By Horn                                                H.B. No. 500
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the filing of notices of ad valorem tax liens on
    1-3  manufactured homes.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1, Article 5221f, Section 19(k) is amended to
    1-6  hereafter read as follows:
    1-7        (k)  The registration and recordation of a lien with the
    1-8  department is notice to all persons that lien exists, Liens
    1-9  recorded or registered with the department have priority, in the
   1-10  chronological order of recordation, over the liens or claims
   1-11  against the manufactured home.  However, tax liens established
   1-12  pursuant to Chapter 32 of the Texas Tax Code shall have the
   1-13  priority ascribed therein not withstanding this subsection.
   1-14        SECTION 2.  Article 6701 1/2, Subsection B., Vernon's Texas
   1-15  Civil Statutes is amended to hereafter read as follows:
   1-16              B. (1)  The application for a permit and the permit
   1-17  shall be in the form as prescribed by the Texas State Department of
   1-18  <Highways and Public> Transportation; however, the permit must
   1-19  contain the overall length, width, and height of the manufactured
   1-20  home and the towing vehicle in combination.  The overall combined
   1-21  length of the manufactured home and towing vehicle shall include
   1-22  the length of the hitch or towing device.  The height shall be
   1-23  measured from the road bed to the highest elevation of the
    2-1  manufactured home.  The width of the home or section shall include
    2-2  any roof or eave extension or overhang on either side.  The permit
    2-3  must also contain the serial number, Department of Housing and
    2-4  Urban Development label number or state seal number, and the name
    2-5  of the owner of the manufactured home.
    2-6              (2)  The permit shall contain the route for the
    2-7  transportation of the manufactured home from the point of origin to
    2-8  the point of destination.  The route shall be the shortest distance
    2-9  including divided and interstate systems, except where construction
   2-10  is in progress or bridge or overpass width or height would create a
   2-11  safety hazard.
   2-12              (3)  The Texas Department of Transportation shall
   2-13  deliver a copy of the permit, or the essential information
   2-14  contained therein, to the appraisal district of the Texas county of
   2-15  origin and the appraisal district of the Texas county of
   2-16  destination of the manufactured home being transported pursuant to
   2-17  the permit.  Such information shall be supplied to the appraisal
   2-18  districts no less frequently than quarterly.
   2-19        SECTION 3.  Article 6701 1/2.  Subsection D, Vernon's Texas
   2-20  Civil Statute is amended to hereafter read as follows:
   2-21              D.  A fee of <Fifteen> Twenty-Five Dollars <($15)> ($25)
   2-22  for each permit shall be collected by the Texas State Department of
   2-23  <Highways and Public> Transportation and. Fifteen Dollars ($15) of
   2-24  the fee shall be deposited in the Treasury of the State of Texas to
   2-25  the credit of the General Revenue Fund.  One Dollar ($1) of the fee
    3-1  shall be deposited in the fund for maintenance of the state
    3-2  highways to defray the costs of administering the permits.  A total
    3-3  of Nine Dollars ($9) of the fee shall be forwarded to the treasurer
    3-4  or auditor of the Texas county of origin of the manufactured home
    3-5  for utilization in the county's general revenue fund.  The
    3-6  Department of Transportation shall distribute such monies to the
    3-7  counties at least annually.  If the point of origin is not in
    3-8  Texas, then Nine dollars ($9) of the fee shall not be collected. <On
    3-9  application, said department shall issue permit books or packets
   3-10  containing twenty (20) individual permits provided that the
   3-11  aggregate fee of Fifteen Dollars ($15) per permit, is received with
   3-12  such application.  The book type permit can be used for the
   3-13  movement of any manufactured home regardless of the width, length,
   3-14  or height, and route approval can be secured by telephone from the
   3-15  issuing office along with any required validation number for the
   3-16  permit.  In lieu of the permit books or packets, said department
   3-17  may establish an escrow account for the payment of permit fees.>
   3-18        SECTION 4.  Texas Tax Code Sections 21.21, 21.22, 21.23,
   3-19  21.24, and 21.25 are repealed.
   3-20        SECTION 5.  Texas Tax Code Section 32.015(b) is amended to
   3-21  hereafter read as follows:
   3-22        (b)  The collector may simultaneously file notice of tax
   3-23  liens of all taxing units served by collector.  However, notice of
   3-24  any lien for taxes for the prior calendar year must be filed with
   3-25  the Texas Department of Licensing and Regulation prior to September
    4-1  1st of the following year.  <Any lien for which the notice is not
    4-2  filed by such date is extinguished and not enforceable.> For any
    4-3  manufactured home which is subject to a lien of record on a
    4-4  document of title issued by the Texas Department of Licensing and
    4-5  Regulation, either the lienholder or owner may submit a
    4-6  manufactured home information report showing the name and address
    4-7  of the owner of the manufactured home, the location of the home,
    4-8  the name and address of the lienholder on the manufactured home,
    4-9  and its correct state seal number, serial number or Department of
   4-10  Housing and Urban Development label number (hereinafter referred to
   4-11  as "manufactured home information report").  The manufactured home
   4-12  information report shall be filed with the appraisal districts
   4-13  appraising the manufactured home.  The manufactured home
   4-14  information report shall be filed with appropriate appraisal
   4-15  district by June 1st of any given year to be effective in that
   4-16  year.  The manufactured home information report shall continue to
   4-17  be effective so long as the reported ownership, location and
   4-18  identification number on the report is accurate.  If the
   4-19  manufactured home information report is timely filed, no ad valorem
   4-20  tax lien created by Section 32.01 of this Code for any unit served
   4-21  by that appraisal district shall be effective for that year or any
   4-22  subsequent year during the effectiveness of the manufactured home
   4-23  information report, unless the collector shall file a notice of tax
   4-24  lien with the Texas Department of Licensing and Regulation no later
   4-25  than September 1st of the year following the year in which the ad
    5-1  valorem tax is imposed.
