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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of manufactured homes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 1201, Occupations Code, is |
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amended by adding Section 1201.1021 to read as follows: |
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Sec. 1201.1021. POWERS OF DIRECTOR DURING DECLARED |
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EMERGENCY. (a) For purposes of this section, a declared emergency |
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exists when an emergency declaration is issued by the governor or a |
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federal agency. |
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(b) During a declared emergency that exceeds a period of 14 |
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days, the director may: |
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(1) waive licensing requirements to ensure the |
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continued and adequate supply of professionals to build, sell, |
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transport, insure, finance, and install manufactured homes; and |
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(2) require a person to register with the department |
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before engaging in any activity regulated under this chapter. |
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(c) Following the cessation of a declared emergency, the |
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director may require a person registered with the department under |
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Subsection (b)(2) to comply with the criminal history background |
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check requirements and other licensing requirements of this |
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chapter. |
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(d) All actions regulated by this chapter and actions needed |
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to construct, transport, install, sell, finance, rent, and insure |
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manufactured homes are essential services that must be allowed to |
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continue to operate at a statewide level during a declared |
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emergency. |
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SECTION 2. Section 1201.1025, Occupations Code, is amended |
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by adding Subsection (a-1) and amending Subsection (c) to read as |
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follows: |
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(a-1) A person is exempt from holding a retailer's license |
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as required by Section 1201.101(b) if all manufactured homes sold |
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or offered for sale by the person are: |
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(1) located in a manufactured home community, as |
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defined by Section 94.001, Property Code; and |
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(2) sold or offered for sale to the same purchaser in |
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connection with a sale of the real property of the community. |
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(c) A person who is eligible for an exemption under this |
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section remains subject to the other applicable provisions of this |
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subchapter and department rules regarding the sale or transfer of |
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manufactured homes. |
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SECTION 3. Section 1201.1031(a), Occupations Code, is |
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amended to read as follows: |
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(a) Except as provided by Section 1201.1021, the [The] |
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department shall require that an applicant for a license or renewal |
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of an unexpired license submit a complete and legible set of |
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fingerprints, on a form prescribed by the board, to the department |
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or to the Department of Public Safety for the purpose of obtaining |
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criminal history record information from the Department of Public |
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Safety and the Federal Bureau of Investigation. The applicant is |
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required to submit a set of fingerprints only once under this |
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section unless a replacement set is otherwise needed to complete |
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the criminal history check required by this section. |
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SECTION 4. Section 1201.104(g), Occupations Code, is |
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amended to read as follows: |
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(g) Subsections (a), (a-2), (a-3), and (a-4) do not apply: |
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(1) to a license holder who applies: |
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(A) [(1)] for a license for an additional |
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business location; or |
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(B) [(2)] to renew or reinstate a license; or |
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(2) during a declared emergency as described by |
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Section 1201.1021. |
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SECTION 5. Section 1201.153(c), Occupations Code, is |
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amended to read as follows: |
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(c) The notice must: |
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(1) contain the information required by: |
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(A) the United States Department of Housing and |
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Urban Development; or |
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(B) the board; and |
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(2) be of the type, size, and format required by the |
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director. |
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SECTION 6. Section 1201.201(5), Occupations Code, is |
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amended to read as follows: |
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(5) "Inventory": |
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(A) means: |
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(i) new manufactured homes purchased by a |
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retailer from a manufacturer; and |
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(ii) used manufactured homes that: |
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(a) [(A)] a retailer has designated |
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as the retailer's inventory for sale pursuant to the process |
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implemented by the department; and |
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(b) [(B)] are not used as residential |
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dwellings when so designated; and |
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(B) does not include manufactured homes used by a |
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retailer as equipment, as defined by Section 9.102(a)(33), Business & |
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Commerce Code. |
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SECTION 7. Section 1201.219(a), Occupations Code, is |
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amended to read as follows: |
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(a) Notwithstanding Section 9.310, Business & Commerce |
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Code, a [A] lien on manufactured homes in a retailer's inventory is |
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perfected only by filing the lien with the department on the |
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required form. Once perfected, the lien applies to the |
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manufactured homes in the inventory as well as to any proceeds from |
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the sale of those homes. The department may suspend or revoke the |
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license of a retailer who fails to satisfy a perfected inventory |
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lien. |
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SECTION 8. Section 1201.357(b), Occupations Code, is |
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amended to read as follows: |
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(b) If the manufacturer, retailer, or installer, as |
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applicable, fails or refuses to provide warranty service in |
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accordance with the department order under Section 1201.356, the |
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director may [shall] hold an informal meeting at which the |
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manufacturer, retailer, or installer must show cause as to why the |
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manufacturer's, retailer's, or installer's license should not be |
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suspended or revoked and at which the consumer may express the |
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person's views. Following the meeting, the director shall either |
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resolve the matter by agreed order, dismiss the matter if no |
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violation is found to have occurred, or institute an administrative |
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action, which may include license suspension or revocation, the |
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assessment of administrative penalties, or a combination of such |
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actions. |
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SECTION 9. This Act takes effect September 1, 2021. |