HOUSE BILL No. 5847 May 25, 2000, Introduced by Reps. Garcia, Scranton and Richardville and referred to the Committee on Economic Development. 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. 03828'99 * 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 home parks, the licensure and 7 regulation of retail sales dealers, warranties ofmobile8 MANUFACTURED homes, and service practices of dealers; to provide 9 for the titling ofmobileMANUFACTURED homes; to prescribe the 10 powers and duties of certain agencies and departments; to provide 11 remedies and penalties; to declare the act to be remedial;to12repeal this act on a specific date;and to repealcertainacts 13 and parts of acts. 14 Sec. 1. This act shall be known and may be cited as "the 15mobile homeMANUFACTURED HOUSING commission act". 16 Sec. 2. As used in this act: 17 (a) "Campground" means a campground as defined in section 18 12501 of the public health code,Act No. 368 of the Public Acts19of 1978, being section 333.12501 of the Michigan Compiled Laws20 1978 PA 368, MCL 333.12501. 21 (b) "Code" means all or a part of themobile home22 MANUFACTURED HOUSING code promulgated pursuant to section 5. 23 (c) "Commission" means themobile home codeMANUFACTURED 24 HOUSING commission CREATED UNDER SECTION 3. 25 (d) "Department" means the department ofcommerceCONSUMER 26 AND INDUSTRY SERVICES. 03828'99 * 3 1 (e) "Installer and repairer" means a person, including a 2mobileMANUFACTURED home dealer, who for compensation installs 3 or repairsmobileMANUFACTURED homes. 4 (f) "Local government" means a county or municipality. 5 (g)"Mobile"MANUFACTURED home" means a structure, trans- 6 portable in 1 or more sections,whichTHAT is built on a chas- 7 sis and designed to be used as a dwelling with or without per- 8 manent foundation, when connected to the required utilities, and 9 includes the plumbing, heating, air-conditioning, and electrical 10 systems contained in the structure. MANUFACTURED HOME INCLUDES A 11 MANUFACTURED HOME AS DEFINED IN SECTION 603(6) OF THE NATIONAL 12 MANUFACTURED HOUSING CONSTRUCTION AND SAFETY STANDARDS ACT OF 13 1974, TITLE VI OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 14 1974, PUBLIC LAW 93-383, 42 U.S.C. 5402(6). 15 (h)"Mobile"MANUFACTURED home dealer" means a person 16 other than a manufacturer engaged in the business of buying 17mobileMANUFACTURED homes for resale, exchange, lease, or rent 18 or offeringmobileMANUFACTURED homes for sale, lease, rent, or 19 exchange to customers. 20 (i)"Mobile"MANUFACTURED home park" means a parcel or 21 tract of land under the control of a person upon which 3 or more 22mobileMANUFACTURED homes are located on a continual, nonrecre- 23 ational basis andwhichTHAT is offered to the public for that 24 purpose regardless of whether a charge is madethereforFOR 25 THAT PURPOSE, together withanyA building, structure, enclo- 26 sure, street, equipment, or facility used or intended for use 27 incident to the occupancy of amobileMANUFACTURED home. 03828'99 * 4 1 (j) "Municipality" means a city, village, or township. 2 (k) "Person" means an individual, partnership, association, 3 trust, or corporation, oranyother legal entity or combination 4 of legal entities. 5 (l) "Recreational vehicle" means a vehicle primarily 6 designed and used as temporary living quarters for recreational, 7 camping, or travel purposes, including a vehicle having its own 8 motor power or a vehicle mounted on or drawn by another vehicle. 9 (m) "SeasonalmobileMANUFACTURED home park" means a 10 parcel or tract of land under the control of a person upon which 11 3 or moremobileMANUFACTURED homes are located on a continual 12 or temporary basis but occupied on a temporary basis only,and 13whichTHAT is offered to the public for that purpose regardless 14 of whether a charge is madethereforFOR THAT PURPOSE, together 15 withanybuilding, enclosure, street, equipment, or facility 16 used or intended for use incident to the occupancy of amobile17 MANUFACTURED home. SeasonalmobileMANUFACTURED home park does 18 not include a campground licensed pursuant to sections 12501 to 19 12516 of the public health code,Act No. 368 of the Public Acts20of 1978, being sections 333.12501 to 333.12516 of the Michigan21Compiled Laws1978 PA 368, MCL 333.12501 TO 333.12516. 22 (n) "Security interest", "security agreement", "secured 23 party", and "termination statement" have the same meanings as in 24 the uniform commercial code,Act No. 174 of the Public Acts of251962, being sections 440.1101 to 440.11102 of the Michigan26Compiled Laws1962 PA 174, MCL 440.1101 TO 440.11102. 03828'99 * 5 1 Sec. 3. (1) Themobile homeMANUFACTURED HOUSING 2 commission is created within the department.of commerce.3 (2) The commission consists of 11 members appointed by the 4 governor with the advice and consent of the senate, each of whom 5 shall be a citizen of this state. 6 (3) The members of the commission shall include each of the 7 following: 8 (a) A representative of an organization whose membership 9 consists ofmobileMANUFACTURED home residents. 10 (b) A representative of financial institutions. 11 (c) Two operators of a licensedmobileMANUFACTURED home 12 park having 100 or more sites and 1 operator of a licensed 13mobileMANUFACTURED home park having less than 100 sites. 14 (d) A representative of organized labor. 15 (e) An elected official of a local government. 16 (f) A licensedmobileMANUFACTURED home dealer. 17 (g) One resident of a licensedmobileMANUFACTURED home 18 park having 100 or more sites and 1 resident of a licensed 19mobileMANUFACTURED home park having less than 100 sites. 20 (h) A manufacturer ofmobileMANUFACTURED homes. 21 (4) A person appointed to be a member under subsection 22 (3)(a), (d), (e), OR (g), or a member of that person's immediate 23 family shall not have more than a 1% ownership interest in or 24 income benefit from a manufacturer ofmobileMANUFACTURED 25 homes, a retail seller ofmobileMANUFACTURED homes, a licensed 26mobileMANUFACTURED home park, or a supplier of ancillary 27 products or services to themobileMANUFACTURED home industry. 03828'99 * 6 1 (5) The term of each member shall be for 3 years. A vacancy 2 in the office of a member shall be filled by the governor for the 3 remainder of the unexpired term, not more than 1 month after the 4 vacancy is created, in the same manner as the original 5 appointment. 6 (6) The per diem compensation of the commission and the 7 schedule for reimbursement of expenses shall be established annu- 8 ally by the legislature. 9 (7) Six members of the commission constitute a quorum for 10 all purposes, notwithstanding the existence of a vacancy in the 11 commission's membership. Action may be taken by the commission 12 by a vote of a majority of the members appointed and serving. 13 Meetings of the commission may be called by the chairperson or by 14 3 members on 3 business days' actual notice. At least 1 meeting 15 shall be held each calendar quarter. The commission may hold 16 meetings anywhere in this state. 17 (8) The commission shall elect a member of the commission as 18 its chairperson and another member as its vice-chairperson. The 19 duties and powers of the chairperson and vice-chairpersonshall20beARE as prescribed in the commission's rules. 21 (9) A member of the commission may be removed from office by 22 the governor for inefficiency, neglect of duty, or misconduct or 23 malfeasance in office. A member of the commission who has a 24 direct pecuniary interest in a matter before the commission shall 25 disclose that interest before the commission taking action with 26 respect to the matter., whichTHE disclosure shall become a 27 part of the record of the commission's official proceedings. 03828'99 * 7 1 Sec. 4. (1) The commission may do all of the following: 2 (a) Promulgate rules to implement and administer this act. 3 (b) Act for the purpose of establishing a uniform policy 4 relating to all phases ofmobileMANUFACTURED home businesses, 5mobileMANUFACTURED home parks, and seasonalmobile6 MANUFACTURED home parks. 7 (c) Determine the sufficiency of localmobileMANUFACTURED 8 home ordinanceswhichTHAT are designed to provide A local 9governmentsGOVERNMENT with superintending control over 10mobileMANUFACTURED home businesses,mobileMANUFACTURED home 11 parks, or seasonalmobile homesMANUFACTURED HOME parks. 12 (d) Conduct public hearings relating to the powers pre- 13 scribed in this subsection. 