1-1     By:  Raymond (Senate Sponsor - Madla)                 H.B. No. 3552
 1-2           (In the Senate - Received from the House May 9, 2001;
 1-3     May 10, 2001, read first time and referred to Committee on
 1-4     Intergovernmental Relations; May 11, 2001, reported favorably by
 1-5     the following vote:  Yeas 5, Nays 0; May 11, 2001, sent to
 1-6     printer.)
 1-7                            A BILL TO BE ENTITLED
 1-8                                   AN ACT
 1-9     relating to the regulation of manufactured housing; providing a
1-10     penalty.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1. Sections 6B(b), (c), and (d), Texas Manufactured
1-13     Housing Standards Act (Article 5221f, Vernon's Texas Civil
1-14     Statutes), are amended to read as follows:
1-15           (b)  A manufactured home constructed on or after September 1,
1-16     1997, [the effective date of this section] must meet the Wind Zone
1-17     II standards adopted by the United States Department of Housing and
1-18     Urban Development in order to be installed in a Wind Zone II
1-19     county.
1-20           (c)  All manufactured homes constructed prior to September 1,
1-21     1997, [the effective date of this section] may be installed in Wind
1-22     Zone I or Wind Zone II without restriction.
1-23           (d)  A consumer purchasing a manufactured home constructed on
1-24     or after September 1, 1997, [the effective date of this section] to
1-25     Wind Zone I standards must be given a notice by the selling
1-26     retailer that:
1-27                 (1)  the home was not designed nor constructed to
1-28     withstand hurricane force winds which may occur in Wind Zone II or
1-29     III areas; and
1-30                 (2)  the home is not permitted to be installed in Wind
1-31     Zone II counties in Texas, and there may be restrictions in other
1-32     states prohibiting installation in Wind Zone II or III areas.
1-33           SECTION 2. Section 14(n), Texas Manufactured Housing
1-34     Standards Act (Article 5221f, Vernon's Texas Civil  Statutes), is
1-35     amended to read as follows:
1-36           (n)  When a new HUD-code manufactured home is permanently
1-37     affixed to real estate, the manufacturer's certificate of origin is
1-38     surrendered for cancellation [canceled], and a notice of attachment
1-39     or certificate of attachment is filed in the real property [deed]
1-40     records of the county, the seller of the real estate may give the
1-41     initial purchaser a written warranty that combines the
1-42     manufacturer's warranty and the retailer's warranty required in
1-43     this section.  If a combination warranty is given, the manufacturer
1-44     and retailer are not required to give separate written warranties;
1-45     however, the manufacturer and retailer are jointly liable with the
1-46     seller of the real estate to the purchaser for the performance of
1-47     their respective warranty responsibilities.
1-48           SECTION 3. Section 17(a), Texas Manufactured Housing
1-49     Standards Act (Article 5221f, Vernon's Texas Civil Statutes), is
1-50     amended to read as follows:
1-51           (a)  A person, individual, or director, officer, or agent of
1-52     a corporation who knowingly and willfully violates a provision of
1-53     this Act or any rule, regulation, or administrative order of the
1-54     department in a manner that threatens the health or safety of any
1-55     purchaser or consumer commits a Class A misdemeanor and on
1-56     conviction shall be fined not more than $4,000 [$2,000] or shall be
1-57     confined in the county jail not longer than one year or both.
1-58           SECTION 4. Sections 19(l) and (o), Texas Manufactured Housing
1-59     Standards Act (Article 5221f, Vernon's Texas Civil Statutes), are
1-60     amended to read as follows:
1-61           (l)  If a manufactured home is permanently affixed to real
1-62     estate, the manufacturer's certificate or the original document of
1-63     title may be surrendered to the department for cancellation.  The
1-64     legal description or the appropriate tract or parcel number of the
 2-1     real estate must be given to the department when the certificate or
 2-2     document of title is surrendered.  If a notice of attachment is to
 2-3     be filed, a copy of the notice must be submitted with the
 2-4     manufacturer's certificate or the original document of title
 2-5     surrendered for cancellation.  The director may require the filing
 2-6     of other information.  The department may not cancel a
 2-7     manufacturer's certificate or a document of title if a lien has
 2-8     been registered or recorded on the manufactured home.  If a lien
 2-9     has been registered or recorded, the department shall notify the
2-10     owner and each lienholder that the title and a description of the
2-11     lien have been surrendered to the department and that the
2-12     department may not cancel the title until the lien is released.
