By Seidlits H.B. No. 563
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to manufactured housing.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subsection (c) and Subsection (h), Section 19,
1-5 Texas Manufactured Housing Standards Act (Article 5221f, Vernon's
1-6 Texas Civil Statutes), are amended to read as follows:
1-7 (c)(1) At the first retail sale, the retailer
1-8 and purchaser shall apply for the issuance of a document of title.
1-9 As a part of the application, the retailer shall surrender the
1-10 original manufacturer's certificate. At a subsequent sale or
1-11 transfer the seller and purchaser, or the transferor and
1-12 transferee, shall apply for the issuance of a new document of
1-13 title. As a part of the application, the seller or transferor shall
1-14 surrender the original document of title.
1-15 (2) The commissioner may not refuse to issue a
1-16 document of title, and may not suspend or revoke a document of
1-17 title, unless:
1-18 (A) the application contains any false or
1-19 fraudulent statement, or the applicant has failed to furnish
1-20 information required by the commissioner, or the applicant is not
1-21 lawfully entitled to the issuance of a document of title;
1-22 (B) the commissioner has reasonable basis to
1-23 believe that the manufactured home has been stolen or unlawfully
2-1 converted, or the issuance of a document of title would constitute
2-2 a fraud against the rightful owner or a lienholder;
2-3 (C) the commissioner has reasonable basis to
2-4 believe that the manufactured home is "salvaged" as defined in
2-5 Section 8 of this article and a salvage title has not been applied
2-6 for;
2-7 (D) the required fee has not been paid;
2-8 (E) the state sales and use tax has not been
2-9 paid in accordance with the provisions of Chapter 158, Tax Code,
2-10 and <a state tax lien has been recorded as filed by the comptroller
2-11 pursuant to> Subsection (h) of this section; or
2-12 (F) a local tax lien has been filed and recorded
2-13 pursuant to Section 32.015, Property Tax Code.
2-14 (h) The commissioner shall not issue titles to
2-15 new <record all state tax liens as filed by the comptroller on>
2-16 manufactured homes installed for use and occupancy in this state
2-17 unless the state sales and use tax has been paid. Proof of payment
2-18 may be shown by attaching to the manufacturer's certificate a copy
2-19 of the manufacturer's invoice which includes the tax or in such
2-20 other manner as may be prescribed by the department <The
2-21 commissioner may not issue or transfer the title to a manufactured
2-22 home on which a state tax lien has been filed until the tax,
2-23 penalties, and interest are paid. On receipt of a notice that the
2-24 comptroller has filed a lien, the commissioner shall notify the
2-25 owner and all lienholders>.
3-1 SECTION 2. Section 13, Texas Manufactured Housing Standards
3-2 Act (Article 5221f, Vernon's Texas Civil Statutes) is amended by
3-3 amending Subsection (a) and by adding Subsection (k) to read as
3-4 follows:
3-5 (a) The commissioner may not issue a certificate of
3-6 registration, unless the applicant first files a surety bond, or
3-7 posts other security in such form as the commissioner may prescribe
3-8 and a written, irrevocable designation of the commissioner as agent
3-9 for service of legal process pursuant to the provisions of
3-10 Subsection (k) of this Section.
3-11 (k)(1) The commissioner shall not be served as a
3-12 registrant's agent for service of legal process unless such service
3-13 is accompanied by the affidavit of a person legally authorized to
3-14 serve civil process that service on the registrant has been
3-15 attempted but has not been possible. The affidavit shall set forth
3-16 the facts relating to the attempted, but unsuccessful, service.
3-17 (2) When served with process as the agent of a
3-18 registrant, the commissioner shall mail a copy of the affidavit,
3-19 citation, and petition by certified mail, return receipt requested,
3-20 to the physical location and the mailing addresses of the
3-21 registrant and, if applicable, to the registrant's corporate
3-22 mailing address.
3-23 SECTION 3. Subsection (g) and Subsection (i), Section 13A,
3-24 Texas Manufactured Housing Standards Act (Article 5221f, Vernon's
3-25 Texas Civil Statutes) are amended to read as follows:
4-1 (g) Within 20 days following receipt of service
4-2 of the application and verified claim, the commission may enter an
4-3 appearance on its behalf, file a response, appear at the hearing,
4-4 cross-examine witnesses, or take whatever other action it deems
4-5 appropriate that could have been taken in the original action on
4-6 behalf of, and in the name of, the registrant or surety; in taking
4-7 such action the commission shall act only to protect the fund from
4-8 spurious or unjust claims and to assure compliance with the
4-9 requirements for recovery under this section. If the unsatisfied
4-10 final judgment on which the consumer's claim is based is a default
4-11 judgment, the commission is entitled to a trial de novo for a
4-12 determination of the actual damages, attorney's fees, costs, and
4-13 expenses for which the fund is liable.
4-14 (i) Within 30 days following receipt of the
4-15 order of the court, the commission shall pay to the consumer a sum
4-16 equal to the amount of actual damages and attorney's fees, costs,
4-17 and expenses awarded by the court in its order; however, under no
4-18 circumstances shall any consumer be paid more than $25,000 in
4-19 actual damages nor <in> an amount in excess of $12,500 <$25,000>
4-20 for attorney's fees, costs, and expenses per home. Prior to
4-21 payment, the consumer shall execute an assignment to the commission
4-22 of all of the consumer's right, title, and interest in and to the
4-23 unsatisfied judgment and the judgment lien or the claim against the
4-24 registrant and surety.
4-25 SECTION 4. The importance of this legislation and the
5-1 crowded condition of the calendars in both houses create an
5-2 emergency and an imperative public necessity that the
5-3 constitutional rule requiring bills to be read on three several
5-4 days in each house be suspended, and this rule is hereby suspended,
5-5 and that this Act take effect and be in force from and after its
5-6 passage, and it is so enacted.