March 7, 2018, Introduced by Senator BRANDENBURG and referred to the Committee on Commerce.
A bill to amend 1987 PA 96, entitled
"The mobile home commission act,"
by amending sections 2, 4, 5, 7, 9, 16, 21, 36, 38, and 43 (MCL
125.2302, 125.2304, 125.2305, 125.2307, 125.2309, 125.2316,
125.2321, 125.2336, 125.2338, and 125.2343), sections 2, 4, 16, and
43 as amended by 2015 PA 40, sections 5, 9, and 21 as amended by
2006 PA 328, section 7 as amended by 2009 PA 215, and section 38 as
amended by 1988 PA 337.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2. As used in this act:
(a) "Campground" means a campground as defined in section
12501 of the public health code, 1978 PA 368, MCL 333.12501.
(b) "Change of ownership" means a transfer of either of the
following by a person that is not a publicly traded entity:
(i) The controlling interest in an owner of a mobile home park
or seasonal mobile home park.
(ii) Fee ownership in the parcel upon which a mobile home park
or seasonal mobile home park is located.
(c)
(b) "Code" means all or a part of the mobile
home code
promulgated under section 5.
(d) (c)
"Commission" means the
manufactured housing
commission.
(e) "Controlling interest" means 51% or more of the voting
rights.
(f)
(d) "Department" means the department of
licensing and
regulatory affairs, except as follows:
(i) Department means the department of state in all of the
following circumstances:
(A) As used in section 5(1) with respect to rules promulgated
under section 5(1)(h).
(B) As used in section 9(5) with respect to rules adjusting
fees under section 30a or 30c.
(C) As used in sections 30 to 30i.
(ii) Department
, as means the department of environmental
quality when the term is used with respect to powers and duties
concerning water supply systems and sewage collection and disposal
systems
for mobile home parks and seasonal mobile home parks. ,
means
the department of environmental quality.
(g) "Director" means the director of a department.
(h) "Enforcing agency" means the governmental agency that, in
accordance with section 8a or 8b of the Stille-DeRossett-Hale
single state construction code act, 1972 PA 230, MCL 125.1508a and
125.1508b, is responsible for the administration and enforcement
within a governmental subdivision of the Stille-DeRossett-Hale
single state construction code act, 1972 PA 230, MCL 125.1501 to
125.1531, and the state construction code promulgated under that
act. For the purposes of section 19 of the Stille-DeRossett-Hale
single state construction code act, 1972 PA 230, MCL 125.1519,
enforcing agency means the agency in a governmental unit
principally responsible for the administration and enforcement of
applicable construction regulations.
(i)
(e) "Guideline" means that term as defined in
section 3 of
the administrative procedures act of 1969, 1969 PA 306, MCL 24.203.
(j) (f)
"Installer and repairer"
means a person, including a
mobile
home dealer, who for compensation that installs or repairs
mobile homes for compensation.
(k) (g)
"Local government" means
a county or municipality.
(l) "Manufactured housing deputy director" means an individual
who is designated by the director to exercise the powers and duties
of section 4(2).
(m)
(h) "Mobile home" means a structure that is
transportable
in 1 or more sections, built on a chassis, and designed to be used
as a dwelling, with or without a permanent foundation, when
connected to the required utilities, and includes the plumbing,
heating, air-conditioning, and electrical systems contained in the
structure.
(n)
(i) "Mobile home dealer" means a person other
than a
manufacturer engaged in the business of buying mobile homes for
resale, exchange, lease, or rent or offering mobile homes for sale,
lease, rent, or exchange to customers.
(o) (j)
"Mobile home park" means
a parcel or tract of land
under the control of a person upon which 3 or more mobile homes are
located on a continual, nonrecreational basis and which is offered
to the public for that purpose regardless of whether a charge is
made, therefor,
together with any building, structure, enclosure,
street, equipment, or facility used or intended for use incident to
the occupancy of a mobile home.
(p) (k)
"Municipality" means a
city, village, or township.
