BILL ANALYSIS



H.B. 353
By: Cook
3-14-95
Committee Report (Amended)


BACKGROUND

     Currently, under Vernon's Texas Civil Statute, Article 5221f,
a manufactured home is not attached to the property upon which that
manufactured home resides for occupancy unless the title for the
manufactured home is cancelled, absent of a lien, under article
5221f(j).  This article does not provide a vehicle for cancelling
a title upon which there remains a lien, and there is no actual
document provided to the owner that demonstrates the manufactured
home as being attached to the property.  In property transactions
involving manufactured homes, a title check must be requested of
the Department of Licensing and Regulation in Austin, which can
take weeks.

PURPOSE

     This legislation adds Chapter 2 Nature of Property, Sec. 2.001
to the Property Code which defines under what terms a manufactured
home is considered to be real property.  It also amends Vernon's
Texas Civil Statute 5221f to allow the department the authority to
create a "certificate of attachment" and the accompanying procedure
to be used with the certificate in attaching a manufactured home to
real property.  The certificate of attachment will allow a
manufactured home to be documented as real property with the
county's real property records, therefore negating the need for a
title check to be processed by the department.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill gives the Department
of Licensing and Regulation the authority to prescribe the
certificate of attachment, and to establish  rules as to the
procedures to be used with regards to the certificate of
attachment.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Title 1, Property Code as follows:

           CHAPTER 2. NATURE OF PROPERTY

     Sec. 2.001. New Title: MANUFACTURED HOUSING. Provides that a
manufactured   home shall be considered personal property if the
home is permanently attached to real    property, and a
"certificate of attachment" (as defined by Texas Manufacturing
Housing    Standards Act under Article 5221f, Vernon's Texas Civil
Statutes) is filed in the real     property records of the county
in which the home is located.

SECTION 2. Amends Vernon's Texas Civil Statute, Article 5221f, as
follows:

     Sec. 21. New Title: CERTIFICATE OF ATTACHMENT. Provides that
the Department      of Licensing and Regulation with the authority
shall issue a certificate of attachment to   the owner of a
manufactured home after certifying that the home is permanently
attached   to real property.  In addition, the section instructs
the department to   prescribe the form  of the certificate and
establish procedures for certifying that a manufactured home is  permanently attached to real property and for applying for and
issuing  a certificate   attachment.

SECTION 3. Emergency Clause

EXPLANATION OF AMENDMENTS

COMMITTEE AMENDMENT #1 amends subsection (b) under Section 2.001,
Chapter 2, Title 1, Property Code. This language specifies the
conditions under which a manufactured home becomes and constitutes
real property. This section states that (1) the manufactured home
must be permanently attached to real property and that (2) the
manufacturer's certificate of origin or the original document of
title must be relinquished and thereby cancelled.  In its place, a
certificate of attachment is filed in the real property records of
the county in which the home is attached to the property, pursuant
to the provisions of the Texas Manufactured Housing Standards Act,
(Article 5221f, Vernon's Texas Civil Statutes).   

COMMITTEE AMENDMENT #2 amends Section 2.001, Chapter 2, Title 1,
Property Code by adding subsection (d).  This new subsection does
not affect nor does it change the classification of a manufactured
home as personal or real property, if the manufactured home was
permanently affixed to real estate prior to January 1, 1996.  

SUMMARY OF COMMITTEE ACTION

House Bill 353 was considered in a public hearing on March 14,
1995.  Testifying on the bill was Jane Brinkman, representing the
Texas Department of Licensing and Regulation.  The Business &
Industry Committee considered two (2) amendments to the bill.  The
two (2) amendments were adopted without objection.  A motion to
report HB 353 as amended to the full house with the recommendation
that it do pass and be printed, carried with a record vote of 8
Ayes, 0 Nays, 0 present-not-voting, and 1 absent.