Bill Text: MI SB0486 | 2023-2024 | 102nd Legislature | Introduced
Bill Title: Mobile homes: other; mobile home commission act; revise. Amends title & secs. 2, 3, 4, 5, 6, 7, 14 & 16 of 1987 PA 96 (MCL 125.2302 et seq.) & adds secs. 16b & 16c. TIE BAR WITH: SB 0490'23, SB 0487'23, SB 0488'23, SB 0489'23
Spectrum: Partisan Bill (Democrat 8-0)
Status: (Introduced) 2024-06-12 - Referred To Committee Of The Whole With Substitute (s-1) [SB0486 Detail]
Download: Michigan-2023-SB0486-Introduced.html
SENATE BILL NO. 486
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, 125.2314, 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:
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.
(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 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 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 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, 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 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 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 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 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 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) No later than July 1, 2024, the department shall establish or cause to be established a database of mobile home park or seasonal mobile home park owners that includes every licensed mobile home park or seasonal mobile home park owner's contact information, license number, and current licensing status. The department shall make the database available to the public on the department's website. The database must include each mobile home park or seasonal mobile home park owner that has a license to operate a mobile home park or seasonal mobile home park. The department must establish a method in which the public may submit a reporting form on its website regarding potentially unlicensed mobile home park or seasonal mobile home park owners and the department must update the public database within 30 days of a change in licensure status. To the extent it complies with the requirements of this subsection and subsection (5), the department may utilize an existing database.
(5) The database described in subsection (4) must provide a means by which a mobile home park or seasonal mobile home park owner may update the mobile home park or seasonal mobile home park owner's contact information. Every mobile home park or seasonal mobile home park owner must designate an individual who is an owner, officer, director, or employee of the mobile home park or seasonal mobile home park owner as the mobile home park or seasonal mobile home park owner's designee to communicate with the department and must provide that individual's contact information to the department, including the individual's current street address, monitored email address, and operational telephone number. A mobile home park or seasonal mobile home park owner must notify the department within 30 days if the mobile home park or seasonal mobile home park owner sells a mobile home park or seasonal mobile home park and if the mobile home park or seasonal mobile home park owner's designee changes or dies. If a mobile home park or seasonal mobile home park owner fails to update the information required in this subsection, the department shall, on the mobile home park or seasonal mobile home park owner's subsequent application to renew the mobile home park or seasonal mobile home park owner's license, assess an additional processing fee of $100.00 to update the information required in this subsection in order to process the license application. If a mobile home park or seasonal mobile home park owner fails to update the information required in this subsection more than once and after the department assesses the additional $100.00 processing fee required under this subsection, the department shall consider the subsequent failure to update the information required under this subsection as a condition for licensure under section 16.
Sec. 5. (1) After No later than July 1, 2025, after seeking consultation with and considering comments from representatives of the manufactured housing industry the commission, local governments, and other interested parties, the department shall promulgate revise the mobile home code subject to section 4. The revisions to the code shall must consist of rules governing all of the following:
(a) The licensure, density, layout, permits for construction, construction of mobile home parks including standards for fire hydrants, roads, road signs, utilities, open space, spaces, or proposed community buildings and recreational facilities, and safety measures sufficient to protect health, safety, and welfare of mobile home park residents, except water supply, sewage collection and treatment, and drainage facilities which that are regulated by the department of environmental quality.environment, Great Lakes, and energy.
(b) The business, sales, and service practices of mobile home dealers, including requiring advertisements to contain contact information, as well as placing parameters on dealer sales financing practices and terms, claims, and conditions to the sale of a mobile home.
(c) The business practices of mobile home installers and repairers, including training and licensing requirements for individuals who install and repair mobile homes in mobile home parks or seasonal mobile home parks.
(d) The licensure and regulations of mobile home installers and repairers.
(d) (e) The setup and installation of mobile homes inside mobile home parks or seasonal mobile home parks.
(e) (f) The regulation of the responsibilities, under the 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.