(q) "Operator" means a principal or officer of an owner who
has been designated by the owner as a person responsible to the
department, together with the owner, for the operation of a mobile
home park or seasonal mobile home park.
(r) "Owner" means a person that has fee ownership of the
parcel or tract of land upon which a mobile home park or seasonal
mobile home park is located.
(s)
(l) "Person"
means an individual, partnership,
association, trust, or corporation, or any other legal entity or
combination of legal entities.
(t) "Principal" means an individual who directly or indirectly
owns or controls 20% or more of an owner's voting rights.
(u)
(m) "Recreational vehicle" means a vehicle
primarily
designed and used as temporary living quarters for recreational,
camping, or travel purposes, including a vehicle having its own
motor power or a vehicle mounted on or drawn by another vehicle.
(v) (n)
"Seasonal mobile home
park" means a parcel or tract of
land under the control of a person upon which 3 or more mobile
homes are located on a continual or temporary basis but occupied on
a temporary basis only, and which is offered to the public for that
purpose
regardless of whether a charge is made, therefor, together
with any building, enclosure, street, equipment, or facility used
or intended for use incident to the occupancy of a mobile home.
Seasonal mobile home park does not include a campground licensed
pursuant to sections 12501 to 12516 of the public health code, 1978
PA
368, MCL 333.12501 to 333.12516.
(w) (o)
"Secured party" means
that term as defined in section
9102 of the uniform commercial code, 1962 PA 174, MCL 440.9102.
(x) (p)
"Security interest" means
that term as defined in
section 1201 of the uniform commercial code, 1962 PA 174, MCL
440.1201.
(y) (q)
"Termination statement"
means that term as defined in
section 9102 of the uniform commercial code, 1962 PA 174, MCL
440.9102.
Sec. 4. (1) The commission may do all of the following:
(a) After consultation with and considering comments from
representatives of the manufactured housing industry and other
interested parties, recommend rules to the department to implement
and administer this act.
(b) Act for the purpose of establishing a uniform policy
relating to all phases of mobile home businesses, mobile home
parks, and seasonal mobile home parks.
(c)
Determine the sufficiency of local mobile home ordinances
that
are designed to provide local governments with superintending
control
over mobile home businesses, mobile home parks, or seasonal
mobile
homes parks.Approve or
disapprove local standards under
section 7(1).
(d) Conduct public hearings relating to the powers prescribed
in this subsection. The commission may not resolve disputes
described in 24 CFR part 3288. Only the director or the authorized
representatives of the director may resolve disputes described in
24 CFR part 3288.
(2)
The director or an authorized representative of the
director
The manufactured housing
deputy director shall do all of
the following:
(a) Employ sufficient personnel to carry out the obligations
necessary for the department to qualify as the state administrative
agency for this state under 24 CFR part 3282. The personnel hired
shall include not less than 3 full-time inspectors and 1 full-time
auditor, along with such additional staff as required to implement
and enforce this act and the rules promulgated under this act.
(b)
(a) After consultation with and considering comments
from
representatives of the manufactured housing industry and other
interested parties, promulgate rules to implement and administer
this act.
(c) (b)
Conduct hearings relating to
violations of this act or
rules promulgated under this act.
(d) (c)
Make investigations to determine
compliance with this
act and rules promulgated under this act.
(e) (d)
Provide assistance to the
commission as the commission
requires.
(f) (e)
On not less than a quarterly basis,
report to the
commission on the expenditure of all fees collected under this act
and the relation of those expenditures to the enforcement and
administration of this act.
(g) (f)
Post and maintain on the
department's website all
current guidelines.
(h) (g)
Promptly notify a local government
of the issuance,
amendment, or rescission of a guideline if the department has
knowledge that a mobile home park or seasonal mobile home park is
located in, or an application has been filed for the licensure of a
park proposed to be located in, the local government. The notice
shall be sent by first-class mail or electronic mail to each of the
following:
(i) The clerk of the local government.
(ii) The chief executive officer of the local government.
