Bill not drafted by TLC or Senate E&E.
Line and page numbers may not match official copy.
By: Harris S.B. No. 579
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the regulation of manufactured housing; providing
1-2 penalties.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 3, Texas Manufactured Housing Standards
1-5 Act (Article 5221f, Vernon's Texas Civil Statutes), is amended to
1-6 read as follows:
1-7 Sec. 3. DEFINITIONS. Whenever used in this Act, unless the
1-8 content otherwise requires, the following words and terms have the
1-9 following meanings:
1-10 (a) "Act" means the Texas Manufactured Housing Standards
1-11 Act, as amended.
1-12 (b) "Advertising" or "advertisement" means any commercial
1-13 message which promotes the sale, exchange, or lease-purchase of
1-14 manufactured homes and which appears in, or is presented on, radio,
1-15 television, a public-address system, newspapers, magazines,
1-16 leaflets, flyers, catalogs, direct mail literature, other printed
1-17 material, an inside or outside sign or window display, or in
1-18 point-of-sale literature or price tags. Materials which are
1-19 educational or that may be required by law do not constitute
1-20 advertising. Any advertisement relating to manufactured housing
1-21 shall be considered as an offer to sell, exchange, or
1-22 lease-purchase to consumers.
1-23 (c) "Alteration" means the replacement, addition, and
2-1 modification, or removal of any equipment or its installation in a
2-2 new manufactured home after sale by a manufacturer to a retailer
2-3 but prior to sale and installation by a retailer to a purchaser
2-4 which may affect the construction, fire safety, occupancy,
2-5 plumbing, heat-producing or electrical system. It includes any
2-6 modification made in the manufactured home which may affect the
2-7 compliance of the home with the standards, but it does not include
2-8 the repair or replacement of a component or appliance requiring
2-9 plug-in to an electrical receptacle where the replaced item is of
2-10 the same configuration and rating as the one being replaced. It
2-11 also does not include the addition of an appliance requiring
2-12 "plug-in" to an electrical receptacle, which appliance was not
2-13 provided with the manufactured home by the manufacturer, if the
2-14 rating of the appliance does not exceed the rating of the
2-15 receptacle to which it is connected.
2-16 (d) "Board" means the governing board of the department.
2-17 (e) "Broker" means a person engaged by one or more other
2-18 persons to negotiate or offer to negotiate bargains or contracts
2-19 for the sale, exchange, or lease-purchase of a manufactured home to
2-20 which a certificate or document of title has been issued and is
2-21 outstanding. A broker may or may not be an agent of any party
2-22 involved in the transaction. A person who maintains a location for
2-23 the display of manufactured homes is not a broker but is a
2-24 retailer. The term shall not apply if the manufactured home is
2-25 affixed to a permanent foundation, the manufacturer's certificate
3-1 or the document of title is canceled, and the home is offered as
3-2 real estate; however, the provisions of The Real Estate License Act
3-3 (Article 6573a, Vernon's Texas Civil Statutes) shall apply.
3-4 (f) "Code" means the Texas Manufactured Housing Standards
3-5 Code.
3-6 (g) "Consumer" means any person other than one registered
3-7 under this article who seeks or acquires by purchase, exchange, or
3-8 lease-purchase a manufactured home.
3-9 (h) "Department" means the Texas Department of Housing and
3-10 Community Affairs.
3-11 (i) "Director" means the executive director of the
3-12 department.
3-13 (j) "HUD-code manufactured home" means a structure
3-14 constructed on or after June 15, 1976, according to the rules of
3-15 the United States Department of Housing and Urban Development,
3-16 transportable in one or more sections, which, in the traveling
3-17 mode, is eight body feet or more in width or 40 body feet or more
3-18 in length, or, when erected on site, is 320 or more square feet,
3-19 and which is built on a permanent chassis and designed to be used
3-20 as a dwelling with or without a permanent foundation when connected
3-21 to the required utilities, and includes the plumbing, heating,
3-22 air-conditioning, and electrical systems. The term does not
3-23 include a recreational vehicle as that term is defined by 24 C.F.R.
3-24 Section 3282.8(g).
3-25 (k) "Installation," when used in reference to manufactured
4-1 housing, means the transporting of manufactured homes or
4-2 manufactured home components to the place where they will be used
4-3 by the consumer, the construction of the foundation systems,
4-4 whether temporary or permanent, and the placement and erection of a
4-5 manufactured home or manufactured home components on the foundation
4-6 system, and includes supporting, blocking, leveling, securing,
4-7 anchoring, and proper connection of multiple or expandable sections
4-8 or components, the installation of air conditioning, and minor
4-9 adjustments.
4-10 (l) "Installer" means any person, including a retailer or
4-11 manufacturer, who performs installation functions on manufactured
4-12 housing.
4-13 (m) "Label" means a device or insignia issued by the
4-14 director to indicate compliance with the standards, rules, and
4-15 regulations established by the Department of Housing and Urban
4-16 Development, and is permanently affixed to each transportable
4-17 section of each HUD-code manufactured home constructed after June
4-18 15, 1976, for sale to a consumer.
4-19 (n) "Lease-purchase" means to enter into a lease contract
4-20 with a provision conferring on the lessee an option to purchase the
4-21 manufactured home.
4-22 (o) "Manufactured housing" or "manufactured home" means a
4-23 HUD-code manufactured home or a mobile home and collectively means
4-24 and refers to both.
4-25 (p) "Manufacturer" means any person who constructs or
5-1 assembles manufactured housing for sale, exchange, or
5-2 lease-purchase within the state.
5-3 (q) "Mobile home" means a structure that was constructed
5-4 before June 15, 1976, transportable in one or more sections, which,
5-5 in the traveling mode, is eight body feet or more in width or 40
5-6 body feet or more in length, or, when erected on site, is 320 or
5-7 more square feet, and which is built on a permanent chassis and
5-8 designed to be used as a dwelling with or without a permanent
5-9 foundation when connected to the required utilities, and includes
5-10 the plumbing, heating, air-conditioning, and electrical systems.
5-11 (r) "Person" means an individual, partnership, company,
5-12 corporation, association, or other group, however organized.
5-13 (s) "Registrant" means any person who has registered with
5-14 the department and has been issued a certificate of registration as
5-15 a manufactured housing manufacturer, retailer, broker, salesperson,
5-16 or installer.
5-17 (t) "Retailer" means any person engaged in the business of
5-18 buying for resale, selling, or exchanging manufactured homes or
5-19 offering such for sale, exchange, or lease-purchase to consumers.
