AB807: Bill Text

Under 1999 Wisconsin Act 9, beginning on July 1, 2000, the regulation of mobile homes and manufactured homes will be consolidated in the department of commerce. Under 1999 Wisconsin Act 9, the definition of "mobile home" that will apply in these consolidated statutes includes only a mobile home that was manufactured before June 15, 1976.

This bill changes the scope of these consolidated statutes in order to ensure the continued regulation of mobile homes that were constructed on or after June 15, 1976. The bill makes conforming changes to other statutes, including the statutes that relate to the financing of mobile home transactions.

Currently, under George v. Commercial Credit Corp., 440 F.2d 551 (7th Cir. 1971), which is persuasive, though not binding, authority in this state, DOT statutes relating to security interests in mobile homes do not apply to a mobile home that is a fixture to real estate. The bill also incorporates this holding into these consolidated statutes. Thus, under the bill, a manufactured home or mobile home that is a fixture to real estate is not subject to the consolidated statutes that relate to perfecting and giving notice of a security interest.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB807, s. 1 Section 1. 100.21 (1) (a) of the statutes is amended to read:

AB807,3,5 100.21 (1) (a) "Dwelling unit" means a dwelling, as defined under s. 101.61, a manufactured building, as defined under s. 101.71, a manufactured home or mobile home, as defined under s. 101.91 (2), or a multifamily dwelling, as defined under s. 101.971 (2).

AB807, s. 2 Section 2. 101.19 (1) (e) of the statutes is amended to read:

AB807,3,8 101.19 (1) (e) The review of plans, construction inspections, department labels and licensing of manufacturers of manufactured homes and mobile homes.

AB807, s. 3 Section 3. 101.71 (6) (b) of the statutes is amended to read:

AB807,3,12 101.71 (6) (b) "Manufactured building" does not mean any manufactured home or mobile home under s. 101.91 or any building of open construction which is not subject to par. (a) 2.

AB807, s. 4 Section 4. 101.90 of the statutes is repealed.

AB807, s. 5 Section 5. 101.91 (intro.) of the statutes is amended to read:

AB807,3,15 101.91 Definitions. (intro.) In ss. 101.90 to 101.96 this subchapter:

AB807, s. 6 Section 6. 101.91 (1g) of the statutes, as created by 1999 Wisconsin Act 9, is amended to read:

AB807,3,20 101.91 (1g) "Delivery date" means the date on which a mobile manufactured home is physically delivered to the site chosen by the mobile home owner of the manufactured home.

AB807, s. 7 Section 7. 101.91 (2) (intro.) of the statutes is amended to read:

AB807,4,1 101.91 (2) (intro.) "Manufactured home" means either any of the following:

AB807, s. 8 Section 8. 101.91 (2) (c) of the statutes is created to read:

AB807,4,4 101.91 (2) (c) A mobile home, unless a mobile home is specifically excluded under the applicable statute.

AB807, s. 9 Section 9. 101.91 (2e) of the statutes, as affected by 1999 Wisconsin Act 9, is renumbered 101.91 (2k).

AB807, s. 10 Section 10. 101.91 (2g) of the statutes, as created by 1999 Wisconsin Act 9, is renumbered 101.91 (2b), and 101.91 (2b) (intro.) and (e) of the statutes, as renumbered, are amended to read:

AB807,4,15 101.91 (2b) (intro.) "Mobile Manufactured home dealer" means a person who, for a commission or other thing of value, sells, exchanges, buys or rents, or offers or attempts to negotiate a sale or exchange of an interest in, mobile manufactured homes or who is engaged wholly or partially in the business of selling mobile manufactured homes, whether or not the mobile manufactured homes are owned by the person, but does not include:

AB807,4,18 (e) A person transferring a mobile manufactured home used for that person's personal, family or household purposes, if the transfer is an occasional sale and is not part of the business of the transferor.

AB807, s. 11 Section 11. 101.91 (2m) of the statutes, as created by 1999 Wisconsin Act 9, is renumbered 101.91 (2d) and amended to read:

AB807,4,23 101.91 (2d) "Mobile Manufactured home owner" means any person who purchases, or leases from another, a mobile manufactured home primarily for use for personal, family or household purposes.

AB807, s. 12 Section 12. 101.91 (3) of the statutes, as affected by 1999 Wisconsin Act 9, is renumbered 101.91 (2f) and amended to read:

AB807,5,7 101.91 (2f) "Mobile Manufactured home park" means any plot or plots of ground upon which 3 or more mobile homes or manufactured homes that are occupied for dwelling or sleeping purposes are located. "Mobile Manufactured home park" does not include a farm where the occupants of the mobile homes or manufactured homes are the father, mother, son, daughter, brother or sister of the farm owner or operator or where the occupants of the mobile homes or manufactured homes work on the farm.