(f) (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 that are being sold by the dealer and of which the dealer has knowledge.
(g) (h) Applications for and issuance of certificates of title for mobile homes.
(h) Inspections, including audit inspections of mobile home parks and seasonal mobile home parks.
(i) Retailers and retailers' agents practices as well as prohibited practices, including violations of this act and the rules promulgated under this act, acting on an unlicensed person's behalf, allowing a license to be used by an unlicensed person, disclosure of retailers' interest to third parties, and disclosure of retailers' interest in transactions.
(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 fire hydrants, roads, road signs, utilities, open space, spaces, proposed community buildings and recreational facilities, and safety measures sufficient to protect the health, safety, and welfare of seasonal mobile home park residents, except water supply, sewage collection and treatment, and drainage facilities , which shall be that are regulated by the department of environmental quality.environment, Great Lakes, and energy.
(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 not rescinded on the effective date of the amendatory act that added this subsection are authorized, valid, and enforceable and must remain in effect until July 1, 2025 or the date on which the department promulgates administrative rules pursuant to the amendatory act that added this subsection, whichever is earlier.
Sec. 6. (1) The department of environment, Great Lakes, and energy has the authority to promulgate rules regarding water supply systems, sewage collection, and disposal systems for mobile home parks and seasonal mobile home parks to ensure that the health and safety of residents of mobile home parks and seasonal mobile home parks are protected. The department of environment, Great Lakes, and energy may enter into an agreement with a local unit of government to enforce the rules promulgated under this act.
(2) After consultation with and considering comments from representatives of the manufactured housing industry and other interested parties, the department of environmental quality environment, Great Lakes, and energy shall promulgate rules for mobile home parks and seasonal mobile home parks setting forth minimum standards regulating:
(a) Water supply system.
(b) Sewage collection and disposal system.
(c) Drainage.
(d) Garbage and rubbish storage and disposal.
(e) Insect and rodent control.
(f) General operation, maintenance, and safety.
(g) Certification of compliance under section 17.
(3) (2) Representatives of local government shall act in an advisory capacity in the promulgation of the code.
(4) (3) The commission shall consult with appropriate state and local governments in developing the procedures for effective coordination of efforts. The commission shall recommend procedures to the governor and the legislature for coordinating state agency decisions and activities pertaining to this act.
Sec. 7. (1) Except as provided in subsection (7), 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), 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 is 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 must 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 must 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 must 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 United States Department of Housing and Urban Development under 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 must not contain roof configuration standards or special use zoning requirements that apply only to, or excludes, mobile homes. A local government ordinance shall must 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 pursuant to United States Department of Housing and Urban Development under 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 that ensure that mobile homes compare aesthetically to site-built housing located or allowed in the same residential zone.
(7) Notwithstanding anything in any provision 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 owner. 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 must not be less than 3 years unless the local government is responding to a complaint from a tenant. An inspection shall must 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 must 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.
(8) A local government may adopt an ordinance to require an owner of a mobile home park or seasonal mobile home park to post a surety bond to cover expenses for health and safety issues that may need to be addressed in the mobile home park or seasonal mobile home park.
Sec. 14. Upon completion of the construction of the mobile home park or seasonal mobile home park, the owner or operator of the mobile home park or seasonal mobile home park and a registered professional engineer or architect shall file with the department an affidavit certifying that the mobile home park or seasonal mobile home park, lot, and work were completed in accordance with the approved specifications and plans.
Sec. 16. (1) No later than July 1, 2025, after seeking consultation with the commission, 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.
(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 and any person that holds a beneficial interest in the applicant's mobile home park or seasonal mobile home park have not been denied a license to own a mobile home park or seasonal mobile home park, or a permit or other governmental permission to operate a mobile home park or seasonal mobile home park, or had a license to own a mobile home park or seasonal mobile home park, or a permit or other governmental permission to operate a mobile home park or seasonal mobile home park suspended, canceled, or revoked by this state or other governmental agency within the past 7 years, or demonstrates that a suspended, canceled, or revoked license, permit, or other governmental permission has since been reinstated or reissued. An application must not be denied under this subparagraph for either or both of the following reasons:
(A) Within the past 7 years, the applicant and any person that holds a beneficial interest in the applicant's mobile home park or seasonal mobile home park filed an application that was denied on the basis of failing to meet the requirements of subparagraph (i), if the current application meets the requirements of subparagraph (i).
