77R11416 KEL-D                           
         By Jones of Dallas                                    H.B. No. 2481
         Substitute the following for H.B. No. 2481:
         By Brown of Brazos                                C.S.H.B. No. 2481
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to certain restrictions on the delivery or installation of
 1-3     a new or used manufactured home in a flood-prone area.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 6, Texas Manufactured Housing Standards
 1-6     Act (Article 5221f, Vernon's Texas Civil Statutes), is amended by
 1-7     adding Subsection (n) to read as follows:
 1-8           (n)(1)  In this subsection, "homesite" means the land on
 1-9     which the foundation system for a manufactured home is or will be
1-10     located.
1-11                 (2)  Unless the retailer, broker, or salesperson
1-12     complies with the requirements of the National Flood Insurance Act
1-13     of 1968 (42 U.S.C. Section 4001 et seq.), Subchapter I, Chapter 16,
1-14     Water Code, and any other applicable local, state, or federal law,
1-15     and attempts to ensure the consumer's compliance with those laws, a
1-16     retailer, broker, or salesperson who sells, exchanges, or
1-17     lease-purchases a new or used manufactured home to a consumer for
1-18     use as a permanent dwelling may not:
1-19                       (A)  deliver or arrange for the delivery of the
1-20     home to a homesite in a special flood hazard area designated by the
1-21     director of the Federal Emergency Management Agency;
1-22                       (B)  install or arrange for the installation of
1-23     the home at a homesite in that area; or
1-24                       (C)  assist the consumer in the delivery or
 2-1     installation of, or in making arrangements for the delivery or
 2-2     installation of, the home to or at a homesite in that area.
 2-3                 (3)  Before closing on the acquisition of a new or used
 2-4     manufactured home for use as a permanent dwelling, a consumer
 2-5     seeking to acquire the home must provide to the retailer, broker,
 2-6     or salesperson selling, exchanging, or lease-purchasing the home
 2-7     evidence that the home will not be located, in a manner that
 2-8     violates local, state, or federal law, on a homesite  in a special
 2-9     flood hazard area designated by the director of the Federal
2-10     Emergency Management Agency.
2-11           SECTION 2. The change in law made by this Act applies only to
2-12     the sale, exchange, or lease-purchase of a new or used manufactured
2-13     home on or after the effective date of this Act.
2-14           SECTION 3.  This Act takes effect immediately if it receives
2-15     a vote of two-thirds of all the members elected to each house, as
2-16     provided by Section 39, Article III, Texas Constitution.  If this
2-17     Act does not receive the vote necessary for immediate effect, this
2-18     Act takes effect September 1, 2001.