AB807: Bill Text

1999 - 2000 LEGISLATURE

1999 Assembly BILL 807

February 25, 2000 - Introduced by Representative Sykora. Referred to Committee on Housing.

AB807,2,8 An Act to repeal 101.90, 101.96 and 196.01 (3m); to renumber 101.91 (2e); to renumber and amend 101.91 (2g), 101.91 (2m), 101.91 (3), 101.91 (4) and 101.9218; to amend 100.21 (1) (a), 101.19 (1) (e), 101.71 (6) (b), 101.91 (intro.), 101.91 (1g), 101.91 (2) (intro.), 101.91 (5), 101.91 (6), 101.92 (1), 101.92 (2), 101.92 (3), 101.92 (4), 101.92 (5) to (8), 101.9202 (1), 101.9202 (3), 101.9203, 101.9204 (1) (b) to (g), 101.9205 (1) and (3), 101.9206 (1) (c) and (d), (2) (a) 2. and (3) (a) and (b) 1. and 2., 101.9208 (1) (a), (c), (d), (dm) and (g), 101.9209 (title), (1) to (4) and (5) (a) and (b), 101.921, 101.9211 (1) to (3), (4) (a) (intro.), (b) 1. (intro.), b. and c. and 2. to 4., (c) and (d), 101.9212 (3), 101.9213 (1), (3) and (5) to (8), 101.9214 (intro.), 101.9215 (1), 101.9216 (1), (2) and (4), 101.9217 (2) (a), 101.9219 (2) (intro.) and (a) and (3) (a) and (b), 101.922 (1) (b), 101.9221 (1) (a), (3) and (4), 101.9222 (title), 101.9222 (1) to (3) and (5) (a) (intro.) and (b), 101.93, 101.935 (title), 101.935 (1), (2) (a) and (d) and (2m), 101.94 (3), (4) (intro.), (a) and (b) (intro.) and 1. to 3. and (5), 101.94 (7), 101.94 (8) (a), 101.95, 101.951 (title), 101.951 (1) and (6) (n), 101.952 (title), 101.952 (1), (2) (a), (3), (5) and (6), 101.953 (1) (intro.) and (a) to (d), (3) and (4), 101.954, 101.955 (1), 101.965 (3), 138.056 (1) (b), 138.056 (1) (c), 138.09 (7) (jm) 1. b., 196.01 (3n), 196.01 (3p), 196.01 (3s), 196.26 (1m), 196.85 (2g), 341.05 (26) (a), 422.201 (12m), 422.209 (1m) (a) 2. and 422.413 (2g) (intro.); to repeal and recreate 101.9218 (title); and to create 101.91 (2) (c), 101.9218 (2) and 138.056 (1) (bm) of the statutes; relating to: the regulation of mobile homes and manufactured homes and the financing of certain mobile home and manufactured home transactions.

Analysis by the Legislative Reference Bureau

Under current law, the department of administration (DOA), the department of transportation (DOT) and the department of commerce each regulate mobile homes and manufactured homes. Currently, DOA regulates mobile home parks, mobile home dealers and mobile home salespersons; DOT regulates the registration and titling of mobile homes and the recording and perfecting of security interests in mobile homes; and the department of commerce regulates the manufacture of mobile homes. Under current law, DOA and DOT statutes govern mobile homes regardless of the date that the mobile homes were manufactured. However, under the department of commerce statutes the definition of "mobile home" includes only a mobile home that was manufactured before June 15, 1976.

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.