AB807, s. 13 Section 13. 101.91 (4) of the statutes, as created by 1999 Wisconsin Act 9, is renumbered 101.91 (2h) and amended to read:

AB807,5,12 101.91 (2h) "Mobile Manufactured home salesperson" means any person who is employed by a mobile manufactured home manufacturer or mobile manufactured home dealer to sell or lease mobile manufactured homes.

AB807, s. 14 Section 14. 101.91 (5) of the statutes, as created by 1999 Wisconsin Act 9, is amended to read:

AB807,5,16 101.91 (5) "New mobile manufactured home" means a mobile manufactured home that has never been occupied, used or sold for personal or business use.

AB807, s. 15 Section 15. 101.91 (6) of the statutes, as created by 1999 Wisconsin Act 9, is amended to read:

AB807,5,20 101.91 (6) "Used mobile manufactured home" means a mobile manufactured home that has previously been occupied, used or sold for personal or business use.

AB807, s. 16 Section 16. 101.92 (1) of the statutes is amended to read:

AB807,5,24 101.92 (1) Shall adopt, administer and enforce rules for the safe and sanitary design and construction of manufactured homes and mobile homes that are manufactured, distributed, sold or offered for sale in this state.

AB807, s. 17 Section 17. 101.92 (2) of the statutes is amended to read:

AB807,6,2 101.92 (2) Shall license all manufacturers desiring to sell or distribute for sale manufactured homes or mobile homes in this state.

AB807, s. 18 Section 18. 101.92 (3) of the statutes is amended to read:

AB807,6,6 101.92 (3) Shall review annually the rules adopted under ss. 101.90 to 101.96, and may revise rules upon recommendation by the advisory committee appointed under s. 101.96 this subchapter.

AB807, s. 19 Section 19. 101.92 (4) of the statutes is amended to read:

AB807,6,11 101.92 (4) Shall provide for announced or unannounced inspection of manufacturing facilities, processes, fabrication and assembly of manufactured homes and mobile homes to ensure compliance with the rules adopted under ss. 101.90 to 101.96 this subchapter.

AB807, s. 20 Section 20. 101.92 (5) to (8) of the statutes are amended to read:

AB807,6,16 101.92 (5) Shall establish standards for certification of inspection and testing agencies which shall include standards for in-plant inspection of manufacturing facilities, processes, fabrication and assembly of manufactured homes and mobile homes and for issuance of or acceptance of a label of approval.

AB807,6,20 (6) May enter into reciprocal agreements with other states regarding the design, construction, inspection and labeling of mobile manufactured homes where the laws or rules of other states meet the intent of ss. 101.90 to 101.96 this subchapter and where the laws or rules are actually enforced.

AB807,6,22 (7) Shall establish a staff for the administration and enforcement of ss. 101.90 to 101.96 this subchapter.

AB807,6,24 (8) May revoke the license of any manufacturer who violates ss. 101.90 to 101.96 this subchapter or any rules promulgated thereunder.

AB807, s. 21 Section 21. 101.9202 (1) of the statutes, as created by 1999 Wisconsin Act 9, is amended to read:

AB807,7,4 101.9202 (1) A lien given by statute or rule of law to a supplier of services or materials for the mobile manufactured home.

AB807, s. 22 Section 22. 101.9202 (3) of the statutes, as created by 1999 Wisconsin Act 9, is amended to read:

AB807,7,10 101.9202 (3) A security interest in a mobile manufactured home created by a mobile manufactured home dealer or manufacturer who holds the mobile manufactured home for sale, which shall be governed by the applicable provisions of ch. 409.

AB807, s. 23 Section 23. 101.9203 of the statutes, as created by 1999 Wisconsin Act 9, is amended to read:

AB807,7,16 101.9203 When certificate of title required. (1) The owner of a mobile manufactured home situated in this state or intended to be situated in this state shall make application for certificate of title under s. 101.9209 for the mobile manufactured home if the owner has newly acquired the mobile manufactured home.

AB807,7,23 (2) Any owner who situates in this state a mobile manufactured home for which a certificate of title is required without such the certificate of title having been issued or applied for, knowing that the certificate of title has not been issued or applied for, may be required to forfeit not more than $200. A certificate of title is considered to have been applied for when the application accompanied by the required fee has been delivered to the department or deposited in the mail properly addressed and with postage prepaid.

AB807,8,2 (3) Unless otherwise authorized by rule of the department, a nonresident owner of a mobile manufactured home situated in this state may not apply for a certificate of title under this subchapter unless the mobile manufactured home is subject to a security interest or except as provided in s. 101.9209 (1) (a).

