1-1 AN ACT
1-2 relating to the regulation of manufactured housing; providing
1-3 penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 3, 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. 3. DEFINITIONS. Whenever used in this Act, unless the
1-9 context otherwise requires, the following words and terms have the
1-10 following meanings:
1-11 (1) "Advertising" or "advertisement" means any
1-12 commercial message which promotes the sale, exchange, or
1-13 lease-purchase of manufactured homes and which appears in, or is
1-14 presented on, radio, television, a public-address system,
1-15 newspapers, magazines, leaflets, flyers, catalogs, direct mail
1-16 literature, other printed material, an inside or outside sign or
1-17 window display, or in point-of-sale literature or price tags.
1-18 Materials which are educational or that may be required by law do
1-19 not constitute advertising. Any advertisement relating to
1-20 manufactured housing shall be considered as an offer to sell,
1-21 exchange, or lease-purchase to consumers.
1-22 (2) "Alteration" means the replacement, addition, and
1-23 modification or removal of any equipment or its installation in a
1-24 new manufactured home after sale by a manufacturer to a retailer
2-1 but prior to sale and installation by a retailer to a purchaser
2-2 which may affect the construction, fire safety, occupancy,
2-3 plumbing, heat-producing or electrical system. It includes any
2-4 modification made in the manufactured home which may affect the
2-5 compliance of the home with the standards, but it does not include
2-6 the repair or replacement of a component or appliance requiring
2-7 plug-in to an electrical receptacle where the replaced item is of
2-8 the same configuration and rating as the one being replaced. It
2-9 also does not include the addition of an appliance requiring
2-10 plug-in to an electrical receptacle, which appliance was not
2-11 provided with the manufactured home by the manufacturer, if the
2-12 rating of the appliance does not exceed the rating of the
2-13 receptacle to which it is connected.
2-14 (3) "Board" means the governing board of the
2-15 department.
2-16 (4) "Broker" means a person engaged by one or more
2-17 other persons to negotiate or offer to negotiate bargains or
2-18 contracts for the sale, exchange, or lease-purchase of a
2-19 manufactured home to which a certificate or document of title has
2-20 been issued and is outstanding. A broker may or may not be an
2-21 agent of any party involved in the transaction. A person who
2-22 maintains a location for the display of manufactured homes is not a
2-23 broker but is a retailer. The term shall not apply if the
2-24 manufactured home is affixed to a permanent foundation, the
2-25 manufacturer's certificate or the document of title is canceled,
2-26 and the home is offered as real estate; however, the provisions of
2-27 The Real Estate License Act (Article 6573a, Vernon's Texas Civil
3-1 Statutes) shall apply.
3-2 (5) "Code" means the Texas Manufactured Housing
3-3 Standards Code.
3-4 (6) "Consumer" means any person other than one
3-5 registered under this Act that seeks or acquires by purchase,
3-6 exchange, or lease-purchase a manufactured home.
3-7 (7) "Department" means the Texas Department of Housing
3-8 and Community Affairs.
3-9 (8) "Director" means the executive director of the
3-10 department.
3-11 (9) "HUD-code manufactured home" means a structure
3-12 constructed on or after June 15, 1976, according to the rules of
3-13 the United State Department of Housing and Urban Development,
3-14 transportable in one or more sections, which, in the traveling
3-15 mode, is eight body feet or more in width or 40 body feet or more
3-16 in length, or, when erected on site, is 320 or more square feet,
3-17 and which is built on a permanent chassis and designed to be used
3-18 as a dwelling with or without a permanent foundation when connected
3-19 to the required utilities, and includes the plumbing, heating,
3-20 air-conditioning, and electrical systems. The term does not
3-21 include a recreational vehicle as that term is defined by 24 C.F.R.
3-22 Section 3282.8(g).
3-23 (10) "Installation," when used in reference to
3-24 manufactured housing, means the construction of the foundation
3-25 systems, whether temporary or permanent, and the placement and
3-26 erection of a manufactured home or manufactured home components on
3-27 the foundation system and includes supporting, blocking, leveling,
4-1 securing, anchoring, and proper connection of multiple or
4-2 expandable sections or components, and minor adjustments.
4-3 (11) "Installer" means any person, including a
4-4 retailer or manufacturer, that contracts to perform or performs
4-5 installation functions on manufactured housing.
4-6 (12) "Label" means a device or insignia issued by the
4-7 director to indicate compliance with the standards, rules, and
4-8 regulations established by the United States Department of Housing
4-9 and Urban Development, and is permanently affixed to each
4-10 transportable section of each HUD-code manufactured home
4-11 constructed after June 15, 1976, for sale to a consumer.
4-12 (13) "Lease-purchase" means to enter into a lease
4-13 contract with a provision conferring on the lessee an option to
4-14 purchase the manufactured home.
4-15 (14) "License holder" means a person that holds a
4-16 license issued by the department as a manufactured housing
4-17 manufacturer, retailer, broker, rebuilder, salesperson, or
4-18 installer.
4-19 (15) "Manufactured housing" or "Manufactured home"
4-20 means a HUD-code manufactured home or a mobile home and
4-21 collectively means and refers to both.
4-22 (16) "Manufacturer" means a person that constructs or
4-23 assembles manufactured housing for sale, exchange, or
4-24 lease-purchase within the state.
4-25 (17) "Mobile home" means a structure that was
4-26 constructed before June 15, 1976, transportable in one or more
4-27 sections, which, in the traveling mode, is eight body feet or more
5-1 in width or 40 body feet or more in length, or, when erected on
5-2 site, is 320 or more square feet, and which is built on a permanent
5-3 chassis and designed to be used as a dwelling with or without a
5-4 permanent foundation when connected to the required utilities and
5-5 includes the plumbing, heating, air-conditioning, and electrical
5-6 systems.
5-7 (18) "Person" means an individual, partnership,
5-8 company, corporation, association, or other group, however
5-9 organized.
5-10 (19) "Retailer" means a person engaged in the business
5-11 of buying for resale, selling, or exchanging manufactured homes or
5-12 offering such for sale, exchange, or lease-purchase to consumers.
5-13 A person is not considered a retailer unless the person is engaged
5-14 in the sale, exchange, or lease-purchase of two or more
5-15 manufactured homes to consumers in any consecutive 12-month period.
5-16 (20) "Salesperson" means a person who for any form of
5-17 compensation sells or lease-purchases or offers to sell or
5-18 lease-purchase manufactured housing to consumers as an employee or
5-19 agent of a retailer or broker.
5-20 (21) "Seal" means a device or insignia issued by the
5-21 director to be affixed to used manufactured homes for titling
5-22 purposes, as required by the director. The seal shall remain the
5-23 property of the department. ["Mobile home" means a structure that
5-24 was constructed before June 15, 1976, transportable in one or more
5-25 sections, which, in the traveling mode, is eight body feet or more
5-26 in width or 40 body feet or more in length, or, when erected on
5-27 site, is 320 or more square feet, and which is built on a permanent
6-1 chassis and designed to be used as a dwelling with or without a
6-2 permanent foundation when connected to the required utilities, and
6-3 includes the plumbing, heating, air-conditioning, and electrical
6-4 systems.]
