BILL ANALYSIS C.S.H.B. 500 By: Horn April 21, 1995 Committee Report (Substituted) BACKGROUND Article 6701-1/2, Vernon's Texas Civil Statutes, provides for the movement of manufactured homes. The Texas Department of Transportation (TxDoT) prescribes the forms and issues the permits for a fee of $15. Currently, TxDoT documents the last four digits of the homes' six digit serial number when issuing the permits. The Texas Department of Licensing and Regulation (TDLR) is responsible for recording ownership of the manufactured homes and forwarding this information to the county tax assessor-collector in the county where the home is located. These homes are carried on the county ad valorem tax rolls. The appraisal district is responsible for determining the location and market value of each home, and the collector is responsible for the assessment and collection of these taxes. PURPOSE This bill requires the Department of Transportation to include certain information on moving permits for manufactured homes and increases the fee on these permits. Additionally, it would change current mobile home tax lien provisions. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Article 5221f, Section 19(k), V.T.C.S., by giving priority to tax liens established under Chapter 32 (Tax Liens and Personal Liability), Tax Code. SECTION 2. Amends Article 6701-1/2, Subsection B, Revised Statutes, by requiring that a permit issued by the Texas Department of Transportation to move a manufactured home contain the identification or serial number, the HUD label number, or the state seal number. It must also contain the name of the home's owner and the origin and destination of the home. Specifies conditions by which TxDoT is required to transfer a copy of the permit to appraisal districts of the county of origin and destination. SECTION 3. Amends Article 6701-1/2, Subsection D, Revised Statutes, by increasing the fee for a permit issued by TxDoT from $15 to $16. The additional $1 in revenue shall be credited to the state highway fund. Deletes all references to the issuance of "permit books." SECTION 4. Amends Section 32.015 (Recording Tax Lien on Manufactured Home), Tax Code, to specify that a tax lien may be filed if it has the complete serial number, HUD label number, or state seal number. Requires that the Department of Licensing and Regulation record a timely filed tax lien even if the manufactured home has transferred ownership prior to the time that the tax lien was timely filed. Specifies that both new owners and lienholders of manufactured homes are considered to be on notice of current year taxes and taxes for the previous year if the time for filing a tax lien has not expired. Requires that a tax collector accept a payment for taxes on which there is a lien properly filed on a manufactured home without demanding payment of taxes for years for which no lien was properly filed on the same home. Specifies that if there is no recorded title on a manufactured home, then the tax liens are still enforceable. SECTION 5. Amends Section 32.03 (Restrictions on Personal Property Tax Lien), Tax Code, by amending Subsection (b) to allow the collector to recover only on liens that have been timely filed and recorded pursuant to Section 32.015, Tax Code. SECTION 6. Repeals the heading to Subchapter A (Taxable Situs of Property Generally), and repeals Subchapter B (Determination of Situs of Mobile Homes), Chapter 21, Tax Code. SECTION 7. Amends Section 8 (Used Homes), Article 5221f, Revised Statues, to provide tax collectors with a procedure to apply for a state seal number for identification purposes for selling a manufactured home to collect delinquent taxes. SECTION 8. (a) Effective date: September 1, 1995 (b) Repeal of Section 21.24, Tax Code, applies only to an offense committed on or after the effective date. SECTION 9. Emergency clause COMPARISON OF ORIGINAL TO SUBSTITUTE The original bill specified the information that a permit issued for moving a manufactured home must contain. The committee substitute adds to the information required on the permit. H.B. 500 increased the permit fee from $15 to $25. C.S.H.B. 500 increases the fee from $15 to $16. The original bill contained provisions referring to a "manufactured home information report." C.S.H.B. 500 does not contain such language. The original bill allowed the tax collector to recover the fee charged by the TDLR to obtain a state seal number by adding new language to Section 33.48, Tax Code. The committee substitute allows for the recovery of the fee, but it is provided for under Section 8, Article 5221f, Revised Statutes. SUMMARY OF COMMITTEE ACTION Public notice was posted in accordance with the rules, and a public hearing was held on March 21, 1995. Representative Horn explained the bill. Without objection, H.B. 500 was left pending before the committee. On April 18, 1995, the committee met in a public hearing and considered H.B. 500 on pending business. The committee considered a complete substitute by Representative Horn. Without objection, C.S.H.B. 500 was adopted. By a record vote of 9 ayes, 0 nays, 0 present not voting, and 2 absent, the committee voted to report H.B. 500 to the House as substituted with the recommendation that it be sent to the Local and Consent Calendar and that it do pass. Testimony received in favor of the bill (3/21/95): Mary Horn, representing herself Kirk Swinney, representing himself and the County of Denton, et al. Jim Robinson, representing himself Testimony received against the bill (3/21/95): Will Ehrle, representing the Texas Manufactured Housing Assn. Larry Simmons, representing himself