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2005 - 2006 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 2,
TO 2005 ASSEMBLY BILL 39
September 21, 2005 - Offered by
Joint Committee on Finance.
AB39-ASA2,2,7
1An Act to repeal 20.143 (3) (sa), 25.40 (1) (fm), 25.40 (2) (b) 19g., 101.19 (1) (e),
2101.92 (1), 101.92 (1m), 101.92 (2), 101.92 (5), 101.9208 (1) (b), 101.9208 (2),
3101.925, 101.93, 101.94 (3), 101.94 (4), 101.94 (5), 101.94 (6), 101.951 (2) (c),
4101.951 (2) (d), 101.952 (2) (c) and 101.952 (2) (d);
to renumber and amend
5101.9208 (1) (intro.), 101.9208 (1) (a), 101.9208 (1) (c), 101.9208 (1) (d), 101.9208
6(1) (dm), 101.9208 (1) (f), 101.9208 (1) (g), 101.9208 (1) (h) and 101.9208 (1) (i);
7to consolidate, renumber and amend 101.91 (2) (a) and (b);
to amend
820.143 (3) (j), 20.855 (4) (f), 25.46 (19), 85.037, 100.20 (2) (b), 101.125 (1) (a),
9101.19 (1) (f), 101.91 (5m), 101.91 (6m), 101.91 (7), 101.91 (8), 101.92 (6), 101.92
10(9), 101.9203 (4), 101.9204 (1m), 101.9205 (3), 101.9213 (8), 101.935 (title),
11101.935 (2) (a), 101.935 (2) (c) 2., 101.935 (2) (d), 101.935 (2m), 101.937 (title),
12(1) and (2), 101.937 (3) (a), 101.94 (2), 101.95, 101.951 (2) (a) and 101.952 (2) (a);
13and
to create 15.157 (13), 20.143 (1) (jp), 66.1019 (2m), 101.91 (1i), 101.91 (1j),
1101.91 (1t), 101.91 (1v), 101.9208 (2m), 101.933, 101.951 (2) (bm), 101.952 (2)
2(bm), 101.957, 101.96, 101.965 (1p), 101.965 (1t) and 560.285 of the statutes;
3relating to: regulating the manufactured housing industry and manufactured
4home installations; promoting rehabilitation and recycling of manufactured
5housing; extending the time limit for emergency rule procedures; providing an
6exemption from emergency rule procedures; requiring the exercise of
7rule-making authority; making appropriations; and providing a penalty.
Analysis by the Legislative Reference Bureau
This substitute amendment makes numerous changes relating to
manufactured housing. The changes primarily include the following:
Regulation of manufacturers of manufactured homes
Current law regulates manufacturers of manufactured homes, manufactured
home dealers, and manufactured home salespersons. Under current law, the
Department of Commerce (Commerce) is responsible for licensing all manufacturers
desiring to sell or distribute for sale manufactured homes in this state. Among other
things, current law also requires Commerce to do all of the following:
1. Adopt, administer, and enforce rules for the safe and sanitary design and
construction of manufactured homes that are manufactured, distributed, sold, or
offered for sale in this state, including rules relating to plumbing in the design and
construction of manufactured homes.
2. Review typical construction plans and specifications that manufacturers are
required to submit to Commerce for approval, including plans and specifications of
plumbing systems used in manufactured homes.
3. Inspect manufacturing facilities, processes, fabrication, and assembly of
manufactured homes to ensure compliance with the rules promulgated by Commerce
relating to the manufacture of manufactured homes.
4. Issue a label for display on a manufactured home that indicates that the
manufactured home meets the requirements of the statutes and rules.
5. Establish standards for certification of inspection and testing agencies that
inspect manufacturing facilities, processes, fabrication, and assembly of
manufactured homes and plumbing systems in manufactured homes and that issue
labels of approval.
6. Provide for the inspection of manufactured homes that are manufactured in
other states and that are to be sold or intended to be sold in this state.
