AB720: Bill Text

AB720,6,19 16.366 (2) (d) A permit may not be issued under this subsection until all applicable fees have been paid. If the payment is by check or other draft drawn upon an account containing insufficient funds, the permit applicant shall, within 15 days after receipt of notice from the department of the insufficiency, pay by cashier's check or other certified draft, money order or cash the fees from the department, late fees and processing charges that are specified by rules promulgated by the department. If the permit applicant fails to pay all applicable fees, late fees and the processing charges within 15 days after the applicant receives notice of the insufficiency, the permit is void. In an appeal concerning voiding of a permit under this paragraph, the burden is on the permit applicant to show that the entire applicable fees, late fees and processing charges have been paid. During any appeal process concerning a payment dispute, operation of the mobile home park in question is considered to be operation without a permit.

AB720, s. 6 Section 6. 16.366 (2m) of the statutes is amended to read:

AB720,6,22 16.366 (2m) (a) The department shall inspect a mobile home park in the following situations:

AB720,6,23 1. Upon completion of the construction of a new mobile home park.

AB720,6,25 2. Whenever a mobile home park is modified, as defined by the department by rule.

AB720,7,1 3. Whenever the department receives a complaint about a mobile home park.

AB720,7,3 (b) The department may, with notice, inspect a mobile home park whenever the department determines an inspection is appropriate.

AB720, s. 7 Section 7. Subchapter X of chapter 16 [precedes 16.995] of the statutes is created to read:

AB720,7,6 Chapter 16

AB720,7,9 Subchapter X Manufactured home and mobile home dealers

AB720,7,10 16.995 Definitions. In this subchapter:

AB720,7,15 (1) "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 manufactured homes or mobile homes or who is engaged wholly or in part in the business of selling manufactured homes or mobile homes, whether or not the manufactured homes or mobile homes are owned by the person, but does not include:

AB720,7,17 (a) A receiver, trustee, administrator, executor, guardian or other person appointed by or acting under the judgment or order of any court.

AB720,7,18 (b) Any public officer while performing that officer's official duty.

AB720,7,19 (c) Any employe of a person enumerated in par. (a) or (b).

AB720,7,20 (d) Any lender as defined in s. 421.301 (22).

AB720,7,24 (e) A person transferring a manufactured home or mobile home registered in that person's name and 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.

AB720,8,2 (2) "Delivery date" means the date on which a manufactured home or mobile home is physically delivered to the site chosen by the owner.

AB720,8,5 (3) "License period" means the period during which a license issued under s. 16.996 or 16.997 is effective, as established by the licensor under s. 16.996 (2) (b) 1. or 16.997 (2) (b) 1.

AB720,8,6 (4) "Licensor" means the division of housing in the department.

AB720,8,7 (5) "Manufactured home" has the meaning given in s. 101.91 (2).

AB720,8,9 (6) "Manufacturer" means any person within or without this state who manufactures or assembles manufactured homes for sale in this state.

AB720,8,10 (7) "Mobile home" has the meaning given in s. 101.91 (1).

AB720,8,12 (8) "New home" means a manufactured home that has never been occupied, used or sold for personal or business use.

AB720,8,14 (9) "Owner" means any person or lessee thereof who purchases a manufactured home or mobile home primarily for use for personal, family or household purposes.

AB720,8,16 (10) "Salesperson" means any person who is employed by a manufacturer or dealer to sell or lease manufactured homes or mobile homes.

AB720,8,18 (11) "Used home" means a manufactured home or mobile home that has previously been occupied, used or sold for personal or business use.

AB720,8,21 16.996 Dealers regulated. (1) No person may engage in the business of selling manufactured homes or mobile homes to the ultimate consumer or to the retail market in this state unless first licensed to do so by the licensor.

AB720,8,24 (2) (a) Application for a license and renewal license shall be made to the licensor on forms prescribed and furnished by the licensor and shall be accompanied by the license fee required under par. (c) or (d).

AB720,9,2 (b) 1. The licensor shall promulgate rules establishing the license period under this section.

AB720,9,4 2. The licensor may promulgate rules establishing a uniform expiration date for all licenses issued under this section.