(iii) The enforcing agency for the local government, if any. ,
under
section 8a or 8b of the Stille-DeRossett-Hale single state
construction
code act, 1972 PA 230, MCL 125.1508a and 125.1508b,
the
local government has assumed responsibility for the
administration
and enforcement within its jurisdiction of that act
and
the state construction code or a part of the state construction
code
of limited application.
(i) (h)
If the department receives a
complaint about a
condition at a mobile home park or seasonal mobile home park that
imminently threatens the health or safety of the residents of the
park, promptly notify each local government in which the park is
located of the details of the complaint.
(j) Prepare and submit applications in accordance with, and
satisfy all requirements under, 24 CFR parts 3280, 3282, and 3288.
(k) Implement and enforce this act and rules promulgated under
this act.
(3) The individual serving as manufactured housing deputy
director shall not have duties as a state officer other than those
provided in subsection (2).
(4) (3)
The commission shall not regulate
mobile homes that
are not located within a mobile home park or a seasonal mobile home
park, except as relates to the business, sales, and service
practices of mobile home dealers and the business practices of
mobile home installers and repairers.
Sec. 5. (1) After consultation with and considering comments
from representatives of the manufactured housing industry and other
interested
parties, the department shall promulgate the a mobile
home
code subject to section 4. 4(2).
The code shall consist of
rules governing all of the following:
(a) The licensure, audit, density, layout, permits for
construction,
and construction of mobile home parks including in
addition to standards for roads, speed limits, traffic signs,
inspections,
utilities, open space , or proposed recreational
facilities, site drainage, water and sewer collection and treatment
facilities, rubbish, insect and rodent control, and other safety
measures sufficient to protect health, safety, and welfare of
mobile
home park residents. , except However, the code shall not
govern water supply, sewage collection and treatment, and drainage
facilities
which that are regulated by the department of
environmental quality.
(b) The business, sales, and service practices of mobile home
dealers.
(c) The business practices of mobile home installers and
repairers.
(d)
The licensure and regulations regulation
of mobile home
installers and repairers.
(e) The setup and installation of mobile homes inside mobile
home parks or seasonal mobile home parks.
(f)
The regulation of the responsibilities, under the a mobile
home warranty, of the mobile home components manufacturer, the
mobile home assembler or manufacturer, and the mobile home dealer,
including the time period and relationships of each under the
warranty, and the remedies available, if any, if the responsible
parties cease to operate as a business.
(g) Abuses relating to all of the following:
(i) Consumer deposits, except utility deposits from consumers
who are direct customers of utilities regulated by the Michigan
public service commission.
(ii) Detailed listing of furnishings and fixtures by a
manufacturer of a new mobile home or a mobile home dealer for a
used mobile home.
(iii) Disclosure and delivery of manufacturer's warranties.
(iv) Used mobile homes. A mobile home dealer shall provide
detailed listing of its service records for used mobile homes which
are being sold by the dealer and of which the dealer has knowledge.
(h) Applications for and issuance of certificates of title for
mobile homes.
(2) As part of the code, the department shall also promulgate
rules
governing the licensure, density, layout, permits for
construction,
and construction of seasonal mobile
home parks ,
including
standards for roads, utilities, open space, proposed
recreational
facilities, and safety measures sufficient to protect
the
health, safety, and welfare of seasonal mobile home park
residents,
except that are the same or
similar to those provided in
subsection (1). However, the code shall not govern water supply,
sewage
collection and treatment, and drainage facilities , which
shall
be that are regulated by the department of environmental
quality.
(3) The rules promulgated for seasonal mobile home parks may
impose a less stringent standard than the rules promulgated for
mobile home parks.
(4) All administrative rules promulgated by the department or
the commission under this act and in effect on the effective date
of the amendatory act that added this subsection shall be
considered authorized, valid, and enforceable and remain in effect
until amended or rescinded by the department.
Sec.