5-20 No person shall be considered a retailer unless engaged in the
5-21 sale, exchange, or lease-purchase of two or more manufactured homes
5-22 to consumers in any consecutive 12-month period.
5-23 (u) "Salesperson" means any person who for any form of
5-24 compensation sells or lease-purchases or offers to sell or
5-25 lease-purchase manufactured housing to consumers as an employee or
6-1 agent of a retailer or broker.
6-2 (v) "Seal" means a device or insignia issued by the director
6-3 to be affixed to used manufactured homes for titling purposes, as
6-4 required by the director. The seal shall remain the property of the
6-5 department.
6-6 [(1) "Mobile home" means a structure that was
6-7 constructed before June 15, 1976, transportable in one or more
6-8 sections, which, in the traveling mode, is eight body feet or more
6-9 in width or 40 body feet or more in length, or, when erected on
6-10 site, is 320 or more square feet, and which is built on a permanent
6-11 chassis and designed to be used as a dwelling with or without a
6-12 permanent foundation when connected to the required utilities, and
6-13 includes the plumbing, heating, air-conditioning, and electrical
6-14 systems.]
6-15 [(2) "Retailer" means any person engaged in the
6-16 business of buying for resale, selling, or exchanging manufactured
6-17 homes or offering such for sale, exchange, or lease-purchase to
6-18 consumers. No person shall be considered a retailer unless engaged
6-19 in the sale, exchange, or lease-purchase of two or more
6-20 manufactured homes to consumers in any consecutive 12-month period.]
6-21 [(3) "Manufacturer" means any person who constructs or
6-22 assembles manufactured housing for sale, exchange, or
6-23 lease-purchase within the state.]
6-24 [(4) "Department" means the Texas Department of Housing
6-25 and Community Affairs.]
7-1 [(5) "Person" means an individual, partnership,
7-2 company, corporation, association, or other group, however
7-3 organized.]
7-4 [(6) "Broker" means a person engaged by one or more
7-5 other persons to negotiate or offer to negotiate bargains or
7-6 contracts for the sale, exchange, or lease-purchase of a
7-7 manufactured home to which a certificate or document of title has
7-8 been issued and is outstanding. A broker may or may not be an
7-9 agent of any party involved in the transaction. A person who
7-10 maintains a location for the display of manufactured homes is not a
7-11 broker but is a retailer. The term shall not apply if the
7-12 manufactured home is affixed to a permanent foundation, the
7-13 manufacturer's certificate or the document of title is canceled,
7-14 and the home is offered as real estate; however, the provisions of
7-15 The Real Estate License Act (Article 6573a, Vernon's Texas Civil
7-16 Statutes) shall apply.]
7-17 [(7) "Consumer" means any person other than one
7-18 registered under this article who seeks or acquires by purchase,
7-19 exchange, or lease-purchase a manufactured home.]
7-20 [(8) "Seal" means a device or insignia issued by the
7-21 director to be affixed to used manufactured homes for titling
7-22 purposes, as required by the director. The seal shall remain the
7-23 property of the department.]
7-24 [(9) "Label" means a device or insignia issued by the
7-25 director to indicate compliance with the standards, rules, and
8-1 regulations established by the Department of Housing and Urban
8-2 Development, and is permanently affixed to each transportable
8-3 section of each HUD-code manufactured home constructed after June
8-4 15, 1976, for sale to a consumer.]
8-5 [(10) "Installation," when used in reference to
8-6 manufactured housing, means the transporting of manufactured homes
8-7 or manufactured home components to the place where they will be
8-8 used by the consumer, the construction of the foundation systems,
8-9 whether temporary or permanent, and the placement and erection of a
8-10 manufactured home or manufactured home components on the foundation
8-11 system, and includes supporting, blocking, leveling, securing,
8-12 anchoring, and proper connection of multiple or expandable sections
8-13 or components, the installation of air conditioning, and minor
8-14 adjustments.]
8-15 [(11) "Installer" means any person, including a
8-16 retailer or manufacturer, who performs installation functions on
8-17 manufactured housing.]
8-18 [(12) "Alteration" means the replacement, addition, and
8-19 modification, or removal of any equipment or its installation in a
8-20 new manufactured home after sale by a manufacturer to a retailer
8-21 but prior to sale and installation by a retailer to a purchaser
8-22 which may affect the construction, fire safety, occupancy,
8-23 plumbing, heat-producing or electrical system. It includes any
8-24 modification made in the manufactured home which may affect the
8-25 compliance of the home with the standards, but it does not include
9-1 the repair or replacement of a component or appliance requiring
9-2 plug-in to an electrical receptacle where the replaced item is of
9-3 the same configuration and rating as the one being replaced. It
9-4 also does not include the addition of an appliance requiring
9-5 "plug-in" to an electrical receptacle, which appliance was not
9-6 provided with the manufactured home by the manufacturer, if the
9-7 rating of the appliance does not exceed the rating of the
9-8 receptacle to which it is connected.]
9-9 [(13) "Lease-purchase" means to enter into a lease
9-10 contract with a provision conferring on the lessee an option to
9-11 purchase the manufactured home.]
9-12 [(14) "Director" means the executive director of the
9-13 department.]
9-14 [(15) "Code" means the Texas Manufactured Housing
9-15 Standards Code.]
9-16 [(16) "Salesperson" means any person who for any form
9-17 of compensation sells or lease-purchases or offers to sell or
9-18 lease-purchase manufactured housing to consumers as an employee or
9-19 agent of a retailer or broker.]
9-20 [(17) "Manufactured housing" or "manufactured home"
9-21 means a HUD-code manufactured home or a mobile home and
9-22 collectively means and refers to both.]
9-23 [(18) "Registrant" means any person who has registered
9-24 with the department and has been issued a certificate of
9-25 registration as a manufactured housing manufacturer, retailer,
10-1 broker, salesperson, or installer.]
10-2 [(19) "HUD-code manufactured home" means a structure,
10-3 constructed on or after June 15, 1976, according to the rules of
10-4 the United States Department of Housing and Urban Development,
10-5 transportable in one or more sections, which, in the traveling
10-6 mode, is eight body feet or more in width or 40 body feet or more
10-7 in length, or, when erected on site, is 320 or more square feet,
10-8 and which is built on a permanent chassis and designed to be used
10-9 as a dwelling with or without a permanent foundation when connected
10-10 to the required utilities, and includes the plumbing, heating,
10-11 air-conditioning, and electrical systems. The term does not
10-12 include a recreational vehicle as that term is defined by 24 C.F.R.
10-13 Section 3282.8(g).]
10-14 [(20) "Advertising" or "advertisement" means any
10-15 commercial message which promotes the sale, exchange, or
10-16 lease-purchase of manufactured homes and which appears in, or is
10-17 presented on, radio, television, a public-address system,
10-18 newspapers, magazines, leaflets, flyers, catalogs, direct mail
10-19 literature, other printed material, an inside or outside sign or
10-20 window display, or in point-of-sale literature or price tags.
10-21 Materials which are educational or that may be required by law do
10-22 not constitute advertising. Any advertisement relating to
10-23 manufactured housing shall be considered as an offer to sell,
10-24 exchange, or lease-purchase to consumers.]
10-25 [(21) "Board" means the governing board of the
11-1 department.]
11-2 SECTION 2. Section 3A, Texas Manufactured Housing Standards
11-3 Act (Article 5221f, Vernon's Texas Civil Statutes), is amended to
11-4 read as follows:
11-5 Sec. 3A. Definitions Binding. The definitions of "mobile
11-6 home," "HUD-code manufactured home," and "manufactured housing" set
11-7 forth in Section 3 of this article are binding on all persons and
11-8 agencies in this state as a matter of law including local political
11-9 subdivisions and home-rule cities. A mobile home is not a HUD-code
11-10 manufactured home and a HUD-code manufactured home is not a mobile
11-11 home for any purpose under the laws of this state. These terms
11-12 shall not be defined in any manner which is not identical to the
11-13 definitions set forth in Section 3 of this Act.
11-14 SECTION 3. Section 4, Texas Manufactured Housing Standards
11-15 Act (Article 5221f, Vernon's Texas Civil Statutes), is amended by
11-16 amending Subsections (f), (g), (h) and (i) to read as follows:
11-17 (f) All manufactured housing must be installed in compliance
11-18 with the standards, rules, regulations, or administrative orders of
11-19 the director. The department shall establish an inspection program
11-20 whereby at least twenty five percent of the manufactured homes
11-21 installed are inspected on a random sample basis for compliance.
11-22 No manufactured home constructed on or after July 13, 1994, shall
11-23 be installed in Wind Zone II unless the home was designed and
11-24 constructed to meet or exceed federal construction and safety
11-25 standards for Wind Zone II which became effective on that date.
12-1 The following counties are in Wind Zone II: Aransas, Brazoria,
12-2 Calhoun, Cameron, Chambers, Galveston, Jefferson, Kenedy, Kleberg,
12-3 Matagorda, Nueces, Orange, Refugio, San Patricio, Willacy. All
12-4 other counties are in Wind Zone I. Purchasers of used manufactured
12-5 homes constructed prior to July 13, 1994, must be given a notice by
12-6 the selling retailer that the home was constructed prior to the
12-7 effective date of the increased federal construction and safety
12-8 standards for hurricane zones, and that the purchaser may not be
12-9 allowed to install the home in Wind Zone II. All manufactured
12-10 homes installed in Wind Zone II before September 1, 1997, shall be
12-11 permitted to remain, and be relocated and installed, in Wind Zone
12-12 II.
12-13 (g) A local governmental unit of this state, without the
12-14 express approval of the board following a hearing on the matter,
12-15 may not adopt different standards from those promulgated by the
12-16 director for the construction or installation of manufactured
12-17 housing within the local governmental unit. The local governmental
12-18 unit must show good cause by substantial evidence that the public
12-19 health and safety require the different standards.
12-20 (h) Before the adoption or promulgation of any standards or
12-21 requirements authorized by this section, any change in or addition
12-22 to the standards authorized in this section, or the approval of
12-23 different standards by any local governmental unit, the director
12-24 shall publish a notice and conduct a public hearing pursuant to the
12-25 provisions of Section 9 of this Act [in accordance with Chapter
13-1 2001, Government Code, not sooner than the 30th day following the
13-2 publication of notice].
13-3 (i) Every requirement or standard or modification,
13-4 amendment, or repeal of a requirement or standard adopted by the
13-5 director shall state the date it shall take effect pursuant to the
13-6 provisions of Section 9 of this Act.
13-7 SECTION 4. Section 6, Texas Manufactured Housing Standards
13-8 Act (Article 5221f, Vernon's Texas Civil Statutes), is amended by
13-9 amending Subsections (e), (f), (g), and (h) and by adding
13-10 Subsection (l) to read as follows:
13-11 (e) It is unlawful for a manufacturer to sell, exchange, or
13-12 lease-purchase or offer to sell, exchange, or lease-purchase a
13-13 manufactured home to any person in the state other than a licensed
13-14 [registered] retailer.
13-15 (f) A person may not make any announcement concerning the
13-16 sale, exchange, or lease-purchase of, nor offer to sell, exchange,
13-17 or lease-purchase, a manufactured home to consumers in this state
13-18 through any form of advertising unless such person is a duly
13-19 licensed [registered] manufacturer, retailer, or broker. This
13-20 prohibition against advertising shall not apply to a person to whom
13-21 a certificate or document of title has been issued showing such
13-22 person to be the owner of the home, provided that such person does
13-23 not offer to sell, exchange, or lease-purchase two or more
13-24 manufactured homes in any consecutive 12-month period. This
13-25 prohibition also shall not apply to the advertising of real estate
14-1 on which a manufactured home has been permanently attached and
14-2 affixed.
14-3 (g) It is unlawful for a retailer to purchase for resale to
14-4 a consumer, or to sell, exchange, or lease-purchase or offer to
14-5 sell, exchange, or lease-purchase, any new HUD-code manufactured
14-6 home which was constructed by a manufacturer which was not licensed
14-7 [registered] with the department at the time of construction.
14-8 (h) It is unlawful for a person to sell, convey, or
14-9 otherwise transfer to a consumer in this state a salvaged
14-10 manufactured home as such term is defined in Section 8 of this
14-11 article. A salvaged manufactured home may only be sold to a
14-12 licensed [registered] retailer or licensed [registered] rebuilder.
14-13 (l) It is unlawful for a salesperson to aid or assist a
14-14 consumer in preparing or in providing any false or misleading
14-15 information on any document related to the purchase or financing of
14-16 a manufactured home or for a salesperson to submit any information
14-17 known to be false or misleading to a retailer or to a credit
14-18 underwriter.
