HOUSE BILL No. 5794


     March 13, 2002, Introduced by Rep. Hart 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, 4, 5, 6, 7, 9, 10, 18,

   21, 22, 23, 24, 25, 28, 30h, 35, 38, and 43 (MCL 125.2301,

   125.2302, 125.2304, 125.2305, 125.2306, 125.2307, 125.2309,

   125.2310, 125.2318, 125.2321, 125.2322, 125.2323, 125.2324,

   125.2325, 125.2328, 125.2330h, 125.2335, 125.2338, and 125.2343),

   section 10 as amended by 1992 PA 203, section 28 as amended by

   1993 PA 241, and section 38 as amended and section 43 as added by

   1988 PA 337; and to repeal acts and parts of acts.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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                                      TITLE

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             An act to  create a mobile home commission; to prescribe its

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        powers and duties and those of local governments; to  provide for

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        a mobile home code and the licensure, regulation, construction,


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        operation, and management of mobile home parks, the licensure and

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        regulation of retail sales dealers, warranties of mobile homes,

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        and service practices of dealers; to provide for the titling of

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        mobile homes; to prescribe the powers and duties of certain STATE

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        agencies and departments; to provide remedies and penalties; to

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        declare the act to be remedial;  to repeal this act on a specific

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        date;  and to repeal  certain  acts and parts of acts.

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             Sec. 1.  This act shall be known and may be cited as "the

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        mobile home  commission  act".

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             Sec. 2.  As used in this act:

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

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        12501 of the public health code,  Act No. 368 of the Public Acts

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        of 1978, being section 333.12501 of the Michigan Compiled Laws

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        1978 PA 368, MCL 333.12501.

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

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        promulgated  pursuant to  UNDER section 5.

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              (c) "Commission" means the mobile home code commission.

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             (C)  (d)  "Department" means the department of  commerce

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        CONSUMER AND INDUSTRY SERVICES.

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             (D) "DIRECTOR" MEANS THE DIRECTOR OF THE DEPARTMENT OF CON-

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        SUMER AND INDUSTRY SERVICES.

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

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        mobile home dealer, who for compensation installs or repairs

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        mobile homes.

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

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             (g) "Mobile home" means a structure, transportable in 1 or

27
        more sections,  which  THAT is built on a chassis and designed to



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

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        connected to the required utilities, and includes the plumbing,

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        heating, air-conditioning, and electrical systems contained in

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        the structure.

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

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        facturer engaged in the business of buying mobile homes for

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

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        sale, lease, rent, or exchange to customers.

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

10
        the control of a person upon which 3 or more mobile homes are

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        located on a continual, nonrecreational basis and  which  THAT is

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        offered to the public for that purpose regardless of whether a

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        charge is made  therefor  FOR THAT PURPOSE, together with  any  A

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        building, structure, enclosure, street, equipment, or facility

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        used or intended for use incident to the occupancy of a mobile

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        home.

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

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

19
        trust, or corporation, or  any  other legal entity or combination

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        of legal entities.

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             (l) "Recreational vehicle" means a vehicle primarily

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        designed and used as temporary living quarters for recreational,

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        camping, or travel purposes, including a vehicle having its own

24
        motor power or a vehicle mounted on or drawn by another vehicle.

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

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

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        homes are located on a continual or temporary basis but occupied



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        on a temporary basis only  ,  and  which  THAT is offered to the

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        public for that purpose regardless of whether a charge is made

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         therefor  FOR THAT PURPOSE, together with  any  A building,

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        enclosure, street, equipment, or facility used or intended for

 5
        use incident to the occupancy of a mobile home.  Seasonal mobile

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        home park does not include a campground licensed  pursuant to

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        UNDER sections 12501 to 12516 of the public health code,  Act

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        No. 368 of the Public Acts of 1978, being sections 333.12501 to

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        333.12516 of the Michigan Compiled Laws  1978 PA 368, MCL

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        333.12501 TO 333.12516.

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             (n) "Security interest", "security agreement", "secured

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        party", and "termination statement" have the same meanings as in

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        the uniform commercial code,  Act No. 174 of the Public Acts of

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        1962, being sections 440.1101 to 440.11102 of the Michigan

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        Compiled Laws  1962 PA 174, MCL 440.1101 TO 440.11102.

