76R12414 KEL-D
By Keffer H.B. No. 2838
Substitute the following for H.B. No. 2838:
By Hodge C.S.H.B. No. 2838
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of manufactured homes.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 7, Texas Manufactured Housing Standards
1-5 Act (Article 5221f, Vernon's Texas Civil Statutes), is amended by
1-6 amending Subsection (o) and by adding Subsection (s) to read as
1-7 follows:
1-8 (o) Except as otherwise provided by this section, a [Any]
1-9 person not licensed or registered with the department or a
1-10 predecessor agency as of September 1, 1987, must attend and
1-11 complete twenty (20) hours of instruction in the law and consumer
1-12 protection regulations as a prerequisite for a license. The
1-13 instruction shall be given not less than one time each quarter. No
1-14 test shall be made a prerequisite of licensing, but actual
1-15 attendance at the instruction sessions is required. The director
1-16 shall not issue a license until the instruction is completed. This
1-17 subsection does not apply to a registrant making application to
1-18 license additional business locations, to renew or reinstate a
1-19 license, or to make application for licensing as a salesperson. In
1-20 lieu of this instruction requirement, a manufacturer may request
1-21 that a one-day, in-plant training session be presented by an
1-22 authorized representative of the department. The manufacturer
1-23 shall reimburse the department for the actual costs of the training
1-24 session.
2-1 (s) A retailer not licensed or registered with the
2-2 department or a predecessor agency as of September 1, 1987, must
2-3 attend and complete the instruction described by Subsection (o) and
2-4 must pass an examination based on that instruction as a
2-5 prerequisite for a license. The director may not issue a
2-6 retailer's license until the instruction is completed and the
2-7 examination is passed.
2-8 SECTION 2. Section 11(d), Texas Manufactured Housing
2-9 Standards Act (Article 5221f, Vernon's Texas Civil Statutes), is
2-10 amended to read as follows:
2-11 (d) A fee shall be set and charged to each person attending
2-12 the course of instruction in the law and consumer protection
2-13 regulations for applicants for licenses. An additional fee shall
2-14 be set and charged to each retailer who takes the required
2-15 examination based on that course of instruction.
2-16 SECTION 3. Section 14, Texas Manufactured Housing Standards
2-17 Act (Article 5221f, Vernon's Texas Civil Statutes), is amended by
2-18 adding Subsection (o) to read as follows:
2-19 (o) Notwithstanding the other provisions of this Act, while
2-20 the retailer's warranty is in effect, the consumer may notify the
2-21 retailer in writing of any need for warranty service or repairs,
2-22 including service or repairs under the manufacturer's warranty. If
2-23 the retailer does not take appropriate corrective action within a
2-24 reasonable time as required by department rules, the consumer may
2-25 notify the department in writing of the retailer's failure to
2-26 provide the warranty service or repairs. The director may enter an
2-27 order directing the retailer to perform the warranty service or
3-1 repairs and, if appropriate, giving the retailer performing the
3-2 warranty service or repairs the right of indemnity against the
3-3 manufacturer. The retailer entitled to indemnification under this
3-4 subsection is a "consumer" for purposes of Sections 13 and 13A of
3-5 this Act and may recover the retailer's actual damages and
3-6 attorney's fees from the manufactured homeowners' recovery fund.
3-7 The consumer's rights and remedies under this subsection are
3-8 cumulative of any other consumer rights or remedies relating to the
3-9 retailer or manufacturer.
3-10 SECTION 4. Section 18, Texas Manufactured Housing Standards
3-11 Act (Article 5221f, Vernon's Texas Civil Statutes), is amended by
3-12 adding Subsection (j) to read as follows:
3-13 (j) A manufacturer shall construct a manufactured home in
3-14 this state using standard materials, as designated by the director.
3-15 SECTION 5. (a) The change in law made by Sections 1 and 2
3-16 of this Act applies only to a retailer who applies for a license on
3-17 or after the effective date of this Act. A retailer who applies
3-18 for a license before the effective date of this Act is covered by
3-19 the law in effect when the retailer applied for a license, and the
3-20 former law is continued in effect for that purpose.
3-21 (b) The change in law made by Section 3 of this Act applies
3-22 only to a retailer's warranty that takes effect on or after the
3-23 effective date of this Act. A retailer's warranty that takes
3-24 effect before the effective date of this Act is covered by the law
3-25 in effect when the warranty took effect, and the former law is
3-26 continued in effect for that purpose.
3-27 SECTION 6. This Act takes effect September 1, 1999.
4-1 SECTION 7. The importance of this legislation and the
4-2 crowded condition of the calendars in both houses create an
4-3 emergency and an imperative public necessity that the
4-4 constitutional rule requiring bills to be read on three several
4-5 days in each house be suspended, and this rule is hereby suspended.