HOUSE BILL No. 5297
October 21, 1997, Introduced by Rep. Byl and referred to the Committee on Commerce.
A bill to amend 1987 PA 96, entitled
"The mobile home commission act,"
by amending the title and sections 1, 2, 3, 4, 5, 6, 7, 11, 12,
13, 14, 16, 16a, 17, 18, 21, 22, 23, 24, 25, 27, 28, 28a, 28b,
28c, 29, 30, 30a, 30b, 30c, 30d, 30e, 30f, 30g, 30h, 31, 38, and
43 (MCL 125.2301, 125.2302, 125.2303, 125.2304, 125.2305,
125.2306, 125.2307, 125.2311, 125.2312, 125.2313, 125.2314,
125.2316, 125.2316a, 125.2317, 125.2318, 125.2321, 125.2322,
125.2323, 125.2324, 125.2325, 125.2327, 125.2328, 125.2328a,
125.2328b, 125.2328c, 125.2329, 125.2330, 125.2330a, 125.2330b,
125.2330c, 125.2330d, 125.2330e, 125.2330f, 125.2330g, 125.2330h,
125.2331, 125.2338, and 125.2343), section 28 as amended by 1993
PA 241 and sections 28a, 28b, 28c, and 43 as added and section 38
as amended by 1988 PA 337.
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THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 TITLE
2 An act to create a mobile MANUFACTURED home commission; to
3 prescribe its powers and duties and those of local governments;
4 to provide for a mobile MANUFACTURED home code and the licen-
5 sure, regulation, construction, operation, and management of
6 mobile MANUFACTURED home parks, the licensure and regulation of
7 retail sales dealers RETAILERS, warranties of mobile
8 MANUFACTURED homes, and INSTALLATION service practices of
9 dealers INSTALLERS AND SERVICERS; to provide for the titling
10 OWNERSHIP of mobile MANUFACTURED homes; to prescribe the powers
11 and duties of certain agencies and departments; to provide reme-
12 dies and penalties; to declare the act to be remedial; to repeal
13 this act on a specific date; and to repeal certain acts and
14 parts of acts.
15 Sec. 1. This act shall be known and may be cited as "the
16 mobile MANUFACTURED home commission act".
17 Sec. 2. As used in this act:
18 (a) "Campground" means a campground as defined in section
19 12501 of the public health code, Act No. 368 of the Public Acts
20 of 1978, being section 333.12501 of the Michigan Compiled Laws
21 1978 PA 368, MCL 333.12501.
22 (b) "Code" means all or a part of the mobile MANUFACTURED
23 home code promulgated pursuant to UNDER section 5.
24 (c) "Commission" means the mobile MANUFACTURED home code
25 commission.
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1 (d) "Department" means the department of commerce CONSUMER
2 AND INDUSTRY SERVICES.
3 (e) "Installer and repairer SERVICER" means a person,
4 including a mobile MANUFACTURED home dealer RETAILER, who for
5 compensation installs or repairs mobile SERVICES MANUFACTURED
6 homes.
7 (f) "Local government" means a county or municipality.
8 (g) "Mobile "MANUFACTURED home" means a structure, trans-
9 portable in 1 or more sections, which THAT is built on a chas-
10 sis and designed to be used as a dwelling with or without per-
11 manent foundation, when connected to the required utilities, and
12 includes the plumbing, heating, air-conditioning, and electrical
13 systems contained in the structure. FOR A MANUFACTURED HOME MAN-
14 UFACTURED AFTER JUNE 15, 1976, "MANUFACTURED HOME" MEANS A STRUC-
15 TURE CONSTRUCTED IN ACCORDANCE WITH THE NATIONAL MANUFACTURED
16 HOUSING CONSTRUCTION AND SAFETY STANDARDS ACT OF 1974, TITLE VI
17 OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974, PUBLIC LAW
18 93-383, 42 U.S.C. 5401 TO 5426.
19 (h) "Mobile "MANUFACTURED home dealer RETAILER" means a
20 person other than a manufacturer engaged in the business of
21 buying mobile MANUFACTURED homes for resale, exchange, lease,
22 or rent or offering mobile MANUFACTURED homes for sale, lease,
23 rent, or exchange to customers.
24 (i) "Mobile "MANUFACTURED home park COMMUNITY" means a
25 parcel or tract of land under the control of a person upon which
26 3 or more mobile MANUFACTURED homes are located on a continual,
27 nonrecreational basis and which THAT is offered to the public
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1 for that purpose regardless of whether a charge is made
2 therefor FOR PLACING A MANUFACTURED HOME ON THE LAND, together
3 with any building, structure, enclosure, street, equipment, or
4 facility used or intended for use incident to the occupancy of a
5 mobile MANUFACTURED home.
6 (j) "Municipality" means a city, village, or township.
7 (k) "Person" means an individual, partnership, association,
8 trust, or corporation, or any other legal entity or combination
9 of legal entities.
10 (l) "Recreational vehicle" means a vehicle primarily
11 designed and used as temporary living quarters for recreational,
12 camping, or travel purposes, including a vehicle having its own
13 motor power or a vehicle mounted on or drawn by another vehicle.
14 (m) "Seasonal mobile MANUFACTURED home park COMMUNITY"
15 means a parcel or tract of land under the control of a person
16 upon which 3 or more mobile MANUFACTURED homes are located on a
17 continual or temporary basis but occupied on a temporary basis
18 only, and which THAT is offered to the public for that purpose
19 regardless of whether a charge is made therefor FOR PLACING A
20 MANUFACTURED HOME ON THE LAND, together with any building, enclo-
21 sure, street, equipment, or facility used or intended for use
22 incident to the occupancy of a mobile MANUFACTURED home.
23 Seasonal mobile MANUFACTURED home park does not include a camp-
24 ground licensed pursuant to UNDER sections 12501 to 12516 of
25 the public health code, Act No. 368 of the Public Acts of 1978,
26 being sections 333.12501 to 333.12516 of the Michigan Compiled
27 Laws 1978 PA 368, MCL 333.12501 TO 333.12516.
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1 (n) "Security interest", "security agreement", "secured
2 party", and "termination statement" have the same meanings as in
3 the uniform commercial code, Act No. 174 of the Public Acts of
4 1962, being sections 440.1101 to 440.11102 of the Michigan
5 Compiled Laws 1962 PA 174, MCL 440.1101 TO 440.11102.
6 Sec. 3. (1) The mobile MANUFACTURED home commission is
7 created within the department. of commerce.
8 (2) The commission consists of 11 members appointed by the
9 governor with the advice and consent of the senate, each of whom
10 shall be a citizen of this state.
11 (3) The members of the commission shall include each of the
12 following:
13 (a) A representative of an organization whose membership
14 consists of mobile MANUFACTURED home residents.
15 (b) A representative of financial institutions.
16 (c) Two operators of a licensed mobile MANUFACTURED home
17 park COMMUNITY having 100 or more sites and 1 operator of a
18 licensed mobile MANUFACTURED home park COMMUNITY having less
19 than 100 sites.
20 (d) A representative of organized labor.
21 (e) An elected official of a local government.
22 (f) A licensed mobile MANUFACTURED home dealer
23 RETAILER.
24 (g) One resident of a licensed mobile MANUFACTURED home
25 park COMMUNITY having 100 or more sites and 1 resident of a
26 licensed mobile MANUFACTURED home park COMMUNITY having less
27 than 100 sites.
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1 (h) A manufacturer of mobile MANUFACTURED homes.
2 (4) A person appointed to be a member under subsection
3 (3)(a), (d), (e), (g), or a member of that person's immediate
4 family shall not have more than a 1% ownership interest in or
5 income benefit from a manufacturer of mobile MANUFACTURED
6 homes, a retail seller of mobile MANUFACTURED homes, a licensed
7 mobile MANUFACTURED home park COMMUNITY, or a supplier of
8 ancillary products or services to the mobile MANUFACTURED home
9 industry.
10 (5) The term of each member shall be for IS 3 years. A
11 vacancy in the office of a member shall be filled by the governor
12 for the remainder of the unexpired term, not more than 1 month
13 after the vacancy is created, in the same manner as the original
14 appointment.
15 (6) The per diem compensation of the commission and the
16 schedule for reimbursement of expenses shall be established annu-
17 ally by the legislature.
18 (7) Six members of the commission constitute a quorum for
19 all purposes, notwithstanding the existence of a vacancy in the
20 commission's membership. Action may be taken by the commission
21 by a vote of a majority of the members appointed and serving.