    5-2        SECTION 6.  Texas Tax Code Section 32.015(c) is amended to
    5-3  hereafter read as follows:
    5-4        (c)  If the identification or serial number of the Department
    5-5  of Housing and Urban Development label number or state seal number
    5-6  of the home on the tax lien notice matches that of the title of
    5-7  record, the Texas Department of Licensing and Regulation shall
    5-8  record the tax lien on the title records of the manufactured home.
    5-9  Simultaneously, with the recording of a tax lien, the Texas
   5-10  Department of Licensing and Regulation must mail a notice of the
   5-11  tax lien to any other lienholders of record.  The Texas Department
   5-12  of Licensing and Regulation shall record the notice of tax lien
   5-13  even though the manufactured home may have been transferred to a
   5-14  new owner since the accrual of the tax liability.  The recording of
   5-15  the tax lien does not, however, invalidate any prior, otherwise
   5-16  legitimate, issuances of documents of title by the Texas Department
   5-17  of Licensing and Regulation.
   5-18        SECTION 7.  Texas Tax Code Section 32.015(d) is amended to
   5-19  hereafter read as follows:
   5-20        (d)  For all manufactured homes sold, or to which ownership
   5-21  is transferred, after December 31, 1985, the recording of a tax
   5-22  lien under this section constitutes constructive notice of the
   5-23  existence of the lien to all purchasers of the manufactured home
   5-24  who purchase it after the date of recordation of the lien and
   5-25  before a tax certificate or paid tax receipt is filed pursuant to
    6-1  Subsection (e) of this section canceling the lien.  This subsection
    6-2  shall not invalidate or subordinate an unfiled tax lien with regard
    6-3  to any manufactured home  for which no manufactured home
    6-4  information report was timely filed with the appropriate appraisal
    6-5  district.  All transferees of a manufactured home shall further
    6-6  have constructive notice of ad valorem taxes assessed against that
    6-7  manufactured home for the current tax year at the time of the
    6-8  transfer or for any prior tax year for which the time for filing a
    6-9  notice of tax lien has not expired at the time of the transfer.
   6-10        SECTION 8.  Texas Tax Code Section 32.015 is amended by
   6-11  adding Subsection (h) thereto to read as follows:
   6-12        (h)  If a collector is not able to identify a serial number,
   6-13  Department of Housing and Urban Development label number, or state
   6-14  seal number on a manufactured home, the collector of any applicable
   6-15  taxing unit may apply to the Texas Department of Licensing and
   6-16  Regulation for a state seal number and attach the same to the
   6-17  manufactured home in question.  The collector may add the cost
   6-18  charged by the Texas Department of Licensing and Regulation for
   6-19  applying for a state seal number to the owner's taxes or recover
   6-20  the same as costs of court or costs of sale in a tax collection
   6-21  action.  A notice of tax lien filed by a collector utilizing a
   6-22  serial number, Department of Housing and Urban Development label
   6-23  number, previously issued state seal number, or state seal number
   6-24  issued on the application of the collector, shall be recorded by
   6-25  the Texas Department of Licensing and Regulation not withstanding
    7-1  whether that department had any prior record of that manufactured
    7-2  home.
    7-3        SECTION 9.  Texas Tax Code Section 32.03(b) is amended to
    7-4  hereafter read as Code Section 32.03(b) is amended to hereafter
    7-5  read as follows:
    7-6        (b)  If a manufactured home information report is filed with
    7-7  the appropriate appraisal district pursuant to Section 32.015(b) of
    7-8  this Code, then neither  a <A> bona fide purchaser for value <nor or>
    7-9  the holder of a lien recorded on the manufactured home document of
   7-10  title is not required to pay any taxes, penalties, or interest to
   7-11  any taxing jurisdiction restricted by the manufactured home
   7-12  information report except for those years for which a valid tax
   7-13  lien has been duly filed and recorded pursuant to the provisions of
   7-14  Section 32.015 of this Code and except for those years for which an
   7-15  transferee of a manufactured home is on constructive notice of
   7-16  taxes pursuant to Section 32.015(d) of this Code.  A "manufactured
   7-17  home" has the meaning set forth in Section 32.015(g) of this Code.
   7-18        SECTION 10.  Texas Tax Code Section 33.48(a) shall be amended
   7-19  to add sub-subsection (6) thereto to read as follows:
   7-20              (6)  the fee charged by the Texas Department of
   7-21  Licensing and Regulation for the collector of taxes applying for a
   7-22  state seal number on a manufactured home.
   7-23        SECTION 11.  This Act takes effect September 1, 1995
   7-24        SECTION 12.  The importance of this legislation and the
   7-25  crowded condition of the calendars in both houses create an
    8-1  emergency and an imperative public necessity that the
    8-2  constitutional rule requiring bills to be read on three several
    8-3  days in each house by suspended, and this rule is hereby suspended.