AB807, s. 24 Section 24. 101.9204 (1) (b) to (g) of the statutes, as created by 1999 Wisconsin Act 9, are amended to read:

AB807,8,8 101.9204 (1) (b) A description of the mobile manufactured home, including make, model, identification number and any other information or documentation that the department may reasonably require for proper identification of the mobile manufactured home.

AB807,8,11 (c) The date of purchase by the applicant, the name and address of the person from whom the mobile manufactured home was acquired and the names and addresses of any secured parties in the order of their priority.

AB807,8,14 (d) If the mobile manufactured home is a new mobile manufactured home being titled for the first time, the signature of the mobile manufactured home dealer. The document of origin shall contain the information specified by the department.

AB807,8,18 (e) Any further evidence of ownership which the department may reasonably require to enable it to determine whether the owner is entitled to a certificate of title and the existence or nonexistence of security interests in the mobile manufactured home.

AB807,8,22 (f) If the identification number of the mobile manufactured home has been removed, obliterated or altered, or if the original casting has been replaced, or if the mobile manufactured home has not been numbered by the manufacturer, the application for certificate of title shall so state.

AB807,9,2 (g) If the mobile manufactured home is a used mobile manufactured home which was last previously titled in another jurisdiction, the applicant shall furnish any certificate of ownership issued by the other jurisdiction and a statement pertaining to the title history and ownership of the mobile manufactured home, such statement to be in the form that the department prescribes.

AB807, s. 25 Section 25. 101.9205 (1) and (3) of the statutes, as created by 1999 Wisconsin Act 9, are amended to read:

AB807,9,8 101.9205 (1) The department shall maintain a record of each application for certificate of title received by it and, when satisfied as to its genuineness and regularity and that the applicant is entitled to the issuance of a certificate of title, shall issue and deliver a certificate to the owner of the mobile manufactured home.

AB807,9,10 (3) The department shall charge a fee of not less than $2 for conducting a file search of mobile manufactured home title records.

AB807, s. 26 Section 26. 101.9206 (1) (c) and (d), (2) (a) 2. and (3) (a) and (b) 1. and 2. of the statutes, as created by 1999 Wisconsin Act 9, are amended to read:

AB807,9,13 101.9206 (1) (c) The title number assigned to the mobile manufactured home.

AB807,9,15 (d) A description of the mobile manufactured home, including make, model and identification number.

AB807,9,17 (2) (a) 2. Reassignment and warranty of title by a mobile manufactured home dealer.

AB807,9,25 (3) (a) Unless the applicant fulfills the requirements of par. (b), the department shall issue a distinctive certificate of title for a mobile manufactured home last previously registered in another jurisdiction if the laws of the other jurisdiction do not require that secured parties be named on a certificate of title to perfect their security interests. The certificate shall contain the legend "This mobile manufactured home may be subject to an undisclosed security interest" and may contain any other information that the department prescribes. If the department receives no notice of a security interest in the mobile manufactured home within 4 months from the issuance of the distinctive certificate of title, the department shall, upon application and surrender of the distinctive certificate, issue a certificate of title in ordinary form.

AB807,10,7 (b) 1. The applicant is a mobile manufactured home dealer and is financially responsible as substantiated by the last financial statement on file with the department, a finance company licensed under s. 138.09, a bank organized under the laws of this state, or a national bank located in this state.

AB807,10,24 2. The applicant has filed with the department a bond in the form prescribed by the department and executed by the applicant, and either accompanied by the deposit of cash with the department or also executed by a person authorized to conduct a surety business in this state. The bond shall be in an amount equal to 1.5 times the value of the mobile manufactured home as determined by the department and conditioned to indemnify any prior owner and secured party and any subsequent purchaser of the mobile manufactured home or person acquiring any security interest in it, and their respective successors in interest, against any expense, loss or damage, including reasonable attorney fees, by reason of the issuance of the certificate of title of the mobile manufactured home or on account of any defect in or undisclosed security interest upon the right, title and interest of the applicant in and to the mobile manufactured home. Any such interested person has a right of action to recover on the bond for any breach of its conditions, but the aggregate liability of the surety to all persons shall not exceed the amount of the bond. The bond, and any deposit accompanying it, shall be returned at the end of 5 years or prior thereto if, apart from this section, a nondistinctive certificate of title could then be issued for the mobile manufactured home.

AB807, s. 27 Section 27. 101.9208 (1) (a), (c), (d), (dm) and (g) of the statutes, as created by 1999 Wisconsin Act 9, are amended to read:

AB807,11,4 101.9208 (1) (a) For filing an application for the first certificate of title, $8.50, by the owner of the mobile manufactured home.