6-5 [(2) "Retailer" means any person engaged in the
6-6 business of buying for resale, selling, or exchanging manufactured
6-7 homes or offering such for sale, exchange, or lease-purchase to
6-8 consumers. No person shall be considered a retailer unless engaged
6-9 in the sale, exchange, or lease-purchase of two or more
6-10 manufactured homes to consumers in any consecutive 12-month period.]
6-11 [(3) "Manufacturer" means any person who constructs or
6-12 assembles manufactured housing for sale, exchange, or
6-13 lease-purchase within the state.]
6-14 [(4) "Department" means the Texas Department of
6-15 Housing and Community Affairs.]
6-16 [(5) "Person" means an individual, partnership,
6-17 company, corporation, association, or other group, however
6-18 organized.]
6-19 [(6) "Broker" means a person engaged by one or more
6-20 other persons to negotiate or offer to negotiate bargains or
6-21 contracts for the sale, exchange, or lease-purchase of a
6-22 manufactured home to which a certificate or document of title has
6-23 been issued and is outstanding. A broker may or may not be an
6-24 agent of any party involved in the transaction. A person who
6-25 maintains a location for the display of manufactured homes is not a
6-26 broker but is a retailer. The term shall not apply if the
6-27 manufactured home is affixed to a permanent foundation, the
7-1 manufacturer's certificate or the document of title is canceled,
7-2 and the home is offered as real estate; however, the provisions of
7-3 The Real Estate License Act (Article 6573a, Vernon's Texas Civil
7-4 Statutes) shall apply.]
7-5 [(7) "Consumer" means any person other than one
7-6 registered under this article who seeks or acquires by purchase,
7-7 exchange, or lease-purchase a manufactured home.]
7-8 [(8) "Seal" means a device or insignia issued by the
7-9 director to be affixed to used manufactured homes for titling
7-10 purposes, as required by the director. The seal shall remain the
7-11 property of the department.]
7-12 [(9) "Label" means a device or insignia issued by the
7-13 director to indicate compliance with the standards, rules, and
7-14 regulations established by the Department of Housing and Urban
7-15 Development, and is permanently affixed to each transportable
7-16 section of each HUD-code manufactured home constructed after
7-17 June 15, 1976, for sale to a consumer.]
7-18 [(10) "Installation," when used in reference to
7-19 manufactured housing, means the transporting of manufactured homes
7-20 or manufactured home components to the place where they will be
7-21 used by the consumer, the construction of the foundation system,
7-22 whether temporary or permanent, and the placement and erection of a
7-23 manufactured home or manufactured home components on the foundation
7-24 system, and includes supporting, blocking, leveling, securing,
7-25 anchoring, and proper connection of multiple or expandable sections
7-26 or components, the installation of air conditioning, and minor
7-27 adjustments.]
8-1 [(11) "Installer" means any person, including a
8-2 retailer or manufacturer, who performs installation functions on
8-3 manufactured housing.]
8-4 [(12) "Alteration" means the replacement, addition,
8-5 and modification, or removal of any equipment or its installation
8-6 in a new manufactured home after sale by a manufacturer to a
8-7 retailer but prior to sale and installation by a retailer to a
8-8 purchaser which may affect the construction, fire safety,
8-9 occupancy, plumbing, heat-producing or electrical system. It
8-10 includes any modification made in the manufactured home which may
8-11 affect the compliance of the home with the standards, but it does
8-12 not include the repair or replacement of a component or appliance
8-13 requiring plug-in to an electrical receptacle where the replaced
8-14 item is of the same configuration and rating as the one being
8-15 replaced. It also does not include the addition of an appliance
8-16 requiring "plug-in" to an electrical receptacle, which appliance
8-17 was not provided with the manufactured home by the manufacturer, if
8-18 the rating of the appliance does not exceed the rating of the
8-19 receptacle to which it is connected.]
8-20 [(13) "Lease-purchase" means to enter into a lease
8-21 contract with a provision conferring on the lessee an option to
8-22 purchase the manufactured home.]
8-23 [(14) "Director" means the executive director of the
8-24 department.]
8-25 [(15) "Code" means the Texas Manufactured Housing
8-26 Standards Code.]
8-27 [(16) "Salesperson" means any person who for any form
9-1 of compensation sells or lease-purchases or offers to sell or
9-2 lease-purchase manufactured housing to consumers as an employee or
9-3 agent of a retailer or broker.]
9-4 [(17) "Manufactured housing" or "manufactured home"
9-5 means a HUD-code manufactured home or a mobile home and
9-6 collectively means and refers to both.]
9-7 [(18) "Registrant" means any person who has registered
9-8 with the department and has been issued a certificate of
9-9 registration as a manufactured housing manufacturer, retailer,
9-10 broker, salesperson, or installer.]
9-11 [(19) "HUD-code manufactured home" means a structure,
9-12 constructed on or after June 15, 1976, according to the rules of
9-13 the United States Department of Housing and Urban Development,
9-14 transportable in one or more sections, which, in the traveling
9-15 mode, is eight body feet or more in width or 40 body feet or more
9-16 in length, or, when erected on site, is 320 or more square feet,
9-17 and which is built on a permanent chassis and designed to be used
9-18 as a dwelling with or without a permanent foundation when connected
9-19 to the required utilities, and includes the plumbing, heating,
9-20 air-conditioning, and electrical systems. The term does not
9-21 include a recreational vehicle as that term is defined by 24 C.F.R.
9-22 Section 3282.8(g).]
9-23 [(20) "Advertising" or "advertisement" means any
9-24 commercial message which promotes the sale, exchange, or
9-25 lease-purchase of manufactured homes and which appears in, or is
9-26 presented on, radio, television, a public-address system,
9-27 newspapers, magazines, leaflets, flyers, catalogs, direct mail
10-1 literature, other printed material, an inside or outside sign or
10-2 window display, or in point-of-sale literature or price tags.
10-3 Materials which are educational or that may be required by law do
10-4 not constitute advertising. Any advertisement relating to
10-5 manufactured housing shall be considered as an offer to sell,
10-6 exchange, or lease-purchase to consumers.]
10-7 [(21) "Board" means the governing board of the
10-8 department.]
10-9 SECTION 2. Section 3A, Texas Manufactured Housing Standards
10-10 Act (Article 5221f, Vernon's Texas Civil Statutes), is amended to
10-11 read as follows:
10-12 Sec. 3A. DEFINITIONS BINDING. The definitions of "mobile
10-13 home," "HUD-code manufactured home," and "manufactured housing" set
10-14 forth in Section 3 of this Act [article] are binding on all persons
10-15 and agencies in this state as a matter of law including local
10-16 political subdivisions and home-rule cities. A mobile home is not
10-17 a HUD-code manufactured home and a HUD-code manufactured home is
10-18 not a mobile home for any purpose under the laws of this state.
10-19 These terms shall not be defined in any manner which is not
10-20 identical to the definitions set forth in Section 3 of this Act.
