555'01 9 1 the department ofpublic healthENVIRONMENTAL QUALITY 2 REGULATES. 3 (b) The business, sales, and service practices ofmobile4 MANUFACTURED homedealersRETAILERS. 5 (c) The business practices ofmobileMANUFACTURED home 6 installers andrepairersSERVICERS. 7 (d) The licensure andregulationsREGULATION ofmobile8 MANUFACTURED home installers andrepairersSERVICERS. 9 (e) The setup and installation ofmobileMANUFACTURED 10 homes insidemobileMANUFACTURED homeparksCOMMUNITIES or 11 seasonalmobileMANUFACTURED homeparksCOMMUNITIES. 12 (f) The regulation of the responsibilities, under the 13mobileMANUFACTURED home warranty, of themobileMANUFACTURED 14 home components manufacturer, themobileMANUFACTURED home 15 assembler or manufacturer, and themobileMANUFACTURED home 16dealerRETAILER, 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)ConsumerCUSTOMER deposits, except utility deposits 21 fromconsumersCUSTOMERS 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 newmobileMANUFACTURED home or amobile25 MANUFACTURED homedealerRETAILER for aused mobilePREOWNED 26 MANUFACTURED home. 02555'01 10 1 (iii) Disclosure and delivery of manufacturer's warranties. 2 (iv)Used mobilePREOWNED MANUFACTURED homes. Amobile3 MANUFACTURED homedealerRETAILER shall provide A detailed 4 listing of its service records forused mobilePREOWNED 5 MANUFACTURED homeswhichTHAT are being sold by thedealer6 RETAILER andof whichTHAT thedealerRETAILER has knowledge 7 OF. 8 (h) Applications for and issuance of certificates oftitle9 OWNERSHIP formobileMANUFACTURED 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 seasonalmobileMANUFACTURED 13 homeparks, includingCOMMUNITIES. 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 seasonalmobileMANUFACTURED homepark17 COMMUNITY residents., exceptTHE RULES SHALL NOT GOVERN water 18 supply, sewage collection and treatment, and drainage facilities 19, which shall be regulated byTHAT the department ofpublic20healthENVIRONMENTAL QUALITY REGULATES. 21 (3)TheIN rules promulgated for seasonalmobile22 MANUFACTURED homeparksCOMMUNITIES, THE DEPARTMENT may impose 23 a less stringent standard than the rules promulgated formobile24 MANUFACTURED homeparksCOMMUNITIES. 25 Sec. 6. (1) The department ofpublic healthENVIRONMENTAL 26 QUALITY shall promulgate rules formobileMANUFACTURED home 27parksCOMMUNITIES and seasonalmobileMANUFACTURED home 02555'01 11 1parksCOMMUNITIES 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 governmentwhichTHAT proposes a 18 standard related tomobileMANUFACTURED homeparks19 COMMUNITIES or seasonalmobileMANUFACTURED homeparks20 COMMUNITIES, or related tomobileMANUFACTURED homes located 21 within amobileMANUFACTURED homeparkCOMMUNITY or a sea- 22 sonalmobileMANUFACTURED homeparkCOMMUNITY, 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 ofmobile25 MANUFACTURED homedealersRETAILERS, or the business AND 26 INSTALLATION PRACTICES ofmobileMANUFACTURED home installers 27 andrepairersSERVICERS, 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 higherstandardsSTANDARD 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 standardshall be consideredIS 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 tomobile15 MANUFACTURED homes not located within amobileMANUFACTURED 16 homeparkCOMMUNITY or seasonalmobileMANUFACTURED home 17parkCOMMUNITY need not be filed with themobile home18 MANUFACTURED HOUSING commission, unless the standard relates to 19 the business, sales, and service practices ofmobile20 MANUFACTURED homedealersRETAILERS, or the business AND 21 INSTALLATION PRACTICES ofmobileMANUFACTURED home installers 22 andrepairersSERVICERS. 23 (3) A local government ordinance shall not be designed as 24 exclusionary tomobileMANUFACTURED homes generally whether the 25mobileMANUFACTURED homes are located inside or outside of 26mobileMANUFACTURED homeparksCOMMUNITIES or seasonal 27mobileMANUFACTURED homeparksCOMMUNITIES. 02555'01 13 1 (4) A local government ordinance shall not contain a 2 standard for the setup or installation ofmobileMANUFACTURED 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) ThemobileMANUFACTURED home setup and installation 8 standards promulgated by the federal department of housing and 9 urban developmentpursuant toUNDER 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 ofanysetup 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 housingshallapply. 