14 (2) The director ofcommerceCONSUMER AND INDUSTRY 15 SERVICES or an authorized representative of the director shall do 16 all of the following: 17 (a) Administer the rules promulgated by the commission. 18 (b) Conduct hearings relating to violations of this act or 19 rules promulgated under this act. 20 (c) Make investigations to determine compliance with this 21 act and rules promulgated under this act. 22 (d) Provide assistance to the commission as the commission 23 requires. 24 (3) The commission shall not act for the purpose of regulat- 25 ingmobileMANUFACTURED homes that are not located within a 26mobileMANUFACTURED home park or a seasonalmobile27 MANUFACTURED home park, except as relates to the business, sales, 03828'99 * 8 1 and service practices ofmobileMANUFACTURED home dealers and 2 the business practices ofmobileMANUFACTURED home installers 3 and repairers. 4 Sec. 5. (1) The commission shall promulgate themobile5homeMANUFACTURED HOUSING code subject to section 4. The code 6 shall consist of rules governing all of the following: 7 (a) The licensure, density, layout, permits for construc- 8 tion, AND construction ofmobileMANUFACTURED home parks 9 including standards for roads, utilities, open space, or proposed 10 recreational facilities, and safety measures sufficient to pro- 11 tect health, safety, and welfare ofmobileMANUFACTURED home 12 park residents., exceptTHE RULES DO NOT GOVERN water supply, 13 sewage collection and treatment, and drainage facilitieswhich14are regulated byTHAT the department ofpublic health15 ENVIRONMENTAL QUALITY REGULATES. 16 (b) The business, sales, and service practices ofmobile17 MANUFACTURED home dealers. 18 (c) The business practices ofmobileMANUFACTURED home 19 installers and repairers. 20 (d) The licensure andregulationsREGULATION ofmobile21 MANUFACTURED home installers and repairers. 22 (e) The setup and installation ofmobileMANUFACTURED 23 homes insidemobileMANUFACTURED home parks or seasonal 24mobileMANUFACTURED home parks. 25 (f) The regulation of the responsibilities, under the 26mobileMANUFACTURED home warranty, of themobileMANUFACTURED 27 home components manufacturer, themobileMANUFACTURED home 03828'99 * 9 1 assembler or manufacturer, and themobileMANUFACTURED home 2 dealer, including the time period and relationships of each under 3 the warranty, and the remedies available, if any, if the respon- 4 sible parties cease to operate as a business. 5 (g) Abuses relating to all of the following: 6 (i) Consumer deposits, except utility deposits from consum- 7 ers who are direct customers of utilities regulated by the 8 Michigan public service commission. 9 (ii) Detailed listing of furnishings and fixtures by a manu- 10 facturer of a newmobileMANUFACTURED home or amobile11 MANUFACTURED home dealer for a usedmobileMANUFACTURED home. 12 (iii) Disclosure and delivery of manufacturer's warranties. 13 (iv) UsedmobileMANUFACTURED homes. Amobile14 MANUFACTURED home dealer shall provide detailed listing of its 15 service records for usedmobileMANUFACTURED homeswhichTHAT 16 are being sold by the dealer andof whichTHAT the dealer has 17 knowledge OF. 18 (h) Applications for and issuance of certificates of title 19 formobileMANUFACTURED homes. 20 (2) As part of the code, the commission shall also promul- 21 gate rules governing the licensure, density, layout, permits for 22 construction, and construction of seasonalmobileMANUFACTURED 23 home parks., includingTHE RULES SHALL GOVERN standards for 24 roads, utilities, open space, proposed recreational facilities, 25 and safety measures sufficient to protect the health, safety, and 26 welfare of seasonalmobileMANUFACTURED home park residents.,27exceptTHE RULES SHALL NOT GOVERN water supply, sewage 03828'99 * 10 1 collection and treatment, and drainage facilities, which shall2be regulated byTHAT the department ofpublic health3 ENVIRONMENTAL QUALITY REGULATES. 4 (3)TheIN rules promulgated for seasonalmobile5 MANUFACTURED home parks, THE COMMISSION may impose a less strin- 6 gent standard than the rules promulgated formobile7 MANUFACTURED home parks. 8 Sec. 6. (1) The department ofpublic healthENVIRONMENTAL 9 QUALITY shall promulgate rules formobileMANUFACTURED home 10 parks and seasonalmobileMANUFACTURED home parks setting forth 11 minimum standards regulating: 12 (a) Water supply system. 13 (b) Sewage collection and disposal system. 14 (c) Drainage. 15 (d) Garbage and rubbish storage and disposal. 16 (e) Insect and rodent control. 17 (f) General operation, maintenance, and safety. 18 (g) Certification of compliance under section 17. 19 (2) Representatives of local government shall act in an 20 advisory capacity in the promulgation of the code. 21 (3) The commission shall consult with appropriate state and 22 local governments in developing the procedures for effective 23 coordination of efforts. The commission shall recommend proce- 24 dures to the governor and the legislature for coordinating state 25 agency decisions and activities pertaining to this act. 26 Sec. 7. (1)A local government which proposes a standard27related to mobile home parks or seasonal mobile home parks, or03828'99 * 11 1related to mobile homes located within a mobile home park or a2seasonal mobile home park that is higher than the standard pro-3vided in this act or the code; or a standard related to the busi-4ness, sales, and service practices of mobile home dealers, or the5business of mobile home installers and repairers, that is higher6than the standard provided in this act or the code shall file the7proposed standard with the commission.A LOCAL GOVERNMENT THAT 8 PROPOSES 1 OR MORE OF THE FOLLOWING STANDARDS SHALL FILE THE PRO- 9 POSED STANDARD WITH THE COMMISSION: 10 (A) A STANDARD RELATED TO MANUFACTURED HOME PARKS OR SEA- 11 SONAL MANUFACTURED HOME PARKS, OR MANUFACTURED HOMES LOCATED 12 WITHIN A MANUFACTURED HOME PARK OR A SEASONAL MANUFACTURED HOME 13 PARK, THAT IS HIGHER THAN A STANDARD PROVIDED IN THIS ACT OR THE 14 CODE. 15 (B) A STANDARD RELATED TO THE BUSINESS, SALES, AND SERVICE 16 PRACTICES OF MANUFACTURED HOME DEALERS, OR THE BUSINESS OF MANU- 17 FACTURED HOME INSTALLERS AND REPAIRERS, THAT IS HIGHER THAN THE 18 STANDARD PROVIDED IN THIS ACT OR THE CODE. 19 (2) The commission may promulgate rules to establish the 20 criteria and procedure for implementation of A higherstandards21 STANDARD by a local government. The commission shall review and 22 approve the proposed standard unless the standard is unreason- 23 able, arbitrary, or not in the public interest. If the commis- 24 sion does not approve or disapprove the proposed standard within 25 60 days after it is filed with the commission, the standard 26shall be consideredIS approved unless the local government 27 grants the commission additional time to consider the standard. 03828'99 * 12 1 After the proposed standard is approved, the local government may 2 adopt the standard by ordinance. The ordinanceshallMUST 3 relate to a specific section of the code. 4 (3)(2)A local government standard related tomobile5 MANUFACTURED homes not located within amobileMANUFACTURED 6 home park or seasonalmobileMANUFACTURED home park need not be 7 filed with themobile homeMANUFACTURED HOUSING commission, 8 unless the standard relates to the business, sales, and service 9 practices ofmobileMANUFACTURED home dealers, or the business 10 ofmobileMANUFACTURED home installers and repairers. 11 (4)(3)A local government ordinance shall not be designed 12 as exclusionary tomobileMANUFACTURED homes generally whether 13 themobileMANUFACTURED homes are located inside or outside of 14mobileMANUFACTURED home parks or seasonalmobile15 MANUFACTURED home parks. 16 (5)(4)A local government ordinance shall not contain a 17 standard for the setup or installation ofmobileMANUFACTURED 18 homes that is incompatible with, or is more stringent than, 19 either of the following: 20 (a) The manufacturer's recommended setup and installation 21 specifications. 22 (b) ThemobileMANUFACTURED home setup and installation 23 standards promulgated by the federal department of housing and 24 urban development pursuant to the national manufactured housing 25 construction and safety standards act of 1974, TITLE VI OF THE 26 HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974, PUBLIC LAW 93-383, 27 42 U.S.C. 5401 to 5426. 