22 Meetings of the commission may be called by the chairperson or by
23 3 members on 3 business days' actual notice. At least 1 meeting
24 shall be held each calendar quarter. The commission may hold
25 meetings anywhere in this state.
26 (8) The commission shall elect a member of the commission as
27 its chairperson and another member as its vice-chairperson. The
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1 duties and powers of the chairperson and vice-chairperson shall
2 be as prescribed in the commission's rules.
3 (9) A member of the commission may be removed from office by
4 the governor for inefficiency, neglect of duty, or misconduct or
5 malfeasance in office. A member of the commission who has a
6 direct pecuniary interest in a matter before the commission shall
7 disclose that interest before the commission taking action with
8 respect to the matter, which disclosure shall become a part of
9 the record of the commission's official proceedings.
10 Sec. 4. (1) The commission may do all of the following:
11 (a) Promulgate rules to implement and administer this act.
12 (b) Act for the purpose of establishing a uniform policy
13 relating to all phases of mobile MANUFACTURED home businesses,
14 mobile MANUFACTURED home parks COMMUNITIES, and seasonal
15 mobile MANUFACTURED home parks COMMUNITIES.
16 (c) Determine the sufficiency of local mobile MANUFACTURED
17 home ordinances which THAT are designed to provide local gov-
18 ernments with superintending control over mobile homes
19 MANUFACTURED HOME businesses, mobile MANUFACTURED home parks
20 COMMUNITIES, or seasonal mobile homes parks MANUFACTURED HOME
21 COMMUNITIES.
22 (d) Conduct public hearings relating to the powers pre-
23 scribed in this subsection.
24 (2) The director of commerce THE DEPARTMENT or an autho-
25 rized representative of the director shall do all of the
26 following:
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1 (a) Administer the rules promulgated by the commission.
2 (b) Conduct hearings relating to violations of this act or
3 rules promulgated under this act.
4 (c) Make investigations to determine compliance with this
5 act and rules promulgated under this act.
6 (d) Provide assistance to the commission as the commission
7 requires.
8 (3) The commission shall not act for the purpose of regulat-
9 ing mobile MANUFACTURED homes that are not located within a
10 mobile MANUFACTURED home park COMMUNITY or a seasonal
11 mobile MANUFACTURED home park COMMUNITY, except as relates to
12 the business, sales, and service practices of mobile
13 MANUFACTURED home dealers RETAILERS and the business AND
14 INSTALLATION practices of mobile MANUFACTURED home installers
15 and repairers SERVICERS.
16 Sec. 5. (1) The commission shall promulgate the mobile
17 MANUFACTURED home code subject to section 4. The code shall con-
18 sist of rules governing all of the following:
19 (a) The licensure, density, layout, permits for construc-
20 tion, AND construction of mobile MANUFACTURED home parks
21 COMMUNITIES including standards for roads, utilities, open space,
22 or proposed recreational facilities, and safety measures suffi-
23 cient to protect health, safety, and welfare of mobile
24 MANUFACTURED home park COMMUNITY residents, except water
25 supply, sewage collection and treatment, and drainage facilities
26 which THAT are regulated by the department of public
27 COMMUNITY health.
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1 (b) The business, sales, and service practices of mobile
2 MANUFACTURED home dealers RETAILERS.
3 (c) The business practices of mobile MANUFACTURED home
4 installers and repairers SERVICERS.
5 (d) The licensure and regulations of mobile MANUFACTURED
6 home installers and repairers SERVICERS.
7 (e) The setup and installation of mobile MANUFACTURED
8 homes inside mobile MANUFACTURED home parks COMMUNITIES or
9 seasonal mobile MANUFACTURED home parks COMMUNITIES.
10 (f) The regulation of the responsibilities, under the
11 mobile MANUFACTURED home warranty, of the mobile MANUFACTURED
12 home components manufacturer, the mobile MANUFACTURED home
13 assembler or manufacturer, and the mobile MANUFACTURED home
14 dealer RETAILER, including the time period and relationships of
15 each under the warranty, and the remedies available, if any, if
16 the responsible parties cease to operate as a business.
17 (g) Abuses relating to all of the following:
18 (i) Consumer CUSTOMER deposits, except utility deposits
19 from consumers CUSTOMERS who are direct customers of utilities
20 regulated by the Michigan public service commission.
21 (ii) Detailed listing of furnishings and fixtures by a manu-
22 facturer of a new mobile MANUFACTURED home or a mobile
23 MANUFACTURED home dealer RETAILER for a used mobile PREOWNED
24 MANUFACTURED home.
25 (iii) Disclosure and delivery of manufacturer's warranties.
26 (iv) Used mobile PREOWNED MANUFACTURED homes. A mobile
27 MANUFACTURED home dealer RETAILER shall provide A detailed
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1 listing of its service records for used mobile PREOWNED
2 MANUFACTURED homes which THAT are being sold by the dealer
3 RETAILER and of which the dealer RETAILER has knowledge.
4 (h) Applications for and issuance of certificates of title
5 OWNERSHIP for mobile MANUFACTURED homes.
6 (2) As part of the code, the commission shall also promul-
7 gate rules governing the licensure, density, layout, permits for
8 construction, and construction of seasonal mobile MANUFACTURED
9 home parks COMMUNITIES, including standards for roads, utili-
10 ties, open space, proposed recreational facilities, and safety
11 measures sufficient to protect the health, safety, and welfare of
12 seasonal mobile MANUFACTURED home park COMMUNITY residents,
13 except water supply, sewage collection and treatment, and drain-
14 age facilities , which shall be THAT ARE regulated by the
15 department of public health ENVIRONMENTAL QUALITY.
16 (3) The rules promulgated for seasonal mobile MANUFACTURED
17 home parks COMMUNITIES may impose a less stringent standard
18 than the rules promulgated for mobile MANUFACTURED home parks
19 COMMUNITIES.
20 Sec. 6. (1) The department of public health ENVIRONMENTAL
21 QUALITY shall promulgate rules for mobile MANUFACTURED home
22 parks COMMUNITIES and seasonal mobile MANUFACTURED home
23 parks COMMUNITIES setting forth minimum standards regulating:
24 (a) Water supply system.
25 (b) Sewage collection and disposal system.
26 (c) Drainage.
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1 (d) Garbage and rubbish storage and disposal.
2 (e) Insect and rodent control.
3 (f) General operation, maintenance, and safety.
4 (g) Certification of compliance under section 17.
5 (2) Representatives of local government shall act in an
6 advisory capacity in the promulgation of the code.
7 (3) The commission shall consult with appropriate state and
8 local governments in developing the procedures for effective
9 coordination of efforts. The commission shall recommend proce-
10 dures to the governor and the legislature for coordinating state
11 agency decisions and activities pertaining to this act.
12 Sec. 7. (1) A local government which THAT proposes a
13 standard related to mobile MANUFACTURED home parks
14 COMMUNITIES or seasonal mobile MANUFACTURED home parks
15 COMMUNITIES, or related to mobile MANUFACTURED homes located
16 within a mobile MANUFACTURED home park COMMUNITY or a sea-
17 sonal mobile MANUFACTURED home park COMMUNITY, that is higher
18 than the standard provided in this act or the code; or a standard
19 related to the business, sales, and service practices of mobile
20 MANUFACTURED home dealers RETAILERS, or the business AND
21 INSTALLATION PRACTICES of mobile MANUFACTURED home installers
22 and repairers SERVICERS, that is higher than the standard pro-
23 vided in this act or the code shall file the proposed standard
24 with the commission. The commission may promulgate rules to
25 establish the criteria and procedure for implementation of higher
26 standards by a local government. The commission shall review and
27 approve the proposed standard unless the standard is
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1 unreasonable, arbitrary, or not in the public interest. If the
2 commission does not approve or disapprove the proposed standard
3 within 60 days after it is filed with the commission, the stan-
4 dard shall be considered approved unless the local government
5 grants the commission additional time to consider the standard.
6 After the proposed standard is approved, the local government may
7 adopt the standard by ordinance. The ordinance shall relate to a
8 specific section of the code.
9 (2) A local government standard related to mobile
10 MANUFACTURED homes not located within a mobile MANUFACTURED
11 home park COMMUNITY or seasonal mobile MANUFACTURED home
12 park COMMUNITY need not be filed with the mobile MANUFACTURED
13 home commission, unless the standard relates to the business,
14 sales, and service practices of mobile MANUFACTURED home
15 dealers RETAILERS, or the business AND INSTALLATION PRACTICES
16 of mobile MANUFACTURED home installers and repairers
17 SERVICERS.
18 (3) A local government ordinance shall not be designed as
19 exclusionary to mobile MANUFACTURED homes generally whether the
20 mobile MANUFACTURED homes are located inside or outside of
21 mobile MANUFACTURED home parks COMMUNITIES or seasonal
22 mobile MANUFACTURED home parks COMMUNITIES.