17 (6) A local government ordinance shall not contain roof con- 18 figuration standards or special use zoning requirements that 19 apply only to, orexcludesEXCLUDE,mobileMANUFACTURED 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 developmentpursuant toUNDER 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 tomobileMANUFACTURED homes located outside of 2mobileMANUFACTURED homeparksCOMMUNITIES or seasonal 3mobileMANUFACTURED homeparks whichCOMMUNITIES THAT ensure 4 thatmobileMANUFACTURED 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 amobile8 MANUFACTURED homeparkCOMMUNITY or a seasonalmobile9 MANUFACTURED homeparkCOMMUNITY 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 proposedmobileMANUFACTURED homeparkCOMMUNITY or seasonal 18mobileMANUFACTURED homeparkCOMMUNITY 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 commissionershallDO not have 4 authority as to interior streets and drainage in themobile5 MANUFACTURED homeparkCOMMUNITY or seasonalmobile6 MANUFACTURED homeparkCOMMUNITY, 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 ofpublic health10 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 planshall beIS 16 considered approved. 17 (6) Coordination of approvals by state and local governments 18 shall be provided by the director ofpublic health19 ENVIRONMENTAL QUALITY beforeitTHAT DEPARTMENT may grant con- 20 struction approval. 21 (7) The developer shall submit the preliminary approval with 22 the final plans to the department ofpublic health23 ENVIRONMENTAL QUALITY for review before the department of 24commerceCONSUMER 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 themobileMANUFACTURED homepark8 COMMUNITY or seasonalmobileMANUFACTURED homepark9 COMMUNITY. 10 Sec. 13. (1) A person shall not construct amobile11 MANUFACTURED homeparkCOMMUNITY or seasonalmobile12 MANUFACTURED homeparkCOMMUNITY without obtaining a permit 13 issued by the department. 14 (2) Construction may beginupon the granting ofWHEN THE 15 DEPARTMENT GRANTS a permit to construct.by the department.16 Sec. 14. Upon completion of the construction ofthe17mobileA MANUFACTURED homeparkCOMMUNITY or seasonalmobile18 MANUFACTURED homeparkCOMMUNITY, the owner or operator of the 19parkCOMMUNITY and a registered professional engineer or archi- 20 tect shall file with the department an affidavit certifying that 21 themobileMANUFACTURED homeparkCOMMUNITY or seasonal 22mobileMANUFACTURED homeparkCOMMUNITY, lot, and work were 23 completed in accordance with the approved specifications and 24 plans. 25 Sec. 16. (1) A person shall not operate amobile26 MANUFACTURED homeparkCOMMUNITY or seasonalmobile27 MANUFACTURED homeparkCOMMUNITY without a license. 02555'01 17 1 (2) Upon completion, review, and approval of certifications, 2 the department shall grant a license to operate amobile3 MANUFACTURED homeparkCOMMUNITY or seasonalmobile4 MANUFACTURED homeparkCOMMUNITY. 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 amobileMANUFACTURED homeparkCOMMUNITY or sea- 11 sonalmobileMANUFACTURED homeparkCOMMUNITY unless notified 12 that the application for renewal is not approved. 13 (5) A campgroundwhichTHAT is currently licensed under 14 sections 12501 to 12516 of the public health code,Act No. 36815of the Public Acts of 1978, being sections 333.12501 to 333.1251616of the Michigan Compiled Laws1978 PA 368, MCL 333.12501 TO 17 333.12516, THAT was previously licensed under the licensing pro- 18 visions ofAct No. 243 of the Public Acts of 1959, being sec-19tions 125.1035 to 125.1043 of the Michigan Compiled Laws1959 PA 20 243, MCL 125.1035 TO 125.1043, as a seasonal trailer park, and 21whichTHAT currently meets the seasonal trailer park construc- 22 tion standards underAct No. 243 of the Public Acts of 195923 1959 PA 243, MCL 125.1035 TO 125.1043, may apply for and shall be 24 licensed as a seasonalmobileMANUFACTURED homepark25 COMMUNITY under this act if the campground meets all other 26 requirements for licensure under this act as a seasonalmobile27 MANUFACTURED homeparkCOMMUNITY. 02555'01 18 1 Sec. 16a.Mobile homesA MANUFACTURED HOME located in a 2 seasonalmobileMANUFACTURED homeparkCOMMUNITY 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 ofpublic health7 ENVIRONMENTAL QUALITY or its authorized representative shall con- 8 duct an annual physical inspection ofmobileMANUFACTURED home 9parksCOMMUNITIES and seasonalmobileMANUFACTURED home 10parksCOMMUNITIES in accordance with standards established by 11 the department ofpublic healthENVIRONMENTAL QUALITY. If the 12mobileMANUFACTURED homeparkCOMMUNITY or seasonalmobile13 MANUFACTURED homeparkCOMMUNITY is approved, the department of 14public healthENVIRONMENTAL QUALITY shall issue a certification 15 of compliance to the department ofcommerceCONSUMER AND INDUS- 16 TRY SERVICES that theparkCOMMUNITY is licensable. 17 (2) Except for purposes of issuing a license or renewing a 18 licensepursuant toUNDER this act, a local governmentmay19 SHALL not make an inspection unless it has reason to believe that 20 this act, the code, or rules promulgatedpursuant toUNDER this 21 act were violated. 