10-21 SECTION 3. Subsections (f), (g), (h), and (i), Section 4,
10-22 Texas Manufactured Housing Standards Act (Article 5221f, Vernon's
10-23 Texas Civil Statutes), are amended to read as follows:
10-24 (f) All manufactured housing must be installed in compliance
10-25 with the standards, rules, regulations, or administrative orders of
10-26 the director. The department shall establish an inspection program
10-27 whereby at least 25 percent of the manufactured homes installed are
11-1 inspected on a sample basis for compliance. The department's
11-2 program shall place priority on multi-section homes and homes
11-3 installed in Wind Zone II.
11-4 (g) A local governmental unit of this state, without the
11-5 express approval of the board following a hearing on the matter,
11-6 may not adopt different standards from those promulgated by the
11-7 director for the construction or installation of manufactured
11-8 housing within the local governmental unit. The local governmental
11-9 unit must demonstrate that the public health and safety require the
11-10 different standards.
11-11 (h) Before the adoption or promulgation of any standards or
11-12 requirements authorized by this section, any change in or addition
11-13 to the standards authorized in this section, or the approval of
11-14 different standards by any local governmental unit, the director
11-15 shall publish a notice and conduct a public hearing under Section 9
11-16 of this Act [in accordance with Chapter 2001, Government Code, not
11-17 sooner than the 30th day following the publication of notice].
11-18 (i) Every requirement or standard or modification,
11-19 amendment, or repeal of a requirement or standard adopted by the
11-20 director shall state the date it shall take effect as provided by
11-21 Section 9 of this Act.
11-22 SECTION 4. Section 6, Texas Manufactured Housing Standards
11-23 Act (Article 5221f, Vernon's Texas Civil Statutes), is amended by
11-24 amending Subsections (e), (f), (g), and (h) and adding Subsection
11-25 (l) to read as follows:
11-26 (e) It is unlawful for a manufacturer to sell, exchange, or
11-27 lease-purchase or offer to sell, exchange, or lease-purchase a
12-1 manufactured home to any person in the state other than a licensed
12-2 [registered] retailer.
12-3 (f) A person may not make any announcement concerning the
12-4 sale, exchange, or lease-purchase of, nor offer to sell, exchange,
12-5 or lease-purchase, a manufactured home to consumers in this state
12-6 through any form of advertising unless such person is a duly
12-7 licensed [registered] manufacturer, retailer, or broker. This
12-8 prohibition against advertising shall not apply to a person to whom
12-9 a certificate or document of title has been issued showing such
12-10 person to be the owner of the home, provided that such person does
12-11 not offer to sell, exchange, or lease-purchase two or more
12-12 manufactured homes in any consecutive 12-month period. This
12-13 prohibition also shall not apply to the advertising of real estate
12-14 on which a manufactured home has been permanently attached and
12-15 affixed.
12-16 (g) It is unlawful for a retailer to purchase for resale to
12-17 a consumer, or to sell, exchange, or lease-purchase or offer to
12-18 sell, exchange, or lease-purchase, any new HUD-code manufactured
12-19 home which was constructed by a manufacturer which was not licensed
12-20 [registered] with the department at the time of construction.
12-21 (h) It is unlawful for a person to sell, convey, or
12-22 otherwise transfer to a consumer in this state a salvaged
12-23 manufactured home as such term is defined in Section 8 of this Act
12-24 [article]. A salvaged manufactured home may only be sold to a
12-25 licensed [registered] retailer or licensed [registered] rebuilder.
12-26 (l) It is unlawful for a salesperson to aid or assist a
12-27 consumer in preparing or providing false or misleading information
13-1 on a document related to the purchase or financing of a
13-2 manufactured home or for a salesperson to submit information known
13-3 to be false or misleading to a retailer or to a credit underwriter.
13-4 SECTION 5. Texas Manufactured Housing Standards Act (Article
13-5 5221f, Vernon's Texas Civil Statutes) is amended by adding Section
13-6 6B to read as follows:
13-7 Sec. 6B. WIND ZONE REGULATIONS. (a) Aransas, Brazoria,
13-8 Calhoun, Cameron, Chambers, Galveston, Jefferson, Kenedy, Kleberg,
13-9 Matagorda, Nueces, Orange, Refugio, San Patricio, and Willacy
13-10 counties are in Wind Zone II. All other counties are in Wind Zone
13-11 I.
13-12 (b) A manufactured home constructed on or after the
13-13 effective date of this section must meet the Wind Zone II standards
13-14 adopted by the United States Department of Housing and
13-15 Urban Development in order to be installed in a Wind Zone II
13-16 county.
13-17 (c) All manufactured homes constructed prior to the
13-18 effective date of this section may be installed in Wind Zone I or
13-19 Wind Zone II without restriction.
13-20 (d) A consumer purchasing a manufactured home constructed on
13-21 or after the effective date of this section to Wind Zone I
13-22 standards must be given a notice by the selling retailer that:
13-23 (1) the home was not designed nor constructed to
13-24 withstand hurricane force winds which may occur in Wind Zone II or
13-25 III areas; and
13-26 (2) the home is not permitted to be installed in Wind
13-27 Zone II counties in Texas, and there may be restrictions in other
14-1 states prohibiting installation in Wind Zone II or III areas.
14-2 (e) The notice required by this section shall be given the
14-3 consumer prior to the execution of any mutually binding sales
14-4 agreement or retail installment sales contract.
14-5 SECTION 6. Section 7, Texas Manufactured Housing Standards
14-6 Act (Article 5221f, Vernon's Texas Civil Statutes), is amended to
14-7 read as follows:
14-8 Sec. 7. Registration. (a) A person may not construct or
14-9 assemble a new HUD-code manufactured home in the state or ship a
14-10 new HUD-code manufactured home into the state, unless the person is
14-11 licensed [registered] as a manufactured housing manufacturer with
14-12 the department and possesses a valid manufacturer's license
14-13 [certificate of registration] at the time the home is constructed
14-14 or assembled.
14-15 (b) Except as otherwise expressly provided in this Act
14-16 [article], a person may not sell, exchange, lease-purchase, or
14-17 offer to sell, exchange, or lease-purchase two or more manufactured
14-18 homes to consumers in the state in any consecutive 12-month period,
14-19 unless the person possesses a valid manufactured housing retailer's
14-20 license [certificate of registration].
14-21 (c) A person may not offer to negotiate or negotiate for
14-22 others a bargain or contract for the sale, exchange, or
14-23 lease-purchase of two or more manufactured homes to consumers in
14-24 the state in any 12-month period, unless the person possesses a
14-25 valid manufactured housing broker's license [certificate of
14-26 registration].
14-27 (d) A person may not perform any installation functions on
15-1 manufactured housing in the state, unless the person possesses a
15-2 valid installer's license [certificate of registration] and files
15-3 proof of insurance as required by the director. The director may
15-4 issue a temporary installer's license [certificate of registration]
15-5 to a homeowner for the installation of the owner's home in
15-6 accordance with applicable requirements, standards, and regulations
15-7 of the director, on application and payment of the required fee and
15-8 on submission of proof of insurance by the owner as required by the
15-9 department.
15-10 (e) Each applicant for a license [certificate of
15-11 registration] as a manufacturer, retailer, broker, rebuilder, or
15-12 installer must file with the director an application for a license
15-13 [registration] containing the following information:
15-14 (1) the legal name, address, and telephone number of
15-15 the applicant;
15-16 (2) the trade name by which the applicant does
15-17 business and, if incorporated, the name registered with the
15-18 secretary of state and the address of the business; and
15-19 (3) the dates on which the applicant became the owner
15-20 and operator of the business.
15-21 (f) Each application for a license [certificate of
15-22 registration] must be accompanied by proof of the security required
15-23 by this Act and payment of the required fee for the issuance of the
15-24 certificate.
15-25 (g) All licenses [certificates of registration] are valid
15-26 for one year and are renewable as provided by the director.
15-27 (h) [(i)] If a change occurs in the information filed with
16-1 the director under Subsection (e) of this section, the applicant
16-2 shall file an amendment to his or her application that states the
16-3 correct information.
16-4 (i) [(j)] While acting as an agent for a license holder
16-5 [registrant], an employee is covered by the business entity's
16-6 license [certificate of registration] and is not required to be
16-7 individually licensed [registered]. An independent contractor or
16-8 business entity may not operate under the license [certificate of
16-9 registration] of another business entity except as an agent or
16-10 subcontractor of a licensed [registered] installer who shall remain
16-11 fully responsible for all installation functions performed by such
16-12 agent as subcontractor except as provided in Subsection (l) [(m)]
16-13 of this section.
16-14 (j) [(k)] The director, after notice and hearing under
16-15 Section 9 of this Act, may refuse to issue or may permanently
16-16 revoke, or suspend for a definite period of time and for a
16-17 specified geographic area or sales location, any license
16-18 [certificate of registration] if the director finds that the
16-19 applicant or license holder [registrant]:
16-20 (1) knowingly and wilfully violated any provision of
16-21 this Act [article] or any rule, administrative order, or regulation
16-22 made pursuant to this Act;
16-23 (2) without lawful authorization retained or converted
16-24 any money, property, or any other thing of value from consumers in
16-25 the form of down payments, sales and use taxes, deposits, or
16-26 insurance premiums;
16-27 (3) failed to deliver proper title documents or
17-1 certificates of title to consumers;
17-2 (4) failed to give or breached any manufactured home
17-3 warranty required by this Act or by the Federal Trade Commission;
17-4 (5) engaged in any false, misleading, or deceptive
17-5 acts or practices as the term is set forth in and as those acts are
17-6 declared unlawful by the provisions of Chapter 17, Subchapter E,
17-7 Business & Commerce Code;
17-8 (6) failed to furnish or file any reports required by
17-9 the department for the administration and enforcement of this Act;
17-10 (7) furnished false information on any application,
17-11 report, or other document filed with the department;
17-12 (8) has a record of criminal convictions within the
17-13 five years preceding the date of the application that, in the
17-14 opinion of the director, renders the applicant unfit for licensing
17-15 [registration]; or
17-16 (9) failed to file the bond or post other security for
17-17 each location as required by Section 13 of this Act.
17-18 (k) [(l)] The director shall conduct any hearing involving
17-19 the denial, renewal, revocation or suspension of a license
17-20 [certificate of registration] in accordance with Chapter 2001,
17-21 Government Code.
17-22 (l) [(m)] A retailer or an installer may not contract with
17-23 any person for the installation of any air-conditioning equipment,
17-24 devices, or components in connection with the installation of a
17-25 manufactured home unless the person is [registered as an installer
17-26 with the department or is otherwise] licensed by the state as an
17-27 air-conditioning contractor. The regulation of air-conditioning
18-1 contractors is exclusively reserved to the Texas Department of
18-2 Licensing and Regulation [This subsection shall not apply to a new
18-3 manufactured home being installed on a permanent foundation within
18-4 a municipality which regulates air-conditioning contractors unless
18-5 some other state statute provides otherwise].
18-6 (m) [(n)] A person may not act as a salesperson of
18-7 manufactured housing unless the person is licensed [registered]
18-8 with the department. Each applicant for a salesperson's license
18-9 [certificate of registration] shall file with the director an
18-10 application giving such information as the director deems necessary
18-11 and pay the required fee. The owner of a sole proprietorship, a
18-12 partner in a partnership, or an officer of a corporation which is
18-13 duly licensed [registered] as a retailer or broker does not have to
18-14 apply for licensing [register] as a salesperson so long as such
18-15 individual is properly listed in the retailer's or broker's
18-16 application for license [registration]. The salesperson is the
18-17 agent of the retailer or broker. The license [registration] shall
18-18 be an annual license [registration]. A retailer or broker shall
18-19 not employ, retain, or otherwise use the services of a salesperson
18-20 who is not licensed [registered]. A licensed [registered]
18-21 salesperson may work or sell for one or more retailers, brokers, or
18-22 sales locations.
18-23 (n) [(o)] A person may not alter, repair, or otherwise
18-24 rebuild a salvaged manufactured home, as such term is defined in
18-25 Section 8 of this Act, unless the person is duly licensed
18-26 [registered] with the department as a manufactured home rebuilder
18-27 or retailer and unless the person complies with the rules and
19-1 regulations of the director relating to the rebuilding of salvaged
19-2 manufactured homes.
19-3 (o) [(p)] Any person not licensed or registered with the
19-4 department or a predecessor agency as of September 1, 1987, must
19-5 attend and complete twenty (20) hours of instruction in the law and
19-6 consumer protection regulations as a prerequisite for a license
19-7 [prior to any registration]. The instruction shall be given not
19-8 less than one time each quarter. No test shall be made a
19-9 prerequisite of licensing [registration], but actual attendance at
19-10 the instruction sessions is required. The director shall not issue
19-11 a license [registration] until the instruction is completed. This
19-12 subsection does not apply to a registrant making application to
19-13 license [register] additional business locations, to renew or
19-14 reinstate a license, or to make application for licensing
19-15 [register] as a salesperson. In lieu of this instruction
19-16 requirement, a manufacturer may request that a one-day, in-plant
19-17 training session be presented by an authorized representative of
19-18 the department. The manufacturer shall reimburse the department
19-19 for the actual costs of the training session.
19-20 (p) [(q)] Notwithstanding any provision of this Act to the
19-21 contrary, any state or national bank, state or federal savings and
19-22 loan association or federal savings bank, or state or federal
19-23 credit union engaged in the business of selling or offering for
19-24 sale, exchange, or lease-purchase manufactured homes that the
19-25 institution has acquired as a result of repossession of its
19-26 collateral is not required to attend any school or file any bond or
19-27 post other security in order to be licensed [registered] as a
20-1 retailer.
20-2 (q) [(r)] In lieu of the instruction requirements imposed
20-3 under Subsection (o) [(p)] of this section, the director may
20-4 recognize and approve a [one-day] training program for installers
20-5 that is conducted in the field by a private institution or other
20-6 person.
20-7 (r) A license shall be renewed if the renewal application
20-8 and payment of the annual fee are received by the department prior
20-9 to the date on which the license expires. The renewal license
20-10 expires on the first anniversary of the date the license was
20-11 renewed. If the department needs additional information for the
20-12 renewal application or verification of the continuing insurance or
20-13 bond coverage, the license holder shall have 20 days following the
20-14 receipt of notice from the department to furnish the requested
20-15 information or verification.
20-16 SECTION 7. Section 7A, Texas Manufactured Housing Standards
20-17 Act (Article 5221f, Vernon's Texas Civil Statutes), is amended to
20-18 read as follows:
20-19 Sec. 7A. [CONTINUING] EDUCATION PROGRAMS. The director may
20-20 recognize, prepare, or administer certification programs and
20-21 continuing education programs for persons regulated under this Act.
20-22 Participation in the programs is voluntary. The director shall
20-23 issue appropriate certificates to those persons who complete the
20-24 certification program or who participate in the continuing
20-25 education program.
20-26 SECTION 8. Subsections (d), (f), and (h), Section 8, Texas
20-27 Manufactured Housing Standards Act (Article 5221f, Vernon's Texas
21-1 Civil Statutes), are amended to read as follows:
21-2 (d) It is unlawful for a person to sell, exchange, or
21-3 lease-purchase a used manufactured home to any person without the
21-4 appropriate transfer of good and marketable title to the home
21-5 except when the sale, exchange, or lease-purchase is (1) to a
21-6 purchaser for the purchaser's business use, or (2) to a rebuilder
21-7 for the purpose of rebuilding a salvaged manufactured home. The
21-8 seller or transferor shall forward to the department properly
21-9 completed documents for the transfer of title within 30 days after
21-10 the date the transfer of ownership is effective or after the date
21-11 the seller or transferor obtains possession of the necessary
21-12 executed documents.
21-13 (f) A holder of a lien recorded on a manufactured home
21-14 document of title issued by the department who sells, exchanges, or
21-15 transfers by a lease-purchase a repossessed manufactured home
21-16 covered by such document of title is not required to comply with
21-17 the provisions of this Act, provided that the sale, exchange, or
21-18 transfer by a lease-purchase is (1) to or through a licensed
21-19 [registered] retailer, or (2) to a purchaser for the purchaser's
21-20 business use. If the sale, exchange, or lease-purchase is to a
21-21 purchaser for the purchaser's business use, the holder of the lien
21-22 shall surrender the title to the department for cancellation. If
21-23 the sale, exchange, or lease-purchase is to or through a licensed
21-24 [registered] retailer, the retailer is responsible and liable for
21-25 compliance with the provisions of this Act and all rules and
21-26 regulations of the department, and the holder of the lien shall not
21-27 be joined as a party in any litigation arising in connection with,
22-1 or relating to, the sale, exchange, or lease-purchase of the
22-2 repossessed manufactured home.
22-3 (h) Notwithstanding any provisions of this section to the
22-4 contrary, the director, following a written application by the
22-5 purchaser or transferee, may expressly authorize in writing a
22-6 licensed [registered] retailer to sell or exchange a used
22-7 manufactured home which is not or may not be habitable to or with
22-8 governmental housing agencies or authorities or to nonprofit
22-9 organizations providing housing for the homeless. As a part of the
22-10 application the purchaser or transferee must certify to the receipt
22-11 of a written notice that the home is not or may not be habitable.
22-12 The form of such written notice shall be prepared by the consumer
22-13 protection division of the attorney general's office and approved
22-14 by the director. The purchaser or transferee shall not occupy the
22-15 home or allow the home to be occupied as a residence or dwelling
22-16 until such time as any necessary repairs to make the home habitable
22-17 have been completed.
22-18 SECTION 9. Subsections (d), (e), (f), (g), and (m), Section
22-19 9, Texas Manufactured Housing Standards Act (Article 5221f,
22-20 Vernon's Texas Civil Statutes), are amended to read as follows:
22-21 (d) In this section "rule" means a standard, requirement,
22-22 regulation, order, and statement of general applicability that
22-23 implements, interprets, or prescribes law or policy or that
22-24 describes the procedures or practices of the department. Internal
22-25 management operating procedures that affect the private rights or
22-26 procedures of license holders or consumers, including requirements
22-27 for the use of a particular form, are also rules. An
23-1 administrative order that is not of general applicability but that
23-2 is directed to a specific license holder relating to warranties,
23-3 the correction of defects, or compliance with the law and
23-4 regulations is not a rule [At least 30 days before the adoption or
23-5 promulgation of any change in or addition to the rules and
23-6 regulations authorized in Subsections (b) and (c) of this section,
23-7 the director shall publish in the Texas Register a notice
23-8 including:]
23-9 [(1) a copy of the proposed changes and additions; and]
23-10 [(2) the time and place that the director will
23-11 consider any objections to the proposed changes and additions].
23-12 (e) All rules shall be promulgated and adopted in accordance
23-13 with Chapter 2001, Government Code, and with the provisions of this
23-14 section [After giving the notice required by Subsection (d) of this
23-15 section, the director shall afford interested persons an
23-16 opportunity to participate in the rule-making through submission of
23-17 written data, views, or arguments with the opportunity to present
23-18 the same orally on any matter].
23-19 (f) A proposed rule, amendment to a rule, or repeal of a
23-20 rule shall be published in the Texas Register not less than 30 days
23-21 prior to the date of a public hearing set to consider the testimony
23-22 of interested persons. Notice of the time and place of the public
23-23 hearing shall be published in the Texas Register not less than 30
23-24 days prior to the date of the hearing. The director shall also
23-25 afford interested persons the opportunity to participate in the
23-26 rulemaking process through the submission of written data and
23-27 statements of support or opposition [Every rule or regulation or
24-1 modification, amendment, or repeal of a rule or regulation adopted
24-2 by the director shall state the date it shall take effect].
24-3 (g) A rule, amendment to a rule, or repeal of a rule as
24-4 finally adopted shall be published in the Texas Register and
24-5 include a statement of the effective date. The effective date of a
24-6 rule relating to installation standards shall be not less than 60
24-7 days following the date of publication of notice that the rule has
24-8 been adopted. Any other rule is effective as provided by Chapter
24-9 2001, Government Code, or such later date as is published
24-10 [Immediately after their promulgation, the director shall publish
24-11 in the Texas Register all rules and regulations or amendments
24-12 thereto].
24-13 (m) In order to protect the public health, safety, and
24-14 welfare, and to assure the availability of low cost manufactured
24-15 housing for all consumers, the director shall establish rules and
24-16 regulations for the protection of the interests of consumers who
24-17 occupy or desire to purchase or install manufactured housing and
24-18 for the business conduct of those persons required to be licensed
24-19 [registered] under this Act.
24-20 SECTION 10. Subsections (c) and (d), Section 11, Texas
24-21 Manufactured Housing Standards Act (Article 5221f, Vernon's Texas
24-22 Civil Statutes), are amended to read as follows:
24-23 (c) The board shall set fees for the issuance and renewal of
24-24 manufacturers', retailers', brokers', salespersons', rebuilders',
24-25 and installers' licenses [certificates of registration]; and fees
24-26 for the issuance of rebuilder licenses [registrations].
24-27 (d) A fee shall be set and charged to each person attending
25-1 the course of instruction in the law and consumer protection
25-2 regulations for applicants for licenses [registration].
25-3 SECTION 11. Subsections (a), (f), (g), (h), and (i), Section
25-4 13, Texas Manufactured Housing Standards Act (Article 5221f,
25-5 Vernon's Texas Civil Statutes), are amended to read as follows:
25-6 (a) The department may not issue or renew a license
25-7 [certificate of registration] unless a surety bond or other
25-8 security in the form prescribed by the director is filed with the
25-9 department as provided by this section.
25-10 (f) A manufacturer shall be bonded or post other security in
25-11 the amount of $100,000. A retailer shall be bonded or post other
25-12 security in the amount of $50,000 [$30,000]. A broker shall be
25-13 bonded or post other security in the amount of $20,000. An
25-14 installer shall be bonded or post other security in the amount of
25-15 $10,000. A rebuilder shall be bonded or post other security in the
25-16 amount of $30,000. In order to assure the availability of prompt
25-17 and satisfactory warranty service, a manufacturer, which does not
25-18 have a licensed [registered] manufacturing plant or other facility
25-19 in this state from which warranty service and repairs can be
25-20 provided and made, shall be bonded or post other security in an
25-21 additional amount of $100,000. A retailer holding a valid license
25-22 [certificate of registration] shall not be required to be bonded or
25-23 file any security to secure a license [certificate of registration]
25-24 as a broker or an installer. A new bond shall not be required for
25-25 any change of ownership of a corporation licensed [registered] with
25-26 the department nor for any change of a location; however, a proper
25-27 endorsement of the original bond may be required by the director.
26-1 (g) The bonding company must provide written notification to
26-2 the director at least 60 days prior to the cancellation of a surety
26-3 bond required by this section. Any other security on file with the
26-4 department shall remain on file and be maintained for two years
26-5 after the person ceases business as a manufacturer, retailer,
26-6 broker, rebuilder, or installer or at such later time as the
26-7 director may determine that no claims exist against the security.
26-8 (h) If a bond is canceled, the license [certificate of
26-9 registration] is suspended on the effective date of cancellation.
26-10 If a surety files for liquidation or reorganization in bankruptcy
26-11 or is placed in receivership, the license holder [registrant] is
26-12 entitled to 60 days from the date notice of the filing or
26-13 receivership was received to obtain other security. If the
26-14 required face amount of any other security is impaired by the
26-15 payment of a claim, the license holder [registrant] is entitled to
26-16 60 days to restore the security to its required face value.
26-17 (i) Subject to the limitations in this section, the bond or
26-18 other security is liable for, and shall reimburse the recovery fund
26-19 under Section 13A of this Act, the amount of any claim paid out of
26-20 the fund by the director to a consumer that resulted from an act or
26-21 omission of the license holder [registrant] who filed the bond or
26-22 other security. Payment by the surety or from the other security
26-23 shall be made not later than the 30th day from the date of receipt
26-24 of notice from the director that a consumer claim has been paid.
26-25 If for any reason the surety or other security fails to make timely
26-26 payment of a claim to the fund, the attorney general shall file
26-27 suit for recovery of the amount due the fund. Venue for the suit
27-1 is in Travis County.
27-2 SECTION 12. Subsections (e), (f), (g), and (k), Section 13A,
27-3 Texas Manufactured Housing Standards Act (Article 5221f, Vernon's
27-4 Texas Civil Statutes), are amended to read as follows:
27-5 (e) Subject to the limitations of Section 13 of this Act and
27-6 of this section, the fund shall be used to compensate consumers who
27-7 sustain actual damages resulting from unsatisfied claims against a
27-8 manufacturer, retailer, broker, or installer licensed [registered]
27-9 with the department if the claims resulted from a violation of:
27-10 (1) this Act;
27-11 (2) a rule issued by the director;
27-12 (3) the National Manufactured Housing Construction and
27-13 Safety Standards Act;
27-14 (4) the rules and regulations of the United States
27-15 Department of Housing and Urban Development; or
27-16 (5) the Deceptive Trade Practices-Consumer Protection
27-17 Act, Section 17.41 et seq., Business & Commerce Code.
27-18 (f) The consumer must file a [verified] written complaint in
27-19 the form required by the director not later than the second
27-20 anniversary of the date of the alleged act or omission causing the
27-21 actual damages, or the second anniversary of the date the act or
27-22 omission is discovered or should reasonably have been discovered.
27-23 Failure to timely file the claim precludes recovery from the fund.
27-24 On receipt of a properly verified complaint, the department shall
27-25 notify the license holders [registrants] as appropriate and
27-26 investigate the claim to determine its validity and whether or not
27-27 the complaint can be resolved by remedial action of the license
28-1 holders [registrants]. If there is a dispute between the license
28-2 holders [registrants] as to responsibility for the complaint, or
28-3 between any license holder [registrant] and the consumer, the
28-4 department shall conduct an informal dispute resolution process,
28-5 including a home inspection if appropriate, for a resolution of the
28-6 disputes. If it is possible to secure the agreement of the
28-7 parties, the department shall prepare and file with the director a
28-8 written report of the agreement.
28-9 (g) During the informal dispute resolution process, the
28-10 department shall make a preliminary determination as to the
28-11 responsibility and liability of the manufacturer, retailer, and
28-12 installer for claims determined to be valid. The license holders
28-13 [registrants] shall be afforded an opportunity to comment on the
28-14 preliminary determination under consideration by the department
28-15 before the department makes a final determination. If a license
28-16 holder [registrant] is out of business, is no longer licensed
28-17 [registered], or has filed for liquidation or reorganization in
28-18 bankruptcy, the department shall notify the license holder's
28-19 [registrant's] surety and give the license holder's [registrant's]
28-20 surety an opportunity to participate in the informal dispute
28-21 resolution process. If a license holder [registrant] or the
28-22 license holder's [registrant's] surety fails or refuses to
28-23 participate in the informal dispute resolution process after
28-24 receiving notice of the claim, the license holder [registrant] and
28-25 the license holder's [registrant's] surety are bound by the
28-26 department's final determination of responsibility and liability,
28-27 and the department may suspend or revoke the license holder's
29-1 license [registrant's certificate of registration].
29-2 (k) The provisions of this section do not apply to, and a
29-3 consumer shall not recover against the fund as a result of, any
29-4 claim against a license holder [registrant] resulting from a cause
29-5 of action directly related to the sale, lease-purchase, exchange,
29-6 brokerage or installation of a manufactured home prior to September
29-7 1, 1987.
29-8 SECTION 13. Section 14, Texas Manufactured Housing Standards
29-9 Act (Article 5221f, Vernon's Texas Civil Statutes), is amended by
29-10 amending Subsections (f) and (k) and adding Subsection (n) to read
29-11 as follows:
29-12 (f) If the manufacturer or retailer fails to provide
29-13 warranty service within the reasonable time allowed by the rules of
29-14 the director, the manufacturer or retailer must show good cause in
29-15 writing why such service was not provided. Failure to show good
29-16 cause constitutes sufficient basis for suspension or revocation of
29-17 the license [registration].
29-18 (k) If the manufacturer or retailer, or both, fails or
29-19 refuses to provide the warranty service in accordance with the
29-20 orders of the department following a home inspection, the director
29-21 shall set a hearing at which the manufacturer or retailer, or both,
29-22 shall show cause why the license [registration] should not be
29-23 suspended or revoked. If, following the hearing, the director
29-24 finds that the prior warranty service orders were correct, the
29-25 failure or refusal of the manufacturer or retailer to comply with
29-26 the orders is sufficient cause for the suspension or revocation of
29-27 the license [registration]. If the director finds that the prior
30-1 warranty service orders were incorrect in the determination of the
30-2 respective responsibilities of the manufacturer, retailer, or both,
30-3 the director shall enter a final order setting forth the correct
30-4 responsibilities and the right of either the manufacturer or
30-5 retailer to indemnification from the other. The director may also
30-6 enter an order directing the manufacturer or retailer whose license
30-7 [registration] is not revoked, or who is not out of business, to
30-8 perform the warranty service responsibilities of the retailer or
30-9 manufacturer whose license [registration] is revoked, or who is out
30-10 of business, by giving the manufacturer or retailer performing such
30-11 warranty service the right of indemnity against the other. The
30-12 manufacturer or retailer entitled to indemnification by virtue of
30-13 an order of the director pursuant to this subsection is a
30-14 "consumer" for purposes of Sections 13 and 13A of this Act and may
30-15 recover its actual damages and attorney's fees from the
30-16 manufactured homeowners' recovery fund.
30-17 (n) When a new HUD-code manufactured home is permanently
30-18 affixed to real estate, the manufacturer's certificate of origin is
30-19 canceled, and a certificate of attachment is filed in the deed
30-20 records of the county, the seller of the real estate may give the
30-21 initial purchaser a written warranty that combines the
30-22 manufacturer's warranty and the retailer's warranty required in
30-23 this section. If a combination warranty is given, the manufacturer
30-24 and retailer are not required to give separate written warranties;
30-25 however, the manufacturer and retailer are jointly liable with the
30-26 seller of the real estate to the purchaser for the performance of
30-27 their respective warranty responsibilities.
31-1 SECTION 14. Subsection (b), Section 17, Texas Manufactured
31-2 Housing Standards Act (Article 5221f, Vernon's Texas Civil
31-3 Statutes), is amended to read as follows:
31-4 (b) In addition to the injunctive relief set forth in
31-5 Section 18 of this Act, a person who fails to obtain or maintain a
31-6 license [registration] as required by this Act may be assessed a
31-7 civil penalty by the director payable to the state in an amount not
31-8 to exceed $10,000 for each violation of this Act in addition to the
31-9 reasonable attorney's fees, court costs, witness fees,
31-10 investigative costs, and deposition expenses.
31-11 SECTION 15. Subsections (d), (f), and (g), Section 18, Texas
31-12 Manufactured Housing Standards Act (Article 5221f, Vernon's Texas
31-13 Civil Statutes), are amended to read as follows:
31-14 (d) If a retailer, broker, or installer does not possess a
31-15 valid license [certificate of registration] at the time of entering
31-16 into any contract with a consumer, the contract between the
31-17 consumer and the retailer, broker, or installer is voidable within
31-18 two years from the date of the purchase of the manufactured home at
31-19 the option of the consumer. A consumer's contract for the
31-20 purchase, exchange, or lease-purchase of a new manufactured home is
31-21 also voidable within two years from the date of the purchase of the
31-22 manufactured home, if the retailer purchased the home from an
31-23 unlicensed [unregistered] manufacturer in violation of Section 6,
31-24 Subsection (h) of this Act.
31-25 (f) Notwithstanding any provisions of any other statute,
31-26 regulation, or ordinance to the contrary, a licensed [registered]
31-27 retailer or licensed [registered] installer is not required to
32-1 secure any permit, certificate, or license or pay any fee for the
32-2 transportation of manufactured housing to the place where it is to
32-3 be installed except as required by the department or by the Texas
32-4 Department of Transportation pursuant to Subchapter E, Chapter 623,
32-5 Transportation Code. The department shall cooperate with the Texas
32-6 Department of Transportation by providing current lists of licensed
32-7 [registered] manufactured housing manufacturers, retailers, and
32-8 installers.
32-9 (g) A local governmental unit or home-rule city may not
32-10 require any permit, fee, bond, or insurance for the installation of
32-11 manufactured housing by a licensed [registered] retailer or
32-12 installer except as may be approved by the department.
32-13 SECTION 16. Subsection (k), Section 19, Texas Manufactured
32-14 Housing Standards Act (Article 5221f, Vernon's Texas Civil
32-15 Statutes), is amended to read as follows:
32-16 (k) A lien on the manufactured homes in the inventory is
32-17 perfected by filing a security agreement with the department in a
32-18 form that contains the information the director requires. Once
32-19 perfected, the lien applies to the manufactured homes in the
32-20 inventory as well as to any proceeds of the sale of those homes.
32-21 Failure to pay or satisfy any inventory lien filed and recorded
32-22 against a manufactured home pursuant to the terms of the security
32-23 agreement by the retailer is sufficient cause to revoke or suspend
32-24 the retailer's license [registration] with the department.
32-25 SECTION 17. Subsection (8), Section 3, Chapter 6A, Title 79,
32-26 Revised Statutes (Article 5069-6A.03, Vernon's Texas Civil
32-27 Statutes), is amended to read as follows:
33-1 (8) In a transaction not involving real estate, no
33-2 documentary fee for the preparation of credit documents shall be
33-3 charged to the consumer and the only items [fees] which can be
33-4 charged to the consumer are those fees and taxes actually paid by
33-5 the creditor as required by law or regulation and those paid [or]
33-6 on behalf of the consumer to any governmental entity or agency as a
33-7 result of or in relation to the credit transaction.
33-8 SECTION 18. Subsection (f), Section 6, Air Conditioning and
33-9 Refrigeration Contractor License Law (Article 8861, Vernon's Texas
33-10 Civil Statutes), is amended to read as follows:
33-11 (f) This article does not apply to a person or firm that is
33-12 licensed [registered] as a manufacturer, retailer, rebuilder, or
33-13 installer and regulated pursuant to the Texas Manufactured Housing
33-14 Standards Act (Article 5221f, Vernon's Texas Civil Statutes) and
33-15 that engages exclusively in air conditioning and refrigeration
33-16 contracting for manufactured homes provided that the installation
33-17 of air conditioning components at the site where the home will be
33-18 occupied is performed by a person licensed under this Act [in the
33-19 installation of manufactured homes or in providing retailer or
33-20 manufacturer warranty services free of charge].
33-21 SECTION 19. Section 623.093, Transportation Code, is amended
33-22 to read as follows:
33-23 Sec. 623.093. Contents of Application and Permit. (a) The
33-24 application for a permit and the permit must be in the form
33-25 prescribed by the department. The permit must show:
33-26 (1) the length, width, and height of the manufactured
33-27 house and the towing vehicle in combination; and
34-1 (2) the route for the transportation of the
34-2 manufactured house.
34-3 (b) The length of the manufactured house and the towing
34-4 vehicle in combination includes the length of the hitch or towing
34-5 device. The height is measured from the roadbed to the highest
34-6 elevation of the manufactured house. The width of the house or
34-7 section includes any roof or eave extension or overhang on either
34-8 side.
34-9 (c) The route must be the shortest distance from the place
34-10 where the transportation begins in this state to the place where
34-11 the transportation ends in this state and include divided and
34-12 interstate systems, except where construction is in progress or
34-13 bridge or overpass width or height creates a safety hazard. A
34-14 county or municipality may designate to the department the route to
34-15 be used inside the territory of the county or municipality.
34-16 (d) If the manufactured home is being moved from or to a
34-17 site in this state where it has been, or will be, occupied as a
34-18 dwelling, the permit must also show:
34-19 (1) the complete serial or identification number;
34-20 (2) the HUD label or state seal number;
34-21 (3) the name of the owner of the home; and
34-22 (4) the location from which the home is being moved
34-23 and the location to which the home is being delivered.
34-24 (e) If the permit shows the additional information required
34-25 by Subsection (d), the department shall send on a quarterly basis a
34-26 copy of the permit, or furnish the essential information in the
34-27 permit, to the tax assessor-collector and the chief appraiser of
35-1 the appraisal district for each county in which the movement begins
35-2 or ends.
35-3 SECTION 20. Section 623.094, Transportation Code, is amended
35-4 to read as follows:
35-5 Sec. 623.094. [MANUFACTURER'S, RETAILER'S, AND
35-6 TRANSPORTER'S] PERMIT ISSUANCE. (a) Except as authorized by
35-7 Section 623.095, the department may issue a permit only to [a
35-8 person]:
35-9 (1) a person licensed by the Texas Department of
35-10 Housing and Community Affairs [registered] as a manufacturer, [or]
35-11 retailer, or installer [with the commissioner of licensing and
35-12 regulation]; or
35-13 (2) motor carriers registered with the department
35-14 [certificated for the transportation of a manufactured house by the
35-15 Railroad Commission of Texas or the Interstate Commerce
35-16 Commission].
35-17 (b) The license or registration number [or the certificate
35-18 number] of the person to whom the permit is issued shall be affixed
35-19 to the rear of the manufactured house during transportation and
35-20 have letters and numbers that are at least eight inches high.
35-21 SECTION 21. Section 623.095, Transportation Code, is amended
35-22 to read as follows:
35-23 Sec. 623.095. [SINGLE-TRIP] PERMIT TYPES. (a) The
35-24 department may issue a single-trip permit for the transportation of
35-25 a manufactured house to:
35-26 (1) the owner of a manufactured house if:
35-27 (A) the title to the manufactured house and the
36-1 title to the towing vehicle show that the owner of the manufactured
36-2 house and the owner of the towing vehicle are the same person; or
36-3 (B) a lease filed under Chapter 641 shows that
36-4 the owner of the manufactured house and the lessee of the towing
36-5 vehicle are the same person; or
36-6 (2) a person authorized to be issued permits by
36-7 Section 623.094 [an installer registered with the Texas Department
36-8 of Licensing and Regulation for the transportation of a
36-9 manufactured house if that transportation is excluded from
36-10 regulation under Chapter 314, Acts of the 41st Legislature, Regular
36-11 Session, 1929 (Article 911b, Vernon's Texas Civil Statutes)].
36-12 (b) A person or [An] owner [or installer] must have proof of
36-13 the insurance coverage required by Section 623.103.
36-14 (c) In lieu of a single-trip permit, the department may
36-15 issue an annual permit to any person authorized to be issued
36-16 permits by Section 623.094 for the transportation of new
36-17 manufactured homes from a manufacturing facility to a temporary
36-18 storage location not to exceed 20 miles from the point of
36-19 manufacture. A copy of the permit must be carried in the vehicle
36-20 transporting a manufactured home from the manufacturer to temporary
36-21 storage. The department may adopt rules concerning requirements
36-22 for a permit issued under this subsection.
36-23 SECTION 22. Section 623.096, Transportation Code, is amended
36-24 to read as follows:
36-25 Sec. 623.096. Permit Fee. (a) The department shall collect
36-26 a fee of $20 [$15] for each permit issued under this subchapter.
36-27 Of each fee, 30 cents shall be deposited to the credit of the state
37-1 highway fund.
37-2 (b) The department shall adopt rules concerning fees for
37-3 each annual permit issued under Section 623.095(c) at a cost not to
37-4 exceed $1,500. Two percent of any fee adopted shall be deposited
37-5 to the credit of the state highway fund [On application, the
37-6 department shall issue a permit book or packet containing 20
37-7 permits if the $15 fee for each permit in the book or packet is
37-8 received with the application].
37-9 (c) The [A permit in a book or packet may be used for the
37-10 movement of a manufactured house regardless of the manufactured
37-11 house's width, length, or height. The route approval and any
37-12 required validation number for the permit may be secured from the
37-13 issuing office by telephone communication.]
37-14 [(d) In lieu of issuing a permit book or packet, the]
37-15 department may establish an escrow account for the payment of
37-16 permit fees.
37-17 SECTION 23. Section 18(b), Article 21.07, Insurance Code, is
37-18 amended to read as follows:
37-19 (b) Notwithstanding any provisions of either this Article or
37-20 of the Insurance Code to the contrary, an employee, officer,
37-21 director, or shareholder of a dealer who holds a valid dealer's
37-22 general distinguishing number issued by the Texas Department of
37-23 Transportation pursuant to the authority of Article 6686, Revised
37-24 Statutes, or of a retailer who holds a valid license issued by the
37-25 Texas Department of Housing and Community Affairs pursuant to the
37-26 Texas Manufactured Housing Standards Act (Article 5221f, Vernon's
37-27 Texas Civil Statutes), who is licensed as an agent under this
38-1 Article, and who enters into a contract with an insurer to act as
38-2 the insurer's agent in soliciting or writing policies or
38-3 certificates of credit life insurance, credit accident and health
38-4 insurance, or both, may assign and transfer to the dealer or
38-5 retailer, or any affiliate of the dealer or retailer, any
38-6 commissions, fees, or other compensation to be paid to the agent
38-7 under the agent's contract with the insurer.
38-8 SECTION 24. (a) This Act takes effect September 1, 1997.
38-9 (b) A certificate of registration that is valid immediately
38-10 before the effective date of this Act remains valid until the
38-11 expiration date of the registration.
38-12 (c) The increase in the bond for a retailer's license
38-13 required by Section 11 of this Act is effective on September 1,
38-14 1997, for an initial license and is effective for a license holder
38-15 on the date of renewal.
38-16 SECTION 25. The importance of this legislation and the
38-17 crowded condition of the calendars in both houses create an
38-18 emergency and an imperative public necessity that the
38-19 constitutional rule requiring bills to be read on three several
38-20 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2703 was passed by the House on May
5, 1997, by a non-record vote; and that the House concurred in
Senate amendments to H.B. No. 2703 on May 21, 1997, by a non-record
vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 2703 was passed by the Senate, with
amendments, on May 19, 1997, by a viva-voce vote.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor