By Telford H.B. No. 1193
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to licensing and the regulation of manufactured housing.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subsection (1), Section 3, Texas Manufactured
1-5 Housing Standards Act (Article 5221f, Vernon's Texas Civil
1-6 Statutes), is amended to read as follows:
1-7 (1) "Advertising" or "advertisement" means any
1-8 commercial message which promotes the sale, exchange, or
1-9 lease-purchase of manufactured homes and which appears in, or is
1-10 presented on, radio, television, a public-address system,
1-11 newspapers, magazines, leaflets, flyers, catalogs, direct mail
1-12 literature, other printed material, electronic media, an inside or
1-13 outside sign or window display, or in point-of-sale literature or
1-14 price tags. Materials which are educational or that may be
1-15 required by law do not constitute advertising. Any advertisement
1-16 relating to manufactured housing shall be considered as an offer to
1-17 sell, exchange, or lease-purchase to consumers.
1-18 SECTION 2. Section 4, Texas Manufactured Housing Standards
1-19 Act (Article 5221f, Vernon's Texas Civil Statutes), is amended to
1-20 read as follows:
1-21 Sec. 4. Manufactured Housing Standards.
2-1 (a) The director shall adopt standards and requirements for
2-2 the installation and for the construction of manufactured housing,
2-3 that are reasonably necessary in order to protect the health,
2-4 safety, and welfare of the occupants and the public. The
2-5 collection of these standards and requirements is the Texas
2-6 Manufactured Housing Code.
2-7 (b) [The requirements and standards for the plumbing,
2-8 heating, air-conditioning and electrical systems and construction
2-9 of manufactured homes in effect on September 1, 1989, remain in
2-10 full force and effect until amended in accordance with the
2-11 procedure set forth in this section.]
2-12 [(c)] The director shall adopt standards and requirements
2-13 for the construction of HUD-code manufactured homes in compliance
2-14 with the federal standards and requirements established under Title
2-15 VI of the Housing and Community Development Act of 1974, entitled
2-16 the National Manufactured Home Construction and Safety Standards
2-17 Act of 1974.
2-18 (c) [(d)] The director shall adopt standards and
2-19 requirements for the installation of all manufactured housing in
2-20 the state that are necessary for the protection of the health,
2-21 safety, and welfare of all the citizens. The standards must assure
2-22 that the installation of manufactured housing on both permanent and
2-23 nonpermanent foundation systems resists overturning and lateral
2-24 movement of the housing according to the design loads for the
2-25 particular wind zone for which the housing was constructed.
3-1 [(e) The requirements and standards for the installation of
3-2 manufactured homes as adopted by the state in existence on
3-3 September 1, 1989, remain in force until amended in accordance with
3-4 the procedure set forth in this section.]
3-5 (d) [(f)] All manufactured housing must be installed in
3-6 compliance with the standards, rules, regulations, or
3-7 administrative orders of the director. The department shall
3-8 establish an inspection program whereby at least 25 percent of the
3-9 manufactured homes installed are inspected on a sample basis for
3-10 compliance. The department's program shall place priority on
3-11 multi-section homes and homes installed in Wind Zone II.
3-12 (e) [(g)] A local governmental unit of this state, without
3-13 the express approval of the board following a hearing on the
3-14 matter, may not adopt different standards from those promulgated by
3-15 the director for the construction or installation of manufactured
3-16 housing within the local governmental unit. The local governmental
3-17 unit must demonstrate that the public health and safety require the
3-18 different standards.
3-19 (f) [(h)] Before the adoption or promulgation of any
3-20 standards or requirements authorized by this section, any change in
3-21 or addition to the standards authorized in this section, or the
3-22 approval of different standards by any local governmental unit, the
3-23 director shall publish a notice and conduct a public hearing under
3-24 Section 9 of this Act.
3-25 (g) [(i)] Every requirement or standard or modification,
4-1 amendment, or repeal of a requirement or standard adopted by the
4-2 director shall state the date it shall take effect as provided by
4-3 Section 9 of this Act.
4-4 (h) [(j)] The department shall cooperate with all units of
4-5 local government in this state and shall authorize local units of
4-6 government, on request, to make and perform inspection and
4-7 enforcement activities related to the construction of foundation
4-8 systems and the erection and installation of manufactured housing
4-9 at the homesite pursuant to contracts or other official
4-10 designations and the rules and regulations of the director. The
4-11 department shall notify each local governmental unit biennially in
4-12 writing to advise the local governmental unit of the program for
4-13 contracting installation inspections. The department shall
4-14 encourage local building inspection officials to perform
4-15 enforcement and inspection activities for manufactured housing
4-16 installed within the local governmental unit and may establish
4-17 cooperative inspection training programs. The department may
4-18 withdraw the authorization if the local governmental unit fails to
4-19 follow the rules, regulations, interpretations, and written
4-20 instructions of the department.