7. (1) Except as provided in subsection (7), (9), a
local
government that proposes a standard related to mobile home parks or
seasonal mobile home parks, or related to mobile homes located
within a mobile home park or a seasonal mobile home park, that is
higher than the standard provided in this act or the code, or that
proposes a standard related to the business, sales, and service
practices of mobile home dealers, or the business of mobile home
installers and repairers, that is higher than the standard provided
in this act or the code, shall file the proposed standard with the
commission.
Except as provided in subsection (7), (9), the
commission may promulgate rules to establish the criteria and
procedure for implementation of higher standards by a local
government. The commission shall review and approve the proposed
standard unless the standard is unreasonable, arbitrary, or not in
the public interest. If the commission does not approve or
disapprove the proposed standard within 60 days after it is filed
with the commission, the standard shall be considered approved
unless the local government grants the commission additional time
to consider the standard. After the proposed standard is approved,
the local government may adopt the standard by ordinance. The
ordinance shall relate to a specific section of the code.
(2) A local government standard related to mobile homes not
located within a mobile home park or seasonal mobile home park need
not be filed with the mobile home commission, unless the standard
relates to the business, sales, and service practices of mobile
home dealers, or the business of mobile home installers and
repairers.
(3) A local government ordinance shall not be designed as
exclusionary to mobile homes generally whether the mobile homes are
located inside or outside of mobile home parks or seasonal mobile
home parks.
(4) A local government ordinance shall not contain a standard
for the setup or installation of mobile homes that is incompatible
with, or is more stringent than, either of the following:
(a) The manufacturer's recommended setup and installation
specifications.
(b) The mobile home setup and installation standards
promulgated by the federal department of housing and urban
development pursuant to the national manufactured housing
construction and safety standards act of 1974, 42 USC 5401 to 5426.
(5) In the absence of any setup or installation specifications
or standards for foundations as set forth in subsection (4)(a) or
(b), the local government standards for site-built housing shall
apply.
(6) A local government ordinance shall not contain roof
configuration standards or special use zoning requirements that
apply only to, or excludes, mobile homes. A local government
ordinance shall not contain a manufacturing or construction
standard that is incompatible with, or is more stringent than, a
standard
promulgated by the federal department of housing and urban
development
United States Department of
Housing and Urban
Development pursuant to the national manufactured housing
construction and safety standards act of 1974, 42 USC 5401 to 5426.
A local government ordinance may include reasonable standards
relating to mobile homes located outside of mobile home parks or
seasonal mobile home parks which ensure that mobile homes compare
aesthetically to site-built housing located or allowed in the same
residential zone.
(7) An owner or operator must obtain all of the following from
the enforcing agency for the appropriate local government:
(a) The proper permits prescribed by the Stille-DeRossett-Hale
single state construction code act, 1972 PA 230, MCL 125.1501 to
125.1531, to install or make modifications to a manufactured home
in this state.
(b) A certificate of occupancy prior to occupancy of any new
mobile home in this state.
(8) Licensed mobile home parks and seasonal mobile home parks
that rent units to tenants and owners of mobile homes that are
rented to tenants are subject to all of the following:
(a) 1972 PA 348, MCL 554.601 to 554.616.
(b) Applicable local ordinances authorized by subsection (9).
(c) Applicable inspection or licensing requirements authorized
under the laws of this state.
(9) (7)
Notwithstanding anything in section
17, that may be to
the
contrary, a local government may
adopt an ordinance to inspect
mobile homes for safety within a mobile home park, a seasonal
mobile home park, or mobile homes located outside a mobile home
park or a seasonal mobile home park if the mobile home being
inspected is being rented to a tenant by the owner of the mobile
home. The local government may propose a means to determine which
mobile homes located within its jurisdiction are being rented to
tenants by the owner, including, but not limited to, imposition of
a registration or a licensing requirement for renting mobile homes
to tenants. A local government may inspect mobile homes rented to
tenants by the owner for safety if the safety inspection ordinance
applies to all other rental housing within the local governmental
unit. If a local government inspects mobile homes rented to tenants
by the owner for safety, the period between inspections shall not
be less than 3 years unless the local government is responding to a
complaint from a tenant. An inspection shall not be conducted on a
mobile home for which an occupancy permit has been issued by the
local government in the preceding 3 years unless the local
government is responding to a complaint from a tenant. Inspections
for safety shall not require enforcement of any mobile home
construction standards that are greater than those applicable to
the mobile home under the national manufactured housing
construction and safety standards act of 1974, 42 USC 5401 to 5426,
or standards or codes to which the mobile home was constructed if
it was constructed before application of the national manufactured
housing construction and safety standards act of 1974, 42 USC 5401
to 5426. As used in this section, "inspection for safety" means an
inspection of a rental mobile home that is limited to ensuring the
proper functioning, or protection, of the following:
(a) Furnace.