14-19 SECTION 5. Section 7, Texas Manufactured Housing Standards
14-20 Act (Article 5221f, Vernon's Texas Civil Statutes), is amended to
14-21 read as follows:
14-22 Sec. 7. (a) A person may not construct or assemble a new
14-23 HUD-code manufactured home in the state or ship a new HUD-code
14-24 manufactured home into the state, unless the person is licensed
14-25 [registered] as a manufactured housing manufacturer with the
15-1 department and possesses a valid manufacturer's license
15-2 [certificate of registration] at the time the home is constructed
15-3 or assembled.
15-4 (b) Except as otherwise expressly provided in this article,
15-5 a person may not sell, exchange, lease-purchase, or offer to sell,
15-6 exchange, or lease-purchase two or more manufactured homes to
15-7 consumers in the state in any consecutive 12-month period, unless
15-8 the person possesses a valid manufactured housing retailer's
15-9 license [certificate of registration].
15-10 (c) A person may not offer to negotiate or negotiate for
15-11 others a bargain or contract for the sale, exchange, or
15-12 lease-purchase of two or more manufactured homes to consumers in
15-13 the state in any 12-month period, unless the person possesses a
15-14 valid manufactured housing broker's license [certificate of
15-15 registration].
15-16 (d) A person may not perform any installation function on
15-17 manufactured housing in the state, unless the person possesses a
15-18 valid installer's license [certificate of registration] and files
15-19 proof of insurance as required by the director. The director may
15-20 issue a temporary installer's license [certificate of registration]
15-21 to a homeowner for the installation of the owner's home in
15-22 accordance with applicable requirements, standards, and regulations
15-23 of the director, on application and payment of the required fee and
15-24 on submission of proof of insurance by the owner as required by the
15-25 department.
16-1 (e) Each applicant for a license [certificate of
16-2 registration] as a manufacturer, retailer, broker, or installer
16-3 must file with the director an application for a license
16-4 [registration] containing the following information:
16-5 (1) the legal name, address, and telephone number of
16-6 the applicant;
16-7 (2) the trade name by which the applicant does
16-8 business and, if incorporated, the name registered with the
16-9 secretary of state and the address of the business; and
16-10 (3) the dates on which the applicant became the owner
16-11 and operator of the business.
16-12 (f) Each application for a license [certificate of
16-13 registration] must be accompanied by proof of the security required
16-14 by this Act and payment of the required fee for the issuance of the
16-15 certificate.
16-16 (g) All licenses [certificates of registration] are valid
16-17 for one year and are renewable as provided by the director.
16-18 (h) (repealed effective September 1, 1989)
16-19 (i) If a change occurs in the information filed with the
16-20 director under Subsection (e) of this section, the applicant shall
16-21 file an amendment to his or her application that states the correct
16-22 information.
16-23 (j) While acting as an agent for a licensee [registrant], an
16-24 employee is covered by the business entity's license [certificate
16-25 of registration] and is not required to be individually licensed
17-1 [registered]. An independent contractor or business entity may not
17-2 operate under the license [certificate of registration] of another
17-3 business entity except as an agent or subcontractor of a licensed
17-4 [registered] installer who shall remain fully responsible for all
17-5 installation functions performed by such agent as subcontractor
17-6 except as provided in Subsection (m) of this section.
17-7 (k) The director, after notice and hearing pursuant to the
17-8 provisions of Section 9 of this Act, may refuse to issue or may
17-9 permanently revoke, or suspend for a definite period of time and
17-10 for a specified geographic area or sales location, any license
17-11 [certificate of registration] if the director finds that the
17-12 applicant or licensee [registrant]:
17-13 (1) knowingly and wilfully violated any provision of
17-14 this Act [article] or any rule, administrative order, or regulation
17-15 made pursuant to this Act;
17-16 (2) without lawful authorization retained or converted
17-17 any money, property, or any other thing of value from consumers in
17-18 the form of down payments, sales and use taxes, deposits, or
17-19 insurance premiums;
17-20 (3) failed to deliver proper title documents or
17-21 certificates of title to consumers;
17-22 (4) failed to give or breached any manufactured home
17-23 warranty required by this Act or by the Federal Trade Commission;
17-24 (5) engaged in any false, misleading, or deceptive
17-25 acts or practices as the term is set forth in and as those acts are
18-1 declared unlawful by the provisions of Chapter 17, Subchapter E,
18-2 Business & Commerce Code;
18-3 (6) failed to furnish or file any reports required by
18-4 the department for the administration and enforcement of this Act;
18-5 (7) furnished false information on any application,
18-6 report, or other document filed with the department;
18-7 (8) has a record of criminal convictions within the
18-8 five years preceding the date of the application that, in the
18-9 opinion of the director, renders the applicant unfit for licensing
18-10 [registration]; or
18-11 (9) failed to file the bond or post other security for
18-12 each location as required by Section 13 of this Act.
18-13 (l) The director shall conduct any hearing involving the
18-14 denial, renewal, revocation or suspension of a license [certificate
18-15 of registration] in accordance with Chapter 2001, Government Code.
18-16 (m) A retailer or an installer may not contract with any
18-17 person for the installation of any air-conditioning equipment,
18-18 devices, or components in connection with the installation of a
18-19 manufactured home unless the person is licensed [registered] as an
18-20 installer with the department or is otherwise licensed by the state
18-21 as an air-conditioning contractor. This subsection shall not apply
18-22 to a new manufactured home being installed on a permanent
18-23 foundation within a municipality which regulates air-conditioning
18-24 contractors unless some other state statute provides otherwise.
18-25 (n) A person may not act as a salesperson of manufactured
19-1 housing unless the person is licensed [registered] with the
19-2 department. Each applicant for a salesperson's license
19-3 [certificate of registration] shall file with the director an
19-4 application giving such information as the director deems necessary
19-5 and pay the required fee. The owner of a sole proprietorship, a
19-6 partner in a partnership, or an officer of a corporation which is
19-7 duly licensed [registered] as a retailer or broker does not have to
19-8 apply for licensing [register] as a salesperson so long as such
19-9 individual is properly listed in the retailer's or broker's
19-10 application for license [registration]. The salesperson is the
19-11 agent of the retailer or broker. The license [registration] shall
19-12 be an annual license [registration]. A retailer or broker shall
19-13 not employ, retain, or otherwise use the services of a salesperson
19-14 who is not licensed [registered]. A licensed [registered]
19-15 salesperson may work or sell for one or more retailers, brokers, or
19-16 sales locations.
19-17 (o) A person may not alter, repair, or otherwise rebuild a
19-18 salvaged manufactured home, as such term is defined in Section 8 of
19-19 this Act, unless the person is duly licensed [registered] with the
19-20 department as a manufactured home rebuilder or retailer and unless
19-21 the person complies with the rules and regulations of the director
19-22 relating to the rebuilding of salvaged manufactured homes.