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

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        following:

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             (a) Promulgate rules to implement and administer this act.

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             (b) Act for the purpose of establishing a uniform policy

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        relating to all phases of mobile home businesses, mobile home

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        parks, and seasonal mobile home parks.

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             (c) Determine the sufficiency of local mobile home ordi-

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        nances  which  THAT are designed to provide local governments

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        with superintending control over mobile home businesses, mobile

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        home parks, or seasonal mobile homes parks.

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             (d) Conduct public hearings relating to the powers

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        prescribed in this subsection.



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             (2) The director  of commerce  or an authorized

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        representative of the director shall do all of the following:

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             (a) Administer the rules promulgated by the  commission

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        DEPARTMENT.

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             (b) Conduct hearings relating to violations of this act or

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        rules promulgated under this act.

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             (c) Make investigations to determine compliance with this

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        act and rules promulgated under this act.

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              (d) Provide assistance to the commission as the commission

10
        requires.

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             (3) The  commission  DEPARTMENT shall not act for the pur-

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        pose of regulating mobile homes that are not located within a

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        mobile home park or a seasonal mobile home park, except as

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

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        home dealers and the business practices of mobile home installers

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        and repairers.

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             Sec. 5.  (1) The  commission  DEPARTMENT shall promulgate

18
        the mobile home code subject to section 4.  The code shall con-

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        sist of rules governing all of the following:

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             (a) The licensure, density, layout, permits for construc-

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        tion, construction of mobile home parks including standards for

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        roads, utilities, open space, or proposed recreational facili-

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        ties, and safety measures sufficient to protect health, safety,

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        and welfare of mobile home park residents.  , except  THE RULES

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        DO NOT GOVERN water supply, sewage collection and treatment, and

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        drainage facilities  which are regulated by  THAT the department

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        of  public health  ENVIRONMENTAL QUALITY REGULATES.



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             (b) The business, sales, and service practices of mobile

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        home dealers.

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             (c) The business practices of mobile home installers and

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        repairers.

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             (d) The licensure and  regulations  REGULATION of mobile

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        home installers and repairers.

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             (e) The setup and installation of mobile homes inside mobile

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        home parks or seasonal mobile home parks.

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             (f) The regulation of the responsibilities, under the mobile

10
        home warranty, of the mobile home components manufacturer, the

11
        mobile home assembler or manufacturer, and the mobile home

12
        dealer, including the time period and relationships of each under

13
        the warranty, and the remedies available, if any, if the respon-

14
        sible parties cease to operate as a business.

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             (g) Abuses relating to all of the following:

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             (i) Consumer deposits, except utility deposits from consum-

17
        ers who are direct customers of utilities regulated by the

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        Michigan public service commission.

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             (ii) Detailed listing of furnishings and fixtures by a manu-

20
        facturer of a new mobile home or a mobile home dealer for a used

21
        mobile home.

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             (iii) Disclosure and delivery of manufacturer's warranties.

23
             (iv) Used mobile homes.  A mobile home dealer shall provide

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        detailed listing of its service records for used mobile homes

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         which  THAT are being sold by the dealer and  of which  THAT the

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        dealer has knowledge OF.





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             (h) Applications for and issuance of certificates of title

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        for mobile homes.

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             (2) As part of the code, the  commission  DEPARTMENT shall

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        also promulgate rules governing the licensure, density, layout,

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        permits for construction, and construction of seasonal mobile

 6
        home parks, including standards for roads, utilities, open space,

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        proposed recreational facilities, and safety measures sufficient

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        to protect the health, safety, and welfare of seasonal mobile

 9
        home park residents, except water supply, sewage collection and

10
        treatment, and drainage facilities  , which shall be regulated

11
        by  THAT the department of  public health  ENVIRONMENTAL QUALITY

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        REGULATES.

13
             (3)  The  FOR rules promulgated for seasonal mobile home

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        parks, THE DEPARTMENT may impose a less stringent standard than

15
        the rules promulgated for mobile home parks.

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             Sec. 6.  (1) The department of  public health  ENVIRONMENTAL

17
        QUALITY shall promulgate rules for mobile home parks and seasonal

18
        mobile home parks setting forth minimum standards regulating ALL

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        OF THE FOLLOWING:

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             (a) Water supply system.

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             (b) Sewage collection and disposal system.

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             (c) Drainage.

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             (d) Garbage and rubbish storage and disposal.

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             (e) Insect and rodent control.

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             (f) General operation, maintenance, and safety.

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             (g) Certification of compliance under section 17.





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             (2) Representatives of local government shall act in an

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        advisory capacity in the promulgation of the code.

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             (3) The  commission  DEPARTMENT shall consult with appropri-

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        ate state and local governments in developing the procedures for

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        effective coordination of efforts.  The  commission  DEPARTMENT

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        shall recommend procedures to the governor and the legislature

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        for coordinating state agency decisions and activities pertaining

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        to this act.

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             Sec. 7.  (1)  A local government which proposes a standard

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        related to mobile home parks or seasonal mobile home parks, or

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        related to mobile homes located within a mobile home park or a

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        seasonal mobile home park that is higher than the standard pro-

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        vided in this act or the code; or a standard related to the busi-

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        ness, sales, and service practices of mobile home dealers, or the

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        business of mobile home installers and repairers, that is higher

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        than the standard provided in this act or the code shall file the

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        proposed standard with the commission.  A LOCAL GOVERNMENT THAT

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        PROPOSES ANY OF THE FOLLOWING STANDARDS SHALL FILE THE PROPOSED

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        STANDARD WITH THE DEPARTMENT:

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             (A) A STANDARD RELATED TO MOBILE HOME PARKS OR SEASONAL

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        MOBILE HOME PARKS, OR MOBILE HOMES LOCATED WITHIN A MOBILE HOME

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        PARK OR A SEASONAL MOBILE HOME PARK, THAT IS HIGHER THAN A STAN-

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        DARD PROVIDED IN THIS ACT OR THE CODE.

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             (B) A STANDARD RELATED TO THE BUSINESS, SALES, AND SERVICE

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        PRACTICES OF MOBILE HOME DEALERS, OR THE BUSINESS OF MOBILE HOME

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        INSTALLERS AND REPAIRERS, THAT IS HIGHER THAN THE STANDARD

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        PROVIDED IN THIS ACT OR THE CODE.



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             (2) The  commission  DEPARTMENT may promulgate rules to

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        establish the criteria and procedure for implementation of A

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        higher  standards  STANDARD by a local government.  The

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         commission  DEPARTMENT shall review and approve the proposed

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        standard unless the standard is unreasonable, arbitrary, or not

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        in the public interest.  If the  commission  DEPARTMENT does not

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        approve or disapprove the proposed standard within 60 days after

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        it is filed,  with the commission,  the standard  shall be

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        considered  IS approved unless the local government grants the

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         commission  DEPARTMENT additional time to consider the

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        standard.  After the proposed standard is approved, the local

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        government may adopt the standard by ordinance.  The ordinance

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         shall  MUST relate to a specific section of the code.

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             (3)  (2)  A local government standard related to mobile

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        homes not located within a mobile home park or seasonal mobile

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        home park need not be filed with the  mobile home commission

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        DEPARTMENT, unless the standard relates to the business, sales,

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

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        mobile home installers and repairers.

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

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        as exclusionary to mobile homes generally whether the mobile

22
        homes are located inside or outside of mobile home parks or sea-

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        sonal mobile home parks.

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

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        standard for the setup or installation of mobile homes that is

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        incompatible with, or is more stringent than, either of the

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        following:



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             (a) The manufacturer's recommended setup and installation

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        specifications.

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             (b) The mobile home setup and installation standards promul-

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        gated by the federal department of housing and urban development

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        pursuant to the national manufactured housing construction and

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        safety standards act of 1974, TITLE VI OF THE HOUSING AND COMMU-

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        NITY DEVELOPMENT ACT OF 1974, PUBLIC LAW 93-383, 42 U.S.C. 5401

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        to 5426.

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

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        specifications or standards for foundations as set forth in sub-

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        section  (4)(a)  (5)(A) or (b), the local government standards

12
        for site-built housing  shall  apply.

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             (7)  (6)  A local government ordinance shall not contain

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        roof configuration standards or special use zoning requirements

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        that apply only to, or  excludes  THAT EXCLUDE, mobile homes.  A

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        local government ordinance shall not contain a manufacturing or

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        construction standard that is incompatible with, or is more

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        stringent than, a standard promulgated by the federal department

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        of housing and urban development  pursuant to  UNDER the national

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        manufactured housing construction and safety standards act of

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        1974, TITLE VI OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF

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        1974, PUBLIC LAW 93-383, 42 U.S.C. 5401 to 5426.  A local govern-

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        ment ordinance may include reasonable standards relating to

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        mobile homes located outside of mobile home parks or seasonal

25
        mobile home parks  which  THAT ensure that mobile homes compare

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        aesthetically to site-built housing located or allowed in the

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        same residential zone.



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             Sec. 9.  (1) The  commission  DEPARTMENT shall promulgate

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        rules to establish fees and charges for  the issuance of  ISSUING

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        licenses or permits under section 5.

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             (2) The fees and charges under this act shall be applied

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        solely to the implementation of  the  THIS act and  shall  con-

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        stitute the total funding for the  commission  DEPARTMENT'S

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        ENFORCEMENT OF THIS ACT, except as provided in  Act No. 243 of

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        the Public Acts of 1959, being sections 125.1035 to 125.1043 of

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        the Michigan Compiled Laws  1959 PA 243, MCL 125.1035 TO

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        125.1043.

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             (3)  A  THE DEPARTMENT SHALL NOT CHARGE A fee  shall not be

12
        charged  for an investigation conducted  pursuant to  UNDER sec-

13
        tion 36.

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             (4)  A  THE DEPARTMENT SHALL NOT CHARGE OR COLLECT A fee

15
         shall not be charged or collected by the commission  in excess

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        of that necessary to administer and enforce this act.

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             (5) The  commission  DEPARTMENT may promulgate rules to

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        adjust the fees established in subsection (1) and in sections 21,

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        30a, and 30c  such  SO that revenues obtained under this act

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        equal appropriations by the legislature for the purpose of admin-

21
        istering this act.  However, the adjusted fees shall not exceed

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        the fees stated in sections 21, 30a, and 30c.

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             Sec. 10.  Upon request and at reasonable charges as the

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         commission  DEPARTMENT prescribes, the department shall furnish

25
        to a person a reproduction  pursuant  ACCORDING to the records

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        media act, 1992 PA 116, MCL 24.401 TO 24.403, certified under the

27
        seal of office if requested, of a document that is retained as a



   06402'01                                  12

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        matter of public record, except that the department shall not

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        charge or collect a fee for a reproduction of a document fur-

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        nished to a public official for use in his or her official

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        capacity.

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             Sec. 18.  (1) A variance in the design and construction of a

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        mobile home park or seasonal mobile home park may be granted upon

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        notice of the request to the local government and the department

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        of  public health  ENVIRONMENTAL QUALITY at the time of filing

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        with the department.  of commerce.  If the local government

10
        grants a variance  which  THAT would permit activities violative

11
        of the minimum standards of the code, the local government shall

12
        file with the department a copy of the variance order and an

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        explanation of the reason for the granting of the order.  The

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        department may approve or disapprove the variance or revoke the

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        variance upon notice and hearing.

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             (2) After a public hearing the department may grant a spe-

17
        cific variance to a substantive requirement of the code if the

18
        literal application of the substantive requirement would result

19
        in an exceptional, practical difficulty to the applicant, and if

20
        the specific condition justifying the variance is neither so gen-

21
        eral nor recurrent in nature as to make an amendment of the code

22
        with respect to the condition reasonably practical or desirable.

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             (3) The department may attach in writing a condition in con-

24
        nection with the granting of a variance that in its judgment is

25
        necessary to protect the health, safety, and welfare of the

26
        people of this state.  The variance shall not exceed the minimum

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        necessary to alleviate the exceptional, practical difficulty.