(b) Water heater.
(c) Electrical wiring.
(d) Proper sanitation and plumbing.
(e) Ventilation.
(f) Heating equipment.
(g) Structural integrity.
(h) Smoke alarms.
(10) A person that owns a mobile home is subject to all of the
following:
(a) All obligations imposed on persons that own mobile homes
by the applicable law of this state, including compliance with all
building permits and requirements for construction on the mobile
home and lot.
(b) All applicable local ordinances authorized by this
section.
(c) Payment of all fines imposed by a local government as a
result of the person's noncompliance with state law or a local
ordinance authorized by this act.
Sec. 9. (1) After consultation with and considering comments
from representatives of the manufactured housing industry and other
interested parties, the department shall promulgate rules to
establish fees and charges for the issuance of licenses or permits
under section 5.
(2) The fees and charges under this act shall be applied
solely to the implementation of the act and shall constitute the
total funding for the commission except as provided in 1959 PA 243,
MCL 125.1035 to 125.1043.
(3) A fee shall not be charged for an investigation conducted
pursuant to section 36.
(4)
A fee shall not be charged or collected by the commission
The commission shall not charge or collect a fee in excess of that
necessary to administer and enforce this act and satisfy the
requirements for the department to qualify as the state
administrative agency for this state under 24 CFR part 3282. The
department may charge fees that are necessary to administer its
obligations under 24 CFR part 3282 to the extent authorized by the
United States Department of Housing and Urban Development or any
successor department that administers 24 CFR part 3282.
(5) The department may promulgate rules to adjust the fees
established in subsection (1) and in sections 16, 21, 30a, and 30c
such that revenues obtained under this act equal appropriations by
the
legislature for the purpose of administering this act. However,
the
adjusted fees Fees adjusted
under this subsection shall not
exceed
the fees stated in sections 16, 21, 30a, and or 30c, as
applicable, except to the extent necessary for the department to
fulfill its obligations as the state administrative agency for this
state under 24 CFR part 3282.
(6) To accomplish the objectives of this act, a mobile home
code
fund is created. Fees established by the this act for the
issuance of licenses, plans approval, permits, certificates of
title,
and affidavits of affixture are intended to shall bear
a
reasonable relation to the cost, including overhead, of the
service. The state treasurer is the custodian of the fund and may
invest the surplus of the fund in investments that in the state
treasurer's
judgment are in the best interest serve the purposes of
the fund. Earnings from those investments shall be credited to the
fund. The state treasurer shall report to the director and the
legislature the amount of interest credited and the balance of the
fund as of September 30 of each year. The director shall supervise
and administer the fund. Fees received by the department and money
collected
under the this act shall be deposited in the fund and
shall
be appropriated by the legislature for the operation of the
bureau
of construction codes and fire safety and indirect overhead
expenses
in the department. for
the direct expenses of the
department that are related to the implementation and enforcement
of this act and the rules promulgated under this act. Funds that
are unexpended at the end of each fiscal year shall be returned to
the mobile home code fund.
Sec. 16. (1) A person shall not operate a mobile home park or
seasonal mobile home park without a license issued by the
department under this section. The term of a license is 3 years.
The
department shall issue a license only if all of the following
requirements are met:
(a) The applicant submits a complete license application to
the department. The name and contact information of an operator of
a mobile home park or seasonal mobile home park shall be stated on
the application and included on the license.