19-23 (p) Any person not licensed or [registered] with the
19-24 department or a predecessor agency as of September 1, 1987, must
19-25 attend and complete twenty (20) hours of instruction in the law and
20-1 consumer protection regulations as a prerequisite for a license
20-2 [prior to any registration]. The instruction shall be given not
20-3 less than one time each quarter. No test shall be made a
20-4 prerequisite of licensing [registration], but actual attendance at
20-5 the instruction sessions is required. The director shall not issue
20-6 a license [registration] until the instruction is completed. This
20-7 subsection does not apply to a registrant making application to
20-8 license [register] additional business locations, to renew or
20-9 reinstate a license, or to make application for licensing
20-10 [register] as a salesperson. In lieu of this instruction
20-11 requirement, a manufacturer may request that a one-day, in-plant
20-12 training session be presented by an authorized representative of
20-13 the department. The manufacturer shall reimburse the department
20-14 for the actual costs of the training session.
20-15 (q) Notwithstanding any provision of this Act to the
20-16 contrary, any state or national bank, state or federal savings and
20-17 loan association or federal savings bank, or state or federal
20-18 credit union engaged in the business of selling or offering for
20-19 sale, exchange, or lease-purchase manufactured homes that the
20-20 institution has acquired as a result of repossession of its
20-21 collateral is not required to attend any school or file any bond or
20-22 post other security in order to be licensed [registered] as a
20-23 retailer.
20-24 (r) In lieu of the instruction requirements imposed under
20-25 Subsection (p) of this section, the director may recognize and
21-1 approve a one-day training program for installers that is conducted
21-2 in the field by a private institution or other person.
21-3 (s) A license shall be renewed if the renewal application
21-4 and payment of the annual fee are received by the department prior
21-5 to the date on which the license expires. The renewal license
21-6 shall expire in the following year on the same day and month as the
21-7 license being renewed. If the department needs additional
21-8 information for the renewal application or verification of the
21-9 continuing insurance or bond coverage, the licensee shall have
21-10 twenty days following the receipt of notice from the department to
21-11 furnish the requested information or verification.
21-12 SECTION 6. Section 7A, Texas Manufactured Housing Standards
21-13 Act (Article 5221f, Vernon's Texas Civil Statutes), is amended to
21-14 read as follows:
21-15 Sec. 7A. [CONTINUING] EDUCATION PROGRAMS. The director may
21-16 recognize, prepare, or administer certification programs and
21-17 continuing education programs for persons regulated under this Act.
21-18 Participation in the programs is voluntary. The director shall
21-19 issue appropriate certificates to those persons who complete the
21-20 certification program or who participate in the continuing
21-21 education program.
21-22 SECTION 7. Section 8, Texas Manufactured Housing Standards
21-23 Act (Article 5221f, Vernon's Texas Civil Statutes), is amended to
21-24 read as follows:
21-25 Sec. 8. Used Homes. (a) A person may not sell, exchange,
22-1 or lease-purchase or negotiate for the sale, exchange, or
22-2 lease-purchase of a used manufactured home to a consumer unless the
22-3 appropriate seal or label is affixed to it. If the used
22-4 manufactured home does not have a seal or label, the person must
22-5 apply to the department for a seal and pay the fee.
22-6 (b) Except as provided in this section, it [It] is unlawful
22-7 for a person to sell, exchange, or lease-purchase any used
22-8 manufactured home to a consumer for use as a dwelling or residence
22-9 without giving a written warranty that the manufactured home is
22-10 habitable. The consumer has 90 [60] days after the date of the
22-11 sale, exchange, or lease-purchase agreement to notify the seller in
22-12 writing of any defects that make the home uninhabitable. Failure
22-13 to give this required notice terminates any obligations and
22-14 liabilities of the seller under this section. The warranty must
22-15 conspicuously disclose this requirement to the consumer. [If the
22-16 sale, exchange, or lease-purchase is to a purchaser for the
22-17 purchaser's business use, the manufactured home need not be
22-18 habitable; however, the title to the home shall be surrendered to
22-19 the department for cancellation by the seller. "Business use"
22-20 means any use other than for a dwelling or residence.]
22-21 (c) For purposes of all provisions of this Act or other laws
22-22 of this state the term "habitable" as applied to manufactured
22-23 housing is limited to and means that there is no defect, damage, or
22-24 deterioration to the home which creates a dangerous or unsafe
22-25 situation or condition; that the plumbing, heating, and electrical
23-1 systems are in safe working order; that the walls, floor, and roof
23-2 are free from any substantial openings not designed and are
23-3 structurally sound; and that all exterior doors and windows are in
23-4 place.
23-5 (d) It is unlawful for a person to sell, exchange, or
23-6 lease-purchase a used manufactured home to any person without the
23-7 appropriate transfer of good and marketable title to the home
23-8 except when the sale, exchange, or lease-purchase is [(1) to a
23-9 purchaser for the purchaser's business use, or (2)] to a rebuilder
23-10 for the purpose of rebuilding a salvaged manufactured home. The
23-11 seller or transferor shall forward to the department properly
23-12 completed documents for the transfer of title within 30 days after
23-13 the date the transfer of ownership is effective.
23-14 (e) A used manufactured home which is not habitable may be
23-15 sold to a consumer "as is" provided that the consumer is given a
23-16 conspicuous written notice prior to the execution of a binding
23-17 contract or agreement which contains the definition of the term
23-18 "habitable" along with the following notice: "Notice: This home is
23-19 not habitable. There may be defects, damage, or deterioration to
23-20 the systems and to the structure." [The purchaser of a used
23-21 manufactured home for business use shall not sell, exchange, or
23-22 lease-purchase the home for use as a dwelling or residence unless a
23-23 new title to the used manufactured home is issued by the director.
23-24 The purchaser may apply to the department for the issuance of a new
23-25 title. The department shall then inspect the home, and if it is
24-1 determined that the home is habitable, issue a new title].
24-2 (f) A holder of a lien recorded on a manufactured home
24-3 document of title issued by the department who sells, exchanges, or
24-4 transfers by a lease-purchase a repossessed manufactured home
24-5 covered by such document of title is not required to comply with
24-6 the provisions of this Act, provided that the sale, exchange, or
24-7 transfer by a lease-purchase is [(1)] to or through a registered
24-8 retailer[, or (2) to a purchaser for the purchaser's business use.
