HOUSE BILL NO. 6006

July 23, 2020, Introduced by Reps. Sneller, Cherry, Kahle, Mueller, Hertel and Frederick and referred to the Committee on Regulatory Reform.

"The mobile home commission act,"

by amending sections 4 and 43 (MCL 125.2304 and 125.2343), as amended by 2015 PA 40.

the people of the state of michigan enact:

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, including, but not limited to, residents of mobile home parks, 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.

(d) Conduct public hearings relating to the powers prescribed in this subsection.

(2) The director or an authorized representative of the director department shall do all of the following:

(a) Employ 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.

(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, 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.

(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.

(4) Not later than January 1, 2022, the department shall establish or cause to be established a database of owners and operators of mobile home parks and seasonal mobile home parks that includes contact information for the owners and operators and is available to the public on the department's website. An owner or operator shall annually update their contact information and shall also update their contact information within 30 days of a change of ownership. The database shall provide a means by which an owner or operator may annually update the owner's or operator's contact information. The department shall update its published list of mobile home parks at least once a month.

Sec. 43. (1) 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.

(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) An administrative fine of not more than $5,000.00.

(h) (g) A civil fine of not more than $50,000.00.

(i) (h) Restitution.

(2) If the department determines that a mobile home park located in this state is owned or operated by a person that does not have a license issued by the department to own or operate that mobile home park, the department shall provide written notice to the unlicensed owner or operator of the mobile home park. The written notice provided under this subsection must require the unlicensed owner or operator of the mobile home park to apply to the department for licensure within 30 days of the date of the notice. If the unlicensed owner or operator of the mobile home park does not apply for licensure within the 30-day period provided under this subsection, the department shall commence proceedings to impose a fine on the unlicensed owner or operator of the mobile home park. If the department determines that a person owned or operated a mobile home park or seasonal mobile home park without a license as required under section 16, the department shall impose a fine of not more than $100,000.00 after notice and a hearing as provided under the administrative procedure act of 1969, 1969 PA 306, MCL 24.201 to 24.328.

(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), 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 does not take effect unless all of the following bills of the 100th Legislature are enacted into law:

(a) Senate Bill No.____ or House Bill No.____ (request no. 05128'19).

(b) Senate Bill No.____ or House Bill No.____ (request no. 05273'19 *).

(d) Senate Bill No.____ or House Bill No.____ (request no. 06638'20 *).

(e) Senate Bill No. ____ or House Bill No. ____ (request no. 07323'20).