By Raymond                                            H.B. No. 3552
         77R14068 E                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the regulation of manufactured housing; providing a
 1-3     penalty.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Sections 6B(b), (c), and (d), Texas Manufactured
 1-6     Housing Standards Act (Article 5221f, Vernon's Texas Civil
 1-7     Statutes), are amended to read as follows:
 1-8           (b)  A manufactured home constructed on or after September 1,
 1-9     1997, [the effective date of this section] must meet the Wind Zone
1-10     II standards adopted by the United States Department of Housing and
1-11     Urban Development in order to be installed in a Wind Zone II
1-12     county.
1-13           (c)  All manufactured homes constructed prior to September 1,
1-14     1997, [the effective date of this section] may be installed in Wind
1-15     Zone I or Wind Zone II without restriction.
1-16           (d)  A consumer purchasing a manufactured home constructed on
1-17     or after September 1, 1997, [the effective date of this section] to
1-18     Wind Zone I standards must be given a notice by the selling
1-19     retailer that:
1-20                 (1)  the home was not designed nor constructed to
1-21     withstand hurricane force winds which may occur in Wind Zone II or
1-22     III areas; and
1-23                 (2)  the home is not permitted to be installed in Wind
1-24     Zone II counties in Texas, and there may be restrictions in other
 2-1     states prohibiting installation in Wind Zone II or III areas.
 2-2           SECTION 2. Section 14(n), Texas Manufactured Housing
 2-3     Standards Act (Article 5221f, Vernon's Texas Civil  Statutes), is
 2-4     amended to read as follows:
 2-5           (n)  When a new HUD-code manufactured home is permanently
 2-6     affixed to real estate, the manufacturer's certificate of origin is
 2-7     surrendered for cancellation [canceled], and a notice of attachment
 2-8     or certificate of attachment is filed in the real property [deed]
 2-9     records of the county, the seller of the real estate may give the
2-10     initial purchaser a written warranty that combines the
2-11     manufacturer's warranty and the retailer's warranty required in
2-12     this section.  If a combination warranty is given, the manufacturer
2-13     and retailer are not required to give separate written warranties;
2-14     however, the manufacturer and retailer are jointly liable with the
2-15     seller of the real estate to the purchaser for the performance of
2-16     their respective warranty responsibilities.
2-17           SECTION 3. Section 17(a), Texas Manufactured Housing
2-18     Standards Act (Article 5221f, Vernon's Texas Civil Statutes), is
2-19     amended to read as follows:
2-20           (a)  A person, individual, or director, officer, or agent of
2-21     a corporation who knowingly and willfully violates a provision of
2-22     this Act or any rule, regulation, or administrative order of the
2-23     department in a manner that threatens the health or safety of any
2-24     purchaser or consumer commits a Class A misdemeanor and on
2-25     conviction shall be fined not more than $4,000 [$2,000] or shall be
2-26     confined in the county jail not longer than one year or both.
2-27           SECTION 4. Sections 19(l) and (o), Texas Manufactured Housing
 3-1     Standards Act (Article 5221f, Vernon's Texas Civil Statutes), are
 3-2     amended to read as follows:
 3-3           (l)  If a manufactured home is permanently affixed to real
 3-4     estate, the manufacturer's certificate or the original document of
 3-5     title may be surrendered to the department for cancellation.  The
 3-6     legal description or the appropriate tract or parcel number of the
 3-7     real estate must be given to the department when the certificate or
 3-8     document of title is surrendered.  If a notice of attachment is to
 3-9     be filed, a copy of the notice must be submitted with the
3-10     manufacturer's certificate or the original document of title
3-11     surrendered for cancellation.  The director may require the filing
3-12     of other information.  The department may not cancel a
3-13     manufacturer's certificate or a document of title if a lien has
3-14     been registered or recorded on the manufactured home.  If a lien
3-15     has been registered or recorded, the department shall notify the
3-16     owner and each lienholder that the title and a description of the
3-17     lien have been surrendered to the department and that the
3-18     department may not cancel the title until the lien is released.
3-19     Permanent attachment to real estate does not affect the validity of
3-20     a lien recorded or registered with the department before the
3-21     manufactured home is permanently attached.  The rights of a prior
3-22     lienholder pursuant to a security agreement or the provisions of a
3-23     credit transaction and the rights of the state pursuant to a tax
3-24     lien are preserved.  The department shall issue a certificate of
3-25     attachment to real estate to the person who surrenders the
3-26     manufacturer's certificate or document of title.  The certificate
3-27     or document must contain the legal description or the appropriate
 4-1     tract or parcel number of the real estate and the identification
 4-2     number of the home, and must certify that the manufacturer's
 4-3     certificate or original document of title has been canceled.
 4-4     Before the issuance of a certificate of attachment, a person who
 4-5     surrenders the manufacturer's certificate or the original document
 4-6     of title to the department may file a notice of attachment in the
 4-7     real property records of the county in which the home is located.
 4-8     The notice must state that the manufacturer's certificate or the
 4-9     original document of title has been surrendered for cancellation
4-10     and a request has been made for the issuance of a certificate of
4-11     attachment.  The notice must include information sufficient to
4-12     identify the home and must contain the legal description or the
4-13     appropriate tract or parcel number of the real property on which
4-14     the home is located.  The notice is valid for all purposes until
4-15     the certificate of attachment is issued and filed in the real
4-16     property records of the appropriate county.
4-17           (o)(1)  The department shall furnish each county tax
4-18     assessor-collector in this state a monthly [quarterly] report that
4-19     lists:
4-20                       (A)  the name of the owner of each manufactured
4-21     home installed in the county during the preceding month;
4-22                       (B)  [calendar quarter,] the name of the
4-23     manufacturer of the manufactured home;
4-24                       (C)  [,] the model designation of the
4-25     manufactured home;
4-26                       (D)  [,] the identification number of each
4-27     section or module of the manufactured home;
 5-1                       (E)  [, and] the address or location where the
 5-2     manufactured home is installed; and
 5-3                       (F)  the date of the installation of the
 5-4     manufactured home.
 5-5                 (2)  The report shall include the same information for
 5-6     all manufactured homes previously installed in the county for which
 5-7     a transfer of ownership was recorded by the issuance of a document
 5-8     of title during the month [quarter].
 5-9                 (3)  The director shall furnish a copy of the report to
5-10     the chief appraiser of the appraisal district established for the
5-11     county in which the manufactured home is installed.
5-12           SECTION 5. Section 2.001(b), Property Code, is amended to
5-13     read as follows:
5-14           (b)  A manufactured home is real property if:
5-15                 (1)  the home is permanently attached to real property;
5-16     and
5-17                 (2)  the manufacturer's certificate of origin or the
5-18     original document of title is surrendered for cancellation and a
5-19     notice of attachment or a certificate of attachment, as described
5-20     by the Texas Manufactured Housing Standards Act (Article 5221f,
5-21     Vernon's Texas Civil Statutes), is filed in the real property
5-22     records of the county in which the home is located.
5-23           SECTION 6. (a)  The change in law made in amending Section
5-24     17(a), Texas Manufactured Housing Standards Act (Article 5221f,
5-25     Vernon's Texas Civil Statutes), applies only to an offense
5-26     committed on or after the effective date of this Act.  For purposes
5-27     of this section, an offense was committed before the effective date
 6-1     of this Act if any element of the offense occurs before that date.
 6-2           (b)  An offense committed before the effective date of this
 6-3     Act is covered by the law in effect when the offense was committed,
 6-4     and the former law is continued in effect for that purpose.
 6-5           SECTION 7. This Act takes effect September 1, 2001.