22 Sec. 18. (1) A variance in the design and construction of a 23mobileMANUFACTURED homeparkCOMMUNITY or seasonalmobile24 MANUFACTURED homeparkCOMMUNITY may be granted upon notice of 25 the request to the local government and the department ofpublic26healthENVIRONMENTAL 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 ofcommerceCONSUMER AND INDUSTRY 2 SERVICES.If the local government grants a variance which would3permit activities violative of the minimum standards of the code,4the local government shall file with the department a copy of the5variance order and an explanation of the reason for the granting6of the order. The department may approve or disapprove the vari-7ance or revoke the variance upon notice and hearing.8 (2) After a public hearing, thedepartmentCOMMISSION 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) ThedepartmentCOMMISSION 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) AmobileMANUFACTURED homedealerRETAILER 2 shall not engage in the retail sale of amobileMANUFACTURED 3 home without a license. 4 (2) AmobileMANUFACTURED homedealer, mobileRETAILER, 5 OR A MANUFACTURED home installer,orrepairerSERVICER, 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 commissionpursuant toUNDER sec- 9 tion 35. 10 (3) An initial or renewal license under this act shall be 11 issued for not more than 1 year. Licensesshallexpire on 12 October 1. 13 (4) The annual license fee for amobileMANUFACTURED home 14dealerRETAILER is $150.00 orany otherA lesser amount 15 establishedpursuant toUNDER section 9(5). 16 (5) The annual license fee for amobileMANUFACTURED home 17 installer or repairer is $50.00 orany otherA lesser amount 18 establishedpursuant toUNDER section 9(5). 19 (6) A licensedmobileMANUFACTURED homedealer, mobile20 RETAILER, OR A MANUFACTURED home installer,orrepairer21 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 1mobileMANUFACTURED homes unless notified that the application 2 for renewal is not approved. 3 Sec. 22. The commission may promulgate rules to require a 4 licensedmobileMANUFACTURED homedealerRETAILER 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 licensedmobileMANUFACTURED homedealer10 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 inanyA material respect, the licensee 16 promptly shall file a correcting amendment. 17 Sec. 24. AmobileMANUFACTURED homedealerRETAILER 18 shall not DO ANY OF THE FOLLOWING: 19 (a) Advertise or represent amobileMANUFACTURED home as 20 other than calendar or model year. 21 (b) MisapplyconsumerCUSTOMER deposits on amobile22 MANUFACTURED home or amobileMANUFACTURED homepark23 COMMUNITY. 24 (c) Fail to place deposits, down payments, or similar pay- 25 ments for the purchase or right to purchase amobile26 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 thedealer shall postRETAILER 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 departmentanydirect 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 themobileMANUFACTURED homedealer,10mobileRETAILER, THE MANUFACTURED home installer AND SERVICER, 11 and themobileMANUFACTURED homeparkCOMMUNITY or seasonal 12mobileMANUFACTURED homeparkCOMMUNITY owner for installa- 13 tion and setup of amobileMANUFACTURED home. 14 (2) A person licensed underany1 OR MORE of the following 15 actsshallIS notberequired to be licensed as amobile16 MANUFACTURED home installer andrepairerSERVICER in order to 17 perform work onmobileMANUFACTURED homes for which the person 18 is licensed, unless the work performed also includes the setup, 19 installation, or generalrepairSERVICING ofmobile20 MANUFACTURED homes: 21 (a) The electrical administrative act,Act No. 217 of the22Public Acts of 1956, being sections 338.881 to 338.892 of the23Michigan Compiled Laws1956 PA 217, MCL 338.881 TO 338.892. 24 (b)Act No. 266 of the Public Acts of 1929, being sections25338.901 to 338.917 of the Michigan Compiled Laws1929 PA 266, 26 MCL 338.901 TO 338.917. 02555'01 23 1 (c) The Forbes mechanical contractors act,Act No. 192 of2the Public Acts of 1984, being sections 338.971 to 338.988 of the3Michigan Compiled Laws1984 PA 192, MCL 338.971 TO 338.988. 4 (3) The electrical administrative act,Act No. 217 of the5Public Acts of 1956, being sections 338.881 to 338.892 of the6Michigan Compiled Laws, Act No. 266 of the Public Acts of 1929,7being sections 338.901 to 338.917 of the Michigan Compiled Laws8 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. 