03828'99 * 13 1 (6)(5)In the absence ofanysetup or installation 2 specifications or standards for foundations as set forth in sub- 3 section(4)(a)(5)(A) or (b), the local government standards 4 for site-built housingshallapply. 5 (7)(6)A local government ordinance shall not contain 6 roof configuration standards or special use zoning requirements 7 that apply only to, orexcludes, mobileTHAT EXCLUDE, 8 MANUFACTURED homes. A local government ordinance shall not con- 9 tain a manufacturing or construction standard that is incompati- 10 ble with, or is more stringent than, a standard promulgated by 11 the federal department of housing and urban development pursuant 12 to the national manufactured housing construction and safety 13 standards act of 1974, TITLE VI OF THE HOUSING AND COMMUNITY 14 DEVELOPMENT ACT OF 1974, PUBLIC LAW 93-383, 42 U.S.C. 5401 to 15 5426. A local government ordinance may include reasonable stan- 16 dards relating tomobile homesA MANUFACTURED HOME located out- 17 side ofmobileA MANUFACTURED homeparksPARK or A seasonal 18mobileMANUFACTURED homeparks which ensurePARK THAT ENSURES 19 thatmobile homes compareA MANUFACTURED HOME COMPARES aesthet- 20 ically to site-built housing located or allowed in the same resi- 21 dential zone. 22 Sec. 11. (1) A person who desires to develop amobile23 MANUFACTURED home park or a seasonalmobileMANUFACTURED home 24 park shall submit a preliminary plan to the appropriate munici- 25 pality, local health department, county road commission, and 26 county drain commissioner for preliminary approval. The 27 preliminary plan shall include the location, THE layout, THE 03828'99 * 14 1 general design, and a general description of the project. The 2 preliminary plan shall not include detailed construction plans. 3 (2) The municipality may grant preliminary approval if the 4 proposedmobileMANUFACTURED home park or seasonalmobile5 MANUFACTURED home park conforms to applicable laws and local 6 ordinances not in conflict with this act and laws and ordinances 7 relative to ALL OF THE FOLLOWING: 8 (a) Land use and zoning. 9 (b) Municipal water supply, sewage service, and drainage. 10 (c) Compliance with local fire ordinances and state fire 11 laws. 12 (3) The county drain commissioner shall review and may 13 approve outlet drainage. The county road commission shall review 14 and may approve ingress and egress roads. The county road com- 15 mission and the county drain commissioner shall adopt and publish 16 standards to implement this subsection. The county road commis- 17 sion and the county drain commissionershallDO not have 18 authority as to interior streets and drainage in themobile19 MANUFACTURED home park or seasonalmobileMANUFACTURED home 20 park, unless the streets or drains are dedicated to the public. 21 (4) The local health department shall grant preliminary 22 approval, under the guidance of the department ofpublic health,23for on-site water and sewage service andENVIRONMENTAL QUALITY, 24 FOR general site suitability. 25 (5) If a reviewing agency as provided in this section has 26 not returned the preliminary plan to the developer, either 27 approved, modified, or disapproved within 60 days after it 03828'99 * 15 1 receives the preliminary plan, the preliminary planshall beIS 2 considered approved. 3 (6) Coordination ofapprovalsAPPROVAL by state and local 4 governments shall be provided by the director ofpublic health5 THE DEPARTMENT OF ENVIRONMENTAL QUALITY beforeitTHE DEPART- 6 MENT OF ENVIRONMENTAL QUALITY may grant construction approval. 7 (7) The developer shall submit the preliminary approval with 8 the final plans to the department ofpublic health9 ENVIRONMENTAL QUALITY for review before the departmentof10commercemay issue a construction permit. 11 (8) IF THE LOCAL MUNICIPALITY'S SYSTEM FOR WATER SUPPLY AND 12 SEWAGE SERVICE IS ESTABLISHED AND ACCESSIBLE, THE MANUFACTURED 13 HOME PARK DEVELOPER OR SEASONAL MANUFACTURED HOME PARK DEVELOPER 14 IS REQUIRED TO UTILIZE THAT SYSTEM. IF THE LOCAL MUNICIPALITY 15 ESTABLISHES A SYSTEM FOR WATER SUPPLY OR SEWAGE SERVICE AFTER THE 16 MANUFACTURED HOME PARK OR SEASONAL MANUFACTURED HOME PARK IS CON- 17 STRUCTED, THE MANUFACTURED HOME PARK OR SEASONAL MANUFACTURED 18 HOME PARK IS REQUIRED TO UTILIZE THE LOCAL MUNICIPALITY'S SYSTEM 19 ONLY WHEN THE PARK MAKES A SUBSTANTIAL CHANGE TO ITS SYSTEM. 20 Sec. 12. (1) When all preliminary approvals are made, the 21 developer shall submit the legal documents and the final plans 22 draft to the department. 23 (2) The department shall review the filing and, within 90 24 days after filing, issue its approval or disapproval. Upon the 25 approval of all the reviewing agencies, the department shall 26 issue a permit to construct themobileMANUFACTURED home park 27 or seasonalmobileMANUFACTURED home park. 03828'99 * 16 1 Sec. 13. (1) A person shall not construct amobile2 MANUFACTURED home park or seasonalmobileMANUFACTURED home 3 park without obtaining a permit issued by the department. 4 (2) Construction may beginupon the granting ofWHEN THE 5 DEPARTMENT GRANTS a permit to construct.by the department.6 Sec. 14. Upon completion of the construction ofthe7mobileA MANUFACTURED home park or seasonalmobile8 MANUFACTURED home park, the owner or operator of the park and a 9 registered professional engineer or architect shall file with the 10 department an affidavit certifying that themobileMANUFACTURED 11 home park or seasonalmobileMANUFACTURED home park, lot, and 12 work were completed in accordance with the approved specifica- 13 tions and plans. 14 Sec. 16. (1) A person shall not operate amobile15 MANUFACTURED home park or seasonalmobileMANUFACTURED home 16 park without a license. 17 (2) Upon completion, review, and approval of certifications, 18 the department shall grant a license to operate amobile19 MANUFACTURED home park or seasonalmobileMANUFACTURED home 20 park. 21 (3) An annual license shall be granted and renewed by the 22 department based upon the certifications and recommendations of 23 the appropriate agencies and local governments. 24 (4) If a person submits a timely application for renewal of 25 a license and pays the appropriate fee, the person may continue 26 to operate amobileMANUFACTURED home park or seasonalmobile03828'99 * 17 1 MANUFACTURED home park unless notified that the application for 2 renewal is not approved. 3 (5) A campgroundwhichTHAT is currently licensed under 4 sections 12501 to 12516 of the public health code,Act No. 3685of the Public Acts of 1978, being sections 333.12501 to 333.125166of the Michigan Compiled Laws1978 PA 368, MCL 333.12501 TO 7 333.12516, THAT was previously licensed under the licensing pro- 8 visions ofAct No. 243 of the Public Acts of 1959, being sec-9tions 125.1035 to 125.1043 of the Michigan Compiled Laws1959 10 PA 243, MCL 125.1035 TO 125.1043, as a seasonal trailer park, and 11whichTHAT currently meets the seasonal trailer park construc- 12 tion standards underAct No. 243 of the Public Acts of 195913 1959 PA 243, MCL 125.1035 TO 125.1043, may apply for and shall be 14 licensed as a seasonalmobileMANUFACTURED home park under this 15 act if the campground meets all other requirements for licensure 16 under this act as a seasonalmobileMANUFACTURED home park. 17 Sec. 16a.MobileMANUFACTURED homes located in a seasonal 18mobileMANUFACTURED home park may be occupied on a full-time 19 basis from April 1 to October 31, but shall not be occupied for 20 more than 15 consecutive days inanyA 30-day period from 21 November 1 to March 31. 22 Sec. 17. (1) The department ofpublic health23 ENVIRONMENTAL QUALITY or its authorized representative shall con- 24 duct an annual physical inspection ofmobileMANUFACTURED home 25 parks and seasonalmobileMANUFACTURED home parks in accordance 26 with standards established by the department ofpublic health27 ENVIRONMENTAL QUALITY. If themobileMANUFACTURED home park or 03828'99 * 18 1 seasonalmobileMANUFACTURED home park is approved, the 2 department ofpublic healthENVIRONMENTAL QUALITY shall issue a 3 certification of compliance to the departmentof commercethat 4 the park is licensable. 5 (2) Except for purposes of issuing a license or renewing a 6 license pursuant to this act, a local government may not make an 7 inspection unless it has reason to believe that this act, the 8 code, or rules promulgated pursuant to this act were violated. 