4-21 SECTION 3. Subsections (h) and (l), Section 6, Texas
4-22 Manufactured Housing Standards Act (Article 5221f, Vernon's Texas
4-23 Civil Statutes), are amended to read as follows:
4-24 (h) It is unlawful for a person to sell, convey, or
4-25 otherwise transfer to a consumer in this state a [salvaged]
5-1 manufactured home for which a salvage title has been issued
5-2 pursuant to [as such term is defined in] Section 8 of this Act. A
5-3 salvaged manufactured home may only be sold to a licensed retailer
5-4 or licensed rebuilder.
5-5 (l) It is unlawful for a retailer or a salesperson to aid or
5-6 assist a consumer in preparing or providing false or misleading
5-7 information on a document related to the purchase or financing of a
5-8 manufactured home or for a salesperson to submit information known
5-9 to be false or misleading to a retailer or for a retailer or a
5-10 salesperson to submit information known to be false or misleading
5-11 to a credit underwriter or lending institution.
5-12 SECTION 4. Section 7, Texas Manufactured Housing Standards
5-13 Act (Article 5221f, Vernon's Texas Civil Statutes), is amended by
5-14 amending subsections (o) and (q) and by adding a new subsection (s)
5-15 to read as follows:
5-16 (o) Any person not licensed or registered with the
5-17 department or a predecessor agency as of September 1, 1987, must
5-18 attend and complete twenty (20) hours of instruction in the law and
5-19 consumer protection regulations as a prerequisite for a license.
5-20 The instruction shall be given not less than one time each quarter.
5-21 No test shall be made a prerequisite of licensing, but actual
5-22 attendance at the instruction sessions is required. The director
5-23 shall not issue a license until the instruction is completed. This
5-24 subsection does not apply to a license holder or registrant making
5-25 application to license additional business locations, to renew or
6-1 reinstate a license, or to make application for licensing as a
6-2 salesperson. In lieu of this instruction requirement, a
6-3 manufacturer may request that a one-day, in-plant training session
6-4 be presented by an authorized representative of the department.
6-5 The manufacturer shall reimburse the department for the actual
6-6 costs of the training session.
6-7 (q) In lieu of the instruction requirements imposed under
6-8 Subsection (o) of this section, the director may recognize and
6-9 approve a training program for applicants for licenses [installers]
6-10 that is conducted [in the field] by a private institution or other
6-11 person.
6-12 (s) A person duly licensed as a broker or salesperson under
6-13 the Texas Real Estate License Act, as amended (Article 6573a,
6-14 Vernon's Texas Civil Statutes), may act as a manufactured housing
6-15 broker or salesperson and is not required to be licensed or post
6-16 bond or other security under this Act provided negotiations for the
6-17 sale, exchange, or lease-purchase of the manufactured home are
6-18 conducted on behalf of a person for whom the real estate licensee
6-19 otherwise acts as a real estate broker.
6-20 SECTION 5. Subsections (b) and (g), Section 8, Texas
6-21 Manufactured Housing Standards Act (Article 5221f, Vernon's Texas
6-22 Civil Statutes), are amended to read as follows:
6-23 (b) It is unlawful for a person to sell, exchange, or
6-24 lease-purchase any used manufactured home to a consumer for use as
6-25 a dwelling or residence without giving a written warranty that the
7-1 manufactured home is habitable. The consumer has 60 days after the
7-2 date of the sale, exchange, or lease-purchase agreement to notify
7-3 the seller in writing of any defects that make the home
7-4 uninhabitable. Failure to give this required notice terminates any
7-5 obligations and liabilities of the seller under this section. The
7-6 warranty must conspicuously disclose this requirement to the
7-7 consumer. If the sale, exchange, or lease-purchase is to a
7-8 purchaser for the purchaser's business use, the manufactured home
7-9 need not be habitable; however, the title to the home shall be
7-10 surrendered to the department for cancellation by the seller.
7-11 "Business use" means any use other than for a dwelling or
7-12 residence. This subsection does not apply to a sale, exchange, or
7-13 lease-purchase from one consumer to another consumer.