19210of the Public Acts of 1984, being sections 338.971 to 338.988 of11the Michigan Compiled Laws, shall1984 PA 192, MCL 338.971 TO 12 338.988, DO not apply to the setup or installation of amobile13 MANUFACTURED home and the following connections, or replacement 14 orrepairSERVICING of the following connections, by a licensed 15mobileMANUFACTURED home installer andrepairerSERVICER: 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, inIN connection with 27 the offer, sale, purchase, or rental of amobileMANUFACTURED 02555'01 24 1 home,mobileMANUFACTURED home site, or RELATED equipment, 2relating theretoA 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 amobileMANUFACTURED 12 home,mobileMANUFACTURED home site, or RELATED equipment 13relating thereto, whichTHAT misrepresents the facts concerning 14 themobileMANUFACTURED home,mobileMANUFACTURED home site, 15 or RELATED equipment.relating thereto.16 (3) A person with knowledge that an advertisement, pamphlet, 17 prospectus, or letter concerning amobileMANUFACTURED home, 18mobileMANUFACTURED home site, or RELATED equipmentrelating19theretocontains 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 amobile22 MANUFACTURED home,mobileMANUFACTURED home site, or RELATED 23 equipment.relating thereto.24 (4) A person shall not willfully makeanyA material mis- 25 representation in the sale of amobileMANUFACTURED home, 26mobileMANUFACTURED home site, or RELATED equipment.relating27thereto.02555'01 25 1 Sec. 28. (1) An owner or operator of amobileMANUFACTURED 2 homeparkCOMMUNITY or seasonalmobileMANUFACTURED home 3parkCOMMUNITY 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 9mobileMANUFACTURED home from another person as a condition of 10 entrance to, or lease or rental of, amobileMANUFACTURED home 11parkCOMMUNITY or seasonalmobileMANUFACTURED homepark12 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 aparkCOMMUNITY or lease. 19 (ii) Selling amobileMANUFACTURED home through thepark20 COMMUNITY owner or operator,or his or her agent or designee 21 upon leaving amobileMANUFACTURED homeparkCOMMUNITY or 22 seasonalmobileMANUFACTURED homeparkCOMMUNITY. 23 (iii) Renting space in amobileMANUFACTURED homepark24 COMMUNITY or seasonalmobileMANUFACTURED homepark25 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 2by a resident or tenantbeing 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 amobileMANUFACTURED home or site 9 in amobileMANUFACTURED homeparkCOMMUNITY or seasonal 10mobileMANUFACTURED homeparkCOMMUNITY without offering a 11 written lease. 12 (h) Subject to section 28a, prohibiting a resident from 13 selling his or hermobileMANUFACTURED home on-site for a price 14 determined by that resident, if the purchaser qualifies for ten- 15 ancy and themobileMANUFACTURED home meets the conditions of 16 writtenparkCOMMUNITY rules or regulations. This subdivision 17 does not apply to seasonalmobileMANUFACTURED homeparks18 COMMUNITIES. 19 (i) Subject to reasonablemobileMANUFACTURED homepark20 COMMUNITY or seasonalmobileMANUFACTURED homeparkCOMMUNITY 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 amobileMANUFACTURED home 24 within theparkCOMMUNITY unless themobileMANUFACTURED home 25parkCOMMUNITY or seasonalmobileMANUFACTURED homepark26 COMMUNITY providesparkresidents, 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) AtenantRESIDENT of amobileMANUFACTURED home 7parkCOMMUNITY or seasonalmobileMANUFACTURED homepark8 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 amobileMANUFACTURED homeparkCOMMUNITY or seasonal 12mobileMANUFACTURED homeparkCOMMUNITY is engaged in conduct 13 that violates existing water utility tariffs or qualifies the 14 owner of amobileMANUFACTURED homeparkCOMMUNITY or sea- 15 sonalmobileMANUFACTURED homeparkCOMMUNITY 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)MobileMANUFACTURED homeparkCOMMUNITY 20 rules or regulations may include provisions governing the physi- 21 cal condition ofmobileMANUFACTURED homes and the aesthetic 22 characteristics ofmobileMANUFACTURED homes in relation to the 23mobileMANUFACTURED homeparkCOMMUNITY in which they are 24 located, subject to all of the following: 25 (a) The age or size of amobileMANUFACTURED home shall 26 not be used as the sole basis for refusing to allow an on-site, 27in-parkIN-COMMUNITY sale or for refusing to allow themobile02555'01 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 themobileMANUFACTURED homeparkCOMMUNITY owner or operator 6 for violation of this subdivision is on the resident. 7 (b) The standards incorporated in the writtenpark8 COMMUNITY rules or regulations governing the physical condition 9 and aesthetic characteristics ofmobileMANUFACTURED homes in 10 themobileMANUFACTURED homepark shallCOMMUNITY apply 11 equally to all residents. 12 (c) AmobileMANUFACTURED home sold on-site shall conform 13 withAct No. 133 of the Public Acts of 1974, being sections14125.771 to 125.774 of the Michigan Compiled Laws1974 PA 133, 15 MCL 125.771 TO 125.774. 16 (d)AnyA charge connected to the on-site,in-park17 IN-COMMUNITY sale of amobileMANUFACTURED home, other than the 18 inspection fee permitted under subdivision (e) and the commission 19 or fee charged by amobileMANUFACTURED homedealerRETAILER 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) AparkCOMMUNITY owner or operator may charge a rea- 23 sonable fee to inspect themobileMANUFACTURED home before 24 sale. The charge shall not be more than $30.00, or the amount 25 charged for A building permitinspectionsINSPECTION by the 26 municipality in which themobileMANUFACTURED home is located, 27 whichever is higher. 