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             (4) A variance to a local ordinance, zoning requirement, or

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        local rule may be granted only by a local government.

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             (5) A variance to a rule promulgated under this act may be

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        granted only by the  commission  DEPARTMENT.

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             Sec. 21.  (1) A mobile home dealer shall not engage in the

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        retail sale of a mobile home without a license.

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             (2) A mobile home dealer, mobile home installer, or repairer

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        may obtain an initial or renewal license by filing with the

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         commission  DEPARTMENT an application together with consent to

10
        service of process in a form prescribed by the  commission pursu-

11
        ant to  DEPARTMENT UNDER section 35.

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             (3) An initial or renewal license under this act shall be

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        issued for not more than 1 year.  Licenses  shall  expire on

14
        October 1.

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             (4) The annual license fee for a mobile home dealer is

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        $150.00 or any other lesser amount established  pursuant to

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        UNDER section 9(5).

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             (5) The annual license fee for a mobile home installer or

19
        repairer is $50.00 or  any other  A lesser amount established

20
         pursuant to  UNDER section 9(5).

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             (6) A licensed mobile home dealer, mobile home installer, or

22
        repairer may file an application for the license of a successor,

23
        whether or not the successor is then in existence, for the unex-

24
        pired portion of the year.  The  commission  DEPARTMENT may grant

25
        or deny the application.

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             (7) A licensee who submits a timely application for renewal

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        of a license and pays the appropriate fee may continue  sales



   06402'01                                  14

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        THE SALE of mobile homes unless notified that the application for

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        renewal is not approved.

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             Sec. 22.  The  commission  DEPARTMENT may promulgate rules

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        to require a licensed mobile home dealer to post a surety bond in

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        an amount up to $10,000.00 for each sales location and may deter-

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        mine conditions of the bond.  An appropriate deposit of cash or

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        securities shall be accepted in lieu of a bond  which  THAT is

 8
        required.

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             Sec. 23.  A licensed mobile home dealer shall make and keep

10
        accounts  ,  and other records as the  commission  DEPARTMENT

11
        prescribes by rule.  The records required shall be preserved for

12
        3 years unless the  commission  DEPARTMENT otherwise prescribes

13
        by rule for particular types of records.  If the information con-

14
        tained in a record filed with the  commission  DEPARTMENT is or

15
        becomes inaccurate or incomplete in any material respect, the

16
        licensee promptly shall file a correcting amendment.

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             Sec. 24.  A mobile home dealer shall not DO 1 OR MORE OF THE

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        FOLLOWING:

19
             (a) Advertise or represent a mobile home as other than cal-

20
        endar or model year.

21
             (b) Misapply consumer deposits on a mobile home or a mobile

22
        home park.

23
             (c) Fail to place deposits, down payments, or similar pay-

24
        ments for the purchase or right to purchase a mobile home in a

25
        separate escrow account subject to return upon cancellation of

26
        the purchase order by the prospective purchaser under the rules

27
        or orders as the  commission  DEPARTMENT promulgates or issues



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        unless the dealer shall post a bond or a deposit of cash or

 2
        securities for protection of these payments in an amount accept-

 3
        able to the  commission  DEPARTMENT.

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             (d) Fail to disclose to the department  any  direct or indi-

 5
        rect business relationships with financial and loan institutions,

 6
        banks, and insurance companies.

 7
             Sec. 25.  (1) The  commission  DEPARTMENT shall promulgate

 8
        rules relating to the responsibility of the mobile home dealer,

 9
        mobile home installer, and  the  mobile home park or seasonal

10
        mobile home park owner for installation and setup of a mobile

11
        home.