23 (4) A local government ordinance shall not contain a stan-
24 dard for the setup or installation of mobile MANUFACTURED homes
25 that is incompatible with, or is more stringent than, either of
26 the following:
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1 (a) The manufacturer's recommended setup and installation
2 specifications.
3 (b) The mobile MANUFACTURED home setup and installation
4 standards promulgated by the federal department of housing and
5 urban development pursuant to UNDER the national manufactured
6 housing construction and safety standards act of 1974, TITLE VI
7 OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974, PUBLIC LAW
8 93-383, 42 U.S.C. 5401 to 5426.
9 (5) In the absence of any setup or installation specifica-
10 tions or standards for foundations as set forth in subsection
11 (4)(a) or (b), the local government standards for site-built
12 housing shall apply.
13 (6) A local government ordinance shall not contain roof con-
14 figuration standards or special use zoning requirements that
15 apply only to, or excludes EXCLUDE, mobile MANUFACTURED
16 homes. A local government ordinance shall not contain a manufac-
17 turing or construction standard that is incompatible with, or is
18 more stringent than, a standard promulgated by the federal
19 department of housing and urban development pursuant to UNDER
20 the national manufactured housing construction and safety stan-
21 dards act of 1974, TITLE VI OF THE HOUSING AND COMMUNITY DEVELOP-
22 MENT ACT OF 1974, PUBLIC LAW 93-383 42 U.S.C. 5401 to 5426. A
23 local government ordinance may include reasonable standards
24 relating to mobile MANUFACTURED homes located outside of
25 mobile MANUFACTURED home parks COMMUNITIES or seasonal
26 mobile MANUFACTURED home parks which COMMUNITIES THAT ensure
27 that mobile MANUFACTURED homes compare aesthetically to
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1 site-built housing located or allowed in the same residential
2 zone.
3 Sec. 11. (1) A person who desires to develop a mobile
4 MANUFACTURED home park COMMUNITY or a seasonal mobile
5 MANUFACTURED home park COMMUNITY shall submit a preliminary
6 plan to the DEPARTMENT OF ENVIRONMENTAL QUALITY AND TO THE appro-
7 priate municipality, local health department, county road com-
8 mission, and county drain commissioner for preliminary approval.
9 The preliminary plan shall include the location, THE layout, THE
10 general design, and a general description of the project. The
11 preliminary plan shall not include detailed construction plans.
12 (2) The municipality may grant preliminary approval if the
13 proposed mobile MANUFACTURED home park COMMUNITY or seasonal
14 mobile MANUFACTURED home park COMMUNITY conforms to applica-
15 ble laws and local ordinances not in conflict with this act and
16 laws and ordinances relative to:
17 (a) Land use and zoning.
18 (b) Municipal water supply, sewage service, and drainage.
19 (c) Compliance with local fire ordinances and state fire
20 laws.
21 (3) The county drain commissioner shall review and may
22 approve outlet drainage. The county road commission shall review
23 and may approve ingress and egress roads. The county road com-
24 mission and the county drain commissioner shall adopt and publish
25 standards to implement this subsection. The county road commis-
26 sion and the county drain commissioner shall DO not have
27 authority as to interior streets and drainage in the mobile
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1 MANUFACTURED home park COMMUNITY or seasonal mobile
2 MANUFACTURED home park COMMUNITY, unless the streets or drains
3 are dedicated to the public.
4 (4) The local health department OF ENVIRONMENTAL QUALITY
5 shall grant preliminary approval , under the guidance of the
6 department of public health, for on-site water and sewage serv-
7 ice and general site suitability.
8 (5) If a reviewing agency as provided in this section has
9 not returned the preliminary plan to the developer, either
10 approved, modified, or disapproved, within 60 days after it
11 receives the preliminary plan, the preliminary plan shall be IS
12 considered approved.
13 (6) Coordination of approvals by state and local governments
14 shall be provided by the director of public health
15 ENVIRONMENTAL QUALITY before it THE DEPARTMENT OF ENVIRONMENTAL
16 QUALITY may grant construction approval.
17 (7) The developer shall submit the preliminary approval with
18 the final plans to the department of public health
19 ENVIRONMENTAL QUALITY for review before the department of
20 commerce CONSUMER AND INDUSTRY SERVICES may issue a construc-
21 tion permit.
22 Sec. 12. (1) When all preliminary approvals are made, the
23 developer shall submit the legal documents and the final plans
24 draft to the department.
25 (2) The department shall review the filing and within 90
26 days after filing issue its approval or disapproval. Upon the
27 approval of all the reviewing agencies, the department shall
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1 issue a permit to construct the mobile MANUFACTURED home park
2 COMMUNITY or seasonal mobile MANUFACTURED home park
3 COMMUNITY.
4 Sec. 13. (1) A person shall not construct a mobile
5 MANUFACTURED home park COMMUNITY or seasonal mobile
6 MANUFACTURED home park COMMUNITY without obtaining a permit
7 issued by the department.
8 (2) Construction may begin upon the granting of a permit to
9 construct by the department.
10 Sec. 14. Upon completion of the construction of the
11 mobile MANUFACTURED home park COMMUNITY or seasonal mobile
12 MANUFACTURED home park COMMUNITY, the owner or operator of the
13 park COMMUNITY and a registered professional engineer or archi-
14 tect shall file with the department an affidavit certifying that
15 the mobile MANUFACTURED home park COMMUNITY or seasonal
16 mobile MANUFACTURED home park COMMUNITY, lot, and work were
17 completed in accordance with the approved specifications and
18 plans.
19 Sec. 16. (1) A person shall not operate a mobile
20 MANUFACTURED home park COMMUNITY or seasonal mobile
21 MANUFACTURED home park COMMUNITY without a license.
22 (2) Upon completion, review, and approval of certifications,
23 the department shall grant a license to operate a mobile
24 MANUFACTURED home park COMMUNITY or seasonal mobile
25 MANUFACTURED home park COMMUNITY.
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1 (3) An annual license shall be granted and renewed by the
2 department based upon the certifications and recommendations of
3 the appropriate agencies and local governments.
4 (4) If a person submits a timely application for renewal of
5 a license and pays the appropriate fee, the person may continue
6 to operate a mobile MANUFACTURED home park COMMUNITY or sea-
7 sonal mobile MANUFACTURED home park COMMUNITY unless notified
8 that the application for renewal is not approved.
9 (5) A campground which THAT is currently licensed under
10 sections 12501 to 12516 of the public health code, Act No. 368
11 of the Public Acts of 1978, being sections 333.12501 to 333.12516
12 of the Michigan Compiled Laws 1978 PA 368, MCL 333.12501 TO
13 333.12516, THAT was previously licensed under the licensing pro-
14 visions of Act No. 243 of the Public Acts of 1959, being sec-
15 tions 125.1035 to 125.1043 of the Michigan Compiled Laws 1959 PA
16 243, MCL 125.1035 TO 125.1043, as a seasonal trailer park, and
17 which THAT currently meets the seasonal trailer park construc-
18 tion standards under Act No. 243 of the Public Acts of 1959
19 1959 PA 243, MCL 125.1035 TO 125.1043, may apply for and shall be
20 licensed as a seasonal mobile MANUFACTURED home park
21 COMMUNITY under this act if the campground meets all other
22 requirements for licensure under this act as a seasonal mobile
23 MANUFACTURED home park COMMUNITY.
24 Sec. 16a. Mobile MANUFACTURED homes located in a seasonal
25 mobile MANUFACTURED home park COMMUNITY may be occupied on a
26 full-time basis from April 1 to October 31, but shall not be
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1 occupied for more than 15 consecutive days in any 30-day period
2 from November 1 to March 31.
3 Sec. 17. (1) The department of public health
4 ENVIRONMENTAL QUALITY or its authorized representative shall con-
5 duct an annual physical inspection of mobile MANUFACTURED home
6 parks COMMUNITIES and seasonal mobile MANUFACTURED home
7 parks COMMUNITIES in accordance with standards established by
8 the department of public health ENVIRONMENTAL QUALITY. If the
9 mobile MANUFACTURED home park COMMUNITY or seasonal mobile
10 MANUFACTURED home park COMMUNITY is approved, the department of
11 public health ENVIRONMENTAL QUALITY shall issue a certification
12 of compliance to the department of commerce CONSUMER AND INDUS-
13 TRY SERVICES that the park COMMUNITY is licensable.
14 (2) Except for purposes of issuing a license or renewing a
15 license pursuant to UNDER this act, a local government may
16 SHALL not make an inspection unless it has reason to believe that
17 this act, the code, or rules promulgated pursuant to UNDER this
18 act were violated.
