HOUSE BILL NO. 4298
February 23, 2021, Introduced by Reps. Cherry,
Mueller, Sneller, Witwer, Hertel, Kahle and Clements and referred to the
Committee on Regulatory Reform.
A bill to amend 1987 PA 96, entitled
"The mobile home commission act,"
by amending section 16 (MCL 125.2316), as amended by 2015 PA 40.
the people of the state of michigan enact:
Sec. 16. (1) No later than January 1, 2023, after consultation with the
commission, consumer advocates, legal aid groups, representatives of the
manufactured housing industry, residential groups, local governments, and other
interested parties, the department shall revise and promulgate rules governing
the licensure of owners of mobile home parks and seasonal mobile home parks,
including determining standards to meet the licensing requirements of this
section.
(2)
(1) A person shall
not operate own
a mobile home park or seasonal mobile home park without a
license. The If
the department determines that an owner of a mobile home park or seasonal
mobile home park is not licensed, the department shall impose an administrative
fine of not more than $100,000.00 after notice and a hearing as provided under
the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328. A
person who has applied to the department for a license is not in violation of
this subsection unless the department has denied the person's license
application and the person has exhausted an administrative review by the
department under the administrative procedures act of 1969, 1969 PA 306, MCL
24.201 to 24.328, and the commission under section 43 related to the department
denying the license application. A license issued by the department on or
before December 31, 2021 expires on December 31, 2023. Beginning on January 1,
2024, the term of a license is 3
2 years. The department shall within 60 days of receiving a completed license application issue
a license only if all of the following
requirements are met:
(a) The applicant submits a complete license application . that meets all of the following requirements:
(i) Shows the financial ability of the applicant to
own and operate the mobile home park or seasonal mobile home park by submitting
documentation, as required by the department, to demonstrate the applicant's financial
viability to operate and maintain the mobile home park or seasonal mobile home
park in accordance with financial standards as promulgated by rule.
(ii) Affirms the applicant's ability to comply with
the applicable laws, rules, and regulations of this state.
(iii) Affirms that
the applicant, any general partner, managing member, subsidiary, affiliate, or
other person controlled by or under common control with the applicant has not
been denied licensure for a mobile home park or seasonal mobile home park or
had a license to own a mobile home park or seasonal mobile home park suspended,
canceled, or revoked by a state agency within the past 7 years, or demonstrates
that a suspended, canceled, or revoked license has since been reinstated or
reissued.
(iv) Affirms that
the applicant and any person with decision- or policy-making authority for the
applicant, or who is responsible for the applicant's day-to-day operation of
the mobile home park or seasonal mobile home park, has not been convicted of a
crime involving fraud, deceit, or nonfeasance within the past 7 years.
(v) Affirms that
the applicant, and any general partner, managing member, subsidiary, affiliate,
or other person controlled by or under common control with the applicant does
not have a record of unjustifiable rent increases within the past 7 years.
(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).(7)
or (8).
(d) The mobile home park or seasonal mobile home park was
approved as being in substantial compliance after its most recent inspection
under section 17.
(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 the mobile home park or seasonal mobile home park, 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.
(3) The department may require a signed affidavit from the
applicant that attests to the veracity of the information in subsection (2)(a)(i) to (v) and shall deny the application if the
applicant does not meet the requirements of subsection (2)(a)(i) to (v).
(4) To determine whether an applicant is eligible for a
license under this section, the department may conduct a criminal background
check on the applicant using the law enforcement information network as
provided under the C.J.I.S policy council act, 1974 PA 163, MCL 28.211 to
28.215, or the internet criminal history access tool (ICHAT) maintained by the
department of state police.
(5) Beginning on January 1, 2023, a person that has not been
previously licensed under subsection (2) and seeks a license to own a mobile
home park or seasonal mobile home park shall apply for a provisional license to
own a mobile home park or seasonal mobile home park. The applicant must be
issued a provisional license before taking ownership of a mobile home park or
seasonal mobile home park. The provisional license is valid for 2 years and
must not be extended or renewed. The department shall issue a provisional
license under this subsection if the applicant meets the requirements of
subsection (2)(a) to (c). A provisional license issued under this subsection
entitles the holder of the provisional license to all of the rights,
privileges, requirements, and penalties that are applicable to the holder of a
license issued under subsection (2).