12
             (2) A person licensed under  any  1 OR MORE of the following

13
        acts  shall  IS not  be  required to be licensed as a mobile home

14
        installer and repairer in order to perform work on mobile homes

15
        for which the person is licensed, unless the work performed also

16
        includes the setup, installation, or general repair of mobile

17
        homes:

18
             (a) The electrical administrative act,  Act No. 217 of the

19
        Public Acts of 1956, being sections 338.881 to 338.892 of the

20
        Michigan Compiled Laws  1956 PA 217, MCL 338.881 TO 338.892.

21
             (b)  Act No. 266 of the Public Acts of 1929, being sections

22
        338.901 to 338.917 of the Michigan Compiled Laws  1929 PA 266,

23
        MCL 338.901 TO 338.917.

24
             (c) The Forbes mechanical contractors act,  Act No. 192 of

25
        the Public Acts of 1984, being sections 338.971 to 338.988 of the

26
        Michigan Compiled Laws  1984 PA 192, MCL 338.971 TO 338.988.





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             (3) The electrical administrative act,  Act No. 217 of the

 2
        Public Acts of 1956, being sections 338.881 to 338.892 of the

 3
        Michigan Compiled Laws, Act No. 266 of the Public Acts of 1929,

 4
        being sections 338.901 to 338.917 of the Michigan Compiled Laws

 5
        1956 PA 217, MCL 338.881 TO 338.892, 1929 PA 266, MCL 338.901 TO

 6
        338.917, and the Forbes mechanical contractors act,  Act No. 192

 7
        of the Public Acts of 1984, being sections 338.971 to 338.988 of

 8
        the Michigan Compiled Laws  1984 PA 192, MCL 338.971 TO 338.988,

 9
         shall  DO not apply to the setup or installation of a mobile

10
        home and the following connections, or replacement or repair of

11
        the following connections, by a licensed mobile home installer

12
        and repairer:

13
             (a) Factory-installed electrical wiring, devices, appli-

14
        ances, or appurtenances to available electrical meters or

15
        pedestals.

16
             (b) Factory-installed piping, fixtures, plumbing appliances,

17
        and plumbing appurtenances to sanitary drainage or storm drainage

18
        facilities, venting systems, or public or private water supply

19
        systems.

20
             (c) Factory-installed process piping, heating and cooling

21
        equipment, and systems or supply lines to available service

22
        meters or mains.

23
             Sec. 28. (1) An owner or operator of a mobile home park or

24
        seasonal mobile home park shall not engage, or permit an employee

25
        or agent to engage, in  any  1 OR MORE of the following unfair or

26
        deceptive methods, acts, or practices:





   06402'01                                  17

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             (a) Directly or indirectly charging or collecting from a

 2
        person an entrance fee.

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             (b) Requiring a person to directly or indirectly purchase a

 4
        mobile home from another person as a condition of entrance to, or

 5
        lease or rental of, a mobile home park or seasonal mobile home

 6
        park space.

 7
             (c) Directly or indirectly charging or collecting  from a

 8
        person a refundable or nonrefundable exit fee.

 9
             (d) Requiring or coercing a person to purchase, rent, or

10
        lease goods or services from another person as a condition of

11
         any  1 OR MORE of the following:

12
             (i) Entering into a park or lease.

13
             (ii) Selling a mobile home through the park owner or opera-

14
        tor, or his or her agent or designee upon leaving a mobile home

15
        park or seasonal mobile home park.

16
             (iii) Renting space in a mobile home park or seasonal mobile

17
        home park.

18
             (e) Directly or indirectly charging or collecting from a

19
        person money or other thing of value for electric, fuel, or water

20
        service without the use of that service by a resident or tenant

21
        being first accurately and consistently measured, unless that

22
        service is included in the rental charge as an incident of

23
        tenancy.

24
             (f) Conspiring, combining, agreeing, aiding, or abetting in

25
        the employment of a method, act, or practice that violates this

26
        act.





   06402'01                                  18

 1
             (g) Renting or leasing a mobile home or site in a mobile

 2
        home park or seasonal mobile home park without offering a written

 3
        lease.

 4
             (h) Subject to section 28a, prohibiting a resident from

 5
        selling his or her mobile home on-site for a price determined by

 6
        that resident, if the purchaser qualifies for tenancy and the

 7
        mobile home meets the conditions of written park rules or

 8
        regulations.  This subdivision does not apply to seasonal mobile

 9
        home parks.

