SRC-PNG H.B. 2238 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 2238
By: Cook (Harris)
State Affairs
5/4/1999
Engrossed


DIGEST 

Currently, under Texas law, in order to sell more than one manufactured
home with an outstanding title in any consecutive 12-month period, a person
must be registered under the Texas Manufactured Housing Standards Act,
Article 5221f, V.T.C.S.  Real estate licensees frequently negotiate the
sale of real property on which one or more manufactured homes are located.
If the certificates of title for those homes have not been surrendered, and
if the real estate licensee has participated in the transfer of another
manufactured home in the last 12 months, the real estate licensee may not
assist the client with obtaining purchasers for the homes, even though the
real estate licensee may negotiate the transfer of the real property.  The
Texas Manufactured Housing Standards Act also requires that all sellers of
manufactured homes provide purchasers with a written warranty.  This
warranty requirement has caused confusion where the transfer of the home is
from one consumer to another. This bill would authorize a real estate
licensee to negotiate the sale, exchange, or lease-purchase of manufactured
homes on behalf of a person for whom the real estate licensee otherwise
acts as real estate broker, and eliminates the written warranty requirement
for sale, exchange, or lease-purchase of manufactured homes between
consumers. 

PURPOSE

As proposed, H.B. 2238 authorizes a real estate licensee to negotiate the
sale, exchange, or leasepurchase of manufactured homes on behalf of a
person for whom the real estate licensee otherwise acts as real estate
broker, and eliminates the written warranty requirements for sale,
exchange, or lease-purchase of manufactured homes between consumers. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 7, Article 5221f, V.T.C.S. (Texas Manufactured
Housing Standards Act), by adding Subsection (s), to authorize a person
licensed as a real estate broker or salesperson under Article 6573a,
V.T.C.S., to act as a manufactured housing broker or salesperson without
holding a license, posting a surety bond or other security under this
article, provided the person is also acting as a real estate broker or
salesperson. 

SECTION 2. Amends Section 8(b), Article 5221f, V.T.C.S., to exempt a sale,
exchange, or leasepurchase of a manufactured home from one consumer to
another consumer from the warranty requirements of this subsection. 

SECTION 3. Effective date: September 1, 1999.

SECTION 4. Emergency clause.