AB720,9,7 (c) Except as provided in par. (d), the fee for a license issued under this section equals $50 multiplied by the number of years in the license period. The fee shall be prorated if the license period is not evenly divisible into years.

AB720,9,12 (d) If the licensor issues a license under this section during the license period, the fee for the license shall equal $50 multiplied by the number of calendar years, including parts of calendar years, during which the license remains in effect. A fee determined under this paragraph may not exceed the license fee for the entire license period under par. (c).

AB720,9,19 (3) The licensor shall issue a license only to persons whose character, fitness and financial ability, in the opinion of the licensor, are such as to justify the belief that they can and will deal with and serve the buying public fairly and honestly, will maintain a permanent office and place of business and an adequate service and parts department during the license period, and will abide by the provisions of this subchapter, rules promulgated under this subchapter and orders issued under this subchapter.

AB720,9,21 (5) A licensee shall conduct the licensed business continuously during the license period.

AB720,9,23 (5m) Any person who violates any provision of this section shall be fined not less than $25 nor more than $100 for each offense.

AB720,9,25 (6) The licensor may deny, suspend or revoke a license on the following grounds:

AB720,10,1 (a) Proof of unfitness.

AB720,10,2 (b) Material misstatement in the application for a license.

AB720,10,4 (c) Filing a materially false or fraudulent income or franchise tax return as certified by the department of revenue.

AB720,10,6 (d) Wilful failure to comply with any provision of this section or any rule promulgated by the licensor under this section.

AB720,10,7 (e) Wilfully defrauding any retail buyer to the buyer's damage.

AB720,10,8 (f) Wilful failure to perform any written agreement with any retail buyer.

AB720,10,9 (g) Failure or refusal to furnish and keep in force any bond required.

AB720,10,10 (h) Having made a fraudulent sale, transaction or repossession.

AB720,10,13 (i) Fraudulent misrepresentation, circumvention or concealment through whatsoever subterfuge or device of any of the material particulars or the nature thereof required under this section to be stated or furnished to the retail buyer.

AB720,10,16 (j) Employment of fraudulent devices, methods or practices in connection with compliance with the statutes with respect to the retaking of goods under retail instalment contracts and the redemption and resale of such goods.

AB720,10,17 (k) Having indulged in any unconscionable practice relating to said business.

AB720,10,19 (m) Having sold a retail instalment contract to a sales finance company not licensed under this section.

AB720,10,21 (n) Having violated any law relating to the sale, distribution or financing of manufactured homes or mobile homes.

AB720,11,2 (7) (a) The licensor may, without notice, deny the application for a license within 60 days after receipt thereof by written notice to the applicant, stating the grounds for such denial. Within 30 days after receiving the notice, the applicant may petition the department to conduct a hearing to review the denial, and a hearing shall be scheduled with reasonable promptness.

AB720,11,11 (b) No license may be suspended or revoked except after a hearing thereon. The licensor shall give the licensee at least 5 days' notice of the time and place of the hearing. Following the hearing, an order suspending or revoking the license shall not be effective until after 10 days' written notice to the licensee of the suspension or revocation, except that the licensor, when in its opinion the best interest of the public or the trade demands it, may suspend a license upon not less than 24 hours' notice of hearing and with not less than 24 hours' notice of the suspension of the license. Matters involving suspensions and revocations brought before the licensor shall be heard and decided upon by the department.

AB720,11,15 (c) The licensor may inspect the pertinent books, records, letters and contracts of a licensee. The actual cost of each inspection shall be paid by the licensee within 30 days after demand therefor by the licensor, and the licensor may maintain an action for the recovery of the costs in any court of competent jurisdiction.

AB720,11,20 16.997 Salespersons regulated. (1) No person may engage in the business of selling manufactured homes or mobile homes to the ultimate consumer or to the retail market in this state without a license therefor from the licensor. If a dealer acts as a salesperson, the dealer shall secure a salesperson's license in addition to a dealer's license under s. 16.996.

AB720,11,24 (2) (a) Application for a salesperson's license and renewal license shall be made to the licensor on forms prescribed and furnished by the licensor and shall be accompanied by the license fee required under par. (c) or (d). The application shall require such pertinent information as the licensor requires.

