Scope Statements
Agriculture, Trade and Consumer Protection
This statement of scope was approved by the governor on July 6, 2012.
Rule No.
Chapter
ATCP 125, Wis. Adm. Code (Existing).
Relating to
Mobile home parks.
Description of the Objective of the Rule
This proposed rule will update and modernize Chapter
ATCP 125 to make it more compatible with current industry practices and to align it with other sections of law that regulate mobile home parks. Specifically, the department will make technical changes for consistency with other provisions of law. The department will explore modernizing sections of the rule that are outdated. The department will also explore whether provisions of the rule deter or prohibit lenders from making loans to mobile home park operators.
Description of Existing Policies Relevant to the Rule and of New Policies Proposed to be Included in the Rule, and an Analysis of Policy Alternatives; the History, Background and Justification for the Proposed Rule
History and background. ATCP 125 was first promulgated as Ag 125 in 1972. At the time, zoning restrictions led to a shortage of mobile home sites in many areas of the state, which inhibited competition and market choice. The rule was promulgated to address unfair trade practices and methods of competition that emerged in the industry. The rule prohibited mobile home park operators from using unfair or deceptive trade practices and unconscionable rental terms and conditions. It also required that rental contracts be in writing and contain specific disclosures. The rule was rewritten in 1976 in response to a substantial number of complaints from mobile home park residents and after a thorough evaluation of the industry and the problems not fully resolved by the existing rule. ATCP 125 was amended again in 1987, following a request from the legislature's Joint Committee for the Review of Administrative Rules in response to numerous consumer complaints.
Proposed policies. DATCP is not planning any major policy change to the existing rule. Rather, there are a number of details in the current rule that should be examined and updated if necessary. For example, the current rule limits security deposits to 3 months' rent or $350, whichever is less. The $350 limit dates back to 1987. DATCP proposes to consider updating the limit to reflect inflationary changes. Additionally, the current rule's provisions relating to tie-in sales may need revisions to correspond to current practices.
Policy Alternatives. Do nothing. If the department does not revise the rule, manufactured home site tenants, community operators, and dealers will continue to operate under outdated regulations.
Statutory Authority for the Rule (Including the Statutory Citation and Language)
Section 93.07 Department duties. It shall be the duty of the department:
(1) REGULATIONS. To make and enforce such regulations, not inconsistent with law, as it may deem necessary for the exercise and discharge of all the powers and duties of the department, and to adopt such measures and make such regulations as are necessary and proper for the enforcement by the state of chs.
93 to
100, which regulations shall have the force of law.
The department, after public hearing, may issue general orders forbidding methods of competition in business or trade practices in business which are determined by the department to be unfair. The department, after public hearing, may issue general orders prescribing methods of competition in business or trade practices in business which are determined by the department to be fair.
Estimate of the Amount of Time that State Employees will Spend to Develop the Rule and of Other Resources Necessary to Develop the Rule
DATCP estimates that it will use approximately 0.4 FTE staff to develop this rule. That includes time required for investigation and analysis, rule drafting, preparing related documents, coordinating advisory committee meetings, holding public hearings and communicating with affected persons and groups. DATCP will use existing staff to develop this rule.
Description of all Entities that may be Impacted by the Rule
This rule impacts mobile home park operators, mobile home dealers, and mobile home park tenants throughout the state.
Summary and Preliminary Comparison of any Existing or Proposed Federal Regulation that is Intended to Address the Activities to be Regulated by the Rule
The federal government does not regulate mobile home park landlord and tenant relationships.
Anticipated Economic Impact
DATCP expects the proposed rule to have minimal economic impact statewide and locally.
Contact Person
Kevin LeRoy, Division of Trade and Consumer Protection, DATCP; Phone (608) 224-4928.
Agriculture, Trade and Consumer Protection
This statement of scope was approved by the governor on July 6, 2012.
Rule No.
Chapter
ATCP 134, Wis. Adm. Code (Existing).
Relating to
Residential rental practices.
Description of the Objective of the Rule
This proposed rule will modify current rules related to residential rental practices. Existing Ch.
ATCP 134 (Residential Rental Practices) and Ch.
704, Stats., (Landlord and Tenant) both regulate transactions and relationships between renters and landlords. However, because of recent changes made to Ch.
704, Stats., by
2011 Wisconsin Act 143, there are now areas where ATCP 134 either overlaps or conflicts with Ch.
704, Stats. This rulemaking will be limited to addressing these conflicts.
Description of Existing Policies Relevant to the Rule and of New Policies Proposed to be Included in the Rule, and an Analysis of Policy Alternatives; the History, Background and Justification for the Proposed Rule
History and background. ATCP 134 was first adopted as Ag 134 in 1980. There were revisions to the rule in 1998.
ATCP 134 prescribes requirements for earnest money, security deposits, and nonstandard rental agreements. It prohibits various practices and rental agreement provisions, such as entering an apartment without providing twelve hours' notice, and it requires landlords to make certain disclosures, such as any uncorrected building code violations.
Proposed policies. DATCP proposes only limited changes to the rule as necessary to resolve conflicts with recently revised Ch.
704, Stats. For example, existing s.
ATCP 134.06 specifies check-in procedures and disclosures of pre-existing damages with new tenants. It also regulates the process landlords must use to return security deposits after termination of a rental agreement and the circumstances under which the security deposit might be withheld. However,
2011 Wisconsin Act 143 incorporated very similar – but not identical – provisions into Ch.
704, Stats.
Policy Alternatives. Do nothing. If the department does not revise the rule, it could be confusing to both rental property owners and tenants because the existing rule is inconsistent with new statutory provisions.
Statutory Authority for the Rule (Including the Statutory Citation and Language)
Section 93.07 Department duties. It shall be the duty of the department:
(1) REGULATIONS. To make and enforce such regulations, not inconsistent with law, as it may deem necessary for the exercise and discharge of all the powers and duties of the department, and to adopt such measures and make such regulations as are necessary and proper for the enforcement by the state of chs.
93 to
100, which regulations shall have the force of law.
The department [of Agriculture, Trade, and Consumer Protection], after public hearing, may issue general orders forbidding methods of competition in business or trade practices in business which are determined by the department to be unfair. The department, after public hearing, may issue general orders prescribing methods of competition in business or trade practices in business which are determined by the department to be fair.
Estimate of the Amount of Time that State Employees will Spend to Develop the Rule and of Other Resources Necessary to Develop the Rule
DATCP estimates that it will use approximately 0.20 FTE staff to develop this rule. That includes time required for investigation and analysis, rule drafting, preparing related documents, coordinating advisory committee meetings, holding public hearings and communicating with affected persons and groups. DATCP will use existing staff to develop this rule.
Description of all Entities that may be Impacted by the Rule
This existing rule affects landlords or rental property owners, and tenants or renters involved in residential rentals.
Summary and Preliminary Comparison of any Existing or Proposed Federal Regulation that is Intended to Address the Activities to be Regulated by the Rule
Federal law does not generally regulate landlord and tenant relationships. The Federal Fair Housing Act of 1968, however, does prohibit a landlord from discriminating because of a renter's race, sex, national origin, or religion.
Many states, including all of Wisconsin's neighbors, have statutes and/or administrative codes that regulate landlord and tenant relationships.