10
             (i) Subject to reasonable mobile home park or seasonal

11
        mobile home park rules governing the location, size, and style of

12
        exterior television antenna, prohibiting a person from installing

13
        or maintaining an exterior television antenna on a mobile home

14
        within the park unless the mobile home park or seasonal mobile

15
        home park provides park residents, without charge, a central

16
        television antenna for UHF-VHF reception.

17
             (2) A tenant of a mobile home park or seasonal mobile home

18
        park may bring an action on his or her own behalf for a violation

19
        of this section.

20
             (3) If the  commission  DEPARTMENT has reason to suspect

21
        that the owner of a mobile home park or seasonal mobile home park

22
        is engaged in conduct that violates existing water utility tar-

23
        iffs or qualifies the owner of a mobile home park or seasonal

24
        mobile home park for regulation as a water utility, the

25
         commission  DEPARTMENT shall promptly send a written report of

26
        the alleged violation to the Michigan public service commission.





   06402'01                                  19

 1
             Sec. 30h.  The  commission  DEPARTMENT, in consultation with

 2
        the secretary of state, shall promulgate rules  , which shall

 3
        THAT further define and distinguish between the term mobile home

 4
        as used in this act and the term trailer coach as used in the

 5
        Michigan vehicle code,  Act No. 300 of the Public Acts of 1949,

 6
        being sections 257.1 to 257.923 of the Michigan Compiled Laws

 7
        1949 PA 300, MCL 257.1 TO 257.923.

 8
             Sec. 35.  (1) A person who applies for a license or permit

 9
        under this act  which  THAT is for other than a domestic corpora-

10
        tion shall file with the  commission  DEPARTMENT, in a form the

11
         commission  DEPARTMENT prescribes, an irrevocable consent

12
        appointing the  commission  DEPARTMENT to be its attorney to

13
        receive service of lawful process in  any  A noncriminal action

14
        or proceeding against it or its successor, executor, or adminis-

15
        trator,  which  THAT arises under this act or a rule promulgated

16
        or order issued under this act after the consent is filed, with

17
        the same force and validity as if served personally on the person

18
        filing the consent.

19
             (2)  When  IF a person, including a nonresident of this

20
        state, engages in conduct prohibited or made actionable by this

21
        act or a rule promulgated or order issued under this act, whether

22
        or not consent to service of process was filed and personal

23
        jurisdiction over him or her cannot otherwise be obtained in this

24
        state, that conduct  shall be considered  IS equivalent to his or

25
        her appointment of the  commission  DEPARTMENT to be his or her

26
        attorney to receive service of lawful process in a noncriminal

27
        action or proceeding against him or her or his or her successor,



   06402'01                                  20

 1
        executor, or administrator  which  THAT grows out of that conduct

 2
        and  which  THAT is brought under this act or a rule promulgated

 3
        or order issued under this act, with the same force and validity

 4
        as if served on the person personally.

 5
             (3) Service under subsection (1) or (2) may be made by

 6
        filing a copy of the process  in the office of the commission

 7
        WITH THE DEPARTMENT, together with a $25.00 fee.  The service is

 8
        not effective unless the plaintiff, which may be the  commission

 9
        DEPARTMENT in an action or proceeding instituted by it, immedi-

10
        ately sends notice of the service and a copy of the process by

11
        registered or certified mail to the defendant or respondent at

12
        his or her last known address or takes other steps  which  THAT

13
        are reasonably calculated to give actual notice, and the

14
        plaintiff's affidavit or compliance with this section is filed in

15
        the case on or before the return day of the process, if any, or

16
        within  such further  ADDITIONAL time  as  IF the court allows.

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 depart-

20
        ment finds BOTH that the order is in the public interest  ,  and

21
         any  1 OR MORE of the following:

22
             (a) An application filed pertaining to a license, a disclo-

23
        sure statement, or a related document filed with the department

24
        in connection with a mobile home license, is incomplete in any

25
        material respect or contains a statement  which  THAT is false or

26
        misleading, in the light of the circumstances under which it is

27
        made.



   06402'01                                  21

 1
             (b) A provision of this act, or a rule, order, or condition

 2
        lawfully imposed under this act, was not complied with or was

 3
        violated in connection with the offering by the person filing the

 4
        document; the developer, dealer, or operator; a partner, officer,

 5
        director, proprietor, or manager of the developer, dealer, or

 6
        operator; or a person directly or indirectly controlling, or

 7
        directly controlled by, the developer, dealer, or operator.

