HOUSE BILL NO. 6003

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

"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) A person shall not operate own a mobile home park or seasonal mobile home park without a license. If the department determines that an owner of a mobile home park or seasonal home park is not licensed, the department shall notify that person of the lack of license and the department shall levy such fines as it deems appropriate under this act. A person who has applied to the department for a license shall not be in violation of this subsection unless the department denies the person's license application and the person has exhausted all the available appeals related to the department denying the license application. The term of a license is 3 years. The department shall within 60 days of receiving a license application issue a license only if all of the following requirements are met:

(a) The applicant submits a complete license application that demonstrates the applicant's integrity, reputation, business probity, financial ability, and experience in operating a mobile home park or seasonal home park. A lack of business probity includes, but is not limited to, a history in this state or other states of excessive rent increases on the part of the applicant, its parent companies, or subsidiaries.

(b) Certifications and recommendations of appropriate agencies and local governments are submitted to and approved by the department.

(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.

(2) (4) The fee for a license to operate 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 under section 9(5). The fee for a license to operate 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 under section 9(5).

(3) (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.

(4) (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 100th Legislature are enacted into law:

(a) Senate Bill No.____ or House Bill No.____ (request no. 05146'19 *).

(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).