2-13     Permanent attachment to real estate does not affect the validity of
2-14     a lien recorded or registered with the department before the
2-15     manufactured home is permanently attached.  The rights of a prior
2-16     lienholder pursuant to a security agreement or the provisions of a
2-17     credit transaction and the rights of the state pursuant to a tax
2-18     lien are preserved.  The department shall issue a certificate of
2-19     attachment to real estate to the person who surrenders the
2-20     manufacturer's certificate or document of title.  The certificate
2-21     or document must contain the legal description or the appropriate
2-22     tract or parcel number of the real estate and the identification
2-23     number of the home, and must certify that the manufacturer's
2-24     certificate or original document of title has been canceled.
2-25     Before the issuance of a certificate of attachment, a person who
2-26     surrenders the manufacturer's certificate or the original document
2-27     of title to the department may file a notice of attachment in the
2-28     real property records of the county in which the home is located.
2-29     The notice must state that the manufacturer's certificate or the
2-30     original document of title has been surrendered for cancellation
2-31     and a request has been made for the issuance of a certificate of
2-32     attachment.  The notice must include information sufficient to
2-33     identify the home and must contain the legal description or the
2-34     appropriate tract or parcel number of the real property on which
2-35     the home is located.  The notice is valid for all purposes until
2-36     the certificate of attachment is issued and filed in the real
2-37     property records of the appropriate county.
2-38           (o)(1)  The department shall furnish each county tax
2-39     assessor-collector in this state a monthly [quarterly] report that
2-40     lists:
2-41                       (A)  the name of the owner of each manufactured
2-42     home installed in the county during the preceding month;
2-43                       (B)  [calendar quarter,] the name of the
2-44     manufacturer of the manufactured home;
2-45                       (C)  [,] the model designation of the
2-46     manufactured home;
2-47                       (D)  [,] the identification number of each
2-48     section or module of the manufactured home;
2-49                       (E)  [, and] the address or location where the
2-50     manufactured home is installed; and
2-51                       (F)  the date of the installation of the
2-52     manufactured home.
2-53                 (2)  The report shall include the same information for
2-54     all manufactured homes previously installed in the county for which
2-55     a transfer of ownership was recorded by the issuance of a document
2-56     of title during the month [quarter].
2-57                 (3)  The director shall furnish a copy of the report to
2-58     the chief appraiser of the appraisal district established for the
2-59     county in which the manufactured home is installed.
2-60           SECTION 5. Section 2.001(b), Property Code, is amended to
2-61     read as follows:
2-62           (b)  A manufactured home is real property if:
2-63                 (1)  the home is permanently attached to real property;
2-64     and
2-65                 (2)  the manufacturer's certificate of origin or the
2-66     original document of title is surrendered for cancellation and a
2-67     notice of attachment or a certificate of attachment, as described
2-68     by the Texas Manufactured Housing Standards Act (Article 5221f,
2-69     Vernon's Texas Civil Statutes), is filed in the real property
 3-1     records of the county in which the home is located.
 3-2           SECTION 6. (a)  The change in law made in amending Section
 3-3     17(a), Texas Manufactured Housing Standards Act (Article 5221f,
 3-4     Vernon's Texas Civil Statutes), applies only to an offense
 3-5     committed on or after the effective date of this Act.  For purposes
 3-6     of this section, an offense was committed before the effective date
 3-7     of this Act if any element of the offense occurs before that date.
 3-8           (b)  An offense committed before the effective date of this
 3-9     Act is covered by the law in effect when the offense was committed,
3-10     and the former law is continued in effect for that purpose.
3-11           SECTION 7. This Act takes effect September 1, 2001.
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