 8
             (c) The project worked or tended to work a fraud or decep-

 9
        tion or would so operate, or the project would create an unrea-

10
        sonable risk to prospective tenants, as defined by rules promul-

11
        gated by the  commission  DEPARTMENT.

12
             (d) The developer, dealer, or operator; a partner, officer,

13
        director, proprietor, or manager of the developer, dealer, or

14
        operator; a person directly or indirectly controlling or directly

15
        controlled by the developer, dealer, or operator; or a person

16
        identified in the application for a license, or a disclosure

17
        statement, was CONVICTED OF AN OFFENSE UNDER THIS ACT within the

18
         past  10 years  convicted of an offense under this act

19
        IMMEDIATELY PRECEDING THE DATE OF THE ORDER, or is the subject of

20
        an administrative order issued under this act, or had a civil

21
        judgment entered against him or her as a result of a violation of

22
        this act or a rule promulgated or order issued  pursuant to

23
        UNDER this act, and the department determines that the involve-

24
        ment of the person in the sale or development of the project cre-

25
        ates an unreasonable risk to prospective tenants or mobile home

26
        purchasers.





   06402'01                                  22

 1
             (e) The developer, dealer, or operator; a partner, officer,

 2
        director, proprietor, or manager of the developer; a person

 3
        directly or indirectly controlling or directly controlled by the

 4
        developer, dealer, or operator; or a person identified in the

 5
        application for a license, or a disclosure statement, was con-

 6
        victed of a violation or the subject of an administrative order

 7
        or civil judgment as a result of a violation of a statute regu-

 8
        lating the offering of securities or franchises or licensing or

 9
        regulating builders, real estate brokers, or real estate sales-

10
        persons, or of violation of the land sales act,  Act No. 286 of

11
        the Public Acts of 1972, being sections 565.801 to 565.835 of the

12
        Michigan Compiled Laws  1972 PA 286, MCL 565.801 TO 565.835, or a

13
        rule promulgated or an order issued under that act.

14
             (f) The applicant's method of business, construction, devel-

15
        opment, or sales includes or would include activities  which

16
        THAT are illegal.

17
             (g) The applicant failed to pay the proper fee.

18
             (h) The applicant failed to comply with the state warranty

19
        laws.

20
             (2)  When  IF it appears to the department that a person

21
        engaged in an act or practice constituting a violation of this

22
        act or a rule promulgated or order issued under this act, the

23
        department may issue a notice to show cause why a cease and

24
        desist order should not be issued.

25
             (3) After 10 days' notice and opportunity for hearing, the

26
        department may stop construction as to part or all of a project





   06402'01                                  23

 1
        if continuing the building will cause irreparable harm to

 2
        residents and prospective residents of the project.

 3
             Sec. 43.  (1) If, after notice and a hearing as provided in

 4
        the administrative procedures act of 1969,  Act No. 306 of the

 5
        Public Acts of 1969, being sections 24.201 to 24.328 of the

 6
        Michigan Compiled Laws  1969 PA 306, MCL 24.201 TO 24.328, a

 7
        person is determined to have violated this act, the  commission

 8
        DEPARTMENT 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  DEPARTMENT

13
        may request the appointment of a receiver when taking action

14
        under this subdivision.

15
             (e) Revocation of a license.  The  commission  DEPARTMENT

16
        may request the appointment of a receiver when taking action

17
        under this subdivision.

18
             (f) Denial of a license.

19
             (g) A civil fine of not more than $10,000.00.

20
             (h) A requirement that restitution be made.

21
             (2) A fine collected under this section shall be deposited

22
        with the state treasurer and credited to the mobile home

23
         commission  fund.

24
             (3) This section does not prohibit actions being taken under

25
        other sections of this act.







   06402'01                                  24

 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.  Sections 3 and 49 of the mobile home

 5
        commission act, 1987 PA 96, MCL 125.2303 and 125.2349, are

 6
        repealed.












































   06402'01          Final page.                            LAJ