AB39: Bill Text

LRB-0241/3

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2005 - 2006 LEGISLATURE

2005 Assembly BILL 39

January 25, 2005 - Introduced by Representatives Nass, Vruwink, Vrakas, Kerkman, Montgomery, Kreibich, Suder, Vos, Ott, Hines, Hahn, Musser, Molepske, Nerison, Petrowski and Townsend, cosponsored by Senators Roessler, Lassa, Olsen, Brown, Kedzie, Wirch, Breske and Stepp. Referred to Committee on Housing.

AB39,2,3 An Act to repeal 20.143 (3) (sa), 25.40 (1) (fm), 25.40 (2) (b) 19g., 101.19 (1) (e), 101.92 (1), 101.92 (1m), 101.92 (5), 101.9208 (2), 101.925, 101.93, 101.94 (3), 101.94 (4), 101.94 (5), 101.94 (6), 101.951 (2) (c), 101.951 (2) (d), 101.952 (2) (c) and 101.952 (2) (d); to renumber and amend 101.9208 (1); to consolidate, renumber and amend 101.91 (2) (a) and (b); to amend 20.143 (3) (j), 20.855 (4) (f), 25.46 (19), 85.037, 100.20 (2) (b), 101.125 (1) (a), 101.19 (1) (f), 101.91 (5m), 101.91 (6m), 101.91 (7), 101.91 (8), 101.92 (6), 101.92 (9), 101.9203 (4), 101.9204 (1m), 101.9205 (3), 101.9213 (8), 101.935 (title), 101.935 (2) (a), 101.935 (2) (c) 2., 101.935 (2) (d), 101.935 (2m), 101.937 (title), (1) and (2), 101.937 (3) (a), 101.94 (2), 101.95, 101.951 (2) (a) and 101.952 (2) (a); and to create 15.157 (13), 20.143 (1) (jp), 101.91 (1i), 101.91 (1j), 101.91 (1t), 101.91 (1v), 101.9208 (2m), 101.933, 101.951 (2) (bm), 101.952 (2) (bm), 101.957, 101.96, 101.965 (1p), 101.965 (1t) and 560.285 of the statutes; relating to: regulating the manufactured housing industry and manufactured home installations; promoting rehabilitation and recycling of manufactured housing; requiring the exercise of rule-making authority; providing a penalty; and making appropriations.

Analysis by the Legislative Reference Bureau

This bill 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 bill 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 bill 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 bill 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 bill 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 bill also specifies certain minimum criteria applicable to license applicants. In addition, the bill 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 bill prohibits any city, village, or town from regulating a matter governed by these provisions of the bill or by rules promulgated under each of 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 bill requires Commerce, by rule, to establish fees for these services. This bill 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 bill 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 bill 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 bill 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 bill 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 bill 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 bill 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 bill 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 bill changes the term "park" in these references to the term "community."

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:

AB39, s. 1 Section 1. 15.157 (13) of the statutes is created to read:

AB39,4,4 15.157 (13) Manufactured housing code council. (a) There is created in the department of commerce a manufactured housing code council consisting of the following members appointed by the secretary of commerce for 3-year terms:

AB39,4,5 1. Two members representing manufacturers of manufactured homes.

AB39,4,6 2. Two members representing manufactured home dealers.

AB39,5,1 3. Two members representing owners of manufactured home communities.

AB39,5,2 4. Two members representing installers of manufactured homes.

AB39,5,4 5. One member representing an association of the manufactured housing industry in Wisconsin.

AB39,5,6 6. One member representing suppliers of materials or services to the manufactured housing industry.

AB39,5,7 7. One member representing the public.

AB39,5,10 (b) The council shall meet at least twice a year. An employee of the department designated by the secretary of the department shall serve as nonvoting secretary of the council.

AB39, s. 2 Section 2. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table

AB39, s. 3 Section 3. 20.143 (1) (jp) of the statutes is created to read:

AB39,5,17 20.143 (1) (jp) Manufactured housing rehabilitation and recycling; program revenue. The amounts in the schedule for the administration of and for grants under s. 560.285. All moneys received under s. 101.9208 (2m) shall be credited to this appropriation.