9 Sec. 18. (1) A variance in the design and construction of a 10mobileMANUFACTURED home park or seasonalmobileMANUFACTURED 11 home park may be granted upon notice of the request to the local 12 government and the department ofpublic healthENVIRONMENTAL 13 QUALITY at the time of filing with the department.of commerce.14 If the local government grants a variancewhichTHAT would 15 permit activities violative of the minimum standards of the code, 16 the local government shall file with the department a copy of the 17 variance order and an explanation of the reason for the granting 18 of the order. The department may approve or disapprove the vari- 19 ance or revoke the variance upon notice and hearing. 20 (2) After a public hearing, the department may grant a spe- 21 cific variance to a substantive requirement of the code if the 22 literal application of the substantive requirement would result 23 in an exceptional, practical difficulty to the applicant, and if 24 the specific condition justifying the variance is neither so gen- 25 eral nor recurrent in nature as to make an amendment of the code 26 with respect to the condition reasonably practical or desirable. 03828'99 * 19 1 (3) The department may attach in writing a condition in 2 connection with the granting of a variance that in its judgment 3 is necessary to protect the health, safety, and welfare of the 4 people of this state. The variance shall not exceed the minimum 5 necessary to alleviate the exceptional, practical difficulty. 6 (4)AONLY A LOCAL GOVERNMENT MAY GRANT A variance to a 7 local ordinance, zoning requirement, or local rule.may be8granted only by a local government.9 (5)AONLY THE COMMISSION MAY GRANT A variance to a rule 10 promulgated under this act.may be granted only by the11commission.12 Sec. 21. (1) AmobileMANUFACTURED home dealer shall not 13 engage in the retail sale of amobileMANUFACTURED home without 14 a license. 15 (2) AmobileMANUFACTURED home dealer,mobile16 MANUFACTURED home installer, or repairer may obtain an initial or 17 renewal license by filing with the commission an application 18 together with consent to service of process in a form prescribed 19 by the commission pursuant to section 35. 20 (3) An initial or renewal license under this act shall be 21 issued for not more than 1 year. Licenses shall expire on 22 October 1. 23 (4) The annual license fee for amobileMANUFACTURED home 24 dealer is $150.00 orany otherA lesser amount established pur- 25 suant to section 9(5). 03828'99 * 20 1 (5) The annual license fee for amobileMANUFACTURED home 2 installer or repairer is $50.00 orany otherA lesser amount 3 established pursuant to section 9(5). 4 (6) A licensedmobileMANUFACTURED home dealer,mobile5 MANUFACTURED home installer, or repairer may file an application 6 for the license of a successor, whether or not the successor is 7 then in existence, for the unexpired portion of the year. The 8 commission may grant or deny the application. 9 (7) A licensee who submits a timely application for renewal 10 of a license and pays the appropriate fee may continue sales of 11mobileMANUFACTURED homes unless notified that the application 12 for renewal is not approved. 13 Sec. 22. The commission may promulgate rules to require a 14 licensedmobileMANUFACTURED home dealer to post a surety bond 15 in an amount up to $10,000.00 for each sales location and may 16 determine conditions of the bond. An appropriate deposit of cash 17 or securities shall be accepted in lieu of a bondwhichTHAT is 18 required. 19 Sec. 23. A licensedmobileMANUFACTURED home dealer shall 20 make and keep accounts, and other records as the commission pre- 21 scribes by rule. The records required shall be preserved for 3 22 years unless the commission otherwise prescribes by rule for par- 23 ticular types of records. If the information contained in a 24 record filed with the commission is or becomes inaccurate or 25 incomplete inanyA material respect, the licensee promptly 26 shall file a correcting amendment. 03828'99 * 21 1 Sec. 24. AmobileMANUFACTURED home dealer shall not DO 1 2 OR MORE OF THE FOLLOWING: 3 (a) Advertise or represent amobileMANUFACTURED home as 4 other than calendar or model year. 5 (b) Misapply consumer deposits on amobileMANUFACTURED 6 home or amobileMANUFACTURED home park. 7 (c) Fail to place deposits, down payments, or similar pay- 8 ments for the purchase or right to purchase amobile9 MANUFACTURED home in a separate escrow account subject to return 10 upon cancellation of the purchase order by the prospective pur- 11 chaser under the rules or orders as the commission promulgates or 12 issues unless the dealershall postPOSTS a bond or a deposit 13 of cash or securities for protection of these payments in an 14 amount acceptable to the commission. 15 (d) Fail to disclose to the departmentanydirect or indi- 16 rect business relationships with financial and loan institutions, 17 banks, and insurance companies. 18 Sec. 25. (1) The commission shall promulgate rules relating 19 to the responsibility of themobileMANUFACTURED home dealer, 20mobileMANUFACTURED home installer, and themobile21 MANUFACTURED home park or seasonalmobileMANUFACTURED home 22 park owner for installation and setup of amobileMANUFACTURED 23 home. 24 (2) A person licensed underany1 OR MORE of the following 25 acts shall not be required to be licensed as amobile26 MANUFACTURED home installer and repairer in order to perform work 27 onmobileMANUFACTURED homes for which the person is licensed, 03828'99 * 22 1 unless the work performed also includes the setup, installation, 2 or general repair ofmobileMANUFACTURED homes: 3 (a) The electrical administrative act,Act No. 217 of the4Public Acts of 1956, being sections 338.881 to 338.892 of the5Michigan Compiled Laws1956 PA 217, MCL 338.881 TO 338.892. 6 (b)Act No. 266 of the Public Acts of 1929, being sections7338.901 to 338.917 of the Michigan Compiled Laws1929 PA 266, 8 MCL 338.901 TO 338.917. 9 (c) The Forbes mechanical contractors act,Act No. 192 of10the Public Acts of 1984, being sections 338.971 to 338.988 of the11Michigan Compiled Laws1984 PA 192, MCL 338.971 TO 338.988. 12 (3) The electrical administrative act,Act No. 217 of the13Public Acts of 1956, being sections 338.881 to 338.892 of the14Michigan Compiled Laws1956 PA 217, MCL 338.881 TO 338.892,Act15No. 266 of the Public Acts of 1929, being sections 338.901 to16338.917 of the Michigan Compiled Laws1929 PA 266, MCL 338.901 17 TO 338.917, and the Forbes mechanical contractors act,Act18No. 192 of the Public Acts of 1984, being sections 338.971 to19338.988 of the Michigan Compiled Laws1984 PA 192, MCL 338.971 20 TO 338.988,shallDO not apply to the setup or installation of 21 amobileMANUFACTURED home and the following connections or 22 replacement or repair of the following connections, by a licensed 23mobileMANUFACTURED home installer and repairer: 24 (a) Factory-installed electrical wiring, devices, appli- 25 ances, or appurtenances to available electrical meters or 26 pedestals. 03828'99 * 23 1 (b) Factory-installed piping, fixtures, plumbing appliances, 2 and plumbing appurtenances to sanitary drainage or storm drainage 3 facilities, venting systems, or public or private water supply 4 systems. 5 (c) Factory-installed process piping, heating and cooling 6 equipment, and systems or supply lines to available service 7 meters or mains. 8 Sec. 27. (1) A person shall not, in connection with the 9 offer, sale, purchase, or rental of amobileMANUFACTURED home, 10mobileMANUFACTURED home site, or RELATED equipment,relating11theretoDO EITHER OF THE FOLLOWING: 12 (a) Employ a devise, scheme, or artifice to defraud. 