AB519: Bill Text

Under current law, manufacturers of manufactured homes are regulated by the department of commerce, which is responsible for licensing all manufacturers desiring to sell or distribute for sale manufactured homes in this state. In addition, under current law the department of commerce is required 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. The department's rules may establish standards that are in addition to any standards established by the secretary of housing and urban development under the federal statutes regulating manufactured homes.

2. Review typical construction plans and specifications that manufacturers are required to submit to the department 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 the department 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.

This bill eliminates the requirements that the department of commerce perform the duties listed in items 1, 2, 4 and 5.

In addition, under current law the department of commerce must appoint a 5-member advisory committee to review the rules and standards for manufactured homes and recommend to the department changes to those rules and standards. This bill eliminates the requirement that the department appoint such an advisory committee.

Other

This bill will be referred to the joint survey committee on tax exemptions for a detailed analysis, which will be printed as an appendix to this bill.

For further information see the state and local 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:

AB519, s. 1 Section 1. 16.366 (title) of the statutes is amended to read:

AB519,5,2 16.366 (title) Mobile Manufactured and mobile home park regulation.

AB519, s. 2 Section 2. 16.366 (1) of the statutes is renumbered 16.366 (1r) and amended to read:

AB519,5,7 16.366 (1r) The department shall license and regulate mobile home parks. The department may investigate mobile home parks and, with notice, may enter and inspect private property.

AB519, s. 3 Section 3. 16.366 (1g) of the statutes is created to read:

AB519,5,9 16.366 (1g) In this section:

AB519,5,10 (a) "Manufactured home" has the meaning given in s. 101.91 (2).

AB519,6,1 (b) "Mobile home" has the meaning given in s. 101.91 (1).

AB519,6,3 (c) "Park" means a manufactured and mobile home park, as defined in s. 66.058 (1) (e).

AB519, s. 4 Section 4. 16.366 (2) (a) of the statutes is amended to read:

AB519,6,8 16.366 (2) (a) The department or a village, city or county granted agent status under par. (e) shall issue permits to and regulate mobile home parks. No person, state or local government who has not been issued a permit under this subsection may conduct, maintain, manage or operate a mobile home park.

AB519, s. 5 Section 5. 16.366 (2) (d) of the statutes is amended to read:

AB519,6,22 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.

AB519, s. 6 Section 6. 16.366 (2m) of the statutes is amended to read:

AB519,6,25 16.366 (2m) (a) The department shall inspect a mobile home park in the following situations:

AB519,7,1 1. Upon completion of the construction of a new mobile home park.

AB519,7,3 2. Whenever a mobile home park is modified, as defined by the department by rule.

AB519,7,4 3. Whenever the department receives a complaint about a mobile home park.

AB519,7,6 (b) The department may, with notice, inspect a mobile home park whenever the department determines an inspection is appropriate.

AB519, s. 7 Section 7. Subchapter X of chapter 16 [precedes 16.995] of the statutes is created to read:

AB519,7,9 Chapter 16

AB519,7,12 Subchapter X Manufactured home and mobile home dealers

AB519,7,13 16.995 Definitions. In this subchapter:

AB519,7,18 (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:

AB519,7,20 (a) A receiver, trustee, administrator, executor, guardian or other person appointed by or acting under the judgment or order of any court.

AB519,7,21 (b) Any public officer while performing that officer's official duty.

AB519,7,22 (c) Any employe of a person enumerated in par. (a) or (b).

AB519,7,23 (d) Any lender as defined in s. 421.301 (22).

AB519,8,2 (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.

AB519,8,4 (2) "Delivery date" means the date on which a manufactured home or mobile home is physically delivered to the site chosen by the owner.

AB519,8,7 (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.

AB519,8,8 (4) "Licensor" means the division of housing in the department.

AB519,8,9 (5) "Manufactured home" has the meaning given in s. 101.91 (2).

AB519,8,11 (6) "Manufacturer" means any person within or without this state who manufactures or assembles manufactured homes for sale in this state.

AB519,8,12 (7) "Mobile home" has the meaning given in s. 101.91 (1).

AB519,8,14 (8) "New home" means a manufactured home that has never been occupied, used or sold for personal or business use.

AB519,8,16 (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.

AB519,8,18 (10) "Salesperson" means any person who is employed by a manufacturer or dealer to sell or lease manufactured homes or mobile homes.

AB519,8,20 (11) "Used home" means a manufactured home or mobile home that has previously been occupied, used or sold for personal or business use.

AB519,8,23 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.

AB519,9,3 (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).

AB519,9,5 (b) 1. The licensor shall promulgate rules establishing the license period under this section.

AB519,9,7 2. The licensor may promulgate rules establishing a uniform expiration date for all licenses issued under this section.

AB519,9,10 (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.

AB519,9,15 (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).

AB519,9,22 (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.

AB519,9,24 (5) A licensee shall conduct the licensed business continuously during the license period.

AB519,10,2 (5m) Any person who violates any provision of this section shall be fined not less than $25 nor more than $100 for each offense.

AB519,10,4 (6) The licensor may deny, suspend or revoke a license on the following grounds:

AB519,10,5 (a) Proof of unfitness.

AB519,10,6 (b) Material misstatement in the application for a license.

AB519,10,8 (c) Filing a materially false or fraudulent income or franchise tax return as certified by the department of revenue.

AB519,10,10 (d) Wilful failure to comply with any provision of this section or any rule promulgated by the licensor under this section.

AB519,10,11 (e) Wilfully defrauding any retail buyer to the buyer's damage.

AB519,10,12 (f) Wilful failure to perform any written agreement with any retail buyer.

AB519,10,13 (g) Failure or refusal to furnish and keep in force any bond required.

AB519,10,14 (h) Having made a fraudulent sale, transaction or repossession.

AB519,10,17 (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.

AB519,10,20 (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.

AB519,10,21 (k) Having indulged in any unconscionable practice relating to said business.

AB519,10,23 (m) Having sold a retail instalment contract to a sales finance company not licensed under this section.

AB519,10,25 (n) Having violated any law relating to the sale, distribution or financing of manufactured homes or mobile homes.

AB519,11,5 (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.

AB519,11,14 (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.

AB519,11,18 (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.

AB519,11,23 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.

AB519,12,2 (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.

AB519,12,4 (b) 1. The licensor shall promulgate rules establishing the license period under this section.

AB519,12,6 2. The licensor may promulgate rules establishing a uniform expiration date for all licenses issued under this section.

AB519,12,9 (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.

AB519,12,14 (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).

AB519,12,19 (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.

AB519,12,22 (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.

AB519,12,24 (6) Any person aggrieved by a decision of the licensor may have a review of the decision as provided in ch. 227.

AB519,13,6 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:

AB519,13,9 (a) That the new home meets those standards prescribed by law or administrative rule of the department or of the department of commerce, which are in effect at the time of its manufacture.