73R5817 LJR-F
By Seidlits, et al. H.B. No. 563
Substitute the following for H.B. No. 563:
By Jones of Lubbock C.S.H.B. No. 563
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of manufactured housing.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 13, Texas Manufactured Housing Standards
1-5 Act (Article 5221f, Vernon's Texas Civil Statutes), is amended by
1-6 amending Subsection (a) and by adding Subsection (k) to read as
1-7 follows:
1-8 (a) The commissioner may not issue a certificate of
1-9 registration, unless the applicant first files a surety bond or
1-10 posts other security in such form as the commissioner may prescribe
1-11 and a written irrevocable designation of the commissioner as agent
1-12 for service of legal process, which service is made pursuant to
1-13 Subsection (k) of this section.
1-14 (k)(1) The commissioner may not be served as a registrant's
1-15 agent for service of legal process unless the service is
1-16 accompanied by the affidavit of a person legally authorized to
1-17 serve civil process that service on the registrant has been
1-18 attempted but has not been possible. The affidavit shall set forth
1-19 the facts relating to the attempted, but unsuccessful, service.
1-20 (2) When served with process as the agent of a
1-21 registrant, the commissioner shall mail a copy of the affidavit,
1-22 citation, and petition by certified mail, return receipt requested,
1-23 to the physical location and the mailing addresses of the
2-1 registrant and, if applicable, to the registrant's corporate
2-2 mailing address.
2-3 SECTION 2. Sections 13A(g) and (i), Texas Manufactured
2-4 Housing Standards Act (Article 5221f, Vernon's Texas Civil
2-5 Statutes), are amended to read as follows:
2-6 (g) Within 20 days following receipt of service of the
2-7 application and verified claim, the commission may enter an
2-8 appearance on its behalf, file a response, appear at the hearing,
2-9 cross-examine witnesses, or take whatever other action it deems
2-10 appropriate that could have been taken in the original action on
2-11 behalf of, and in the name of, the registrant or surety; in taking
2-12 such action the commission shall act only to protect the fund from
2-13 spurious or unjust claims and to assure compliance with the
2-14 requirements for recovery under this section. If the unsatisfied
2-15 final judgment on which the consumer's claim is based is a default
2-16 judgment, the commission is entitled to a trial de novo for a
2-17 determination of the actual damages, attorney's fees, costs, and
2-18 expenses for which the fund is liable.
2-19 (i) Within 30 days following receipt of the order of the
2-20 court, the commission shall pay to the consumer a sum equal to the
2-21 amount of actual damages and attorney's fees, costs, and expenses
2-22 awarded by the court in its order; however, under no circumstances
2-23 shall any consumer be paid more than $25,000 in actual damages or
2-24 <in> an amount in excess of $12,500 for attorney's fees, costs, and
2-25 expenses <$25,000> per home. Prior to payment, the consumer shall
3-1 execute an assignment to the commission of all of the consumer's
3-2 right, title, and interest in and to the unsatisfied judgment and
3-3 the judgment lien or the claim against the registrant and surety.
3-4 SECTION 3. Sections 19(c)(2) and (h), Texas Manufactured
3-5 Housing Standards Act (Article 5221f, Vernon's Texas Civil
3-6 Statutes), are amended to read as follows:
3-7 (2) The commissioner may not refuse to issue a
3-8 document of title, and may not suspend or revoke a document of
3-9 title, unless:
3-10 (A) the application contains any false or
3-11 fraudulent statement, or the applicant has failed to furnish
3-12 information required by the commissioner, or the applicant is not
3-13 lawfully entitled to the issuance of a document of title;
3-14 (B) the commissioner has reasonable basis to
3-15 believe that the manufactured home has been stolen or unlawfully
3-16 converted, or the issuance of a document of title would constitute
3-17 a fraud against the rightful owner or a lienholder;
3-18 (C) the commissioner has reasonable basis to
3-19 believe that the manufactured home is "salvaged" as defined in
3-20 Section 8 of this article and a salvage title has not been applied
3-21 for;
3-22 (D) the required fee has not been paid;
3-23 (E) the state sales and use tax has not been
3-24 paid in accordance with the provisions of Chapter 158, Tax Code,
3-25 and its subsequent amendments, and <a state tax lien has been
4-1 recorded as filed by the comptroller pursuant to> Subsection (h) of
4-2 this section; or
4-3 (F) a local tax lien has been filed and recorded
4-4 pursuant to Section 32.015, Property Tax Code.
4-5 (h) The commissioner shall not issue titles to new <record
4-6 all state tax liens as filed by the comptroller on> manufactured
4-7 homes installed for use and occupancy in this state unless the
4-8 state sales and use tax has been paid. Proof of payment may be
4-9 shown by attaching to the manufacturer's certificate a copy of the
4-10 manufacturer's invoice which includes the tax or in such other
4-11 manner as may be prescribed by the department <The commissioner
4-12 may not issue or transfer the title to a manufactured home on which
4-13 a state tax lien has been filed until the tax, penalties, and
4-14 interest are paid. On receipt of a notice that the comptroller has
4-15 filed a lien, the commissioner shall notify the owner and all
4-16 lienholders>.
4-17 SECTION 4. The importance of this legislation and the
4-18 crowded condition of the calendars in both houses create an
4-19 emergency and an imperative public necessity that the
4-20 constitutional rule requiring bills to be read on three several
4-21 days in each house be suspended, and this rule is hereby suspended,
4-22 and that this Act take effect and be in force from and after its
4-23 passage, and it is so enacted.