By Seidlits                                            H.B. No. 785
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the regulation and characterization of manufactured
    1-3  housing.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 7A, Texas Manufactured Housing Standards
    1-6  Act (Article 5221f, Vernon's Texas Civil Statutes), is amended to
    1-7  read as follows:
    1-8        Sec. 7A.  CONTINUING EDUCATION PROGRAMS. (a) The commissioner
    1-9  may recognize, prepare, or administer continuing education programs
   1-10  for persons regulated under this Act.
   1-11        (b)  The commissioner may require participation
   1-12  <Participation> in a continuing education program under Subsection
   1-13  (a) of this section for renewal of a registration under this Act
   1-14  <the programs is voluntary>.  If the commissioner elects to require
   1-15  participation in a continuing education program, the commissioner
   1-16  shall publish notice and conduct a public hearing in the manner
   1-17  required under Chapter 2001, Government Code, and the continuing
   1-18  education requirement may not take effect before the 30th day after
   1-19  the date on which the public hearing is held.
   1-20        SECTION 2.  Section 9(c), Texas Manufactured Housing
   1-21  Standards Act (Article 5221f, Vernon's Texas Civil Statutes), is
   1-22  amended to read as follows:
   1-23        (c)  The commissioner shall adopt rules and regulations,
   1-24  promulgate administrative orders, and take all actions necessary to
    2-1  comply with the provisions of the National Manufactured Home
    2-2  Construction and Safety Standards Act of 1974 and to provide for
    2-3  the effective enforcement of all HUD-code manufactured home
    2-4  construction and safety standards in order to have its state plan
    2-5  approved by the secretary of the United States Department of
    2-6  Housing and Urban Development.  The state plan may <must> provide
    2-7  for the use of <that a manufacturer may, at its option, choose a>
    2-8  third-party inspection agencies which are <agency that is> approved
    2-9  by <the commission and authorized by> the Department of Housing and
   2-10  Urban Development <to act as the In Plant Inspection Agency.
   2-11  However, the manufacturer may not change from one third-party In
   2-12  Plant Inspection Agency to another without the approval of the
   2-13  commission>.
   2-14        SECTION 3.  Section 19(i), Texas Manufactured Housing
   2-15  Standards Act (Article 5221f, Vernon's Texas Civil Statutes), is
   2-16  amended to read as follows:
   2-17        (i)  A lien on the manufactured homes in the inventory is
   2-18  perfected by filing a security agreement with the department in a
   2-19  form that contains the information the commissioner requires.  Once
   2-20  perfected, the lien applies to the manufactured homes in the
   2-21  inventory as well as to any proceeds of any sale of such homes.
   2-22  Failure to pay or satisfy any inventory lien filed and recorded
   2-23  against a manufactured home pursuant to the terms of the security
   2-24  agreement by the retailer is sufficient cause to revoke or suspend
   2-25  the retailer's registration with the commissioner.
   2-26        SECTION 4.  Subsection (j), Section 19, Texas Manufactured
   2-27  Housing Standards Act (Article 5221f, Vernon's Texas Civil
    3-1  Statutes), is amended to read as follows:
    3-2        (j)  If a manufactured home is permanently affixed to real
    3-3  estate <by installation on a permanent foundation, as defined by
    3-4  the department>, the manufacturer's certificate or the original
    3-5  document of title may be surrendered to the department for
    3-6  cancellation.  The legal description or the appropriate tract or
    3-7  parcel number <address and location> of the real estate must be
    3-8  given to the department when the certificate or document of title
    3-9  is surrendered.  The commissioner may require the filing of other
   3-10  information.  The commissioner may not cancel a manufacturer's
   3-11  certificate or a document of title if a lien has been registered or
   3-12  recorded on the manufactured home.  If a lien has been registered
   3-13  or recorded, the commissioner shall notify the owner and each
   3-14  lienholder that the title and a description of the lien have been
   3-15  surrendered to the department and that the commissioner will not
   3-16  cancel the title until the lien is released.  Permanent attachment
   3-17  to real estate does not affect the validity of a lien recorded or
   3-18  registered with the department before the manufactured home is
   3-19  permanently attached.  The rights of a prior lienholder pursuant to
   3-20  a security agreement or the provisions of a credit transaction and
   3-21  the rights of the state pursuant to a tax lien are preserved.  The
   3-22  department shall issue a certificate of attachment to real estate
   3-23  to the person surrendering the manufacturer's certificate or
   3-24  document of title which shall contain the legal description or the
   3-25  appropriate tract or parcel number of the real estate and the
   3-26  identification of the home and which shall certify that the
   3-27  manufacturer's certificate or original document of title has been
    4-1  canceled.
    4-2        SECTION 5.  Title 1, Property Code, is amended by adding
    4-3  Chapter 2 to read as follows:
    4-4                    CHAPTER 2.  NATURE OF PROPERTY
    4-5        Sec. 2.001.  MANUFACTURED HOUSING.  (a)  Except as provided
    4-6  by Subsection (b), a manufactured home is personal property.
    4-7        (b)  A manufactured home becomes and is real property if:
    4-8              (1)  the home is permanently affixed to real property;
    4-9  and
   4-10              (2)  the manufacturer's certificate of origin or the
   4-11  original document of title is surrendered for cancellation and a
   4-12  certificate of attachment is filed in the real property records of
   4-13  the county in which the home is affixed to real estate pursuant to
   4-14  the provisions of the Texas Manufactured Housing Standards Act
   4-15  (Article 5221f, Vernon's Texas Civil Statutes).
   4-16        (c)  In this section, "manufactured home" has the meaning
   4-17  assigned by the Texas Manufactured Housing Standards Act (Article
   4-18  5221f, Vernon's Texas Civil Statutes).
   4-19        (d)  This section shall not affect nor change the
   4-20  classification of a manufactured home as personal or real property
   4-21  if the manufactured home was permanently affixed to real estate
   4-22  prior to January 1, 1996.
   4-23        SECTION 6.  The importance of this legislation and the
   4-24  crowded condition of the calendars in both houses create an
   4-25  emergency and an imperative public necessity that the
   4-26  constitutional rule requiring bills to be read on three several
   4-27  days in each house be suspended, and this rule is hereby suspended,
    5-1  and that this Act take effect and be in force from and after its
    5-2  passage, and it is so enacted.