Enrolled Bill Summary

            Senate Bill 521 relates to the acquisition and regulation of manufactured homes. The bill amends the Occupations Code to authorize the owner of a manufactured home to treat the home as either personal property or real property. It defines a "statement of ownership and location" to mean a statement issued by the Texas Department of Housing and Community Affairs (TDHCA) that establishes the ownership and location of a manufactured home sold at a retail sale or installed in this state, and sets out requirements and procedures for obtaining a statement of ownership and location. The bill provides that, effective September 1, 2003, any outstanding document of title is considered a statement of ownership and location. The bill revises the written statement that must accompany a credit application a retailer or agent provides to a consumer. It requires TDHCA to adopt rules addressing consumer protection disclosures required in chattel mortgage transactions and to prescribe the form for that disclosure statement. A retailer must deliver an installment contract and certain disclosure statements to a consumer at least 24 hours before an installment contract is fully executed. The consumer may not waive the right to receive disclosure statements and may rescind a contract without penalty or charge not later than the third day after the contract is signed. The bill provides that a retailer may require a deposit on a specially ordered manufactured home. It authorizes the director of the Manufactured Housing Board to assess an administrative penalty against a retailer who fails to provide certain information to a consumer and requires that a nonbinding estimate made by a retailer must be in writing and in good faith. The bill establishes procedures for converting personal property to real property and for obtaining a new statement of ownership and location due to a change in the use of a manufactured home. The bill expands the continuing education requirements for retailers licensed to sell manufactured homes.

            The bill amends the Finance Code to waive an escrow requirement for a transaction involving a manufactured home if certain conditions are met and amends provisions of the Property Code to conform to the new Occupations Code requirements. It amends Tax Code provisions relating to homestead exemptions and tax considerations for manufactured homes and amends Transportation Code provisions relating to offenses and penalties relating to illegally moving a manufactured home.             The bill takes effect June 18, 2003, except that the Occupations Code provisions relating to certification and continuing education and the Tax Code provisions take effect January 1, 2004.