19 Sec. 18. (1) A variance in the design and construction of a
20 mobile MANUFACTURED home park COMMUNITY or seasonal mobile
21 MANUFACTURED home park COMMUNITY may be granted upon notice of
22 the request to the local government and the department of public
23 health ENVIRONMENTAL QUALITY, IF THE VARIANCE HAS OR MAY HAVE AN
24 IMPACT ON DEPARTMENT OF ENVIRONMENTAL QUALITY RULES, at the time
25 of filing with the department. of commerce. If the local gov-
26 ernment grants a variance which would permit activities violative
27 of the minimum standards of the code, the local government shall
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1 file with the department a copy of the variance order and an
2 explanation of the reason for the granting of the order. The
3 department may approve or disapprove the variance or revoke the
4 variance upon notice and hearing.
5 (2) After a public hearing, the department COMMISSION may
6 grant a specific variance to a substantive requirement of the
7 code if the literal application of the substantive requirement
8 would result in an exceptional, practical difficulty to the
9 applicant, and if the specific condition justifying the variance
10 is neither so general nor recurrent in nature as to make an
11 amendment of the code with respect to the condition reasonably
12 practical or desirable.
13 (3) The department COMMISSION may attach in writing a con-
14 dition in connection with the granting of a variance that in its
15 judgment is necessary to protect the health, safety, and welfare
16 of the people of this state. The variance shall not exceed the
17 minimum necessary to alleviate the exceptional, practical
18 difficulty.
19 (4) A variance to a local ordinance, zoning requirement, or
20 local rule may be granted only by a local government.
21 (5) A variance to a rule promulgated under this act may be
22 granted only by the commission.
23 Sec. 21. (1) A mobile MANUFACTURED home dealer RETAILER
24 shall not engage in the retail sale of a mobile MANUFACTURED
25 home without a license.
26 (2) A mobile MANUFACTURED home dealer, mobile RETAILER,
27 OR A MANUFACTURED home installer , or repairer SERVICER, may
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1 obtain an initial or renewal license by filing with the
2 commission an application together with consent to service of
3 process in a form prescribed by the commission pursuant to
4 UNDER section 35.
5 (3) An initial or renewal license under this act shall be
6 issued for not more than 1 year. Licenses shall expire on
7 October 1.
8 (4) The annual license fee for a mobile MANUFACTURED home
9 dealer RETAILER is $150.00 or any other lesser amount estab-
10 lished pursuant to UNDER section 9(5).
11 (5) The annual license fee for a mobile MANUFACTURED home
12 installer or repairer is $50.00 or any other lesser amount estab-
13 lished pursuant to UNDER section 9(5).
14 (6) A licensed mobile MANUFACTURED home dealer, mobile
15 RETAILER, OR A MANUFACTURED home installer , or repairer
16 SERVICER, may file an application for the license of a successor,
17 whether or not the successor is then in existence, for the unex-
18 pired portion of the year. The commission may grant or deny the
19 application.
20 (7) A licensee who submits a timely application for renewal
21 of a license and pays the appropriate fee may continue sales of
22 mobile MANUFACTURED homes unless notified that the application
23 for renewal is not approved.
24 Sec. 22. The commission may promulgate rules to require a
25 licensed mobile MANUFACTURED home dealer RETAILER to post a
26 surety bond in an amount up to $10,000.00 for each sales location
27 and may determine conditions of the bond. An appropriate deposit
03444'97
21
1 of cash or securities shall be accepted in lieu of a REQUIRED
2 bond. which is required.
3 Sec. 23. A licensed mobile MANUFACTURED home dealer
4 RETAILER shall make and keep accounts, and other records as the
5 commission prescribes by rule. The records required shall be
6 preserved for 3 years unless the commission otherwise prescribes
7 by rule for particular types of records. If the information con-
8 tained in a record filed with the commission is or becomes inac-
9 curate or incomplete in any material respect, the licensee
10 promptly shall file a correcting amendment.
11 Sec. 24. A mobile MANUFACTURED home dealer RETAILER
12 shall not DO THE FOLLOWING:
13 (a) Advertise or represent a mobile MANUFACTURED home as
14 other than calendar or model year.
15 (b) Misapply consumer CUSTOMER deposits on a mobile
16 MANUFACTURED home or a mobile MANUFACTURED home park
17 COMMUNITY.
18 (c) Fail to place deposits, down payments, or similar pay-
19 ments for the purchase or right to purchase a mobile
20 MANUFACTURED home in a separate escrow account subject to return
21 upon cancellation of the purchase order by the prospective pur-
22 chaser under the rules or orders as the commission promulgates or
23 issues unless the dealer shall post RETAILER POSTS a bond or a
24 deposit of cash or securities for protection of these payments in
25 an amount acceptable to the commission.
03444'97
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1 (d) Fail to disclose to the department any direct or
2 indirect business relationships with financial and loan
3 institutions, banks, and insurance companies.
4 Sec. 25. (1) The commission shall promulgate rules relating
5 to the responsibility of the mobile MANUFACTURED home dealer,
6 mobile RETAILER, THE MANUFACTURED home installer AND SERVICER,
7 and the mobile MANUFACTURED home park COMMUNITY or seasonal
8 mobile MANUFACTURED home park COMMUNITY owner for installa-
9 tion and setup of a mobile MANUFACTURED home.
10 (2) A person licensed under any of the following acts
11 shall IS not be required to be licensed as a mobile
12 MANUFACTURED home installer and repairer SERVICER in order to
13 perform work on mobile MANUFACTURED homes for which the person
14 is licensed, unless the work performed also includes the setup,
15 installation, or general repair of mobile MANUFACTURED homes:
16 (a) The electrical administrative act, Act No. 217 of the
17 Public Acts of 1956, being sections 338.881 to 338.892 of the
18 Michigan Compiled Laws 1956 PA 217, MCL 338.881 TO 338.892.
19 (b) Act No. 266 of the Public Acts of 1929, being sections
20 338.901 to 338.917 of the Michigan Compiled Laws 1929 PA 266,
21 MCL 338.901 TO 338.917.
22 (c) The Forbes mechanical contractors act, Act No. 192 of
23 the Public Acts of 1984, being sections 338.971 to 338.988 of the
24 Michigan Compiled Laws 1984 PA 192, MCL 338.971 TO 338.988.
25 (3) The electrical administrative act, Act No. 217 of the
26 Public Acts of 1956, being sections 338.881 to 338.892 of the
27 Michigan Compiled Laws, Act No. 266 of the Public Acts of 1929,
03444'97
23
1 being sections 338.901 to 338.917 of the Michigan Compiled Laws
2 1956 PA 217, MCL 338.881 TO 338.892, 1929 PA 266, MCL 338.901 TO
3 338.917, and the Forbes mechanical contractors act, Act No. 192
4 of the Public Acts of 1984, being sections 338.971 to 338.988 of
5 the Michigan Compiled Laws, shall 1984 PA 192, MCL 338.971 TO
6 338.988, DO not apply to the setup or installation of a mobile
7 MANUFACTURED home and the following connections, or replacement
8 or repair of the following connections, by a licensed mobile
9 MANUFACTURED home installer and repairer SERVICER:
10 (a) Factory-installed electrical wiring, devices, appli-
11 ances, or appurtenances to available electrical meters or
12 pedestals.
13 (b) Factory-installed piping, fixtures, plumbing appliances,
14 and plumbing appurtenances to sanitary drainage or storm drainage
15 facilities, venting systems, or public or private water supply
16 systems.
17 (c) Factory-installed process piping, heating and cooling
18 equipment, and systems or supply lines to available service
19 meters or mains.
20 Sec. 27. (1) A person shall not, in IN connection with
21 the offer, sale, purchase, or rental of a mobile MANUFACTURED
22 home, mobile MANUFACTURED home site, or RELATED equipment,
23 relating thereto A PERSON SHALL NOT DO EITHER OF THE
24 FOLLOWING:
25 (a) Employ a devise, scheme, or artifice to defraud.
26 (b) Make an untrue statement of material fact or omit to
27 state a material fact necessary to make the statement not
03444'97
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1 misleading, in the light of the circumstances under which it is
2 made.