(B) Within the past 7 years, the applicant and any person that holds a beneficial interest in the applicant's mobile home park or seasonal mobile home park filed an application that was denied on the basis of failing to meet the requirements of subparagraph (v), if the current application meets the requirements of subparagraph (v).
(iv) Affirms that the applicant and any person that holds a beneficial interest in the applicant's mobile home park or seasonal mobile home park have not been convicted of a crime involving fraud, deceit, or nonfeasance within the past 7 years.
(v) Affirms that the applicant and any person that holds a beneficial interest in the applicant's mobile home park or seasonal mobile home park do not have a record of unjustifiable rent increases within the past 7 years.
(vi) Affirms that before submitting the application, each mobile home park or seasonal mobile home park owned by the applicant, and any person that holds a beneficial interest in the applicant's mobile home park or seasonal mobile home park was in substantial compliance with the standards established by the department during the most recent inspection conducted by the department pursuant to section 17 and that all material deficiencies identified by the department during that inspection had been corrected.
(vii) Includes the name, working telephone number, mailing address, and working email address of an individual who is responsible for receiving and responding to communications for the mobile home park or seasonal mobile home park.
(viii) If a mobile home park or seasonal mobile home park is owned by a foreign corporation, provides the department with appropriate documentation to show it is authorized to do business in this state, and has filed with the commission a consent to service of process in a form prescribed by the commission pursuant to section 35.
(ix) Provides proof of ownership of or an option to purchase the mobile home park or seasonal mobile home park.
(x) Lists the name of any person that holds a beneficial interest in the mobile home park or seasonal mobile home park.
(b) Certifications and recommendations of appropriate agencies and local governments required to operate a mobile home park or seasonal mobile home park are submitted to and approved by the department. Nothing in this subdivision prohibits the assignment of a certificate or recommendation from an agency or local government to the owner of a mobile home park or seasonal mobile home park for the purposes of complying with this subdivision.
(c) The applicant pays and any person that holds a beneficial interest in the applicant's mobile home park or seasonal mobile home park pay the fee fees set forth in subsection (4).(8) or (9), and any administrative fines previously assessed against the applicant or any person that holds a beneficial interest in the applicant's mobile home park or seasonal mobile home park by the department or commission that remain unpaid at the time of the license application, if applicable.
(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 shall require a signed affidavit from the applicant that attests to the veracity of the information in subsection (2)(a)(i) to (x) and may require the applicant to submit additional documentation to support the information provided under subsection (2)(a)(i) to (x). The department shall deny the application if the department determines that the applicant does not meet the requirements attested to under subsection (2)(a)(i) to (x).
(4) To determine whether an applicant and any person that holds a beneficial interest in the applicant's mobile home park or seasonal mobile home park is eligible for a license under this section, the department may conduct a background check on the applicant and a person that holds a beneficial interest in the applicant's mobile home park or seasonal mobile home park 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. Notwithstanding subsection (1), after fingerprints have been submitted to the appropriate agency, the department has an additional 60 days to issue a license if necessary to accommodate the process of obtaining a background check. As used in this subsection, "background check" means a criminal history check that examines federal and state government records in a manner that allows for the successful identification of a criminal conviction that involves fraud, deceit, or nonfeasance.
(5) A licensed owner of a mobile home park or seasonal mobile home park shall post a copy of a license issued under this section in a conspicuous place in an area that is accessible to the residents of the mobile home park or seasonal mobile home park. If the department determines that an owner of a mobile home park or seasonal mobile home park violated this subsection, the department may impose an administrative fine of not more than $5,000.00, after notice and a hearing as provided under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to MCL 24.328.