02555'01 29 1 (f) The standards governing the physical condition of 2mobileMANUFACTURED homes and the aesthetic characteristics of 3mobileMANUFACTURED homes in themobileMANUFACTURED home 4parkCOMMUNITY, as incorporated in the writtenparkCOMMUNITY 5 rules, shall not be designed to defeat the intent of this 6 section. 7 (2) Subsection (1)(f)shallDOES not apply if themobile8 MANUFACTURED homeparkCOMMUNITY 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 affectedmobileMANUFACTURED homepark12 COMMUNITY residents. A change in amobileMANUFACTURED home 13park'sCOMMUNITY'S method of doing business includes, but is 14 not limited to,any1 OR MORE of the following: 15 (a) Conversion to amobileMANUFACTURED homepark16 COMMUNITY condominiumpursuant toUNDER the condominium act, 17Act No. 59 of the Public Acts of 1978, being sections 559.101 to18559.275 of the Michigan Compiled Laws1978 PA 59, MCL 559.101 TO 19 559.276. 20 (b) Conversion to total rental of bothmobileMANUFACTURED 21 home site andpark-owned mobileCOMMUNITY-OWNED MANUFACTURED 22 homes. 23 (c) Changes in use of the land on which themobile24 MANUFACTURED homeparkCOMMUNITY is located. 25 (3) Notwithstanding subsection (1) or (2), amobile26 MANUFACTURED homeparkCOMMUNITY may require amobile27 MANUFACTURED home to be moved to a comparable site within the 02555'01 30 1mobileMANUFACTURED homeparkCOMMUNITY, at the expense of 2 themobileMANUFACTURED homeparkCOMMUNITY. 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 sections6600.5771 to 600.5785 of the Michigan Compiled Laws1961 PA 236, 7 MCL 600.5771 TO 600.5785, the resident of amobileMANUFACTURED 8 homeparkCOMMUNITY sells his or hermobileMANUFACTURED home 9 to the owner or operator of themobileMANUFACTURED homepark10 COMMUNITY, or toanyAN entity in which the owner or operator 11 hasanyAN interest, the residentshall haveHAS the right to 12 have themobileMANUFACTURED home's value appraised and, if so 13 appraised, the sale price of themobileMANUFACTURED home shall 14 not be less than the appraised value. 15 (5) Except as provided in subsection (1)(a), amobile16 MANUFACTURED homeparkCOMMUNITY owner or operator, or both, 17 has the burden of going forward to show compliance with subsec- 18 tion (1). 19 Sec. 28b. AmobileMANUFACTURED homeparkCOMMUNITY 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 themobile23 MANUFACTURED homeparkCOMMUNITY: 24 (a) Prohibitsthose childrenA CHILD whowereWAS previ- 25 ously approved under priorparkCOMMUNITY rules from residing 26 in themobileMANUFACTURED homeparkCOMMUNITY. A rule 27 prohibitingchildrenA CHILD, or AN additionalchildren02555'01 31 1 CHILD, shall not be enforced againstpersonsA PERSON whowere2residentsWAS A RESIDENT of themobileMANUFACTURED home 3parkCOMMUNITY at the time the rule was adopted until after 4 1 year's notice tothose personsTHAT PERSON. 5 (b) Prohibits a resident from keepingthose pets which6wereA PET THAT WAS previously approved under priorpark7 COMMUNITY rules, except A dangerousanimalsANIMAL. 8 Sec. 28c. (1) A lease or rental agreement or rules or regu- 9 lations that are adoptedpursuant toUNDER a lease or rental 10 agreement may include a provision that requires AWARDING liqui- 11 dated damagesto be awardedto the prevailing party in a con- 12 tested action to terminate a tenancy in amobileMANUFACTURED 13 homeparkCOMMUNITY for just cause under section 5775 of the 14 revised judicature act of 1961,Act No. 236 of the Public Acts15of 1961, being section 600.5775 of the Michigan Compiled Laws16 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 amobile26 MANUFACTURED homeparkCOMMUNITY or seasonalmobile02555'01 32 1 MANUFACTURED homeparkCOMMUNITY for the use and benefit of the 2park'sCOMMUNITY'S tenants. 3 Sec. 30. (1) After December 31, 1978, everymobile4 MANUFACTURED home located in this stateshall beIS subject to 5 the certificate oftitleOWNERSHIP provisions of this act, 6 except foranyA newmobileMANUFACTURED home owned by a man- 7 ufacturer or licensedmobileMANUFACTURED homedealer8 RETAILER and held for sale. 9 (2) After December 31, 1978, a certificate of title for a 10mobileMANUFACTURED home issued by the secretary of state 11 before January 1, 1979,pursuant to Act No. 300 of the Public12Acts of 1949, being sections 257.1 to 257.923 of the Michigan13Compiled LawsUNDER THE MICHIGAN VEHICLE CODE, 1949 PA 300, MCL 14 257.1 TO 257.923,shall beIS consideredto bea certificate 15 oftitleOWNERSHIP issued by the department under this act and 16shall beIS subject to all of the provisions of this act 17respectingREGARDING certificates oftitleOWNERSHIP. 