3 (2) A person shall not willfully authorize, direct, or aid
4 in publication, advertisement, distribution, or circulation of a
5 statement or representation concerning a mobile MANUFACTURED
6 home, mobile MANUFACTURED home site, or RELATED equipment
7 relating thereto, which THAT misrepresents the facts concerning
8 the mobile MANUFACTURED home, mobile MANUFACTURED home site,
9 or RELATED equipment. relating thereto.
10 (3) A person with knowledge that an advertisement, pamphlet,
11 prospectus, or letter concerning a mobile MANUFACTURED home,
12 mobile MANUFACTURED home site, or RELATED equipment relating
13 thereto contains a written statement that is false or fraudulent
14 , shall not issue, circulate, publish, or distribute the adver-
15 tisement, pamphlet, prospectus, or letter concerning a mobile
16 MANUFACTURED home, mobile MANUFACTURED home site, or RELATED
17 equipment. relating thereto.
18 (4) A person shall not willfully make any A material mis-
19 representation in the sale of a mobile MANUFACTURED home,
20 mobile MANUFACTURED home site, or RELATED equipment. relating
21 thereto.
22 Sec. 28. (1) An owner or operator of a mobile MANUFACTURED
23 home park COMMUNITY or seasonal mobile MANUFACTURED home
24 park COMMUNITY shall not engage, or permit an employee or agent
25 to engage, in any of the following unfair or deceptive methods,
26 acts, or practices:
03444'97
25
1 (a) Directly or indirectly charging or collecting from a
2 person an entrance fee.
3 (b) Requiring a person to directly or indirectly purchase a
4 mobile MANUFACTURED home from another person as a condition of
5 entrance to, or lease or rental of, a mobile MANUFACTURED home
6 park COMMUNITY or seasonal mobile MANUFACTURED home park
7 COMMUNITY space.
8 (c) Directly or indirectly charging or collecting from a
9 person a refundable or nonrefundable exit fee.
10 (d) Requiring or coercing a person to purchase, rent, or
11 lease goods or services from another person as a condition of any
12 of the following:
13 (i) Entering into a park COMMUNITY or lease.
14 (ii) Selling a mobile MANUFACTURED home through the park
15 COMMUNITY owner or operator , or his or her agent or designee
16 upon leaving a mobile MANUFACTURED home park COMMUNITY or
17 seasonal mobile MANUFACTURED home park COMMUNITY.
18 (iii) Renting space in a mobile MANUFACTURED home park
19 COMMUNITY or seasonal mobile MANUFACTURED home park
20 COMMUNITY.
21 (e) Directly or indirectly charging or collecting from a
22 person money or other thing of value for electric, fuel, or water
23 service without the RESIDENT'S OR TENANT'S use of that service
24 by a resident or tenant being first accurately and consistently
25 measured, unless that service is included in the rental charge as
26 an incident of tenancy.
03444'97
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1 (f) Conspiring, combining, agreeing, aiding, or abetting in
2 the employment of a method, act, or practice that violates this
3 act.
4 (g) Renting or leasing a mobile MANUFACTURED home or site
5 in a mobile MANUFACTURED home park COMMUNITY or seasonal
6 mobile MANUFACTURED home park COMMUNITY without offering a
7 written lease.
8 (h) Subject to section 28a, prohibiting a resident from
9 selling his or her mobile MANUFACTURED home on-site for a price
10 determined by that resident, if the purchaser qualifies for ten-
11 ancy and the mobile MANUFACTURED home meets the conditions of
12 written park COMMUNITY rules or regulations. This subdivision
13 does not apply to seasonal mobile MANUFACTURED home parks
14 COMMUNITIES.
15 (i) Subject to reasonable mobile MANUFACTURED home park
16 COMMUNITY or seasonal mobile MANUFACTURED home park COMMUNITY
17 rules governing the location, size, and style of exterior televi-
18 sion antenna, prohibiting a person from installing or maintaining
19 an exterior television antenna on a mobile MANUFACTURED home
20 within the park COMMUNITY unless the mobile MANUFACTURED home
21 park COMMUNITY or seasonal mobile MANUFACTURED home park
22 COMMUNITY provides park residents, without charge, a central
23 television antenna for UHF-VHF reception.
24 (J) REQUIRING A REPOSSESSING LENDER TO PAY A HOMEOWNER'S
25 DEBTS THAT WERE INCURRED BEFORE REPOSSESSION OF THE MANUFACTURED
26 HOME.
03444'97
27
1 (K) PROHIBITING A REPOSSESSING LENDER FROM SELLING A
2 MANUFACTURED HOME ON-SITE.
3 (2) A tenant RESIDENT of a mobile MANUFACTURED home
4 park COMMUNITY or seasonal mobile MANUFACTURED home park
5 COMMUNITY may bring an action on his or her own behalf for a vio-
6 lation of this section.
7 (3) If the commission has reason to suspect that the owner
8 of a mobile MANUFACTURED home park COMMUNITY or seasonal
9 mobile MANUFACTURED home park COMMUNITY is engaged in conduct
10 that violates existing water utility tariffs or qualifies the
11 owner of a mobile MANUFACTURED home park COMMUNITY or sea-
12 sonal mobile MANUFACTURED home park COMMUNITY for regulation
13 as a water utility, the commission shall promptly send a written
14 report of the alleged violation to the Michigan public service
15 commission.
16 Sec. 28a. (1) Mobile MANUFACTURED home park COMMUNITY
17 rules or regulations may include provisions governing the physi-
18 cal condition of mobile MANUFACTURED homes and the aesthetic
19 characteristics of mobile MANUFACTURED homes in relation to the
20 mobile MANUFACTURED home park COMMUNITY in which they are
21 located, subject to all of the following:
22 (a) The age or size of a mobile MANUFACTURED home shall
23 not be used as the sole basis for refusing to allow an on-site,
24 in-park IN-COMMUNITY sale or for refusing to allow the mobile
25 MANUFACTURED home to remain on-site. THE COMMUNITY RULES OR REG-
26 ULATIONS SHALL NOT ESTABLISH A MINIMUM VALUE OR A MINIMUM SALE
27 PRICE FOR A MANUFACTURED HOME AS A CONDITION TO AN IN-COMMUNITY
03444'97
28
1 SALE OF THE HOME. The burden of going forward in a suit against
2 the mobile MANUFACTURED home park COMMUNITY owner or operator
3 for violation of this subdivision is on the resident.
4 (b) The standards incorporated in the written park
5 COMMUNITY rules or regulations governing the physical condition
6 and aesthetic characteristics of mobile MANUFACTURED homes in
7 the mobile MANUFACTURED home park COMMUNITY shall apply
8 equally to all residents.
9 (c) A mobile MANUFACTURED home sold on-site shall conform
10 with Act No. 133 of the Public Acts of 1974, being sections
11 125.771 to 125.774 of the Michigan Compiled Laws 1974 PA 133,
12 MCL 125.771 TO 125.774.
13 (d) Any charge connected to the on-site, in-park
14 IN-COMMUNITY sale of a mobile MANUFACTURED home, other than the
15 inspection fee permitted under subdivision (e) and the commission
16 or fee charged by a mobile MANUFACTURED home dealer RETAILER
17 licensed under this act who is engaged by the seller to transact
18 the sale, is an entrance or exit fee in violation of section 28.
19 (e) A park COMMUNITY owner or operator may charge a rea-
20 sonable fee to inspect the mobile MANUFACTURED home before
21 sale. The charge shall not be more than $30.00, or the amount
22 charged for building permit inspections by the municipality in
23 which the mobile MANUFACTURED home is located, whichever is
24 higher.
25 (f) The standards governing the physical condition of
26 mobile MANUFACTURED homes and the aesthetic characteristics of
27 mobile MANUFACTURED homes in the mobile MANUFACTURED home
03444'97
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1 park COMMUNITY, as incorporated in the written park COMMUNITY
2 rules, shall not be designed to defeat the intent of this
3 section.
4 (2) Subsection (1)(f) shall DOES not apply if the mobile
5 MANUFACTURED home park COMMUNITY is changing its method of
6 doing business and provides not less than 1 year's notice, unless
7 a different notice period is otherwise provided by law, of the
8 proposed change to all affected mobile MANUFACTURED home park
9 COMMUNITY residents. A change in a mobile MANUFACTURED home
10 park's COMMUNITY'S method of doing business includes, but is
11 not limited to, any of the following:
12 (a) Conversion to a mobile MANUFACTURED home park
13 COMMUNITY condominium pursuant to UNDER the condominium act,
14 Act No. 59 of the Public Acts of 1978, being sections 559.101 to
15 559.275 of the Michigan Compiled Laws 1978 PA 59, MCL 559.101 TO
16 559.275.