(6) Beginning July 1, 2024, a person that seeks to license a mobile home park or seasonal mobile home park that has not been previously licensed to that person under subsection (2) shall apply for a provisional license for that mobile home park or seasonal mobile home park. The provisional license is valid for 1 year and may be extended or renewed for an additional 1 year. A provisional license is required for each mobile home park or seasonal mobile home park owned by a person that has not been previously licensed under subsection (2). The department shall issue a provisional license under this subsection if the applicant meets the requirements of subsection (2)(a) to (c) but does not meet the requirement of subsection (2)(d). The department shall not issue 3 provisional licenses within a 10-year period. 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).
(7) Within 1 year after the issuance of a provisional license under subsection (6), 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 (6). 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.
(8) (4) The fee fees for a license to operate issued under subsection (2) are as follows:
(a) Until September 30, 2023, 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 October 1, 2023 through December 30, 2024, as follows:
(i) To own a mobile home park is $500.00 plus an additional $5.00 for each home site in excess of 25 home sites in the mobile home park.
(ii) To own a seasonal mobile home park is $300.00 plus an additional $3.00 for each home site in excess of 25 home sites in the seasonal mobile home park.
(c) Beginning December 31, 2024, as follows:
(i) To own a mobile home park is $750.00 plus an additional $7.00 for each home site in excess of 25 home sites in the mobile home park.
(ii) To own a seasonal mobile home park is $400.00 plus an additional $4.00 for each home site in excess of 25 home sites in the seasonal mobile home park.
(9) Beginning July 1, 2024, the fee for a provisional license issued under subsection (6) for a mobile home park is $750.00 plus an additional $7.00 for each home site in excess of 25 home sites in the mobile home park. Beginning July 1, 2024, the fee for a provisional license issued under subsection (6) for a seasonal mobile home park is $400.00 plus an additional $4.00 for each home site in excess of 25 home sites in the seasonal mobile home park.
(10) (5) If a person submits a timely application for renewal of a license issued under subsection (2) and pays the appropriate fee, fees and any administrative fines previously assessed against the person by the department or commission that remain unpaid at the time of the application for renewal of the license, if applicable, 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. An application for renewal of a license must meet the requirements of a license application under subsection (2). The department may assess a late renewal fee of up to 50% of the license application fee if an application for renewal of a license is submitted more than 7 days after the expiration of the license.
(11) If the department determines that a license application submitted pursuant to subsection (2) is incomplete, the department shall send a written notice to the applicant that identifies the missing information in the license application. The applicant must provide the missing information identified in the written notice to the department within 6 months after the receipt of the written notice from the department. If an applicant fails to provide the missing information as provided under this subsection, the license application is void and the applicant shall submit a new license application.
(12) An unlicensed owner of a mobile home park or seasonal mobile home park, or a subsidiary, agent, attorney, representative, employee, or affiliate of the owner of the mobile home park or seasonal mobile home park, or any other person that is responsible for the day-to-day operation of the mobile home park or seasonal mobile home park or is under common control of the mobile home park or seasonal mobile home park with the owner of the mobile home park or seasonal mobile home park shall not collect rent or take any action for possession against residents of the mobile home park or seasonal mobile home park. 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. Beginning on the effective date of the amendatory act that added this subsection, 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 or seasonal mobile home park is unlicensed. A resident of a mobile home park or seasonal mobile home park may bring an action on the resident's 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. Actual damages include, but are not limited to, rent and fees paid to the owner of the mobile home park or seasonal mobile home park during the period that the owner of the mobile home park or seasonal mobile home park was unlicensed. This subsection does not authorize a resident of the mobile home park or seasonal mobile home park to withhold rent or utility service fees determined by a court to be due and payable to a receiver appointed pursuant to this section.