7-14 (g) For the purposes of this Act, a "salvaged" manufactured
7-15 home means a manufactured home which has been scrapped, dismantled,
7-16 destroyed, or for which an insurance company has paid the full
7-17 insured value [obtained by a property and casualty insurer from the
7-18 insured by reason of the insurer's payment of the policy value
7-19 written on the home to the insured]. The reasonableness of the
7-20 insurer's judgment that the costs of repair to the home would
7-21 exceed the insured value of the home does not affect the status of
7-22 the home as salvage. The person possessing the original document
7-23 of title to a used [salvaged] manufactured home which is salvaged
7-24 must surrender such document of title to the director for
7-25 cancellation of the title and issuance of a salvage title. If a
8-1 new manufactured home becomes salvaged, the retailer must remove
8-2 the label and must surrender the label along with the
8-3 manufacturer's certificate of origin to the director for issuance
8-4 of the salvage title. If the manufactured home is rebuilt in
8-5 accordance with the provisions of this Act and the rules and
8-6 regulations of the director, the director shall issue, upon proper
8-7 application, a [new original] document of title in lieu of the
8-8 salvage title.
8-9 SECTION 6. Subsections (e) and (g), Section 9, Texas
8-10 Manufactured Housing Standards Act (Article 5221f, Vernon's Texas
8-11 Civil Statutes), are amended to read as follows:
8-12 (e) All rules shall be promulgated and adopted in accordance
8-13 with Chapter 2001, Government Code, and with the provisions of this
8-14 section. All public and administrative hearings shall be held in
8-15 Travis County unless all parties agree to another location.
8-16 (g) A rule, amendment to a rule, or repeal of a rule as
8-17 finally adopted shall be published in the Texas Register and
8-18 include a statement of the effective date. The effective date of a
8-19 rule relating to installation standards shall be not less than 60
8-20 days following the date of publication of notice that the rule has
8-21 been adopted. All other rules are effective 30 days following the
8-22 date of publication [Any other rule is effective as provided by
8-23 Chapter 2001, Government Code, or such later date as is published].
8-24 SECTION 7. Subsections (d), (i), and (j), Section 14, Texas
8-25 Manufactured Housing Standards Act (Article 5221f, Vernon's Texas
9-1 Civil Statutes), are amended to read as follows:
9-2 (d) The retailer shall give the consumer a written warranty
9-3 that the installation of the new HUD-code manufactured home at the
9-4 initial homesite will be completed in accordance with all
9-5 standards, rules, regulations, administrative orders, and
9-6 requirements of the department and that any appliances or equipment
9-7 included with the sale of the home to be installed by the retailer
9-8 have been, or will be, installed in accordance with the
9-9 instructions or specifications of the manufacturer of the appliance
9-10 or equipment and are free from defects in materials or workmanship.
9-11 The retailer's warranty is for a period of one year from the date
9-12 of initial installation of the home at the consumer's homesite.
9-13 The retailer shall deliver to the consumer prior to [at] the time
9-14 the sale is completed [the contract of sale is signed] the
9-15 following:
9-16 (1) the manufacturer's warranty;
9-17 (2) the retailer's warranty;
9-18 (3) the warranties for all appliances and equipment
9-19 given by the manufacturers of the appliances and equipment included
9-20 with, or installed in, the home; and
9-21 (4) the name and address of the manufacturer and
9-22 retailer to which the consumer is to give notice of warranty
9-23 service requests.
9-24 (i) After receipt of a request for a home inspection, the
9-25 department shall perform such inspection within a reasonable period
10-1 of time [15 days]. Within ten [five] days following the
10-2 inspection, the department shall mail a written report and orders,
10-3 if any, to the consumer, manufacturer, and retailer by certified
10-4 mail, return receipt requested. The report shall detail each of
10-5 the consumer's complaints, whether or not each complaint is covered
10-6 by either of the warranties and which warranty. The director shall
10-7 issue appropriate orders to the manufacturer or retailer for
10-8 correction or repair of the defects and the time allowed, which
10-9 must be reasonable, for the correction.
10-10 (j) The manufacturer, [and] retailer, and installer shall
10-11 comply with the initial report and warranty service orders of the
10-12 director. The department may issue an amended report and warranty
10-13 orders if all parties receive notification and are given an
10-14 opportunity to respond. The amended report and warranty orders
10-15 shall supercede the initial report and warranty orders [Such orders
10-16 are not contested cases within the meaning of Chapter 2001,
10-17 Government Code, so as to provide an opportunity for an
10-18 adjudicative hearing prior to compliance].