13 (b) Make an untrue statement of material fact or omit to 14 state a material fact necessary to make the statement not mis- 15 leading, in the light of the circumstances under which it is 16 made. 17 (2) A person shall not willfully authorize, direct, or aid 18 in publication, advertisement, distribution, or circulation of a 19 statement or representation concerning amobileMANUFACTURED 20 home,mobileMANUFACTURED home site, or equipment relating 21 thereto,whichTHAT misrepresents the facts concerning the 22mobileMANUFACTURED home,mobileMANUFACTURED home site, or 23 RELATED equipment.relating thereto.24 (3) A person with knowledge that an advertisement, pamphlet, 25 prospectus, or letter concerning amobileMANUFACTURED home, 26mobileMANUFACTURED home site, or RELATED equipmentrelating27theretocontains a written statement that is false or 03828'99 * 24 1 fraudulent, shall not issue, circulate, publish, or distribute 2 the advertisement, pamphlet, prospectus, or letter concerning a 3mobileMANUFACTURED home,mobileMANUFACTURED home site, or 4 RELATED equipment.relating thereto.5 (4) A person shall not willfully makeanyA material mis- 6 representation in the sale of amobileMANUFACTURED home, 7mobileMANUFACTURED home site, or RELATED equipment.relating8thereto.9 Sec. 28. (1) An owner or operator of amobileMANUFACTURED 10 home park or seasonalmobileMANUFACTURED home park shall not 11 engage, or permit an employee or agent to engage, inany ofthe 12 following unfair or deceptive methods, acts, or practices: 13 (a) Directly or indirectly charging or collecting from a 14 person an entrance fee. 15 (b) Requiring a person to directly or indirectly purchase a 16mobileMANUFACTURED home from another person as a condition of 17 entrance to, or lease or rental of, amobileMANUFACTURED home 18 park or seasonalmobileMANUFACTURED home park space. 19 (c) Directly or indirectly charging or collecting from a 20 person a refundable or nonrefundable exit fee. 21 (d) Requiring or coercing a person to purchase, rent, or 22 lease goods or services from another person as a condition of 23any1 OR MORE of the following: 24 (i) Entering into a park or lease. 25 (ii) Selling amobileMANUFACTURED home through the park 26 owner or operator, or his or her agent or designee upon leaving a 03828'99 * 25 1mobileMANUFACTURED home park or seasonalmobileMANUFACTURED 2 home park. 3 (iii) Renting space in amobileMANUFACTURED home park or 4 seasonalmobileMANUFACTURED home park. 5 (e) Directly or indirectly charging or collecting from a 6 person money or other thing of value for electric, fuel, or water 7 service without the use of that service by a resident or tenant 8 being first accurately and consistently measured, unless that 9 service is included in the rental charge as an incident of 10 tenancy. 11 (f) Conspiring, combining, agreeing, aiding, or abetting in 12 the employment of a method, act, or practice that violates this 13 act. 14 (g) Renting or leasing amobileMANUFACTURED home or site 15 in amobileMANUFACTURED home park or seasonalmobile16 MANUFACTURED home park without offering a written lease. 17 (h) Subject to section 28a, prohibiting a resident from 18 selling his or hermobileMANUFACTURED home on-site for a price 19 determined by that resident, if the purchaser qualifies for ten- 20 ancy and themobileMANUFACTURED home meets the conditions of 21 written park rules or regulations. This subdivision does not 22 apply to seasonalmobileMANUFACTURED home parks. 23 (i) Subject to reasonablemobileMANUFACTURED home park or 24 seasonalmobileMANUFACTURED home park rules governing the 25 location, size, and style of exterior television antenna, prohib- 26 iting a person from installing or maintaining an exterior 27 television antenna on amobileMANUFACTURED home within the 03828'99 * 26 1 park unless themobileMANUFACTURED home park or seasonal 2mobileMANUFACTURED home park provides park residents, without 3 charge, a central television antenna for UHF-VHF reception. 4 (2) A tenant of amobileMANUFACTURED home park or sea- 5 sonalmobileMANUFACTURED home park may bring an action on his 6 or her own behalf for a violation of this section. 7 (3) If the commission has reason to suspect that the owner 8 of amobileMANUFACTURED home park or seasonalmobile9 MANUFACTURED home park is engaged in conduct that violates exist- 10 ing water utility tariffs or qualifies the owner of amobile11 MANUFACTURED home park or seasonalmobileMANUFACTURED home 12 park for regulation as a water utility, the commission shall 13 promptly send a written report of the alleged violation to the 14 Michigan public service commission. 15 Sec. 28a. (1)MobileMANUFACTURED home park rules or reg- 16 ulations may include provisions governing the physical condition 17 ofmobile homesA MANUFACTURED HOME and the aesthetic charac- 18 teristics ofmobile homesA MANUFACTURED HOME in relation to 19 themobileMANUFACTURED home park in which they are located, 20 subject to all of the following: 21 (a) The age or size of amobileMANUFACTURED home shall 22 not be used as the sole basis for refusing to allow an on-site, 23 in-park sale or for refusing to allow themobileMANUFACTURED 24 home to remain on-site. The burden of going forward in a suit 25 against themobileMANUFACTURED home park owner or operator for 26 violation of this subdivision is on the resident. 03828'99 * 27 1 (b) The standards incorporated in the written park rules or 2 regulations governing the physical condition and aesthetic 3 characteristics ofmobile homesA MANUFACTURED HOME in the 4mobileMANUFACTURED home parkshall applyAPPLIES equally to 5 all residents. 6 (c) AmobileMANUFACTURED home sold on-site shall conform 7 withAct No. 133 of the Public Acts of 1974, being sections8125.771 to 125.774 of the Michigan Compiled Laws1974 PA 133, 9 MCL 125.771 TO 125.774. 10 (d)AnyA charge connected to the on-site, in-park sale of 11 amobileMANUFACTURED home, other than the inspection fee per- 12 mitted under subdivision (e) and the commission or fee charged by 13 amobileMANUFACTURED home dealer licensed under this act who 14 is engaged by the seller to transact the sale, is an entrance or 15 exit fee in violation of section 28. 16 (e) A park owner or operator may charge a reasonable fee to 17 inspect themobileMANUFACTURED home before sale. The charge 18 shall not be more than $30.00., or the amount charged for19building permit inspections by the municipality in which the20mobile home is located, whichever is higher.21 (f) The standards governing the physical condition of 22mobile homesA MANUFACTURED HOME and the aesthetic characteris- 23 tics ofmobile homesA MANUFACTURED HOME in themobile24 MANUFACTURED home park, as incorporated in the written park 25 rules, shall not be designed to defeat the intent of this 26 section. 03828'99 * 28 1 (2) Subsection (1)(f)shallDOES not apply if themobile2 MANUFACTURED home park is changing its method of doing business 3 and provides not less than 1 year's notice, unless a different 4 notice period is otherwise provided by law, of the proposed 5 change to all affectedmobileMANUFACTURED home park 6 residents. A change in amobileMANUFACTURED home park's 7 method of doing business includes, but is not limited to,any1 8 OR MORE of the following: 9 (a) Conversion to amobileMANUFACTURED home park condo- 10 minium pursuant to the condominium act,Act No. 59 of the Public11Acts of 1978, being sections 559.101 to 559.275 of the Michigan12Compiled Laws1978 PA 59, MCL 559.101 TO 559.275. 13 (b) Conversion to total rental of bothmobileMANUFACTURED 14 home site and park-ownedmobileMANUFACTURED homes. 15 (c) Changes in use of the land on which themobile16 MANUFACTURED home park is located. 17 (3) Notwithstanding subsection (1) or (2), amobile18 MANUFACTURED home park may require amobileMANUFACTURED home 19 to be moved to a comparable site within themobileMANUFACTURED 20 home park, at the expense of themobileMANUFACTURED home 21 park. 22 (4) If, after termination of a resident's tenancy for just 23 cause as provided in chapter 57a of the revised judicature act of 24 1961,Act No. 236 of the Public Acts of 1961, being sections25600.5771 to 600.5785 of the Michigan Compiled Laws1961 PA 236, 26 MCL 600.5771 TO 600.5785, the resident of amobileMANUFACTURED 27 home park sells his or hermobileMANUFACTURED home to the 03828'99 * 29 1 owner or operator of themobileMANUFACTURED home park, or to 2anyAN entity in which the owner or operator hasanyAN 3 interest, the residentshall haveHAS the right to have the 4mobileMANUFACTURED home's value appraised and, if so 5 appraised, the sale price of themobileMANUFACTURED home shall 6 not be less than the appraised value. 7 (5) Except as provided in subsection (1)(a), amobile8 MANUFACTURED home park owner or operator, or both, has the burden 9 of going forward to show compliance with subsection (1). 10 Sec. 28b. AmobileMANUFACTURED home park rule that does 11 either of the following shall not be enforced against a resident, 12 unless the rule was proposed and in force before the resident was 13 approved for tenancy in themobileMANUFACTURED home park: 14 (a) Prohibits those children who were previously approved 15 under prior park rules from residing in themobileMANUFACTURED 16 home park. A rule prohibiting children, or additional children, 17 shall not be enforced against persons who were residents of the 18mobileMANUFACTURED home park at the time the rule was adopted 19 until after 1 year's notice to those persons. 