AB720,12,2 (b) 1. The licensor shall promulgate rules establishing the license period under this section.

AB720,12,4 2. The licensor may promulgate rules establishing a uniform expiration date for all licenses issued under this section.

AB720,12,7 (c) Except as provided in par. (d), the fee for a license issued under this section equals $4 multiplied by the number of years in the license period. The fee shall be prorated if the license period is not evenly divisible into years.

AB720,12,12 (d) If the licensor issues a license under this section during the license period, the fee for the license shall equal $4 multiplied by the number of calendar years, including parts of calendar years, during which the license remains in effect. A fee determined under this paragraph may not exceed the license fee for the entire license period under par. (c).

AB720,12,17 (3) Every licensee shall carry his or her license when engaged in his or her business and display the license upon request. The license shall name his or her employer, and in case of a change of employer, the salesperson shall immediately mail his or her license to the licensor who shall, without charge, endorse the change on the license and immediately return the license to the salesperson.

AB720,12,20 (5) Section 16.996 (6) as it applies to the denial, suspension and revocation of a dealer's license applies to the denial, suspension and revocation of a salesperson's license so far as applicable.

AB720,12,22 (6) Any person aggrieved by a decision of the licensor may have a review of the decision as provided in ch. 227.

AB720,13,3 16.998 Warranty and disclosure. (1) A one-year written warranty is required for every new home sold or leased by a manufacturer, dealer or salesperson in this state, and for every new home sold by any person who induces a resident of the state to enter into the transaction by personal solicitation in this state or by mail or telephone solicitation directed to the particular customer in this state. The warranty shall contain the following terms:

AB720,13,6 (a) That the new home meets those standards prescribed by law or administrative rule of the department or of the department of industry, labor and human relations, which are in effect at the time of its manufacture.

AB720,13,9 (b) That the new home is free from defects in material and workmanship and is reasonably fit for human habitation if it receives reasonable care and maintenance as defined by rule of the department.

AB720,13,17 (c) 1. That the new home manufacturer and dealer shall take corrective action for defects which become evident within one year after the delivery date and as to which the new home owner has given notice to the manufacturer or dealer not later than one year and 10 days after the delivery date and at the address set forth in the warranty; and that the new home manufacturer and dealer shall make the appropriate adjustments and repairs, within 30 days after notification of the defect, at the site of the new home without charge to the new home owner. If the dealer makes the adjustment, the manufacturer shall fully reimburse the dealer.

AB720,14,2 2. If a repair, replacement, substitution or alteration is made under the warranty and it is discovered, before or after expiration of the warranty period, that the repair, replacement, substitution or alteration has not restored the new home to the condition in which it was warranted except for reasonable wear and tear, such failure shall be deemed a violation of the warranty and the new home shall be restored to the condition in which it was warranted to be at the time of the sale except for reasonable wear and tear, at no cost to the purchaser or the purchaser's assignee notwithstanding that the additional repair may occur after the expiration of the warranty period.

AB720,14,5 (d) That if during any period of time after notification of a defect, the new home is uninhabitable, as defined by rule of the department, that period of time shall not be considered part of the one-year warranty period.

AB720,14,6 (e) A list of all parts and equipment not covered by the warranty.

AB720,14,8 (2) Action by a lessee to enforce the lessee's rights under this subchapter shall not be grounds for termination of the rental agreement.

AB720,14,16 (3) The warranty required under this section shall apply to the manufacturer of the new home as well as to the dealer who sells or leases the new home to the customer, and shall be in addition to any other rights and privileges that the customer may have under any instrument or law. The waiver of any remedies under any law and the waiver, exclusion, modification or limitation of any warranty, express or implied, including the implied warranty of merchantability and fitness for a particular purpose, is expressly prohibited. Any such waiver is unenforceable and void.

AB720,14,21 (4) The transfer of a new home from one owner or lessee to another during the effective period of the warranty does not terminate the warranty, and subsequent owners or lessees shall be entitled to the full protection of the warranty for the duration of the warranty period as if the original owner or lessee had not transferred the new home.

