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                                 * * * * *