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