17 (b) Conversion to total rental of both mobile MANUFACTURED
18 home site and park-owned mobile COMMUNITY-OWNED MANUFACTURED
19 homes.
20 (c) Changes in use of the land on which the mobile
21 MANUFACTURED home park COMMUNITY is located.
22 (3) Notwithstanding subsection (1) or (2), a mobile
23 MANUFACTURED home park COMMUNITY may require a mobile
24 MANUFACTURED home to be moved to a comparable site within the
25 mobile MANUFACTURED home park COMMUNITY, at the expense of
26 the mobile MANUFACTURED home park COMMUNITY.
03444'97
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1 (4) If, after termination of a resident's tenancy for just
2 cause as provided in chapter 57a of the revised judicature act of
3 1961, Act No. 236 of the Public Acts of 1961, being sections
4 600.5771 to 600.5785 of the Michigan Compiled Laws 1961 PA 236,
5 MCL 600.5771 TO 600.5785, the resident of a mobile MANUFACTURED
6 home park COMMUNITY sells his or her mobile MANUFACTURED home
7 to the owner or operator of the mobile MANUFACTURED home park
8 COMMUNITY, or to any entity in which the owner or operator has
9 any interest, the resident shall have HAS the right to have the
10 mobile MANUFACTURED home's value appraised and, if so
11 appraised, the sale price of the mobile MANUFACTURED home shall
12 not be less than the appraised value.
13 (5) Except as provided in subsection (1)(a), a mobile
14 MANUFACTURED home park COMMUNITY owner or operator, or both,
15 has the burden of going forward to show compliance with subsec-
16 tion (1).
17 Sec. 28b. A mobile MANUFACTURED home park COMMUNITY
18 rule that does either of the following shall not be enforced
19 against a resident, unless the rule was proposed and in force
20 before the resident was approved for tenancy in the mobile
21 MANUFACTURED home park COMMUNITY:
22 (a) Prohibits those children who were previously approved
23 under prior park COMMUNITY rules from residing in the mobile
24 MANUFACTURED home park COMMUNITY. A rule prohibiting children,
25 or additional children, shall not be enforced against persons who
26 were residents of the mobile MANUFACTURED home park COMMUNITY
03444'97
31
1 at the time the rule was adopted until after 1 year's notice to
2 those persons.
3 (b) Prohibits a resident from keeping those pets which
4 THAT were previously approved under prior park COMMUNITY rules,
5 except dangerous animals.
6 Sec. 28c. (1) A lease or rental agreement or rules or regu-
7 lations that are adopted pursuant to UNDER a lease or rental
8 agreement may include a provision that requires liquidated dam-
9 ages to be awarded to the prevailing party in a contested action
10 to terminate a tenancy in a mobile MANUFACTURED home park
11 COMMUNITY for just cause under section 5775 of the revised judi-
12 cature act of 1961, Act No. 236 of the Public Acts of 1961,
13 being section 600.5775 of the Michigan Compiled Laws 1961 PA
14 236, MCL 600.5775.
15 (2) A provision allowed under subsection (1) may require
16 liquidated damages of not more than $500.00 for an action in the
17 district court and not more than $300.00 for each appellate
18 level. Liquidated damages shall not be construed to be a
19 penalty.
20 Sec. 29. A utility company shall notify the department 10
21 days before shutoff of service for nonpayment, including sewer,
22 water, gas, or electric service, when the service is being sup-
23 plied to the licensed owner or operator of a mobile
24 MANUFACTURED home park COMMUNITY or seasonal mobile
25 MANUFACTURED home park COMMUNITY for the use and benefit of the
26 park's tenants.
03444'97
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1 Sec. 30. (1) After December 31, 1978, every mobile
2 MANUFACTURED home located in this state shall be IS subject to
3 the certificate of title OWNERSHIP provisions of this act,
4 except for any new mobile MANUFACTURED home owned by a manufac-
5 turer or licensed mobile MANUFACTURED home dealer RETAILER
6 and held for sale.
7 (2) After December 31, 1978, a certificate of title for a
8 mobile MANUFACTURED home issued by the secretary of state
9 before January 1, 1979, pursuant to Act No. 300 of the Public
10 Acts of 1949, being sections 257.1 to 257.923 of the Michigan
11 Compiled Laws UNDER THE MICHIGAN VEHICLE CODE, 1949 PA 300, MCL
12 257.1 TO 257.923, shall be considered to be a certificate of
13 title OWNERSHIP issued by the department under this act and
14 shall be IS subject to all of the provisions of this act
15 respecting certificates of title OWNERSHIP.
16 (3) After December 31, 1978, a mobile MANUFACTURED home
17 shall not be sold or transferred except by transfer of the cer-
18 tificate of title OWNERSHIP for the mobile MANUFACTURED home
19 pursuant to UNDER this act.
20 Sec. 30a. (1) An owner of a mobile MANUFACTURED home
21 which THAT is subject to the certificate of title OWNERSHIP
22 provisions of this act shall make application to the department
23 for the issuance of a certificate of title OWNERSHIP for the
24 mobile MANUFACTURED home upon the appropriate form furnished by
25 the department, accompanied by a fee of $45.00 or any lesser
26 amount established pursuant to UNDER section 9(5). The
27 application shall bear the signature of the owner written in ink,
03444'97
33
1 shall be acknowledged by the owner before a person authorized to
2 take acknowledgments, and shall contain ALL OF THE FOLLOWING:
3 (a) The name and address of the owner.
4 (b) A description of the mobile MANUFACTURED home, includ-
5 ing the name of the manufacturer, the year and model, and the
6 manufacturer's serial number or, in the absence of a serial
7 number, a number assigned by the department. A number assigned
8 by the department shall be permanently placed on the mobile
9 MANUFACTURED home in the manner and place designated by the
10 department.
11 (c) A statement of the names and addresses of the holders of
12 any security interests in the mobile MANUFACTURED home, in the
13 order of their priority.
14 (d) Further information as may reasonably be required by the
15 department to enable it to determine whether the owner of the
16 mobile MANUFACTURED home is entitled to a certificate of
17 title OWNERSHIP for the mobile MANUFACTURED home.
18 (2) If the department is not satisfied as to the ownership
19 of the mobile MANUFACTURED home, before issuing a certificate
20 of title OWNERSHIP for it, the department may require the
21 applicant to file a properly executed surety bond in a form pre-
22 scribed by the department, executed by the applicant and a com-
23 pany authorized to conduct a surety business in this state. The
24 bond shall be in an amount equal to twice the value of the
25 mobile MANUFACTURED home as determined by the department and
26 shall be conditioned to indemnify or reimburse the department,
27 any prior owner, any holder of a security interest in the
03444'97
34
1 mobile MANUFACTURED home, and any subsequent purchaser of the
2 mobile MANUFACTURED home, and their successors in interest,
3 against any expense, loss, or damage, including reasonable
4 attorney's fees, by reason of the issuance of a certificate of
5 title OWNERSHIP to the mobile MANUFACTURED home or on account
6 of any defect in the right, title OWNERSHIP, or interest of the
7 applicant in and to the mobile MANUFACTURED home. Each inter-
8 ested person has a right of action to recover on the bond for a
9 breach of its conditions, but the aggregate liability of the
10 surety to all persons shall not exceed the amount of the bond.
11 The bond shall be returned at the end of 5 years, or before 5
12 years if the currently valid certificate of title OWNERSHIP is
13 surrendered to the department, unless the department has received
14 notification of the pendency of an action to recover on the
15 bond.
16 (3) The department shall examine and determine the genuine-
17 ness, regularity, and legality of an application for a certifi-
18 cate of title OWNERSHIP for a mobile MANUFACTURED home and of
19 any other application lawfully made to the department, and may in
20 all cases make investigation or require additional information as
21 may be considered necessary, and shall reject any application if
22 not satisfied of AS TO the genuineness, regularity, or legality
23 of it or the truth of any statement contained in it, or for any
24 other reason, when authorized by law.
25 (4) The fee for obtaining a duplicate, replacement, or cor-
26 rected title CERTIFICATE OF OWNERSHIP, for placing or
27 terminating a lien on the title CERTIFICATE OF OWNERSHIP, or
03444'97
35
1 for placing a name on the title CERTIFICATE OF OWNERSHIP is
2 $15.00 or any other lesser amount established pursuant to UNDER
3 section 9(5).
4 Sec. 30b. (1) The department upon receipt of the required
5 application and fees shall issue a certificate of title
6 OWNERSHIP except as otherwise provided.
7 (2) The certificate of title OWNERSHIP shall contain upon
8 its face the date issued, the name and address of the owner, a
9 description of the mobile MANUFACTURED home as determined by
10 the department, a statement of all security interests in the
11 mobile MANUFACTURED home as set forth in the application, the
12 date on which the application was filed, and other information as
13 the department may require.