20 (b) Prohibits a resident from keeping those petswhich21 THAT were previously approved under prior park rules, except dan- 22 gerous animals. 23 Sec. 28c. (1) A lease or rental agreement or rules or regu- 24 lations that are adopted pursuant to a lease or rental agreement 25 may include a provision that requires liquidated damages to be 26 awarded to the prevailing party in a 03828'99 * 30 1 contested action to terminate a tenancy in amobile2 MANUFACTURED home park for just cause under section 5775 of the 3 revised judicature act of 1961,Act No. 236 of the Public Acts4of 1961, being section 600.5775 of the Michigan Compiled Laws5 1961 PA 236, MCL 600.5775. 6 (2) A provision allowed under subsection (1) may require 7 liquidated damages of not more than $500.00 for an action in the 8 district court and not more than $300.00 for each appellate 9 level. Liquidated damages shall not be construed to be a 10 penalty. 11 Sec. 29. A utility company shall notify the department 10 12 days before shutoff of service for nonpayment, including sewer, 13 water, gas, or electric service, when the service is being sup- 14 plied to the licensed owner or operator of amobile15 MANUFACTURED home park or seasonalmobileMANUFACTURED home 16 park for the use and benefit of the park's tenants. 17 Sec. 30. (1) After December 31, 1978, everymobile18 MANUFACTURED home located in this stateshall beIS subject to 19 the certificate of title provisions of this act, except forany20 A newmobileMANUFACTURED home owned by a manufacturer or 21 licensedmobileMANUFACTURED home dealer and held for sale. 22 (2) After December 31, 1978, a certificate of title for a 23mobileMANUFACTURED home issued by the secretary of state 24 before January 1, 1979, pursuant toAct No. 300 of the Public25Acts of 1949, being sections 257.1 to 257.923 of the Michigan26Compiled Laws shall beTHE MICHIGAN VEHICLE CODE, 1949 PA 300, 27 MCL 257.1 TO 257.923, IS consideredto bea certificate of 03828'99 * 31 1 title issued by the department under this act andshall beIS 2 subject to all of the provisions of this actrespecting3 REGARDING certificates of title. 4 (3) After December 31, 1978, amobileMANUFACTURED home 5 shall not be sold or transferred except by transfer of the cer- 6 tificate of title for themobileMANUFACTURED home pursuant to 7 this act. 8 Sec. 30a. (1) An owner of amobileMANUFACTURED home 9whichTHAT is subject to the certificate of title provisions of 10 this act shallmake applicationAPPLY to the department for the 11 issuance of a certificate of title for themobileMANUFACTURED 12 home upon the appropriate form furnished by the department, 13 accompanied by a fee of $45.00 oranyA lesser amount estab- 14 lished pursuant to section 9(5). The application shall bear the 15 signature of the owner written in ink, shall be acknowledged by 16 the owner before a person authorized to take acknowledgments, and 17 shall contain ALL OF THE FOLLOWING: 18 (a) The name and address of the owner. 19 (b) A description of themobileMANUFACTURED home, includ- 20 ing the name of the manufacturer, the year and model, and the 21 manufacturer's serial number or, in the absence of a serial 22 number, a number assigned by the department. A number assigned 23 by the department shall be permanently placed on themobile24 MANUFACTURED home in the manner and place designated by the 25 department. 03828'99 * 32 1 (c) A statement of the names and addresses of the holders of 2anysecurity interests in themobileMANUFACTURED home, in 3 the order oftheirpriority. 4 (d) Further information as may reasonably be required by the 5 department to enable it to determine whether the owner of the 6mobileMANUFACTURED home is entitled to a certificate of title 7 for themobileMANUFACTURED home. 8 (2) If the department is not satisfied as to the ownership 9 of themobileMANUFACTURED home, before issuing a certificate 10 of title for it, the department may require the applicant to file 11 a properly executed surety bond in a form prescribed by the 12 department, executed by the applicant and a company authorized to 13 conduct a surety business in this state. The bond shall be in an 14 amount equal to twice the value of themobileMANUFACTURED home 15 as determined by the department and shall be conditioned to 16 indemnify or reimburse the department,anyA prior owner,any17 A holder of a security interest in themobileMANUFACTURED 18 home, andanyA subsequent purchaser of themobile19 MANUFACTURED home, and their successors in interest, against 20anyexpense, loss, or damage, including reasonable attorney's 21 fees, by reason of the issuance of a certificate of title to the 22mobileMANUFACTURED home or on account ofanyA defect in the 23 right, title, or interest of the applicant in and to themobile24 MANUFACTURED home. Each interested person has a right of action 25 to recover on the bond for a breach of its conditions, but the 26 aggregate liability of the surety to all personsshallDOES not 27 exceed the amount of the bond. The bond shall be returned at the 03828'99 * 33 1 end of 5 years, or before 5 years if the currently valid 2 certificate of title is surrendered to the department, unless the 3 department has received notificationof the pendency ofTHAT an 4 action IS PENDING to recover on the bond. 5 (3) The department shall examine and determine the genuine- 6 ness, regularity, and legality of an application for a certifi- 7 cate of title for amobileMANUFACTURED home and of any other 8 application lawfully made to the department., andTHE 9 DEPARTMENT may in all casesmake investigationINVESTIGATE or 10 require additional information asmay be consideredIT 11 CONSIDERS necessary., andTHE DEPARTMENT shall rejectanyAN 12 application if not satisfied of the genuineness, regularity, or 13 legality of it or the truth ofanyA statement contained in it, 14 or for any other reason, when authorized by law. 15 (4) The fee for obtaining a duplicate, replacement, or cor- 16 rected title, for placing or terminating a lien on the title, or 17 for placing a name on the title is $15.00 orany otherA lesser 18 amount established pursuant to section 9(5). 19 Sec. 30b. (1) The department upon receipt of the required 20 application and fees shall issue a certificate of title except as 21 otherwise provided. 22 (2) The certificate of title shall containuponON its 23 face the date issued, the name and address of the owner, a 24 description of themobileMANUFACTURED home as determined by 25 the department, a statement of all security interests in the 26mobileMANUFACTURED home as set forth in the application, the 03828'99 * 34 1 date on which the application was filed, and other information as 2 the department may require. 3 (3) The certificate of title shall containuponON the 4 reverse side forms for assignment of title or interest and war- 5 ranty of title by the owner with space for notation of security 6 interests in themobileMANUFACTURED home at the time of a 7 transfer to be signed in ink, and other forms as the department 8 may consider necessary to facilitate the effective administration 9 of this section. The certificate shall bear the seal of the 10 department. 11 (4) The certificate of title shall be mailed or delivered to 12 the owner or other person as the owner may direct in a separate 13 instrument, in the formas the department shall prescribeTHE 14 DEPARTMENT PRESCRIBES. 15 Sec. 30c. (1) If the owner of amobileMANUFACTURED home 16 transfers or assigns the owner's title or interest to the 17mobileMANUFACTURED home, the owner shallindorseENDORSE on 18 the back of the certificate of title an assignment of the 19mobileMANUFACTURED home with warranty of title with a state- 20 ment of all security interests in themobileMANUFACTURED home. 21, andTHE OWNER shallcauseMAIL OR DELIVER the certificate 22to be mailed or deliveredto the department or to the purchaser 23 or transferee at the time of the delivery to the purchaser or 24 transferee of themobileMANUFACTURED home. 25 (2) Upon the delivery of amobileMANUFACTURED home and 26 the transfer, sale, or assignment of the title or interest in a 27mobileMANUFACTURED home, the effective date of the transfer of 03828'99 * 35 1 title or interestshall beIS the date of execution of either 2 the application for title or the certificate of title. 