(b) Certifications and recommendations of appropriate agencies
and local governments are submitted to and approved by the
department.
(c) The applicant pays the fee set forth in subsection
(4).(5).
(d) The mobile home park or seasonal mobile home park was
approved
as being found to be in substantial compliance after its
most recent inspection under section 17.
(2) A person that becomes an owner shall notify the department
within 30 days after becoming an owner and shall immediately after
becoming an owner apply to the department for a license under
subsection (1). An owner shall notify the department within 30 days
after a change of ownership occurred. An owner shall notify the
department within 30 days of a change of mailing or electronic
business address of any owner or operator.
(3) Not more than 180 days after the effective date of the
amendatory act that added this subsection, the department shall
publish and maintain on the department's website a list of every
mobile home park and seasonal mobile home park located in this
state. The list shall indicate for each mobile home park and
seasonal mobile home park whether it possesses a license under
subsection (1) and, if so, the license number issued by the
department. The department shall update the list of mobile home
parks and seasonal mobile home parks not less than once monthly.
(4) (2)
The commission shall promulgate
rules to do all of the
following:
(a) Provide standards and procedures for the commission to
determine whether a mobile home park or seasonal mobile home park
that is not in substantial compliance with the rules promulgated
under sections 5 and 6 is a distressed park. The standards and
procedures shall provide the owner with an opportunity for an
evidentiary hearing and require the commission to consider at least
all of the following:
(i) The length of time the mobile home park or seasonal mobile
home park has not been in substantial compliance with the rules
promulgated under sections 5 and 6.
(ii) Whether the owner or operator was notified and had
sufficient opportunity to bring the mobile home park or seasonal
mobile home park into substantial compliance.
(iii) Any imminent threat to the health or safety of the
residents of the mobile home park or seasonal mobile home park.
(iv) Whether the mobile home park or seasonal mobile home park
has been or is likely to be abandoned by the owner or operator.
(b) Require the owner of a distressed mobile home park or
seasonal mobile home park to post financial assurance in the form
of a bond, cash deposit, or other financial arrangement to ensure
the
repair and cleanup of that the mobile home park or seasonal
mobile home park is brought into substantial compliance with rules
promulgated under sections 5 and 6, including the repair of
substandard or noncomplying park-owned utility systems and the
removal and disposal of abandoned mobile homes, scrap material, or
other waste.
(3)
Not more than 180 days after the effective date of the
amendatory
act that added this subsection, the commission shall
submit
a report on progress on rule promulgation under subsection
(2)
to the standing committees of the senate and house of
representatives
with primary responsibility for legislation
affecting
mobile home parks.
(5) (4)
The fee for a license to operate a
mobile home park is
$225.00, plus an additional $3.00 for each home site in excess of
25 home sites in the mobile home park, or any lesser amount
established pursuant to section 9(5). The fee for a license to
operate a seasonal mobile home park is $120.00, plus an additional
$1.50 for each home site in excess of 25 home sites in the seasonal
mobile home park, or any lesser amount established pursuant to
section 9(5).
(6) (5)
If a person submits a timely
application for renewal
of a license and pays the appropriate fee, the person may continue
to operate a mobile home park or seasonal mobile home park unless
notified that the application for renewal is not approved.
(7) (6)
A campground that is currently
licensed under sections
12501 to 12516 of the public health code, 1978 PA 368, MCL
333.12501 to 333.12516, and was previously licensed under the
former licensing provisions of 1959 PA 243, MCL 125.1035 to
125.1043, as a seasonal trailer park may apply for and shall be
granted a license as a seasonal mobile home park under this act if
the campground meets all other requirements for licensure under
this act as a seasonal mobile home park.
Sec. 21. (1) A mobile home dealer shall not engage in the
retail sale of a mobile home without a license issued by the
department under this section.
(2) A person shall not install, service, or repair mobile
homes unless the person possesses a license issued by the
department.