AB807,11,7 (c) For the original notation and subsequent release of each security interest noted upon a certificate of title, a single fee of $4 by the owner of the mobile manufactured home.

AB807,11,9 (d) For a certificate of title after a transfer, $8.50, by the owner of the mobile manufactured home.

AB807,11,14 (dm) Upon filing an application under par. (a) or (d), a supplemental title fee of $7.50 by the owner of the mobile manufactured home, except that this fee shall be waived with respect to an application under par. (d) for transfer of a decedent's interest in a mobile manufactured home to his or her surviving spouse. The fee specified under this paragraph is in addition to any other fee specified in this section.

AB807,11,16 (g) For a replacement certificate of title, $8, by the owner of the mobile manufactured home.

AB807, s. 28 Section 28. 101.9209 (title), (1) to (4) and (5) (a) and (b) of the statutes, as created by 1999 Wisconsin Act 9, are amended to read:

AB807,11,24 101.9209 (title) Transfer of interest in a mobile manufactured home. (1) (a) If an owner transfers an interest in a mobile manufactured home, other than by the creation of a security interest, the owner shall, at the time of the delivery of the mobile manufactured home, execute an assignment and warranty of title to the transferee in the space provided therefor on the certificate, and cause the certificate to be mailed or delivered to the transferee.

AB807,12,6 (b) Any person who holds legal title of a mobile manufactured home with one or more other persons may transfer ownership of the mobile manufactured home under this subsection if legal title to the mobile manufactured home is held in the names of such persons in the alternative, including a mobile manufactured home held in a form designating the holder by the words "(name of one person) or (name of other person)".

AB807,12,10 (2) Promptly after delivery to him or her of the mobile manufactured home, the transferee shall execute the application for a new certificate of title in the space provided therefor on the certificate or as the department prescribes, and cause the certificate and application to be mailed or delivered to the department.

AB807,12,15 (3) A transfer by an owner is not effective until the provisions of this section have been complied with. An owner who has delivered possession of the mobile manufactured home to the transferee and has complied with the provisions of this section requiring action by him or her is not liable as owner for any damages thereafter resulting from use of the mobile home.

AB807,12,19 (4) Any owner of a mobile manufactured home for which a certificate of title has been issued, who upon transfer of the mobile manufactured home fails to execute and deliver the assignment and warranty of title required by sub. (1), may be required to forfeit not more than $500.

AB807,12,22 (5) (a) Any transferee of a mobile home who fails to make application for a new certificate of title immediately upon transfer to him or her of a mobile manufactured home may be required to forfeit not more than $200.

AB807,13,2 (b) Any transferee of a mobile manufactured home who, with intent to defraud, fails to make application for a new certificate of title immediately upon transfer to him or her of a mobile manufactured home may be fined not more than $1,000 or imprisoned for not more than 30 days or both.

AB807, s. 29 Section 29. 101.921 of the statutes, as created by 1999 Wisconsin Act 9, is amended to read:

AB807,14,7 101.921 Transfer to or from dealer. (1) (a) Except as provided in par. (b), if a mobile manufactured home dealer acquires a mobile manufactured home and holds it for resale or accepts a mobile manufactured home for sale on consignment, the mobile manufactured home dealer may not submit to the department the certificate of title or application for certificate of title naming the mobile manufactured home dealer as owner of the mobile manufactured home. Upon transferring the mobile manufactured home to another person, the mobile manufactured home dealer shall immediately give the transferee, on a form prescribed by the department, a receipt for all title, security interest and sales tax moneys paid to the mobile manufactured home dealer for transmittal to the department when required. The mobile manufactured home dealer shall promptly execute the assignment and warranty of title, showing the name and address of the transferee and of any secured party holding a security interest created or reserved at the time of the resale or sale on consignment, in the spaces provided therefor on the certificate or as the department prescribes. Within 7 business days following the sale or transfer, the mobile manufactured home dealer shall mail or deliver the certificate or application for certificate to the department with the transferee's application for a new certificate. A nonresident who purchases a mobile manufactured home from a mobile manufactured home dealer in this state may not, unless otherwise authorized by rule of the department, apply for a certificate of title issued for the mobile manufactured home in this state unless the mobile manufactured home dealer determines that a certificate of title is necessary to protect the interests of a secured party. The mobile manufactured home dealer is responsible for determining whether a certificate of title and perfection of security interest is required. The mobile manufactured home dealer is liable for any damages incurred by the department or any secured party for the mobile manufactured home dealer's failure to perfect a security interest which the mobile manufactured home dealer had knowledge of at the time of sale.