24-9 If the sale, exchange, or lease-purchase is to a purchaser for the
24-10 purchaser's business use, the holder of the lien shall surrender
24-11 the title to the department for cancellation]. If the sale,
24-12 exchange, or lease-purchase is to or through a registered retailer,
24-13 the retailer is responsible and liable for compliance with the
24-14 provisions of this Act and all rules and regulations of the
24-15 department, and the holder of the lien shall not be joined as a
24-16 party in any litigation arising in connection with, or relating to,
24-17 the sale, exchange, or lease-purchase of the repossessed
24-18 manufactured home.
24-19 (g) For the purposes of this Act, a "salvaged" manufactured
24-20 home means a manufactured home obtained by a property and casualty
24-21 insurer from the insured by reason of the insurer's payment of the
24-22 policy value written on the home to the insured. The
24-23 reasonableness of the insurer's judgment that the costs of repair
24-24 to the home would exceed the insured value of the home does not
24-25 affect the status of the home as salvage. The person possessing
25-1 the original document of title to a salvaged manufactured home must
25-2 surrender such document of title to the director for cancellation
25-3 of the title and issuance of a salvage title. If the manufactured
25-4 home is rebuilt in accordance with the provisions of this Act and
25-5 the rules and regulations of the director, the director shall
25-6 issue, upon proper application, a new original document of title in
25-7 lieu of the salvage title.
25-8 (h) [Notwithstanding any provisions of this section to the
25-9 contrary, the director, following a written application by the
25-10 purchaser or transferee, may expressly authorize in writing a
25-11 registered retailer to sell or exchange a used manufactured home
25-12 which is not or may not be habitable to or with governmental
25-13 housing agencies or authorities or to nonprofit organizations
25-14 providing housing for the homeless. As a part of the application
25-15 the purchaser or transferee must certify to the receipt of a
25-16 written notice that the home is not or may not be habitable. The
25-17 form of such written notice shall be prepared by the consumer
25-18 protection division of the attorney general's office and approved
25-19 by the director. The purchaser or transferee shall not occupy the
25-20 home or allow the home to be occupied as a residence or dwelling
25-21 until such time as any necessary repairs to make the home habitable
25-22 have been completed.]
25-23 [(i)] A tax collector is not required to comply with this
25-24 section or other sections of this Act relating to the sale of a
25-25 used manufactured home in relation to the sale of a manufactured
26-1 home for the collection of delinquent taxes. If a manufactured
26-2 home does not have a serial number, seal, or label, the tax
26-3 collector may apply to the department for a seal, pay the
26-4 applicable fee, and recover that fee as part of the cost of the
26-5 sale of the manufactured home. The seal issued to the tax
26-6 collector is for identification purposes only and may not be
26-7 construed to imply that:
26-8 (1) the home is habitable; or
26-9 (2) the purchaser of the home at a tax sale may obtain
26-10 a title document from the department without an inspection for
26-11 habitability.
26-12 SECTION 8. Section 9, Texas Manufactured Housing Standards
26-13 Act (Article 5221f, Vernon's Texas Civil Statutes), is amended by
26-14 amending Subsections (d), (e), (f), (g), and (m) to read as
26-15 follows:
26-16 (d) In this section the words "rule" or "rules" mean and
26-17 refer to all standards, requirements, regulations, orders, and
26-18 statements of general applicability which implement, interpret, or
26-19 prescribe law or policy or which describe the procedures or
26-20 practices of the department. Internal management operating
26-21 procedures which prescribe the use of particular forms or which
26-22 affect the private rights or procedures of licensees or consumers
26-23 are also rules. Administrative orders which are not of general
26-24 applicability but are directed to specific licensees relating to
26-25 warranties, the correction of defects and compliance with the law
27-1 and regulations are not rules [At least 30 days before the adoption
27-2 or promulgation of any change in or addition to the rules and
27-3 regulations authorized in Subsections (b) and (c) of this section,
27-4 the director shall publish in the Texas Register a notice
27-5 including:]
27-6 [(1) a copy of the proposed changes and additions; and]
27-7 [(2) the time and place that the director will
27-8 consider any objections to the proposed changes and additions].
27-9 (e) All rules shall be promulgated and adopted in accordance
27-10 with Chapter 2001, Government Code, and with the provisions of this
27-11 section [After giving the notice required by Subsection (d) of this
27-12 section, the director shall afford interested persons an
27-13 opportunity to participate in the rule-making through submission of
27-14 written data, views, or arguments with the opportunity to present
27-15 the same orally on any matter].
27-16 (f) All proposed rules, amendments to rules, and repeal of
27-17 rules shall be published in the Texas Register not less than 30
27-18 days prior to the date of a public hearing set to consider the
27-19 testimony of interested persons. Notice of the time and place of
27-20 the public hearing shall be published in the Texas Register not
27-21 less than 30 days prior to the date of the hearing. The director
27-22 shall also afford interested persons the opportunity to participate
27-23 in the rule-making process through the submission of written data
27-24 and statements of support or opposition [Every rule or regulation
27-25 or modification, amendment, or repeal of a rule or regulation
28-1 adopted by the director shall state the date it shall take effect].
28-2 (g) All rules, amendments to rules, and repeal of rules as
28-3 finally adopted shall be published in the Texas Register along with
28-4 the date on which they shall be effective. The effective date of
28-5 all rules relating to installation standards shall be not less than
28-6 60 days following the publication of notice that the rules have
28-7 been adopted. All other rules shall be effective pursuant to the
28-8 provisions of Chapter 2001, Government Code, or such later date as
28-9 published [Immediately after their promulgation, the director shall
28-10 publish in the Texas Register all rules and regulations or
28-11 amendments thereto].
28-12 (m) In order to protect the public health, safety, and
28-13 welfare, and to assure the availability of low cost manufactured
28-14 housing for all consumers, the director shall establish rules and
28-15 regulations for the protection of the interests of consumers who
28-16 occupy or desire to purchase or install manufactured housing and
28-17 for the business conduct of those persons required to be licensed
28-18 [registered] under this Act.
28-19 SECTION 9. Section 11, Texas Manufactured Housing Standards
28-20 Act (Article 5221f, Vernon's Texas Civil Statutes), is amended by
28-21 amending Subsections (c) and (d) to read as follows:
28-22 (c) The board shall set fees for the issuance and renewal of
28-23 manufacturers', retailers', brokers', salespersons', and
28-24 installers' licenses [certificates of registration]; and fees for
28-25 the issuance of rebuilder licenses [registrations].
29-1 (d) A fee shall be set and charged to each person attending
29-2 the course of instruction in the law and consumer protection
29-3 regulations for applicants for licenses [registrations].
29-4 SECTION 10. Section 13, Texas Manufactured Housing Standards
29-5 Act (Article 5221f, Vernon's Texas Civil Statutes), is amended by
29-6 amending Subsections (a), (f), (g), (h), and (i) to read as
29-7 follows:
29-8 Sec. 13. (a) The department may not issue or renew a
29-9 license [certificate of registration] unless a surety bond or other
29-10 security in the form prescribed by the director is filed with the
29-11 department as provided by this section.
29-12 (f) A manufacturer shall be bonded or post other security in
29-13 the amount of $100,000. A retailer shall be bonded or post other
29-14 security in the amount of $100,000 [$30,000]. A broker shall be
29-15 bonded or post other security in the amount of $20,000. An
29-16 installer shall be bonded or post other security in the amount of
29-17 $10,000. A rebuilder shall be bonded or post other security in the
29-18 amount of $30,000. In order to assure the availability of prompt
29-19 and satisfactory warranty service, a manufacturer, which does not
29-20 have a licensed [registered] manufacturing plant or other facility
29-21 in this state from which warranty service and repairs can be
29-22 provided and made, shall be bonded or post other security in an
29-23 additional amount of $100,000. A retailer holding a valid license
29-24 [certificate of registration] shall not be required to be bonded or
29-25 file any security to secure a license [certificate of registration]
30-1 as a broker or an installer. A new bond shall not be required for
30-2 any change of ownership of a corporation licensed [registered] with
30-3 the department nor for any change of a location; however, a proper
30-4 endorsement of the original bond may be required by the director.
30-5 (g) The bonding company must provide written notification to
30-6 the director at least 60 days prior to the cancellation of a surety
30-7 bond required by this section. Any other security on file with the
30-8 department shall remain on file and be maintained for two years
30-9 after the person ceases business as a manufacturer, retailer,
30-10 broker, rebuilder, or installer or at such later time as the
30-11 director may determine that no claims exist against the security.
30-12 (h) If a bond is canceled, the license [certificate of
30-13 registration] is suspended on the effective date of cancellation.
30-14 If a surety files for liquidation or reorganization in bankruptcy
30-15 or is placed in receivership, the licensee [registrant] is entitled
30-16 to 60 days from the date notice of the filing or receivership was
30-17 received to obtain other security. If the required face amount of
30-18 any other security is impaired by the payment of a claim, the
30-19 licensee [registrant] is entitled to 60 days to restore the
30-20 security to its required face value.
30-21 (i) Subject to the limitations in this section, the bond or
30-22 other security is liable for, and shall reimburse the recovery fund
30-23 under Section 13A of this Act, the amount of any claim paid out of
30-24 the fund by the director to a consumer that resulted from an act or
30-25 omission of the licensee [registrant] who filed the bond or other
31-1 security. Payment by the surety or from the other security shall
31-2 be made not later than the 30th day from the date of receipt of
31-3 notice from the director that a consumer claim has been paid. If
31-4 for any reason the surety or other security fails to make timely
31-5 payment of a claim to the fund, the attorney general shall file
31-6 suit for recovery of the amount due the fund. Venue for the suit is
31-7 in Travis County.
31-8 SECTION 11. Section 13A, Texas Manufactured Housing
31-9 Standards Act (Article 5221f, Vernon's Texas Civil Statutes), is
31-10 amended by amending Subsections (e), (f), (g), and (k) to read as
31-11 follows:
31-12 (e) Subject to the limitations of Section 13 of this Act and
31-13 of this section, the fund shall be used to compensate consumers who
31-14 sustain actual damages resulting from unsatisfied claims against a
31-15 manufacturer, retailer, broker, or installer licensed [registered]
31-16 with the department if the claims resulted from a violation of:
31-17 (1) this Act;
31-18 (2) a rule issued by the director;
31-19 (3) the National Manufactured Housing Construction and
31-20 Safety Standards Act;
31-21 (4) the rules and regulations of the United States
31-22 Department of Housing and Urban Development; or
31-23 (5) the Deceptive Trade Practices-Consumer Protection
31-24 Act, Section 17.41 et seq., Business & Commerce Code.
31-25 (f) The consumer must file a verified written complaint in
32-1 the form required by the director not later than the second
32-2 anniversary of the date of the alleged act or omission causing the
32-3 actual damages, or the second anniversary of the date the act or
32-4 omission is discovered or should reasonably have been discovered.
32-5 Failure to timely file the claim precludes recovery from the fund.
32-6 On receipt of a properly verified complaint, the department shall
32-7 notify the licensees [registrants] as appropriate and investigate
32-8 the claim to determine its validity and whether or not the
32-9 complaint can be resolved by remedial action of the licensees
32-10 [registrants]. If there is a dispute between the licensees
32-11 [registrants] as to responsibility for the complaint, or between
32-12 any licensee [registrant] and the consumer, the department shall
32-13 conduct an informal dispute resolution process, including a home
32-14 inspection if appropriate, for a resolution of the disputes. If it
32-15 is possible to secure the agreement of the parties, the department
32-16 shall prepare and file with the director a written report of the
32-17 agreement.
32-18 (g) During the informal dispute resolution process, the
32-19 department shall make a preliminary determination as to the
32-20 responsibility and liability of the manufacturer, retailer, and
32-21 installer for claims determined to be valid. The licensees
32-22 [registrants] shall be afforded an opportunity to comment on the
32-23 preliminary determination under consideration by the department
32-24 before the department makes a final determination. If a licensee
32-25 [registrant] is out of business, is no longer licensed
33-1 [registered], or has filed for liquidation or reorganization in
33-2 bankruptcy, the department shall notify the licensee's
33-3 [registrant's] surety and give the licensee's [registrant's] surety
33-4 an opportunity to participate in the informal dispute resolution
33-5 process. If a licensee [registrant] or the licensee's
33-6 [registrant's] surety fails or refuses to participate in the
33-7 informal dispute resolution process after receiving notice of the
33-8 claim, the licensee [registrant] and the licensee's [registrant's]
33-9 surety are bound by the department's final determination of
33-10 responsibility and liability, and the department may suspend or
33-11 revoke the licensee's [registrant's] license [certificate of
33-12 registration].
33-13 (k) The provisions of this section do not apply to, and a
33-14 consumer shall not recover against the fund as a result of, any
33-15 claim against a licensee [registrant] resulting from a cause of
33-16 action directly related to the sale, lease-purchase, exchange,
33-17 brokerage or installation of a manufactured home prior to September
33-18 1, 1987.
33-19 SECTION 12. Section 14, Texas Manufactured Housing Standards
33-20 Act (Article 5221f, Vernon's Texas Civil Statutes), is amended by
33-21 amending Subsections (f) and (k) and adding a new Subsection (n) to
33-22 read as follows:
33-23 (f) If the manufacturer or retailer fails to provide
33-24 warranty service within the reasonable time allowed by the rules of
33-25 the director, the manufacturer or retailer must show good cause in
34-1 writing why such service was not provided. Failure to show good
34-2 cause constitutes sufficient basis for suspension or revocation of
34-3 the license [registration].
34-4 (k) If the manufacturer or retailer, or both, fails or
34-5 refuses to provide the warranty service in accordance with the
34-6 orders of the department following a home inspection, the director
34-7 shall set a hearing at which the manufacturer or retailer, or both,
34-8 shall show cause why the license [registration] should not be
34-9 suspended or revoked. If, following the hearing, the director
34-10 finds that the prior warranty service orders were correct, the
34-11 failure or refusal of the manufacturer or retailer to comply with
34-12 the orders is sufficient cause for the suspension or revocation of
34-13 the license [registration]. If the director finds that the prior
34-14 warranty service orders were incorrect in the determination of the
34-15 respective responsibilities of the manufacturer, retailer, or both,
34-16 the director shall enter a final order setting forth the correct
34-17 responsibilities and the right of either the manufacturer or
34-18 retailer to indemnification from the other. The director may also
34-19 enter an order directing the manufacturer or retailer whose license
34-20 [registration] is not revoked, or who is not out of business, to
34-21 perform the warranty service responsibilities of the retailer or
34-22 manufacturer whose license [registration] is revoked, or who is out
34-23 of business, by giving the manufacturer or retailer performing such
34-24 warranty service the right to indemnity against the other. The
34-25 manufacturer or retailer entitled to indemnification by virtue of
35-1 an order of the director pursuant to this subsection is a
35-2 "consumer" for purposes of Sections 13 and 13A of this Act and may
35-3 recover its actual damages and attorney's fees from the
35-4 manufactured homeowners' recovery fund.
35-5 (n) When a new HUD-code manufactured home is permanently
35-6 affixed to real estate, the manufacturer's certificate of origin is
35-7 canceled, and a certificate of attachment is filed in the deed
35-8 records of the county, the seller of the real estate may give the
35-9 initial purchaser a written warranty which combines the
35-10 manufacturer's warranty and the retailer's warranty which are
35-11 required in this section. If this combination warranty is given,
35-12 the manufacturer and retailer do not have to give separate written
35-13 warranties; however, each shall be jointly liable with the seller
35-14 of the real estate to the purchaser for the performance of their
35-15 respective warranty responsibilities.
35-16 SECTION 13. Section 17, Texas Manufactured Housing Standards
35-17 Act (Article 5221f, Vernon's Texas Civil Statutes), is amended by
35-18 amending Subsection (b) to read as follows:
35-19 (b) In addition to the injunctive relief set forth in
35-20 Section 18 of this Act, a person who fails to obtain or maintain a
35-21 license [registration] as required by this Act may be assessed a
35-22 civil penalty by the director payable to the state in an amount not
35-23 to exceed $10,000 for each violation of this Act in addition to the
35-24 reasonable attorney's fees, court costs, witness fees,
35-25 investigative costs, and deposition expenses.
36-1 SECTION 14. Section 18, Texas Manufactured Housing Standards
36-2 Act (Article 5221f, Vernon's Texas Civil Statutes), is amended by
36-3 amending Subsections (d), (f), and (g) to read as follows:
36-4 (d) If a retailer, broker, or installer does not possess a
36-5 valid license [certificate of registration] at the time of entering
36-6 into any contract with a consumer, the contract between the
36-7 consumer and the retailer, broker, or installer is voidable within
36-8 two years from the date of the purchase of the manufactured home at
36-9 the option of the consumer. A consumer's contract for the
36-10 purchase, exchange, or lease-purchase of a new manufactured home is
36-11 also voidable within two years from the date of the purchase of the
36-12 manufactured home, if the retailer purchased the home from an
36-13 unlicensed [unregistered] manufacturer in violation of Section 6,
36-14 Subsection (h) of this Act.
36-15 (f) Notwithstanding any provisions of any other statute,
36-16 regulation, or ordinance to the contrary, a licensed [registered]
36-17 retailer or licensed [registered] installer is not required to
36-18 secure any permit, certificate or license or pay any fee for the
36-19 transportation of manufactured housing to the place where it is to
36-20 be installed except as required by the department or by the Texas
36-21 Department of Transportation pursuant to Article 6701-1/2, Title
36-22 116, Revised Statutes. The department shall cooperate with the
36-23 Texas Department of Transportation by providing current lists of
36-24 licensed [registered] manufactured housing manufacturers,
36-25 retailers, and installers.
37-1 (g) A local governmental unit or home-rule city may not
37-2 require any permit, fee, bond, or insurance for the installation of
37-3 manufactured housing by a licensed [registered] retailer or
37-4 installer except as may be approved by the department.
37-5 SECTION 15. Section 19, Texas Manufactured Housing Standards
37-6 Act (Article 5221f, Vernon's Texas Civil Statutes), is amended by
37-7 amending Subsection (k) to read as follows:
37-8 (k) A lien on the manufactured homes in the inventory is
37-9 perfected by filing a security agreement with the department in a
37-10 form that contains the information the director requires. Once
37-11 perfected, the lien applies to the manufactured homes in the
37-12 inventory as well as to any proceeds of the sale of those homes.
37-13 Failure to pay or satisfy any inventory lien filed and recorded
37-14 against a manufactured home pursuant to the terms of the security
37-15 agreement by the retailer is sufficient cause to revoke or suspend
37-16 the retailer's license [registration] with the department.
37-17 SECTION 16. For purposes of continuity in administration and
37-18 enforcement, the terms "registration" and "certificate of
37-19 registration" shall be a "license" until renewed as a license on
37-20 expiration.
37-21 SECTION 17. This Act shall be effective September 1, 1997.
37-22 SECTION 18. The importance of this legislation and the
37-23 crowded condition of the calendars in both houses create an
37-24 emergency and an imperative public necessity that the
37-25 constitutional rule requiring bills to be read on three several
38-1 days in each house be suspended, and this rule is hereby suspended,
38-2 and that this Act take effect and be in force from and after its
38-3 passage, and it is so enacted.