Bill Summary – FastDemocracy

HOUSE BILL NO. 5157
     October 17, 2023, Introduced by Reps. Hill, Rheingans, Byrnes, Brixie, Scott, Hope, Wegela,
       Wilson and Whitsett and referred to the Committee on Regulatory Reform.
          A bill to amend 1987 PA 96, entitled
    "The mobile home commission act,"
    by amending the title and sections 2, 3, 4, 5, 6, 7, 14, and 16
    (MCL 125.2302, 125.2303, 125.2304, 125.2305, 125.2306, 125.2307,
2314, and 125.2316), section 2 as amended by 2022 PA 33,
    sections 4 and 16 as amended by 2015 PA 40, sections 5 and 6 as
    amended by 2006 PA 328, and section 7 as amended by 2009 PA 215,
    and by adding sections 16b and 16c.
                     THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
                                            TITLE
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         An act to create a mobile home manufactured housing
 commission; to prescribe its powers and duties and those of local
 governments; to provide for a mobile home code and the licensure,
 regulation, construction, operation, and management of mobile home
 parks, the licensure and regulation of retail sales dealers,
 warranties of mobile homes, and service practices of dealers; to
 provide for the titling of mobile homes; to prescribe the powers
 and duties of certain agencies and departments; to provide remedies
 and penalties; to declare the act to be remedial; to repeal this
 act on a specific date; and to repeal certain acts and parts of
 acts.
         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) "Code" means all or a part of the mobile home code
 promulgated under section 5.
         (c) "Commission" means the manufactured housing commission.
         (d) "Complete license application" means an application that
 contains all licensing information required under section 16,
 including any applicable licensing fees or any administrative fines
 previously assessed against the applicant by the department or
 commission that remain unpaid at the time of the license
 application, if applicable, unless the administrative fines are
 pending administrative appeal under the department's rules or the
 administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
 24.328.
         (e) (d) "Department" means the department of licensing and
 regulatory affairs, except as follows:
         (i) Department means the department of state in all of the
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 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 and 30k.
       (ii) Department, as used with respect to all 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 environment, Great Lakes, and energy.
       (f) (e) "Guideline" means that term as defined in section 3 of
 the administrative procedures act of 1969, 1969 PA 306, MCL 24.203.
       (g) (f) "Installer and repairer" means a person, including a
 mobile home dealer, that for compensation installs or repairs
 mobile homes.
       (h) "Licensed real estate broker" means a real estate broker
 licensed under article 25 of the occupational code, 1980 PA 299,
 MCL 339.2501 to 339.2518.
       (i) (g) "Local government" means a county or municipality.
       (j) "Material deficiency" means a violation of this act or an
 administrative rule promulgated under this act that threatens the
 health, safety, or welfare of the residents of the mobile home park
 or seasonal mobile home park.
       (k) (h) "Mobile home" means a any of the following:
       (i) A structure that is built before June 5, 1976 and 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
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 contained in the structure.
       (ii) A structure that meets all of the following requirements:
       (A) Is built on or after June 5, 1976.
       (B) Complies with the manufactured housing construction and
 safety standards act of 1974, 42 USC 5401 to 5426.
       (C) Displays the required red certification label on the
 exterior of each transportable section.
       (l) (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.
       (m) (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 that is
 offered to the public for that purpose regardless of whether a
 charge is made for the parcel or tract of land, together with any
 building, structure, enclosure, street, equipment, or facility used
 or intended for use incident to the occupancy of a mobile home.
       (n) (k) "Municipality" means a city, village, or township.
       (o) (l) "Person" means an individual, partnership, association,
 trust, or corporation, or any other legal entity or combination of
 legal entities.
       (p) "Person that has a beneficial interest" means a person
 that is a managerial employee of the applicant and has a direct or
 indirect ownership interest of more than 10% in the applicant's
 mobile home park or seasonal mobile home park. For purposes of this
 subdivision, a person that has a beneficial interest is any of the
 following for each applicant:
       (i) For an individual or sole proprietorship, the individual or
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 sole proprietor.
       (ii) For a partnership or limited liability partnership, all
 partners.
       (iii) For a limited partnership or limited liability limited
 partnership, all general and limited partners, excluding a limited
 partner that holds a direct or indirect ownership interest of 10%
 or less and does not exercise control over or participate in the
 management of the partnership.
       (iv) For a limited liability company, all members and managers,
 excluding a member that holds a direct or indirect ownership
 interest of 10% or less and does not exercise control over or
 participate in the management of the company.
       (v) For a privately held corporation, all corporate officers
 or persons with equivalent titles, directors, and stockholders,
 excluding a corporate officer, director, or stockholder that holds
 a direct or indirect ownership interest of 10% or less.
       (vi) For a publicly held corporation, all corporate officers or
 persons with equivalent titles, directors, and stockholders,
 excluding a corporate officer, director, or stockholder that holds
 a direct or indirect ownership interest of 10% or less.
       (vii) For a nonprofit corporation, all individuals and entities
 with membership or shareholder rights in accordance with the
 nonprofit corporation's articles of incorporation or bylaws.
       (viii) For a trust, all trustees or persons that control or
 direct the affairs of the trust, including any beneficiary that
 receives or has the right to receive more than 10% of the gross or
 net profit of the trust during any full or partial calendar year.