18 (3) After December 31, 1978, amobileMANUFACTURED home 19 shall not be sold or transferred except by transfer of the cer- 20 tificate oftitleOWNERSHIP for themobileMANUFACTURED home 21pursuant toUNDER this act. 22 Sec. 30a. (1) An owner of amobileMANUFACTURED home 23whichTHAT is subject to the certificate oftitleOWNERSHIP 24 provisions of this act shallmake applicationAPPLY to the 25 department for the issuance of a certificate oftitleOWNERSHIP 26 for themobileMANUFACTURED home upon the appropriate form 27 furnished by the department, accompanied by a fee of $45.00 or 02555'01 33 1anyA lesser amount establishedpursuant toUNDER 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 themobileMANUFACTURED 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 themobile12 MANUFACTURED home in the manner and place designated by the 13 department. 14 (c) A statement of thenames and addresses of the holders15of any security interests in the mobileNAME AND ADDRESS OF EACH 16 HOLDER OF A SECURITY INTEREST IN THE MANUFACTURED home, in the 17 order oftheirpriority. 18 (d) Further information as may reasonably be required by the 19 department to enable it to determine whether the owner of the 20mobileMANUFACTURED home is entitled to a certificate of 21titleOWNERSHIP for themobileMANUFACTURED home. 22 (2) If the department is not satisfied as to the ownership 23 ofthe mobileA MANUFACTURED home, before issuing a certificate 24 oftitleOWNERSHIP 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 2mobileMANUFACTURED home as determined by the department and 3 shall be conditioned to indemnify or reimburse the department, 4anyA prior owner,anyA holder of a security interest in the 5mobileMANUFACTURED home, andanyA subsequent purchaser of 6 themobileMANUFACTURED home, and their successors in interest, 7 againstanyexpense, loss, or damage, including reasonable 8 attorney's fees, by reason of the issuance of a certificate of 9titleOWNERSHIP to themobileMANUFACTURED home or on account 10 ofanyA defect in the right,titleOWNERSHIP, or interest of 11 the applicant in and to themobileMANUFACTURED 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 oftitle17 OWNERSHIP is surrendered to the department, unless the department 18 has received notificationof the pendency ofTHAT 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 oftitleOWNERSHIP for amobileMANUFACTURED home and of 23 any other application lawfully made to the department., and24 THE DEPARTMENT may in all casesmake investigationINVESTIGATE 25 or require additional information asmay be consideredIT 26 CONSIDERS necessary, and shall rejectanyAN application if not 27 satisfiedofAS TO the genuineness, regularity, or legality of 02555'01 35 1 it or the truth ofanyA 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 rectedtitleCERTIFICATE OF OWNERSHIP, for placing or terminat- 5 ing a lien on thetitleCERTIFICATE OF OWNERSHIP, or for plac- 6 ing a name on thetitleCERTIFICATE OF OWNERSHIP is $15.00 or 7any otherA lesser amount establishedpursuant toUNDER sec- 8 tion 9(5). 9 Sec. 30b. (1) The department upon receipt of the required 10 application and fees shall issue a certificate oftitle11 OWNERSHIP except as otherwise provided. 12 (2) The certificate oftitleOWNERSHIP shall contain upon 13 its face the date issued, the name and address of the owner, a 14 description of themobileMANUFACTURED home as determined by 15 the department, a statement of all security interests in the 16mobileMANUFACTURED 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 oftitleOWNERSHIP shall contain 20uponON the reverse side forms for assignment oftitle21 OWNERSHIP or interest and warranty oftitleOWNERSHIP by the 22 owner with space for notation of security interests in the 23mobileMANUFACTURED home at the time of a transfer to be signed 24 in ink, and other forms as the departmentmay consider25 CONSIDERS necessary to facilitate the effective administration of 26 this section. The certificate shall bear the DEPARTMENT'S seal. 27of the department.02555'01 36 1 (4) The certificate oftitleOWNERSHIP shall be mailed or 2 delivered to the owner or other person as the owner may direct in 3 a separate instrument, in the formasthe departmentshall4prescribePRESCRIBES. 5 Sec. 30c. (1) If the owner of amobileMANUFACTURED home 6 transfers or assigns the owner'stitleOWNERSHIP or interest to 7 themobileMANUFACTURED home, the owner shallindorseENDORSE 8 on the back of the certificate oftitleOWNERSHIP an assignment 9 of themobileMANUFACTURED home with warranty oftitle10 OWNERSHIP with a statement of all security interests in the 11mobileMANUFACTURED home., andTHE OWNER shallcauseMAIL 12 OR DELIVER the certificateto be mailed or deliveredto the 13 department or to the purchaser or transferee at the time of the 14 delivery to the purchaser or transferee of themobile15 MANUFACTURED home. 16 (2) Upon the delivery of amobileMANUFACTURED home and 17 the transfer, sale, or assignment of thetitleOWNERSHIP or 18 interest in amobileMANUFACTURED home, the effective date of 19 the transfer oftitleOWNERSHIP or interestshall beIS the 20 date of execution of either the application fortitle21 CERTIFICATE OF OWNERSHIP or the certificate oftitle22 OWNERSHIP. 