10-19 SECTION 8. Section 18, Texas Manufactured Housing Standards
10-20 Act (Article 5221f, Vernon's Texas Civil Statutes), is amended by
10-21 amending Subsections (b), (e), (f) and (g) and by adding a new
10-22 Subsection (j), to read as follows:
10-23 (b) The provisions of all laws, parts of laws, ordinances,
10-24 rules or regulations which are in conflict with any of the
10-25 provisions of this Act or of the department's rules are superseded
11-1 and preempted to the extent of such conflict. The proper giving of
11-2 the warranties and notices by the seller as required by the
11-3 provisions of Section 8 and Section 14 of this Act is a valid
11-4 disclaimer of any implied warranties of fitness for a particular
11-5 purpose or of merchantability as described in Chapter 2, Business &
11-6 Commerce Code. The failure to give the warranties and notices
11-7 required by the provisions of Section 8 and Section 14 of this Act
11-8 is a deceptive trade practice in addition to those set forth in
11-9 Section 17.50, Business & Commerce Code.
11-10 (e) Nothing in this Act shall be construed to modify or
11-11 amend any provisions of The Real Estate License Act, as amended
11-12 (Article 6573a, Vernon's Texas Civil Statutes). The provisions of
11-13 this Act, as amended, shall not apply to a person licensed as a
11-14 real estate broker or salesperson [salesman] pursuant to The Real
11-15 Estate License Act, as amended (Article 6573a, Vernon's Texas Civil
11-16 Statutes), who, as agent of the buyer or seller, negotiates the
11-17 sale or lease of a manufactured home and the real property to which
11-18 it is affixed, provided that the ownership of the manufactured home
11-19 and real property are of record in the same person and that such
11-20 sale or lease shall be in a single real estate transaction.
11-21 (f) Notwithstanding any provisions of any other statute,
11-22 regulation, or ordinance to the contrary, a licensed retailer or
11-23 licensed installer is not required to secure any permit,
11-24 certificate or license or pay any fee for the transportation of
11-25 manufactured housing to the place where it is to be installed
12-1 except as required by the department or by the Texas Department of
12-2 Transportation pursuant to Subchapter E, Chapter 623,
12-3 Transportation Code [Article 6701-1/2, Title 116, Revised
12-4 Statutes]. The department shall cooperate with the Texas
12-5 Department of Transportation by providing current lists of licensed
12-6 manufactured housing manufacturers, retailers, and installers.
12-7 (g) A local governmental unit or home-rule city may not
12-8 require any permit, fee, bond, or insurance for the transportation
12-9 and installation of manufactured housing by a licensed retailer or
12-10 installer except as may be approved by the department.
12-11 (j) A licensed retailer is a "warehouseman" under Chapter 7,
12-12 Title I, Business and Commerce Code for the storage of manufactured
12-13 homes for hire. All provisions of the Business and Commerce Code
12-14 relating to the storage of goods for hire apply to the licensed
12-15 retailer acting as a warehouseman.
12-16 SECTION 9. Subsection (g), Section 19, Texas Manufactured
12-17 Housing Standards Act (Article 5221f, Vernon's Texas Civil
12-18 Statutes), is amended to read as follows:
12-19 (g) The owner designated in the original document of title
12-20 must transfer the title on a form prescribed by the director and
12-21 must file the form with the department before a manufactured home
12-22 may be conveyed, transferred, or otherwise disposed of at a
12-23 subsequent sale. The form must include any information the
12-24 director requires and must include a statement that the person
12-25 signing is the owner of the manufactured home and that there are no
13-1 liens on the home except a lien shown on the document of title. If
13-2 an original document of title is unavailable because a previous
13-3 owner or lienholder, or both, cannot be located or if a home has
13-4 been abandoned, a seller may apply for a replacement title by
13-5 presenting evidence satisfactory to the department that efforts to
13-6 locate the previous owner or lienholder, or both, have been
13-7 unsuccessful along with an affidavit stating that to the best of
13-8 his or her knowledge, the seller is entitled to have a good and
13-9 marketable title to the home. A title to a manufactured home may
13-10 not pass or vest at a subsequent sale until the transfer is
13-11 executed as provided by this section and an application for the
13-12 issuance of a new document of title is sent to the department.
13-13 SECTION 10. The importance of this legislation and the
13-14 crowded condition of the calendars in both houses create an
13-15 emergency and an imperative public necessity that the
13-16 constitutional rule requiring bills to be read on three several
13-17 days in each house be suspended, and this rule is hereby suspended,
13-18 and that this Act take effect and be in force from and after its
13-19 passage, and it is so enacted.