(13) If it is determined that an owner of a mobile home park or seasonal mobile home park is unlicensed and there is no complete license application under review by the department, the department, lienholder, other affected person, or a resident of the mobile home park or seasonal mobile home park may petition the circuit court in the county in which the mobile home park or seasonal mobile home park is located to appoint a receiver to operate the mobile home park or seasonal mobile home park during the period in which the owner of the mobile home park or seasonal mobile home park is unlicensed. If the court finds that the owner of the mobile home park or seasonal mobile home park is unlicensed and there is no complete license application under review by the department, the court shall appoint a receiver to operate the mobile home park or seasonal mobile home park. The court shall determine the fair compensation for the receiver. A receiver appointed pursuant to this subsection must be a person currently licensed to own a mobile home park or seasonal mobile home park in accordance with this act or a person that meets the requirements for licensure under this act, as determined by the court. A receiver may not be the owner of the mobile home park or seasonal mobile home park, or a subsidiary, agent, attorney, representative, employee, or affiliate of the owner of the mobile home park or seasonal mobile home park, or any other person that is responsible for the day-to-day operation of the mobile home park or seasonal mobile home park or is under common control of the mobile home park or seasonal mobile home park with the owner of the mobile home park or seasonal mobile home park. Subject to court approval, a receiver appointed pursuant to this subsection shall do any of the following:
(a) Repair, renovate, or rehabilitate the mobile home park or seasonal mobile home park as needed to make the mobile home park or seasonal mobile home park comply with this act.
(b) Manage the mobile home park or seasonal mobile home park.
(c) Collect rent, utility service fees, and other fees from the residents of the mobile home park or seasonal mobile home park, as determined by the court, and pay the expenses of the mobile home park or seasonal mobile home park that are necessary to ensure continuing operation and services.
(d) Pursue necessary legal remedies against a resident of the mobile home park or seasonal mobile home park that fails to pay rent, utility service fees, or other fees or comply with this act. Legal remedies that may be pursued against a resident of the mobile home park or seasonal mobile home park pursuant to this subdivision include, but are not limited to, the institution of summary proceedings to recover possession of the premises from the resident of the mobile home park or seasonal mobile home park.
(e) Exercise other powers the court considers proper to the effective administration of the receivership.
(14) A person licensed or required to be licensed to own a mobile home park or seasonal mobile home park under this act is responsible for meeting all the requirements for licensure and complying with this act or rules promulgated under this act.
(15) (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.
Sec. 16b. (1) An owner of a mobile home park or seasonal mobile home park shall notify the department of any of the following within 30 days after its occurrence:
(a) A change of ownership.
(b) A change of the mailing or electronic business address of the licensed owner of the mobile home park or seasonal mobile home park.
(2) An owner of a mobile home park or seasonal mobile home park that sells a mobile home park or seasonal mobile home park shall, within 30 days after the sale, provide the department with a copy of the sales contract or any recorded deed and notify the department of all of the following:
(a) The identity of the buyer of the mobile home park or seasonal mobile home park, including the contact information of the buyer.
(b) The date of the sale.
(c) Any change in the seller's contact information.
(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 of the mobile home park or seasonal mobile home park 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.
(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.
(4) An owner of a distressed mobile home park or seasonal mobile home park may appeal the determinations of the department under this section to the circuit court in the county in which the mobile home park or seasonal mobile home park is located within 10 days after the date of the determination. The department of attorney general shall represent the department in any appeal under this section.
Sec. 16c. (1) An owner of a mobile home or seasonal mobile home park may seek approval from the commission for a rent increase by submitting documentation to the commission that shows that increases in operating and capital expenditures require an increase in rent in order to maintain a reasonable rate of return.
(2) The commission shall approve the request, unless the documentation provided by the owner of the mobile home park or seasonal mobile home park does not demonstrate the need for the rent increase. Notwithstanding any provision of this act, a rent increase approved by the commission under this section that results in a net increase in combined lot rent and other fees above the increase in the Consumer Price Index is not an unjustifiable rent increase.
(a) Senate Bill No. 490.
(b) Senate Bill No. 487.
(c) Senate Bill No. 488.
(d) Senate Bill No. 489.