This substitute amendment eliminates the requirements that Commerce
perform the duties listed in items 1, 2, 4, 5, and 6.
Currently, state law requires the manufacturer of a manufactured home to
install a functional smoke detector in each manufactured home it manufactures.
This substitute amendment deletes this requirement. Federal law contains a similar
requirement and requires smoke detectors to be installed in additional locations
within each manufactured home.
Regulation of manufactured home installations
Generally, a manufactured home is entirely constructed in a factory and, after
it is purchased by a consumer, is transported, either as a single unit or in sections,
to the home site for installation upon a foundation. Current law generally does not
regulate installers of manufactured homes, although current law does require
Commerce to make rules governing certain foundations upon which manufactured
homes are installed.
With limited exceptions, this substitute amendment requires every
manufactured home installation in this state to be performed by, or under the general
supervision of, an individual licensed by Commerce as a manufactured home
installer. The substitute amendment specifies that a licensed installer is liable for
all acts and omissions of each individual who performs an installation under the
licensed installer's general supervision. The substitute amendment also specifies
certain minimum criteria applicable to license applicants. In addition, the
substitute amendment requires Commerce to make rules for the safe installation of
manufactured homes in this state and for the enforcement of those installation
standards. Commerce must require third-party inspections as part of its
enforcement scheme. The substitute amendment provides that any city, village, or
town ordinance or resolution regulating a matter governed by these provisions of the
substitute amendment must conform with these provisions.
Regulatory fees
Current law establishes specific fees that Commerce must charge for
conducting a file search, for providing various services related to the titling of
manufactured homes, and for providing certain notices related to security interests
in manufactured homes. This substitute amendment requires Commerce, by rule,
to establish fees for these services. This substitute amendment also requires
Commerce to assess a new fee to fund a manufactured housing rehabilitation and
recycling grant program (see below).
Under current law, fees related to the titling of manufactured homes are
generally deposited into the transportation fund and then a specified amount is
appropriated from the transportation fund for Commerce's administration of the
manufactured housing statutes. This substitute amendment provides, instead, that
the fees are deposited into the general fund and credited to the program revenue
appropriation account that generally funds the safety and buildings operations of
Commerce.
Generally, under current law, the fee for a manufactured home dealer license
is $50 multiplied by the number of years in the license period. The fee for a
manufactured home salesperson license generally is $4 multiplied by the number of
years in the license period. Current law requires Commerce, by rule, to determine
the license period applicable to each of these licenses. Currently, these fees must be
prorated if the license period is not evenly divisible into years. This substitute
amendment repeals the statutory fee amount and proration requirement and
requires, instead, that these fees be determined by Commerce by rule.
Manufactured housing rehabilitation and recycling
This substitute amendment requires Commerce to establish a grant program
to promote the proper disposal of abandoned manufactured homes and to promote
the rehabilitation and use of manufactured homes that are in need of critical repairs.
To the extent feasible, Commerce must coordinate the program with the state's
housing strategy plan. The substitute amendment also requires Commerce to
contract with private, nonprofit entities for the administration of the grant program.
Titling of manufactured homes
With certain exceptions, any person who acquires a manufactured home must
apply to Commerce for a certificate of title to the manufactured home. This
requirement does not apply if the owner of the manufactured home intends, upon
acquiring the manufactured home, to permanently affix the manufactured home to
land that the owner of the manufactured home owns. In such a case, the
manufactured home becomes a part of the land and its ownership is evidenced by the
deed applicable to that land. This substitute amendment creates a similar exception
that applies if the owner of the manufactured home intends, upon acquiring the
manufactured home, to affix the manufactured home to land in which the owner has
a leasehold interest of sufficient duration.
Other
The substitute amendment establishes a Manufactured Housing Code Council
for the purpose of advising Commerce concerning the regulation of the manufactured
housing industry. The council is similar to advisory councils that currently advise
Commerce with regard to other aspects of housing market regulation, except that
members of the Manufactured Housing Code Council are appointed by the secretary
of Commerce rather than the governor.
The substitute amendment also requires Commerce, by rule, to establish an
alternative dispute resolution program designed to facilitate the timely, informal
resolution of certain disputes concerning defective manufactured homes and
manufactured home installations. The program applies to disputes among
manufactured home manufacturers, salespersons, dealers, and installers. The
program does not apply to disputes with consumers.
Current law contains numerous references to manufactured home parks. This
substitute amendment changes the term "park" in these references to the term
"community."
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB39-ASA2, s. 1
1Section
1. 15.157 (13) of the statutes is created to read:
AB39-ASA2,5,3
115.157
(13) Manufactured housing code council. (a) There is created in the
2department of commerce a manufactured housing code council consisting of the
3following members appointed by the secretary of commerce for 3-year terms:
AB39-ASA2,5,44
1. Two members representing manufacturers of manufactured homes.
AB39-ASA2,5,55
2. Two members representing manufactured home dealers.
AB39-ASA2,5,66
3. Two members representing owners of manufactured home communities.
AB39-ASA2,5,77
4. Two members representing installers of manufactured homes.
AB39-ASA2,5,98
5. One member representing an association of the manufactured housing
9industry in Wisconsin.
AB39-ASA2,5,1110
6. One member representing suppliers of materials or services to the
11manufactured housing industry.
AB39-ASA2,5,1212
7. One member representing the public.
AB39-ASA2,5,1313
8. One member representing labor.
AB39-ASA2,5,1414
9. One member representing inspectors of manufactured homes.
AB39-ASA2,5,1715
(b) The council shall meet at least twice a year. An employee of the department
16designated by the secretary of the department shall serve as nonvoting secretary of
17the council.
AB39-ASA2, s. 2
18Section
2. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
19the following amounts for the purposes indicated:
-
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AB39-ASA2, s. 3
1Section
3. 20.143 (1) (jp) of the statutes is created to read:
AB39-ASA2,6,52
20.143
(1) (jp)
Manufactured housing rehabilitation and recycling; program
3revenue. The amounts in the schedule for the administration of and for grants under
4s. 560.285. All moneys received under s. 101.9208 (2m) shall be credited to this
5appropriation.
AB39-ASA2, s. 4
6Section
4. 20.143 (3) (j) of the statutes is amended to read:
AB39-ASA2,6,147
20.143
(3) (j)
Safety and building operations. The amounts in the schedule for
8the purposes of chs. 101, 145, and 168 and ss. 236.12 (2) (a), 236.13 (1) (d) and (2m),
9and 236.335. All moneys received under ch. 145, ss. 101.177 (4) (a) 4., 101.178,
10101.19, 101.63 (9), 101.654 (3), 101.73 (12), 101.82 (4),
101.9205 (3), 101.9208 (1) (b),
11101.9213 (8), 101.935, 101.951 (2), 101.952 (2), 101.955 (2), 101.973 (7), and 236.12
12(7),
and 2001 Wisconsin Act 16, section 9110 (3z),
except moneys received under s.
13101.9208 (2m), and all moneys transferred under 2005 Wisconsin Act .... (this act),
14section 76 (6), shall be credited to this appropriation.
AB39-ASA2,7,4
120.855
(4) (f)
Supplemental title fee matching. From the general fund, a sum
2sufficient equal to the amount of supplemental title fees collected under
ss. 101.9208
3(1) (dm) and s. 342.14 (3m), as determined under s. 85.037, to be transferred to the
4environmental fund on October 1 annually.
AB39-ASA2, s. 8
6Section
8. 25.40 (2) (b) 19g. of the statutes is repealed.
AB39-ASA2,7,98
25.46
(19) The environmental impact fees imposed under
ss. 101.9208 (1) (b)
9and s. 342.14 (1r) for environmental management.