3 (3) The purchaser or transferee, unless the purchaser or 4 transferee is a licensed dealer, shallcause to be presented5 PRESENT to the department the certificate of title accompanied by 6the1 OF THE FOLLOWING applicablefee, as followsFEES: 7 (a) Except as provided in subdivision (b) or (c), $45.00. 8 (b) Except as provided in subdivision (c), $15.00, if the 9 sale, assignment, or other transfer will require the addition or 10 deletion from the certificate of title ofany1 OR MORE of the 11 following: 12 (i) The owner's spouse. 13 (ii) A person related to the owner within the fourth degree 14 of consanguinity as computed by the civil law method. 15 (iii) A person related to the owner's spouse within the 16 fourth degree of consanguinity as computed by the civil law 17 method. 18 (c)Any otherA lesser amount established pursuant to 19 section 9(5). 20 (4) Upon presentation of the certificate of title accom- 21 panied by the applicable fee, a new certificate of title shall be 22 issued. A certificate of title issued under subsection (3) and 23 this subsection shall be mailed or delivered to the owner orany24otherANOTHER person AS the ownermay directDIRECTS in a sep- 25 arate instrument in a form asprescribed bythe department 26 PRESCRIBES. 03828'99 * 36 1 (5) If a security interest is reserved or created at the 2 time of the transfer, the parties shall comply with section 30d. 3 (6) If the transferee of amobileMANUFACTURED home is a 4mobileMANUFACTURED home dealer who holds themobile5 MANUFACTURED home for resale, the dealershallIS notbe6 required to forward the certificate of title to the department, 7 but the dealer shall retain possession of the assigned certifi- 8 cate of title. Upon transfer of the dealer's title or interest 9 to another person, the dealer shall execute and acknowledge an 10 assignment and warranty of title upon the certificate of title 11 and deliver it to the person to whom the transfer is made if the 12 person is a licensed dealer; otherwise, application for a new 13 title shall be made by the transferor as provided in section 14 30a(1). 15 Sec. 30d. (1) If an owner named in a certificate of title 16 creates a security interest in themobileMANUFACTURED home 17 described in the certificate, ALL OF THE FOLLOWING APPLY: 18 (a) The owner shall immediately execute an application in 19 the formprescribed bythe department PRESCRIBES showing the 20 name and address of the holder of the security interest and 21 deliver the certificate of title, application, and a fee of $1.00 22 together with a copy of the applicationwhichTHAT need not be 23 signed, to the holder of the security interest. 24 (b) The holder of the security interest shallcauseMAIL 25 OR DELIVER the certificate of title, application, and fee and the 26 copy of the applicationto be mailed or deliveredto the 27 department. 03828'99 * 37 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, application, 5 and the required fee, the department shall issue a new certifi- 6 cate in the form provided by section 30b setting forth the name 7 and address of each holder of a security interest in the mobile 8 home for which a termination statement has not been filed and the 9 dateon whichTHAT the application first stating the security 10 interest was filed, and mail the certificate to the owner. 11 (2) A holder of a security interest may assign, absolutely 12 or otherwise, the security interest to a person other than the 13 owner without affecting the interest of the owner or the validity 14 of the security interest, but a person without notice of the 15 assignment is protected in dealing with the holder of the secur- 16 ity interest as the holder of the security interest. The 17 assignee may have the certificate of titleindorsedENDORSED 18 with the assignee named as the holder of the security interest by 19 providing the department with a copy of the assignment instrument 20 but the failure of the assignee to do soshallDOES not affect 21 the validity of the security interest or the assignment of the 22 security interest. 23 (3) The filing under this section or under section 30a of an 24 application for a certificate of title showing the name and 25 address of the holder of a security interest in amobile26 MANUFACTURED home is equivalent to the filing of a financing 27 statement with respect to the security interest under article 9 03828'99 * 38 1 of the uniform commercial code,Act No. 174 of the Public Acts2of 1962, being sections 440.9101 to 440.9994 of the Michigan3Compiled Laws1962 PA 174, MCL 440.9101 TO 440.9994. 4 (4)WhenIF there is not an outstanding obligation or com- 5 mitment to make advances, incur obligations, or otherwise give 6 value, secured or to be secured by a security interest in a 7mobileMANUFACTURED home, the secured party shall, within 10 8 days after satisfaction of the obligation and, in any event 9 within 30 days, execute a termination statement in the form 10prescribed bythe department PRESCRIBES and mail or deliver the 11 termination statement to the owner or other person as the owner 12 may direct. The owner other than a dealer holding themobile13 MANUFACTURED home for resale, shall promptlycauseMAIL OR 14 DELIVER the certificate, all termination statements, and an 15 application for certificate of title accompanied by a fee of 16 $1.00to be mailed or deliveredto the department., which17 THE DEPARTMENT shall issue a new certificate. 18 Sec. 30e. (1) If the interest of the owner in amobile19 MANUFACTURED home is terminated by the enforcement of a security 20 agreement, the transferee of the owner's interest shall promptly 21 mail or deliver to the department the last certificate of title, 22 if the transfereehas possession ofPOSSESSES it;,an appli- 23 cation for a new certificate in the formprescribed bythe 24 department,PRESCRIBES; and an affidavit made by or on behalf 25 of the holder of the security interest so enforced that the 26mobileMANUFACTURED home was repossessed, that the interest of 27 the owner was lawfully terminated by enforcement of the security 03828'99 * 39 1 agreement, and whether the holder has delivered the last 2 certificate of title to the transferee of the owner's interest, 3 naming the transferee, or if not, the reason delivery was not 4 made and thethenlocation of the certificate of title so far 5 as known to the holder. If the holder of the security interest 6 succeeds to the interest of the owner and holds themobile7 MANUFACTURED home for resale, the holder shall not be required to 8 secure a new certificate of title but, upon transfer to another 9 person, shall promptly mail or deliver to the transferee or to 10 the department the certificate, if in the holder's possession, 11 the affidavit, and other documents required to be sent to the 12 department by the transferee. 13 (2) If the interest of the owner in amobileMANUFACTURED 14 home is terminated by sale pursuant to a levy of execution, 15 attachment, or other process of a court, the transferee of the 16 owner's interest shall promptly mail or deliver to the department 17 the last certificate of title, if the transfereehas possession18ofPOSSESSES it;,an application for a new certificate of 19 title in the formprescribed bythe department PRESCRIBES; and 20 an affidavit, upon a formprescribed bythe department 21 PRESCRIBES, made by the officer of the court who conducted the 22 sale, setting forth the date of the sale,andthe name of the 23 purchaser, and whether the officer has delivered the certificate 24 of title to the purchaserandOR, if not, the reason delivery 25 was not made and thethenlocation of the certificate of title 26 so far as known to the officer. 03828'99 * 40 1 (3) A person holding a certificate of titlewhereIF the 2 interest of the owner named in the certificate has been 3 terminated in the manner provided by subsection (1) or (2) shall 4 mail or deliver the certificate to the department upon its 5 request. The delivery of the certificate pursuant to the request 6 of the department does not affect the rights of the person sur- 7 rendering the certificate, and the action of the department in 8 issuing a new certificate of title is not conclusiveupon any9 ON THE rights of an owner or holder of a security interest named 10 in the old certificate. 