AB720,15,2 16.999 Sale or lease of used manufactured homes or mobile homes. In the sale or lease of any used manufactured home or mobile home, the sales invoice or lease agreement shall contain the point of manufacture of the used manufactured home or mobile home, the name of the manufacturer and the name and address of the previous owner.

AB720,15,4 16.9992 Rules. The department of administration shall promulgate rules and establish standards necessary to carry out the purposes of ss.16.998 and 16.999.

AB720,15,10 16.9995 Jurisdiction and venue over out-of-state manufacturers. (1) The importation of a new home for sale in this state by an out-of-state manufacturer is deemed an irrevocable appointment by that manufacturer of the secretary of state to be that manufacturer's true and lawful attorney upon whom may be served all legal processes in any action or proceeding against such manufacturer arising out of the importation of such new home into this state.

AB720,15,17 (2) The secretary of state upon whom processes and notices may be served under this section shall, upon being served with such process or notice, mail a copy by registered mail to the out-of-state manufacturer at the nonresident address given in the papers so served. The original shall be returned with proper certificate of service attached for filing in court as proof of service. The service fee shall be $4 for each defendant so served. The secretary of state shall keep a record of all such processes and notices, which record shall show the day and hour of service.

AB720,15,20 16.9997 Penalties. (1) Any person who violates ss.16.998 to 16.9992, or any rule promulgated under ss. 16.998 to 16.9992, may be fined not more than $1,000 or imprisoned for not more than 6 months or both.

AB720,15,23 (2) In any court action brought by the licensor for violations of this subchapter, the licensor may recover all costs of testing and investigation, in addition to costs otherwise recoverable, if it prevails in the action.

AB720,16,3 (3) Nothing in this subchapter prohibits the bringing of a civil action against a manufacturer, dealer or salesperson by an aggrieved customer. If judgment is rendered for the customer based on an act or omission by the manufacturer, dealer or salesperson, which constituted a violation of this subchapter, the plaintiff shall recover actual and proper attorney fees in addition to costs otherwise recoverable.

AB720, s. 8 Section 8. 16.998 (1) (a) of the statutes, as created by 1995 Wisconsin Act .... (this act), is amended to read:

AB720,16,8 16.998 (1) (a) That the new home meets those standards prescribed by law or administrative rule of the department or of the department of industry, labor and human relations development, which are in effect at the time of its manufacture.

AB720, s. 9 Section 9. 16.9995 of the statutes, as created by 1995 Wisconsin Act .... (this act), is amended to read:

AB720,16,17 16.9995 Jurisdiction and venue over out-of-state manufacturers. (1) The importation of a new home for sale in this state by an out-of-state manufacturer is deemed an irrevocable appointment by that manufacturer of the secretary of state department of financial institutions to be that manufacturer's true and lawful attorney upon whom may be served all legal processes in any action or proceeding against such manufacturer arising out of the importation of such new home into this state.

AB720,16,25 (2) The secretary of state department of financial institutions upon whom processes and notices may be served under this section shall, upon being served with such process or notice, mail a copy by registered mail to the out-of-state manufacturer at the nonresident address given in the papers so served. The original shall be returned with proper certificate of service attached for filing in court as proof of service. The service fee shall be $4 for each defendant so served. The secretary of state department of financial institutions shall keep a record of all such processes and notices, which record shall show the day and hour of service.

AB720, s. 10 Section 10. 20.505 (7) (jf) of the statutes is amended to read:

AB720,17,5 20.505 (7) (jf) (title) Mobile Manufactured and mobile home parks. The amounts in the schedule for the licensing and regulation of manufactured and mobile home parks under s. 16.366. All moneys received under s. 16.366 shall be credited to this appropriation.

AB720, s. 11 Section 11. 20.505 (7) (ji) of the statutes is amended to read:

AB720,17,11 20.505 (7) (ji) (title) Regulation of manufactured home and mobile home dealers and salespersons. The amounts in the schedule for the regulation of manufactured home and mobile home dealers and salespersons under subch. VI X of ch. 218 16. All moneys received under subch. VI X of ch. 218 16 shall be credited to this appropriation.

AB720, s. 12 Section 12. 30.40 (5) of the statutes is created to read: