1-1 By: Stiles (Senate Sponsor - Harris) H.B. No. 2703
1-2 (In the Senate - Received from the House May 6, 1997;
1-3 May 7, 1997, read first time and referred to Committee on State
1-4 Affairs; May 16, 1997, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 13, Nays 0; May 16, 1997,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR H.B. No. 2703 By: Galloway
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the regulation of manufactured housing; providing
1-11 penalties.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Section 3, Texas Manufactured Housing Standards
1-14 Act (Article 5221f, Vernon's Texas Civil Statutes), is amended to
1-15 read as follows:
1-16 Sec. 3. DEFINITIONS. Whenever used in this Act, unless the
1-17 content otherwise requires, the following words and terms have the
1-18 following meanings:
1-19 (1) "Advertising" or "advertisement" means any
1-20 commercial message which promotes the sale, exchange, or
1-21 lease-purchase of manufactured homes and which appears in, or is
1-22 presented on, radio, television, a public-address system,
1-23 newspapers, magazines, leaflets, flyers, catalogs, direct mail
1-24 literature, other printed material, an inside or outside sign or
1-25 window display, or in point-of-sale literature or price tags.
1-26 Materials which are educational or that may be required by law do
1-27 not constitute advertising. Any advertisement relating to
1-28 manufactured housing shall be considered as an offer to sell,
1-29 exchange, or lease-purchase to consumers.
1-30 (2) "Alteration" means the replacement, addition, and
1-31 modification or removal of any equipment or its installation in a
1-32 new manufactured home after sale by a manufacturer to a retailer
1-33 but prior to sale and installation by a retailer to a purchaser
1-34 which may affect the construction, fire safety, occupancy,
1-35 plumbing, heat-producing or electrical system. It includes any
1-36 modification made in the manufactured home which may affect the
1-37 compliance of the home with the standards, but it does not include
1-38 the repair or replacement of a component or appliance requiring
1-39 plug-in to an electrical receptacle where the replaced item is of
1-40 the same configuration and rating as the one being replaced. It
1-41 also does not include the addition of an appliance requiring
1-42 plug-in to an electrical receptacle, which appliance was not
1-43 provided with the manufactured home by the manufacturer, if the
1-44 rating of the appliance does not exceed the rating of the
1-45 receptacle to which it is connected.
1-46 (3) "Board" means the governing board of the
1-47 department.
1-48 (4) "Broker" means a person engaged by one or more
1-49 other persons to negotiate or offer to negotiate bargains or
1-50 contracts for the sale, exchange, or lease-purchase of a
1-51 manufactured home to which a certificate or document of title has
1-52 been issued and is outstanding. A broker may or may not be an
1-53 agent of any party involved in the transaction. A person who
1-54 maintains a location for the display of manufactured homes is not a
1-55 broker but is a retailer. The term shall not apply if the
1-56 manufactured home is affixed to a permanent foundation, the
1-57 manufacturer's certificate or the document of title is canceled,
1-58 and the home is offered as real estate; however, the provisions of
1-59 The Real Estate License Act (Article 6573a, Vernon's Texas Civil
1-60 Statutes) shall apply.
1-61 (5) "Code" means the Texas Manufactured Housing
1-62 Standards Code.
1-63 (6) "Consumer" means any person other than one
1-64 registered under this Act that seeks or acquires by purchase,
2-1 exchange, or lease-purchase a manufactured home.
2-2 (7) "Department" means the Texas Department of Housing
2-3 and Community Affairs.
2-4 (8) "Director" means the executive director of the
2-5 department.
2-6 (9) "HUD-code manufactured home" means a structure
2-7 constructed on or after June 15, 1976, according to the rules of
2-8 the United State Department of Housing and Urban Development,
2-9 transportable in one or more sections, which, in the traveling
2-10 mode, is eight body feet or more in width or 40 body feet or more
2-11 in length, or, when erected on site, is 320 or more square feet,
2-12 and which is built on a permanent chassis and designed to be used
2-13 as a dwelling with or without a permanent foundation when connected
2-14 to the required utilities, and includes the plumbing, heating,
2-15 air-conditioning, and electrical systems. The term does not
2-16 include a recreational vehicle as that term is defined by 24 C.F.R.
2-17 Section 3282.8(g).
2-18 (10) "Installation," when used in reference to
2-19 manufactured housing, means the construction of the foundation
2-20 systems, whether temporary or permanent, and the placement and
2-21 erection of a manufactured home or manufactured home components on
2-22 the foundation system and includes supporting, blocking, leveling,
2-23 securing, anchoring, and proper connection of multiple or
2-24 expandable sections or components, and minor adjustments.
2-25 (11) "Installer" means any person, including a
2-26 retailer or manufacturer, that contracts to perform or performs
2-27 installation functions on manufactured housing.
2-28 (12) "Label" means a device or insignia issued by the
2-29 director to indicate compliance with the standards, rules, and
2-30 regulations established by the United States Department of Housing
2-31 and Urban Development, and is permanently affixed to each
2-32 transportable section of each HUD-code manufactured home
2-33 constructed after June 15, 1976, for sale to a consumer.
2-34 (13) "Lease-purchase" means to enter into a lease
2-35 contract with a provision conferring on the lessee an option to
2-36 purchase the manufactured home.
2-37 (14) "License holder" means a person that holds a
2-38 license issued by the department as a manufactured housing
2-39 manufacturer, retailer, broker, rebuilder, salesperson, or
2-40 installer.
2-41 (15) "Manufactured housing" or "Manufactured home"
2-42 means a HUD-code manufactured home or a mobile home and
2-43 collectively means and refers to both.
2-44 (16) "Manufacturer" means a person that constructs or
2-45 assembles manufactured housing for sale, exchange, or
2-46 lease-purchase within the state.
2-47 (17) "Mobile home" means a structure that was
2-48 constructed before June 15, 1976, transportable in one or more
2-49 sections, which, in the traveling mode, is eight body feet or more
2-50 in width or 40 body feet or more in length, or, when erected on
2-51 site, is 320 or more square feet, and which is built on a permanent
2-52 chassis and designed to be used as a dwelling with or without a
2-53 permanent foundation when connected to the required utilities and
2-54 includes the plumbing, heating, air-conditioning, and electrical
2-55 systems.
2-56 (18) "Person" means an individual, partnership,
2-57 company, corporation, association, or other group, however
2-58 organized.
2-59 (19) "Retailer" means a person engaged in the business
2-60 of buying for resale, selling, or exchanging manufactured homes or
2-61 offering such for sale, exchange, or lease-purchase to consumers.
2-62 A person is not considered a retailer unless the person is engaged
2-63 in the sale, exchange, or lease-purchase of two or more
2-64 manufactured homes to consumers in any consecutive 12-month period.
2-65 (20) "Salesperson" means a person who for any form of
2-66 compensation sells or lease-purchases or offers to sell or
2-67 lease-purchase manufactured housing to consumers as an employee or
2-68 agent of a retailer or broker.
2-69 (21) "Seal" means a device or insignia issued by the
3-1 director to be affixed to used manufactured homes for titling
3-2 purposes, as required by the director. The seal shall remain the
3-3 property of the department. ["Mobile home" means a structure that
3-4 was constructed before June 15, 1976, transportable in one or more
3-5 sections, which, in the traveling mode, is eight body feet or more
3-6 in width or 40 body feet or more in length, or, when erected on
3-7 site, is 320 or more square feet, and which is built on a permanent
3-8 chassis and designed to be used as a dwelling with or without a
3-9 permanent foundation when connected to the required utilities, and
3-10 includes the plumbing, heating, air-conditioning, and electrical
3-11 systems.]
3-12 [(2) "Retailer" means any person engaged in the
3-13 business of buying for resale, selling, or exchanging manufactured
3-14 homes or offering such for sale, exchange, or lease-purchase to
3-15 consumers. No person shall be considered a retailer unless engaged
3-16 in the sale, exchange, or lease-purchase of two or more
3-17 manufactured homes to consumers in any consecutive 12-month period.]
3-18 [(3) "Manufacturer" means any person who constructs or
3-19 assembles manufactured housing for sale, exchange, or
3-20 lease-purchase within the state.]
3-21 [(4) "Department" means the Texas Department of
3-22 Housing and Community Affairs.]
3-23 [(5) "Person" means an individual, partnership,
3-24 company, corporation, association, or other group, however
3-25 organized.]
3-26 [(6) "Broker" means a person engaged by one or more
3-27 other persons to negotiate or offer to negotiate bargains or
3-28 contracts for the sale, exchange, or lease-purchase of a
3-29 manufactured home to which a certificate or document of title has
3-30 been issued and is outstanding. A broker may or may not be an
3-31 agent of any party involved in the transaction. A person who
3-32 maintains a location for the display of manufactured homes is not a
3-33 broker but is a retailer. The term shall not apply if the
3-34 manufactured home is affixed to a permanent foundation, the
3-35 manufacturer's certificate or the document of title is canceled,
3-36 and the home is offered as real estate; however, the provisions of
3-37 The Real Estate License Act (Article 6573a, Vernon's Texas Civil
3-38 Statutes) shall apply.]
3-39 [(7) "Consumer" means any person other than one
3-40 registered under this article who seeks or acquires by purchase,
3-41 exchange, or lease-purchase a manufactured home.]
3-42 [(8) "Seal" means a device or insignia issued by the
3-43 director to be affixed to used manufactured homes for titling
3-44 purposes, as required by the director. The seal shall remain the
3-45 property of the department.]
3-46 [(9) "Label" means a device or insignia issued by the
3-47 director to indicate compliance with the standards, rules, and
3-48 regulations established by the Department of Housing and Urban
3-49 Development, and is permanently affixed to each transportable
3-50 section of each HUD-code manufactured home constructed after
3-51 June 15, 1976, for sale to a consumer.]
3-52 [(10) "Installation," when used in reference to
3-53 manufactured housing, means the transporting of manufactured homes
3-54 or manufactured home components to the place where they will be
3-55 used by the consumer, the construction of the foundation system,
3-56 whether temporary or permanent, and the placement and erection of a
3-57 manufactured home or manufactured home components on the foundation
3-58 system, and includes supporting, blocking, leveling, securing,
3-59 anchoring, and proper connection of multiple or expandable sections
3-60 or components, the installation of air conditioning, and minor
3-61 adjustments.]
3-62 [(11) "Installer" means any person, including a
3-63 retailer or manufacturer, who performs installation functions on
3-64 manufactured housing.]
3-65 [(12) "Alteration" means the replacement, addition,
3-66 and modification, or removal of any equipment or its installation
3-67 in a new manufactured home after sale by a manufacturer to a
3-68 retailer but prior to sale and installation by a retailer to a
3-69 purchaser which may affect the construction, fire safety,
4-1 occupancy, plumbing, heat-producing or electrical system. It
4-2 includes any modification made in the manufactured home which may
4-3 affect the compliance of the home with the standards, but it does
4-4 not include the repair or replacement of a component or appliance
4-5 requiring plug-in to an electrical receptacle where the replaced
4-6 item is of the same configuration and rating as the one being
4-7 replaced. It also does not include the addition of an appliance
4-8 requiring "plug-in" to an electrical receptacle, which appliance
4-9 was not provided with the manufactured home by the manufacturer, if
4-10 the rating of the appliance does not exceed the rating of the
4-11 receptacle to which it is connected.]
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) "Director" means the executive director of the
4-16 department.]
4-17 [(15) "Code" means the Texas Manufactured Housing
4-18 Standards Code.]
4-19 [(16) "Salesperson" means any person who for any form
4-20 of compensation sells or lease-purchases or offers to sell or
4-21 lease-purchase manufactured housing to consumers as an employee or
4-22 agent of a retailer or broker.]
4-23 [(17) "Manufactured housing" or "manufactured home"
4-24 means a HUD-code manufactured home or a mobile home and
4-25 collectively means and refers to both.]
4-26 [(18) "Registrant" means any person who has registered
4-27 with the department and has been issued a certificate of
4-28 registration as a manufactured housing manufacturer, retailer,
4-29 broker, salesperson, or installer.]
4-30 [(19) "HUD-code manufactured home" means a structure,
4-31 constructed on or after June 15, 1976, according to the rules of
4-32 the United States Department of Housing and Urban Development,
4-33 transportable in one or more sections, which, in the traveling
4-34 mode, is eight body feet or more in width or 40 body feet or more
4-35 in length, or, when erected on site, is 320 or more square feet,
4-36 and which is built on a permanent chassis and designed to be used
4-37 as a dwelling with or without a permanent foundation when connected
4-38 to the required utilities, and includes the plumbing, heating,
4-39 air-conditioning, and electrical systems. The term does not
4-40 include a recreational vehicle as that term is defined by 24 C.F.R.
4-41 Section 3282.8(g).]
4-42 [(20) "Advertising" or "advertisement" means any
4-43 commercial message which promotes the sale, exchange, or
4-44 lease-purchase of manufactured homes and which appears in, or is
4-45 presented on, radio, television, a public-address system,
4-46 newspapers, magazines, leaflets, flyers, catalogs, direct mail
4-47 literature, other printed material, an inside or outside sign or
4-48 window display, or in point-of-sale literature or price tags.
4-49 Materials which are educational or that may be required by law do
4-50 not constitute advertising. Any advertisement relating to
4-51 manufactured housing shall be considered as an offer to sell,
4-52 exchange, or lease-purchase to consumers.]
4-53 [(21) "Board" means the governing board of the
4-54 department.]
4-55 SECTION 2. Section 3A, Texas Manufactured Housing Standards
4-56 Act (Article 5221f, Vernon's Texas Civil Statutes), is amended to
4-57 read as follows:
4-58 Sec. 3A. DEFINITIONS BINDING. The definitions of "mobile
4-59 home," "HUD-code manufactured home," and "manufactured housing" set
4-60 forth in Section 3 of this Act [article] are binding on all persons
4-61 and agencies in this state as a matter of law including local
4-62 political subdivisions and home-rule cities. A mobile home is not
4-63 a HUD-code manufactured home and a HUD-code manufactured home is
4-64 not a mobile home for any purpose under the laws of this state.
4-65 These terms shall not be defined in any manner which is not
4-66 identical to the definitions set forth in Section 3 of this Act.
4-67 SECTION 3. Subsections (f), (g), (h), and (i), Section 4,
4-68 Texas Manufactured Housing Standards Act (Article 5221f, Vernon's
4-69 Texas Civil Statutes), are amended to read as follows:
5-1 (f) All manufactured housing must be installed in compliance
5-2 with the standards, rules, regulations, or administrative orders of
5-3 the director. The department shall establish an inspection program
5-4 whereby at least 25 percent of the manufactured homes installed are
5-5 inspected on a sample basis for compliance. The department's
5-6 program shall place priority on multi-section homes and homes
5-7 installed in Wind Zone II.
5-8 (g) A local governmental unit of this state, without the
5-9 express approval of the board following a hearing on the matter,
5-10 may not adopt different standards from those promulgated by the
5-11 director for the construction or installation of manufactured
5-12 housing within the local governmental unit. The local governmental
5-13 unit must demonstrate that the public health and safety require the
5-14 different standards.
5-15 (h) Before the adoption or promulgation of any standards or
5-16 requirements authorized by this section, any change in or addition
5-17 to the standards authorized in this section, or the approval of
5-18 different standards by any local governmental unit, the director
5-19 shall publish a notice and conduct a public hearing under Section 9
5-20 of this Act [in accordance with Chapter 2001, Government Code, not
5-21 sooner than the 30th day following the publication of notice].
5-22 (i) Every requirement or standard or modification,
5-23 amendment, or repeal of a requirement or standard adopted by the
5-24 director shall state the date it shall take effect as provided by
5-25 Section 9 of this Act.
5-26 SECTION 4. Section 6, Texas Manufactured Housing Standards
5-27 Act (Article 5221f, Vernon's Texas Civil Statutes), is amended by
5-28 amending Subsections (e), (f), (g), and (h) and adding Subsection
5-29 (l) to read as follows:
5-30 (e) It is unlawful for a manufacturer to sell, exchange, or
5-31 lease-purchase or offer to sell, exchange, or lease-purchase a
5-32 manufactured home to any person in the state other than a licensed
5-33 [registered] retailer.
5-34 (f) A person may not make any announcement concerning the
5-35 sale, exchange, or lease-purchase of, nor offer to sell, exchange,
5-36 or lease-purchase, a manufactured home to consumers in this state
5-37 through any form of advertising unless such person is a duly
5-38 licensed [registered] manufacturer, retailer, or broker. This
5-39 prohibition against advertising shall not apply to a person to whom
5-40 a certificate or document of title has been issued showing such
5-41 person to be the owner of the home, provided that such person does
5-42 not offer to sell, exchange, or lease-purchase two or more
5-43 manufactured homes in any consecutive 12-month period. This
5-44 prohibition also shall not apply to the advertising of real estate
5-45 on which a manufactured home has been permanently attached and
5-46 affixed.
5-47 (g) It is unlawful for a retailer to purchase for resale to
5-48 a consumer, or to sell, exchange, or lease-purchase or offer to
5-49 sell, exchange, or lease-purchase, any new HUD-code manufactured
5-50 home which was constructed by a manufacturer which was not licensed
5-51 [registered] with the department at the time of construction.
5-52 (h) It is unlawful for a person to sell, convey, or
5-53 otherwise transfer to a consumer in this state a salvaged
5-54 manufactured home as such term is defined in Section 8 of this Act
5-55 [article]. A salvaged manufactured home may only be sold to a
5-56 licensed [registered] retailer or licensed [registered] rebuilder.
5-57 (l) It is unlawful for a salesperson to aid or assist a
5-58 consumer in preparing or providing false or misleading information
5-59 on a document related to the purchase or financing of a
5-60 manufactured home or for a salesperson to submit information known
5-61 to be false or misleading to a retailer or to a credit underwriter.
5-62 SECTION 5. Texas Manufactured Housing Standards Act (Article
5-63 5221f, Vernon's Texas Civil Statutes) is amended by adding Section
5-64 6B to read as follows:
5-65 Sec. 6B. WIND ZONE REGULATIONS. (a) Aransas, Brazoria,
5-66 Calhoun, Cameron, Chambers, Galveston, Jefferson, Kenedy, Kleberg,
5-67 Matagorda, Nueces, Orange, Refugio, San Patricio, and Willacy
5-68 counties are in Wind Zone II. All other counties are in Wind Zone
5-69 I.
6-1 (b) A manufactured home constructed on or after the
6-2 effective date of this section must meet the Wind Zone II standards
6-3 adopted by the United States Department of Housing and
6-4 Urban Development in order to be installed in a Wind Zone II
6-5 county.
6-6 (c) All manufactured homes constructed prior to the
6-7 effective date of this section may be installed in Wind Zone I or
6-8 Wind Zone II without restriction.
6-9 (d) A consumer purchasing a manufactured home constructed on
6-10 or after the effective date of this section to Wind Zone I
6-11 standards must be given a notice by the selling retailer that:
6-12 (1) the home was not designed nor constructed to
6-13 withstand hurricane force winds which may occur in Wind Zone II or
6-14 III areas; and
6-15 (2) the home is not permitted to be installed in Wind
6-16 Zone II counties in Texas, and there may be restrictions in other
6-17 states prohibiting installation in Wind Zone II or III areas.
6-18 (e) The notice required by this section shall be given the
6-19 consumer prior to the execution of any mutually binding sales
6-20 agreement or retail installment sales contract.
6-21 SECTION 6. Section 7, Texas Manufactured Housing Standards
6-22 Act (Article 5221f, Vernon's Texas Civil Statutes), is amended to
6-23 read as follows:
6-24 Sec. 7. Registration. (a) A person may not construct or
6-25 assemble a new HUD-code manufactured home in the state or ship a
6-26 new HUD-code manufactured home into the state, unless the person is
6-27 licensed [registered] as a manufactured housing manufacturer with
6-28 the department and possesses a valid manufacturer's license
6-29 [certificate of registration] at the time the home is constructed
6-30 or assembled.
6-31 (b) Except as otherwise expressly provided in this Act
6-32 [article], a person may not sell, exchange, lease-purchase, or
6-33 offer to sell, exchange, or lease-purchase two or more manufactured
6-34 homes to consumers in the state in any consecutive 12-month period,
6-35 unless the person possesses a valid manufactured housing retailer's
6-36 license [certificate of registration].
6-37 (c) A person may not offer to negotiate or negotiate for
6-38 others a bargain or contract for the sale, exchange, or
6-39 lease-purchase of two or more manufactured homes to consumers in
6-40 the state in any 12-month period, unless the person possesses a
6-41 valid manufactured housing broker's license [certificate of
6-42 registration].
6-43 (d) A person may not perform any installation functions on
6-44 manufactured housing in the state, unless the person possesses a
6-45 valid installer's license [certificate of registration] and files
6-46 proof of insurance as required by the director. The director may
6-47 issue a temporary installer's license [certificate of registration]
6-48 to a homeowner for the installation of the owner's home in
6-49 accordance with applicable requirements, standards, and regulations
6-50 of the director, on application and payment of the required fee and
6-51 on submission of proof of insurance by the owner as required by the
6-52 department.
6-53 (e) Each applicant for a license [certificate of
6-54 registration] as a manufacturer, retailer, broker, rebuilder, or
6-55 installer must file with the director an application for a license
6-56 [registration] containing the following information:
6-57 (1) the legal name, address, and telephone number of
6-58 the applicant;
6-59 (2) the trade name by which the applicant does
6-60 business and, if incorporated, the name registered with the
6-61 secretary of state and the address of the business; and
6-62 (3) the dates on which the applicant became the owner
6-63 and operator of the business.
6-64 (f) Each application for a license [certificate of
6-65 registration] must be accompanied by proof of the security required
6-66 by this Act and payment of the required fee for the issuance of the
6-67 certificate.
6-68 (g) All licenses [certificates of registration] are valid
6-69 for one year and are renewable as provided by the director.
7-1 (h) [(i)] If a change occurs in the information filed with
7-2 the director under Subsection (e) of this section, the applicant
7-3 shall file an amendment to his or her application that states the
7-4 correct information.
7-5 (i) [(j)] While acting as an agent for a license holder
7-6 [registrant], an employee is covered by the business entity's
7-7 license [certificate of registration] and is not required to be
7-8 individually licensed [registered]. An independent contractor or
7-9 business entity may not operate under the license [certificate of
7-10 registration] of another business entity except as an agent or
7-11 subcontractor of a licensed [registered] installer who shall remain
7-12 fully responsible for all installation functions performed by such
7-13 agent as subcontractor except as provided in Subsection (l) [(m)]
7-14 of this section.
7-15 (j) [(k)] The director, after notice and hearing under
7-16 Section 9 of this Act, may refuse to issue or may permanently
7-17 revoke, or suspend for a definite period of time and for a
7-18 specified geographic area or sales location, any license
7-19 [certificate of registration] if the director finds that the
7-20 applicant or license holder [registrant]:
7-21 (1) knowingly and wilfully violated any provision of
7-22 this Act [article] or any rule, administrative order, or regulation
7-23 made pursuant to this Act;
7-24 (2) without lawful authorization retained or converted
7-25 any money, property, or any other thing of value from consumers in
7-26 the form of down payments, sales and use taxes, deposits, or
7-27 insurance premiums;
7-28 (3) failed to deliver proper title documents or
7-29 certificates of title to consumers;
7-30 (4) failed to give or breached any manufactured home
7-31 warranty required by this Act or by the Federal Trade Commission;
7-32 (5) engaged in any false, misleading, or deceptive
7-33 acts or practices as the term is set forth in and as those acts are
7-34 declared unlawful by the provisions of Chapter 17, Subchapter E,
7-35 Business & Commerce Code;
7-36 (6) failed to furnish or file any reports required by
7-37 the department for the administration and enforcement of this Act;
7-38 (7) furnished false information on any application,
7-39 report, or other document filed with the department;
7-40 (8) has a record of criminal convictions within the
7-41 five years preceding the date of the application that, in the
7-42 opinion of the director, renders the applicant unfit for licensing
7-43 [registration]; or
7-44 (9) failed to file the bond or post other security for
7-45 each location as required by Section 13 of this Act.
7-46 (k) [(l)] The director shall conduct any hearing involving
7-47 the denial, renewal, revocation or suspension of a license
7-48 [certificate of registration] in accordance with Chapter 2001,
7-49 Government Code.
7-50 (l) [(m)] A retailer or an installer may not contract with
7-51 any person for the installation of any air-conditioning equipment,
7-52 devices, or components in connection with the installation of a
7-53 manufactured home unless the person is [registered as an installer
7-54 with the department or is otherwise] licensed by the state as an
7-55 air-conditioning contractor. The regulation of air-conditioning
7-56 contractors is exclusively reserved to the Texas Department of
7-57 Licensing and Regulation [This subsection shall not apply to a new
7-58 manufactured home being installed on a permanent foundation within
7-59 a municipality which regulates air-conditioning contractors unless
7-60 some other state statute provides otherwise].
7-61 (m) [(n)] A person may not act as a salesperson of
7-62 manufactured housing unless the person is licensed [registered]
7-63 with the department. Each applicant for a salesperson's license
7-64 [certificate of registration] shall file with the director an
7-65 application giving such information as the director deems necessary
7-66 and pay the required fee. The owner of a sole proprietorship, a
7-67 partner in a partnership, or an officer of a corporation which is
7-68 duly licensed [registered] as a retailer or broker does not have to
7-69 apply for licensing [register] as a salesperson so long as such
8-1 individual is properly listed in the retailer's or broker's
8-2 application for license [registration]. The salesperson is the
8-3 agent of the retailer or broker. The license [registration] shall
8-4 be an annual license [registration]. A retailer or broker shall
8-5 not employ, retain, or otherwise use the services of a salesperson
8-6 who is not licensed [registered]. A licensed [registered]
8-7 salesperson may work or sell for one or more retailers, brokers, or
8-8 sales locations.
8-9 (n) [(o)] A person may not alter, repair, or otherwise
8-10 rebuild a salvaged manufactured home, as such term is defined in
8-11 Section 8 of this Act, unless the person is duly licensed
8-12 [registered] with the department as a manufactured home rebuilder
8-13 or retailer and unless the person complies with the rules and
8-14 regulations of the director relating to the rebuilding of salvaged
8-15 manufactured homes.
8-16 (o) [(p)] Any person not licensed or registered with the
8-17 department or a predecessor agency as of September 1, 1987, must
8-18 attend and complete twenty (20) hours of instruction in the law and
8-19 consumer protection regulations as a prerequisite for a license
8-20 [prior to any registration]. The instruction shall be given not
8-21 less than one time each quarter. No test shall be made a
8-22 prerequisite of licensing [registration], but actual attendance at
8-23 the instruction sessions is required. The director shall not issue
8-24 a license [registration] until the instruction is completed. This
8-25 subsection does not apply to a registrant making application to
8-26 license [register] additional business locations, to renew or
8-27 reinstate a license, or to make application for licensing
8-28 [register] as a salesperson. In lieu of this instruction
8-29 requirement, a manufacturer may request that a one-day, in-plant
8-30 training session be presented by an authorized representative of
8-31 the department. The manufacturer shall reimburse the department
8-32 for the actual costs of the training session.
8-33 (p) [(q)] Notwithstanding any provision of this Act to the
8-34 contrary, any state or national bank, state or federal savings and
8-35 loan association or federal savings bank, or state or federal
8-36 credit union engaged in the business of selling or offering for
8-37 sale, exchange, or lease-purchase manufactured homes that the
8-38 institution has acquired as a result of repossession of its
8-39 collateral is not required to attend any school or file any bond or
8-40 post other security in order to be licensed [registered] as a
8-41 retailer.
8-42 (q) [(r)] In lieu of the instruction requirements imposed
8-43 under Subsection (o) [(p)] of this section, the director may
8-44 recognize and approve a [one-day] training program for installers
8-45 that is conducted in the field by a private institution or other
8-46 person.
8-47 (r) A license shall be renewed if the renewal application
8-48 and payment of the annual fee are received by the department prior
8-49 to the date on which the license expires. The renewal license
8-50 expires on the first anniversary of the date the license was
8-51 renewed. If the department needs additional information for the
8-52 renewal application or verification of the continuing insurance or
8-53 bond coverage, the license holder shall have 20 days following the
8-54 receipt of notice from the department to furnish the requested
8-55 information or verification.
8-56 SECTION 7. Section 7A, Texas Manufactured Housing Standards
8-57 Act (Article 5221f, Vernon's Texas Civil Statutes), is amended to
8-58 read as follows:
8-59 Sec. 7A. [CONTINUING] EDUCATION PROGRAMS. The director may
8-60 recognize, prepare, or administer certification programs and
8-61 continuing education programs for persons regulated under this Act.
8-62 Participation in the programs is voluntary. The director shall
8-63 issue appropriate certificates to those persons who complete the
8-64 certification program or who participate in the continuing
8-65 education program.
8-66 SECTION 8. Subsections (d), (f), and (h), Section 8, Texas
8-67 Manufactured Housing Standards Act (Article 5221f, Vernon's Texas
8-68 Civil Statutes), are amended to read as follows:
8-69 (d) It is unlawful for a person to sell, exchange, or
9-1 lease-purchase a used manufactured home to any person without the
9-2 appropriate transfer of good and marketable title to the home
9-3 except when the sale, exchange, or lease-purchase is (1) to a
9-4 purchaser for the purchaser's business use, or (2) to a rebuilder
9-5 for the purpose of rebuilding a salvaged manufactured home. The
9-6 seller or transferor shall forward to the department properly
9-7 completed documents for the transfer of title within 30 days after
9-8 the date the transfer of ownership is effective or after the date
9-9 the seller or transferor obtains possession of the necessary
9-10 executed documents.
9-11 (f) A holder of a lien recorded on a manufactured home
9-12 document of title issued by the department who sells, exchanges, or
9-13 transfers by a lease-purchase a repossessed manufactured home
9-14 covered by such document of title is not required to comply with
9-15 the provisions of this Act, provided that the sale, exchange, or
9-16 transfer by a lease-purchase is (1) to or through a licensed
9-17 [registered] retailer, or (2) to a purchaser for the purchaser's
9-18 business use. If the sale, exchange, or lease-purchase is to a
9-19 purchaser for the purchaser's business use, the holder of the lien
9-20 shall surrender the title to the department for cancellation. If
9-21 the sale, exchange, or lease-purchase is to or through a licensed
9-22 [registered] retailer, the retailer is responsible and liable for
9-23 compliance with the provisions of this Act and all rules and
9-24 regulations of the department, and the holder of the lien shall not
9-25 be joined as a party in any litigation arising in connection with,
9-26 or relating to, the sale, exchange, or lease-purchase of the
9-27 repossessed manufactured home.
9-28 (h) Notwithstanding any provisions of this section to the
9-29 contrary, the director, following a written application by the
9-30 purchaser or transferee, may expressly authorize in writing a
9-31 licensed [registered] retailer to sell or exchange a used
9-32 manufactured home which is not or may not be habitable to or with
9-33 governmental housing agencies or authorities or to nonprofit
9-34 organizations providing housing for the homeless. As a part of the
9-35 application the purchaser or transferee must certify to the receipt
9-36 of a written notice that the home is not or may not be habitable.
9-37 The form of such written notice shall be prepared by the consumer
9-38 protection division of the attorney general's office and approved
9-39 by the director. The purchaser or transferee shall not occupy the
9-40 home or allow the home to be occupied as a residence or dwelling
9-41 until such time as any necessary repairs to make the home habitable
9-42 have been completed.
9-43 SECTION 9. Subsections (d), (e), (f), (g), and (m), Section
9-44 9, Texas Manufactured Housing Standards Act (Article 5221f,
9-45 Vernon's Texas Civil Statutes), are amended to read as follows:
9-46 (d) In this section "rule" means a standard, requirement,
9-47 regulation, order, and statement of general applicability that
9-48 implements, interprets, or prescribes law or policy or that
9-49 describes the procedures or practices of the department. Internal
9-50 management operating procedures that prescribe the use of a
9-51 particular form or that affect the private rights or procedures of
9-52 a license holder or consumer are also rules. An administrative
9-53 order that is not of general applicability but that is directed to
9-54 a specific license holder relating to warranties, the correction of
9-55 defects, or compliance with the law and regulations is not a rule
9-56 [At least 30 days before the adoption or promulgation of any change
9-57 in or addition to the rules and regulations authorized in
9-58 Subsections (b) and (c) of this section, the director shall publish
9-59 in the Texas Register a notice including:]
9-60 [(1) a copy of the proposed changes and additions; and]
9-61 [(2) the time and place that the director will
9-62 consider any objections to the proposed changes and additions].
9-63 (e) All rules shall be promulgated and adopted in accordance
9-64 with Chapter 2001, Government Code, and with the provisions of this
9-65 section [After giving the notice required by Subsection (d) of this
9-66 section, the director shall afford interested persons an
9-67 opportunity to participate in the rule-making through submission of
9-68 written data, views, or arguments with the opportunity to present
9-69 the same orally on any matter].
10-1 (f) A proposed rule, amendment to a rule, or repeal of a
10-2 rule shall be published in the Texas Register not less than 30 days
10-3 prior to the date of a public hearing set to consider the testimony
10-4 of interested persons. Notice of the time and place of the public
10-5 hearing shall be published in the Texas Register not less than 30
10-6 days prior to the date of the hearing. The director shall also
10-7 afford interested persons the opportunity to participate in the
10-8 rulemaking process through the submission of written data and
10-9 statements of support or opposition [Every rule or regulation or
10-10 modification, amendment, or repeal of a rule or regulation adopted
10-11 by the director shall state the date it shall take effect].
10-12 (g) A rule, amendment to a rule, or repeal of a rule as
10-13 finally adopted shall be published in the Texas Register and
10-14 include a statement of the effective date. The effective date of a
10-15 rule relating to installation standards shall be not less than 60
10-16 days following the date of publication of notice that the rule has
10-17 been adopted. Any other rule is effective as provided by Chapter
10-18 2001, Government Code, or such later date as is published
10-19 [Immediately after their promulgation, the director shall publish
10-20 in the Texas Register all rules and regulations or amendments
10-21 thereto].
10-22 (m) In order to protect the public health, safety, and
10-23 welfare, and to assure the availability of low cost manufactured
10-24 housing for all consumers, the director shall establish rules and
10-25 regulations for the protection of the interests of consumers who
10-26 occupy or desire to purchase or install manufactured housing and
10-27 for the business conduct of those persons required to be licensed
10-28 [registered] under this Act.
10-29 SECTION 10. Subsections (c) and (d), Section 11, Texas
10-30 Manufactured Housing Standards Act (Article 5221f, Vernon's Texas
10-31 Civil Statutes), are amended to read as follows:
10-32 (c) The board shall set fees for the issuance and renewal of
10-33 manufacturers', retailers', brokers', salespersons', rebuilders',
10-34 and installers' licenses [certificates of registration]; and fees
10-35 for the issuance of rebuilder licenses [registrations].
10-36 (d) A fee shall be set and charged to each person attending
10-37 the course of instruction in the law and consumer protection
10-38 regulations for applicants for licenses [registration].
10-39 SECTION 11. Subsections (a), (f), (g), (h), and (i), Section
10-40 13, Texas Manufactured Housing Standards Act (Article 5221f,
10-41 Vernon's Texas Civil Statutes), are amended to read as follows:
10-42 (a) The department may not issue or renew a license
10-43 [certificate of registration] unless a surety bond or other
10-44 security in the form prescribed by the director is filed with the
10-45 department as provided by this section.
10-46 (f) A manufacturer shall be bonded or post other security in
10-47 the amount of $100,000. A retailer shall be bonded or post other
10-48 security in the amount of $50,000 [$30,000]. A broker shall be
10-49 bonded or post other security in the amount of $20,000. An
10-50 installer shall be bonded or post other security in the amount of
10-51 $10,000. A rebuilder shall be bonded or post other security in the
10-52 amount of $30,000. In order to assure the availability of prompt
10-53 and satisfactory warranty service, a manufacturer, which does not
10-54 have a licensed [registered] manufacturing plant or other facility
10-55 in this state from which warranty service and repairs can be
10-56 provided and made, shall be bonded or post other security in an
10-57 additional amount of $100,000. A retailer holding a valid license
10-58 [certificate of registration] shall not be required to be bonded or
10-59 file any security to secure a license [certificate of registration]
10-60 as a broker or an installer. A new bond shall not be required for
10-61 any change of ownership of a corporation licensed [registered] with
10-62 the department nor for any change of a location; however, a proper
10-63 endorsement of the original bond may be required by the director.
10-64 (g) The bonding company must provide written notification to
10-65 the director at least 60 days prior to the cancellation of a surety
10-66 bond required by this section. Any other security on file with the
10-67 department shall remain on file and be maintained for two years
10-68 after the person ceases business as a manufacturer, retailer,
10-69 broker, rebuilder, or installer or at such later time as the
11-1 director may determine that no claims exist against the security.
11-2 (h) If a bond is canceled, the license [certificate of
11-3 registration] is suspended on the effective date of cancellation.
11-4 If a surety files for liquidation or reorganization in bankruptcy
11-5 or is placed in receivership, the license holder [registrant] is
11-6 entitled to 60 days from the date notice of the filing or
11-7 receivership was received to obtain other security. If the
11-8 required face amount of any other security is impaired by the
11-9 payment of a claim, the license holder [registrant] is entitled to
11-10 60 days to restore the security to its required face value.
11-11 (i) Subject to the limitations in this section, the bond or
11-12 other security is liable for, and shall reimburse the recovery fund
11-13 under Section 13A of this Act, the amount of any claim paid out of
11-14 the fund by the director to a consumer that resulted from an act or
11-15 omission of the license holder [registrant] who filed the bond or
11-16 other security. Payment by the surety or from the other security
11-17 shall be made not later than the 30th day from the date of receipt
11-18 of notice from the director that a consumer claim has been paid.
11-19 If for any reason the surety or other security fails to make timely
11-20 payment of a claim to the fund, the attorney general shall file
11-21 suit for recovery of the amount due the fund. Venue for the suit
11-22 is in Travis County.
11-23 SECTION 12. Subsections (e), (f), (g), and (k), Section 13A,
11-24 Texas Manufactured Housing Standards Act (Article 5221f, Vernon's
11-25 Texas Civil Statutes), are amended to read as follows:
11-26 (e) Subject to the limitations of Section 13 of this Act and
11-27 of this section, the fund shall be used to compensate consumers who
11-28 sustain actual damages resulting from unsatisfied claims against a
11-29 manufacturer, retailer, broker, or installer licensed [registered]
11-30 with the department if the claims resulted from a violation of:
11-31 (1) this Act;
11-32 (2) a rule issued by the director;
11-33 (3) the National Manufactured Housing Construction and
11-34 Safety Standards Act;
11-35 (4) the rules and regulations of the United States
11-36 Department of Housing and Urban Development; or
11-37 (5) the Deceptive Trade Practices-Consumer Protection
11-38 Act, Section 17.41 et seq., Business & Commerce Code.
11-39 (f) The consumer must file a [verified] written complaint in
11-40 the form required by the director not later than the second
11-41 anniversary of the date of the alleged act or omission causing the
11-42 actual damages, or the second anniversary of the date the act or
11-43 omission is discovered or should reasonably have been discovered.
11-44 Failure to timely file the claim precludes recovery from the fund.
11-45 On receipt of a properly verified complaint, the department shall
11-46 notify the license holders [registrants] as appropriate and
11-47 investigate the claim to determine its validity and whether or not
11-48 the complaint can be resolved by remedial action of the license
11-49 holders [registrants]. If there is a dispute between the license
11-50 holders [registrants] as to responsibility for the complaint, or
11-51 between any license holder [registrant] and the consumer, the
11-52 department shall conduct an informal dispute resolution process,
11-53 including a home inspection if appropriate, for a resolution of the
11-54 disputes. If it is possible to secure the agreement of the
11-55 parties, the department shall prepare and file with the director a
11-56 written report of the agreement.
11-57 (g) During the informal dispute resolution process, the
11-58 department shall make a preliminary determination as to the
11-59 responsibility and liability of the manufacturer, retailer, and
11-60 installer for claims determined to be valid. The license holders
11-61 [registrants] shall be afforded an opportunity to comment on the
11-62 preliminary determination under consideration by the department
11-63 before the department makes a final determination. If a license
11-64 holder [registrant] is out of business, is no longer licensed
11-65 [registered], or has filed for liquidation or reorganization in
11-66 bankruptcy, the department shall notify the license holder's
11-67 [registrant's] surety and give the license holder's [registrant's]
11-68 surety an opportunity to participate in the informal dispute
11-69 resolution process. If a license holder [registrant] or the
12-1 license holder's [registrant's] surety fails or refuses to
12-2 participate in the informal dispute resolution process after
12-3 receiving notice of the claim, the license holder [registrant] and
12-4 the license holder's [registrant's] surety are bound by the
12-5 department's final determination of responsibility and liability,
12-6 and the department may suspend or revoke the license holder's
12-7 license [registrant's certificate of registration].
12-8 (k) The provisions of this section do not apply to, and a
12-9 consumer shall not recover against the fund as a result of, any
12-10 claim against a license holder [registrant] resulting from a cause
12-11 of action directly related to the sale, lease-purchase, exchange,
12-12 brokerage or installation of a manufactured home prior to September
12-13 1, 1987.
12-14 SECTION 13. Section 14, Texas Manufactured Housing Standards
12-15 Act (Article 5221f, Vernon's Texas Civil Statutes), is amended by
12-16 amending Subsections (f) and (k) and adding Subsection (n) to read
12-17 as follows:
12-18 (f) If the manufacturer or retailer fails to provide
12-19 warranty service within the reasonable time allowed by the rules of
12-20 the director, the manufacturer or retailer must show good cause in
12-21 writing why such service was not provided. Failure to show good
12-22 cause constitutes sufficient basis for suspension or revocation of
12-23 the license [registration].
12-24 (k) If the manufacturer or retailer, or both, fails or
12-25 refuses to provide the warranty service in accordance with the
12-26 orders of the department following a home inspection, the director
12-27 shall set a hearing at which the manufacturer or retailer, or both,
12-28 shall show cause why the license [registration] should not be
12-29 suspended or revoked. If, following the hearing, the director
12-30 finds that the prior warranty service orders were correct, the
12-31 failure or refusal of the manufacturer or retailer to comply with
12-32 the orders is sufficient cause for the suspension or revocation of
12-33 the license [registration]. If the director finds that the prior
12-34 warranty service orders were incorrect in the determination of the
12-35 respective responsibilities of the manufacturer, retailer, or both,
12-36 the director shall enter a final order setting forth the correct
12-37 responsibilities and the right of either the manufacturer or
12-38 retailer to indemnification from the other. The director may also
12-39 enter an order directing the manufacturer or retailer whose license
12-40 [registration] is not revoked, or who is not out of business, to
12-41 perform the warranty service responsibilities of the retailer or
12-42 manufacturer whose license [registration] is revoked, or who is out
12-43 of business, by giving the manufacturer or retailer performing such
12-44 warranty service the right of indemnity against the other. The
12-45 manufacturer or retailer entitled to indemnification by virtue of
12-46 an order of the director pursuant to this subsection is a
12-47 "consumer" for purposes of Sections 13 and 13A of this Act and may
12-48 recover its actual damages and attorney's fees from the
12-49 manufactured homeowners' recovery fund.
12-50 (n) When a new HUD-code manufactured home is permanently
12-51 affixed to real estate, the manufacturer's certificate of origin is
12-52 canceled, and a certificate of attachment is filed in the deed
12-53 records of the county, the seller of the real estate may give the
12-54 initial purchaser a written warranty that combines the
12-55 manufacturer's warranty and the retailer's warranty required in
12-56 this section. If a combination warranty is given, the manufacturer
12-57 and retailer are not required to give separate written warranties;
12-58 however, the manufacturer and retailer are jointly liable with the
12-59 seller of the real estate to the purchaser for the performance of
12-60 their respective warranty responsibilities.
12-61 SECTION 14. Subsection (b), Section 17, Texas Manufactured
12-62 Housing Standards Act (Article 5221f, Vernon's Texas Civil
12-63 Statutes), is amended to read as follows:
12-64 (b) In addition to the injunctive relief set forth in
12-65 Section 18 of this Act, a person who fails to obtain or maintain a
12-66 license [registration] as required by this Act may be assessed a
12-67 civil penalty by the director payable to the state in an amount not
12-68 to exceed $10,000 for each violation of this Act in addition to the
12-69 reasonable attorney's fees, court costs, witness fees,
13-1 investigative costs, and deposition expenses.
13-2 SECTION 15. Subsections (d), (f), and (g), Section 18, Texas
13-3 Manufactured Housing Standards Act (Article 5221f, Vernon's Texas
13-4 Civil Statutes), are amended to read as follows:
13-5 (d) If a retailer, broker, or installer does not possess a
13-6 valid license [certificate of registration] at the time of entering
13-7 into any contract with a consumer, the contract between the
13-8 consumer and the retailer, broker, or installer is voidable within
13-9 two years from the date of the purchase of the manufactured home at
13-10 the option of the consumer. A consumer's contract for the
13-11 purchase, exchange, or lease-purchase of a new manufactured home is
13-12 also voidable within two years from the date of the purchase of the
13-13 manufactured home, if the retailer purchased the home from an
13-14 unlicensed [unregistered] manufacturer in violation of Section 6,
13-15 Subsection (h) of this Act.
13-16 (f) Notwithstanding any provisions of any other statute,
13-17 regulation, or ordinance to the contrary, a licensed [registered]
13-18 retailer or licensed [registered] installer is not required to
13-19 secure any permit, certificate, or license or pay any fee for the
13-20 transportation of manufactured housing to the place where it is to
13-21 be installed except as required by the department or by the Texas
13-22 Department of Transportation pursuant to Subchapter E, Chapter 623,
13-23 Transportation Code. The department shall cooperate with the Texas
13-24 Department of Transportation by providing current lists of licensed
13-25 [registered] manufactured housing manufacturers, retailers, and
13-26 installers.
13-27 (g) A local governmental unit or home-rule city may not
13-28 require any permit, fee, bond, or insurance for the installation of
13-29 manufactured housing by a licensed [registered] retailer or
13-30 installer except as may be approved by the department.
13-31 SECTION 16. Subsection (k), Section 19, Texas Manufactured
13-32 Housing Standards Act (Article 5221f, Vernon's Texas Civil
13-33 Statutes), is amended to read as follows:
13-34 (k) A lien on the manufactured homes in the inventory is
13-35 perfected by filing a security agreement with the department in a
13-36 form that contains the information the director requires. Once
13-37 perfected, the lien applies to the manufactured homes in the
13-38 inventory as well as to any proceeds of the sale of those homes.
13-39 Failure to pay or satisfy any inventory lien filed and recorded
13-40 against a manufactured home pursuant to the terms of the security
13-41 agreement by the retailer is sufficient cause to revoke or suspend
13-42 the retailer's license [registration] with the department.
13-43 SECTION 17. Subsection (8), Section 3, Chapter 6A, Title 79,
13-44 Revised Statutes (Article 5069-6A.03, Vernon's Texas Civil
13-45 Statutes), is amended to read as follows:
13-46 (8) In a transaction not involving real estate, no
13-47 documentary fee for the preparation of credit documents shall be
13-48 charged to the consumer and the only items [fees] which can be
13-49 charged to the consumer are those fees and taxes actually paid by
13-50 the creditor as required by law or regulation and those paid [or]
13-51 on behalf of the consumer to any governmental entity or agency as a
13-52 result of or in relation to the credit transaction.
13-53 SECTION 18. Subsection (f), Section 6, Air Conditioning and
13-54 Refrigeration Contractor License Law (Article 8861, Vernon's Texas
13-55 Civil Statutes), is amended to read as follows:
13-56 (f) This article does not apply to a person or firm that is
13-57 licensed [registered] as a manufacturer, retailer, rebuilder, or
13-58 installer and regulated pursuant to the Texas Manufactured Housing
13-59 Standards Act (Article 5221f, Vernon's Texas Civil Statutes) and
13-60 that engages exclusively in air conditioning and refrigeration
13-61 contracting for manufactured homes provided that the installation
13-62 of air conditioning components at the site where the home will be
13-63 occupied is performed by a person licensed under this Act [in the
13-64 installation of manufactured homes or in providing retailer or
13-65 manufacturer warranty services free of charge].
13-66 SECTION 19. Section 623.093, Transportation Code, is amended
13-67 to read as follows:
13-68 Sec. 623.093. Contents of Application and Permit. (a) The
13-69 application for a permit and the permit must be in the form
14-1 prescribed by the department. The permit must show:
14-2 (1) the length, width, and height of the manufactured
14-3 house and the towing vehicle in combination; and
14-4 (2) the route for the transportation of the
14-5 manufactured house.
14-6 (b) The length of the manufactured house and the towing
14-7 vehicle in combination includes the length of the hitch or towing
14-8 device. The height is measured from the roadbed to the highest
14-9 elevation of the manufactured house. The width of the house or
14-10 section includes any roof or eave extension or overhang on either
14-11 side.
14-12 (c) The route must be the shortest distance from the place
14-13 where the transportation begins in this state to the place where
14-14 the transportation ends in this state and include divided and
14-15 interstate systems, except where construction is in progress or
14-16 bridge or overpass width or height creates a safety hazard. A
14-17 county or municipality may designate to the department the route to
14-18 be used inside the territory of the county or municipality.
14-19 (d) If the manufactured home is being moved from or to a
14-20 site in this state where it has been, or will be, occupied as a
14-21 dwelling, the permit must also show:
14-22 (1) the complete serial or identification number;
14-23 (2) the HUD label or state seal number;
14-24 (3) the name of the owner of the home; and
14-25 (4) the location from which the home is being moved
14-26 and the location to which the home is being delivered.
14-27 (e) If the permit shows the additional information required
14-28 by subsection (d), the department shall send on a quarterly basis a
14-29 copy of the permit, or furnish the essential information in the
14-30 permit, to the chief appraiser of the appraisal district for each
14-31 county in which the movement begins or ends.
14-32 SECTION 20. Section 623.094, Transportation Code, is amended
14-33 to read as follows:
14-34 Sec. 623.094. [MANUFACTURER'S, RETAILER'S, AND
14-35 TRANSPORTER'S] PERMIT ISSUANCE. (a) Except as authorized by
14-36 Section 623.095, the department may issue a permit only to [a
14-37 person]:
14-38 (1) a person licensed by the Texas Department of
14-39 Housing and Community Affairs [registered] as a manufacturer, [or]
14-40 retailer, or installer [with the commissioner of licensing and
14-41 regulation]; or
14-42 (2) motor carriers registered with the department
14-43 [certificated for the transportation of a manufactured house by the
14-44 Railroad Commission of Texas or the Interstate Commerce
14-45 Commission].
14-46 (b) The license or registration number [or the certificate
14-47 number] of the person to whom the permit is issued shall be affixed
14-48 to the rear of the manufactured house during transportation and
14-49 have letters and numbers that are at least eight inches high.
14-50 SECTION 21. Section 623.095, Transportation Code, is amended
14-51 to read as follows:
14-52 Sec. 623.095. [SINGLE-TRIP] PERMIT TYPES. (a) The
14-53 department may issue a single-trip permit for the transportation of
14-54 a manufactured house to:
14-55 (1) the owner of a manufactured house if:
14-56 (A) the title to the manufactured house and the
14-57 title to the towing vehicle show that the owner of the manufactured
14-58 house and the owner of the towing vehicle are the same person; or
14-59 (B) a lease filed under Chapter 641 shows that
14-60 the owner of the manufactured house and the lessee of the towing
14-61 vehicle are the same person; or
14-62 (2) a person authorized to be issued permits by
14-63 Section 623.094 [an installer registered with the Texas Department
14-64 of Licensing and Regulation for the transportation of a
14-65 manufactured house if that transportation is excluded from
14-66 regulation under Chapter 314, Acts of the 41st Legislature, Regular
14-67 Session, 1929 (Article 911b, Vernon's Texas Civil Statutes)].
14-68 (b) A person or [An] owner [or installer] must have proof of
14-69 the insurance coverage required by Section 623.103.
15-1 (c) In lieu of a single-trip permit, the department may
15-2 issue an annual permit to any person authorized to be issued
15-3 permits by Section 623.094 for the transportation of new
15-4 manufactured homes from a manufacturing facility to a temporary
15-5 storage location not to exceed 20 miles from the point of
15-6 manufacture. A copy of the permit must be carried in the vehicle
15-7 transporting a manufactured home from the manufacturer to temporary
15-8 storage. The department may adopt rules concerning requirements
15-9 for a permit issued under this subsection.
15-10 SECTION 22. Section 623.096, Transportation Code, is amended
15-11 to read as follows:
15-12 Sec. 623.096. Permit Fee. (a) The department shall collect
15-13 a fee of $20 [$15] for each permit issued under this subchapter.
15-14 Of each fee, 30 cents shall be deposited to the credit of the state
15-15 highway fund.
15-16 (b) The department shall adopt rules concerning fees for
15-17 each annual permit issued under Section 623.095(c) at a cost not to
15-18 exceed $1,500. Two percent of any fee adopted shall be deposited
15-19 to the credit of the state highway fund [On application, the
15-20 department shall issue a permit book or packet containing 20
15-21 permits if the $15 fee for each permit in the book or packet is
15-22 received with the application].
15-23 (c) The [A permit in a book or packet may be used for the
15-24 movement of a manufactured house regardless of the manufactured
15-25 house's width, length, or height. The route approval and any
15-26 required validation number for the permit may be secured from the
15-27 issuing office by telephone communication.]
15-28 [(d) In lieu of issuing a permit book or packet, the]
15-29 department may establish an escrow account for the payment of
15-30 permit fees.
15-31 SECTION 23. (a) This Act takes effect September 1, 1997.
15-32 (b) A certificate of registration that is valid immediately
15-33 before the effective date of this Act remains valid until the
15-34 expiration date of the registration.
15-35 (c) The increase in the bond for a retailer's license
15-36 required by Section 11 of this Act is effective on September 1,
15-37 1997, for an initial license and is effective for a license holder
15-38 on the date of renewal.
15-39 SECTION 24. The importance of this legislation and the
15-40 crowded condition of the calendars in both houses create an
15-41 emergency and an imperative public necessity that the
15-42 constitutional rule requiring bills to be read on three several
15-43 days in each house be suspended, and this rule is hereby suspended.
15-44 * * * * *