HBA-CMT H.B. 239 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 239 By: Keffer Urban Affairs 4/11/2001 Introduced BACKGROUND AND PURPOSE Manufactured home retailers are only required to attend a 20-hour instruction course in the law and consumer protection regulations as a prerequisite for a manufactured housing license. No test is required after the course is completed to obtain the license or registration. House Bill 239 requires an unlicensed or unregistered manufactured home retailer to attend and complete a course of instruction in the law and consumer protection regulations and to pass an examination on that course in order to receive a license for the sale of manufactured homes. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Texas Department of Housing and Community Affairs in SECTION 3 (Article 5221f, V.T.C.S.) of this bill. ANALYSIS House Bill 239 amends the Texas Manufactured Housing Standards Act to provide that a manufactured home retailer not licensed or registered with the Texas Department of Housing and Community Affairs (department) or a predecessor agency as of September 1, 1987 must attend and complete 20 hours of instruction in the law and consumer protection regulations and must pass an examination based on that instruction as a prerequisite for a license. The bill prohibits the director of the department (director) from issuing a license until the instruction is completed and the examination is passed. The bill requires that an additional fee be set and charged to each retailer who takes the required examination based on that course of instruction. H.B. 239 provides that while the retailer's warranty is in effect, the consumer is authorized to notify in writing the retailer of the manufactured homes of any need for warranty service or repairs, including service or repairs under the manufacturer's warranty. If the retailer does not take appropriate corrective action within a reasonable amount of time as required by department rules, the consumer is authorized to notify the department in writing of the failure to provide the warranty service or repairs. The director is authorized to enter an order directing the retailer to perform the warranty service or repairs and if appropriate giving the retailer performing the warranty service or repairs the right of indemnity against the manufacturer. The bill provides that the retailer entitled to indemnity is considered a consumer and is authorized to recover the retailer's actual damages and attorney's fees from the manufactured homeowners' recovery fund. The bill requires a manufacturer constructing manufactured homes in this state to use standard materials as designated by the director. EFFECTIVE DATE September 1, 2001.