       (q) (m) "Recreational vehicle" means a vehicle primarily
 designed and used as temporary living quarters for recreational,
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 camping, or travel purposes, including a vehicle having its own
 motor power or a vehicle mounted on or drawn by another vehicle.any
 of the following:
       (i) A vehicle that meets all of the following requirements:
       (A) Is built on a single chassis.
       (B) Is designated to be self-propelled or permanently towable
 by a light duty truck, car, or sports utility vehicle.
       (C) Is regulated by the National Highway Traffic Safety
 Administration as a vehicle or vehicle equipment.
       (D) Does not require a special highway use permit for
 operation on the highways.
       (E) Is designated and marketed as primarily not for use as a
 permanent dwelling but as temporary living quarters for
 recreational, camping, travel, or seasonal use.
       (F) Is easily transported and set up on a daily basis by an
 individual.
       (ii) Has been certified and has the appropriate label that
 shows that it has been built using the standards for recreational
 vehicles as described in NFPA 1192. For purposes of this
 subdivision, a recreational vehicle does not include a mobile home.
       (r) (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 that is offered to the public for
 that purpose regardless of whether a charge is made for the parcel
 or tract of land, 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 under sections 12501 to 12516 of the
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 public health code, 1978 PA 368, MCL 333.12501 to 333.12516.
       (s) (o) "Secured party" means that term as defined in section
 9102 of the uniform commercial code, 1962 PA 174, MCL 440.9102.
       (t) (p) "Security interest" means that term as defined in
 section 1201 of the uniform commercial code, 1962 PA 174, MCL
 440.1201.
       (u) (q) "Termination statement" means that term as defined in
 section 9102 of the uniform commercial code, 1962 PA 174, MCL
 440.9102.
       (v) "Unjustifiable rent increase" means, except as otherwise
 provided in section 16c, a net increase in combined lot rent and
 other fees above the increase in the Consumer Price Index.
       Sec. 3. (1) The mobile home manufactured housing commission is
 created within the department. of commerce.
       (2) The commission consists of 11 members appointed by the
 governor with the advice and consent of the senate, each of whom
 shall must be a citizen of this state.
       (3) The members of the commission shall include each of the
 following:
       (a) A representative of an organization whose membership
 consists of mobile home residents.
       (b) A representative of financial institutions.
       (c) Two operators An owner of a licensed mobile home park.
 having 100 or more sites and 1 operator of a licensed mobile home
 park having less than 100 sites.
       (d) A representative of organized labor.
       (e) An elected official of a local government.
       (f) A licensed mobile home dealer.
       (g) One A resident of a licensed mobile home park. having 100
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 or more sites and 1 resident of a licensed mobile home park having
 less than 100 sites.
       (h) A manufacturer of mobile homes.
       (i) A representative of a legal aid group.
       (j) A representative of a housing advocacy organization.
       (k) A director of a state department or the designee of the
 director.
       (4) A person appointed to be a member the commission under
 subsection (3)(a), (d), (e), (g), or a member of that person's
 immediate family shall not have more than a 1% ownership interest
 in or income benefit from a manufacturer of mobile homes, a retail
 seller of mobile homes, a licensed mobile home park, or a supplier
 of ancillary products or services to the mobile home industry.
       (5) The term of office for each member shall of the commission
 must be for 3 years. A vacancy in the office of a member shall must
 be filled by the governor for the remainder of the unexpired term,
 not more than 1 month after the vacancy is created, and in the same
 manner as the original appointment.
       (6) The legislature shall establish annually a per diem
 compensation of for the members of the commission and the a
 schedule for reimbursement of expenses. shall be established
 annually by the legislature.
       (7) Six members of the commission constitute a quorum for all
 purposes, notwithstanding the existence of a vacancy in the
 commission's membership. Action may be taken by the commission by a
 vote of a majority of the members appointed and serving. Meetings
 of the commission may be called by the chairperson or by 3 members
 of the commission on 3 business days' actual notice. At least 1
 meeting shall must be held each calendar quarter. The commission
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 may hold meetings anywhere in this state.
       (8) The commission shall elect a member of the commission as
 its chairperson and another member as its vice-chairperson. The
 duties and powers of the chairperson and vice-chairperson shall
 must be as prescribed in the commission's rules.
       (9) A member of the commission may be removed from office by
 the governor for inefficiency, neglect of duty, or misconduct or
 malfeasance in office. A member of the commission who has a direct
 pecuniary interest in a matter before the commission shall disclose
 that interest before the commission taking takes action with
 respect to the matter. , which The disclosure shall must become a
 part of the record of the commission's official proceedings.
       Sec. 4. (1) The commission may do all of the following:
       (a) After seeking consultation with and considering comments
 from representatives of the manufactured housing industry local
 governments 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.
       (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 an appropriate number of employees with the
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 appropriate qualifications as required to implement and enforce
 this act and the rules promulgated under this act, including, but
 not limited to, staff to conduct community inspections, review
 financial information, manage the licensing process, and
 investigate potential violations of 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, At every quarterly
 meeting of the commission, 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 must be sent by first-class mail or electronic mail email to
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 each of