11 (4) The department, upon receipt of an application for a new 12 certificate of title by a transferee in the manner provided by 13 subsection (1) or (2), with proof of the transfer, the required 14 fee, andanyother documents required by law, shall issue a new 15 certificate of title in the name of the transferee as owner, set- 16 ting forth all security interests noted on the last certificate 17 of title as having priority over the security agreement so 18 enforced and shall mail or deliver the new certificate to the 19 owner. If the outstanding certificate of title is not delivered, 20 the department shall make demand for the outstanding certificate 21 of title from the holder. 22 Sec. 30f. The department shall retain and appropriately 23 file every surrendered certificate of title. The file shall be 24 maintainedso as to permitIN A MANNER THAT PERMITS the tracing 25 of title of themobileMANUFACTURED home designated in a sur- 26 rendered certificate for a period of 10 years. 03828'99 * 41 1 Sec. 30g. (1) The department may cancel or refuse to issue 2 a certificate of title IF 1 OR MORE OF THE FOLLOWING APPLY: 3 (a)If theTHE department is satisfied that the certifi- 4 cate of title was fraudulently or erroneously issued. 5 (b)If theTHE department determines that the holder of 6 the certificate has made or is makinganunlawful use of the 7 certificate. 8 (c)If theTHE department determines that the required fee 9 has not been paid and the fee is not paid upon reasonable notice 10 or demand. 11 (d)If theTHE department is authorized underany other12 ANOTHER provision of this act. 13 (e)Upon receipt ofTHE DEPARTMENT RECEIVES notification 14 from another state or foreign country that a certificate of title 15 issued by the department has been surrendered by the owner in 16 conformity with the laws of the other state or foreign country. 17 (f)If itIT is shown by satisfactory evidence that deliv- 18 ery of amobileMANUFACTURED home in the possession of a dealer 19 was not made to the applicant to whom the certificate was 20 issued. 21 (2) Before a cancellation under subsection (1)(a), (b), or 22 (d) is made, the person affected shall be given notice and an 23 opportunity to be heard. 24 Sec. 30h. The commission in consultation with the secretary 25 of state shall promulgate rules, whichTHAT shall further 26 define and distinguish between the termmobileMANUFACTURED 27 home as used in this act and the term trailer coach as used in 03828'99 * 42 1 the Michigan vehicle code,Act No. 300 of the Public Acts of21949, being sections 257.1 to 257.923 of the Michigan Compiled3Laws1949 PA 300, MCL 257.1 TO 257.923. 4 Sec. 31. A person who offers, sells, or purchases a 5mobileMANUFACTURED home or equipment or amobile6 MANUFACTURED home site in violation of this act or the code may 7 have an action brought against him or her to rescind the transac- 8 tion and recover damages. 9 Sec. 38. (1) The department may issue an order to show 10 cause why an order imposing sanctions or penalties allowed under 11 this act should not be issued by the commission if the department 12 finds BOTH that the order is in the public interest,andany13 1 OR MORE of the following: 14 (a) An application filed pertaining to a license, a disclo- 15 sure statement, or a related document filed with the department 16 in connection with amobileMANUFACTURED home license,is 17 incomplete inanyA material respect or contains a statement 18whichTHAT is false or misleading, in the light of the circum- 19 stances under which it is made. 20 (b) A provision of this act, or a rule, order, or condition 21 lawfully imposed under this act, was not complied with or was 22 violated in connection with the offering by the person filing the 23 document; the developer, dealer, or operator; a partner, officer, 24 director, proprietor, or manager of the developer, dealer, or 25 operator; or a person directly or indirectly controlling, or 26 directly controlled by, the developer, dealer, or operator. 03828'99 * 43 1 (c) The project worked or tended to work a fraud or 2 deception or would so operate, or the project would create an 3 unreasonable risk to A prospectivetenantsTENANT, as defined 4 by rules promulgated by the commission. 5 (d) The developer, dealer, or operator; a partner, officer, 6 director, proprietor, or manager of the developer, dealer, or 7 operator; a person directly or indirectly controlling, or 8 directly controlled by, the developer, dealer, or operator; or a 9 person identified in the application for a license,or IN a 10 disclosure statement,was within thepast10 years 11 IMMEDIATELY PRECEDING THE DATE OF THE ORDER convicted of an 12 offense under this act,oris the subject of an administrative 13 order issued under this act, or had a civil judgment entered 14 against him or her as a result of a violation of this act or a 15 rule promulgated or order issued pursuant to this act, and the 16 department determines that the involvement of the person in the 17 sale or development of the project creates an unreasonable risk 18 to A prospectivetenantsTENANT ormobileA MANUFACTURED home 19purchasersPURCHASER. 20 (e) The developer, dealer, or operator; a partner, officer, 21 director, proprietor, or manager of the developer, DEALER, OR 22 OPERATOR; a person directly or indirectly controlling, or 23 directly controlled by, the developer, dealer, or operator; or a 24 person identified in the application for a license,or IN a 25 disclosure statement,was convicted of a violation, or WAS the 26 subject of an administrative order or civil judgment as a result 27 of a violation, of a statute regulating the offering of 03828'99 * 44 1 securities or franchises or licensing or regulating builders, 2 real estate brokers, or real estate salespersons, or WAS 3 CONVICTED of A violation of the land sales act,Act No. 286 of4the Public Acts of 1972, being sections 565.801 to 565.835 of the5Michigan Compiled Laws1972 PA 286, MCL 565.801 TO 565.835, or a 6 rule promulgated or an order issued under that act. 7 (f) The applicant's method of business, construction, devel- 8 opment, or sales includes or would include activitieswhich9 THAT are illegal. 10 (g) The applicant failed to pay the proper fee. 11 (h) The applicant failed to comply with the state warranty 12 laws. 13 (2)WhenIF it appears to the department that a person 14 engaged in an act or practice constituting a violation of this 15 act or a rule promulgated or order issued under this act, the 16 department may issue a notice to show cause why a cease and 17 desist order should not be issued. 18 (3) After 10 days' notice and opportunity for hearing, the 19 department may stop construction as to part or all of a project 20 if continuing the building will cause irreparable harm to resi- 21 dents and prospective residents of the project. 22 Sec. 43. (1) If, after notice and a hearing as provided in 23 the administrative procedures act of 1969,Act No. 306 of the24Public Acts of 1969, being sections 24.201 to 24.328 of the25Michigan Compiled Laws1969 PA 306, MCL 24.201 TO 24.328, a 26 person is determined to have violated this act, the commission 27 may impose 1 or more of the following penalties: 03828'99 * 45 1 (a) Censure. 2 (b) Probation. 3 (c) Placement of a limitation on a license. 4 (d) Suspension of a license. The commission may request the 5 appointment of a receiver when taking action under this 6 subdivision. 7 (e) Revocation of a license. The commission may request the 8 appointment of a receiver when taking action under this 9 subdivision. 10 (f) Denial of a license. 11 (g) A civil fine of not more than $10,000.00. 12 (h) A requirement that restitution be made. 13 (2) A fine collected under this section shall be deposited 14 with the state treasurer and credited to themobile home15 MANUFACTURED HOUSING commission fund. 16 (3) This section does not prohibit actions being taken under 17 other sections of this act. 18 (4) The pursuit in court of the lawful rights of a licensee 19 does not constitute a violation of this act, regardless of the 20 outcome of the court action. 21 Enacting section 1. Section 49 of the mobile home commis- 22 sion act, 1987 PA 96, MCL 125.2349, is repealed. 23 Enacting section 2. This amendatory act does not take 24 effect unless House Bill No. 5822 of the 90th Legislature is 25 enacted into law. 03828'99 * Final page. LTB