14 (3) The certificate of title OWNERSHIP shall contain upon
15 the reverse side forms for assignment of title OWNERSHIP or
16 interest and warranty of title OWNERSHIP by the owner with
17 space for notation of security interests in the mobile
18 MANUFACTURED home at the time of a transfer to be signed in ink,
19 and other forms as the department may consider necessary to
20 facilitate the effective administration of this section. The
21 certificate shall bear the seal of the department.
22 (4) The certificate of title OWNERSHIP shall be mailed or
23 delivered to the owner or other person as the owner may direct in
24 a separate instrument, in the form as the department shall
25 prescribe.
26 Sec. 30c. (1) If the owner of a mobile MANUFACTURED home
27 transfers or assigns the owner's title OWNERSHIP or interest to
03444'97
36
1 the mobile MANUFACTURED home, the owner shall indorse on the
2 back of the certificate of title OWNERSHIP an assignment of the
3 mobile MANUFACTURED home with warranty of title OWNERSHIP
4 with a statement of all security interests in the mobile
5 MANUFACTURED home, and shall cause the certificate to be mailed
6 or delivered to the department or to the purchaser or transferee
7 at the time of the delivery to the purchaser or transferee of the
8 mobile MANUFACTURED home.
9 (2) Upon the delivery of a mobile MANUFACTURED home and
10 the transfer, sale, or assignment of the title OWNERSHIP or
11 interest in a mobile MANUFACTURED home, the effective date of
12 the transfer of title OWNERSHIP or interest shall be the date
13 of execution of either the application for title CERTIFICATE OF
14 OWNERSHIP or the certificate of title OWNERSHIP.
15 (3) The purchaser or transferee, unless the purchaser or
16 transferee is a licensed dealer RETAILER, shall cause to be
17 presented PRESENT to the department the certificate of title
18 OWNERSHIP accompanied by the applicable fee, as follows:
19 (a) Except as provided in subdivision (b) or (c), $45.00.
20 (b) Except as provided in subdivision (c), $15.00, if the
21 sale, assignment, or other transfer will require the addition or
22 deletion from the certificate of title OWNERSHIP of any of the
23 following:
24 (i) The owner's spouse.
25 (ii) A person related to the owner within the fourth degree
26 of consanguinity as computed by the civil law method.
03444'97
37
1 (iii) A person related to the owner's spouse within the
2 fourth degree of consanguinity as computed by the civil law
3 method.
4 (c) Any other lesser amount established pursuant to UNDER
5 section 9(5).
6 (4) Upon presentation of the certificate of title
7 OWNERSHIP accompanied by the applicable fee, a new certificate of
8 title OWNERSHIP shall be issued. A certificate of title
9 OWNERSHIP issued under subsection (3) and this subsection shall
10 be mailed or delivered to the owner or any other person the owner
11 may direct in a separate instrument in a form as prescribed by
12 the department.
13 (5) If a security interest is reserved or created at the
14 time of the transfer, the parties shall comply with section 30d.
15 (6) If the transferee of a mobile MANUFACTURED home is a
16 mobile MANUFACTURED home dealer RETAILER who holds the
17 mobile MANUFACTURED home for resale, the dealer shall
18 RETAILER IS not be required to forward the certificate of
19 title OWNERSHIP to the department, but the dealer shall retain
20 possession of the assigned certificate of title OWNERSHIP.
21 Upon transfer of the dealer's title OWNERSHIP or interest to
22 another person, the dealer shall execute and acknowledge an
23 assignment and warranty of title OWNERSHIP upon the certificate
24 of title OWNERSHIP and deliver it to the person to whom the
25 transfer is made if the person is a licensed dealer; otherwise
26 application for a new title CERTIFICATE OF OWNERSHIP shall be
27 made by the transferor as provided in section 30a(1).
03444'97
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1 Sec. 30d. (1) If an owner named in a certificate of title
2 OWNERSHIP creates a security interest in the mobile
3 MANUFACTURED home described in the certificate, ALL OF THE FOL-
4 LOWING APPLY:
5 (a) The owner shall immediately execute an application in
6 the form prescribed by the department showing the name and
7 address of the holder of the security interest and deliver the
8 certificate of title OWNERSHIP, application, and a fee of $1.00
9 together with a copy of the application which need not be signed,
10 to the holder of the security interest.
11 (b) The holder of the security interest shall cause MAIL
12 OR DELIVER the certificate of title OWNERSHIP, application, and
13 fee and the copy of the application to be mailed or delivered
14 to the department.
15 (c) The department shall indicate on the copy of the appli-
16 cation the date and place of filing of the application and return
17 the copy to the person presenting it.
18 (d) Upon receipt of the certificate of title OWNERSHIP,
19 application, and the required fee the department shall issue a
20 new certificate in the form provided PRESCRIBED by section 30b
21 setting forth the name and address of each holder of a security
22 interest in the mobile MANUFACTURED home for which a termina-
23 tion statement has not been filed and the date on which the
24 application first stating the security interest was filed, and
25 mail the certificate to the owner.
26 (2) A holder of a security interest may assign, absolutely
27 or otherwise, the security interest to a person other than the
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1 owner without affecting the interest of the owner or the validity
2 of the security interest, but a person without notice of the
3 assignment is protected in dealing with the holder of the secur-
4 ity interest as the holder of the security interest. The
5 assignee may have the certificate of title OWNERSHIP indorsed
6 with the assignee named as the holder of the security interest by
7 providing the department with a copy of the assignment instrument
8 but the failure of the assignee to do so shall DOES not affect
9 the validity of the security interest or the assignment of the
10 security interest.
11 (3) The filing under this section or under section 30a of an
12 application for a certificate of title OWNERSHIP showing the
13 name and address of the holder of a security interest in a
14 mobile MANUFACTURED home is equivalent to the filing of a
15 financing statement with respect to the security interest under
16 article 9 of the uniform commercial code, Act No. 174 of the
17 Public Acts of 1962, being sections 440.9101 to 440.9994 of the
18 Michigan Compiled Laws 1962 PA 174, MCL 440.9101 TO 440.9994.
19 (4) When there is not an outstanding obligation or commit-
20 ment to make advances, incur obligations, or otherwise give
21 value, secured or to be secured by a security interest in a
22 mobile MANUFACTURED home, the secured party shall, within 10
23 days after satisfaction of the obligation and, in any event
24 within 30 days, execute a termination statement in the form pre-
25 scribed by the department and mail or deliver the termination
26 statement to the owner or other person as the owner may direct.
27 The owner, other than a dealer RETAILER holding the mobile
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1 MANUFACTURED home for resale, shall promptly cause the
2 certificate, all termination statements, and an application for
3 certificate of title OWNERSHIP accompanied by a fee of $1.00 to
4 be mailed or delivered to the department, which shall issue a new
5 certificate.
6 Sec. 30e. (1) If the interest of the owner in a mobile
7 MANUFACTURED home is terminated by the enforcement of a security
8 agreement, the transferee of the owner's interest shall promptly
9 mail or deliver to the department the last certificate of title
10 OWNERSHIP, if the transferee has possession of it, an application
11 for a new certificate in the form prescribed by the department,
12 and an affidavit made by or on behalf of the holder of the secur-
13 ity interest so enforced STATING that the mobile MANUFACTURED
14 home was repossessed, that the interest of the owner was lawfully
15 terminated by enforcement of the security agreement, and whether
16 the holder has delivered the last certificate of title
17 OWNERSHIP to the transferee of the owner's interest, naming the
18 transferee, or if not, the reason delivery was not made and the
19 then location of the certificate of title OWNERSHIP so far as
20 known to the holder. If the holder of the security interest suc-
21 ceeds to the interest of the owner and holds the mobile
22 MANUFACTURED home for resale, the holder shall not be required to
23 secure a new certificate of title OWNERSHIP but, upon transfer
24 to another person, shall promptly mail or deliver to the trans-
25 feree or to the department the certificate, if in the holder's
26 possession, the affidavit, and other documents required to be
27 sent to the department by the transferee.