(6) Within 1 year of the issuance of a provisional license
under subsection (5), the department shall inspect and identify any violation
of this act regarding the ownership or operation of a mobile home park or
seasonal mobile home park by the owner of that mobile home park or seasonal
mobile home park issued a provisional license under subsection (5). The
department shall notify the owner of the mobile home park or seasonal mobile
home park issued a provisional license of any violation found during the inspection
and provide a notice as required under section 37.
(7) (4) The fee fees for a license to operate issued under subsection (2) are as follows unless a lesser
amount is established under section 9(5):
(a) Until September 30, 2021, as follows:
(i) To own 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
(ii) To own 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).
(b) Beginning on October 1, 2021 through December 30, 2023,
as follows:
(i) To own a mobile
home park is $350.00, plus an additional $4.75 for each home site in excess of
25 home sites in the mobile home park.
(ii) To own a seasonal
mobile home park is $200.00, plus an additional $2.25 for each home site in
excess of 25 home sites in the seasonal mobile home park.
(c) Beginning on December 31, 2023, as follows:
(i) To own a mobile
home park is $450.00, plus an additional $5.25 for each home site in excess of
25 home sites in the mobile home park.
(ii) To own a seasonal
mobile home park is $250.00, plus an additional $2.75 for each home site in
excess of 25 home sites in the seasonal mobile home park.
(8) Beginning on January 1, 2023, the fee for a provisional
license issued under subsection (5) to own a mobile home park is $450.00, plus
an additional $5.25 for each home site in excess of 25 home sites in the mobile
home park, or any lesser amount established under section 9(5). Beginning on
January 1, 2023, the fee for a provisional license issued under subsection (5) to
own a seasonal mobile home park is $250.00, plus an additional $2.75 for each
home site in excess of 25 home sites in the seasonal mobile home park, or any
lesser amount established under section 9(5).
(9) (5) If a
person submits a timely application for renewal of a license issued under subsection (2) and pays the appropriate
fee, the person may continue to operate own a mobile home park or seasonal mobile home park
unless notified that the application for renewal is not approved.
(10) The department may issue a license to own a mobile home park
or seasonal mobile home park to a nonresident of this state if the nonresident
complies with the requirements of this act.
(11) The department shall not issue a license to own a mobile
home park or seasonal mobile home park to a foreign corporation unless the
foreign corporation is authorized to do business in this state by the
department, files with the commission a consent to service of process in a form
prescribed by the commission pursuant to section 35, and complies with all
other requirements of this act.
(12) An unlicensed owner
of a mobile home park or seasonal mobile home park shall not collect rent or take
any action for possession against residents. If the tenant pays the utility
service fees directly to the utility service provider, the tenant must continue
to pay the utility service fees directly to the utility service provider. No rent or fees may be
recovered by an owner of a mobile home park or seasonal mobile home park for
any period of time the mobile home park is unlicensed. A tenant of a mobile home park or seasonal
mobile home park may bring an action on his or her own behalf for a violation
of this subsection in a court of competent jurisdiction. Remedies available
include, but are not limited to, an injunction by a court of record prohibiting
further violations, actual damages incurred by the tenant, and punitive damages
as determined by a jury or the court.
(13) (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 must 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.
Enacting section 1. This amendatory act does not
take effect unless all of the following bills of the 101st Legislature are
enacted into law:
(a) Senate Bill No.____ or House Bill No. 4301
(request no. 00774'21).
(b) Senate Bill No.____ or House Bill No. 4304
(request no. 00775'21).
(c) Senate Bill No.____ or House Bill No. 4300
(request no. 01198'21).
(d) Senate Bill No.____ or House Bill No. 4299
(request no. 01201'21).
(e) Senate Bill No.____ or House Bill No. 4303
(request no. 01312'21).
(f) Senate Bill No.____ or House Bill No. 4302 (request no. 01469'21).