23 (3) The purchaser or transferee, unless the purchaser or 24 transferee is a licenseddealerRETAILER, shallcause to be25presentedPRESENT to the department the certificate oftitle26 OWNERSHIP accompanied by 1 OF the FOLLOWING applicablefee, as27followsFEES: 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 oftitleOWNERSHIP ofany1 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 otherA lesser amount establishedpursuant to13 UNDER section 9(5). 14 (4) Upon presentation of the certificate oftitle15 OWNERSHIP accompanied by the applicable fee, a new certificate of 16titleOWNERSHIP shall be issued. A certificate oftitle17 OWNERSHIP issued under subsection (3) and this subsection shall 18 be mailed or delivered to the owner orany otherANOTHER person 19 the ownermay directDIRECTS in a separate instrument in a form 20 asprescribed bythe 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 amobileMANUFACTURED home is a 24mobileMANUFACTURED homedealerRETAILER who holds the 25mobileMANUFACTURED home for resale, thedealer shall26 RETAILER IS notberequired to forward the certificate of 27titleOWNERSHIP to the department, but thedealerRETAILER 02555'01 38 1 shall retain possession of the assigned certificate oftitle2 OWNERSHIP. Upon transfer of thedealer's titleRETAILER'S 3 OWNERSHIP or interest to another person, thedealerRETAILER 4 shall execute and acknowledge an assignment and warranty of 5titleOWNERSHIP upon the certificate oftitleOWNERSHIP and 6 deliver it to the person to whom the transfer is made if the 7 person is a licenseddealer otherwiseRETAILER. OTHERWISE, THE 8 TRANSFEROR SHALL MAKE application for a newtitle shall be made9by the transferorCERTIFICATE OF OWNERSHIP as provided in sec- 10 tion 30a(1). 11 Sec. 30d. (1) If an owner named in a certificate oftitle12 OWNERSHIP creates a security interest in themobile13 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 formprescribed bythe department PRESCRIBES showing the 17 name and address of the holder of the security interest.and18 THE OWNER SHALL deliver the certificate oftitleOWNERSHIP, 19 application, and a fee of $1.00 together with a copy of the 20 application, whichneed notDOES NOT NEED TO be signed, to the 21 holder of the security interest. 22 (b) The holder of the security interest shallcauseMAIL 23 OR DELIVER the certificate oftitleOWNERSHIP, application, and 24 fee and the copy of the applicationto be mailed or delivered25 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 oftitleOWNERSHIP, 5 application, and the required fee the department shall issue a 6 new certificate in the formprovidedPRESCRIBED by section 30b 7 setting forth the name and address of each holder of a security 8 interest in themobileMANUFACTURED home for which a termina- 9 tion statement has not been filed and the dateon whichTHAT 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 oftitle indorsedOWNERSHIP 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 soshall22 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 oftitleOWNERSHIP showing the 26 name and address of the holder of a security interest in a 27mobileMANUFACTURED 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 the3Public Acts of 1962, being sections 440.9101 to 440.9994 of the4Michigan Compiled Laws1962 PA 174, MCL 440.9101 TO 440.9994. 5 (4)WhenIF 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 8mobileMANUFACTURED 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 11prescribed bythe 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 adealerRETAILER holding 14 themobileMANUFACTURED home for resale, shall promptlycause15 MAIL OR DELIVER the certificate, all termination statements, and 16 an application for certificate oftitleOWNERSHIP accompanied 17 by a fee of $1.00to be mailed or deliveredto the department. 18, whichTHE DEPARTMENT shall issue a new certificate. 19 Sec. 30e. (1) If the interest of the owner in amobile20 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 oftitle23 OWNERSHIP, if the transfereehas possession ofPOSSESSES it, an 24 application for a new certificate in the formprescribed bythe 25 department PRESCRIBES, and an affidavit made by or on behalf of 26 the holder of the security interest so enforced STATING that the 27mobileMANUFACTURED 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 oftitleOWNERSHIP to the transferee of the owner's inter- 4 est, naming the transferee, or if not, the reason delivery was 5 not made and thethenlocation of the certificate oftitle6 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 themobileMANUFACTURED home for resale, the holdershallIS 9 notberequired to secure a new certificate oftitle10 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 amobileMANUFACTURED 16 home is terminated by salepursuant toUNDER 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 oftitleOWNERSHIP, if the 20 transfereehas possession ofPOSSESSES it, an application for 21 a new certificate oftitleOWNERSHIP in the formprescribed22bythe department PRESCRIBES, and an affidavit, upon a form 23prescribed bythe department PRESCRIBES, made by the officer of 24 the court who conducted the sale, setting forth the date of the 25 sale,andthe name of the purchaser, and whether the officer 26 has delivered the certificate oftitleOWNERSHIP 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 thethenloca- 3 tion of the certificate oftitleOWNERSHIP so far as known to 4 the officer. 