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1 (2) If the interest of the owner in a mobile MANUFACTURED
2 home is terminated by sale pursuant to a levy of execution,
3 attachment, or other process of a court, the transferee of the
4 owner's interest shall promptly mail or deliver to the department
5 the last certificate of title OWNERSHIP, if the transferee has
6 possession of it, an application for a new certificate of title
7 OWNERSHIP in the form prescribed by the department, and an affi-
8 davit, upon a form prescribed by the department, made by the
9 officer of the court who conducted the sale, setting forth the
10 date of the sale, and the name of the purchaser, and whether
11 the officer has delivered the certificate of title OWNERSHIP to
12 the purchaser. and if not, IF THE CERTIFICATE OF OWNERSHIP WAS
13 NOT DELIVERED TO THE PURCHASER, THE OFFICER SHALL STATE IN THE
14 AFFIDAVIT the reason delivery was not made and the then loca-
15 tion of the certificate of title OWNERSHIP so far as known to
16 the officer.
17 (3) A person holding a certificate of title where
18 OWNERSHIP IN WHICH the interest of the owner named in the certif-
19 icate has been terminated in the manner provided by subsection
20 (1) or (2) shall mail or deliver the certificate to the depart-
21 ment upon its request. The delivery of the certificate pursuant
22 to the request of the department does not affect the rights of
23 the person surrendering the certificate, and the action of the
24 department in issuing a new certificate of title OWNERSHIP is
25 not conclusive upon any rights of an owner or holder of a secur-
26 ity interest named in the old certificate.
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1 (4) The department, upon UPON receipt of an application
2 for a new certificate of title OWNERSHIP by a transferee in the
3 manner provided by subsection (1) or (2), with proof of the
4 transfer, the required fee, and any other documents required by
5 law, THE DEPARTMENT shall issue a new certificate of title
6 OWNERSHIP in the name of the transferee as owner, setting forth
7 all security interests noted on the last certificate of title
8 OWNERSHIP as having priority over the security agreement so
9 enforced and shall mail or deliver the new certificate to the
10 owner. If the outstanding certificate of title OWNERSHIP is
11 not delivered, the department shall make demand for the outstand-
12 ing certificate of title OWNERSHIP from the holder.
13 Sec. 30f. The department shall retain and appropriately
14 file every surrendered certificate of title OWNERSHIP. The
15 file shall be maintained so as to permit the tracing of title
16 OWNERSHIP of the mobile MANUFACTURED home designated in a sur-
17 rendered certificate for a period of 10 years.
18 Sec. 30g. (1) The department may cancel or refuse to issue
19 a certificate of title OWNERSHIP UNDER ANY OF THE FOLLOWING
20 CIRCUMSTANCES:
21 (a) If the department is satisfied that the certificate of
22 title OWNERSHIP was fraudulently or erroneously issued.
23 (b) If the department determines that the holder of the cer-
24 tificate has made or is making an unlawful use of the
25 certificate.
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43
1 (c) If the department determines that the required fee has
2 not been paid and the fee is not paid upon reasonable notice or
3 demand.
4 (d) If the department is authorized under any other provi-
5 sion of this act.
6 (e) Upon receipt of notification from another state or for-
7 eign country that a certificate of title OWNERSHIP issued by
8 the department has been surrendered by the owner in conformity
9 with the laws of the other state or foreign country.
10 (f) If it is shown by satisfactory evidence that delivery of
11 a mobile MANUFACTURED home in the possession of a dealer was
12 not made to the applicant to whom the certificate was issued.
13 (2) Before a cancellation under subsection (1)(a), (b), or
14 (d) is made, the person affected shall be given notice and an
15 opportunity to be heard.
16 Sec. 30h. The commission in consultation with the secretary
17 of state shall promulgate rules, which shall further define and
18 distinguish between the term mobile MANUFACTURED home as used
19 in this act and the term trailer coach as used in the Michigan
20 vehicle code, Act No. 300 of the Public Acts of 1949, being sec-
21 tions 257.1 to 257.923 of the Michigan Compiled Laws 1949 PA
22 300, MCL 257.1 TO 257.923.
23 Sec. 31. A person who offers, sells, or purchases a
24 mobile MANUFACTURED home or equipment or a mobile
25 MANUFACTURED home site in violation of this act or the code may
26 have an action brought against him or her to rescind the
27 transaction and recover damages.
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1 Sec. 38. (1) The department may issue an order to show
2 cause why an order imposing sanctions or penalties allowed under
3 this act should not be issued by the commission if the department
4 finds that the order is in the public interest, and any of the
5 following:
6 (a) An application filed pertaining to a license, a disclo-
7 sure statement, or a related document filed with the department
8 in connection with a mobile MANUFACTURED home license , is
9 incomplete in any material respect or contains a statement
10 which THAT is false or misleading, in the light of the circum-
11 stances under which it is made.
12 (b) A provision of this act, or a rule, order, or condition
13 lawfully imposed under this act, was not complied with or was
14 violated in connection with the offering by the person filing the
15 document; the developer, dealer RETAILER, or operator; a part-
16 ner, officer, director, proprietor, or manager of the developer,
17 dealer RETAILER, or operator; or a person directly or indi-
18 rectly controlling, or directly controlled by, the developer,
19 dealer RETAILER, or operator.
20 (c) The project worked or tended to work a fraud or decep-
21 tion or would so operate, or the project would create an unrea-
22 sonable risk to prospective tenants RESIDENTS, as defined by
23 rules promulgated by the commission.
24 (d) The developer, dealer RETAILER, or operator; a part-
25 ner, officer, director, proprietor, or manager of the developer,
26 dealer RETAILER, or operator; a person directly or indirectly
27 controlling or directly controlled by the developer, dealer
03444'97
45
1 RETAILER, or operator; or a person identified in the application
2 for a license, or a disclosure statement, was within the past 10
3 years convicted of an offense under this act, or is the subject
4 of an administrative order issued under this act, or had a civil
5 judgment entered against him or her as a result of a violation of
6 this act or a rule promulgated or order issued pursuant to
7 UNDER this act, and the department determines that the involve-
8 ment of the person in the sale or development of the project cre-
9 ates an unreasonable risk to prospective tenants RESIDENTS or
10 mobile MANUFACTURED home purchasers.
11 (e) The developer, dealer RETAILER, or operator; a part-
12 ner, officer, director, proprietor, or manager of the developer;
13 a person directly or indirectly controlling or directly con-
14 trolled by the developer, dealer RETAILER, or operator; or a
15 person identified in the application for a license, or a disclo-
16 sure statement, was convicted of a violation or WAS the subject
17 of an administrative order or civil judgment as a result of a
18 violation of a statute regulating the offering of securities or
19 franchises or licensing or regulating builders, real estate bro-
20 kers, or real estate salespersons, or of violation of the land
21 sales act, Act No. 286 of the Public Acts of 1972, being sec-
22 tions 565.801 to 565.835 of the Michigan Compiled Laws 1972 PA
23 286, MCL 565.801 TO 565.835, or a rule promulgated or an order
24 issued under that act.
25 (f) The applicant's method of business, construction, devel-
26 opment, or sales includes or would include activities which
27 THAT are illegal.
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46
1 (g) The applicant failed to pay the proper fee.
2 (h) The applicant failed to comply with the state warranty
3 laws.
4 (2) When it appears to the department that a person engaged
5 in an act or practice constituting a violation of this act or a
6 rule promulgated or order issued under this act, the department
7 may issue a notice to show cause why a cease and desist order
8 should not be issued.
9 (3) After 10 days' notice and opportunity for hearing, the
10 department may stop construction as to part or all of a project
11 if continuing the building will cause irreparable harm to resi-
12 dents and prospective residents of the project.
13 Sec. 43. (1) If, after notice and a hearing as provided in
14 the administrative procedures act of 1969, Act No. 306 of the
15 Public Acts of 1969, being sections 24.201 to 24.328 of the
16 Michigan Compiled Laws 1969 PA 306, MCL 24.201 TO 24.328, a
17 person is determined to have violated this act, the commission
18 may impose 1 or more of the following penalties:
19 (a) Censure.
20 (b) Probation.
21 (c) Placement of a limitation on a license.
22 (d) Suspension of a license. The commission may request the
23 appointment of a receiver when taking action under this
24 subdivision.
25 (e) Revocation of a license. The commission may request the
26 appointment of a receiver when taking action under this
27 subdivision.
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1 (f) Denial of a license.
2 (g) A civil fine of not more than $10,000.00.
3 (h) A requirement that restitution be made.
4 (2) A fine collected under this section shall be deposited
5 with the state treasurer and credited to the mobile
6 MANUFACTURED home commission fund.
7 (3) This section does not prohibit actions being taken under
8 other sections of this act.
9 (4) The pursuit in court of the lawful rights of a licensee
10 does not constitute a violation of this act, regardless of the
11 outcome of the court action.
03444'97 Final page. MGM