(3) (2)
A mobile home dealer, mobile home
installer, or
repairer may obtain an initial or renewal license by filing with
the commission an application together with consent to service of
process in a form prescribed by the commission pursuant to section
35.
(4) (3)
An The department shall issue
to a qualified applicant
who has paid the appropriate fee an initial or renewal license
under
this act shall be issued for a
term of 3 years. Licenses
shall expire on October 1.
(5) (4)
The license fee for a mobile home
dealer is $450.00 or
any other lesser amount established pursuant to section 9(5).
(6) (5)
The license fee for a mobile home
installer or
repairer is $150.00 or any other lesser amount established pursuant
to section 9(5).
(7) (6)
A licensed mobile home dealer,
mobile home installer,
or repairer may file an application for the license of a successor,
whether or not the successor is then in existence, for the
unexpired portion of the year. The commission may grant or deny the
application.
(8) (7)
A licensee who submits a timely
application for
renewal of a license and pays the appropriate fee may continue
sales of mobile homes unless notified that the application for
renewal is not approved.
Sec. 36. (1) The department, a prosecuting attorney, or a law
enforcement
officer of a municipality may:shall
do all of the
following:
(a) Make public or private investigations within or without
this state he or she considers necessary to determine if a person
violated or is about to violate this act or a rule promulgated or
order issued under this act. The department may inspect any
premises
licensed under this act for violation of to determine
whether
the licensee violated this act ,
the code, or rules
promulgated
pursuant to under this act.
(b) Require a licensee to file a written statement in response
to a complaint of an alleged violation of this act or the rules
promulgated under this act received by a local government and
forwarded to the licensee. The statement shall state the facts and
circumstances concerning the matter raised in the complaint. If the
licensee does not make the required statement within 15 days after
the licensee receives the letter requiring the written statement,
the department, upon its own action or upon petition by the
prosecuting attorney or law enforcement officer of the municipality
issuing
the letter, may shall issue an order directing a response
by the licensee.
(2) A prosecuting attorney or a law enforcement officer of a
municipality shall present any evidence of an alleged violation of
this act or rule promulgated under this act to the department. The
department
may shall refer the evidence as is available concerning
violations of this act to the attorney general or the proper
prosecuting
attorney who, with or without a reference, may shall
institute appropriate criminal proceedings under this act.
(3) Before, or simultaneous with, the commencement of a
criminal proceeding or a proceeding in which injunctive relief is
sought by the local government, that local government shall serve
copies of all pleadings in the matter upon the department.
(4)
The department shall render provide
assistance to a local
government or state agency conducting investigations or proceedings
under this section. The department may use all investigative powers
conferred upon it to assist a local government.
Sec.
38. (1) The department may shall
issue an order to show
cause why an order imposing sanctions or penalties allowed under
this act should not be issued by the commission if the department
finds that the order is in the public interest, and any of the
following:
(a) An application filed pertaining to a license, a disclosure
statement, or a related document filed with the department in
connection with a mobile home license, is incomplete in any
material respect or contains a statement which is false or
misleading,
in the light of the circumstances under which it is
made.
(b) A provision of this act, or a rule, order, or condition
lawfully imposed under this act, was not complied with or was
violated in connection with the offering by the person filing the
document; the developer, dealer, or operator; a partner, officer,
director, proprietor, or manager of the developer, dealer, or
operator; or a person directly or indirectly controlling, or
directly controlled by, the developer, dealer, or operator.
(c)
The project mobile home
park or seasonal mobile home park
worked or tended to work a fraud or deception or would so operate,
or
the project mobile home
park or seasonal mobile home park would
create an unreasonable risk to prospective tenants, as defined by
rules promulgated by the commission.
(d) The developer, dealer, or operator; a partner, officer,
director, proprietor, or manager of the developer, dealer, or
operator; a person directly or indirectly controlling or directly
controlled by the developer, dealer, or operator; or a person
identified in the application for a license, or a disclosure
statement,
was within the past 10 years preceding
the issuance of
the order to show cause convicted of an offense under this act, or
is the subject of an administrative order issued under this act, or
had
a civil judgment entered against him or her the person as a
result of a violation of this act or a rule promulgated or order
issued pursuant to this act, and the department determines that the
involvement
of the person in the sale or development of the project
mobile home park or seasonal mobile home park creates an
unreasonable risk to prospective tenants or mobile home purchasers.