5 (3) A person holding a certificate oftitle where6 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 certificatepursuant10toAT 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 oftitleOWNERSHIP is 13 not conclusiveupon anyON THE rights of an owner or holder of 14 a security interest named in the old certificate. 15 (4)The department, uponUPON receipt of an application 16 for a new certificate oftitleOWNERSHIP 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 oftitle20 OWNERSHIP in the name of the transferee as owner, setting forth 21 all security interests noted on the last certificate oftitle22 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 oftitleOWNERSHIP is 25 not delivered, the department shall make demand for the outstand- 26 ing certificate oftitleOWNERSHIP from the holder. 02555'01 43 1 Sec. 30f. The department shall retain and appropriately 2 file every surrendered certificate oftitleOWNERSHIP. The 3 file shall be maintainedso as to permitIN A MANNER THAT 4 PERMITS the tracing oftitleOWNERSHIP of themobile5 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 oftitleOWNERSHIP UNDER 1 OR MORE OF THE FOLLOW- 9 ING CIRCUMSTANCES: 10 (a) If the department is satisfied that the certificate of 11titleOWNERSHIP was fraudulently or erroneously issued. 12 (b) If the department determines that the holder of the cer- 13 tificate has made or is makinganunlawful 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 underany other19 ANOTHER provision of this act. 20 (e)Upon receipt ofIF THE DEPARTMENT RECEIVES notifica- 21 tion from another state or foreign country that a certificate of 22titleOWNERSHIP 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 amobileMANUFACTURED 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., whichTHE RULES PROMULGATED 6 BY THE COMMISSION shall further define and distinguish between 7 the termmobileMANUFACTURED home as used in this act and the 8 term trailer coach as used in the Michigan vehicle code,Act9No. 300 of the Public Acts of 1949, being sections 257.1 to10257.923 of the Michigan Compiled Laws1949 PA 300, MCL 257.1 TO 11 257.923. 12 Sec. 31. A person who offers, sells, or purchases a 13mobileMANUFACTURED home or equipment or amobile14 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,andany21 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 amobileMANUFACTURED home license,is 25 incomplete inanyA material respect or contains a statement 26whichTHAT 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,dealerRETAILER, or operator; a part- 5 ner, officer, director, proprietor, or manager of the developer, 6dealerRETAILER, or operator; or a person directly or indi- 7 rectly controlling, or directly controlled by, the developer, 8dealerRETAILER, 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 prospectivetenantsRESIDENT, as defined by 12 rules promulgated by the commission. 13 (d) The developer,dealerRETAILER, or operator; a part- 14 ner, officer, director, proprietor, or manager of the developer, 15dealerRETAILER, or operator; a person directly or indirectly 16 controlling or directly controlled by the developer,dealer17 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,oris 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 issuedpursuant toUNDER 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 prospectivetenantsRESIDENT ormobile27 MANUFACTURED homepurchasersPURCHASER. 02555'01 46 1 (e) The developer,dealerRETAILER, 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,dealerRETAILER, 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-12tions 565.801 to 565.835 of the Michigan Compiled Laws1972 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 activitieswhich17 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)WhenIF 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 the5Public Acts of 1969, being sections 24.201 to 24.328 of the6Michigan Compiled Laws1969 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 themobile home23 MANUFACTURED HOUSING commission fund. 24 (3) This section does not prohibitactionsAN ACTION being 25 taken underother sectionsANOTHER 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