(e) The developer, dealer, or operator; a partner, officer,
director, proprietor, or manager of the developer; a person
directly or indirectly controlling or directly controlled by the
developer, dealer, or operator; or a person identified in the
application for a license, or a disclosure statement, was convicted
of a violation or the subject of an administrative order or civil
judgment as a result of a violation of a statute regulating the
offering of securities or franchises or licensing or regulating
builders,
real estate brokers, or real estate salespersons. , or of
violation
of the land sales act, Act No. 286 of the Public Acts of
1972,
being sections 565.801 to 565.835 of the Michigan Compiled
Laws,
or a rule promulgated or an order issued under that act.
(f) The applicant's method of business, construction,
development,
or sales includes or would include illegal
activities.
which
are illegal.
(g) The applicant failed to pay the proper fee.
(h) The applicant failed to comply with the state warranty
laws.
(2) When it appears to the department that a person engaged in
an act or practice constituting a violation of this act or a rule
promulgated or order issued under this act, the department may
issue a notice to show cause why a cease and desist order should
not be issued.
(3) After 10 days' notice and opportunity for hearing, the
department
may stop construction as to on
part or all of a project
if
continuing the building mobile
home park or seasonal mobile home
park if continued construction will cause irreparable harm to
residents
and prospective residents of the project.mobile home park
or seasonal mobile home park.
Sec.
43. (1) If, Except as
provided in subsection (2), if,
after notice and a hearing as provided in the administrative
procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, a person
is determined to have violated this act, the commission may impose
1 or more of the following penalties:
(a) Censure.
(b) Probation.
(c) License limitation.
(d) License suspension. The commission may request the
appointment of a receiver when taking action under this
subdivision.
(e) License revocation. The commission may request the
appointment of a receiver when taking action under this
subdivision.
(f) License denial.
(g) A civil fine of not more than $50,000.00.
(h) Restitution.
(2) If, after notice and a hearing as provided in the
administration proceedings act of 1969, 1969 PA 306, MCL 24.201 to
24.238, a person is determined to have operated a mobile home park
or seasonal mobile home park without a license as required under
section 16, the commission shall impose a fine of not more than
$100,000.00.
(3)
(2) A fine collected under this section shall be
deposited
with the state treasurer and credited to the mobile home code fund
created in section 9.
(4) (3)
If the department determines that
the owner or
operator of a mobile home park or seasonal mobile home park has
violated this act or rules promulgated under this act by failing to
maintain or repair any infrastructure or facilities of the mobile
home park or seasonal mobile home park, the department shall give
notice of the determination by personal service or first-class mail
to the local governments where the mobile home park is located, the
owner, the operator, and, if financial assurance in the form of a
bond
has been posted under rules promulgated under section 16(2),
16(4), the surety executing the bond. If the owner, operator, or
surety does not perform or commence the specified maintenance or
repair within 60 days after service of the notice, the department
or its authorized representative may enter the mobile home park or
seasonal mobile home park and perform the specified maintenance or
repair. At the request of the owner, operator, or surety, the
department may grant an extension of up to an additional 90 days.
The owner, operator, and any surety are jointly and severally
liable for all expenses incurred by the department or its
authorized representative in performing the specified maintenance
or repair. The department shall certify the claim to the owner,
operator, and any surety, listing in the claim the items of expense
in performing the maintenance or repair, and shall draw on any
financial assurance for the payment of the claim. The department
shall notify the local government where the mobile home park is
located when the specified maintenance or repair has been
completed.
(5) (4)
This section does not prohibit
actions from being
taken under other sections of this act.
(6) (5)
The pursuit in court of the lawful
rights of a
licensee does not constitute a violation of this act, regardless of
the outcome of the court action.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.